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Tailor-fit regulations sought for fintech industry

FINANCIAL TECHNOLOGY (fintech) players are hoping for legislation tailor-fit for the industry to address its issues.

Industry group FintechAlliance.ph said rules and requirements for traditional financial institutions are usually imposed on fintech firms “when jurisdiction lines are blurred.”

“Since policy preferences could be embedded in fintech through less onerous means, the reflexive application of old regulations to new tech is inefficient and self-defeating,” it said in an electronic copy of Unchartered Beyond, a manual about the industry released on its website.

FintechAlliance.ph said policy makers should adopt a calibrated “light touch” approach or the delineation of a “regulatory sandbox” for fintech.

“In the absence of a distinct legal regime for fintech, regulators may fall back on the norms applied to financial institutions. But issues of fit and consistency arise when taxonomies embodied in old laws are applied to new technologies,” it said.

FintechAlliance.ph said the industry is battling against overlapping jurisdictions, concepts not covered by existing classifications and some policy conflicts.

“Vigilance and prudence can be balanced with innovation at ratios that still champion public welfare,” it said.

In June, the group released a position paper on House Bill No. 6765 or the proposed Digital Economy Taxation Act which looks to slap a 12% value-added tax on digital advertising, internet-based subscriptions and transactions made on e-commerce platforms.

The group said the proposed levies will serve as a barrier to substantial capital investments in an environment when digital services take a while to be profitable. — LWTN

Actress Heard to be quizzed over her Depp ‘wife beater’ claims

LONDON — Actress Amber Heard will be questioned about her allegations that she suffered domestic abuse at the hands of ex-husband Johnny Depp when she begins giving evidence on Monday as part of the Hollywood star’s libel case against a British tabloid.

The High Court in London has heard two weeks of testimony, including five days of evidence from Depp himself, which has laid bare the couple’s volatile relationship and some shocking claims from both parties.

Depp, one of the world’s highest-paid movie stars, is suing News Group Newspapers, publishers of the Sun newspaper, over an article which labelled him a “wife beater” and questioned his casting in the Fantastic Beasts and Where To Find Them franchise.

The paper says the article’s claims are true and the court has been told that Heard, 34, accuses her ex-husband of attacking her on at least 14 occasions between 2013 and 2016 when he became enraged after drinking or taking drugs to excess.

Depp, 57, denies ever being violent, saying she is lying and that she had regularly assaulted him. While the case strictly concerns whether the paper defamed him, it has become, in effect, a trial to decide which of them is telling the truth.

During his five days giving evidence, the court has heard extensive details about Depp’s issues with alcohol and drugs and his “binges” with other celebrities.

Citing e-mails and text messages between Depp, Heard, his staff and friends, the Sun’s lawyer Sasha Wass has argued that the actor turned into an alter ego — “the monster” — when intoxicated or under the influence of cocaine.

Rages brought on by jealousy or his anger at Heard’s attempts to curb his excesses had led to violence: He was accused of kicking, slapping, and punching his ex-wife, pulling out clumps of her hair, throwing a phone at her and on one occasion, headbutting her.

The court has been shown pictures of Heard with two black eyes and another facial injury which she says he caused.

Depp says the accusations are a hoax, with some allegations collated for years as part of an insurance policy by Heard. So far, witnesses called by his legal team have concurred with his version of events.

His former long-term partner Vanessa Paradis, the mother of his two children, and actress Winona Ryder, to whom he was engaged in the 1990s, said he was never violent and they do not believe the allegations.

His friends, security staff and assistants say Heard was abusive and violent towards him, while others, including a police officer, have cast doubt on her claims, saying they never saw her with the visible injuries she alleges Depp caused.

Depp also told the court that Heard had severed the tip of his finger when she threw a large vodka bottle at him during one explosive row, and that either she or one of her friends had defecated in their shared bed as a prank.

He also accuses her of having affairs with co-stars and with Tesla chief Elon Musk.

Heard is due to give her side in evidence over three days, and her sister Whitney may also be called later in the week as one of the witnesses who back her account of events.

#METOO CAMPAIGNER SAYS QUOTES MISUSED
Actress and #MeToo campaigner Katherine Kendall said on Friday that the Sun had deliberately misused her quotes in an article which labelled Depp a “wife beater.”

Kendall was quoted in the Sun’s original article as saying: “I don’t stand behind hitting people or abusing people. It seems that Amber got hurt.”

But Kendall said in a written statement to the court she had been misquoted by the tabloid. She said she had texted the Sun reporter after the article was printed and told her: “It seems that the whole article was about defaming him.”

The Sun article had mentioned Kendall’s advocacy for the #MeToo movement against sexual harassment and assault, and her accusations that disgraced movie producer Harvey Weinstein sexually harassed her.

“Although it was true that I was a victim of Harvey Weinstein, the rest was a lie,” she said in her witness statement.

“I was not ‘going public’, on behalf of #MeToo or myself, to criticize J.K. Rowling’s decision to cast Mr. Depp, nor did I accuse Mr. Depp of hurting Amber Heard, about which I have no first-hand knowledge.”

Kendall, who appeared by videolink from Los Angeles, was not questioned about her statement.

Before Kendall’s appearance, a friend of Amber Heard said one of Depp’s lawyers had pressured her to say unfavourable things about Heard in a US court declaration.

In her written statement, interior designer Laura Divenere stated she had not seen any injury to Heard in the days after Heard alleges Depp threw a phone which struck her face.

Asked by Sasha Wass, lawyer for the Sun’s publisher News Group Newspapers, if she had come under “enormous pressure” to make the declaration, Divenere said: “Correct.”

Earlier the court heard from Depp’s long-time friend, artist Isaac Baruch, who said a “distraught” Depp had come to see him in 2013, and told him Heard “likes to hit,” and that she would punch him after starting fights.

In his witness statement, Baruch said Depp had told him: “I don’t know what I’m gonna do, because I’m not gonna hit her, you know me I’m not gonna hit her, I love her.”

Baruch, who lived in one of the Los Angeles penthouses owned by Depp, also said Heard had no visible injuries in the days after she alleges that Depp threw a mobile phone during a heated argument in May 2016.

In other testimony on Friday, Travis McGivern, one of Depp’s security guards, said he saw Heard throw a full can of Red Bull drink at Depp, spit down at him from a landing, and punch him in the eye during another argument in March 2015.

Depp and Heard met while making The Rum Diary in 2011 and married in February 2015. Heard filed for divorce 15 months later. — Reuters

Office pre-commitment rates still healthy — report

PRE-COMMITMENT LEVELS for the Philippine office market remained at healthy levels despite the coronavirus pandemic, JLL Philippines said.

Janlo de los Reyes, head of research at JLL Philippines, said in an online forum on July 17 that only 130,000 square meters (sq.m.) of supply or constructed office space, was completed during the first half of the year.

Construction work on office projects was stopped for at least two months after the National Capital Region was placed under enhanced community quarantine (ECQ) in mid-March.

Mr. de los Reyes said in terms of total vacancy, the average rate for the second quarter was 7%, higher than the 6.8% average during the previous quarter.

Manila City had the highest vacancy rate at 19.8%, followed by Quezon City with 16.5% and Pasay City at 8.2%.

Rates of pre-commitment, or the leasing of space to occupiers even before the completion of supply, remained healthy for the first quarter of the year at 41%.

Mr. de los Reyes said this is in line with the average pre-commitment rates of 35%-45% in previous years.

Muntinlupa had the highest pre-commitment rate at 56%, followed by Makati City at 40% and Taguig City at 36%.

By sector, traditional offices was the biggest demand driver with a share of 46%. This was followed by the information technology and business process management sector (IT-BPM) with 37%, flexible workspaces with 14% and Philippine offshore gaming operators (POGOs) with 3%.

In the previous quarter, the IT-BPM sector accounted for the bulk of demand with 59%, while traditional offices cornered 39% and flexible workspaces with 2%.

Mr. de los Reyes pointed out the growth for flexible workspaces was particularly remarkable, considering the challenges it faced during the community quarantine.

“We’re seeing basically a mixed bag in terms of the response of flexible workspace landscape towards this pandemic. For some flexible workspaces, they’ve definitely taken a hit. At the same time, for some, they’re still seeing a bit of demand, especially for those who are located in core business hubs because we’re seeing a lot of corporate and also BPO companies who are seeking seats or at least sites that are close to their employees,” he said.

While this may seem promising, Mr. de los Reyes advised real estate firms to remain vigilant.

“Despite this strong demand, we are still quite cautious about what will happen in the next couple of years because… we are noting a lot of supply slippages from the first half of 2020 that may spill over to 2020 and 2021. This will probably impact a lot of the office take-up and may push down the average pre-commitment levels, moving forward,” he said.

“The State of Real Estate, Offices, Co-working Spaces: Moving Forward to the New Normal” was an online forum organized by co-working space OpenSpace. —Mariel Alison L. Aguinaldo

Related story: Health and well-being will be top priorities for office tenants — report

How PSEi member stocks performed — July 20, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, July 20, 2020.


Despite the global erosion in consumer confidence, Filipinos remain among the world’s most optimistic — survey

Despite the global erosion in consumer confidence, Filipinos remain among the world’s most optimistic — survey

Peso rallies to three-year high

THE PESO strengthened against the greenback on Monday to log its best close since November 2016 on prospects of a new stimulus package in the United States.

The local unit closed at P49.375 per dollar on Monday, stronger by 6.5 centavos from its P49.44 finish on Friday, data from the Bankers Association of the Philippines showed.

This is the currency’s strongest finish since its P49.35 close on Nov. 16, 2016, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

The peso opened the session at P49.45 per dollar. Its weakest was at P49.46 while its intraday best was at its close of P49.375 against the greenback. Dollars traded dropped to $492.33 million from the $687.8 million seen on Friday.

A trader said the peso was supported by risk-off sentiment following news of possible economic stimulus in the US.

“The peso strengthened amid prospects of a new US stimulus package,” he said in an email.

Reuters reported that investors are on the lookout for further fiscal support as a program that lays out additional unemployment benefits will expire by July 31. The US Congress is set to tackle another coronavirus aid package.

Meanwhile, Mr. Ricafort said Moody’s Investors Service’s affirmation of the Philippines’ credit rating last week continued to boost sentiment.

“Local financial markets including the peso continued to gain after Moody’s affirmation of the Philippine credit rating, another sign of resilience on the Philippine economic fundamentals,” he said in a text message.

On Thursday, Moody’s maintained the country’s credit rating at Baa2, a notch above the minimum investment grade. The rating was given in December 2014.

For today, the trader said the peso could move around the P49.30 to P49.50 levels versus the dollar while Mr. Ricafort expects it to trade within the P49.30 to P49.45 band. — L.W.T. Noble with Reuters

Bargain hunters push PHL benchmark index up

PHILIPPINE SHARES climbed on Monday as investors went bargain hunting after the local bourse’s decline last week.

The bellwether Philippine Stock Exchange index (PSEi) rose 61.95 points or 1.01% to close at 6,150.70 on Monday. The broader all shares index also increased 26.08 points or 0.72% to end at 3,6025.68.

“Local shares finished as investors looked past mixed US earnings reports and retraced some of last week’s losses,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The PSEi fell 1.75% last week as investors worried over stricter quarantine measures due to the growing number of coronavirus disease 2019 (COVID-19) cases in the Philippines.

The Department of Health reported 67,456 COVID-19 cases in the country as of Sunday, while the global tally has reached 14.51 million cases as of Monday.

Due to the lack of fresh catalysts, Mr. Limlingan said investors went bargain hunting while waiting for the US jobless claims report due out on Thursday.

Wall Street’s major indexes tumbled more than 2% on Friday as several US states imposed business restrictions in response to a surge in coronavirus cases.

Some US states that were spared the brunt of the initial coronavirus outbreak or moved early to lift restrictions are seeing a resurgence in new infections. On Friday, Texas and Florida ordered bars to close down again.

Renewed concerns over the novel coronavirus pandemic have threatened to derail a strong rally for Wall Street that has erased much of the S&P 500’s steep losses from March. The benchmark index ended below its 200-day moving average, an indicator of long-term momentum.

The Dow Jones Industrial Average fell 62.76 points or 0.23% to 26,671.95; the S&P 500 was up 9.16 points or 0.28% to 3,224.73; and the Nasdaq Composite rose 29.36 points or 0.28% to 10,503.19.

For the week, the S&P 500 fell 2.87%, the Dow lost 3.31%, and the Nasdaq shed 1.87%.

In Asia, most markets were trading in green territory when the PSE closed on Monday.

Most sectoral indices at the PSE likewise ended Monday’s session with gains. Property rose 61.24 points or 2.08% to 3,002.14; industrials picked up 89.94 points or 1.21% to 7,507.59; holding firms improved 57.02 points or 0.89% to 6,462.73; and services added 4.43 points or 0.31% to 1,421.85.

On the other hand, mining and oil dropped 66.68 points or 1.3% to 5,045.35, and financials shed 1.05 points or 0.08% to 1,197.40 at the close of trading.

Some 2.27 billion issues valued at P3.11 billion switched hands on Monday, higher than the 1.84 billion issues worth P4.12 billion from Friday’s session.

Advancers bested decliners, 109 against 75, while 52 names ended unchanged.

Net foreign selling was trimmed to P47.63 million on Monday from the P525.73 million on Friday and P641.67 million seen on Thursday. — Denise A. Valdez with Reuters

Palace rejects Cha-cha moves amid pandemic

THE presidential palace on Monday rejected a congressional move to change the 1987 Constitution amid a coronavirus pandemic, saying it was no longer a priority.

President Rodrigo R. Duterte would rather focus on defeating the COVID-19 virus first, his spokesman Harry L. Roque told an online news conference.

The President respects the desire of about 1,500 municipal mayors who reportedly endorsed charter change, he added.

“The President and the entire National Government are focused on our COVID-19 problem through the Inter-Agency Task Force,” Mr. Roque said. “So charter change is not a priority.”

Senator Franklin M. Drilon on Sunday said moves to change the Constitution amid the pandemic won’t prosper in the Senate, as he warned of an alleged plot to delay the 2022 presidential elections and remove term limits.

About 1,500 municipal mayors were reportedly pushing to amend the charter to institutionalize the higher share of local governments in national taxes and ease restrictions on foreign investments.

Cagayan de Oro Representative Rufus B. Rodriguez on Monday said the House committee on constitutional amendments that he heads would meet to discuss two proposals seeking to amend the charter when sessions resume later this month.

“I will call a virtual meeting of our committee possibly within the first two weeks of our session to tackle the proposals of our 1,489 town mayors and other pending measures,” he said in a statement.

The congressmen said the meeting would try to get the sentiments of committee members after the fresh charter change push. The 18th Congress will open its second regular session on July 27.

The Department of Interior and Local Government last week said the League of Municipalities wanted to institutionalize the higher share of local governments in national taxes and ease restrictions on foreign investments.

“The internal revenue allotments for the local government units will be significantly increased which are needed to address the COVID-19 pandemic and other local development programs, and strengthen local autonomy,” Mr. Rodriguez said.

The shift to a federal form of government was among the campaign promises of President Rodrigo R. Duterte, beginning with the appointment of a 22-member Consultative Committee in January 2018.

The body, which reviewed the 1987 Constitution, drafted the Bayanihan Federalism bill for submission to the 17th Congress.

“As for the lifting or relaxation of restrictions on foreign investment and even ownership of businesses, there are already resolutions filed in the committee by some representatives,” he said.

Mr. Drilon earlier said there was no need to legislate local governments’ share in national taxes because it has been institutionalized.

A new proposal is pending at the House that seeks to lift limits on foreign investments and the grant of a franchise to public utilities, among other economic provisions. It will also increase the number of senators to 27.

Senators’ term of office will be cut to five years from six, while congressmen can serve for five years from three years.

Mr. Drilon said the Senate was working on opening up the economy to more foreign investments through changes to the Public Service Act and Retail Trade Liberalization Act, which are both pending at the committee level.

The intention was to postpone the 2022 elections and, failing that, remove term limits, he said.

Moves to amend the charter were put in the backburner after they failed to gain support at the Senate before the 17th Congress adjourned.

Mr. Duterte had also created a task force headed by the Interior secretary to propose changes to the Constitution. The body had sought to remove economic restrictions in the charter, including the ban on foreign investment in some industries.

The Philippines is at the bottom of Southeast Asian countries in terms of foreign direct investment, and Mr. Duterte wanted to change this by changing the constitution the task force had said.

The Finance department wanted to eliminate all references to citizenship restrictions with respect to industries such as mass media and advertising, educational institutions, practice of professions, natural resources, mineral wealth and public utilities.

The task force had wanted to retain the prohibition on foreigners to own land.

The agency at the start of the year said at least 256 local chief executives had expressed their support for Mr. Duterte’s push to change the 1987 Charter. The task force also obtained 22,469 signatures from various citizens who support charter change.

The task force later submitted its second set of proposed changes to the charter to the House constitutional amendments committee. It wanted to strengthen political parties, ban turncoats and political dynasties as part of charter change.

The task force said the anti-political dynasty provision of the 1987 Constitution should be made self-executing. It also wanted to create a democracy fund for campaign finance reforms, and extend the terms of local government officials to five years with one re-election.

The second set of proposed changes covered political and electoral reforms to strengthen democracy and improve governance. It also sought to introduce equality provisions to ensure more funds flow to the provinces.

The task force was composed of 15 government agencies.

But Mr. Rodriguez deferred a committee report on proposed changes to the 1987 Constitution as his committee considered other proposals on federalism. — Charmaine A. Tadalan

Senate to investigate deaths at national jail

THE Senate will probe coronavirus deaths at the country’s national penitentiary in Muntinlupa City after nine drug lords reportedly died.

“I filed a resolution to investigate the deaths at the National Bilibid Prison (NBP),” President Vicente C. Sotto III told reporters via teleconference on Monday. “There are too many unanswered questions.”“Why are there no autopsies? Were relatives informed? Why was the Department of Justice not informed?” Mr. Sotto asked.

Mr. Sotto sought the probe under Senate Resolution 468 after nine high-profile inmates died, including drug convict Jaybee Sebastian who was involved in the drug trafficking case against Senator Leila M. de Lima.

Bureau of Corrections Chief Gerald Bantag confirmed the deaths, but refused to identify the inmates who died of the coronavirus, citing the Data Privacy Act. Twenty-one prisoners out of 339 confirmed cases have died.

“Due to unclear, inaccurate and unverified reports, speculations are now being made as to whether or not these NBP inmates actually died due to COVID-19,” according to a copy of the resolution.

Meanwhile, Senator Franklin M. Drilon slammed prison officials for invoking the Data Privacy Act, arguing that information on the death of any person is public.

“Disclosing information about a prisoner’s death is not protected information under the Data privacy law,” he said in a statement. “The fact that a person is dead is not contemplated by the law.” He also said the lack of transparency could be abused to fake deaths.

“It is dangerous and it is prone to different kinds of abuses,” Mr. Drilon said. “I am afraid it can be used to make prisoners disappear, cover up extrajudicial killings and even to fake death,” he said.

With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making it the most overcrowded prison system in the world, according to the World Prison Brief (WPB), a database kept by the Institute for Crime & Justice Policy Research at the University of London.

As of 2017, the Philippines had 933 jails — seven national prisons and 926 city, district, municipal and provincial jails, which are not enough to contain inmates, three-quarters of whom are at the pre-trial stage, WPB said on its website.

Many jails in the Philippines fail to meet the minimum United Nations standards given inadequate food, poor nutrition and unsanitary conditions.

New York-based Human Rights Watch has urged the government of President Rodrigo R. Duterte to act fast and release some detainees to prevent a major health catastrophe.

Justice Secretary Menardo I. Guevarra on Monday said he would order the National Bureau of Investigation to conduct its own probe. — Charmaine A. Tadalan and Vann Marlo M. Villegas

Coronavirus cases nearing 70,000 with 1,835 dead — DoH

THE Department of Health (DoH) reported 1,521 new coronavirus infections on Monday, bringing the total to 69,898.

The death toll rose to 1,835 after four more patients died, while recoveries increased by 607 to 23,072, it said in a bulletin.

Of 43,991 active cases, 90.6% were mild, 8.5% did not show symptoms and less than 1% were severe or critical. DoH said 1.1 million people have been tested for the virus.

Meanwhile, experts from the University of the Philippines projected infections to reach 76,000 by August.

Cases will rise in the coming days and could hit 76,000 by Aug. 1, Darwin Bandoy, an associate professor at the UP-Los Baños, said at an online briefing.

Mr. Bandoy, a member of the UP COVID-19 Pandemic Response Team, said cases in the Philippines had been increasing even if the death rate remained at 2%.

He traced the increase to community transmissions “in areas with poor compliance with minimum health standards and increase in detection with expanded testing capacity.”

“The decrease in case fatality rate is attributed to the overall improvement in the healthcare system particularly patient management,” he said.

Mr. Bandoy also said the virus had a reproductive number of one, which means one positive patient could infect one more person.

“We don’t need to be scared of these models because we can use them to change behaviors and improve our response,” he said. — Vann Marlo M. Villegas

Regional updates (07/20/20)

Manila launches walk-in testing facility, open even for non-residents

A WALK-IN testing center for the coronavirus disease 2019 (COVID-19) was launched by the Manila City government on Monday, adjacent to the Ospital ng Sampaloc, and it is open and free even to non-residents. Manila Mayor Francisco “Isko” M. Domagoso has called for donations to help sustain the free service, which is also being offered at the city’s two drive-thru testing facilities. The donations will be used to buy more reagents to test more blood samples, Mr. Domagoso said as he emphasized the need for an inclusive approach to fighting COVID-19. “Yakapin natin lahat hanggang kaya nating yakapin lahat (Let’s embrace everyone as much as we can). We cannot survive alone. Kakayanin natin ang hamong ito (We can overcome this challenge),” he said. “I want every Manileño to be good people to others, like how Manila is trying to be a good neighbor to other cities.” Manila is one of the 16 cities plus one municipality that compose the National Capital Region, which has been the country’s COVID-19 epicenter. Manila alone has recorded 3,714 coronavirus cases as of July 17, of which 1,376 are active. There are also over 500 suspected and probable patients under monitoring in the city. — Gillian M. Cortez

Parañaque partners with Keri Delivery for online services

PARAÑAQUE CITY has partnered with Keri Delivery, Inc. to complement local government services and transactions that can now be done online. Mayor Edwin D. Olivarez, in a statement Monday, said the “all-in-one technology-enabled delivery service” is intended to minimize physical interactions in the face of the coronavirus threat as well as in line with its e-governance thrust. “This is part of our strategic measures in dealing with the current situation as we find innovative ways to better serve the public,” he said. “This is also part of its e-governance program to ease doing business with the local government,” Mr. Olivarez said during the signing of the agreement with Keri Delivery. The service includes pick-up of documents for submission to the city government, payment of fees and charges via manager’s check, and delivery of issued permits and licenses. “The program covers all types of government transactions such as business permits, locational clearance, building permits, and other government-issued documents,” said Melanie Soriano- Malaya, head of the Business Permit and Licensing Office. The city also recently launched an online appointment system and online business application system.

10,000 still stranded in Cebu City

AROUND 10,000 people from different parts of the country are still stranded in Cebu City, the only area currently under a strict lockdown category due to a high number of coronavirus cases. Under national guidelines, people from stricter quarantine areas cannot go to a lower category area. Secretary Carlito G. Galvez, Jr., chief implementer of the coronavirus national task force, said they are assisting the stranded individuals until they can go back to their respective hometowns. He said most of them are from the neighboring regions of Western and Eastern Visayas. Meanwhile, the government has assisted nearly 100,000 overseas Filipino workers return to their provinces, according to the Department of Labor and Employment. “About 95,702 overseas Filipino workers repatriated by the government due to the coronavirus pandemic have been transported back to their homes,” the agency reported Monday. — Gillian M. Cortez

DA suspends operations after 3 employees test positive for COVID-19

WORK AT the central office of the Department of Agriculture (DA) in Quezon City has been suspended starting July 20 to July 24 after three of its employees tested positive of the coronavirus disease 2019 (COVID-19). Agriculture Secretary William D. Dar said disinfection procedures and installation of health safety measures in all of its buildings and offices will be undertaken while employees are directed to continue work from home. Other affected offices within the DA compound are: Philippine Council for Agriculture and Fisheries, Philippine Fiber Industry Development Authority, Bureau of Agricultural and Fisheries Engineering, Philippine Rural Development Project — National Project Coordination Office, and the field office of the Civil Service Commission. — Revin Mikhael D. Ochave

Nationwide round-up

Digal, Fuentes named ERC commissioners

LAWYER Floresinda G. Baldo-Digal and accountant Marko Romeo L. Fuentes have been appointed as commissioners for the Energy Regulation Commission (ERC), the Palace announced Monday. Ms. Digal has spent her 26-year career with the ERC and been the agency’s spokesperson since 2015. She was also designated executive director in February this year. Mr. Fuentes is a Certified Public Accountant and the vice-chair of the Board of Accountancy of the Professional Regulation Commission. “We hope the appointment of Ms. Digal and Mr. Fuentes will promote and protect the interests of ordinary power consumers especially in this challenging time,” Palace Spokesperson Harry L. Roque said in a statement Monday. ERC Chairperson Agnes VST Devanadera, in a separate statement, said, “ERC will be further strengthened to meet the extra challenges posed by the pandemic with the appointment of the two new Commissioners.” — Gillian M. Cortez

Duterte’s 5th SONA to focus on coronavirus

PRESIDENT RODRIGO R. Duterte’s fifth State of the Nation Address (SONA), which he will physically deliver at the Batasan Pambansa on July 27, will focus on accomplishments and proposed measures relating to the coronavirus crisis. “I think it would be obvious that he would be talking about COVID-19 (coronavirus disease 2019), impact on the country and steps taken to deal with COVID-19,” Palace Spokesperson Harry L. Roque said on Monday. He added that with two years left, Mr. Duterte will also discuss his plans for the remainder of his six-year term. — Gillian M. Cortez

Healthcare decentralization not matched by LGU fiscal capacity

PHILIPPINE Coast Guard officers check the temperature of stranded residents as they disembark from the BRP Cape Engaño vessel, which brought home 25 people to Bohol on July 11 from Manila. — PCG

THE DECENTRALIZATION of public healthcare services has been ineffective due to a mismatch in the financial capacity and devolved functions of local governments, according to a study of the Philippine Institute for Development Studies (PIDS). In a statement released Monday, the state think tank said the result of the first study conducted by PIDS Supervising Research Specialist Janet Cuenca showed a decline in level of hospital inpatient services between 2006 and 2013 due to the inadequate budget of local government units (LGUs) to maintain and upgrade their health facilities. The study examined the effect of health devolution on hospital inpatient services in 54 provinces. Health services are devolved to LGUs under the Local Government Code of 1991, mandating them to operate and maintain health facilities in their areas. “Health devolution was supposed to increase LGU spending on healthcare delivery services to achieve better health outcomes. However, this has not been the case in most LGUs in the country,” PIDS said. It also said that the health fund in the LGUs’ internal revenue allotment (IRA), or their share from the national budget, have been insufficient to finance the operations of devolved hospitals, pay the salaries of health workers, and procure hospital beds and other health supplies. Ms. Cuenca also noted in a second study the “mismatch in the fiscal capacity of LGUs and the devolved mandates” as well as the unclear expenditure assignments between the local and national levels which “led to inefficiencies in the delivery of health services in LGUs.” PIDS recommended the review and amendment of taxing powers of provinces, and the IRA formula. — Vann Marlo M. Villegas

Coast Guard records spike in coronavirus cases among officers, personnel

THE PHILIPPINE Coast Guard (PCG) reported on Monday 52 new coronavirus cases among its officers and personnel, specifically those deployed to assist returning overseas Filipinos, stranded residents, other frontline workers, and maritime stakeholders. “This month, the PCG has recorded an all-time high increase in the number of confirmed positive cases among its officers and personnel,” the agency said in a statement. There are a total of 365 infected PCG members, with 256 active cases and 109 recoveries as of July 18. Despite the situation, PCG Commandant Vice Admiral George V. Ursabia, Jr. said they are not slowing down on their tasks, which include swabbing operations for returning overseas workers. “At this time, we cannot afford to totally pull out to rest and recuperate. We will have to hold the line and do whatever it takes to render service, even if it entails the ultimate sacrifice for that is what we swore to when we took our oath,” Mr. Ursabia said.

Illegal wildlife trade law with harsher penalties needed — Cimatu

A LAW with harsher penalties for illegal wildlife trade is needed to curb criminals, according to Environment Secretary Roy A. Cimatu. “Republic Act No. 9147 (the Wildlife Resources Conservation and Protection Act of 2001) should be amended to include a mandatory minimum jail term of six years for those found guilty of the criminal acts defined under the law,” Mr. Cimatu said on Monday, adding that there should be no eligibility for probation. The Department of Environment and Natural Resources (DENR) arrested two suspected illegal wildlife traders in Tondo, Manila on July 10 and recovered 42 various species of threatened and endangered turtles with an estimated value of P550,000. Rogelio D. Demelletes, senior ecosystems specialist at the Biodiversity Management Bureau, said the illegal wildlife trade in the country has not slowed down despite the coronavirus pandemic. He cited that the DENR has confiscated P37 million worth of illegal wildlife since March 2020, with seven suspects arrested. “The penalties appear to be not enough to make wildlife offenders stop their criminal acts as the fines are too low compared to the millions they earn from trading wildlife species,” Mr. Demelletes said. Under Republic Act No. 9147, the penalty depends on the act committed and the conservation status of the wildlife caught. The maximum penalties are imposed on people guilty of killing critically endangered wildlife, with imprisonment of six years and one day to 12 years and/or payment of a fine ranging from P100,000 to P1 million. Penalties for wildlife hunting and trading range from two to four years of imprisonment and/or a fine of P30,000 to P300,000 for hunting and P5,000 to P300,000 for trading. Penalty on illegal transport of wildlife is from six months to one year imprisonment and/or a fine ranging from P50,000 to P100,000. — Revin Mikhael D. Ochave

Polio immunization campaign resumes

THE DEPARTMENT of Health (DoH) has resumed its polio immunization campaign after being put on hold due to the coronavirus outbreak. In a statement Monday, the DoH said the next phase of the Sabayang Patak Kontra Polio campaign, specifically in Mindanao, will restart on July 20 until Aug. 2. The campaign is supported by the World Health Organization and United Nations Children’s Fund. New polio immunization campaigns for children below five will begin in a phased approach in Central Luzon on July 20 and in the provinces of Laguna, Cavite and Rizal next month. A polio outbreak was announced on Sept. 19 last year after almost two decades that the country has been free from the disease. — Vann Marlo M. Villegas