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Virus cases near 273,000; lawsuit on mass tests junked

THE DEPARTMENT of Health (DoH) reported 3,550 coronavirus  disease 2019 (COVID-19) infections on Wednesday, bringing the total to 272,934.

The death toll rose by 69 to 4,732, while recoveries increased by 524 to 207,858, it said in a bulletin.

There were 60,344 active cases, 87.7% of which were mild, 8.4% did not show symptoms, 1.2% were severe and 2.7% were critical.

Metro Manila reported the highest number of new cases with 1,459, followed by Rizal with 271, Cavite with 196 and Bulacan and Laguna with 172 each.

Of the new reported deaths, 24 came from Metro Manila, 19 from the Calabarzon region, 10 from Western Visayas and six from Central Visayas.

Eastern Visayas, Zamboanga Peninsula, Soccsksargen, and Mimaropa regions reported two deaths each, while Central Luzon and Bicol region reported one death each. More than 3 million people have been tested for COVID-19, it said.

Meanwhile, the Supreme Court dismissed a lawsuit seeking to compel the government to conduct mass coronavirus testing.

In a four-page order dated Sept. 1, the court noted that while it is the government’s duty to protect public health, it can’t be compelled to do this in “a certain way or degree.”

“The job of the court is to say what the law is, not dictate how another branch of government should do its job,” it said.

“Without a demonstration that an official in the executive branch failed to perform a mandatory, nondiscretionary duty, courts have no authority to issue a writ of mandamus, no matter how dire the emergency,” it added.

Associate Justice Mario Marvic Leonen dissented, saying the government should have been ordered first to comment on the lawsuit.

He said the issues raised “are important and have far-reaching implications and this Court should not pass up the opportunity to address them after hearing both parties.” — Vann Marlo M. Villegas

Bill seeks to revamp PhilHealth after graft charges approved

A SENATOR has filed a bill seeking to reorganize the Philippine-Health Insurance Corp. (PhilHealth) after President Rodrigo R. Duterte approved corruption charges against top officials.

Senate President Vicente C. Sotto III filed Senate Bill 1829, which will amend the Universal Healthcare Act and replace the Health secretary with the Finance chief as chairman of the state insurance company’s board. The Health chief will remain a board member.

The PhilHealth chairman must be present at all board decisions and cannot be represented by an alternate.

Mr. Duterte on Monday approved graft charges against former PhilHealth President Ricardo C. Morales, Executive Vice President and Chief Operating Officer Arnel de Jesus, Senior Vice Presidents Jovita V. Aragon, Renato Limsiaco, Jr. and Israel Francis A. Pargas, Officer in Charge Calixto Gabuya, Jr. and division chief Bobby A. Crisostomo.

The palace task force headed by the Justice department cleared Health Secretary and PhilHealth Chairman Francisco T. Duque III and Senior Vice President Rodolfo del Rosario.

Investigators also sought administrative charges against the officials for dishonesty, gross neglect of duty and misconduct, falsification of public documents, disloyalty, inefficiency and incompetence, Mr. Duterte said.

The Senate committee of the whole earlier sought graft and malversation charges against Mr. Duque, Mr. Morales and other executives after they were accused of favoring some ineligible hospitals that benefited from anti-coronavirus funds.

At least 17 senators also signed a resolution urging Mr. Duque to resign for failing to contain the pandemic.

The Senate body found gross overpricing of equipment bought by PhilHealth and favoritism in the release of so-called interim reimbursement mechanism funds.

The mechanism allowed the agency to grant advance payments to health institutions by up to three months during the pandemic, even if only P1 billion had been liquidated.

Former PhilHealth anti-fraud legal officer Thorsson Keith earlier told senators at a hearing the agency’s top officials had pocketed P15 billion through fraudulent programs.

PhilHealth officials have denied any wrongdoing. — Charmaine A. Tadalan

Storm Leon, southwest monsoon dump rain across PHL

TROPICAL STORM Leon is expected to be out of the Philippine area by Thursday morning after dumping rain, along with the southwest monsoon, in most parts of the country. No typhoon warning signal was raised by weather bureau Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Wednesday, but there was an alert for landslides due to possible moderate to heavy rains from Cagayan in the north to the southern islands of Mindanao. PAGASA said Leon is seen to strengthen into a severe tropical storm and make landfall over northern or central Vietnam on Friday. As of Wednesday morning, Leon was located 330 kilometers (km) west-northwest of Coron, Palawan with maximum sustained winds of 65 km per hour near the center and gustiness of up to 80 km/h.

DepEd’s P10-B voucher program held up

ABOUT half of the beneficiaries of the Department of Education’s (DepEd) voucher program are at risk after P10 billion of its proposed 2021 budget was classified as unprogrammed funds, a key official said on Wednesday.

About P10 billion was slashed from the agency’s voucher program, but later returned upon the request of Education Secretary Leonor Briones, Education Undersecretary Annalyn M. Sevilla told a Senate budget hearing.

But it was put under unprogrammed funds, which means it can be enforced subject to the availability of the money.

Aside from the P10 billion, only P12 billion was allotted under programmed funds, which the budget department suggested to be used to shoulder student enrollment for the first semester.

Ms. Sevilla also asked senators to restore the P1.5-billion budget for the annual medical checkup of teachers.

More than 24 million students have enrolled for this school year, which opens on Oct. 5. Of the total, 22.3 million were public school students, 2 million were private and 382,000 were under alternative learning systems. — Charmaine A. Tadalan

Party-list Bayan Muna flags Chinese-owned contractor of DITO for military camp towers  

PARTY-LIST Bayan Muna on Wednesday flagged China-backed Dito Telecommunity Corp. for tapping a Chinese company for the installation of cell cites in Philippine military camps.

In a statement on Wednesday, Bayan Muna Rep. Ferdinand R. Gaite also criticized the Armed Forces of the Philippines for not disclosing that the DITO contractor, Leo Technologies Infrastructure, is a subsidiary of China Bester Group Telecom. 

“While we have been critical of DITO for being partly owned by China Telecom, we were surprised that the company which will build towers in military camps is in fact fully owned by a Chinese company in Wuhan,” Mr. Gaite said. 

“Our impression before was that Leo Technology has no connection with China,” he added. 

Former lawmaker Neri J. Colmenares said that such non-disclosure “is a huge threat to Philippine sovereignty and security.”

“China Telecom owns at least 40% of DITO, and DITO’s loan of US$ 500 Million from China’s banking sector portends of China’s greater control of the company beyond its 40% share.  Now, we are informed that the company actually building these towers is fully owned by China.  In fact, we found out that China Bester has been previously contracted to build fiber optic networks for homes in the Philippines,” Mr. Colmenares said. 

“Worse, the China Energy Equipment Co., another Chinese company contracted by DITO to construct its towers, is also a fully owned company from China,” he added. 

Mr. Colmenares, who previously questioned China loans for the Chico and Kaliwa dams, also called for the withdrawal of Defense Secretary Delfin N. Lorenzana’s approval of setting up DITO towers in military camps. 

Security officials have allayed fears over the security threat. 

 Asked if they intend to file a suit before the Supreme Court to stop the contracts, Mr. Colmenares told BusinessWorld that Bayan Muna will take the necessary steps in the future.— Kyle Aristophere T. Atienza

Regional Updates (09/16/20)

Albay representative bats for pili nut industry dev’t

A BICOL Region representative wants a dedicated fund to develop the pili nut industry for increased domestic consumption and export. Albay 1st District Rep. Edcel C. Lagman said he sent a letter to the Department of Agriculture (DA) recommending the creation of the Pili Industry Development Program with an allocation under the 2021 budget. Mr. Lagman told BusinessWorld he also intends to file a bill in the House of Representatives to institutionalize the program. The bill, he said, “would probably be about banning bringing out pili seedlings from the country to protect our local pili growers.” In his letter to the DA, the solon said the industry needs continuing government support for developing pili plantations, promoting the export potential of pili products, and prohibiting the exportation of raw pili seedlings to maintain the country’s dominance in pili production. Mr. Lagman said the program aims to strengthen the pili industry, currently centered in the Bicol provinces of Albay, Sorsogon and Camarines Sur — and expand it to other parts of the country suitable for the crop. — Kyle Aristophere T. Atienza

Cagayan de Oro coastal road to be extended, bike lanes added

THE DEPARTMENT of Public Works and Highways (DPWH) is proposing to implement the second phase of the Cagayan de Oro coastal road project starting next year, which covers a 9.3-kilometer extension and adding sidewalks and bicycle lanes. “To further ease mobility in the city, we hope to extend additional 9.30 kilometers of road, which will be under Phase 2 of the project starting next year. We also would like to include street lights, sidewalk, bike lane, trees and other public space component to further improve aesthetic of this road,” Secretary Mark A. Villar said in a statement on Wednesday. The extension will run from from Barangay Puerto in Opol, Misamis Oriental to Barangay Gusa in Cagayan De Oro City. DPWH said if the funding requirement is released as proposed, the project will be completed by 2024. The initial 12.77-km stretch of the coastal road was opened in November 2017. Civil works on what is now an 18-km highway is being completed, including the construction of a rotunda that will connect Cagayan de Oro’s 3rd Bridge to the remaining section of the project in the area of the Philippine Ports Authority.

Western Visayas reopens for returning residents

FLIGHTS TO Western Visayas have resumed for returning residents after the government lifted the two-week suspension intended to mitigate the rising number of coronavirus cases in the region, especially in the major cities of Bacolod and Iloilo as well as Iloilo province. The other provinces of the region are Aklan, Antique, Capiz, Guimaras, and Negros Occidental. — Gillian M. Cortez

Will the coronavirus turn out green or brown?

COVID-19 (coronavirus disease 2019) has been simultaneously good and bad for humanity’s struggle to limit global warming. So far, it’s hard to say what the net balance will be. But the European Union could tilt it positive, if it so chooses.

On the good side of the ledger, global emissions of greenhouse gases plummeted during the lockdowns. On the bad side, they’re already heading back up to pre-corona levels. This year’s dip will make us no more likely to achieve our goals for slowing climate change.

The recent drop in demand for energy also had perverse side effects. The price of oil plummeted, making this fossil fuel more attractive in the recovery compared to greener alternatives. Even the damper on air travel hasn’t been unequivocally good for the climate. As airlines bought fewer emission allowances in the EU’s cap-and-trade system, the price of these certificates dropped. This made carbon pollution cheaper in other sectors of the economy, such as cement production.

The pandemic’s effect on climate politics is also ambiguous. Just before the coronavirus arrived in Europe, Ursula von der Leyen, president of the European Commission, had declared decarbonization the EU’s priority, with a “Green Deal” to make the whole bloc emissions-neutral by 2050. Later today, she’ll probably announce even more ambitious targets.

But the COVID-19 recession has pushed ecology down a notch in urgency, below economics. The Czechs, Poles and others have suggested shelving the Green Deal to concentrate first on limiting the economic fallout of COVID-19. The fight against global warming, in their logic, amounts to a huge exogenous cost which cannot be borne during a depression.

Other politicians disagree. Von der Leyen, for example, is trying to market this week’s acceleration of the Green Deal as a twofer: The huge public and private investments required for decarbonization, so goes her pitch, will simultaneously provide the fiscal stimulus to boost aggregate demand and overcome the corona recession. Thus, Europe’s rescue packages are designed to be “green.”

But economists aren’t convinced that these two concurrent struggles — against recession and against global warming — are natural policy partners. The “Tinbergen rule,” named after a Nobel laureate in economics, says that if you have N different policy goals, you require at least N different policy instruments, otherwise there will be trade-offs and conflicts.

For example, limiting climate change requires raising the price of carbon. But this also means higher energy costs, which dampen the recovery. Subsidizing green products, like electric cars or fuel cells, implies even more public borrowing at a time when government debt is already high, and therefore requires tax hikes sooner rather than later, which will hurt demand. And so on.

But there’s a solution, and it’s one the EU should grasp and then evangelize all over the world. It’s to stop subsidizing things labeled green with public money, and to instead focus entirely on charging a price for things that are brown, then recycling the money that’s earned.

As it happens, the appropriate instrument already exists. It’s that aforementioned European emissions-trading system, the world’s largest of its kind. It fixes the amount of carbon that certain industries, such as steel makers or power generators, may emit. Companies then have to buy allowances, which they can resell to other firms if they don’t need them.

Earlier this year, I argued that using this kind of price signal is the most “liberal” and efficient way to reduce emissions, because individuals and firms are free to adapt however they wish. During the coronavirus outbreak, I then suggested that the EU should grab this opportunity to expand its emissions-trading system to the whole economy. It currently only covers sectors that account for about half of Europe’s emissions. Now is the perfect time for Von der Leyen to apply it to all industries.

Such a scheme could also help pay for a broader recovery. Economists Clemens Fuest and Jean Pisani-Ferry have proposed using the revenues from the EU’s emissions-trading system as a new funding source for the EU itself. At present, the EU is financed mainly through national contributions by member states, and revenues from selling carbon allowances go back to individual countries.

If the carbon revenues instead become EU funds, they can be used to repay the bonds soon to be issued by the bloc to fund the huge recovery program called Next Generation EU. This way the money is taken from polluters and recycled into stimulus. Both policy goals are brought into harmony — and the EU is one step closer to solving its institutional problems.

The EU must then steadily decrease the number of carbon allowances, encouraging companies to emit ever less. Of course, the EU and the UK together account for only about 10% of worldwide emissions. So bringing down global emissions will require others, above all China and the US, to decarbonize too.

The EU should therefore make its emissions-trading system open to all countries. Companies from states that don’t participate will have to pay so-called carbon border adjustments when exporting to the EU. The long-term goal is a cap-and-trade system that spans most large economies in the world, and leads to one global carbon price, which is high and rising. It won’t be easy. But it may be our best shot at saving the planet.

BLOOMBERG OPINION

There is no Food Security without Storage Security

Often enough we see fresh farm produce like vegetables and fruits — food, basically — go to waste after failing to make it to market on time. Farmers get rid of surplus harvest by either feeding them to farm animals or just turning them to compost. Those that stay fresh long enough are just given away to any takers for free.

Even harvested grains like rice, after being dried, hulled, and milled, can last only for so long. It has more to do with how we store grains, and the lack of facilities to make use of intervening technologies to improve storage and shelf life. Canning or pickling are some options for produce, or even blast freezing, but these are not suitable for staples like rice.

Even meat from livestock require refrigeration or freezing to improve their shelf life. One can process, cook, dry, can, or pickle only so much meat. Most must still be sold either fresh or fresh frozen. Otherwise, they degrade and rot, and thus go to waste. Households, meantime, can store only so much food at any given time.

This COVID-19 pandemic, as well as geopolitical events that disrupt global trade, clearly indicate that food supply disruptions are a fact of life. And that while domestic food production may be ongoing and sufficient, without logistics — transport, storage, and distribution — people can still go hungry. Most vulnerable are the poorest of the poor.

In recent weeks I have been finding myself in the company of elders who have been discussing our seeming lack of long-term, sustainable food security. And, among the points they have raised include the lack of refrigeration and storage capability both at the production and at the distribution as well as household levels.

Every time I am on the Skyway heading north, I cannot help but notice the big facility of ORCA in Taguig, just off Laguna Lake. Being curiou s, I checked on it online. Available literature indicates that ORCA Cold Chain Solutions is a “fully automated cold chain facility” that “offers temperature-controlled logistics, warehousing and pre- and post-storage value added services.”

To date, ORCA has facilities in Alabang, Taguig and Caloocan. All three sites are near ports and industrial zones. The sites also have access to existing rail lines as well as trucking routes. This, to me, is an important consideration. The company is said to handle frozen and chilled food products for fast food chains, exporters and importers, and small food entrepreneurs. The company claims to be the first and only company in the country “to invest this heavily on… ‘food infrastructure’.”

There is much to be learned from what ORCA is doing, and I believe the company deserves a commendation for its foresight and its present efforts. The government, through the Board of Investments, is also working on a Cold Chain Industry Roadmap, which I also believe deserves support. This rings true more so now, when “disruptions” can easily occur and leave the population vulnerable to hunger.

And while ORCA appears to apply itself and facilities more to commercial concerns, nothing precludes local governments and smaller communities from initiating efforts to improve local food supply and storage, with the help of businesses within their respective territories. In fact, nothing stops local government from partnering with firms like ORCA to put up smaller, community-based storage facilities.

I don’t see any strong effort on the part of any local government to stockpile or warehouse food, or to build disaster-proof bunkers or shelters. Makati City, for one, can look into this once the proposed subway starts construction. The subway line should be built strong enough to withstand earthquakes, floods, and typhoons, and should be easily convertible to long-term, sustainable shelter or bunker in cases of disaster and other emergencies, or war.

Food storage must be made part of the construction plans. Even sanitation and waste disposal should be considered. When people seek shelter in these subway bunkers, they will need access to food supply, medicine and healthcare, as well as clean water and sanitation. With everything that is happening in the world today, we should already be planning for this.

The Malinta Tunnel on Corregidor Island was built by the United States Army Corps of Engineers, initially as a bomb-proof storage and personnel bunker. It was later equipped as a 1,000-bed hospital. The main tunnel, running east to west, is more than 250 meters long, and about seven meters wide and six meters high. Branching off from this main shaft are 13 lateral tunnels on the north side and 11 lateral tunnels on the south side. Each lateral averaged 49 meters long and five meters wide. The main tunnel and the laterals were built from 1932 to 1934. After 86 years, the main tunnel and some laterals are still standing.

Admittedly, not all local governments can afford to build bunkers like Malinta Tunnel or stockpile food. But most have the capability to build public markets, either at their own expense or through private sector investment. Knowledge and technology on how to build better markets with sufficient cold and dry storage facilities can be made available, and assistance on construction can be sought. Farm-to-market roads make less sense if produce will just end up rotting in a few days’ time after they get to the market.

In their own little way, smaller towns can start some initiative on food stockpiling with storage expertise from firms like ORCA. Beside public markets, local storage facilities and a water station can be built, preferably with facilities for chilling or freezing. Local officials can source produce from the local community, or take the daily market surplus, and then stockpile these for at least six months to one year. Purchasing costs can be offset against local taxes.

Along with food, potable water will also be stored. Technology and knowledge can be shared by experts on how to best store food and water. Stocks can be cycled every six months to one year. Instead of having to buy goods for Christmas giveaways, for instance, local produce kept in storage can be given out instead. And then the storage facility can be restocked by the New Year, perhaps along with seeds that can be used for planting grains and vegetables. During disasters, goods can also be drawn from the stockpile as food assistance to disaster victims.

If chilling and freezing will be difficult, then provide at least some facilities for salting and drying, pickling and bottling, or vacuum sealing food in portions that can easily serve households. Some facilities can run on solar power, to save on electricity costs. Take grains out of sacks and put them in plastic bags and vacuum seal them. The same goes for sugar and salt and other dry goods like beans and nuts. Vegetables can also be dried or salted or pickled and then either bottled or vacuum sealed. Meats and fish can likewise be vacuum sealed prior to chilling or freezing.

There is enough literature to show how storing can be done cheaply and efficiently. It is said that vacuum sealing extends the shelf life of food by three to five times. Frozen food that is vacuum sealed lasts an average of two to three years. Grains, when vacuum sealed and stored properly, can last for several years. An option is to process produce into food like military meal rations, and store them as such. Shelf life is reportedly up to five years.

Let’s leave out land issues and agrarian reform meantime, as well as financing and trading concerns. After all, with or without middlemen in the picture, the fact remains that stockpiling and the cold storage chain are necessary elements to ensuring food security. My concern is that there can never be real, long-term, sustainable food security unless we have food storage security as well.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

Coal, growth and carbon tax

Among the major economic challenges for governments worldwide in dealing with this pandemic is where to raise new revenues as their expenditures and borrowings have greatly increased while their regular revenues have decreased.

In the Philippines, among the groups to mention and lobby again for a carbon tax are the Asian Development Bank (ADB) and some NGOs. See related stories in BusinessWorld recently: “ADB backs digital economy, carbon taxes to aid recovery” (Sept. 3), “Microgrids touted as priority area for funding by Asian Dev’t Bank” (Sept. 14), “Rising missionary charges called ‘misguided’ after Congress queries DoE” (Sept. 14).

The first story is self-explanatory, the second is about solar lobbying by an environmental NGO that opposes not only coal but also big hydro and geothermal, and the third story is about a correct observation by Laban Konsyumer, Inc. (LKI) that the universal charge for missionary electrification (UC-ME) in our monthly electricity bill should not rise. I will add that this charge should stop and be abolished someday, the isolated island-provinces should run on cheaper coal or small modular gas or nuclear plants, instead of big gensets running on diesel and the higher cost is passed on to all consumers nationwide via UC-ME.

The endless lobby to impose a carbon tax to penalize fossil fuels, especially coal plants, is misguided and based on emotion, not reason and hard data. If we go back to recent economic history of countries, the rich ones have developed faster partly or largely due to cheap energy like coal that powered their industrial, agribusiness and service sectors 24/7.

In the accompanying table, I show the coal consumption and gross domestic product (GDP) of different countries in 15 year gaps starting from 1965 (earliest comparative energy data available) until 2019. Data is from the WB World Development Indicators (WDI) database, and BP Statistical Review of World Energy (BP SRWE).

The high coal-consuming countries in the 1970s and earlier decades, like the US, Germany, UK and Japan, were also the high GDP size countries. Starting from the early 1990s when environmental activism and anti-fossil fuel movements became stronger, they have either slowed down or marginally increased their coal consumption. Unit use is Exajoule (EJ) and 1 EJ is equal to 23.88 million tons oil equivalent (MTOE). Lower expansion in coal use in 2019 over 1995 levels by the rich countries led to lower expansion in GDP size over the same period. In contrast, higher expansion in coal use by developing and emerging economies like the Philippines also led to higher expansion in GDP size (see the table).


In addition, the Philippines also has a very small coal consumption (only 0.73 EJ or 17.42 MTOE in 2019) compared to its neighbors like Malaysia, Vietnam, and Indonesia, and yet the Philippines is endlessly bombarded by a high-noise, heavy-emotion, low-data lobby that we should discontinue new coal plants and kill or close existing coal plants.

To recover faster from the lockdown-crippled economies, countries must have cheaper and stable electricity especially now that most work is done at home. Attending work meetings and seminars and online classes requires stable electricity and internet, not fluctuating power from intermittent sources like solar-wind.

What about the planet?

Planet Earth has experienced natural and cyclical climate change (endless warming-cooling cycles) since it was born some 4.6 billion years ago. Nature-made not “unprecedented, man-made” warming.

The multilaterals like the UN and ADB, IMF, WB, and OECD, must recognize climate realism and not alarmism, and advance cheaper, reliable, no subsidy, and no mandatory dispatch electricity. Fossil fuel energy has given us modern and convenient life, air conditioners in hot days and months, heating in cold days and months, huge and tall buildings with 24/7 elevators and aircon, etc.

We should now prioritize faster economic recovery via cheaper and stable energy, and wider economic opening. We should throw away useless and costly proposals like carbon taxes whose goal is to make cheaper energy become expensive energy. 

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Conflict of interest

CONFLICTS of interest often go unremarked. A partial list of these social anomalies will suffice.

A food blogger works as a PR consultant of a restaurant she praises to high heavens in her social postings, promoting her comments as third party reviews. A legislator incentivized by vested interests launches an investigation (in aid of legislation) of the sponsors’ competition, explaining the initiative as a social media issue. An art collector, who has an inventory of the works of a particular artist, hypes up the artist’s work in an art forum without disclosing his collection.

Robert Hughes, once the long-time art critic of TIME, made sure not to own any paintings or art works at all, keeping his walls at home bare. He would never be accused of reviewing artists he owned or pressuring with bad reviews those he wanted to acquire.

Hughes even downplayed the importance of his job as an influencer of tastes and trends, when he said: “One gets tired of the role critics are supposed to have in this culture. It’s like being the piano player in a whorehouse; you don’t have any control over the action going on upstairs.”

Isn’t the recent scandal in health insurance a case of being on both sides of a transaction? These included releasing money for fictitious hospitalizations of 130-year-old patients and paying for non-existent treatments in dialysis clinics. Guess whose bank accounts those funds ended up in?

Behavioral economists have a concept of “asymmetry of information.” Here, one party in a transaction has more knowledge than the other. In the sale of a used car, the seller has more information than the buyer on how good (or bad) the product is. Is the price fair? The buyer is at a disadvantage in determining whether the car is a bargain or a lemon. Only the engagement of a car mechanic, at an extra cost to the buyer, can correct this asymmetry of information.

The filing of the statement of assets, liabilities, and net worth (SALN) is not just to establish how rich (or poor) a political leader or government appointee is before and after his election or appointment. It also serves to disclose assets and existing corporate ties, say to a security agency or a dialysis clinic… in case the names come up in a bidding process. And the winner is… guess who?

Prior disclosures for board directors of private companies, especially those listed in the stock exchange, are intended to identify connections with other companies as well as relatives to the fourth degree. This ensures that any dealings with the company do not involve “related parties” in a conflict of interest.

Even in medical diagnosis, a doctor’s eagerness to replace your knees (you will be in a wheelchair in six months if you don’t) may be viewed by the patient as an expensive and painful option driven by a doctor’s profit motive. Is this why a second opinion is sought? The second doctor is likely to ask — who’s proposing the knee replacement?

Does an innate suspicion of motives and vested interests smack of cynicism? Aren’t some who claim to be disinterested third parties (I’m just giving you my honest opinion) truly free of any hidden interest?

There is of course the possibility of “shared interest” where two parties (shareholders and employees) both benefit from a particular development, say the rise in revenues and profits of the company they work for, a rare win-win option.

Conflict of interest arises when one party has a hidden advantage over another. Disclosure of a possible conflict is helpful. (I own this artwork that I am hyping to you so I can get a better price).

The admonition to stay home and not go to the mall, even with a face mask, only to window-shop (there’s a long line outside the sneaker store with a big “sale” sign) and then snack in a socially distanced dine-in coffee shop, can be well-intentioned. But even this is not always heeded.

Who really needs a new pair of sneakers when one is mostly working from home? Well, the economy needs a lift… and so do you. Where’s the conflict of interest there?

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Tourism promoters hoping for realistic return from trade show

BW FILE PHOTO

THE government’s tourism promotions arm said it is hoping to generate “realistic” revenue from its trade show in Bohol next week.

The Philippine Travel Exchange (PHITEX) conference will be held in both Bohol and online on Sept. 22-24, with nearly 300 participants.

The event usually generates an average of P700 million to P750 million in sales, Tourism Promotions Board Chief Operating Officer Maria Anthonette C. Velasco-Allones said in an online news conference Wednesday.

“We are trying to be realistic and open to the possibilities that await us given the reality of this pandemic,” she said.

PHITEX usually attracts an average of 190 buyers from 31 countries, and 138 Philippine sellers. As of Tuesday, there are 124 confirmed buyers from 33 countries and 161 sellers.

The Philippine delegates include representatives from 92 hotels and resorts, 63 tour operators, two airlines, and four other tourism companies. Many of the confirmed foreign buyers are from Asia, including 13 from Indonesia and nine each from China and South Korea.

Ms. Velasco-Allones said that the board chose not to postpone the event because of the decline in tourist arrivals and revenue. She said that international arrivals for the first eight months of the year declined 75.1%.

“This effort is part of the government’s balancing act. Di naman pwedeng titigil din kami (We can’t just give up),” she said, describing the event as preparation for the reopening of tourism in the future.

“We hope to realize gains by next year,” she said.

Tourism revenue dropped 72% to P81 billion in the first seven months of 2020, the Tourism department said last month. — Jenina P. Ibañez

BIR extends deadlines for related party transactions

THE Bureau of Internal Revenue (BIR) said it extended the deadlines for filing the new related party transactions (RPT) form, acknowledging possible difficulties in compiling the needed information due to the coronavirus disease 2019 (COVID-19) pandemic.

BIR Commissioner Ceasar R. Dulay issued Revenue Memorandum Circular No. 98-2020 dated Sept. 15, setting new deadlines for the submission of the RPT form, which is an attachment to the annual income tax returns for companies with fiscal years ending in various months of 2020. The initial deadline was Sept. 30.

“Due, however, to the continuing adverse impacts of COVID-I9 pandemic, and in order to assist the taxpayers, individuals or non-individuals, giving them sufficient time to comply with the mandates of RR (Revenue Regulations) No. 19-2020, submission of BIR Form No. 1709 and its required documents shall be further extended as follows,” according to the circular, posted Wednesday.

For RPT forms covering fiscal years ending in March and April 30, the BIR moved the deadline to Dec. 29, while other deadlines for other periods covered were set next year.

Taxpayers whose fiscal years end in May and June have been set a deadline of Jan. 31, 2021. The deadline was set at March 1, 2021 for those with fiscal years ending in July and August;  March 31, 2021 for those with fiscal years ending in September and October; and April 30, 2021 for those with fiscal years ending in November and December.

Related party transactions are transfers of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. — Beatrice M. Laforga