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Google, Facebook dump plans for US-Hong Kong undersea cable

But agencies recommend approval of parts connecting US to Taiwan and Philippines

Google and Facebook Inc. dropped plans for an undersea cable between the US and Hong Kong after the Trump administration said Beijing might use the link to collect information on Americans.

But the companies quickly submitted a revised proposal that includes links to Taiwan and the Philippines, as envisioned in the application that was withdrawn on Thursday. The new filing didn’t include Hong Kong–based Pacific Light Data Communication Co., a partner in the original plan and a concern for US security agencies that cited its links to mainland China’s Dr. Peng Telecom & Media Group Co.

The steps come as tensions continue to escalate between the US and China over a series of conflicts. These include Beijing’s tightening grip on Hong Kong and its treatment of the Uighurs, a Muslim ethnic group; American accusations that Chinese high-tech products could be used for spying; and recriminations over the spread of the coronavirus from China’s Hubei province.

President Donald J. Trump has taken a tougher stance on China as he pursues re-election.

The companies proposed the Pacific Light Cable Network project in 2017, listing all three trans-Pacific destinations. American security agencies, the Justice Department, on June 17 asked the Federal Communications Commission (FCC) to deny the link to Hong Kong, saying it would give China a way to acquire Americans’ personal data. The agencies called Pacific Light Data a subsidiary of Dr. Peng, which they said has relations with Chinese intelligence and security services.

The agencies recommended that the FCC approve parts of the project connecting the US to Taiwan and the Philippines. Google in April won authority to operate the portion linking Taiwan for six months.

“We continue to work through established channels to obtain cable landing licenses for our undersea cables,” a spokesperson for Alphabet Inc.’s Google said in an e-mail. The Google representative said the original application “has been withdrawn, and a revised application for the US-Taiwan and US-Philippines portions of the system has been submitted.”

FCC Commissioner Geoffrey Starks in a tweet pointed out that the application had been pulled back after American officials had raised national security concerns. “I shared those concerns & will continue to speak out,” Mr. Starks said. “@FCC must ensure that our telecom traffic is safe & secure.”

A Facebook representative responded to a query by directing a reporter to the project’s FCC filings. — Bloomberg

Locsin wants to cancel contracts with Chinese companies on US blacklist

Duterte says he will not choose sides between US, China

Foreign Affairs Secretary Teodoro L. Locsin, Jr. said he would recommend cancelling local contracts of Chinese companies found involved in reclamation activities off the South China Sea following the release by the United States government of a blacklist.

This as President Rodrigo R. Duterte said he will not choose sides between the United States and China as tension brews over the involvement of a Chinese company blacklisted by the US in the Sangley Point International Airport project.

In an interview with CNN Philippines, Mr. Locsin said he would “strongly” recommend the termination of contracts if it is found that the Chinese companies were involved in the militarization of the South China Sea. This comes after the US said it will blacklist 24 Chinese companies found involved in military activity and environmental degradation in the disputed waters.

“If I find that any of those companies are doing business with us, then I would strongly
recommend we terminate that relationship with that company. If they were in any way involved
in the reclamation, then it becomes consistent on our part to terminate any contract with them,” he said.

He added, however, that he does not know specifically which companies these are nor does he have the final say in the termination of the contracts. He also said he would rather leave it to the Department of Trade and Industry and the National Economic Development Authority to handle it.

“On that specific issue, I’d rather wait for the two departments who are dealing with Chinese companies. And remember once these companies are already on, what do you do? Do you suspend the project? Those are the things that I want to ask them instead,” Mr. Locsin said.

Earlier this week, the United States Department of Commerce released a list of 24 Chinese companies linked to the reclamation of islands in the South China Sea.

The Philippines and China have long had a fraught relationship over the disputed South China Sea, with China disputing the Philippines sovereign rights on the West Philippine Sea portion which is an exclusive economic zone of the Philippines.

‘Prepare for the worst’

On the other hand, Mr. Locsin said China should “prepare for the worst” if its naval exercises cross into Philippine waters. This comes after China launched ballistic missiles in the South China Sea, said to be a threat to the US’ aerial activities in what China says are no-fly areas of the sea.

“I warned — and this kind of irritated Beijing — should those naval exercises spill over into my territory, then they must expect the worst,” he said.

A number of actions done by China have prompted Mr. Locsin to file diplomatic protests. Mr. Locsin said that despite the protests, he is wary about asserting the Philippines’ right to the West Philippine Sea and would rather keep its row with China between the two countries, without the help of the Arbitral Court of the United Nations Convention on the Law of the Sea (UNCLOS).

“What if it reopens (the case)? The question is, was it a violation of Philippine sovereignty? Our ruling already defined what’s ours. But if that is the question I’m going to bring up again to another court, they may reopen it. What if they change their minds? I’m even afraid that some of our neighbors may want to bring it up just precisely to lose it. I trust no one in this world,” he said.

The Philippines brought an arbitration case against the People’s Republic of China concerning a number of issues over the South China Sea. The Permanent Court of Arbitration ruled in favor of the Philippines in 2016.

Sangley Point

In a statement on Friday evening, Palace Spokesperson Harry L. Roque said “The Philippines considers the United States and China as special friends and trading partners. We hope that both partners of the Philippines will be able to draw an understanding and resolve any and all issues between them amicably and peacefully.”

He added that he hopes both China and the US will resolve any issues “amicably and peacefully.”

The statement comes after Cavite Governor Janvic C. Remulla said on Thursday that if there are security risks, he might terminate the contract with one of the subsidiaries of China Communications Construction Co. (CCCC) which is involved with the Sangley project. CCCC is among the Chinese companies blacklisted by the US Department of Commerce earlier this week for its link to reclamation activities off the South China Sea.

However on Friday, Mr. Remulla said he will leave it up to the national government to decide on the matter.

The first phase of the airport project is a joint effort of CCCC and MacroAsia Corp. and is expected to finish within a month.

Mr. Roque said that the President considers both the US and China as “special friends and trading partners” of the Philippines and has created an independent foreign policy. — Gillian M. Cortez

Rice farmers, consumers receive P100-B worth of assistance and savings – DA

MORE THAN P100 billion in assistance and savings has been given to rice farmers and consumers, according to Agriculture Secretary William D. Dar.

In a statement, Mr. Dar said that the national government has provided an estimated P34 billion worth of assistance to rice farmers in efforts to improve their incomes and output. The assistance is also meant to address stiffer market competition as a result of the entry of imported rice due to Republic Act No. 11203 or the Rice Tariffication Law (RTL).

According to Mr. Dar, the financial aid given to farmers includes P10 billion worth of free seeds, fertilizer, and farm machinery, among others, under the Rice Competitiveness Enhancement Fund (RCEF); P8.5 billion under the Rice Resiliency Program; P7 billion from the National Rice Program of the Department of Agriculture (DA); P6 billion as amelioration under financial assistance programs; and P2.5 billion in credit.

Mr. Dar said the amount is more than half of the DA’s approved P64.7 billion budget for the year and is on top of the free irrigation water services provided by the National Irrigation Administration (NIA).

“This alone indicates the importance and priority given to rice farmers, and this is just for the first year of RTL alone, we are striving for a bigger allocation for the rice sector in 2021,” Mr. Dar said.

The DA claimed that the influx of imported rice into the local market resulted in a drop in price for consumers of regular milled rice, to P37 per kilogram from the previous price of P45.

The lower prices of rice has resulted in P72 billion in savings for consumers, according to the DA, which enabled them to purchase other basic food commodities and necessities.

“This allowed our less privileged countrymen to buy more food from savings generated from low inflation,” Mr. Dar said.

Mr. Dar said that despite the effects of the coronavirus disease 2019 (COVID-19) pandemic on the country’s economy, rice supply and prices have remained stable under the RTL.

“Research-wise, we cannot fully assess the impact of RTL within just a short period of time. We cannot use unilateral results of studies to push a change course. We know there will be birth pains,” Mr. Dar said. — Revin Mikhael D. Ochave

72 deceased OFWs brought home from Saudi Arabia

THE remains of 72 overseas Filipino workers from Saudi Arabia were repatriated to the Philippines on Friday, the Overseas Workers Welfare Administration (OWWA) reported.

“They are home. 72 fallen Saudi OFWs will be reunited with their families and laid to eternal rest,” OWWA Administrator Hans Leo J. Cacdac said in a social media post on Friday.

The bodies were brought home through a chartered flight. Sixty-two of the OFWs passed away from the coronavirus disease 2019 (COVID-19), while the other 10 died of other natural causes.

Three other bodies from Riyadh were repatriated on Friday through a commercial flight. These OFWs did not die of COVID-19.

This is the fourth batch of remains flown over from Saudi Arabia since July — 267 bodies have been scheduled for repatriation.

The repatriation of the fallen OFWs is “more than a government duty,” Labor Secretary Silvestre H. Bello III said in a statement on Friday. “This is the government’s way of paying respect and giving recognition to our modern day heroes’ valuable contribution to the growth of the Filipino families and the country,” he said. — Gillian M. Cortez

DoH reports 3,999 new COVID cases, 91 fatalities

The Department of Health (DoH) reported 3,999 new positive cases of the coronavirus disease 2019 (COVID-19) on Friday, bringing the total number of cases close to 210,000.

In its case bulletin on Friday, the DoH said “A total of 3,999 confirmed cases are reported based on the total tests done by 101 out of 110 current operational labs.”

The total number of COVID-19 cases as of Aug. 28 is now 209,544, with 71,745 of those active cases.

Despite the increase, the DoH said 91.2% of the cases are mild while 6.8% are asymptomatic. Severe cases are at 0.8% of the total and critical cases, 1.2%.

The health department also reported 510 additional recoveries Friday, making the recovery count 134,474. Deaths are at 3,325, with today’s additional mortalities at 91.

The DoH also reported the country’s hospital capacity, with 50% of 1,700 ICU beds occupied as of Aug. 27. There is also 52% availability of 13,000 isolation beds; and 50% availability of 5,300 ward beds.

However hospital capacity in Metro Manila is higher than the national average with 69% of ICU beds occupied; 70% of isolation beds occupied; 76% of ward beds occupied. — Gillian M. Cortez

DoH hires 700 more healthcare workers

As the country grapples with the coronavirus disease 2019 (COVID-19) pandemic, the Department of Health (DoH) said it has hired an additional 700 healthcare workers as it works to fill 10,000 openings. The new hires bring the total number of healthcare workers hired to around 7,800.

“Meron tayong 700 plus additional healthcare workers (We have 700 plus additional healthcare workers) …we were able to hire 7,847 out of the 10,473 approved slots,” said Health Undersecretary Maria Rosario S. Vergeire at a press briefing on Friday.

The health undersecretary added that the newly hired workers have already been deployed in over 362 health facilities nationwide.

The DoH announced it will hire more healthcare workers for government facilities as the demand for medical manpower has increased due to the COVID-19 pandemic.

Ms. Vergeire said even with most of the openings already occupied, “We are still not going to stop here. We still need to fill out the 10,473 slots at nandyan pa rin ang expedited process(and our expedited process is still there) for this hiring of healthcare workers because we really need to augment our facilities as of this time.” — Gilliam M. Cortez

CSC head denies claims she ordered information hidden from legislators

The Civil Service Commission (CSC) head denied on Friday that she had suppressed information regarding irregularities done by officials of the Philippine Health Insurance Corporation (PhilHealth).

In a statement released on Friday, CSC Chairperson Alicia dela Rosa-Bala dismissed the claims made by CSC Commissioner Aileen A. Lizada who said the commission had made a directive barring the release of data on CSC cases against officials of the state insurer.

“I am categorically stating that as the CSC Chairperson, I made no directive, guidance or insinuations for the Commission to suppress information in any case, whether on Philhealth or on any other government agency,” Ms. Dela Rosa-Bala said.

Ms. Dela Rosa-Bala has repeatedly denied the allegations since Ms. Lizada first said on Tuesday that the chief of the CSC had given “guidance” to withhold details of pending administrative cases of Philhealth officials from lawmakers. Ms. Lizada had made the claim at the joint hybrid hearing of the House committee on public accounts and the committee on good government and public accountability which is investigating PhilHealth’s alleged anomalies.

The CSC Chairman said that the cases of the officials before the CSC were not over issues of corruption.

“The pending cases before the Commission are mostly administrative cases involving personnel actions, which are non-disciplinary in nature. CSC does not handle criminal cases involving graft and corruption,” she said. — Gillian M. Cortez

DPWH to complete design of Panguil Bay Bridge by December

THE geotechnical survey to gather data for the design and construction of the P7.38 billion Panguil Bay Bridge in Northern Mindanao has been fast-tracked and is expected to be complete by December this year, the Department of Public Works and Highways (DPWH) said.

In a statement, Public Works and Highways Secretary Mark A. Villar said the engineering design preparation of the 3.7-kilometer bridge is ongoing, and once completed the bridge will connect Tangub City in Misamis Occidental and the town of Tubod in Lanao del Norte.

The bridge is expected to cut travel time between the two areas to seven minutes from the previous two and a half hours.

“Panguil Bay Bridge is a realization of the promise to make Filipinos even more connected by building a mega bridge that will provide convenient inter-island travel in the archipelagic topography of Northern Mindanao,” Mr. Villar said.

During an offshore inspection at Panguil Bay, DPWH Undersecretary Emil K. Sadain said once the design of the bridge is finalized, civil works to construct it may immediately begin in the first quarter of 2021.

Mr. Sadain said that 23 more borehole test analyses from 45 geotechnical tests are needed to be performed to ensure reliable references for the bridge’s final design.

“The result of this geotechnical investigation onshore and offshore as well as bathymetric data from the study of the underwater depth of ocean floors is vital to ensuring that the Panguil Bay Bridge is built on good foundations with high strength to weight ratio,” Mr. Sadain said.

Once completed, the 3.7-kilometer bridge will be the longest in the Philippines. It will surpass the length of San Juanico Bridge in Eastern Visayas which is 2.17 kilometers long.

Funds for the construction project came from a loan agreement between the Philippine government and Korean Export Import Bank. — Revin Mikhael D. Ochave

Customs raid yields P15.7-million worth of smuggled cigarettes

A raid by the Bureau of Customs of a warehouse in Bocaue, Bulacan led to the discovery of 246 master cases of suspected smuggled and counterfeit cigarettes with an estimated value of P15.7 million.

The Bureau’s Enforcement and Security Service Quick Reaction Team (ESS-QRT) raided a warehouse in Bocaue, Bulacan on Aug. 25, where it discovered the cigarettes which included brands such as Marlboro, Astro, D&B, Two Moon, and Union cigarettes.

Palace backs media welfare proposal

The Palace said it backs lawmakers’ proposals to strengthen media workers’ welfare.

In a statement released on Friday, the Presidential Task Force on Media Security (PTFoMS) said it welcomed the approval of House Bill No. 2476 or the Media Workers’ Welfare Bill by the Lower House Sub-committee on Labor Standards of the House of Representatives.

PTFoMS Executive Director Joel Sy Egco said in a statement, “Anything is possible when we get our act together. Finally, a law that will protect the economic rights of our media workers will soon be a reality, a testament to the government’s relentless effort to protect our media workers.”

If legislated, the bill will address labor issues of media such as requiring hazard pay of P500 per day for media workers covering risky events and coverages. Employers will also be required to provide safety and protective gear for media if needed.

Other than hazard pay, the bill will mandate insurance and hospitalization benefits, and overtime and night shift pay for media practitioners.

The bill is authored by ACT-CIS Partylist Representative Niña Taduran, who was a former reporter. — Gillian M. Cortez

PHL eyes samurai, dollar bond sale

By Beatrice M. Laforga, Reporter

The government is looking to return to the Japanese and US bond markets later this year to raise up to $2.35 billion, documents from the Budget department showed.

Citing data from the National Treasury, the latest Budget of Expenditures and Sources of Financing (BESF) report showed there are two proposed offshore bond issuances for the rest of 2020 — $1.35 billion in yen-denominated bonds or the so-called “samurai bonds;” and $1 billion in dollar global bonds to be offered in the fourth quarter.

The Treasury aims to raise $6 billion (P289.73 billion) from the offshore market for the entire year. In the first half, it already raised $3.55 billion (P170 billion) from the sale of dollar- and euro-denominated global bonds, leaving a balance of $2.45 billion (P120 billion) left.

“We are still watching market developments and take cognizance of the Fed (US Federal Reserve) decision,” National Treasurer Rosalia V. de Leon said in a Viber message Friday.

Reuters reported the Fed announced a new strategy last week that is more supportive of the US labor market and its adoption of a “loose form of average inflation targeting.”

If the proposed issuances will push through, this will be the second time the Philippines will tap the dollar bond market this year after its issuance in May when it borrowed $1 billion in 10-year notes and $1.35 billion in 25-year papers.

The last time it offered the “samurai bonds” was in August 2019 when it sold ¥92 billion across four tenors: ¥30.4 billion in three-year bonds, ¥21 billion in five-year papers, ¥17.9 billion in seven-year instruments and ¥22.7 billion in 10-year notes.

The Philippines’ first offshore issuance this year was through the euro-denominated bonds, raising €600 million in nine-year bonds and another €600 million in three-year debt.

In a note on Friday, the Asean +3 Macroeconomic Research Office (AMRO) said the widening deficit and announcement of an increased borrowing plan next year could push up the rates of government bonds in the local market.

“A risk worth flagging is the widening fiscal deficit and a sizable issuance plan for 2021. Bond yields may rise as investors position themselves ahead of the increase in supply,” the report read.

However, it said the Treasury’s move to reject the bids on the 20-year Treasury bonds (T-bonds) offered last week was a “positive sign” that the government is not giving in to the urgent need of raising funds and is willing to wait for reasonable rates before issuing bonds.

The government plans to raise P3 trillion this year, 74% of which will be sourced locally while the balance will be coming from foreign lenders.

This will be used to plug its funding gap seen to hit 9.6% of gross domestic product (GDP) this year.

Gross borrowings reached P1.7 trillion in the first half.

For next year, global bond issuances are estimated to reach $6 billion (P290 billion), similar to the program this year.

The government plans to borrow another P3 trillion next year, 85% from the domestic market and the rest offshore, to fund its increased P4.506-trillion spending plan and plug the fiscal gap projected to teach 8.5% of GDP.

BSP sees August inflation at 2.5-3.3%

Inflation likely ranged at 2.5% to 3.3%, mainly driven by an increase in oil prices, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Friday.

“Higher domestic prices of gasoline and LPG (liquefied petroleum gas) provide upward pressure during the month,” Mr. Diokno said in a Viber message to reporters on Friday.

Oil prices in the global market have seen some upward correction in the past months as restriction measures are eased and with demand recovering.

Data from the Energy department showed since Aug. 11, domestic oil companies have raised the price of gasoline by a total of P0.96 per liter.

The data also showed the price of LPG rose by P0.15 per kilogram (kg) or about P1.65/11-kg cylinder since Aug. 1. AutoLPG prices have likewise been raised by P0.10 per liter.

On the other hand, Mr. Diokno said factors that can offset the faster rise in commodity prices include the lower electricity prices paired with the strengthening of the peso alongside “broadly stable food prices”.

Power rates have been going down for the fourth straight month. For August, Manila Electric Company said electricity rates will be lower by P0.2055 per kilowatt-hour (kWh) to P8.4911 per kWh.

Meanwhile, the peso reached the P48 versus the greenback level in the recent weeks. The local unit closed at P48.485 per dollar on Friday, appreciating by 14.50 centavos from its previous finish of P48.63. Its Friday close is also its strongest in more than three years or since it ended trading at P48.48 against the dollar on Nov. 4, 2016.

August inflation data will be released on Sept. 4.

Last month, the consumer price index rose 2.7%, quicker than the 2.5% in June as well as the 2.4% in July 2019. Year-to-date, inflation averaged 2.5%.

The central bank last week raised its 2020 inflation forecast to 2.6% from the 2.3% it gave in June, still well within its 2-4% target.

The Monetary Board decided to maintain the benchmark rates last week, citing the stable inflation and early signs of economic recovery. — Luz Wendy T. Noble

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