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Stocks drop as Metro Manila remains on lockdown

LOCAL SHARES retreated on Wednesday as investors assessed the economic impact of the government’s decision to keep the National Capital Region on lockdown for another two weeks.

The bellwether Philippine Stock Exchange index (PSEi) fell 25.42 points or 0.45% to close at 5,626.25 yesterday. The broader all shares index shed 15.26 points or 0.44% to 3,399.98.

“The market ended lower after investors priced in the economic impact of the government’s decision to still place major cities under lockdown measures until the end of the month,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.

He noted the extension of the quarantine in these cities would mean a majority of the second quarter, or two out of three months, would account for the period when the economy is mostly asleep.

The government announced on Tuesday that Metro Manila, Laguna and Cebu City would remain under enhanced community quarantine (ECQ) until May 31, the third time it extended the ECQ from its original April 13 deadline.

This makes the Philippines one of the countries in the world with the longest lockdown emerging from the coronavirus disease 2019 (COVID-19) pandemic, Reuters noted in a report.

But compared to how it was two months ago, the government has relaxed the quarantine measures in other provinces to a general community quarantine (GCQ). It means these areas will be allowed to operate with a bigger — but still not 100% — workforce capacity.

“On a positive note, if the areas now placed under GCQ would turn out to be successful, then cities currently under modified ECQ may follow suit in the coming weeks,” Mr. Pangan said.

Five of six sectoral indices at the PSE closed lower on Wednesday. Mining and oil dropped 59.08 points or 1.28% to 4,548.88; financials lost 10.39 points or 0.88% to 1,162.77; services shaved off 10.28 points or 0.77% to 1,310.79; property trimmed 21.61 points or 0.76% to 2,818.09; and holding firms slid 10.50 points or 0.18% to 5,594.91.

Industrials was the only sub-sector that gained, closing the session up 9.69 points or 0.12% to 7,548.71.

Value turnover stood at P4.79 billion, down from P5.37 billion in the previous day. Some 422.90million issues switched hands.

Decliners outran advancers, 111 against 64, while 48 names ended unchanged.

Net foreign selling was trimmed to P394.37 million yesterday from P968.61 million on Tuesday.

“With the market still trading sideways, nearest support still sits at the 5,500 area, while closes resistance may be pegged at 6,000,” Mr. Pangan said.

Meanwhile, Wall Street’s three major averages closed around their session lows overnight. The Dow Jones Industrial Average fell 457.21 points or 1.89%, to 23,764.78; the S&P 500 lost 60.2 points or 2.05%, to 2,870.12; and the Nasdaq Composite dropped 189.79 points or 2.06% to 9,002.55. — Denise A. Valdez with Reuters

Agri dep’t seeking to tap P66B from stimulus funds

THE Department of Agriculture (DA) sought P66 billion worth of funding from Congress to bolster the rice supply, improve logistics, and provide emergency employment in response to the pandemic.

The DA said it is asking for P31 billion for the so-called Ahon Lahat, Pagkaing Sapat (ALPAS) Kontra sa COVID-19, a food-security initiative; P20 billion to improve logistics and food markets; and P15 billion for a cash-for-work program.

In a virtual hearing of the House committee on agriculture and food on Wednesday, Agriculture Secretary William D. Dar said that the “updated” ALPAS seeks to increase the rice buffer stock to 30 days from the current 15.

“The rice resiliency program with an earlier budget of P8.5 billion has been funded now by the national government and will be implemented during the wet season. So we are putting forward a program to continue with this rice resiliency for the dry season planting which is in October and November,” he said.

The Inter-Agency Task Force for the Management of Emerging Infectious Diseases recently approved P8.5 billion for the Rice Resiliency Project under the Plant, Plant, Plant program.

By the end of 2020, the DA’s rice resiliency project aims to boost palay production to 22.12 million metric tons (MT), which is equivalent to 13.51 million MT of rice after milling.

Mr. Dar assured the panel that the year-end rice inventory was good for about three months.

“We have enough rice, we are just finishing the dry season harvest and we are assuring the public that our outlook for rice for the year is positive… Hoping that we will continue to elevate our gain in terms of rice production and rice productivity,” he said.

“Ngayon, nasa 87% (rice sufficiency) pa lang tayo. Ngayong nagpadagdag tayo ng budget na rice resiliency project for this season, that will bring us to 94% sa rice sufficiency. So meron pa tayong anim na porsyento. Kung tatanungin niyo na kung kaya natin maging 100%, technically yes (Right now, we are at 87% rice sufficiency. Now that we have the funding for rice resiliency this season, that will rise to 94%. That leaves us six percentage points away from 100% self-sufficiency, which is technically possible),” he added.

Mr. Dar said he is also open to review the Rice Tariffication Law or Republic Act 11203 once it hits two years from implementation.

“Ako po ay, sabi ko palagi, pagbigyan natin ang batas. One year lang ang nakaraan. Ako after two years, pwedeng i-revisit. But as I have said, nasa power din ng House of Representatives na pwedeng i-revisit, ano pa yung i-strengthen (I have always said that the law must be given time to show results. It’s only been one year. We can revisit it after two years. But as I have said, the House has the power to revisit and even strengthen it),” he said.

The measure, enacted in February 2019, lifted the restrictions on rice imports but charged tariffs of 35% on Southeast Asian grain. The law effectively lowered rice prices for consumers but eroded farmer incomes.

He said that the P20-billion food logistics and markets component will ensure that farmers gain the ability to sell directly and benefit the most from their produce.

“We have to open up that concept of food markets where retail can also be done. We have to learn how food markets evolve in other countries so that we will get the best practices on how food markets are being managed and see to it that the farmers are getting the benefits. It should be a win-win for the producers, it should be a win-win for the consuming public,” he said.

The Cash for Work program can work alongside the Balik Probinsya, Balik Pag-Asa program which President Rodrigo R. Duterte established through Executive Order 114 to encourage urban residents and businesses to relocate to the provinces.

“We see to it that this would be also one mechanism for Balik Probinsya enrollees. Initial work can be provided for them so that they have enough cash to buy their basic requirements. We are ready if given the chance to start right away. We are realigning some of the budget of the department to now participate this early,” he said.

Mr. Dar also called on the Department of Budget and Management (DBM) to consider exempting the DA from National Budget Circular No. 580 which states that 35% of the budget of government agencies will no longer be released.

“If we want to sustain and elevate food production, food productivity, we should be exempted from setting aside 35% of the budget for COVID pandemic. You know, in fighting the COVID pandemic, we also have to fight with nutritious food and sustained (supply). The threat of hunger is as important as the threat of COVID-19,” he said.

Mr. Dar said he will be submitting a formal letter to the DBM regarding this matter.

“Wala pa kaming formal na sulat na galing sa kanila (The DBM has not notified the DA officially). I will formally submit a letter seeking immediate exemption, hindi yung tingi-tingi na exempt (and not seek exemptions piecemeal),” he said. — Genshen L. Espedido

Life insurance companies seeking to continue online policy sales after ECQ

THE life insurance sector is appealing to the Insurance Commission (IC) to allow agents to continue selling online even after the enhanced community quarantine (ECQ) is lifted.

In an e-mail interview, Philippine Life Insurance Association, Inc. (PLIA) President Benedicto C. Sison said it will ask the IC to extend beyond June 30 the authorization for digitally-assisted selling, which was initially adopted to help agents sell during the ECQ.

Mr. Sison said continuing the initiative even after the strict home quarantine protocols are lifted will ensure the safety of the agents if coronavirus disease 2019 (COVID-19) lingers with no cure available.

“We certainly hope that this means that in ‘decoupling’ the use of these initiatives from the ECQ, the IC is open to further considering the continued use of these initiatives even post-ECQ… as the other restrictions for safeguarding people against the spread of the virus will remain and continue to create impediments to face-to-face selling,” Mr. Sison said.

The IC in early April allowed both life and non-life insurers to sell their products using information and communications technology (ICT) or other technology enabling remote “face to face” communication.

The directive is set to expire on June 30.

PLIA’s Mr. Sison said IC should extend the period “until a vaccine” is available and the virus “is eliminated,” adding that the regulator could even adopt ICT-enabled sales processes as a permanent option for the industry.

The two-month long ECQ in Metro Manila will transition to a modified ECQ starting May 16. Laguna and Cebu City will undergo the same transition, during which more businesses will be allowed to operate. Meanwhile, the ECQ has been lifted in other parts of the country deemed at less risk of coronavirus infection.

Mr. Sison said IC should also allow insurance firms to conduct agent examinations via ICT or other technology channels as the ban on mass gatherings and strict physical distancing measures are expected to be imposed beyond the quarantine period.

“Distributor recruitment has slowed with the discontinuance of IC agent examinations during the ECQ,” he said.

He said PLIA has been helping the regulator come up with recovery plans for the entire insurance industry.

In the non-life sector, Philippine Insurers and Reinsurers Association (PIRA) Executive Director Michael F. Rellosa has said that its members were asking the IC to relax rules on its capital buildup program to give relief to companies reeling from falling investments and weak sales.

Mr. Rellosa said the insurance regulator should suspend or lower the minimum net worth requirement of P900 million for this year and 2021 after the value of assets held by companies was eroded by market volatility.

In mid-April, the IC conducted a survey to gauge the impact of the coronavirus pandemic on insurance firms. Insurers were scheduled to submit their replies by May 8 with results not yet available.

The insurance industry’s premiums rose 2.76% to P224.97 billion at the end of September.

The life insurance sector accounted for P172.05 billion of net premiums written in the period, while the non-life sector generated P44.02 billion. — Beatrice M. Laforga

New oil import tariffs expected to raise P6.78 billion

THE government could raise P6.78 billion in 2020 from oil import tariffs imposed to help fund the coronavirus disease 2019 (COVID-19) containment effort, the Department of Energy (DoE) said Wednesday.

Executive Order No. 113, issued by President Rodrigo R. Duterte on May 2, imposed a temporary 10% hike in taxes on imported crude oil and refined petroleum products.

Energy Undersecretary Felix William B. Fuentebella told reporters that the projection covers expected oil import revenue between May and December.

The added duties will raise the price of gasoline by P0.60 per liter (L), diesel by P0.84/L, and kerosene by P0.55/L, based on the price movement in the first week of May.

May earnings are estimated at P508.61 million, the DoE said.

The DoE-Oil Industry Management Bureau (OIMB) recently reported that oil import volumes in the first quarter decreased by as much as 460 million liters from a year earlier to 3.3 billion liters.

March imports totaled 632.07 million liters.

Earlier, Bureau of Customs (BoC) Assistant Commissioner Vincent Philip C. Maronilla told BusinessWorld that the increased import duty rate might generate “substantial revenue” despite weak demand for petroleum products.

“I think there is a basis to expect that despite the low demand, a positive duty rate applied against the projected volume for the succeeding months will result in substantial revenue for the government,” the BoC spokesperson said in a Viber message.

According to Rino E. Abad, director of the DoE-OIMB, retailers saw a 50% drop in sales of petroleum products in March because of a general decline in demand due to the lockdown imposed to contain the spread of COVID-19.

At least 10% of gasoline stations nationwide have closed.

This week, most oil companies raised prices of gasoline rose by P2.00/L, diesel P1.90/L, and kerosene P1.25/L.

Mr. Abad said the price uptick followed the Organization of the Petroleum Exporting Countries’ decision to cut oil output by 9.7 million barrels per day until the end of June.

The added oil import duties will be discontinued once a trigger price is breached. The DoE set this at $64 per barrel of oil.

The effect of the additional oil import duties will be reflected in the fuel pump price movement 15 days from the date of its implementation, or around the third week of May.

To ensure the continued supply of fuel, the DoE is issuing passes to oil companies to facilitate their operations during the lockdown. — Adam J. Ang

IT-BPM industry beats revenue growth target in 2019

THE Information Technology and Business Process Association of the Philippines (IBPAP) said revenue rose 7.1% to $26.3 billion in 2019, exceeding its targeted 5.2% growth rate.

IBPAP in a statement Wednesday noted that the posted revenue growth was also near the high end of its medium-term projection, which in November was tempered to 3.5-7.5% revenue compound annual revenue growth for the 2020 to 2022 period.

“It’s also a testament to the IT-BPM sector’s resilience and tenacity — that despite global and domestic headwinds, the Philippines remains competitive, relevant, and thriving,” IBPAP Chief Executive Officer and President Rey C. Untal said.

IBPAP had to revisit its targets to take into account geopolitical factors, automation, protectionist policies, and the rapid transformation of business models.

Employment in the industry grew 5.8% to 1.3 million employees in 2019, above the 4.7% target.

IBPAP said growth was driven by expansions in the countryside including companies in Bacolod, Cebu, Davao, Iloilo, Laguna, and Pampanga, which accounted for more than 70% of full-time employee growth.

“There were also a considerable number of new investors and locators that set up their operations in the country. Half of the entrants were global in-house centers (GICs) providing services in health care, finance and accounting, human resources, information technology (IT) and software, and content moderation.”

IBPAP said technology and a pivot to higher-value skills within the workforce also contributed to the growth.

The business group said that the coronavirus disease 2019 (COVID-19) pandemic will have an effect on 2020 headcount and revenue, noting that the industry has been increasing its capacity to work from home to about 58% of employees, with 15% working on-site or in nearby hotels.

“A couple of weeks into the ECQ, a framework towards a gradual exit was developed, discussed, and shared with industry stakeholders. This guideline is a set of recommendations, which individual IT-BPM companies can tailor-fit to their own transition plans as they exit towards a new normal,” IBPAP said. — Jenina P. Ibañez

UNESCAP sees pandemic ushering in green measures to help oceans recover

THE coronavirus disease 2019 (COVID-19) outbreak holds the potential for helping marine environments recover if economies adopt greener practices, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said.

In a report, Changing Sails: Accelerating Regional Actions for Sustainable Oceans in Asia and the Pacific, it said that large-scale recovery investment being put in place by governments may help turn the tide towards improving marine sustainability after the pandemic.

This is premised on a shift towards sustainable practices such as green shipping, aquaculture, and tourism, among others.

United Nations Undersecretary-General Armida Salsiah Alisjahbana said the pandemic points to an opportunity to protect the marine environment after the pandemic demonstrated the immediate impact of reduced emissions and energy demand.

“Many of the challenges in the conservation and sustainable use of the oceans and marine resources lie in the transboundary and highly complex nature of ocean management, coupled with the fragmented understanding of the interaction between oceans and human activities,” Ms. Alisjahbana said.

Countries in the Asia-Pacific are among the world’s top plastic polluters.

ESCAP said that eight of the 10 major rivers in Asia are responsible for 95% of plastic waste leaking globally into oceans.

ESCAP called for the use of scientific and technological advances and the consistent enforcement of international conventions and standards on the protection and sustainable use of oceans.

“All of us know that the ocean’s health is very fragile especially due to the impact of climate change,” Ms. Alishjahbana said.

ESCAP sought stronger regional cooperation and dialogue to support the connectivity and data needs of Pacific small island developing states, which remain isolated from global and regional maritime trade. — Revin Mikhael D. Ochave

On hold: Quarantined tax assessments

(Part I)

After nearly two months under enhanced community quarantine (ECQ), Metro Manila is now looking to ease some of the restrictions without compromising public safety. In anticipation, local government units (LGUs) are preparing the guidelines to transition towards new normal. The call to adjust operations on an unprecedented scale is proving to be challenging to industries like the academe, among others.

Even government agencies have not been spared from the struggle. On the tax front, the Bureau of Internal Revenue’s (BIR) collection target for 2020, initially set at P2.58 trillion, was slashed to P2.26 trillion due to the slowdown in tax collections and the inability to conduct audits.

While under ECQ, the BIR issued revenue regulations (RR) and Revenue Memorandum Circulars (RMC) covering tax audits. RMC 31-2020 and RR 7-2020 as amended by RRs 10-2020 and 11-2020, extended the filing deadline of correspondences concerning tax assessments (e.g., replies to assessment notices and submission of documents for reinvestigations). RMC No. 34-2020 and the same RRs also suspended the running of the statute of limitations for tax assessments.

In this article, I’ll cover the implications of RMC 31-2020 and RR 11-2020 to taxpayers with existing tax audits. RMC 34-2020 will be covered next week.

To set the context, let’s revisit the Philippine tax audit process. It starts with the issuance of a Letter of Authority (LoA), allowing the BIR to conduct the audit. After the examination of the taxpayer’s records, the BIR will issue a Notice for Informal Conference (NIC), containing preliminary findings and the schedule for the conference with the revenue officers.

If the BIR does not find the explanations or documents submitted at the conference satisfactory, a Preliminary Assessment Notice (PAN) will be issued. The taxpayer will have 15 days to reply. If the findings remain unresolved, the BIR will issue a Formal Assessment Notice and a Formal Letter of Demand (FAN/FLD). Within 30 days, the taxpayer must file for reconsideration or reinvestigation as a form of protest. Otherwise, the assessment shall become final and executory. In case of a request for reinvestigation, the taxpayer is given an additional 60 days from the filing of the protest to submit supporting documents.

The BIR then has 180 days to decide on the protest and issue a Final Decision on Disputed Assessment (FDDA). If the taxpayer disagrees with the FDDA, an appeal may be filed with the Commissioner of Internal Revenue (CIR) or the Court of Tax Appeals (CTA) within 30 days.

Under RR 11-2020, the deadline for filing of the following documents or correspondences which fall due within the quarantine period starting 16 March 2020 until 30 days from the lifting of the ECQ, shall be extended for “30 days from the date of the lifting of the quarantine:”

1. protests/replies to the NIC, PAN, and FAN/FLD;

2. submission of relevant supporting documents for requests for reinvestigation;

3. appeal to the CIR on assessments which have reached the FDDA stage; and

4. other similar letters and correspondences with due dates.

While not explicitly mentioned, the deadline for submission of documents in response to an LoA may also be extended under Item No. 4 above. Effectively, all tax investigation deadlines at the BIR are extended — from replying to the LoA to appeals to the CIR.

Initially, the BIR under RMC 31-2020 only extended the deadlines to filings/responses falling due within the ECQ. However, RR 11-2020 has expanded this to cover taxpayers whose deadline to respond falls due within 30 days from the date of the lifting of the ECQ.

Moreover, RR 11-2020 clarified two relevant points, noting the restricted coverage of RMC 31-2020:

1) RMC 31-2020 limited the extension to taxpayers in Luzon and other jurisdictions, where the LGUs have adopted and implemented the ECQ or other similar measures. For simplicity, the RR modified this by applying the extension throughout the Philippines.

2) The RMC used the term “quarantine” to refer only to ECQ. The RR broadened the coverage to include any announcement by the National Government, resulting in limited operations and mobility. Thus, the term now includes, but is not limited to, “community quarantine,” “ECQ,” “modified community quarantine (MCQ),” and “general community quarantine (GCQ).”

These issuances are certainly a welcome development for taxpayers with existing tax audits, as it was a struggle to retrieve documents from previous years (on top of existing daily duties) even prior to the quarantine. Nonetheless, there are some aspects of the extension that raises some questions.

For one, the terms “Original Due Date” and “Extended Due Date” in RR 11-2020 may require further clarity. As mentioned, the extension also applies to taxpayers whose original deadline to respond falls within 30 days from the date of the lifting of the ECQ. The extended due date, on the other hand, is within 30 days from the date of the lifting of the quarantine. It is worth noting that the latter is broader in scope as it includes MCQ, community quarantine, and GCQ. Based on the government’s recent announcement, some areas will transition from ECQ to GCQ or Modified ECQ (MECQ) on May 16. Does this transition qualify as “lifting of the ECQ” and therefore the 30-day period from the “lifting of the ECQ”will start on May 16 regardless of whether the GCQ/MECQ period exceeds those 30 days? Or, since the MECQ may just be as restrictive as the ECQ, then the 30 days from the lifting of the ECQ will start when the MECQ is lifted?

Further, since all the extended deadlines are uniformly set to 30 days after the lifting of the quarantine, this may be disadvantageous to some taxpayers who are due to submit supporting documents in relation to a protest to FAN.

To illustrate, let’s assume that there are two taxpayers with existing tax audits. Taxpayer A filed its request for reinvestigation on Jan. 16, while Taxpayer B filed on March 15. Thus, the 60-day period to submit additional documents for Taxpayer A and B would be on March 16, and May 14, respectively. Since both deadlines fall due during the ECQ period, and assuming both are given a filing extension only until June 15, Taxpayer A would have an additional 90 days from its original deadline on March 16, while Taxpayer B would only have an additional 30 days from May 14. In case Taxpayer B is only able to operate and retrieve supporting documents after the lifting of the quarantine, effectively, it was unable to avail of the 60-day period it was allowed under the law since it only had 30 days to meet the deadline.

Considering that the extensions granted are unprecedented, the confusion arising from varied interpretations may be dispelled if there is another issuance providing sample scenarios on the application of the extension for further guidance.

In the meantime, it may be prudent for taxpayers who are due to file their protest letters with the BIR to file these the soonest, to avoid technical challenges from the BIR. As mentioned, the assessment is deemed final and executory if the protest letter is not timely submitted. In case of doubt, it is better to err on the side of caution than to take a regrettable risk.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Kathrine Joy Capales is a manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

kathrine.joy.capales@pwc.com

DoH criticized for data errors as coronavirus cases reach 11,618

SENATORS on Wednesday hit the Department of Health (DoH) for errors in coronavirus tracking data, saying such “incompetence” endanger the lives of the public.

Lawmakers issued the criticism as the agency reported 268 more infections yesterday, bringing the total to 11,618.

The death toll rose to 772 after 21 more patients died, it said in a bulletin. One hundred forty-five more patients have gotten well, bringing the total recoveries to 2,251, it added.

“There is no room for officials who, because of sheer incompetence or corrupt thinking, will endanger our lives that we practically entrust to them,” Senator Panfilo M. Lacson said in a statement.

Experts from the University of the Philippines have cited “a number of alarming patient-level inconsistencies, if not gross errors” in tracking data such as gender, age and residence.

The lapses “may seem small” compared with the daily data updates, but these have significant implications on reliability of scientific analyses on the pandemic, they said.

The Health department in a statement said the “alarming” errors had not affected the overall data on COVID-19 cases, adding that it had addressed discrepancy issues.

“We assure the public that the issues raised are a nominal percentage of the whole data set, and does not prejudice the overall interpretation of data and decision making,” DoH said.

Senator Sherwin T. Gatchalian said the lapses could be reflected in measures crafted by Congress and the Executive department.

“Garbage in, garbage out,” he said in a statement. “If DoH is feeding garbage data to decision makers, expect garbage decisions from the government. Accurate data and information is fundamental in governance.”

Mr. Gatchalian said the law giving President Rodrigo R. Duterte special powers in dealing with the pandemic provides that buying medical equipment should be prioritized.

DoH could use technology to improve data collection, processing and analysis, he added.

DoH said it was coordinating with data engineers, scientists, specialists and other institutions in managing data.

“We acknowledge that the system is not perfect but we continue to improve our data collection and reporting systems,” it said. “DoH welcomes feedback as we respond to the information needs and the call for transparency from our fellow Filipinos in this national response against the COVID-19 pandemic,” it added.

It also said it would launch a digital epidemiological surveillance system developed with the World Health Organization that will automate data collection processes and minimize encoding errors.

Senate President Vicente C. Sotto III noted that while the errors might be small they have significant implications.

“Reliability of data is very important,” he said at an online news briefing.

In a policy note, published on May 8, the University of the Philippines COVID-19 pandemic response team flagged inconsistencies in official data between the DoH and local governments.

For example, DoH on May 3 reported seven deaths and 28 recoveries in Laguna, while the local government counted 22 deaths and 65 recoveries. The policy note also said 516 patients had their residences in a different city. — Charmaine A. Tadalan and Vann Marlo M. Villegas

Agents to probe police officer’s b-day festivities

THE National Bureau of Investigation (NBI) will probe the birthday celebration of a high-ranking police official amid a lockdown in Metro Manila because of a coronavirus pandemic, Justice Secretary Menardo I. Guevarra said on Wednesday.

“I will ask the NBI to look into this,” he said in a mobile-phone message, referring to Metro Manila police chief Debold M. Sinas’s birthday celebration last week, photos of which circulated online.

Mass gatherings are prohibited and physical distancing must be observed during the pandemic.

“There is already an existing order to the NBI to investigate violations of quarantine protocols,” Mr. Guevarra said.

He also said he has always advised state agents “to enforce the laws fairly and uniformly.”

Interior and Local Government Secretary Eduardo M. Año called the event “uncalled for,” adding that government officials should observe “delicadeza.”

Mr. Año, who supervises the police, said he would leave it up to the Philippine National Police (PNP) to investigate the event and find out if violations had been committed.

The PNP in a statement said police chief General Archie Francisco F. Gamboa had ordered the inspector general of the Internal Affairs Service to investigate alleged violations of quarantine protocols.

Mr. Sinas has issued an apology, saying it was a “traditional mañanita” conducted by some officers and the accommodation was done “with all cautiousness.”

“I apologize for what transpired during my birthday that caused anxiety to the public,” he said in a statement. “It was never my intention to disobey any existing protocols relative to the implementation of the enhanced community quarantine.” — Vann Marlo M. Villegas and Gillian M. Cortez

Typhoon Ambo intensifies into a severe tropical storm as it moves closer to land

HEAVY rainfall is expected in areas along the path of typhoon Ambo, which has strengthened into a severe tropical storm as of Wednesday with maximum sustained winds of 95 kilometers per hour (km/h) near the center and gustiness of up to 115 km/h. Based on weather bureau PAGASA’s 5 p.m. update, Ambo was located 315 km east of Borongan City, Eastern Samar and still moving west-northwest towards Camarines Sur. On Thursday, moderate to heavy rains are expected over the Eastern Visayas Region, and the provinces of Catanduanes, Albay, Sorsogon, and Masbate. By Friday afternoon, Ambo is forecasted to be 20 km north-northwest of Daet, Camarines Norte. “Flooding and rain-induced landslides may occur in highly to very highly susceptible areas during heavy or prolonged rainfall,” PAGASA warned. The Philippine Institute of Volcanology and Seismology (PHIVOLCS), meanwhile, warned of possible lahar flows in river channels around Mayon Volcano. “Prolonged and heavy rainfall may generate post-eruption lahars on major channels draining the Mayon Volcano edifice,” the agency said. Mayon erupted and was highly active in January-March 2018, leaving thick pyroclastic deposits and remnant ashfall along its slopes. PHIVOLCS said communities and local government units in these areas should prepare for evacuation.

Defense chief defends plan to buy attack helicopters

DEFENSE Secretary Delfin N. Lorenzana on Wednesday defended a military plan to buy P13 billion worth of attack helicopters in the fight against Maoist rebels amid a coronavirus disease 2019 (COVID-19) pandemic.

Leftist groups have criticized the plan, saying the money is better spent in the government’s anti-COVID-19 response.

Mr. Lorenzana told an online news briefing communist rebels should end their armed struggle so the government would stop buying weapons.

He said talks on the arms deal started three or four years ago, but the US State Department approved the sale only in April.

Mr. Lorenzana said the deal was for the purchase of six attack helicopters worth $2 billion, and the government only has a P13-billion budget now.

“If we were to buy attack helicopters for that price, we can only buy one or two,” he said. — Gillian M. Cortez

#COVID-19 Regional Updates (05/13/20)

No new COVID-19 case reported in Western Visayas as region gears up for end of lockdown

WESTERN Visayas did not have a new coronavirus disease 2019 (COVID-19) case reported on May 12 just as the region was declared among the areas with low transmission risk and can end lockdown measures by May 16.

Most local leaders in the region — which covers the provinces of Aklan, Antique, Capiz, Guimaras, Iloilo, and Negros Occidental and the independent cities of Iloilo and Bacolod — expressed readiness to lift lockdown rules as they prepared to release localized rules to ensure that the COVID-19 transmission threat will continue to be under control.

The Department of Health regional office has recorded 97 cases, with 39 recoveries and 10 deaths.

Of the active cases, 14 are in hospital, eight under home isolation, and 26 in government quarantine facilities.

NEGROS
Bacolod City Mayor Evelio R. Leonardia, who immediately called an inter agency meeting Tuesday, said a “unanimous decision” was reached to accept the national government’s pronouncement and end the lockdown.

“We will no longer appeal the decision,” he said in a streamed statement Tuesday evening.

In late April, local officials appealed the decision by the national task force to ease quarantine rules in the city by May 1.

The appeal was granted. Mr. Leonardia said the lifting of the quarantine rules will be a gradual transition.

“This will happen through a transitory executive order (then) for the Sangguniang Panlungsod (city council) to come up with ordinances to further strengthen our position.”

The executive order; which will contain detailed provisions on the transition phase, will be released “the soonest possible time.”

On the other hand, Negros Occidental Governor Eugenio Jose V. Lacson has

appealed to maintain the general community quarantine policy in the province until May 31.

In a letter to the national task force dated May 12, Mr. Lacson cited that the two–week extension will give them time to complete the accreditation of its own laboratory for COVID-19 testing, which is already in the 4th of 5 assessment stages.

“While the Negrenses are all eager to revive the economy and shift to the ‘new normal’ at the soonest possible time, our enthusiasm is tempered by the lack of a testing center.”

Mr. Lacson said the local government intends to establish a protocol “that all persons entering Negros Occidental should be placed in a holding facility for 1 to 2 days while test are conducted, and until the test results are released from our own bio-lab.”

ILOILO
In Iloilo City, Mayor Jerry P. Treñas reiterated that they have been preparing for the resumption of economic activities and look forward to having businesses operating again.

“It is important for local businesses to resume operations so they can also offer employment,” he said in a media briefing.

Mr. Treñas said he was scheduled to have a series of meetings Tuesday afternoon with various sectors — business, transport, and health services — to iron out details of the transition plan.

Iloilo Gov. Arthur R. Defensor, Jr. also welcomed the classification as a low-risk area saying “it proves that the efforts of the provincial government bore fruit.”

In a statement, Mr: Defensor said he was set to meet with the governors of the other provinces to discuss border restrictions.

“We cannot just let our guards down. We will not relax because the problem is not yet over. COVID is still in the country,” he said. — Marifi S. Jara

Maguindanao hospital reopens after 24 years, ready as COVID-19 facility

A HOSPITAL in Maguindanao province, which has been closed for 24 years, has been refurbished and now ready for use as a coronavirus-disease 2019 (COVID-19) facility.

Maguindanao Governor Bai Mariam Mangudadatu, who led the opening ceremony on May 12, said the revival of the Parang District Hospital is not just a response to the COVID-19 crisis but a means of improving health services.

“We need not to focus solely on the relief assistance. Relief goods are not the remedy for COVID-19,” Ms. Mangudadatu is quoted in a statement released Wednesday by the Bangsmoro Autonomous Region in Muslim Mindanao (BARMM).

“We are also looking forward into the future in which Parang District Hospital will also be a partner hospital in the Bangsamoro Government’s AMBAG program,” BARMM Cabinet Secretary Mohd Asnin Pendatun said.

AMBAG, or the Ayudang Medikal mula sa Bangsamoro Government, is a banner program of the regional government.

BARMM, which has been classified as a low-risk area and can start easing lockdown restrictions by May 16, has 12 recorded COVID-19 cases, with seven recoveries, one death, and one still under home quarantine. — MSJ

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