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DoLE urged to suspend overseas nurse deployments

A LEGISLATOR asked the Department of Labor and Employment to suspend the overseas deployment of nurses for the duration of the coronavirus disease 2019 (COVID-19) containment effort.

“(Labor and Employment) Secretary (Silvestre H.) Bello (III) should suspend the sending of nurses abroad. We need our health care personnel here at this time of public health emergency to attend to sick Filipinos, and not to foreigners,” Cagayan de Oro Rep. Rufus B. Rodriguez said in a statement Monday.

Mr. Rodriguez was responding to reports that Germany was sending a plane to Manila to ferry “at least 75” intensive care unit (ICU) nurses to care for Germans infected with COVID-19.

He said the country’s health care system is overwhelmed with COVID-19 cases and many public and private hospitals are complaining of lack of personnel.

Mr. Rodriguez noted that due to depleted manpower, the Department of Health (DoH) is looking for volunteer doctors and nurses.

“We need those nurses bound for Germany and other jobs overseas to augment our dwindling public health workforce,” he said.

He urged the DoH to refrain from “asking for volunteer doctors and nurses but to instead hire them and pay them professionally at competitive rates.”

He said the recruits should also be given hazard pay and special risk allowance.

“They should be properly compensated. They are our modern-day heroes,” he said.

In an interview on ABS-CBN News Channel (ANC) on Sunday, ACT-CIS Party-list Representative Eric G. Yap, chair of the House committee on appropriations, said the chamber is willing to allot funds for wages of volunteer health workers equivalent to what their newly-hired counterparts in the government receive.

Mr. Yap said he will discuss with Speaker Alan Peter S. Cayetano an increase in the budget for volunteer health workers. Legislators will also meet with budget officials to discuss appropriations, he added. — Genshen L. Espedido

Manila Water, Maynilad to extend bill deadlines during ECQ

METRO Manila water suppliers said they are providing relief to customers experiencing difficulties paying their bills during the enhanced community quarantine (ECQ) imposed on Luzon.

West zone water provider Maynilad Water Services Inc. said it is suspending water disconnections for overdue accounts.

In a radio interview Monday, Maynilad Business Area Spokesperson Zmel D. Grabillo said that the company has added 30 days to its payment deadlines for monthly bills.

The 30 days come on top of the 60-day grace period that the water concessionaire usually gives its customers.

The company recently announced the suspension of meter reading and billing activities and the application of average monthly billing instead of charging for the actual amount of water used.

Mr. Grabillo added that there is no pending increase of water rates in the coming months.

Meanwhile, Manila Water Co. Inc. Corporate Strategic Affairs Head Nestor Jeric T. Sevilla said that monthly billing during ECQ will be based on the customers’ average consumption in the past three months.

The east zone water concessionaire also recently suspended meter reading and billing activities to protect its employees from the coronavirus disease 2019 (COVID-19).

“Any overbilling or under billing in the monthly bills will be adjusted after the lifting of the enhanced community quarantine and when normal operations resume,” Mr. Sevilla said in a radio interview Monday.

Both water distributor urged the public to practice responsible use of water, amid increased hand-washing and other preventive measure practiced to contain COVID-19.

Meanwhile, the Metropolitan Waterworks and Sewerage System Regulatory Office (MWSS-RO) ensured the public that drinking water and wastewater within its concession areas are safe and disinfected with chlorine.

In a statement Monday, MWSS Chief Regulator Patrick Lester N. Ty said MWSS water is safe for consumption, after concerns were raised about possible COVID-19 contamination in the water supply.

Mr. Ty added that chlorine treatment inactivates the COVID-19 virus, according to a World Health Organization (WHO) technical brief on water, sanitation, hygiene, and waste management released on March 19. — Revin Mikhael D. Ochave

Certainty in uncertain times

As the number of novel coronavirus disease 2019 (COVID-19) cases rapidly increased over the past few weeks, we have developed an obsession with figures and statistics. How many new cases have been reported in our country? What is the mortality rate? How many have recovered? How can we flatten the infection curve? What are the measures do we need to follow to avoid being infected?

These questions are an indication of life’s uncertainties. The COVID-19 outbreak has changed our lives in ways we could have never imagined. Our work, activities, and even relationships with each other are greatly affected.

The Department of Health has announced that the number of confirmed COVID-19 cases will skyrocket this week considering that the country has received 100,000 testing kits and more are coming in. Uncertainties about the rate of infection and when it will taper off have produced anxiety, fear, worry, and doubt in us.

On top of worrying about COVID-19, taxpayers are also facing uncertainties on their tax liabilities and responsibilities. The government’s adoption of necessary measures to contain the virus has placed many taxpayers in limbo. The imposition of enhanced community quarantine (ECQ), for example, makes it difficult for taxpayers to comply with filing and reportorial requirements with various government agencies. Some taxpayers cannot obtain the necessary documents while others face challenges in filing due to restrictions on movement, transportation, or people going to work. Even when the ECQ is lifted, delays will continue as a result of the growing backlog of unattended work, as many employees are working from home.

Fortunately, the government has listened to the clamor of the taxpayers. Many government agencies are issuing orders, guidelines, and memoranda extending reporting deadlines and easing the filing process.

Last week, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circulars extending the deadlines for submitting tax returns, availing of the tax amnesty for delinquencies, and submitting or filing documents and correspondence related to assessment cases, among other related filings.

The BIR also issued Bank Bulletin No. 2020-03 to all Authorized Agent Banks (AAB) on the acceptance of annual income tax returns for 2019 and other tax returns whose due dates fall within the ECQ period. AABs are now required to accept all tax payments, including out-of-district returns. Traditionally, taxpayers paid only through the AABs under the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

Taxpayers have long been requesting the ability to file and pay out of district. With advancements in technology, it is difficult to understand why taxpayers are required to pay only at certain banks within their RDOs. Hopefully, with the BIR allowing out-of-district payment during this ECQ period, they can also study how taxpayers can adopt this practice beyond the ECQ.

The Securities and Exchange Commission (SEC), on the other hand, issued SEC Memorandum Circular No. 10, prescribing guidelines on submitting through email the General Information Sheet (GIS), Audited Financial Statement (AFS), forms and documents required under existing laws, rules and regulations, and the recognition of electronic signature.

SEC Memorandum Circular No. 10 allows concerned corporations to file the required documents through email during the state of public health emergency while the country has been placed under ECQ, provided that all of the following required specifications are complied with:

(1) The submitted documents should be in portable document format (PDF), preferably with a Text Layer; (2) The submitted documents should contain an electronic signature; (3) The submitted documents should be sent as Multipurpose Internet Mail Extensions (MIME) attachments to an email from a valid company email account or email address of an authorized representative; (4) The documents that need to be executed and submitted under oath may be submitted unnotarized; however, the person(s) whose signature appears in the documents submitted shall be held accountable under the appropriate provisions of the Revised Corporation Code; (5) The body of the email should contain a statement declaring the authenticity of the submitted documents, a commitment to submit physical versions of the same documents to the SEC once the state of public health emergency is lifted, and the full name, corporate address, and mobile number of the authorized representative submitting the documents; and (6) The sender should request a Return Receipt and a Delivery Status Notification to ensure that the email has been sent and has also been received by the SEC.

It is commendable that the SEC finally adopted these rules in accordance with Republic Act No. 8792 or the Electronic Commerce Act of 2000. Under this law, for evidentiary purposes, an electronic document shall be the functional equivalent of a written document. Though it has taken a long time to be adopted, it is, nonetheless, a good development. I hope that the SEC will continue to allow the submission of electronic documents in the future, and not just during this period of ECQ.

Some of our Local Government Units (LGUs) are also passing ordinances extending payment of business and realty taxes.

Some cities in Metro Manila, such as Caloocan, Las Piñas, Makati, Manila, Mandaluyong, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, San Juan, Quezon City, and Valenzuela, have extended their deadlines for paying for Q2 business taxes and Q1 real property taxes (RPT). Some of the announcements are based on duly enacted city ordinances while others are just posted on their social media accounts or published in newspapers. As soon as the ECQ is lifted, taxpayers will be busy verifying the extensions and coordinating with the cities and municipalities.

The City of Caloocan has extended the payment of RPT and LBT to June 30 through City Ordinance No.851 and 852. Las Piñas’ extended deadline for RPT is May 15 and for LBT is May 20. Makati’s extended deadline for RPT and LBT is April 30 through City Ordinance No. 2020-75. Manila’s extended deadline for RPT and LBT is June 30. Mandaluyong’s extended deadline for RPT and LBT is May 20 through City Ordinance No. 764. series of 2020. Muntinlupa’s extended deadline for RPT is May 31 through City Ordinance No. 2020-078 and for LBT is July 20 through City Ordinance No. 2020-073. Navotas’ extended deadline for RPT and LBT is May 31 through City Ordinance No. 2020-07. Pasay City and Quezon City have extended their deadline for RPT and LBT to April 30. Parañaque’s extended deadline for RPT is June 30 through Resolution No. 256 and for LBT is July 20 through Resolution No. 257. Pasig City has extended the deadline for two months from due date of RPT and LBT. San Juan City’s extended deadline for RPT is April 20 and for LBT is May 20. Valenzuela’s extended the deadline for RPT to April 30 through City Ordinance No. 677-2020.

Marikina City has announced that it will not impose interest on RPT for property owners who are unable to settle their RPT dues on the original March 31 deadline. However, there is no definite date or length of extension yet.

I hope that other LGUs will consider extending their deadlines for RPT and LBT, especially since this outbreak is affecting the entire country.

While the COVID-19 pandemic is a period of uncertainty, one thing is certain: we will get through this together. Once again, the resilience of the Filipino spirit is being tested. Through the collaborative efforts of the government, international community, private sector, civil society, and ordinary citizens, together we will heal as one.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for professional advice.

 

Neptali G. Maroto is a Tax Associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

FDA approves 5 COVID-19 rapid test kits

THE PHILIPPINE Food and Drug Administration (FDA) on Monday said it had approved five rapid test kits for the coronavirus disease 2019 to be used by health professionals.

The test kits are registered and used in countries with advanced technology and experience with COVID-19 including China and Singapore, FDA Director General Rolando Enrique D. Domingo said in a statement on Monday.

The agency also approved a test kit from Abbott Laboratories that can detect the coronavirus in five minutes.

The FDA has approved 17 test kits that use the so-called reverse transcriptase polymerase chain reaction technique (RT-PCR), which is more accurate than the rapid version, for commercial use.

PCR-based test kits are used in laboratories to extract genetic material from throat and nose swabs to diagnose a patient for the COVID-19 virus.

On the other hand, rapid test kits only measure the antibodies in a patient’s blood sample.

“The rapid test kits will yield a faster result compared with PCR-based kits, but it is important that a trained health professional will evaluate and interpret the results,” Mr. Domingo said.

“We have to be very cautious in using these rapid test kits because they measure antibodies and not the viral load itself,” he added.

Mr. Domingo said a confirmatory test was still required because the test may yield a negative result because it takes the human body some time to develop antibodies.

“A positive result due to cross reaction with other bacteria or viruses is also possible, which is why a confirmatory PCR-based test is still required,” he said.

The Department of Health (DoH) earlier said it does not recommend rapid testing because it could lead to false negative results.

Aside from the Research Institute for Tropical Medicine, the laboratories in San Lazaro Hospital, Baguio General Hospital and Medical Center, Vicente Sotto Memorial Medical Center and Southern Philippines Medical Center are also testing samples of COVID-19 virus.

More than 30 public and private hospitals have also expressed a desire to become COVID-19 testing laboratories.

The FDA asked health facilities to follow only the recommended treatment guidelines endorsed by DoH and medical societies.

Claims have circulated that Procaine and Dexamethasone with Vitamin B called “Prodex-B” are an effective treatment against viral infections. Prodex-B had not been unregistered with FDA, the agency said.

“All consumers who have received the aforementioned drug are advised to monitor for any adverse reactions,” according to the FDA advisory.

FDA said Procaine is an anesthetic used to reduce pain from injections, while Dexamethasone must be used cautiously due to its side effects including a weaker immune system that could lead to a higher risk of infections.

“Unregistered drug products have no guaranteed quality, safety and efficacy data which may lead to patient harm,” it said. — Vann Marlo M. Villegas

Philippines asked to join drug trials vs COVID-19 virus

THE World Health Organization (WHO) wants the Philippines to participate in drug trials to test treatments for the coronavirus disease 2019, according to the Department of Health (DoH).

“We are studying whether the Philippines should join or not,” Health Undersecretary Maria Rosario S. Vergeire said at a briefing on Monday.

The WHO earlier said the so-called “solidarity trial” would compare the safety and effectiveness of four drugs and drug combinations against the coronavirus disease 2019 virus.

It said the solidarity trial would include participants from Argentina, Bahrain, Canada, France, Iran, Norway, South Africa, Spain, Switzerland and Taiwan.

The first patients in the drug trial have been enrolled in Norway and Spain, WHO officials said last week.

WHO is testing four of the most promising drugs to fight COVID-19, including malaria medications chloroquine and hydroxychloroquine, an antiviral compound called Remdesivir, a combination of HIV drugs Lopinavir and Ritonavir, and a combination of those drugs plus interferon-beta.

The virus has sickened about 724,000 people worldwide, with at least 34,000 deaths. About 152,000 patients have recovered. — Vann Marlo M. Villegas

Markets go mobile, mini

THE PASIG Mega Market, a centralized trading area of food and other basic provisions similar to what is typically found in every town around the country, was being readied Sunday night for more entry restrictions.

“For stricter social distancing, fever screening,” said Mayor Victor “Vico” N. Sotto in a post on his Facebook page.

He said, in Filipino, that those familiar with the market understand how difficult it is to secure the public market given its numerous entrances and size.

But before this latest measure to mitigate the spread of the coronavirus disease 2019 (COVID-19), the city government started to deploy last week what it called “mobile palengke” — mini trucks that were converted into markets and stationed on specific schedules in residential areas.

Mr. Sotto said this was meant “to reduce the amount of people” going to the Pasig Mega Market and other smaller centralized marts called talipapa.

Soon after, Valenzuela City rolled out its “market on wheels” using e-trikes with Mayor Rexlon T. Gatchalian acknowledging that they adopted Pasig’s move.

Mr. Gatchalian, in a tweet tagging Mr. Sotto, said they just “tweaked” the idea by using smaller vehicles to “adjust to our terrain na small roads… thanks for your concept!!!”

OUTSIDE THE CAPITAL
In Dagupan City, Mayor Brian C. Lim has asked grocery retailers to roll out mobile stores in the villages while the local government itself has also started setting up satellite markets to minimize people’s movement.

In a March 25 letter to operators of supermarkets, groceries, and convenience stores in the city, Mr. Lim said, “I am encouraging you to put up your mobile/rolling stores to serve the different barangays… This will allow our people to buy their daily needs without the need to travel to the city proper.”

The city, which still has no confirmed COVID-19 case, is composed of 31 barangays with a population of over 175,000. As of March 30, there are 14 persons under investigation for the disease and 433 under monitoring.

The mini, mobile market concept has also caught on in the Visayas and Mindanao.

The Iloilo City government is preparing its own “market on wheels” and Mayor Jerry P. Treñas said he is considering completely closing down the centralized markets given the difficulty of strictly implementing physical distancing.

“If they continue to not comply with social distancing, we will be instituting measures and one of this is to close down the market and use big jeepneys to market the agricultural products,” he said.

Meanwhile, the Department of Agriculture (DA) in Western Visayas will also be launching a similar initiative to help farmers from the different parts of Panay Island sell their produce in Iloilo City, the regional center.

The DA’s “Kadiwa on Wheels” will start on March 31.

Farmers groups that operate the DA-KOICA Bayanihan Tipon Centers and the Rice Processing Centers from the different provinces will man the mobile markets, which will be stationed in areas to be identified by the Iloilo City government.

“We continue the Kadiwa ni Ani at Kita program to help our small and marginal farmers earn in the midst of this crisis. In fact, we had already allowed some farmers associations to market their produce every Friday in our office in Jaro,” Maria Teresa Solis, chief of the DA Agribusiness and Marketing Assistance Division, said in a statement.

Ariel Lastica, chairman of the Champion Farmers Program of Lambunao town, said the program has allowed them to sell last week some 300 kilograms of lowland vegetables.

“At the start, transportation of agricultural products from the province to the city was restricted due to the enhanced community quarantine. But with the food lane pass issued by DA, we can now deliver our products from Lambunao freely,” he said.

In Mindanao, General Santos City has also launched its “moving” market while Cagayan de Oro City is setting up “food terminals” in the barangays where farmers can directly bring their produce. — Marifi S. Jara and Emme Rose S. Santiagudo

Politics and Crisis: A Discussion SeriesFraming the Crisis Conversation

By the Ateneo de Manila Department of Political Science

(First of an eight-part series)

EACH CRISIS is disruptive and instructive.

The Department of Political Science of Ateneo de Manila University (AdMU) invites readers to join this series as we attempt to make sense of the ongoing COVID-19 crisis and learn early lessons from it. We read the coronavirus outbreak as primarily a public health and safety concern with attendant issues of politics and power dynamics in decision making. As the crisis unfolds, political decisions will not only affect lives, but also the course of States the world over.

Each piece in this series examines sites of consensus and points of tension and debate at the local, national, regional and global levels of governance, as well as in critical spaces where they overlap. We hope to highlight effective political practices and problematic ones and the social and political constraints that citizens and governments need to confront in addressing the crisis.

Even in times of crisis, the AdMU Department of Political Science continues to advocate for: evidence-informed policy making; institutional over personal political agendas; and, critical pedagogy as an approach to citizenship education. Hence, this political discussion series.

COVID-19 CRISIS AND STRUCTURAL CHANGE
Each crisis carries the potential for structural change.

The COVID-19 crisis is not only claiming lives, it is changing structural relations all over the world: how nations are governed, how nations cooperate, how nations secure themselves, how markets and industries are run, how work is organized, how products are consumed, how services are exchanged, how learning is conducted, how communication is delivered, and, how states and societies relate to one another. Because of the crisis, new concepts and practices have surfaced. People across the globe are adjusting to new practices: “social distancing,” “online learning,” “working from home,” “lockdown,” “travel ban,” “community quarantine.”

The potential for change, however, is often not as visible as existing structural flaws. The COVID-19 pandemic has exposed the flaws, for example, in public health systems everywhere, in both developed and developing countries. Furthermore, that all-dominant phenomenon of globalization where global markets rule is now being questioned. Countries everywhere are now putting up borders instead of breaking them.

People are now questioning what global wealth and abundance mean given the evident lack of resources to combat COVID-19. The pandemic is highlighting global poverty and insecurity, not global wealth and security. The world is now reckoning with the human, social and environmental costs of unbridled, borderless, global production and exchange.

The putting up of national barriers is not entirely new. In recent years we have witnessed various advocacies for the fortification of national borders. We have also seen how these advocacies are linked to racism and protectionism (think Trump and Brexit). Today, these right-wing advocates are quick to use the COVID-19 crisis as a pretext to bolster their racist and protectionist calls. Meanwhile, the call by left-wing advocates for the world to “deglobalize” is also now being heard.

The “global” in this “global pandemic” must thus be thoroughly examined. While borders are being put up to contain the pandemic, the fact of the matter is, no nation can sufficiently address the pandemic on its own. No matter the current questioning of globalization, the world will have to cooperate to combat a virus that doesn’t recognize race or borders.

GLOBAL PANDEMIC, LOCAL CONTEXTS
This crisis is unique for each context.

“Global” does not only mean scale. “Global” also means depth. This entails not just a perspective from global norms but also an appreciation of the inevitable dropdown to the local context. And, while there is a need to “learn from best practices,” there is also a need to understand what will make a national situation unique: which sector is most vulnerable, which intervention is most effective and which weaknesses and strengths can be drawn from previous experiences.

As of this writing, in the Philippines, the sectors made most vulnerable by the COVID-19 crisis are the health workers and frontliners, workers in the informal economy, and, small- and medium-sized enterprises (SMEs). It must be remembered, however, that for the Philippines, “the global” has one face: the Overseas Filipino Worker (OFW). The strategic impact of the crisis on OFWs and on our economy that is remittance-driven and consumption-led cannot be overstated.

The status of OFWs as a vulnerable sector is now amplified because of the emerging stigma attached to OFWs as likely carriers of the coronavirus. OFWs are often valued by Philippine society and their hometowns as sources of remittances and by their countries of destination as much needed labor. Here or abroad, these OFWs are viewed primarily as workers or consumers and not as citizens. In both home and host countries, the needs of the more “permanent” population are first attended to by national and local governments and the needs of the “mobile” population viewed as secondary concerns.

Governments neglect the reality, for example, that social distancing is very difficult for OFWs. Living conditions for many OFWs (i.e communal or dormitory type quarters) already put them at risk and most OFWs receive little or no support from employers or host states at a time of crisis. Moreover, their prospective return has been viewed largely as a risk by some LGUs who have refused to accept even their own returning OFWs. The reality is, for mobile populations, exposure to the virus is real along with the potential to infect others. However, there should be a way to address this concern with inclusive social guidelines that do not stigmatize and exclude them.

Given the series of political upheavals especially in the Middle East, natural calamities, and migration policy changes in OFW-heavy host States, migration sector advocates have been repeatedly warning the public about the country’s capacity to absorb returning migrants in the case of the “big one.”

The COVID-19 pandemic could be that “big one.” Massive OFW job loss will mean OFW families moving from “middle class” or “non poor” to “poor” as remittances abruptly stop. National and LGU response must include the welfare of OFWs and their families which include solo parents, senior citizens, and school aged children. In 2019 alone, these remittances reached $35.1 billion.

The government (both national and local) will have to keep an eye on the occupations that will be hit the hardest: domestic workers, cruise ship workers, hotel workers. The government must also anticipate that the demand for healthcare workers abroad will increase, and this will further burden our already tapped out healthcare system.

Given our highly mobile population, the transmission of any disease will always be “international” and never just “local.” This means that our public health system must be equipped to care for both permanent and mobile populations.

The COVID-19 crisis reveals a break in the “OFWs as new heroes (mga bagong bayani)” discourse because it asks the Philippine State to genuinely assist these OFWs as part of the larger Philippine population, rather than “reward” them for their service to the country. They are returning, their situation is vulnerable, and they are ours.

CRISIS GOVERNANCE: FLEXIBLE, NOT DRACONIAN
Draconian measures do not equate to strong crisis response.

Crisis governance is often equated with giving governments the license to implement draconian measures even at the expense of democratic checks and balances and democratic rights.

In the context of a crisis, decision making stakes are evidently higher. The expectation for government to put forward a novel policy and strategy immediately is unavoidable.

Some scholars (see Martin, 2013), suggest that flexible governance has been proven to be more effective than command systems in times of crisis. This means that “there are methods for making and implementing decisions affecting entire communities in ways that enable rapid adaptation to new situations.” This kind of governance, Martin further claims, requires “flexible technological systems” and is based on “participation, high skill levels, robust debate, and mutual respect.”

This is reflected by evidence from an earlier outbreak (the SARs experience in Singapore) that highlights coupling “fast moving” social policies that required adherence with winning public support as necessary to effectively communicate the urgency of the task at hand (Yan, Pang and Cameron, 2006). The article asserts that the policy of strict regulation on patients, caregivers and medical practitioners was implemented alongside financial relief in this sector: subsidized hospital rates and drugs for patients; and paying for medical costs of the medical practitioners in recognition of their frontline role in the crisis.

During crisis moments, the challenge to governments, including our own, is to direct citizen participation towards critical thinking, innovation, and cooperation — not to suppress it. Change will not come from those who govern alone. Crisis governance also requires governments and citizens to be guided by data and not by alarmist or baseless assumptions. Moreover, governments must be strategic in communicating concerns and decisions to its various publics.

Nationwide round-up

Charter airline grounded after medevac plane crash

THE ENTIRE fleet of charter airline Lionair, Inc. has been grounded following Sunday night’s crash of one of its medical evacuation (medevac) planes at the Ninoy Aquino International Airport in Manila, killing all eight people onboard. “While investigation on the medical evacuation plane RP-C5880, which crashed last night, 29 March, Lionair, Inc.’s entire fleet has been grounded while the investigation is ongoing,” the Civil Aviation Authority of the Philippines (CAAP) said in a statement on Monday. Another Lionair medevac flight crashed in Laguna last September. The Manila International Airport Authority (MIAA), in a separate statement, said Lionair’s business jet suddenly burst into flames when it was about to take off at 7:57 p.m., killing the eight people onboard, including crew and passengers. MIAA said the aircraft was on a medevac mission bound for Haneda, Japan. Benito P. Atienza, vice president of the Philippine Medical Association, told CNN Philippines on Monday that those onboard included one flight attendant, a nurse, a doctor, two pilots, one crew member, one patient and his assistant. MIAA said two of the passengers were foreign nationals, an American and a Canadian. Mr. Atienza said the patient was not being treated for the coronavirus disease 2019 (COVID-19). Meanwhile, CAAP said the cockpit voice recorder of the 10-seater A 1124A Westwind ll aircraft has been recovered from the scene. Lionair, which is registered and operates in the Philippines, is not affiliated with low-cost airline Lion Air Indonesia. — Arjay L. Balinbin

Cases vs quarantine violators to be filed through e-inquest

CASES against violators of the enhanced community quarantine provisions in Luzon will be filed through the online platform e-inquest, Department of Interior and Local Government (DILG) Secretary Eduardo M. Año said. In a radio interview Monday, Mr. Año said they have made arrangements with the Department of Justice on the use of the e-inquest. Hearings on the cases will be held after the lockdown. In another development, the DILG chief also reminded local government officials that they cannot order the closure of hospitals amid the coronavirus disease 2019 (COVID-19) threat. Last Saturday, Angeles City Mayor Carmelo Lazatin Jr. ordered the closure of a private hospital in the city designated as a COVID-19 facility after it admitted a patient confirmed to have the disease and three persons under investigation who are all from another city. “Hindi ka pwede magpasara ng ospital, lalo na ngayon, kailangan natin (You cannot order the closure of a hospital, especially now that we need these),” Mr. Año said. — Genshen L. Espedido

SSS to open online application for unemployment claims

PHILSTAR

THE Social Security System (SSS), which covers private sector workers, is launching an online system for the application of unemployment benefit claims, which is expected to increase as the coronavirus disease 2019 (COVID-19) affects the economy. SSS President and Chief Executive Officer Aurora C. Ignacio, in a media briefing Monday, said the system will be ready within April. SSS members can apply for the benefit within one year from the time of separation from work. The National Economic and Development Authority earlier said job losses arising from COVID-19 could reach up to 60,000 in the Philippines. The Department of Finance said the SSS is ready to release P1.2 billion in unemployment benefits. — Gillian M. Cortez

BoC assures continued speedy processing for PPE shipments

THE BUREAU of Customs (BoC) assured the quick processing of cargo containing items crucial to the battle against the coronavirus disease 2019 (COVID-19) as it reported the completion of nearly 3,000 shipments of personal protective equipment (PPE). Customs Assistant Commissioner Vincent Philip C. Maronilla, in a media briefing Monday, said 2,865 shipments have been processed and releasing is ongoing. “Patuloy ang pag-re-release ng mga shipments ng PPEs pati ang pag-prioritize ng essential goods ng mga pagkain, medisina, at kung ano kailangan ng ating gobyerno upang malabanan itong epidemya na ‘to (Releasing of these PPE shipments is ongoing, also prioritizing essential goods such as food, medicine, and other necessities for our government to fight this epidemic),” Mr. Maronilla said.— Gillian M. Cortez

Life during lockdown, martial law, and the Japanese Occupation

My daughter Monica, who was less than 10 years old during the martial law years, asked me if life in today’s lockdown is like life in those days. “Not quite,” I said. There was fear and anxiety in the beginning — fear of indiscriminate arrest and anxiety over what the government in the hands of military officers would be like. But after Marcos had political enemies, journalists critical of him, and militant labor and student leaders arrested, things normalized. Business resumed, schools reopened, and people moved about freely. The shutdown of Congress, the judicial system, and the independent media had little impact on the life of regular folk during the days of military rule.

What the lockdown reminds me of is the Japanese Occupation. I lived through the three years of that dark era. I was three and a half years old when war broke out. The family lived alternately between Manila and Pampanga during the occupation.

Just as we now live in fear of the coronavirus and in anxiety over how long the crisis will last, we then lived in fear of the ruthless Japanese soldiers and in anxiety over the prospect of the Japanese Imperial Army occupying the country forever.

There are gaps in my memory of the Japanese Occupation but I still remember vividly certain episodes and personal experiences during that dark period, although I have forgotten their chronological order. My earliest memory is of the days before the outbreak of war. My parents and my sister lived in the house built by my paternal grandparents on Maria Clara Street, about 20 meters from where the street intersects Dimasalang, not far from Dimasalang Bridge, which crosses not a river but the Manila Railroad tracks.

Like most of the houses built during the Commonwealth Era, my grandparents’ house was large enough to accommodate married children and their families. Also living in that house aside from my grandparents were my father’s younger and unmarried siblings, three brothers and two sisters. I remember one uncle was always in a soldier’s parade uniform. I was told when I was older that he was an ROTC cadet.

Then one day sirens blared, causing the entire family to grab bundles, rush out of the house, and run to the open area off the side of the railroad tracks. An uncle carried me on his back. I didn’t know why we had to do that and why my mother and aunties were crying. I learned later that the sirens warned of Japanese air raids. People assumed Japanese planes bombed only buildings and houses. When the sirens blared at night, all lights were turned off, the entire neighborhood falling into total darkness. I heard the word “blackout” for the first time. Days later, I would see convoys of trucks carrying soldiers in battle gear speeding on Dimasalang towards the north. Then my ROTC cadet uncle, this time in combat boots and helmet, bade the family goodbye. He had been called to war. We would never see him again. The family was told after the war that he survived the Death March but died in Camp O’Donnell in Capas, Tarlac.

What I remember next is that we (all the residents of the house on Maria Clara house) were living in my paternal great-grandfather’s house (still standing but now half buried in lahar) in Barrio San Francisco, about four kilometers from the poblacion of Minalin, with great uncles and their families. My great-grandfather owned rice fields and a rice mill across the river. The Japanese confiscated all the sacks of rice in storage at the ground floor of the ancestral house. They didn’t cross the river to inspect the rice mill, where a few sacks of rice were. The Japanese had also taken much of the livestock in the barrio.

The extended family (there were at any time more than 20 people living in the ancestral house) had to make do with the limited supply of rice the Japanese had overlooked and whatever the men could fish out of the river or catch in the rice fields. There were times when meals consisted of boiled rice and roasted mice, which were in abundance in the rice fields.

Most of the time we stayed inside the house as Japanese soldiers would sometimes come around. They slapped or kicked those who didn’t bow properly. The young women, fearful of abduction by the soldiers, hid in the dugout at the back of the house.

There was no plumbing in the provinces, unlike in Manila. Water for drinking, cooking, and washing was drawn from artesian wells. The ancestral house had one in the azotea, the open back portion of the house where clothes were laundered and pots and pans washed, and a smaller one by the banguerra (the rack jutting out of the window of the dining room on which the washed plates and glasses were placed to dry). Typical of bahay-na-bato, the house had only one toilet, an adjunct connected to the house by a foot bridge.

The toilet was reserved for the women in the family. The men went out to the field for their morning ritual. Likewise there was only one bathroom, also reserved for women in the family. The men bathed in the azotea, some in the garden with water collected from the artesian wells.

When the fighting subsided, my paternal grandparents and my father’s siblings went back to Maria Clara. We moved into my maternal grandparents’ house in the poblacion of Minalin. Also living there aside from my grandparents were my mother’s three spinster-sisters. Her brother (a doctor) and his family. He was the epitome of a man true to the Hippocratic Oath. Armed men came to the house in the dead of night to fetch the doctor to attend to a wounded comrade. The women in the family were weeping, begging him not to go for if the Japanese found out, he would be executed. “I took an oath,” said he and went with the men. His wife, mother and sisters including my mother continued to cry as they thought they would never see him again. The men brought him back at dawn, alive and well.

Weeks later, a detail of Japanese soldiers came to the house. This is it, they have come to get him and execute him, the family told him. But he picked up his medical bag before he left with the soldiers. They too had come to fetch him to attend to a sick Japanese soldier.

There was a time when we spent much time cruising on a river and sailing out to Manila Bay in a casco. At that time a livelihood popular among breadwinners was what was called “buy and sell.” Men bought anything they thought they could sell to someone else with a mark-up. My father would buy things from different towns of Pampanga, transport them to Manila by casco (barge), sell them off in Manila and in turn buy things in Manila to sell in Pampanga. Helping him man the casco were some skilled sailors.

He brought us along in those trips to and from Manila. We ate dinner as we cruised on the Pampanga River, slept as we set sail for Manila along the coastline of Manila Bay. We arrived at the mouth of the Pasig River around noon time. I was too young to know how dangerous those trips were. Sometimes somewhere along the route, Japanese soldiers would board the casco to inspect the cargo. Another time we encountered inclement weather in Manila Bay.

After many casco trips, my father decided to confine his buy-and-sell activity to Manila. We would take a caretela to hear Sunday Mass at the UST chapel. I remember seeing Caucasians sunning themselves outside the building beside the chapel. I did ask who they were and why they didn’t hear Mass. I didn’t understand what my father said.

Then the sirens blared once again. This time it was planes with star symbol flying over the city. The Americans were returning. There would be fierce fighting in the city, the elders said. It was time to pack up again and leave for Minalin. My mother, my 88-year-old but still ambulatory great-grandfather (I don’t know why he was with us and why my father and sister were not) left Manila at dawn on a caretela. Along the way, I would ask my mother for water. My mother would not buy water hawked on the road. She bought me singkamas (jicama) instead to quench my thirst.

We arrived at my maternal grandparents’ house at dusk. From the back window of the house we could see the aerial battle over Clark Field. We saw planes from both sides go down and pilots bailing out.

One early morning. We were roused by shouting and cheering in the town plaza. We all looked out the window… We saw American GIs being hugged by the townsfolk. My parents rushed out of the house and joined in the celebration of the end of the Japanese Occupation.

Going back to the martial law period. In June of 1972, the Asian Institute of Management, where I was teaching engaged the services of a travel agency to handle the travel requirements of the many foreign students studying in the institute. At the time, I was developing case studies on marketing management in the region. I was scheduled to interview executives in Singapore, Bangkok, and Hong Kong. Martial law disrupted my travel plans.

But as the research project had an international character, the military government gave me permission to travel. However, my travel papers needed clearance from many military officers. That was when the general manager of the travel agency got personally involved. Through her zealousness and resourcefulness, I was cleared to travel. I expressed personally my profuse thanks for her efforts upon my return and gave her the presents I brought back from my trip. We became personal friends. Soon the friendship turned into romance. I married her eventually.

Monica is our first born.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Medicine innovation and politics vs innovators

This column will briefly tackle two discoveries related to the Wuhan/China virus, a.k.a. SARS-CoV-2 which causes coronavirus disease 2019, better known as COVID-19. Take note that global deaths from regular flu, pandemics not included, is between 300,000 to 646,000 per year.

First, excess deaths over average deaths in Europe in flu season 2019-2020 (about 2,000+) were lower than flu season 2018-2019 (about 5,000), or flu season 2017-2018 (about 10,000) or 2016-2017 (about 12,000). It is a surprising revelation from official European government data itself. I learned this from a post by Dr. Roy Spencer (see Figure 1). Excess mortality by age brackets, five charts, are found here, https://www.euromomo.eu/index.html.

Second, the level of new medicines, new vaccines and new diagnostics to detect whether patients are genuinely infected with the virus or not, are developing at a fast rate. As of mid-March 2020, more than 20 vaccines and antiviral medicines are being developed against this virus, undergoing nearly 80 clinical trials in various phases in various countries, data from the International Federation of Pharmaceutical Manufacturers Association (IFPMA) (see Figure 2).

Now the same innovator companies seeking various treatment and inhibitors to this virus are being subjected to political harassment and confiscation of their successful, more disease-killing medicines in the Philippines via Executive Order (EO) 104 signed by President Duterte on Feb. 17. It aims to impose a second round of drug price controls mainly at the maximum wholesale price (MWP), then at maximum retail price (MRP). The first round of price controls was in July 2009, through EO 821 of the Gloria Arroyo administration.

I attended the Department of Health (DoH) Advisory Council meeting on March 6 at Axiaa Hotel, Quezon City, and I questioned certain provisions of EO 104.

One, the four criteria of EO 104 where price control can be imposed are not found in the Cheaper Medicines Act of 2008 (RA 9502) or its Implementing rules and regulations (IRR), they have no legal basis as DoH just invented and legislated new criteria on its own.

Two, the so-called “studies showing PH medicine prices are much higher than Asian neighbors” say as of 2018 or 2019 are actually not available, I searched for them many times online, and not in some DoH hard literature.

Three, DoH’s criteria #4, if medicines are most prescribed by physicians, then it should be price controlled. This is based on envy, penalizing successful, more disease-killing medicines. And perhaps hoping that the manufacturers of these medicines will pull out their products, not selling at a loss, so that the less-prescribed medicines by some local manufacturers will become famous?

The DoH officials in the room responded as follows:

On #1: The DoH can cover any molecules for MRP, they can establish any criteria to have “fair” pricing.

On #2: There are several studies available.

On #3: They are not penalizing success, they just want medicines that are priced “fairly.”

Consider a hypothetical situation where a new medicine or vaccine has been discovered already to be effective and safe vs the China virus and it’s high priced (high costs to develop it, etc.). Do we expect the DoH to impose price control on it?

By the DoH insistence on “fair” pricing based on very subjective criteria, the answer is very likely, “Yes.”

And that is a danger that Philippine patients and health practitioners might face. Effective treatment vs the virus is available in Singapore, Malaysia, Thailand, but not in the Philippines because the government has a political harassment EO waiting for it when it lands in the country.

The government should rethink this EO 104, pull it out without fanfare. Encourage innovators, not scare them.

 

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

minimalgovernment@gmail.com

Navigating the Future: The Udenna Way

(Second of two parts)

Today, the world is moving so fast and yet, Filipinos can’t even venture big time in the tech space. There are a lot of tech-savvy Filipinos who have brains and ideas. But they lack capital and the stomach to just do it. It’s hard, especially if one lacks access to capital markets, bank loans or other debt instruments. It entails hundreds of millions of pesos, and there are only a handful of VCs (venture capitalists) here to seed. All financial institutions, at least on the creditors side, want collateral, and it takes a lot of effort and size to issue notes, bonds, etc., if you’re not a big conglomerate. But the future is around the tech space, that’s why even though the telco project is so challenging, we are deeply inspired by it. We are hungry to see it succeed. Is it easy? No. Is it financially challenging? Yes. But can it be done? Why not?

You see, in our group, we have a special culture called the 5Hs. You can only work in Udenna if you have them. The first thing I always tell our people is to stay Hungry​ — Hungry for change, for​ opportunities to do things better, to do things that have not been done before. Then there’s Hard work​ — Work hard not just to accomplish but to exceed our goals, to not​ stop when we’re tired but when we’re done. Next, be Honest​ — in all dealings, even if nobody’s looking. Fourth, stay Humble — “Bawal ang hambog.” Stay humble and​ keep yourself grounded despite the many accomplishments. Last, be Holy​ — When all​ has been said and done, recognize that there is always a Greater Hand at work behind every success.

We in Udenna do the things we do because we want to help local businesses grow, compete, and thrive with the resources and expertise we have. We see a future where consumers, particularly our countrymen, are the ultimate beneficiaries.

What I shared are just some of the challenges we had to endure in the past to reach today, which is the future we were aiming for many years ago. We still have a lot of battles to be won, now on an even bigger scale. When you disrupt something, prepare to be disrupted. The bigger the market position, the tougher. If you observe the industries we are in, they are very competitive. Anybody can enter. But we grow because we work hard to get a considerable market share organically, or through strategic M&As.

But if there is a challenge, why do we insist on doing business? Because the potential and possibilities of success far outweighs them all. We invest in businesses not because of what they are now but because of what they can be.

The business landscape has drastically changed globally, and is changing still. Comparing the Fortune 500 companies between 1955 and 2019, there are only 52 companies that appear in both lists since it started. Where did the 448 companies go? The fact that nearly nine of every 10 Fortune 500 companies in 1955 are gone or merged, shows that there’s been a lot of market disruption and churning over the last six decades. It’s not surprising that the tech sector is the key catalyst for this change in the world.

But can the same be said of the Philippines? What were the top companies 20 years ago and the top 20 today? What new companies are emerging in our country?

In terms of capital markets over the past 20 years, we see that there’s been growth in the Philippine capital markets as shown by the bellwether Philippine Stock Exchange Index (PSEi). However, it’s still the same business groups that are in the top 10 stocks that are in the PSEi. There has not been a single new entrant into the top 10 rankings in the past 20 years.

The future of the Philippines is in its people, and entrepreneurs have a big role to play. We need more new entrepreneurs to rise up. “Magaling ang Pinoy”​ (Filipinos are good).

There’s no doubt about our creativity and passion. Filipinos will never run short of world-class ideas. To cite, Dr. Leonardo Gasendo, a US-based Chemical Engineer who originates from Bacolod City, invented the self-charging car which was granted a US Patent. His vision is for the Philippines to be the renewable energy capital of the world. Another brilliant example is Dado Banatao, the Bill Gates of the Philippines who developed the first Windows Graphics accelerator chip for personal computers. He’s a native from Cagayan Valley and is now a tech innovator and venture capitalist in Silicon Valley. Dado points out a big flaw in the Philippines that prevents the flourishing of tech companies: the lack of venture capitalists. He cites Silicon Valley which was built by entrepreneurs and investors.

I dream of a time when brilliant entrepreneurs have better access to funding and are not forced to sell. And whose companies can land in the top 20 companies of the country. I see a future where the best global entrepreneurs are Filipinos who possess the 5H. I look forward to the day when top global companies are from the Philippines; companies that have a vision for the nation, are doing what is right not only for the business but for the country and all its consumers, and are embracing competition to provide better products and services. Success in business is not just for a privileged few. As millennials would say, “Sana all.”​

We in Udenna see a future where just because it’s difficult doesn’t mean we don’t do it. We don’t get it done right all the time. But we get it right most of the time. Let’s do our fair share to help other entrepreneurs, to raise a new breed of visionaries, to champion a gritty generation, because the future belongs to the bold and persevering. I always say that I have more balls than brains because business is not easy, especially because of the ever-changing landscape.

We are thankful to those ahead of us who paved the way for entrepreneurs like me to break through. We pay it forward by doing our own share and making a difference in the industries that we are in and giving others that same opportunity.

As we always remind the Udenna Group: we are in the business of business. We set our eyes on industries we are not currently in, to see if there are any gaps we could potentially address, markets we can serve. More broadly, we hope that through our investments, we are able to do our part in building a stronger business community here in the Philippines.

We stand on the back of people who have trusted us, and are cheering for us to succeed. “Mura lang ang pera. Mahal ang tiwala. (Money is cheap, trust is expensive)​ We realize hindi namin kaya (we can’t do it) on our​ own. We need the help of others. Kaya nga may slogan kami (that is why we have a slogan), ‘Success is not complete without U.’”​ This is not just a business for us. It is a mission. We hope that you will continue to support us in our mission to improve the lives of Filipinos. Most especially, we hope that you will support young entrepreneurs. There’s a lot of them who are more brilliant, but just don’t have the break or support needed. Let’s cultivate an environment that will allow them to thrive.

So how do you navigate the future? The theme says it all: overcome challenges — there will be many — and maximize opportunities. Is it easy? No. Is it challenging?​ Yes. But can it be done? Why not?

We, in Udenna, started as a challenger, and we will always be a challenger.

It’s never business as usual.

We will constantly challenge the status quo, challenge possibilities, challenge ourselves to get up again each time we fall, and challenge ourselves to outperform not just the competition but ourselves — all for God and for the Filipino.

This article was based on the speech delivered by the author at the recent The Manila Times 11th Business Forum.

 

Dennis A. Uy is Chair and CEO of Udenna Corp. and of Phoenix Petroleum Philippines Inc.

dennis.uy@phoenixphilippines.com

map@map.org.ph

http://map.org.ph

Team USA weighing options in the event of spring Olympics

USA Basketball is weighing alternative roster options in the event of a potential conflict between the delayed Tokyo Olympics and the National Basketball Association season.

If the postponed Games are moved from a July 2020 start to March or April of 2021, NBA players would not be eligible to participate. The NBA regular season typically ends in mid-April, when the playoffs begin.

There is no set timetable for the Olympics after the International Olympic Committee announced last week the Games wouldn’t start as scheduled on July 24 due to the coronavirus pandemic.

USA Basketball managing director Jerry Colangelo, who is committed to the organization through 2021 along with head coach Gregg Popovich, said there is no action to be taken until a date for the Olympics is known.

“We will follow the leader. We have to wait to see how everything is laid out and we’ll make the adjustment,” Colangelo said. “Our players are NBA players first, let’s face that.”

If the Olympics moves back a calendar year to July 2021, many NBA players would be available. If the events are held in March or April, the availability of amateurs — college basketball players — would be on a case-by-case scenario. The Final Four and national championship games are scheduled for April 3 and 5 in Indianapolis.

Commissioner Adam Silver said the 2020–21 NBA schedule still could be adjusted radically depending on how the current season, on hiatus since March 12, wraps up. Silver said teams have been asked to confirm availability of their home arenas through August. If the current season ends in August, next season might not begin until winter instead of the typical October tipoff.

“Changing the window for the NBA is easier said than done. There’s a lot of logistics and contracts to deal with,” Colangelo said. “Same for the Olympics. You have to assume it will be around the same dates.” — Reuters