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Remittance growth slows in February

By Luz Wendy T. Noble, Reporter

MONEY sent home by overseas Filipino workers saw slower growth in February, as the coronavirus outbreak began to spread around the world.

Data from the central bank showed cash remittances of overseas Filipinos coursed through banks stood at to $2.358 billion in February, up 2.5% from the $2.301 billion seen a year ago. However, the annual growth rate seen in February is much slower than the 6.6% year-on-year expansion seen in January.

Inflows also fell 10.95% from the $2.648 billion recorded in January.

The February cash remittances were the lowest since the $2.372 billion logged in November 2019.

Cash remittances in the first two months of 2020 rose by 4.6% to $5.006 billion from the $4.784 billion recorded from January to February last year.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the remittance growth target has been cut to an average of 2% for this year.

“The BSP staff projects that the OFW remittances would shrink by 0.2 to 0.8% from the original three percent growth forecast, hence the revised forecast is a range of 2.2 to 2.8% or a midpoint of 2.5%,” Mr. Diokno said in a Viber message to reporters on Friday. “To be on the conservative side, BSP adopted an amended forecast of two percent, which is less than 2.5%.”

Meanwhile, personal remittances totalled $2.623 billion, up by 2.6% year-on-year from the $2.557 billion logged in February 2019.

However, personal remittances fell by 10.9% from the January level, and was slower compared to the 7.3% year-on-year pace in the previous month.

The United States was the biggest source of remittance in February, accounting for 39% of the total. This was followed by Singapore, Japan, Saudi Arabia, United Kingdom, United Arab Emirates, Qatar, Canada, Hong Kong, and Korea. These countries are the source of 79.4% of total cash remittances, the BSP said.

The central bank said personal remittances from land-based OFWs with contracts of more than a year jumped 3.5% to $2 billion from the $1.9 billion logged a year ago. Meanwhile, personal remittances from sea-based workers and land-based workers with work contracts of less than one year declined by 0.9% to $560 million from the $570 million traced a year ago.

For the January to February period, personal remittances grew by five percent to $5.566 billion from the $5.302 billion seen in the comparable year ago period.

BIGGER COVID IMPACT LOOMS
The slowing pace of remittance growth already reflects the impact of COVID-19 pandemic in some countries with many OFWs, according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“There was already some slowdown in tourism- and travel-related industries worldwide in February amid travel advisories as lockdowns in China started after the Lunar New Year Holidays in the latter part of January,” he said in an e-mail.

Mr. Ricafort said remittance flows in March and in April may see much slower growth or even a contraction as more countries implemented lockdown measures that have affected many industries that employ OFWs.

In the first two months of the year, cash remittances from China totalled $4.518 million, which is just about 0.09% of the cumulative $5.006 billion logged during the period, according to Security Bank Corp. Chief Economist Robert Dan J. Roces.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said that COVID-related restrictions as of February were only imposed in countries that form a small part of the total OFW remittances.

“The expected decline may be felt when the full impact of COVID-19 health restrictions are factored in with much of the host countries of OFWs,” Mr. Asuncion said.

World Bank has projected remittance flows to fall by 13% in lower and middle-income countries as migrant workers face layoffs and lower wages amid the pandemic and the looming global recession.

BSP’s Mr. Diokno has said that around 20,000 to 30,000 OFWs have already been repatriated in the midst of the current situation.

“Remittances have proven resilient in past downturns. Yet while we all hope for a positive growth, remittances this time may contract year-on-year as the hospitality and cruise ship components being the hardest hit might pull down remittance levels,” Security Bank’s Mr. Roces said.

Among the hardest hit economies is the United States, the top remittance source of the Philippines. As of Thursday, COVID-19 cases in the US reached over 1.42 million, nearly a third of over 4.45 million cases around the world.

“Note that [many] Filipinos in the US are either doctors, nurses and are in other healthcare-related jobs. There are also Filipino teachers that may not be necessarily affected by any work stoppages for some other job types,” Mr. Asuncion said.

Amid tighter finances, RCBC’s Mr. Ricafort believes that some OFWs may continue to send money back home in the spirit of altruism.

“Some OFWs may still send money to the Philippines by tapping their savings for the meantime to tide them over during the lockdowns until the re-start of the economies in various host countries,” Mr. Ricafort said.

A drop in remittance will be significant as it boosts consumption, which accounts for about 70% of the country’s economy.

DBCC slashes proposed budget for 2021, 2022

By Beatrice M. Laforga, Reporter

THE Development Budget Coordination Committee (DBCC) slashed the projected national budget for the next two years, as revenues are expected to take a huge hit from the coronavirus crisis.

According to the latest medium-term fiscal program published late Thursday, the DBCC projected the 2021 budget at P4.2 trillion, equivalent to 19.7% of gross domestic product (GDP), and 8.4% smaller compared to the P4.586 trillion budget proposed during its meeting last December.

For 2022, the DBCC set a P4.451-trillion budget, 13% lower than the P5.12 trillion projected in December.

Budget Secretary Wendel E. Avisado said in a phone message that the smaller budget plan is due to lower projected revenues.

Based on the medium-term fiscal program adopted by the DBCC during a special meeting on May 12, the state revenue projections stood P2.929 trillion for 2021, down 24% from the previously estimated P3.849 trillion.

In 2022, the government expects to collect P3.27 trillion in revenues, 24% lower from the earlier projected revenue of P4.31 trillion.

Finance Secretary Carlos G. Dominguez III said the revenue program were lowered because other macroeconomic assumptions such as gross domestic product, imports, and oil prices were also seen to decline this year due to the coronavirus crisis.

“GDP growth forecast is negative for 2020. All these conspire to lower the taxbase of revenues,” Mr. Domiguez told reporters Friday via Viber message.

“The medium term outlook is more positive than for 2020 though. Overall fiscal program for 2021-2022 follows a realistic trajectory of recovery that allows for growth while maintaining fiscal discipline,” he added.

Despite lower budget plan, DBCC has projected 7.1-8.1% growth in 2021 and 7-8% growth in 2022, which NEDA Acting Secretary Karl Kendrick T. Chua attributed to “across the board” recovery.

“Across the board recovery in consumption, investment and trade,” Mr. Chua said in a text message when asked for the expected growth drivers in the next two years.

Some economists said the spike in GDP growth next year will likely be due to base effects as the country picks up from the projected 2-3.4% contraction this year.

GlobalSource country analyst for the Philippines Romeo L. Bernardo said he expects a worse GDP output this year with a sharp 5-7% decline, downgraded from the 0.5% contraction outlook given last month.

In an online forum on Friday, Mr. Bernardo said the economy is more likely to see a long U-shaped recovery or W-shaped one, rather than the V-shaped recovery path that Mr. Chua earlier said is achievable if policies are used proactively.

With lower revenues, the inter-agency DBCC projected the budget deficit to spike to 8.1% of GDP this year before a gradual decline to 6% next year and 5% in 2022.

First quarter GDP posted a 0.2% contraction. Mr. Chua said “worse” figures should be expected this quarter as the lockdown period made up two-thirds of the quarter, signalling a start of a recession for the Philippines.

Other organizations and think tanks have slashed their growth forecasts for the Philippines this year. Capital Economics projected a six percent full-year contraction after the lockdown in Metro Manila and two other cities was extended until end of the month.

Also recently, Moody’s Investors Service and Fitch Solutions both downgraded their 2020 GDP forecast for the country to a two-percent contraction from the previous projections of 2.5% and -0.5%, respectively.

Meanwhile, World Bank is set to downgrade the three-percent growth projection it gave in April, while the Asian Development Bank’s latest estimate was two percent growth.

Unemployment rate could hit double digits — NEDA

THE Philippines’ unemployment rate could hit double digits this year, as the coronavirus crisis batters the economy.

“We are seeing from our surveys that unemployment will likely be double digit. We are waiting for second quarter LFS (Labor Force Survey),” National Economic and Development Authority (NEDA) Acting Secretary Karl Kendrick T. Chua told BloombergTV on Friday.

Philippine Statistics Authority (PSA) will release official data on June 5.

In 2019, PSA reported unemployment rate declined to 5.1% from 5.3% in 2018, its lowest level recorded in more than a decade or since 2005. The size of the labor force was estimated at 44.7 million last year.

Mr. Chua expects the country to slip into a recession this year. A recession is where two consecutive quarters of gross domestic product (GDP) contraction are recorded.

The second quarter GDP is expected to be worse than the -0.2% recorded in the first quarter, as the enhanced community quarantine (ECQ) in Metro Manila continues through end-May.

Mr. Chua said a hint of recovery should be felt in the second half as the country gradually reopens more parts of the economy, especially Metro Manila.

“By next week, we’re seeing the two thirds of the country in a relaxed quarantine, opened up, so I think we have a very good chance for a quick recovery starting in the second half,” he said.

Despite the grim outlook, Mr. Chua said the government is “ready to address” the “temporary shocks” in employment rates after rolling out the P200-billion cash aid program to poor families and the P51-billion wage subsidy program for employees.

He said the resumption of construction works for infrastructure projects once lockdown is lifted will serve as the “key” to the country’s recovery.

NEDA’s recent survey showed more than 2.2 million estimated jobs were lost as around 75% of the affected businesses were forced to close due to lockdown measures.

S&P Global Ratings earlier projected that the country’s jobless rate could hit 6.8% this year.

The inter-agency Development Budget Coordination Committee (DBCC) projected a two to 3.4% GDP contraction this year as the economic impact of the lockdown and pandemic is seen to reach P2 trillion.

In that same interview, Mr. Chua said among the programs included in the proposed recovery plan will include a time-bound, targeted equity infusion to large firms hardest hit by the crisis “to match whatever the bank will lend them.”

Without citing details, Mr. Chua said the program will also include conditions to “address the problem faster and minimize the fiscal risk for the government.”

Finance Secretary Carlos G. Dominguez III earlier said the government will need an additional P130-P160 billion to finance the programs under its three-phased recovery program. — Beatrice M. Laforga

80% of SB Corp clients have problems with their loans due to COVID-19

ABOUT 80% of Small Business Corp. (SB Corp.) borrowers have said that they cannot continue their loan agreements due to the coronavirus disease 2019 (COVID-19) pandemic, SB Corp. President and Chief Executive Officer Ma. Luna E. Cacanando said.

Ms. Cacanando was speaking during the virtual hearing of the House committee on trade and industry on Friday when she was asked by Nueva Ecija Rep. Rosanna V. Vergara how many of their clients are on the verge of bankruptcy due to the pandemic. “Only 20% of our existing borrowers have expressed that they can continue their loan agreements based on the amortization schedules existing for them. So 80% po actually may problema na (already have problems),” she replied.

“The way we address it now is to provide nga the moratorium during the ECQ (enhanced community quarantine), and then for the six months after the ECQ, interest rate lang po ang babayaran nila (they will only pay the interest rate),” she added.

SB Corp. has lent about P5.64 billion to 119,621 borrowers as of December 2019, according to Ms. Cacanando’s presentation to the panel.

Of this amount, P1.40 billion has been released for retail lending while P4.24 billion was released for wholesale lending. Meanwhile, P216 million was released to about 4,300 micro enterprises in the National Capital Region under the Pondo sa Pagbabago at Pag-asenso (P3) program.

Ms. Cacanando said that these existing borrowers can avail of the recently launched COVID-19 Assistance to Restart Enterprises (CARES) program, a P1-billion lending facility aimed to support micro-, small- and medium-enterprises (MSMEs) in addressing the economic impact of the pandemic.

“Yun pong CARES program, kung saan mas mababa ang interest, eligible rin po yung existing borrowers natin (Through the CARES program, where the interest is low, our existing borrowers are eligible) to get additional loans so that they can also restart their businesses, Actually we are making it 1.5 billion because we still have excess funds under P3,” she said.

The loan is open to micro and small businesses which have been in at least a year of continuous operation by March 2020, and whose businesses “suffered drastic reduction” during the epidemic.

Loans can be used to recover losses such as updating loan amortizations for vehicles and other fixed asset loans, inventory replacement for damaged perishable stocks, and working capital replacement to restart the businesses.

Micro enterprises with an asset size of up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger than P10 million may borrow up to P500,000.

The interest rate is 0.5% per month, and payments will have a grace period until the end of the community quarantine.

Ms. Cacanando asked Congress’ assistance in implementing an “equitable distribution” of the CARES fund by taking into consideration the level of impact and the strategies developed by each local government unit (LGU) in the country.

“We’d like to propose to Congress, we also consider the socio-economic recovery plans per district and we use this to map out the utilization of whatever funds that will be given to us,” she said.

Ms. Cacanando said that this proposal can ensure that all distressed micro and small businesses in each LGU will be equally addressed. — Genshen L. Espedido

Government to monitor lockdown transition as typhoon hits PHL

As Typhoon Ambo crosses the country, the government will closely monitor the country’s transition from a total lockdown to the new normal.

In a statement released on Friday, Palace Spokesperson Harry L. Roque said “We are closely monitoring the situation in the country as we move from Enhanced Community Quarantine (ECQ) to Modified Enhanced Community Quarantine (MECQ)/General Community Quarantine (GCQ), amid a weather disturbance in the Philippines.”

The typhoon, whose international name is Vongfong, first made its landfall Thursday afternoon in Eastern Samar. The Category 3 typhoon is expected to exit the country by Tuesday, which will mean heavy rains and strong winds are to be expected over the weekend.

Concerns of how the typhoon will affect the ongoing quarantine arose as many evacuation centers across the country are currently being used as coronavirus disease 2019 (COVID-19) treatment and isolation facilities. The need for social distancing is also an issue since typhoon evacuees expected to cram into these areas.

Local officials in Eastern Samar said that they are considering the use of quarantine facilities to accommodate the evacuees, as thousands fled from their homes when the typhoon first landed.

“Oplan Listo” was launched by the Department of Interior and Local Government alongside concerned agencies in order to address the damage wrought by the typhoon and assist families affected by it. — Gillian M. Cortez

Meralco says meter readings for May bills ‘accurate’

AMID mounting concerns by customers on increased electricity bills for May, Manila Electric Co. (Meralco) said its meter readings remain accurate and transparent.

In a statement released on Friday, the country’s biggest electricity distribution utility addressed customers’ bill shock, saying that the May bill is the result of the actual electricity consumption in kilowatt-hours (kWh) from the current meter readings, plus the estimated consumption reflected in the deferred April and March bills.

“This total, which is already based on the true and actual readings, is what customers actually see in the May bill. That is why you may notice a rise in the total amount due,” it said.

Meralco rates for this month were earlier expected to go down, with a household consuming 200 kWh to likely see a P50 cut in its monthly bill. This was due to a reduction in its overall electricity rates by P0.2483 per kWh to P8.7468/kWh from April’s P8.9951/kWh.

The company resumed reading the meters of its residential customers on May 8.

According to Meralco Spokesperson Joe R. Zaldarriaga, some March and all April bills were estimates based on the average daily consumption of customers over the previous three months, following the Distribution Services and Open Access Rules (DSOAR) issued by the Energy Regulatory Commission.

The apparent spike in electricity bills was due to various factors, the listed utility said. These include the increase in power consumption during the enhanced community quarantine (ECQ) and the high May temperatures which led to the increased use of cooling appliances at home.

Asked for a reaction, Energy Secretary Alfonso G. Cusi told reporters in a virtual briefing that the department has also received complaints, noting that some customers expected that the May bill would be an average.

He added that the average consumption should not be “higher than the highest” consumption in the past 12 months.

“An average cannot be higher than the highest consumption in the previous months. Pero ‘yung bill na sinasabing average (But the bill that was supposed to be an average) is higher than the highest bill that they have received in the previous months,” Mr. Cusi said

The Department of Energy (DoE) is seeking a clarification with Meralco regarding its bills computation.

“We’ll just make sure na tama ang interpretation ng Meralco at the other DUs (that Meralco and the other distribution utilities’ interpretation is correct),” DoE Undersecretary William Felix B. Fuentebella said at the briefing.

Recent advisories from the ERC and the DoE ordered power stakeholders to extend the grace period earlier given for customers in areas still under ECQ.

They also both ordered the staggered payment of deferred bills during the quarantine period to be paid in four equal installments over the next four billing months as a policy aid.

Mr. Fuentebella noted that power companies should have the same implementation and understanding of its latest advisory.

“‘Yung DoE, in-extend pa nga ang advisory doon sa chain. So dapat, pare-pareho ang implementation, pare-pareho ang understanding,” he said. (The DoE even extended its advisory for the energy supply chain. So, they must have the same implementation and understanding of the advisory.)

“Meralco promises to provide all the possible options for the utmost convenience of the consumer, bringing back a sense of normalcy and security in this time of uncertainty and turmoil, with the pandemic still affecting us all,” Mr. Zaldarriaga said. — Adam J. Ang

COVID-19 cases breach 12,000; death toll at 806

THE Department of Health (DoH) reported 215 more people infected with the coronavirus disease 2019 (COVID-19) on Friday, bringing the total number of cases to 12,091.

The death toll climbed to 806 after 16 more patients died, it said in a bulletin. One hundred twenty-three more patients have recovered, bringing the total number of recoveries to 2,460, it added.

Of the 215 new cases, 67% or 144 were from Metro Manila, 32% or 69 were from Central Visayas, while 1% or two came from other regions, the DoH said.

The agency said 2,245 health workers have been infected, 770 of whom recovered and 35 have died.

Meanwhile, Justice Undersecretary Markk L. Perete told reporters on Friday via Viber that as of May 14, there were 117 confirmed cases of COVID-19 among persons deprived of liberty (PDLs) in the Bureau of Corrections (BuCor).

Of the 117, 40 are from the New Bilibid Prison while 77 are from the Correctional Institution for Women.

Mr. Perete said that four of the 117 patients have died, nine were able to recover, while four patients who tested negative are waiting for the results of their confirmatory tests.

In a virtual briefing by the DoH on Friday morning, medical anthropologist and former University of the Philippines Chancellor Michael L. Tan urged the health agency to ease guidelines on community quarantine.

“Nakakalungkot na nakikita ko na ‘yung ibang areas, hindi lang lockdown kundi locked in. Hindi pinapayagan ‘yung mga tao na lumabas ng bahay. May inaaresto porque nakaupo sa labas ng bahay. Kailangan sana (gumawa) ng guidelines ang DoH dito na pwedeng lumabas, ‘wag lang maging gala,” he said. (What I see in some areas is so sad, they are not so much locked down as locked in. People are not allowed to leave their houses. There are people arrested for sitting outside their houses. The DoH has to come up with guidelines where they can do out, so long as they do not wander.)

He also urged telecommunication companies to bring down the cost of their services to aid schools and universities implement distance learning.

“They have to bring down the cost and sana (maglabas) rin sila ng mga (hopefully come out with) packages to help our students and faculty. We really have to go to online, di naman pwede na hintayin na safe na safe na (we can wait until it is completely safe),” he said.

Mr. Tan also criticized the recently institutionalized Balik Probinsya, Balik Pag-asa program, saying that the government should focus on finding urban housing for informal settlers instead of sending them to the provinces.

“We really have to do something about our problem in urban housing. Kailangan talaga mag research muna, magtanong. Yung Balik Probinsya, hindi ‘yan bago. Paulit-ulit ‘yan, it’s another term na tinatapon lang ang mahihirap sa rural areas (They should research first, ask. That Balik Probinsya, that is not new. It has been done before, it is another term for tossing the poor away to the rural areas). Let us not complicate matters, we have to find urban housing for our informal settlers, hindi pwedeng itapon sa probinsya (we can’t toss them away in the province),” he said.

The initiative aims to encourage urban residents and businesses to relocate to provinces, and thus decongest Metro Manila and promote countryside development.

The virus has sickened 4.5 million and killed more than 303,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 1.7 million people have recovered from the disease, it said.- Genshen L. Espedido

Palace asks Congress, DBM for more funds for SAP

THE Palace has asked both Congress and the Department of Budget and Management (DBM) to find an additional P51 billion that can be allocated to the social amelioration program (SAP).

In a statement released on Friday, Palace Spokesperson Harry L. Roque said that President Rodrigo R, Duterte is asking DBM Secretary Wendel E. Avisado “to determine how much funds from the 2020 National Budget will be realigned to augment the Administration’s social amelioration measures, pursuant to Republic Act No. 11469.”

R.A. No. 11469, or the Bayanihan to Heal as One Act, stated that 18 million families from low income households will receive a cash subsidy worth P5,000 to P8,000 for two months under the SAP. Around P205 billion was released by the DBM to the Department of Social Welfare and Development (DSWD) last April for the initial 18 million households.

The law was enacted last March 25 to give Mr. Duterte special powers to realign national funds in order to allocate these for the government’s measures fighting the coronavirus disease 2019 (COVID-19) pandemic. A prolonged lockdown in most regions in the country has been implemented to slow the pandemic, slowing down economic activity.

Earlier this month, Mr. Duterte said 5 million more people will be made beneficiaries under the SAP, bringing the tally of those who will be receiving the cash assistance to 23 million. In a radio interview with DZMM on Friday, Mr. Roque said that more than P257 billion will be needed to fund all the beneficiaries.

“Kakailanganin po natin talaga ay P257.7 billion. So, clearly po, we are P51 billion short kung lahat po sila ay bigyan ng ayuda (We really would need P257.7 billion. So clearly we are P51 billion short if we were to give them all aid),” Mr. Roque said.

The second tranche of the SAP was scheduled to be given this month. Mr. Roque said that Mr. Duterte “will ask the assistance of Congress in the finding of additional funding for the second tranche of the Social Amelioration Program to complete the rollout of aid to poor and low-income families.”

Many regions of the country will be placed under a less stringent general community quarantine (GCQ) starting May 16, this after the whole Luzon island and some other regions across the country were placed under an enhanced community quarantine (ECQ) in March. Laguna, Metro Manila, and Cebu City will be under a modified ECQ from May 16 to 31.

The Palace earlier this week said beneficiaries in areas under GCQ — despite being previously on ECQ — will not be receiving cash aid under the SAP anymore. — Gillian M. Cortez

Courts in GCQ areas to open on May 18 — SC

THE Supreme Court (SC) on Friday said that courts in areas under general community quarantine (GCQ) will reopen starting May 18 and will continue acting on pending cases during this period.

According to Administrative Circular No. 40-2020 issued on Friday, “All the branches of the courts in the areas under GCQ shall be physically open from 18 to 29 May 2020, but shall function only with a skeleton-staff, by rotation, to be determined by the presiding judge.”

Operating hours will be from 9 a.m. to 4 p.m. until May 29. Courts will be closed on Saturday, May 30.

The SC also said “All the courts in the GCQ areas shall continue to resolve and decide all the cases pending before them. The hearings, either in-court or through videoconferencing, of all the matters pending before them, in both criminal and civil cases, whether newly filed or pending, and regardless of the stage of the trial, are now herein authorized.”

Judges and prosecutors may promulgate decisions and orders within the period of the GCQ. Service of writs and other court processes can also proceed.

The filing of petitions, appeals, complaints, motions, pleadings and other court submissions that are due within the period before May 31 will be extended by another 30 days. Court actions with prescribed periods will also be extended by 30 days.

Earlier this week, the Palace announced modified quarantine levels which will start after the original enhanced community quarantine (ECQ) to contain the spread of the coronavirus disease 2019 (COVID-19) ends on May 15. While quarantine will be lifted in some areas, many others will be put under the less strict GCQ. Meanwhile, Laguna, Cebu City, and Metro Manila will be under a modified enhanced community quarantine, which is more lenient than the ECQ but stricter than GCQ.

Many areas across the country will be put under GCQ starting May 16. These areas are the Cordillera Autonomous Region, Abra, Apayao, Benguet, Ifugao, Kalinga, Mountain Province, Baguio City, Batanes, Cagayan, Isabela, Nueva Vizcaya, Quirino, Santiago City, Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Angeles City, Olongapo City, Cavite, Quezon, Rizal, Batangas, Lucena City, Bohol, Cebu Province, Negros Oriental, Siquijor, Mandaue City, Lapu-Lapu City, Zamboanga Del Norte, Zamboanga Del Sur, Zamboanga Sibugay, Zamboanga City, Isabela City, Davao City, Davao De Oro, Davao Del Norte, Davao Del Sur, Davao Occidental, Davao Oriental, Agusan Del Norte, Agusan Del Sur, Dinagat Island, Surigao Del Norte, Surigao Del Sur, and Butuan City. — Gillian M. Cortez

Gov’t agencies told to review planned procurement for this year

THE Government Procurement Policy Board (GPPB) told procuring entities (PEs) to review their planned and ongoing procurement for this year to determine which will be discontinued following the orders to tighten their belts issued by the Budget department earlier.

“For those to be continued, PEs shall review the existing project requirements to ensure that the same cover only what they need and can actually implement within the year,” the GPPB’s Resolution No. 09-2020 read.

The Department of Budget and Management (DBM) issued Budget Circular No. 580 last month saying that 35% of the budgets of state agencies will no longer be released in order to source funds for the national government’s responses to the ongoing public health emergency.

The DBM also ordered agencies to review the programs that will have their allotted budgets cut.

Amid the restrictions imposed as part of the enhanced community quarantine (ECQ), the GPPB also allowed online or electronic submission and receipt of documents for procurement, and recommended that its online portal be further developed so online submission and receipt of bids can be accommodated, to expedite processes.

It also urged PEs to use communication technologies such as videoconferencing and webcasting in their meetings and other processes as a workaround given the mobility restrictions observed during the lockdown period.

“Given the exceptional circumstances brought about by the COVID-19 pandemic, particularly the ECQ and the suspension of mass public transport services, both the PEs and bidders are finding it hard to continue with the conduct of procurement activities and thus, PEs are at risk of exceeding the maximum calendar days allowed for the specific procurement activities,” it said.

The GPPB, through the circular, authorized the Bids and Awards Committee (BAC) to suspend procurement activities that were interrupted by the lockdown period and resume only once the situation allows. — Beatrice M. Laforga

DA partners with more companies under e-Kadiwa program

On Friday, the Department of Agriculture (DA) signed a Memorandum of Agreement (MoA) with seven companies which will join as sellers under the e-Kadiwa ni Ani At Kita marketing program.

Two logistics providers have also signed up with the online marketing platform where consumers can use their mobile phones or computers to buy agricultural products which are sourced directly from farm producers.

The seven companies — Farmshare Prime, Livegreen International Inc., Farmtech Inc., Banwa Farms, Cultigen Corp., RAM, and Abalayan Trading-Benguet — will sell their produce through the DA’s online marketing platform.

Meanwhile, Grab Express and Lalamove Philippines have also partnered with the DA for the delivery of products sold under e-Kadiwa.

“The e-Kadiwa program helps farmers from the countryside because consumers directly buy from the producers,” Agriculture Secretary William D. Dar said.

The new companies will join the e-Kadiwa program’s initial partner-companies which include AgriNurture, Inc., Benjabi Ventures Corp., Zagana Inc., and Mober Inc.

Mr. Dar said that plans to expand the e-Kadiwa platform to nearby provinces will depend on the partner-companies and will be based on the outcome of the project.

“We will see first if the program will be successful in Metro Manila. Once we are satisfied with the arrangements, the intent is to go to other provinces,” Mr. Dar said.

The DA said that the new partner-companies will be able to upload and sell their products in the e-Kadiwa by next week.

The public can access e-Kadiwa via its website http://www.ekadiwa.da.gov.ph/ – Revin Mikhael D. Ochave

Warrantless arrest of teacher over tweet threatening Duterte invalid, but sedition charges recommended

THE Department of Justice (DoJ) said that the warrantless arrest of a teacher who offered a P50-million bounty for anyone who kills President Rodrigo R. Duterte was invalid. However, the Justice department recommended the filing of charges against teacher Ronnel Mas for inciting to sedition.

The DoJ’s Inquest Resolution, signed by Assistant State Prosecutor Jeanette M. Dacpano on May 13, said that the arrest of Mr. Mas earlier this week “does not fall within the ambit of warrantless arrest contemplated by law.” The resolution added that the arresting officer did not know Mr. Mas had committed a crime at the time of the arrest.

Warrantless arrests can only be valid if the offense was committed and the arresting officer has probable cause to believe and personal knowledge and facts that Mr. Mas committed the action.

But due to the nature of Mr. Mas’ social media post., which stated that he would give a P50-million reward to whoever will kill Mr. Duterte, the DoJ said that this “clearly suggests violent means to topple the Duterte administration.”

The DoJ said it recommended the filing of charges against Mr. Mas for violating Article 142 of the Revised Penal Code in relation to his violation of the Cybercrime Prevention Act of 2012.

The arrest of Mr. Mas sparked an outcry in social media, with many calling this an attack on his right to freedom of speech, especially since the President himself has repeatedly ordered the police to kill alleged criminals without any judicial process, particularly drug pushers and drug users. — Gillian M. Cortez

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