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Spokesman denies hand in Sanchez’s early release plan

PRESIDENT Rodrigo R. Duterte’s spokesman yesterday said he had nothing to do with the impending release of former Calauan Mayor Antonio Sanchez, a convicted rapist and murderer who was his former client.

“Definitely not, I have withdrawn as his counsel years ago,” presidential spokesman Salvador S. Panelo said.

Mr. Panelo was one of Mr. Sanchez’s defense lawyers for the rape and murder of two University of the Philippines students in 1993.

Justice Secretary Menardo I. Guevarra also allayed concerns that Mr. Panelo may have had a hand in the early release of Mr. Sanchez, who was sentenced to seven life terms in 1995.

Mr. Guevarra said the presidential spokesman had not interfered in Mr. Sanchez’s case.

The Justice chief on Tuesday said Mr. Sanchez might be released along with thousands of other inmates for good conduct. Their release cannot be appealed.

The Supreme Court in June allowed the retroactive application of time allowance for good conduct of inmates.

The Office of the Ombudsman in 2018 recovered alleged ill-gotten assets of Mr. Sanchez and his wife, getting transfer certificates of title for 19 properties that were forwarded to the Treasury bureau. — Vann Marlo M. Villegas

Task force eyes year-end ruling on slain media

THE Presidential Task Force on Media Security expects a court ruling on the case of slain journalists in Maguindanao province in 2009 by year-end.

In a telephone interview, Executive Director Joel Sy Egco said the task force had expected a ruling by the first quarter, but the camp of the accused has allegedly been delaying the case through technicalities.

He said some of the accused have been seeking extensions to file their memoranda in court.

Justice Secretary Menardo I. Guevarra earlier said the Maguindanao massacre case was completed on July 17 and the parties were given until Aug. 15 to submit their final pleadings.

On Nov. 23, 2009, family members and associates of then gubernatorial candidate Esmael G. Mangudadatu, accompanied by members of the media, were massacred on Masalay hills in Ampatuan town, Maguindanao province, by henchmen associated with his political rival.

The party was accompanying Mr. Mangudadatu who was filing his certificate of candidacy against former Datu Unsay Mayor Andal U. Ampatuan, Jr., son of former Maguindanao Governor Andal S. Ampatuan, Sr.

Mr. Egco said 108 accused are waiting for the court’s verdict. The prosecution presented 195 witnesses, while defense lawyers presented 134, he said.

The case is being heard by Quezon City Judge Jocelyn Solis-Reyes. — Arjay L. Balinbin

DoJ summons party-list groups over ‘kidnapping’

GOVERNMENT prosecutors have summoned officials of leftist party-lists over the alleged abduction and recruitment of students to their causes.

Summoned were Kabataan Party-list Rep. Sarah Jane I. Elago, former Bayan Muna Party-list representative Neri J. Colmenares, Anakbayan National President Vencer Crisostomo and General Secretary Einstein Recedes, and Akbayan Rep. Tom S. Villarin.

They are ordered to appear before the Justice department starting on Aug. 27.

“Failure on your part to comply with this subpoena shall be considered as your waiver to present your defense in this preliminary investigation,” according to the summons issued by Assistant State Prosecutor Christine T. Perolino.

Police earlier filed a complaint against them for kidnapping and human trafficking.

Complainant Relissa S. Lucena, the mother of senior high school student Alicia Jasper, reported that her daughter had gone missing after joining Anakbayan. The student has denied being kidnapped.

The Senate public order committee is also investigating the case. — Vann Marlo M. Villegas

Duterte calls on gov’t workers, youth to follow Ninoy’s values

PRESIDENT RODRIGO R. Duterte on Wednesday joined the nation in commemorating the 36th anniversary of the assassination of former Senator Benigno S. Aquino, Jr., reminding the public to follow his example in protecting freedom, democracy and the rule of law. “I also hope that Ninoy’s remarkable life as a public servant will move my fellow government workers to serve with honor, integrity and purpose as well as inspire our youth to be of service to their country and fellowmen,” Mr. Duterte said. The President also recognized Mr. Aquino’s role in restoring democratic institutions. “His sacrifice altered the course of our nation’s history and still continues to ignite the spirit of heroism among our people,” he said. Mr. Aquino, who was jailed and exiled to the United States during the Martial Law period under dictator Ferdinand E. Marcos, was shot upon his return to the country at the airport that is now named in his honor. “Despite our gains in these past three years, there is still a lot that needs to be done if we are going to completely eradicate the poverty, corruption, and injustice that had plagued our nation even during Ninoy’s time,” Mr. Duterte said in his message. “Let his example guide us as we strive to uplift and protect the most vulnerable in our society and ensure that all Filipinos will enjoy the blessings of freedom, democracy and the rule of law.” — Arjay L. Balinbin

Ineng expected to intensify into a tropical storm today, but no landfall seen

TROPICAL DEPRESSION Ineng is expected to intensify into a tropical storm today, bringing moderate and intermittent heavy rains over the region of Bicol and Eastern Visayas. Weather bureau PAGASA’s Benison Estareja, in an 11 a.m. live-streamed update on Wednesday, said there is “no landfall scenario” for Ineng based on its current track. Other areas that may be affected by rains in the coming days are Cagayan Valley, Caraga, Northern Mindanao, the rest of the Visayas, and MIMAROPA (Mindoro-Marinduque-Romblon-Palawan). Ineng is forecasted to be out of the Philippine area by Sunday. As of yesterday morning, the tropical depression was located 1,155 kilometers (km) east of Infanta, Quezon, moving northwest with winds of up to 55 km per hour. Meanwhile, the “trough of a shallow Low Pressure Area (LPA) off the southwestern coast of Taiwan,” while outside the Philippine area, will bring light to moderate with intermittent heavy rains over Batanes and the Babuyan Group of Islands, according to PAGASA’s 11 a.m. bulletin.

DoH reports 62% drop in leptospirosis cases

THE DEPARTMENT of Health (DoH) reported a 62% drop in leptospirosis cases nationwide from January to August 3 this year with 981 patients recorded from 2,618 in the same period last year. Data released on Wednesday by the DoH’s Epidemiology Bureau show deaths due to the Leptospira virus also decreased by over 50% to 113 from 266 during the period in review. Leptospirosis is transmitted from water or moist surfaces contaminated with urine and feces of rodents and vermin that have the virus. The DoH advises the public to avoid wading and swimming in waters, such as floods, that could be contaminated with the virus. — Gillian M. Cortez

Cotabato takes lessons from Davao Oriental’s Happy Home for rebel returnees

COTABATO OFFICIALS, led by Gov. Nancy A Catamco, visited Davao Oriental last week to learn from the province’s reintegration program for former members of the communist New People’s Army. “It’s a paradigm shift of good governance. It’s not only a talk. It is the concrete example of what good governance should be — wherein the services of the government are seen and felt by the people,” Ms. Catamco is quoted as saying in a press statement released by the Davao Oriental government. “I think this is an eye-opener. Insurgency is not a problem of the military; it’s the problem of the entire government and the solutions of which lie in the hands of the whole of government,” she added. The Cotabato contingent visited the Happy Home facility set up as a halfway house and training center for rebel returnees before they go back to their communities. Ms. Catamco said her administration will adopt Davao Oriental’s approach to addressing armed conflict through convergence of government agencies in delivering social services. Davao Oriental Gov. Nelson L. Dayanghirang, who issued an executive order for the convergence efforts, also cited the role of the military in peace and development initiatives for the success that the program has so far achieved. — Carmelito Q. Francisco

City council asserts legality of transport hub inside Megaworld Iloilo Business Park

THE ILOILO City council has declared the transport hub inside Megaworld Corp.’s Iloilo Business Park legal based on local regulation and as confirmed by the legal office. Two transport groups have questioned the transport terminal as well as the operation of point-to-point (P2P) buses to and from the Iloilo International Airport in Cabatuan, a town just outside the city. “It must be emphasized that the operation of the Megaworld Transport Hub was clothed with legal color by virtue of Regulation Ordinance No. 2019-110. This ordinance has binding effect, general application and presumed valid, unless and until there is contrary pronouncement from the proper authorities as to its invalidity or what it is repealed or amended by subsequent legislation by Sanggunian (council) concerned,” said Councilor Rommel D. Duron in a committee report released on Tuesday.

Mr. Duron, chair of the committee on transportation, energy, and public utilities, said they also sought the opinion of the City Legal Office (CLO) on the matter. “We referred it to the City Legal Office (CLO), the opinion of the CLO is it is legal and valid. The city council can amend the ordinance they previously approved or even repealed… we adopted their opinion in our committee report,” he said.

P2P BUSES
The New Iloilo Airport Transport Association and Association (NIATA) and the Association of Taxi Operators in Panay (ATOP) earlier submitted opposition to the provisional authority granted by the Land Transportation Franchising and Regulatory Board (LTFRB) to Southwest Travel and Tours to operate three routes: Iloilo City to Iloilo International Airport; Iloilo City to Caticlan; and Iloilo City to Kalibo. NIATA and ATOP said the license granted to Southwest Tours violates the Perimeter Boundary Ordinance of Iloilo City, which mandates the control and regulation of the entry of public utility jeepneys, cargo vans and buses from other parts of Iloilo province and other neighboring provinces. “(The) Perimeter Boundary Ordinance was passed to decongest the traffic, but current P2P cannot directly cause traffic because of their limited frequency, but if they do so, we will still regulate it in the council,” Mr. Duron said. The councilor said the transport groups can “go to court” if they do not agree with the committee report. “(B)ecause of the fast development here, what we are trying to do is to balance the interest of the investors and the public welfare,” he said. — Emme Rose S. Santiagudo

Nation at a Glance — (08/22/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (08/22/19)

Congress buckles down on 2020 budget

THE PROPOSED national budget for next year has entered the legislative mill, with the House of Representatives lining up hearings leading to final approval at the chamber by Oct. 4.

Both chambers of Congress are moving to prevent a repeat of last year’s delayed enactment that now weighs on overall economic growth.

The Executive submitted on Tuesday to the House the proposed P4.1-trillion national expenditure program that is 12% more than the P3.662-trillion 2019 budget and 19.4% of gross domestic product (GDP).

Under the configuration before the budget was submitted to the House, the government was to target revenues of P3.573 trillion or 16.9% of GDP, and disbursements of P4.21 trillion or 19.9% of national output, yielding a P637.6-billion fiscal deficit equivalent to three percent of GDP.

“The 2020 National Budget… will aim to build on the fruits and gains of the previous annual expenditure programs of the administration, not only to ensure but [also] to consolidate the gains…” President Rodrigo R. Duterte said in his budget message.

PRIORITIES
A summary of budget priorities said: “The 2020 cash appropriations will prioritize the acceleration of infrastructure, anti-poverty and pro-employment spending.”

Infrastructure expenditures for 2020 are programmed at P972.5 billion, equivalent to 4.6% of gross domestic product (GDP), about 6.9% more than P909.7 billion this year that is equivalent to 4.7% of GDP. The Department of Public Works and Highways (DPWH) will get P203.8 billion of infrastructure funds, consisting of P119.1 billion for its Network Development Program, P51.8 billion for its Asset Preservation Program and P32.9 billion for bridges. The Department of Transportation (DoTr) will get P107.554 billion, consisting of P106.7 billion for railways, P508 million for sea transport and P346 million for air transport infrastructure.

In its latest projections, the Department of Budget and Management put infrastructure spending at P1.55 trillion for 2021, equivalent to 6.6% of GDP, and P1.786 trillion or 6.9% of GDP in 2022, when Mr. Duterte ends his six-year term.

Under human capital development in the proposed 2020 national budget, health services will get P191.3 billion, social protection will get P174.3 billion and education will get P171.1 billion.

Under food security, irrigation development will get P36.3 billion and support for farmers and fisherfolk will get P18.4 billion, while the Rice Competitiveness Enhancement Fund and farm-to-market roads each get P10 billion.

Finally, under peace and national security, P189 billion will go to the Department of National Defense, P184.9 billion to the Philippine National Police, P70.6 billion to the Bangsamoro Autonomous Region in Muslim Mindanao and P38.7 billion to the judiciary.

SECTOR BREAKDOWN
By sector, social services will get the biggest chunk of appropriations at 37.2% with P1.525 trillion.

Economic services will get P1.184 trillion, general public services will get P734.5 billion, debt servicing will get P451 billion, while P195.6 billion will go to defense.

Departments that will get the 10 biggest allocations are: the Department of Education (P673 billion), DPWH (P534.3 billion), Department of Interior and Local Government (P238 billion), Department of Social Welfare and Development (P195 billion), DND (P189 billion), Department of Health (P165.5 billion), DoTr (P147 billion), Department of Agriculture (P56.8 billion), the judiciary (P38.7 billion) and the Department of Environment and Natural Resources (P26.4 billion).

TARGET
The House targets final approval of the proposed 2020 national budget by Oct. 4, before lawmakers of the 18th Congress take a month-long vacation.

Both chambers of Congress aim to have the new budget ready for signing into law by Dec. 15, before lawmakers take their Dec. 21-Jan. 19 Christmas-New Year break.

House Speaker Alan Peter S. Cayetano said in a press briefing on Tuesday that plenary sessions will begin two hours later at 5 p.m. starting next week to give more time for committee budget hearings.

“Instead of starting the sessions at 3 o’clock,we will be starting the sessions at 5 o’clock so that we can have four hearings a day,” Mr. Cayetano told reporters.

“So far, we have also scheduled hearings on Thursdays and Fridays,” he added, saying lawmakers will be working “day and night” in order to make sure the spending plan is approved on time.

Hearings on the 2020 national budget start on Thursday, Aug. 22, with briefings to be conducted by top officials of the Development Budget Coordination Committee, which consists of the Department of Budget and Management, National Economic and Development Authority, Department of Finance and Bangko Sentral ng Pilipinas.

The government operated on a reenacted 2018 budget from January to April 15, when Mr. Duterte signed this year’s national budget into law but vetoed P95.3 billion in funds that were not in sync with state priorities, slashing the total to P3.662 trillion.

The Development Budget Coordination Committee in its March 13 meeting slashed GDP expansion targets for this year (to 6-7% from 7-8% originally) and 2020 (to 6.5-7.5% also from 7-8%), citing constraints from the delayed enactment of the national budget. — V. A. C. Ferreras

Alcohol, e-cigarette tax hike bags House 3rd reading OK

By Charmaine A. Tadalan
Reporter

THE MEASURE increasing excise taxes on alcohol products and e-cigarettes bagged third and final reading at the House of Representatives on Tuesday.

Its counterpart measure in the Senate went through initial deliberation in that chamber’s ways and means committee, with its chairman Senator Pia S. Cayetano targeting to approve higher rates against the House version.

With 184 affirmative votes, two negative votes and one abstention, House Bill No. 1026, principally authored by Albay-2nd district Rep. Jose Ma. Clemente S. Salceda, was passed by the chamber.

The measure proposed to increase ad valorem tax on distilled spirits to 22% of net retail price (NRP) per proof from 20% and a specific tax of P35 per liter from P24.33 in 2020. The specific tax rate will then increase by P5 every year until it reaches P45 in 2022, after which it will be increased by seven percent annually beginning 2023.

The measure will introduce a 15% ad valorem tax per liter on sparkling wines, which is not imposed under the present system; in addition to a P696 specific tax per liter in 2020, regardless of price. At present, sparkling wines costing P500 or less are levied P316.33 while those sold at a higher price are levied P885.72. This is also set to increase by seven percent annually thereafter.

Excise tax on still wines, meanwhile, will vary according to alcohol content. It will be increased to P40 per liter from the current P37.96 for wines with up to 14% alcohol volume and to P80 from P75.92 for those containing more than 14%. This tax will increase by seven percent annually.

For fermented liquor, such as beer and ale, the bill proposed to increase current excise tax to P32 in 2020, P34 in 2021 and P36 in 2022, with a seven percent increase every year thereafter.

Cooking wines with salt content of at least 1.5 grams for every 100 milliliters are exempt from excise tax.

E-CIGARETTES AS WELL
Amendments to the bill included provisions on e-cigarettes and vapor products.

Heated tobacco products, for one, will be taxed at a rate of P45 per pack starting January 1, 2020 and will increase by P5 in the years thereafter until 2023.

The bill further provided that tax rate for vapor products, containing nicotine salts, will increase by P5 every year from P30 in 2020 until it reaches P45 in 2023.

The Department of Finance (DoF) on Tuesday said in a Senate hearing that its proposed alcohol product excise tax increase is expected to generate P33.3 billion in 2020. This was cut by half in HB 1026, which is seen to bring in only P16.6 billion from alcohol products in the first year of implementation.

“Well for me, as long as I’m convinced about the goals set by the DoH, the funding they want to raise, [as well as] the other issues raised by the industries and other concerned parties are addressed, I’m more than happy to target the goal of DoF,” Ms. Cayetano told reporters after the hearing. “‘Cause I work with the administration, so that is my goal. As to whether I would be able to deliver that, we have to see.”

Department of Health (DoH) Undersecretary Rolando Enrique D. Domingo said the measure intends to sustain implementation of Republic Act No. 11223, or the Universal Health Care Act. “For 2020, we are asking P257 billion, but… the Department of Finance so far has only identified P195 billion, we have a gap of about 65 billion,” he told the panel.

Enactment of Republic Act No. 11346, which will increase excise tax on tobacco products to P45 per pack 2020 from the current P35, will contribute P15.5 billion, leaving a P46.9-billion funding gap.

The committee was tackling Senate Bill No. 383, filed by Senator Emmanuel D. Pacquiao, which adopted the DoF-DoH proposal, but does not cover excise tax increase on e-cigarettes.

The alcohol and e-cigarette excise tax increase was among the bills mentioned by President Rodrigo R. Duterte in his fourth State of the Nation Address on July 22.

The President also urged Congress to pass the proposal to reduce corporate income tax to 20% by 2029 from 30%; centralize real property valuation and assessment, and simplify the tax structure for financial investment instruments.

The government has so far enacted the Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Law, which slashed personal income tax and increased or added levies on several goods and services; RA 11213, the Tax Amnesty Act, which grants estate tax amnesty and amnesty on delinquencies, or delinquent accounts that remained unpaid after being given final assessment and RA 11346, which will gradually increase the excise tax on tobacco products to P60 per pack by 2023 from P35 currently.

The Senate bill proposed to increase the ad valorem tax rate to 25% of net retail price of distilled spirits and the specific tax rate to P40 per proof liter. The specific tax rate will increase by P5 annually until it reaches P55 in 2023, and will rise by 10% per year thereafter.

Sparkling wines will be levied with a P335 specific tax rate for bottles costing P500 or less and P937 for those costing more than P500. In 2020, excise tax on sparkling wines will cost P328.99 and P921.15, respectively.

Excise tax on still wines will increase to P40 in 2020 for wines with up to 14% alcohol volume and to P80 for those containing more than 14%. It will then increase 10% annually beginning 2021.

The bill also proposes that for fermented liquor, excise tax will increase to P40 in 2020 from P26.43 currently, to P45 in 2021, to P50 in 2022 and to P55 in 2023, with a 10% increase every year thereafter. — with V. A. C. Ferreras

BoI approves 24% more committed investments in seven months to July

THE BOARD of Investments (BoI) approved 24% more committed investments at P312.8 billion in the seven months to July, with majority of the inflows going outside Metro Manila, the agency said on Tuesday.

“This growth was still resilient enough to withstand the global demand downturn brought about by the lingering trade dispute between the US and China, the trade spat between Japan and South Korea and… geopolitical tensions,” Trade Secretary and BoI Chairman Ramon M. Lopez said in a statement. “We remain among the fastest growing economies in Asia and we are among the few countries to even register a 1.5% export growth in July.”

Mr. Lopez said investors continued to show “strong confidence” in the Philippines and the administration despite the challenges from global tensions. The provinces cornered 96.3% of total committed investments in the seven months.

Although local investments accounted for nearly 78% of the total at P243.2 billion, or a growth of 2.7%, foreign inflows recorded a significant increase of 348% to P69.6 billion.

Among foreign investors, Singapore remained the top source with P35.4 billion. Netherlands followed with P9.2 billion. Thailand came out third with P8.6 billion. Japan with P5.8 billion and the United States with P2.4 billion completed the top five investment sources.

Mr. Lopez said the Philippines had diversified its markets by identifying new destinations for more opportunities while ensuring that its domestic base remains strong and on the upswing to soften the impact of the trade disputes.

“The recent trade spat between Korea and Japan should urge us to escalate and complete the negotiation of the free trade agreement with South Korea and review or enhance the Philippines-Japan Economic Partnership Agreement to avail of more opportunities and exchanges with Japan. Despite the obstacles to global trade, we have to adapt as we make a push for our domestic industries to grow and move forward,” he said.

The BoI said power projects remained the biggest recipients of investments with P195.1 billion, up 65.3% from a year ago. The manufacturing sector accounted for P46.1 billion as investments jumped 132.6%.

The information and communication sector posted P33.2 billion, nearly a hundred times more than the P340 million last year. The tourism accommodation sector made up P9 billion, about eight times more than a year earlier. The human health and social work activities, or hospitals, recorded P1.8 billion, higher by 37% from a year ago.

Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said investments were still growing despite international tensions. “We still have a lot of pending projects that need thorough study and evaluation. I am still confident that by the end of the year, we are going to attain our target despite the global uncertainties. We assure foreign investors that the Philippines is a safe haven for their investments and they should take advantage of our very strong domestic demand and commit to long-term deals,” he said.

Region IV-A or Calabarzon topped regions with P203.3 billion, or 65% of the total. Region III or Central Luzon came second with P29.3 billion. Metro Manila was third with P11.7 billion or 3.7%. Region II or Cagayan Valley had P10 billion, while Region VII or Central Visayas registered P9.4 billion to complete the top five regions.

In July, notable projects approved were the P1.7-billion Airbus plane project of Cebu Air., Inc.; the P1.4-billion, 9.4-megawatt hydropower project of At Dinum Co. in Nueva Ecija; the P728-million hydropower facility of Coto Hydro Corp. in Zambales; Integrated Meat and Poultry Processing Inc.’s P410-million poultry dressing plant in Bataan; and the P381-million low-cost housing project of Borland Development Corp. in Batangas. — Victor V. Saulon