THE Department of Information and Communications Technology (DICT) on Friday presented its proposed alternative automated election system, aimed at improving transparency.
The vote tallying machine, as proposed, is a “point-of-sales style wireless terminal,” with an attached scanner and projector that allows poll watchers to capture, validate and display the physical ballot image.
“Makikita ng audience every vote, makikita nila ‘yung actual ballot. Kung wala silang rejection, isasama sa official count,” Acting Secretary Eliseo M. Rio Jr. said during a demonstration on Friday at the DICT Building in Quezon City. (The audience will see every vote, they’ll see the actual ballot. If they have nothing to reject, the ballot is not rejected, it will be included in the official count.)
DICT said the technology needed to develop the machines is available in the Philippines. It will present the same on July 15, alongside other developers, to the Commission on Elections (Comelec) for its consideration.
The Department is also considering other modes of ballots that will not allow over-voting, which said had been a major problem in previous elections. Mr. Rio said the over 9 million votes for various candidates were not counted due to over-voting by around 1.2 million voters.
“Itong concept namin (Our concept) will make it impossible for the voter to vote more than what is needed,” Mr. Rio said.
The other modes the government can choose from include a hand-written, fill-in-the-blanks ballot with an optical character recognition that will auto-populate the enumerator app, a multiple choice ballot with an optical mark recognition engine, and a barcode sticker-based ballot with image processing engine.
“I think it’s about roughly around P700-800 million, ‘yung ginamit natin (what we spent) last electio. Ito (For this, we’ll use) P30 million, malaking savings makukuha sa ballot (which can generate savings),” Mr. Rio said, noting the Comelec will no longer need to print ballots unique to each local government units (LGUs).
At present, Comelec prints different ballots for each LGU for the election of local executives as well as members of the House of Representatives.
Moreover, the DICT said it is also in discussion with Congress for a possible amendment of the election automation law. “The lawmakers are already coming up with a hybrid law. In fact, we wanted the hybrid law to be implemented for the 2019 elections, but di na naabutan (it didn’t make it on time).”
PRESIDENT Rodrigo R. Duterte on Friday said he will tackle “lengthily” the disputes in the South China Sea at the 34th Association of Southeast Asian Nations (ASEAN) Summit in Bangkok.
Mr. Duterte made his remarks at the oathtaking of his son, Sebastian “Baste” Z. Duterte, as Davao City vice-mayor.
The President, who was scheduled to depart for Bangkok on Friday evening, said in his speech: “Ang tanong ko lang sa China, we’re friends. Pero ang China nag draw ng line dikit sa coastlines (My question for China, we are friends, but China has drawn a line close to the coastlines)…. Is it correct for China to declare ownership of an ocean?”
He added that if China can claim an entire ocean, then he can also claim the Sulu Sea and require all passersby to secure a permit from the Philippine government.
“I am thinking of claiming the Sulu Sea as ours. Wag kayong dumaan pagwala kayong permiso sa akin (Do not pass through the area without permission from me). I don’t mind if America will claim the Pacific Ocean…. That is the danger there. I will talk lengthily about this sa (at the) ASEAN,” he said.
He also said, “Simple lang (It is simple), can you claim an ocean as your own? Eh di (So,) I will claim mine…. That is what we will talk about tomorrow.”
On the June 9 Recto Bank incident, he reiterated that an investigation is necessary.
“We consider it a maritime incident and it should be investigated ng Coast Guard…. Hindi yung tatawagan mo yung…warships. You do not call the Navy pag walang gera (You do not call the Navy if there is no war),” he said.
“Hindi ako takot sa China. Takot ako na…walang kalaban laban tayo (I am not scared of China. I am scared that we’re no match…. Pero kung sabihing (But if you say that) America has the right to interfere, it becomes a bloody confrontation.”
He noted that China has committed to compensate if the incident was its fault.
“Why do we have to go into a convoluted argument. That is the problem. A little knowledge is a very dangerous thing. Not good,” he added.
He further said the incident was “not an attack on our sovereignty.”
“Kaibigan natin ang China, marami namang Chinese dito, pati pamilya ko Chinese. Pero ganito, ang problema ng China nag-draw siya ng nine dash line (China is our friend. There are many Chinese here anyway, even my family. But the problem is that China drew a nine-dash line [in the South China Sea]),” the President said.
THE Commission on Audit (COA) has flagged the Bureau of Corrections (BuCor) for several violations including excess salaries and many unimplemented projects.
According to COA’s 2018 audit report, only 14 of 61 projects were implemented last year. “Of the 61 procurement activities totaling P88,648,912.00, only 14 projects/activities or 23 percent, were implemented amounting to P36,074,123.13,” the report said.
“Apparently 47 projects or 77 percent, with a total estimated budget of P51,067,600.00, were not implemented at all,” it added.
But COA also cited BuCor’s explanation that the delay in the projects’ implementation was “due mainly to lack of material and lack of bidders.” The agency recommended the immediate implementation and completion of unimplemented projects and remittance to the Bureau of Treasury of all unused balances.
COA also noted that salaries paid to three deputy directors-general were not consistent with the approved organizational structure and staffing pattern of the BuCor Act of 2013. In accordance with that law, the three officials are only each entitled to a base pay rate of P86,227 per month.
“However, the three Deputy Director(s) General claimed their salaries for the month of November at the rate of P128,467.00 each based on the salary rate of civilian official as Assistant Secretary, which is inconsistent with OSSP (Organization Structure and Staffing Pattern),” the report said.
The auditing agency also reported that the representation allowance and transportation allowance (RATA) were paid to the designated Director, Directorate for Finance and Logistics (DFL), a position which is not approved by the Department of Budget and Management.
“Her designation (Bienvenida F. Tupas) as Director, DFL, does not entitle her to P17,000 RATA since this position was not among the position(s) approved by DBM. The foregoing updated organizational units prescribed by DBM do not include the position of Director, Directorate for Finance and Logistics, instead, the Finance Division with Organizational Code of 22.3 was retained,” COA said.
Sought for comment, COA said that BuCor “maintains that the ranks as provided for in Section 9(b) of RA 10575, otherwise known as ‘The Bureau of Corrections Act of 2013,’ shall be adopted.”
State auditors also flagged BuCor’s overstocked medicines worth P15.5 million.
“Apparently, actual demand of patients (was) not considered in the procurement of drugs and medicines, resulting in excess procurement of drugs and medicines amounting to P15,501,612.25. This is a manifestation of a clear disregard of the actual needs of patients or purchases of the same even without the need/basis to purchase,” said COA.
State auditors reported that an example of excess procurement is the medicine Verapamil, of which 99,300 tablets were received by BuCor, but only a total of 3,450 tablets were given to inmates during the year.
COA also called out delays in the public bidding and awarding to contract of suppliers. COA recommended that BuCor should “undertake planning and effective prioritization in its procurement and keep track of the movement of drugs and medicines to ensure safety stock levels and avoid excessive purchases,” COA said.
Also according to COA, two food caterers failed to comply with the food safety requirement stipulated in their food substance agreement with BuCor, resulting in poor catering services and endangering the health of inmates. The caterers identified in the report were Aurora F. Sumulong Eatery and V&J Trading.
State auditors said the caterers failed to comply with most of the food safety requirements including sanitary permit, employment of food compliance officer, employment of dietitian, health certificate of food handlers, and pest treatment certification.
COA said BuCor has already issued a notice to terminate to the two caterers.
“They (BuCor) further justified that they are observing due process and will update the audit team on the status of the said notice,” said the report.
AN INDONESIAN militant involved in the Maute group’s 2017 siege of Marawi City has been found guilty of illegal possession of firearm.
Taguig Trial Court Branch 266 ruled that accused Muhammad Ilham Syahputra violated the Comprehensive Firearms and Ammunitions Act, Republic Act No. 10591.
It was reported that “one Caliber .45 Caspian pistol with SN 475269 and inserted with loaded magazine containing seven live ammunitions of Caliber .45,” was recovered from Mr. Syahputra in a joint police operation, following the declaration of martial law in Mindanao after the Maute siege.
The court noted that Syahputra was not a licensed or registered firearm holder.
The operation was led by the Marawi City Police Station, Criminal Investigation and Detection Group-Autonomous Region in Muslim Mindanao, Provincial Investigation Detection Management Branch and Provincial Intelligence Branch of Lanao del Sur Provincial Police Office.
Syahputra faces eight years and one day up to 10 years, eight months and one day of imprisonment.
The Court also ruled that Syahputra is not guilty of being in possession of a fragmentation grenade. “The Initial Verification report adduced by the prosecution does not include the negative finding that accused is not authorized to possess a fragmentation grenade,” the court said in part. — Charmaine A. Tadalan
THE trade deficit in agriculture commodities widened in the first quarter, the Philippine Statistics Authority (PSA) said.
Data from the PSA released Friday showed outbound shipments of agricultural goods totalled $1.5 billion in the first quarter, up 0.57% year-on-year.
Meanwhile, around $3.56-billion worth of farm products were shipped into the country during the period, up 14.35% from a year earlier.
As a result, the first-quarter deficit in agriculture trade was $2.06 billion, up 26.95% from the $1.63-billion gap a year earlier.
Total agricultural trade, which is the sum of imports and exports, was valued at $5.06 billion in the first quarter, up 9.9% from $4.6 billion in the same period of 2018.
Agriculture accounted for 11.5% or $5.06 billion of total trade, which was $44.05 billion in the first quarter.
The Philippine incurred its biggest agriculture deficit with the Association of Southeast Asian Nations (ASEAN) at $1.03 billion followed by the United States ($489.81 million), Australia ($177.18 million), and the European Union ($165.25 million).
On the other hand, trade in farm goods with Japan was in surplus by $230.59 million.
Edible fruit and nuts were the country’s top agricultural export at $611.57 million, or 40.89% of the value worth of total goods shipped.
Other top farm goods exports include animal or vegetable fats and oils ($231.75 million); tobacco and manufactured tobacco substitutes ($107.09 million); preparations of meat, of fish or of crustaceans, molluscs and other aquatic invertebrates ($103.34 million); fish and crustaceans ($90.81 million); and preparations of cereals, flour, starch, or milk ($75.66 million).
Meanwhile, the country’s top imports were cereals at $969.14 million, followed by miscellaneous edible preparations ($402.31 million); residues and waste from the food industries ($393.24 million); dairy produce ($320.57 million); and meat and edible meat offal ($296.51 million).
UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said although a trade deficit in agriculture is expected, it still implies weakness in the sector.
“Having more agriculture commodity imports than exports describe a rather weak productivity of the agriculture sector. It is not new, however, that Philippine agriculture has been a laggard contributor to general economic growth of the country,” he said in an e-mail.
Mr. Asuncion also noted that agriculture trade was driven by imports amid increasing local demand for food.
“With increasing economic growth is increasing demand for food and other agriculture products. Aside from higher demand, changes and easing in domestic policy particularly relating to agriculture commodity imports can be another reason for the growth in agriculture growth,” he said.
Michael L. Ricafort, head of Rizal Commercial Banking Corp.’s (RCBC) economics research division, had a similar assessment.
“The faster growth in the imports of agricultural products also partly reflect the increased requirements of the local economy, which remains to be among the fastest growing in ASEAN,” he said in a separate e-mail.
Mr. Ricafort also noted that the increased importation of agricultural products may be attributed to the impact of the government’s efforts to manage inflation last year.
“The wider agricultural trade deficit in the first quarter may reflect the increased importation of rice/food, fish, sugar, and other agricultural products…to increase the local supply…to lower their prices and better manage overall inflation,” he said.
Headline inflation slowed to 3.8% in the first quarter compared to 5.9% in the fourth quarter of 2018 according to PSA data. The slowdown was mostly broad-based with much of the downtrend seen in the heavily weighted food and non-alcoholic beverages index at 4.6% in the first quarter versus the 8% in the fourth quarter last year. Food alone averaged 4.1% in the first three months of the year against the 7.7% average in the preceding quarter.
Mr. Ricafort said the flat growth in the country’s agriculture exports may be attributed to the global economic slowdown largely due to ongoing trade tensions between the US and China since July of last year.
“Economic growth in China, which is the world’s second biggest economy and the biggest importer/buyer of various agricultural commodities, has been among the slowest in nearly 30 years,” he said.
TRADE SEEN PICKING UP
Both economists expect agriculture trade to pick up in the coming months.
“At the end of this year, robust growth is expected because of the policy changes in agriculture commodities importation,” UnionBank’s Mr. Asuncion said, adding that risks to this outlook “usually come from perennial weather disturbances.”
RCBC’s Mr. Ricafort had the same view: “Agricultural imports could continue to increase in the coming months in view of the full implementation of the Rice Tariffication Law, which removes the volume limits on rice imports in able to increase local supply of rice (to address any risk of shortage in the supply of cheaper rice just like what happened earlier in 2018), as well as increased imports of fish, corn, sugar and other food/agriculture items to increase local supply and lower local prices of these agricultural commodities in the local market…,” he said.
Mr. Ricafort likewise noted “improved trade and diplomatic relations” with major markets for the country’s agriculture exports, particularly in huge markets such as China, Japan, and South Korea.
PRESIDENT Rodrigo R. Duterte is set to meet with Thai business leaders on the sidelines of the 34th Association of Southeast Asian Nations (ASEAN) Summit in Bangkok and invite them to do business in the Philippines, Trade Secretary Ramon M. Lopez said on Friday.
Malacañang said Mr. Duterte was scheduled to depart for Bangkok Friday afternoon to attend the ASEAN Summit — which is chaired this year by Thai Prime Minister Prayuth Chan-ocha —from June 22 to 23.
In a televised press briefing in Bangkok on Friday morning, Mr. Lopez said there are no deals to be signed at the summit.
“Well, the President is scheduled to meet a group of Thai businessmen, members and basically leaders of the federation of Thai industries, business chambers in Thailand as well as private companies who are in banks, food manufacturing, agriculture or agribusiness, real estate,” Mr. Lopez said.
He said the meeting will be an “open discussion that will basically allow the President to present the Philippines as a very good investment destination.”
He also noted that some of these companies are already operating in the Philippines.
“So, we are basically asking them to be more active and increase their exposures and their investments,” he said.
Mr. Lopez said the President will “assure” the Thai businessmen the “protection of their investments.”
To convince the business leaders, Mr. Lopez said the President will present to them the economic achievements of his administration, including S&P Global Ratings’ recent sovereign credit rating upgrade to BBB+ from BBB and reforms being undertaken like the “liberalization of foreign investment” policies.
He added that Mr. Duterte will also tout the country’s robust economic growth. — ALB
THE TRADE WAR between the United States and China will compel member-states of the Association of Southeast Asian Nations (ASEAN) to fast-track negotiations on the Regional Comprehensive Economic Partnership (RCEP) in order to “insulate” the region from the impact of the tensions, Trade Secretary Ramon M. Lopez said on Friday.
“It’s precisely the reality right now. That’s the reality…because of this trade tension between the US and China, that compels ASEAN countries as well as the RCEP-participating countries to really fast-track the RCEP [consultations] so that, at least, in this part of the world, we will have this regional free trade agreement that can still improve the trading within the region and somehow be partially insulated from the impact of what’s going on between the US and China,” Mr. Lopez said in a televised news conference in Bangkok on Friday.
Mr. Lopez was in Bangkok to accompany President Rodrigo R. Duterte at the 34th ASEAN Summit from June 22-23.
The 10 member-states of the ASEAN have been trying to conclude negotiations on the RCEP since 2012. This formal agreement also involves free trade with Australia, China, India, Japan, South Korea, and New Zealand.
In a press briefing at the Palace on Monday, Foreign Affairs Assistant Secretary Junever Mahilum-West said there could be discussions on the RCEP during the ASEAN Summit in Bangkok.
She noted that the RCEP has been “gaining importance because of the trade friction between China and the US.”
“We hope that the RCEP would be concluded by this year. We hesitate now to say that we conclude it by the summit, you know, a definite deadline, because when we don’t meet the deadline, then you know our credibility is a little bit questioned. So by this year, we hope that the RCEP [negotiations] would be concluded,” she said.
The areas of negotiations include trade in goods and services, investment, economic and technical cooperation, intellectual property, competition, and dispute settlement, among others. — Arjay L. Balinbin
THE PHILIPPINES is one of the top destinations for exported wheat, soybean cake and meal for market year (MY) 2019/2020, the United States Department of Agriculture (USDA) said in a report.
In its export sales report for the week ending June 13, the USDA noted that exported wheat to the Philippines for the next MY will be at 65,900 metric tons (MT). The country is second to Indonesia with 84,500 MT.
As for soybean cake and meal, the country is the top destination with 55,300 MT, followed by Mexico with 21,900 MT.
In a separate report, the agency said the importation of agricultural commodities like wheat, corn, and rice has helped ease inflation.
“Philippine inflation continued to decline in 2019, mainly because of considerable food and feed grain imports. Although inflation slightly increased to 3.2 percent in May 2019 due to food price adjustments brought about by a mild El Niño, Philippine government planners expect full year inflation to settle within the 2-4 percent target for 2019,” it said.
After peaking at 6.7% in September to October in 2018, inflation eased to 6% in November and 5.1% in December with the arrival of food and feed grain imports.
It further declined to 4.4% in January, 3.8% in February, 3.3% in March, and 3% in April before inching up to 3.2% in May.
The Philippine Statistics Authority said wheat imports in the first quarter grew 21.6% to $543.58 million; corn imports declined 45.7% to $43.09 million; and rice imports increased 165.3% to $473.47 million.
The government has implemented the Rice Tariffication law to help the rice industry by removing quantitative restrictions to imported rice and replacing it with tariffs, which will be used to improve rice production.
The USDA recently noted that the Southeast Asia is expected to be the top wheat importing region in 2018/2019 driven by demand from Philippines, due to typhoons, and Indonesia due to higher food and feed demand. — Vincent Mariel P. Galang
MEGAWORLD Corp. is bullish on the growth of the Philippine economy as it commits to spend P300 billion over the next five years to expand its residential, office, retail, and hotel projects.
The listed property developer said it will roll out the programmed spending from 2020 to 2024. It set a capex of P285 billion for the 2014-2019 period. This year alone, Megaworld is set to spend P65 billion for its expansion.
“We are trying to set new targets for 2020 and beyond…It’s going to be quite aggressive given that we’re feeling very bullish with the Philippine economy right now,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said in a press briefing after the company’s annual shareholders’ meeting in Quezon City yesterday.
About 65% of the five-year capex or P195 billion will be spent for the development of residential projects and investment properties such as offices, lifestyle malls, and hotels. The balance of 35% will be used for land acquisitions.
The company will use internally-generated funds for the capex.
Mr. Tan said they will continue with their usual track of launching two to three townships per year. The company earlier said it will have a total of 30 townships by end-2020, from its current network of 24 estates.
For its mall segment, Megaworld will introduce one major mall and about two to three community malls every year. Major malls typically cover 30,000-50,000 square meters (sq.m.) in gross floor area, while the community malls are usually sized from 10,000-15,000 sq.m.
Megaworld is also expanding its homegrown hotel brands as it looks to open Belmont Boracay, Savoy Mactan, and Grand Westside City in Parañaque. Together with sister firm Travellers International Hotel Group, Inc., Megaworld is on track to hit its target of having 12,000 hotel rooms moving forward.
The company also noted that it currently has 4,700 hectares of land bank under its portfolio. It expects to add another 2,000 hectares by 2020.
“Our existing land bank would be sufficient for the next 10 to 15 years of development,” Mr. Tan said.
The top executive said there are opportunities in areas like the Calabarzon region as Metro Manila’s population becomes densers.
“That’s why we have heavy presence in those areas and we continue to expand those areas. We feel that that will be the next wave…You’ll see new industries or new CBDs (central business districts) opening in those areas as well that’s why we’re making bets on those locations,” Mr. Tan said.
Megaworld grew its net income attributable to the parent by 16% to P3.8 billion in the first quarter of 2019, boosted by a 15% uptick in consolidated revenues to P14.9 billion.
Shares in Megaworld climbed 2.88% or 17 centavos to close at P6.07 apiece at the stock exchange on Friday.
DEL MONTE Pacific Limited (DMPL) swung to profitability in its fiscal year 2019, even as sales fell due to its divestment from its Sager Creek business in the US.
In a regulatory filing, the listed canned fruit manufacturer said net profit attributable to the parent stood at $20.32 million in the fiscal year ending April 2019, versus an attributable loss of $36.49 million in the previous year.
DMPL delivered an 11% decrease in sales to $1.95 billion, 73% of which came from its US unit Del Monte Foods, Inc. (DMFI). The company attributed the decline to “the divestiture of the Sager Creek vegetable business in September 2017, lower volume of retail branded products due to promotion reduction and distribution losses.”
The closure of the Sager Creek business was part of the company’s strategy to improve operational efficiencies and streamline operations. It also shuttered its Plymouth, Indiana tomato production facility in its fiscal year 2018. These resulted to one-off expenses worth $8.5 million.
One-off adjustments from the mentioned divestments were offset by one-off gains worth $13 million from the additional purchase of DMFI’s second lien loan worth $105.5 million at a discount from the secondary market.
Excluding the one-off items, DMPL’s recurring net income stood at $15.8 million, 32% higher than the $12 million it booked in the previous year.
“We have proactively reduced costs within our control amidst headwinds of rising tin prices. We are pleased to deliver a full year net income for DMPL, driven by our results in Asia, while we invest in transforming our US business,” DMPL Chief Executive Officer Joselito D. Campos, Jr. said in a statement.
“We are encouraged by the accelerated pace of innovation and new product launches especially in the United States, taking us into new categories and formats outside the can which is not growing.”
Meanwhile, sales in the Philippines also went down by 4.2% and 8% in peso and US dollar terms, respectively, as the firm transitioned to new distributors in a bid to enlarge and strengthen its distributor network.
“Decline in sales was further driven by unfavorable sales mix in the Philippines and higher direct promotion spending. These were partly offset by price increases implemented across several categories in line with inflation,” the company explained.
Its S&W brand in Asia and the Middle East saw a 19.6% increase in sales of fresh pineapple products in the same period.
Moving forward, the company expects to be profitable in its fiscal year 2020 on a recurring basis.
“The Group will continue to expand its existing branded business in Asia, through the Del Monte brand in the Philippines, where it is a dominant market leader,” the company said.
Shares in DMPL jumped 2.55% or 14 centavos to close at P5.64 each at the stock exchange on Friday. — Arra B. Francia
FILINVEST Land, Inc. (FLI) has paid off its P7-billion bonds earlier this month, it told the stock exchange on Friday.
The Gotianun-led property developer said in a disclosure that it has completed the payment of the seven-year fixed rate bonds that were issued on June 8, 2012.
The bonds, which carried an annual interest of 6.2731%, matured last June 8 and were then paid in full by June 10 through the Philippine Depository & Trust Corp.
FLI earlier said the capital raised from the issuance will be used to partially finance its capital expenditures for 2012. At the time, the company planned to launch P14.5 billion worth of residential units. It was also constructing office buildings for the outsourcing sector in Mandaluyong and Northgate Cyberzone in Alabang.
In a regulatory filing, the company said it has P24.57 billion in long term debt as of March 31, 2019. Aside from the P7-billion bonds that matured this month, FLI also has issuances that will fall due from 2020 until 2023.
FLI booked a net income attributable to the parent of P1.79 billion in the first quarter of 2019, 24% higher year on year, on the back of a 17% increase in gross revenues to P6.83 billion.
Shares in FLI slipped by a centavo or 0.58% to close at P1.72 each at the stock exchange on Friday. — Arra B. Francia
DOUBLEDRAGON Properties Corp. on Friday said it received the Leadership in Energy and Environment Design (LEED) Gold certification for its DoubleDragon Plaza project in Pasay City.
“DoubleDragon Plaza is designed to have a lasting positive impact on its occupants while promoting renewable clean energy. DoubleDragon upholds a strong sense of corporate social responsibility and always endeavors to build sustainable eco-friendly structures that will blend well with the community and remain productive and relevant in the next 100 years,” Edgar J. Sia II, chairman of DoubleDragon, said in a statement.
LEED is a green building certification by the US Green Building Council (USGBC).
Located within DD Meridian Park, DoubleDragon Plaza has a 1,098 solar installation on its rooftop. The buildings use double-glazed glass windows, LED or natural lighting, and has three outdoor garden decks.
The first five office towers are fully leased out, and hosts 20,000 employees. This is still expected to grow to 50,000 by end of 2020, which is seen to fuel the customer base of its DoubleDragon Plaza has numerous restaurants such as Jollibee, Mang Inasal, Chowking, Burger King, J.Co Donuts, Tim Ho Wan, Gerry’s Grill and Islas Pinas. It also has MerryMart Grocery, 7-Eleven and Ministop. — Vincent Mariel P. Galang
