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Duterte orders detailed report on PhilHealth irregularities

PRESIDENT RODRIGO R. Duterte has directed the Philippine Health Insurance Corp. (PhilHealth) to file criminal charges against its officials involved in the funding of “bogus” kidney dialysis treatments.

In a statement on Friday, Presidential Spokesperson Salvador S. Panelo said Malacañang is “deeply concerned” about the allegations of “irregularities… particularly those with regard to the reported anomalies in connection with bogus kidney dialysis treatments.”

Mr. Panelo noted that the agency has already initiated “several actions” on the allegations.

He said PhilHealth has filed “several administrative complaints” against those suspected to be involved in the anomaly.

“The President directs the management of the PhilHealth to institute criminal actions against those officials and employees who wittingly or unwittingly allowed such misuse of funds to take place for years,” he added.

He further said that Mr. Duterte has instructed the institution’s acting President “to submit a detailed report on these irregularities.”

“We will put a stop to this corruption and we will make sure that the law on universal health care is strictly enforced,” Mr. Panelo said.

On Thursday, Senator Risa N. Hontiveros-Baraquel, vice-chair of the Senate committee on health and demography, called for an “urgent and comprehensive investigation” on the matter.

“The gravity of the recent allegations should prompt government to check if every peso under the PhilHealth is indeed being used in a manner compliant with laws and the PhilHealth’s mandate. We cannot allow fraud and greed to impede the effective delivery of health services to the people,” she said in a statement.

“This scheme not only steals funds from government, but may have also led to the deaths of people who would have otherwise benefited from PhilHealth’s programs. A response from government is needed,” she added. — Arjay L. Balinbin

Bautista accepts Tulfo apology with conditions

DEPARTMENT OF Social Welfare and Development (DSWD) Secretary Rolando D. Bautista on Friday said he is willing to accept the apology of media personality Erwin T. Tulfo, who berated him on national radio, but with several conditions, including a public apology on various platforms and a donation of at least P300,000 each to 19 organizations and institutions.

In a statement written in Filipino, Mr. Bautista, a retired military general, said Mr. Tulfo should comply with these conditions immediately to prove his sincerity.

Tinatanggap ko ang paghingi ng paumanhin ni Ginoong Erwin T. Tulfo alinsunod sa mga nakatakda na kailangan niyang gampanan sa lalong madaling panahon upang mapatunayan ang kanyang katapatan.”

Mr. Bautista said Mr. Tulfo should publish his public apology in major newspapers and social media platforms, and air this over radio stations DZBB, DZMM, Radyo Singko NEWS FM 92.3, DZRH, and DZRB.

The donations, meanwhile, would be in place of payments for damages “sa pagkawasak ng aking pagkatao, reputasyon at pati na rin ng mga institusyon na aking kinakatawan o naging kaanib (for ruining my personality, reputation and the reputation of the institution I represent and previously affiliated with,” he added.

Mr. Baustista said the amount should be deposited to the Land Bank of the Philippines accounts of the following:

  1. Philippine Military Academy;
  2. Philippine Military Academy Alumni Association Inc.;
  3. Association of Generals and Flag Officers;
  4. First Scout Ranger Regiment, Philippine Army;
  5. Special Forces Regiment (Airborne), Philippine Army;
  6. Light Reaction Regiment, Philippine Army;
  7. Philippine National Police Special Action Force;
  8. Philippine Naval Special Operations Group, Philippine Navy;
  9. Philippine Marines Special Operations Group, Philippine Navy;
  10. Philippine National Police Maritime Group;
  11. Trust Fund for the City of Marawi’s Internally Displaced Persons;
  12. Philippine Veterans Hospital;
  13. AFP Victoriano Luna Medical Center;
  14. Philippine National Police Camp Crame General Hospital;
  15. Philippine Army General Hospital;
  16. Philippine Navy General Hospital;
  17. Philippine Air Force General Hospital;
  18. Philippine Coast Guard General Hospital; and
  19. Educational trust fund for the deserving children of DSWD employees.

Mr. Bautista — who retired as head of the Armed Forces of the Philippines and was the overall commander of military operations during the 2017 siege in Marawi — also thanked individuals who supported him, saying, “Taos-puso po akong nagpapasalamat sa bawat isa po sa inyo na nagpaabot at nagpakita ng simpatya, pagkabahala at suporta para sa akin nitong nakaraang buwan ng aking matinding pagsubok dahil sa paninirang-puri at insulto na naidulot ng programang Tutok Erwin Tulfo (I sincerely thank each of you who sent and demonstrated sympathy, concern, and support over the defamation and insults brought by the program Tutok Erwin Tulfo.” – Arjay L. Balinbin

Angara assures tobacco farmers of benefits from new cigarette taxes

SENATOR EDGARDO “Sonny” M. Angara has assured tobacco farmers that they will benefit from the incremental increase in cigarette taxes starting next year following the recent passage of the bill that will increase excise taxes on tobacco products.

Mr. Angara, chair of the Senate ways and means committee, said the new tobacco excise tax bill approved by the Senate and the House of Representatives provides that up to 20% of the incremental revenues from the additional duties will go directly to 23 tobacco-producing provinces to finance programs for farmers.

“Under the measure, 15 percent of excise tax on locally manufactured Virginia-type cigarettes but not exceeding P17 billion will go to Virginia tobacco producing provinces, while 5 percent but not exceeding P4 billion will be allocated to burley and native tobacco producing provinces,” said Mr. Angara in a statement on Friday.

The approved proposal increases the excise tax on tobacco products to P45 in 2020 and by P5 every year until it reaches P60 per pack in 2023, then by 5% annually thereafter.

Mr. Angara said the support for tobacco farmers can be in the form of farm inputs, trainings, safety nets, infrastructure, livelihood and agri-industrial projects.

Mahirap din naman po ang kalagayan ng mga kababayan nating tobacco farmers. Mula raw po nang ipinatupad ang sin tax law noong 2013, mahigit 20 milyong kilo ng tobacco ang ibinaba sa produksyon (Our tobacco farmers are in a difficult state. They say that since the sin tax law was implemented in 2013, tobacco production has gone down by 20 million kilos),” Mr. Angara said.

The additional sin tax collections on tobacco and alcohol products are intended to help finance the rollout of Republic Act No. 11223, or the Universal Health Care Act (UHC), which is expected to have a P63-billion funding gap in its first year of implementation. Vince Angelo C. Ferreras

Fish kill in Taal Lake should not affect tilapia market price, says BFAR

DEPLETED LEVEL of dissolved oxygen caused the recent fish kill in Taal Lake, the Bureau of Aquatic Resources (BFAR) said, but assured consumers that the volume affected is minimal and should not affect the market price of tilapia.

“Depleted level of dissolved oxygen in waters of Barangay Buso-buso and Gulod in Laurel and Barangay Bañaga in Agoncillo, Batangas triggered a fish kill reported on May 29. The total allowable number of fish cages in Taal Lake is 6,000 units. Of this, only 121 units or 2% were affected by the fish kill,” BFAR, an attached agency of the Department of Agriculture (DA), said in a statement.

“The DA-BFAR, while expresses regrets over the economic losses of those who are affected, is confident that the incident which hit only 2% of the total number of fish cages will not cause general surging of tilapia market price. The agency assures the public that supply of tilapia will not be severely disrupted,” it said.

The tilapia stock lost was over 600 metric ton (MT), amounting to a total of P43.13 million, according to the bureau.

Aside from the effect of heavy rain, sudden change of wind direction, and intense heat, overstocking of fish cages in the affected areas contributed to the incident.

BFAR has advised fish cage operators where dissolved oxygen level is down to start emergency harvest for tilapias that can still be sold and to use oxygen pumps or aerators to alleviate the extent of the fish kill.

“The DA-BFAR will continue to conduct water quality monitoring and will ensure that fish cage operators are properly advised and provided with the necessary technical assistance,” it said.

Meanwhile, militant fisherfolk group Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) noted that this was the third fish kill to hit the area due to the same factors.

“Fish kill is becoming the norm in Taal Lake courtesy of unsustainable aquaculture practices, which includes the incessant drive of fishpen operators to increase the number and size of aquaculture structures beyond the carrying capacity of the lake,” Fernando Hicap, PAMALAKAYA National Chairperson said in a statement.

“And its adverse effects are getting worse day by day, which can be seen on the increasing volume of fish killed every time this phenomenon occurs,” he added.

The group said this is an “ecological disturbance caused by the monopolization of aquaculture industry in Taal Lake without consideration of its limit” and called for the dismantling of a number of fish pens in the area owned by private individuals and big fishing companies.

PAMALAKAYA further said that priority should be given to the rights of the small fisherfolk who have been deprived of their traditional fishing grounds due to privatization. — Vincent Mariel P. Galang

Duterte asks CoA to allow P5M Marawi fund used for Hajj pilgrimage

PRESIDENT RODRIGO R. Duterte has asked the Commission on Audit (CoA) to “reconsider” its decision questioning the use of Marawi rehabilitation funds by the Housing and Urban Development Coordinating Council (HUDCC) to sponsor the Hajj trip of some displaced residents of the war-torn city.

In his speech during the 2019 Eid’l Fitr Celebration in Davao City on Thursday night, Mr. Duterte said: “So I am asking CoA to reconsider. Ano ba naman yang (What is) 5 million [pesos]? Actually that P5 million is worth billions in terms of your kind, I said generosity, to finance the poor people na (who are) Muslim para makapag-Hajj.”

He added that he himself does not have that amount should the CoA ask for a reimbursement and he would just have to go to jail.

“Over the years, it’s not a financing of a religious journey. Do not take it in that sense, that there is a separation of Church and State. Take it as a pacification campaign for, after all, natives man tayo dito (we are all natives here) and we were subjugated,” Mr. Duterte said.

In a statement on Friday, HUDCC Chairman Eduardo D. del Rosario said: “I am very grateful for the President’s expression of full support to TFBM’s (Task Force Bangon Marawi) sponsorship of 27 IDPs (internally displaced persons) to Hajj pilgrimage in Saudi Arabia. This bespeaks well of the President’s deep understanding of the Islamic culture and its implications.”

“The President’s sterling leadership truly inspires and drives us to bring about more positive changes in public service,” he also said.

Mr. Duterte, in his speech, also vowed to “preserve the fragile peace” in Mindanao.

“Allow me to take this moment to assure you that this administration will endeavor to preserve the fragile peace that we have built in this region that I call home,” said the country’s first President to come from the southern islands.

“Allow me to take this moment to assure you that through the National Commission on Muslim Filipinos, we will consistently uphold the rights and welfare of all Muslim Filipinos and, for that matter, for all Filipinos.” – Arjay L. Balinbin

6 Chinese arrested for kidnapping, bribery

THE NATIONAL Bureau of Investigation (NBI) reported on Friday that they nabbed six Chinese nationals for kidnapping fellow Chinese and bribing local agents.

The NBI-Cybercrime Division (CCD) reported that they “arrested three Chinese nationals on May 31, 2019 for Kidnapping and violation of Access Device Law.”

The suspects were identified as Junrong Jia, Xuejian Li, and Quijin Tian, who detained fellow Chinese nationals who were unable to pay debt incurred from gambling.

“These guys were apprehended by our Cybercrime Division based on the complaint of the relatives of the victims whom they abducted,” said NBI Deputy Director for Investigation Vicente A. De Guzman III in a press briefing.

“The ransom was ongoing when this was reported to our agents. Acting with dispatch, the agents proceeded to the casino and they coordinated with the officers. True enough, they saw in one of the rooms the victims,” said NBI Spokesman and Deputy Director Ferdinand M. Lavin.

In relation to the arrest, NBI said three other Chinese nationals tried to bribe the NBI-CCD agents for the release of the three kidnapping suspects.

“(W)hen the arrest process was being documented, the (other) three surfaced and tried to facilitate the release of the three others and bribed our agents for P1 million and our agents immediately hatched another operation to retract the givers,” said Mr. De Guzman.

The NBI arrested on June 1 Peter Lim Santos, Wang Liping, and Au Pang Liang on charges of Bribery and Corruption of Public Officials inside the NBI headquarters in Manila.

The NBI said the six will face the criminal charges here and will not be subject for deportation. — Gillian M. Cortez

Policies needed to boost ASEAN’s digital economy

DESPITE high participation in digitally-enhanced services trade among members of the Association of Southeast Asian Nations (ASEAN) between 2010 and 2016, policies to improve broadband penetration are needed to boost economic growth, especially in the Philippines and Indonesia, according to the World Bank.

The World Bank’s “The Digital Economy in Southeast Asia — Strengthening the Foundations for Future Growth” report released on late Thursday said the Philippines was the one of the largest participants in digitally-enhanced services trade in the ASEAN in 2010-2016.

“Of the region’s larger middle-income countries, the Philippines grew to become the largest participant in this type of services trade, growing by 149% to overtake Malaysia, whose total trade grew by a more modest 36%,” it said.

“Levels of economic development partially explain the disparity among the ASEAN economies, but regulatory factors are quite significant. In particular, the broadband penetration level of countries such as Indonesia and the Philippines is below the expected level of countries at their comparable per capita income,” the report said.

The report said 90% of the internet users in the region are from Indonesia, Malaysia and the Philippines.

It said the number of internet users in ASEAN increased to 390 million by end-2017 from 127 million in 2011.

“The Philippines ranks 126 out of the 182 countries measured by the ITU (International Telecommunication Union) with entry-level fixed broadband prices at 7.53% level of GNI (gross national income) per capita. Indonesia ranks even lower at 133rd and its fixed broadband costs nearly 10% of GNI per capita despite offering a low speed of 0.25 mbps,” it said.

The World Bank said cooperation is needed as an integrated regional market will be more competitive than individual economies with overlapping or unclear regulations.

“From a wider perspective, no individual country is large enough to shape the direction of regulation on the digital economy, for example in areas such as taxation or data policy but collective and coordinated action based on a principle of openness would put the region in a much stronger position,” it said. — RJNI

Israeli envoy explores cooperation opportunities in tech, agri during Iloilo visit

ILOILO CITY — Israeli Ambassador to the Philippines Rafael Harpaz visited Iloilo earlier this week to explore cooperation opportunities in line with its goal to strengthen ties with the Philippine through local partnerships in the regions.

In an interview following his meeting with Iloilo City Mayor Jose S. Espinosa III, Mr. Harpaz said they want to “widen their relations with the organizations and cities across the nation”.

“Our purpose is to deepen and widen our relations with Iloilo. We also want to explore and learn first what you have to offer as well as bring more Israelis here and also bring more Filipinos to Israel,” Mr. Harpaz added.

He cited technology, agriculture, and fisheries as the potential sectors for partnerships.

“There are a lot of areas that we can discuss… We can deepen our cooperation in technologies… It’s something that we want to widen and share our experiences with you,” he said.

Mr. Espinosa, for his part, said he wants the barangays to learn from Israel’s kibbutz, a collective community traditionally rooted in agriculture.

“I want the barangays to become self-sustaining. In Israel, they have this area called kibbutz… They have their system to make their villages self-sustaining. Imagine if we can get insights from them. For one, their hydroponics system promote agriculture without using soil. They have perfected it already,” the mayor said.

“Imagine if we can do something similar here in Iloilo City and develop some sort of independence and ingenuity, then barangays don’t need to depend on the city government and their internal revenue allotment (from the national government),” he added.

EMPLOYMENT OPPORTUNITIES
The Israeli envoy also said there are employment opportunities for Filipino caregivers and tourism sector workers in their country.

“We need more caregivers. You have wonderful people or Ilonggos as you call them. We need them to come,” he said, noting that there are already a significant number of Filipinos caregivers in Israel.

“I would also like to thank the Philippines because we have so many caregivers from the Philippines, including from Iloilo, that takes care of our beloved parents and grandparents… We treat them well, they have their restaurants, churches, they get paid well and it’s something very important to us,” Mr. Harpaz said.

In the tourism sector, he said, “We are soon going to open opportunities for Filipinos… We signed a government-to-government agreement after President Rodrigo Duterte went to Israel, but I think it is still in the process of ratification,” he added.

Mr. Duterte went on a four-day state visit to Israel in September 2018.

With a population of just nine million, Mr. Harpaz said Israel needs more people who willhandle tourists in the Holy Land sites.

“We had 4.2 million tourists last year but we have only nine million people so who will take care of the tourists? … Our agreement is still in the process of ratification but I think the first 2,000 Filipinos can work in tourism and they can also visit as tourists,” he said.

On his impression of Iloilo City, the Israeli ambassador said he was impressed by the heritage buildings and wants to come back in January for the Dinagyang, Iloilo’s biggest annual festival.

“When I first came, I saw the architecture. I am inspired to come back here in January to witness your fiesta. The city has an amazing culture and it is something that we want to get more in Israel. It’s also a smoke-free city, which is very important,” he said. — Emme Rose S. Santiagudo

NFA posts highest summer crop procurement

THE National Food Authority (NFA) recorded its highest summer crop procurement in five years at 4.76 million bags.

In a statement, NFA said as of May 31, it has procured 238,427 metric tons (MT), which is 6,576% more than the 3,571 MT procured in the same period last year.

“We are happy that the more we buy, the more farmers gain higher incomes as farmgate prices continue to dip. Our procurement operations are done on a year-round basis, and we are ready to buy as long as farmers have palay to sell to us,” Tomas R. Escarez, officer-in-charge administrator of NFA, said in a statement.

The NFA’s buying price was increased starting October 2018 to P20.40 per kilogram (/kg) for individual farmers and P20.70/kg for members of farmer cooperatives or organizations from P17.40/kg and P17.70/kg previously.

It has also added a P3.00/kg buffer stocking incentive on top of the P0.20/kg drying, P0.20/kg delivery, and P0.30/kg Cooperative Development Incentive Fee.

“At the rate we are buying palay, we are optimistic the NFA will be able to effectively meet its buffer stocking requirements of rice supply good for 15-30 days or 15 to 30 million bags,” Mr. Escarez said.

The Rice Liberalization Law or RA 1120 shifted the focus of the NFA to buffer stocking for calamities and emergencies sourced mainly from local farmers.

The agency is preparing for the coming of the lean months from July to September when there is limited harvest and when natural calamities hit the country. Mr. Escarez said NFA field offices were already instructed to start their milling operations to make sure there will be enough supply for relief operations of the government.

The average farmgate price of palay or unmilled rice fell 0.5% week on week during the third week of May to P18.26/kg, the Philippine Statistics Authority said. — V.M.P. Galang

Italpinas to raise up to P650M from preferred share issuance

ITALPINAS Development Corp. (IDC) looks to raise up to P650 million from the issuance of preferred shares.

In a disclosure to the stock exchange on Friday, the listed property developer said it has filed a registration statement with the Securities and Exchange Commission (SEC) for the issuance of 33,333,334 preferred shares to the public at up to P15 each.

The company has also set aside 10 million preferred shares for an over-allotment option.

The preferred shares will be non-voting, cumulative, non-participating, redeemable, convertible, and peso-denominated.

IDC earlier said that it will be spending P2-3 billion to expand its projects this year, financed through the preferred share issuance as well as bank loans.

The company is currently expanding Primavera City in Cagayan de Oro with the launch of two new residential towers with a mix of office spaces. The project will have a total of seven towers with about 1,400 residential units once fully developed.

It is also expanding its Miramonti project in Sto. Tomas, Batangas, which will house around 1,100 units across three towers on a 55,000-square meter property.

The company identified Lipa, Batangas; Subic, Zambales; and Dumaguete, Negros Oriental as potential locations for upcoming projects.

IDC’s net income attributable to the parent jumped 120% to P9.26 million in the first quarter of 2019, thanks to a 47% uptick in gross revenues to P107.55 million.

Incorporated in 2009, the company’s primary purpose is to engage in real estate development using knowledge in architectural design, market and demographic strategy, project development, and sales. Its projects mostly feature green and sustainable designs.

It also has a 25% equity stake in Constellation Energy Corp., which develops renewable energy facilities to provide clean energy to the Philippine grid.

Shares in IDC climbed 5.74% or 27 centavos to close at P4.97 each at the stock exchange on Friday. — Arra B. Francia

Melco PHL seeks SEC nod for equity restructuring

City of Dreams Manila

MELCO Resorts and Entertainment (Philippines) Corp. (MRP) has applied for equity restructuring at the Securities and Exchange Commission (SEC), in an effort to wipe out its deficit.

In a disclosure to the stock exchange on Friday, MRP said the company and its subsidiaries MPHIL Holdings No. 1 Corp., MPHIL Holdings No. 2 Corp., and Melco Resorts Leisure Corp. have each filed the application with the SEC.

The equity restructuring will remove each of their accumulated deficit by applying its existing additional paid-in capital (APIC).

MRP earlier disclosed that it has an accumulated deficit worth P134.57 million at the company level. Including its subsidiaries, the firm’s accumulated deficit stands at P16.46 billion, according to its 2018 Annual Report.

The company will use its APIC of P22.26 billion to wipe out the deficit.

“If the restructuring is approved by the SEC, the resulting value of each company’s accumulated deficit will be reduced to P0.00. There will be no charges in the amount of each company’s total stockholders’ equity as a result of the restructuring,” MRP said.

MRP is set to be delisted from the Philippine Stock Exchange on June 11, following its failure to comply with the minimum public ownership rule.

Trading of the company’s shares have been suspended since December 10, 2018 after its public float fell to 2.06%, much lower than the 10% limit set by the exchange. This came after the tender offer of its largest shareholder, MCO (Philippines) Investments Limited, which wanted to consolidate its shareholdings in the firm.

MRP initially applied for voluntary delisting last year, citing its inability to raise funds through the bourse despite efforts to maintain its listed status.

MRP operates the City of Dreams Manila, one of three integrated resort and casinos currently operating in the state-run Entertainment City.

The company’s net income attributable to the parent dropped 46% to P286.77 million in the first quarter of 2019, even as gross revenues improved by two percent to P7.51 billion. — Arra B. Francia

Angry K-pop fans spur probe into Tencent-backed Shopee

THE Philippines has begun an investigation into Sea Ltd. online mall Shopee after fans of K-pop girl group BlackPink complained it mishandled promotions around a meet-and-greet event.

The trade and industry ministry is considering sanctions against Shopee or ordering a refund for affected customers, Trade Secretary Ramon Lopez said.

“We need to protect consumers who participated. We need to know who’s at fault,” Mr. Lopez said in an interview with CNN Philippines.

BlackPink fans, who describe themselves as “Blinks,” took to social media to express frustration over an online contest that awarded top spenders time with the highest-charting K-pop girl group, complete with autographs. They accused Shopee of changing contest conditions such as cut-off dates, and arbitrarily withdrawing tickets. The hash tag #ShopeeScam was one of Twitter’s top trending topics on Thursday night.

On Friday, Shopee Philippines posted an apology on Twitter, saying that the event “fell short of the high standards” it was expected of. The company, which is backed by Chinese social media titan Tencent Holdings Ltd., said they were reaching out to all affected and taking steps to ensure a slip-up doesn’t happen again. — Bloomberg