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Cigarette industry targeted for death by sin tax

THE PROPOSED INCREASE in sin tax from the current P35 to P60 per pack is intended to “kill” the Philippine cigarette industry, according to Finance Secretary Carlos G. Dominguez III.

“That’s what we want, to kill it…There will be a lot of other revenue sources. Besides, our economy is growing, so we will be able to fund it.” Mr. Dominguez told reporters in an ambush interview on Friday.

“You want to make it so that the increase in price will be bigger than the increase in income. Because what happens now is the increase in the income of people overtook ’yung maliit na increase (the small increase) from P30 to P32 to P35. Kayang kaya na nila ’yun kasi ’yung increase nila ng income is also high (They can handle that because the increase in income is also high),” Mr. Dominguez said.

Mr. Dominguez said that tobacco farmers should not be planting crops that are bad for health, noting that land planted to tobacco is also good for other crops.

“If you’re not producing a good product you should not do it. …It’s actually good land. It can be used for many other things — corn, sorghum, fruit trees — those are better products,” Mr. Dominguez said.

According to Mr. Dominguez, the Department of Finance (DoF) will work with the top tobacco-producing regions to allot funds for crop diversification.

“We will work with the four tobacco-producing provincial local government units (LGUs) who collectively receive about P15 billion annually as their share of the tobacco tax, to allocate funds for crop diversification,” Mr. Dominguez said in a mobile message to reporters on Saturday.

The DoF and the Department of Health, together with Senator Emmanuel D. Pacquiao, launched a campaign against the use of cigarettes, by increasing the sin tax which will be used to fund Universal Health Care (UHC), which will require an estimate of P1.44 trillion combined from 2020 to 2024.

Mr. Pacquiao wrote Senate Bill 1599 which seeks to raise the sin tax to P60 per cigarette pack in the first year of implementation and an additional 9% per year thereafter.

Early this month, LT Group, Inc (LTG) President and Chief Operating Officer Michael G. Tan, said that “the hikes should be moderate” on cigarettes. LTG is the parent company of Fortune Tobacco Corp.

PMFTC, Inc, a leading cigarette firm in the country, is a joint venture between Philip Morris Manufacturing, Inc and Fortune Tobacco Corp.

“The tobacco business will remain as the main source of LTG’s earnings. PMFTC will continue to be vigilant in the fight against illicit trade and continue to work with the government,” Mr. Tan said.

Asked to comment, JTI Philippines, Inc Managing Director Manos Koukourakis said that before implementing a tax hike, the government should consider the farmers, retailers, employees, and individuals who indirectly work for the tobacco industry, suppliers, and all those who benefit from the income generated by tobacco consumption.

“All of them will be negatively affected by a tax hike. The smugglers though will benefit because the higher the tax, the higher the benefit due to tax avoidance,” Mr. Koukourakis said.

Meanwhile, Mr. Dominguez said that the government has yet to review whether to regulate heat-not-burn tobacco products which LTG hopes to sell in the country.

“At the moment, there are very few regulations regulating the importations of these products so we are going to review it to see if in fact they are enough to keep them out or to start regulating them. That’s why the DoF and the DoH really have to study this because there is a lot of science we have to understand,” Mr. Dominguez said. — Reicelene Joy N. Ignacio

Invitations issued to bid for last rail deals in Malolos-Clark line

THE Department of Transportation (DoTr) is seeking bidders for the remaining components of the Malolos-Clark railway, which makes up part of the P777.55-billion North-South Commuter Railway (NSCR) project.

The DoTr posted two invitations to bid in a newspaper Sunday: two contracts to build an underground station and a depot for the Malolos-Clark railway; and one contract to build a station for the train line’s 1.9-kilometer extension to Blumentritt.

The auction for the two remaining contracts of the 51.2-kilometer Malolos-Clark railway cover Package CP N-04, or the construction of the railway viaduct, a steel bridge and underground station at the Clark International Airport; and Package CP N-05, or the construction of its depot.

“The Bidding Documents have been prepared separately for each and shall be bid as separate contracts. However, if the bidder wishes to propose a multi-package discount, he may propose/offer a discount for the combination of the two packages,” the DoTr said in the invitation.

A pre-bid conference will be held for this auction on May 30, and the deadline of submission of bids is scheduled on Aug. 13.

For the Blumentritt extension auction, the contract is for Package CP S-01, or the construction of 1.12-kilometer railway viaduct and elevated station at Blumentritt. The pre-bid conference will be on June 3, and the deadline for submission of bids on Aug. 8.

The Malolos-Clark railway is a $2.75-billion project funded by a loan from the Asian Development Bank (ADB). The bidding for the first three contracts of the main line was started early this year, with 21 companies from seven ADB member countries were reported to have shown interest in the project.

The Malolos-Clark railway, alternatively referred to as the Philippine National Railway (PNR) Clark Phase 2, forms part of the 147-kilometer NSCR project, the other segments being the 56-kilometer line from Calamba to Tutuban; and the 38-kilometer line from Tutuban to Malolos, or PNR Clark Phase 1.

The whole NSCR project is to be financed by loans from the ADB and the Japan International Cooperation Agency (JICA).

Construction of a portion of the Tutuban-Malolos railway will start today, after the signing of contract to the tandem of DMCI Holdings, Inc. and Japanese firm Taisei Corp.

The other portion of the Tutuban-Malolos train line started construction in February, having been awarded to Sumitomo Mitsui Construction Co., Ltd. — Denise A. Valdez

Davao designers to bring Mindanao indigenous clothing to London’s Victoria and Albert Museum

By Maya M. Padillo
Correspondent

DAVAO CITY — The Davao Fashion Design Council (DFDC) has been invited to supply traditional pieces by Mindanao’s indigenous groups to the Victoria and Albert Museum (V&A) in London, home of one of the largest collections of art and design pieces.

DFDC President Dodjie L. Batu said they were contacted by the British Council about adding to the V&A’s Philippine creations, which include a terno by designer Salvacion Lim “Slim” Higgins.

“Considering that this is the biggest museum in London, we are really grateful that the DFDC will be able to showcase Davao Region,” Mr. Batu said in an interview.

Davao, specifically the regional center Davao City, is home to 11 indigenous peoples (IPs) that come from different parts of Mindanao.

Mr. Batu said the organization is now working with different local government units to identify which tribes will be featured and avoid duplication of designs.

The DFDC is planning to bring the pieces by September, during which it is also hoping to stage a fashion show for the Filipino community in London.

In the meantime, the DFDC is holding the annual Fashion Weekend Davao on May 24 to 26 at the Ayala Abreeza Mall.

This year, corresponding with the National Heritage celebration, FWD will highlight the value of diversity.

“This is one opportunity to connect Davao and appreciate that we have rich products and designs. We have this collaboration with IP communities and designers and this is the best opportunity for Davao to have a glimpse of what we’ve been bringing out from the city,” said Emi Alexander L. Englis, DFDC secretary.

Ruby B. Ochoa, Abreeza Mall marketing manager, said the partnership with DFDC is part of the company’s support for local crafts and culture.

“As a mall in Davao, we would like to give an opportunity to be the venue to make their designs accessible… if you are exposed here it is easier for you to introduce your products,” Ms. Ochoa said.

This year’s FWD will again have the “Stellar: Mindanao Heritage Fashion Designers Competition,” which puts the spotlight on designer-entrepreneur start-ups.

Wilson N. Limon, Jr., the first winner of the Stellar Young Designers Competition in 2016, said the competition continues to serve as a platform for indigenous communities and their artisans, along with the new generation of designers, in rediscovering the potential of mainstreaming their material culture and traditions.

“With Stellar… they will showcase ready-to-wear garments,” Mr. Limon said, adding that winning the competition opened opportunities for him, including participation in the Manila FAME and connecting to the market in the capital.

40% foreign-owned builders are now eligible for infrastructure projects

THE Government Procurement Policy Board (GPPB) has approved a resolution raising the foreign equity requirement for infrastructure projects to 40% from the current 25%.

Under Resolution No. 06-2019, the GPPB adopted Executive Order No. 65 S. 2018, which provided that contractors with 40% foreign equity may be awarded contracts for the construction and repair of locally funded public works.

The Office of the Deputy Executive Secretary for General Administration (ODESGA) said that the resolution, dated March 8, intends to increase the foreign equity cap to “ease restrictions on foreign participation in certain investment areas or activities.”

President Rodrigo R. Duterte on Oct. 2018 issued EO No. 65, promulgating the 11th Foreign Investment Negative List (FINL), which identifies industries reserved for Filipino-owned companies and those open to foreign entities.

The Resolution amends Republic Act No. 9184, or the “Government Procurement Reform Act,” which required partnerships, corporations or joint ventures, engaged in infrastructure projects to at least have a 75% domestic interest, outstanding capital stock or ownership.

The 75% threshold was also contained in the 79-year-old Commonwealth Act No. 541, which provides that infrastructure contracts should be awarded to domestic entities.

In particular, the Resolution amends the 2016 revised implementing rules and regulation of RA 9184 by lowering the required Filipino ownership to 60% from the current 75%.

Sections 23.4.2.1 (b), (c), and (e) will now allow partnerships, corporations and joint ventures “(in) which at least 60%” of the interest or outstanding capital stock belongs to citizens of the Philippines.

It provided also that contractors with more than 40% ownership may still be awarded projects in certain cases. Section 23.4.2.1 (e) reads in part that joint ventures in which “Filipino ownership or interest is less than 60% may be eligible where the structures to be build require application of techniques and/or technologies which are not adequately possessed by a person/entity” owned by Filipinos. — Charmaine A. Tadalan

Risk and cybersecurity for critical infrastructure

When we talk about cybersecurity, we usually think of information technology systems that manage and access data. But there’s another side of technology that is often overlooked by enterprise security processes — the industrial control systems that handle physical processes through monitoring or direct control, such as valves, pumps and similar systems that have a physical “switching” function. The reason for this is that most of these systems have traditionally been isolated from corporate information networks, operated separately as they have functions outside of processing data — such as regulating power or water flow for utilities companies, the control network of a train system, or medical scanning equipment in a health care entity.

However, as business operations and processes become more complex and data-driven, there has been an increasing need to connect industrial control systems to corporate information networks in order to provide access to vital or relevant information. One example is how power companies are transitioning to digital metering to promote more accurate power quality monitoring and reporting. These systems will need to be connected to the power company’s data systems to link to customer data and information.

Because of this growing interdependency between IT systems and industrial control systems, businesses will need to revisit how they understand cybersecurity within these types of operational technologies. The government has recognized this growing problem and in 2017, through a Department of Information and Communications Technology memo, introduced guidance on how to secure “critical infrastructure” i.e. banking and finance, power and utilities, transportation, health care, telecommunications, and similar industries that are vital to public health, safety or well-being.

Considering that these systems are linked to real physical systems, organizations will need to find ways to seamlessly integrate these systems while ensuring physical and logical security.

INTERCONNECTION CHALLENGES
The rapid deployment of digital technologies and web-enabled devices brings many advantages, but also increases cybersecurity risks. Because industrial control systems are increasingly being linked to broader IT systems, cyber attacks have more potential to breach customer and employee privacy and incur regulatory action. This can even disrupt critical infrastructure operations and put lives at risk. Every new device connected is one more device that can be compromised by a potential attacker.

In 2017, WannaCry ransomware became a wakeup call when it hit critical infrastructure, impacting over 10,000 organizations in over 150 countries, including those in the health care industry like the UK’s National Health Service. Although there is no evidence that any patients died directly from the attack, thousands of hospital computers were made unavailable, forcing doctors to physically transport lab results by hand and cancel at least 20,000 patient appointments.

In the same year, the NotPetya ransomware attack struck at numerous companies including Maersk and Mondelez, which cost them an estimated $300 million and $100 million, respectively. Overall, the attack did an estimated $10 billion in total damage. Attacks can also come from unexpected directions, such as the instance when US retailer chain Target was hacked through its heating, ventilation, and air-conditioning (HVAC) systems.

Companies that are interconnecting industrial control systems need to understand and manage these threats as not just a significant risk, but potentially a public safety concern. Industrial control systems will now need to be integrated into overall corporate IT and risk management, instead of being managed in silos.

In this broader risk landscape, companies need to consider that:

• A successful attack is inevitable — it is just a matter of when and how much. Organizations get lulled into thinking that they can deploy enough solutions or spend enough money to protect themselves. Organizations will have to live with managing the risk, and not trying to fully eliminate it. Knowing how to react and having the resilience to withstand a cyber attack is the best strategy.

• Interconnection will happen whether organizations like it or not. Vendors recognize that interconnectivity for industrial systems is a wave they have to ride and features for such are already being embedded in the systems that organizations are purchasing. It must be recognized that these features are present and have to be addressed from a policy level.

WHAT ENTERPRISES CAN DO TO HELP PREEMPT CYBER ATTACKS
There are some actions that companies can take to help manage their risks in the face of today’s emerging cybersecurity threats. In the short term, companies should ensure that their security monitoring programs cover everything that it needs to cover. Most security monitoring purchases are limited to corporate information systems. Boards should ask their security departments whether their companies’ current attack detection capabilities extend to industrial control systems.

Since interconnectivity is inevitable, organizations have to extend cybersecurity practices and adopt them more diligently when it comes to industrial control systems. Such practices include implementing standard security baselines, supported by effective incident response plans.

LOOKING AHEAD
Enterprises identified as part of the country’s critical infrastructure need to take steps to “future-proof” their business. This includes developing more agile and resilient responses to the disruptions being brought about by technology, evolving regulations and compliance challenges across their industry. Organizations within the scope of critical infrastructure need to accept that regulation over cybersecurity controls and breach reporting will become part of their businesses. Investing in cybersecurity systems needs to be considered as part of the cost of doing business.

On the other side of the coin, investment in cybersecurity is an expense that most organizations will not be able to recover directly through traditional return-on-investment models. This is why governments should consider awarding tangible incentives to encourage cybersecurity spending and not just award beyond mere seal of approval from government agencies. However, given the significant risks and threats posed by cyber attacks, can any company actually afford not to invest in cybersecurity?

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of EY or SGV & Co.

 

Carlo Kristle G. Dimarucut is an Advisory Senior Director of SGV & Co.

Duterte mum on hospitalization rumors

By Arjay L. Balinbin
Reporter

PRESIDENT Rodrigo R. Duterte on Sunday would not confirm or deny rumors that he was confined at the Cardinal Santos Medical Center in San Juan City over the weekend.

“The President is in his residence at the Palace signing papers. I just talked to him, he is neither confirming nor denying that he went to the hospital, Presidential Spokesperson Salvador S. Panelo said in a statement.”

Mr. Panelo also said, nevertheless: “There is no truth to the rumor circulating that President Rodrigo Roa Duterte is confined in Cardinal Santos Medical Center in San Juan.”

For his part, senator-elect and presidential special assistant Christopher Lawrence T. Go forwarded to reporters via Viber four photos showing the President reading the newspapers at the Bahay ng Pagbabago (formerly Bahay Pangarap) in the Presidential Security Group compound across the Pasig River and Malacañang.

And Cielito “Honeylet” S. Avanceña, Mr. Duterte’s common-law wife, told reporters in a phone message: “I dare tell you guys to check all the rooms in Cardinal.”

Mr.Duterte’s health has been subject to public speculation since last year. On July 22, before his third State of the Nation Address, the President was reported visiting a hospital. But the Palace said it was only for a regular medical examination.

In February this year, rumors about the President’s death circulated online. “For those who believe in the news that I passed away, then I request of you, please pray for me, for the eternal repose of my soul. Thank you,” he said in a video.

Mr. Panelo has said the Palace is not obliged to release a medical bulletin because the President, as the Constitution requires, has “no serious illness.”

In his speech in Pasay City last month, Mr. Duterte admitted that he gets routine blood tests.

“I’m 74 years old, I do not want to die of TB. I do not want to die of lung cancer. As a matter of fact, I got — I acquired Buerger’s disease from smoking. That is why my doctor is here. She gets my blood. Was it… Ah see? Almost every other day,” he told his audience at the opening ceremony of the 7th Union Asia-Pacific Regional Conference in Pasay City on April 23.

“It’s about Buerger’s disease. But I have stopped smoking. When I became mayor in Davao City, I stopped smoking and said it cannot be done, because Filipinos, you know…. And I said, if I catch you smoking in public, you will just have to eat your cigarette. Choose. I’ll blow your balls out or you eat your cigarette,” he said.

LRTA to investigate train collision

By Denise A. Valdez
Reporter

THE Light Rail Transit Authority (LRTA) said it is forming a team to investigate the collision on Saturday evening of two trains on the Light Rail Transit-Line 2 (LRT-2), an accident in which more than 30 were injured.

In a joint statement with the Department of Transportation (DoTr) Sunday, the LRTA said Administrator Reynaldo I. Berroya has ordered the formation of a fact-finding committee that will study the cause of the collision.

“The (DoTr) and (LRTA) offer our sincerest apologies to all passengers affected by (Saturday’s) incident at the LRT-2 between Cubao and Anonas Stations… The DoTr and LRTA assure the public that we are taking this incident very seriously, and are exerting all efforts to prevent this kind of incident from happening again,” the statement went.

A total of 30 passengers and four LRT-2 personnel were injured after a Santolan Station-bound train collided with a parked train on the same line between Cubao and Anonas Stations.

DoTr Assistant Secretary for Communications Goddes Hope O. Libiran explained a defective train had been parked in a pocket track — or the portion of the LRT-2 railway at the side or at the center near a station — since Saturday afternoon, when it suddenly moved to enter the eastbound track going to Cubao.

LRTA Communications Head Evelyn Janeo said in a phone call the driver inside the defective train had to jump out as the train was “beyond his control.”

When the train moving on the eastbound track, the driver of the approaching train which was carrying passengers was advised to go on full stop. But because the defective train was still moving, it eventually collided with the approaching train. “For unknown reasons nag-move yung train, dire-diretso siya hanggang sa mabangga niya ‘yung kasalubong niya, which is unusual din,” Ms. Janeo said, explaining that accident.

She said the fact-finding committee will release a report at the soonest time possible. Meanwhile, LRT-2 operations are back to normal.

The LRT-2 has eight trains running daily, including the two that crashed Saturday. The LRTA is targeting their repair as of this weekend to bring them back to operation within the week.

UNICEF to Congress: Support Juvenile Justice and Welfare Act

THE United Nations Children’s Fund (UNICEF) in a statement on Sunday called on Congress to support the full implementation of the Juvenile Justice and Welfare Act, amid the Senate’s planned debate Monday to lower the minimum age of criminal responsibility.

“Do not lower the minimum age of criminal responsibility. Congress must support the full implementation of the Juvenile Justice and Welfare Act,” UNICEF said in a statement.

This comes ahead of scheduled plenary debates on Senate Bill No. 2198, which proposes to lower the minimum age of criminal responsibility to 12 years old from the current 15 years old.

The Senate Bill is currently pending second reading and is among the priorities of the chamber during the three-week resumption.

The House of Representatives, for its part, approved on final reading its counterpart measure, House Bill No. 8858, last January.

The 17th Congress is set to resume sessions on Monday after a three-month break during the election campaign. It is set to officially close on June 7.

The UNICEF cited, among other laws, RA No. 9344 or the Juvenile Justice and Welfare Act of 2006, as being consistent with the principles of the United Nations Convention on the Rights of the Child.

It also argued that children in conflict with the law must be rehabilitated and reintegrated to society, instead of subjecting them to penalties and detention.

“The law makes it clear — without a doubt — that there is a need for a separate juvenile justice system where detention is the last resort,” UNICEF also said.

“The proper implementation of the (the Juvenile Justice and Welfare Act) has led to many success stories proving that children in conflict with the law can be rehabilitated without…imprisonment or detention.” — Charmaine A. Tadalan

Senate to tackle priority bills as 17th Congress resumes in 3-week schedule

THE House of Representatives is set to discuss pending local and national bills in the next three weeks as regular sessions resume Monday.

“All pending bills for approval, either local bills or bills of national significance, (are) a priority. And action will depend on the presence of a quorum,” said Majority Leader Fredenil H. Castro of the 2nd district of Capiz in a phone message.

In her phone message when sought for comment, House Ways and Means committee chairperson and Nueva Ecija (1st district) Rep. Estrellita B. Suansing said, “We don’t have pending…priority bills. We are waiting for the Bicam (after) the bills…passed and pending in the Senate.”

Senators on Monday will hold a caucus to discuss the chamber’s “legislative priority,” Senate President Vicente C. Sotto III said in a phone message.

Mr. Sotto said among the priority bills are amendments to the Public Service Act, as being monitored by businessmen, and to the Human Security Act as well as the proposed Medical Scholarship Act.

Senate Bill No. 1754 will amend Commonwealth Act No. 146 or the 82-year-old Public Service Act, by providing a clearer definition of public services, which had been used interchangeably with public utilities such as electricity and waterworks.

Also among the priorities are the Budget Reform Act, Rightsizing the National Government Act, the Salary Standardization Law, the bill establishing the Mindanao Railways Authority, and Reformation of Children in Conflict with the Law, which are up for second reading. — Vince Angelo C. Ferreras and Charmaine A. Tadalan

Top 10 senators may be proclaimed ahead of ‘crucial’ 11th-12th winners

THE PROCLAMATION of the top 10 senators in the May 13 elections may come ahead of the “crucial” 11th and 12th winners, but the Commission on Elections (Comelec) has declined to commit to a specific date.

Comelec Education and Information Director Frances A. Arabe told reporters on Sunday that the poll body cannot give the exact date with still a few Certificates of Canvass (COCs) to be delivered and tallied.

Party-list winners are also awaiting proclamation.

”This week…as long as we get the COCs we are waiting for,” Ms. Arabe said.

She added that a partial proclamation is also possible, depending on the voter turnout of the COCs they will be canvassing, even if the National Board of Canvassers (NBOC) will not be tallying all the remaining COCs.

“Kung kaya mag-partial, mag-pa-partial muna kami (If we can do partial, we will do it partially first),” she said.

For his part, Election lawyer George Erwin M. Garcia said the Comelec can do the partial proclamation, noting that this has been a common practice.

“Sa nakaraan, ‘yun talaga ginagawa ng Comelec (In the past, Comelec has been doing that),” he said, adding that the top nine to 10 could be comfortably proclaimed.

“(The) 11th or 12th, (that’s) crucial,” he said.

As of 8 p.m. May 18, with 158 of 167 COCs canvassed, the top 10 senators are: Cynthia Villar, Grace Poe-Llamanzares, Bong Go, Pia Cayetano, Bato Dela Rosa, Sonny Angara, Lito Lapid, Imee Marcos, Francis Tolentino, and Koko Pimentel.

Ranking 11th and 12th with their corresponding votes are: Bong Revilla — 13,873,309, and Nancy Binay — 13,784,692.

Trailing them on the 13th and 14th spots are: JV Ejercito — 13,677,424, and Bam Aquino — 13,675,820.

As of Sunday afternoon, 161 out of 167 COCs have already been included in the canvass by the NBOC.

COCs that have yet to be canvassed are those from Japan, Abuja (Nigeria), Washington DC (United States of America), Saudi Arabia, Zamboanga Del Sur, and Isabela.

Isabela will hold a reelection in one of its towns, Jones, as some vote counting machines in the area were burnt.

BMP PETITION
In another development, Bukluran ng Manggagawang Pilipino (BMP) chair Leody De Guzman filed a motion to suspend the ongoing canvassing.

In his Manifestation and Urgent Motion dated May 15, Mr. De Guzman said he is calling on the NBOC to “Cancel and/or suspend proceedings for the canvassing of votes for the senators and party-list representatives until and after the pending incidents, raised in this motion have already been resolved.”

Mr. De Guzman said the Comelec should first investigate the seven-hour data glitch of the transparency servers after the elections.

Ms. Arabe said they have received the motion and other similar petitions, which are now under review. — Gillian M. Cortez

Gov’t to resume federalism campaign in next Congress

THE GOVERNMENT is readying to resume its nationwide advocacy campaign on federalism by July when the 18th Congress opens its first regular session, according to Interior Undersecretary and Spokesperson Jonathan E. Malaya. In a phone message to BusinessWorld last Thursday, Mr. Malaya said when asked for an update regarding the campaign: “The IATF (Inter-Agency Task Force on Federalism) plans to resume the advocacy campaign as soon as the new Congress opens its regular session. We are currently meeting on how to scale up the campaign.” President Rodrigo R. Duterte created the IATF in October last year through Memorandum Circular No. 52 to integrate and coordinate efforts for the government’s campaign on federalism and constitutional reform. Malacañang said last Tuesday that a shift to a federal form of government is among its priorities for the 18th Congress that opens its first regular session on July 22. Mr. Malaya said at a forum last month that the IATF has 10 clusters or committees that undertake a series of consultations with members of the consultative committee (ConCom), members of the federalism study group, other federalism experts and advocates, and other stakeholders. The ConCom was formed by the President to review the 1987 Constitution and draft a federal constitution. The clusters are expected to present their reports, including their draft provisions, to the IATF in June for consideration. The interagency body will then submit its consolidated reports to the Office of the President by the third week of June. — Arjay L. Balinbin

Only 731 occupied out of 5,272 houses built for typhoon Yolanda victims in Cebu

MORE THAN five years after super typhoon Yolanda (international name: Haiyan) struck the country, with the Visayas islands the most affected, only 731 out of 5,272 housing units built in Cebu are occupied, according to Cabinet Secretary Karlo B. Nograles. The completed houses are in the northern municipalities of Daan Bantayan, Bantayan, Sta. Fe, Medellin, San Remegio, Tabogon, and Madridejos. “Our challenge therefore is to find out why this is so and come up with viable solutions in completing the housing construction and addressing the low occupancy issue,” said Mr. Nograles who was in Cebu last week for a Cabinet Assistance System meeting with mayors of Yolanda-affected areas in Cebu. Under the rehabilitation program, a total of 22,423 houses are supposed to be built for the typhoon victims in the province. Mr. Nograles called on local government units to reactivate and strengthen the Local Inter-Agency Committee (LIAC) to address the low completion rate of construction and the occupancy issues. “The LIACs play a crucial role in addressing the gaps in the Yolanda housing program so we can fully bring Yolanda rehabilitation and recovery to a successful conclusion,” he said. — The Freeman

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