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PSEi back at 6,000 level on positive sentiment

By Denise A. Valdez, Reporter

THE MAIN INDEX returned to the 6,000 level on Tuesday as investors sustained their optimism over the Philippine economy’s revival.

The benchmark Philippine Stock Exchange index (PSEi) closed yesterday’s trading session at 6,025.17, up 95 points or 1.60% from a day ago. The broader all shares index gained 41.50 points or 1.18% to close at 3,551.72.

“The PSEi broke through the 6,000 level after retracing modest losses earlier in the session, as the potential for an economic rebound overshadowed strife in regional economies that has sparked chaos and curfews especially in the United States,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a mobile message.

The PSEi’s finish yesterday is its best since March when the world was at the height of announcing lockdowns due to the coronavirus disease 2019 (COVID-19) pandemic. From ending at 6,353.26 on March 11, the main index fell to 5,736.27 on March 12 and hit a historic low of 4,623.42 on March 19.

With the Philippine government continuing to favor a relaxed lockdown to support the economy’s recovery, investors flocked to the local bourse with optimism, opposite of the distress in other countries amid the lingering effects of the pandemic.

“Investors also monitored Sino-American trade tensions and efforts in the US, and much of the world, to overcome the COVID-19 pandemic… The (Chinese) government told major state-run agricultural companies to pause purchases of some goods including soybeans as it evaluates the escalation of tensions with the US over Hong Kong,” Mr. Limlingan said.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan noted the same push from foreign investors. After nearly 50 days of recording net outflows, foreign investors have been net buyers for the third straight day on Tuesday, increasing net inflows to P1.13 billion from P268.58 million a day ago.

“With the Philippines’ fundamentals intact, it’s expected to be among the economies around the world to be resilient under these circumstances and make an economic rebound thereafter,” Mr. Pangan said via text.

All sectoral indices closed the session with gains: holding firms rose 141.38 points or 2.34% to 6,161.15; property improved 49.95 points or 1.68% to 3,022.73; industrials picked up 94.31 points or 1.25% to 7,590.34; financials added 13.18 points or 1.1% to 1,205.48; mining and oil increased 29.14 points or 0.65% to 4,466.71; and services climbed 6.53 points or 0.48% to 1,359.64.

Value turnover grew to P7.29 billion on Tuesday from P6.98 billion the previous day. Some 1.01 billion issues switched hands.

Advancers outnumbered decliners, 117 against 61, while 43 names ended unchanged.

Domestic flights allowed under eased lockdown

By Gillian M. Cortez and Jenina P. Ibanez, Reporters

DOMESTIC flights between Philippine provinces under a relaxed lockdown may resume, the government said on Tuesday as airlines prepare to fly again after a global coronavirus pandemic halted their operations more than two months ago.

An inter-agency task force made up of Cabinet secretaries approved commercial flights between regions under a general community quarantine with conditions, Transportation Secretary Arthur Tugade told a news briefing.

“Flights for leisure are prohibited,” he said in Filipino. The flights must also be approved by local governments, he added.

Meanwhile, flag carrier Philippine Airlines (PAL) and rival Cebu Pacific will resume operations with limited capacity on Wednesday. AirAsia in a statement said it would resume flights on June 5.

PAL would offer limited domestic flights, spokeswoman Cielo C. Villaluna said at a separate briefing.

“The Inter-Agency Task Force yesterday allowed us to fly to Cebu, Davao, Dumaguete and Cagayan de Oro,” she said in Filipino.

Cebu Pacific spokeswoman Charo L. Logamon urged travelers to arrive at airports earlier because health checks mean it would take longer to process passengers.

“Because we have physical distancing, check-in and boarding will take longer so passengers must come earlier,” she said at the same briefing. Domestic travelers should be at the airport at least three hours before their flights, she added.

The Department of Health reported 359 new infections yesterday, bringing the total to 18,997.

Of the new cases, 176 involved test results released in the past three days, while 184 were released four days ago or more, it said in a bulletin.

The death toll rose to 966 after six more patients died. Eighty-four more patients have gotten well, bringing the total recoveries to 4,063.

Meanwhile, the Department of Tourism (DoT) said it would prioritize promotion of domestic land travel as it tries to recover losses from a 62% decline in foreign tourist arrivals.

International arrivals plunged to 1.3 million from January to April from 3.4 million a year earlier, Tourism Secretary Bernadette Romulo-Puyat said at a separate online news briefing yesterday.

Tourist shops with a certification from the agency may operate in places under a general community quarantine. Hotels and in-house food and take-out operations must get the permit.

Mr. Puyat said local governments were not yet ready to accept tourists. “Some local government units are still hesitant to open,” she said. “We still have to restore the confidence of the tourists.”

The Tourism department said it was in talks with local governments in La Union, Baler, Pampanga and Batangas to boost land travel.

DoT and the Trade department have adopted the so-called Safe Pass digital solution that helps businesses plan spaces for physical distancing, enforce health protocols and manage contact tracing.

The Tourism department has helped almost 37,000 stranded foreign and domestic tourists with sweeper and commercial flights and accommodations, it said.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the lockdown for the island twice and thrice for Manila and nearby cities where COVID-19 infections have been mostly concentrated. The lockdown in the capital region was relaxed starting June 1. — with Vann Marlo M. Villegas

Philippines rethinks military break-off with of US

PHILIPPINE President Rodrigo R. Duterte has suspended the termination of a military agreement with the United States on the deployment of troops for war games “in light of political and other developments in the region,” according to its Department of Foreign Affairs (DFA).

The suspension of the 21-year-old visiting forces agreement (VFA) is effective for half a year and may be extended by another six months, DFA told the US Embassy in a letter dated June 1.

The agency said it “avails itself of this opportunity to renew to the embassy of the United States of America the assurance of its highest consideration,” according to the letter.

“The United States welcomes the Philippine government’s decision,” the US Embassy said in an e-mailed statement. “Our long-standing alliance has benefited both countries, and we look forward to continued close security and defense cooperation with the Philippines.”

The country’s diplomats earlier advised Mr. Duterte about the risks of ending the military pact. The tough-talking Philippine leader on Feb. 11 announced his decision to end the deal after the US visa of Senator Ronald M. de la Rosa, his former police chief, was canceled.

Lawmakers earlier asked the Supreme Court to issue jurisprudence on whether the President can end a treaty without Senate concurrence.

Mr. Duterte’s decision, sparked by the revocation of a US visa held by a former police chief who led his bloody war on drugs, was supposed to take effect in August.

Mr. Duterte’s decision could have complicated US military interests in the broader Asia-Pacific region as China’s ambitions rise.

Some Filipino senators have sought to block the move, arguing Mr. Duterte had no right to unilaterally scrap international pacts the country’s Senate had ratified.

The VFA is important to the overall US-Philippine alliance and sets out rules for US soldiers operating in the Philippines, a former US colony.

Washington has called the relationship “ironclad,” despite Duterte’s complaints that include allegations of US hypocrisy and ill treatment.

Ending the VFA complicates Washington’s efforts to maintain an Asia-Pacific troop presence amid friction over the presence of US personnel in Japan and South Korea and security concerns about China and North Korea.

Some lawmakers in the Philippines are concerned that without the VFA, two other pacts that make up the long-standing US alliance with Manila would be irrelevant, namely the 2014 Enhanced Defense Cooperation Agreement made under the Obama administration, and a 1951 Mutual Defence Treaty.

Salvador S. Panelo, Mr. Duterte’s former spokesman, had called the VFA a one-sided deal that only benefits the US. — Norman P. Aquino and Charmaine A. Tadalan

OFWs coming home fewer than originally estimated — DoLE

MORE than 16,000 overseas Filipino workers (OFW) are expected to come home this month amid a coronavirus pandemic, less than half of the original estimate after many of them failed to get cleared, according to the Labor department.

Labor Secretary Silvestre H. Bello III on Friday said 42,000 Filipino workers from overseas were expected to return. But many of these Filipino workers had not completed their exit requirements and clearances, he told a news briefing on Tuesday.

Mr. Bello called on the Transportation and Tourism departments to help provide vehicles and lodging for the 16,679 returning Filipino workers.

Returning workers must be tested for the COVID-19 virus and undergo a 14-day quarantine.

More than 300,000 overseas Filipino workers have been displaced by a coronavirus pandemic that has sickened 6.4 million and killed about 378,000 people globally, Mr. Bello said.

He said 343,551 people have been affected by the global health crisis, with 2,390 of them testing positive for the virus. Seventy-two overseas Filipino have died from the virus so far, he added.

More than 200,000 mostly in the US and Europe don’t want to come home, Mr. Bello said. — Gillian M. Cortez

High tribunal asked to void Luzon lockdown

A LAWYER has asked the Supreme Court to annul a law giving President Rodrigo R. Duterte special powers to fight a coronavirus pandemic, and a couple of proclamations declaring a public health emergency and imposing a lockdown on the entire Luzon island.

In a nine-page pleading, lawyer Jaime O. Ibañez said the law, which took effect on March 24, gave the President excessive powers in responding to the health crisis.

He also accused Mr. Duterte of usurping legislative power when he locked down Luzon in mid-March by suspending work, classes and public transportation to contain the pandemic.

The lockdown in much of the country including Manila, the capital and nearby cities has since been relaxed, with some businesses allowed to reopen with limited workforce.

“The President is merely tasked to execute the law,” Mr. Ibañez said. “Hence it is an undue delegation of legislative power and usurpation of the same when the President issued Proclamation Nos. 929 and 922,” he added.

Proclamation 929 placed the country under state of calamity and locked down Luzon, while Proclamation 922 declared a state of public health emergency.

The plaintiff also asked the tribunal to stop an inter-agency task made up of Cabinet secretaries from enforcing community quarantines “for being invalid delegated legislative authority.”

Mr. Ibañez said the enhanced community quarantine had “wrought havoc on the socioeconomic equilibrium,” forcing millions of Filipinos to starve and lose their jobs.

He also said that the guidelines violated the equal protection clause when everybody was quarantined, including healthy people. The quarantine violated people’s right to liberty and property, he added.

“Putting this country into community quarantine poses a continuing threat to one’s right to life (including the right to work), to liberty and to property,” according to a copy of the petition. — Vann Marlo M. Villegas

Senate says anti-terror bill ‘good as passed’ but House still deliberating

THE proposed law that expands the definition of terrorist acts is as good as passed after President Rodrigo R. Duterte certified the bill as an urgent measure, senators said on Tuesday.

The bill was approved by the Senate in February and is pending second reading at the House of Representatives.

“It’s as good as passed,” Senate President Vicente C. Sotto III told reporters over phone message on Tuesday.

The President’s certification will allow the House to dispense with the three-day interval in passing bills on second and third reading.

House representatives, however, were still steeped in plenary debate as of Tuesday evening for the second reading.

Congress’ first regular session closes on June 3. It will reopen on July 27, with the President delivering his 5th State of the Nation Address.

“Once the House of Representatives approves the adopted Senate version of the Anti-Terror bill on third and final reading, they will transmit it to us for enrollment and subsequent submission to the President,” Senator Panfilo M. Lacson said in a statement.

OPPOSITION
Albay Rep. Edcel C. Lagman warned that the expanded definition of terrorism encompasses perceived and suspected terror acts, which may include political dissent.

“Redefining the crime of terrorism by removing the inculpatory purpose of terrorism ‘to coerce the government to give in to an unlawful demand,’ thus making prosecution and conviction easier,” he said in a statement.

The proposed law will also allow the military to access data and information as well as intercept private communications of suspects under surveillance and detain them for 14 days without warrant.

The National Union of Peoples’ Lawyers also reiterated its opposition and called on lawmakers to stop the bill’s passage saying it will serve only the “climate of impunity,” validate attacks against activists and ordinary citizens.

In a statement, the lawyers’ group said the bill “unduly expands” the definition of terrorism,” and potentially criminalizes as “terrorist” the exercises of free speech.

“This proposed law, we pointed out, would undermine our democracy and either threaten, restrain or discourage the people’s right to organize, criticize the government, protest and demand for a redress of their grievances,” the group said.

“The bill, should it become law, will only serve to worsen the climate of impunity that has made the Philippines fertile ground for extra-judicial killings, illegal arrests, and crackdowns against activists and progressive organizations and even ordinary citizens,” they said.

The Concerned Lawyers for Civil Liberties also said the bill will be used by the administration “to eliminate dissent and opposition, at whatever cost and manner,” adding that it contains unconstitutional provisions.

Mr. Lacson, on the other hand, said the bill has enough safeguards for human rights.

The bill, as passed by the Senate, expands the coverage of terror acts to include attacks that cause death or serious injury, extensive damage to property and manufacture, possession, acquisition, transport and supply of weapons or explosives.

The law only penalizes the commission of the actual terrorism, conspiracy to commit terrorism, being an accomplice and accessory to the crime.

The presidential palace also defended the bill saying it is “not draconian” and is patterned after legislation in other countries.

“Wala naman draconian na provision diyan, lahat po ng provision diyan ay ibinase rin natin sa mga batas na mga iba’t ibang bansa na mas epektibo po ang kanilang pagtrato dito sa mga terorista (There are no draconian provisions there, all the provisions there are based on laws in various countries with more effective ways of dealing with terrorists),” Palace Spokesperson Harry L. Roque said in a briefing on Tuesday.

He also said the administration won’t intervene with lawmakers on the bill’s passage.–Charmaine A. Tadalan, Genshen L. Espedido, Vann Marlo M. Villegas and Gillian M. Cortez

#COVID-19 Regional Updates (06/02/20)

Senators demand clearer public transport plan as lockdown eases

SENATORS on Tuesday asked the Department of Transportation (DoTr) to provide clearer plans for the public after the easing of quarantine restrictions on June 1 left commuters in the capital in a crisis. Senator Ma. Lourdes Nancy S. Binay slammed the DoTr for failing to plan accordingly for the expected number of people reporting back to work. “DoTr knew that Metro Manila and the rest of the regions will soon be transitioning to the new normal. They knew that 30% of those in NCR (National Capital Region) will start going to work by June 1,” she said in a statement. She also hit the department for deploying a truck as free transport for commuters stuck on the road, which compromised health and distancing protocols. Senator Risa N. Hontiveros-Baraquel, for her part, recommended that the government adopt a service contracting program in partnership with the private transportation sector. “Wala ring magagawa ang pag-limit sa pasahero sa mga tren at bus, kung sa kalsada pa lang ay exposed na sila sa health risks habang sila ay nasa mahaba, dikit-dikit at matao na pila (Limiting passengers in trains and buses would be pointless if people are exposed to the risks while waiting on the road, or in line),” Ms. Baraquel pointed out. Under the service contracting scheme, the government will pay operators and drivers per kilometer of their routes to transport people. — Charmaine A. Tadalan

Davao Oriental hospital doctor positive for COVID-19; 58 nurses, medical staff quarantined

A DOCTOR at the Davao Oriental Provincial Medical Center is the latest coronavirus case in the province, and 58 of the hospital staff, mostly nurses, have been identified among his direct contacts and been placed under quarantine. In a statement, the provincial government said the 32-year old doctor for internal medicine was also rendering duty at a dialysis facility in Davao City. He has previously tested negative for the coronavirus disease 2019 (COVID-19) based on a May 14 result, but was subsequently subjected to another round of testing following protocols set by the province for all frontline workers. Apart from the medical staff under quarantine, seven patients who have received direct care from the doctor have also been isolated at the hospital. Contact tracing is ongoing for another seven of his patients who have been discharged. “(T)he contacts of the COVID-19 positive case will be swab tested between June 2-4, 2020, given that the seventh to tenth day from the last exposure is the ideal time to get more accurate results. However, those who are already exhibiting symptoms have to be swabbed immediately,” the provincial government said. The hospital has also undergone disinfection measures. Davao Oriental had three cases, all of whom recovered, until May 28. It recorded 12 new cases on May 29, with eight returning overseas workers and four locally-stranded residents.

BAGUIO
Baguio, meanwhile, reported on Tuesday that a nurse at the Baguio General Hospital and Medical Center tested positive for the disease, the city’s 35th active case. The 38-year old nurse is now at the hospital’s isolation facility and contact tracing as well as disinfection protocols are being undertaken, according to the city officials. Of the total confirmed cases, 29 have recovered. — MSJ

Nationwide round-up

Over P14B spent so far on medical supplies; actual testing still under 9,000 daily

THE government has so far spent over P14 billion in medical supplies to address the coronavirus disease 2019 (COVID-19) pandemic. Based on President Rodrigo R. Duterte’s 10th report to Congress submitted Monday, the Department of Health (DoH) used the fund on personal protective equipment, testing kits, and other medical equipment. “The DOH has procured 6,062,019 PPE sets for PhP12.1 billion… Nine different types of PCR test kits have also been procured for PhP1.6 billion with delivery expected by July 2020. Ten units of Automated Nuclelic Acid Extraction Machines have also been procured and awarded through the S-DBM for PhP400 million,” the administration reported. The Department of Science and Technology will also be producing 10,000 reusable masks a week, with a 50,000 target by the end of June. The report also indicated that there are already 43 accredited testing laboratories as of May 27, lower than the government’s target of 66 by end-May. A total of 315,363 tests have been conducted as of May 26, covering 289,732 people.

TESTING CAPACITY
Palace Spokesperson Harry L. Roque, in a briefing Tuesday, said daily testing capacity has reached 34,000, surpassing the initial goal of 30,000 by end-May.

However, actual daily tests conducted are averaging just between 8,000 to 9,000, according to the DoH. Health Undersecretary Mario Rosario S. Vergeire, in a separate briefing, said the laboratories are now recovering from operational as well as supply issues encountered the past weeks. “But hopefully dito sa pagpasok nitong mga dadating na araw, masa-stabilize na natin ang supplies, maraming tumutulong especially mga private (Hopefully in the coming days, we will stabilize our supplies and many are helping, including the private sector), we can be able to ramp up these capacities already,” she said in a virtual briefing. She noted that the laboratories in Bicol, the University of the Philippines-National Institute for Health, and the Lung Center of the Philippines suspended testing operations last week due to supply issues. Ms. Vergeire said there are now 49 licensed laboratories and pop-up labs are being set up. “So hopefully ito lahat ay makakatulong sa pagtaas ng capacity ng labs natin (all these will help increase the testing capacity of our laboratories),” she said. The DoH spokesperson also reported that testing backlogs are at 1,691 as of 6 p.m. Monday. — Gillian M. Cortez and Vann Marlo M. Villegas

DTI to review rules on purchase limits


AS the country eases lockdown restrictions, the Department of Trade and Industry (DTI) will review the imposition of purchase limits on certain products to prevent hoarding. In a Handa briefing on Tuesday, Trade Undersecretary Ruth B. Castelo said, “We have been receiving requests from the manufacturers and the retailers na i-lift ‘yung ating (to lift our) anti-hoarding and anti-panic buying circular.” The DTI released a memorandum on anti-hoarding and panic buying last March 19, a few days after President Rodrigo R. Duterte declared a strict lockdown in the entire Luzon island. The guidelines were issued following reports of people panic buying on basic goods and hygiene products. The DTI said hoarding goods will result in an artificial shortage. Ms. Castelo said supplies of these goods have become stable a few weeks into the lockdown. — Gillian M. Cortez

Gov’t still assessing when dine-in service will be allowed nationwide

THE presidential palace on Monday said it is still assessing when dine-in service in restaurants will be allowed to resume in parts of the country that are still under the general community quarantine category. Under the GCQ, restrictions have been eased with more industries allowed to reopen. The GCQ areas include Metro Manila and other major cities such as Cebu and Davao. “Naghihintay tayo kung kailan pwede magkaroon ng dine-in sa mga areas na ito (We are still waiting when dine-in will be allowed in these areas), Palace Spokesperson Harry L. Roque said. The government already released on Sunday protocols for dine-in services, which is allowed in most parts of the country under the “modified GCQ” policy. — Gillian M. Cortez

MWSS maintains water allocation until end-June

WATER ALLOCATION for Metro Manila households will remain at 48 cubic meters per second until the end of June, the Metropolitan Waterworks and Sewerage System announced Tuesday. In a statement, MWSS Administrator Emmanuel B. Salamat said they asked the National Water Resources Board to sustain the current allocation to ensure ample supply as sanitary measures are crucial to mitigate the spread of the coronavirus disease 2019. “The request to maintain allocation is also to sustain the current water system demands that are at an all-time high due to higher than normal temperatures for this time of year,” Mr. Salamat said. Last May 14, allocation was increased to 48 cms from 46 cms to reduce rotational service interruptions being implemented by the capital’s two distributors. “At 48 cms, almost 100% of customers in the East Zone enjoy 24/7 water supply. In the West Zone, 80-90% of customers have 24-hour supply, and daily rotational water service interruptions are isolated only during off-peak hours in ‘high demand’ and elevated areas,” the MWSS said. MWSS said the water level in Angat Dam, Metro Manila’s main source, is expected to remain sustainable based on projections by weather bureau PAGASA. — Revin Mikhael D. Ochave

Philguarantee targets 12,000 MSMEs for credit guarantees

STATE-RUN Philippine Guarantee Corp. (Philguarantee) hopes to provide 50% guarantee cover on loans taken out by at least 12,000 micro, small and medium enterprises (MSMEs) affected by the coronavirus crisis.

In a statement Tuesday, the Department of Finance (DoF) said the Philguarantee governing board has approved the credit guarantee scheme valued at around P120 billion, which will offer guarantees to encourage institutions to lend to small businesses seeking working capital.

Philguarantee will charge a 1% annual guarantee fee while waiving origination fees.

Eligible lenders include universal, commercial, thrift and rural banks as well as other financial institutions supervised by the central bank.

“The program is intended to support those businesses who are facing economic difficulties as a result of the crisis. The guarantee program will also complement access to lending as it encourages more banks to provide assistance loans to MSMEs,” Philguarantee President and CEO Alberto E. Pascual was quoted as saying in the statement.

Philguarantee also waived all penalties incurred between March 16 and May 31 related to its housing programs, which is expected to benefit over 28,000 clients.

“The various relief and guarantee support mechanisms instituted beginning March 16, 2020 remain available for the agricultural, housing and MSME clients, accounts and partner lending institutions,” Philguarantee said.

It also provided a two-month moratorium on monthly amortization payments for long- and short-term rentals as well as those covered by joint venture agreements. — Beatrice M. Laforga

Spike in urban poverty temporary, real problems are in countryside — NEDA

THE Increase in urban poverty as a result of the coronavirus disease 2019 (COVID-19) pandemic is not expected to last, but the countryside represents longer-term problems, National Economic and Development Authority (NEDA) Acting Secretary Karl Kendrick T. Chua said.

“While we may see a temporary increase in poverty in urban areas, we do not see it to be a prolonged problem. The bulk of poverty is elsewhere, in the farmlands, in the less-developed provinces… the areas that are hardly affected by the virus. Therefore, we do not see a significant effect because the majority of the areas where the poor are have not been affected as much,” he said during a virtual hearing of the House committee on sustainable development goals Tuesday.

Mr. Chua said that based on the survey NEDA conducted in the countryside, two thirds of farmers reported that they continue to plant and are able to sell, while the remaining one-third were unable to sell not because of the virus or the lockdown, but because gaps in the supply chain made it difficult to sell their produce.

According to the 2018 Family Income and Expenditure Survey, the poor population in the National Capital Region accounts for 1.8% of the total. This is significantly lower than the rest of Luzon with 30.1%, the Visayas with 23%, and Mindanao with 45.1%.

In its Addressing the Social and Economic Impact of the COVID-19 Pandemic report, NEDA said the impact of the crisis appears to involve a “class dimension.”

“At the onset, the upper- and middle-income classes were the ones directly infected, because they are the ones who travel or are acquainted with ones who have travelled. Currently, the impact on the lower-income classes is mainly through the response measures being undertaken,” it said.

Mr. Chua said the impact of the pandemic on the poor is reflected in the inflation rate.

“If we see inflation spiking significantly, that would show some effect on poverty or on food, and that is the most important for the poor (but) inflation has been very low and stable,” he said.

April inflation eased to 2.2%, against 2.5% in March, and 3% in April 2019, the Philippine Statistics Authority (PSA) reported. May inflation is expected to be released in the succeeding weeks.

Mr. Chua said that the government implemented the Social Amelioration Program under the Bayanihan to Heal As One Act or Republic Act 11469 to immediately cover the basic needs of the poor.

“The first thing we did in the Bayanihan (Act) is to provide the poorest 18 million families their P5,000 to P8,000 to fully cover their basic needs. That is really the amount for basic needs of the lowest three-fourths of the population,” he said.

Aside from the emergency subsidy program, Mr. Chua said the government is also exploring programs

allowing for voluntary reductions in wages, unemployment insurance, and a pension portability system.

“Over the medium term, what we would like is to push a policy wherein we protect employment, not necessarily the job because jobs can come and go. The crisis will affect the labor market, but if we ensure that workers can be employable immediately (through) skills retooling and other support, then that will actually help labor,” he said. — Genshen L. Espedido

Rent grace period set at 30 days after firms reopen

BUSINESSES have been granted a 30-day grace period on rent payments counting from the date businesses are permitted to operate, the Department of Trade and Industry (DTI) said.

In memorandum circular 20-29 signed on June 2, commercial lessees will start their 30-day grace period from the date their category of business was allowed to operate, whether or not the business has resumed operations.

Rent owed by businesses that are not yet allowed to operate is deferred by 30 days after the lockdown is lifted or after the date they are allowed to resume operations, whichever comes first.

These guidelines revise DTI’s April 4 circular granting a 30-day deferral from the last due date within the lockdown.

The businesses will not incur interest, penalties, or fees from deferred rent. The total rent that fell due within the lockdown is to be amortized over six months after the grace period.

Lessors must submit a signed promissory note to avail of the six month concession, or rent may be demanded from them at the end of the 30 days.

Most industries are allowed to operate at 50-100% capacity in areas under general community quarantine (GCQ), with the exception of amusement, gaming, fitness, and tourism establishments, as well as industries that cater to children. Concerts and sporting events are also not allowed.

All industries are allowed to operate in areas under modified GCQ.

Residential rent is also deferred for lessees who have lost income or whose employers or businesses were not allowed to operate during the lockdown. They are granted a grace period of 30 days from the lifting of the quarantine or from the resumption of employment or business operations.

Lessees may not be evicted for failure to pay rent within the lockdown until the end of the grace period.

Lessors who fail to follow the guidelines may be held criminally, civilly, or administratively liable.

Information on violations of the guidelines may be brought to the DTI. Violations may be endorsed to the Department of Justice, subject to the filing of a complaint affidavit by the lessee or lessor.

DTI said that lessors may also consider waiving or offering discounts for commercial rent or renegotiating lease term agreements for micro, small, and medium-sized enterprises.

Lessors are not obligated to refund rent payments made during the lockdown. — Jenina P. Ibañez

Bill to make gov’t procurement ‘green’ approved by House committee

THE House Committee on Sustainable Development Goals approved Tuesday a substitute bill to House Bill 6526 which seeks to establish a sustainable public procurement program for all agencies.

The proposed Green Public Procurement Act requires all government offices to procure based partly on the lowest life-cycle cost of products and services and to categorize procured items to facilitate waste recycling and reuse.

Life-cycle cost considers all costs to be incurred during the lifetime of a product or service, plus “externalities,” which are unreckoned at the time of purchase, such as the cleanup costs for land used by a power plant. Current government procurement rules are typically based on least cost at the time of purchase.

The measure also seeks to include sustainability criteria in public tenders; to establish the specifications and requirements for products or services to be considered sustainably advantageous; and to develop programs for suppliers of sustainable products and services.

“As both public and private organizations become increasingly aware of the need to reduce the impact of products, goods, as well as services to the environment, government procurement carries the potential of stimulating the market for the production of ecologically friendlier products by setting an example as responsible consumer,” House Deputy Speaker and Camarines Sur Representative Luis Raymund F. Villafuerte said in his explanatory note.

The bill also directs the Government Procurement Policy Board to appoint a third-party verifier of claims of sustainability of products and services while establishing capacity-building programs for all government agencies.

Before the substitute bill was approved, Lanao del Norte Rep. Mohamad Khalid Q. Dimaporo proposed that local government units’ capacity-building activities under the sustainable procurement program should be fully funded by the national government.

“When we do capacity building, it requires a budget. That is where it is still a little bit in the grey area as far as the substitute bill is concerned. I want to make sure that in the IRR (implementing rules and regulations) they do not charge capacity building to the local government units. If there is a capacity building for the purpose of Green Procurement, the budget should emanate from the national government,” he said during the virtual hearing.

Committee chairwoman and ALONA Party-List Rep. Anna Marie Villaraza-Suarez said that the measure will be taken up at the plenary sometime in August.

The bill will have to go through second and third readings before hurdling the lower chamber. Its counterpart measure, Senate Bill 1371 which is filed by Senator Pia S. Cayetano, is still pending at the committee level. — Genshen L. Espedido

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