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Gov’t recovery strategy takes shape in House

A MAJOR government bank told Congress that its economic stimulus lending programs will be issued under less stringent risk-assessment conditions to facilitate the release of liquidity into the economy during the coronavirus disease 2019 (COVID-19) crisis.

“I got assurances from LBP (Land Bank of the Philippines, or LANDBANK) that their stimulus loans will be off-balance sheet, so they can be administered without the usual rigorous risk-based assessments that banks do. In terms of bank processes, that’s as good as it gets, so our committee is quite encouraged by the assurance,” Albay Representative Jose Maria Clemente S. Salceda, who is also the House Economic Stimulus Cluster Co-Chairman, said in a statement Tuesday.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno also told legislators during the virtual hearing of the House Defeat COVID-19 committee on Tuesday that the central bank has effectively eased liquidity conditions by allowing banks to count their loans to small firms as reserves.

“We have freed up from P180 billion to P200 billion and we asked banks to lend the money to MSMEs (micro, small and medium enterprises),” he said.

Finance Secretary Carlos G. Dominguez III said the Philippine Export and Foreign Loan Guarantee Corp., will guarantee part of the loans banks extended to MSMEs to boost lending to small borrowers.

The House economic stimulus sub-committee on Tuesday released a draft bill, the Philippines Recovery Act, which calls for a P613-billion stimulus package to help workers and businesses deal with the effects of COVID-19.

The draft bill classifies economic measures to address COVID-19 as transitional, sectoral and structural interventions.

Transitional interventions are economic relief measures to be implemented immediately after the lockdown to avert permanent damage to the economy. These include wage subsidies worth P110 billion for critical businesses, the self-employed, freelancers and Overseas Filipino Workers.

Compensation for COVID-19 victims will be provided by the Social Security System and the Government Social Insurance System with a total funding of P1 billion. Regulatory relief for all business entities through the suspension or waiving of fees for licensing and payment deadlines is also included.

Sectoral interventions are relief measures intended for MSMEs, tourism establishments, farms and fishing communities, and other critical businesses.

These include the P10 billion in MSME assistance by the Department of Trade and Industry, a separate P25-billion loan program for MSMEs, a P10-billion loan program for the agri-fishery sector, a P43-billion program for tourism assistance by the Department of Tourism and P66 billion worth of trade assistance from the Board of Investments.

Sectoral interventions also include industrial policies such as the imposition of zero tariffs on imported raw materials, the suspension of export percentage requirements, and grants for technological innovation for COVID-19 related products.

Structural interventions include P48 billion worth of credit mediation and refinancing; P300 billion in zero-interest loans to businesses by LANDBANK and the Development Bank of the Philippines; and P650 billion for enhancing the “Build, Build, Build” program.

The bill also proposes the creation of the National Emergency Investment Corp. with P350-billion capitalization which is tasked to “rescue firms that fail due to an unforeseen economic crisis” through convertible loans, debt-to-equity swaps, or outright government purchases.

The draft authorizes the President to reallocate and realign the General Appropriations Acts of 2019 and 2020, and allocate cash, funds and investments held by any government-owned or controlled corporations or any national government agency to provide funding support for the measure.

It also orders the Department of Budget and Management to identify programs, projects, and activities which cannot be implemented effectively as a result of the COVID 19 outbreak. — Genshen L. Espedido

No use allowing POGOs to resume if regulatory issues remain, legislator says

A SENIOR legislator said Wednesday that proposals to allow online gaming firms to resume operations “makes little sense” if it cannot properly document their foreign workers and account for their taxable earnings.

“In hearings in the House and the Senate, we have been told that one, we cannot even properly keep track of and document POGO workers; and two, that we have not been able to collect taxes from them,” House Minority Leader and Manila Representative Bienvenido M. Abante, Jr. said in a statement, referring to the part of the online gaming industry licensed under the Philippine Offshore Gaming Operator (POGO) program.

“If that is the case, then allowing them to resume operations ostensibly so the government can earn revenue to help battle the COVID-19 (coronavirus disease 2019) outbreak makes little sense,” he added.

Aside from unresolved issues in regulating the POGO industry, Mr. Abante said the government will be sending “conflicting signals” to the public regarding the enhanced community quarantine (ECQ) should it allow POGO employees to return to work.

“The government has suspended work in Luzon to keep people from going outside to prevent the spread of COVID-19, but has allowed essential industries like food production, manufacturing, and sales to continue.”

He said that “many of our countrymen want to go back to work because the ECQ has deprived them of their livelihoods, and we tell them that we cannot allow them to work for now for the good of the public’s health.”

Kung hayaan natin makabalik ang POGO sa gitna ng krisis na ito, tatanungin nila, bakit ang mga foreigner na ito pwede magtrabaho, kami hindi? (If we let POGOs return during the crisis, the people will ask why we allow foreigners to work while many of us cannot) That is a conflicting message government cannot send, not while it adopts more measures to strictly enforce the ECQ,” Mr. Abante said.

ACT-CIS Party-list Rep and vice chair of the House games and amusements committee Eric G. Yap earlier called for POGOs to return to work to boost government funds as it addresses the COVID-19 outbreak.

Philippine Amusement and Gaming Corp. (PAGCOR) Chair and Chief Executive Officer Andrea D. Domingo said she “fully supports” Mr. Yap’s petition. Finance Secretary Carlos G. Domiguez III, meanwhile, told reporters Monday that the department is still evaluating whether the POGO suspension should be lifted.

Meanwhile, Ang Probinsyano Party-list Rep. Ronnie L. Ong, who is also vice chairman of the House games and amusements committee, urged the Philippine Charity Sweepstakes Office (PCSO) to continue its operations by launching “secure and fraud-free” interactive mobile lottery games to help the government generate funds to address the COVID-19 crisis.

“Interactive and mobile lottery games can actually be very timely because of the ECQ. Many people are in their homes doing nothing. Instead of wasting money on some online games to fight boredom, they can actually support PCSO lotteries as their way of contributing in the war effort against this unseen enemy,” he said in a statement Wednesday.

Mr. Ong said that the government is losing at least P3.75 billion per month since PCSO decided to stop operations in March. — Genshen L. Espedido

Fuel marking program processes 6.88-B liters as of April 15

THE government has marked 6.88 billion liters of fuel products as of April 15, with 75% of the total marked in Luzon, the Department of Finance (DoF) said.

In a document sent to reporters on Wednesday, the DoF said the marking took place between September and April 15, with 20% marked in Mindanao and 5% marked in the Visayas.

Petron Corp. accounted for 1.618 billion liters of fuel marked or 23.53% of the total, followed by the 20.09% share of Pilipinas Shell Petroleum Corp. with 1.382 billion liters, Unioil Petroleum Philippines, Inc. had an 11.41% share with 785.191 million liters and Chevron Philippines accounted for 10.31% or 709.227 million liters.

Other oil companies that participated in the fuel marking program were Phoenix Petroleum, Seaoil Philippines, Inc., Insular Oil Corp., Filoil Energy Company, Inc. and PTT Philippines Corp.

Fuel marking is an anti-smuggling measure. Fuel that has passed the various stages of tax compliance is marked with a special dye. The absence of a marker dye can be taken as prima facie evidence that no taxes were paid on the fuel.

“Definitely the fuel marking program, as part of our tax reform (program), is having a positive effect on our revenues and therefore, on our ability to withstand the ill effects of the (coronavirus) contagion,” Finance Secretary Carlos G. Dominguez III told reporters in a Viber message Wednesday.

The DoF has estimated additional revenue of about P20 billion this year as due to the fuel marking program’s deterrent effect on smuggling. Before the marking program was implemented, the DoF estimated revenue losses due to fuel smuggling of between P20 billion and P40 billion a year. — Beatrice M. Laforga

DoE releases draft accreditation guidelines for energy-efficiency firms

THE Department of Energy (DoE) released the draft rules for the accreditation of energy service companies (ESCOs), which will help bring about greater efficiency and conservation in the energy industry.

The guidelines comply with a provision in the implementing rules and regulations (IRR) of Republic Act No. 11285, or the Energy Efficiency and Conservation Act.

Among other provisions, the law instructs the DoE to strengthen the current ESCO certification system.

The IRR, issued in November, ordered the department to draft guidelines for the certification requirements, review and evaluation process, and classification of ESCOs.

ESCOs are defined by law as offering “multi-technology services and goods towards developing and designing energy efficiency projects, delivering and guaranteeing energy savings, and ensuring cost-effective and optimal performance.”

The proposed rules state that ESCOs, which can be classified as either registered or certified, will have to undergo technical and legal evaluations as part of the accreditation process.

Certified ESCOs will also have to be evaluated for their financial capacity, and are required to submit financial statements as part of their applications.

Accredited firms may also be required to submit reports on their on-going and completed projects on April 30 of each year.

The draft rules were drawn up by a committee led by the DoE’s Energy Utilization Management Bureau. This panel consists of division chiefs of the department’s general legal services, power compliance, and energy efficiency and conservation division, along with the section head of the energy management advisory service sector.

The DoE is currently soliciting comments on the draft rules until April 30. — Adam J. Ang

US extends $5.3M in humanitarian assistance for COVID-19 containment effort

THE US has provided $5.3 million worth of humanitarian assistance to the Philippines in support of efforts to contain the coronavirus disease 2019 (COVID-19) outbreak.

“The US government approved an additional P269 million in health and humanitarian assistance to help support the Philippines,” the US Embassy in the Philippines said in a statement Wednesday.

US President Donald J. Trump on Sunday made a phone call to President Rodrigo R. Duterte, during which he offered another round of assistance to the Philippines.

“This newest tranche of US assistance will support laboratory and specimen-transport systems and intensify case-finding and disease surveillance.”

It also intends to assist Filipino and international experts in risk communication and infection prevention, among other measures.

The Philippines earlier received $4 million worth of assistance from the US.

The previous round of funding was meant to increase testing capacity to 3,000 samples per day from 200. It also included a donation of 1,300 cots for Philippine medical facilities.

The Department of Health said as of April 14, testing was available in 15 separate centers. — Charmaine A. Tadalan

PHL raw sugar output expected to decline amid liberalization worries

RAW SUGAR output in the Philippines during crop year (CY) 2020-2021 is expected to drop, as land planted to sugarcane continues to decline and producers remain cautious about plans to liberalize sugar imports, the United States Department of Agriculture (USDA) said.

In its Global Agricultural Information Network report for the Philippines, the USDA said that raw sugar production for CY 2020-2021 is estimated at 2 million metric tons (MT), against 2.025 million MT a year earlier.

“Sugar producers remain cautious about the impact of possible deregulation, as Philippine economic managers consider further trade liberalization beyond rice, such as the sugar and corn sectors,” the USDA said.

Meanwhile, sugar demand for CY 2020-2021 is expected to increase to 2.35 million MT due to increased usage of sugar by food and beverage manufacturers.

Sugar demand could also be spurred by the recovering global economy when it emerges from the coronavirus disease 2019 (COVID-19) crisis.

The report also estimated refined sugar imports in CY 2020-2021 at 450,000 MT, while exports of sugar to the US market are expected to grow to 140,000 MT.

Land planted to sugarcane in 2019-2020 fell to 406,500 hectares from 410,000 hectares a year earlier due to poor weather conditions. — Revin Mikhael D. Ochave

BIR rewards bayanihan spirit with tax advantages

With steadily increasing COVID-19 cases, major cities on lockdown, and most businesses closed, the government has appealed to the private sector to contribute to relief efforts in the spirit of bayanihan. The Bureau of Internal Revenue (BIR) released Revenue Regulations (RR) No. 9-2020 in line with Republic Act No. 11469, otherwise known as the Bayanihan to Heal as One Act, the main objective of which is to adopt urgently-needed measures to address the novel coronavirus outbreak. In particular, RR No. 9-2020 liberalizes the grant of incentives for certain donations in response to the COVID-19 crisis.

The Tax Code grants donor’s tax exemptions and full/partial income tax deductibility for qualified donations made to the national government for NEDA-approved projects, and to accredited non-stock, non-profit organizations (NSNP) formed and operated exclusively for social welfare and charitable purposes, among other purposes.

RR No. 9-2020 broadens the coverage further by granting full deductibility for COVID-19 related donations given to the national government during this state of emergency, even if not included in NEDA’s annual priority plan. More importantly, the RR allows donors to donate directly to other donees and still avail of donor’s tax exemption and full deductibility. These additional donees are: private hospitals, NSNPs (even if non-accredited); and entities which serve as conduits in the relief activities of accredited NGOs, and/or the national government.

The tax incentives under the RR cover donations for the sole purpose of combating COVID-19, given from March 16, the start of the Luzon-wide enhanced community quarantine (ECQ), until the end of the three-month effectivity period of the Bayanihan Act. The donations mentioned in the RR are not only limited to cash, but also include health care equipment or supplies, relief goods, and the use of personal and real property.

For donations in kind, the input VAT attributable to the purchase of goods may be creditable against the donor’s output VAT. Needless to say, such input VAT credits must be supported with official receipts or sales invoices. Such donations will not be treated as transactions deemed sales subject to VAT.

DOCUMENTARY SUPPORT FOR TAX-EXEMPT DONATIONS
The availment of the tax incentives is subject to the timely submission of the following required supporting documents by both the donor and donee:

As RR 9-2020 did not provide for a specific timeline, it appears that the COD must be filed by the donee with the BIR following the deadlines in other existing regulations. Normally, the COD must be filled within thirty days (30) from the receipt of the donation. Pursuant to RR No. 10-2020, the filing of the COD is extended for thirty (30) days from the lifting of the ECQ.

The donor’s obligation to file a Notice of Donation has been waived by the BIR during this period.

The above documents must be submitted by both parties within 60 days from the lifting of the ECQ to their registered Revenue District Offices.

Despite the seemingly stringent requirements, the RR leaves ample room for flexibility. For one, if the donee does not have any BIR-registered Acknowledgement Receipt, it may use the template for an acknowledgment receipt provided under the RR.

Also, the Sworn Certification may be executed by the donor, instead of the donee.

To curtail possible abuse, the BIR reiterated its right under the Tax Code to audit the exemption and deductibility of the donations by checking the documents submitted by the donor and donee.

While RR No. 9-2020 is a timely perk to taxpayers who want to join the fight against COVID-19, there is room to enhance the guidelines by clarifying a few points:

• In prescribing the documentary requirements for donations to the additional donees under Section 4, the RR appears to have erroneously included accredited NSNPs in the list. The supporting requirements on donations to accredited NSNPs are already separately discussed in Section 3 of the RR.

• The RR did not provide guidance on how the donor should determine the value of the deductible expense related to the use of his property (such as vehicles, lots, or buildings) and how this should be taken up in the liquidation report, Sworn Certification and BIR-registered Acknowledgment Receipt.

• It is not clear whether the input VAT incentive on donations in kind is also applicable to those made to the additional donees since the RR referred only to donations enumerated in Section 3.

• For donations coursed through another entity, it is not clear if the liquidation report must be filed by the donee-recipient or the ultimate beneficiary.

• It might be good if the RR can further clarify which donations may be classified as relief goods entitled to the incentives. For example, would items such as shampoo, toothpaste (or even deodorant) qualify? If not allowed, then such items may qualify for tax incentives only if donated to the National Government or accredited NSNPs.

Despite these inconsistencies which I hope will be clarified subsequently, the RR is still a welcome development to taxpayers who have aligned their resources with their values during these times. With these tax perks, hopefully more taxpayers will be encouraged to participate in social welfare initiatives.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Elyse O, Lui is a senior associate with the Tax Services Group of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 8 845-27 28

elyse.o.lui@pwc.com

Learn about farming during quarantine

More than 60 online courses available for free at DA-ATI’s e-Learning platform

Even as the enhanced community quarantine (ECQ) contains our movements and activities at home, there are many opportunities to stay productive. Through online resources, people can make good use of their free time in expanding their knowledge and learning new skills.

Farming is among those skills one can learn during this ECQ right at their homes, and this is possible through the e-Learning for Agriculture and Fisheries of the Agricultural Training Institute (ATI), the training and extension arm of the Department of Agriculture (DA).

ATI’s e-Learning program has been offered since 2007 as an alternative means of gaining new knowledge about farming for free.

Now, with the coronavirus disease 2019 (COVID-19) pandemic pushing the need to increase food production, e-Learning is seen to boost DA’s nationwide promotion of urban agriculture and community farming under the “Plant, Plant, Plant” Program.

As DA Secretary William Dar said in a televised briefing last April 18, the “Plant, Plant, Plant” Program aims to boost the food sufficiency level of agriculture commodities such as rice, corn, fisheries, vegetables, and many others.

He stressed that one of the initiatives being rolled out under the program is introducing urban agriculture in metropolitan areas amid enough supplies coming from the provinces.

ATI’s e-Learning program currently offers more than 60 free online courses, covering crops, livestock and poultry, fisheries, social technology, and sustainable agriculture.

Some of the courses are on basic urban gardening, Good Agricultural Practices for vegetable production, and production technologies for straw mushroom, tomato, banana, citrus fruits, and yam, among others.

Basic beekeeping, goat-raising, and quail production courses are also available through the portal.

Under the social technology category, courses on product costing, marketing, food safety, and even effective human communication and community organizing may be accessed.

Sustainable agriculture practices such as the production of organic fertilizers, vermicompost, and mokusaku (wood vinegar) are also open to interested users.

Depending on one’s pace, most of the courses can be completed within a day. Upon completing a course, the e-Learner receives an electronic certificate that can be downloaded from the site.

According to ATI, the number of Filipinos currently registered in the e-Learning site hugely increased during the ECQ — from 87,200 to over 92,700 enrollees.

One of these e-Learners, Ronel De Guzman, an instructor at President Ramon Magsaysay State University in Zambales, shared to ATI that learning through their online platform is a more productive use of his internet connection and electronic gadgets.

“The main reason I tried e-Learning is that I wanted to learn more about agriculture as well as develop some skills necessary for my professional development as an agriculturist and a teacher,” Mr. De Guzman was quoted as saying in a statement.

Alberto Ang, 56 years old, must be enjoying to spend time learning from the e-Learning platform since he has finished five courses so far, most of which are on sustainable agriculture technologies.

“The e-Learning courses being offered are really wonderful. [I like that] these are short but concise courses depending on the topic. Also, if you want, you get to apply the planting techniques right away, whether you have a small or big space, and especially now that almost everyone is staying home,” Mr. Ang said.

In his backyard, he recycles plastic containers to grow vegetables like okra, tomato, and chili pepper.

Below is a complete list of e-Learning for agriculture and fisheries courses.

CROPS
1. Sweet Hairy Balls Rambutan Production
2. Juan and Coffee Talk: Robusta Coffee Production
3. LET’s Grow KAMATIS: Tomato Production Guide
4. Cassavay sa Pag-asenso: Roots of Productivity (CASSAVA1)
5. CASSAVAy sa Pag-asenso: Primary Processing and its Market (CASSAVA2)
6. Rise and Grind: Coffee Processing as an Enterprise (COFFEE3)
7. Good Agricultural Practices for Vegetable Production (GAP1)
8. Cultivating Earth’s Sweet Crop: The Sweet Potato (SweetPotato1)
9. Adlay Adds Life: Introduction to Adlay Production & Product Development(Adlay1)
10. Jackfruit Nursery Management (Jackfruit2)
11. Gold in Grains: Cultural Management for Soybean (Soybean1)
12. Queen Pineapple Production and Postharvest Technology (Pineapple2)
13. Online Course on Mechanized Rice Transplanting Technology (Mech3)
14. Basic Urban Gardening (Urban1)
15. Managing Common Diseases in Banana (Banana1)
16. Saving The Lost Harvest: Introductory Course On Rice Post Production Technologies (Mech2)
17. Abaca Nursery Establishment and Management (Abaca3)
18. Treasure in Threads: Pinya Fiber Processing (Pineapple1)
19. Cultural Management Practices of Abaca (Abaca1)
20. Abaca Pest Management (Abaca2)
21. Growing Bamboo for Profit and a Healthy Environment(Bamboo1)
22. Integrated Pest Management for Banana (Banana2)
23. Growing Banana in the Tropics (Banana3)
24. Citrus Growing: A Promising Enterprise (Citrus1)
25. Savoring the Green Brew: Arabica Coffee Production (Coffee1)
26. From Seed to Seed: Online Course on Corn Production (Corn1)
27. Growing Durian the Better Way (Durian1) [OFFLINE]
28. Production of High Value Crops in Greenhouse (Greenhouse1)
29. Jackfruit Production (Jackfruit1).
30. Go Mango, Hit the Jackpot! Online Course on Mango Production (Mango1) [OFFLINE]
31. Increasing Corn Farm Productivity through Mechanization Technologies (Mech1)
32. Straw Mushroom Growing: A Viable Agri-Enterprise (Mushroom1)
33. Growing Vanda and Vandaceous Orchids (Orchid1)
34. Yummy Yam: Ubi Production (Yam1)

LIVESTOCK
1. Basic Beekeeping (BEE1)
2. Advanced Beekeeping (BEEKEEPING 2)
3. Establishing Feed Resources for Your Goats (Goat1).
4. Starting a Slaughter Goat Enterprise (Goat2)
5. Technological Alternatives to Traditional Goat Breeding (Goat3)
6. Technological Alternatives to Traditional Feeding Management (Goat4).
7. Technological Alternatives to Traditional Herd Health (GOAT5)
8. AI at Your Cervix: Artificial Insemination Course for Raisers (GOAT7)
9. AI at You Cervix: Artificial Insemination Course for Technicians (GOAT8)
10. Meetylicious Meeh: Slaughtering and Cutting Standards for Goat (GOAT9)
11. Hail the Quail. Online Course on Quail Production (Quail1)
12. Walang Aray sa AI: Artificial Insemination in Pigs (Pig1)
13. Mastering the ABCs of Pig Production (Pig2)

MARINE AND FISHERIES
1. Taste the Creamiest Cream Dory: Online Course on the Culture and Utilization of
2. Pangasius (Pangasius1)
3. Seaweed Farming (Seaweed1)

SOCIAL TECHNOLOGY
1. Product Costing Made Easy (PTTC-COSTING1)
2. Food Safety in Trade (PTTC-FOOD1)
3. Online Course on Training Management (TM1)
4. Lika! Usap Tayo: Effective Human Communication and Human Relations (COMM1)
5. Getting the Big Bucks: Guide to Grant Proposal Writing (Writing1)
6. Changing People’s Lives Through Effective Extension Delivery (EDS1)
7. Working Together Works: An Online Course on Community Organizing (CommOrg1)
8. Basic Agricultural Marketing Extension (Agrimark1)

SUSTAINABLE AGRICULTURE
1. Growing Carrot the Natural Way (CARROT1)
2. Improving Quality of Life: Growing Rice Organically (ORICE1)
3. Climate Change 101: Understanding Climate Change in Agri-Fisheries (CC101)
4. Mokusaku: Wood Vinegar Production (WOODVIN1)
5. Online Course on Organic Fertilizer for SA (Organic1)
6. Vermicomposting: Turning Trash to Cash (Vermi1)
7. Green Farming with Integrated Rice-Duck Farming (IRDFS1)
8. DEMO COURSE- Insects Away the Alternative Way (APM1)

Interested individuals may visit www.e-extension.gov.ph/elearning to create an account and enroll in any chosen course.

For questions and concerns, chat with the ATI e-Learning team through facebook.com/atiinteractive or text the Farmers’ Contact Center at 0920-9462474. — ADRIAN PAUL B. CONOZA

Luzon lockdown may continue if coronavirus infections spike

A LUZON-wide lockdown probably won’t be lifted if coronavirus infections continue to soar, the government’s chief enforcer of policies against the pandemic said on Tuesday night.

The Philippines “cannot rush into normalcy,” Carlito G. Galvez, Jr. told a news briefing, noting that cases could enter a “second wave” similar to what happened in Singapore if the lockdown was lifted sooner.

President Rodrigo R. Duterte locked down the entire Luzon island on March 17, suspending work, classes and public transportation to contain the outbreak. The so-called enhanced community quarantine was supposed to end on April 13 but he extended it by two more weeks until April 30.

Mr. Duterte said people should stay home and go out only to buy food and other basic goods.

“We need to continue and heighten the enforcement of the enhanced community quarantine,” Mr. Galvez said in Filipino. “While doing this, it’s better if we also conduct mass testing to locate, test, isolate and cure patients.”

Presidential spokesman Harry L. Roque told Radyo Pilipinas on Wednesday Mr. Duterte was still studying his options, adding that totally lifting the lockdown was out of the question.

The government was considering limiting the lockdown to certain areas as recommended by health experts to Mr. Duterte on Monday, he said.

“The enhanced community quarantine may be enforced in the entire province, city or at the village level,” Mr. Roque said in Filipino. “That is one of the options the President is considering.”

Senator Christopher Lawrence T. Go, Mr. Duterte’s close friend and former aide has said the President would probably announce his decision on Thursday.

Also yesterday, the National Economic and Development Authority (NEDA) said a task force made up of Cabinet secretaries against COVID-19 should base its lockdown recommendations on scientific evidence.

“NEDA is recommending to make the decision based on scientific evidence on the risk of transmission of the virus if we modify or lift the enhanced community quarantine,” Acting Secretary Karl Kendrick T. Chua said in a Viber message.

Business groups have urged government to do a calibrated reopening of the economy after April 30 and allow businesses to partially operate again.

“What people want to see is hopefully for the economy to start resuming in stages for them to able to start working,” British Chamber of Commerce Philippines Executive Director Chris Nelson told the ABS-CBN News Channel yesterday.

”Companies want to be able to get their cash flow going because liquidity is important,” he said.

Mr. Chua said at a briefing it would probably be safe for people to go back to work by June or July, assuming the government can test at least 5,000 people daily.

Also yesterday, Senate President Vicente C. Sotto III called for a modified lockdown.

“We need to extend the lockdown but with modifications,” he told DZMM radio.

Mr. Sotto said areas with zero or few cases may be allowed to lift the lockdown provided social distancing measures are maintained. Places hit hard by the virus such as Metro Manila should still be locked down, he added.

Local governments may relax public transportation restrictions, Mr. Sotto said. Tricycles may be allowed to operate again but only with one passenger, he added.

Mr. Sotto on Monday attended a meeting where health experts explained lockdown options to Mr. Duterte.

Mr. Sotto said health experts had warned of a spike in infections once the lockdown is lifted.

Meanwhile, University of the Philippines professors said lifting the lockdown should be done gradually and selectively.

This first approach considers resuming mobility within the village, then within cities and municipalities, and then between cities, the academic experts said in a research paper published on April 21.

The second approach seeks to revive economic activity beginning with highly important sectors to sustain the economy in the next 18 months, they added. — Gillian M. Cortez, Charmaine A. Tadalan and Beatrice M. Laforga

DoH says COVID-19 cases now at 6,710

THE Department of Health reported 111 new coronavirus infections on Wednesday, bringing the total to 6,710.

Nine more patients died, raising the death toll to 446, it said in a bulletin. Thirty-nine more patients have gotten well, bringing the total recoveries to 693, it added.

Undersecretary Maria Rosario S. Vergeire told a news briefing 1,062 health care workers have tested positive for COVID-19.

At least 422 were doctors, 386 nurses, 30 medical technologists, 21, radiologic technologists, 51 nursing assistants and 152 belonging to other services such as administrative workforce and village health workers, she said.

Twenty-six of them, 19 of whom were doctors, died, Ms. Vergeire said.

She said three new quarantine facilities have started admitting COVID-19 patients. The Philippine International Convention Center has 294 beds, The ASEAN Convention Center has 150 beds and the World Trade Center has 502 beds.

She also said the New Clark City National Government Administration Center in Pampanga province, which has 688 beds had not started accepting patients pending safety inspections.

Ms. Vergeire also discussed results of contact tracing that showed the coronavirus disease 2019 spread among those who went to public places such as malls and cockfighting events.

“That’s why it’s important for us to listen to our local government units about the rules while there is an enhanced community quarantine,” she said in Filipino. “Your cooperation is a big factor in ensuring that you and your families are safe.”

The coronavirus disease 2019 has sickened 2.6 million and killed more than 178,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

More than 700,000 patients have recovered from the virus, it added. — Vann Marlo M. Villegas

China told to pay for reef damages in disputed sea

A SENATOR on Wednesday said China should pay for damages brought by its reclamation activities in the South China Sea, adding that the Philippines could use the money in its battle against the coronavirus pandemic.

Senator Risa N. Hontiveros-Baraquel said damages in the country’s reef ecosystems in the past six years could reach P200 billion.

China should “shoulder the cost of our country’s COVID-19 response in reparations for the damage it has been doing to our reef ecosystems in the West Philippine Sea,” she told a virtual news briefing, referring to parts of the South China Sea within the Philippines’ exclusive economic zone.

The amount was based on estimates by the University of the Philippines Marine Science Institute. The institute has cited P33.1 billion in yearly losses from the destruction of reefs at the Scarborough Shoal and Spratly islands.

Ms. Baraquel said asking China for payment sends a strong statement that the Philippines holds it accountable for violating a 2016 arbitration court ruling favoring the Southeast Asian nation.

“Whether they pay or not, what’s important is we will have put on record internationally that we are seeking payment from them for violating the United Nations clause,” she said in Filipino.

The senator also criticized China’s plan to set up two districts in Paracel and Spratly Islands.

“We also shouldn’t allow China to continue declaring her so-called districts in areas of the West Philippine Sea while the world is occupied with this crisis that originated from China,” Ms. Baraquel said of the coronavirus pandemic.

The two administrative units are under the control of Sansha City, the Chinese People’s Liberation Army said on its news website on April 17. — Charmaine A. Tadalan

123 inmates in Philippine jail infected with coronavirus

A prison in the Philippines is suffering from a major outbreak of the new coronavirus with 123 infected inmates, officials said on Wednesday, adding to concerns among activists about contagion risks in some of the world’s most overcrowded jails.

The mayor of Cebu City said a new building in the prison capable of handling 3,000 people would be used as an isolation facility to contain an outbreak that accounts for 40% of cases in the Philippines’ second biggest city.

There were no details about the possible source of the outbreak. Eighteen cases have been found at a jail in Quezon City, among them nine staff members. Nineteen more inmates and a worker at a women’s prison in Mandaluyong City near the capital were also infected.

New York-based Human Rights Watch (HRW) was among several groups that called for inmates held for minor, non-violent offences, or those with health conditions, to be freed from Philippine prisons to create more space.

Activists globally have been urging governments to free political prisoners.

HRW this month warned of the likelihood of a serious coronavirus outbreak in the Philippines “threatening the lives of prisoners whose health the authorities have a duty to protect.”

The Cebu jail outbreak is among the biggest known coronavirus clusters in the Philippines, which as of Wednesday had 6,710 infections and 446 deaths. About 70% of cases are in the capital, Manila.

Philippine prisons are notoriously overcrowded due to a combination of poverty, high crime rates and a judicial system unable to cope with a huge case volume.

A shortage of public defenders, overwhelmed judges and insufficient funds to post bail means suspects typically spend long periods — sometimes years — in detention awaiting court hearings that often end up with acquittals.

As of December, nearly 90,000 people in the Philippines were detained awaiting trial, corrections bureau data showed.

President Rodrigo R. Duterte’s war on drugs has exacerbated the problem, each year adding tens of thousands to jails, with 71% of inmates held on drug-related charges.

The Supreme Court urged trial judges on Monday to free prisoners eligible for temporary or early release. — Reuters