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Report on charter change to be tackled in forum

By Arjay L. Balinbin
Reporter
POLICY experts and Congress officials are set to launch at a forum on Friday, April 5, their policy report on prospects and proposals for charter change and federalism.
The report is a product of a series of learning sessions on constitutional change and federalism held last year, from May to September, by the International Institute for Democracy and Electoral Assistance (IDEA) and the Institute for Autonomy and Governance (IAG), in partnership with the Congressional Policy and Budget Research Department (CPBRD) and the Senate Economic Planning Office (SEPO), according to a briefer by Michael Henry Ll. Yusingco of the Ateneo Policy Center and the IAG.
Ram Toledo, Communications Manager of the IAG, e-mailed a copy of the briefer to BusinessWorld last Friday, March 29.
The forum will tackle several issues from the said learning sessions regarding constitutional change and federalism in terms of governance and human rights, fiscal arrangements, and transitional processes and mechanisms, among others.
In a phone message, Mr. Toledo said the forum aims to provide analyses of “the state of the federalism agenda” of President Rodrigo R. Duterte’s administration and the “current proposals.”
Officials who are expected to attend the event are CPBRD Director-General Romulo E. M. Miral, Jr., SEPO Director-General Ronald R. Golding, and Undersecretary Jonathan E. Malaya of the Department of Interior and Local Government and the Inter-Agency Task Force on Federalism.
On governance and human rights, Mr. Yusingco said the first panel will discuss the notion of the ruling elite and how their interests might be affected by constitutional change; the failure of the 1987 Constitution to break the overconcentration of power in the presidency; whether there are smaller and more predictable reform solutions that could resolve the problems that have been identified; inter-governmental relations (IGR) which is the lifeblood of a federal system; and implications of charter change and federalism on the Filipino people, particularly on their civil and political rights.
As for the fiscal arrangements, which will be tackled by another panel, among the issues to be tackled are whether regions still have a share in the national taxes or if they will simply get block grants; the necessity of fiscal equalization mechanism under a federal set-up; whether constitutional change will address the right issues, especially infrastructure and inefficient bureaucracy; whether federalism will make Filipinos take advantage of what they have; and whether it will distribute economic growth across regions.
The transitional processes and mechanisms will be tackled by the third panel. The discussion will focus on how the transition process will be managed.
Other questions that could be discussed during the forum are: “What should the scope of constitutional change be? What substantive changes might be required to the constitution? How should the process be structured and designed to balance elite inputs and public participation? Should Congress be convened as a Constituent Assembly? How can any reform process ever be truly robust and inclusive when there is a glaring disconnect between majority of Filipinos and the national charter?”

Fiscal balance back in deficit in February despite 2019 budget delay

A SURGE in state spending, despite delayed enactment of the P3.757-trillion national budget for 2019, fueled the fiscal deficit to grow nearly half in February, the Bureau of the Treasury reported on Friday.
In a press release, the Treasury noted that the national government’s fiscal balance reverted to a P76.4-billion deficit in February, reversing from January’s P44.5-billion surplus and increasing by 48% from the year-ago P51.7-billion gap.
FEBRUARY REVENUES
Revenues grew by a faster 13% in February, compared to January’s seven percent, to P202.1 billion from P178.5 billion a year ago, as tax collections increased by 12% (compared to eight percent in January) to P182.6 billion from P162.9 billion.
February saw the Bureau of Internal Revenue (BIR) — the government’s main tax collector — grow collections by 16% to P135.7 billion from P116.6 billion a year ago, while the Bureau of Customs raked in a percent more at P44.2 bilion from P43.7 billion.
Non-tax revenues — including taxes and duties state agencies pay on paper for transactions like importations — grew by a fourth to P19.5 billion from P15.7 billion in the same comparative months.
FEBRUARY DISBURSEMENTS
National government expenditures increased by 21% to P278.5 billion in February from P230.2 billion a year ago, with disbursements other than interest payments — a category that includes spending for infrastructure — growing by a fourth to P253.2 billion from P204.1 billion.
That compared to January’s drops of seven percent in total national government expenditures and of 10% in disbursements other than interest payments.
Interest payments dropped three percent to P25.3 billion from P26.1 billion.
YEAR-TO-DATE PERFORMANCE
February’s deficit increase coupled with January’s fourfold surplus surge resulted in a 23% reduction in fiscal gap to P31.8 billion in this year’s first two months from P41.5 billion a year ago.
February’s revenues made total collections grow by a tenth to P458.8 billion in this year’s first two months from P417.4 billion a year ago, with tax revenues climbing also by a tenth to P417.5 billion from P381 billion.
BIR collections went up a tenth to P320.8 billion from P292.3 billion, while Customs’ take rose by nine percent to P92.6 billion from 84.5 billion in the same comparative two-month periods.
Non-tax revenues grew 13% to P41.3 billion from P36.5 billion.
The first two months also saw state expenditures grow seven percent to P490.7 billion from P458.9 billion, with interest payments edging up by two percent to P71.2 billion from P69.6 billion and “other” spending going up eight percent to P419.4 billion from P389.3 billion.
The Finance department, however, said the government failed to spend a programmed P43.7 billion in the first two months due to a three-month delay in enacting the P3.757-trillion national budget.
The bicameral dispute over the 2019 national budget — which was supposed to have been enacted by end-2018 — ended on Tuesday when Senate President Vicente C. Sotto III finally signed and transmitted it to the Office of the President on Tuesday, even as he formally noted the Senate’s reservations about P95-billion post-ratification fund allocations made by the House of Representatives.
The government had been banking on front-loading infrastructure work this quarter, ahead of the 45-day ban on public works starting March 29 ahead of the May 13 midterm elections and weather disturbances next semester. The reenacted national budget left new projects unfunded.
In a statement sent to reporters on Friday, Finance Assistant Secretary Antonio Joselito G. Lambino II said the government was unable to spend some P740.7 million a day between January and February for a total of P43.7 billion.
This consisted of “idle funds that the Duterte administration could have otherwise spent on priority programs to sustain-and boost-the growth momentum and expand social protection initiatives for the poor,” said Mr. Lambino.
“The No. 1 casualty of this forced under-spending is President (Rodrigo R.) Duterte’s signature ‘Build, Build, Build’ program, as it has barred the government from front-loading investments in big-ticket infrastructure projects during the best time of the year to do construction, and for projects that have the highest multiplier effect on the domestic economy.” Mr. Lambino explained.
“Our economic managers have expressed concern over the negative impact of the budget delay because we are already past the best time of the year to front-load the implementation of the ‘Build, Build, Build’ projects.”
The inter-agency Development Budget Coordination Committee earlier this month slashed its 2019 gross domestic product growth target to 6-7% from 7-8% originally as the government operates on a reenacted budget, while that National Economic and Development Authority had separately estimated that a reenacted budget until April could drag full-year economic expansion to 6.1-6.3%, far from the state’s original target, roughly matching 2018’s 6.2% pace.
“Given that it would take weeks for Malacañang to review the Congress-submitted GAB [general appropriations bill], for the President to sign it and for the concerned agencies to implement their respective projects, we can expect the 2019 GAA [general appropriations act] to be fully on stream on or before the middle of this year yet,” Mr. Lambino added. — Karl Angelo N. Vidal

Inflation expected to have slowed further this month

THE OVERALL INCREASE in prices of widely used goods likely eased further this month as lower prices of rice and other produce offset increases of fuel and electricity costs, the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research announced on Friday.
The central bank unit said March inflation, which will be reported on April 5, likely clocked in at 3.1-3.9%, compared to February’s 3.8%, March 2017’s 4.3%, as well as BSP’s a three percent full-year forecast and 2-4% target range for 2019.
The lower end of the estimate, if realized, would be the slowest pace in 15 months.
It would also mark the fifth consecutive month of slowdown from a nine-year-high 6.7% recorded in September and October last year.
“Higher domestic oil prices and upward adjustment in electricity rates, provide upside price pressures to inflation for the month,” the BSP said.
Manila Electric Co. — the country’s biggest electricity distributor — announced earlier this month that it will increase its overall rate by P0.0894 per kilowatt-hour (/kWh) to P10.4961/kWh, while the Energy department’s oil price monitor as of March 26 showed year-to-date increases of P6.75 per liter for gasoline, P4.75%/liter for diesel and P3.55/liter for kerosene.
“Going forward, the BSP will continue to closely monitor evolving inflation dynamics and ensure that monetary policy stance remains appropriate to support BSP’s price stability objectives,” the central bank’s Economic Research department said in a brief note e-mailed to journalists. — KANV

Rappler chief arrested anew, posts bail

By Vann Marlo M. Villegas, Reporter
ONLINE news site Rappler CEO and executive editor Maria Angelita Ressa was released Friday upon posting P90,000 bail, following her latest arrest upon arrival at the Ninoy Aquino International Airport in connection with charges of violation of the Anti-Dummy Law.
Judge Maria Cheryl B. Laqui-Ceguera of Pasig City Regional Trial Court (RTC) Branch 265 ordered Ms. Ressa’s release and scheduled her arraignment on April 10 at 8:30 a.m.
Ms. Ressa was first arrested on Feb. 13, in connection with her cyber libel case, but soon after posted bail.
Police served the latest arrest warrant issued by the Pasig court as soon as Ms. Ressa arrived at the airport from abroad.
She has been charged with violation of the Anti-Dummy Law in connection with Philippine Depositary Receipts (PDRs) issued in 2015 to investing firm Omidyar Network Fund.
In February last year, Omidyar Network donated its PDRs valued at $1.5 million to Rappler staff following the SEC decision in January 2018 revoking the news site’s certificate of incorporation and declaring void the PDRs for being a “fraudulent transaction.”
Charged along with Ms. Ressa are Rappler Managing Editor Glenda M. Gloria and 2016 directors Manuel I. Ayala, Nico Jose Nolledo, James C. Bitanga, Felicia Atienza, and James Velasquez. They are all out on bail worth P90,000 each.
Information filed by the Pasig City Prosecutor’s Office said they “willfully, unlawfully, and feloniously” entered into a contract with Omidyar, “a foreign corporation, which is not allowed/proscribed by the Constitution.”
In a statement, Rappler said the issuing of arrest warrants against journalists “has a chilling effect on the freedom of speech, on business, and innovation.”
“This pattern of harassment against Rappler that started in January 2018, when the Securities and Exchange Commission issued an order revoking its license, has not stopped,” Rappler said.
“Initiated by the justice department, this latest case proves abuse of state power and the bending of the law to intimidate and harass critics,” the online news site added. “But journalists doing their jobs will not be intimidated. We will continue to #HoldTheLine.”
For his part, Presidential Spokesperson Salvador S. Panelo said in a press conference, “She is charged of a crime, and there is a determination of probable cause, hence a warrant of arrest has been issued. She should concentrate on defending herself in court. She cannot be always using the freedom of the press as an excuse to attack the administration.”
The Court of Appeals, in a resolution in February, denied Rappler’s motion for partial reconsideration and remanded the case to the SEC, directing it to evaluate the legal effects of the donation of PDRs to Rappler’s staff.

New Bangsamoro government outlines next steps as BTC holds inaugural session

By Tajallih S. Basman, Correspondent
COTABATO CITY — The Bangsamoro Transition Authority (BTA) held its first session Friday and elected the officers of the Parliament under the new regional government.
Designated Speaker is Pangalian M. Balingong, a former Lanao del Sur congressman and deputy speaker of the House of Representatives.
Hatimil E. Hasan of the Moro National Liberation Front (MNLF) is deputy speaker; Moro Islamic Liberation Front (MILF) lawyer Lanang Ali Jr. is majority floor leader; and Laisa Masuhud-Alamia, former executive secretary of the Autonomous Region in Muslim Mindanao (ARMM), is the minority floor leader.
BTA Chief Minister Al Haj Murad Ebrahim, who led the inaugural session that was opened with a prayer, said, “When we started the revolution, we took an oath to the Qur’an. Today, as we start our governance, we will also do the same.”
On March 25, the MILF turned over to the Independent Decommissioning Body the names of around 12,000 of its combatants, representing about 30% of the total.
Mr. Murad, in an earlier interview, said the decommissioned combatants are set to receive benefits that are meant “to convert them into productive members of society.”
Assistant Secretary Dickson P. Hermoso of the Office of the Presidential Adviser on the Peace Process previously explained that under the peace deal, the MILF will decommission 30% of its forces after the Bangsamoro Organic Law is ratified, another 35% after the regional police force is established, and the last 35% will be towards the exit agreement.
Mr. Murad said the new government of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is focusing on five “pillars” that are intended to address overall development.
“In almost all the human development indices, the Bangsamoro is still at the bottom when contrasted with the national standards,” he said.
The five pillars are: Education, health, economic development, strategic infrastructure, and moral leadership.
“These thrusts in education, health, and economic development must be complemented with responsive strategic infrastructure in the region such as ports, road network, flood control, and logistics and communication facilities,” he said.
On moral leadership, the BTA leader rallied fellow members of the parliament to support the construction of basic social facilities such as school buildings, hospitals, and health centers.
He noted that previous contractors who did not finish their projects should also be made liable.
“At the very least, (they have) to be blacklisted in future projects of the Bangsamoro Autonomous Region,” he said.
He also ordered the Ministry of Basic, Higher, and Technical Education — formerly the Department of Education under the ARMM — to “bury the ghosts” if there are still “wandering spirits in the payroll system.”
“We have been guided in our armed struggle by the tenets of Islam. We will also be guided by the teachings of Islam in delivering the trust that has been given us to run the Bangsamoro government, through the brand of leadership Islam advocates-moral governance,” Mr. Murad said.

Palace calls on EU anew to stop funding of Red fronts

By Camille A. Aguinaldo and Charmaine A. Tadalan, Reporters
Malacañang on Friday called on the European Union anew to reconsider funding organizations allegedly being used as legal fronts of the communist rebellion.
“The EU should (stop) because the funding will be used in destabilizing the government. If these are legal fronts and the main purpose is to break down government, then the EU, who’s funding it, should reconsider,” Presidential Spokesperson Salvador S. Panelo said in a televised press briefing at the Palace.
Mr. Panelo’s statements came after National Security Adviser Hermogenes C. Esperon had written the EU with the same plea. Mr. Esperon announced last Tuesday that he has informed Counter-Terrorism Coordinator Gilles De Kerchove that the EU funds were being used to recruit vulnerable sectors in the country, such as indigenous peoples.
He also noted that three Belgian nongovernmental organizations have partnered with NGOs that served as fronts of the Communist Party of the Philippines (CPP)-New People’s Army (NPA).
The office of the EU Delegation to the Philippines was sought for comment as of this reporting.
The military has also conveyed the same request to the Philippine delegation to the EU last February, identifying seven Belgian organizations under the “front organizations” of the CPP.
The Philippines also raised this matter before the United Nations Human Rights Council during its 40th Session in Geneva, Switzerland.
During the interactive dialogue with the Special Rapporteur on Minority Issues on March 13, Majella Cristy U. Pua-Diezmos of the Philippine Mission to the United Nations and Consulate General in Geneva told the international body that these groups set up “pseudo-schools or learning centers” in the indigenous communities for recruitment.
“In the Philippines, the communist terrorist group, an armed non-state actor, has been using front organizations to set up and run pseudo-schools or learning centers in vulnerable indigenous communities to recruit and use children as combatants and for other exploitative ends,” Ms. Pua-Diezmos said.
“These pseudo-schools package their illicit activities as educational and alternative learning programs for marginalized indigenous children and youth, and have been benefiting from funding from unsuspecting international donors,” she added.
In a statement sent to BusinessWorld on Friday, the EU Delegation to the Philippines said they have received the documents “concerning the more specific allegations by the Government.”
It has also made an initial audit into the issue, which did not reveal irregularities. But it would undertake a second specialized and in-depth audit again.
“The EU now will verify and evaluate these documents. A financial audit by an external company is due to be conducted in April,” the EU Delegation stated.
“The EU only supports organisations in the Philippines that are fully legally registered according to Philippine legislation. If any of these organisations are funnelling funds to the CPP this would be in violation of both EU and Philippine legislation. The EU Is therefore encouraging the government to provide specific proof confirming the allegations so that the EU can take appropriate legal action,” they later added in a separate statement.
The EU also noted that it considered the CPP-NPA as terrorist groups since 2005, “which means inter alia that no assets can be held in EU by these organisations.” 
NPA AT 50
Also on Friday, Communist Party of the Philippines (CPP) founder Jose Maria C. Sison issued a statement marking the 50th year of the party’s armed wing, the New People’s Army.
“It is fighting for the national and social liberation of the Filipino people, mainly the toiling masses of workers and peasants, against the three evil forces of foreign monopoly capitalism, domestic feudalism and bureaucrat capitalism,” Mr. Sison said in a statement, Friday.
“The revolutionary struggle becomes even more just when it confronts a brazenly treasonous, tyrannical, brutal and corrupt regime like that of Marcos or Duterte,” he added.
Mr. Sison, who is also chief political consultant of the National Democratic Front of the Philippines, the communist movement’s umbrella organization, said the NPA now has a total of 110 guerilla fronts, scattered in 73 out of 81 provinces in the country.
He said the rebels are now in the advanced stage of strategic defensive and may soon come to a strategic stalemate, or when “NPA companies and then battalions will be able to wage regular mobile warfare and launch tactical offensives that can wipe out larger enemy formations.”
“As sure as the sun rises and sets, the NPA and the people are able to see the wide gaps between enemy points and the lines of supply and patrols, and can proceed to wipe out the enemy forces part by part,” he said.
For its part, the Surigao del Sur local government has agreed to pass a resolution barring the CPP-NPA from the province, Interior Secretary Eduardo M. Año said in a statement on Friday.
“The government cannot do this alone. The LGUs declaring the CPP-NPA-NDF as persona non grata is an assurance that we have allies in this war against insurgency,” Mr. Año said.
He also cited similar initiatives by other localities, such as the provinces of Davao Oriental and Occidental, Compostela Valley, villages in Surigao del Norte, tribes in North Cotabato, 21 barangays in Malaybalay, Bukidnon, and the municipality of Sibagat, Agusan del Sur.

Rio reappointed to DICT

By Charmaine A. Tadalan, Reporter
PRESIDENT Rodrigo R. Duterte has reappointed Eliseo M. Rio, Jr. as acting secretary of the Department of Information and Communications Technology (DICT) after Senator Gregorio B. Honasan II’s appointment lapsed.
Mr. Rio, whose appointment papers were signed on March 25, will continue his tenure place of Senator Honasan.
The Senator’s appointment as DICT chief lapsed on Dec. 15, upon failure to submit requirements to the Commission on Appointment. He was nominated by the President on Nov. 22.
Moreover, the Palace also announced the appointment of 23 other officials to the Department of Social Welfare and Development, Department of Budget and Management, and National Economic and Development Authority, among other agencies.
These include now DSWD Undersecretary Danilo G. Pamonag and Director Rebecca P. Geamala; DBM Directors Ricky L. Sanchez, Mae L. Chua, John Aries S. Macaspac, Joseph Cicero M. Sy and Nympha R. Manalastas; NEDA Directors Kathleen P. Mangune, Dionisio C. Ledres, Jr. And Violeta S. Corpus.
The Palace also appointed the following:
• Gaspar A. Cayat, Commissioner for Region 1 and the Cordilleras, National Commission for Indigenous Peoples
• Agosto B. Maglunsod, Director, NCIP
• Ruby C. Constantino, Director, Department of Health
• Thelma T. Vecina, Director, Department of Interior and Local Government
• Alfonso A. Maralli, Jr. Director, DILG
• Larry U. Sultan, Director, Department of Agriculture
• Zoraida O. Macandindang, Director, Department of Agrarian Reform
• Renante M. Sevilla, Director Department of Energy
• Salustiano T. Jimenez, Director, Department of Education
• Fely C. Simon, Director, Department of Finance, Bureau of Internal Revenue
• Nelly Nita N. Dillera, Deputy Director, Department of Trade and Industry
• Lucy Nenette D. Rojas, Director, Department of Justice
• Zorayda R. Sullano, Register of Deeds, Land Registration Authority, DoJ
• John B. Abejuro, Co-chairperson, Regional Development Council, Region V, NEDA

Dominguez calls anew for passage of tax reform packages

By Camille A. Aguinaldo, Reporter
FINANCE Secretary Carlos G. Dominguez III on Friday reiterated his call to Congress to pass the remaining packages of the government’s tax reform program this year.
“Last year, we were able to complete and to submit to Congress the succeeding packages of the tax reform programs. We hope after the mist that this electoral season clears that our legislators will find the wisdom of completing the tax reform program,” he said in a televised speech during the Rotary’s District Conference (DISCON) in Mandaluyong City.
“We’re hoping Congress will act later this year on the subsequent tax reform packages,” he added.
The House of Representatives has approved on third and final reading the Tax Reform for Attracting Better and Higher-Quality Opportunities (TRABAHO) bill as well as the packages 2 plus, 3 and 4 of the government’s Comprehensive Tax Reform Program (CTRP). All the measures remain pending in the Senate committee on ways and means, which conducted public hearings on some of the measures last year and during the Jan. 14-Feb. 8 session.
The TRABAHO bill or House Bill No. 8083 covers the reduction of corporate income tax and the rationalization of fiscal incentives. Meanwhile, package 2 plus, contained in House Bills No. 8677, 8618 and 8400, proposes to increase excise taxes on tobacco and alcohol products as well as increase the government’s share in miners’ revenues.
Package 3 or House Bill No. 8453 seeks to centralize valuation and assessment of real properties, while package 4 or House Bill No. 8645 proposes to simplify the tax regime for financial investors.
Senate President Vicente C. Sotto III has expressed doubts on the chances of the pending tax measures in the Senate reaching third reading approval in the 17th Congress.
Mr. Dominguez in his speech noted that the existing tax reform law has been successful in accomplishing both the government’s revenue and economic goals. He added that the tax reform packages would bring the government “robust revenue flow, make the system more equitable… and eliminate corruption with the assured transparency and help improve the ease of doing business.”
The Finance Secretary also assured that the Philippines would not fall into the “so-called debt trap” amid issues surrounding the China-funded projects, noting that the government has been “very conservative” and careful in its borrowing program.
“In 2018, our total project debt exposure to China was only 6/10s of 1% of our total debt, comparative to a project total debt in Japan which is 9% of our total debt. By 2022 when most financing from the Build, Build, Build program should have been accessed, our project debt to China will constitute around 4 1/2% of the total debt, while project debt to Japan will be around twice as large at 9 1/2 % of the total debt,” he said.
“There is no danger of us being drowned in Chinese debt. While we appreciate people warning us about the so-called debt trap. We certainly know how to avoid it,” he added.
China has provided a concessional loan financing for the $62.09 million Chico River Pump Irrigation Project and $211.21 million the New Centennial Water-Source Kaliwa Dam. The Davao-Samal Bridge Project in Mindanao and the Panay-Guimaras-Negros Inter-island Bridge in Western Visayas are two projects in the pipeline for possible Chinese funding.
Mr. Dominguez also raised the issue of the delayed enactment of the P3.757 trillion national budget for 2019, saying that the government has lost the opportunity to spend around P4.37 billion or around P740 million for January and February this year.
He said the period could have been spent to rollout projects, to build new infrastructure, and to upgrade the country’s health facilities.
“This is a clear example of how politicking could harm our people. As we rank among the best performing economies in this dynamic part of the world, growth is not a final goal in our efforts. We seek a more dynamic economy to bring down poverty and create more opportunities for our people,” Mr. Dominguez said.

2017 PSA survey shows 9 in 10 families have improved source of drinking water

By Christine Joyce S. Castañeda, Senior Researcher
NINETY-FOUR PERCENT (94%) of 24.354 million families have access to improved source of drinking water, according to the Philippine Statistics Authority’s (PSA) 2017 Annual Poverty Indicators Survey (APIS).
In the urban areas, 97.4% of families have improved source of drinking water as compared to 90.9% in the rural areas.
The World Health Organization and the United Nations Children’s Fund’s Joint Monitoring Report defined improved drinking water sources as “those that have potential to deliver safe water by nature of their design and construction.” These include piped water into dwellings; tube wells or boreholes; protected dug wells and springs; rainwater; and standpipes, among others.
The top three sources of drinking water were water refilling stations from “improved source,” which accounted for 37.7%, followed by piped water into dwellings at 20.3%, and tube wells or boreholes at 12%.
Relative to the Sustainable Development Goal (SDG) 6.1 which aims to “achieve universal and equitable access to safe and affordable drinking water for all” by 2030, drinking water was classified according to service levels, namely: safely-managed, basic, limited, unimproved and surface water.
Among the Filipino families, 27% used “safely-managed” drinking water “from an improved water source located on premises, available when needed and free from fecal contamination.”
Around 91% of the families have at least “basic” drinking water services in which water comes from improved sources and collection time would not take more than 30 minutes for a roundtrip including queuing.
Meanwhile, around 3% of families have “limited” drinking water services, in which they have access to improved water sources, but it takes them more than 30 minutes to collect water.
Around 5% have “unimproved” drinking water services, or those who collect drinking water from unprotected dug wells or springs.
Lastly, less than 1% collect water from surface water, or directly from rivers, dams, lakes, or canals.
By income groups, 7.1% and 14.9% of families in the first quintile — or those that make up the lowest 20% in terms of income — have “safely-managed” and “unimproved” sources of drinking water, respectively, as compared to the 48.5% and 0.5% in the fifth quintile or those families belonging to the highest 20% income group.
The 2017 round of APIS also includes a water quality testing module (WQT) which monitors the presence of Escherichia coli (E.coli) — a fecal indicator bacteria — in the drinking water.
Based on the results from 1,300 households sampled, around one in every three families have drinking water free from fecal contamination or with zero E. coli. Those in the urban areas likely have access to drinking water free from contamination at 62% compared to 39% in the rural areas.
SANITATION AND HYGIENE
The report also contained data on sanitation facilities. In particular, the PSA defines improved sanitation facilities as those “designed to hygienically separate excreta from human contact.” These include flush/pour flush to piped sewer systems, septic tanks or pit latrines, ventilated improved pit latrines, composting toilets or pit latrines with slabs.
This is in line with goal 6.2 of the SDG which aims to “achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations” by 2030.
Sanitation has been classified according to service levels, namely: safely-managed, basic, limited, unimproved and open defecation.
The PSA noted that 74% of Filipino families have at least “basic” sanitation services, defined as those sanitation facilities which are not shared with other households.
Meanwhile, 15% have “limited” sanitation or those with shared facilities while 6% have “unimproved” services or those who use hanging or bucket latrines or pit latrines without a slab or platform.
Lastly, 6% practice open defecation.
Sought for comment, Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an email that drinking water access is “positively correlated” with economic development.
“This means that as incomes increase, economic actors have potentially easier access to amenities such as drinking water sources. Since the Philippines has been consistently growing economically, its population is getting more access to various life improvements, one of which is access to drinking water,” he said.
The economist noted that the country is on track in achieving SDG 6.1, saying that “almost 100%” of families having access to “basic” drinking water is already a “great achievement.”
He added that the government should “carefully and strategically plan for sustainable and efficient drinking water sources for all Filipinos.”
“No Filipino in the near future should struggle because they do not have access to ample drinking water,” Mr. Asuncion said.
The APIS is a nationwide survey by the PSA designed to provide non-income indicators related to poverty at the national level.

El Niño seen to have minimal impact on economy

By Reicelene Joy N. Ignacio, Reporter
THE National Economic and Development Authority (NEDA) on Friday cited El Niño’s minimal impact on the economy, as it noted the agriculture sector’s relative contribution to economic growth.
“Agri sector, overall, it might not be that substantial…about 8% to 9% of GDP contributed,” Carlos Bernardo O. Abad Santos, NEDA Assistant Secretary for Planning and Policy, said in a press briefing on Friday.
“Initial estimates is -0.2 percentage points but also we want to emphasize we had very low agriculture growth last year. Less thunderstorms during El Niño…there may be benefits later on due to less thunderstorms,” Mr. Abad Santos said.
NEDA Secretary Ernesto M. Pernia, on the other hand, said his agency has yet to come out with better estimates on El Niño’s impact on GDP, adding that “the impact would be proportionate to the percentage contribution.”
“Maybe if there is some impact on inflation, it will still be below 4%,” he said.
He added: “Timing of imports will be right on the dot especially private importers are quite adept responding to perceptible shortages. They are better at estimating when it is profitable importing, when it is not.”
The NEDA chief said the Philippines has experienced worse El Niño in 2014 until 2016. “The lessons we had back then will be used to try to attenuate the wide-ranging impacts of this phenomenon. PAGASA’s early warning system and the government’s multi-sectoral approach are important since we all know that El Niño is a concern not only of the agriculture sector. The creation of the El Niño Task Force made government efforts more coordinated.”
For his part, Agriculture Secretary Emmanuel F. Piñol said his agency is not threatened by the possible effect of El Niño, with measures in place such as cloud seeding and provision of seeds to affected farmers, construction of small scale irrigation systems, loans, and provision of insurance.
The Department of Agriculture (DA) reported P1.33 billion in damage, affecting rice and corn plantations, as of March 19. On the other hand, the National Disaster Risk Reduction and Management Council (NDRRMC), on Wednesday reported P2.67 billion in damage, which DA has yet to confirm. Nevertheless, DA estimates more than 20 million metric tons (MT) in rice production this year.

Arroyo defends PHL deals with China

By Charmaine A. Tadalan, Reporter
HOUSE Speaker Gloria Macapagal-Arroyo said the Philippines’ cooperation with China should be seen as an opportunity, rather than a threat, amid doubts on the governments’ loan agreements.
“The Philippines actually has been investing in China for quite some time now because we have a very big Filipino-Chinese community, so I’m sure they can invest further in China. At the same time, China is also now investing more and more in the Philippines,” Ms. Arroyo told reporters on the sidelines of the Boao Forum for Asia (BFA) Annual Conference in Hainan, China on Thursday.
“So, this must be a win-win solution for the developing world. So what I can say is that China’s effort in opening up has really been a boost for the economies of the world, especially the developing economies. The world should look at China’s rise as an opportunity rather than a threat,” she also said.
The remarks followed scrutiny of the Chico River Pump Irrigation Project deal, signed on April 10, 2018, which was said to pledge Philippine “patrimonial assets” as collateral.
Associate Justice Antonio T. Carpio last week said Article 8.1 of the P3.6-billion deal allows China to seize “Patrimonial assets and assets dedicated to commercial use,” should it fail to pay its loans.
The Makabayan bloc of the House of Representatives said it is set to file on April 3 a declaratory relief petition, asking the Supreme Court to order the recall of the Chico River Pump Irrigation Project deal over its unconstitutionality.
Ms. Arroyo maintained that the country’s bilateral relations with China should be further strengthened, and cited China’s role in Philippine trade and infrastructure development.
“For instance, China has built bridges in the Philippines, it is building a dam for a water system and irrigation, and it will be building a major railroad. Not just one but two major railroads. So those are some of the ways by which China has benefited the Philippines,” Ms. Arroyo said, referring to the Chico River Project, the New Centennial Water Source-Kaliwa Dam project, the Subic-Clark Railway Project in Luzon and Mindanao Railway Project.

PCC to look into cold-storage cartel in onion industry

By Janina C. Lim, Reporter
THE Philippine Competition Commission (PCC) said it will look into the Department of Agriculture’s (DA) complaint on the alleged cold-storage cartel in the onion industry.
“PCC will look at the alleged refusal of storage access to onion farmers in favor of large traders and will also evaluate if there are business agreements that are anticompetitive or enablers of cartelistic behavior,” the anti-trust agency said in a Friday statement.
“Specifically, PCC will examine whether there are competition concerns in the onion industry such as restriction of storage space or price manipulation by cartels, or whether the storage concerns are natural consequences of supply conditions,” it added.
Cold storage facilities form an important part in the value chain to prolong the shelf life of onions after harvest season.
On March 20, the DA requested the PCC and the National Bureau of Investigation (NBI) to investigate reports that trading firms have closed down four major cold-storage facilities in an attempt to compel farmers to sell at low prices.
The DA recently suspended the importation of bulb onions pending the results of the investigation of both agencies. PCC said the investigation should not prevent the DA from exercising its own judgment in suspending or allowing importation.
PCC also proposed signing a memorandum of agreement with the DA “to harmonize the objectives of both agencies of fostering fair market competition and promoting agricultural growth.”
Republic Act 10667 or the Philippine Competition Act of 2015 prohibits businesses from forging anti-competitive agreements which, among others, restrict competition in price and other components related to the trade.
The competition law punishes those engaged in cartels with a fine of P100-P250 million and imprisonment of up to seven years.

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