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Meat processors scrambling to save holiday sales amid provincial bans

THE meat processing industry is expecting at least a 5-10% reduction in the value of its annual production because of restrictions on processed meat products in selected provinces.

Philippine Association of Meat Processors, Inc. (PAMPI) Vice-President Jerome D. Ong said in a briefing Friday the consumer scare from the reported outbreak of African Swine Fever (ASF) in parts of Luzon will take its toll on the P300-billion meat industry.

“…maybe the P300 billion sector will shrink from anywhere between five to 10%… It will go down to about P270-P285 billion, rough estimate, from which will hopefully recover,” he said.

“Yung dalawang lalawigan na nag-declare ng total ban (the two provinces that declared a total ban), Cebu and Bohol, contribute about 10-15% of national sales ng lahat ng (for all types of) processed meat. So kung hindi mali-lift yung ban, yun yung ine-expect nating minimum na impact sa atin (If the ban is not lifted, that is the impact we are expecting at minimum),” he added.

The governments of Cebu and Bohol have declared a total ban on pork and pork products due to the reports of an ASF outbreak.

PAMPI has called the ban “unnecessary and unwarranted,” claiming the raw pork used by local processors-90-95% of which are imported-only come from ASF-free sources.

“The national economy will be seriously damaged if LGUs (local government units) persist in imposing an unnecessary and unwarranted ban,” PAMPI said.

Mr. Ong said the meat processing industry has 150,000 direct employees, and at least 25% of the meat consumption of Filipinos is from processed meat. He said a total ban on meat products will severely harm both the industry and consumers.

“So it’s not something you can just take away and say ‘Okay lang,’” he said.

The group also said on Friday that several PAMPI members have decided to reduce production for the upcoming Christmas season because of the uncertainty over meat distribution.

Mr. Ong, who is also president and chief executive offer of CDO Foodsphere, Inc., said the company is reducing its production of Christmas ham by 15-20% this year. This is also expected to reduce hiring of seasonal workers.

“If the situation persists, (even) year-round products will be affected,” he said.

PAMPI President Felix O. Tiukinhoy, Jr. added many processors are now “at a loss” on how to plan for the upcoming holidays.

“If these bans persist, should we not produce the Christmas products for the Philippines? …[M]ost of us are still down on production for Christmas ham because we do not know if we will be allowed to push this across provincial boundaries,” he said.

The Department of Trade and Industry and the Department of Agriculture have said that pork that has been certified by the National Meat Inspection Service (NMIS) and distributed by “trusted brands” — including meat used by processors — are safe to consume.

“I’d like to make this appeal to the President to help us make the national government (align policy) with the LGUs, kasi hindi magkakagulo (because there would be no confusion) if there is collaboration coming from the different parts of the government,” Mr. Tiukinhoy said. — Denise A. Valdez

BoI expecting ‘small’ benefit from trade war, more steel investment

THE Board of Investments (BoI) said it is expecting a “small” benefit from the US-China trade war but is working to capture more investment from relocating firms seeking to evade tariff coverage, particularly the steel industry.

“We will benefit. It will be small compared to other countries — that’s what we need to fix,” BoI Executive Director of Industry Development Services Ma. Corazon Halili-Dichosa said at the Philippine Institute for Development Studies’ 5th public policy conference Thursday.

She cited a World Trade Organization study showing that among ASEAN nations, the Philippines is expected to be the least affected by tariff measures imposed by the US and China.

But Ms. Dichosa said that the Philippines competes with ASEAN member countries exporting similar products to the same economies — the US, EU, China, and Japan.

Companies are fleeing the China in response to US tariffs, but a Nomura study found that most are transferring to larger export economies like Vietnam.

Ms. Dichosa said that BoI has been working to attract more of the investment. She expects the electronics sector to benefit most if the industry extends beyond assembly services to higher value services.

She also expects more investment in steel, which is among the first industries to be impacted by US trade war tariffs, particularly from Chinese steelmakers.

“The Chinese think that ‘maybe if we go to the Philippines and export to the US,’ that will actually solve their problems in terms of accessing the US market for steel products,” she added.

Ms. Dichosa said that ASEAN countries attracting relocating businesses have strong infrastructure and logistics.

“In solving the trade deficit and to see how we can benefit more from the US trade war, we think the best strategy is a robust industrialization strategy,” she said.

She also noted that a Philippine-US free trade agreement is in the works.

Noting that the Philippines will not follow the US and China in adopting protectionist measures, Ms. Dichosa said she backed seamless global trade through the lowering of tariffs, with the exception of some tariffs to “level the playing field.”

The Department of Trade and Industry has recently imposed special safeguard duties on imported cement. — Jenina P. Ibañez

DoF says rice still effectively protected, hampering downstream sectors

THE finance department said rice effectively continues to enjoy tariff protections, forcing industries that are downstream from rice, such as those that depend on it for feed, to be more efficient to compensate for increased costs.

“Rice continues to enjoy effective tariff protection not enjoyed by other sectors even with the removal of quantitative restrictions (QRs),” it said in an economic bulletin released Friday.

Effective protection rate (EPR) refers to how trade policy and tariffs affect an industry.

“Rice has a 44.4% effective protection rate which means that for every peso of value added, it is accorded a 44.4% price edge over the competing import,” the report said.

As for other agricultural products, corn has an EPR of only 5.8%. it said.

“Unfortunately, the negatively-protected downstream sectors will need to be super-efficient to survive import competition,” it said.

The report said hog farmers needs to be 13.3% more efficient than their competitors overseas while cattle farmers need to be 7.2% more efficient.

“They have no choice but to buy more expensive inputs from rice and prepared feeds,” it said.

Meanwhile, the slaughtering, meat packing, and meat preservation industries

also need to to improve their efficiency to survive global competition.

“The Department of Agriculture (DA) will need to implement rice productivity programs to enhance the sector’s competitiveness. Only when the productivity has increased can the country unwind the high protection and enable downstream industries and consumers some breathing space,” it added.

The Rice Tarrification Law, enacted in March, has removed quantitative restrictions on imported rice from Southeast Asia and imposed a 35% tariff instead. The law also allots P10 billion a year in funding from tariffs to provide seed, machinery, credit and technical assistance to farmers.

The average farmgate price of palay eased 4.4% year-on-year in the fifth week of August to P16.68 per kilogram (kg). In some areas the buying price for palay quoted by private traders has fallen to as little as P7 per kilo, with many traders preferring to source their supply from imports.

The government has resorted to increasing the support price paid to farmers by the National Food Authority (NFA), increasing the NFA’s procurement budget and roping in local governments to buy palay, or unmilled rice, diectly from farmers, because of traders’ unwillingness to pay a “fair” price..

Socioeconomic Planning Secreatry Ernesto M. Pernia said Thursday that the six-month-old law will have to “play out” first and cited the need to wait for market conditions to normalize.

“Rice tariffication is… we just need to let it play out… to normalize,” Mr. Pernia told reporters in chance remarks when asked if the law has been effective.

He also said the farmers are being supported by the P10-billion-a-year Rice Competitiveness Enhancement Fund (RCEF).

“The farmers are complaining, but they are getting subsidy. They are getting subsidy… (RCEF) is a subsidy. They don’t have to pay for that. There’s also a part loan I think. But that is something new. The earlier P10-billion allocation (RCEF) was pure subsidy,” he said.

To keep retail prices low, the NFA said last week that it plans to release 3.6 million bags of imported rice onto the market until early October while increasing its busying price for palay to P19 from P17. — Beatrice M. Laforga

Road user tax bill seen raising additional P8.12-B in first year

A MEASURE gradually increasing the road users’ tax filed in the House of Representatives is expected to generate P8.12 billion worth of revenue in the first year of implementation, a key legislator said.

House Bill No. 4695, or the “Motor Vehicle Road User’s Tax Act,” according to Rep. Jose Ma. Clemente S. Salceda of the second district of Albay, hopes to update Motor Vehicle Users’ Charges, which have not been revised since 2004.

“This bill actually improves the progressivity of the current MVUC law. First, it provides relief for motorcycle owners, who, because of traffic, have been forced to use motorcycles. These people are not rich, and cannot afford cars. Actually, there are more motorcycle owners than there are owners of all other vehicles under MVUC combined, so this will also reduce bureaucratic strain.” Mr. Salceda was quoted as saying in a statement Friday.

He said the House version is expected to bring in P8.12 billion in 2020, P9.62 billion in 2021, P10.57 billion in 2022, P28.44 billion in 2023, and P32.61 billion in 2024.

Fifty percent of the proceeds will be earmarked for the Universal Health Care programs, under Republic Act No. 11223; while the remaining half will be allocated for public utility vehicle modernization until 2024.

Revenue generated beginning 2025 will be used entirely for UHC programs.

The bill among others proposes to increase MVUC rates to P2,912 on passenger cars with gross vehicle weight (GVW) of up to 1,600 kilogram (kg) in the first year of implementation; P6,552, if weighing 1,600-2,300 kg, P14,560, if over 2,300 kg.

At present, rates range from P1,400-12,000, depending on weight and age of the passenger car for private use; and P900-5,000, if for hire.

Utility vehicles weighing up to 2,700 kg will be levied P3,640 and an additional P0.73 per 100 kg over 2,700 kg; while motorcycles with engine displacement of 400 cc and above with sidecars will be charged P546. Without sidecars, the charge is P437.

This is higher than the P2,000 with additional P0.40 per 100 kg in excess of 2,700 kg for utility vehicles; and the P240 and P300 rates slapped on motorcycles without and with sidecars, respectively.

The bill also provides for the following rates for large vehicles: buses, P3,276, if weighing 4,500 kg with additional P45 per 100 kg above 2,700 kg; trucks and trailers, P3,276, if weighing over 4,500 kg with additional P0.44 per 100 kg over the GVW.

The present system imposes the following rates for trucks and buses: P1,800, plus and additional P0.24 per 100 kg in excess of 2,700 kg.

“While I am convinced that this is a progressive and equitable bill, I am very open to further improvements to this proposal. My committee will consult all the relevant stakeholders.” Mr. Salceda said. The measure forms part of the government’s comprehensive tax reform program.

President Rodrigo R. Duterte in his fourth State of the Nation Address asked the 18th Congress to pass the remaining CTRP packages, particularly the proposal to reduce corporate income tax and rationalize fiscal incentives, increase excise tax on alcohol products and e-cigarettes, centralize real property valuation and assessment and simplify the tax structure for financial investment instruments.

The government has so far passed Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Law, which slashed personal income tax and increased or added levies on several goods and services; RA 11213, the Tax Amnesty Act, which grants estate tax amnesty and amnesty on delinquent accounts left unpaid even after being given final assessment; and RA 11346, which will gradually increase excise tax on tobacco products to P60 per pack by 2023 from the current P35. — Charmaine A. Tadalan

Philippines seeking to join APEC data privacy system

THE Philippines has applied to join the Cross-Border Privacy Rules (CBPR) system to adopt privacy standards in order to ease data exchange across the Asia-Pacific, the National Privacy Commission (NPC) said in a statement Friday.

The Asia Pacific Economic Cooperation (APEC) CBPR is a voluntary certification mechanism that allows member companies to safely transfer data across APEC economies.

“When businesses become CBPR-certified, they may then transfer personal data in a safe and seamless manner across other certified companies operating in the APEC region, which accounts for about half of global trade. For Philippine companies, this means gaining entry to a much larger market at reduced compliance costs with respect to cross-border data transfers,” Privacy Commissioner Raymund E. Liboro said.

NPC last month submitted the Philippines’ letter of intent to join the system ahead of a meeting by the Electronic Commerce Steering Group (ECSG) in Puerto Varas, Chile.

The Philippines needs to nominate at least one accountability agent to ensure that its certifications are recognized in all member jurisdictions.

NPC said compliance offers both a competitive advantage among companies with the certification as well as trust from their consumers. To help companies gain consumer trust, the CBPR requires them to adopt transparency and a streamlined customer complaint process.

Trade Secretary Ramon M. Lopez in his endorsement letter emphasized how this certification can boost links between Philippine and global companies.

“This would provide our micro, small and medium enterprises opportunities for growth by gaining access across APEC markets and participating in global supply chains which rely on the free movement of data across borders,” he said.

ECSG Chairperson Shannon Coe expects the CBPR certification to improve Philippine-US relations.

“US companies rely on the favorable market and skilled workforce in the Philippines to process data throughout the Asia-Pacific region. The Philippines’ participation in the CBPR System will strengthen the business case for U.S. companies looking to invest in the Philippines, through our bilateral commercial relationship,” she said.

After approval from the Joint Oversight Panel, the Philippines will be the ninth economy to formally join the APEC CBPR, after the US, Japan, Canada, South Korea, Singapore, Mexico, Australia, and Chinese Taipei. — Jenina P. Ibañez

San Miguel breaks ground on P6.7-B Iloilo brewery

SAN MIGUEL Brewery Inc. (SMB) on Friday broke ground on its P6.7-billion brewery that is expected to jump-start development in Leganes, a suburb in the north of Metro Iloilo City.

San Miguel Corp. (SMC) president and chief operating officer Ramon S. Ang, Senator Franklin M. Drilon, Iloilo Governor Arthur D. Defensor Jr., Leganes Mayor Vicente P. Jaen II and other officials led the ground breaking Friday in the Leganes barangay of Gua-an.

The 40-hectare facility is expected to be completed in two years. It will become SMB’s third production site in the Visayas apart from facilities in Mandaue and Bacolod Cities.

SMB President Roberto N. Huang said that the completion of the facility will allow more convenient and efficient delivery of San Miguel products to the region.

“The management believes that putting up a facility strategically located in IIoilo is instrumental in achieving our vision that is to lead the growth of beverage industry,” SMB president Roberto N. Huang said in his speech.

Mr. Jaen said Leganes has long been awaiting investment.

“San Miguel will… be the driver of other parts of our agenda which is providing quality livelihood, and prioritizing the needy,” he said.

The mayor hopes Leganes can do its part to help Iloilo attract investment and develop a reputation for “worry-free business.”

Mr. Drilon said that the new SMB facility in Iloilo will generate more economic activity and sustain the momentum of economic growth.

“The emergence of shopping malls, hotels, restaurants… in the city is proof of Iloilo’s growing economy and consumer confidence. But this cannot be sustained unless we expand our economy here in with new investments like SMB,” he said.

Meanwhile, Mr. Ang promised to invest more in Iloilo based on his positive experience in setting up the brewery.

“Dito sa Iloilo, napakabuti ng mga politicians dito from the senators, governors, congressmen, mayors, councilors and barangay. Ang SMB pwedeng magtayo ng maraming investments dito. Nakita ko very progressive itong Iloilo, napagaling na negosyante, napakasipag ng mga tao dito. Makakaasa po kayo na we will invest more in Iloilo (Iloilo politicians are performing well… SMB can make more investments here. Iloilo is very progressive with skilled businessmen and a hard-working labor force. You can count on more investment from us),” he said. — Emme Rose S. Santiagudo

SEC approves SMC’s P10-billion fixed-rate bond issue

SAN MIGUEL Corp. (SMC) said Friday that it obtained approval of the Securities and Exchange Commission for a P10 billion fixed-rate bond issue that forms part of its P60-billion shelf registration.

The permit to sell dated Sept. 19, 2019 covers the five-year Series H bonds which it it will issue on Oct. 4, 2019. The bonds, which are due in 2024, have a fixed rate of 5.55%.

The offer period will start at 9:00 a.m. on Sept. 23, 2019 and will end at 5:00 p.m. on Sept. 27, 2019, or such other date as may be mutually agreed between the company and the joint lead underwriters and bookrunners.

The bonds will list on the Philippine Dealing & Exchange Corp. on Oct. 4.

Based on its offer supplement, SMC plans to use the net proceeds of the issue either to fund the redemption of its outstanding preferred shares or for the refinancing or re-denomination of an existing loan obligation.

Part of the proceeds of the offer may be used to repay the P6,782,115,000 bridge loan that the company may avail of from BDO Unibank, Inc. to initially fund the redemption of its Series 2-B preferred shares.

Part of the proceeds may also be used to repay the P3,092,035,000 short-term loan obligations of the company with Rizal Commercial Banking Corp.

The bond offering is the fourth and final tranche to be issued from SMC’s P60-billion fixed rate bonds shelf registration. The bonds will be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000. They will trade on the secondary market in P10,000 denominations.

On Friday, SMC rose 0.17% to close at P179.10. — Victor V. Saulon

Pepsi PHL board approves exit from snacks business

THE Pepsi-Cola Products Philippines, Inc. board has approved a plan to discontinue its snacks business “to focus on and strengthen” its core business lines, the company told the stock exchange Friday.

Aside from the focus on its core business, the licensed bottler of PepsiCo, Inc. and Pepsi Lipton International Ltd. in the Philippines also announced a number of corporate appointments during the board’s regular meeting on Sept. 19.

Oscar S. Reyes, former president and chief executive officer of Manila Electric Co., was appointed chairman of the board’s compensation and remuneration committee as well as the chairman of its nominations and governance committee.

The board also approved the appointment of Rafael M. Alunan III as vice-chairman of the board of directors. Samir Moussa was elected as a member of the board of directors.

Their election or appointment took effect on Sept. 19.

The company manufactures a range of carbonated soft drinks, non-carbonated beverages and snacks that include brands like Pepsi-Cola, 7Up, Mountain Dew, Mirinda, Mug, Gatorade, G-Active, Tropicana/Twister, Lipton, Sting, Propel, Milkis, Aquafina, Premier, Let’s Be, and Cheetos.

The company competes in the ready-to-drink, non-alcoholic beverage and snacks market across the Philippines. The market is highly competitive and competition varies by product category.

The bottler earlier said that it believes the major competitive factors include advertising and marketing programs that create brand awareness, pack/price promotions, new product development, distribution and availability, packaging and customer goodwill.

It faces competition generally from both local and multinational companies across its nationwide operations.

On Friday, shares in the company fell 0.48% to close at P2.08. — Victor V. Saulon

JG Summit names head of analytics arm DAVI, digital VC unit

JG Summit Holdings, Inc. is tapping a former executive of a PLDT, Inc. company to handle two of its data analytics and digital companies.

The conglomerate said in a statement Friday it appointed Elmer M. Malolos as chief executive officer of Data Analytics Ventures, Inc. (DAVI) and JG Digital Equity Ventures, Inc. (JG DEV).

In joining DAVI, Mr. Malolos is expected to create a digital rewards program for JG Summit’s consumer-oriented businesses, while in JG DEV, he is tasked to scouting for digital ventures and startups that the group can invest in to help “disrupt” the business model of its core businesses.

“Jojo’s mandate is to build cutting-edge digital enterprises founded on the group’s massive data analytics infrastructure,” JG Summit President and Chief Executive Officer Lance Y. Gokongwei was quoted as saying in the statement.

He said Mr. Malolos must lead the digital financial services business of the company to propel the expansion of users of basic banking and financial services within the JG Summit group and Robinsons Retail.

“He is also tasked to scope out digital investment opportunities that will provide long-term strategic value to the group,” Mr. Gokongwei added.

JG Summit has said it wants to invest heavily in digital technologies, noting it is a “key pillar” in shaping the future of the company. It has already invested at least $40 million in technology startups before it announced in May the formation of JG DEV, into which it is pouring $50 million.

Before being tapped for JG Summit’s data analytics and digital plans, Mr. Malolos was the advisory director of Wing (Cambodia) Ltd Specialised Bank, and helped it become the leading mobile financial services provider in Cambodia.

He is also a member of the Southeast Asia Advisory Council at Women’s World Banking, a nonprofit organization advocating for financial inclusion of low-income women in the region.

His other stops were at consultancy firm Access One Billion where he was a managing partner; data analytics firm Cignifi, Inc. as a managing director; Smart Communications, Inc. subsidiary Smart Hub, Inc. as president and chief executive officer; and PLDT and Smart as executive management consultant. — Denise A. Valdez

Rockwell Land lengthens term of Metrobank facility by 3 years

ROCKWELL Land Corp. is extending the expiration date of its long-term debt which it has been using to finance capital expenditures.

In a disclosure to the stock exchange Friday, the property developer said its board approved on Thursday moving the expiration date of its P5-billion long-term loan facility to Dec. 31, 2025 from Dec. 10, 2022.

“The proceeds of the loan will be used to fund capital expenditures, company acquisitions and investments,” it said.

In 2016, the company announced it was taking on the loan facility of up to seven years with Metropolitan Bank and Trust Co. It did not provide details of the long-term debt.

Rockwell Land earlier said it is allocating P12-14 billion for capital expenditures this year, which it will use to support several expansion projects.

Some of these are the Benitez Suites in Quezon City; the second tower of East Bay Residences by Rockwell Primaries in Sucat, Muntinlupa; and an eight-tower, mid-rise residential complex in Bacolod.

It is also launching in the fourth quarter Rockwell South at Carmelray in Canlubang, Laguna, which is the company’s first horizontal development project. It will be joining a joint venture with the Yulo family’s Carmelray Property Holdings, Inc. and San Ramon Holdings, Inc. for the project.

With these developments rolling out this year, Rockwell Land said it is expecting to raise P10 billion in sales by the end of 2019.

“After several launches in the second half of 2019, we are optimistic about more geographic growth in the years after that will allow us to create new Rockwell communities in new markets…,” Rockwell Land President and Chief Executive Officer Nestor J. Padilla said in a briefing in May.

Rockwell Land rose 0.85% or P0.02 to P2.38 on Friday. — Denise A. Valdez

Phinma Petroleum contractor Century Red withdraws from SC55

PHINMA Petroleum and Geothermal, Inc. (PPG) said Friday that one of the co-contractor partners of its subsidiary in an exploration service contract in offshore Palawan had assigned its interest in the project to another exploration firm.

PPG, whose change of name to ACE Enexor, Inc. was approved by shareholders earlier this week, told the stock exchange of Palawan55 Exploration and Production Corp.’s receipt of the deed of assignment from Century Red, Pte. Ltd.

Century Red assigned its 37.7% interest in Service Contract (SC) No. 55 to Palawan55 subject to the approval of the Department of Energy (DoE).

“Century Red is effectively withdrawing as co-contractor in SC 55, leaving Palawan55 and Pryce Gases, Inc. as the remaining co-contractors,” PPG said.

It said upon the DoE’s approval of the assignment, the participating interest of Palawan55 in SC 55 will increase to 75%. Pryce Gases, a unit of listed firm Pryce Corp., holds the rest.

Based on the company’s information statement submitted to the Philippine Stock Exchange last month, SC 55 is one of four service contracts in which PPG intends to maintain its participation in the next 12 months.

It said in the event that these contracts are successful, the company will reap revenue that will more than offset losses incurred. The service contracts are in the exploratory stage, that is, without any commercial production.

On Aug. 9, the SC 55 consortium notified the DoE of its entry into the appraisal period of the project effective on Aug. 26. The co-contractors committed to drill one deep-water well within the first two years of the appraisal period.

After the reinterpretation of certain seismic data outside of the current study area, they may undertake a new 3D seismic program to mature other prospects within SC 55 to drillable status. The SC 55 consortium submitted an indicative appraisal work program to the DoE to support this commitment.

Palawan55 generated SC 55’s final 3D seismic reprocessing report, which significantly upgraded the quality and resolution of the seismic data that were originally separately acquired and processed by former operators in 2012.

In the next 12 months, Palawan55 will undertake drilling scenario planning and budgeting, definitive well planning and well drilling. It will also conduct reinterpretation of vintage seismic data.

PPG said it has long-term plans of bringing in a strategic partner with the financial and technical capability to develop its petroleum assets.

“As customary in the oil exploration and production industry, it is likely that the strategic partner be brought in through a farm-out of a portion of the interest of Palawan55 in SC 55,” it said in its information statement.

On Friday, PPG rose 5.78% to P9.70. — Victor V. Saulon

Errors prompt DoJ to stop arresting convicts

THE Department of Justice (DoJ) has stopped re-arresting convicts illegally released for good conduct after spotting errors in the list of convicts submitted by the Bureau of Corrections, according to DoJ spokesman Markk Perete.

The agency has identified 40 inmates of about 2,000 that should not have been included in the list that should be re-arrested because they have been pardoned or paroled, he told DZMM radio.

The arrests will resume after the list is cleaned up and the names are verified, Mr. Perete said.

The arrests were suspended to ensure “pinpoint accuracy,” Cabinet Secretary Karlo Alexei B. Nograles said at a separate live-streamed briefing.

President Rodrigo R. Duterte earlier ordered felons convicted of heinous crimes to surrender or they will be hunted down “dead or alive.”

The convicts should not have been released because they were ineligible under the law.

Police, however, will continue to accept convicts who surrender, deputy spokesman Lieutenant Colonel Kimberly Molitas said at a separate briefing.

The president has fired his prison chief Nicanor E. Faeldon for allowing their release and ordered the Ombudsman to investigate prison officials for corruption.

The Ombudsman has suspended at least 30 Bureau of Corrections officials allegedly involved in the anomaly.

Mr. Perete said 1,717 of the 1,914 convicts have surrendered. — Vann Marlo M. Villegas, Marc Wyxzel C. Dela Paz and Charmaine A. Tadalan