THE Philippines “gave up its sovereignty” in negotiating the water privatization contracts in 1997 at a time when the government could not improve its water distribution system using its own resources, Finance Secretary Carlos G. Dominguez III said.
“When the contracts were bid out in 1997, the Philippines was paying 700 basis points over the benchmark for its loans, 7% over the loans. Right now, we are paying less than a third of 1% over the loans. Our situation has changed. Apparently in 1997, in order to attract bidders, the government gave up its sovereignty,” Mr. Dominguez said at an event in Makati City Thursday.
He said that the water contracts in 1997, which are being reviewed, led to the “surrender” of the government’s duty to protect the people.
“If you really read the contracts… the government appoints a regulator and that regulator, together (with the water companies), we’re supposed to come up with the rates. If I don’t agree with the regulator, the concessionaire has the option to go to arbitration… in Singapore to decide for us, and the government is prohibited from making any comments. That is a surrender of the government’s obligation to protect its (people).. so we are saying that’s the fundamental problem… That’s what we are looking at the moment,” he said.
Asked on the status of the water agreements with Manila Water Co., Inc. and Maynilad Water Services, Inc., Mr. Dominguez told reporters that “the case is still under discussion.”
Justice Secretary Menardo I. Guevarra has said that consultants from the Asian Development Bank (ADB) will help the government revise the economic and financial terms of the agreements.
Mr. Dominguez said contract reviews are normal.
“We are reviewing it in order to update the contracts to the new reality that we are in now,” he added.
Mr. Guevarra, whose department is leading the review, is waiting on the input of the Finance department, especially on the financial and economic terms.
President Rodrigo R. Duterte said last week that the government will offer new contracts to Maynilad and Manila Water without “onerous” provisions, under threat of nationalization if they do not accept. — Beatrice M. Laforga
PHILIPPINE STOCKS continued to decline on Thursday as investors chose to flock to Wall Street amid lingering concerns following the signing of the phase one trade deal between United States and China.
The bellwether Philippine Stock Exchange index (PSEi) lost 11.22 points or 0.14% to close at 7,653.18 on Thursday, while the broader all shares index dipped 8.30 points or 0.18% to 4,531.
“Investors continued to pour money in the US market after President Donald Trump signed the first phase of a trade pact with China,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.
US and China successfully moved closer to resolving its two-year conflict over tariffs after signing the first segment of its trade deal on Wednesday. US Vice-President Mike Pence also told Fox Business Network that the two countries have already started talks on its phase two deal.
Following the Washington signing ceremony on Wednesday, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices all climbed 0.31%, 0.19% and 0.08%, respectively.
Most Southeast Asian stock markets also gained ground on Thursday after the United States and China signed an interim trade deal.
However, despite the signing of the trade deal, investors were cautious as China’s commitments seem “neither ground-breaking nor sufficiently binding in the specifics,” Mizuho analysts said in a note.
“The big picture is that ‘Phase-1’ is a partial deal that merely pauses the US-China trade conflict, buying time to sort out differences, but far from a lasting resolution,” the analysts said, as reported by Reuters.
Trade-sensitive Singapore shares edged higher amid gains in financial and telecommunication firms. DBS Group Holdings Ltd. added 0.7% and heavyweight Singapore Telecommunications Ltd. jumped 1.2%.
Meanwhile, Indonesia’s benchmark index swung between gains and losses, while Thai shares ticked higher.
Back home, more sectoral indices recorded losses on Thursday, led by property, which dropped 27.13 points or 0.67% to 3,997.13. Industrials shed 46.60 points or 0.49% to 9,336.62; holding firms erased 33.45 points or 0.44% to 7,460.01; and services slipped by 1.11 point or 0.07% to 1,554.94.
The advancers were financials, which added 18.59 points or 1.03% to 1,821.31, and mining and oil, which gained 78.95 points or 0.99% to 8,048.41.
Value turnover totalled P6.44 billion with 1.04 billion issues changing hands, from Wednesday’s turnover of P7.04 billion and 667.02 million issues.
Declining stocks beat those that increased, 112 against 89, while 32 names ended unchanged.
Foreign investors remained sellers on Thursday, but net outflows dropped to P478.39 million from the P883.99 million seen on Wednesday. — Denise A. Valdez withReuters
THE PESO weakened on Thursday even after the signing of the phase one deal between the United States and China, suggesting that markets may not be fully convinced of the positive impact of the landmark agreement on tariffs between the two countries.
The local unit finished trading at P50.831 per dollar on Thursday, weakening by 11.60 centavos from its Wednesday close of P50.715-to-a-dollar, according to data from the website of the Bankers’ Association of the Philippines.
The peso opened at P50.63 against the greenback. Its intraday low was at P50.888, while its strongest showing for the day was at P50.62 versus the dollar.
Dollars traded dipped to $1.224 billion from $1.25 billion on Wednesday.
A trader and an analyst said the peso’s weakness came as markets were not yet “convinced” on the impact of the signed phase one deal between Washington and Beijing.
“The peso depreciated as market optimism waned on news that current US tariffs on Chinese goods will remain until a second phase trade deal be signed despite the recent signing of a first phase trade deal,” a trader said in an e-mail.
According to UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion, the market seemed to be “not so convinced yet of the potential positive impact of the phase one deal between the US and China.”
“Clarity and feasibility of the features of the said trade deal are some of the market qualms. But still, the peso’s decline may have come from the mere preference for the yuan, at this point,” he said in a text message.
Reuters reported that US Vice-President Mike Pence said on Wednesday that the discussions regarding the phase two deal between the world’s two biggest economy are already on track.
“We’ve already begun discussions on a Phase 2 deal,” he said in an interview with Fox Business Network hours after the initial trade pact which defused some tensions but has left some major issues unresolved.
Key officials from the US previously said they will review the removal of more tariffs only after the elections in November.
The yuan firmed in offshore markets on Thursday after the signing of the phase one deal which will roll back some tariffs imposed and will also increase China’s purchase of US products. However, most of the levies will remain and a number of other sore spots remain unresolved.
The offshore yuan inched up by 0.1% to 6.8855 per dollar on Thursday.
The trader expects the peso to range within the P50.75 to P50.95 level today, while Mr. Asuncion said the local unit could play around P50.70 to P51.00. — L.W.T. Noble withReuters
THE Department of Trade and Industry (DTI) is offering P50 million in loans to businesses that will either rebuild structures damaged by Taal Volcano’s eruptions or relocate there.
The special window for microfinance program is part of a P3-billion fund launched in 2017 to provide an alternative to loan shark’s predatory rates, Trade Secretary Ramon M. Lopez told reporters on Thursday.
Batangas province, where Taal volcano is located, has been placed in a state of calamity.
“We have about P50 million for a start to allocate to businesses that would like to borrow,” he said.
The agency is also offering P7,000 to P10,000 in livelihood grants per business, Mr. Lopez said.
“We are now preparing a livelihood assistance for those who would like to revive their small business,” he said, adding that the program would focus on small and micro-businesses.
The Trade department in December said it would produce livelihood kits for calamity-affected areas.
Assistance to businesses affected by the Taal calamity will be offered in the form of cards that function like gift cards, instead of goods. This would prevent good from expiring and logistics complications, Mr. Lopez said.
The livelihood assistance cards can be used at partner groceries and shops. Grantees will be required to report their sales to the agency, which will also offer livelihood training programs.
About 40% of companies in nearby areas suspended operations for one to two days, while the majority of companies continued operations, Mr. Lopez said. — Jenina P. Ibañez
A QUEZON CITY court ordered the local government to pay P6.27 million in damages to 57 relatives of the victims of a dump site tragedy that killed about 300 people two decades ago.
In a 133-page decision dated Oct. 30 but released only on Wednesday, the court ordered the city to pay P110,000 to the legal heirs of each victim of the Payatas dump site tragedy. Quezon City must also pay P50,000 each in moral damages, P10,000 in exemplary or corrective damages and P100,000 in lawyer’s fees.
The amount is much lower than the P3.3 million claimed by each plaintiff.
The court said the Quezon City’s failure to properly maintain, manage and operate a dump site led to the collapse of the upper part of the garbage mountain that killed about 300 people.
It noted that despite complaints about the rising pile of garbage that resulted in a temporary closure, the local government reopened the site for the entire Metro Manila.
The “improper and irresponsible” dumping of waste that created a “mountain-like pile of garbage” was the cause of the deaths and loss of properties, it said.
“The mountain-like trash in itself is a testament of the city government’s gross negligence in the management and operation of the dumpsite,” the court said.
Quezon City earlier said the plaintiffs had “willingly and voluntarily assumed the risk by refusing to be relocated to safer places,” saying it was their own negligence that caused the tragedy. — Vann Marlo M. Villegas
THE Department of Justice (DoJ) has endorsed the indictment of President Rodrigo R. Duterte’s former police chief for corruption.
In a statement, DoJ said prosecutors had found probable cause to charge retired police chief Oscar D. Albayalde for failing to enforce the dismissal of 12 rogue cops.
The DoJ also recommended the indictment of the 12 policemen accused of recycling illegal drugs seized from legitimate police operations in 2013.
The findings against Mr. Albayalde will be forwarded to the Office of the Ombudsman, which has jurisdiction over corruption cases, the agency said.
Prosecutors dismissed falsification, negligence and misappropriation complaints against Mr. Albayalde, Undersecretary Markk L. Perete told reporters in a group message — Vann Marlo M. Villegas
A NEW evacuation center in Manaoag, Pangasinan has been completed at a cost of P34.74-million, the Department of Public Works and Highways (DPWH) said on Thursday. The project covers “the construction of a two-storey accommodation building, a separate toilet and bathroom building for male and female, a three-storey laundry/drying area and water tank building, and three (3) single-storey buildings for the generator, garbage disposal, and pump room,” DPWH Region I Director Ronnel M. Tan said in his report submitted to the office of Secretary Mark A. Villar. A single-storey office building for the Ilocos Regional Disaster Risk Reduction and Management Council and Office of the Civil Defense has also been built nearby. DPWH said the project features green engineering such as solar-powered light posts, and planting of trees. “This evacuation center complete with all the necessary facilities on a 3,296-square meter land area donated by the local government of Manaoag will serve as a temporary home for displaced families in the occurrence of typhoons and other calamities,” Mr. Villar is quoted in the statement. The evacuation center, apart from housing residents affected by disasters, can also be used for recreational activities, site location for distribution of relief supplies, feeding programs and medical mission, the DPWH said. — Arjay L. Balinbin
FORMER PHILIPPINE Air Force (PAF) chief Lozzano D. Briguez, who retired from the post on Thursday, will be appointed to head the exploration arm of the Philippine National Oil Company (PNOC). President Rodrigo R. Duterte made the announcement during Mr. Briguez’s retirement ceremony Thursday. “Now as good as any other time to tell you that from here he will be heading an office, a critical one,” Mr. Duterte said. The PNOC Exploration Corp. (PNOC-EC) is a state-run firm focusing on the Philippines’ oil and gas resources. Last October, the President fired Pedro A. Aquino, Jr. as PNOC-EC head for “loss of confidence.” Meanwhile, Major General Allan T. Paredes, head of the Armed Forces of the Philippines Air Logistics Command, has been appointed PAF commander effective Jan. 17. — Gillian M. Cortez
CEBU Landmasters, Inc. (CLI) has expressed interest to develop a 6,000-square meter prime property across the Cebu IT Park owned by the Cebu provincial government. “Well, they expressed their interest to participate in any bidding for the development of several strategically-located and highly valuable properties of the province,” Governor Gwendolyn F. Garcia said. “Here is a homegrown… developer that can now be at par with other developers from Manila,” she added. CLI is also eyeing to develop the 849-square meter lot located at Jose Maria del Mar Street within Cebu IT Park that the provincial government used to lease to Innoland Development Corp. “We initially thought that we would offer this for lease since there is already an existing building but they opened my eyes to the possibility of also including development there so that it widens the area and gives the interested developer more flexibility,” Ms. Garcia said. Innoland remains qualified to bid for the property. The governor said they are now working on the terms of references for the bidding of all the provincial government’s properties in prime locations. She said a build-operate-transfer contract will be the most likely arrangement. — The Freeman
THE LAST captive of the kidnap-for-ransom Abu Sayyaf Group was rescued Wednesday in Sulu, the military reported. Indonesian Muhammad Farhan was rescued in Indanan, Sulu at 6:45 p.m. on January 15 following “intensive combat and intelligence operations,” the Western Mindanao Command (WestMinCom) said in a statement.“Troops on the ground received information from the locals of Farhan’s whereabouts that led to the successful rescue,” it said. The Abu Sayyaf, known for its activities, is a local terror group that has ties with the Islamic State. “Our ground troops have succeeded in rescuing all remaining captives of the Abu Sayyaf Group. This proves that our sustained rescue efforts and security operations to run down and degrade ASG have been very effective. Hence, this breakthrough will be sustained to thwart kidnappings, dismantle the terror group to bring about peace and sustainable development in Sulu,” said Lt. Gen. Cirilito E. Sobejana, WestMinCom commander. Earlier that day, Mr. Sobejana reiterated the call for continued multi-sector efforts in ending local terrorism. “Remember this, we soldiers kill terrorists while our civilian partners (such as teachers and religious leaders) kill terrorism,” he said during the traditional New Year’s Call held in Camp Navarro in Zamboanga City. “We will counter the narratives of the extremists through good governance and earning the people’s trust and respect,” he said. — MSJ
BUSINESS ESTABLISHMENTS in Iloilo City without a valid permit by January 21 will face automatic closure, the mayor warned. “If they have no business permits, we will immediately close them down and we will no longer issue permits to them,” Mayor Jerry P. Treñas said. He recently issued a memorandum ordering the inspection of business establishments starting Jan. 21, the day after the closing of the business permit renewal period. The inspections will be undertaken by joint teams from the Business Permit and Licensing Office (BPLO), City Tourism and Development Office, and the City Treasurer’s Office. The mayor said he himself will be joining the inspection rounds. The strict policy arose after the local government recently discovered business such as the Manila-based Malabanan Siphoning Service operating in the city without the necessary permits. “No one can just operate here with impunity and disregard all our ordinances without applying for a permit in the city of Iloilo,” said the mayor. BPLO head Norman F. Tabud said there is definitely going to be “no extension” of the Jan. 20 deadline. — Emme Rose S. Santiagudo
President awaits report on alleged overpriced speed guns
PRESIDENTIAL SPOKESPERSON Salavador S. Panelo said President Rodrigo R. Duterte will “act accordingly” after the Department of Interior and Local Government (DILG) defended the national police over alleged corruption in its procurement of speed guns.
“They will have to submit a report on that officially to the President and the President will act accordingly,” Mr. Panelo said on Thursday.
Earlier this week, Mr. Duterte said he will transfer the procurement authority of the Philippine National Police (PNP) to the DILG after learning that
P950,000 was supposedly spent for speed guns.
The President said this seemed overpriced, citing similar equipment purchased for his hometown Davao City.
However, DILG Undersecretary Jonathan E. Malaya, in a statement on Wednesday, said the PNP made an honest mistake by failing to explain that the speed guns being purchased are more advanced with its capability to detect not just over-speeding but also drunk-driving.
The equipment are still under the pre-procurement stage. — Gillian M. Cortez
DoH reports 4 new polio cases
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THE DEPARTMENT of Health (DoH) confirmed on Thursday four new polio cases in the country.
In a statement, the DoH said the Research Institute of Tropical Medicine (RITM) reported two additional cases in Maguindanao, both male, a two- and three-year old; another two-year old male in Sultan Kudarat; and a three-year old male in Quezon City.
The new cases arose despite the intensified nationwide vaccination program, which is still ongoing in some areas.
The polio outbreak was declared in September 2019, after the country has been polio-free since 2000.
“I urge all parents and caregivers of children under five years old to take part in the coming SPKP (Sabayang Patak Kontra Polio) campaign rounds scheduled in your respective areas. Have your children, including those with private physicians or pediatricians, vaccinated with oral polio vaccine by health workers and bakunators. Additional polio doses can provide additional protection to your children. There is no overdose with the oral polio vaccine,” Health Secretary Francisco T. Duque III said.
The DOH also called on all health facilities to strengthen their Acute Flaccid Paralysis (AFP) surveillance.
“The outbreak must be put to a halt, and we can only do this if all our health facilities are achieving the targets for all AFP surveillance indicators, and if every SPKP round, ALL of the target population are reached and vaccinated,” Mr. Duque said. — Gillian M. Cortez
Robredo welcomes 44% rating in short anti-illegal drugs post
VICE PRESIDENT Maria Leonor G. Robredo said the 44% satisfaction rating she got in the Social Weather Survey report as the co-chair on the Inter-agency Committee on Anti-Illegal Drugs (ICAD) is good news.
“Masayang balita kung (It’s good news that) 44% ‘yung nag-a-agree kasi alam natin (agreed because we know) how vilified I was (as) ICAD chair,” Ms. Robredo told reporters on the sidelines of the community-based drug rehabilitation summit in Caloocan City.
According to the SWS survey of 1,200 people, 44% were satisfied with Ms. Robredo’s less than three-week stint as co-chairperson of ICAD, while 26% were dissatisfied and the remaining 30% undecided.
President Rodrigo R. Duterte appointed Ms. Robredo to the post in November last year, but fired her after just 18 days.
She, however, said that she could have done more if she was still in the ICAD, including influencing policy and strengthening partnerships with other government agencies.
She noted that community-based drug rehabilitation program, such as the one in Caloocan, is an alternative to the drug war, which has drawn criticisms for alleged human rights violations.
Meanwhile, the Presidential Palace dismissed the SWS survey result.
“She was being given the rare chance of introducing other schemes that will improve the campaign against the prohibited drugs and she blew it. ‘Yan ang tingin ko doon (That is how I see it),” Presidential Spokesperson Salvador S. Panelo said on Thursday.
Mr. Panelo again defended the government’s campaign, citing that many are satisfied with the drug war and that the President also has a high satisfaction rating among majority of Filipinos. — Vann Marlo M. Villegas and Gillian M. Cortez
Anti-graft court denies petition to re-arrest former party-list rep Valdez
THE SANDIGANBAYAN has junked for lack of merit the prosecution’s motion to have former party-list representative Edgar D. Valdez and his co-accused, businesswoman Janet L. Napoles, re-arrested in relation to their plunder case involving the Priority Development Assistance Fund (PDAF) scam.
The prosecution filed the motion last Nov. 18, citing that a warrant of arrest should be issued against the two given the Sandiganbayan’s denial of their demurrers to evidence.
A demurrer to evidence is a motion to dismiss the case on the ground of insufficient evidence.
The anti-graft court, in a resolution promulgated Jan. 9, said the prosecution’s motion was “bereft of merit” and cited that Mr. Valdez “correctly pointed out that there is no basis to recall the grant of bail. As correctly argued by the defense, the denial of the accused’s demurrer to evidence is merely a preliminary examination of the merits of the prosecution’s allegations.”
Mr. Valdez countered the prosecution’s motion, arguing that “the denial of the demurrer to evidence does not mean that the evidence against the accused is strong.”
The Sandiganbayan also noted that Mr. Valdez, while out on bail, has “religiously” attended the proceedings of his case.
Ms. Napoles, who has been tagged as the PDAF scam mastermind, is currently in jail for a separate plunder case relating to Senator Ramon “Bong” B. Revilla, Jr.
Lawyer Antonio G. M. La Viña, former dean of the Ateneo School of Government, explained that an arrest warrant can be issued for every case, even if the accused is already imprisoned.
“He will be ‘arrested’ again but it will just be formality,” Mr. La Viña said in a text message to BusinessWorld.
Mr. Valdez, who represented the Association of Philippine Electric Cooperatives party-list, and Ms. Napoles are accused of violating Republic Act 7080, or the Plunder Law, for the alleged anomalous use of the former’s P57.78 million PDAF through fake non-government organizations of the latter from 2004 to 2010. — Genshen L. Espedido
