BusinessMirror December 23, 2019 by BusinessMirror

Monday, December 23, 2019 Vol. 15 No. 74

9-month TRAIN take ₧14B over estimates T By Elijah Felice E. Rosales

@alyasjah

OTAL revenues from the Tax Reform for Acceleration and Inclusion (TRAIN) law have breached nearly 81 percent of fullyear targets after nine months, as the government exceeded its estimates from January to September by P14 billion.

Preliminary data from the Bureaus of Internal Revenue (BIR) and of Customs (BOC) showed collections reached P91.3 billion in the first three quarters of this year. Finance Undersecretary Karl

Kendrick T. Chua said this exceeded the estimates for the period of P77.3 billion, thereby enabling the government to allocate funds for spending on infrastructure and human capital development.

As such, Chua disclosed that actual total revenues surpassed the estimates by roughly P14.1 billion, or 18.1 percent above target. In terms of full-year share to the full-year estimate, the January-

to-September collection was about 80.8 percent of the projected P113.1-billion tax haul this year. Compared to the actual TRAIN revenues last year, this year’s ninemonth revenue was more than twice the estimated amount, or an increase of 107 percent, Chua added. See “TRAIN,” A2

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GOVT MOVES VS. WATER FIRMS WON’T HURT PHL’S BIZ REPUTE–DTI CHIEF

O uncertainties created. Trade Secretary Ramon M. Lopez has said the Philippines will not lose existing and prospective investors over President Duterte’s decision to review the contracts of water firms—this, in spite of the country’s already poor reputation on contract enforcement. “It isn’t creating uncertainty on the outside, as others might say. It has to be corrected,” Lopez said in an interview with reporters last week. Lopez was responding to media queries as to whether the President’s sudden order to review the contracts of water concessionaires Maynilad Water Services Inc. and Manila Water Co. will dent the country’s investment reputation. Duterte had threatened to

DA’s ₧2-B facility to fight smuggling in use by 2020 By Jasper Emmanuel Y. Arcalas

@jearcalas

HE Department of Agriculture (DA) said it would kickstart next year its P2-billion border improvement project that seeks to curb smuggling of agricultural goods—a potential source of pests and transboundary animal diseases to the country—through the use of modern facilities. The DA disclosed recently that it plans to request for a P2-billion funding from the Department of Budget and Management (DBM) next month for its proposed first border facilities in five key ports in the country. The integrated border facilities will cost about P400 million each, and will be established in the ports of Manila, Batangas, Bataan, Cebu and Davao, it added. The project, approved by the Duterte Cabinet, seeks to improve

PESO EXCHANGE RATES n

t he countr y’s border control since such facilities have been lacking in the first place, the DA explained. The DA pointed out that, at present, government quarantine authorities do not have the capacity of inspecting some shipments, particularly those requiring cold storage, right in the port. Citing recent seizures by government, the DA added that smuggled goods are hidden in the innermost part of the containers, making it hard for quarantine authorities to discover them due to lack of modern facilities. “From the very start, we didn’t have these. Our quarantine methodology is still closed-open. You can only see some things, but you can’t unravel everything,” Agriculture Secretary William D. Dar said last week, in a mix of English and Filipino. See “DA,” A2

order the military to take over the operations of the water firms if they fail to fix their services. “That’s what the President only wants. They [water distributors] have to agree on a new contract to remove these so-called onerous [provisions in their contracts],” Lopez explained. “We have to review and make a new contract, and that’s all,” he added. The trade chief is not losing sleep over the Chief Executive’s attacks against the water firms. He argued that Maynilad and Manila Water can still obtain the government’s assistance, as well as incentives, if they have additional investments, at any moment. The Philippines, in spite of See “Water firms,” A2

Concession agreements with 2 firms valid–MWSS

FILM FESTIVAL The float for the movie Culion, a heart-wrenching film on the lives of thousands of lepers forcibly segregated during the US colonial era in the wind-swept Palawan Island, is seen in Sunday’s Metro Manila Film Festival Parade of Stars held in Taguig City. On Sunday, MMFF Chairman Danilo Lim of the MMDA denounced a scam by some parties selling complimentary passes to the festival. Story on page A2. ROY DOMINGO

HE Metropolitan Waterworks and Sewerage System (MWSS) has clarified that the 25-year concession agreements with Maynilad Water Services Inc. and Manila Water Co., covering 1997-2022, are still valid and subsisting contracts. In a statement, MWSS Administrator Emmanuel B. Salamat said MWSS Board Resolution 2019-201-CO, dated December 9, 2019, only revoked the previous Board Resolution 2009-72, dated April 16, 2009, involving the extension period from 2022 to 2037 of Manila Water Co. and Board Resolution 2009-180, dated September 10, 2009, involving the extension of concession period from 2022 to 2037 of Maynilad Water.

US 50.6300 n JAPAN 0.4634 n UK 65.8949 n HK 6.4966 n CHINA 7.2225 n SINGAPORE 37.3819 n AUSTRALIA 34.8689 n EU 56.3208 n SAUDI ARABIA 13.4981

See “MWSS,” A2

Source: BSP (20 December 2019 )

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A2 Monday, December 23, 2019

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Tisoy farm damage to clip palay output–US report

By Jasper Emmanuel Y. Arcalas

@jearcalas

HE country’s palay output in market year (MY) 2019-2020 could decline by 2 percent to 18.286 million metric tons from 18.622 MMT in the previous year, according to a Global Agricultural Information Network (GAIN) report. The GAIN report attributed the decline to damage caused by Typhoon Tisoy (international code name Kammuri) to the farm sector, particularly to rice fields, and shift by some planters to other crops due to low paddy prices. “Rice production and area harvested were pared down in MY 2019/2020 due to damage caused by Typhoon Kammuri. An estimated 105,000 MT of paddy in 78,000 hectares of rice were affected due to the typhoon,” the report read. “The downward revisions are steeper as a result of the continued decline in paddy prices, which will force some farmers to shift away from rice cultivation in MY 2019/2020,” it added.

Due to these reasons, the report, prepared by the United States Department of Agriculture Foreign Agricultural Service in Manila (USDA FAS Manila), hiked its total import forecast for the Philippines by 8 percent. The USDA FAS Manila projected that rice imports in MY 2019-2020, which runs from July and ends in June the next year, would reach 2.7 MMT from its earlier estimate of 2.5 MMT. Despite the increase in forecast, the new projection by the GAIN report is still lower than the 3 MMT estimated rice import volume in MY 2018-2019. “Imports during the year, however, are likely to ease from the previous

₧3.7B

The damage caused by Typhoon Tisoy to the farm sector. Over 92,000 farmers in at least seven regions were affected, according to a report of the Department of Agriculture (DA). year’s level due to the stricter enforcement of MO [Memorandum Order] 28 and the other GPH interventions,” the report read. Despite a projected increase in fourth quarter palay output, the Philippine Statistics Authority (PSA) estimated that the country’s palay output this year would fall slightly to 19.02 MMT, from last year’s 19.07 MMT. “As of 01 November 2019, palay production for October to December 2019 based on standing crop may decrease to 7.70 million metric tons; 0.4 percent lower than the October 2019 round estimate of 7.73 million metric tons, and 7.6 percent higher than the previous year’s output of 7.16 million metric tons,” the PSA said in its output forecast published last week. “Harvest area may increase by

1.5 percent from 1.847 [million] hectares in 2018. Yield per hectare may slightly fall to 4.11 metric tons from 4.12 metric tons,” it added. Unhusked rice production from January to September fell nearly 5 percent to 11.32 MMT from 11.91 MMT due to substantial reduction in harvested area and insufficient water supply. “This was attributed to the substantial reduction in harvested areas in Western Visayas and Soccsksargen due to insufficient water supply,” the PSA said in its latest report. The damage caused by Typhoon Tisoy to the farm sector has reached at least to P3.7 billion, affecting over 92,000 farmers in at least seven regions, according to a report of the Department of Agriculture (DA). The DA Disaster Risk Reduction and Management Operations Center said Typhoon Tisoy damaged at least 132,166 hectares of rice, corn and high-value crops with production losses estimated at 195,046 MT. The rice sector suffered the brunt of the typhoon’s damage, incurring losses amounting to P1.32 billion—with 77,683 hectares affected, with an estimated output of 104,928 MT.

Angry MMDA chief warns sellers of fake MMFF passes

HAIRMAN Danilo Lim of the Metropolitan Manila Development Authority (MMDA) slammed the selling of fake complimentary passes to the 45th Metro Manila Film Festival following the arrest of two persons on Saturday in Makati City. “As overall chairman of the

MWSS. . .

Continued from A1

The board resolutions did not result in the rescission or outright cancellation of the said contracts, which requires a separate and distinct act to be legally effective, he said. As such, Salamat said, the government through the MWSS is giving the two private water concessionaires the opportunity to renegotiate and agree on the new terms of the concession agreement. The MWSS has been expressly directed to renegotiate the concession agreements with Manila Water and Maynilad in order to remove what the Duterte administration termed as “illegal and onerous provisions” of the agreements, as determined by the Department of Justice. The renegotiation of the agreement aims to include “provisions that are beneficial to the consumers and the entire nation.” Meanwhi le, the M WSS ack nowledged t he cooperat ion shown by Maynilad and Manila Water “not only in expressly declaring that they would no longer collect or enforce the recent

Water firms. . . Continued from A1

improving to 95th from 124th in the World Bank’s Doing Business 2020, is lagging in terms of contract enforcement. In the survey on ease of doing business, the country placed 152nd among 190 economies on enforcing deals and arrangements with investors. Guillermo M. Luz, former private-sector cochairman

Metro Manila Film Festival, I strongly condemn the unscrupulous and enterprising individuals who are turning the MMFF into a profitable business venture by selling complimentary tickets,” Lim said on Sunday. With the arrest of suspects Hanna Evangelista and Carlo

arbitral awards, but also in their expressed willingness to renegotiate the inequitable provisions of the concession agreement.” “In view thereof, MWSS and the concessionaires will exert all necessary efforts to comply with the directive of the President to execute a new water concession agreement after 2022, which is currently being drafted by the Department of Justice,” Salamat said. The MWSS administrator said the agency is fully engaged in continuing to ensure the performance of its mandates under Republic Act 6234, as well as to achieve the purpose for, and the intention behind, the directives of the President. It is committed to materially contribute to the satisfactory resolution of the various issues for all the stakeholders. “The continuity of the water sector PPP depends on strong communication channels and handholding engagement so that the basic access to water and wastewater services will not be jeopardized, which includes fully addressing and accomplishing the urgent call for new water and sewerage infrastructure projects,” he said. Jonathan L. Mayuga

of the now-defunct National Competitiveness Council, earlier told the BusinessMirror this should be improved, as this is one crucial factor to investment decisions. “If there’s a new investment and it’s eligible, then we grant it incentives. The important thing here is there’s consciousness, there’s awareness that there’s an issue in the contract. I’m sure the government is just requiring this review of contract to fix the contract,” Lopez argued. Elijah Felice E. Rosales

Jaramilla, both 21 years old, Lim has ordered an extensive investigation of the illegal activity to unmask the persons behind it. Both suspects were arrested in an entrapment at around 11:30 a.m. Saturday in Barangay Guadalupe Nuevo. Lim reiterated that the MMFF complimentary tickets

are strictly “not for sale,” and that there are no persons or groups authorized to distribute them. “Anyone caught selling or buying complimentary tickets, authentic or fake, shall be dealt with accordingly and shall face the full force of the law,” he warned. Claudeth Mocon-Ciriaco

Villanueva raises alarm over rising Pogo snatching cases

EN. Joel Villanueva voiced concern over the weekend on rising reports of kidnapping cases victimizing Chinese nationals working at Philippine offshore gaming operator (Pogo). “We urge the Philippine National Police [PNP] to be vigilant, and prevent these kidnappings and other related crimes from happening,” Villanueva said Sunday. The senator noted earlier findings by PNP probers that many reported kidnappings were perpetrated by the victims’ fellow Chinese nationals. Villanueva added that the PNP findings support his theory that the negative effects of the industry outweigh any benefit the country may get from

DA. . .

Continued from A1

“The Cabinet has approved the plan. We are ready to submit it to the DBM in January, and we will request P2 billion,” Dar added. Dar said the integrated, multicommodity facility will be utilized by the Bureau of Animal Industry, National Meat Inspection Service, Bureau of Fisheries and Aquatic

2 Indons. . .

Continued from A12

captives and defeat the Abu Sayyaf before the end of the year,” Sobejana added. President Duterte had earlier

the proliferation of Pogo service providers, which employ mostly Chinese nationals. Morever, the senator stressed that the Department of Labor and Employment must step up labor inspections on offices, particularly Pogo facilities, and firmly enforce labor laws and regulations to protect all workers and ensure their rights are upheld at all times. Villanueva also affirmed the Senate’s intent to include the PNP findings on the rising incidence of Chinese kidnappings at the next labor committee hearing, saying, “We hope to establish the breadth and scale of the negative effects of POGO operations in the country.”

Butch Fernandez

Resources (BFAR), Bureau of Customs and other quarantine-involved agencies. “It’s a multi-commodity facility where our quarantine people can do proper work,” he said. The DA has blamed smuggled meat imports, particularly those that came from African swine fever-infected countries, like China, as one of the culprits for the entry of the fatal hog disease in the country. ordered the military to degrade the capability of the ASG, if not defeat them, particularly in Sulu until the end of this year. His order prompted soldiers to conduct nonstop operations against the local terrorist group in the province. Rene Acosta

Up to Duterte to take down pork in 2020 budget, says Lacson

EN. Panfilo Lacson on Sunday conceded it is now up to Malacañang to take down perceived pork funds, and other items the Palace may find questionable in the P4-trillion 2020 budget bill. “Kasi tapos na rin ang aming role. Dapat iwanan ang kapalaran ng national budget sa Executive dahil prerogative naman ng Pangulo na mag-veto o hindi. [We have done our role. The final fate of the national budget is left to the Executive as it is the preriogative of the President to exercise his veto power or not],” Lacson said in an interview with DWIZ. Lacson acknowledged the “big difference” between the pork-laden 2019 budget bill and the 2020 national budget, saying there is a difference between the two money measures. “Last year we did not want Senate President Tito Sotto to be complicit in signing the enrolled bill, which contained parts that we did not ratify,” he said in a mix of English and Filipino, adding, “This time around, naiabot sa bicameral panel ang [budget] insertions na ginawa

TRAIN. . .

Continued from A1

“This means we are now closer to completing the 2019 estimates, compared to where we were last year when we were trying to reach the 2018 estimates. This is definitely welcome news, especially for the infrastructure and human development objectives of TRAIN,” Chua said. Both the BIR and the BOC outperformed the government’s estimated collections from TRAIN, as the internal revenue’s haul exceeded by P9.4 billion while that of Customs went beyond by P4.7 billion. Major gains during the first three quarters of this year came from personal income tax (PIT), imported petroleum excise tax, sweetened beverage excise tax, tobacco excise tax and the documentary stamp tax. The total take from these taxes showed an upswing of P42.4 billion. “As you know, one of the most significant provisions of TRAIN was the lowering of PIT. Losses from this adjustment were originally estimated at P96.4 billion, but actual losses were lower at P79.2 billion, or a savings of P17.2 billion. This was a result of better compliance, higher employment rate resulting in an increase in registered taxpayers, and lower unemployment and underemployment rates,” Chua said. “Imported petroleum excise tax collections were above estimate by P14.3 billion, owing to higher-than-programmed volume of imported finished petroleum products, particularly diesel and gasoline. The overperformance is also evident in the overall BOC petroleum excise revenues for the

Peace panel. . . Continued from A12

“The parties shall separately issue the corresponding cease-fire orders. During the cease-fire period, the respective armed units and personnel of the parties shall cease and desist from carrying out offensive military operations against each other,” the joint statement said.

Alert for Dec. 26

THE cease-fire is part of the government’s attempts to resume peace talks with NDF by next year. Government forces usually heighten security measures dur-

[the insertions made reached the bicameral panel],” Lacson added, but did not provide details. He saw no need for lawmakers to get an “initial commitment” that the Palace will retain funding items passed by lawmakers. “There’s no need to give such a commitment because it is truly the President’s prerogative to study it well before signing the national budget, the enrolled bill, and if they see something questionable, whether or not we listed something, that’s their call to make. Because every year, the President always has a line-item veto,” Lacson added. The senator added it is now up to Sotto to sign and transmit the annual money measure passed by the lawmakers in time to avert government operating under a reenacted budget by January. “Yes. It is up to them. Our job is done. We deliberated, debated, amended and convened the bicameral panel and ratified its final [reconciled Senate-House] version of the budget bill. So it is now really up to the President,” said Lacson. Butch Fernandez first three quarters at P64.5 billion, which is more than double than the P31.2 billion recorded during the same period last year,” the finance official added. He also said collection from sugar-sweetened beverages improved revenue performance following the issuance of guidelines on the excise tax, intended to improve industry compliance. Excise tax on these products exceeded estimates by P1.9 billion. On the other hand, tobacco excise tax was also above estimates by P4.4 billion, which the government attributed to better compliance as it intensified its crackdown on the illicit tobacco trade.

Shortfalls

HOWEVER, there were shortfalls in the collection of duty on automobile and locally refined fuel. Their combined take fell short of estimates by P25.2 billion. “Automobile excise tax earnings were short by P11.3 billion, owing to lower import volume. This was seen, too, in the overall BOC automobile excise tax collections, which totaled P23.8 billion below the estimate and lower than last year’s take by 29.4 percent,” Chua said. “The excise tax collections from locally refined petroleum products was short by P13.9 billion because of the decline in the volume of removals, and the shift to imported finished products,” Chua added. The TRAIN law is the first package of the government’s comprehensive tax reform program. It rationalized income taxes by exempting minimum-wage earners and those earning below P250,000 in gross annual income from paying PIT on one end, while raising taxes on oil, fuel, automobile, sweetened drinks, among others, on the other. ing the last week of December, as the NPA has in the past launched attacks during the founding anniversary of the Communist Party of the Philippines , the NDF’s political party wing, every December 26. In a related development, Panelo said the reported killing in Quezon City last week of two NPA leaders, who were allegedly ordered to kill Duterte, is unlikely to affect the proposed resumption of peace negotiations. He said the leadership of NDF has already denied there is such a plot against Duterte. Panelo also said that with or without such threat, the security of the President is always assured.

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Five Palawan LGUs pledge P2.5M to conserve Mt. Mantalingahan

HE protection and conservation of Mount Mantalingahan Protected Landscape (MMPL) in Palawan province will be getting the much-needed boost from local government units (LGUs). The Department of Environment and Natura l Resources (DENR) said five municipalities in Southern Palawan have pledged a total of P2.5 million for the protection and conservation of what can be considered the largest protected area of the province. The MMPL is a protected area by virtue of Presidential Proclamation 1815, dated June 23, 2009. It is included in the tentative list of Unesco World Heritage Sites, and is vying to be inscribed as such for its exceptional biodiversity and endemism. Like all other biodiversity-rich areas, the MMPL faces various threats, including illegal logging, mining and plantation expansion, such as slash-and-burn farming. The enforcement of environmental laws remains a major challenge because of insufficient number of forest-protection officers currently deployed in the area. The LGUs of Brooke’s Point, Quezon, Rizal, Sofronio Española and Bataraza each committed to allot P500,000 from their respective funds to support forest-protection activities, and stricter enforcement of environmental laws in the main protected area and its buffer zone during the 15th meeting of

the Protected Area Management Board (PAMB) en banc of MMPL held in Puerto Princesa City on December 16. T he meeting was attended by other members of the PAMB, which include the village chiefs, representatives from the academe, nongovernment groups, the National Commission on Indigenous People, Philippine National Police, Palawan Council for Sustainable Development and other indigenous peoples groups. The commitment was made by the five LGUs after a biodiversity assessment and monitoring system report highlighted the urgency to step up forest-protection efforts in MMPL, which include procurement of equipment, supplies and materials, and augmentation of monitoring and patrol personnel. Currently, there are only three park rangers under the Protected Area Management Office protecting the MMPL, which covers a total of 120,457 hectares. “Ideally, it should be one forest ranger per 500 hectares. For MMPL, we are in need of 240 more rangers to cover the entire area,” Protected Area Superintendent Mildred A. Suza explained. The financial support coming from the LGUs will help address the limited number of forest protectors, as well as the grant of other benefits to boost the morale of forest-protection officers.

Editor: Vittorio V. Vitug • Monday, December 23, 2019 A3

Govt finds GMA Network liable in actor’s death; fined ₧890,000 By Samuel P. Medenilla @sam_medenilla

HE Department of Labor and Employment (DOLE) has slapped GMA Network Inc. and its contractors with a fine of almost P900,000, saying the publiclisted firm violated occupational and safety and health (OSH) violations in the workplace, which killed veteran actor Eduardo “Eddie” Garcia earlier this year. On December 2, DOLE-National Capital Region (DOLE-NCR) ordered the media firm to pay a total of P890,000. Of the said amount, P810,000 will be for the supposed non-submission of GMA of the needed work accident/illness report (WAIR) to DOLE about the incident within

the 24-hour period, DOLE-NCR Director Sarah S. Mirasol said. The company was also ordered to pay an additional P40,000 since there was no safety officer present in the site where Garcia’s scene for the teleserye Rosang Agimat was shot. The other P40,000 was for the absence of a first-aid personnel in the same site.

Substantial compliance

GARCIA died June 20, 2019, from the neck and spine injuries he sustained after he tripped at the site where a scene of Rosang Agimat was being shot in Tondo, Manila, on June 8, 2019. Citing the result of its fact-finding report of GMA, the DOLE noted the network committed the three aforementioned violations. The findings were contested by GMA, stating that the insistence

of DOLE to have a safety officer in the site was “oppressive, arbitrary, whimsical and despotic.” It further said that the DOLENCR director has no jurisdiction on the case of Garcia, since he was a “talent and not an employee of GMA,” and that it has “substantially” complied with the reportorial requirements, as well as having safety officers although they are assigned to the GMA’s main office only.

Preventable death

IN the 14-paged resolution, the DOLE-NCR, however, emphasized that GMA is still liable for what happened to Garcia in terms of ensuring that his work environment, even if it is just a temporary shooting location, remain safe. “The jurisdiction of DOLE to de-

cide cases involving violations of occupational safety and health standards does not depend on the absence of employer-employee relationship, but on the possible violation/s committed in the enforcement and implementation of occupational safety and health standards,” Mirasol said. Mirasol also noted GMA only submitted its WAIR on July 5, or 27 days after the work accident and, thus, proved GMA was not compliant with the 24-hour submission rule. Last, GMA and its contractors were unable to prove they deployed neither a safety officer nor a first-aid personnel in the work site. “GMA should have deployed one of its safety officers in the shooting site of Rosang Agimat, which could have prevented the untimely demise of Garcia,” Mirasol said.

Marikina mayor fulfills cancer-stricken man’s wish to wed partner of 10 yrs

‘Y

OU are the fine example of love that not even death can separate.” This was the message of Marikina City Mayor Marcelino R. Teodoro after he officiated a marriage to a bedridden man suffering from colon cancer and his live-in partner of 10 years, fulfilling the groom’s wish to tie the knot with the love of his life before his time comes. The dream wedding of the couple

was fulfilled by Teodoro on Friday morning at the couple’s simple home, where they built a family and vowed to love each other until death do them part. Around 10 a.m. on Friday, Teodoro went to the house of the couple to fulfill 47-year-old Darwin Ballerdo’s dream of marrying Haydee Duron, 50. It has been two years since Ballerdo learned he has colon cancer.

Teodoro told the bride and groom that love is the reason why people marry. He added that this is the first time he wed a couple in a home. “This is not an accident; everything is ordained,” Teodoro said in Filipino. “Though one of you may be gone someday, I’d think that in your child’s memory, this day will stay on.” Ballerdo and Duron’s love child, a Grade 3 student named Trixie,

was crying very hard, while Teodoro was giving the couple an inspirational message. In a heartfelt exchange of vows, the groom, reclining on his chair which served as his bed with a dextrose attached to his left hand while Duron held his other hand, promised to his bride–to-be there in sickness and in health, for poorer or for richer, till death do them part.

Economy BusinessMirror

A4 Monday, December 23, 2019 • Editor: Vittorio V. Vitug

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Experts warn PHL, Asean of China’s ‘colonialism’

By Recto Mercene

@rectomercene

OME security experts have warned Southeast Asian nations of China’s “colonialist strategies” and to be wary of its investments in certain businesses, such as telecommunications, which could expose countries to cyber attacks. Speaking at the recent Asean Summit in Thailand, United States National Security Adviser Robert O’Brien alluded to the Chinese giant, saying countries “should deal with each other as sovereigns and in accordance with the international law and customs.” “The days that big countries could take advantage of small countries just because of their size, just because one country is big and one country is small, we don’t think that there’s any place for that in the international system of the 21st century.” This sentiment was echoed by former Bayan Muna Rep. Neri Colmenares, where he spoke of the

“creeping control” of China over telecoms and power assets in the Philippines. In a televised interview, Colmenares cited the country’s third telecoms player, Dito Telecommunity, controlled by state-owned China Telecom. Given the Philippines’s maritime dispute with China, he said, “it is absurd for the Philippines to give [China] control of its telecommunications system.” The Armed of Forces of the Philippines, he noted, signed a memorandum of agreement to allow Dito to put up cell towers and telecoms equipment in military installations nationwide—a move Colmenares

BusinessMirror file photo

and other experts said will make the country’s military vulnerable to Chinese hacking and espionage. The former lawmaker also expressed grave concern over China’s co-ownership of the national grid as prone to cyber attacks. “They [Chinese company] admitted in their annual report, it’s vulnerable to cyber attacks,” Col-

menares said. “Even if China say it’s immune to cyber attacks, Beijing has proven, and some hackers have actually proved it, that anything can be hacked now.” “Don’t tell us that our grid is safe from China when in fact it’s the largest stockholder in that company,” he added. The security of the country’s

national grid came to light after CNN reported in November that the grid is “under full control” of the Chinese government, and is at risk of shutdown in times of conflict. Lawmakers from both the Senate and the House of Representatives have announced plans to commence an inquiry into the National Grid Corp.’s issues.

China’s control goes beyond the power and telecoms sectors, as it has worked to establish what are said to be comprehensive and cooperative partnerships featuring “equality, mutual benefit and common development” in Latin American and Caribbean countries. However, some sectors have warned that China’s investments in infrastructure could either enable greater economic activity that favor Chinese interests, or thrust those Latin American countries into “debt traps” as reported by Carlos Roa of the high-level policy publication The National Interest. A case in point is Ecuador, where around 80 percent of their valuable oil output, equivalent to 58 percent, is paid back to China in return for the $18.4 billion worth of loans, which is a third of Quito’s public debt. It was these risks that compelled former Supreme Court Senior Associate Justice Antonio Carpio to cite the onerous provisions in the repayment of loans from China. “Should the Philippines default repaying the loans, China can seize patrimonial assets and those dedicated to commercial use by the Philippine government,” he warned.

DOLE reminds firms of special SC junks petition to nullify sale pay rules during the holidays of reclaimed land to MBDC E T By Samuel P. Medenilla

@sam_medenilla

MPLOYEES who will report for work on December 24 and 25 will get additional pay, according to an advisory issued by the Depart-

ment of Labor and Employment (DOLE). The DOLE issued Labor Advisory 12, Series of 2019, reminding employers to comply with the special pay rules that will take effect on Christmas eve and December 25. In the two-page advisory, Labor Secretary Silvestre H. Bello III said the “no work, no pay” rule will take effect on Tuesday after President Duterte declared December 24 as a special holiday. “For work done during the special day, he/she shall be paid an additional 30 percent of his/ her basic wage on the first eight hours of work,” said Bello. Employees are entitled to 30 percent of their hourly rate if they work overtime, and another 50 percent of their basic wage of their first eight hours of work if the special holiday falls during their day off. On Christmas Day, which is a regular holiday, employees who are on duty will get twice their basic pay. Beyond the first eight hours of their work, they should be paid 30 percent of their hourly rate. They will also be paid 30 percent of their basic wage if the regular holiday falls on their rest day. Those who will not report for work during the regular holiday, Bello said, should still get 100 percent of their daily pay. Christmas is a Christian holiday, which celebrates the birth of Jesus Christ and observed worldwide every December 25.

By Joel R. San Juan

@jrsanjuan1573

HE Supreme Court has dismissed a petition seeking to declare the sale by Public Estate Authority (PEA) to private developer Manila Bay Development Corp. (MBDC) of 44 hectares of reclaimed land in Manila Bay as unconstitutional. In its recent resolution, the Court en banc primarily junked the petition filed by Sagip Party-list Rep. Rodante Marcoleta on the ground that the latter “does not appear to be the proper party to bring an action to nullify the sale of the subject land and to cancel its derivative land titles.” “Assuming that the sale is void, it should be filed by the State, which is the original owner of the land, through its Office of the Solicitor General [OSG],” the SC said. The petitioner said the sale contravenes Section 3 Article 12 of the 1987 Constitution, which prohibits the sale of lands of the public domain to private corporations. He pointed out that the subject 44 hectares of reclaimed lands were clearly lands of the public domain. However, the en banc said that even if Marcoleta is the proper party to raise the action, his first two arguments are “absolutely devoid of any merit.” In his petition Marcoleta argued that the sale “lacked an object certain at the time it was contracted,” saying that the original deed of sale had no technical description of the sold land. He added that a supplementary deed of sale “does not, as it cannot, cure a null contract.” The SC held that while there was no specific technical description of the

land in the original deed of sale, there was an adequate description “Central Business Park 2” along with its location and area size. The SC added the subject land is not an inalienable land of the public domain outside the commerce of man by virtue of special patents issued by then-President Corazon Aquino, under the aegis of Presidential Decree 1085 that covers the Freedom Islands, is equivalent to an official proclamation classifying the Freedom Islands as alienable or disposable lands of the public domain. Assuming that the subject land to the MBDC may be considered as prima facie unconstitutional, the Court said the latter must still be afforded an opportunity to present evidence in defense of its title in an appropriate proceeding in a full-blown trial. “Even if assuming Marcoleta could establish grounds for his third argument that barred private corporations from holding alienable lands, the SC could not order the outright cancellation of the land titles because portions of the land are now titled in the name of the LRTA which is a governmentowned and -controlled corporation [GOCC],” the SC ruled. In 2017, civil society group the United Filipino Consumers and Commuters Inc. (UFCC), through its lead convenor Rodolfo B. Javellana Jr. urged the Office of the Ombudsman to indict for graft and plunder charges the officials of PEA and MBDC, in connection with the alleged anomalous and illegal sale of the reclaimed land which is now estimated to be worth more than P60 billlion. In their complaint, the groups

claimed PEA and MBDC officials conspired to defraud the government in the sale of more than 41 hectares reclaimed land in Parañaque, in 1988. Javellana stressed that the PEA-MBDC deal is not only grossly disadvantageous to the government, but is also unconstitutional and illegal. Court records showed, the PRA, that has ownership and administration over all lands reclaimed and about to be reclaimed under the Manila-Cavite Coastal Road and Reclamation Project (MCRRP), in 1987 bid out an aggregate land area of 410,467 square meters of reclaimed lands along Roxas Boulevard, Seaside End, Parañaque City. The area was described as Central Business Park 2. In 1988, Jacinto Ng’s group won after submitting the highest bid of P1,150.00 per sq m or a total amount of P472,037,050. PRA issued a Notice of Award to the group of Ng and advised it to organize itself into a corporation, that was later known as the private firm MBDC. The deed of sale was executed between PRA and MBDC on August 23, 1988. However, the deed of sale did not specify the technical bounds of the subject land, prompting the PRA and MBDC to execute a supplementary deed of sale clarifying that the subjected land designated as Central Business Park 2 pertains to the land covered under specific Original Certificate of Title and Transfer Certificate of Title in the name of the PRA. Overtime, the subject lands were subdivided into 15 land titles wherein eight of the land titles were in the name of the MBDC, three in the LRTA, and four in the PRA.

Cebu Pacific to travelers: Be at the airport hours before flight

EBU Pacific and Cebgo issued a reminder that all passengers should allot ample time to get to the airport and go through security inspection, immigration screening, check-in, bag drop and other predeparture requirements. “Passengers with flights during peak travel periods are encouraged to be at the airport at least two hours before departure for domestic flights, and three hours for international flights,” the airline said in a statement. Cebu Pacific said those traveling to Melbourne, Australia, should allot additional time for more stringent security screening required by their governments.

The airline urged passengers to use its Web check-in to speed up the checkin process. “For international flights, Web check-in is available from seven days up to four hours before scheduled flight departure. Those taking domestic flights can do Web check-in one hour before their scheduled departure,” it said. Cebu Pacific said passengers who received their boarding pass and have no bags to check-in need to bring a printed copy of their boarding pass to be able to immediately proceed to immigration and final security check. “Passengers who have check in baggage and those who did not receive their boarding passes upon using Web

or mobile check-in will need to show up at the check-in counters to present valid travel documents and drop their bags at least one hour before their flight. Passengers on international flights are strongly advised to immediately proceed to the immigration counters after completing checkin requirements,” it added. Cebu Pacific said all check-in counters close five minutes before the scheduled time of flights, except those exiting Dubai (one hour) and Shanghai (50 minutes) to finalize flight manifest and predeparture requirements of the authorities. All boarding gates close 15 minutes before the scheduled time of flights, except

flights exiting Dubai (20 minutes). The carrier said passengers are reminded to pack their luggage properly and ensure that checked-in baggage have proper identification labels with name, address and contact details. “While weighing scales at the checkin counters are calibrated regularly to ensure accuracy, check the weight prior to heading for the airport to avoid the hassle of repacking upon check in,” it said. Cebu Pacific and Cebgo allow only one hand-carry bag with maximum weight of 7 kilos, with dimension of up to 56cm x 36cm x 23cm. This dimension includes most wheeled cabin bags and backpacks. Recto Mercene

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Dar: DA unit to focus on ‘BBB’ program for agriculture sector By Jasper Emmanuel Y. Arcalas

@jearcalas

HE Department of Agriculture (DA) has created a unit that will craft and implement a “Build, Build, Build” (BBB) program for the farm sector to improve rural productivity and increase the income of local planters. The Office of the Undersecretary for Regulations will be headed by former Rajah Buayan Mayor Zamzamin L. Ampatuan, who was appointed by President Duterte as agriculture undersecretary on December 3. Ampatuan replaced Segfredo R. Serrano, who retired earlier this year, according to his appointment papers released by Malacañang. He will spearhead the DA’s BBB program for agriculture, which Agriculture Secretary William D. Dar said, is “crucial” for the department’s agri-industrialization strategy. On December 18, Dar issued Special Order 1140 officially designating Ampatuan as the DA’s undersecretary for regulations.

Through SO 1140, Dar removed and separated from the Office of the Undersecretary for Policy and Planning, Project Development, Research and Regulations, “the functional responsibility and oversight on regulations.” Dar told the BusinessMirror that he created the Office of the Undersecretary for Regulations to help the government achieve sustainable development and to focus on DA’s farm infrastructure push. “It’s becoming a big responsibility of the whole DA and its attached agencies. The theme of having a responsible regulations [unit] is for sustainable development,” he said via SMS on Sunday. “On top of that, I have added the

planning for Build, Build, Build in agriculture anchored on the agriindustrialization strategy. That’s one of the paradigms under the new thinking for agriculture to achieve the ‘2-3-4’ growth targets,” he added. The DA is targeting to expand farm output by 2 percent in 2020, 3 percent in 2021 and 4 percent in 2022. Under the SO, Ampatuan, who is a civil engineer by profession, is tasked to “pursue the generation of ideas and plans for Build, Build, Build in agriculture.” He shall also “perform oversight function on the regulatory roles and functions of the attached agencies and bureaus under the Department of Agriculture.” Ampatuan is tasked to “advise and provide regular reports” to Dar on regulatory matters under the jurisdiction of the DA agencies. He must “ensure the strict compliance and enforcement of the various laws, policies and regulatory standards to improve the quality and safety of Philippine agriculture and food products.” Ampatuan took his oath of office before Dar last December 16. In a Facebook post on the same day, Ampatuan thanked Duterte for appointing him as agriculture undersecretary.

He was appointed as energy undersecretary in 2013. The agriculture official was elected as mayor of Rajah Buayan in Maguindanao, in 2016 and 2019. According to a Philippine News Agency report, the vice mayor of Rajah Buayan assumed the town’s top post on December 18, after Ampatuan took his oath of office as agriculture undersecretary. The agriculture official is a nephew of deceased clan patriarch and former Maguindanao Gov. Andal Ampatuan Sr. The fathers of Zamzamin and Andal are cousins, according to local news reports. “My appointment to a national government position is a timely comeback. I can help Secretary William Dar as he leads the DA [in implementing] more responsive programs to ensure food-for-all and enhance agriculture sector contribution to national economic progress,” Ampatuan said in a Facebook post on Sunday. “I would be bringing in my technical background to address the issue of agricultural logistics, infrastructure and engineering which at this point has not been fully appreciated as a key component in supporting our farmers and modernize agricultural production in our country,” he added.

Editor: Jennifer A. Ng • Monday, December 23, 2019 A5

Davao del Norte to plant sorghum By Manuel T. Cayon @awimailbox Mindanao Bureau Chief

AVAO CITY—Davao del Norte is set to go into the massive production of sorghum after the province received tons of hybrid sorghum seeds from a company based in the United States. Davao del Norte Gov. Edwin Jubahib made the announcement after he agreed to include his province in the pilot areas for sorghum production. Jubahib said sorghum will be a good alternative for banana farms ravaged by the dreaded Panama disease and has the potential to increase the income of farmers. Jubahib noted that a company from Thailand has earlier made an assurance that it will buy sorghum from the Philippines. The governor was part of a small delegation headed by Mindanao Development Authority (MinDA) Chairman Emmanuel F. Piñol that forged a memorandum of agreement with Texasbased Scott Seed Co. for the sorghum production in Davao del Norte, and the Bangsamoro provinces. The mission received P5 million worth of sorghum seeds from Coby Kriegshauser, the CEO and owner of Scott Seed Co., in a signing ceremony held on December 17, at the Philippine Consulate General in Houston, Texas, the province’s information office said. Piñol described the initiative as a breakthrough and would be a game changer in the government’s antipoverty drive. “MinDA’s sorghum development program would be a game changer in the fight against rural poverty,” he said. He said a US vessel would carry 25 metric tons of sorghum seeds to

Mindanao, and set sail from Galveston, Texas. The ship is expected to arrive in the Port of Davao, in February 2020. MinDA included Davao del Norte as a pilot area for sorghum following the commitment of Jubahib to allot a wide area for the planting of the protein-rich crop. The province’s information office said Jubahib committed the unutilized Certificate of Ancestral Domain Title areas, particularly in the tribal town of Talaingod, and the banana farms affected by Fusarium wilt for the program. Jubahib said he expects a “dramatic turnaround” in the plight of indigenous people communities when the program starts in February. In October, Piñol said a US company will donate seeds and pitched for the planting of sorghum in banana farms that were struck by Fusarium wilt. The MinDA chief told farmers that a Thai company is looking for supplies and is willing to buy sorghum at P12 per kilogram. The former agriculture chief presented the option to those who attended the Banana Fusarium Wilt Management Forum in Tagum City, in October. He said sorghum is an ideal crop to grow while banana plantations recover from the devastation caused by Fusarium wilt. Commonly called Panama disease, the virus is soil-borne and attacks the roots and the trunks. It lays dormant and is known to attack again any new banana plants, or any other soft-tissue plants. The government has suggested the planting of other cash crops like cacao, coffee, oil palm and now sorghum in areas struck by the dreaded banana disease. With the disease infecting several farms and threatening other plantations, Piñol urged banana growers to consider sorghum.

BusinessMirror

A6 Monday, December 23, 2019 Republic of the Philippines

DEPARTMENT OF LABOR AND EMPLOYMENT Regional Office No. IV-A 4th Flr. Andenson Bldg. II, Brgy. Parian, Calamba City Telefax No.: (049) 545-7362 December 23, 2019