A4 Wednesday, September 30, 2020 • Editor: Vittorio V. Vitug
Economy BusinessMirror
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From firing women workers to revenue dip, UNDP report details MSMEs’ Covid woes By Elijah Felice E. Rosales @alyasjah
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QUARTER of micro, small and medium enterprises (MSMEs) have laid off workers to survive the financial challenges induced by the Covid-19 pandemic, according to the United Nations (UN). In a survey, the UN Development Programme (UNDP) in the Philippines reported 25 percent of MSMEs reduced their manpower on declining revenue amid the pandemic. On the other hand, just one in every five MSMEs retained all of their employees in spite of income losses. Further, 81 percent of MSMEs lamented consumer demand weakened during the health crisis, discouraging them from resuming their operations.
They also said they are suffering from shortage in raw materials due to transport and logistical issues arising from the movement restrictions in place. As such, the UNDP poll reported nearly 80 percent of MSMEs saw their revenue decline from April to June compared to their monthly income prior to the pandemic. Worse, at least 60 percent of MSMEs decried failing to receive any form of assistance from any stakeholder, whether the government, private sector or nongovernment organizations. They said what they need now are access to credit facilities, tax breaks and deferment of loan payments. Provided with these measures, MSMEs can transition their operations into the new normal by adapting the use of digital platforms, using noncash payment options,
allowing employees to work from home, among others. UNDP Philippines Officer in Charge Enrico Gaveglia argued the economy will only recover if the MSMEs recover as well, as the sector makes up 99.5 percent of business establishments and close to two thirds of the labor force. Gaveglia vowed the UNDP will support the government and development partners in carrying out programs geared toward preventing further closures of MSMEs. Likewise, the institution is working with the private sector in providing online resources and e-commerce trainings to help MSMEs move to the digital marketplace. “Digital infrastructure in the country is key to enable the development of a new market space online,” Gaveglia said.
PhilHealth bares substantial settlement of interim reimbursement to hospitals By Cai U. Ordinario @caiordinario
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HILIPPINE Health Insurance Corp. (PhilHealth) reported on Tuesday that it has released nearly half of the interim reimbursement for hospitals nationwide this year. In PhilHealth Update No. 1, the state health insurance company said it has released 46 percent or P6.9 billion allocation for its Interim Reimbursement Mechanism (IRM). PhilHealth said these funds have been “liquidated by health-care facilities in line with strict government accounting and auditing rules.” “As of July 31, 2020, PhilHealth has prepositioned P14.97 billion to its healthcare partners nationwide to help augment their liquidity needs as they prepare for the surge of Covid-19 patients, while ensuring that the
health-care needs of other patients indirectly affected by the pandemic will continue to be taken care of,” the report stated. The top 10 hospitals that received the highest reimbursements together accounted for P1.998 billion of the amount. The hospitals include the Southern Philippines Medical Centers worth P326 million; Philippine General Hospital, P263 million; Davao Regional Medical Center, P209 million; and Vicente Sotto Memorial Medical Center, P204 million. The other hospitals are the Jose B. Lingad Memorial Regional hospital which received P201 million; National Kidney and Transplant Institute, P179 million; and Baguio General Hospital and Medical Center, P165 million. Rounding up the top 10 are the Eastern Visayas Regional Medical Center with P150.7
million; Northern Mindanao Medical Center, P150.2 million; and the Quirino Memorial Medical Center, P150.2 million. In August, Marikina Rep. Stella Luz Quimbo said PhilHealth’s P26.8-billion allocation for its IRM has far exceeded the estimated cost of Covid-19 hospitalizations. Her estimates came as the Philippine Red Cross repeated its accusation that PhilHealth has failed to reimburse it in a timely fashion for hundreds of millions in costs for doing Covid-19 RT-PCR tests for priority sectors, such as returning OFWs and locally stranded individuals. Quimbo said her computation showed the total estimated cost for Covid-19 this year is only P3.3 billion. According to her, the PhilHealth has estimated 209,000 Covid-19 cases this year.
Rene S. Meily, president of the Philippine Disaster Resilience Foundation (PDRF), said MSMEs need to find way to subsist for as long as the pandemic is here. In spite of the health risks, he advised them to consider reopening for their families and enterprises to survive. “We are in the middle of a once in a lifetime medical emergency. I know you are worried about your health, scared to open your businesses. But for the sake of our families and ourselves, we have to take that step and reopen while maintaining safety standards,” Meily said. Trade Secretary Ramon M. Lopez on Monday informed senators at least 6 percent of the more than 1.4 million MSMEs nationwide remain closed as of the government’s latest monitoring. He said MSMEs in various sectors are reopening
Retrenchment of MEPZ workers complied with labor regulations, DOLE exec says By Samuel P. Medenilla @sam_medenilla
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LABOR group on Tuesday called for a government investigation into the alleged mass illegal retrenchment of workers at the Mactan Export Processing Zone (MEPZ) in Cebu, which reportedly affected about 4,000 workers. In a news statement, the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) criticized the treatment of the said workers, which it alleged violated Organisation for Economic Co-operation and Development (OECD) guidelines. The group alleged that the violations include lack of prior consultations on termination; absence of 30 days notice before the termination; and the absence of clear explanation on the criteria for termination. “We demand that DOLE [Department of Labor and Employment] and the LGU [local government
FIRST TIME SINCE VIRUS ONSET: DAVAO House ‘power bloc’ backs NEA’s push CITY POSTS NO ‘VERY HIGH RISK’ AREA to retain P10.8-B ’21 budget proposal By Manuel T. Cayon @awimailbox Mindanao Bureau Chief
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AVAO CITY—For the first time since the Covid-19 lockdown in mid-March, Davao City has no area listed under “very high risk” category and only two landed in the next high risk category. This was the latest listing of barangay classification posted at the city government’s Facebook page for the week of September 25 to October 1. The two barangays, Leon Garcia in Agdao and 23-C in downtown that were previously listed in the very high risk category, have been downgraded to the next lower categories, with Leon Garcia listed as the lone barangay in the high risk category and 23-C in the moderate risk category, along with 13 others. The other 167 barangays are in the low risk category. The improvement came as infection rate in the rest of the Davao region continue to be the highest in Mindanao, ascribed mainly to its location as the prime destination in southern Philippines. The Department of Health recorded 272 active cases in the city, which is 55 percent of the total for the Davao region of 493. Since the lockdown began in March, the city has already listed 1,861 infections of whom 1,516 have recovered.
In the Southern Philippines Medical Center, the country’s largest government hospital based in Davao City, it reported 23 new cases in the region on Monday, for a total of 307 active cases. It has admitted 1,994 persons so far since March this year, of whom 1,603 have recovered. Positivity rate went down to its lowest at 1 percent, the Department of Health has also reported. This is the percentage of the number of persons who were likely to have been infected because of their contact, or who have showed symptoms similar to that of the Covid-19 infection. Before taking a leave of absence beginning Monday, Mayor Sara Duterte-Carpio posted a reminder to city residents to keep close guard against complacency. Mayor Sara said she was told by government doctors to warn city residents of the extent of local transmission going on. “Consider everyone infected. Do not let your guard down, especially those whom you know. It’s not because you are friends that he or she is not possible Covid-19 carrier,” she said. Only last week did the mayor disclose that 40 passengers of an airline tested positive despite a standing requirement in Manila, or elsewhere, that incoming passengers should have a negative result of their swab test at least two days before taking the flight to the city.
By Lenie Lectura
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@llectura
HE National Electrification Administration (NEA) is pushing for an increase in its budget for 2021 to P9 billion, from the P1.8-billion recommendation of the Department of Budget and Management (DBM). The agency, which oversees 121 electric cooperatives (ECs) in the country, initially proposed P10.8billion budget for next year’s projects. These include the Sitio Electrification Program (SEP) Phase II, Barangay Line Enhancement Program, Strategized Sitio Electrification for Off-Grid Areas, among others. But the DBM recommended a P1.8-billion subsidy as indicated in the 2021 National Expenditure Program (NEP). Of which, P1.6 billion would be set aside for SEP and P200 million for Electric Cooperatives Emergency and Resiliency Fund. NEA welcomed on Tuesday the resolution filed by the “power bloc” of the House of Representatives that seeks to restore P9 billion in its budget for 2021. Power bloc representatives filed last September 22 House Resolution 1245 urging the House Committee on Appropriations to restore the P9 billion in the NEA’s proposed budget for the implementation of the government’s electrification projects. NEA Administrator Edgardo Masongsong said the additional budget is important to realize the goal of
one by one, as quarantine restrictions, especially in the regions, are being relaxed. At the strictest of the lockdown in April and May, over 38 percent of MSMEs reported they shut down their shops. This number fell to 11 percent in June and July when the government eased quarantine protocols. It dropped to its lowest at 6 percent in August and September. According to the UNDP, the survey on MSME condition was conducted to supply policy-makers with data that they can use in crafting policies and interventions. The poll gathered the insights of 285 MSMEs from all over the country. The results of the UNDP survey were presented to some 170 MSME owners and development organizations in a recent forum organized by UNDP Philippines and PDRF.
total electrification by 2022. “NEA will appreciate a favorable action from Congress as initiated by the power bloc for the restoration of the original request for subsidy if only to fast-track the national government’s Total Electrification Program,” Masongsong said. Masongsong said the DBM-recommended P1.6-billion subsidy for SEP will only energize 1,085 sitios. Some 12,000 sitios, or 1.7 million households across the country, remain without access to electricity to date. The power bloc representatives Presley de Jesus, Sergio Dagooc (APEC), Godofredo Guya and Adriano Ebcas (Ako Padayon Pilipino) said restoring the proposed budget will allow NEA to energize an additional 3,915 sitios and enhance the grid connections of 74 barangays, including seven barangays under the National Task Force to End Local Communist Armed Conflict, and 13 submarine cabling projects. The proposed budget, the lawmakers said, will also augment the recommended P200-million budget for ECERF, a financial assistance for the restoration of damaged infrastructure after a fortuitous event. “To be able to fully and effectively implement the directive of President Duterte, as well as to finally provide access to electricity for all Filipinos, the NEA should be given the full amount it has proposed,” the power bloc representatives stressed in their House resolution.
unit] of Cebu intervene in the retrenchment process to ensure that the OECD guidelines are observed in the MEPZ,” Organization of Metrowear Employees for Genuine Advocacy (OMEGA-PIGLAS-SENTRO) President Carmina A. Golosino said in a news statement. Metrowear was among the companies in the MEPZ, which reportedly implemented the retrenchment amid the company’s financial woes caused by the pandemic. L abor A ssist a nt Secret a r y Dominique Tutay confirmed they already have initial information on the reported retrenchment. However, she said, based on the report from their regional office (RO) in Central Visayas, the said companies complied with prescribed regulations before initiating the said retrenchments. “The company coordinated with DOLE-RO 7 and gave the necessary notification [to the affected workers],” Tutay said in a Viber message.
DOJ chief eyes probe into delay in procurement of meds for PDLs By Joel R. San Juan
@jrsanjuan1573
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HE Department of Justice (DOJ) is set to look into a report issued by the Commission on Audit (COA) that the Bureau of Corrections (BuCor) has put the health of the more than 50,000 persons deprived of liberty (PDLs) under its care at risk due to the delay in procurement of medicines. Justice Secretary Menardo Guevarra stressed that the availability of medicines for PDLs is necessary in this time of pandemic, which has claimed the lives of more than 20 PDLs and infected more than 300 others. “I will certainly look into this. I’ll wait for the BuCor explanation,” Guevarra said. “In a congested prison where the risk of getting sick is very high, medicine is next only to food in terms of essentiality. Any delay in its procurement and delivery should immediately be addressed,” the justice chief said. Based on the audit report released by the COA, there was a delay in the procurement process for the medicines and drugs intended for the PDLs last year prior to the pandemic. It added that the delay in the procurement process exceeded three months, which is the maximum allowable period under Republic Act 9184 or the Government Procurement Reform Act. The report also indicated that seven procurement contracts with a total amount of P65.53 million worth of medicines and drugs were awarded to the winning bidders beyond the 90-day allowable period. The COA has advised BuCor Director General Gerald Bantag to strictly adhere to the provisions of RA 9184. BuCor officials said the delay in the procurement process may have been due to the suspension by the Office of the Ombudsman of the BuCor Bids and Awards Committee. The BuCor has a population of more than 50,000 with more than 28,000 at the New Bilibid Prisons in Muntinlupa.
Stakeholders hail prioritization of local materials in BBB program infra projects
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TA K EHOLDER S have welcomed the government’s move to prioritize local construction materials for its “Build, Build, Build” (BBB) program and underscored their commitment to provide quality goods for current and upcoming infrastructure projects. In a joint statement, the Cement Manufacturers Association of the Philippines (CEMAP) and Philippine Iron and Steel Institute (PISI) expressed full support for the government initiative, saying it will help spur the country’s economic recovery, preserve jobs and contribute to the national income through taxes. “The Philippine building materials industries, especially the cement industry, is confident and ready to ensure that our Philippine infrastructure projects will have adequate materials supply from companies that are proud to be manufacturing locally,” said CEMAP Executive Director Cirilo Pestaño. PISI President Roberto Cola, for his part, assured that the steel industry will provide ongoing and upcoming government projects with the best quality of building materials, including Philippine steel. Cola, in a phone interview, also said that PISI is also looking out for the safety and welfare of consumers when they purchase building materials, such as steel bars, from small hardware and other retail stores. “Some people are taking advantage of the situation. Nakakasira iyan sa buy
local at sa consumers na siyang maaapektuhan niyan ultimately,” said Cola, referring to substandard steel bars being sold in small markets. “Ang problema natin, iyong mga nagpupunta sa hardware stores. Mga maliliit na contractor at consumer na hindi nila alam ang standard. Ang problema nasa resellers, at hardware na siyang mas malaking merkado,” he added. The two associations are at the forefront in the battle against substandard and mislabeled construction materials, such as cement and steel bars. CEMAP is on guard against mislabeling of imported cement and passing it off as locally manufactured while PISI is on the lookout for substandard steel bars being sold in the market. Recently, Pestaño brought to the Department of Trade and Industry’s attention the possible noncompliance of Philcement Corp.’s “Union V Super Strength 40” Type 1P cement to Philippine National Standards (PNS) and Department Administrative Order (DAO) 17-06, or the new rules covering cement in the country. Pestaño alleged that Philcement Corp. is one of the companies engaged in cement importation but the packaging on one of its products being sold in Pampanga carries the markings “Manufactured by Philcement Corporation” and “Product of the Philippines.” “Was this product actually manufactured in the Philippines?” Pestaño asked in his letter to Undersecretary Ruth Castelo, head of the DTI’s Consumer Protection Group.