Manila Standard - 2018 August 14 - Tuesday

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PALACE SHOCKED AS HOUSE BLOCKS BUDGET in a bid to get the Department of Budget and Management to back down on its cash-based budgeting system that lawMALACAÑANG on Monday expressed makers oppose. alarm at the sudden decision by House “We are completely shocked at the releaders to suspend budget deliberations sistance of the House because we were

By Vito Barcelo and Maricel V. Cruz

confident that when there was a change of leadership [in the House of Representatives] we would still deal with very close allies,” said Presidential Spokesman Harry Roque. In a radio interview, Roque said the

Palace has had no problems with the national budget in the last two years. “Although there is now a change of leadership, the President, of course, is expecting the usual cooperation from an equally strong ally, Speaker Gloria Ma-

capagal Arroyo,” he said. “The chairman of the committee on appropriations has not been changed; it’s still congressman Karlo Nograles. So we’re quite frankly surprised at this recent Next page

Watch for

Manila Standard’s

Special Report on the Economy August 15, 2018

VOL. XXXII • NO. 180 • 3 SECTIONS 16 PAGES • P18 • TUESDAY, AUGUST 14, 2018 • www.manilastandard.net • editorial@manilastandard.net

ALLIANCE SIGNED. Hugpong ng Pagbabago, a regional political party of Davao City Mayor Sara Duterte, has signed an alliance with eight local and national political parties in Aseana, Parañaque, which political observers say can be a major force in the coming 2019 mid-term elections. With Duterte is Ilocos Norte Gov. Imee Marcos of Ilokano Timpuyog, Senator Cynthia Villar of the Nacionalista Party and Senator Joseph Victor Ejercito. (Story below the fold) Lino Santos

DoF sees P1.2-t add’l deficit Pet food, pills don’t make a merry mix PHNOM PENH—Cambodian authorities seized nearly 100 kilograms of ecstasy hidden in pet food shipments from Germany, police said Monday, after charging Next page

Federalism to cost 6.7% of GDP each year By Julito G. Rada

T

HE chief economist of the Finance department said Monday that the government would incur a budget deficit of P1.2 trillion or about 6.7 percent of gross domestic product under the provisions of the draft federal constitution, a situation that he said was not viable. “That’s [an] additional P1.2-trillion deficit if we follow what we think they are talking about,” said Finance Undersecretary Gil Beltran in a briefing

WEATHER LPA, 3 storms pose new threat By Rio N. Araja and Macon R. Araneta A LOW pressure area near Batanes and three storms outside the Philippine area of responsibility will Next page

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It seems the situation has been reversed. We might no longer need a Minority Floor Leader because the ones in power in Congress are acting like the minority. —Presidential Spokesman Harry Roque, reacting to the decision of the House of Representatives to suspend budget deliberations

Monday. “For instance, allotment to federal regions will go up to P744.9 billion based on the formula of 50 percent. And capital transfers would be P251.1

billion. So that is already almost P1 trillion. And the equalization fund would be about P131 billion.” Other expenses would be taxes transferred to the federal regions (about P168 billion), a block grant to the Bangsamoro region (about P100 billion) and a similar grant for the Cordillera Autonomous Region (P100 billion). “If you add all of those, it will be about P560 billion, which would be taken out of the federal government, meaning we would be cutting federal government Next page

Primer on draft Con-Com Charter

PRESIDENT Rodrigo Duterte on Monday fired top officials of the Armed Forces of the Philippines Medical Center over P1.4 billion in alleged ghost transactions, and ordered court-martial proceedings against them. Presidential Spokesman Harry Roque said the President has ordered the relief of Brig. Gen. Edwin

New modus on shabu gets past X-ray

Con-Com 2018 Member

(17th of a series)

Sara’s Hugpong wins over eight political parties

By Vito Barcelo and Francisco Tuyay

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By Fr. Ranhilio Callangan Aquino

Q: Will the constitutional commissions maintain their status under the Con-Com’s Draft? A: They will, and their independence is strengthened. There will be more constitutional commissions: Aside from the Civil Service Commission, the Commission on Audit, and the Commission on Elections, the Commission Rights is elevated to the rank of an independent constitutional commission, as is the Ombudsman (this time as a Commission), and the Competition Commission. Next page

Duterte axes top brass of V. Luna MC

By Vito Barcelo

SWATHE OF DESTRUCTION. The Mangas-

Esperanza Bridge in Alfonso, Cavite (top) collapsed Sunday due to erosion caused by the unforgiving monsoon rains that also inundated parts of Metro Manila, and whacked Roxas Blvd. (left) and other areas of the capital with debris, while families affected by the calamity stay comfortably (below) inside these modular tents bought by the city government of Marikina as this one in barangay Malanday. Norman Cruz, Lino Santos with PNA

THE P6.8 billion worth of shabu that entered the Manila International Container Port undetected was smuggled in through the use of a new modus operandi, Malacañang said Monday. Palace Spokesman Harry Roque said the shabu slipped past Customs through the use of a magnetic lifter that could not be detected by X-ray machines. He told reporters Customs was doing everything to stop the entry of illegal Next page

By Vito Barcelo

P125-m ‘hot’rice seized; trader rapped

HUGPONG ng Pagbabago, a regional political party of Davao Mayor Sara Duterte, has signed an alliance with eight local and national political parties in Aseana, Parañaque, and could be a dominant force in the coming 2019 local elections. President Rodrigo Duterte’s daughter, better known as Inday Sara, spearheaded the signing along with Ilocos Norte Gov. Imee Marcos, former President and now Manila Mayor Joseph Estrada,

CUSTOMS agents seized P125 million worth of smuggled rice at the Manila International Container Port on Monday. The 50,000 sacks of rice came from Thailand and were processed by customs broker Diosdado Santiago. The shipment arrived on June 14 without the necessary import permit from the National Food Authority, Bureau of Customs Commissioner Isidro Lapeña said in a statement. The shipment was consigned to Sta.

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