Purchasing decisions were easy enough during the lockdown, with most people stripping down to essentials only like groceries. There was some wiggle room on utilities and rent because of grace periods ordered by the government. But looking forward, the question on many business owners鈥� minds is whether consumer confidence will ever return with the economy鈥檚 prospects remaining clouded.

In a paper, Consumer Fear in a Post-Quarantine Economy, University of Asia and the Pacific (UA&P) economists George N. Manzano and Nikka C. Pesa said fear of infection will cause consumers to forego many transactions to avoid having to go out and risk contact with others.

鈥淏ecause reliable information is absent or hard to come by, everyone will suspect that the person 鈥� co-worker, client, service provider, etc 鈥� could be a potential carrier. Given the perceived risk, (consumers) will forego the transaction leading to a loss of potential business,鈥� they said.

Luis F. Dumlao, Dean of the Ateneo de Manila University School of Management, said that the most significant change in consumer behavior during the coronavirus pandemic is the 鈥渙verall reduction of aggregate consumption.鈥�

鈥淚t is not that consumers are reprioritizing as if their behavior change is by choice, but it is more that consumers are forced to change their behavior to adapt to the situation,鈥� he said in an e-mail.

Fitch Solutions, in a report, Philippines And COVID-19: Impact On Consumer Sector, estimated that real household spending will only grow by 3.4% this year, against 5.4% in 2019.

鈥淲e highlight that consumers are placing a greater focus on essential spending categories. For consumers in countries where a lockdown has been initiated, and for consumers who believe that their governments might implement this measure, the spending focus is narrowing further, with a concentration on priority purchases (food and non-alcoholic drink and health spending),鈥� Fitch Solutions said in May.

Speaking at the 大象传媒 Insights Forum, Gary de Ocampo, president of the market research agency Kantar Philippines, Inc., said pantry stockers during the pandemic tended to favor food with long shelf lives, sanitizing products, vitamins and supplements.

鈥淔ilipino adults also claim to be eating healthier, trying out new recipes, sleeping more, exercising more and focusing on personal development. In terms of purchasing behavior, overall obviously declined across all channels. Even though majority understandably cut down mostly on non-essentials, many are compelled to switch to buying groceries near their homes and depended on home delivery,鈥� he added.

Mr. De Ocampo said one-third of Filipino adults tried out e-commerce for the first time since the start of the lockdown, while television viewing, radio, and social media consumption spiked.

鈥淎 great majority look forward to meeting friends and relatives again and going back to church. These things, as well as other outdoor activities, are expectedly hard decisions to make as Filipinos struggle between wanting to step out of their home on hand and needing to ensure their own safety on the other,鈥� he said.

McKinsey & Co. Singapore Partner Simon Wintels said consumers will assign a higher importance to affordability due to the uncertain economy.

鈥淵ou need to think about value-for-money and affordability, as well as (reduce) discretionary spending. Filipinos are thinking about postponing up to 50% big-ticket items and that will have a significant impact on the economy,鈥� he said at the Insights forum.

IMPACT ON BUSINESSES
The common perception is that those selling essential goods, like groceries and pharmacies, must have been among the least damaged by the downturn, but even they have had to survive staggering declines in business, while spending more on protective measures.

In a presentation to the House Committee on Trade and Industry in mid-May, Philippine Retailers Association (PRA) Chairman Paul A. Santos said foot traffic in the retail sector fell 81% from baseline levels in March.

He added that lost foot traffic for groceries and pharmacies was also significant 鈥� down 59% from baseline levels.

鈥淚t is the drugstore and supermarket sub-sectors that have been least affected by this crisis. Yet one drug store retailer reported that while its business may have remained stable or even increased, such gains were offset by expenses incurred for providing housing and transportation to its employees, as well as expenditures for personal protective equipment and the constant need to sanitize store premises,鈥� Mr. Santos said.

鈥淔or a lot of retail businesses, 2020 is just a matter of survival now,鈥� Mr. Santos said in another briefing organized by the German-Philippine Chamber of Commerce and Industry, Inc.

鈥淔or us, just to be able to stay alive until the end of the year is a blessing. We have to look to the future to be able to get by, to be able to survive these very trying times for our business. It鈥檚 still too early to tell but some of my colleagues were estimating that we have lost maybe around 30 to 50% of sales volume for 2020 compared to 2019,鈥� he added.

Robinsons Retail Holdings, Inc. Vice President Gina Roa-Dipaling said foot traffic has indeed fallen off, but the decline in foot traffic was 鈥渕ore than compensated鈥� by the increase in average transactions, or what retailers call basket size.

鈥淭he most bought products are canned goods, instant noodles and cleaning products. Consumers will continue to prioritize purchasing groceries and drugs,鈥� she said in an e-mail.

E-commerce companies said the lockdown increased their virtual 鈥渇oot traffic,鈥� and expanded the lineup of companies seeking to sell on their platforms.

鈥淲e have observed more Filipinos going online to meet their everyday needs as people live, work, and play from home. Search and shopping activities have seen an increase in the past three months, especially when it comes to essential goods like groceries, health products, and personal care items,鈥� Shopee Public Relations Head Erin Tagudin said.

She said that Shopee has partnered with various brands, sellers and logistics partners to ensure it can meet demand.

鈥淲e are also working together with various brands and sellers, including our logistics partners, to ensure that we鈥� continue to provide greater convenience as (consumers) shop online. We will also continue to work with sellers and brands to ensure that we meet the demands of our shoppers and provide convenient access to their daily needs,鈥� Ms. Tagudin said.

Despite the shift to online platforms from bricks-and-mortar stores, UA&P鈥檚 Mr. Manzano said that physical stores will remain important 鈥渁s the act of shopping might be an enjoyable (utility enhancing) activity.鈥�

鈥淚 would, however, mention that things will change when the vaccine is discovered. Old customs will come back, but not 100% because shoppers will already have experienced and gotten used to e-commerce,鈥� he added.

Meanwhile, Ateneo鈥檚 Mr. Dumlao said close contact cannot completely disappear since it is 鈥減art of our nature as humans.鈥�

鈥淏eing in close contact is part of our nature as humans so it cannot really disappear although it will slowly normalize in some new way. For example in the education sector, online learning will play a greater role. Still in the long run, when conditions allow, online learning will complement rather than replace onsite learning,鈥� he said.

What鈥檚 next?

In the post-lockdown world, MKS Marketing Consulting Chief Brand Strategist Karen V. de Asis expects a significant proportion of consumers to return to their normal routines.

鈥淣early 30% of Filipino consumers are likely to go back to their normal activities a day after the ECQ (enhanced community quarantine) is lifted while 28% expect to resume their activities one week after. Another 18% are taking things more slowly and said they will resume normal activity two weeks later,鈥� she said in a 大象传媒 special report.

She said that basic necessities, personal hygiene, and pharmaceuticals remain the top three categories even after the lockdown, while automobiles have been relegated to the back of the queue.

Ms. De Asis added that consumers will likely return to brands they are familiar with.

鈥淧ost-ECQ, (experimenting on new) products and services鈥� will be on a downtrend as money becomes tight鈥� and there remains an air of uncertainty,鈥� she said.

Kantar鈥檚 Mr. De Ocampo concurred, saying that consumers would want to 鈥渞eturn to what they know鈥� after the lockdown.

鈥淲hen we look at survey data, consumers are not saying they aspire for a new normal.They want to return to what they know and that鈥檚 the real takeaway from the spike in comfort foods. It points to consumers wanting less change, not more change. Routines will be affected but may not necessarily be in the ways being popularized right now as the new normal, and they will definitely also vary across industries,鈥� he said.

Because of the pandemic, Mr. De Ocampo said people will want to be prepared and not 鈥済et caught by surprise鈥� again.

鈥淲e think readiness will be the new sign of success, the new status symbol. (Consumers) will want to know where to get essentials within their environs. Think about pack sizes, different purchase cycles, long expiration dates, even do-it-yourself products. How about investments and insurance and also how about shopping features or pre-buying, guarantees to ensure availability. Also, think of the possible need for storage solutions because a safety pantry with long-lasting essentials may become a permanent fixture in most homes,鈥� he said.

UA&P鈥檚 Mr. Manzano said there will also be pent-up demand for 鈥渆xperience goods鈥� which require proximity and travel.

鈥淚 think there is still pent-up demand for鈥� concerts, tourism, trips to Disneyland, all of which require proximity and travel. I don鈥檛 think there will be a shift to minimalism in a big way,鈥� he said.

To stimulate demand, the UA&P economists said that firms should 鈥渟ignal鈥� consumers that they are meeting health and hygiene standards and that transacting is safe.

鈥淥ne of standard remedies when markets fail due to asymmetric information is to provide some sort of 鈥榮ignaling.鈥� A certificate of having been tested and found negative of the virus could be used as an instrument for signaling. Alternatively, a record of thermal scan readings for the past 21 days could likewise be employed,鈥� Mr. Manzano and Ms. Pesa said in their paper.

The economists said, however, that signaling will only work if it is credible.

鈥淚f the reliability of the current testing procedures in detecting asymptomatic carriers at all times is questionable, then the certificates of testing may not be very useful as a signaling instrument. Given the absence of credible signaling instruments to date, the fear factor will continue to hound the service sectors,鈥� they said.

Mr. Manzano and Ms. Pesa said that the economy will only be able to fully recover if consumer uncertainty is mitigated.

鈥淭he trajectory of the economic recovery will not be easy for a number of reasons. First, consumer confidence is already low given the loss of income and the looming unemployment will drag it even lower. Second, the 鈥榝ear鈥� factor arising from the risk of infection will dissuade many consumers from consuming services especially from the high-contact, intensive-service sectors. In the absence of a credible signaling instrument, that could mitigate the fear factor, the high contact service sectors would face a very difficult path to recovery,鈥� they said.

Unless a vaccine or treatment is discovered, PRA鈥檚 Mr. Santos said that fear, uncertainty and doubt (FUD) will linger in consumers鈥� minds.

鈥淭he predominant attitude for consumers during this pandemic is FUD: fear, uncertainty, and doubt, and this is what will underpin consumer behavior for 2020 and probably beyond until and unless either a vaccine is discovered for COVID-19 or an alternative low-cost, effective treatment for the virus is discovered. Without these two, FUD will always be in the back of the everyone鈥檚 minds,鈥� he said.

THE NATIONAL Telecommunications Commission (NTC) on Tuesday issued a cease-and-desist order against the direct broadcast satellite service of the Sky Cable Corp., a subsidiary of the embattled ABS-CBN Corp.

The NTC said in its order that the legislative franchise granted to Sky Cable had expired on May 4.

“Sky Cable no longer has a valid reason and subsisting congressional franchise to install, operate and maintain a direct broadcast satellite service,” it added.

NTC argued that the provisional authority it had issued to Sky Cable to operate and maintain a direct broadcast satellite in 251 cities and municipalities throughout the country was based on the company’s valid franchise.

The commission cited in its order Act No. 3846, which states that “no person, firm, company, association, or corporation shall construct, install, establish, or operate a radio transmitting station, or a radio receiving station used for commercial purposes, or a radio broadcasting station, without having first obtained a franchise therefor from the Congress of the Philippines.”

It also gave Sky Cable 10 days from the receipt of the order to explain why the frequencies assigned to it “should not be recalled for lack of the necessary congressional franchise as required by law.”

The company was also directed to “refund to all its subscribers those amounts representing unconsumed prepaid loads, deposits on subscriber equipment and devices, deposit or advance payment in monthly charges for postpaid subscribers, if any, charges collected from new applicants for the direct broadcast satellite service, and other charges collected.”

Also on Tuesday, the NTC released a separate order against ABS-CBN, directing it to immediately stop operating digital TV transmission in Metro Manila using Channel 43.

It argued that the order it had issued on May 5 “necessarily includes” the digital terrestrial television service in Metro Manila.

The NTC on Monday committed to the House of Representatives that it would order ABS-CBN to stop airing programs through digital television receivers or digiboxes.

ABS-CBN Chief Executive Officer and President Carlo Joaquin Tadeo L. Katigbak said that the network was willing to submit to the judgment of the NTC.

On May 5, the NTC ordered ABC-CBN, whose franchise had expired on May 4, to halt its broadcast operations.

In a statement , Sky Cable said its 1.5 million subscribers will be deprived of access to the channels it carries starting on Tuesday night.

PROTECTION OF ‘WORKERS’ RIGHTS SOUGHT
Separately on Tuesday, a labor group urged lawmakers to include provisions to protect workers’ rights in the bill granting ABS-CBN a new franchise.

“Hindi lamang po kaming humihingi ng simpleng pag-renew ng prangkisa ng ABS-CBN. Ang amin pong mungkahi bilang representate ng mga manggagawa ay ang pag-apruba ng mas magandang version na clearly ay pro-worker,” Sentro ng mga Nagkakaisa at Progresibong Manggagawa Campaign Manager Benjamin Miguel Alvero III said.

(We’re not just asking for a simple franchise renewal for ABS-CBN. Our call as workers’ representative is the approval of a better version that is pro-worker.)

He made the statement during the joint hearing of the House committees on Legislative Franchises, and Good Government and Public Accountability.

Mr. Alvero suggested that the bill should include the worker’s rights to self-organization, collective bargaining and negotiations, decent compensation and benefits, humane work conditions, and to be included in the system of profit-sharing.

“Tignan po natin itong pro-worker provisions bilang stepping stone upang ma-guarantee, masigurado na protektado ang mga manggagwa sa buong industriya ng broadcast,” he added.

(Let’s look at these pro-worker provisions as a stepping stone to guarantee and ensure the protection of workers in the entire broadcast industry.)

Mark Nepomuceno, former head of ABS-CBN corporate services group, said there are 4,340 regular employees under the network while there are 9,151 independent contractors and suppliers. This does not include employees under the network’s subsidiaries.

Asked by Kabayan Party-List Rep. Ron P. Salo why there are fewer regular employees in the network compared with independent contractors, Mr. Nepocumeno said it is “due to the nature of the industry.”

“I agree that the number of regular employees, compared to the project employees plus independent contractors will be a smaller percentage. What that exact percentage po, your honor, when we reconcile the numbers, we can arrive at that,” he said.

Labor and Employment Undersecretary Ana C. Dione said that while ABS-CBN is compliant with labor standards, Congress should also take note that there are 67 pending labor cases in the judiciary against the network since 1986. “With respect to the inspection after our findings, then we say yes they complied. We also note that there are pending cases, not in the Department of Labor but in other agencies. Kailangan po kasi tingnan nang whole kasi ‘pag sinabing (We need to look at it as a whole because if we say) compliant totally, I think that’s not a totally correct term,” she said.

Baguio Rep. Mark O. Go said that these cases should have been immediately resolved. “I think what should have been done here is we should have an immediate resolution of these cases. And as stated by Mr. Katigbak, they are willing to comply,” he said, referring to ABS-CBN’s top official. The two panels were discussing whether the media network violated labor laws to aid their decision in granting a new franchise. The committees will convene again on Wednesday.

THE PHILIPPINE capital does not need to revert to stringent lockdown measures and can just enforce localized quarantine in specific areas to contain the spread of the coronavirus, a World Health Organization (WHO) official said on Tuesday. 鈥淲e don鈥檛 believe that the situation in the Metro requires a reversal,鈥� WHO Country Representative Rabindra Abeyasinghe said in an online briefing. The localized lockdown policy can be applied nationwide at the town or village level when there are spikes in coronavirus disease 2019 (COVID-19) cases. Mr. Abeyasinghe said this strategy will not compromise both public health and the economy of the entire National Capital Region (NCR). The NCR, also referred to as Metro Manila, accounts for about a third of the country鈥檚 economic output, registering a 36% contribution to the gross domestic product in 2018. This is the biggest share among 17 regions. Mr. Abeyasinghe also emphasized the need to strictly maintain health safety protocols such as wearing of face mask, physical distancing and personal hygiene. President Rodrigo R. Duterte was expected Tuesday to announce adjustments in the quarantine category for Metro Manila and other parts of the country starting July 1. 鈥� Gillian M. Cortez

Senate reviewing amendments to proposed law on COVID measures

THE EXECUTIVE department has submitted its proposed amendments to the proposed law relating to response measures for the coronavirus crisis, and is in discussion with the Senate leadership for a possible special session for its passage, Senate President Vicente C. Sotto III said on Tuesday. 鈥淓arly this morning, the office of the committee on finance… has just received a proposal of their amendments to the Bayanihan 2 from the executive department,鈥� Mr. Sotto said in an online briefing Tuesday. 鈥淭he committee will review it. I鈥檓 sure Senator (Juan Edgardo M.) Angara will tell us what it鈥檚 about.鈥� Mr. Sotto also said he is expecting a call from Executive Secretary Salvador C. Medialdea on Wednesday regarding Malaca帽ang鈥檚 decision about the special session. The senator also recommended that before holding a special session, Congress leaders should meet with the executive department to settle amendments as they had done in the first Bayanihan law. 鈥淲hen I was talking with ES Medialdea last night, I suggested to him that if ever they would indeed call a special session… the leadership of the House, Senate and executive department (should) sit down first, and find out what we can agree on,鈥� he said. The Senate on June 3 approved on second reading Senate Bill No. 1564, the Bayanihan to Recover as One Act, which extends certain special power granted to President Rodrigo R. Duterte to address the crisis brought by the coronavirus disease 2019.

SONA
Meanwhile, Mr. Sotto said there are three proposals on how Mr. Duterte鈥檚 State of the Nation Address will be set up on July 27. One option is to have Mr. Duterte and only select members of the House and the Senate convene at the House of Representatives building. Another option is for Mr. Duterte to deliver his speech in Malaca帽ang while the legislators are at the House. 鈥淎nd another option, we are here in Senate, HoR in Batasan, and President is in Malaca帽ang,鈥� he said. 鈥� Charmaine A. Tadalan

Voter registration remains suspended until end-August

REGISTRATION OF voters for the 2022 national elections has been suspended anew in consideration of the continued coronavirus outbreak, the Commission on Elections (Comelec) announced Tuesday. The suspension will be in effect until Aug. 31 this year. 鈥淭he suspension was previously set only until June 30 but was extended for two more months in view of the still rising number of COVID-19 cases nationwide,鈥� Comelec Spokesperson James B. Jimenez said in a statement. The commission first suspended the operation of all its offices on March 9 until March 31, then extended to April 30 and again to June 30. 鈥淥ur field personnel continue to outfit their existing offices and procure supplies in order to be COVID-19 ready,鈥� Mr. Jimenez said, 鈥淲e are continuously refining our guidelines and health safety protocols so that we do not contribute to the further spread of the virus.鈥� 鈥� Charmaine A. Tadalan

Lawmakers order social welfare dep鈥檛 to give updated data on PWDs

LAWMAKERS IN the House of Representatives on Tuesday asked the Department of Social Welfare and Development (DSWD) to provide an updated data on persons with disabilities (PWDs) for more relevant legislation. 鈥淭his is very difficult because when we continue doing our plans and programs and allocating budgets both local and national, we should have a basis for all these programs in place. And benchmarks are always used also to evaluate how far we have done in reaching these marginalized sectors,鈥� Bohol Rep. Edgar M. Chatto said during the virtual hearing of the House committee on PWDs. 鈥淚f there is no data, then what we are just gathering is the number of persons served but we are not taking cognizance of what percent of the total PWD population has really been served,鈥� he added. DSWD Division Chief Miramel G. Laxa said she will raise the matter to the agency, acknowledging that there is currently no organized data available. Ms. Laxa said the agency, based on 2016 statistics from its National Household Targeting Office, has a record of more than 823,000 households with PWDs, of which 545,882 are non-poor households while 277,132 are poor. She reported that the agency was able to serve 1,187 PWDs affected by the coronavirus pandemic from January to May through its crisis intervention unit. DSWD is still finalizing the number of PWDs who received emergency subsidy under the social amelioration program. 鈥� Genshen L. Espedido

Salceda warns of closed POGOs reopening under different ownership

THE GOVERNMENT should 鈥渨atch out鈥� for shut Philippine Offshore Gaming Operators (POGOs) that may reopen under different ownership to avoid tax dues, a senator said on Tuesday following reports that two POGOs have exited the country. 鈥淧OGOs will still be liable to the law, as withholding agents of their income tax liabilities. We should watch out for the operators of these POGOs, as closure may be used by some as a tactic to reopen under different declared ownership, with the real owners and operators being able to evade previous tax liabilities,鈥� said Albay Representative Jose Maria Clemente S. Salceda, who chairs the House of Representatives ways and means committee. Mr. Salceda also reiterated the need to pass bills establishing a tax regime for POGOs. House Bill 5777, which seeks to impose a 5% franchise tax on POGOs and a 25% withholding tax on foreign workers, was approved at the committee level in December. Its counterpart measure, Senate Bill 1295, is pending at the committee level. 鈥� Genshen L. Espedido

THE National Telecommunications Commision (NTC) committed to the House of Representatives that it would order ABS-CBN Corp. to stop airing programs through digital television receivers or digiboxes.

During the joint hearing of the House Committees on Legislative Franchises, and Good Government and Public Accountability on Monday, NTC Commissioner Gamaliel A. Cordoba said that ABS-CBN’s airing through digiboxes is part of the cease-and-desist order issued by the agency on May 5.

“Iyong pag-ere ng ABS-CBN ng digital TV sa Channel 43 ay kasama sa cease-and-desist order dahil ang franchise na ginamit nila for digital broadcasting ay ‘yung ABS-CBN,” he said, referring to the media network’s franchise that expired on May 4.

(ABS-CBN’s airing of digital TV on Channel 43 is part of the cease-and-desist order because the franchise used for digital broadcasting is that of ABS-CBN.)

To clarify, Anakalusugan Party-List Rep. Michael T. Defensor asked, “Kaya ang ibig mong sabihin, nu’ng ‘nag cease-and-desist ka, ‘yung frequency na ‘yan, kahit anong program na nandiyan, dapat huminto. At ang commitment mo ngayong hapon, ihihinto mo lahat ng programa?”

(What you’re saying is when you issued the cease-and-desist order, whatever program is in that frequency should stop. And your commitment this afternoon is to stop all programs?)

In response, Mr. Cordoba replied, “Yes, your honor.”

The digibox transmits channels exclusively airing cartoons, music videos, movies, Asian dramas and reruns of ABS-CBN programs, as well as a pay-per-view service called Kapamilya Box Office (KBO).

Mr. Cordoba said the NTC had received guidance from the Office of the Solicitor General that the agency must issue an alias cease-and-desist order against the continued broadcast of ABS-CBN programs through the digibox.

“Ang advice po ng SolGen (Solicitor General) is for us to issue an alias cease-and-desist order reiterating po ‘yung aming naunang cease-and-desist,” he said.

(The SolGen’s advice is for us to issue an alias cease-and-desist order reiterating our previous cease-and-desist [order].)

ABS-CBN Chief Executive Officer and President Carlo Joaquin Tadeo L. Katigbak said that the network is willing to submit to the judgment of the NTC.

“Of course, we are willing to submit our judgment to the regulatory agency. ‘Yung hinihingi lang po namin (What we’re just asking for) is to make sure we are given due process so we have the right venue to express our position on this matter. And then whatever decision the NTC comes up with, we will respect the regulatory agency po,” he said.

Meanwhile, Cavite Representative Jesus Crispin C. Remulla said there is a “ripe” Ombudsman case against Mr. Cordoba for allowing ABS-CBN to operate through digibox eight weeks after its franchise expired.

“Mr. Chairman, I believe that we found a ground for this committee to file a case with the Ombudsman against Commissioner Cordoba because he has willfully disobeyed the power of Congress to issue franchises and allowing an entity to operate without a franchise and earn money at the same time,” he said.

Bulacan Rep. and Chairman of the House Committee on Good Government and Public Accountability Jose Antonio R. Sy-Alvarado said that the committee had taken note of Mr. Remulla’s remark, adding that the panels will take up the matter in the succeeding hearings.

To aid their decision in granting a new franchise to ABS-CBN, the two panels were discussing whether the media network committed a violation when it continued to air programs through digibox. The committees will convene again on Tuesday.

THE Philippine Center for Postharvest Development and Mechanization (PhilMech) told Congress on Monday that it is proposing a P5.6-billion budget for next year to support mechanization programs under the Rice Competitiveness Enhancement Fund (RCEF).

In a presentation to the House Committee on the North Luzon Growth Quadrangle, PhilMech Executive Director Baldwin G. Jallorina said that the P5.6 billion includes allocations for programs under RCEF (P5.1 billion), personnel services (P133 million), overhead (P87 million) and research (P302 million).

RCEF is designed to help farmers better compete with imported rice and is funded with P10 billion per year in tariffs collected from rice imports.

RCEF also includes programs for seed development, propagation and promotion; credit assistance to farmers and cooperatives; and farmer training.

Asked by House Deputy Speaker Deogracias Victor B. Savellano if PhilMech has programs to repair machinery, Mr. Jallorina replied, 鈥淩ight now the RCEF mechanization program gives away brand new equipment but no provisions for repair.鈥�

Agriculture Undersecretary Rodolfo V. Vicerra said Agriculture Secretary William D. Dar has ordered regional offices to monitor farm machinery that can be repaired.

鈥淚n the last two weeks kasama po ito sa mga priority na in-order po ni Secretary William Dar sa lahat ng ating mga regions na i-monitor 鈥�yung mga pwedeng ma-activate na mga farm machineries. Dapat po talaga mabigyan natin ng tulong 鈥檡ung mga farmers natin kasi nga po farm machineries are not their primary area of competence and we need to be able to assist them (This was among the priorities set in the last two weeks by the Secretary 鈥� for the regions to look out for machinery that can be activated, to help the farmers, because repair is not their primary area of competence),鈥� Mr. Vicerra said.

The Northern Luzon regional offices of the Department of Agriculture (DA) proposed budgets worth P24.3 billion for next year.

DA-Region I proposed a P8-billion budget, well above its actual P1.7 billion allocation this year. Personnel services will get P178 million, maintenance and other operating expenses (MOOE) P1.8 billion, and capital outlays P5.9 billion.

DA-Region II proposed an P11-billion budget, including personnel services of P225 million, MOOE P6.9 billion, and capital outlays of P4.8 billion. It had a budget of P1.74 billion this year.

DA-Cordillera Administrative Region proposed P5.34 billion, against its 2020 budget of P1.28 billion, with a personnel services allocation of P143 million, MOOE P1.39 billion, and capital outlays P3.80 billion.

Budget deliberations in Congress are usually held after the President鈥檚 State of the Nation Address in July. 鈥� Genshen L. Espedido

“We hope that more funding is given to MSMEs (micro, small and medium enterprises) especially because they do comprise about 99.6% of all the businesses here and they provide 70% of jobs in the Philippine workforce. So it’s very important that we give them all the support that they need,” Las Piñas Rep. Camille A. Villar, who is also a vice-chair of the House committee on MSME development, said in a televised interview on Thursday.

Small Business Corp. (SB Corp.), the financing arm of the Department of Trade and Industry, had announced it was opening a loan program for MSMEs to help them recover.

Its P1.5-million loan allocation is open to micro and small businesses that have been in at least a year of continuous operation by March 2020, and those that “suffered drastic reduction” in business during the pandemic.

Loans can be applied to keeping loan amortizations for vehicles and other fixed assets up to date, inventory replacement for damaged perishable stock, and working capital to restart the business.

Micro enterprises with assets of up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger than P10 million may borrow up to P500,000.

Initially, SB Corp. was to impose a 0.5% interest per month, but later scrapped the interest and would only charge 6% service fee. MSMEs that availed of the loan also have a six-month grace period before they start paying the loan for up to 30 months.

However, SB Corp. has reportedly stopped accepting new loan applications last week as the fund was not enough to cover small businesses still reeling from the effects of lockdowns and movement restrictions imposed more than three months ago.

“One of the reasons why it’s very important to discuss the plight of MSMEs is because now you have different sectors really in need of help during this pandemic. Sometimes we overlook MSMEs and the needs of our MSMEs and we focus on the other sectors,” Ms. Villar said, adding that information dissemination is key to address MSMEs’ concerns.

The House of Representatives passed the proposed P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy of the Philippines (ARISE) bill to boost economic recovery.

Under the measure, P50 billion will be allocated to SB Corp. for existing loans programs for MSMEs for this year and another P25 billion next year while the Philippine Guarantee Corp. will get P20 billion this year and another P20 billion in 2021.

“This (ARISE bill) would have addressed the additional funding for SB Corp. and other government financial institutions like Landbank, Philippine Guarantee Corp. which have programs to help MSMEs. We’re hoping to pass this in August to give help and support to our MSMEs,” Ms. Villar said, but conceding that it may be difficult to implement the measure since the government may not be able to fully finance a total of P1.3 trillion in recovery programs under the measure. 鈥� Genshen L. Espedido

鈥淭he annual chalk allowance for teachers will not be sufficient to provide a stable Internet connection that will last the whole school year,鈥� ACT Teachers Party-List Rep. France L. Castro said in a statement on Sunday.

鈥淧roviding public school teachers a monthly P1,500 for Internet connection would greatly help them cope with the demands of the new normal imposed by the Department of Education (DepEd) and not worry about out-of-pocket expenses,鈥� she added.

DepEd and the Budget department must enforce the rules that will implement the measure.

The Education secretary must periodically review the allowance, which may be increased if needed.

Ms. Castro said DepEd must also fund materials, tools and gadgets needed by teachers once classes open.

鈥淲e have seen photos on social media where teachers had to stay at highways or cross mountains just to get a stable Internet connection for their webinars and online fora,鈥� the lawmaker said.

Teachers and students should not be burdened with additional expenses under the new normal, she added.

Education Secretary Leonor Magtolis-Briones on June 8 said face-to-face classes would be banned until a vaccine for the novel coronavirus is found.

Schools should adopt blended learning methods including online classes when schools open on Aug. 24, said. 鈥� Genshen L Espedido

A LAWMAKER is calling for the immediate passage of a bill that will establish a unified cashless collection system in tollroads, which has become more critical for minimizing physical contact as the coronavirus threat lingers. 鈥淚n the absence of a cure or vaccine for COVID-19 (coronavirus disease 2019), and with the still increasing number of confirmed infections in the country, we must continue finding ways to help contain the spread of the virus and save more lives,鈥� Valenzuela Representative Weslie T. Gatchalian said in a statement on Friday. House Bill 6119, which was filed in February, will require tollroad operators to implement technologies and business practices that allow for interoperability. The proposed law also mandates the Department of Transportation, in collaboration with the Department of Science and Technology, to create a multi-protocol radio frequency identification (RFID) tag. The bill is currently lodged with the House Committee on Transportation. 鈥� Genshen L. Espedido

20 free WiFi sites in Basilan to be launched June 30

TWENTY FREE WiFi hotspots in the cities of Isabela and Lamitan in the island province of Basilan will be launched June 30, the Department of Information and Communications Technology (DICT) announced on Sunday. DICT, in a statement, said the free WiFi sites are expected to 鈥減romote the use of information and communications technology to improve the delivery of critical government services, and provide a lower entry barrier for new Internet users, among others.鈥� DICT-Mindanao Cluster 1 Director Maria Teresa M. Camba explained that the project started in December 2019, with 鈥渁 backhaul link from Zamboanga City鈥� installed to connect Isabela City and a similar set up was made for Lamitan. 鈥淲e cannot emphasize further the importance of connectivity and access, especially amid the health crisis we are in. It has become the lifeblood of our society, providing a sense of normalcy in our lives. And with that, it is your DICT鈥檚 duty to ensure the whole country are afforded this right, including the remotest part of the country,鈥� DICT Secretary Gregorio B. Honasan II said. The province鈥檚 new Wi-Fi hotspots will be located in the following: DICT Basilan Provincial Office; Basilan National High School; Basilan Provincial Capitol; Basilan Provincial Disaster Risk Reduction Management Office; Basilan Provincial Library; Infantry Brigade 101 Headquarters, Isabela City; Isabela City Hall; Isabela City Maritime Police; Isabela City Port; Isabela City Post Office; Malamawi National High School; 18^th Infantry Battalion, Armed Forces of the Philippines Camp, Lamitan City; Business Center, Lamitan City; Datu Kalun Plaza, Lamitan City; Digital Hub, Lamitan City; Disaster Risk Reduction Management Office, Lamitan City; Lamitan City Hall; Lamitan City Health Office; Lamitan City Port; and Lamitan City Infirmary. 鈥� Arjay L. Balinbin

Eastern Visayas temporarily bans returning residents until July 8

RESIDENTS OF Eastern Visayas Region who were locked out during the strict quarantine period and have been stranded in other parts of the country will not be allowed to return to their hometowns until July 8. The temporary ban took effect Sunday, June 28, based on an advisory issued by the regional task force handling the coronavirus disease 2019 (COVID-19) response. 鈥淲ith the spike of COVID-19 cases attributed to the returning residents and appeals made by Local Chief Executives,鈥� reads the advisory, the national task force approved the region鈥檚 request for a moratorium on the entry of returning residents. The ban does not include overseas Filipino workers with the required documents. Outbound travel is also allowed. 鈥淚n line with the approved resolution, LGUs (local government units) and other concerned agencies/frontliners are advised that the implementation of the TEMPORARY suspension of inbound travel (via land, sea or air) of Locally Stranded Individuals or LSIs to Region 8 will be effective at 12:00am, 28 JUNE 2020 until 12:00am, 09 JULY 2020,鈥� the advisory states. From only 28 cases as of May 26, mostly in one locality and with no fatalities, the region鈥檚 COVID-19 patients has shot up to 499 as of June 28, based on data from the Department of Health regional office. Eastern Visayas is composed of six provinces: Biliran, Samar, Eastern Samar, Northern Samar, Leyte, and Southern Leyte. The region currently has two accredited testing laboratories and LGUs have set up isolation facilities. 鈥� MSJ

MMDA seeks resumption of boat ferry services

THE METRO Manila Development Authority (MMDA) is preparing to resume boat ferry operations along Pasig River, an official said on Sunday. Michael Salalima, chief of staff of the MMDA Office of the General Manager, said in an interview with DZBB on Sunday that they are already finalizing the documents that will be submitted to the national task force for assessment and approval. 鈥淚n the coming days, hopefully mapabilis ang pagkuha namin ng (we can speed up the) authorization,鈥� he said. 鈥� Gillian M. Cortez

Immigration staff in Clark, Cebu airports up next for COVID testing

BUREAU OF Immigration (BI) personnel at the international airports in Clark and Cebu are up next for rapid testing for the coronavirus disease 2019 (COVID-19). Majority of those at the country鈥檚 main gateway in Manila have undergone the quick test, with only 12 of 1,026 showing positive result. All the 12 already had a negative result in the confirmatory swab test, the BI said in a statement. Another 28 employees have yet to be tested. 鈥淲e remain cognizant of the fact that until we defeat this virus, our frontliners are continually exposed to the risk of getting infected every time they perform their duties,鈥� BI port operations chief Grifton SP. Medina said. About two-thirds of the 1,026 immigration personnel in NAIA perform frontline duties as primary and secondary inspectors of international passengers arriving and departing the country. 鈥� Vann Marlo M. Villegas

Cebu to set up traditional healing system, barangay health workers to get training

THE PROVINCIAL government of Cebu is setting up a Provincial Traditional Health Care System (PTHCS) wherein village health care workers will be trained on traditional and alternative healing methods. Cebu Governor Gwendolyn F. Garcia made the announcement following controversy over her advisory recommending steam inhalation, locally referred to as tuob, as one preventive measure against the coronavirus. Ms. Garcia, in a statement on Saturday, said the PTHCS is in line with Republic Act 8423, a law passed in 1997 that mandates the Philippine Institute of Traditional and Alternative Health Care 鈥渢o improve the quality and delivery of health care services to the Filipino people through the development of traditional and alternative health care and its integration into the national health care delivery system.鈥� The institute is under the Department of Health. The province has about 16,000 barangay health workers in 44 towns and seven cities. The governor said while it is ideal to have accessible doctors and equipped healthcare facilities for everyone, this is not the reality, especially in remote areas. 鈥淲e do not live in an ideal world鈥� residents in remote and island barangays of the province will benefit from the traditional and alternative ways of recovering from different illnesses, such as steam inhalation,鈥� she said. The PTHCS will be composed of representatives from local offices and national agencies.

“We are moving towards a system around August, ‘yun po ang ating (that’s our) target, whereby payment will not have to be advanced by the rider anymore,” Nicka Hosaka, Grab Philippines (MyTaxi.PH) public affairs manager, said during the hearing of the House committee on trade and industry.

“Moving towards August, we will be implementing this model whereby pagdating po sa (upon arrival at the) restaurant, the delivery-partner will not need to bring out any cash or pay any cash. He will simply pick up the order and the restaurant po already receives the payment straight via the app,” she added.

Currently, Grab’s system of food delivery requires the driver to advance the payment for the food ordered by a customer. The driver will then be paid by the customer after the food is delivered.

In case of no-show incidents, Grab has a 100% reimbursement process wherein riders are paid only after reporting cancellations of customers.

Ms. Hosaka said that the new system would provide a digital “driver wallet” amounting to P1,500 to P2,000 paid by Grab for delivery-riders.

“Meron tayong mine-maintain na driver wallet. So kung ano po ‘yung kokolektahin niya from the eater, ‘yun naman po ang made-debit sa kanyang wallet. If they’re not able to collect any payment from the eater or the customer dahil nagkaroon ng no-show incident, wala pong nababawas sa kanilang wallet,” she said.

(We are maintaining a driver wallet. What is to be collected from the eater will be debited from the wallet. If they’re not able to collect any payment from the eater or the customer because of a no-show incident, there will be no deduction from their wallet.)

“We are just reversing. It is already Grab who will advance it. One-hundred percent of the monetary liability will now be on Grab,” Ms. Hosaka added.

The committee was discussing House Bill 6958, which seeks to protect food delivery riders from cancelled orders.

The bill prohibits customers from canceling confirmed orders for the delivery of food and grocery items when the order has been paid by or is in the possession of the delivery rider, or in transit to the customer.

The measure also covers instances where customers order food and grocery items as a prank, which causes financial loss to the delivery riders and their service providers.

Violators are to be fined P100,000, directed to reimburse the value of the food and grocery items, and pay the service provider double the value of the canceled transaction.

The panel created a technical working group to further discuss the bill. 鈥� Genshen L. Espedido

“We need a more representative branding for the international gateway of our country,” Deputy Speaker and presidential son Paolo Z. Duterte, one of the bill’s authors, said in a statement on Thursday.

The other authors of the bill were Marinduque Rep. Lord Allan Jay Q. Velasco and ACT-CIS Party-List Rep. Eric G. Yap.

The Manila International Airport was renamed Ninoy Aquino International Airport 鈥� in honor of the political nemesis of the late dictator Ferdinand E. Marcos 鈥� through a law passed in 1987.

Corazon C. Aquino replaced him as President after he was ousted by a popular street uprising in 1986.

It was President Rodrigo R. Duterte who allowed the dictator to be given a hero’s burial in November 2016 amid protests from Marcos critics.

Former Senator Ferdinand R. Marcos, Jr. the strongman’s son, had courted the elder Duterte to become his running mate in the 2016 national elections.

Mr. Duterte earlier raised the possibility of the younger Marcos becoming vice president if he wins his election protest against Vice President Maria Leonor G. Robredo. 鈥� Genshen L. Espedido

About 600,000 Filipino women are also expected not to get their family planning supplies amid a lockdown meant to contain the pandemic, the Commission on Population and Development (PopCom) tod ABS-CBN News on Thursday, citing a study by the University of the Philippines鈥� Population Institute and United Nations Population Fund.

鈥淰illage health centers might not have enough staff members, so we鈥檙e urging local governments to please deliver the family planning supplies from house to house,鈥� PopCom Executive Director Juan Antonio A. Perez III said.

There were about 1.7 million live births in 2018, he said. A tenth of the births will be among women below 20 years, he added.

The lockdown will increase the number of adolescents with unmet family planning needs by 15,000 to 178,000, Mr. Perez said.

鈥淏ecause of the restrictions of movement as well as the reduction of access of women and men to family planning supplies, there will be at least one pregnancy for every three women with an unmet need for family planning,鈥� he said in a separate statement yesterday.

Mr. Perez said emergency measures for family planning are in place, including home delivery of three months鈥� worth of supplies.

Health centers are also open to give injectables and subdermal implants to women who wish a more lasting contraceptive effect, he said. 鈥� Genshen L. Espedido

A LAWMAKER has filed a resolution seeking to investigate companies including those in the outsourcing sector for unfair labor practices such as cutting wages due to slow Internet connection of workers who work from home amid a coronavirus pandemic.

鈥淎t first look, the work from home setup may seem to be the logical work arrangement due to health and safety restrictions,鈥� Gabriela Party-List Rep. Arlene D. Brosas said in a statement on Wednesday.

But some employers were shifting the costs of electricity and connectivity to their employees by failing to provide them with allowances and subsidies, she added.

Four of five work from home employees have been paying for their Internet, Ms. Brosas said, citing a poll by the Business Process Outsourcing (BPO) Industry Employees Network.

Two of five people who work from home also experienced wage cuts because their connections were not fast enough, according to the poll.

The Department of Labor and Employment (DoLE) on Wednesday said it would review an advisory it issued allowing companies to adopt alternative work arrangements during the lockdown meant to contain the pandemic. 大象传媒 tried to reach the IT and Business Process Association of the Philippines (IBPAP) for comments through its external public relations team but was unsuccessful.

Senator Imee R. Marcos said some business process outsourcing (BPO) workers have been placed in a floating status for six months after the agency issued Labor Advisory 17 on May 16.

鈥淭he advisory provided that workers would be retained for six months and they can鈥檛 claim separation and other benefits,鈥� she said during a hearing of the labor committee.

The advisory allowed employers to adopt a work from home or telecommuting arrangement even after the lockdown in many parts of the country was eased.

Employers were also allowed to adjust the wages and benefits for six months. 鈥淚 don鈥檛 know how these BPOs are interpreting our advisories but we will never allow a situation where a worker cannot avail himself of a separation pay because that is mandated by law,鈥� Labor Secretary Silvestre H. Bello III told the hearing.

鈥淲e can review this advisory on that issue.鈥�

Employees working from home face challenges such as lack of logistical assistance such as equipment delivery and longer working hours to compensate for 鈥渓ow productivity.鈥�

鈥淲hat鈥檚 worrying is workers shoulder expenses that should otherwise be borne by companies even if they work from home,鈥� Ms. Brosas said in Filipino. 鈥淲orkers now have less money for food and healthcare.鈥�

She said decent work standards, protection of labor rights and sustainable jobs should be 鈥渁t the heart鈥� of the country鈥檚 resiliency program in the fight against COVID-19.

鈥淭he Labor department should seriously look into these reports and come up with a more effective monitoring guidelines for work from home arrangements to prevent unfair labor practices, especially in the BPO industry,鈥� Ms. Brosas said.

The Information Technology Business Process Management Industry, which employs about 1.3 million Filipinos, is among the industries forced to adopt work from home arrangements, according to the IT and Business Process Association of the Philippines (IBPAP).

Ms. Marcos sought the Senate probe after receiving complaints that some companies had been withholding wages.

Senator Emmanuel Joel V. Villanueva said there should be a grievance committee for workers.

鈥淚n case an employee is aggrieved where can he or she go for redress?鈥� he asked.

During the hearing, Mr. Bello said the BPO sector and infrastructure industry was expected to offset job losses in other sectors for the rest of the year.

As much as 15% of the country鈥檚 workers or about four million were expected to lose their jobs. It would have been bigger without the resurgence of workers in the BPO and construction industries, he said. 鈥� Genshen L. Espedido and Charmaine A. Tadalan

THE OVERSEAS Workers Welfare Administration (OWWA) on Wednesday asked the Senate for a P5 billion supplemental budget, citing that it is facing the risk of bankruptcy by the end of 2021. OWWA Administrator Hans Leo J. Cacdac said the agency鈥檚 remaining P18.8 billion fund is expected to be reduced to P10 billion by Dec. 2020 as it spends for the accommodation and transportation expenses of returning workers. 鈥淲e will be down to around P10 billion at the end of the year,鈥� Mr. Cacdac told senators on Wednesday. 鈥淎nother factor is the number of Filipinos coming home… If we鈥檙e looking at a worst case scenario, it could go up to 200,000 to 300,000 (workers)鈥� By the end of next year, of 2021, if this trend keeps up, we will be down to less than P1 billion,鈥� he told a Senate hearing. OWWA鈥檚 fund is mainly sourced from the required contributions of overseas Filipino workers. Senate Minority Leader Franklin M. Drilon, for his part, recommended that OWWA first use its fund to assist workers before Congress considers an additional budget. 鈥淚 strongly suggest that OWWA provide fullest assistance to the OFWs,鈥� he said. Mr. Cacdac also said the agency is estimating up to 200,000 workers will seek reintegration assistance, much higher than the 35,000 annually before the coronavirus disease 2019 pandemic. In the same hearing, Labor Secretary Silvestre H. Bello III said the department will be requesting for additional allocation to accommodate more than 500,000 overseas workers applying for the cash assistance. The Department of Labor and Employment has so far released P1.8 billion out P2.5 billion of the Abot Kamay ang Pagtulong program targeted to help 250,000 displaced workers. 鈥� Charmaine A. Tadalan

Transport groups says shift to modern jeepneys tough alongside coping with COVID impact

PUBLIC TRANSPORTATION groups on Wednesday appealed for a rethink of the government鈥檚 modernization program as drivers and operators cope with the impact of the coronavirus crisis on their livelihood. Vigor D. Mendoza II, chair of the Kilusan sa Pagbabago ng Industriya ng Transportasyon (KAPIT), said while they support the transport modernization plan, the coronavirus disease 2019 (COVID-19) outbreak has presented new challenges for its implementation. He cited that even consolidated operators and drivers could not access bank loans at this point to purchase electronic jeepneys as financial institutions reassess viability. 鈥�Sila ho ay nakikiramdam at gusto makita ang datos kung kikita ho talaga (The banks are still getting a feel of the situation and they want to see data if we will really earn) under 50% maximum seating capacity,鈥� he said during a consultative meeting of the House committee on Metro Manila development on Wednesday. Manila Representative Manuel Luis T. Lopez, chair of the committee, expressed support to the group saying, 鈥淭he government鈥檚 modernization program is laudable. However, we have to be realistic. Modern jeepneys cannot accommodate commuter demand. Traditional jeepneys must be utilized for now,鈥� he said. Alliance of Transport Operators and Drivers Association of the Philippines President Melencio Vargas also cited that some city buses have been authorized by government to take over some jeepney routes in some parts of Metro Manila.

HIERARCHY
Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Martin B. Delgra III explained that they are implementing a two-phased schedule for various modes of public transportation in Metro Manila. 鈥�鈥�Yung polisiya na 鈥榶an (That policy) is based on the principle na given that we鈥檙e running at reduced capacity because of the pandemic,鈥� he said, which is why modes of public transport that can accommodate more passengers are given priority. Marikina Rep. Stella Luz A. Quimbo, on the other hand, said such a policy of hierarchy would only work if the number of public utility vehicles are more than commuter demand. The panel required the LTFRB to submit their plans and programs to resolve the issues on transportation amid the pandemic. 鈥� Genshen L. Espedido

DBM to submit documents to Ombudsman for Health department probe

THE DEPARTMENT of Budget and Management (DBM) on Wednesday said it will submit documents requested by the Ombudsman as it conducts a probe on the Health department鈥檚 response to the coronavirus disease 2019 (COVID-19) crisis. Budget secretary Wendel E. Avisado, in a briefing, said they are ready to give the documents by tomorrow. 鈥�Nakahanda at bukas鈥� isusumite na namin (It鈥檚 ready and by tomorrow we will submit the documents),鈥� he said. Ombudsman Samuel R. Martires last week said he has issued subpoenas to the Department of Health and the DBM for papers relating to the budget allocated for COVID-19 response measures and benefits to medical frontliners. The probe involves Health officials, including Secretary Francisco T. Duque III. Meanwhile, Mr. Avisado said government spending for the COVID-19 crisis has reached P355.6 billion, slightly higher than the P355.1 billion they reported earlier this month. 鈥� Gillian M. Cortez

Policy on foreigners鈥� entry to be decided next week

THE POLICY on allowing foreigners entry into the country will likely be decided by next week, according to Justice Secretary Menardo I. Guevarra. The lifting of restrictions on foreigners involved in flagship projects as well as holders of permanent or long-term visas has been raised by the Department of Public Works and Highways and one embassy. 鈥淭he IATF (inter-agency task force handling the coronavirus response) may decide on the matter next week,鈥� he told reporters via Viber. He said they are studying the matter 鈥渧ery carefully鈥� as the repatriation of thousands of displaced overseas Filipino workers (OFWs) remains a priority. 鈥淲e have to deal with the repatriation of thousands of OFWs and we do not want them to be crowded out by foreign nationals who will likewise have to be tested and quarantined upon arrival,鈥� he said. 鈥淚f they (foreigners) comprise a manageable number, the IATF may consider to allow them to re-enter. Note that many of them are already here; it鈥檚 only those who were abroad and caught by the lockdown who wish to re-enter our country,鈥� he added. Under current guidelines, the only foreign nationals allowed to travel to the Philippines are spouses of Filipinos and diplomats. 鈥� Vann Marlo M. Villegas

THE Department of Trade and Industry (DTI) said it needs P12 billion to fund a program to kickstart the electric-vehicle manufacturing industry.

鈥�Meron po kaming sina-suggest na programa para masuportahan po natin yung paggawa ng mga e-vehicles sa bansa na makakatulong naman po para makapag advance 鈥榶耻苍驳 manufacturing industry. Dahil mag uumpisa pa lang po tayo, kinakailangan talaga ng tulong at ang halaga po na aming na-estimate para dito sa programa ay P12 billion (We need seed money of P12 billion to support e-vehicle manufacturing, which will support the overall manufacturing sector),鈥� Trade and Industry Undersecretary for Competitiveness and Innovation Group Rafaelita M. Aldaba said during a virtual hearing of the House committee on energy Monday.

Ms. Aldaba said that the program will cover 72,250 public utility vehicles, 12,250 buses, 70,000 trucks and 70,000 other utility vehicles.

鈥�Ito pong programa ng BoI (Board of Investments) at DTI ay para sa manufacturing naman. Otherwise po, baka ang mangyari kahit na merong ibibigay na subsidy para sa modernization, baka i-import lang natin lahat na hindi naman po makakatulong 鈥榶un masyado sa ekonomiya natin (The BoI and DTI want to emphasize manufacturing, because if we resort to subsidies to modernize vehicles, what might happen is that the vehicles will be imported, which will not help the economy as much),鈥� she said.

In 2017, the Department of Transportation initiated the Public Utility Vehicle Modernization Program which aims to modernize the jeepney fleet and set new rules for granting franchises to road-based public transport services.

Land Transportation Franchising and Regulatory Board Chairman Martin B. Delgra III said the agency is providing incentives for drivers and operators who want to participate in the modernization program.

鈥�(Transportation) Secretary (Arthur P.) Tugade has approved doubling the equity subsidy in the purchase of (electric) vehicles. Dinoble na po 鈥榶耻苍驳 equity subsidy to the current P80,000 to P160,000 po. So malaking tulong po ito sa mga tsuper who want to participate in the modernization program (The equity subsidy has been doubled to P160,000, which will be a big help to drivers and operators who want to participate in the modernization program),鈥� he said.

The panel was discussing House Bill 4075, which seeks to provide a regulatory framework for the use of electric vehicles and the establishment of electric charging stations. It created a technical working group to further develop the measure. 鈥� Genshen L. Espedido

The ratio of pessimists was the highest in the 37-year history of the polling firm, breaking the previous record of 34% in March 2005, it said in a statement on Tuesday.

Meanwhile, 24% of Filipinos expected their quality of life to stay the same, while another 24% expected it to improve, SWS said.

Net optimism (optimists minus pessimists) was lower among people with less education. By educational attainment, only college graduates received a low net optimism score while the rest received very low scores, it said.

Meanwhile, by job situation, net personal optimism was higher among those who had a job and were getting full pay, and those who never had a job.

It was lower among people who lost a job or were not getting income even if they had a job, SWS said.

The presidential palace said the poll results were to be expected because of the lockdown.

鈥淭hat poll happened at the height of our quarantine,鈥� presidential spokesman Harry L. Roque told a news briefing. 鈥淲e know the whole nation and the entire world will suffer because the economy was shut.鈥�

SWS said only 12 of 135 surveys since 1984 had a score of net zero or lower. Out of the 12, the score reached very low levels in October 2000 (鈥�13), March 2005 (鈥�13), May 2005 (鈥�12) and May 2020 (鈥�18).

鈥淣egative ratings in 1984, 2000, and 2005 were associated with political unrest in the late Marcos-era, the impeachment crisis of Joseph Estrada and the controversial 2004 election of Gloria Macapagal-Arroyo,鈥� it said.

SWS interviewed 4,010 Filipinos on May 4 to 10 for the poll, which had an error margin of 卤2 points.

It earlier said eight of 10 Filipinos said they became worse off in the past 12 months, also a record number.

It said 83% of Filipinos said their quality of life worsened, 6% said it improved, while 10% said it was unchanged.

This resulted in an 鈥渆xtremely low鈥� net score of -78 from a 鈥渧ery high鈥� +18 in December, the pollster said. It was the worst figure since the 鈥渓ow鈥� -50 in June 2008, it added.

The number of Filipinos who said they were worse off was the highest in the Visayas, which had a net score of -82, followed by Mindanao at -80, Metro Manila at -77 and the rest of Luzon at -75.

President Rodrigo R. Duterte locked down the entire island of Luzon in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

At the time, areas under strict lockdown were Metro Manila, Central Luzon (except Aurora), Calabarzon region, Benguet, Pangasinan, Iloilo, Cebu and the cities of Bacolod and Davao. All other areas were under a more relaxed general quarantine. 鈥� Genshen L. Espedido

THE SENATE committee on labor, employment and human resource development will push for a labor audit as 7.3 million Filipino workers have so far been displaced by the economic downturn due to the coronavirus crisis. 鈥淭hat鈥檚 what we鈥檙e shooting for, a labor audit. We wanted to find out how many workers are affected, how many will be affected, what are we doing, and what can we do,鈥� Senator Emmanuel Joel J. Villanueva said in an online briefing Tuesday. He said the committee will also look into the job market under the 鈥渘ew normal鈥� in order to assist government agencies in the retraining or upskilling of workers. 鈥淥ne of the strategy is to retool, reskill or upskill… How much additional fund will we be needing for this?鈥� He noted that this will help workers become employable as the country transitions. Mr. Villanueva further said that the government must address the spread of the coronavirus disease 2019 (COVID-19) along with improving policies for workers to enable the country to recover from the crisis. 鈥淭he path to economic recovery has two stumbling blocks, one the continuing increase of COVID-19 cases, and the lack of a clear set of policies for our workers,鈥� he said.鈥� Charmaine A. Tadalan

Senators push for suspension of online seller tax registration

Senator Risa N. Hontiveros-Baraquel on Tuesday asked the Bureau of Internal Revenue (BIR) to suspend until the end of the year the implementation of the circular requiring online sellers to register. She filed Senate Resolution No. 453 seeking to suspend the mandatory registration until Dec. 2020, pending the results of an inquiry on the taxation of individuals engaged in online business during the coronavirus crisis. 鈥淚t is best for everybody鈥檚 interests if the BIR suspends the implementation of the memo until December 31, 2020, while government agencies review and craft better policy guidelines on how online entrepreneurs should register or pay taxes,鈥� she said in a statement. The issuance of Revenue Memorandum Circular 60-2020 that directed online sellers to register until July 31 was slammed by senators, who deemed it was 鈥渋ll-timed and insensitive.鈥� The Department of Finance had explained that taxes will not be imposed on individuals earning up to P250,000 annually, but senators have argued that the registration will still be costly for online sellers. 鈥淎ll of this will entail administrative cost… kapag nakita niya ito, mawawalan ng gana (once they see this, they鈥檒l lose the motivation),鈥� Mr. Villanueva said in an online briefing. 鈥� Charmaine A. Tadalan

Team formed for policy on foreign nationals鈥� entry

A TECHNICAL working group has been formed to draft the country鈥檚 policy on the entry of foreign nationals amid the continued coronavirus threat. Palace Spokesperson Harry L. Roque said this was prompted by one embassy鈥檚 request for the Philippine government to allow its nationals to fly in, particularly those who have work permits as well as consultants needed in flagship projects. He did not name the country. Under current guidelines, the only foreign nationals allowed to travel to the Philippines are spouses of Filipinos and diplomats. 鈥� Gillian M. Cortez

CHED launches resource-sharing app for higher education

THE COMMISSION on Higher Education (CHED) has launched an online application that allows access to higher education course materials in various formats. 鈥淧hilippine CHED Connect鈥� is very timely during the transition to the new normal as it contains higher education course materials in text, media and other digital assets. I have always asserted over the past months that learning must continue, quarantine or no quarantine,鈥� CHED Chairman Prospero E. De Vera III said during the virtual launch and press conference on Tuesday. The materials are in text, audio, and video format, which can be used for teaching, learning and research purposes. The resources cover a wide range of fields. 鈥淲e will develop the protocols on expanding it later in consultation with universities and our partners both internationally and locally,鈥� he said. Meanwhile, Mr. De Vera also announced that CHED is already coordinating with the Department of Health for the guidelines on holding face-to-face classes. The rules will be presented to the national task force handling the coronavirus response for approval, then to be pilot-tested in July. In areas where there is limited or no connectivity, Mr. De Vera said universities can combine 鈥渓imited face-to-face and off-classroom or off campus activities.鈥� 鈥� Genshen L. Espedido

Almost 500 complaints filed on cash aid distribution

ALMOST 500 complaints, mostly against local officials, have been filed over alleged mishandling of funds under the coronavirus cash aid program for poor households. Palace Spokesperson Harry L. Roque, in a Tuesday briefing, said there are 496 complaints involving 728 suspects based on data from the Department of Interior and Local Government. Of the total, 157 cases have been filed before the fiscal鈥檚 office. The cash aid is a national program under the Department of Social Welfare and Development, but distribution was delegated to local governments. Meanwhile, President Rodrigo R. Duterte said he is vouching for the integrity of his appointed officials after the Ombudsman鈥檚 office launched a probe on Department of Health (DoH) officials, including Health Secretary Francisco T. Duque III, over their response to the coronavirus disease 2019 (COVID-19) outbreak. In his talk to the nation Monday, Mr. Duterte said he will not interfere with the move of Ombudsman Samuel R. Martires, but trusts his officials. 鈥淲ith due respect to the Ombudsman, the Honorable Martires鈥� I will say I believe in the honesty and integrity of my people,鈥� he said. 鈥� Gillian M. Cortez

On April 28, the DA posted an invitation to bid for the supply and delivery of 5.69 million bags of urea fertilizer with an approved budget of P5.69 billion. The agency also invited bids to supply 1.8 million bags of urea fertilizers for P1.8 billion or P1,000 per bag.

鈥淭he total contract for the P1.8 billion fertilizer could be overpriced by at least P271.66 million as farmers from Tarlac and Nueva Ecija attest that the prevailing average price of urea is pegged only at P850 per bag,鈥� according to the resolution.

Through its Bids and Awards Committee, the DA had issued Notices to Award and Contract to the two winning companies, La Filipina Uy Gongco Corp. and Atlas Fertilizer Corp.

La Filipina Uy Gongco Corp. delivered 97,615 bags at P990 per bag to Region 4-A; 694,904 bags at P995 per bag to Region 6; and 911,073 bags at P995 per bag to Region 3.

Meanwhile, Atlas Fertilizer Corp. delivered 107,498 bags at P900 per bag to Region 7.

鈥淭his issue on the alleged overpriced fertilizer further raised suspicion because news reports stated that La Filipina does not also have available stock of urea fertilizers nor has it shown any bill of lading to prove that it had an incoming supply of urea fertilizer and yet it still bagged the contract,鈥� according to the resolution.

The Makabayan bloc added that the DA should put on hold or suspend the succeeding bids for the procurement of an additional P3.8 billion worth of fertilizer 鈥渦ntil the questionable bidding and procurement of the P1.8 billion fertilizer is given clarity.鈥�

In a virtual briefing on June 16, Agriculture Secretary William D. Dar said that the DA followed government procurement rules in its acquisition of fertilizers.

He said that P1,000 for a 50-kilogram fertilizer bag is lower than the average retail price of urea fertilizer, based on a survey conducted by the DA鈥檚 Fertilizer and Pesticide Authority between March and May.

Meanwhile, in a virtual briefing Tuesday, Undersecretary for Operations and Agri-Fisheries Mechanization Ariel T. Cayanan said that the department is open to an investigation by Congress.

鈥�Maliwanag po at consistent ang pahayag ng kalihim. Ito pong dinadaanan nating prosesong 鈥榯o at kung po tayo ay iimbestigahan ay maluwag pong sinasabi ng kalihim na ine-entertain po niya (The Secretary鈥檚 pronouncements are clear and consistent. He welcomes an investigation into the process)鈥� he said.

The DA procured fertilizer for rice farmers under the Rice Resiliency Program which aims to increase the country鈥檚 rice self-sufficiency to 93% from 87% by the end of 2020. 鈥� Genshen L. Espedido

“This 2021, the budget suggested to us by the DBM (Department of Budget and Management) is about P621 million. Nag decreased po ‘yan ng 5% (It’s reduced by 5%) relative to the previous year,” PhilRice Director John C. de Leon said during the hearing of the House committee on the North Luzon Growth Quadrangle.

The P621-million budget includes P267 million for personal services and P354 million for maintenance and other operating expenses. No funding is set aside for capital outlays.

Mr. De Leon was not able to explain why the 2021 budget is 5% lower, but said that the proposal is still being finalized.

“Hindi pa po final ‘yung aming tier 1 budget. Sabi ng DBM maybe they will add some more dahil po dinadagdagan nila kami ng tao but the (allotment for) personal services, hindi po. Kaya if titignan po natin yung aming budget, parang dumadami ‘yung tao, pero ‘yung budget hindi naman nadagdagan, (The tier 1 budget is not yet final. The DBM told us we might get more because we have increased staff, though personnel services funding has not increased)” he said.

For tier 2, PhilRice is seeking P6.03 million for 2021, P6.35 million for 2022 and P6.71 million for 2023 as “support to emergency food production and availability intervention.”

PhilRice hopes to increase the palay harvest and rice yields and to make more milled rice available for communities near its facilities, while preventing food scarcity.

“Sabi ko nga po hindi kami nagpo-produce ng rice but kung magpe-persist ‘yung COVID (coronavirus disease 2019) struggle, makatulong man lang kami sa mga barangay na malapit sa bawat station sa pamimigay nila ng rice (We are not rice producers ourselves but if the coronavirus persists we hope to at least supply rice to our host communities),” Mr. De Leon said.

PhilRice, an arm of the Department of Agriculture, is tasked with developing high-yielding and cost-reducing technologies for farmers.

Baguio Representative Mark O. Go expressed support for the budget proposal.

“I’m more interested na dagdagan ang pondo ninyo sa aspetong research and development. Doon talaga ‘yan eh diba. Kailangan natin ‘yung pondo na ‘yan para lalo tayong maka-develop ng mga variety ng mga bigas o rice na talagang mag-i-increase ng productivity, (I am more interested in adding funding to R&D because that’s the real mission… to develop rice varieties that will raise productivity)” he said.

Mr. De Leon added that as of this week, about two million bags of seed were distributed to beneficiaries of the Rice Competitiveness Enhancement Fund (RCEF).

RCEF aims to help farmers deal with the influx of imported rice as a result of the Rice Tariffication Law. The program has a budget of P10 billion annually between 2019 and 2024. 鈥� Genshen L. Espedido

Some beneficiaries also live in remote areas where there are security threats, making it difficult to reach them, Social Welfare Undersecretary Danilo Pamonag told the House good government committee.

He added that 1,324 social welfare staff had to be self-quarantined and 19 later tested positive for the coronavirus after being exposed.

About 17.6 million families have received emergency subsidies worth P99.6 billion, Mr. Pamonag said. He added that 1,560 local governments out of 1,624 have completed their payouts.

Mr. Pamonag said about five million families who did not receive cash aid for the first tranche would be accommodated for the second tranche of the program. This will bring the number of beneficiaries to 23 million families, he added. 鈥� Genshen L. Espedido

鈥淚ncreasing investment especially foreign direct investment (FDI) is key to sustain the growth of the retail sector. However, data has shown that the Philippines has failed to capture the significant increases in investments into the retail sector in the ASEAN region,鈥� thethink tank said in its report, Increasing Competition in the Retail Trade Sector.

Citing government data, the CPBRD said that in 2014 to 2018, the Philippines took in about 0.63% of the FDI that went into the ASEAN wholesale and retail sector.

The report said that the dismal performance of retail FDI was due to the restrictions on foreign retailers.

The Philippines imposes a limit on stakes taken in establshed retailers; requires a public offering of a 30% stake in the foreign retailer if foreign ownership exceeds 80%; a minimum parent-company net worth of $50 million to $200 million; a track record based on years in operation and number of branches; and reciprocity to Philippine rtailers in the home country of the foreign retailer.

The study also found that that given the need for accessibility, convenience and a no-touch customer experience in the post-pandemic period, demand for technology-based retail services such as teleshopping and electronic retailing 鈥渃ould substantially gain ground.鈥�

鈥淏ased on the 2017 ASPBI (Annual Survey of Philippine Business and Industry), even as their total gross sales had been increasing by almost 20% on average annually since 2013, there were less than 500 establishments engaged in retailing outside of stores, stalls or markets with sales contributing only 2.8% of total. More players are therefore needed in this type of retail activity,鈥� it said.

The House of Representatives passed on third and final reading House Bill 59 in March. The bill seeks to amend the Retail Trade Liberalization Act (RTLA) of 2000 to further open up the sector to foreign companies. Its counterpart measures in the Senate remains at the committee level. 鈥� Genshen L Espedido

Iloilo Rep. and former Health Secretary Jannette L. Garin said people may be pooled into five, 10 or 20 groups for testing which is used now during blood testing.

鈥淧ooled testing is no longer new if we want to know the prevalence of the virus in a place,鈥� she told ABS-CBN Teleradyo on Sunday.

Under this method, swab samples of several people are placed in a single polymerase chain reaction or PCR test.

People will be assessed further if a positive result comes from a single batch. If the swab test of comes back negative, individual tests need not be performed, resulting in savings, Ms. Garin said.

The Philippine Society of Pathologists, Inc. and Philippine Center for Entrepreneurship will conduct a study on pooled testing, she said. 鈥淲e won鈥檛 have a hard time ween we return to the new normal,鈥� she said.

The research seeks to cut the PCR testing fee to as low as P300, the congresswoman said.

Ms. Garin said the country reached its target of 30,000 daily coronavirus testing a few weeks ago, but daily tests are fewer because of costs.

鈥淪ome laboratories have a capacity of as many as 5,000 daily but only 700 tests are done because it鈥檚 not affordable,鈥� she said. 鈥� Genshen L. Espedido

鈥淚f one is just selling intermittently or on an irregular basis or selling homemade stuff as a hobby, it is understood they are not yet in business thus they are not required to register,鈥� Trade and Industry Secretary Ramon M. Lopez said during the virtual hearing of the House Ways and Means Committee.

His remark came after the Bureau of Internal Revenue (BIR) issued a memorandum on June 1 reminding businesses that earn income 鈥渢hrough the use of any electronic platforms and media, and other digital means鈥� to register on or before July 31. It also “encouraged” these businesses to voluntarily declare their past transactions and pay taxes on these without any penalty on or before July 31.

In 2013, BIR issued a memorandum reminding businesses that online sales are taxable, but only the 2020 circular imposed a deadline to settle past taxes.

Mr. Lopez said online businesses that generate regular sales, even if such activity is small in size, must be registered.

鈥淎nyway, the annual income below P250,000 is exempted from the income tax according to the BIR ruling,鈥� he added.

Mr. Lopez underscored the importance of registering with the government, saying this is 鈥渒ey to consumer protection.鈥�

鈥淭here is greater traceability if online sellers are registered and this increases the trust factor and confidence of online buyers in making the transaction online,鈥� he said.

Lawmakers also urged the BIR to automate filing and payment of taxes, lessen the requirements for registration, and remove the registration fee of P500 to incentivize online businesses to register.

鈥淲e are studying that. We are really streamlining the registration process,”BIR Deputy Commissioner Arnel S.D Guballa said. — Genshen L. Espedido

鈥淎s we know, we passed the ARISE and the CURES, which are both stimulus bills, but ang debate ngayon (the debate now) is whether how much ang pwedeng i-raise (can be raised) for that and how ire-raise (to raise it), meaning uutangin ba 鈥榯o (will we borrow) or will we continue looking sa budget na pwedeng gamitin (at the budget that we can use). So, initially [the consensus we are coming to is]鈥� is we鈥檒l do it in three tranches,鈥� he told reporters at a press conference in Camp Aguinaldo which was streamed live on Facebook.

Passed on third and final reading in the lower chamber, the ARISE bill, or the Accelerated Recovery and Investments Stimulus for the Economy of the Philippines, seeks to address the effects of the pandemic through a P1.3-trillion economic stimulus package.

Also passed on third reading was the CURES bill, or the COVID-19 Unemployment Reduction Economic Stimulus Act of 2020, which seeks to allocate P1.5 trillion for infrastructure projects to stimulate the economy.

Mr. Cayetano said that the three tranches will come first from the proposed Bayanihan II law, then the proposed economic stimulus packages, and lastly, a fund allotted in the 2021 national budget.

The proposed Bayanihan II Law is a supplemental measure to the Bayanihan to Heal as One Act (Republic Act 11469) which provides various forms of relief during the public health crisis, including an emergency subsidy to displaced workers, cash-for-work programs, and programs to mitigate the virus, among others.

The measure failed to pass on third and final reading in both chambers of Congress before it adjourned sine die on June 6.

The House Speaker added that the Bayanihan II law will involve some P100 billion to P200 billion in stimulus to help banks 鈥渃ome out with loans鈥� and improve the capability of the Department of Labor and Employment and the Department of Social and Welfare Development to assist those who are unemployed.

Mr. Cayetano did not mention the amount for the two remaining tranches and when these will be implemented.

He said that Congress will be meeting with the officials from the Department of Finance this weekend to 鈥渋ron out鈥� the details of the proposed Bayanihan II Law.

鈥淚 can tell you now that the House is asking Malaca帽ang not to peg the budget at the 2020 level. Dapat taasan ng konti kasi kailangan ng stimulus (It should be raised a bit because the stimulus is needed),鈥� Mr. Cayetano said. — Genshen L. Espedido

鈥淎llowing De Lima to participate in the Senate sessions, committee hearings and meetings via teleconferencing from within her place of detention is no different from allowing her to attend there physically. Allowing her to do so today would be tantamount to allowing her to participate even after the state of public health emergency,鈥� Presiding Judge Liezel A. Aquiatan said in a six-paged decision dated June 17.

Ms. De Lima argued that she is 鈥渘ot a convicted prisoner, that she continues to enjoy the presumption of innocence, that she has no civil interdiction, and that she fully possessed all her civil and political rights鈥� to perform the mandate given to her by Filipino people.鈥�

The court dismissed the senator鈥檚 argument, saying that the 鈥減resumption of innocence does not carry with it the full enjoyment of civil and political rights.鈥�

The Senate has shifted to 鈥渉ybrid鈥� sessions and committee hearings due to the lockdown triggered by the coronavirus pandemic.

Ms. De Lima has been detained since 2017, accused of having been involved in the narcotics trade inside the national penitentiary during her stint as Justice Secretary. — Genshen L. Espedido

Manila Bay patrol

MEMBERS of the Philippine Coast Guard鈥檚 CCP Complex Station and Auxiliary 101^st Squadron have been jointly patrolling the Manila Bay area since the start of lockdown in March, providing security as well as supporting relief operations in the coastal communities.

Central Visayas COVID-19 cases top 5,500; over 4,000 in Cebu City

CORONAVIRUS disease 2019 (COVID-19) cases in the Central Visayas Region has topped 5,500, with about 79% in Cebu City. The Department of Health regional office, in its latest update posted late Wednesday, reported 5,566 confirmed cases as of June 16, of which 3,799 are active cases, 1,637 recoveries, and 130 deaths. Of the total, 4,382 are in Cebu City, which is the only area in the country currently under the strictest lockdown policy. In compliance with the classification imposed by the national government effective June 16鈥�10, Cebu City Mayor Edgardo C. Labella has issued a new executive order outlining the enhanced community quarantine (ECQ) guidelines. However, Mr. Labella said he has filed an appeal to revert the city back to the less restrictive category. 鈥淚 have, however, filed an appeal to return the city to general community quarantine based on significant data we have. Pending resolution of that appeal, let us work together to make sure that the ECQ regulations spelled out in my Executive Order are strictly followed,鈥� he said in a statement posted on his Facebook page. The other cases in the region are located in the following: Mandaue City, 449; Lapu-Lapu City, 211; Cebu province, 489; Negros Oriental, 23; Bohol, 12; and none in Siquijor.

MORE POLICE
Meanwhile, the Philippine National Police (PNP) on Thursday deployed 100 officers to Cebu City to beef up forces for the implementation of health and safety protocols during the ECQ period. PNP deputy chief for operations Lt. Gen. Guillermo T. Eleazar said the contingent consists of 50 cops each from the Western and Eastern Visayas regions. They are assigned at checkpoints and ordered to conduct regular patrols to help ensure that residents follow minimum health standards such as wearing of face masks and observing physical distancing. 鈥淭he key to defeating the spread of the virus is cooperation. We need to have a unified front to effectively enforce the quarantine rules,鈥� he said in a statement. 鈥� with a report from Emmanuel Tupas/PHILSTAR

Eastern Visayas lawmakers call for review of Hatid Probinsya program after spike in COVID-19 cases in region

TWELVE lawmakers from Eastern Visayas called for a review of the government鈥檚 Hatid Probinsya program following the recent spike in coronavirus disease 2019 (COVID-19) cases in the region. The Hatid Probinsya assists residents in returning to their hometowns after being stranded locally due to the lockdowns. 鈥淥fficial records show that the rapid increase in the number of COVID-19 cases was observed shortly after the national government implemented its Hatid Probinsya program… we firmly believe that it is the duty of government to ensure that these constituents of ours are free from coronavirus infection and other diseases before they are allowed to rejoin their family members,鈥� the lawmakers said in a joint statement on Thursday. They also urged the national government to increase support to the region for containing the virus through funding for medical supplies, local quarantine centers, and contact tracing capability, among others. They said, 鈥淲e pray that our plan for collective action to contain the spread of COVID-19 disease in Eastern Visayas will come into fruition the soonest time possible,鈥� the House members said. 鈥淭ime is of the essence. We do not need another epicenter of COVID-19. Not in Eastern Visayas. Not in any part of the country.鈥� The statement was signed by House Majority Leader Ferdinand Martin G. Romualdez; Tingog Party-list Rep. Yedda Marie K. Romualdez; Northern Samar Representatives Paul Ruiz Daza and Jose L. Ong, Jr.; Leyte Representatives Vicente S.E. Veloso III, Lucy Torres-Gomez, and Carl Nicolas C. Cari; Western Samar Representatives Edgar Mary S. Sarmiento and Sharee Ann T. Tan; Eastern Samar Rep. Maria Fe R. Abunda; Southern Leyte Rep. Roger G. Mercado, and Biliran Rep. Gerardo J. Espina Jr. 鈥� Genshen L. Espedido

Globe adds cell sites in Mindanao

GLOBE TELECOM, Inc. said it continues with its network expansion projects in Mindanao despite the coronavirus crisis, with new cell sites expected to rise soon in the provinces of Davao Oriental, Saranggani, Bukidnon, South Cotabato, and Sulu. 鈥淲e want to assure our customers that our efforts to give better service and experience are not only concentrated in Luzon or in major commercial centers in big cities,鈥� Joel R. Agustin, Globe senior vice-president for program development-network technical group, said. The expected improvement in connectivity in these areas, Mr. Agustin said, will benefit residents as more Filipinos now work from home and bring more opportunities to small businesses. 鈥淚n Sulu, for example, better signal means the farmers there can go directly to potential buyers and customers not only in Zamboanga but directly to other places where they can sell their mangosteen, lanzones, marang, durian, vegetables and other harvest goods. This will mean more income for them,鈥� he said. Globe is also studying to carry out more expansion projects in the Visayas and in other parts of Luzon. 鈥� Arjay L. Balinbin

Supreme Court junks construction firm鈥檚 petition in Makati parking case

THE SUPREME Court dismissed the petition of a construction firm head seeking to stop anti-graft court Sandiganbayan from continuing proceedings on case over the alleged overpriced Makati City Hall parking building. In a nine-page resolution dated February 17 and released June 17, the high court鈥檚 second division affirmed Sandiganbayan鈥檚 decision to junk the motion of Efren M. Canlas, representative of Hilmarc Construction Corp., to dismiss the case against him and other local government officials, including former Makati mayor Jejomar Erwin S. Binay, Jr. The Supreme Court ruled that private individuals may be charged for violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act if they 鈥渁ct in conspiracy with public officers.鈥� The prayer for a temporary restraining order against Sandiganbayan to hold further proceedings was also denied. The case stems from the contracts awarded to Hilmarc for the P649.3 million Phase IV construction and P141.6 million Phase V construction of the parking building. The company was named lowest bidder in the Bids and Awards Committee resolution and was approved by Mr. Binay despite knowledge of the absence of public bidding. The resolution was penned by Associate Justice Henri Jean Paul B. Inting and concurred by Associate Justices Estela M. Perlas-Bernabe, Andres B. Reyes, Jr., Ramon Paul L. Hernando, and Edgardo L. Delos Santos. 鈥� Vann Marlo M. Villegas

HEALTH SECRETARY Francisco T. Duque should take a leave of absence while the Ombudsman is conducting an investigation on alleged irregularities in the Department of Health鈥檚 response to the coronavirus disease 2019 (COVID-19), a senator said on Thursday. 鈥淭o make the investigation impartial, I think the best, the most appropriate thing to do is to take a leave of absence,鈥� Senator Sherwin T. Gatchalian said in an online briefing. Ombudsman Samuel R. Martires on Wednesday announced the formation of two teams to investigate health officials due to delays in the procurement of medical supplies as well as in granting compensation for health workers who contracted or died from the disease.Senators, who have long flagged the alleged incompetence of Mr. Duque, filed a resolution in April asking him to resign for lack of foresight and poor planning in addressing the heath emergency. Despite this, Mr. Duque continued to have the confidence of President Rodrigo R. Duterte and has kept his post. 鈥淚t does not matter to him what we say. He will just tell you he serves at the pleasure of the President,鈥� Senate President Vicente C. Sotto III said in a phone message Thursday.鈥淲e tried. Falls into deaf ears. Let it be!鈥� said Mr. Sotto, who led the 15 senators who filed the resolution. –Charmaine A. Tadalan

PhilHealth officials warned against suspending UHC implementation

THE PRESIDENTIAL Palace on Thursday warned Philippine Health Insurance Corp. (PhilHealth) officials against suspending the implementation of the Universal Health Care (UHC) Law, citing that they could be replaced for failure to deliver their mandate. 鈥淢y appeal to those who lead PhilHealth, if you cannot implement a law that was certified urgent by the President鈥� maybe we should just find others who will be able to accomplish that,” Palace Spokesperson Harry L. Roque, speaking in Filipino, said in a briefing on Thursday.听 PhilHealth President Ricardo C. Morales on Wednesday calledfor a delay in the UHC implementation amid the health emergency brought about by the coronavirus. The UHC rollout started in January this year, withnationwide and full implementation seen to take up to 10 years. Mr. Roque, a former congressman who was one of the authors of the UHC Law, said the government will spend billions of its own funds if necessary todeliver the improved health system.

PAYMENTS

Meanwhile, PhilHealth has denied that about 300 private hospitals are facing closure due to delayed payments.鈥淭he resolution submitted in the lower chamber contains issues that have been adequately responded to previously. PhilHealth reiterates its earlier statement denying the claim of PHAPI (Private Hospitals Association Philippines, Inc.) that 300 or so hospitals are facing closure due to delayed payments,鈥� the agency said in a statement on Thursday.The state-owned insurance company was responding to House Resolution 970, which calls on PhilHealth to settle at least P18 billion in alleged unpaid reimbursement claims of accredited hospitals nationwide.In his resolution, Cagayan de Oro City Rep. Rufus B. Rodriguez quoted claims by the PHAPI that PhilHealth owed its members P14 billion as of December 2018 and P4 billion at the end of 2019.He also cited University of Santo Tomas Hospital (USTH) Medical Director Marcellus Francis L. Ramirez, who said that the delay in PhilHealth payments is 鈥渁n average of 5-6 months鈥� and that the hospital鈥檚 receivables stood 鈥渁t more than P180 million and counting.鈥漃hilHealth asserts that it has paid a total of P114.6 billion to its accredited hospitals in 2018, and P97.4 billion in 2019. For this year, the agency said it has so far disbursed more than P43 billion, of which P24.5 billion or 56.8% were paid to private hospitals. In the case of USTH, PhilHealth said it has paid the hospital 鈥渁round P400 million in 2019 up until May 2020, and recently advanced Php 85 million as part of the Corporation鈥檚 COVID-19 (coronavirus disease 2019) response.鈥澨� Citing a May 5, 2020 letter, 鈥渢he USTH said that it is reconciling their claims records with PhilHealth鈥檚,鈥� it added.鈥淭he economic losses brought about by the pandemic have taken its toll in the overall business climate in the country, which also affect hospitals that reel from the sharp decrease in patient admissions due to COVIDscare. However, this should not be attributed solely to alleged unpaid claims to a point of exhuming an old issue that is now being seriously addressed by the Agency,鈥� Philhealth said. – Gillian M. Cortez and Genshen L. Espedido听

Supreme Court voids BIR tax on condominium membership dues

THE SUPREME Court has declared invalid aBureau of Internal Revenue (BIR) memorandum imposing a 32% income tax and 12% value-added tax on association dues or membership fees paid by condominium tenants to building operators.In a 33-page ruling dated January 15 and released June 16, the high court’s first division affirmed the decision of a Makati trial court declaring revenue memorandum circular circular 65-2012 invalid for creating additional burden on condominium operators.The court cited Republic Act 4726, the law governing condominiums, which allows operators to collect association dues, membership fees, and other assessment charges for maintenance insurance policies, and other maintenance services. Such activities are not considered for income or profit. 鈥淭o repeat, they are collected purely for the benefit of the condominium owners and are the incidental consequence of a condominium corporation’s responsibility to effectively oversee, maintain, or even improve the common areas of the condominium as well as its governance,鈥� the court said.The petition was filed by First E-Bank Tower Condominium Corp.The decision was penned by Associate Justice Amy C. Lazaro-Javier, and concurred by Chief Justice Diosdado M. Peralta and concurred by Associate Justices Alfredo Benjamin S. Caguioa, Jose C. Reyes, Jr. and Mario V. Lopez. – Vann Marlo M. Villegas

Students should not be required to buy gadgets for online classes

STUDENTS should not be required to buy gadgets to access online classes when the new school year opens in August, Senator Sherwin T. Gatchalian said on Thursday. 鈥�Wag natin pilitin ang students na bumili ng gadgets, bumili ng load, bumili ng(Let us not force students to buy gadget, buy internet load, buy) laptop, tablet,鈥� Mr. Gatchalian, who chairs the committee on basic education, arts and culture, said in an online briefing. 鈥淲e should not force our students to go online,鈥� he added. He pointed out that distance learning should not only offer online classes, but also learning modules that may be delivered to the student鈥檚 house. He also noted that lessons through government television and radio can reach more learners. 鈥�Naninwiala ako na TV and radio pa rin ang piankamalawak sa ating bansa at 鈥�yun din ang pinaka-affordable (I believe that TV and radio are still the most widely accessible media nationwide and most affordable). By July 15, DepEd (Department of Education) will finalize its TV-radio modules,鈥� he said.President Rodrigo R. Duterte on Monday said he is looking at purchasing radios for learners in far-flung areas, in line with his directive to postpone the conduct of face-to-face classes in the absence of a vaccine against the coronavirus disease 2019. Senator Ralph G. Recto, meanwhile, proposed to return the funding that was cut from for DepEd鈥檚 budget to aid in the country鈥檚 response to the pandemic. 鈥淚f we can print money, why can鈥檛 we print books? The ones public school students are using cost as little as P50. Kung may perang pang transistor radios, dapat mayroon ding pang libro(If there is money for transistor radios, there should also be funds for books),鈥� Mr. Recto said in a statement. – Charmaine A. Tadalan

US grants $2.5 million aid for DepEd COVID response

THE UNITED States government is providing $2.5 million, equivalent to about P126 million, in support of the Philippines鈥� Basic Education-Learning Continuity Plan during the coronavirus disease 2019 pandemic. 鈥淭he U.S. government, through USAID (US Agency for International Development), remains committed to ensuring young students have the opportunity to continue to learn despite the challenges that COVID-19 has created,鈥� USAID Mission Director Lawrence Hardy said in a statement Thursday. The continuity plan is the Department of Education鈥檚 (DepEd) response to the disruption in basic education due to the crisis, which will largely depend on distance learning. More than 27.7 million students are seen to be affected by school suspension and other challenges such as lack of access to learning materials.The US assistance will provide teachers instruction strategies and learning materials useful for both school and home learning. It will also support parents for more effective home learning activities. Further, USAID has assisted DepEd in developing assessment tools to gauge student literacy skills. It will also be partnering with the private sector and local media companies for information sharing to help learners while classes are suspended. – Charmaine A. Tadalan听

Bill setting1 year prescription period for cyber libel filed in House

A BILLseeking to amend the Anti-Cyber Crime Law with the introduction of a one-year prescription period for cyber libel has been filed in the House of Representatives. Cagayan de Oro City Rep. Rufus B. Rodriguez filed House Bill 7010 after a Manila court convicted Rappler, Inc. Chief Executive Officer Maria Ressa and former writer-researcher Reynaldo Santos Jr. of cyber libel over an article published in 2012.They were sentenced to six months to six years in prison and ordered to jointly pay the businessman who sued them P400,000 in moral and exemplary damages.The proposed measure introduces a new section stating that there is only a one-year prescription period for libel under the Cybercrime Law, which is currently silent on the matter.鈥淪ome legal experts argue that since the article involved in the Ressa-Santos case was published in May 2012, then the alleged crime has prescribed in May 2013. If it was republished in February 2014, then the complainant had only until February 2015 to file a complaint. The case was filed in court on Feb. 5, 2019,鈥� Mr. Rodrigues said in a statement on Thursday.He cited Far Eastern University Law Dean Melencio S. Sta. Maria who said the Supreme Court, in upholding the constitutionality of the Anti-Cyber Crime Law, already ruled that cyber libel 鈥渋s not a new crime鈥� since the Revised Penal Code already punishes libel,which has a prescription period of only one year.鈥淏ecause cyber libel is not a new crime, then the one-year prescriptive period applies to it. Moreover, such prescriptive period (under the Penal Code) was not changed by the Anti-Cyber Libel Law,鈥� Mr. Rodriguez said. – Genshen L. Espedido

鈥淭here are sectors, there are people that say Lazada or the platform should be entirely liable. And I believe that if the platform is entirely liable, then what happens is that the seller is now passing his entire responsibility for running a business to the platform. This will actually encourage even more scam sellers,鈥� Lazada Philippines Chief Executive Officer Ray Alimurung said Thursday during a virtual hearing of the House committee on Trade and Industry.

Mr. Alimurung said that merchants actually benefit from the use of online platforms, while Lazada has been 鈥渙ut-of-pocket for the last eight years with no profit in sight.鈥�

鈥淚f I were to raise my costs due to burdens put on the platform such as extra-ordinary due diligence, liability for everything on the platform, and inspection of all goods sold on the platform my operating costs will increase,鈥� he said.

鈥淲e kind of have to agree what is the expectation from the platform in the joint responsibility. I would say very high on that list is some manner of self-regulation. And that鈥檚 something we should discuss, what should that be like,鈥� Mr. Alimurung added.

The panel was tackling House Bill 6122 which seeks to establish an E-commerce Bureau to act as a 鈥渧irtual one stop shop鈥� for consumer complaints about internet transactions, including fraudulent ones.

Digital logistics company QuadX, Inc. President Mia Icasiano-Bulatao said informal merchants who sell using social media should be covered by the bill.

鈥淢uch of the provisions of this bill are designed for formal merchants or formal sellers, now my request is we actually break it down to informal (sellers). Now within Facebook, there is a Facebook marketplace, there are Facebook shops, there are pages, there are individual sellers that are just accounts that aren鈥檛 even covered by the provisions of this bill,鈥� she said.

Philippine National Police Deputy Director for Criminal Investigation and Detection Group Nicolas D. Torre III said that online scams are a major problem for the agency.

He told the panel that remittance centers should be authorized to handle money transfers between the customer and the online seller to facilitate the tracing of payments.

鈥淜ung ikaw ay naloko, nagbigay ka na ng pera, na-claim na nung seller at hindi niya pinadala ang item, dadaan ka sa butas ng karayom para malaman kung saan kinlaim nung seller at sino yung nag claim ng pera. (If you鈥檙e a fraud victim and lost money to a seller who does not send an item, it鈥檚 a difficult process to determine who claimed the money and where.) We need to make it easier,鈥� he said. 鈥� Genshen L. Espedido

THE OFFICE of the Ombudsman has formed two teams to investigate alleged anomalies committed by health officials, including Secretary Francisco T. Duque III, in the government鈥檚 response to the coronavirus disease 2019 (COVID-19) outbreak. 鈥淚 directed the creation of two more investigating teams who will jointly investigate alleged irregularities and anomalies committed by DoH (Department of Health) officials and employees, including Health Sec. Francisco Duque, in relation to the response of the DoH during this pandemic,鈥� Ombudsman Samuel R. Martires said in a statement on Wednesday. Mr. Martires said the probe will focus on several issues: the delayed procurement of personal protective equipment and other medical gears for healthcare workers; alleged lapses and irregularities that led to the death or infection of medical frontliners; delayed processing and release of benefits and financial assistance for 鈥渇allen鈥� and infected healthcare workers; and the 鈥渃onfusing and delayed鈥� reporting of COVID-19 related deaths and confirmed cases. He said the Office of the Ombudsman launched a probe鈥渁 few weeks prior to the lockdown鈥� on March 15, but investigators were given a 鈥渞unaround鈥� by some DoH officials and personnel. Mr. Martires said he authorized the joint investigation team to file the necessary criminal and/or administrative case against any official or employee who fails or refuses to comply with the legal process of the probe.

WELCOME
The DoH, in a statement on Wednesday, said it welcomes the investigation and it is willing to comply with all directives from the Ombudsman. It also defended that the department has maintained transparency through 鈥渞egular reporting of cases and deaths through its pressers, situation reports, and in its tracker, publicly available in the official channels. The health agency also said it has already released the cash benefits due as well as processing new claims. 鈥� Genshen L. Espedido

DoH warns public vs steroid used for severe COVID-19 patients

THE DEPARTMENT of Health has warned the public against using dexamethasone as self-medication to prevent coronavirus infection, following a study by researchers in England indicating that the steroid increases the survival rate of patients with severe conditions. Health Undersecretary Maria Rosario S. Vergeire noted that the study of the University of Oxford involved only severe and critical patients. She also said that it has not been peer-reviewed, a process necessary for the completion of the study. 鈥淪o dapat maipakalat natin sa mga tao, na hindi tayo bibili sa drug stores para inumin natin ito para ma-prevent na magkaka-COVID (coronavirus disease 2019) tayo (So we need to disseminate to the people that we should not buy it from drug stores, take it, and prevent contracting COVID),鈥� she said in a virtual briefing. The health official did say that the use of dexamethasone for treating patients of the deadly disease would be a 鈥渂reakthrough鈥� for science once the study is completed. News reports say under the study, the steroid was administered to more than 2,000 severe patients of coronavirus. It reduced deaths by 35% among those under ventilator and by a fifth for those receiving oxygen. The trial included a control group of 4,000 patients who were not given the drug. Ms. Vergeire also said they are communicating with four manufacturing firms, including Chinese state-owned Sinopharm, for possible participation in trials of a vaccine for coronavirus. The government will also be submitting intent to the World Health Organization to join the solidarity trial for a vaccine, she said. 鈥� Vann Marlo M. Villegas

BIR still facing legal stumbling block over POGO taxation

THE BUREAU of Internal Revenue (BIR) admits legal issues are still keeping them from collecting franchise taxes from some Philippine Offshore Gaming Operators (POGOs). In a briefing on Wednesday, BIR Deputy Commissioner for Operations Arnel S.D. Guballa said lawyers of some POGOs insist that they are not obliged to pay franchise taxes because the business income source is offshore. 鈥�Sinasabi nila na 鈥楬indi kami taxable kasi ang POGO ay offshore, ito ay nasa ibang bansa鈥�…蝉辞 nandoon po 鈥�yung legal issue (They say because POGOs are offshore, it comes from another country鈥� so there lies the legal issue),鈥� he said. While value-added tax and withholding tax are clearly specified and the government is able to collect these from complying POGOs, the franchise tax remains vague. 鈥�Hindi po siya ganon kaliwanag (it鈥檚 not that clear,鈥� Mr. Guballa said. Nonetheless, the BIR is 鈥減ushing鈥� for them to pay the franchise tax because the business operations is done in the Philippines. 鈥� Gillian M. Cortez

Enrile says ABS-CBN ownership remained with Lopezes despite sequestration order

FORMER Senate President Juan F. Ponce Enrile, who served as martial law administrator during the Marcos Administration, said the ownership of ABS-CBN Corp. remained with the Lopez family despite the sequestration order on all television and radio stations in the country. 鈥淭he facilities of the entire ABS-CBN complex, broadcast complex, were placed under the control of the government. The title of all of these facilities was never transferred to the government. They remained with the owners,鈥� Mr. Enrile said in a virtual hearing of the House of Representatives committees on legislative franchises, and good government and public accountability. In the same hearing, ABS-CBN Vice Chairman Augusto 鈥淛ake鈥� A. Lopez said the government did not return the ownership of the network to the company. Mr. Enrile contradicted this saying, 鈥�Kaya hindi po tama 鈥榶耻苍驳 sinabi ni Jake Almeda Lopez na inagaw ni President (Ferdinand E.) Marcos 鈥�yung (What Jake Almeda said is not correct that Marcos snatched) ABS-CBN. It was part of the national policy to immobilize and control the communication system and the outlets for information in the entire nation and that is what we did,鈥� Mr. Enrile said. Meanwhile, Albay Rep. Edcel C. Lagman said no Constitutional provision was violated when the properties and equipment of ABS-CBN was returned to the Lopez family after martial law. 鈥淪ince the Lopez family as majority owners of ABS-CBN, it stands to reason that it should be the one compensated for the illegal seizure of ABS-CBN during martial law and the short take-over of the same at the aftermath of the EDSA People Power Revolution,鈥� he said. The committees were tackling whether the acquisition of ABS-CBN by the Lopez family after the EDSA Revolution was pursuant to the Constitution in line with the broadcast firm鈥檚 application for a new franchise. 鈥� Genshen L. Espedido

DoJ says review of anti-terror bill focused on govt鈥檚 needs and mandate to fight violent extremism

JUSTICE SECRETARY Menardo I. Guevarra said their review of the controversial anti-terrorism bill focused on the needs of the government in combatting violent extremism as well as mandates under the Constitution. He said they analyzed each line of the bill, 鈥渁lways keeping in mind for whom and against whom the anti-terror bill was crafted.鈥� 鈥淭o the extent possible, we have considered the operational needs of the government in dealing with terrorism as well as our international commitments, without losing sight of the legal and constitutional parameters within which all state actions should be circumscribed,鈥� he told reporters via Viber. The Department of Justice was due to submit its comments on Wednesday to the Office of the President. The bill has been approved by Congress and only requires the signature of the President to become law. President Rodrigo R. Duterte earlier certified the bill as urgent. Various sectors have expressed opposition to the proposed law, citing provisions that pose a threat to constitutional rights. 鈥� Vann Marlo M. Villegas

Inter-agency task force formed for Facebook dummy accounts probe

AN INTER-AGENCY task force has been formed for the investigation of the proliferation of dummy accounts on Facebook. Justice Undersecretary Markk L. Perete said the task force is composed of the National Privacy Commission, the Department of Information and Communications Technology, and the Department of Justice. 鈥淭he contents of the accounts have already been preserved upon the request of our law enforcers,鈥� he told reporters in a Viber message. As of June 15, Mr. Perete said 198 reports involving 300 accounts have been received. He explained last week that the number of accounts are higher than the reports because some have more than one dummy account. Mr. Perete also said the department is looking into all possible angles linked to the duplication. Suspects may be charged with computer-related identity theft under Republic Act No. 10175 or the Cybercrime Prevention Act of 2012. 鈥� Vann Marlo M. Villegas

Anti-red tape office resumes investigations

THE ANTI-RED Tape Authority (ARTA) has resumed formal investigations and filing of cases, which were suspended during the strict lockdown implemented to contain the coronavirus spread. ARTA Director-General Jeremiah B. Belgica, in a television interview Wednesday, said they resumed these processes on June 15. During the lockdown period, ARTA attended to red tape concerns by calling the agency concerned or setting meetings between the agency and stakeholder. 鈥淧rior to that, especially during the ECQ (enhanced community quarantine), it is not wise to distract all the government agencies with notices to explain when they are actually trying to respond in a global pandemic,鈥� Mr. Belgica said. ARTA had previously extended the deadline for government agencies to report on their compliance with a Palace order to streamline regulation. Compliance reports are now due on July 25 from the initial March deadline. Meanwhile, the requirement for government agencies to implement three, seven, and 20 working days processing periods, depending on the transaction, remains suspended in consideration of continued health safety protocols. Mr. Belgica said ARTA already submitted the reforms undertaken for the World Bank鈥檚 2021 Doing Business survey, predicting a nine-place jump to 86^th from 95^th last year, without accounting for the performance of other countries. Mr. Belgica said he expects an improvement in the indicators involved in enforcing contracts and dealing with construction permits. In the October 2019 report, the Philippines rose to 95^th place from 124^th the previous year. 鈥� Jenina P. Iba帽ez

鈥淎s for health, Congress already passed successive increases in sin taxes precisely to fulfill both consumption objectives and funding objectives. I would like to see improvements in service delivery first before I am convinced that we should impose new taxes,鈥� Albay Representative and House Ways and Means Committee Chairman Jose Maria Clemente S. Salceda told reporters via Viber Wednesday.

The Philippine Health Insurance Corp. (PhilHealth) said it will be running a budget deficit of close to P100 billion over the next four years based on projected payouts that include patients treated for coronavirus disease 2019 (COVID-19).

During a Joint Congressional Oversight Committee hearing Tuesday, PhilHealth President Ricardo C. Morales said that the agency is now experiencing a shortfall as it has only collected 10% of what it raises over the same period in 2019. Citing these concerns, Mr. Morales recommended a 鈥済eneral delay鈥� in the implementation of Universal Health Care (UHC) as well as the postponement of the expansion of primary care benefits.

Mr. Salceda said that Philhealth should address its service delivery issue before new revenue is raised.

鈥淩egarding Philhealth鈥檚 financial capability, for example, I have questions before I can say we should raise new revenue. First, is the reserve fund being invested in the most optimal way possible? Second, are there stronger mechanisms to prevent fraud? Third, are claims being paid to begin with?鈥� Mr. Salceda said, adding that the agency should propose 鈥渙perationalized alternatives鈥� before delaying the implementation of UHC.

鈥淎s for DoH (Department of Health), are the most basic services, such as immunization, being delivered satisfactorily? Are new facilities requested being used? Universal Health Care systems have to be very efficient with spending. Otherwise, they tend to balloon into fiscally unsustainable super programs that countries struggle to support as their demography shifts,鈥� he added.

Enacted in February 2019, the UHC law seeks to expand access to health services by automatically enrolling all Filipinos in PhilHealth鈥檚 National Health Insurance Program to provide a 鈥渃omprehensive set of health services without financial hardship.鈥� 鈥� Genshen L. Espedido

The unnumbered substitute bill consolidates six measures, using House Bill 3412 written by Negros Occidental Rep. Jose Francisco B. Benitez as the lead bill.

鈥淚t is imperative to introduce game-changing solutions, increasing food production by maximizing available spaces and utilizing emerging agriculture technologies and methods, particularly in urban areas where hunger incidence is prevalent,鈥� he said in his explanatory note.

During the joint virtual hearing, Mr. Benitez said that the pandemic 鈥渞enewed鈥� the sense of urgency to increase food sufficiency and food security particularly in urban areas.

Under the bill, local government units are directed to identify and develop idle government and/or private land without prejudice to the rights of owners.

The Department of Human Settlements and Urban Development is also directed to ensure the provision of adequate space for community gardens, while the Department of Agriculture (DA) will provide technical assistance and support services to ensure full productivity.

Compliance by subdivision and condominium developers will qualify them for incentives under Republic Act 10771 which includes a special deduction from the taxable income equivalent to 50% of the total expenses for skills training and research development expenses, and tax and duty-free importation of capital equipment.

The measure also seeks to establish an inter-agency program called the National Convergence Program on Urban Agriculture which will be headed by the DA to implement the provisions of the bill.

The substitute bill will be transmitted to the Committee on Appropriations for consideration.

In a statement issued at the end of May, the DA said that some 10鈥�15% of the land area in cities could be converted into fruit and vegetable farms. The agency is also pushing an Urban Agriculture Project which involves the distribution of garden starter kits as well as the extension of technical assistance to households and communities. 鈥� Genshen L. Espedido