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Stricter No Smoking rules starting Monday

Roy — Sun, 29 May 2011 02:26:46 +0000

A stricter “No Smoking” policy in public places will be implemented in Metro Manila starting Monday and the Metro Manila Development Authority (MMDA) will see to it that it will be imposed.

The MMDA will be arresting smokers on and secondary roads starting Monday, especially those inside public utility jeepneys and buses. This crackdown against smoking in public places is enforced by the MMDA in partnership with health and environmental officers of Metro Manila’s 17 localities.

MMDA Chairman Francis Tolentino invoked Section 5 of Republic Act 9211 of 2003 or An Act Regulating the Packaging, Use, Sale, Distribution and Advertisement of Tobacco Produces and For Other Purposes, and also the anti-smoking drive of the Land Transportation and Franchising and Regulatory Board in the implementation of the No Smoking policy.

Those who will be caught will be fined P500 for the first offense, or will be required to render an eight-hour community service if they cannot afford to pay the fine.

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De Lima nominated for the ombudsman post

Roy — Thu, 12 May 2011 18:32:35 +0000

Department of Justice (DOJ) secretary Leila de Lima was nominated for Ombudsman before the Judicial and Bar Council (JBC) by Assistant State Prosecutor Romeo Swenson because he said he beilieves that de Lima is most qualified to head the anti-graft agency. “Secretary de Lima has shown he incorruptible stand, integrity beyond reproach and character par excellence in serving the public,” Senson said.

De Lima, however, said last week that she is not interested in the ombudsman post and that she will be more fulfilled if she stays in the DOJ, adding that she will decline any nomination. She said she wanted to stay in the justice department where she feels she could e more effective.

“I’ve been here for just less than a year,” De Lima said, “I’m just starting. There are many, many more problems, challenges to face. The mandate of the DOJ is broader, so I feel I can do a lot more.” Under the JBC rules, a nomination for a vacancy will be accepted only when the nominee accepts the nomination.

The eight-man council recently officially opened the acceptance of applications and nominations for the post of the ombudsman. It gave interested parties a non-extendible period of 10 days or until May 16 to submit applications and nominations. JBC said it already received a nomination for lawyer Ernesto Francisco Jr., and former Pampanga governor Eddie Panlilio.

JBC also expected to receive a nomination for Dean Jose Manuel Diokno, son of the late senator Jose Diokno. He will be endorsed by the Free Legal Assistance Group. The council will make the official list of nominees for ombudsman public, after all nominations and applications have been received.

The Ombudsman Act (RA 677) said that the ombudsman should be “a natural citizen of the Philippines, at least 40 years old, of recognized probity and independence, member of the Philippine Bar, and must not have been a candidate for any elective national or local office.”

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MTRCB suspends Willing Willie

Roy — Wed, 04 May 2011 05:01:35 +0000

The Movie and Television Review and Classification Board (MTRCB) suspended the controversial game show Willing Willie for one month. The MTRCB, however, took into consideration the days that the show went on voluntarily off the air, which was since April 11. That means the suspension will be lifted on May 8 and the show may resume regular programming on May 9.

The program will be on probation or on a “per-broadcast permit” status, until the MTRCB decides otherwise. The 14-page decision of the MTRCB reads, “The Committee hereby directs the MTRCB Agents to conduct a daily monitoring of the show, and to submit a weekly report to the MTRCB Chief Legal Counsel, with regards to the faithful implementation of the measures committed by ABC5.”

The show has been the subject of complaints after show host Willie Revillame was said to have prodded six-year old Jan-Jan to gyrate like a macho dancer in one of its episode in March. The MTRCB found the show’s network ABC-5 and network executive Ramon del Rosario guilty of violating Presidential Decree 1986, which created the MTRCB and empowered it to disapprove broadcast content found to be immoral or indecent.

The board, before deciding to impose the one-month suspension, took several factors into consideration. They commended the network for its formal apology and its voluntary suspension. It resisted calls by outraged critics to impose a more severe punishment, including termination of the show. The MTRB also considered the fact that Willing Willie was a “first-time offender.”

Regarding the probation, MTRCB adjudication committee chairman said they will be issuing a permit for Willing Willie to resume programming on May 10. From then on, they will be requiring the producers to bring recorded videotapes that will be reviewed daily before issuing permit.

Leonard Vera, Revillame’s lawyer, said that while they considered by decision of MTRCB unacceptable, they were still respecting it.

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Binay’s recommendation on Marcos’ burial at Libingan ng mga Bayani out next month

Roy — Sun, 01 May 2011 19:51:17 +0000

Vice President Jejomar Binay was tasked to make a decision whether or not the late dictator Ferdinand Marcos will be allowed to be buried at the Libingan ng mga Bayani. The vice president said he hopes to submit by next month recommendation on the proposal to bury the former president at the Philippines’ national heroes’ cemetery.

Binay said he is still collating the opinions of different groups before he submits his opinion on the issue. He said the Office of the Vice-President is still waiting for the official position of the registered political parties, civic groups and people’s organizations.

“We want to take into account the views of all sectors and groups. We want to encourage people participation in decision-making,” Binay said, adding that commentaries published in newspapers have also been taken into considerations.

The vice president said that more than 3,000 Filipinos worldwide have responded to the survey conducted asking respondents their opinions about the proposal to give Marcos a hero’s burial. As of April 15, Binay said his office received 3,115 replies of which 2,139 were sent through text message and 976 were sent through email.

“We are interested in getting the people’s opinion on the issue, not to count how many agreed or disagreed. We do not tally how many voted yes or no. The survey is intended to get the people’s sentiments so we could formulate and give the best recommendation to President Aquino,” he said.

The Vice-President said he hopes to conclude the survey and submit his recommendation to President Aquino next month Some 218 congressmen have already affixed their signatures in support of the resolution, but Binay apparently now has the final say.

Those allowed to be buried at the heroes’ cemetery are the military personnel who died in the line of duty or were honorably discharged from the service, Filipino war veterans, former presidents, dignitaries, statesmen and National Artists. The remains of widows of former Philippine presidents, secretaries of national defense and Armed Forces chiefs of staff are also authorized to be interred in the same plot where their husbands are buried.

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Arroyo couple asked to appear before DOJ

Roy — Sun, 01 May 2011 07:07:44 +0000

The Department of Justice (DOJ) subpoenaed Ang Galing Pinoy Party List Rep. Juan Miguel “Mikey” Arroyo and his wife Angela ordering them to appear before the justice department to answer the charges for the P73.85-million tax evasion cased filed by the Bureau of Internal Revenue (BIR) April 7.

The former presidential son and his wife were ordered to appear before the DOJ at 2 p.m. on May 12 and 26. They were also told to submit their counter-affidavit and supporting documents. Arroyo is said to be in the US with his mother, former president and Pampanga Congresswoman Gloria Macapagal-Arroyo.

The subpoena, dated April 28, was issued by a three-member panel of prosecutors tasked to handle the preliminary investigation of the case. The panel is composed of Senior Assistant State Prosecutor Lagrimas Agaran, Assistant State Prosecutor Ma. Christina Barot, and Assistant State Prosecutor Mederlyn Presa-Mangalindan.

The BIR filed the complaint last April 7 against the Arroyo couple after gathering ample evidence. The tax agency accused the couple of wrongful declaration of taxable income and non-filing of income tax returns.

The BIR said Arroyo only paid P2.4 million, P1.7 billion and P376,000 in taxes for the year 2004, 2006 and 2007, respectively, when he and his wife bought several properties worth millions from 2004 to 2009 – including residential houses in the United States, in Lubao, Pampanga and at La Vista Subdivision in Quezon City.

BIR Commissioner Kim Henares said the agency patterned its investigation on the method used by the US authorities against gangster Al Capone and found “substantial underdeclaration of income by over 30 percent.”

Henares said, “Under the Tax Code (NIRC), underdeclaration of taxable income of more than 30 percent is considered a prima facie evidence of fraudulent return.” Arroyo also supposedly did not file income tax returns (ITRs) for the taxable year 2005, 2008 and 2009, while his wife did not file ITRs from 2003 to 2009.

If found guilty, the couple could face imprisonment of up to four years and fine of at least P30,000 for each count of underdeclaration of taxes, and imprisonment of up to 10 years and P10,000 fine for each count of non-filing of income tax return.

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No wage increase announcement on Labor Day

Roy — Thu, 28 Apr 2011 17:37:41 +0000

The much anticipated announcement on Labor Day will not be heard this coming May 1. Secretary Rosalinda Baldoz of the Department of Labor and Employment (DOLE) clarified that there will be no announcement of wage increase on May, despite Malacañang’s pronouncement before that it is coming out with a Labor Day gift to help workers cope with the rising prices.

Baldoz said she has no idea what good news President Aquino was referring to but she was definite there won’t be any increase in salary because the earliest public hearing was set on May 2. She also noted that Aquino had already declared he would leave the decision on salary adjustments to the regional wage boards although he could give instructions to hasten the process.

But she assured workers that the wage boards could grant a salary increase within the month. “I think within the month of May, they should be able to finish the deliberation and come out with their decision,” Baldoz said.

Other officials from the labor department said the president could be referring to a package of non-wage benefits when it made the announcement that good news would be delivered on Labor Day. “The president I think would be announcing non-wage benefits for workers such as discounts and other assistance they would provide to help workers cope with the high cost of commodities,” said a labor official.

The labor department will be having a Jobs and Livelihood Fairs which will take place simultaneously all across the country on Labor Day. There are more than 100,000 jobs available In Metro Manila, which will be held at the Rizal Park, there are 200 companies and recruiters who will be offering 30,000 jobs to new graduates, displaces OFWs and other jobseekers. DOLE is encouraging job applicants to pre-register at the website of PhilJobNet to facilitate processing of application of the Labor Day job fair.

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President wants oil firms to open books to public

Roy — Thu, 21 Apr 2011 11:23:46 +0000

President Benigno “Noynoy” Aquino III yesterday said he wants oil companies to open their books to public scrutiny to prove that they were not taking advantage of the public in their series of oil price increases.

“That was my position ever since I have been in public service, isn’t it? If reasonable, why can’t they show it?” the President told reporters in an ambush interview at the Ninoy Aquino International Airport Terminal 3 in Parañaque where he led an inspection of the facility.

The president also asked the Deparment of Energy (DOE) to find way of simplifying the computation of prices for the benefit of the public. “It will show, demonstrate if prices are right or wrong. And again, they repeatedly answer that all sectors are involved in the computation, face to face, nothing is hidden from them as to how pump prices are arrived at,” Aquino said.

He said the secretary would always tell him that every time that they have been demonstrating the formula on how to arrive at prices, they have been very transparent to include even the militant transport group.

DOE’s director for Oil Industry Management Bureau Zenaida Monsada said the recent price hikes were higher than what the energy department’s computation. The DOE sent letters to the oil firms asking them to explain why they have a higher price increase that what official computation should indicate.

Chevron, after receiving the letter from DOE, rolls back it prices of its oil products a day after increasing the same. Petron, for its part, promised to freeze its prices during the Holy Week. “We have no plans of increasing this week,” the company said.

Meanwhile, Unioil Petroleum Philippines Inc. is offering its gasoline products for P50 per liter for a minimum of P1,000 purchases. The company said the promo is in line with its commitment to corporate social responsibility.

Aside from the request to open their books, the government is also planning to issue an executive order that would ban further oil price increases.

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Government plans EO to freeze oil prices

Roy — Thu, 21 Apr 2011 08:58:35 +0000

In response to the steady rising of oil prices, the Aquino government is planning to resort to “extreme legal measure” by issuing an executive order that would ban further oil price increases. The same has been done during the Arroyo administration when Executive Order was in issued in 2009 to freeze oil prices.

Department of Justice (DoJ) Secretary Leila de Lima said, “Talking about possibilities, there’s always such a possibility of coming up with an executive order freezing the oil prices. If it comes to that, it will basically and primarily be an executive decision or action.” She further added that such a measure would be “legally feasible.”

The DoJ, together with the Department of Energy (DOE), has mandates under the oil deregulation law to ensure that the oil price adjustments are reasonable.

The warning on an executive order to freeze oil prices came after the DOE demanded an explanation from oil firms whose recent price hikes were found out to be above the energy department’s prescribed adjustments based on a similar formula used by local firm. The Tuesday price increase was the 13th price hike implemented by oil companies this year.

Oil firms Shell, Chevron and Total increased prices of regular gasoline by 70 centavos liter; unleaded gasoline, 60 centavos; diesel, 25 centavos; and kerosene, 40 centavos as 6 a.m. on Tuesday. Per DOE’s computation, price hikes should have only been P0.16 per liter for diesel and P0.39 for gasoline.

Chevron, after receiving the letter from DOE, rolls back prices of regular gasoline by P0.70 per litter, unleaded gasoline by P0.60, diesel by P0.25 and kerosene by P0.40 by noon of Wednesday.

De Lima reiterated the plan to up a new body which will be called “DOJ Office for Competition,” which she said would “address cartels and restrictive agreements.” The proposed body would conduct “fact-finding investigations and determine whether violations of anti-trust and related laws are being committed by persons, natural and juridical.”

“Deregulation or privatization does not mean big business is free to do anything under the sun. Public welfare is paramount,” she stressed.

“This body will faithfully carry out constitutional and existing legal provisions against combinations in restraint of trade. Proceedings will depend on the specific industry and/or nature of the case,” De Lima added.

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House Bill requires hospitals to post price list of medical services

Roy — Mon, 18 Apr 2011 14:23:54 +0000

The House of Representatives approved last week on third and final reading a bill requiring all hospitals and clinics to post price list of all their series, incidental expenses and medical supplies in a conspicuous place in their premises to ensure accessible, transparent, and reliable delivery of services.

House Bill 4308 author Pasig Representative Roman Romulo hopes that the bill would also gain the approval of their counterpart in the Senate. “Through the passage of this measure, the public is empowered to choose the healthcare facility where they would avail themselves of medical services, especially during times of economic downturns and ultimately, achieve the national goal of establishing a responsible and efficient healthcare delivery,” he said.

Also known as the Healthcare Services Price Disclosure Act of 2011, House Bill 4308 requires all healthcare facilities to make their price list available to any patient or their representative so that patients could adequately exercise their option to choose a healthcare facility.

With HB 4308, Romulo seeks to provide transparent, accessible and reliable information on the prices of healthcare services, including incidental expenses and all items that can be found in the medical bill of a patient. Any increase in their prices should take effect only after proper posting as required in this measure and shall not affect patients admitted prior to posting increase in price.

Failure to post a price list, or posting outdated, inaccurate, and inadequate price list could result to the healthcare facility being slapped with stiff penalties. HB 4308 provides that any juridical person who violates shall be subject to an administrative fine of not more than P50,000 per instance of violation without prejudice to suspension or revocation of license to operate such healthcare facility for a period not exceeding 60 days.

The personnel directly responsible for the violation shall also be subject to an administrative fine of not more than P25,000 per instance of violation without prejudice to suspension or revocation to practice profession for period not exceeding 60 days according to the bill.

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Metro Pacific bids to run and maintain LRT and MRT

Roy — Sat, 16 Apr 2011 09:01:55 +0000

The Department of Transportation and Communications (DOTC) sent invitations to qualified parties to submit an expression of interest for the interim contract (4+1 years) of the operations and maintenance of Light Rail Transit (LRT) 1 and Metro Rail Transit (MRT) 3 system.

One of those who submitted a letter of intent was the subsidiary of Metro Pacific Investments Corp. (MPIC), Metro Pacific Light Rail Corp. (MPLRC). The MPLRC filed its expression of interest for an interim contract to undertake the operation and maintenance of both the LRT1 and MRT3.

According to MPIC, its proposal submitted is more comprehensive as it includes, among others, a long term O&M, capacity and rehabilitation of MRT3 and its integration to LRT as one system. In support to the government’s public-private partnership (PPP) program, the company agreed not to interpose any objection to the bidding of the interim O&M contract for LRT1 and MRT3 on the undertaking that in line with government’s transparency policy and in accordance with MPIC’s rights as a stakeholder in the Metro Rail Transit Corp. (MRTC), the rights of the latter over MRT3 will be fully disclosed in the terms and reference of the bidding for the said interim contract.

The company also stressed that it has not withdrawn its proposal to expand MRT3 which it submitted to the DOTC last January 17. The MPIC said it maintains its position that the private shareholders of MRTC have the legal right to assert MRTC’s rights over the maintenance of MRT as well as the expansion rights over MRT, both contained in the existing build-lease-transfer (BLT) agreement.

Likewise, the MPIC will not object to the bidding of the LRT1/MRT3 O&M contract provided that the maintenance and expansion rights in the existing BLT agreement are recognized and disclosed in the TOR for said bidding.

The MPIC controls about 64.07 percent of MRTC after acquiring the 28.04 percent interest of the Sobrepeña-led Fil-Estate group as well as the interest of other shareholders such as Anglo Philippine Holdings Inc., DBH Inc. and Railco Investment Inc.

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PLDT assured market would still be competitive after acquisition of Digitel

Roy — Fri, 15 Apr 2011 04:12:21 +0000

The Philippine Long Distance Telephone Co. (PLDT downplayed fears that its takeover of rival Digitel Telecommunications Philippines Inc. would hinder competition in the local telecommunications industry. The telecom giant in fact said that the PLDT-Digitel merger would even be beneficial to the industry and would bring in better services and more competitive prices for consumers.

PLDT’s Manny Pangilinan said, “We will keep Digitel as a separate company. This is not a merger… more importantly, we will maintain the unlimited and bucket-priced services of Sun Cellular.” He assured that the PLDT group will officially set itself to developing widely accessible, high-speed internet. “We will make a formal commitment to the government for the benefit of consumers,” he added.

Pangilinan said that the acquisition of Digitel will help PLDT roll out broadband services to 95 percent of the country “in three years.” At present, only two-thirds of the Philippines has high-speed internet access.

The PLDT statement came out in response to the concerns raised by some consumer groups and lawmakers that the merger would allow the telecom giant to market prices, ending the “price wars” that have helped keep telecommunication services at affordable rates.

Rival Globe Telecom of the Ayala group even asked the government “to look into the deal” between PLDT and Digitel. Globe said that regulators should consider ordering PLDT to relinquish some of its redundant frequencies following its takeover of Digitel’s operations.

Pangilinan replied that this should only be done in the event of a scarcity of frequencies for new players in the market, which is not the case. He said, “Our frequencies are enough for the subscribers we have.”

After acquiring Digitel, PLDT will acquire 67 percent of industry revenues. Seven out of 10 mobile users in the Philippines will also be on its network.

Pangilinan, however, admitted that due to the size of the agreement, which is valued at P74.1 billion, a state review may be “warranted.” He assured the government though that the market would remain competitive.

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DoJ forms panel to investigate BSP and Banco Filipino counter-charges

Roy — Thu, 14 Apr 2011 03:57:25 +0000

The Department of Justice (DoJ) received charges filed by Bangko Sentral ng Pilipinas (BSP) and Banco Filipino Savings and Mortgage Bank against each other. To conduct a preliminary investigation on the said charges, Justice Secretary Leila de Lima formed a three-man panel lead by Senior State Prosecutor Rosanne Balauag, and members Assistant State Prosecutors Bernardo Parico and Agapito Fajardo Jr.

Formed under Department Order No. 282, the immediate task of the panel is to consolidate the two complaints. Both BSP and Banco Filipino are embroiled in litigation after the BSP’s Monetary Board and the Philippine Deposit Insurance Corp. seized the bank’s real estate assets and placed it under receivership.

Banco Filipino accused the BSP and Monetary Board officials of violating Section 3 (e) of RA 3019 (Anti-Graft and Corrupt Practices Act) when it denied the grant of emergency loans needed by the bank under an emergency situation, and when it eventually ordered the bank’s closure and receivership. The bank said it has been seeking P25-billion worth of financial and regulatory relief as well as P19 billion in compensation for its alleged illegal closure in 1985.

The BSP, on the other hand, filed a counter-complaint seeking prosecution of the bank’s directors for alleged willful refusal to file audited financial statements from 2002 to 2007. BSP also accused BF president Teodoto Arcenas Jr. and directory Perfecto Yasay Jr. of falsification and issuance of false statements to hide the true financial condition of the bank; willful refusal to report loans; 26 counts of violation of BSP laws and directives and willful refusal to cease conduct of unsafe hazardous and unsound bank practices.

Banco Filipino also has a pending petition to the Court of Appeals seeking the nullification of MB Resolution No. 372-A which placed the bank under receivership and barred it from continuing its business operations in the country.

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SC upholds cityhood ruling

Roy — Wed, 13 Apr 2011 08:11:45 +0000

The Supreme Court (SC), in their last summer session in Baguio City, upheld the constitutionality of laws passed by the 11th Congress on the cityhood of 16 municipalities. The SC justices kept their 7-6 vote, dismissing the appeal of the League of Cities of the Philippines (LCP) that various cityhood laws be declared unconstitutional.

The cityhood laws questioned were those contained in Republic Acts 9389, 9390, 9391, 9392, 9393, 9394, 9398, 9404, 9405, 9407, 9409, 9434, 9435, 9436 and 9491. However, the resolution was not yet released as it was still being circulated for signature of the magistrate, SC spokesman Midas Marquez said.

The LCP, as well as other sectors, have been criticizing the SC for flip-flopping on the case in its earlier rulings. This time, the High Court stood by its fourth ruling that the cityhood laws do not violate Article X Section 10 and the equal protection clause under Article III Section 1 of the Constitution.

SC junked the contention of LCP that the conversion into cities of the 16 municipalities violated Article X Section 10 of the Constitution, which states that “no province, city, municipality or barangay shall be created, divided, merged, abolished or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of votes cast in a plebiscite in the political units directly affected.”

In its ruling last Feb. 15, the SC reversed itself for the third time and reverted back to its second ruling in December 2009, which held that respondent LGUs were qualified cityhood applicants before the enactment of RA 9009: “To impose on them the much higher income requirement after what they have gone through would appear to be indeed unfair.

“Thus, the imperatives of fairness dictate that they should be given a legal remedy by which they should be allowed to prove that they have all the necessary qualifications for city status using the criteria set forth under the LGC of 1991 prior to its amendment by RA 9009. Truly, the peculiar conditions of respondent LGUs, which are actual and real, provide sufficient grounds for legislative classification,” the SC said.

The SC’s new ruling on the case was a result of the change in vote cast by Associate Justice Jose Mendoza, who voted last year for the unconstitutionality of the laws but reconsidered his stand last February.

Republic Act 9009 took effect on June 30, 2001. It amended Section 450 of the Local Government Code by increasing the annual income requirement for conversion of a municipality into a city from P20 million to P100 million. The amendment was intended to discourage the rush of conversion into cities for the purpose of getting a larger share in the Internal Revenue Allotment (IRA).

The 12th Congress however adopted Joint Resolution No. 29 which sought to exempt the 24 municipalities whose cityhood bills were not approved in the 11th Congress from the P100-million income requirement.

Only 16, out of the 24 municipalities, expressed intention to be converted into cities. The House and the Senate later approved the cityhood bills which lapsed into law on various dates from March to July 2007.

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Ampatuan faces plunder raps

Roy — Wed, 13 Apr 2011 00:21:16 +0000

Former governor Zaldy U. Ampatuan of the Autonomous Region in Muslim Mindanao (ARMM) is facing plunder charges. Interior and Local Government Secretary Jesse M. Robredo said charges will be filed against Ampatuan after an audit report revealed that unaccounted amount of P2.5 billion in government funds. Robredo said the charges could be filed by the end of the month.

He added that fourteen other officials from the Office of the Regional Governor will also be charged after a report by the Commission on Audit (CoA) showed that the office had alleged anomalous transactions between 2008 and 2009 that have been traced to the missing fund.

“The CoA report lists the circumstances of the malverisation, along with the people that should be held accountable and the pieces of evidence pertinent to the charges. We will submit these to the DoJ for review within the week,” Robredo said.

Robredo met with Justice Secretary Leila de Lima and Solicitor General Jose Anselmo Cadiz to discuss the CoA report about the unaccounted state funds. De Lima said she will form a special panel of prosecutors which will review the documents and recommend action, whether to file charges with the Department of Justice (DoJ) or the Ombudsman.

She said, “We need to evaluate the documents so that we can come up with an appropriate legal strategy in handling the case, such as whether the cases can be split up depending on related acts and transaction.”

Additional charges could also be filed against the former ARMM governor and the others later as three other audits of the Department of Public Works and Highways in ARMM, the social fund of the region, and in the province of Maguindanao are completed. “However, it’s important to get the case rolling because if we wait for the other audits to finish, we could fail to file any case at all,” De Lima said.

The justice chief also noted that during the term of former president Gloria Macapagal-Arroyo, widely believed to be a political ally of the Ampatuans, the CoA has not outrightly come up with its report on the audit of ARMM funds. “Never before has there been an audit of ARMM funds, even though we had a lot of information about the funds going to the coffers of the Ampatuans,” said De Lima.

“There are supposed to be auditors assigned to areas like that. It’s either the auditors are afraid or complicit. But more often than not, they would be afraid because no one would dare check whether a particular project exists or has been finished,” she added.

The recently released CoA report, based on an audit of the Office of the Regional Governor of ARMM from January 2008 to September 2009, revealed the office had “a total disregard of the general audit rule that payments must be made in check” as most of the dubious transactions were carried out using cash.

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IT company might shut down its services to LTO

Roy — Tue, 12 Apr 2011 12:11:55 +0000

Stradcom Corp., the exclusive IT service provider for the Land Transportation Office (LTO) warns of a possible shutdown of the database and computer system it operates for the agency if the LTO continues to refuse remitting payments to the private firm. Stradcom provide and maintains LTO’s information technology facilities, including its database and licensing functions.

The IT company has demanded P1.171 billion from LTO for unpaid services rendered since September last year. Company spokesperson Margaux M. Salcedo said, “Since September, payment has been withheld. As of today, it has amounted to P1.171 billion in payables.” Salcedo said the amount represents services that have been delivered.

Stradcom says if the LOT continues the withholding of payments, it could be used as a “force majeure” or a situation beyond its control that Stradcom could invoke to shut down its operations. When that happens, Salcedo said, “LTO employees will be unable to process manually the combined average of 300,000 daily transactions that computerization allows.”

“The process of registering vehicles and drivers licenses will once again take weeks to months instead of being achieved in one hour, as has been made possible by computerization. Criminals will be emboldened. Expect the proliferation of ‘fixers’ as well as ‘carnappers,’” she added.

Earlier, the Department of Transportation and Communication (DOTC) said payments to Stradcom have been withheld due to an ongoing intra-corporate dispute between the company’s current chairman Cezar Quiambao and a group led by Bonifacio Sumbilla and Alderito Yujuico. The LTO has filed an interpleader case with the Quezon City Regional Trial Court Branch 95 to determine the authorized group in Stradcom.

Meanwhile, Salcedo presented three memoranda from the DOTC that directed LTO to pay Stradcom. The first one dated February 22 and was signed by Secretary Jose P. de Jesus ordering LTO to pay Stradcom P751.79 million.

The memorandum read, “To ensure that LTO will not be in default of its contractual obligations under the Build-Own-Operate Agreement dated March 26, 1998, as amended, payment of all amounts due Stradcom should be effected immediately in accordance with the proper procedure agreed upon by the Department, LTO and Stradcom under said agreement.”
The succeeding memoranda, dated March 10 and March 16, were a reiteration of the February 22 issuance.

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Johnson & Johnson fined $70 million by US authorities

Roy — Sun, 10 Apr 2011 05:23:45 +0000

Multinational firm Johnson & Johnson was fined by the United States authorities $70 million on for bribing doctors in Europe and paying kickbacks for contracts under a United Nations (UN) relief program in Iraq.

According to the US Department of Justice and Securities and Exchange Commission, the cosmetics and drug giant has paid doctors and hospitals in Greece, Poland and Romania for contracts and to promote its drugs and medical devices.

The company was also said to have paid kickbacks between the years 2000-2003 for 19 contracts under the UN Oil for Food Program, which provided humanitarian supplies to Iraqis while the country was still ruled by Saddam Hussein.

Johnson & Johnson agreed to pay US authorities $70 million to settle the charges, including $48.6 million to the SEC and $21.4 million to the Justice Department. US prosecutor Mythili Raman said that the company had “cooperated extensively” during the investigation.

SEC enforcement director Robert Khuzami said, “The message is plain; any competitive advantage gained through corruption is mirage. J&J chose profit margins over compliance with the law by acquiring a private company for the purpose of paying bribes, and using sham contracts, offshore companies, and slush funds to cover its tracks.”

Based on the investigation conducted by the authorities, Johnson & Johnson’s subsidiaries Cilag AG International and Janssen Pharaceutica made $858,000 dollars in payoffs to Saddam Hussein’s governments to win $9.0 million in contracts under the deeply corrupted Oil for Food Program.

The kickbacks were said to have been concealed from the United Nations by inflating Janssen and Cilag’s contract prices by 10 percent. The SEC also said that the company was under a related investigation by Britain’s Serious Fraud Office and that a resolution was also expected.

Johnson & Johnson is the 15th largest company in the US in terms of market capitalization.

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PNOC-EC prepares for public offering of its stocks

Roy — Sun, 10 Apr 2011 00:58:14 +0000

The PNOC Exploration Corp. is already starting its preparations for a public-offering of its shares after its directors finally gave the go-ahead. However, the board deferred to give its decision on the actual date so as to be able to pinpoint the proper timing and conditions, according to PNOC-EC chair and CEO Gemiliano C. Lopez Jr., to ensure the highest market price for the shares.

Lopez said, “We hope to ensure the best price for the offering so the board has not fixed the actual date for its float. Timing is important. We would like to assure everyone that the best condition will be obtained for the offering so that our company will get the best and highest price possible in the global market.”

PNOC-EC needed to hold a public float of at least 10 percent of its shares of stock, which is required for a publicly listed company. The government, through PNOC, has 99.71-percent stake in PNOC-EC while the public owns only 0.29 percent. Lopez said the preparations of the documents from the start up to the end of the float could take six to eight months.

The company has not appointed any lead underwriter yet. It is still choosing among the eight prospective financial advisers it has been in talks with. It will send out invitations for interested and potential parties in the next couple of days.

It will be the company’s 35th founding anniversary celebration next week and President Aquino will be its guest of honor and principal speaker. During the said celebration, Lopez will officially turn over to the national government the P3 billion in cash dividends earned in 2010. PNOC-EC earned P2.42 billion last year, up 34 percent from the previous year’s P1.8 billion.

This year, the company allocated P5.25 billion for the exploration and development of prospective petroleum and coal resources within its service contracts. Among PNOC-EC’s priority exploration and production projects are the Malampaya gas project in Palawan, the planned power plants in Isabela province and Malangas in Zamboanga Sibugay, and the Lumbong coal project in Zamboanga Sibugay.

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Willie Revillame’s show goes on hiatus

Roy — Sat, 09 Apr 2011 02:36:41 +0000

After being put in the hot seat once again, controversial television host Willie Revillame announced last Friday that his program “Willing Willie” will be off the air temporarily. Revillame made the announcement after major sponsors started pulling their ads one by one.

The controversy started on the March 12 episode of “Willing Willie” where six year old Jan-Jan, who was one of the show’s contestants, was show dancing and gyrating his hips as if stimulating a striptease as show host Revillame was laughing and egging him, together with the show’s live studio audiences. All throughout, the boy was crying as he was dancing. This triggered strong rebuke from the public, government’s rights and social welfare agencies, child’s rights advocates and hundreds of concerned public.

Revillame, however, maintained that he did not abuse the boy and even hit broadside critics and telling government agencies to instead focus on helping the poor. He also threatened with lawsuit those who attacked him on Twitter. He said “Willing Willie” will be on hiatus for two weeks and after the Holy Week, the management of TV5 would decide if the show will continue to air or not.

Internet activist even created a page in active social media calling for Revillame’s oust from “Willing Willie” and a product boycott of the show’s sponsor, which thus far is unprecedented in the country’s history of consumer activism.

Taking on the cue, major sponsors started pulling their ads from show. Jollibee Foods Corporation last Saturday said it was “holding off” ad placements of its newly-acquired Mang Inasal restaurant chain. Procter & Gamble Philippines likewise suspended advertising on the show. Del Monte Pacific Ltd. followed suit and pulled off its sponsorship of the beleaguered primetime game show.

CDO Foodsphere Inc. also announced that it was withdrawing sponsorship of the show. A brief note in its website states that while the company they were jolted “out of our comfort zones” even as they maintained that they were “in no position to pass judgment” on the issue. Cebuana Lhuillier Pawnshop also announced it would stop advertising on the show beginning Monday.

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BSP eases on bank’s qualifying capital requirements

Roy — Fri, 08 Apr 2011 05:05:20 +0000

The Bangko Sentral ng Pilipinas (BSP) relaxes on the requirement on the risk-based assessment of qualifying capital instruments. The BSP amended Circular No. 709 on the Definition of Qualifying Capital Instruments under the Risk-Based Capital Adequacy Framework for Banks and Quasi-Banks by removing the loss absorption feature from among the requirements that an external legal opinion must cover.

The BSP said that Circular No. 709 was issued last January in order to align the criteria of qualifying capital instruments of banks and quasi-banks with those of the Basel Committee of Banking Supervision, particularly the standards on the minimum conditions for inclusion of hybrid tier1 and lower tier2 capital. After review however, the BSP found out that the requirement of an external legal opinion on the compliance of lower tier2 both have subordinate and loss absorption features which were not required.

The new provision, which is Circular No. 716 states, “Only the subordination feature is applicable to lower tier2 instruments while the loss absorption feature applies only to hybrid tier1 instruments. Circular No. 716, which made the requirement less rigid, was signed by BSP Governor Amando M. Tetangco Jr. last March 25.

The BSP amended the existing risk-based capital adequacy framework in compliance with Basel 3 provisions to further improve the quality of bank capital. It has disallowed new issuances of upper tier2 capital but eligible capital instruments under hybrid tier1 capital, upper tier2 and lower tier2 capital based on existing regulations that have been issued as of December 31, 2010 would continue to be recognized under their respective categories until such time that further guidance on this aspect was issued by the BSP.

The BSP said last January that is has specifically adopted the Basel 3 criteria for inclusion of non-common equity components in banks’ capital base as basis for determining capital instruments that could be counted as regulatory capital by Philippine banks from January 1 this year and onwards. Basel 3 revises the existing international capital standards, commonly referred to as Basel 2, and represents the core of international banking reforms that were deemed to address the weaknesses that were made evident during the global financial crisis.

“The adoption of the new criteria for capital instruments is part of BSP’s commitment to continuously institute reforms that will promote a stronger banking system,” said Tetangco.

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BIR files tax evasion charges against Mikey Arroyo

Roy — Thu, 07 Apr 2011 09:42:54 +0000

The Bureau of Internal Revenue (BIR) filed a P73.85 million tax evasion case against Ang Galing Party-list Representative Juan Miguel Arroyo and his wife, Angela. Perhaps, the biggest fish yet, in its campaign against tax evaders, BIR Commissioner Kim Henares said the couple were charged for attempting to defeat taxes and failing to file income tax returns (ITRs) under Sec. 254 and Sec. 255 of the Tax Code.

Henares said that Arroyo, son of former president and incumbent Pampanga Representative Gloria Arroyo, did not file ITRs for the years 2005, 2008 and 2009, while his wife had no tax returns from 2003 to 2009. She said the couple failed to pay taxes even as Arroyo declared in his Statement of Assets, Liabilities and Net Worth (SALN) millions of pesos worth of real and other properties acquired from 2004 to 2009.

Based on the investigation made by BIR, the Arroyos owned residential houses in Lubao, Pampanga, in La Vista Subdivision in Quezon City, as well as in the United States. They also declared motor vehicles, shares of stock, jewelry, clothes and other personal effects as assets.

Henares said in a press conference at the Department of Justice, “If you report you have an asset, you should be able to say where it comes from, and where it comes from always normally, there’s a tax consequence. So if somebody donated it to you, there should be a donor’s tax. If you inherited it, you should have an estate tax. If you bought it, you should have income from which you got the funds to buy this property. They claim they have all these assets but they have no income tax returns.”

The BIR also said the couple also underdeclared their incomes by more than 30% for taxable years 2004, 2006 and 2007. “A comparison made by the BIR of the Arroyo couple’s increase in net worth with their reported taxable income using the net worth method of investigation first used in the US against gangster Al Capone revealed substantial underdeclaration of income of more than 30%,” the agency said.

The BIR said the Arroyos owe the government at least P73.85 million, inclusive of surcharges and interest. If found guilty, they will face a fine of up to P100,000 and imprisonment of 4 years for violating Sec. 254 of the Tax Code, and a fine of up to P10,000 and imprisonment of 6 years for violating Sec. 255.