PinoyBusiness.ORG - Home » Government

Funds sources

Roy — Thu, 09 Feb 2012 23:52:38 +0000

Every now and then, an opportunity comes knocking to an entrepreneur. More often than, however, those opportunities come when he or she is short on funds. Fortunately, there are many money lenders who can provide additional funds. But to be safe, the entrepreneur should be sure that the source is a licensed money lender which is accredited by the government for him to get protection. Like insurance on his submitted collateral (should it be required), and of course, insurance for himself.

Once it is established that the money lender is authorized, he can proceed with the processing of loan. An entrepreneur would not want an opportunity pass him by just because of lack of funds. He knows better that it is not everyday that opportunities will come knocking at his door. But while he is on the lookout for opportunities, the entrepreneur also knows which one to pick and which one to pass.

What is important here is that, while he may not liquid at all times, he have a list of licensed and authorized money lenders, and other reliable funds sources, so that when a good and feasible venture comes his way he will be ready and he would not “miss the bus,” so to speak.

Possibly Related Topics to Read

Philippine Peso weakens anew

Roy — Thu, 28 Jul 2011 22:05:33 +0000

The Philippine Peso weakened on Thursday as an effect of investors concerns in the local economy. After hitting its strongest thus far in three years early this week, the peso closed at 42.17 against the US dollar on Thursday. Down by 6 centavos from Wednesday’s 42.11.

Traders said it was an effect on the concerns over the debt situation in the United States. With the August 2 deadline drawing near, the US Congress has yet to agree on the debt ceiling of the US government, without which, it will be prevented from borrowing more to raise funds for its maturing obligations.

When the US faults in its debt payment, it sends jitters in the international financial community. Because most emerging Asian markets, the Philippines included, have significant exposure in the US.

Possibly Related Topics to Read

DTI to bring SME Caravan to Antique

Roy — Sun, 15 May 2011 17:43:22 +0000

The Department of Trade and Industry (DTI) will bring business caravan to Antique. The DTI has chosen the province to be one of the sites for the Small and Medium Enterprises (SME) caravan which is slated on the 26th and 27th day of this month.

The trade department is encouraging businesses falling under the category of small and medium enterprises to take part in the said business caravan as it could be of great help for them because they would gain knowledge and skills in the field of their specialization.

The Micro, Small and Medium Enterprises (MSMEs) sector are considered by the national government as the backbone of the country’s economy. They contribute to employment and generate output for the economy. The government considers this sector as a vital link in dispensing new industries to the countryside and providing gainful employment. With this in mind, the government initiated a comprehensive and integrated strategies in sustaining the growth and development of the MSME sector, one of them is the SME Caravan.

Through the SME Caravan, the MSME’s could gain improved access to government and private sector services, particularly in areas where the provision of business services are limited. The caravan also aims to create awareness of SME’s various business development services that are available to them, both from the government and private sector.

During the business caravan, there would be resource speakers who will cover different business topics like Access to Markets, particularly Product Development and Marketing the Business, Packaging and Labeling, Product Costing and Pricing, and How to Participate in Trade Fairs.

For the finance said of business, the Access to Finance module will cover Business Plan Preparations, while the session on Productivity and Efficiency will cover topics such as Good Manufacturing Practices and Food Safety. The module on Entrepreneurship will cover Entrepreneurial Mindset and Opportunity Seeking lectures.

The seminars are free and DTI published information materials on MSMEs will be provided to each seminar participant.

Supporting the DTI in business caravan are different agencies and organizations like the Land Bank of Philippines, Development Bank of the Philippines, Provincial Government, TESDA, OPA, PPDO, DAR, the Sangguniang Panlalawigan and Non-Government Organizations.

Possibly Related Topics to Read

New CDC head assumes post

Roy — Wed, 04 May 2011 18:39:14 +0000

Antonio B. Remollo, former mayor of Dumaguete City, is the new head of the Clark Development Corp. (CDC) replacing Benigno Ricafort, Ateneo law school dean Cesar Villanueva assumed post as CDC chairman, replacing Rizalino Navarro.

Ricafort left to Remollo’s charge a Freeport hosting some P77 billion worth of investments of foreign and domestic firms. He also reported that Clark now employs 60,000 personnel, which is a far cry from the average 24,000 Filipinos employed by the Americans before they left the former US Air Force base.

Ricafort started as CDC board member in 1993 until former president Gloria Macapagal-Arroyo appointed him CDC head in 2008.

Meanwhile, Remollo had been mayor of Dumaguete City in Negros Oriental from 1998 to 2001. In an interview, Remollo said he would keep the current vice presidents of the CDC although they would be under probation for six months to one year. He said he would retain those proven efficient and dedicated to their work.

Remollo disclosed that he is eyeing enough area in Clark for the construction of a “new Malacañang” as well as buildings to accommodate national government offices. He did not confirmed though if it was motivated by President Aquino, although there were other sectors, both private and public, who wanted to move the country’s government seat to Clark.

One of the top priorities of Remollo, he said, would be the development of Clark as a major tourism destination. “Tourism here could be developed to the maximum also by hosting sports activities as well as promoting medical tourism. We should have a really attractive theme park here,” he said.

Remollo is eyeing particularly the 300 hectares of land by the Philippine Air Force (PAF). The area include a resort with an Olympic-sized swimming pool, an “officers’ club” building with conference rooms, a hotel, and a football field. Said facilities have been noted to be underutilized and deteriorating under the management of the air force.

Possibly Related Topics to Read

DoE starts distribution of Pantawid Pasada cards

Roy — Wed, 04 May 2011 15:30:50 +0000

Major oil player Pilipinas Shell Petroleum Corporation is preparing 200 gasoline stations nationwide to serve as jeepney lanes for the fuel subsidy program of the government, with issuance of the fuel discount card’s under the “Pantawid Pasada” program already underway.

Pilipinas Shell vice president for communications Roberto S. Kanapi assured that the company will “continue to support the government in providing assistance to the transport sector.”

The fuel discount cards were distributed by the Department of Energy (DoE) to jeepney drivers and operators starting May 2, however, the cash loads of the fuel cards will be officially transmitted on May 6, Friday.

The DoE said that the initial P450-million subsidy allotted for the program may not be the only subsidy to be granted to the transport sector. Deliberations are ongoing for another P1.2-billion budget at the Inter-Agency Energy Contingency Committee.

The energy department hopes that, aside from being a fuel subsidy card, the cards may also be used for future purposes, including for the price discounts being offered by the oil companies. The agency also said that the cost of the production Pantawid Pasada cards, amounting to P11 million or P50 per card, were shouldered by the oil firms.

Pantawid Pasada cards issued to jeepney drivers and operators will have a load of P1,050, which may be spent one-time or applied as discount for fuel purchases. Initially distributed will be those in Metro Manila. The fuel cards of those in the provincial areas will follow immediately with the assistance of the regional networks of the Land Transportation Office (LTO).

After the jeepneys, fuel subsidy cards for tricycle drivers will be issued next, which will have a load P150. The DoE is still studying the process of distributing the Pantawid Pasada cards to tricycle drivers although it hopes to finish it within a month’s time.

Possibly Related Topics to Read

Aquino not keen on new taxes

Roy — Wed, 04 May 2011 12:25:21 +0000

President Benigno “Noynoy” Aquino III is not keen on new taxes just to increase the income of the government, instead he said that existing tax exemptions or incentives should be reviewed. Aquino said that rationalization plan for fiscal incentives is being discussed and stressed that the government would continue on its efforts to increase revenues by improving tax collections.

“At this present time, none of my economic managers are indicating that there is such a need (for new taxes). And again, the priority still is improving the tax collection efficiency,” the president said. He also mentioned of a pending bill aiming to lift certain tax exemptions to address the need for a better system of collection and noted that some of the incentives are “outdated, not realistic,” compared to the others being given by the government.

The president said he already ordered his economic managers to study and review the fiscal rationalization plant of the government as well as tax incentives already given to multi-national companies in order to improve tax collection.

The International Monetary Fund (IMF) urged the Philippine government to broaden its tax base and strengthen tax administration by overhauling its excise tax system on sin products and rationalizing its fiscal incentives to raise much needed revenue to bankroll social and infrastructure spending. The IMF said this is crucial to the Aquino administration’s commitment to trim the budget deficit to two percent of gross domestic product starting 2013 from the current level of 3.3 percent of GDP.

The IMF’s latest Public Information Notice dated March 1 reads: “Achieving the deficit targets and increasing social and infrastructure spending will require substantial revenue efforts, including broadening the tax base and strengthening tax administration.”

The executive board of the IMF recommended early actions to reform excise taxes, rationalize fiscal incentives and address gaps in the value added tax (VAT), complemented by reforms to strengthen the budgetary framework, and control of the civil service wage bill.

Possibly Related Topics to Read

Osama Bin Laden killed by US forces

Roy — Mon, 02 May 2011 05:41:27 +0000

The al-Qaeda founder and leader Osama Bin Laden was reported to have been killed US forces in Pakistan. US President Barack Obama reported that Bin Laden was killed in a mansion outside Islamabad following a joint operation of the US military and Pakistani forces. Obama said after the “firefight,” the US forces took possession of his body.

The death of Bin Laden came almost 10 years after the US government spearheaded the manhunt operation against him following the 9/11 attack, leaving nearly 3,000 Americans dead. The notorious al-Qaeda leader was accused of being behind the number of atrocities, including the attacks on New York and Washington on September 11, 2001.

Obama said that he earlier authorized a special operation to get Osama, “Today, I ordered an operation to get Osama and bring him to justice. After a firefight, a small team of special action force killed Osama and took custody of his body.”

The US president thanked the Pakistani government for its cooperation in the operations.

Obama said he was briefed in August last year of the possible location of Bin Laden, which was a compound outside the capital of Pakistan.

Crowds gathered outside the White House in Washington DC were cheering and waving flags. Some were singing the “Star Spangled Banner” and some were chanting “USA, USA” when Obama made the announcement.

Meanwhile, the US has put its embassies around the world on alert for a possible al-Qaeda reprisal attacks following the death of their leader.

Former president George W. Bush described the news as a “momentous achievement.” He said, “The fight against terror goes on, but tonight America has sent an unmistakable message: No matter how long it takes, justice will be done.”

While another former president, Bill Clinton said, “This is a profoundly important moment not just for the families of those who lost their lives on 9/11 and in al-Qaeda’s other attacks but for people all over the world who want to build a common future of peace, freedom and cooperation for our children.”

Possibly Related Topics to Read

President Aquino’s Labor Day announcements

Roy — Mon, 02 May 2011 00:28:44 +0000

A mix of wage and non-wage benefits for the country’s workforce was announced by President Benigno “Noynoy” Aquino III on Labor Day.

The president said over a million government workers can receive another salary increase in June, or a month earlier than schedule, due to the government’s prudent fiscal management. For the private sector, he gave instructions to the regional wage boards to hasten deliberations on proposed salary adjustments for workers in the private sector within this month.

Aquino also announced a P4.23-billion rice subsidy program and P2-billion in farms implements support for small farmers and fishermen, totaling over P6.23 billion.

He made the announcements during the breakfast dialogue with representatives of public and private labor groups and employers to mark Labor Day at the Palace. During the said breakfast meeting, the president offered a quarterly dialogues with labor groups and employers to find solutions to the concerns of the industry, as well as craft better labor policies.

Aquino stressed that his administration is working hard to address the concerns of the labor sector for higher pay and improved benefits, although he admits that these cannot be solved overnight.

As for the public employees he said, “Government workers will have a salary increase this June, and not July. We advanced the release by a month because I know this will be a big help especially as school enrolment approaches. We won’t postpone this if we can afford to give it today. That’s our promise from the start, and that will remain our policy,” he said in Filipino.

The salary increase for state workers is originally scheduled on July, it the third tranche under the Salary Standardization Law (SSL) 3. Aquino said the early release of the wage increase for government workers was made possible due to government savings.

For the employees in the private sector, Aquino said the wage board in the National Capital Region is expected to make a decision on proposed wage adjustment next week, while other regional wage are expected to issue their decision this month. “We cannot promise that within the month everybody would be finished but we will be pressing them to finish within the month,” he said.

Possibly Related Topics to Read

Transport firm to pioneer electric buses in the Philippines

Roy — Sun, 01 May 2011 14:57:44 +0000

Local transport firm Green Frog Zero Emission Transport Corp. dared to take the huge risk in the electric vehicle industry and expressed interest to buy some 3,000 electric buses in the next seven years, with the initial 38 units coming in from China within the year.

Green Frog director Philip Apostol said the 36-passenger buses will be fielded in Makati City with an P8 fare trip. The first 10 buses arriving midyear will ply the Buendia line while the 28 units will take other routes. The buses will initially ply a route that goes along Buendia from EDSA to the South Luzon Expressway (SLEX). Eventually, they will be available to commuters with the whole of Makati.

“The plan is to implement to project within 90 days after the signing of the MOA (memorandum of agreement) with the Makati LGU. This is a PPP (Public-Private-Partnership) with Makati,” he said. Apostol admits that cost of the e-buses was high, but hopes that the government “would work” with them.

He did not disclosed the cost of the electric buses but said that normally, the bigger electric buses would cost $300,000 (P13.5 million) each. Green Frog’s buses, however, will be smaller and would cost less.

The company is seeking tax perks, among other incentives, and a pioneer status from the Board of Investments, to make the project economically viable.

Negotiations by the company with banks and government financial institutions have been started, seeking for the best financing package. It also seeks some guarantees from the Philippine Export Import Credit Agency (PhilExim) to get lower interest rates.

Apostol said the half of the revenues will be coming from advertising income to help keep fares at reasonable levels during the initial roll-out.

Another Green Frog director, Servillano Batac, said talks were also ongoing between government and financial institutions for the mechanics of a “tap-and-go” system for the electric buses. “The idea is that you will be able to use your MRT (Metro Rail Transit) cards to pay our electric buses, just like in other countries,” he said.

Possibly Related Topics to Read

Philippine seeks investment-grade rating

Roy — Fri, 29 Apr 2011 04:51:12 +0000

The Philippine government believes that the country deserves a better credit rating, that is why it is wooing the three major credit rating agencies for an upgrade in its credit scores, amid the improving fiscal situation and external liquidity.

The three credit rating agencies – Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s (S&P), were met separately by finance secretary Cesar Purisima when he went to New York and Washington D.C. recently.

Purisima presented fiscal and monetary data on the Philippines that he believes would encourage them to review and increase the country’s credit scores. Philippines is rated three notches below investment grade by Moody’s and two notches below by Fitch and S&P.

He also said the country has a credit score lower than Indonesia yet the fiscal situations of the two countries are just the same. Purisima also cited the country’s declining debt-to GDP [gross domestic product] ratio and deficit-to-GDP ratio. “Our debt rations and deficit are declining and our financial sector is well managed, and so we deserve better ratings,” he said.

During the meeting with the credit rating firms, Purisima said the three did not give a hint if they would change the country’s credit ratings soon, but he express optimism that the Philippines would finally get an investment-grade credit rating before the end of Aquino’s term.

The finance chief said the country has been able to borrow from the international markets at interest rates comparable to those applied to financing initiatives by investment-grade rated countries. Still, he stressed that getting a credit rating upgrade would be important in getting more foreign investments for the Philippines. “Much more funds will come in to the Philippines if we get investment grade,” Purisima said. He noted that some big-ticket business ventures have been using credit ratings in their decision-making.

Possibly Related Topics to Read

San Miguel eyeing NAIA 3

Roy — Mon, 25 Apr 2011 14:41:08 +0000

San Miguel Corp. said it is interested in taking over the operations of the Ninoy Aquino International Airport Terminal (NAIA) 3. San Miguel said it will join in the bidding for NAIA 3 should the government open it for privatization.

In its disclosure to the Philippine Stock Exchange, the company stated, “The company may participate in the privatization of the NAIA 3 in the event the government conducts a public bidding for the said infrastructure-related project.” It added, “As we have previously disclosed to the exchange, the company intends to actively pursue the Public-Private Partnership (PPP) programs initiated by the government.”

The conglomerate has already sent earlier an offer to privatize the NAIA 3, through unit Philco Aero Inc., its joint venture with Korean partners. San Miguel directed its privatization plan to President Aquino and the Manila International Airport Authority (MIAA).

The company now effectively adds NAIA to the list of airport investment it wants. San Miguel has a stake in the developer of Caticlan airport off the famous Boracay Island and has a pending offer to operate the Terminal 2 of the Diosdado Macapagal International Airport in Clark, Pampanga.

San Miguel has been effectively diversifying away from its core food and beverage business, and into heavy and high-growth sectors including telecommunications, oil refinery, power and infrastructure. The company last week sold $900 million worth of equity and convertible bonds to help fund infrastructure investments.

Meanwhile, NAIA 3 was expected to open in 2002 but was mothballed for 6 years due to a legal dispute with the Philippine International Airport Terminal Co. (Piatco), the consortium that built the terminal. The Supreme Court, however, cancelled Piatco’s contract in 2003, resulting in arbitration proceedings filed by Piatco and German shareholder Fraport AG, in Singapore and the US.

The International Center for Settlement of Investment Disputes ruling dismissed Fraport’s arbitration bid in 2007. But the said decision was reversed last year which prompted Fraport to revive its $425-million compensation claim against the Philippine government.

Possibly Related Topics to Read

Landslide hits small-scale mining community at Compostela Valley

Roy — Fri, 22 Apr 2011 11:04:45 +0000

A landslide hit a small-scale mining community in the municipality of Pantukan, Compostela Valley on Friday. Reportedly, there were two persons killed, six were injured and 40 others believed to be missing.

According to Liza Mazo, Office of Civil Defense-Region 11 director, the landslide was caused by heavy overnight rains. “It’s been raining hard since last night here, causing a high-risk landslide area to give in, burying houses below,” she said. The landslide happened at around 2:30 a.m. at Purok Side B, Sitio Panganason, Barangay Kingking.

One of those who died was identified as Jan-jan Torejos who was said to be around 15 to 16 years old. The other fatality has not been identified yet at the moment. One body was still in the landslide-hit area as of 3 p.m. Friday, while the other body has already been transferred to the municipal center in Pantukan.

Col. Roberto Domines, commander of the 1001st Brigade, 10th Infantry Division, said there is really no confirmed number of missing person since most of the small-scale miners are transients. Not even the municipal government of Pantukan knows the exact number of people who live in the affected area. However, he said there are about “40 to 50 persons reported to be missing.”

At present, search and rescue operations are ongoing for the missing persons. The Philippine Air Force has been sent three helicopters to transport survivors, rescuers and light equipment. Domines said there were 3 platoons of regular soldiers plus a Citizen Armed Forces Geographical Unit (CAFGU) posted in the affected area as well.

Those who were seriously injured were brought to the Davao Regional Hospital and the Pantukan hospital. The victims of the landslide are mostly miners working in the area.

Dominos said people from the community, the municipal government of Pantukan, the provincial government of Compostela, as well as mining companies which used to operate in the area are also assisting in the effort. He said he welcomes all offers to help, adding that they need more heavy equipment to dig through the rubble.

Possibly Related Topics to Read

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.

Possibly Related Topics to Read

Ayala Corp. allots P79 billion for its capex

Roy — Tue, 19 Apr 2011 04:51:18 +0000

Giant conglomerate Ayala Corp. allots a record-high P79 billion for its capital expenditures this year. The company said it is in an excellent position to delve into various investment opportunities. It is particularly eyeing the power and infrastructure sector.

During the annual stockholders’ meeting, chairman Jaime Augusto Zobel de Ayala said that while the company is quite successful in its traditional markets which continue to grow, the favorable economic environment has “also ushered a renewed interest to invest in sectors that are critical to sustaining and raising the country’s growth trajectory, particularly with the government’s emphasis on increased private sector participation in the infrastructure and power sectors.”

He added that the group’s ultimate goal is to broaden its customer to reach and diversify its portfolio in a manner that creates developmental impact and economic value both for the corporation and the society as a whole.

The company first took a plunge in the power industry in 2010. It is now aiming to build its power portfolio using both renewable energy sources and traditional fossil fuels. “We are in the process of developing focused platforms across various technologies such as solar, wind, both large-scale and mini hydro, as well as thermal energy with the intent of balancing cost of energy delivery with sustainable practices,” Zobel said. The group aims to put up power facilities that can generate over 1,000 megawatts of electricity over the next five years.

The conglomerate remains on the lookout for opportunities apart from the power industry, like in the transportation infrastructure space, particularly whose which may have strategic value with other business units.

The company is bidding for a contract to operate and maintain the 17-kilometer Line 3 of the Metro Rail Transit (MRT3), which has an estimated cost of P6.3 billion. The MRT3 is one of the infrastructure projects being offered by the government under the public-private partnership (PPP) program.

Meanwhile, president Fernando Zobel de Ayala, for his part, said the highly diversified conglomerate has a healthy cash level, which stood at P29 billion as of end-December last year. “We maintain a highly flexible funding position that allows us to make sizable investments in new sectors moving forward without impairing value-enhancing initiatives such as our ongoing buy-back program, dividend payouts and meeting our funding requirements.”

Possibly Related Topics to Read

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.

Possibly Related Topics to Read

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.

Possibly Related Topics to Read

Philvocs wants people out of the Taal Volcano area

Roy — Wed, 13 Apr 2011 04:49:50 +0000

The Philippine Institute of Volcanology and Seismology (Philvocs) urged the local government of Batangas City to start drawing up long-term relocation plans for residents near Taal Volcano and issued a warning that the entire volcano island could be “obliterated” in case an eruption occurs.

Philvocs director Renato Solidum said during a meeting with the Disaster Risk Reduction Management Council of Batangas that “Sometimes nature will prevail, the people have to leave so why not invest now in the long term to avoid endangering people’s lives?” Solidum said the volcano’s present activity has been observed to be similar to previous eruptions in 1965 to 1970 and 1976 to 1977 wherein the entire volcano island was “totally obliterated.”

Solidum said Batangas officials must make its people understand how dangerous it is to live on the island because of what happened in the past. He said their livelihood and the education of their children are disrupted because they have to evacuate every time the Volcano becomes restive and then return to their homes again when alert levels are lifted. Taal Volcano can continue to be a tourism area, said Solidum. He added however that since it is a national park, “there should be no people there.”

While Batangas Governor Vilma Santos-Recto agrees on a long-term relocation program, she said many things would have to be considered before this becomes 100 percent successful. “It won’t be that easy. Even at alert level 2, the people refuse to evacuate,” she said.

Alert level 2 has been issued by Philvocs over Taal after recording 11 volcanic earthquakes on Tuesday morning. A Philvocs bulleting said magma has been moving toward the surface as shown by a remarkable increase in carbon dioxide being released in the main crater lake. Solidum said that if the magma continues moving toward the surface, the volcano could erupt.

Possibly Related Topics to Read

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.

Possibly Related Topics to Read

Oil prices increased anew

Roy — Tue, 12 Apr 2011 18:06:53 +0000

Local oil companies raised their prices anew, even before the fuel subsidy for public utility jeepneys (PUJs) and tricycles could even be implemented. The prices for gasoline and diesel were increased by P1.50 to P1.75 a liter and kerosene by P1.40 a liter.

The first to implement the latest price increase were Pilipinas Shell Petroleum Corp., Chevron (formerly Caltex), and Total Philippines. The three companies said the new prices reflected by increase in the global prices of petroleum products last week as compared to the previous week’s level.

A total of 12 price increases have been effected by oil companies since the beginning of the year, adding up to a total increase of P9 a liter for gasoline and P9.20 a liter for diesel, whereas total reductions were marginal at P1.75 a liter for gasoline and only P0.25 for diesel.

In reaction to the latest price increase in fuel, multi-sectoral group Bagong Alyansang Makabayan said it wiped out the government’s planned fuel assistance program even before it could be implemented. Even challenging President Benigno “Noynoy” Aquino III to fire his economic managers for giving him “wrong advice.”

With the P1.50 per liter increase in the price of diesel, Bayan said the daily fuel cost of jeepney drivers has gone up again by P45, compared to the Pantawid Pasada program by the government which will provide a subsidy of only P35 per day and will not even be available until next month.

Bayan secretary general Renato Reyes said, “It’s almost a year now since Aquino became president. But in terms of economic policies, we have not seen a substantial change from the anti-people and dole-out programs of the Arroyo administration. Case in point is issue of escalating oil prices and the response of Aquino, as advised by his economic managers, is to implement a Pantawid Pasada, instead of addressing the more important issues of the price deregulations, value added tax and profiteering of the oil firms.”

Possibly Related Topics to Read

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.