Local gov’t units urged to protect 415 caves

Local government units and concerned agencies are required to protect 415 caves which have been recently classified to preserve and ensure their sustainable use, the Department of Environment and Natural Resources (DENR) said.

“As with other natural resources, caves are natural treasures that we need to protect for the future generations, because they are important wildlife habitats and possess significant geological, cultural, historical and archaeological values,” Environment Secretary Ramon Paje said.

DENR Memorandum Circular 2015-08 has classified an additional 51 caves to guide communities on their responsible management.

It is pursuant to Republic Act 9072, also known as the National Caves and Cave Resources Management and Protection Act, that tasks the DENR to formulate, develop and implement a cave management program to conserve and protect the country’s cave resources.

“This circular will guide the DENR, particularly the Biodiversity Management Bureau (BMB), and other concerned agencies and offices, including local government units on how to use our caves and cave resources appropriately,” Paje added.

Earlier, 354 caves had already been classified by the agency according to their characteristics.

Of the 51 newly classified caves, six are in the Ilocos region (Region I); nine in CALABARZON Region (Region 4A); 19 in the Davao region (Region 11); three in South Central Mindanao (Region 12); 14 in the Caraga Region (Region 13).

Seven were categorized as Class I for their delicate and fragile geological formations and threatened species. These include the Nical Cave in Dasol, Pangasinan; the Sung Wan and Kaping Caves in Tayabas City, Quezon; and the Burial Cave in Caraga, Davao Oriental.
Class I caves are limited to mapping, photography, educational and scientific purposes, and are closed for ecotourism activities.

The memo circular also categorized 36 Class II caves. These have sections with hazardous
conditions and high quality ecosystems that are highly sensitive to human activities, making it necessary to close these sections either seasonally or permanently except for experienced cavers and guided tours or visits.

Class II caves, meanwhile; include the Capilan Bat Cave in Sultan Kudara, Licup Cave in Samal Island, Davao, and Guano Cave in Bangui, Ilocos Norte.

Class III caves has no known threatened species within them or significant archaeological, geological, natural history, cultural and historical values. Such caves are open to inexperienced yet guided visitors. They may also open to guano extractors and birds’ nest collectors, if any.

Eight caves were categorized as Class III, which include Balite Cave in Samal Island, and six Punta Diwata Caves in Carmen City, Agusan del Norte.

With the classification, BMB personnel in the respective DENR field offices will coordinate with the Protected Area Management Board, concerned local government unit or land owner in the preparation and implementation of a management plan on related activities within the caves.

source:  Manila Times

SC reverses ombudsman suspension of Junjun

Dismissed Makati Mayor Jejomar Erwin “Junjun” Binay Jr. has won his case in the Supreme Court (SC) against the Office of the Ombudsman in relation to his earlier preventive suspension over alleged anomaly in the Makati City Hall Building 2 project.

In its decision against the suspension order on Binay, the Supreme Court (SC) allowed the application of the condonation doctrine or Aguinaldo doctrine.

The doctrine has been a common defense invoked by elected officials in evading liabilities for acts committed in their previous terms in office.

It effectively extinguishes a reelected official’s administrative liability from alleged wrongdoing during a previous term.

The SC conceived of the doctrine in an October 1959 decision.

A court insider bared that the justices decided in session to abandon the doctrine, but only for future cases.

Binay could use the latest SC ruling in questioning the Ombudsman’s subsequent dismissal order against him, the source stressed.

The SC insider further revealed that the high court also upheld the power of the Court of Appeals (CA) to review and stop administrative orders of the Office of the Ombudsman on cases against officials.

The abandonment of the doctrine would be prospective in application, as agreed upon by the majority of justices during the voting, the source said.

This means the doctrine will apply in Binay’s case but he will be the last to benefit from it.

The SC rejected the position of Ombudsman Conchita Carpio-Morales that the condonation doctrine cannot apply in Binay’s case.

Binay invoked the doctrine in questioning the preventive suspension order issued by the Ombudsman.

Last month, the Ombudsman ordered the dismissal from service of Mayor Binay over the controversy.

Binay had argued that the alleged anomalies were committed during the first and second phases of the project when he was not yet mayor of the city.

The third and fourth phases, on the other hand, were then undertaken during his previous term from 2010 to 2013.

The SC, the source said, has also rejected the position of Morales that only the high court can review and stop her orders on administrative cases based on Section 14 of Republic Act No. 6770 (Ombudsman Act).

Such provision in the Ombudsman law was declared ineffective as Congress did not consult the SC in approving it, according to the ruling penned by Associate Justice Estela Perlas-Bernabe.

No other details were available as the high court has not yet released a copy of the ruling as of press time.

The SC issued the ruling in response to a petition filed by the ombudsman questioning the orders of the CA stopping the ombudsman’s first preventive suspension order against Mayor Binay.

In her petition last March, Morales assailed the temporary restraining order (TRO) and writ of preliminary injunction (WPI) issued by the CA stopping her suspension order against Binay.

The SC heard the case in oral arguments during summer session in Baguio City last April before four justices – Presbitero Velasco Jr., Diosdado Peralta, Arturo Brion and Francis Jardeleza – decided to inhibit from the case. 

Meanwhile, the Makati City police said the large presence of policemen around the Makati City Hall is part of APEC preparations and not a reaction to the SC decision on Binay case.

“They (police officers) are being billeted at the school. It has nothing to do with the Supreme Court decision,” Sr. Supt. Ernesto Barlam, chief of the Makati City Police, said, referring to the General Pio Del Pilar National High School. The school is located near the city hall building on F. Zobel street. The Makati City Hall building is not very far from the hotels where some of the APEC delegates would be staying during the summit.

Binay spokesman Joey Salgado said they were not convinced of the city police chief’s explanation.

“That is their version of things.  But the timing is suspicious. APEC is still quite far away,” Salgado toldThe STAR.

He said the mayor will issue a statement only after getting his copy of the SC decision. – With Mike Frialde

source:  Philippine Star

Parañaque sees revenues reaching P300 B in 5 yrs from Entertainment City

MANILA, Philippines – The Paranaque City government expects revenues to reach P300 billion over a five year period when all integrated resorts have been completed in Pagcor Entertainment City.

Among these new businesses expected for completion within five years include Megaworld Corp.’s 31-hectare mixed-use township Westside City within the Philippines’ version of the Las Vegas gaming strip.

In a statement, Paranaque City Mayor Edwin Olivarez welcomed the development of several international brand hotels under Andrew Tan’s Travellers International Hotel Group Inc. which would create thousands of jobs and encourage economic activities.

The local government’s Special Services Office chief Mario Jimenez said there was a substantial increase in the number of new business registrations last year, reaching 2,325, while renewal was at 17,122 for a total of 19,447 business establishments operating in the city.

Westside City is scheduled for completion by the last quarter of 2020 and will be the home of the second Resorts World property in the Philippines after the first Resorts World in Newport City in Pasay.

Aside from Megaworld, Ayala Land Inc. will also undertake projects in Entertainment City.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

Next year alone, Olivarez expects thousands of local job seekers to be employed when the $2-billion Manila Bay Resorts of Tiger Resort Leisure and Entertainment project in Entertainment City opens in December 2016. 

Casino mogul Kazuo Okada’s Tiger Resort is committed to deliver the biggest integrated resort casino property in the country and is expected to employ over 8,000 people once fully operational next year.

Tiger Resort is envisioned to be a world-class Las Vegas style development with luxurious hotels, classy restaurants, commercial facilities, residences and state of the art pool with real sand beach covered by a glass dome.

The first to open at the Entertainment City was Solaire Resorts and Casino followed by City of Dreams Manila.

Parañaque was adjudged the country’s most competitive city in terms of economic dynamism by the National Competitiveness Council last year.

source:  Philippine Star

Local governments now allowed to privatize water, sanitation systems

LOCAL governments can now pursue public-private partnerships (PPPs) for water and sanitation projects.

The PPP Center and the World Bank recently launched the PPP knowledge toolkits for local governments, which provide standardized set of guidelines used to structure PPP projects and in going through the PPP procurement process for water and sanitation projects.

“The water and sanitation sector is a major local development area where PPPs can prove to be viable. We gratefully acknowledge the support of the World Bank’s Water and Sanitation Program, as well as the cooperation of the sector’s key institutions.

This will surely facilitate the necessary build up of PPP capacities within WDs [water districts] and local governments,” PPP Center Deputy Executive Director Eleazar E. Ricote said.

The toolkits are part of the PPP Center and World Bank-Water and Sanitation Program (WB-WSP).

The PPP toolkits presented include a guide to business case analysis; model terms of reference for water source assessment, feasibility studies and transaction advisory services; and prequalification requirements and instruction to bidders.

The toolkits also include contract management checklist; generic preferred risk-allocation matrix (GPRAM) for a water-supply project; and template bulk water agreement.

“This is consistent with the center’s holistic PPP Program approach covering project development and structuring along with PPP capacity building, as well as policy and process enhancements,” Ricote said.

The development of the toolkits and its launching are aligned with the memorandum of understanding jointly initiated by the PPP Center and WB-WSP in September, enjoining the Local Water Utilities Authority, National Water Resource Board, Philippine Association of Water Districts, and Department of the Interior and Local Government, to harmonize and reconcile their respective interventions to local governments and WDs in the pursuit of PPPs.

Currently, the PPP Center provides technical assistance to the local government of Baggao, Cagayan, in the competitive PPP bidding of its P84-million water-supply project.

At the national level, the PPP pipeline includes the P24.4-billion Bulacan Bulk Water Supply Project and the P18.72-billion New Centennial Water Source-Kaliwa Dam Project, that are both under procurement stage.

source:  Business Mirror

Ombudsman orders dismissal of 3 Mindanao mayors

Among those ordered dismissed is re-electionist Cagayan de Oro Mayor Oscar Moreno

CHARGES VS LOCAL EXECS. Ombudsman Conchita Carpio-Morales has ordered the dismissal from service of local officials in Mindanao for various offenses. File photo by Raffy Taboy

DAVAO CITY, Philippines – The Office of the Ombudsman announced on Thursday, November 5, that it has ordered the dismissal from service of 3 mayors and 27 other local officials from all over Mindanao for various offenses in the performance of their functions.

The Ombudsman anounced the dismissal from service of Cagayan de Oro Mayor Oscar Moreno; Mayor Vicente Fernandez of Matanao, Davao del Sur; and Mayor Ali Untao Adiong of Ditsa-an Ramain, Lanao del Sur.

They are also perpetually barred from holding public office.

Moreno, who is seeking re-election in 2016, was found liable for grave misconduct for entering into a settlement agreement with Ajinomoto Philippines without prior authorization from theSangguniang Panlungsod (Provincial Council). This is in violation of Republic Act 7160 or the Local Government Code, the Ombudsman said.

The agreement allowed Ajinomoto to pay just P300,000 ($6,397), instead of its original local business tax deficiency of P2.9 million ($61,840), the Ombudsman said. Glenn Bañez, officer-in-charge of the Treasurer’s Office, was also dismissed.

Fernandez, who is facing criminal charges for the murder of a journalist, was found to have been discharging functions while in detention, including issuing office orders, business permits and appointments, and signing official documents.

He was ordered dismissed from the service for grave misconduct, and also criminally indicted for usurpation of official functions under the Revised Penal Code.

Adiong was found guilty of grave abuse of authority, grave misconduct, and oppression for allegedly ordering the burning of a truck owned by a private company JERA General Construction.

Criminal charges vs Mindanao execs

The Ombudsman also said that 3 other mayors, 4 vice mayors, and 30 other local officials in Mindanao had been criminally indicted last month for various charges including malversation, failure to liquidate cash advances, and irregularities in the procurement process.

The Ombudsman said that former CDO mayor Vicente Emano, Tandag City Mayor Alexander Pimentel, and Mayor Diosdado Pallasigue of Isulan, Sultan Kudarat, have been criminally indicted.

It found probable cause to indict Emano for his willful refusal to implement a final and executory decision of the Civil Service Commission to Leonor Esparcia to her original position as administrative aide III at the JR Borja General Hospital.

Pimentel was charged with violation of Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. His case stemmed from his his refusal to pay Provincial Council member Mario Cuartero a total of P485,369.24 ($10,349) in salaries and allowances from July 2010 to June 2011.

Pallasigue faces charges for refusing to implement a return to work order issued by the CSC in favor of Municipal Planning and Development Coordinator Elias Segura, Jr, in March 2014 .

"He was found to have acted with manifest partiality and evident bad faith in refusing to implement lawful orders from competent authorities without justifiable cause," the Office of the Ombudsman said. – with a report from Editha Caduaya/Rappler.com

Aquino signs amendments to strengthen PESO among LGUs

PRESIDENT Benigno S. C. Aquino III yesterday signed into law the amendments to the Public Employment Service Office (PESO) Act which aims to boost the capability of Local Government Units (LGUs) in addressing unemployment.

Republic Act (RA) No. 10691, signed during the 15th PESO Congress in Pasay City on Monday, amends RA 8759 and mandates the PESO’s establishment in all provinces, cities and municipalities. These PESO units shall be operated and maintained by LGUs.

The LGUs are assigned to establish a monitoring system wherein establishments operating in the locality shall report relevant labor market information to the concerned office of the LGU such as the present number and nature of available jobs and the projection of jobs as provided or offered by these establishments in the next five years.

These information will then be submitted to the PESO for job matching and to educational institutions as career guidance for students.

The new law requires the PESO to prepare and submit to the local boards or sanggunian an annual employment plan and budget including other regular funding sources and budgetary support for the PESO.

For its part, the Department of Labor and Employment (DoLE) is responsible for the establishment and maintenance of a computerized human resource and job registries to facilitate the provision and packaging of employment assistance to PESO clients, and the setting up of intra- and inter-regional job clearance systems as part of the overall employment network.

The funding for operation and maintenance of the PESO shall be provided by the LGU from its internal revenue allotment and other internally generated income.

Under RA 8759, the amount necessary for the full implementation of the measure was included in the Labor department’s budget.

In his speech at the event, Mr. Aquino said he expects the amendments to strengthen the 1,925 PESOs in the country.

Mr. Aquino cited data by the DoLE showing that out of 8.09 million job applicants who themselves of PESO’s assistance, 5.66 million were able to find work from July 2010 to June 2015. -- K. M. P. Tubadeza

source:  Businessworld

Bacoor leads way for public e-transport

BACOOR City in Cavite has taken the lead in adapting to cleaner, environment-friendly transport as it has approved an ordinance providing incentives for the wider use of electric tricycles (e-trikes), which allows the grant of free franchises to tricycle operators.

The wider adoption of e-transport was done through an ordinance that allowed Bacoor City to grant no franchise fees to operators if their tricycles are either electric or driven by any alternative fuel source. Registration will also be made easier and faster to make it more convenient for operators to shift to e-trikes.

This is according to the Electric Vehicle Association of the Philippines (Evap), whose member e-trike manufacturer KEA Industrial is working with the Bacoor City government. Through the partnership, the city has launched a fleet of e-trikes complete with offsite public-charging stations, making it the very first local government unit (LGU) in the country to do so.

Evap President Rommel Juan hopes that more LGUs will follow the pioneering program of Bacoor and be as progressive as the city.

“LGUs nationwide can replicate this operating system in Bacoor City to make their communities greener and, at the same time, modernize their tricycle-transport infrastructure, as well,” Juan said in a statement.

source:  Business Mirror

Ombudsman orders dismissal of Junjun Binay

Ombudsman Conchita Carpio-Morales has ordered the dismissal of suspended Makati Mayor Jejomar Erwin "Junjun" Binay Jr over the alleged overpricing of the Makati City Hall Parking Building II.

In ordering Binay's dismissal from service and perpetual disqualification from public office on Friday, October 9, Morales said in a statement that the "strong evidence" presented during administrative adjudication "remained unrebutted."

She said that there were irregularities in the design and architecture in several phases of the said city infrastructure project worth P2.28 billion, undertaken from 2007 to 2013.

The Ombudsman's decision recommends that Binay, who is expected to file his certificate of candidacy for Makati mayor next week, be barred from holding public office.

The Ombudsman also ordered the dismissal of 19 other Makati officials:

• Marjorie de Veyra
• Pio Kenneth Dasal
• Lorenza Amores
• Virginia Hernandez
• Line dela Peña
• Mario Badillo
• Leonila Querijero
• Raydes Pestaño
• Nelia Barlis
• Cecilio Lim III
• Arnel Cadangan
• Emerito Magat
• Connie Consulta
• Ulysses Orienza
• Giovanni Condes
• Manolito Uyaco
• Gerardo San Gabriel
• Eleno Mendoza Jr
• Rodel Nayve

Morales said that while Binay may file an appeal, the decision is "immediately executory."

Binay is also currently serving a 6-month preventive suspension order from the Ombudsman for the alleged overpricing of the Makati Science High School building.

'Binay intentionally closed his eyes to irregularities'

In a 103-page joint decision on 6 docketed complaints, the Ombudsman said that "flagrant anomalies" were found to have been committed by Binay and the other city officials in the design and construction of the Makati city hall parking building II's 6 phases. (WATCH: Red flags in 'overpriced' Makati infra projects)

It said that the services of Mana Architecture and Interior Design Company (MANA) were engaged without the benefit of public bidding in phase 1.

"The documents established badges of fraud committed by Binay, Jr. et.al. in manipulating the procurement to ensure the award of the contract to MANA; processing and approving a series of four (4) payments totaling to P11.97 million despite the incomplete submission of deliverables such as design plans, working drawings, and technical specifications," it said.

The Ombudsman said procurement violations were committed and there were no invitations to bid, contrary to Republic Act No 9184, or the Government Procurement Reform Act.

"A certified true copy of the publication obtained from the National Library showed that no advertisement for the invitations to bid was made as attested to by the publisher," it said.

The Ombudsman said there was "undue haste" in awarding the contract – the Makati Bids and Awards Committee (BAC) supposedly took just 11 days to complete the procurement process for the big infrastructure project.

It cited the Commission on Audit Fraud Audit Office’s Initial Evaluation Report which said that “the negotiated procurement adopted by the BAC was improper.”

The construction projects were ultimately awarded to Hilmarc’s Construction Corporation despite the lack of the required publication of the invitations to bid. It was also the lone bidder in 4 out of the 6 phases.

Moreover, the Ombudsman said that the construction project began "even in the absence of approved design standards, contract plans, agency cost estimates, detailed engineering and programs of work."

The joint decision also explained that there was supposed collusion among city officials and Hilmarc’s to manipulate the outcome of the 5 “public biddings” to ensure that Hilmarc’s would be the winning bidder.

Morales said Binay had the obligation to ensure that the contracts he was entering into were "fair, reasonable and advantageous to the government." Documents indicate that Binay approved the BAC resolutions, notices of awards, contracts and payments.

"By so acting, Binay intentionally closed his eyes to the irregularities by failing to observe utmost diligence," the Ombudsman added.

'Dismissal by press release, suspicious timing'

The Binay camp slammed the Ombudsman's decision as "dismissal by press release."

"Bistado na ang Ombudsman. Minadali nito ang order dahil sa Lunes ay magsisimula na ang filing ng CoCs (certificates of candidacy) para sa 2016 election. Ni wala pang kopya ng order na natanggap si Mayor. Dismissal by press release ang ginawa ng Ombudsman," vice presidential spokesperson Joey Salgado said in a statement.

(The Ombudsman has been exposed. It rushed this order because the filing of CoCs for the 2016 elections starts on Monday. The mayor has not even received a copy of the order. What the Ombudsman did was a dismissal by press release.)

Salgado said that Binay will face the legal challenge and will elevate it to court "to stop the administration's abuses and underhanded moves" against him.

In an interview on ANC, Binay's lawyer, Claro Certeza, also questioned what he called the "suspicious" timing of the Ombudsman's decision, as it comes just days from the start of the filing of COCs.

"We have to look at the bigger picture here. Look at the timing when the resolution is issued. It's about the time when parties are supposed to be filing their COC, then they issue such a resolution," Certeza said.

"You will agree with me that something like this will negatively impact both the Vice President and Mayor Junjun insofar as their aspirations to be elected are concerned," he added.

Vice President Jejomar Binay, who is also hounded by corruption allegations when he was Makati mayor, is seeking the presidency.

Certeza said that they were surprised by the Ombudsman's resolution. "We have already presented all evidences that we have to the Ombudsman, that's why we are surprised about this finding that they made."

The next step, he said, is to get a copy of the resolution, and once he has studied it, he will file an appeal with the Court of Appeals. The lawyer said, however, that "the problem here is that this decision is immediately executory."

"So I guess this is really their strategy, to see to it that at least with respect to the certification of candidacy, Mayor Binay will be really hard-pressed for time to seek any legal relief. The timing is very suspicious," he said.

Malacañang said in a statement that it respects the decision of the Office of the Ombudsman, "being an independent office from the Executive," and expects all other parties to do the same.

"In undertaking its constitutionally-mandated role, it is incumbent on all parties to abide by the decision and to avail of the legal remedies provided under law," said Deputy Presidential Spokesperson Abigail Valte. – Rappler.com

Oh I See (OIC) or why the Mindanao peace process continues to move at a snail’s pace

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Tax rule tweaks sought to boost LGUs’ revenues, capabilities

SENATOR Francis “Chiz” Escudero urged Malacan˜ang to lend its support to a proposed amendment to the situs rule on local business taxes in a bid to raise revenues for local government units (LGUs) and enhance financial capability to execute programs in their respective areas.

“We have a pending bill which seeks to amend the situs of taxation provision in the Local Government Code. Essentially, we want businesses to pay their local taxes in municipalities where the businesses operate, instead of where their main offices are located. LGUs, in effect, should have a bigger share in the revenue from these firms,” Mr. Escudero said in a convention organized by the League of Municipalities of the Philippines (LMP) Visayas Cluster in Iloilo last week.

Mr. Escudero was referring to Section 150 of the Local Government Code or Republic Act No. 7160 which states that “all sales made in a locality where there is a branch or sales office or warehouse should be recorded in said branch or sales office or warehouse and the local business tax due should be paid to the city or municipality where the same is located.”

In 2013, under the 16^th Congress, the senator refiled the proposal, or Senate Bill No. 120. He originally filed the bill in 2010 as SB No. 105.

“A hundred percent share of all sales or transactions to Local Government Units is proposed so long as such sales or transactions occur in the LGU concerned. This practically expunges the present thirty percent share of the LGU where the principal place of business is located,” Mr. Escudero said in the bill’s explanatory note.

Mr. Escudero’s bill also proposes the following sales allocation for manufacturers, assemblers, contractors, producers and exporters with factories, project offices, plants and plantations: 30% of all sales recorded in the principal office shall be taxable by the city or municipality where the principal office is located and 70% percent of all sales shall be taxable by the city or municipality where the factory, project office, plant or plantation is located.

According to Mr. Escudero, most business owners prefer to pay their taxes where their businesses are located to “foster a relationship with the LGU where they operate.” --Elizabeth E. Escaño

source:  Businessworld

Tuguegarao mayor, official dismissed for grave misconduct

Tuguegarao Mayor Jefferson Soriano and City Administrator Ronald Brillantes issued a special permit without the approval of the city council

MANILA, Philippines – The Ombudsman has ordered the dismissal of a city mayor and an official of Tuguegarao in Cagayan, for grave misconduct for issuing a special permit to a businesswoman and closing some streets for a city fiesta without prior approval of the city council.

Tuguegarao Mayor Jefferson Soriano, a member of the of the Nationalist People's Coalition (NPC), and City Administrator Ronald Brillantes were found guilty of grave misconduct, and were criminally charged with two counts of violating Section 3(e) of the Anti-Graft and Corrupt Practices Act.

In a press statement on Tuesday, September 9, the Office of the Ombudsman said that on July 11, 2013, Soriano gave a special permit to Vicky Medina to operate a baratilyo (bargain stalls in streets) for the city's fiesta celebrations from August to September 2013.

Soriano also ordered the closure of parts of Gomez, Del Rosario, and Gonzaga streets for the purpose.

However, Soriano sent to the city council a letter-request for authority to conduct the baratilyo and to close the streets only a week later, on July 18. Ombudsman Conchita Carpio-Morales said that this action "deliberately pre-empted, if not circumvented, the will of the local legislative body."

The respondents also "granted a privilege to a private party without the benefit of negotiations, and without taking into account the safety, operation, and financial conditions that theSangguniang Panlungsod (city council) was able to lay down through a City Resolution [issued] only on July 31, 2013."

"The mere fostering of an uneven playing field in the conferment of a public privilege is, in itself, injurious to public interest," stressed Carpio-Morales.

As for the closure of city roads, Carpio-Morales said that Soriano "has no plenary authority to unilaterally cause the closure of local roads." The act, even on a temporary basis, "must bear legislative, and not simply executive fiat," she added.

In addition to their dismissal and the criminal charges against them, Soriano and Brillantes face the accessory penalties of cancellation of civil service eligibility, forfeiture of retirement benefits, and perpetual disqualification from holding public office, the Ombudsman said. – Rappler.com

LGUs have no power to impose tax on petroleum merchants–SC

THE Supreme Court (SC) declared on Wednesday that local government units (LGUs) have no power to impose business taxes on persons and entities engaged in the manufacturing and distribution of petroleum products.

In a 14-page decision penned by Associate Justice Diosdado Peralta, the Court’s Third Division junked the petition filed by the Batangas City government seeking to collect the amount of P405 million as business taxes from Pilipinas Shell Petroleum, which operates an oil refinery and depot in Tabagao, Batangas City.

The Court upheld the January 22, 2009, and April 13, 2009, resolutions of the Court of Tax Appeals (CTA), which reversed and set aside the ruling issued by the Regional Trial Court (RTC) of Batangas City on October 29, 2004, that sustained the imposition of business taxes against Pilipinas Shell.

In seeking the reversal of the CTA decision, the Batangas City government argued that any activity that involves the production or manufacture and the distribution or selling of any kind or nature as a means of livelihood or with a view to profit can be taxed by LGUs.

The petitioner stressed that such authority emanates from Section 143 (h) of the Local Government Code (LGC), which states that   “The municipality may impose taxes on  any business…which the sanggunian concerned may deem proper to tax; provided that on any business subject to the excise, value-added or percentage tax under the National Internal Revenue Code (NIRC), as amended, the rate of tax shall not exceed 2 percent  of gross sales or receipts of the preceding calendar year.”

Furthermore, the petitioner said the CTA erred in ruling that the word “taxes” in Section 133 (h) of the LGC does not include business taxes.

In denying the petition of the Batangas City government, the Court pointed out that  although the power to tax is inherent in the State, the same cannot be said for LGUs.

It explained that LGUs’ mandate to impose taxes is not encompassing as it is subject to limitations as stated in Section 5, Article X of the 1987 Constitution.

The said constitutional provision states:  “Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees, and charges subject to such guidelines and limitations as Congress may provide, consistent with the basic policy of local autonomy.”

The SC added that under Section 133 (h) of the LGC, LGUs cannot impose excise taxes on articles enumerated under the NIRC and taxes, fees or charges on petroleum products.

The Court further explained that, while the LGU’s power to impose business taxes is derived from Section 143 of the LGC, the same is subject to the restrictions provided for under Section 133 (h).

“Thus, the omnibus grant of power to LGUs under Section 143 [h] of the LGC cannot overcome the specific exception or exemption in Section 133 [h] of the same Code,” the SC stressed.

“When there is in the same statute a particular enactment and also a general one, which in its most comprehensive sense would include what is embraced in the former, the particular enactment must be operative, and the general enactment must be taken to affect only such cases within its general language as are not within the provisions of the particular enactment,” the decision read.

Concurring with the ruling were Associate Justices Teresita Leonardo-de Castro, Martin Villarama, Jose Portugal Perez and Estela Perlas-Bernabe.

The case stemmed from the notice of assessment issued on February 20, 2001, by Batangas City through its City Legal Officer Teodulfo Deguito and City Treasurer Teresa Geron demanding  payment of P92.37 million and P312.65 million as business taxes for its manufacture and distribution of petroleum products.

In 2002 the respondent was only paying the amount of P98,964.71 for fees and other charges which include the amount of P1,180.34 as mayor’s permit.

Pilipinas Shell, however, filed a protest on April 17, 2002, contending among others that it is not liable for the payment of the local business tax either as a manufacturer or distributor of petroleum products.

It argued that the mayor’s permit fees are exorbitant, confiscatory, arbitrary, unreasonable and not commensurable with the cost of issuing a license.

On May 13, 2002, petitioners denied respondent’s protest and declared that under Section 14 of the Batangas City Tax Code of 2002, they are empowered to withhold the issuance of the mayor’s permit for failure of respondent to pay the business taxes on its manufacture and distribution of petroleum products.

On June 17, 2002, respondent filed a petition for review pursuant to Section 195 of the LGC of 1991 before the Regional Trial Court (RTC) of Batangas City.

In its petition, respondent maintained that petitioners have no authority to impose the said taxes and fees, and argued that the levy of local business taxes on the business of manufacturing and distributing gasoline and other petroleum products is contrary to law and against national policy.

On October 29, 2004, the Batangas Regional Trial court rendered a decision which upheld the imposition of business taxes by Batangas City upon the manufacture and distribution of petroleum products by respondent.

Then Pilipinas Shell elevated the case before the CTA which ruled in its favor, prompting the Batangas City government to bring the matter before the SC.

source:  Business Mirror

Aquino creates Negros Island Region

Executive Order 183, signed May 29, effectively carves Negros Occidental from Western Visayas, and Negros Oriental from Central Visayas

AS PROMISED. President Benigno Aquino III signs on May 29, 2015, the executive order creating the Negros Island Region, almost exactly a month after he promised Negrenses during this Bacolod City visit that he would do so. Photo by Marchel P. Espina/Rappler

MANILA, Philippines – As promised to leaders and residents of the two Negros provinces in the Visayas, President Aquino on May 29 signed the executive order that pulls them out of their respective regions and puts them together as the Negros Island Region (NIR).

Effective immediately, Executive Order 183 will carve Negros Occidental from Western Visayas (Region VI), and Negros Oriental from Central Visayas (Region VII).

The proposed region has a population of 4,194,525, as of 2010.

An idea 20 years in the making, the creation of a unified Negros region was initially opposed by Negros Oriental Governor Roel Degamo, but unanimously supported by officials in Negros Occidental, according to Interior and Local Government Secretary Manuel Roxas II.

His department endorsed the unified region to Malacañanganyway. President Aquino on April 30 said he would sign the EO anytime all issues were settled by local officials and national agencies.

EO 183 says creating a region for the two adjacent provinces is needed “to further accelerate the social and economic development of the cities and municipalities comprising the provinces of Negros Occidental and Negros Oriental and improve the delivery of public services in the aforementioned provinces.”

Negros Occidental and Negros Oriental are both 1st class provinces. Their respective capitals, however, have different income classifications: Bacolod is a 1st class city, while Dumaguete is a 3rd class city.

Local officials have cited the disparity in funding that their provinces get compared to their other provinces in their current regions.

Transition work

A technical working group (TWG) has been created, composed of the Office of the President, the budget department, the National Economic Development Authority, the Department of the Interior and Local Government, and representatives of the two provinces.

Aside from drawing up a roadmap for “institutional arrangements” for the new region, the TWG will recommend the regional center. It will also arrange for organizational development, staffing, and budgeting of regional line agencies and regulatory agencies.

While the TWG is still working on development plans and investment programs for the NIR, the following agencies will serve as interim secretariats:

• NEDA for the Negros Island Development Council
• DILG for the Negros Island Peace and Order Council
• Office of Civil Defense for the Negros Island Disaster Risk Response Management Council

The funding for technical working group will be sourced from the implementing agencies and the two Negros provinces, the EO says.

Here are fast facts on the Negros Island Region. –Rappler.com