PPA told: Share largesse with LGUs

The chairman of the House Committee on Higher and Technical Education on Sunday said the state-run Philippine Ports Authority (PPA) should share with provinces, cities and municipalities the income the PPA generates from local shipping port operations.

Rep. Roman Romulo of Pasig City, in a news statement released over the weekend, said local government units (LGUs) could get their slice from the 50-percent portion of the PPA’s annual net income remitted to the National Treasury as cash dividends.

The PPA is one of several state-controlled corporations required by law to declare as dividends and transfer at least 50 percent of its yearly net profits to the National Treasury.

“Thus, the PPA will still get to keep at least 50 percent of its annual net profit for reinvestment in port improvement and expansion,” Romulo said.

“Local governments are entitled to their fair share of the earnings from commercial seaports in their areas,” he said. “Our proposal will not diminish in any way the PPA’s mandate and financial capability to continuously modernize and upgrade public port operations countrywide.”

Romulo added that due to a rapidly growing economy and increased shipping traffic, the PPA has been raking in bigger profits every year. “The PPA posted a net income of P4.26 billion on gross revenue of P12.57 billion in 2014,” he said.

He added that net income was up 15.1 percent, from P3.7 billion in 2013, while gross revenue was up 13.5 percent from P11.07 billion.

“The PPA has yet to report its 2015 figures. However, the agency previously reported a net income of P2.54 billion on gross revenue of P4.45 billion from January to April 2015 alone,” he said.

“Net income was up 22.1 percent, from P2.08 billion in the same four-month period in 2014, while gross revenue was up 20.2 percent, from P3.7 billion,” the lawmaker added.

Attached to the Department of Transportation and Communications, the PPA is especially charged with financing, managing and running public ports.

As such, the agency also collects all the revenue from port activities and services, including those from passenger terminals.

source:  Business Mirror

Local gov’ts struggle to collect share of oil, gas, mining taxes

LOCAL GOVERNMENT units (LGUs) have raised concerns over the delayed release of their share in state revenue from mining, oil and gas companies.

In an e-mailed statement dated March 1, Union of Local Authorities of the Philippines, Inc. (ULAP) Executive Director Czarina Medina-Guce said “there are accounts that... LGUs [are experiencing] delays in the receipt of their shares and, in some cases, LGUs do not receive any share at all.”

ULAP has recorded cases of delayed remittance during a road show conducted for the Philippine Extractive Industries Transparency Initiative (PH-EITI) in the Caraga Region, Palawan, Cebu, Davao and National Capital Region from July 15 to Aug. 20 last year.

“In the documentation report made by ULAP, participants from all the areas covered by the road show raised the said issue on the delay in the release of LGU shares,” Ms. Medina-Guce said.

“Furthermore, the road show also identified the following LGUs which have large-scale mining sites which still have not received their LGU shares, but this list is definitely not encompassing of all LGUs experiencing this difficulty.”

The province of Siquijor, for one, has received no share from the national government’s mining revenues for the last 20 years while MacArthur, Leyte has waited for such funds since 2012, Ms. Medina-Guce said.

Ms. Medina-Guce also cited Cantilan, Surigao del Sur, the province of Palawan, Guian, Samar and all municipalities of Dinagat Islands as experiencing delays in the receipt of their share from the national government.

Sec. 290 of Republic Act (RA) No. 7160 or An Act Providing for a Local Government Code of 1991 states that LGUs should receive a 40% share in mining taxes, royalties, forestry and fishery charges, and other similar fees collected in the preceding year.

The law further provides for the automatic release of such funds “without need of any further action... on a quarterly basis within five days after the end of each quarter, and which shall not be subject to any lien or holdback that may be imposed by the national government for whatever purpose.”

“The DBM (Department of Budget and Management) has already [started] implementing this year an easier way to download the shares of LGUs,” Finance Assistant Secretary and PH-EITI Focal Person Ma. Teresa S. Habitan earlier said on the sidelines of the launch of the 2nd PH-EITI Country Report on Feb. 16.

“But we also need to do work on the LGUs concerned so that they will also be able to reflect in their books how much exactly, as a share of revenue, are they receiving as shares in national wealth,” Ms. Habitan added.

According to data collected by the multi-stakeholder initiative, the DBM booked a P684.4-million share for LGUs hosting extractive operations in 2013. The LGUs, however, reported having received P410.38 million only.

Ms. Habitan noted the PH-EITI was unable to reconcile the amounts reported by DBM and LGUs because both had no disaggregated data, which could show the specific source of the mining revenues, for instance.

“As far as the LGUs are concerned, a lot of technical capacity has to be introduced into the way that they are doing the reports and we are only starting to introduce that this year,” Ms. Habitan said.

Citing the PH-EITI report, Ms. Medina-Guce of ULAP also noted that LGUs are unable to determine the portion of their share in the national wealth attributed to mining, oil and gas operations.

“LGUs are not aware where the mining company pays taxes. Some mining companies pay directly to Large Taxpayers Assistance Division of the Bureau of Internal Revenue in Manila, so release of share is to the head offices,” Ms. Medina-Guce added.

To tackle delays in remitting the share of LGUs, Nickel Asia Corp. President and Chief Executive Officer Gerard H. Brimo said LGUs should receive payments directly from mining, oil and gas companies.

“Why should the local government unit wait for a year or two to get their share of the funds? That certainly should be a feature of the new mining tax regime,” Mr. Brimo, who represents the mining industry in the PH-EITI multi-stakeholder group, said during a press conference held for the 2nd PH-EITI Country Report’s launch.

Ms. Medina-Guce said the delayed release of the LGU share in the national government’s mining revenues could impact service delivery and pose social costs.

“The shares from extractive industries are important to LGUs given that these shares are utilized to finance their local development and livelihood projects for their constituents especially for those affected by extractive industries,” Ms. Medina-Guce said.

source:  Businessworld

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