ÂťStory on B1
Govt budget surplus reaches P2.6B in May ++
Php20.00
•• 6 SECTIONS PAGES • VOL. 120 NO. 256 32
WEDNESDAY, JUNE 26, 2019
R w w w.manilatimes.net
Trusted since 1898
DUTERTE’S WINNING BETS
President Rodrigo Duterte poses with senators Ramon ‘Bong’ Revilla Jr., Maria Imelda Josefa ‘Imee’ Marcos, Pilar Juliana ‘Pia’ Cayetano, Christopher Lawrence ‘Bong’ Go, Cynthia Villar, Juan Edgardo ‘Sonny’ Angara, Ronaldo ‘Bato’ dela Rosa and Francis Tolentino after their oath-taking on Tuesday in MalacaĂąang. Gowas present but he will take his oath before the President in July. CONTRIBUTED PHOTO
‘MINOR’ CABINET REVAMP LOOMS
! gMINORu REVAMP IS EXPECTED TO TAKE PLACE IN THE OFkCIAL FAMILY OF 0RESIDENT 2ODRIGO $UTERTE AS HIS TERM NEARS THE HALFWAY MARK ACCORDING TO A HIGHLY PLACED SOURCE 4HE SOURCE WHO REQUESTED ANONYMITY SAID $UTERTE WAS STILL COMPLETING THE EVALUATION OF ALL DEPARTMENTS PERFORMANCES WHICH MIGHT INCLUDE THE $EPARTMENT OF !GRICULTURE HEADED BY 3ECRETARY %MMANUEL 0IĂ„OL 0IĂ„OL WHO RECENTLY MADE HEADLINES OVER HIS RESPONSE ON THE 2ECTO
ÂłRevampA8
Del Rosario: The worst foreign affairs secretary in our history
I
4 IS DISGUSTI N G F O R F O R M E R & O R E I G N ! F F A I R S SECRETARY !LBERT DEL 2OSARIO TO USE A DIPLOMATIC PASSPORT THINKING THIS WOULD ALLOW HIM TO SLIP UNNOTICED INTO A COUNTRY WHOSE HEAD OF STATE HE ACCUSED OF CRIMES AGAINST HUMANITY IN ORDER TO ATTEND TO HIS PRIVATE BUSINESS THAT IS A DIRECTORS MEETING OF HIS MAIN INCOME SOURCE THE &IRST 0ACIkC #O ,TD ÂłTiglaoA5
RIG RRIGOBERTO IGG DD. TIGLAO
Palace: Let China fish in PH waters T
BY CATHERINE S. VALENTE
HE Philippines will not stop China from fishing in the country’s territorial waters, Malacaùang said on Tuesday amid calls on the government to make Recto (Reed) Bank an exclusive kSHING GROUND FOR &ILIPINOS
Duque to DOJ: Investigate me (%!,4( 3ECRETARY &RANCISCO $UQUE RD ON 4UESDAY SAID THE $EPARTMENT OF *USTICE $O* WOULD HAVE HIS FULL COOPERATION IN ANY INVESTIGATION THAT IT PLANS TO CONDUCT OVER HIS ALLEGED ROLE IN A SCAM INVOLVING THE STATE OWNED 0HILIPPINE (EALTH )NSURANCE #ORP 0HIL(EALTH 4HE SCAM INVOLVED FAKE DIALYSIS TREATMENTS OF KIDNEY PATIENTS WHO HAD ALREADY DIED g) HAVE ASKED THE $O* TO INCLUDE MYSELF IN THE CONDUCT OF A FULL BLOWN UNBIASED INVESTIGATION u $UQUE SAID IN A STATEMENT (E SAID HE CONDEMNS ALL FORMS OF FRAUD THAT THREATEN THE SUSTAINABILITY AND INTEGRITY
ÂłInvestigateA2
What’s inside PANEL SLOTS FOR MINORITY SENATORS FINE – DRILON ANSWER PETITIONS VS BUS BAN, COURT ORDERS MMDA NewsA8
2ECTO "ANK IS PART OF THE COUNTRY S EXCLUSIVE ECONOMIC ZONE %%: 0ALACE SPOKESMAN 3ALVADOR 0ANELO SAID THE GOVERNMENT WOULD gTOLERATEu THE PRACTICE OF THE #HINESE TO kSH IN 0HILIPPINE WATERS ECHOING 0RESIDENT 2ODRIGO $UTERTE S STATEMENT THAT FRIENDLY RELATIONS BETWEEN THE 0HILIPPINES AND #HINA MAKE IT
FLACKING FORÂ THE STATUS QUO Marlen RonquilloA4
TEARFUL GIANNIS ANTETOKOUNMPO NAMED NBA MVP
SportsC1
EntertainmentD4
ÂłChinaA2
POC officials resign en masse PHILIPPINE Olympic Committee 0/# OFkCIALS LED BY *OEY 2OMASANTA AND #HAIRMAN !BRAHAM 4OLENTINO HAVE AGREED TO RESIGN FROM THEIR RESPECTIVE POSITIONS ON 4UESDAY 4OLENTINO SAID HE CALLED FOR A SPECIAL ELECTION SCHEDULED TENTATIVELY ON *ULY AT THE 'OLDEN "AY 2ESTAURANT
IN 0ASAY #ITY ,AST WEEK 0/# PRESIDENT 2ICKY 6ARGAS STEPPED DOWN AMID CONTROVERSIES HOUNDING THE COUNTRY S HOSTING OF THE TH 3OUTHEAST !SIAN 'AMES LATER THIS YEAR 0/# OFkCIALS GATHERED AT THE 'OVERNMENT 3ERVICE )NSURANCE 3YSTEM BUILDING IN 0ASAY #ITY ON 4UESDAY BUT 4OLENTINO SAID THE ASSEMBLY WAS gINVALID u
g4HIS EXTRAORDINARY GENERAL ASSEMBLY IS INVALID BECAUSE IT DID NOT MEET THE DAY NOTICE REQUIREMENT AFTER 2ICKY 6ARGAS RESIGNATION "UT SINCE EVERYONE WAS HERE ) TOOK THE OPPORTUNITY TO CALL FOR AN ELECTION DAYS FROM NOW )T WILL BE HELD A M AT THE 'OLDEN "AY 2ESTAURANT u HE SAID 4OLENTINO ADDED THAT MOST OF THE
ÂłResignA2
Cinemas to show new films on Fridays beginning in July BY TESSA MAURICIOARRIOLA
EVA NOBLEZADA, LEA SALONGA-STARRER TO OPEN FILM FEST IN NEW YORK
POINT u 0ANELO SAID DURING A NEWS BRIEkNG "UT THE 0ALACE OFkCIAL POINTED OUT THAT ALLOWING #HINA TO kSH IN 0HILIPPINE WATERS DID NOT MEAN THAT THE COUNTRY WAS GRANTING RIGHTS TO THEM g+UMBAGA PARANG ITO TOLERATE MO LANG )T S NOT NECESSARILY GRANT 0ARANG ‡ KASI FRIENDS
Q Philippine Olympic Committee president Joey Romasanta (right) and Chairman Abraham Tolentino.
BY JOSEF T. RAMOS
NewsA2
DIFkCULT TO STOP THE LATTER FROM kSHING IN THE COUNTRY S %%: g(E $UTERTE EXPLAINED IT (E SAID AS FAR AS THEY RE CONCERNED THEY HAVE HISTORICAL RIGHT TO THAT 7E WILL ALLOW IT KASI BECAUSE WE ARE FRIENDS NAMAN @DI MAGBIGAYAN MUNA TAYO ‡ PARANG GANOON ANG PUNTO NI 0RESIDENTE SO LET S BE GIVING THAT S THE 0RESIDENT S
REACH US AT: E-mail: newsdesk@ manilatimes.net Tel. Nos.: 524-5664 to 67 Address: 2/F Sitio Grande, 409 A. Soriano Avenue, Intramuros, Manila 1002
THOSE who prefer to watch new movies on the big screen will have to troop to cinemas on Fridays instead of Wednesdays, beginning the second week of July. This is because the Film Development Council of the Philippines (FDCP) has changed the schedule of the showing of new films under its Memorandum Circular 2019-01 released recently. “The switching of the theatrical release of local and foreign films nationwide from Wednesday to Friday [has been decided] to
accommodate more potential moviegoers during the weekend,�the FDCP explained. The agency also released new policies and guidelines that will advance and protect Filipinomade movies. Under the new guidelines, “a minimum runlength of at least seven days for every film booked for theatrical release [must be implemented], as well as a theater assignment guarantee for the first three days to avoid movies from getting pulled out of cinemas.� The latter is especially favorable to independent movies, which, when screened commercially, are often pulled out of cinemas within a
ÂłFilmsA2
Please visit our website for more news www.manilatimes.net
ASIAN STOCKS: W S h a n g h a i 0 . 8 7 %
W S i n g a p o re 0 . 2 2 %
P51.36 TO $1
PSEi
8,034.09 DOWN 0.33%
What’s inside FUEL UNBUNDLING TO PUSH THROUGH
ÂťBusinessB2
PEZA SEEKS TO SAVE ECOZONE APPLICATIONS
ÂťBusinessB2
ACCORD TO BUILD PH POWER PLANTS SIGNED
ÂťBusinessB2
SHIPYARD CREDITORS GET 20% STAKE IN HANJIN
ÂťCorporate NewsB3
SEC WARNS PUBLIC VS PH GOOD SAMARITAN RIDERS
ÂťCorporate NewsB3
US, CHINA TRADE OFFICIALS HOLD TALKS
ÂťForeign BusinessB4
www.manilatimes.net
T
W To k yo 0 . 4 3 %
V Jakarta 0.51%
BY MAYVELIN U. CARABALLO
T
HE government continued to post a budget surplus in May as revenue collections outpaced state spending for the second straight month, the Bureau of the Treasury (BTr) said on Tuesday. In a statement, the Treasury said LAST MONTH S 0 BILLION SURPLUS WAS NARROWER THAN !PRIL S 0 BILLION noting that the latest amount reversed gTHE 0 BILLION DEkCIT REGISTERED IN the same month last year, fueled by strong revenue collections outpacing the year-on-year increase in government spending.� Government revenues rose by 22.5 percent to P317.2 billion in May from P259 billion last year, while expendi-
tures increased by 7.8 percent to P314.7 billion from P291.9 billion. A month earlier, revenues grew by 0.4 percent and expenditures fell by 15.1 percent. The latest surplus trimmed the yearto-date shortfall to P800 million, 99.4 percent lower than the P138.7 billion in January to May 2018. For May alone, the Bureau of Internal Revenue (BIR) accounted for the bulk of revenues with P204.8 billion, a 19.1-percent improvement from the
year-earlier P172 billion. The growth was faster than April’s 1.2 percent. The Bureau of Customs (BoC) netted P58.2 billion — a 10.3-percent gain from last year’s P52.7 billion — while OTHER OFkCES CONTRIBUTED 0 BILLION bringing total tax revenues for the MONTH TO 0 BILLION Tax-revenue growth was faster at 17 percent from 2.8 percent a month earlier. Non-tax earnings, meanwhile, reached P51.8 billion, with the Treasury CONTRIBUTING 0 BILLION ‡ UP percent — propelled by “higher dividends on shares of stocks, growing by 89.5 percent from May 2018 collections amounting to P30.8 billion, wherein Pagcor (Philippine Amusement and 'AMING #ORP CONTRIBUTED 0 BIL-
Q Finance Secretary Carlos Domiguez 3rd (center) with representatives of the Oxford Business Group. CONTRIBUTED PHOTO
number of pessimists during the quarter.� Respondents attributed their increased optimism to the usual uptick in demand during summer, in view of the expected increase in the number of local and foreign tourists, enrolment, and harvest periods; electionrelated spending in the runup to this year’s midterm polls; sustained increase in orders and projects leading to higher production volume; expansion of businesses and new product lines; and the continued rollout of government infrastructure and development projects with the approval of the 2019 national budget. The latest BES, which polled 1,501 companies nationwide, was conducted from April 1 to May 28.
V B a n g ko k 0 . 3 1 %
lion for the month,� the bureau said. The bulk of government spending — P295 billion — was for primary expenditures, which rose by 9 percent from P270.8 billion a year ago. “Expansion for the period was attributed to the implementation of the last tranche of salary increase of government personnel, release of midyear bonus, and the execution of new programs in line with the approval of the 2019 GAA (General Approriations Act) in mid-April,� the Treasury said. Interest payments of P19.7 billion, meanwhile, accounted for the rest of STATE SPENDING )T DROPPED BY PERcent year-on-year, which the bureau said was “due to [the] coupon payment for T-bonds issued last year.�
ÂłSurplus B4
‘All tax reform packages seen in place by 2020’ THE Department of Finance (DoF) targets to implement all of the government’s tax reform packages by next year, according to Secretary Carlos Dominguez 3rd. “By 2020, the DoF aims to have all tax reform packages in place, including the reduction of the corporate income tax from 30 percent to 20 percent and‌in the number of capital income tax rates from 80 to 42,â€? Dominguez was quoted as saying during an interview with representatives of the Oxford Business Group. The still-to-be-approved packages of the government’s Comprehensive Tax Reform Program are Package 1B, which seeks to reform the Motor Vehicle Users’ Charge; Package 2, which calls for the lowering of corporate income tax from 30 percent to 20 percent and the rationalizaTION OF kSCAL INCENTIVES 0ACKAGE 0LUS WHICH proposes additional excise taxes on tobacco and alcohol products, as well as increase the government’s share from mining; Package 3, which covers reforms in property valuation; and Package 4, which proposes the rationalization of capital income tax. 4HE kRST PACKAGE 2EPUBLIC !CT OR THE Tax Reform for Acceleration and Inclusion (Train) Act — which reduced personal income taxes in exchange of increased excise taxes on automobiles, fuel, coal and sugar-sweetened beverages — was implemented at the start of 2018. According to Dominguez, Train attained 108.1
ÂłOutlook B2
SSS and its PRN
HE appointees of President Duterte to the Social Security Commission (SSC), which is the policy-making body of the Social Security System (SSS), should have been informed that when A POLICY THAT WORKS EFkCIENTLY IS in place, they should not change it. In other words, they need not amend such policy. This is the problem with SSS and its policy-enforcement arm. By forcing SSS members to use PRN, they failed to explain the need for such acronym, which most member employers may not know anything about. What does the acronym mean? This PRN thing is a big burden for household employers, who are forced by the present SSS leadership to adopt it because the PRESENT SYSTEM WAS AND STILL IS EFkcient. Why change it? Will anyone AMONG 333 OFkCIALS EXPLAIN Perfecting SSS’ previous requirement has been difficult for its member employers. As a matter of fact, the head of one SSS branch even had the temerity of writing a letter to a member employer admonishing her to follow its rules. Something could be wrong with SSS’ own PRN. Loyal members. Due Diligencer has been told in the afternoon of Monday (June 24, 2019) that many members went to SSS’ branches hoping to be enlightened about PRN. This shows their loyalty to the fund that would take care of them in their old age. $ID ANY OF 333 OFkCIALS KNOW anything about PRN? Of course,
W H o n g Ko n g 0 . 1 5 %
B2
Govt budget surplus reaches P2.6B in May
PH business outlook still up in Q2 – poll THE country’s business outlook continues to improve in the second quarter despite negative consumer sentiment, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday. Results of the central bank’s latest Business Expectations Survey put the second quarter confidence index (CI) — computed as the percentage of companies that answered in the affirmative minus those who replied otherwise — at 40.5 percent, up from 35.2 percent three months earlier. BSP Department of Economic Statistics Director Redentor Paolo Alegre Jr. told reporters that the second consecutive quarter of improved business outlook “means that the number of optimists increased and continued to be greater than the
W Seoul 0.22%
SEC MATTERS
W
WEDNESDAY JUNE 26, 2019
Business Times
CURRENCY RATE
B1
³Packages B4 they do. Otherwise, they would not want it implemented. (OPEFULLY 333 OFkCIALS SUCCEED in educating their members about PRN. If not, they should welcome public perception that something is wrong when they continue to pass on to SSS members the task of going by their rules and not vice versa. If only SSC officials would listen to suggestion, they would have learned a long time ago that SSS members are eager to live by their rules as long as they are treated fairly. Consider this: It takes time to learn SSS’ old computer program. By changing it to PRN, the fund IS ONLY MAKING LIFE DIFkCULT FOR its members. How could one possibly comply with the present leadership of SSS that requires its member employers to live by their imposition? )F 333 OFkCIALS AND EMPLOYEES would only treat member employers not as servants but as fellow service workers, they would kND IN THEM THE PARTNERSHIP THEY have long been seeking. If the present regime wants SSS employers to comply with their PRN requirement, it should explain to them the reason or reasons for the existence of this
ÂłPerez B4
Relaxed rules on assets’ sale sought PSEi ends 5-day gain on US-Iran tensions THE Commission on Audit’s (CoA) rules on disposing idle government assets must be relaxed to allow state agencies to sell serviceable properties, Finance Secretary Carlos Dominguez 3rd said. In a statement, the Department of Finance (DoF) quoted Dominguez as saying that CoA #IRCULAR WHICH REquired such assets to be sold at their appraised values, had hampered, rather than facilitated, government efforts to dispose them. According to the circular, issued 30 years ago, idle but serviceable government properties should be divested, either through public auction, negotiated sale, barter, or transfer to other government agencies, based on those values. Because of this, Dominguez has directed the Privatization -ANAGEMENT /FkCE 0-/ AND the Philippine Deposit Insurance Corp. (PDIC) to discuss with state-run banks and CoA ways to loosen up these rules. “I want a meeting organized with the CoA — mainly with
the representatives from PMO, PDIC [and] the two (state) banks we have,� Dominguez said, referring to Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP). “The central bank may want to participate,� he added. “Tell them that this CoA requirement that we sell at market value isn’t working, because we just keep on adding to the titles, particularly with the PDIC, and we’re just getting overwhelmed.� The Finance chief said that, rather than continue imposing these ineffective rules, the state would be better off selling them at discounted prices that would attract more buyers, [who would then] be able to redevelop these properties for productive or commercial use. “The objective is to ask CoA to cooperate with us and propose ways of turning these assets into cash, because cash helps the economy. Selling it even at a discount allows (these assets) to be redeveloped and
used. Right now, it’s just an expense,� he added. Unproductive or idle state assets, Dominguez said, only add TO THE STATE S kNANCIAL BURDEN considering that taxes have to be paid and personnel have to be hired to keep these properties serviceable. For its part, the PMO, an attached to the DoF, said the staterun deposit insurer, LandBank, DBP and the Bangko Sentral ng Pilipinas were among the state agencies that had been unable to sell because of the circular. Dominguez also instructed the PMO to determine the number of land titles and properties held by the Finance department, the two state-run lenders, and other state agencies and government-owned and controlled corporations in preparation for the planned discussions with CoA officials. Chief Privatization Officer Gerard Chan reported to Dominguez that the PMO alone has some 28,000 land titles to dispose of, while the PDIC has about 23,000 more. MAYVELIN U. CARABALLO
4(% STOCK MARKET SNAPPED A kVE day winning streak on Tuesday as tensions between the United States and Iran, as well as investors repositioning portfolios ahead of this week’s Group of 20 (G20) meeting, dented investor sentiment. The benchmark Philippine Stock Exchange index (PSEi) DROPPED BY PERCENT OR points to close at 8,034.09, while the broader All Shares fell by 0.27 percent or 13.54 points to end at 4,909. “The local bourse fell‌as investors wait [for] the Trump-Xi meeting at the G20 summit,â€? Philstocks Financial Inc. said, referring to US President Donald Trump and his Chinese counterpart Xi Jinping. Both leaders are expected to meet on the sidelines of the G20 meeting on Thursday and Friday in Osaka, Japan, where investors
ÂłTensions B4
Please visit our website for more news www.manilatimes.net