HOUSE APPROVES MILITARY PENSION REFORM ON SECOND READING

MANILA — The House of Representatives has given its second reading approval to a proposed reform of the military and uniformed personnel's (MUP) pension system. Economic managers argue that this reform is crucial for stabilizing the country's fiscal position. Finance Secretary Benjamin Diokno expressed concerns about the current pension system, which places the burden on the government and has resulted in a liability of P9 trillion as of May.

The approved reform includes several key provisions:

- Full indexation, with a provision for adjustment during adverse fiscal conditions

- Guaranteed salary increase of 3% per annum over 10 years

- Creation of two trust funds, one for the military which will infuse at least P44 billion in assets to the fund, and another for uniformed services

- Uniform retirement benefits for total permanent disability

- Assistance for indigent military retirees

- Mandatory contribution of 9% of the salaries for new entrants, with a larger government counterpart of 12% and retirement of new entrants at rank last held

These provisions address the demands of the House leadership for a salary increase, guaranteed funding sources, and pension increases. The reform aims to reduce the unfunded liabilities of the MUP pension system from estimates as high as P14 trillion to P3.4 trillion, potentially leading to a credit rating upgrade upon its enactment.

SENATE PANEL OKS ABSOLUTE DIVORCE BILL

MANILA — A Senate panel has approved a consolidated measure that provides for absolute divorce based on various grounds, including five years of separation whether continuous or broken, and commission of the crime of rape before or after marriage.

The Committee Report 124 – prepared and submitted by the Senate committee on women, children, family relations and gender equality – recommended the approval of Senate Bill 2443, which defined absolute divorce as the “legal termination of a marriage by a court in a legal proceeding.”

Once divorce is granted, the status of both parties will be reverted to single for all legal intents and purposes, including the right to contract a subsequent marriage.

SB 2443 is a substitution of consolidated Senate Bills 147, 213, 237, 554, 555, 1198 and 2047 on the Dissolution of Marriage Act sponsored by committee chair Sen. Risa Hontiveros.

“The state should ensure that the court proceedings for the grant of absolute divorce will be expeditious, inexpensive and affordable, particularly for indigent litigants,” the measure read.

In February, the House of Representatives expressed openness to a bill that may finally pave the way for divorce, after it approved in principle a measure providing for the dissolution of marriage.

“The Philippines will soon join the rest of the world in the legalization of absolute divorce after the House committee on population and family relations approved in principle several bills on divorce and dissolution of marriage,” divorce advocate Albay Rep. Edcel Lagman said.

A report by news agency AFP showed that the Philippines is the only state outside Vatican that outlaws divorce, with the Catholic Church opposing the practice as it is against its teachings.

Those who favor divorce say the ban makes it difficult for concerned individuals to escape violent or abusive spouses, or even for couples to amicably cut ties.

MARCOS, JR MULLS FISHING BAN, OTHER RESTRICTIONS AMID OVERFISHING: PALACE

MANILA — President Ferdinand Marcos, Jr. is eyeing a fishing ban and other restrictions in some areas to address overfishing and protect the sector.

During a chance interview in Zamboanga City, Marcos, concurrently the Philippine agriculture chief, said fish population should be given a chance to grow for the next season.

“Kung minsan kailangan ‘wag uubusin yung isda para sa next season mayroon pa. Kaya yun yung tinitingnan natin ngayon,” Marcos was quoted as saying in a Malacañang release.

“At may mga lugar na hindi dapat gawin palaisdaan dahil ito nga ay para sa breeding... para dumami ang population ng mga isda. Kaya yun ang ating pinaplano,” he added.

Fisheries, he said, is in the government's development plan amid reduced catch because breeding grounds have supposedly been destroyed.

To address this problem, the Presidential Communications Office said the Marcos administration plans to have more cold storage facilities, since up to 30 percent of the fish catch were "degraded or damaged."

"Doon naman sa mga maliliit na bagsakan ay magbibigay tayo ng gawaan ng yelo, para ‘yung yelo na ‘yan, ‘yun ‘yung ilalagay nila sa bangka para pag may nahuli sila, ilalagay lang doon sa yelo at hindi masira ‘yung isda,” he said.

CHINA SHOULD PAY BILLIONS FOR REEF DESTRUCTION: HONTIVEROS

China should pay billions of pesos to the Philippines for destroying coral reefs in the West Philippine Sea, Sen. Risa Hontiveros said Wednesday.

The senator earlier filed Proposed Senate Resolution No. 804, condemning the massive coral harvesting and urging the appropriate Senate Committee to conduct an inquiry into the matter.

“We should seek payment for damages caused by China in the WPS. Aabot ng bilyon-bilyon ang makukuha natin kung maoobligang magbayad ang Tsina. Ninanakawan na nga nila ng hanapbuhay ang ating mga mangingisda, winawasak pa nila ang ating likas-yaman. Kung mabayaran ng Tsina ang lahat ng utang niya sa Pilipinas, siguradong makakatulong ito sa kinakaharap nating krisis sa ekonomiya,” the senator said.

The Armed Forces of the Philippines over the weekend said it had seen the effects of coral harvesting in Rozul Reef that left the seabed barren. The Philippine Coast Guard on Monday backed the military's report, adding it saw similar ecological damage at Escoda Shoal.

An international maritime expert earlier said he fears the collapse of Philippine fisheries if China's wanton destruction of coral reefs in the West Philippine Sea remains unchecked.

UNIONBANK GETS BSP NOD FOR CRYPTO TRADING

Union Bank of the Philippines has secured a license from the Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP), becoming the first universal bank in the country to do so. The bank plans to introduce a feature in its mobile app allowing customers to buy and sell bitcoins directly by the fourth quarter of this year. This milestone represents a significant step for the bank as it aims to revolutionize the banking landscape and enhance its digital capabilities. The VASP license will enable UnionBank to offer virtual asset exchange services to a broader customer base and provide a secure platform for trading cryptocurrencies within its trusted financial institution. The bank sees this as a way to meet the evolving needs of its clients and stay ahead in the rapidly changing financial landscape.

P75 BILLION INVESTMENT IN MAHARLIKA STILL WITH THE TREASURY

The P75 billion contribution of the Land Bank of the Philippines and the Development Bank of the Philippines to the Maharlika Investment Fund is still with the Bureau of Treasury, as the Maharlika Investment Corporation Board has yet to convene and nominate a bank account.

The board is expected to convene before the year ends, according to the Department of Finance’s budget sponsor at the House of Representatives, Sultan Kudarat 2nd District Rep. Horacio Suansing Jr.

“For how long will these funds be in the Treasury and not remitted to the Maharlika Investment Corporation?” Albay 1st District Rep. Edcel Lagman asked during the House plenary debates on DOF’s proposed 2024 budget.

“This depends upon the timeline or when the Maharlika Investment Corporation Board will be convened and which by that time will nominate a bank account,” Suansing replied.

“What is the timeframe for all of this?” Lagman asked further.

“The timeline is before the year ends,” Suansing responded.

The law requires Land Bank of the Philippines and the national government to contribute P50 billion each to the MIF. The Development Bank of the Philippines is also mandated to put in P25 billion.

Suansing said the funds were earning 3% to 5% on government securities while still with the banks, However, the MIF will invest them to higher yielding securities. Asked whether the MIF received other investments, Suansing said none so far.

The implementing rules and regulations of the Philippines' first sovereign wealth fund were released in late August. The finance department said it has received applications from interested managers of the Maharlika fund.

GOV'T TO BORROW P2.46 TRILLION FOR 2024 BUDGET: QUIMBO

MANILA — The government plans to borrow P2.46 trillion to partially fund the P5.768 trillion national budget for 2024, according to Rep. Stella Quimbo. Borrowings will account for 43.32% of the budget, while local revenues will cover the remaining 57%. The budget also allocates resources for critical growth-accelerating programs. The House aims to approve the budget before a break from September 30 to November 5. The Philippines' sovereign debt reached a record P14.24 trillion in July. Concerns have been raised about the growing debt burden outpacing budget increases, but government economists believe the situation is manageable.

ADB DOWNGRADES PH ECONOMIC GROWTH OUTLOOK

MANILA -- The Asian Development Bank (ADB) on Wednesday downgraded its growth forecast for the Philippines, saying the economy may grow by a moderate 5.7 percent this year.

ADB said growth may slow because of inflation and global headwinds, like geopolitical tensions and a sharper-than-expected slowdown in major advanced economies.

The multilateral lender, however, said the Philippine growth story remains strong.

"Public investment and private spending fueled by low unemployment rate, sustained increase in remittances from Filipinos overseas, and buoyant services including tourism will support growth,” said ADB Philippines Country Director Pavit Ramachandran.

Government's large infrastructure projects will stimulate consumption, boost jobs, and spur more investment, he added.

Economic managers hope the Philippine economy will grow by 6 to 7 percent in 2023. Growth slowed to 4.3 percent in the second quarter on the back of high inflation and interest rates

ADB maintained its Philippine inflation outlook to be at an average of 6.2 percent in 2023.

ECONOMIC MANAGERS BACK 'AYUDA', REJECT SUSPENSION OF FUEL EXCISE TAX

Economic managers of the Marcos Jr. administration have thumbed down proposals to suspend the excise tax on petroleum products amid rising prices, saying it could negatively affect the economy.

Instead, the economic team is pushing for targeted assistance to the vulnerable sectors.

Socioeconomic Planning Secretary Arsenio Balisacan said a month-long suspension of fuel excise tax is "very dangerous."

"It’s quite inequitable. It’s quite a risk to our fiscal program. There are better ways of protecting the poor and vulnerable. We’d rather have the assistance program for the poor, for the jeepney drivers, tricycle drivers, than having a universal subsidy that tends to benefit disproportionately the rich,” he told the media in an interview after NEDA’s budget hearing at the House of Representatives on Tuesday night.

“Once you put it in place, it’s very difficult to remove it, because policies like that are populist,” Balisacan added.

“In the past, we have unsustainable deficits because of programs like that. It led to high interest rates, it led to a slowdown of the economy, and lower growth, therefore, lower investments. Even the middle class will be hurt in the longer term,” he noted.

Finance Secretary Benjamin Diokno earlier warned that the government would lose billions in revenue if it suspends VAT and excise tax on fuel.

Diokno said revenue losses may reach P72.6 billion for the last quarter of the year, or 0.3% of the country's Gross Domestic Product (GDP).

PAGCOR, DAP SIGN PACT ON PRIVATIZATION

The Philippine Amusement and Gaming Corporation (PAGCOR) has partnered with the Development Academy of the Philippines (DAP) in facilitating the gaming regulator’s reorganization.

PAGCOR chairman and CEO Alejandro Tengco said they tapped DAP’s technical assistance to comply with the requirements of the Governance Commission for GOCCs (GCG) in the implementation of its Compensation and Position Classification System or CPCS which is needed prior to PAGCOR’s privatization.

“We thank the Development Academy of the Philippines for being a prime mover of competency building in government,” Tengco said. “We need their help to comply with the (documentary) requirements of the GCG and in our efforts to eventually implement the CPCS that our employees have been eagerly waiting for,” he said.

Tengco made the remarks after he and DAP president and CEO Engelbert Caronan, Jr. signed the Memorandum of Agreement for PAGCOR’s reorganization at the New Coast Hotel in Manila last September 12.

PAGCOR Vice President for Human Resource and Development Group Angelito Domingo and DAP Vice President for Mindanao Dr. Mark Lemuel Garcia also signed the agreement.

Mr. Tengco said he also wants to engage DAP in the facilitation and conduct of trainings for PAGCOR officers and employees to enhance their skills and competencies.

Mr. Caronan for his part expressed gratitude to PAGCOR for believing in DAP’s capability to help implement organizational changes that would be beneficial to the state gaming firm’s workforce.

“We would like to thank PAGCOR for their trust and confidence in this partnership; we are ready to provide the necessary technical services to make the agency GCG-compliant and help it carry out its reorganization efforts,” he said.

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DOJ: 'CULT' MEMBERS IN SURIGAO DEL NORTE FACING CRIMINAL COMPLAINTS

The Department of Justice on Tuesday said members of a supposed cult in Socorro, Surigao Del Norte are already facing multiple complaints of qualified trafficking, kidnapping and serious illegal detention, and child abuse.

Justice Secretary Jesus Crispin Remulla said sexual exploitation cases happening not only in Socorro but in the whole country as well should be stopped.

“Ide-demanda natin lahat ng dapat maidemanda upang sila ay managot sa batas,” Remulla said.

In the information provided by the DOJ to the media, those who are facing prosecution at the provincial prosecutors office of Surigao Del Norte are as follows:

Jay Rence Quilario alias Senior Aguila, Mamerto Galanida, Karren Sanico, Jr., Janeth Ajoc, Wenefredo Buntad, Giovanni Lasala, Ibrahim Adlao, Jovelito Atchecoso, Sergio Cubillan, Daryl Buntad, Jonry Elandag, Yure Gary Portilio, Florencio Quiban.

Standing as complainants are Municipal Mayor Riza Rafonselle Timcang, Municipal Social Welfare Development Officer Chien Cen Dizon and the National Bureau of Investigation Caraga.

Justice Assistant Secretary Mico Clavano however said the prosecutors are facing various motions to inhibit filed by the respondents.

“So as per our information, wala pa pong preliminary investigation na nangyayari because pinapa-inhibit yung mga prosecutors natin,” Clavano said.

Clavano added that since the controversy has already gained national attention after the privilege speech of Sen. Risa Hontiveros, the complaints may be transferred from Surigao to Manila.

'MEDYO MAHIRAP SABIHIN NA BABABA': EXPECT HIGH FUEL PRICES UNTIL END OF 2023, DOE SAYS

MANILA — The Department of Energy (DOE) on Tuesday said the public may need to endure high oil prices until the end of the year as global crude supplies remain tight.

DOE Oil Management Bureau Director Rino Abad said that earlier this year the Organization of the Petroleum Exporting Countries (OPEC) cartel along with Russia slashed oil production.

Based on OPEC's projections and the forecast of the International Energy Agency, Abad said, the reduced output from oil producers will persist "until the end of the year."

Last month, the fuel shortage peaked at 3 million barrels per day, but the IEA said the projected shortfall may go down to 500,000 barrels per day before the end of the year, he said.

"Mayroon tayong ini-expect na mataas pa rin na price because of the tightness, remaining tightness towards the end of the year," said Abad.

Even if supply problems ease, oil prices may continue to rise before the year ends, but the hikes will be smaller.

"Still, nandoon pa rin tayo sa mataas na price kasi wala po tayong ini-expect na pagbaba ‘no. Medyo mahirap sabihin na bababa dahil mayroon pa ring kakulangan," he added.

Pump prices increased for the 11th straight week on Tuesday.

Since July 11, diesel prices have increased by P17.30 per liter, gasoline by P11.85 per liter, and kerosene by P15.94 per liter.

While House Speaker Martin Romualdez has asked oil companies to bring down prices and called on the government to suspend excise taxes and VAT on fuels, Finance Secretary Benjamin Diokno opposed the latter saying it will damage the economy.

2 PHILIPPINE RESTAURANTS ENTER TOP GLOBAL PIZZAS LIST, 1 WINS WORLD PIZZA OF THE YEAR

MANILA — Two Philippine restaurants have risen from their previous ranks on the online guidebook 50 Top Pizza's list in the Asia-Pacific Region and even placed as among the best pizzerias in the world.

This is the first time that any Philippine restaurant placed in the 50 Top Pizza globally.

Crosta Pizzeria figured in the No. 54 spot globally and rose from 32nd to 10th in the 50 Top Pizza for Asia-Pacific. Meanwhile, A mano placed No. 96 and went up from 48th to 15th in the latter list.

Chef Yuicho Abellare Ito of Crosta Pizzeria also won the Latteria Sorrentina Award for Pizza of the Year 2023 because of his Cherry Culatello Pie composed of black Tasmanian cherries marinated in marsala, gorgonzola cream, mozzarella, and balsamic vinegar.

In last year's list of 50 Top Pizza for Asia-Pacific, the third Filipino restaurant was Wild Flour Italian, which at the time placed at No. 38.

Sharing the top spot of the global 50 Top Pizza list were Best Service - Goeldlin Award winner 10 Diego Vitagliano Pizzeria and I Masanielli, both in Italy. Five other restaurants based in Italy finished within the Top 10.

The highest-ranked Asia-based restaurants were Japan's The Pizza Bar on 38th at No. 4 and China's Bottega at No. 8.

ENTERTAINMENT & LIFESTYLE

'LINLANG' TO PREMIERE ON PRIME VIDEO ON OCTOBER 5

MANILA – The ABS-CBN series "Linlang" will make its debut on Prime Video on October 5.

This information was announced by the streaming platform on Wednesday, garnering the attention of online users with its accompanying caption.

"The promise of a lifetime will be broken by lies and betrayals. Is your heart ready to face the truth?” the description of the post reads.

Starring Kim Chiu, Paulo Avelino, JM de Guzman, and Maricel Soriano, "Linlang" was initially announced in October last year.

The cast also includes Ruby Ruiz, Jaime Fabregas, Raymond Bagatsing, Vance Larena, Heaven Peralejo, Adrian Lindayag, Race Matias, Anji Salvacion, and Kice.

The series is directed by Jojo Saguin and Mannny Palo.

INDICATORS

FOREX $1 = P 56.75

THOUGHT FOR THE DAY

The third-rate mind is only happy when it is thinking with the majority. The second-rate mind is only happy when it is thinking with the minority. The first-rate mind is only happy when it is thinking. - A. A. Milne