State subsidies to government-owned and -controlled corporations (GOCCs) dropped in August, but the Duterte administration’s total monetary aid to these companies continued to rise in the first eight months of the year.

State subsidies to government-owned and -controlled corporations (GOCCs) dropped in August, but the Duterte administration’s total monetary aid to these companies continued to rise in the first eight months of the year.

Data from the Bureau of the Treasury showed the national government had disbursed P6.08 billion in subsidies to state-run firms in August, lower by 18 compared with P7.4 billion in the same month a year ago.

Based the Treasury report, nearly half or 46.3 percent of the total subsidy releases, equivalent to P2.82 billion, went to the National Irrigation Administration (NIA).

At end-August, the total financial support given to the agency amounted to P23.89 billion.

In January, President Rodrigo R. Duterte stopped the NIA from collecting the Irrigation Service Fee (ISF) from farmers. There is also a bill pending in Congress seeking to make the agency’s free irrigation program permanent.

After NIA, the second biggest recipient of monetary help was the Philippine Crop Insurance Corp. (PCIC), the implementing agency of the government’s agricultural insurance program.

Based on the Treasury data, PCIC received P1.4 billion worth of subsidy from the national government in August, its first financial aid for the year.

Subsidies to NIA and PCIC cornered 69.3 percent of the government’s total disbursements for the month.

Meanwhile, other GOCCs that enjoyed financial aid were the Social Housing Finance Corp. (P929 million), Small Business Corp. (P350 million), National Power Corp. (P263 million), and the Philippine Children’s Medical Center (P89 million).

Subsidies also went to Subic Bay Metropolitan Authority (P65 million), Philippine Rice Research Institute (P38 million), Philippine Heart Center (P38 million), Philippine Institute for Development Studies (P27 million), and Lung Center of the Philippines (P22 million) received subsidies in August.

Other recipients were Center for International Trade Expositions and Missions (P16 million), Zamboanga City Special Economic Zone Authority (P8 million) and Southern Philippines Development Authority (P3 million).

In the first eight months of the year, the Treasury reported that the national government’s total subsidies to GOCCs stood at P81.17 billion, up by 2.4 percent compared with P79.26 billion in the same period last year.

For next year, the national government earmarked a record P162.55 billion in financial aid for GOCCs and government financial institutions (GFIs), up by 20 percent compared with the projected P135.51-billion disbursements this year.

The increase is attributed to the government’s non-recurring expenses on the conditional cash-transfer (CCT) program being facilitated by the Land Bank of the Philippines, which aims to support Filipino households that will be affected by the proposed tax reform package.

Aside from the CCT, the government has also tapped the Development Bank of the Philippines (DBP) to help in funding the planned public utility vehicle (PUV) modernization program.

The Land Bank and DBP are traditionally non-recipients of monetary aid from the national government as these two state-owned lenders are members of the so-called “Billionaires’ Club,” an elite class of GOCCs that declare P1 billion or more in dividends annually.

The budget department is allocating P25.62 billion in subsidies for Land Bank next year and another P1.13 billion for the DBP.

Source: business.mb.com.ph

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Filipino and Australian naval forces darted across the sea and landed on a Philippine wharf in a disaster-response drill Sunday that reflects their deepening security ties in a region prone to calamities, piracy and territorial rifts.

The Royal Australian Navy HMAS Adelaide crueses alongside landing crafts with Philippine Marines and Australian troops as they conduct a joint Humanitarian Aid and Disaster Relief (HADR) exercise off Subic Bay in northwestern Philippines Sunday, Oct. 15, 2017. The HMAS Adelaide, along with another Australian Navy ship, the HMAS Darwin, a guided missile frigate, are here for a goodwill visit aimed at strengthening relations between the two navies as well as maritime security and stability in the region. (AP Photo/Bullit Marquez)

Lt. Col. Daniel Turner of the Australian Defence Force said the naval maneuvers in Subic Bay, northwest of Manila, will strengthen the two countries’ ability to jointly respond to typhoons and other disasters when roads, bridges and ports are damaged or destroyed.

The drills reflect the strengthening security relations between the two U.S. allies despite Philippine President Rodrigo Duterte’s often antagonistic stance toward American security policy. Australia and the United States have deployed surveillance aircraft to help Filipino troops quell a disastrous siege by pro-Islamic State group militants in southern Marawi city.

During the maneuvers, more than 100 Philippine marines and Australian naval personnel took off from an Australian navy ship, the HMAS Adelaide, on board troop carriers then rushed to a port at Subic Bay, a former U.S. naval base. Two Associated Press journalists were allowed to witness the exercises from a helicopter.

When typhoons and floods happen, “traditional infrastructure is damaged and the only way we could get to the affected area is through helicopters and landing craft,” Turner said. “Our militaries can operate together, support those affected people.”

Australia signed a 2007 accord that allows its forces to train in the Philippines. Australia is the only country aside from the United States with which Manila has forged such a defense pact, commonly known as a status of forces agreement.

Subic Bay faces the South China Sea, where China, the Philippines and four other governments have long-unresolved territorial disputes, but Australian officials stressed that Sunday’s exercises were aimed only at improving the ability of Australian and Philippine forces to deal jointly with natural catastrophes.

Australia does not take sides in the disputes, but Captain Jonathan Earley, commanding officer of the Adelaide, said his government has an interest in keeping regional stability and the rule of law.

“What that includes is our ability to conduct freedom of trade, so trade is unimpeded, and that countries do have that ability to exercise freedom of navigation,” Earley said.

Source: abcnews.go.com

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SUBIC BAY FREEPORT—#OneSBMA and #StrongerTogether may just be hashtags used by employees of the Subic Bay Metropolitan Authority (SBMA) on social networking and microblogging sites, but they are considered powerful symbols of shared struggle, victory and hope among stakeholders in this bastion of investment and industry.

The hashtags, after all, embodied the common aspiration among various sectors in the Subic Bay Freeport that recently worked together to unify the one post that affected them all: the position of the SBMA chairman and administrator.

That post, now held by lawyer Wilma T. Eisma, who was first appointed SBMA administrator in December last year, presides over not only the length and breadth of the 67,452-hectare special economic zone, but also over more than 1,500 registered companies with $10 billion worth of investments and employing more than 115,000 workers.

Eisma was appointed by President Duterte to the unified chairman-administrator position on September 26, following half a year of leadership dispute with then-chairman Martin Diño.

The conflict not only threatened to gnaw at the insides of the 25-year-old agency and reverse its accomplishments in the past several years as the country’s biggest and most progressive free port, it also endangered the business of local and foreign investors here and the livelihood of free-port workers.

However, it also gave stakeholders of the Subic Bay Freeport a first-hand lesson in unity, and the importance of malasakit, or caring, for the common good, as a core value in economic enterprise.

In Photo: The Subic-Clark-Tarlac Expressway joins Central Luzon’s twin engines of economic growth.

Change of men

SBMA Administrator Wilma T. Eisma: “We found strength in a common battle and rediscovered solidarity under a common purpose.”

Those affected by the leadership conflict in SBMA point to Executive Order (EO) 340 as the root of the misfortune. The order, signed by President Gloria M. Arroyo in 2004, separated the position and powers of the SBMA chairman from that of the SBMA administrator, the original appointee under Republic Act 7227, which created the SBMA.

The split positions apparently worked well under two sets of appointees before: Chairman Francisco Licuanan and Administrator Alfredo Antonio from 2004 to 2006, and Chairman Feliciano Salonga and Administrator Armand Arreza from 2006 to 2011.

But that soon changed when Diño, popularly known as chairman of the Volunteers Against Crime and Corruption (VACC) and PDP-Laban’s surrogate presidential candidate for then Mayor Duterte, took over as SBMA chairman in October 2016.

At first, Diño exemplified in Subic the “change” that the Duterte administration has promised. Vowing to capitalize on the achievements of his predecessor and the support of President Duterte to make Subic the best free port in Southeast Asia, he won over the Subic constituency by promising to look after the interests of both the investors and the lowly workers.

But it soon became apparent that the former barangay captain from Quezon City had wanted to wield power also as administrator.

Just two weeks after his arrival in Subic, and as Malacañang sought nominees for the SBMA administrator post, Diño’s allies began calling for the consolidation of the SBMA chairmanship with the administrator position, pointing out that the appointment of separate officials to the two posts violated the law.

When then SBMA Deputy Administrator for Legal Affairs Randy Escolango was designated by the Palace as OIC administrator on the third week of October, there began a series of foil and counterfoil between the two officials.

In a memorandum dated December 12, 2016, Diño averred that, “In faithful compliance to the instructions of President Duterte, I have caused the institution of criminal as well as administrative cases against Atty. Randy B. Escolango relative to his claim that he was designated by the Office of the President as OIC Administrator and to his string of unlawful and unauthorized actions.”

At one point, Diño stopped all business transactions in the SBMA.

Escolango also fought back, voiding over 30 office orders and memoranda issued by the chairman for lack of authority, including the appointments of some 14 high-level consultants.

Escolango also voided what he called Diño’s “self-appointment” as officer in charge of the SBMA’s Law Enforcement Department, whose head was then on terminal leave prior to retirement.

Confusion

“The result was chaos in the service,” said Amethya dela Llana, manager of the SBMA Ecology Center, who was among the SBMA employees who had called out the chairman’s actions as unbecoming of an official.

The infighting at SBMA temporarily abated upon the appointment of Eisma as administrator in late December.

In their first “State of the Freeport” last April, Diño and Eisma outlined in broad strokes an ambitious program to expand the Subic Bay Freeport’s infrastructure, and then leverage the same to position Subic as a major production and distribution hub in the Asean region.

The duo then echoed the national mantra of “Build, Build, Build” to keep Subic Bay sustainable, as well as to help in national developmental efforts.

The following month, however, Diño again broke the spell by issuing Administrative Order 01-2017, which sought to create a task force under his office ostensibly to “inspect, monitor and faithfully implement the laws in the conduct of business and financial operations and collections” of the agency.

Eisma cried out that the creation of such a task force would interfere and encroach upon the power, function and duty of the administrator and CEO. She also lamented the accusation in Diño’s order that the SBMA was in dire financial straits and in danger of collapse.

With the outcry, the SBMA board of directors issued a letter on June 1 chiding their chairman for his utterances, saying that they “cannot support your action of issuing an administrative order well beyond the scope of your duties as chairman of the board, unilaterally declaring that the operations of SBMA are in danger of ‘financial collapse’ and creating a task force…without approval of the board.”

The last straw

This ensuing conflict sparked an investigation by the House of Representative on EO 340, which separated the position and functions of the chairman from that of the administrator.

It also galvanized the local community to action, voicing out their concerns on the issue.

In a joint manifesto, seven local chief executives in communities around the Subic Bay Freeport decried Diño’s actions and also expressed support to Eisma in the ongoing leadership tussle.

The manifesto signed by Bataan Governor Albert Garcia, Olongapo City Mayor Rolen Paulino, Mayor Antonio Joseph Inton of Hermosa, Bataan; and Zambales Mayors Jay Khonghun of Subic town, Estela Antipolo of San Antonio, Elvis Soria of San Marcelino, and acting Mayor Christian Esposo of Castillejos, declared “unwavering and unconditional support to the SBMA Administrator and Chief Executive Officer, Atty. Wilma T. Eisma”.

On June 8 the Subic Bay Freeport Chamber of Commerce headed by businesswoman Rose Baldeo wrote House Speaker Pantaleon Alvarez to say that “it would be for the benefit of the SBMA and its locators to have only one person for the position of SBMA chairman and administrator instead of separating the two.”

Baldeo added that the confusion caused by the separation of positions “runs contrary to the mandate of the SBMA to create a harmonious environment for the businesses to generate employment opportunities in and around the zone and to attract and promote productive foreign investments.”

Unity call

Upon assumption as the first woman SBMA chairman and administrator on September 26, Eisma promptly called the unification of the SBMA chairman and administrator positions as a victory for the Subic Bay Freeport.

“We all claim this victory today as stakeholders of the Subic Bay Freeport Zone who are cognizant of the vision for Subic as a haven for economic production in this part of the globe, and as a progenitor of inclusive growth in this part of the country,” she said in a statement.

“But in claiming this victory, we cannot forget our moorings: We won not because we have remained while others had to go; we won because we have seen a wrong and we decided—together—to set it right,” she added.

The SBMA official also said that while the conflict in the agency proved to be trying times for Subic stakeholders, it resulted in a firmer SBMA and Subic Bay.

“We emerged triumphant not only because we were grounded on truth and reason, but because we found strength in a common battle and rediscovered solidarity under a common purpose,” Eisma added.

One Subic

The return to just one top official for the SBMA has provided fresh hopes for business locators, workers, residents in the Subic Bay Freeport area.

“First, there is harmony because there is only one direction to take and there is no conflict; and second, there is also efficiency and things move faster,” Dela Llana said.

Then there is the new-found joy in that shared experience. “This is the reward that we get for undergoing that ordeal together—winning the struggle,” she added.

Last week, the Subic Bay Freeport Chamber of Commerce (SBFCC) also issued a statement congratulating Eisma for her appointment.

“Moving forward, the locators of Subic Bay expect many great things from Attorney Eisma, which is both a compliment and a heavy burden on her shoulders,” the SBFCC statement said.

“Being the chamber and the voice of the business community, we are here to support her endeavors that will improve the business environment of Subic. In the same breadth, we are also here [so] that her leadership and policies will be fair to all the stakeholders of the Subic Bay Freeport Zone,” it added.

Changes may be introduced in Subic, but the stakeholders will always opt for more of the same: more and better business.

Source: businessmirror.com.ph

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SUBIC BAY FREEPORT—Taiwanese construction and engineering firm MSK Group Work Inc. launched last Saturday a high-end beachfront condominium project at the Triboa Bay area in this free port, aiming to cash in on the growing expatriate sector in the economic zones of Subic, Clark and Bataan.

The project, to be known as the Triboa Majestic Bay Residences, aims to develop a “personalized palatial home by the sea” by building three types of luxury residences: four-bedroom luxury mansion units with in-suite sky garage at the Premium Ocean Mansion; one to two-bedroom units at the three-building Crescent Studio; and beachfront units at Sunbeam Condo.

The project will have 157 condominium units all overlooking Triboa Bay near the former Asia-Pacific Economic Cooperation (Apec) Villas, the high-end accommodations used by Asia-Pacific heads of states during the 1996
summit here.

Aside from condominium units, MSK will also build public facilities like a 5,000-square-meter atrium garden, basement parking spaces, outdoor swimming pools, business center, conference room, shops and restaurant, library, playroom, gym, yoga room and multimedia room.

MSK has initially taken over the former Apec Villas clubhouse, which will be an integral part of the beachfront condominium complex.

Company spokesman Kelly Uy said the firm has committed an investment of P2 billion for the project and will be selling the property with its seaside view as the major sales pitch.

Customers are expected to come from the A- and B-class market, especially Asian expatriates and other foreign nationals.

“Our pricing will be very reasonable, and will be competitive with prices in Manila. We know the challenges here, but with around 1,000 companies now in Subic, as well as those in Clark, we basically have a captive market and we believe the project will be sustainable in the long run,” Uy said.

Triboa Majestic Bay Residences will be the first residential project for the MSK Group, which is headed by brothers Michael, Simon and Kevin Su.

The firm, which has established its presence in Philippine construction business for almost 25 years now, had earlier committed P350 million to expand its operations in the Clark Freeport Zone, which includes subleasing warehouses and factories.

Among the guests in the project launch were Dr. Gary Song-Huann Lin, representative of the Taipei Economic and Cultural Office in the Philippines, and former Subic Bay Metropolitan Authority Chairman Roberto Garcia.

In his message, Lin said the MSK project has “good timing” because it coincides with the New Southbound Policy of Taiwan, which calls for greater economic and cultural ties with Southeast Asian countries, like the Philippines.

Lin also recalled that Taiwan was the first country to invest in the Subic Bay Freeport by developing the Subic Bay Industrial Park, which now houses 52 Taiwanese companies, and pointed out that Taiwan is now the fourth biggest investor-country in the Philippines.

Lin also praised the MSK Group for initiating a “unique” project, which he said has “an excellent location, a serene view and a historical value”.

Meanwhile, Garcia, under whose administration the project was conceived, processed and approved last year, described the project as an illustration of the “well-placed confidence of investors in Subic”.

He added that with a P3.9-billion budget from the national government for the further development of the Subic Freeport, more business activities would be generated in the freeport zone in the years to come.

Source: businessmirror.com.ph

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Senator Cynthia Villar is seeking the help of the Philippine Coast Guard (PCG) to boost the country’s agricultural sector and ease the lives of farmers and fisherfolk.

Photo by:philstar.com

Villar, chair of the Senate agriculture and food committee, said the PCG’s mandate not only in keeping maritime security but also in marine protection is tantamount to protecting the fisheries sector.

“There is a huge link between that and our agriculture sector and the future food security. We know that the fisheries sector is a big part of our agriculture sector,” said Villar during the launch of the PCG Auxiliary Eco Projects and Awarding of Fishery Livelihood Assistance in Subic Bay, Zambales recently.

Villar called for the strict enforcement of the Republic Act 10654 or the Act to Prevent, Deter, and Eliminate Illegal, Unreported and Unregulated (IUU) Fishing. She said the arrest of illegal fishers would help the sector since the penalties will be allocated for fishery law enforcement and assistance to poor fisherfolk.

She likewise stressed that there should be a continuous push for legislative measures that would help improve farmers and fisher folks.

Villar said agriculture contributes over 10 percent to the country’s Gross Domestic Product, and fisheries, she added, gives between 15 to 18 percent of the profit in the agriculture sector. She, however, said farmers and fisherfolk still comprise majority or 40 percent of Filipinos living below the poverty line.

Source:news.mb.com.ph

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