PIA Dispatch - Thursday, July 9, 2009

PGMA inspects new Guagua slaughterhouse

GUAGUA, Pampanga – President Gloria Macapagal-Arroyo checked this afternoon the ongoing construction of the new Guagua Municipal Slaughterhouse at Barangay San Agustin here to ensure that the new abattoir is complying with the standards set by the National Meat Inspection Commission (NMIS).

The expansion and development of the municipal abattoir is part of the President’s effort to improve and upgrade the Guagua slaughterhouse into a double “A” standard or classification set by the NMIS.

Municipal engineer Raul Naguit, in a project briefing, told the President that the old slaughterhouse does not conform to the NMIC standards and cannot accommodate the increasing demand.

He said the old facility has long been operating on a yearly provisional permit issued by the NMIC and has no water waste treatment equipment. The new slaughterhouse, he pointed out, is equipped with such requirement.

Naguit informed the President that the construction of the new slaughterhouse started last May 13 and is due for completion in November this year. The project will cost P29.3 million.

Once completed and becomes operational, the new slaughterhouse will be classified Double “A” NMIS Abattoir which can accommodate a projected average of 110 hogs and four cattles per day compared to old average of 100 hogs a day.


PGMA launches National Youth Service program

GUAGUA, Pampanga – President Gloria Macapagal-Arroyo launched here today the National Youth Service (NYS) program, one of the priority projects of the administration and the National Youth Commission (NYC) to underscore the importance of the youth in community action in the wake of the global economic crisis..

Addressing an enthusiastic crowd at the covered court of the Guagua East Central Elementary School in Barangay Sta. Filomena, the President lauded the youth and all agencies involved in the implementation of Executive Order No. 788, a policy that promotes the role of the youth in national service.

In her speech, she noted that E.O. 788 is the prompt response of the national government to avert the mitigating impact of the global financial meltdown.

The Executive Order tackles the need to involve the youth 18 to 24 years old in the national service program through the National Service Corps (NSC) and Youth Conservation Corps (YCC).

Under the National Service Corps, all unemployed and underemployed skilled youth or college graduates will be recruited by involved agencies to perform like a domestic “Peace Corps.”

She said the youth under the National Service Corps will undertake a two-year national service commitment either as educator and community service staff in exchange for a modest stipend or allowance.

The Youth Conservation Corps, on the other hand, is composed of unskilled or less educated youth, and will focus on environmental and infrastructure projects.

Such youth, the President said, will also undertake a two-year national service commitment with a modest stipend. The current program known as Out-of-School- Youth Serving Towards Economic Resiliency (OYSTER) shall be subsumed into the YCC, she added.

The President distributed a total of 56 Certificates of Employment to youth beneficiaries from the Department of Labor and Employment (DOLE) under the Youth Information Technology Opportunities (Youth-ITO) and Special Program for Employment of Students (SPES), Department of Public Works and Highways (DPWH) under the project OYSTER, Department of Environment and Natural Resources (DENR) under the Bantay Dagat and Bantay Gubat Programs, and Department of Social Welfare and Development (DSWD) under the Community Service Program, and Philippine National Police (PNP) project OYSTER.


Mindanao blasts under probe- Malacanang

Malacanang assured on Thursday that series of bombings in Mindanao is being investigated.

Deputy Presidential Spokesperson Anthony Golez said that all threats are firmly under control. He also described the incidents as the handiwork of terrorists and anarchists “bent on sowing fear and intrigue for some nefarious agenda.”

He said the government is not discounting the involvement of rogue members of the Moro Islamic Liberation Front (MILF) and the Jema-a Islamiyah, who may be using Mindanao as testing ground for their training in making improvised explosive devices.“

As government goes about its job of tracking down the culprits and protecting the public, what cannot be condoned are the attempts of some people to profit politically from these incidents,” Golez said in a press briefing this afternoon in Malacanang.

He pointed out that President Gloria Macapagal-Arroyo is very much focused on governance and the public’s welfare that linking her administration to the bombings to supposedly declare martial law “is just a sorry attempt of some malicious people to politically profit from such incidents.”

“Now the critics even go as far as to accuse the Palace of complicity in the bombing incidents, supposedly as an excuse to declare martial law. As with their other big lies, this preposterous claim is offered up with not a shred of evidence in support,” he said.

Golez asked the public to remain calm and vigilant as government is doing all to resolve the bombing incidents, protect the public and look after the welfare of those displaced by the violence.

“Let us not yield the floor to the cynics and the malicious manipulators of hidden agendas who are intent of maligning the President as usual. Let us show them and the rest of the world that we are better than that,” Golez said.


WHO commends DoH for anti-A(H1N1) efforts, adopts weekly reporting system of cases as recommended by WHO

The Department of Health (DOH) today expressed gratitude to the World Health Organization (WHO) over the commendation it gave to the government agency for its swift and tireless efforts in dealing with the novel virus A (H1N1).

The WHO letter dated June 30, 2009 and signed by WHO Regional Director Dr. Shin Young-soo put on record “my personal appreciation of the exceptional collaboration established between the Government of the Philippines and the World Health Organization in the fight against Pandemic H1N1 2009. I commend your leadership and tireless efforts in responding to this emerging threat to the health of the people of the Philippines”.

“We are very grateful that our efforts were recognized and didn’t go to waste. We appreciate that the WHO finds our response efficient and that it is confident on the quality of our laboratory diagnoses,” Health Secretary Francisco T. Duque III said.

The WHO letter further said that “Contact tracing has also been thorough, allowing the DOH to detect further cases and slow down the spread of the virus.

The efficiency of the response indicated to me that the Philippines has the fundamental capacity to detect and respond to the new influenza virus. I should add that WHO is also confident about the quality of the laboratory diagnoses carried out by the Research Institute for Tropical Medicine and about the epidemiological activities conducted by the National Epidemiology Center (NEC)”.

Meanwhile, Duque also said that the Philippines, as a member country of the WHO, will now be adopting the WHO recommended changes in the reporting of A (H1N1) cases.

According to the WHO, for countries already experiencing community-wide transmission, the focus of A (H1N1) surveillance activities must shift to reporting against the established indicators for the monitoring of seasonal influenza activity. Those countries are no longer required to submit regular reports of individual laboratory-confirme d cases and deaths to the WHO.

“The WHO will no longer be issuing global table updates that show the number of confirmed cases for all countries but will instead continue to document the global spread with updates describing the situation in newly affected countries,” Duque said.

The WHO said that as the pandemic evolves, the data needed for risk assessment are also changing and that at this point, its further spread is considered inevitable. It said that the increasing numbers of cases in many countries with sustained community transmission is making it extremely difficult to confirm them through laboratory testing.

Because the DOH is set to abide by the newly recommended reporting system of WHO for A (H1N1), it is now reviewing and adjusting its surveillance systems to fit the monitoring of the novel virus in its regular surveillance of Influenza-like illnesses (ILI) in the country.

Duque stressed that globally and locally, the novel virus has caused mild illness in the majority of affected patients with expected full recovery even without medical treatment. However, there are some cases that become serious especially if the patients have underlying pre-medical conditions. Like the other seasonal flu strains, A (H1N1) can cause severe viral pneumonias and other flu complications” Duque said.

“So, again, we are urging the public to be more vigilant in guarding their health against A (H1N1) despite its generally mild clinical manifestations in most of the cases reported in the country,” Duque stressed.

The Secretary said that such highly vulnerable conditions include uncontrolled diabetes, frank cardiovascular disease, chronic obstructive pulmonary disease, chronic liver and kidney disease. He added that those who are organ transplant recipients, immunocompromised, and suffering from other infections like HIV/AIDs and TB; pregnant women and the very young and the elderly are more at risk of developing serious cases of A (H1N1).

“We are stressing this point because of the first previously reported case of death in the country involving a patient with an incidental finding of A (H1N1). We now have to be more aggressive in targeting segments of patients with a high vulnerability to fatal flu complications,” Duque pointed out.

“We want to make it clear that high-risk groups, once they have the flu symptoms, should immediately go to their doctor. They should not wait for their symptoms to worsen because they are prone to many other infections such as our seasonal flu strains,” Duque clarified.

“We also advise parents and guardians to seek immediate professional help if they see danger signs in children and other family members which indicate rapid progression of the disease or a worsening of symptoms. Likewise healthcare providers should stick to the basic protocol of managing acute respiratory infections among children by being vigilant of these danger signs which include rapid breathing, excessive drowsiness, poor intake or dehydration. In adults, chest pain, prolonged fever or labored breathing should prompt warnings to see a doctor,” Duque reminded the public.

Meanwhile, Duque advised the public to continue following the recommendations of the DOH on proper handwashing, cough etiquette, and other hygiene practices.

“The best defense against A (H1N1) and other diseases is to boost your immune system. Most people can fight off this virus without special medications or hospitalization. You can stay at home and take supportive care like plenty of fluids, vitamins and bed rest,” Duque stressed.

In this connection, Duque strongly advised the public to be vigilant over advertisements or fraudulent sales promotion practices of food supplements, vitamins or other products that create an erroneous impression that the product concerned could cure or treat the A (H1N1) virus.

“It must be stressed that to date, there are no food supplements, vitamins or vaccines that cure or treat the novel virus,” Duque stressed.

“We are warning manufacturers and distributors of these products that any claim in their advertisements that it can cure or treat A (H1N1) can be an outright violation of Section 112 of the Republic Act No. 7394 (The Consumer Act of the Philippines), Bureau Circular 2007-002 (The Guidelines in the Use of Nutrition and Health Claims in Food), and Republic Act No. 3720 (Violating the Misbranding Provisions),” Duque said.

“We are encouraging the public to report to the Bureau of Food and Drugs (at 809-4390 local 1051) any advertisement or fraudulent sales promotion practices involving the above-mentioned products that create an erroneous impression that it could prevent, cure or treat the novel virus,” Duque concluded.


DBP-controlled Al-Amanah bank elects interim chairman & CEO

Shareholders of Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) unanimously elected accomplished bank executive Armando O. Samiaas interim AAIIBP chairman & chief executive officer during a special shareholders’ meeting held on Wednesday, July 8, at the DBP head office in Makati City. Samia replaces Jaime Panganiban who has resigned to attend to private business. The interim AIIBP chairman & CEO is the former head of DBP’s marketing (head office) sector, where he was responsible for taking the lead in major corporate lending, finance deals and underwriting issues.

The new interim chair said that AAIIBP is currently in discussion with foreign Islamic banks for possible tie-ups. He likewise said that AAIIBP employees will be undergoing extensive training to equip themselves with the right knowledge and understanding of Shariah banking. “We are sending a group of 15 employees to Malaysia next week to study Islamic banking because we want the bank to give special focus on this banking system.”

Prior to joining DBP, Samia was vice president and deputy general manager of the Bankers Trust Company, Manila Offshore Branch, where he headed sales and distribution of the branch's various products originating from corporate finance.

He joins the AAIIBP board composed of vice chairman Patricia A. Sto.Tomas and directors Reynaldo G. David, Rey Magno Teves, Ramon Durano IV, Samira Gutoc, Nabid Alfad Tan, and independent directors Abdul Hadjisalam, Al Haj and Ibrahim Mamao.

AAIIBP will elect the new members of its Board during its regular annual shareholders’ meeting on July 29, 2009 and the election of the new officers of the bank during an organizational meeting to be held immediately after the annual shareholders’ meeting.

Last year, DBP acquired full control of AAIIBP to help support the development of DBP’s initiatives for micro, small and medium entrepreneurs in Mindanao as well as to serve as the main remittance outlet for Muslims and Mindanao-based overseas Filipino workers.

AAIIBP is the first and only Islamic bank in the country whose mandate is to serve the banking needs of the Muslim community. It was formed as the Philippine Al-Amanah Bank in 1973 by virtue of PD 264 issued by then President Ferdinand Marcos. It was re-established as Al-Amanah Islamic Investment Bank in 2000 to promote and accelerate socio-economic development of the Autonomous Regions of Muslim Mindanao where the poorest provinces are located.

AAIIBP’s head office is located in Zamboanga City. It maintains an executive office in Makati City and 9 branches located in Makati City, Cagayan de Oro City, Cotabato, Davao City, General Santos City, Iligan, Marawi, Zamboanga, and Jolo.


DMCIHI declared highest bidder for Calaca power plant

DMCI Holdings Inc. (DMCIHI) was declared the highest bidder for the 600-megawatt (MW) Batangas (Calaca) Coal-Fired Thermal Power Plant in the negotiated sale conducted yesterday (08 July 2009) by the Power Sector Assets and Liabilities Management Corporation (PSALM).

By successfully selling the Calaca power facility, PSALM also breached the 70% targeted privatization level for generating assets in the Luzon and Visayas grids as one of the preconditions to the declaration of open access and retail competition stipulated in the Electric Power Industry Reform Act.

DMCIHI offered USD361,709,000 for the Batangas-based power plant to edge out Thailand corporation Banpu Power Limited.

Incorporated in 1995, DMCIHI is the firm that consolidates all construction business, construction component companies, and related interests of the Consunji family. Its core businesses include construction, real estate, and coal mining. DMCIHI owns 56% of Semirara Mining Corporation, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.

DMCIHI will be declared the winning bidder after PSALM verifies the accuracy, authenticity and completeness of all the bid documents that the consortium had submitted.

PSALM will then issue the Notice of Award to DMCIHI, officially signifying that the company is the winning bidder for the Calaca power plant.

The Calaca facility has been allocated a substantial 287-MW power supply contract, or about 48% of the plant’s rated capacity. This will provide the new owner a ready market for the electricity that the power plant will generate. The Manila Electric Company will assume the biggest portion of the contracted energy, which is equivalent to 169 MW.

In surpassing the 70% threshold through the privatization of the Calaca power plant, PSALM moved the Philippine electricity industry closer to the highly-anticipated era of open access and retail competition. This significant milestone could have been achieved in 2008 had it not been for the decision of Emerald Energy Corporation (EEC), formerly Calaca Holdco Inc., the winning bidder in the last round of the Calaca bidding held on 16 October 2007, to terminate its purchase of the asset.

With the privatization of the Calaca power facility, PSALM has now successfully bid out 18 plants. This translates to 2,767.23 MW operating capacity, or 73.24% of the 3,778.23-MW aggregate capacity of all generating plants in Luzon and the Visayas.


DOF eyes incremental revenue with proposed sin tax reform

The Department of Finance (DOF) is pushing for the passage at both houses of Congress of the reformed excise tax on alcohol and tobacco products to correct the weaknesses of the Republic Act 9334, while expecting a projected revenue increment of up to P19 billion on the first year of its implementation alone which is proposed to be put in place in 2012.

At the lower house, the DOF-proposed reform on alcohol and tobacco products excise tax, which is being sponsored by Representatives George Arnaiz, Pryde Henry Teves, and Jocelyn Limkaichong, already underwent committee hearings but remains pending at the House Committee on Ways and Means. On the other hand, Senator Panfilo Lacson, who is the chair of the Senate Committee on Ways and Means, is sponsoring the DOF proposal under Senate Bill No. 2980 which is still subject for committee hearing.

DOF explains that the multi-tiered RA 9334 needs to be restructured to align tax rates with that of neighboring countries as the Philippines has the lowest excise tax rates among Asian countries; to compensate for foregone revenues resulting from the implementation of certain laws (e.g., lower corporate income tax, high personal exemption, tax incentives under the PERA law and the National Tourism policy Act); and to improve the over-all credit rating of the country which comes along with improved revenue position.

As among its weaknesses, DOF points out that RA 9334 is prone to downshifting/ misreporting of consumption from high-priced and high-taxed brands t low-riced and low-taxed brands resulting in lower revenues. The current excise tax structure also needs to classify brands which create discretion for the taxing authority. The law is likewise eroded by inflation due to lack of automatic tax rate adjustment.

With the DOF-proposed excise tax restructuring, the agency is proposing the adoption of a unitary tax rate for each category of alcohol and tobacco products. For cigarettes and distilled spirits, the unitary rate will be phased-in a period of three years, respectively, while for beer, it will be immediate. The phasing period will commence in 2012.

Under the proposal, a unitary rate will be indexed using a relevant price index for tobacco and alcohol.

With the revenues from the excise tax, after the reform have been put into effect, the proposal seeks to allocate a portion of it to a trust fund for the transitional guaranteed income of farmers who are shifting to other crops.

In response to queries why the government is seeking to increase the excise tax when there is so much smuggling and tax leakage in the current system, the DOF reasoned that the government is mindful of the smuggling and tax leakage in the country. In fact, it has already put in place several programs to address these. But as characteristic of administrative measures, it will take a little more time to bear fruit. DOF says, the country needs to raise revenues now to strengthen its fiscal position amidst continuing pressure from the global recession.

With the threat of economic recession in the country, the DOF explains that the government has to have more revenues to pump-prime the economy. This, as it has been determined that public spending has grater impact on growth than tax cuts, with greater public spending creating more employment.

The DOF is also allaying fears of some legislators that tobacco farmers will be displaced due to lower demand as a result of the tax reform, saying, a system will be designed with tobacco farmers that would provide them with guaranteed income from incremental revenues from the reform, so they can be assisted during the transition period as they shift to planting other crops.