Better budget execution needed to achieve growth target – Moody’s

 General
Feb 042015
 
Better budget execution needed to achieve growth target – Moody’s

MANILA, Philippines – Moody’s Investors Service said Philippine economic growth this year may not reach the government’s “ambitious” goal without an enhanced budget implementation. The government’s ambitious growth target may be difficult to achieve in the absence of more effective budget execution,” Moody’s said in a report published yesterday. The domestic economy expanded by 6.1 percent last year, slower than the  7.2 percent growth in 2013 and short of the government’s 6.5 to 7.5 percent target. Following the surprise 6.9 percent growth in the last quarter of 2014, the government vowed to accelerate public spending, which has dragged down growth especially in the third quarter. The government hopes to grow the economy by seven to eight percent this year and the next. “While slower public spending weighed on overall real GDP (gross domestic product) growth in 2014, the private sector has maintained a relatively rapid pace of growth,” Moody’s said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “In particular, the resilience of private investment portends the sustainability of higher growth relative to peers over the next two years,” the debt watcher said. Moody’s sees Philippine economic growth to settle at 6.5 percent this year, below the government’s goal. The Philippines enjoys a Baa2 rating with a stable outlook from the debt watcher. “The Philippines’ institutional strength — as indicated by cross-country surveys of institutional quality — has improved in recent years. Moreover, the central bank has continued to bolster its track record of inflation management and financial stability,” Read More …

DTI mulls proposal to allow domestic oriented firms in ecozones

 Economy
Feb 042015
 
DTI mulls proposal to allow domestic oriented firms in ecozones

ROSARIO, Cavite, Philippines – The Department of Trade and Industry (DTI)  is studying a proposal to allow firms catering to the domestic market to locate in the Philippine Economic Zone Authority’s (PEZA) economic zones. Trade Secretary Gregory Domingo said in a press conference during the tour of CS Garment, Inc.’s facility yesterday the DTI is looking into a proposal from the PEZA to have firms catering to the domestic market locate in the agency’s economic zones. “We’re actually in the midst of formulating a policy, but I don’t know how long it will take,” he said, noting that details on the taxation have to be ironed out. At present, locators in the PEZA’s ecozones are required to have the bulk or 70 percent of their production for export. When PEZA-registered firms sell goods to the domestic market within the 30 percent limit, they pay only the duties and taxes on the imported raw material. Domingo said there is a need to study the tax treatment to ensure a level playing field as firms from Southeast Asia could export goods to the country at zero duty. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “If we assess them (firms catering to the domestic market) the regular duty rate, then we are in fact handicapping our own enterprises against our Asean (Association of Southeast Asian Nations) neighbors because they could come in duty-free,” he said. PEZA director general Lilia De Lima told reporters the government is considering providing an incentive of Read More …

Grand Plaza Hotel seeks more ways to resolve tax issue

 Economy
Feb 042015
 
Grand Plaza Hotel seeks more ways to resolve tax issue

MANILA, Philippines – Grand Plaza Hotel Corp., the company behind Heritage Hotel Manila, is seeking further remedies to resolve its alleged P508-million tax liability with the Bureau of Internal Revenues (BIR). In a disclosure to the local bourse, the hotel operator said its board of directors has directed its tax counsel to study further solutions in connection with the BIR’s denial for a reinvestigation and recomputation of its alleged tax liability stemming from the agency’s 2008 tax assessment. “The corporation’s tax counsel is studying further administrative and/or legal remedies in respect of the tax assessment,” Grand Plaza said. Grand Plaza said it received in 2013 a collection letter from the BIR for its alleged deficiency income tax, value-added tax, expanded withholding tax, withholding tax on compensation and documentary stamp tax for the year 2008. The total amount stood at P508.10 million, consisting of P262.58 million for basic tax and interest of P245.42 million from January 2009 to Sept. 30, 2013.    The hotel operator said it asked the BIR for a reinvestigation and recomputation of the amount but has been denied of such. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Grand Plaza owns and operates Heritage Hotel Manila, a 450-room deluxe hotel with a casino, restaurants, function halls and ballrooms. The company’s main source of income is revenue from its hotel operations. As of the first nine months last year, the listed firm’s total revenue dropped to P334.75 million from P451.79 million during the same period the previous year.

Expert says global oil prices likely to rise again

 Economy
Feb 042015
 
Expert says global oil prices likely to rise again

MANILA, Philippines – Global crude prices are likely to go up again but not as high as they used to be, the chief energy specialist of International Finance Corp. (IFC) said in a press briefing yesterday.  On the sidelines of an energy regulation forum organized by the Royal Norwegian embassy in collaboration with the Philippine Norway Business Council, the IFC’s Tonci Bakovic said oil prices will come back up “not to the prices that they were but they will.” Department of Energy Undersecretary Zenaida Monsada also said it was difficult to say when prices would move up again. She said while there is still a supply glut in the global crude market, there are also uncertainties such as the strike of oil industry workers in the United States that may indeed push prices up albeit slightly. There are reports that oil workers are on strike, marking the biggest strike in history. According to the BBC, US union leaders launched on Sunday a large-scale strike at nine refineries after failing to agree on a new national contract with major oil companies. “It marks the first nationwide walkout since 1980 and impacts plants that together account for more than 10 percent of US refining capacity,” the report said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Members of the United Steelworkers Union (USW) have called on oil companies to improve conditions in the workplace instead of being too greedy. As for local pump prices, oil companies raised local pump prices two Read More …

BIR hoping to acquire another MCC grant

 Economy
Feb 042015
 
BIR hoping to acquire another MCC grant

MANILA, Philippines – The Bureau of Internal Revenue is hoping to secure another grant funding from the Millennium Challenge Corp. to help bankroll the full computerization of its operations and reduce opportunities for corruption. The MCC, an independent US aid agency that is helping lead the fight against global poverty, extended a $434 million financial aid to the Philippines in 2010.  Of that amount, P54.3 million went to the BIR to shore up the agency’s revenues and modernization its collection system. With the Philippines qualified for a new five-year grant from the MCC, BIR commissioner Kim Henares is hopeful that the agency would once again be tapped as a beneficiary of the compact. MCC was created by the US Congress in 2003 to provide multi-year economic assistance through a competitive selection process to developing nations. The Philippines garnered high scores in the US aid agency’s scorecard for fiscal year 2015, making it eligible for a second grant. The MCC scorecard measures a country’s performance peers based on independent, third party indicators that fall under three categories — economic freedom, investing in people and ruling justly. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Finance Secretary Cesar Purisima earlier said the  “Philippines’ eligibility adds to the virtuous cycle we began with good governance in our bid to promote inclusive, sustainable growth.” The BIR has identified 27 priority programs this year to further boost collections and meet its revenue target of P1.703 trillion. One such initiative is the establishment of an Read More …

FBI: Marwan 'possibly killed' in PHL police assault

 News
Feb 042015
 
FBI: Marwan 'possibly killed' in PHL police assault

WASHINGTON – DNA tests indicate one of the United States’ “most wanted terrorists,” Zulkifli bin Hir, also known as Marwan, was possibly killed in a raid by police in the Philippines last week, the FBI said on Wednesday. The results of the tests conducted by the FBI “do not provide absolute identification,” said David Bowdich, assistant director for the FBI’s Los Angeles field office. Bowdich said a sample of biological matter gathered from the scene of the Jan. 25 raid and analyzed by the FBI resembles bin Hir’s DNA. Further tests are being carried out to fully verify the identity of the sample. The FBI had offered $5 million for the arrest of bin Hir, a Malaysian member of the al Qaeda-linked Jemaah Islamiah militant group behind numerous bombing attacks in the Philippines. The raid to arrest bin Hir and another militant went awry, and 44 police were killed. The FBI said it had no prior knowledge of the raid. The clash shattered a three-year ceasefire between Philippines police and Muslim rebels in the south of the country. It also dealt a temporary setback to peace talks, Manila’s chief peace negotiator said on Saturday, appealing for renewed efforts to keep the process on track.  — Reuters

Family of SAF commando bewail mutilated state of remains of their kin

 News
Feb 042015
 
Family of SAF commando bewail mutilated state of remains of their kin

Relatives of one of the “Fallen 44” Philippine National Police Special Action Force commandos bewailed the mutilated state of the body of their kin.  The family of Police Inspector Joey Gamutan, whose remains lie in his hometown Zamboanga City, said that hands and legs of the SAF member were mutilated. He was also almost beheaded.  “Sana ‘yung binaril, wala na. ‘Wag na ‘yung ano pa, inano ‘yung leeg, pinutol ‘yung mga braso nila doon. Kung hindi ‘yun ginanoon sa punerarya, parang gi-repair lang ‘yung kanyang katawan, wala na ‘yung ulo niya,” Gamutan’s uncle Rodrigo Sakristan said in GMA News’ TV newscasts on Wednesday.  “Ang hihingiin ko lang sa ating gobyerno, bigyan naman nila ng hustisya ang pangyayari,” his father also said.  Gamutan was part of the special unit sent to Mamasapano, Maguindanao to serve arrest warrants against Malaysian terrorist Zulkifli bin Hir alias Marwan and Filipino bomb maker Abdul Basit Usman on January 25.  But they got engaged in a firefight against Moro Islamic Liberation Front, Bangsamoro Islamic Freedom Fighters, and private armed groups.  — Trisha Macas/ELR, GMA News

Napeñas: Claims of lack of coordination put PNP commandos in bad light

 News
Feb 042015
 
Napeñas: Claims of lack of coordination put PNP commandos in bad light

The suspended head of the Philippine National Police-Special Action Force apparently took exception to the claims of the Armed Forces that there was inadequate coordination on the part of the police commandos that resulted in the huge number of casualties during the Mamasapano operation.  Director Getulio Napeñas said the PNP-SAF went by the rules that say coordination may be made before or during a mission. He said he would have kept silent until AFP officials made claims that apparently put the police in bad light. He added that the PNP-SAF repeatedly sent the coordinates of the embattled commandos to the military in the area. This was in contrast to the military’s claim that it was ready to assist in the operation but couldn’t do so because it was unaware where the commandos were. “Minabuti ko na hindi muna magsasalita dahil  gusto kong hintayin, bigyan natin ng galang yung board of inquiry pero dahil sa nga statements na lumabas ngayon lang na sinisira na yung puri ng director ng SAF pati na yung SAF, at boung kapulisan, kapag hindi ako magsasalita, magkakaroon ng public opinion,” Napeñas said. “Magse-set  in yan. Para magkaroon lang ng balance at sana amg pinakamaganda ay intayin natin yung resuta ng board of inquiry para sag anon yung ang magpapatunay kung ano ang tunay na nangyari,” he added. He asked the public to give due credit to the police commandos in the operation that netted the death of suspected international terrorist Zulkifli bin Hir alias Marwan. “Nais Read More …

PHL files two diplomatic protests over China’s harassment of Pinoy fishers

 General
Feb 042015
 
PHL files two diplomatic protests over China’s harassment of Pinoy fishers

The Philippines on Wednesday lodged two diplomatic protests against China’s alleged harassment of Filipino fishermen off the Manila-claimed Scarborough Shoal in the South China Sea and its illegal harvest of endangered species in the same area. In a statement, the Department of Foreign Affairs said the diplomatic notes were handed to representatives of the Chinese Embassy in Manila. Citing a report from the Philippine Coast Guard, the DFA said three Philippine-flagged fishing vessels – F/V OG Barbie, F/V Ocean Glory 2, and F/V Ana Marie – “were intentionally rammed” by Chinese Coast Guard Vessel 3412 on January 29 at the shoal, “causing damage to the vessels and endangering the lives and safety of the Filipino fishermen on board.” The fresh incident shows the fragile situation in the South China Sea amid efforts from the Philippines and China to restore ties that have been marred by years-long territorial conflicts. Scarborough, located 124 nautical miles from Masinloc town in Zambales and 472 nautical miles from China’s nearest coastal province of Hainan, is called Huangyan Island by the Chinese. Manila and Beijing figured in a dangerous standoff in the area 2012. The stalemate temporarily ended when President Benigno Aquino III ordered Philippine vessels facing off with Chinese ships to withdraw due to bad weather. However, China never left the area and even roped off the entrance to the shoal to prevent Filipino fishermen access and shelter to its vast lagoon. In its protest, Manila maintained that “Philippine fishing vessels have been routinely, continuously, Read More …

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