DOLE: Legislated wage hike to cause salary distortion
BY GERARD NAVAL
LABOR Secretary Bienvenido Laguesma yesterday said the proposed P100 legislated wage hike for minimum wage earners in the private sector is set to cause wage distortion, like wage orders issued by the Regional Tripartite Wages and Productivity Boards.
“There is what you call the principle of wage distortion whenever there is an increase in the minimum wage,” he said in a radio interview.
“Sometimes, this chain reaction in wage levels even reach the managerial level,” he added.
Laguesma said companies will face wage distortion if the bill approved by the Senate on Monday is passed into law.
According to DOLE, wage distortion occurs when usual differentials in wage rates between groups of employees in an establishment are drastically reduced or eliminated due to mandated wage increases.
Laguesma said some 8 million employees may experience wage distortion but may “indirectly benefit” from it if the distortion is addressed.
Fixing wage distortion is necessary, he said.
“As a responsible employer, you would provide additional salary to those above the minimum wage so that you can maintain their being industrious and their concern for the company,” he said.
The National Wages and Productivity Commission (NWPC) has said wage distortions is crucial in terms of maintaining equity, boosting employee morale, and fostering a productive and harmonious workplace.
Meanwhile, the NWPC said minimum wage earners in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) are set to have bigger take home pays starting February 28 as the P20 wage order issued on February 7 is set to take effect.
The NWPC said the minimum wage rates in BARMM will range from P316 to P361.
Wage Order No. BARMM-03 set the minimum wage rate in Cotabato City at P361 for non-agricultural workers and P336 for agricultural workers.
In the provinces of Maguindanao del Norte, Maguindanao del Sur, Lanao del Sur, Basilan, Sulu, and Tawi-Tawi, the new floor wage is P336 for non-agricultural workers and P326 for agricultural workers.
For the Special Geographic Area, the minimum wage rate provides P341 for non-agricultural workers and P316 for agricultural workers.
Leyte Metropolitan Water District lost P198.68M in 2023 — auditors
BY PETER TABINGO
THE Leyte Metropolitan Water District (LMWD) lost 7.96 million cubic meters of water in 2023 equivalent to 35.7 percent of its total water production for the year, which was way beyond the 20 percent maximum acceptable level on non-revenue water (NRW) losses set by the Local Water Utilities Administration (LWUA).
This was disclosed in the 2023 Compliance Audit Report released by the Commission on Audit (COA) on February 21, 2024, but a printed copy of which was submitted to the office of LMWD general manager Ronnie Cornico on January 31 this year.
The COA said the NRW is a key performance indicator of a water district’s efficiency in terms of operational and financial performance, noting that a lower NRW means an increase in revenues and a higher water availability for consumers.
An audit of the water utility was conducted to ascertain compliance with the LWUA Memorandum Circular No. 004-10 which requires all water districts to lower their NRW from 25 percent to 20 percent.
LMWD’s water distribution is being run by Primewater based on a joint venture agreement signed in 2019.
“The Department Manager for administrative services of LMWD explained to the audit team that the NRW losses was largely due to leakages from the old and dilapidated distribution pipes,” the auditors said.
LMWD supplies water to the municipalities of Dagami, Tolosa, Tanauan, Palo, and Tacloban City as well as parts of the municipalities of Tabon-Tabon, Sta. Fe and Pastrana.
In 2023, the water district reported a supply of 22.333 million cubic meters, but its total billed water only accounted for 14.37 million cubic meters.
The balance of 7.96 million cubic meters was reported as non-revenue water, amounting to P198.68 million, that could have been added to the LMWD’s income.
A per-month breakdown of the water supply, billed flow, and non-revenue water showed LMWD failed to meet the LWUA’s recommended level of NRW in all 12 months of 2023, with worst numbers posted in October (39 percent) and December (38.9 percent).
“We recommended and management agreed that LMWD [should] request Primewater to employ a more efficient and effective strategic measures to decrease the NRW rate to 20 percent pursuant to the LWUA memorandum circular,” the audit team added.
Cigarette, e-vape makers told to follow tobacco control rules
BY RAYMOND AFRICA
SEN. Pia Cayetano yesterday prodded cigarette makers and e-vape producers to comply with regulations of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) so the country will no longer be given the “Dirty Ashtray” award.
“Bakit tayo nagkaroon ng (why did we get an) Dirty Ashtray award? Why would we want to call out those influenced by lobbying for the tobacco industry? The criteria to earn this award is when public officials succumb to, or when the government accepts, supports, or endorses policies or legislation in collaboration with the tobacco industry,” Cayetano said during the Blue Ribbon Committee hearing.
The award is given by the Global Alliance for Tobacco Control, a civil society watchdog. It is described as a “public shaming tool that calls out countries influenced by lobbying from the tobacco industry.” The award was given during the 10th session of the Conference of Parties (COP10) to the WHO FCTC held in Panama City earlier this month.
According to the Southeast Asia Tobacco Control Alliance, the Philippines received its first Dirty Ashtray award at the COP4 but was redeemed by an “Orchid Award” at the COP5 when it excluded tobacco industry representatives from its delegation.
At the COP9 in 2021, the country was given three Dirty Ashtray awards.
Cayetano chided the Philippine delegation members to the COP10, saying they opted to do nothing instead of advocating better health for Filipinos by having tobacco and e-vape products tested so its contents and emissions can be regulated.
Cayetano said based on the WHO FCTC regulations, Article 9 deals with the regulation of the content of tobacco products, while Article 10 deals with product disclosure.
She said the people have the right to be informed of the contents of e-vapes as they were marketed as an alternative to tobacco products but without proper health warnings. She added that some tobacco producers also sell vapes by saying they are better than cigarettes.
E-vapes are under the control of the Department of Trade and Industry.
“The WHO framework says you need to disclose. The people must know the contents of vapes. Does it contain acids? What chemicals are present in vapes? I don’t know. So, we should know,” she said in Filipino.
She said the Department of Health can help in testing the vape products.
Cayetano also asked why the Philippine delegation to COP10 had the highest number of participants, at 34, bigger than that of China and Russia.
Senior Deputy Executive Secretary Hubert Guevarra, who was the head of the Philippine delegation to the COP10, said that he, too, was “surprised” by the number of delegates.
Guevarra said the list of delegates has been made “even before probably I came on board” late September last year.
“Madam chair, when I heard that there’s a huge number of participants to attend, the first thought that came to my mind was the fact that, of the importance of COP10 and its reason why we had to have all agencies of government involving public health, including maybe tobacco association to be participants in COP10,” he said.
Guevarra also said it was his first time to head the delegation since he was appointed senior deputy executive secretary.
“So, I thought it was a regular thing, that actually we have a whole of government approach… maybe I should say medyo (it was somehow) exaggerated,” he said.
Cayetano said the delegation could have been that big “because it is a tobacco lobby.”
She said the “tobacco lobby” was the reason the Philippines was given the Dirty Ashtray award.
Sen. Alan Peter Cayetano, during the hearing, slammed the country’s push for a “balanced approach” on the tobacco industry, saying the reality is that Filipino tobacco farmers earn a tiny fraction compared with what the tobacco moguls get.
“Let’s not say we are protecting the tobacco farmers here,” he said. “Only P1 billion goes to the farmers but P159 billion goes to the tobacco capitalists.”
He said the country spends P300 billion a year on health-related efforts and the tobacco industry is making P160 billion a year.
“This means we are spending P140 billion over what the industry is making,” he said.
Cayetano arrived at the calculation after he asked National Tobacco Administration (NTA) Chief Belinda Sanchez for data such as how much the farmers and the tobacco industry are earning annually.
He also asked Health Undersecretary Lilibeth David for statistics on how much the country spends to curb tobacco-related diseases.
Sanchez said there are at least 20,000 families involved in tobacco farming. She said their average income is at P50,000 a year, while the tobacco industry earns P160 billion annually.
Cayetano urged government to have a shift in policy to support tobacco farmers.
“We can help the farmers to plant something else. Marami pong technology ang Thailand, Vietnam, Israel. We have the money to support the farmers, ” he said.
He also said providing P10,000 per month to farmers will only cost the government P2.4 billion per year.
Cayetano stressed the need to restrict the tobacco industry, which includes vape and e-cigarette products, as hundreds of Filipinos die daily due to smoking.
7 SAF men linked to rebels’ killing surrender
BY VICTOR REYES
SEVEN members of the PNP Special Action Force (SAF) accused of murdering two alleged New People’s Army rebels 14 years ago surrendered recently, the PNP Integrity Monitoring and Enforcement Group (IMEG) said yesterday.
Latest to surrender were Captains Gilbert Asuncion and Orlando Rosales Jr, and Master Sergeant Dante Baloran who gave up on February 13 at the IMEG headquarters in Camp Crame.
On February 11, Captain Justin Anogue also surrendered at the IMEG headquarters.
On the same day, Master Sergeants Joseph Chumawar Jr and Israel Lucob surrendered in Mabalacan City and Angeles City, both in Pampanga, respectively.
Staff Sergeant Quill Bay-an, who has gone on absence without official leave, surrendered in Benguet on February 8.
The surrender came after arrest warrants were issued against them for two counts of murder with no bail recommended.
The cases were filed in connection with the alleged murder of two communist rebels in Sitio Lagyo, Barangay Puray in Rodriguez, Rizal in 2010.
IMEG said the seven surrendered “because they have trust and confidence that the group (IMEG) will implement the law with outmost integrity.”
The seven are detained at an IMEG custodial facility in Camp Crame.
Agusan testing water samples after over 200 residents fell ill
BY VICTOR REYES
THE Agusan del Sur provincial government yesterday clarified reports that residents of a barangay in Esperanza town were downed by food poisoning, saying authorities are looking at contaminated water as the possible cause of vomiting, stomach ache, and lose bowel movement of the 216 victims.
Earlier reports said the poisoning incident in Barangay Tandang Sora was traced to food distributed by the Philippine Red Cross (PRC)
“This was clarified by the provincial health office, that it’s not definite this was due to food poisoning,” Alexis Cabardo, information officer of the provincial risk reduction and management office, said in Filipino during a radio interview.
He said water samples are undergoing laboratory testing.
“We suspect that busted water pipes contributed to the contamination of water,” Cabardo said, noting the barangay was flooded last week due to rains. In fact, he said, some areas remained flooded as of yesterday.
Cabardo also said the PRC gave similar food to residents of the nearby San Luis and Talakugon towns in the past days, through its Hot Meals on Wheel program, and no case of food poisoning was reported in the two towns.
“It’s only in this barangay where we had an incident. Out of the more than 1,000 residents fed (by the PRC in the three towns), it’s only the 216 (in Barangay Tandang Sora) who got sick,” said Cabardo.
Cabardo said the provincial government has deployed a water filtration equipment to the barangay to ensure that the residents will have safe drinking water.
He also said the affected residents remained confined in different hospitals as of last Tuesday.
Cabardo said he expects some of the patients to be cleared to return to their homes later yesterday.
11 soldiers awarded Gold, Silver Cross medals
BY VICTOR REYES
ELEVEN soldiers were awarded Gold and Silver Cross medals yesterday for successful operations against members of the terror group Daulah Islamiyah-Maute Group (DI-MG) that is behind the December 3 bombing at the Mindanao State University (MSU) in Marawi City.
The blast killed four persons dead and injured 50 others.
Armed Forces chief Gen. Romeo Brawner Jr awarded the Gold Cross Medal to six soldiers and the Silver Cross Medal to five soldiers during a visit at the headquarters of the Army’s 103rd Brigade in Marawi City.
Three of those who received the Gold Cross Medal, the third highest military decoration in combat, were Sgt. Angel Aries Tolentino, Cpl. Jobert Dayhop, and Pvt. John Lloyd Villanueva.
Four of the Silver Cross awardees were Col. Billy Dela Rosa, Lt. Col. Marion Cayat, 1Lt. Dycee Anne Timeka Barcelon, and Pvt. Jabal Nur Gumama.
The military has taken a key role in going after the perpetrators of the MSU bombing. Authorities said the DI-MG carried out the attack in retaliation to setbacks it suffered from military operations.
The most prominent military accomplishment in the continuing effort against the MSU bombers was on January 25 and 26 in Piagapo town in Lanao del Sur where troops engaged DI-MG members in a series of clashes, leading to the death of nine DI-MG members, including two who were directly involved in the bombing.
DI-MG emir or leader Khadafi Mimbesa, who masterminded the attack, was initially injured in the clashes but managed to escape. Last week, the military reported that a DI-MG member who recently surrendered corroborated earlier military intelligence information that Mimbesa died from his injuries.
“These awards symbolize their hard work, dedication, and professionalism that they showed as they served not only the people of Marawi City, Lanao Del Sur, and Lanao del Norte, but the entire Philippines as well,” said Brawner.
“What you do here has strategic and national value and the world is watching how we address terrorism,” he added.
On Tuesday, Brawner was at the headquarters of the 1st Infantry Division in Zamboanga del Sur to visit the wake of six soldiers who died in a firefight with DI-MG members in Munai, Lanao del Norte last Sunday.
Brawner assured the bereaved families of the soldiers of the AFP’s full support and assistance.
The six soldiers died during skirmishes with 15 DI-MG members in Barangay Ramain, Munai last Sunday. Two DI-MG members also died.
30-day break seen improving performance of teachers
BY WENDELL VIGILIA
AN official of the Department of Education yesterday defended the scheduled 30-day break of teachers in June, saying it may even improve the country’s performance in the next Programme for International Student Assessment (PISA) because it would give teachers the much-needed uninterrupted time to rest after the end of the current school year.
“(Ito’y) para ma-enjoy talaga nila ang vacation nila dahil in the past, marami tayong mga DepEd-initiated activities pa rin during the summer season, during the two-month break. Nababawasan ang time ng mga mag-aaral, lalo ng mga teacher, na magpahinga after each school year (This is for them to really enjoy their vacation because in the past, we had many DepEd-initiated activities during the summer season, during the two-month break. It reduced the time of students, especially teachers, to rest after each school year),” DepEd Assistant Secretary Francis Bringas told a television interview.
Vice President and concurrent Education Secretary Sara Duterte announced last September that the DepEd approved the 30-day break for this year’s school calendar, which means that all activities with voluntary participation is scheduled after the break.
Bringas said Department Order 003, which gives the teachers the 30-day break from June 1 to 30, also has the potential to help the country improve its performance in international educational evaluations like PISA.
“In fact, makakatulong siguro ito dahil sa pag-aaral sa ating mga researchers, nakikita na overworked ang ating mga teachers at masyadong congested ang ating curriculum na napapagod ang mga mag-aaral (In fact, this would help because based on the study of our researchers, it is found that our teachers are over-worked, and our curriculum is too congested that the students get tired). So, this is a much-welcome break for all of them),” he said.
The DepEd has already adjusted the end of the school year 2023-2024 by shortening it as part of a gradual shift to the old school calendar with April-May as the summer vacation, which means that end of this school year will be on May 31, 2024, while School Year 2024-2025 is scheduled to start on July 29 until May 16, 2025.
DepEd projects classes to begin reverting to mid-June by School Year 2026-2027, with the school break starting by the first week of April.
PDEA: P32B worth of illegal drugs seized
BY VICTOR REYES
NEARLY P32 billion worth of illegal drugs had been seized in the campaign against illegal drugs during the administration of President Marcos Jr, the Philippine Drug Enforcement Agency (PDEA) reported yesterday.
The illegal drugs, mostly shabu, were seized from July 1 last year to January 31 this year during 58,496 anti-drug operations conducted throughout the country, PDEA said.
The seized illegal drugs included 4,317.46 kilos of shabu worth P29.35 billion based on the market value of P6.8 million per kilo.
The seized drugs also included 50.47 kilos of cocaine, 54,013 ecstasy tablets, and 3,197.19 kilos of marijuana.
PDEA said 79,841 suspects, including 5,366 high-value targets, were arrested while a clandestine laboratory and 856 drug dens were dismantled.
The P31.98 billion worth of illegal drugs seized improved from P31.07 billion as of December 31 last year.
As of December 31, PDEA said, it seized 4,212.24 kilos of shabu, 48.02 kilos of cocaine, 54,013 pieces of ecstasy, and 3,158.98 kilos of marijuana.
A total of 28,247 barangays have been cleared of illegal drugs with 7,264 other barangays subject to drug-clearing operations.
Meanwhile, PDEA and PNP operatives dismantled a drug den in Barangay Magpapalayoc in San Leonardo, Nueva Ecija on Monday, during a buy-bust operation which also resulted in the arrest of five drug peddlers, identified as Roy Oyan, 35; Roger Velasquez, 58; Gemma Mingala, 48; John Merick Reyes, 26; and Ian Dela Cruz, 26.
Seized from the suspects were nine heat-sealed plastic sachets containing some 15 grams of shabu worth P103,000, assorted drug paraphernalia, and the buy-bust money.
“A tip from the neighborhood that illegal drug activity was taking place in the area that prompted the operating teams to launch the operation,” PDEA said in a statement.
SC: Disinis only owe P100M to govt for mothballed BNPP
BY RAYMOND AFRICA
THE Supreme Court (SC) has affirmed with finality its earlier decision ordering the estate of the late businessman Herminio Disini to pay P100 million in damages to the government for the mothballed $2.3 billion Bataan Nuclear Power Plant (BNPP).
In its modified resolution made public on February 20, the High Court denied the appeal filed by the government in October 2021 where it insisted that that the Disinis should partially reimburse the settlement fees paid by the government as ordered by the Sandiganbayan.
Disini brokered the nuclear power plant project between the Philippines and the American nuclear power company Westinghouse Electrical Corp. The construction of the nuclear power plant started in 1975 and was completed in 1984. But the late President Corazon Aquino stopped its operations, citing safety issues.
After it was mothballed, the government filed a suit in the US against Westinghouse and Burns & Roe for bribery, fraud, and racketeering which was dismissed by a New Jersey court in 1993.
In 1995, the administration of Fidel V. Ramos signed a $100 million settlement agreement with Westinghouse.
Disini died of organ failure in June 2014
In its ruling, the SC acknowledged that the original P1 billion temperate damages which it imposed on the Disinis in its January 25, 2021 decision was “excessive and out of proportion, and must, therefore, be reduced.”
“As regards the amount of damages (we) imposed, we find it imperative to revisit our pronouncement. To recall, we held that the Republic has duly proved by preponderance of evidence that the petitioner (Disini) acquired ill-gotten wealth in the form of commissions from Westinghouse Electric Corp. and Burns & Roe Inc. by acting as their Special Representative,” the court said.
It noted, however, that “the original award of P1 billion represents about 35 percent of the amount being claimed by the Republic ($50,562,500) … The amount of P100 million, or about 3.5 percent of the total money being claimed by government, is more appropriate.”
“Wherefore, this Court resolves to deny with finality the Republic of the Philippines’ October 8, 2021 Motion for Reconsideration. Petitioner Herminio T. Disini’s Comment (re: Motion for Reconsideration) with Omnibus Motion, as well as his Supplement to the Comment with Omnibus Motion, are noted and partially granted,” it added.
COA: Pampanga’s unspent P63.5M disaster funds
placed in trust fund
BY PETER TABINGO
THE provincial government of Pampanga passed scrutiny by state auditors regarding its handling of the unspent balance of its P231.63 million appropriation for Local Disaster Risk Reduction and Management Fund (LDRRMF) in 2023.
Auditors submitted a hard copy of the report to the office of Pampanga Gov. Dennis Pineda on February 13, 2024.
“We commended management for ensuring that for CY 2023, the action taken on the unexpended balance of the 5 percent LDRRMF was in compliance with the last paragraph of Section 21 of RA No. 10121 (An Act strengthening the Philippine Disaster Risk Reduction and Management System),” the COA said.
The audit was conducted to ascertain that at yearend, the unused balance of the disaster funds of local governments is properly turned over and deposited to a special trust fund where it will be on call for calamity and emergency response expenditures for the next five years upon which, if unused, the sum will be returned to the General Fund for use in other social programs.
This is mandated by RA 10121 and COA Circular No. 2012-002 which provides for accounting and reporting guidelines on the LGUs’ use of LDRRMF.
According to the spending records obtained by the audit team, Pampanga allocated P231.63 million for LDRRMF in 2023 representing five percent of the province’s estimated revenues for the year at P4.633 billion.
Seventy percent or P162.14 million was set aside for preparedness programs, while 30 percent was earmarked as quick response fund (QRF).
As of yearend 2023, the provincial government reported P13.009 million left from the preparedness program and another P50.517 million unused from its QRF.
“The unutilized balance amounting to P63,526,672.90 was appropriately transferred to the special trust fund at year-end,” the audit team noted.
The COA said 2023 was the first year that it conducted the compliance audits on the LDRRMF of LGUs.
