Phl least attractive

University of the Philippines (UP) Professor Benjamin Diokno has submitted a study that the Philippines will be the least attractive investment destination in Association of Southeast Asian Nations (ASEAN) once it formally integrates as an emerging bloc in 2015.

Diokno pointed out that the Philippines does not have a good governance record and does not have a favorable tax regime. The Philippines is lagging behind its Asean neighbors in infrastructure. For this reason, the Philippines will be the least preferred investment destination.

Diokno pointed out too that among ASEAN-5 economies, the Philippines has the biggest corporate tax rate at 30 percent as compared to Singapore’s 17 percent and Thailand’s 20 percent. He also stated that the conflict between the high corporate income tax (CIT) rate and the low tax effort can be attributed to rampant smuggling; the proliferation of redundant fiscal incentives which has been estimated, conservatively, at one percent of gross domestic product (GDP); and poor tax administration.

Several lawmakers have proposed lowering the corporate income tax rate to 25 percent. Also still pending are bills to rationalize fiscal incentives. Tax administration must be further improved to at least 15 percent of GDP. After four years, that appears to be difficult to achieve.

BIR Commissioner Kim Jacinto Henares is a permanent fixture in our annual top 10 performances of government officials. She has increased tax collections every year and has a towering reputation for being immune to compromise. There has only been one criticism — that is of not applying the law equally to subjects of the same class.

A 3rd Malampaya contractor has been slapped with tax evasion charges. What about the hundreds of contractors of other high profile government projects? Are Solenn Heusaff and Judy Ann Santos really the only A-List media personalities who have not filed the correct returns? A Luxury car dealer has been assessed with back taxes but Mercedes Benz, BMW, Lexus, Rolls Royce, Jaguar, Ferrari, among others, have not been touched.

Relief goods dumping

Officials of the United Nations World Food Programme (WFP) have complained over the dumping of food and other relief items in Palo, Leyte. Palo Mayor Remedios L. Petilla explained that 4 sacks of rice and 2 sacks of used clothing were dumped because they were rotten.

Department of Social Welfare and Development (DSWD) Secretary Dinky Soliman is now investigating the matter to find out the extent of the dumping and where did the rotten goods come from.

Meanwhile, Secretary Edwin Lacierda reported that out of the P25 billion in pledges by foreign governments, only P600 million have been received.

P515 million pork scam

The Commission on Audit (COA) has released a new audit report on a P515-million pork scam released through the National Commission on Muslim Filipinos (NCMF), an agency under the Office of the President headed by former elections commissioner Mehol Sadain. Two senators and 38 former and incumbent congressmen are involved.

The funds were released through 18 foundations and non-governmental organizations (NGOs), some of which were identified with Janet Lim-Napoles. The funds came from the Priority Development Assistance Fund (PDAF) of the lawmakers, with P25 million coming from Disbursement Acceleration Program (DAP).

The COA audit report said the memorandum of agreement between NCMF, the lawmakers, and the NGOs lacked certain requirements and even supporting documents prescribed by COA Circular No. 2007-001.

The congressmen involved are Maximo Rodriguez (Abante Mindanao), Nelson Collantes (Kaagapay - Batangas), Homer Mercado (1-Utak), Michael Angelo Rivera (1-Care), Jose Benjamin Benaldo (Cagayan de Oro City), Justice Marc Chipeco (Calamba City), Jonathan Yambao (Zamboanga Sibugay), Angelo Palmones (Agham), Nur Ana Sahidullah (Sulu), Isidro Lico (Ating Koop), Neil Benedict Montejo (An Waray), Erico Basilo Fabian (Zamboanga City), Nicanor Briones (Agap), Yevgeny Vicente Emano (Misamis Oriental), Daryl Grace Abayon (Aangat Tayo), Raymond Democrito Mendoza (TUCP), Antonio Kho (Senior Citizens), Mariano Piamonte (A Teacher), Lorenzo Tañada III (Quezon), Salvador Cabaluna III (1-Care), Maria Isabel Climaco (Zamboanga City), Sharon Garin (AAMBIS-OWA), Ponciano Payuyo (Apec), Hajiman Hataman-Salliman (Basilan), Simeon Datumanong (Maguindanao), Cesar Jalosjos (Zamboanga del Norte), Franklin Bautista (Davao del Sur), Fatima Aliah Dimaporo (Lanao del Norte), Arnulfo Go (Sultan Kudarat), Bernardo Vergara (Baguio City), Romeo Jalosjos Jr. (Zamboanga Sibugay), Teodorico Haresco (Ang Kasangga), Rosendo Labadlabad (Zamboanga del Norte), Arturo Robes (San Jose del Monte City), and Anthony Golez (Bacolod City).
COA also released an audit report on P100 million released by congressmen to the Philippine Forest Corporation (PhilForest) that also used NGOs.

Meanwhile, the COA also released an audit report that 141 congressmen had funneled their PDAF allocation through the Technology Resource Center (TRC). They were implemented by NGOs not connected with Napoles.

Top CPP-NPA leaders arrested

Two top Communist Party of the Philippines-New People’s Army (CPP-NPA) leaders were arrested by Philippine Army (PA) elements in Carcar, Cebu, together with 6 others. Benito Tiamzon, the head of the CPP-NPA and his wife, Wilma Austria.

Department of National Defense Secretary Voltaire Gazmin confirmed the arrest. President Aquino said this is a big blow to the communist rebels since Benito Tiamson is chairman of the CPP and heads the NPA. This is probably the big fish that President Aquino said would be arrested. There is a P5.6 million reward for Tiamson.

Lawyers for the Tiamsons claimed that their arrest was illegal because they were covered by the Joint Agreement on Safety and Immunity Guarantee (JASIG), and were consultants in the peace talks. The Tiamsons are now detained at Camp Crame.

Their arrest order was issued by the Regional Trial Court (RTC) of Laoang in Samar on charges of multiple murder and frustrated murder cases.

Tidbits: PDEA-Albay provincial officer Arnel Estrellado was shot five times by two men on a motorcycle in Sorsogon City.

India is now polio free, one of the greatest medical victory — millions have been vaccinated.

Greetings to women achievers — Senator Cynthia Villar, Lily Monteverde, Rep. Lucy Torres-Gomez, Rep. Leni Robredo, Prof. Miriam Coronel Ferrer.

SEARCH FOR TRUTH By Ernesto M. Maceda (The Philippine Star)