- 4 months ago
Today on Beyond the Headlines, we bring you two in-depth discussions on timely and impactful issues.
Professor Ronilo Balbieran joins us to break down the current state of the economy, key challenges, and what lies ahead for Filipinos.
In our second segment, Board Member Michael Villamor sheds light on the APO tax settlement, discussing transparency, accountability, and its implications for the public.
Stay informed. Stay engaged.
Professor Ronilo Balbieran joins us to break down the current state of the economy, key challenges, and what lies ahead for Filipinos.
In our second segment, Board Member Michael Villamor sheds light on the APO tax settlement, discussing transparency, accountability, and its implications for the public.
Stay informed. Stay engaged.
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NewsTranscript
00:27Good afternoon and welcome to
00:29Beyond the Headlines, where we go beyond the numbers, and into what they really mean
00:34for our daily lives. I'm DJ Moises. Oil prices are rising again, driven by tensions in the
00:42Middle East. For many Filipinos, that's not just global news. It's fuel, transport costs,
00:49and the price of food. At the same time, closer to home, a 211 million peso quarry settlement
00:57in Cebu is under scrutiny after an original obligation of over a billion pesos was reduced
01:04by more than 80%. Two very different stories, but they raise the same question. Are we protecting
01:11the everyday Filipino? For our first story, rising oil prices are beginning to hit closer to home.
01:18Joining us once again is a respected economist and academic with extensive experience in analyzing
01:24economic trends and public policy, Professor Runilo Balbieran. Professor, welcome back to the show.
01:32Good afternoon, my idol DJ.
01:34Good afternoon, Prof. Actually, you're the go-to economic expert of the Mandawi Chamber of Commerce.
01:40So now, I would also say you're the go-to economic experts for Beyond the Headlines.
01:44Okay, thank you very much.
01:46No, thank you, thank you, thank you. So now, because I'm sure a lot of our viewers have already
01:52heard this from so many people, but I just want them to hear this straight from you. How vulnerable
01:58really is the Philippine economy when it comes to rising fuel prices?
02:04So if we define vulnerability in terms of our gross domestic product or the measure of our national
02:12economic output going into negative, our country is never vulnerable to oil price shocks.
02:21So there is no period in our GDP history, in our economic history, when our economic growth
02:29actually turned negative because of oil price shocks. So in the 1970s, the 70s oil price,
02:35oil crisis of 1972, 1978, or the entire 70s, we did not actually have a negative GDP growth.
02:44Our economy is more sensitive and more vulnerable to the level of dollar reserves that we have
02:52in terms of actually cushioning our import activities.
02:56So we will have a problem facing the oil crisis if we do not have the dollar reserves in the
03:04banks,
03:04in the Banco Central ng Pilipinas, to actually continue buying oil.
03:10And that happened actually when we ran out of dollar reserves in the 1980s.
03:16That's when we had the EDSA crisis, the EDSA people power crisis,
03:22when our GDP went to one of its slowest in terms of economic growth.
03:28But in general, the simple answer here is we are less, very minimally affected as an entire economy,
03:38very minimally affected by oil price shocks.
03:44Actually, Prof, that's a very comforting insight, no?
03:49And because it also comes from you, then it's even more comforting.
03:53Because this is, to be honest, the first time I heard about that insight, no?
03:58And it's very comforting.
03:59So what we're actually saying is we will be more worried if our dollar reserves are low
04:03rather than rising fuel prices.
04:08Yes, yes.
04:09And because the most important thing is do we have the money to actually continually buy and import the oil?
04:16So the answer there is we have the money.
04:19In fact, even before this started, we have one of the greatest amount of net additional income from abroad
04:29because of our OFWs, etc.
04:31And that's actually the reason why we have so much dollar reserves because of all of these OFW remittances, no?
04:39So, and that is a refuge for all of us.
04:43And you will be surprised to know that the Philippines has one of the largest dollar reserves in the world
04:50in terms of dividing it in terms of months of import cover.
04:55Kasi yung dollar reserves mo, it's just like a savings.
04:59It doesn't really matter what the size is until you divide it with your monthly expense.
05:05And in the case of countries, you consider monthly import bill, no?
05:11So our dollar reserves is ranging around between 100 to 110 billion dollars, no?
05:18So, but if you divide it to our monthly imports, no?
05:21So that will actually give us between 7 to 10 months of import cover, no?
05:26And that's one of the largest in the world in terms of months of import cover of our dollar reserves.
05:32So I think as far as the total, no?
05:35So don't get me wrong, our dear viewers and listeners, no?
05:38So as far as the total economy is concerned, we are actually very, very strong in facing this oil crisis.
05:47Except that if we talk about the lower income families of our country, that's when they get the immediate negative
05:56shock to their ability to pay the basic necessities and prime commodities.
06:03So those are the two sides of the story.
06:07In the total, we are shielded because of the dollar reserves, thanks to our OFWs.
06:13But on the micro side, the poor, the lower income Filipinos and the business sectors in the transport sector, the
06:23jeepney drivers, the bus drivers, the trucking businesses are really greatly affected by this particular oil crisis.
06:33Now, just for calibration, Prof, and also for my knowledge, from what I know, the healthy threshold in terms of
06:41reserves, is it six months?
06:45Three months, no?
06:46Ah, three months.
06:46Like John Lloyd, three-month rule.
06:48But it's not.
06:49But three months because, for example, the three-month rule of John Lloyd.
06:55But it's easier to remember because of that.
06:58Yeah, because of everybody, from our age who watched that particular deal.
07:04But in general, our financial advisors would say three months, our macroeconomists would also say three months.
07:13Why?
07:13Because if, for example, at the personal family level, a family or si daddy must have at least three months
07:25of savings just in case his particular company fires him.
07:35So he would have three months to look for work while continually financing the expenses of his family.
07:42So three months yun.
07:43Kasi kapag, of course, the greater, the better.
07:48So for countries, that is also the benchmark.
07:52So if you have more than three months, then your country is more or less in a shielded position against
08:00any international shocks.
08:03So kapagka bumababa na yun.
08:05And ang worse is if the dollar reserves turn to negative.
08:12Ano yung negative?
08:12If you have the dollar reserves minus obligations within a year.
08:17So that's the net international reserves.
08:20If that turns negative, two things happen to a country.
08:24So a country would have an important person being shot and or the president is impeached or sent away somewhere.
08:36So if you remember in the 1980s, those two things happened at the same time.
08:43When we ran out of dollar reserves, we actually turned more than negative four months in the 1980s.
08:51So 1982, 83, 84, if I can remember it correctly.
08:57So yun yung talagang when a country will suffer so much because you won't have any dollars to buy your
09:04imports and you're importing raw materials.
09:07So your industries will suffer because they don't have anything to buy the raw materials.
09:13And so the whole economy will suffer.
09:17So yun yung ano.
09:18So the basic rule is three months.
09:20But of course, someone will ask, sir, United States only has two months or less.
09:26So why are they not getting afraid?
09:30The U.S. is always an exemption to the rule because when they run out of dollar reserves, they can
09:37print their dollars.
09:38But us, we cannot print the dollars.
09:40We only have to earn it.
09:42So therefore, we really have to strive earning the dollars and saving the dollars, especially on rainy days such as
09:52this.
09:53Actually, Prof, I thought we just don't print the peso.
09:57We put them sa maleta.
09:58Just kidding.
10:02Anyhow, Prof, going back to the topic.
10:05Now, some people, they would forecast end of year average inflation of 4.7%.
10:12The others would also say 5.1%.
10:15For you, what's your forecast?
10:18It's very difficult to say at this point, but definitely the April, given that we already have the formal numbers
10:28for March, which is 4.1%.
10:31So definitely, the April inflation would touch somewhere closer to 5, if not breach it.
10:41But I think if the situation today will progress positively, so that particular 5% may not actually be achieved.
10:58So therefore, we will continue to have the price going down over the next 2 to 3 months, and then
11:05have that particular inflation getting below 4% for the entire year of 2026.
11:13So if this particular good news for today will last not just for 2 weeks, but permanently.
11:23So that's a bit of a forecast.
11:25And anyway, the rule for forecasting is that all forecasts are wrong.
11:31But it really depends on what is happening in the past and what is happening behind the mind of the
11:39decision makers.
11:40In this particular case, Trump and the leaders of the Middle East would know what will happen to our inflation
11:49over the next 6 to 9 months.
11:55And then when you say positive development, at least for our viewers, Prof, you're referring to the Strait of Ormos
12:01opened again hopefully for the next 2 weeks.
12:05Yes, yes.
12:05So hopefully, so when they arrive in the Philippines, yun naman ang sinasabi ng mga oil companies, when they all
12:13arrive, so we've been ordering.
12:15So there's not much scarcity in ordering because we have a lot of money, and we've been absorbing this.
12:22So imagine, we've already almost 3 times, so more than 200% increase na yung ating oil price, but the
12:30reduction in oil consumption has actually decreased only by what, 20 to 30%.
12:37So meaning, talagang ano tayo, we are somehow, as a total country, we are insensitive to price increases.
12:47So hindi tayo, hindi tayo ganun.
12:49But of course, short run lang yan, long run, ibang usapan yan.
12:53So the point is, if these orders are allowed to sail and then reach our country within 1 to 2
13:07months, kasi some will not directly go to us.
13:09Some will go to the refiners in our neighborhood in Southeast Asia, and then they will refine it a few
13:17more days,
13:18and then actually deliver it to our storages here in the Philippines.
13:23So when you have that supply, the law of supply and demand tells us that, well, price is going to
13:31go down over the next 3 weeks to 6 weeks.
13:36So that's what our expectation is after this good news today.
13:42And then, if we look at the pandemic, Prof, there were sectors that thrived, there were also sectors that suffered.
13:51In this particular situation, what sectors do you think will thrive, and what sectors are at risk?
14:02At risk would be the retail part, especially at the lower income, those who are actually catering to lower income
14:13families.
14:15You meant the sari-sari store.
14:18Yes.
14:19Karinderiya.
14:21Because yung ibang mga nakikita natin, yung mga tinapay na manufactured goods, baked goods, sometimes hindi na nakakarating sa kanila,
14:35kasi they are actually struggling it with the supplier, sabi niya, ikaw na lang ang magpa-deliver, ikaw ang sagot
14:41sa delivery cost,
14:42but ako, ikaw na lang, et cetera.
14:44So therefore, yung mga ibebenta nila, hindi na nakakarating.
14:48At kung makakarating man, they will have to actually sell it at a higher price.
14:53So definitely, there's a squeeze in terms of the purchases of our lower income families.
15:02So yun yung mga magsasuffer.
15:07But right now, yung food prices naman are still from the middle class all the way up.
15:16Hindi pa naman na-apektohan.
15:18So therefore, we can see na yung because of this lower traffic volume,
15:27so the higher income families or middle income to higher income families would have the opportunity to actually go out
15:37and have this, quote-unquote, tawag dito yung accommodation and food services sector.
15:45So they can actually now thrive in this particular environment with less traffic
15:52and more families will be encouraged to actually go on a little bit.
15:58Hindi naman yung mga masyadong malalayo.
16:00And then, of course, we see that those who are in the business of solar panels, of course,
16:08so there's huge additional demand in terms of our middle income families
16:15to higher middle income to rich families installing solar panels together with buying electric cars
16:23or hybrid cars because that's a great combination.
16:29You have solar panels by your roof, and then you bought or you already own an electric car
16:38and then charge it in the middle of the morning towards noontime.
16:43So that's when you get all the sun's power, and you can actually get free energy.
16:50But the investment cost there will actually be opportunities for those who are actually into this business.
16:58And I've heard reports that the food traffic to these car retailers that are actually selling electric or hybrid cars
17:11have actually doubled in terms of visits and inquiries of trying to buy all these electric cars.
17:19And then we've heard that there will be accelerated plans to roll out electric cars, electric trucks, and electric delivery
17:30vans, or at least hybrid.
17:32And this is now somehow a blessing in disguise that our logistics sector will have this so-called green pivot.
17:47So we will now shift towards cleaner, renewable energy, and that will actually bring down our dependence on oil.
18:00So we expect businesses that are actually now are quote-unquote very happy in terms of this particular challenge.
18:13So they are now thriving and they are now experiencing greater sales in terms of this particular opportunity brought about
18:24by the crisis.
18:25So laging namang ganon.
18:26Pagka may crisis, laging may opportunity sa mga businesses.
18:30Actually, I also agree with what you said.
18:33Because if I recall the pandemic, it accelerated improvements in technology.
18:40And in this case, I think this will also accelerate improvements when it comes to sustainability.
18:47And because of that, we will now try to have this, there will be increased thinking power in terms of
19:00whether we will eat at home or we will eat outside.
19:02A good thing that will come out of it is that the operations of these food deliveries, so e-commerce,
19:13will actually be put to challenge.
19:16So whether, can they actually service this higher demand for food deliveries with minimal cost increases?
19:28Or are they going to pass it all on to our consumers?
19:32So that's what we'll look at.
19:34But I believe because of this challenge, because you do not want to raise price, because the law of demand
19:39tells us that if you increase your price, then volume drops.
19:42So it's really a dilemma of your volume decrease and price increase.
19:47So you do not want to pass it on to your customer all at the same time.
19:54So you will have to absorb some of it so that you can still remain the volume of businesses that
19:59you have.
20:00So the implication is that our food deliveries, our logistics sectors will really find ways to make deliveries, make logistics
20:12operations very, very efficient and more efficient than ever before.
20:20So, and this is good news because we have one of the highest logistics costs in Southeast Asia.
20:27So, and that's why prices of basic goods are very, very, very, very high.
20:34Now, if our logistics sector can find a way to work together to really optimize logistics operations and bring down
20:44logistics costs,
20:45then the consumers are about to, you know, experience and enjoy lower prices down the road.
20:58Kasi kapag bumaba na yung price and we have all these mechanisms to actually bring down logistics costs,
21:05even with price, oil prices very high.
21:08So imagine the logistics costs if the price of oil suddenly goes down three to six months down the road.
21:15So, so ito, itong mga ganitong, itong crisis sa langis na to will really, no, bring so much blessings to
21:24our country.
21:26Because, bigyan kata ng examples, sir DJ, no?
21:28So, for the longest time, our logistics sector had been toying about co-loading.
21:37Ano yung co-loading?
21:38So, two trucks, no, are actually, yung mga average utilization ng trucks natin between 50 to 60 percent ang laman
21:48ng mga trucks and vans.
21:50So, hindi siya efficient, no?
21:53So, what if, no?
21:55So, yung co-loading, isang truck pero dalawang kliyente, no?
21:59And that is not usually done because may parang trust issues among clients and among logistics players.
22:06Bakit ko naman pagsasamain yung dalawang kliyente ko sa isang truck, no?
22:10Or dalawang logistics company, may kliyente yung isa, may kliyente yung isa.
22:13Pagsamain natin at isang truck na lang, this time truck mo naman, sa susunod truck mo naman, para makatipid tayo
22:19ng gas, isang biyay na lang.
22:21Dati, hindi natin entertain yun kasi mura lang ang gas.
22:24Pero ngayon, because oil prices are so high, now everybody's talking about co-loading.
22:30So, and that, pag pinagsama mo yung dalawang truck, eh di, almost 50% reduction in logistics cost just by
22:36co-loading, na ba?
22:38So, yun yung mga in-expect natin na mga benefits to our economy, to our consumers, to our Filipino families.
22:48Once this particular mga improvements, innovations, collaboration will happen because of this crisis.
22:57Now, there are quite a number of proposals in government.
23:04Some of them are already supposedly for implementation, the others are still being proposed.
23:09And these are measures supposedly to soften the impact without creating long-term negative effect to the economy.
23:19So, I'm referring to the reduction or removal of excise tax.
23:23There's also a, which is, by the way, this is already a Republic Act, and it's just a matter of
23:29implementation.
23:30And then there's also the proposal, I think, from Congressman Le Vista to lower VAT from 12% to 10%.
23:37And then there's also this proposal coming from Senator Aimee Marcos, which is more of suspension of payments for SSS
23:46and GSIS and I think even PhilHealth.
23:50What are your thoughts about this?
23:51Which among these measures do you think will have the best impact among these measures to the economy while we
24:00are going through this situation?
24:10Well, I think we need to temporarily suspend excise tax and VAT on fuel.
24:19Of course, other economists would say that this is actually very damaging for the economy because the government will lose
24:29some revenues and therefore it will actually lose the fund source for the ayuda.
24:36And then if the ayuda will still continue, then they will have to borrow again and then that will affect
24:42our credit rating and if our credit rating goes down, then that will mean higher interest rate for our entire
24:51economy, especially for the loans of government.
24:54For me, I would say that may be valid and it is really valid, but this is an extraordinary time.
25:04And remember, we experienced this in the middle of another crisis.
25:11Remember, we haven't finished the infrastructure crisis.
25:15You now have a better term for it, no?
25:18Yeah, so we have about three quarters of negative spending by the government on infrastructure since second quarter last year,
25:27negative 8, then negative 26, and then negative 42% spending growth on infrastructure.
25:34So meaning they could not actually spend what they have collected from us.
25:39So for whatever reason, so it's for reform, they're trying to fix the procurement process, the corruption, et cetera, et
25:48cetera.
25:48But the point is, so they have not disbursed the money that they have collected from us through taxes for
25:58infrastructure spending so that this infrastructure money will actually circulate in the economy and actually boost economic activities and business
26:08creation.
26:08So, in short, in short, hindi nyo pa nga nagagastos yung dati nyo pang kinulekta sa amin noong 2024, 2025,
26:162026, magbabayaran na naman tayo ng tax ulit, no?
26:19So, why not for temporarily, no?
26:24So, one to two months, no?
26:27Immediate, no?
26:28Immediate reduction of oil prices for the benefit of the lower income families.
26:37So, eh, sir, sasabihin sa atin, eh, sir, eh, yung mga nag-SUB naman, eh, di, continually tax natin yung
26:43mga nag-SUB kasi sila, magpo-full tank din naman, it's a charge nila sa credit card yun.
26:49Eh, di, yung dapat ang, ano, eh, marami tayong pag-aaralan in terms of the mechanism, if you start exempting
26:57each sector or each family income bracket, et cetera,
27:02by the time maaral natin yun, baka patay na yung mga, baka patay na yung mga tao dyon sa baba
27:08in terms of their daily survival of eating food every day, no?
27:15So, ako, sasabihin ko na lang, huwag na natin pagdibatihan ito.
27:19So, anyway, the ones that have their SUVs are most likely the businessmen, the entrepreneurs, the executives,
27:26who will actually continually, no, move around the country and make sure that our economic engines are running
27:35so that they will take care of employment, income, generation for everybody.
27:40At the same time, the reduction in fuel price will enable, no, our jeepney drivers, bus drivers, our truckers
27:49to actually have their business going.
27:52Kasi yung iba, hindi na nila alam kung every kilometer natatakbo yung jeep, is a negative income.
28:01So, bakit mo naman gagawin nyo? Parang, parang ginigilitan mo na lang yung sarili mo.
28:06Every time tatakbo mo, itatakbo mo yung jeep o yung bus mo.
28:09So, kahit nga yung mga airplanes, di ba, they are cancelling some of the flights that are not profitable routes,
28:16no?
28:16So, eto, jeepney drivers ang mga pinag-uusapan natin and bus drivers, no?
28:22And then the truckers.
28:23These are the engines of our economy at the bottom part, no?
28:28So, we have to rescue them as soon as possible.
28:33And number two, combine it with ayuda.
28:36Sir, sobra naman may excise tax reduction ka na, tsaka VAT, tapos may ayuda pa.
28:41Of course, kasi it will take time para yung mga oil companies to actually pass on the lower price
28:48because of reduction in excise tax in VAT, no?
28:52So, remember, yung mga excise taxes na ito na nabayad na nila when they actually brought that particular oil to
29:00our country, no?
29:02So, habang ginagawa mo yun at biniintay mo yung mechanism na yun,
29:06hindi naman nag-iintay ang sigmura ng ating mga tao, do?
29:10So, you really need to feed.
29:12This is like a pandemic-level proportions except for the lower-income people, Filipinos,
29:21who cannot afford these basic services and basic commodities.
29:26So, kailangan ibigay natin talaga yung mga ayuda na yan as fast as we can, no?
29:31So, parang pandemic yan, ibigay mo 5,000, 8,000 per family.
29:37May database naman tayo ng mga low-income and poor families, no?
29:41So, we should be able to bring these cash transfers and fuel discounts to jeepney drivers,
29:49to bus operators, to truckers.
29:53Then, that's just temporary.
29:56And then, anyway, we could not actually spend the money.
30:01The government could not actually spend the money outright
30:04because we're still fixing procurement and disbursement mechanisms for our infrastructure projects, no?
30:13So, anyway, after two months, you can actually now run the excise taxes and what
30:18according to that particular special law that was passed, no?
30:22So, yun lang naman ang mahirap, eh.
30:24Yung natanggal mo, tapos ibabalik mo ulit.
30:27So, that is a no-no.
30:29Kasi pagka ibabalik mo na ulit under another law,
30:33then maraming mga riders kasi kapag ibabalik mo through another law.
30:37But what is good for this particular special power law of the president is
30:43the detention can be temporary.
30:48So, it can actually go back automatically without another special permission of the Congress.
30:57So, and I think the president, the national government, should be able to use that as soon as possible
31:04because, sasabihin nga datin, di ba, paaanuhin mo pa ang damo kung patay na ang kabayo.
31:11So, kailangan ipamigay mo na yung damo habang buhay pa yung mga kabayo.
31:16So, wala na tayong oras.
31:18Yun yung sinasabi natin.
31:20And that's why countries around the world, especially in our neighborhood,
31:25are actually using all these mechanisms already as we speak.
31:31So, Vietnam, Thailand, Indonesia.
31:34So, they've been using all these mechanisms all at the same time.
31:37They're not actually even choosing from those options.
31:40They are actually instituting them all at the same time.
31:43So, and then, that's really the role of the government.
31:48So, for them to move counter-cyclically.
31:52Anong ibig sabihin?
31:53So, when we're having a good time,
31:58so they can actually step back.
32:04And, oh, sige, let them.
32:06But when we are having a hard time,
32:09then they can now step in more.
32:11And then, actually, do more, borrow more,
32:14and make sure that we're still all alive.
32:17Or at least, yung portion ng mga poor, vulnerable, and the marginalized
32:24must not be left behind.
32:27And it's the number one role of the government.
32:29Thank you very much, Prof, for this conversation.
32:33Aside from that, you were very specific about damo for kabayo.
32:36And that's also good that you're very specific about that.
32:39And then, the second, no, I was just kidding, Prof.
32:42But the second, I think now, after this conversation,
32:46I will be looking at not just the fuel hike,
32:50but also be looking at the dollar reserves.
32:53And if the dollar reserves remain healthy,
32:56then it's very unlikely for the country overall to go on a recession.
33:01So, thank you very much for this very helpful insights, Prof,
33:05and for helping us make sense of the situation.
33:09If I may add, one last rejoiner na lang to.
33:13Remember, my dear listeners and viewers,
33:16in December, January, and February,
33:18December 2025, January, and February this year,
33:22alam nyo, the problem of oil-producing countries in the world
33:26is how to cut back their production
33:28because the price of oil was getting so low.
33:31There was global oversupply in December, January, and February.
33:37So, once this particular crisis or war stops,
33:44then we can see that this can actually go down
33:47to its original level within three to six months.
33:51And I'm also hopeful that the condition,
33:54especially on the Strait of Hormuz,
33:56will continue to be peaceful even beyond two weeks.
33:58So, thank you very much, Prof.
34:00Sir DJ, salami salamat po.
34:02And yes, see you soon.
34:05So, that was Prof. Rodilo Balbiran,
34:10an economics expert.
34:12And it's a very good insight that he actually shared to us
34:16so that we would have a bit of peace of mind
34:19moving forward given our situation.
34:21So, now we turn to a developing issue in Cebu.
34:24A proposed 211 million peso quarry settlement
34:29is now under scrutiny after it was revealed
34:32that the original assessed obligation
34:35amounting to over 1 billion pesos
34:38was reduced by more than 80%.
34:41This has raised serious questions about fairness,
34:44transparency, and the protection of public funds.
34:48The provincial board has since stepped in,
34:50halting the agreement, pending further review.
34:53Joining us is 5th District Provincial Board Member
34:57Michael Joseph Villamore,
34:59the Committee on Ways and Means Chairman
35:01of the Legislative Body of Cebu Province.
35:04Board Member Mike,
35:07thank you for joining us this afternoon.
35:10Thank you also, Sir DJ.
35:12Mayang Uddo.
35:12Mayang Uddo, no?
35:14So, I have actually some questions.
35:16Can you walk us through about
35:18how this issue started as early as 2009
35:22and how did it appear to have been negotiated
35:26and reduced to about 82% recently
35:29through the executive branch?
35:33Alright, so first of all,
35:35Sir DJ,
35:37from 2009 to 2016,
35:40meron na itong mga computation
35:43until 2025.
35:45Alright, and it's totaled to 1.2 billion.
35:52So, throughout those years,
35:55meron ng mga kaso sa korte.
36:02It's already in the court of appeals.
36:06So, we cannot dwell into that
36:08because it's an ongoing case.
36:10But sometime,
36:12August,
36:13we were told that
36:15there was already a negotiation
36:18between the province of Cebu
36:20and the APO land and quarry cooperation.
36:26So,
36:27this year lang,
36:29on March 12,
36:31it was referred
36:32to the Committee on Race and Means
36:35and to further
36:38to review
36:39on the legal, financial,
36:40and policy implications
36:42on this issue.
36:44So, we had a committee hearing
36:53last night also.
36:55And then,
36:57we invited
36:58the executive department
37:00especially from the
37:01provincial legal office
37:02to handle the negotiations.
37:05Also, the provincial
37:06treasurer's office
37:07and the other departments
37:11from the executive department.
37:13So,
37:15after that,
37:16we deliberated
37:17with the committee
37:17and
37:18we
37:20made a
37:21committee report.
37:23So,
37:24just to be,
37:26just to clarify,
37:28this is non-political,
37:30okay?
37:30So,
37:31ang dami kasing
37:31lumalabas na sa mga
37:33social media
37:34na
37:34this is political,
37:36no?
37:37It's merely based
37:38on the merits
37:39of the issue
37:40presented.
37:43And thank you also
37:45for highlighting
37:47that also,
37:50provincial board
37:51member,
37:52Mike,
37:52no?
37:53The other question
37:54that I have
37:54which is related
37:55to what just said
37:56that the others
37:58would argue
37:58that settlements
37:59like this one
38:01would also
38:01avoid
38:02long legal
38:04battles.
38:05So,
38:06do you think
38:06this is a valid
38:08contention?
38:09contention?
38:10Yes,
38:11I have nothing
38:12against
38:13compromise
38:14agreements,
38:15D.J.
38:16No?
38:17In fact,
38:18I appreciate,
38:19the committee
38:20appreciates
38:21the executive's
38:22efforts
38:22in pursuing
38:23a compromise.
38:24So,
38:26recognition
38:27of effort
38:28does not
38:29dispense
38:29with the
38:30requirements
38:30of legislative
38:31oversight.
38:32So,
38:34the committee
38:34supports
38:35compromise
38:35as a policy
38:37but
38:38must ensure
38:39that the
38:40process
38:40complies
38:41with legal
38:41requirements
38:42and protects
38:43public interest
38:44before
38:44granting
38:45approval.
38:46So,
38:48I'm okay
38:49with compromises
38:50as long
38:50as we're
38:51for all
38:52parties
38:52involved,
38:53especially
38:53for the
38:54province
38:55of Cebu.
38:56And then,
38:58I think
38:58earlier today
38:59it was also
38:59clarified
39:00and I'd like
39:00to hear
39:01also straight
39:02from you
39:03that an
39:04ordinance
39:04was not
39:05necessary
39:06for such
39:07negotiation
39:08to transpire.
39:09Is that
39:10correct or
39:11do you agree
39:11with that?
39:11Because I also
39:12read that
39:13this morning.
39:15All right,
39:16so it
39:16would have
39:17been more
39:17prudent
39:19if an
39:20authority
39:21to negotiate
39:22would have
39:22been sought.
39:25Ngayon kasi,
39:27we were
39:27asked to
39:30approve
39:30the
39:32governor's
39:33request
39:33to sign
39:34and enter
39:35into the
39:36compromise
39:37agreement
39:37itself
39:38with the
39:38amount.
39:39If
39:39the
39:42executive
39:43asked
39:44for
39:46authority
39:47to negotiate
39:48to be
39:49transparent,
39:50it would
39:50have been
39:51put up
39:51and we
39:52would have
39:53known
39:53from the
39:54start on
39:55that there was
39:56a negotiation,
39:57especially
39:57with this
39:58kind of
39:58amount.
39:59It's so
39:59big.
40:00It's
40:001.2
40:01billion.
40:01And
40:03it was
40:04just a
40:04shock to
40:05us when
40:05we heard
40:05that
40:06from
40:071.2
40:08it went
40:09down
40:09to
40:11200
40:111.2
40:12million.
40:142.11
40:14million.
40:17And
40:17then
40:18maybe
40:18I'm
40:19just
40:19jumping
40:19ahead
40:20in the
40:20conversation
40:21but
40:21if
40:21you
40:21can
40:22provide
40:22your
40:23insights
40:23also
40:24and
40:24it's
40:24your
40:25opinion.
40:26If
40:26for
40:26example
40:27a
40:27renegotiation
40:28was
40:29indeed
40:30agreed
40:31by both
40:32the
40:32executive
40:32and
40:33the
40:33legislative
40:34what
40:35do
40:35you
40:35think
40:35or
40:36at
40:36least
40:36from
40:36what
40:36you
40:36hear
40:37from
40:37your
40:37colleagues
40:38would
40:38have
40:38been
40:38a
40:39fair
40:39deal.
40:42There
40:43are
40:43different
40:45sections
40:46in
40:47the
40:47revenue
40:49code
40:49that
40:50were
40:51included
40:52on
40:53this
40:54issue
40:54there
40:54were
40:55section
40:56124
40:57tax
40:57on
40:58extraction
40:58section
40:59125
40:59the
41:00monitoring
41:01fee
41:01section
41:01220
41:03environmental
41:04enhancement
41:05fee
41:05and
41:06there's
41:06also
41:06the
41:06surcharge
41:08and
41:08interest
41:08so
41:09basing
41:10on
41:11these
41:11sections
41:12they
41:14derived
41:15the
41:15provincial
41:16pressure
41:17arrived
41:18with
41:18the
41:19amount
41:19of
41:191.2
41:20billion
41:20and
41:21there
41:21were
41:21arguments
41:22that
41:22some
41:24sections
41:24does not
41:25apply
41:26to
41:27this
41:28statutory
41:28case
41:29in
41:30court
41:31already
41:32and
41:33they
41:34made
41:35they
41:36presented
41:36their
41:36computation
41:37from
41:381.2
41:38and
41:39down
41:40to
41:41211
41:41million
41:46so
41:52merong
41:53naging
41:53zero
41:54talaga
41:54from
41:55227
41:56million
41:56to
41:56zero
41:57that's
41:57on
41:57tax
41:58on
41:58extraction
41:58and
41:59for
41:59monitoring
42:00fee
42:00there's
42:01225
42:02from
42:04225
42:05million
42:06down
42:07to
42:078
42:07million
42:08so
42:09we
42:09saw
42:09that
42:10it
42:10was not
42:11properly
42:11justified
42:13and
42:13presented
42:13and also
42:14we
42:14asked
42:15for a
42:15COA
42:16advisory
42:18why
42:18because
42:19it is
42:20necessary
42:21to
42:21ensure
42:21compliance
42:22with
42:22auditing
42:22rules
42:23the
42:23compromise
42:24arguments
42:24involving
42:25public
42:26funds
42:26must
42:26conform
42:27to
42:27COA
42:27regulations
42:28and
42:28there
42:29was
42:29none
42:30so
42:30that's
42:31what we
42:31told you
42:32certain
42:32change
42:32and
42:33then
42:34finally
42:35because
42:36I know
42:37you also
42:37have a
42:38very busy
42:38schedule
42:39today
42:39but I
42:39just
42:40want
42:40to
42:40ask
42:41for your
42:42final
42:42thoughts
42:42provincial
42:43board
42:44member
42:44Mike
42:44about
42:45what
42:45your
42:46assurance
42:46will be
42:47to
42:47Cebuanos
42:47that
42:48in terms
42:49of
42:50matters
42:50such as
42:51this
42:51whether
42:51it's
42:52a
42:52renegotiated
42:53amount
42:53or
42:54whether
42:54it's
42:55pursuing
42:55the
42:56case
42:56how
42:57can
42:57you
42:58assure
42:58or how
42:59can
42:59we
42:59assure
42:59that
43:00the
43:00interest
43:00of
43:01the
43:01Cebuanos
43:02remains
43:03fair
43:04in
43:05matters
43:05like
43:06this
43:06one
43:08that's
43:08the
43:09reason
43:09why
43:09we
43:10returned
43:10this
43:11matter
43:11to
43:12the
43:12executive
43:14department
43:15so
43:17we
43:18did
43:18not
43:18actually
43:19approve
43:20we
43:22just
43:22returned
43:22this
43:24respectfully
43:25recommended
43:26that
43:26this
43:26proposed
43:27compromise
43:27argument
43:28be
43:29referred
43:29back
43:29to
43:29the
43:29executive
43:30department
43:30for
43:31further
43:31evaluation
43:32and
43:32clarification
43:33so
43:34that
43:35means
43:36that
43:36means
43:37that
43:37they
43:38should
43:39undertake
43:41a more
43:42comprehensive
43:43legal and
43:44financial
43:44reassessment
43:45it should
43:46be
43:46fair
43:47reasonable
43:48legally
43:49sustainable
43:50and
43:51fully
43:51protected
43:52of course
43:53financial
43:54financial
43:54interests
43:55for the
43:58province
43:58of
43:58Cibu
43:58and
43:59its
43:59constituents
44:00of
44:00Cibu
44:00Anon
44:01rest
44:01assured
44:02that
44:02it
44:03is
44:03really
44:04part
44:04of
44:04our
44:04oversight
44:05whatever
44:05the
44:06executive
44:06decides
44:07on
44:08to pursue
44:08to pursue
44:09case
44:09or
44:09to
44:10renegoti
44:10it
44:12will
44:12still
44:12come
44:13back
44:13to
44:13us
44:13and
44:13we
44:13will
44:14exercise
44:14our
44:15oversight
44:15to
44:16make
44:16sure
44:16that
44:18the
44:18interest
44:19of
44:19the
44:20sub-government
44:21is
44:21truly
44:22protected
44:22and
44:22of course
44:23it
44:23will
44:24really
44:24come
44:24back
44:24to
44:25us
44:26especially
44:26to
44:27the
44:27committee
44:27on
44:28ways
44:28and
44:28means
44:28Mr.
44:29D.J.
44:30as
44:30you
44:31know
44:31the
44:31committee
44:32itself
44:32it
44:33needs
44:33really
44:33to
44:35find
44:35ways
44:36and
44:36to
44:37increase
44:38our
44:38revenue
44:38so
44:39it
44:39is
44:39really
44:39part
44:39of
44:40our
44:40job
44:40to
44:41make
44:41sure
44:42that
44:42our
44:43offers
44:44are
44:45more
44:46than
44:46we can
44:50collect
44:51more
44:51the
44:52better
44:52if
44:52legally
44:53allowed
44:55and
44:56then
44:56whatever
44:57we can
45:01really
45:01collect
45:02we
45:02will
45:02collect
45:03so
45:04thank
45:05you
45:05very
45:06much
45:06board
45:06member
45:07Mike
45:07for
45:07joining
45:08us
45:08today
45:08and
45:09for
45:09helping
45:10clarify
45:11this
45:11important
45:12issue
45:13for
45:13the
45:13public
45:14thank
45:15you
45:15thank
45:15you
45:15so
45:16that
45:17was
45:18fifth
45:18district
45:19provincial
45:20board
45:20member
45:21Michael
45:21Joseph
45:21Villamore
45:22the
45:22committee
45:22on
45:23ways
45:23and
45:23means
45:24chairman
45:24of
45:24the
45:24legislative
45:25body
45:25of
45:26Cebu
45:26province
45:27and
45:27by
45:27the
45:27way
45:27for
45:27our
45:28viewers
45:28tomorrow
45:29our
45:30second
45:30story
45:30will
45:31also
45:31be
45:31still
45:32about
45:32this
45:33case
45:34between
45:34Cebu
45:35province
45:35and
45:35also
45:36Apo
45:36land
45:37but
45:37this
45:38time
45:38coming
45:38from
45:38the
45:39perspective
45:39also
45:40of
45:40the
45:40executive
45:41and
45:42joining
45:42us
45:43tomorrow
45:43on
45:43this
45:44particular
45:44story
45:44would
45:45be
45:45assistant
45:45provincial
45:46administrator
45:47Aldwin
45:48Impase
45:48so
45:48please
45:48also
45:49stand
45:49by
45:49I
45:50mean
45:50stay
45:50tuned
45:51and
45:51please
45:52join
45:53us
45:53again
45:53tomorrow
45:54so
45:54that
45:54you
45:54can
45:55also
45:55see
45:55the
45:56other
45:56side
45:56of
45:56the
45:56story
45:57because
45:57that's
45:57what
45:57we
45:58do
45:58here
45:58on
45:58Sunstar
45:59through
45:59Beyond
45:59the
46:00Headlines
46:01we
46:01want
46:02you
46:02to
46:02see
46:02both
46:03sides
46:03and
46:03then
46:04from
46:04there
46:04you
46:05can
46:05form
46:05your
46:05own
46:05opinion
46:06so
46:07from
46:07global
46:08tensions
46:08driving
46:09off
46:09oil
46:10prices
46:10to
46:11local
46:11decisions
46:12involving
46:12billions
46:13in
46:13public
46:14funds
46:14today's
46:15stories
46:15remind
46:16us
46:16of
46:16one
46:17thing
46:17every
46:18peso
46:18counts
46:19and
46:20that
46:20is
46:20why
46:21conversations
46:22like
46:23these
46:23matter
46:24so
46:24I'm
46:24DJ
46:25Moises
46:25this is
46:26Beyond
46:26the
46:26Headlines
46:26have
46:27a
46:27good
46:27afternoon
46:34I
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