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Impeachment complaint against Duterte junked The House of Representatives has formally dismissed the impeachment complaint filed by Magdalo Party- List Representative Gary Alejano against President . The President is now immune from any impeachment proceedings for a year.

ith 217 affirmative votes, 4 negative votes, and no abstention, the lower house has approved WHouse Resolution (HR) 1015 or the “Resolution Dismissing the Verified Complaint-Affidavit filed by Rep. Alejano against Pres. Duterte.” Only opposition lawmakers Rep. Alejano, Albay 1st District Rep. Edcel Lagman, Ifguao Lone District Rep. Teddy Baguilat, and Akbayan Party-List Rep. Tom Villarin, who are all part of the House minority called the “Magnificent 7,” voted against the resolution. Rep. Alejano filed the impeachment complaint at the House on March 16, which was followed by his supplemental complaint on March 30. The Alejano complaint asserted that Pres. Duterte should be impeached on the grounds of culpable violation of the Constitution, betrayal of public trust, graft and corruption, and commission of other high crimes. Charges levied against Pres. Duterte include the alleged 8,000 HR 1015 is based on Committee Report 257 of the House extra-judicial killings brought by the war against illegal drugs; Committee on Justice, chaired by Oriental Mindoro 2nd District Rep. the existence of the Davao Death Squad (DDS); hiring of 11,000 Reynaldo Umali. The panel unanimously junked the impeachment ghost employees in Davao; unexplained wealth amounting to complaint because it was “insufficient in substance”even if it is P2.207 billion; and his failure to assert the sovereign rights of “sufficient in form.” All 42 members of the panel who were present the country in its dispute over the West Philippine Sea, Benham during the hearing voted to declare the complaint “insufficient in Rise, and Panatag Shoal (see Impeachment complaint filed substance,” arguing that all allegations were based on hearsay. against Duterte, readied for Robredo, March 2017 Analyst). During the hearing, Majority Floor Leader Rodolfo Fariñas In explaining his vote, Rep. Alejano argued that the grilled Rep. Alejano for filing a complaint in which he has no dismissal of the complaint demonstrates how the Congress “personal knowledge” or authentic records to support his claims. became an “accessory to the countless deaths in our Rep. Alejano noted that he had “personal knowledge” of these streets” and how it “shied away” from its constitutional allegations, as they were all culled from authentic records such duty to hold the President accountable for his actions.

The lower house has approved HR 1015, junking the impeachment complaint against Pres. Duterte.

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The Alejano complaint was found to be sufficient in form butinsufficient in substance.

The Malacañang welcomed the dismissal of the impeachment complaint.

Pres. Duterte now has immunity from impeachment proceedings for a year.

as online sources, newspaper reports, and other materials. On the contrary, staunch critic of Pres. Duterte and detained However, under Section 36, Rule 130 of the Revised Rules Senator criticized the committee for railroading on Evidence, “personal knowledge” only refers to those facts the impeachment proceedings by dismissing it outright. Sen. De or information that are “derived from one’s own perception.” Lima argued that a legislator who files the complaint does not need Information, particularly those from secondary sources, do not to have “personal knowledge” of the articles of impeachment amount to personal knowledge and are considered as hearsay. similar to the Estrada and Corona impeachment cases. Rep. Fariñas argued that the person with “personal She further noted that the Alejano complaint complied with knowledge” of the allegations should be the complainant in the the criteria required to be considered “sufficient in substance.” case. He added that Rep. Alejano could be liable for perjury Citing the Rules of Procedure on Impeachment Proceedings in or an ethics violation at the House since he had sworn under the House, sufficiency in substance is met “if there is a recital oath that he had personal knowledge of the allegations, even of facts constituting the offense charged and determinative if he has none. The majority floor leader also asserted that the of the jurisdiction of the committee.” As such, the weight Justice committee cannot proceed with further deliberations and sufficiency of the evidence need not yet be determined. if the complaint is not backed up by sufficient documents The impeachment complaint is as good as dead at the since it will just turn the hearing into a “fishing expedition.” House of Representatives, as 267 out of the 292 lawmakers The rejection of the impeachment complaint was welcomed are allies of the President. From that figure, 121 legislators by the Duterte administration. Presidential Spokesperson Ernesto belong to the Duterte administration’s ruling party, the Abella reiterated that the complaint “was from rehashed, Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban). trumped up charges aimed at undermining the duly constituted As per the Constitution, Pres. Duterte is now entitled government.” Usec. Abella refuted claims that the President to a 1-year immunity from impeachment proceedings. interfered with the proceedings, saying that he respects Congress Now that the brief impeachment hearing is over, the Congress as a co-equal branch of the government. Furthermore, Chief should now focus on enacting vital and critical reforms that are Presidential Legal Counsel exclaimed that badly needed by the country such as the comprehensive tax reform as predicted, the impeachment did not gain ground in the package, the freedom of information law, and the emergency House because it was just founded on hearsay. Atty. Panelo powers to address traffic and transportation crises. It’s not too added that the charges only served to tarnish the President’s certain they will, unless the President applies pressure to them. reputation and to “get the 3 minute of fame of the complainant.”

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Duterte admin retains ‘very good’ rating The respondents gave the Duterte administration "good" ratings for the following: The most recent survey released by the Social Weather hh Developing science and technology (+49), down by 1 point; Stations (SWS) revealed that public satisfaction with the hh Fighting terrorism (+47), up by 6 points from +41; Duterte administration remained “very good.” However, the hh Defending the country's territorial rights (+46), down by 8 poll showed lower satisfaction in the government’s efforts points from December's +54; in fighting crime, defending territorial rights, providing hh Providing jobs (+43), down by 8 points; jobs, controlling inflation, and ensuring that no family will hh Fighting crime (+41), down by 9 points; ever be hungry. hh Eradicating graft and corruption (+39); According to the SWS’ survey for 1Q2017, 75% of hh Solving the problem of extrajudicial killings (+37), down by the respondents said they were satisfied with the national 3 points from December's +40; government as compared to 9% who were not satisfied for hh Reconciliation with communist rebels (+32), up by 2 points a net satisfaction score of +66. Some 16% of respondents than December's +30; were undecided. The poll was conducted from March 25 to hh Foreign relations (+46); and 28. If the undecided are not considered, net satisfied is 88%. The administration’s net satisfaction rating for the first 3 months hh Reconciliation with Muslim rebels (+33). of the year was 5 points higher than the +61 posted in 4Q2016. The administration received "moderate" ratings for the The Duterte administration’s+66 rating qualifies as following issues: “very good.” The SWS classifies net satisfaction ratings hh Ensuring that no family will ever be hungry (+22), down by of at least +70 as “excellent;” +50 to +69 as “very good;” 12 points;

+30 to +49, “good;” +10 to +29, “moderate;” +9 to -9, hh Fighting inflation (+13), down by 12 points from December's “neutral;” -10 to -29, “poor;” -30 to -49, “bad;” -50 to "moderate” +12; -69, “very bad;” as well as -70 and below as “execrable.” hh Recovering the "hidden wealth" stolen by former President The administration retained its "very good" rating Ferdinand Marcos and his cronies (+22), down by 2 points; and in "helping the poor" albeit lower by three points from the +66 score in the December 2016 survey. hh Resolving the traffic problem (+21).

Source: SWS

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Source: SWS

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PUBLIC SATISFACTION RATINGS (%) OF SELECTED LEADERS 90

80 78

70 66

60 56

50 43 40 36

30

20 10 10

0 Duterte Widodo Abe Merkel Trump May

Source: SWS

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This is the first time that the SWS included “resolving CA rejects Lopez as DENR Secretary the traffic problem” in its government report card. The results of the SWS poll also revealed that satisfaction The bicameral Commission on Appointments (CA) rejected with the government’s performance rose across all regions. the ad interim appointment of as Secretary of the In , the president’s bailiwick, satisfaction with the Department of Environment and Natural Resources (DENR). administration increased to +79 from +78 in December. The Ex-military Chief assumed her vacated post. administration received a net satisfaction of +67 in from +58 in the previous quarter. Satisfaction from Metro After 3 confirmation hearings, the CA finally made its decision to rose by 9 points to +62 while Balance ‘s satisfaction reject the appointment of Gina Lopez, thereby ending her 10-month with the current administration grew by 4 points to +60. stint as the country’s environment chief. Senator Manny Pacquiao, The Duterte administration continues to enjoy high chairman of the 24-man CA panel on Environment and Natural satisfaction rating from the Class D, receiving a net satisfaction of Resources, moved to recommend her rejection in the plenary. +66 from +61 in December. The administration's net satisfaction Ms. Lopez was the 2nd cabinet member of the Duterte ratings across other socioeconomic classes also stayed very administration to be rejected by the CA after former Foreign Affairs good: +69 for Class E (up by 7 points from December's +62) Secretary Perfecto Yasay Jr. in March. She was bypassed twice by and +61 for Class ABC (up by 6 points from December's +55). the commission only to be reappointed again by President Rodrigo In a statement, Presidential Spokesperson Ernesto Duterte. Official record of how the CA members voted cannot be Abella said the latest poll results showed overall a “growing obtained as the voting was done secretly during an executive session. public appreciation with the Duterte administration.” In March, the CA adopted new rules in handling presidential “The people are beginning to feel the significant strides appointees to allow secret voting and to implement a 3-strike of the current government in the following areas, namely: rule. These were implemented prior to the confirmation helping the poor (which was rated ‘very good’), fighting hearings of former Sec. Lopez and former Sec. Yasay. terrorism, defending the country’s territorial rights, providing The “secret balloting” is now allowed under an executive jobs, fighting crime, eradicating graft and corruption, session. However, the secrecy rule can be lifted through a solving the problem of extra judicial killings, reconciliation majority vote, with a quorum being present, of the committee. with Muslim rebels, and reconciliation with communist Majority Floor Leader Vicente Sotto III asserted that this rebels (which were all rated ‘good’),” Mr. Abella explained. practice would allow lawmakers to exercise their conscience President Rodrigo Duterte’s high satisfaction rating is vote instead of succumbing to pressures from lobbying groups. complemented by massive support from lawmakers, especially Under the 3-strike rule, the CA is now required to the members of House of Representatives. These give him decide on whether to reject or confirm an appointee if he sufficient political capital that he can use to push for the enactment or she has been already bypassed thrice. Once rejected, the of tough but essential measures. He already certified as urgent President cannot reappoint the official for the same cabinet the first package of tax reform proposals, which should benefit post. This is what happened with the case of Lopez and more . He should also use his enormous political Yasay. This rule was adopted to avoid the long-standing capital to seek Congressional approval on the measure giving practice of repeatedly reappointing the same official after him emergency powers to solve the traffic crises in Metro numerous bypasses, which undermines the powers of the CA. Manila and other urban centers such as Cebu and Pampanga. Ms. Lopez’s rejection comes as no surprise due to her firm and According to a study by the Japan International Cooperation uncompromising anti-mining advocacy that put her at odds with Agency (JICA), the loses about P2.4 billion a the mining sector and some of her colleagues in the cabinet such day due to the debilitating traffic jams. If the traffic situation as Executive Secretary and Finance Secretary remains unsolved, losses could balloon to P6 billion per day. Sonny Dominguez. Throughout the 3 hearings, CA members and various groups questioned Ms. Lopez about her lack of technical competence, conflict of interest, and unlawful policy decisions. Some of her controversial decisions included the closure of 23 mines and the suspension of 5 others in February without sufficient due process; cancellation of 75 mineral production sharing agreements (MPSA) for mining sites located within supposed watersheds; order for the suspended mines to pay P2 million per hectare of farmland affected by the mining operations without any legal basis; and a total ban on prospective open-pit mines in the country. The Chamber of Mines of the Philippines (COMP) even filed charges against Sec. Lopez before the Office of the Ombudsman for graft and unethical behavior in relation to the closure of their mining operations. Geology students and professors of the University of the Philippines-National Institute of Geological Sciences (UP-NIGS) also expressed their opposition to Ms. Lopez’s confirmation, citing her “unscientific and illegal actions”as basis.

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The CA voting was done secretly during an executive session.

The rejection of Sec. Lopez was expected because of her firm anti-mining advocacy.

Sec. Cimatu is the 2nd retired general to be named DENR Secretary.

Pro-environmental groups expressed outrage over In 2011, he faced plunder charges after he was accused the CA decision. Greenpeace Southeast Executive by former military budget officer and comptroller George Director Yeb Saño described the rejection of Sec. Lopez as Rabusa of receiving a P110 million “pabaon” (send- a “rejection of change.” The Kalikasan People’s Network off gift) upon his retirement. However, the Ombudsman for the Environment also argued that the “poisonous politics dismissed the charges in 2013 due to lack of evidence. of mining plunderers succeeeded in tilting the CA numbers The rejection of Gina Lopez signals a possible new direction game to their favor,” adding that the lawmakers who voted for the mining industry after being in limbo months under “no” against Sec. Lopez should be disclosed and investigated. her term. Sec. Cimatu’s decisive, strategic leadership, and Meanwhile, the COMP was grateful over the rejection of managerial experience as a former military officer will be helpful Sec. Lopez but admitted that “this is not the end, but rather the in the pursuit of mining industry growth and environmental beginning of a new chapter for the mining industry.” Despite conservation. It is expected that he will be more flexible and the strong support of Pres. Duterte to Sec. Lopez, Malacañang open for dialogue not only with the mining sector but also with respected the decision of the CA because it underwent a democratic all stakeholders in the environment and natural resources sector. process, according to Presidential Spokesperson . Although the mining community expressed relief at the A week after the decision, Pres. Duterte appointed ex-military change, there remains some concern about the appointment chief Roy Cimatu as the new Environment Secretary. Sec. Cimatu of Mr. Cimatu as DENR Secretary due to his lack of previously served, although for a brief 4 months, as the Chief experience in environmental work and understanding of the of Staff of the Armed Forces of the Philippines (AFP) under mining sector. He is new to both. Public concern has also the Arroyo administration in 2002. He is the 2nd retired general been raised over the increasing number of former military to be named DENR Secretary, the first one being former AFP men being appointed to a cabinet and sub-cabinet position. Chief of Staff and Defense Secretary Angelo Reyes in 2006. Sec. Cimatu was also the Special Presidential Envoy to the Middle East during the height of the U.S.-Iraq War in 2002, and was extended in this post until 2011 by former President Benigno Aquino III. In October 2016, Pres. Duterte named him again as Special Presidential Envoy to the Middle East.

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1Q2017 trust ratings of selected countries and in 1Q2017, down by 3 points from its +9 score in the last quarter, int’l orgs – SWS, Pulse Asia while China garnered a mark of -4, a 13-point decrease from the +9 it received in the preceding period. Among the 7 countries included in the SWS survey, North Korea recorded the lowest The U.S. remains the most trustworthy country for Filipinos net rating at -5, an improvement of 2 points from -7 in 4Q2016. The same survey also bared net trust ratings for a few according to the latest nationwide polls conducted separately international organizations (see figure on Net trust ratings for by the Social Weather Stations (SWS) and Pulse Asia. selected international organizations). Trust with the United Meanwhile, China and Russia still received low trust ratings Nations (U.N.) stayed “good” at +45, down by 3 points from despite the Philippines’ enhanced ties with these countries +48 in the previous quarter, while trust to the European Union under the Duterte administration. (EU) continued to be “moderate” at +19 despite a 7-point drop from +26 in 4Q2016. Included for the first time in the survey The 1Q2017 SWS survey showed that the net trust rating is Amnesty International (AI), which garnered a “neutral” +8 (% much trust minus little trust) of the U.S. remained “very net trust rating from Filipinos. All these 3 organizations have good” amid constant decline in its scores since President been at the receiving end of tirades from Pres. Duterte for Rodrigo Duterte assumed office in June 2016. The survey criticizing his war against illegal drugs, which they claimed revealed that 70% of adult Filipinos have “much trust,” while to have resulted in human rights violations in the country. 13% have “little trust” with the U.S., yielding a net value of Meanwhile, Pulse Asia also released the +56 (see figure on Net Trust Ratings for Selected Countries). results of their own survey regarding the trust ratings The +56 rating is a 3-point decline from the +59 it received of selected countries and international organizations. in 4Q2016. This is the 3rd straight quarter that the trust with The poll shared almost the same findings with SWS. the U.S. has decreased since it posted +72 in 2Q2016. It Pulse Asia reported that the U.S. obtained the highest trust dropped by 6 points in 3Q2016 (+66), and another 7 points in rating at 79%, a 3-point increase from 76% in 4Q2016. This high 4Q2016 (+59). Notably, this is the lowest net trust rating for confidence is reflected across all geographic areas (75-88%), and the U.S. in the last 7 years since it tallied +35 in March 2010. socio-economic classes (72-80%). Majority of Filipinos also trust Japan and both maintained a “good” net trust Japan at 75%, followed by Australia at 69%, and Great Britain/ rating from Filipinos. Japan received a score of +42, a 5-point United Kingdom at 53%. The level of trust with the United Kingdom increase from the +37 in 4Q2016, while Australia posted significantly rose by 14 points from 39% in the previous quarter. +38, hardly moving from the +37 it recorded in the previous The same poll showed that China is the most distrusted country quarter. Moreover, France received a “moderate” trust for a majority of Filipinos at 63%. This sentiment is consistent rating of +18, a 19-point surge from its “neutral” -1 score across all geographic areas (53-70%) and socio-economic in October 2000, the last time it was included in the survey. groupings (63-69%). Distrust is also the prevailing sentiment Despite the Duterte administration’s foreign policy pivot of Filipinos towards Russia at 56%. Only 37% and 42% of the towards Russia and China, trust with the 2 countries remained respondents expressed trust towards China and Russia, respectively. “neutral” from the previous quarter. Russia obtained +6 rating

Trust with the U.S. stayed “very good” despite registering its lowest net rating since 2010 – SWS.

China is the most distrusted country of Filipinos – Pulse Asia.

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Source: SWS

Source: SWS

Tags: SWS, Pulse Asia, U.S., China

9

Source: SWS

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For international organizations, the U.N. received a trust rating and bylaws to formalize its acquisition of the Postal Bank. of 82%, an 8-point surge from 74% in the last quarter, while the Finance officials said that while the OFW Bank is being ASEAN garnered 81%. No other groups were included in the survey. established, Land Bank will open a representative office The SWS and Pulse Asia surveys indicate that most Filipinos in Saudi Arabia to serve some 800,000 Filipinos in one of still value the country’s traditional allies – U.S., Japan, and the country’s largest overseas labor markets. The Landbank Australia – as reflected by their high trust ratings. On the contrary, unit will be opened in Riyadh as 40% of Saudi-based OFWs Filipinos are still apprehensive towards China and Russia despite reside there. The Riyadh branch will initially offer financial the government’s efforts to renew and strengthen ties with them. education and investment counselling services to OFWs. The low trust ratings for the 2 countries did not surprise the “We are going to do focus group discussions with Duterte administration. “That’s par for the course. After all these representatives of our target markets to determine where years, we’ve been programmed to think these are the enemies,” and what services are needed, and what name and Presidential Spokesperson Ernesto Abella said. However, logo to adopt for the bank,” Mr. Buenaventura added. Secretary Abella explained that the “renewed ties with Russia and To operate the OFW bank, Landbank needs to secure clearances China provide a healthy opportunity to appreciate and understand from the Governance Commission for Government Owned and these 2 countries.” “Our enhanced relations with China and Controlled Corporations (GCG) and the Philippine Competition Russia will bolster our international relations and give us more Commission (PCC), as well as approvals from the Securities and room to grow, expand, and become more rooted as we get to know Exchange Commission (SEC), the BSP and its Monetary Board. ourselves better as a nation in a community of nations,” he added. “The OFW bank will be a listed company with an authorized The SWS and Pulse Asia polls were conducted through capital of P3 billion and a subscribed capital of P2 billion, face-to-face interviews of 1,200 adults aged 18 years and above of which P1 billion is paid-up by the Landbank. Another P1 nationwide. Both has sampling error margins of ± 3% for national billion will be open for subscription to OFWs who can acquire percentages and ±6% each for subnational estimates in Metro them by buying shares in the bank,” Mr. Buenaventura said. Manila, Balanced Luzon, Visayas and Mindanao. The margin of The establishment of an OFW Bank is a positive development errors of Pulse Asia are at 95% confidence level. Both surveys towards the improvement of services to 11 million OFWs were conducted in March, and published their results in May. that continue to uplift the country’s economy. In 2016, OFWs Based on the metrics used by the SWS, net satisfaction ratings sent in a total of $29.7 billion in remittances, up 4.9% from with +70 and above are considered “excellent;” +50 to +69 as the year-ago level, and higher than the 4% growth projected “very good;” +30 to +49 as “good;” +10 to +29 as “moderate;” by the central bank. The central bank attributed the increase +9 to -9 as “neutral;” -10 to -29 as “poor;” -30 to -49 as in remittances to improving global economic conditions. “bad;” -50 to -69 as “very bad;” -70 and below as “execrable.” Top sources of remittances include the U.S., SaudiArabia, United Arab Emirates (UAE), Singapore, United Kingdom, Japan, Qatar, Duterte admin to open OFW Bank Kuwait, Hong Kong, and Germany. In 2016, OFW remittances accounted for 9.8% of the country’s gross domestic product (GDP). President Rodrigo Duterte is optimistic that a bank that will specifically cater to Overseas Filipino Workers (OFWs) will be operational by the 3Q2017. Establishing an OFW bank was among Pres. Duterte’s campaign pledges. The OFW Bank is expected to launch products and services that will ease the lives of the more than 11 million OFWs around the globe.

The Finance department expects the Land Bank of the Philippines to establish the OFW Bank by September this year. This will be borne out of the Land Bank’s acquisition of Philippine Postal Savings Bank (Postal Bank) as a subsidiary that will be 30% owned by OFWs. Department of Finance (DOF) Secretary Carlos Dominguez said that LandBank has "sufficient resources" to complete the Postbank acquisition. Meanwhile, LandBank president Alex Buenaventura said the OFW Bank will have an authorized capital of P3 billion and a subscribed capital of P2 billion. It will list shares in the local exchange. The bank will consult with the public on what services the OFW Bank should offer. The Landbank, Commission on Audit (CoA), and the Bangko Sentral ng Pilipinas (BSP) or central bank will conduct due diligence to start the process of converting the Postal Bank into a LandBank subsidiary. Landbank will also draw up a purchase agreement and amend its articles

Philippine ANALYST POLITICAL May-June 2017