WeeklyPhilippine Update WEEKLY UPDATE WE TELL IT LIKE IT IS VOLUME VI, NO. 32 August 24 - 28, 2015 _______ ___ _ ____ __ ___PHIL. Copyright 2002 _ THE WALLACE BUSINESS FORUM, INC. accepts no liability for the accuracy of the data or for the editorial views contained in this report.__ Political VP Binay camp seeks probes on Sen. Trillanes "Quotes The camp of Vice President Jejomar Binay last week asked the Senate ethics committee to of the Week" investigate Sen. Antonio Trillanes IV for allegedly using Senate funds amounting to P1.63 million a month for his household expenses. Rico Quicho, Vice Pres. Binay’s spokesman for political affairs, said Senate documents show that more than half of the P2.93 million monthly allocation for Sen. Trillanes’ office goes to the salaries of 63 consultants, including his “We are not just crafting a legal document, but a houseboy, family drivers, media workers, campaign donors, ex-Magdalo soldiers and a brother political and historical document. We must not who was getting P71,200 a month. Mr. Quicho cited media reports that Sen. Trillanes’ just take into account the technical aspects of houseboy Mr. Eddie Ybañez was getting P3,500 a month and drivers Mr. Bernard Allen Marzan the law, but also infuse into it the history and culture of the various peoples of the and Mr. Jay-Ar Caro were being paid P11,500 and P8,100 a month, respectively. Mr. Marzan Bangsamoro.” and Mr. Caro, along with 14 other consultants, were members of the Magdalo group. The Magdalo was behind the Oakwood mutiny and Manila Peninsula siege during the time of Senator TG Guingona during the interpellation former President and now Pampanga Rep. Gloria Macapagal-Arroyo. Among these Magdalo of BBL on the issue of Internal Waters. soldiers are Mr. Segundino Orfiano Jr. and Mr. Ian Lee Punongbayan, who receive P71,200 a “While all citizens have the right to be heard and month, and Mr. Sonny Madarang who gets P71,300 a month. to peaceful assembly, the exercise of these rights cannot impinge on the rights of others or cause inconvenience to anyone.” Senate Electoral Tribunal starts hearing on disqualification case vs. Sen. Poe Interior secretary Mr Roxas on the Iglesia Ni Cristo (INC) protest. The Senate Electoral Tribunal (SET) started last week to discuss the disqualification case filed against Sen. Grace Poe. It met to iron out some organizational matters and has set in motion “What I would tell the public is to wait. Because the case that Mr. Rizalito David has filed questioning Sen. Poe’s nationality and residency there is still a motion for reconsideration [so] status, according to Sen. Vicente Sotto III. The procedure to hear Mr. David’s complaint has wait please.” been started, but he had not provided any details, Sen. Sotto said. The SET reportedly met at Chief Justice Maria Lourdes Sereno on Sen. a posh hotel in Manila. Sen. Nancy Binay, a member who was also present during the SET Juan Ponce Enrile’s exceptional release on regular meeting, refused to comment. The members are now considered “judges” who will humanitarian grounds. eventually weigh evidence on the petition filed against Sen. Poe, she said. Mr. David filed a “There was no deal struck, as some insinuate. disqualification case against Sen. Poe before the SET, questioning her nationality and The talks gave both sides an opportunity to residency. He also filed another case before the Commission on Elections. clarify issues and concerns.” Deputy Presidential Spokesperson Abigail New MMDA chief to be named in October Vate dispelling rumors that the government The Cabinet will have a few new faces in October. New government officials will be appointed struck a deal with the Iglesia Ni Cristo (INC). in October to replace Cabinet officials who will file their certificates of candidacy (COC) in October. President Aquino said he will have to replace Interior Secretary Manuel “Mar” Roxas II, Metropolitan Manila Development Authority (MMDA) Chairman Francis Tolentino, and Technical Education and Skills Development Authority Director-General Emmanuel Joel Villanueva, who intend to run in 2016 elections. Sec. Roxas, Chairman Tolentino and Director- General Villanueva are expected to file their certificates of candidacy before the poll body in October. Sec. Roxas earlier this month offered to resign after he was endorsed by Pres. Aquino in July. Binays allegedly got P1.26Bn from Makati janitorial deals An estimated P1.26 billion in kickbacks from the janitorial and security services contracts of the city government of Makati allegedly went to Vice President Jejomar Binay and his family, the former head of the Makati general services department (GSD) said. Mr. Mario Hechanova, who apart from being the former GSD head was also a former chairman of the bids and awards committee of Makati City, told the Senate Blue Ribbon subcommittee hearing last week that the DISCLAIMER kickbacks were derived from the padding of requirements of the city for security and janitorial The articles in this Philippine Weekly Update (PWU) have been culled from various media personnel and the administrative cost imposed on these contracts. Mr. Hechanova is currently sources. We cannot, therefore, vouch for in the witness protection program of the Department of Justice as a result of his testimony. The the accuracy of what is reported. Vice President’s spokesman maintained last week that all contracts entered into by the Makati City government under the term of Vice Pres. Binay were aboveboard. The Wallace Business Forum, Inc. 1 Aug. 24 – 28, 2015 Weekly Update 59 state schools suffer budget cuts FINANCIAL INDICATORS Latest Week Week-ago Year-ago Fifty-nine state universities and colleges (SUCs) will suffer funding cuts next year, including the University of the Philippines with a P2 T-Bill Rates (August 24, 2015 average) billion reduction in capital outlay. The combined budget for all the 91-day N.T. N.T. N.T. 114 state-owned schools of higher learning, however, will increase 182-day N.T. N.T. N.T. by P1.5 billion, Rep. Terry Ridon of party-list group Kabataan said. 364-day N.T. N.T N.T. Rep. Ridon said that while the total budgets of SUCs increased from P42.3 billion this year to the proposed P43.8 billion in 2016, 59 PESO DEPOSIT RATES (% p.a., August 10 – 14, 2015) SUCs of them would suffer cuts in allocations for maintenance and other operating expenses (MOOE) and capital outlay (CO). The Savings Deposit 0.00 0.00 0.00 MOOE represents an agency’s budget component for day-to-day Time Deposit operations and utilities, while the CO is provision for new Below 1 year 1.39 1.48 0.99 infrastructure. The total MOOE cuts for the 59 state schools would 1 - 2 years 3.46 2.25 2.26 2.21 Over 2 years 3.19 3.18 0.86 amount to P477.8 million. DOLLAR DEPOSIT RATES (% p.a., August 10 – 14, 2015) Economy Savings Deposit 0.19 0.19 0.23 Time Deposit Economy picks up pace in 2Q2015 60 days & below 0.62 0.59 0.63 61-90 days 0.68 0.71 0.73 Philippine gross domestic product (GDP) growth improved as 91-180 days 0.79 0.79 0.85 expected last quarter on much-improved state spending but still 181 days & above 1.01 0.98 0.94 failed to bring the 1H2015 anywhere close to the official full-year target. GDP rose 5.6% annually last quarter, picking up from LIBOR/SIBOR (% p.a., August 24-25, 2015) January-March’s downward-revised 5% but still below the 6.7% Libor 90 days 0.33 0.33 0.24 clocked the past year. Socioeconomic Planning Secretary Arsenio Sibor 90 days 0.93 0.93 0.40 Balisacan cited “the noteworthy recovery of growth in government Libor 180 days 0.52 0.53 0.33 spending,” with the state’s final consumption expenditure rising by Sibor 180 days 1.00 1.00 0.48 3.9% last quarter from January-March’s 1.7%. Despite last quarter’s uptick, the 1st semester GDP grew just 5.3% against a 7-8% full- FOREIGN EXCHANGE RATE (% p.a., August 28, 2015) year goal. To hit even just the lower end of that target range, Sec. PDS Weighted Ave. (P/US$) 46.70 46.37 43.66 Balisacan said, would now be “very hard.” “Given the 1H2015 Blackmarket (P/US$) 46.75 46.60 44.00 performance, we need to revisit the numbers,” he noted. PDS Weighted Ave. (P/EURO) 52.56 51.52 57.54 PRIME LENDING RATE (% p.a., August 28, 2015) PH to stay strong amid yuan devaluation – DOF The Philippines should be able to withstand the impact of China’s Bank of America 6.00 6.00 5.37 yuan devaluation due to the country’s strong economy, Finance BPI 5.45 5.45 5.03 Undersecretary Gil Beltran said. The Philippines’ current account Citibank 4.84 4.44 3.71 surplus hit a record high $12.6 billion in 2014, up from $11.4 billion BDO 5.50 5.50 5.06 Hong Kong & Shanghai Bank 5.68 470 4.55 in 2013. The current account surplus, an indicator of an economy’s ING Bank 4.50 4.50 3.75 health, shows a country’s exports and imports of goods and Metrobank 6.25 6.25 7.00 services, net income abroad, and net current transfers. China’s PNB 7.90 7.90 8.40 intervention on its yuan came following the sustained growth RCBC 6.75 6.75 6.75 slowdown in the world’s largest economy.