Power & Mining – Infrawatch PH

DENR contradicts own officials in Manila Bay statement

Sep 16, 2020

“Ano ba talaga, humingi ng ECC exemption o pumasa sa environmental impact assessment? Hindi po pwedeng pareho, kasi yung isa dun sinungaling.”

This was the pointed question of Terry Ridon, Infrawatch PH convenor, on the Department of Environment and Natural Resources’ belated official statement on the controversial Manila Bay white sand project.

Contradictory statements

Ridon said prior to the DENR statement, its officials had been insisting that no environment study is needed on the ‘beach nourishment’ project, as it is a rehabilitation project

In a phone interview with Philstar.com, DENR Undersecretary Benny Antiporda said, “It is a rehabilitation project, not a construction project. It’s only a beach nourishment [project] in which we’re beautifying it.”

READ: No environmental impact study needed on Manila ‘beach nourishment’

“Maganda siguro mag-usap usap sila sa DENR kung ano ba talaga yung paliwanag nila sa environmental permitting process ng proyekto, kasi kung ano-ano nalang yung sinasabi nila sa publiko.”

Perjury

Ridon also said other DENR officials made contradictory statements before Congress, which may subject them to perjury.

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“During DENR’s budget hearing, DENR Undersecretary Jonas Leones said that desilting is included in the P389-Million project, in which P28-Million constituted the cost of dolomite. However, a perusal of the project’s DPWH supplemental bulletin shows no line-item relating to desilting activities, but mostly the filling of sand along the Manila Bay boardwalk. How can this not be perjury? Binobola na natin ang publiko, binobola pa natin ang Kongreso.”

Release approved environmental assessment

Ridon and environment groups had been insisting that the project should be suspended for not having the required environmental compliance certificate.

“Under DENR’s own rules an ECC is required if a project is located in an area with tourist potential and with unique historical interest. Manila Bay falls under both requirements, and thus requires an ECC. With DENR’s new statement that the project ‘passed the required environmental impact assessment’ we challenge the agency to release the documentation related to this, the project’s ECC. Otherwise, binobola lang po natin ang mga tao.”

Critics’ Manila Bay track record started way before Duterte

Ridon assailed the ‘sob story’ of the DENR asking for the critics’ bonafides on cleaning Manila Bay.

“As early as 2009, we had already been working with Tony Oposa and murdered environment journalist Gerry Ortega in visiting Manila Bay tributaries to address solid waste in esteros. As a new lawyer in 2012, we had been representing groups opposing reclamation activities in the area where the white sand is being laid. Working with Senator Cynthia Villar from 2013, reclamation activities in Manila Bay’s Las Pinas-Paranaque critical habitat area has long been indefinitely suspended. Kaya wag kayong magpaawa dyan na parang kayo lang ang nagmalasakit sa Manila Bay.”

‘Short-term’ Manila Bay white sand project yields 64% return

Sep 9, 2020

“The greatest insult to the public is spending P389-Million for what DENR officials admit as a ‘short-term’ intervention to the very real problem of pollution in Manila Bay. The fact that they compared the effectivity of dolomite to aquarium sand shows that they grasping at straws to justify such enormous expense without scientific basis. Let this be clear: We are spending P389-Million simply to window-dress a thin stretch of Manila Bay, nothing else. Not to clean it, not to improve water quality levels. This much for a project not even included in any Manila Bay master plan. This much for a project without an actual environmental study.”

This was the statement of Terry Ridon, Infrawatch PH convenor.

P28-Million for dolomite sand

During the briefing of the House of Representatives on the budget of the Department of Environment and Natural Resources, DENR Undersecretary Jonas Leones admitted that only P28-Million was spent to purchase dolomite sand from Cebu.

Upon the query of House Minority Leader Rep. Bienvenido Abante, Mr. Leones said that only around six percent of the entire beach nourishment project was spent on dolomite sand.

“Yung P389-Million ito po ang gagamitin sa buong proyekto ng beach nourishment, about six percent lang po yung sa dolomite doon, the amount of P28-Million.”

Pressed further, Mr. Leones clarified where the rest of the funding will be used –

“Sa P389-Million ang kasama po ditong mga activity unang una po yung tinatawag nating desilting, kailangan po kasi nating linisin ang ilalim ng Manila Bay. … Pangalawa po sa paglalagay po natin ng buhangin, kailangan po … merong tayong geo intervention to make sure that the sand will not easily be washed out in case of strong current. … Ito po ang mga activities na nakapaloob po sa P389-Million.”

From 54% to 64% project return: Single bidder, bid variance of 2% from approved budget

With respect, this makes the case for the project far worse, because by any measure, the costs of the project minus the admitted costs of dolomite sand will not approximate the total contract price of P389-Million without overstating the actual costs of the project.

Updating our own estimates, P28-Million of dolomite sand and other costs yields a baseline cost of only P118,820,000.00.

Correspondingly, the eight-percent return for the project should only be around P10,332,173.91, and all other added costs no more than P20-Million.

Unless the DPWH clarifies the cost calculations for the project, it would be reasonable to assume that the remainder of the P389-Million budget would amount to profits with around 64% return, as all other remaining project components are negligible costs as compared to sand supply and backfilling costs.

This amount is more than double the estimated baseline total costs of the project.

It is important to note that the price variance of the total contract price to the approved project budget stands at only 2.04%, and there was only one single bidder.

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Beach nourishment: ‘Short-term activities’ not part of Manila Bay master plan

On the other hand, Mr. Leones also admitted that the project is part of ‘short-term activities’ for Manila Bay.

“… Ito pong ginagawa natin ngayon na beach nourishment and desilting and grubbing, these are short-term activities which we believe will support the NEDA [Manila Bay master] plan in the long-term.”

In fact, Muntinlupa Rep. Ruffy Biazon categorically asked Mr. Leones if the current project is not part of any of two existing Manila Bay master plans.

Mr. Leones answered in the affirmative —

“Yes, Mr. Chair. That is correct, Mr. Chair.”

COA and SC urged: Clear basis to suspend project

Given these new developments, the following facts are clear, and should serve as basis to suspend the project:

a. There is no ECC for the project, despite clear environmental rules requiring ECCS for developments in tourist spots and historical areas.

b. The Manila Bay white sand project is considered a short-term activity despite the high project cost.

c. The beach nourishment project is not part of the overall Manila Bay master plan.

d. Without DPWH clarification on costs, the projected return on the project will reach almost seventy percent.

Both the Commission on Audit or the Supreme Court should intervene to protect public funds and the environment.

The Commission on Audit can immediately conduct a special audit on the project, while the Supreme Court can immediately activate the Manila Bay Advisory Committee, both of which can intervene to determine whether the processes undertaken by the project are all aboveboard.

ECC exemption for Manila Bay white sand project violates DENR’s own regulations

Sep 7, 2020

By seeking an exemption from its own environment compliance regulations, DENR violated Presidential Decree No. 1586 (Environmental Impact Statement System Law) and DENR Administrative Order No. 2003-30, the agency’s own implementing rules and regulations governing environment compliance certificates.

Under PD No. 1586 and DAO No. 2003-30, projects that require an ECC are those located in Environmentally Critical Areas such as:

a. areas set aside as aesthetic potential tourist spots
b. areas of unique historic interest

Executive Order No. 69, series of 1999, designates portions of the waters in Manila Bay and its foreshore area as a special tourist zone.

The EO further orders the conservation and maximization of areas in Manila Bay with tourism potential.

Clearly, there should be little doubt that this strip of beach does not only have aesthetic potential as a tourist spot, but has in fact proven itself as an actual tourist attraction for its prime sunset views.

On the other hand, the National Historical Commission of the Philippines, in its 2012 Resolution No. 19, declared the “Manila Bay and Waterfront from Del Pan Bridge to the Cultural Center of the Philippines” a National Historical Landmark (NHL) as it is the “sacred ground of our country’s long and rich history.”

In that resolution, the NHCP underscores the importance of the bay to the country as it was on its shores that an ancient civilization (later Islamic communities) thrived and for being an international commercial center since the precolonial times.

It also cited the bay’s other historic feats such as the 1570 battle between the Spaniards and Filipino forces, the Spanish-Dutch battle of 1647, the British invasion of the 1760s, the Battle of Manila Bay in 1898, among others.

These government issuances show that the Manila Bay white sand project is a covered activity requiring an ECC, as the project is in:

a) an area that is set aside as an aesthetic, potential tourist spot and;
b) an area of unique historical interest.

As such, there is absolutely no basis for the DENR to say that its project is not covered by ECC rules. The proponents should have applied and received an approved ECC before starting the project.

There is therefore clear legal basis for the project to stop proceeding until and unless an ECC has been issued by the DENR itself.

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The environment department should be the first to follow its own environment laws and regulations.

SC Manila Bay Advisory Committee should intervene

Most important, this presents a prima facie case for a Writ of Kalikasan in the Supreme Court, including a temporary environment protection order stopping the Manila Bay white sand project.

Manila Bay spans several cities and provinces, as far as Bataan and Cavite, such that there will be no difficulty complying with the Writ of Kalikasan’s procedural requirements relating to the potential environment impact of the project in several localities.

At the very least, the Supreme Court should intervene under its Manila Bay Advisory Committee (MBAC) led by Chief Justice Diosdado Peralta.

The MBAC was reconstituted by the Chief Justice himself on 19 December 2019.

The Committee is tasked to maintain the mandate of the continuing mandamus and enable the Court to verify the reports of the government agencies tasked to clean up the Manila Bay.

As such, the MBAC should not wait for a fresh case to be filed before intervening on the white sand controversy, as it this afford the public immediate relief from the potential environmental impact of the project.

Clearly, the SC should be informed that the DENR has not only violated its own rules, but also overstepped its mandate in Manila Bay, either based on SC’s continuing mandamus or President Rodrigo Duterte’s Manila Bay Task Force.

Both bodies call for the cleanup, rehabilitation, restoration maintenance of the WATERS of Manila Bay to a level fit for swimming; and also to improve water quality through the reduction of coliform levels in all river systems and tributaries within Manila Bay.

Both make no mention of a mandate to beautify a thin stretch of Manila Bay’s 190-kilometer coastline.

Terry Ridon is the convenor of Infrawatch PH. His environment law advocacy in the landmark case of Casiño v. Paje developed jurisprudence which allowed writs of kalikasan to challenge defects on permits causally linked to environmental damage.

Manila Bay white sand project margins could reach 55-percent (PHP 216.727-Million)

Sep 5, 2020

Unless fully disclosed and clarified by the Department of Environment and Natural Resources, the estimated project return of the Manila Bay white sand project could reach a staggering 55-percent of its approved budget.

First, some numbers and assumptions.

a. The approved budget of the Manila Bay project stands at PHP 397-Million.

b. A sizable portion of any construction project consists of labor and materials. A portion includes the payment of Value-Added Tax and the typical contractor’s return of around eight percent.

c. For this project, the bulk of the work are earthworks, particularly backfilling. There are no other major works for this project except earthworks.

d. In DPWH, the typical unit cost of backfilling work is around PHP 442.89 per cubic meter. It will be assumed that it costs PHP500 per cubic meter for simplicity.

e. The project requires a total of 164,700 cubic meters of sand. We will make projections based on dolomite pricing at 600 per cubic meter and generic sand at 1000 per cubic meter.

f. It is assumed that the actual project budget is the same as the approved project budget.

Now, the projections: With backfill work costing PHP500 per cubic meter, this amounts to PHP 82,350,000.00.

A. Using dolomite sand

a. Using the 2017 Mines and Geosciences Bureau pricing of dolomite at 600 per cubic meter, the total price of 164,700 units of dolomite is PHP 98,820,000.00.

b. Adding the cost of backfill work and dolomite units yields a baseline total project cost of PHP 181,170,000.00

c. Subtracting the baseline total cost from the approved budget yields PHP 216,727,376.62.00.

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d. On its face, this constitutes a gross margin of 54.47%.

B. Using generic sand

a. The market price of generic sand stands at PHP 1000 per cubic meter. 164,700 units of generic sand is PHP 164,700,000.00.

b. Adding the cost of backfill work and generic sand units yields a baseline total project cost of PHP 247,050,000.00.

c. Subtracting the baseline total cost from the approved budget yields PHP 150,847,376.62.

d. On its face, this constitutes a gross margin of 37.91%.

C. DPWH limits contractor profit to eight percent for projects with estimated direct costs above PHP 150-Million

a. DPWH allows a profit margin of only eight percent of a project’s estimated direct costs.

b. Using dolomite sand’s baseline project costs, margin should only be around PHP 15,753,913.04.

c. Using generic sand’s baseline project costs, margin should only be around PHP 21,482,608.70.00.

We’d glad to be proven wrong. But in the meantime, this.

Terry Ridon is the convenor of Infrawatch PH. He is currently enrolled in Harvard Business School’s General Management Program and recently received the Executive Certificate in Public Policy at Harvard Kennedy School.

Manila Bay white sand project costs P795k per meter

Sep 4, 2020

An infrastructure-oriented thinktank revealed that the Department of Environment and Natural Resources’ 500-meter Manila Bay white sand project along Roxas Boulevard costs a whopping P795,000 per meter.

“The last time white sand was on the news, a former President was convicted of plunder. DENR’s white sand project is worse than plunder, because the project’s use of dolomite sand as beach topfill causes cancer, lung failure and other serious illnesses.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former urban poor chief of the Duterte administration.

Wrong priorities

Ridon said the approved budget of the Manila Bay Rehabilitation Program (Baywalk area) is PHP 397.897-Million, such that the white sand project costs around PHP 795,000 per meter of rehabilitating the Manila Baywalk.

“For comparison, the average cost of a two-lane road is around P25 million to P30 million per kilometer. The same amount can also fund a month’s social amelioration funding for almost 80,000 vulnerable families.”

Dolomite sand: Non-viable as beach material; exposure leads to cancer, lung failure

Ridon warned that the country’s major dolomite sand supplier makes no mention that dolomite can be used as topfill for beaches.

“Dolomite sand has typically been used for as: auxiliary materials for iron and steel, plate glass for construction materials, automotive glass, fertilizer, soil conditioner. Nothing in this list mentions dolomite as viable for use as artificial sand for beaches. So why is DENR insisting that there is nothing irregular about using dolomite sand in Manila Bay?”

Ridon said this is probably due to the proven ill effects of dolomite sand exposure on human health.

” Several studies consistently state that dolomite exposure is a hazard to human health:

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a. May cause irritation of cornea, burning, itching and redness to the eye.
b. Repeated or prolonged exposure may dry out the skin and cause irritation.
c. Irritation of the lungs, coughing or choking may occur.
d. Overexposure may cause silicosis, cancer, bronchitis, or emphysema.”

Ridon said DENR’s ‘bright boys’ should have known the health risks of dolomite sand before greenlighting its use in the Manila Bay project.

“No amount of motherhood statements will save DENR from direct responsibility for this monumental blunder. There is nothing to be proud about using dolomite sand as topfill. DENR will be causing another round of public health emergencies if they insist on this material for the project. The safety of the material was their holdout.”

Disclose total procurement cost for dolomite sand

Ridon said the DENR should disclose the total cost of procurement for dolomite sand, to assure the public that there was no overpricing.

“The unit cost of dolomite sand should be no more than PHP 600 per metric ton (or no more than the total amount of PHP 56.977-Million for 62,100 cu. meters) which is the highest retail price recorded by the Mines and Geosciences Bureau in 2017. The current market price of dolomite sand is PHP469.50 per metric ton. Anything more will lead the public to believe that the project is not only a health hazard, but also overpriced.”

Unnecessary, merely cosmetic

“Unless DENR quits spewing motherhood statements to defend this project, fake white sand on Manila Bay looks like a very expensive, unnecessary cosmetic intervention along such a small stretch of its 190-kilometer coastline.

Worse, this poses as a significant health hazard at a time when our healthcare system is already overheating.”

“This is not a good sight, given government’s inadequate funding to confront the coronavirus crisis. Because harmful white sandy beaches will certainly not put food in the mouths of our most vulnerable families.”

ERC urged to fine other power utilities over billing confusion

Aug 28, 2020

An infrastructure-oriented thinktank called on the Energy Regulatory Commission (ERC) to similarly fine other power distribution utilities for also violating ERC directives during the community quarantine.

“The ERC is setting itself up to charges of discrimination and equal protection violations if it focuses its attention solely on Meralco. We have noted that other distribution utilities (DUs) around the country had encountered similar complaints during the lockdown. By failing to include similarly situated DUs, it is ignoring a larger segment of the population that had also encountered the same concerns in their electricity bills during the pandemic.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House energy committee member.

ERC should not ignore other complaints

Ridon said that during hearings in both House and Senate, customers from power utilities outside the Meralco franchiser area were also complaining in the hearings’ social media live feeds that there were also issues with their electricity bills.

“The ERC should resolve customer complaints on other DUs, to show that it is fairly implementing its mandate to ease the public’s burden during the pandemic. If not, it would appear that the commission is merely singling out Meralco to score political brownie points.”

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Legal challenge

Ridon, a lawyer, warned that failing to do so may be used by Meralco to challenge the fines in court.

“The basis of Meralco’s fines is supposedly due to violations of ERC’s ECQ advisories on April 15 and May 5, which require estimated customer billings to indicate the word “ESTIMATE” to clearly show that billing adjustments may be made at a future time. The advisories cover all power utilities in the country, all of which had undertaken estimated billing during the ECQ and encountered customer confusion over their billings. The ERC thus cannot say that the fines can only be applicable to Meralco without being discriminatory and violating equal protection.”

Fines do not benefit the public

Ridon said that similar to fines meted previously on other public utilities, the P19-Million fine on Meralco does not benefit the public in terms of reducing their monthly electricity bills.

“The interest of the public is not to increase government coffers during the pandemic, but to reduce their electricity burden during this pandemic. The public’s mandate is better served if the power regulator instead works closely with Congress and stakeholders on how to further reduce electricity rates at this time. Reducing taxes and fees on the power sector should be the priority, as this results in real savings to all households and businesses moving forward.”

ERC urged: Fast-track approvals on solar microgrids

Jul 5, 2020

An infrastructure-oriented thinktank called on the Energy Regulatory Commission to fast-track approvals of solar microgrid projects around the country, particularly in view of government’s implementation of the Balik Probinsiya, Bagong Pag-asa program.

“With island barangays and municipalities without 24/7 electricity, President Rodrigo Duterte’s Balik Probinsya program will be unviable for returning residents, as stable electricity in rural communities is an important component of local economic growth.”

This was the statement of Terry Ridon, Infrawatch PH convenor and Mr. Duterte’s former urban poor chief.

Cagbalete Island microgrid

RIdon cited the case of Cagbalete Island in Quezon, in which more than six hundred households remain without electricity due to regulatory hurdles.

“At present only one hundred Cagbalete households enjoy electricity from the microgrid. This clearly stunts economic activity for a majority of the population which should benefit from 24/7 electricity. The economic dividends of 24/7 electricity cannot be overstated.”

Ridon said Cagbalete’s nearest connection to the Luzon power grid is thirteen kilometers away in Mauban, Quezon.

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“By ensuring 24/7 electricity, new economic activities can be pushed. Tourism can flourish, aquaculture can develop, ice plants can be built, telecom towers constructed: an entire economic ecosystem unimagined before 24/7 electricity can be established.

Ridon said the ERC should act quickly on Cagbalete’s pending application before the body, especially as the coronavirus pandemic ravages both national and local economies.

Immediate economic benefits

Ridon said with expanded solar microgrids in rural areas, the Balik Probinsya (BP) program’s economic prerequisites will be achieved.

“With the boosting of economic activity in rural areas, there will be more reasons for BP beneficiaries to actually stay in their communities instead of returning to the cities. This cannot be achieved without 24/7 electricity in rural areas, and microgrids are leading the way.”

Ridon said solar microgrids should support government’s shift to blended and online learning.

“Blended and online learning should pose little difficulty for learners in island and rural communities with 24/7 electricity. Even with limited teaching staff, the digital dividends that technology can bring to these areas should be fully explored.”

Electric billing based on new staggered scheme urged

May 23, 2020

An infrastructure-oriented thinktank urged Meralco and other distribution utilities around the country to immediately issue new electric bills based on the recent advisory of the Energy Regulatory Commission ordering staggered payments.

“The ERC advisory should put to rest all concerns on bill shock and overcharging, as this affords consumers an adequate period of time to settle electricity actually consumed by households during the quarantine. This should also allow distribution utilities sufficient time to confirm actual usage against estimates of power consumption.”

This was the statement of Terry Ridon Infrawatch PH convenor and former House energy committee member.

Advisory favors consumers

The ERC ordered a six-month staggered payment for households with a monthly consumption of 200 kilowatt-hour (kwh) or less while households which consumed above 200 kwh are allowed to pay in four month installments.

Ridon, a lawyer, said that the new billing would now reflect the most recent transaction status between the DU and the customer, and cancel all previous billing statements.

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“Without a new billing based on the staggered scheme, households will still have to guess at what exact amount should be paid at the due date. A newly issued billing statement resolves this with finality.”

Smart meters

Ridon also welcomed the suggestion of Meralco to install smart meters to avoid bill shocks in the future.

“Smart metering is indeed a technological solution to prevent the same unfortunate situation from happening again. What needs to be clarified however is how the new meters will paid: will it be borne as a separate line item per customer or will it be incorporated into the general capital expenditure plan of distribution utilities?”

Ridon said this is a matter that needs to be studied further to determine whether realtime meter readings is a real necessity as against the prospect of job loss for meter readers in our distribution units.

“The reality of installing smart meters will inevitably result in job redundancies in power companies. Is realtime meter reading more important than saving jobs? “But at this point when technology is dictating how we do business and improves daily lives, the reality is automation is inevitable”. This is one of the questions that all stakeholders need to answer.”

Palace urged: Suspend VAT, universal charges on power during lockdown

Apr 16, 2020

Responding to the call of President Rodrigo Duterte for proposals to reduce the economic woes of Filipino families during the coronavirus crisis, an infrastructure-oriented thinktank is calling for the suspension of value-added tax and universal charges on power rates until community quarantines remain in place around the country.

“The suspension of VAT and universal charges on electricity rates during the coronavirus crisis translates to around two hundred pesos in savings for the average household consuming 200 kWh. More important, this translates into a staggering P4.2-Billion indirect economic aid to 21 million lower income households without the need for new loans or the sale of government assets.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former urban poor chief of the Duterte administration.

VAT on losses, subsidies, franchise tax

Ridon said suspending VAT on power rates allows low income families more savings to spend on food and basic necessities.

“Every peso which we can add to the savings of Filipino families is already a win during this crisis. Two hundred pesos affords families an additional six kilos of rice, without the need of fresh funding from government.

Ridon, who was a member of the House ways and means committee, said that VAT on power continues to be a very contentious issue because systems losses, lifeline subsidies, and franchise taxes are levied with VAT.

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“This is lazy, unsound policy-making inherited from previous administrations, as non-revenue activities are taxed. The President has the power to stop this, and now is the most perfect time.”

Suspend PSALM universal charges

Ridon also said that universal charges can also be suspended, particularly receivables of the Power Sector Assets and Liabilities Management Corporation (PSALM) for the National Power Corporation’s (NPC) stranded debts and contract costs.

“Indirect economic aid to 21 million low income households from the suspension of PSALM universal charges amounts to P207-Million. This is an intervention which the President can order at once, without question.”

Universal charges are imposed for the recovery of NPC stranded debts and contract costs and collected from electricity consumers on a monthly basis.

“Together with the Energy Regulatory Commission, PSALM can certainly make this heroic contribution to the country’s coronavirus effort by suspending collection until the worst is over.”

Focus on crisis relief: Business takeover in coronavirus bill unconstitutional

Mar 23, 2020

An infrastructure-oriented thinktank said that the proposed coronavirus emergency response bill violates the 1987 Constitution by failing to prescribe reasonable terms in the takeover of public utilities and business imbued with public interest.

“Never have we seen such sloppily written legislation than this emergency coronavirus response bill. Not only does the bill fail to respond to the current reality the Filipino family faces, it seeks to unnecessarily commandeer private businesses which had already been responding effectively to the crisis.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former House legislative franchises committee member.

Ridon said that the most basic constitutional requirement for the takeover of businesses during national emergencies is the institution of reasonable terms upon takeover.

Takeover approximates confiscation

“Under the emergency bill, the terms are absolutely unreasonable. For example, determination of the expiration of the temporary takeover is subject to presidential discretion, instead of a mutually-agreed upon, specific but extendible expiration date based on prevailing conditions. Insisting on this presidential discretion approximates an unjust taking, if not confiscation.”

Ridon said this provision opens the possibility that businesses taken over during the crisis may never be returned by government.

“This creates serious instability and uncertainty in the economy, and would definitely spook investors considering the Philippines.”

Businesses covered are overbroad

Ridon said that the bill does not limit businesses subject to takeover to those directly responding to the coronavirus crisis such as hotels and similar establishments.

“With hotels and similar businesses now also redefined as public utilities or businesses imbued with public interest, there is uncertainty on which public utilities and businesses may be subjected to temporary takeover. Will this now include all other public utilities which may ‘be used in addressing the needs of the public,’ such as power distribution and transmission companies, water utilities, broadcast companies? As such, anything and everything is fair game for a temporary takeover.”

Uncertain recipient of compensation

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Ridon said the bill makes serious conceptual errors on entities eligible to receive compensation payment due to the government takeover.

“The bill confuses elementary legal concepts of payment, ownership and possession, as it provides the payment of reasonable compensation to the possessor of the property or business. The possessor of a property or a business is not always the owner, and the owner or the possessor of a property or business is not always the valid recipient of payments. As an example, if government retains possession of the property or business beyond the crisis, should the government as the possessor pay itself the reasonable compensation just because it retains possession? No. But the emergency bill makes it so.”

Ridon said the private sector instead should be allowed to address the national crisis without the spectre of vague, unreasonable temporary takeover, noting that private enterprises have already raised at least P1.5-Billion to contribute to the national effort.

Focus on crisis relief

Ridon, who was a former urban poor chief of the Duterte administration, said these should be reason enough for Congress to focus instead on actual crisis relief for Filipino individuals, families and small businesses.

“There is nothing in the emergency bill which details with particularity new economic programs which the government will undertake. This is in sharp contrast from foreign governments such as the United States which is proposing stimulus checks amounting to $1200 per person and $500 per child.”

Ridon said the bill cannot even be considered a supplemental spending bill.

“Make no mistake. This bill seeks emergency powers for the President, nothing else. It is not even the supplemental spending bill which the public had been expecting from the very beginning.”

Ridon said Congress exercise the power of the purse instead of surrendering everything to Malacanang.

“As proposed, the bill is nothing but a blank check granted to the executive to realign public funds: an unconstitutional surrender of congressional power. They have the power today to determine as line items how to help the public during this emergency, they should not waive this power.”