Mayon is located in Albay province in the Bicol region.

According to the Philippine Institute of Volcanology and Seismology (Phivolcs), 29 barangays in Albay have portions that are within the PDZ, based on 2016 administrative boundary data from the Philippine Statistics Authority.

These barangays, from three cities and six municipalities, are the following:

Tabaco City

• Oson
• Mariroc
• Comon
• Magapo
• Buang

Malilipot

• San Roque
• Calbayog
• Santa Cruz
• Canaway

Ligao City

• Baligang

Santo Domingo

• Fidel Surtida
• Lidong
• San Fernando
• Santa Misericordia

Camalig

• Sua
• Tumpa
• Anoling
• Quirangay

Daraga

• Mi-isi

Guinobatan

• Doña Tomasa (Magatol)
• Muladbucad Pequeño
• Muladbucad Grande
• Masarawag

Legazpi City

• Mabinit
• Buyuan
• Matanag
• Bonga
• Padang

Bacacay

• Bonga (Upper)

In times of relatively high volcanic unrest, Phivolcs recommends evacuation from the PDZ. Local government units then issue their respective evacuation orders for implementation. – Rappler.com

Since the driver’s license mess began making headlines, the LTO and Department of Transportation (DOTr) have been pointing fingers at each other for the cause of the shortage.

Then-LTO chief Jose Arturo Tugade claimed that the agency was ready to procure by December 2022 before a special order issued by the DOTr “stopped all procurement activities.” This special order – issued on January 25, 2023 – required all procurement activities over P50 million to be handled by the DOTr Central Office.

Meanwhile, the DOTr said that it was finding ways to speed up the purchase of license cards, after LTO’s “failure to undertake early procurement activities in compliance with existing rules.”

These disagreements peaked when, a few weeks back, Tugade resigned as head of the LTO, pointing to the driver’s license issue and “differences” with Transportation Secretary Jaime Bautista. 

New head, old problems

Hector Villacorta has since stepped in as the offer-in-charge starting June 1, but it seems that the agency’s new head must find his own way through a messy turnover.

“There was no turnover of documents or any lecture on ‘these are the things that are pending,’” Villacorta said during a Senate hearing on Thursday, June 8. “I just smiled when he said ‘you are bound to fail in this office.’”

“There was a 15-minute coffee, and that was all – except to say that I should have not taken the post,” he added.

Villacorta, who is the third head of the LTO under the Marcos administration, faces the daunting task of solving the driver’s license shortage.

“Kawawa naman si Acting Secretary Villacorta. Para flying blind ito eh (I feel bad for Acting Secretary Villacorta. It’s like flying blind) – almost like wishing him failure,” Senator Grace Poe said during the Senate hearing. “I think part of the responsibility of accepting a position in government is to be able to provide a smooth transition to the next administration.”

This wouldn’t be the first time that procurement of the driver’s licenses was hampered by a turnover. 

Teofilo Guadiz III, the LTO chief who served before Tugade, said that he was aware of the dwindling supply of driver’s license cards – something he had been tackling before he was replaced.

“We did do our job during my three-and-a-half months of stay with the Land Transportation Office. We have commenced with the technical working group. We’re about 75% done when I was replaced as head of the Land Transportation Office,” Guadiz said during the Senate hearing.

He said that he submitted the documents and studies to Tugade’s team before he left, with the “final request” to monitor the driver’s licenses and license plates.

“The person who replaced me took his oath on a Monday. And on a Tuesday, nandoon na po siya sa office ko (he was already at my office) and requested that I vacate my office on a Wednesday,” Guadiz said, referring to Tugade.

Tugade did not attend the Senate hearing, prompting senators to issue a subpoena against him. 

How bad is the shortage?

As the months drag on with no supplier yet finalized, the backlog of driver’s licenses has only continued to climb.

As of May 2, the LTO set the backlog at 234,149. Now, the figure stands at around 690,000 – the most ever recorded – according to the latest data from the DOTr. This means that in the span of around a month, an additional backlog of more than 450,000 license cards has accumulated.

Meanwhile, the limited supply left is dwindling by the day.

“Right now, meron nang shortage ng (there is a shortage of) driver’s licenses. As of today, we have only around 70,000 ID cards available nationwide and we are reserving this for OFWs,” DOTr Secretary Bautista said during the Senate hearing.

So what could have been done to avoid the shortage? According to the DOTr, the LTO could have started procuring driver’s license cards as early as August 2022. 

“Puwede na pong mag-early procure considering that the NEP (National Expenditure Program) is already submitted to Congress and kailangan na rin pong mag-procure dahil mauubos na rin po ‘yung mga IDs, which are needed for 2023,” he said.

(You could do early procurement considering that the NEP is already submitted to Congress, and you need to procure because the IDs are already running out, which are needed for 2023.)

Instead, the LTO failed to submit the terms of reference until March 21. It was only after that point that the DOTr could proceed with the procurement process. 

Currently, Bautista said that the department was finalizing the procurement for the plastic cards, with a lowest bidder already identified.

“If we will be able to finalize this, if we will qualify the lowest bidder, we should be able to get maybe 500,000 licenses in July,” he said. – Rappler.com

On Wednesday, June 7, the court presided by Judge Romeo Buenaventura, denied De Lima’s bail plea for various reasons. Among them, the court said, De Lima’s plea on “humanitarian considerations is untenable.”

In her plea, De Lima said she is now a senior citizen, has several medical issues, and is not a flight risk. However, the court said these grounds are “not compelling.”

Now that De Lima’s bid for temporary freedom has been denied, what happens to her?

Where will De Lima remain?

In total, De Lima faced three drug charges filed during the term of former president Rodrigo Duterte. Two of them have already been denied – one in February 2021, and then the most recent one in May this year.

• De Lima faces one more case, the one being handled by Judge Buenaventura. The former lawmaker’s petition for bail in her remaining case was important because it could give her temporary freedom after over six years in detention.
• But since her bail was denied, she will not be temporarily freed despite her two acquittals.
• In addition, De Lima will remain behind bars while the trial of her remaining case continues.
• In the meantime, De Lima will remain detained at the Philippine National Police custodial center.

What are De Lima’s remaining options?

After the court denied her petition for bail, De Lima is left with a few options.

• University of the Philippines College of Law lecturer Oliver Xavier Reyes said the De Lima camp can file a motion for reconsideration (MR) before Muntinlupa City RTC Branch 256 to ask the court to reconsider the bail denial.
• Reyes noted that if the MR will be denied too, the De Lima camp can file a petition for certiorari under rule 65 of the Rules of Court with the Court of Appeals or the Supreme Court.
• “It might be likely though that even before the Petition for Certiorari on the matter of bail were decided by the higher courts, the RTC might have already issued its decision convicting or acquitting De Lima,” the UP College of Law lecturer explained.
• Reyes added: “Also, the filing of that petition would not change her current condition unless the higher courts issue a writ of preliminary mandatory injunction directing RTC to release her on bail while the higher court decides on the petition. But that is very rare and unlikely to happen.”
• Aside from this, De Lima also has an option to file a petition and ask the Supreme Court to grant her the privilege of writ of habeas corpus to gain temporary freedom. This was the precedent set by the release of chief presidential legal counsel Juan Ponce Enrile’s former staff, Gigi Reyes.
• Reyes was released after she argued that she is entitled to the privilege of the writ of habeas corpus by reason of delay and alleged violation of her constitutional right to speedy trial. 
• In addition, the De Lima camp can also aim for a demurrer to evidence once the prosecution rests its case in her remaining drug charge. The camp would need to first ask the court’s permission before they could file a demurrer to evidence, which will seek to dismiss the prosecution’s case on the grounds of insufficient evidence.
• Granting the demurrer has the same effect as an acquittal. The granting of De Lima’s demurrer to evidence in one of her cases led to her first acquittal back in February 2021.

– Rappler.com

Faculty members of the University of the Philippines School of Economics (UPSE) issued a strongly-worded discussion paper on Tuesday, June 6, a week after both chambers of Congress swiftly acted on the measure, saying that the Maharlika fund “violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector – notwithstanding its proponents’ good intentions.”

UPSE faculty underscored some crucial points for Marcos to consider:

Maharlika’s purpose remains unclear even after deliberations of both houses of Congress

Sovereign wealth funds are funded either through surplus revenues drawn from natural resources such as oil or through government’s current account surpluses, fiscal surpluses, foreign exchange reserves, and privatization proceeds.

Without resource windfalls or government surpluses, fund sources can come from the national budget with the primary objective of attaining developmental goals infrastructure investments.

Whatever the funding source may be, any sovereign wealth fund must be clear: is it for stabilizing government finances, accumulating wealth, or funding projects?

Maharlika’s goals, however, lack a clear focus, as it seeks to earn both from commercial returns and investment of huge portions of its funds in local development projects.

While there is nothing inherently wrong with pursuing multiple goals, it must articulate its objectives and expectations.

UPSE faculty emphasized that any sovereign wealth fund must have clear goals on its allowable investments and activities and lay down reasonable expectations and metrics of success.

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Maharlika may encroach upon the budget process

Maharlika aims to invest in projects for economic gains. But isn’t this the goal of the government and the budget process anyway?

The discussion paper also warns that Maharlika may bypass the normal budget process, diminish Congress’ power of the purse, and even violate the Constitution.

Maharlika poses huge risks to strained public coffers

In 2022, the Philippines’ current account deficit reached its highest level in nearly two decades, implying that the country is a net borrower from the rest of the world. Meanwhile, the budget deficit had exceeded P1.6 trillion in 2022.

With an authorized capital of P500 billion, the Maharlika fund risks worsening the public debt.

Draining capital from state banks like Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) risks destabilizing these institutions and compromises their ability to meet capitalization requirements.

Maharlika poses moral hazard risks

The UPSE discussion paper, crafted by 20 faculty members, also warns of moral hazard risks.

In economics, a moral hazard situation is where one party is willing to take on more risk because it believes another party will bear the burden of those risks.

In the context of Maharlika, fund managers may undertake riskier investments because they know that the state stands behind them. The Maharlika board may also be incentivized to take on riskier investments in pursuit of higher returns.

“This means that the public, through their taxes or pensions, could end up bearing the risk of poor investment decisions, while the rewards (if the risky investments succeed) may accrue to a limited group of people, such as those in power and their associates or managers of the fund.”

Safeguards are also unclear. As it is, the bill does not distinguish between poor fund management and general market downturns. 

The bill also has no provisions regarding bankruptcy, which could imply that in the end, the Philippine government will shoulder any liabilities or losses.

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Maharlika’s goals are vague and may contradict other economic blueprints

Experts noted that Maharlika’s goals speak of “development only in the broadest possible terms” and does not make any reference to the Philippine Development Plan.

“Without anchoring the Maharlika Investment Fund on specific long-term development objectives, [it] may pose macroeconomic risks to become prone to exhaustion when the political environment is unstable or incumbent officials prioritize short-term goals,” the discussion paper read.

Its goals have already been taken up by other government agencies and government-owned corporations like the National Development Corporation, Landbank, and the DBP, which will fund Maharlika, are already involved in development projects.

It may also overstep the functions of the National Economic Development Authority, which scrutinizes and approves infrastructure projects.

Experts also questioned Maharlika’s expected returns. The bill aims to “obtain the optimal absolute return” without elaborating on the level of returns and financial gains.

Red flags in the governance structure

The Maharlika Investment Fund has a poorly designed governance structure that could open floodgates for political interference and corruption.

All board members, as well as its advisory body, are presidential appointees, even the independent directors.

“These provisions will effectively allow presidential appointees to exert significant influence on the everyday operations of the Maharlika, potentially paving the way for politicization and boding ill for the [Maharlika Investment Corporation’s] operational independence – a key determinant of the success of any sovereign wealth fund,” the discussion paper said.

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Maharlika is unlikely to grow substantially to finance development projects

Any new sovereign investment fund should be able to “crowd-in” private investments. But with the current global economic environment, this may be difficult to achieve.

A downgrade of the global growth projection, geopolitical conflict, and rising interest rate hikes, are some of the headwinds Maharlika will face.

Norway’s sovereign wealth fund has lost $164.4 billion due to these reasons. Indonesia’s wealth fund, which is Maharlika’s “inspiration,” was injected with $5 billion in 2021. But as of 2022, no foreign investors had come in to reinforce its seed money.

Despite the concerns raised, the discussion paper did not ask Marcos to scrap the proposal. It, however, urged economic managers to “reconsider their position” and advise Marcos “accordingly.”

“We are not unmindful of the political stakes and reputational face-saving that have led to the hasty passage of this law. Short of asking Congress to rescind the bill or the President not signing it – both unlikely scenarios – some hope still exists for reducing the harm and risks this law might bring to the economy,” – Rappler.com

Through the “Walang Gutom 2027” program, DSWD will provide food credits worth P3,000 to one million households who are identified as food poor. 

How will this program be implemented? And who are the eligible beneficiaries?

The program

As of May 23, 2023, DSWD Secretary Rex Gatchalian said his department will work on designing the program until June.

Gatchalian said his department is working with various experts, including the United Nations’ World Food Program for technical expertise, multiple experts in his department, and the Philippine Statistics Authority (PSA). 

Digital cards are set to be given to the intended beneficiaries to ensure that the P3,000 will be spent on food. Gatchalian clarified that this program will use food as currency and not the physical food stamps, 

Instead of money, the digital cards will be loaded with food equivalents which will be composed of 50% carbohydrates, 30% protein, and 20% fats. Card holders will just need to choose items falling under said food groups through DSWD-accredited retailers. 

With the aim to extend the “whole ecosystem” of farm to table, the government plans to partner with the Kadiwa ng Pangulo outlets to extend it further to “market to table.” The department also eyes to team up with micro, small and medium enterprises (MSMEs), and big grocers. 

Who are eligible beneficiaries

The program intends to target the bottom one million households who belong to the food poor criteria as defined by the PSA. These are families who do not earn beyond P8,000 monthly.

Beneficiaries of the program will be selected from the National Targeting Household System (NTHS) or the Listahan 3. This is the targeted survey conducted by the department every four years to identify potential beneficiaries of government programs, such as the Pantawid Pamilyang Pilipino Program (4Ps), among others.

When will this be implemented

The department is set to pilot run the program this July up to the end of the year. The pilot run will cover 3,000 households from five identified sites. 

Gatchalian named the following areas for the pilot run of the program: former conflict areas, specifically in the Bangsamoro Autonomous Region of Muslim Mindanao, geographically isolated regions or provinces, calamity-stricken areas, urban poor community,  and rural poor areas.

The DSWD is eyeing to implement the food stamp program in a “progressive manner,” instead of simultaneously covering the one million target beneficiaries.  

After the pilot run this year, the program will roll out to 300,000 households by the first quarter of 2024 for its actual implementation. Then it will cover another 300,000 households in the succeeding year, and will continue to do so, until it reaches the one million target of the government. 

Conditional program

Under the food stamp program, beneficiaries will be required to acquire jobs. 

DSWD Undersecretary Edu Panay on June 3 said that food stamps beneficiaries will need to have jobs to lessen their dependence on government aid. 

Earlier, Gatchalian also mentioned that households that will sign up for the program will be required to go to the nearest public employment office, and be counted as part of the workforce. No matter what job a beneficiary gets, what matters is he/she works, he said. 

The program’s goal is to supplement a family’s food intake to alleviate hunger, which will then result in a productive citizen. 

A measuring system will be implemented, too, according to Gatchalian. Through various survey methods, the department will monitor progress among the beneficiaries, making sure they move towards getting out of the food poor category. 

Still under design stage

Gatchalian said the program’s design is set to be finalized by June 2023 before its pilot run. During this time, the department is working on its implementation and funding. The DSWD has not yet given an exact amount of the program’s budget

Gatchalian said during the program’s briefing that the “detailed pesos and centavos” will be determined once the design stage is completed.

The six-month pilot run of the program, however, will be funded by the close to $3 million grant from the Asian Development Bank (ADB). – Rappler.com

Teodoro, whose appointment was announced nearly a month after the ban for defeated 2022 candidates lapsed, is the third person under the Marcos administration to lead the defense department.

He is, however, the first one to do so with the rank of secretary. His predecessors – former Armed Forces of the Philippines (AFP) chiefs Jose Faustino Jr. and Carlito Galvez Jr. – were only officers-in-charge and only held the rank of undersecretary.

Even though he’s been out of commission for more than a decade, Teodoro is more than familiar with the spaces he’ll soon occupy.

Pedigree, political past

Teodoro belongs to the enduring Cojuangco clan – an influential force in both politics and business. His mother, Mercedes Cojuangco, was a member of the Philippine legislature Batasang Pambansa during the Marcos dictatorship, while his uncle, the late Eduardo “Danding” Cojuangco Jr., was chairman and CEO of the Philippines’ largest diversified conglomerate, San Miguel Corporation.

Danding, who was once governor of Tarlac province, was a crony of the late dictator Ferdinand E. Marcos, the father of the current president.

Teodoro would go on to represent the 1st District of Tarlac for three consecutive terms in Congress. He served in the executive branch from 2007 to 2009 as secretary of the Department of National Defense (DND) under former president Gloria Macapagal-Arroyo. At 43, he was the youngest person ever to hold the post.

Teodoro’s ties to his uncle, who considered him a “political son,” turned complicated during the Arroyo administration and in the run-up to the 2010 elections. He bolted Cojuangco’s Nationalist People’s Coalition to join Arroyo’s then-ruling Lakas-Kampi-CMD.

He went on to be Lakas’ standard-bearer in the 2010 presidential elections – a bane because Arroyo had become very unpopular towards the end of her term. He lost badly, placing a distant fourth in an election won convincingly by another Cojuangco – his cousin, the late Benigno Simeon Aquino III, son of democracy icon and former president Cory Aquino.

Teodoro stayed mostly out of the political spotlight following his 2010 loss. He’s held posts, mostly as a member of the board, in various private companies since then.

Teodoro graduated from De La Salle University Manila in 1984 and finished law at the University of the Philippines in 1989. He went on to study at Harvard for his Master of Laws and passed the State Bar of New York in 1997. He entered politics for the first time in the 1998 elections.

Duterte ties

His name made news headlines again in 2016 at the beginning of former president Rodrigo Duterte’s administration, when the former Davao City mayor was said to have offered him the defense post twice. He was reported to have declined both times.

Five years later, in June 2021, Teodoro flew to Davao City to offer himself as Sara Duterte’s running mate should she run for president in 2022. Sara, the eldest daughter of Rodrigo Duterte, was then leading early preference polls ahead of the presidential elections.

On October 7, 2021, Teodoro filed via proxy his candidacy for senator. For the 2022 polls, he was a senatorial bet of the People’s Reform Party (PRP).

He was later announced as a member of the Uniteam – a coalition of various personalities and their parties that backed Marcos as presidential candidate and Sara Duterte as vice-presidential candidate.

Teodoro would finish 15th in a 12-seat race, garnering over 12.78 million votes.

He has long been rumored to be a shoo-in for the defense post, partly explaining why Marcos only filled the posts with two officers-in-charge who happened to be both former AFP chiefs.

Since he lost in the 2022 polls, Teodoro became eligible to hold a Cabinet post only on May 10, 2023.

GMA’s defense chief

Front and center during his term as defense secretary under Arroyo – at least according to his old campaign website – was his “human rights advocacy.” “Under his term as SND, the DND intensified its campaign to ensure that AFP and DND personnel are continually updated and oriented on human rights matters,” reads his profile.

Modernization and reform were also his priorities as DND chief, on top of disaster risk management.

He will be reentering the defense sector with an AFP that has more military hardware now even as it continues to be plagued by decades-old issues. It also now faces more serious threats externally.

As DND chief, Teodoro will have to navigate China’s growing aggression in the West Philippine Sea, as well as the country’s place in the world order as Beijing’s competition with the US, the Philippines’ long-time ally, intensifies.

Climate change is another enemy the new defense chief, as concurrent chairperson of the National Disaster Risk Reduction and Management Council, will have to face. Teodoro was at the helm in 2009 when Tropical Storm Ondoy caused widespread flooding and damage to Metro Manila and other nearby provinces. – Rappler.com

Who is Ted Herbosa, Marcos’ new health secretary?

Such release is mandated by the Universal Health Care Law, which provides that the national government covers the premiums of those who fall under indirect contributors. The same law mandates that all Filipinos shall be included in the National Health Insurance Program (NHIP) of the government. 

Who are the indirect contributors?

Indirect contributors include: 

• Indigent families identified by the Department of Social Welfare and Development (DSWD)
• Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps)
• Senior citizens
• Persons with disabilities
• Patients identified at point-of-service (POS) or those who are not yet in the PhilHealth database but are financially incapable to pay premiums
• All Filipinos aged 21 years old and above who cannot pay the premiums
• Sangguniang Kabataan officials.

How are indigents determined? 

The DSWD identifies qualified Filipinos for the indigent membership through the National Targeting Household System (NTHS) for Poverty Reduction or the “Listahanan.” 

It is a targeted survey conducted every four years that identifies poor households as a basis in identifying potential beneficiaries for social protection programs and services of the government. It is the same survey that serves as the basis for the identification of 4Ps beneficiaries.

According to the PhilHealth website, all indigents identified by the DSWD “shall be automatically enrolled and covered” by PhilHealth. The female spouses of the families are designated as the primary members of the program. The following may be considered dependents to the coverage: 

• Legitimate spouse who is not a member 
• Child/children in the household who are below 21 years old, unmarried, and unemployed
• Disabled children who are 21 years old or above
• Foster child
• Parents who are 60 years old or above, unless an already enrolled member 
• Disabled parents, regardless of age

These dependents must be declared by the principal member, who, in this case, is the female spouse. The names of the dependents must be listed in the principal member’s Member Data Record (MDR).

“Qualified dependents shall be entitled to a separate coverage of up to 45 days per calendar year. However, the 45 days allowance shall be shared among them,” the website says. 

Senior citizens are covered too

Since the enactment of Republic Act No. 10645 in 2014, all senior citizens aged 60 and above are automatically covered by PhilHealth. Previously, only indigent senior citizens were covered.

Senior citizens may enroll through submission of their member registration form through local offices for senior citizens affairs, or through local health insurance offices. 

On April 4, the Department of Budget Management (DBM) approved the release of P42.93 billion to cover the one-year health insurance premiums of over 8.5 million senior citizens. 

Benefits for members

Inclusion in the NHIP entitles enrolled Philhealth members to health benefit packages, which include primary care; medicines; diagnostics and laboratory; and preventive, curative, and rehabilitative services. 

Primary care

Primary care provided by PhilHealth can be availed through their Konsulta program (formerly called Tsekap). A member can avail themselves of the following services: check-up, health screening and assessment, laboratory, and prescribed drugs and medicines.

The following are the laboratory or diagnostic examinations that can be availed: 

• CBC with platelet count
• Urinalysis
• Fecalysis
• Sputum Microscopy
• Fecal Occult Blood
• Pap smear
• Lipid profile (total cholesterol, HDL, and LDL cholesterol, Triglycerides)
• FBS
• OGTT
• ECG
• Chest x-ray
• Creatinine
• HbA1c

To avail oneself of the package, a PhilHealth member must register in any of the health facilities that are accredited Konsulta package providers. Registration can be done online via self-registration through PhilHealth’s website, or via walk-in registration at any PhilHealth office. 

An individual can avail himself or herself of free primary care service in the facility where he or she has registered. There will be charges for service acquired outside the chosen facility. 

Accommodation

All patients are entitled to basic or ward accommodation in any PhilHealth-accredited hospital without having to pay co-payment or co-insurance fees, according to the Universal Health Care Act. 

The same law also requires all government hospitals to operate not less than 90% of their bed capacity as basic or ward accommodation. Specialty hospitals are required to have not less than 70%, while private hospitals are required to have no less than 10% of their bed capacity. 

The Universal Health Care Act ensures that any person can avail themselves of the service without having to present a PhilHealth card, provided that the patient must still present any valid identification document. 

The law’s implementing rules and regulation states that those who are not in the PhilHealth database “shall be duly registered by health care facilities,” subject to the guidelines PhilHealth will release.

The above-mentioned benefits are available to both indirect contributors and direct contributors, the latter being those who have the ability to pay premiums such as employed individuals. Direct contributors enjoy additional benefits PhilHealth may provide them. – Rappler.com

Dr. Teodoro “Ted” Herbosa is not new to the DOH and has run into some controversy when he was the adviser of the government’s COVID-19 task force.

Here are some things you should know about Herbosa and his resumé.

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UP graduate

According to Herbosa’s LinkedIn, he graduated from the University of the Philippines with a Bachelor of Science in Biology degree in 1979 and finished studying medicine at the same university in 1983.

According to a press release from Malacañang, Herbosa also has tucked under his belt an international diploma course in emergency and crisis management from the University of Geneva. He took further postgraduate studies in medicine at the Sackler Faculty of Medicine at Tel Aviv University in Israel.

Former DOH undersecretary, UP exec

Herbosa served as a health undersecretary from 2010 to 2015, under the administration of former president Benigno Aquino III.

He also served as the executive vice president of the University of the Philippines System from 2017 to 2021.

COVID-19 task force adviser

The UP alumnus gained prominence as an adviser of Duterte’s national task force adviser providing almost daily updates on the coronavirus outbreak from 2020 to 2021.

As early as March 2021, Herbosa already said that the Philippine government had done a “fairly good job” in managing the public health crisis. He also defended former president Duterte and former health secretary Francisco Duque III, who were often criticized over their pandemic response.

Controversies

Play Video

In 2020, Herbosa issued a public apology and agreed to undergo gender sensitivity training after sharing a Facebook post making light of rape.

In April 2021, Herbosa drew criticism from internet users for a “death by community pantry” tweet. His remarks were in response to the death of an elderly man who waited in line at a community pantry organized by actress Angel Locsin in Quezon City.

Community pantries were set up as a response to the economic conditions brought about by the pandemic, which made access to an affordable food supply difficult for the country’s poorest residents.

Some Duterte officials took the pantry services as an insult to the administration’s ability to provide food for its citizens, going as far as linking the community-led efforts to the communist party.

Herbosa also issued a public apology following that statement, and resigned from his post at UP afterwards.

After his appointment, DOH Undersecretary Dr. Maria Rosario Singh Vergeire, who had been officer in charge for Marcos’ first year, said they would provide all-out support during the transition.

“Maasahan po ng ating bagong kalihim, Secretary Ted, ang taos-pusong suporta ng buong DOH family,” said Vergeire. (Our new Secretary, Secretary Ted, can expect all-out support from the whole DOH family.) – Rappler.com

So how has the final version of the Maharlika Investment Fund (MIF) changed? Here are some key amendments in the Senate version of the bill.

1. No money from pension, welfare funds

Pension funds are now “absolutely prohibited” from investing in the Maharlika Investment fund. These include the Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth), Home Development Mutual Fund (PAG-IBIG Fund), Overseas Workers Welfare Administration (OWWA), and Philippine Veterans Affairs Office (PVAO). The specific provision reads:

“[G]overnment agencies and GOCCs providing for the social security and public health insurance of government employees, private sector workers and employees, and other sectors and subsectors, such as but not limited to the SSS, GSIS, PhilHealth, PAG-IBIG Fund, OWWA, and PVAO Pension Fund shall be absolutely prohibited, whether mandatory or voluntary, to invest in the MIF.”

The original Senate bill prohibited these funds from being “requested or required to contribute to” the Maharlika Investment Corporation (MIC). But it left the door open for these agencies to invest in the fund, should they want to voluntarily.

Past attempts in the House to require the SSS and GSIS to contribute to the MIC’s capital sparked public protests, until both pension funds were eventually removed as funding sources.

Prior to the Senate bill’s amendment, Senator Risa Hontiveros warned that the GSIS was working to enter the Maharlika fund through a “backdoor” by having the board of the government pension fund change its investment strategy.

“Kapag pala binago lang ng GSIS Board ang kanilang investment strategy ay puwede nang isugal na rin ang lampas P1 trillion na pera ng GSIS sa Maharlika fund. At sa isang video nitong Abril, sinabi ni GSIS President Mr. Wick na nire-review at babaguhin daw ang investment strategies ng GSIS,” she said during the interpellation period on Monday, May 29.

(If the GSIS Board changes their investment strategy, they can gamble the more than P1 trillion funds of GSIS in the Maharlika fund. And in a video this April, GSIS President Wick Veloso said they are already reviewing and changing the investment strategies of GSIS.)

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2. BSP dividend contribution tweaked

The Bangko Sentral ng Pilipinas (BSP) will now contribute 100% of its remittances during the first and second year of the Maharlika fund’s establishment, up to a maximum of P50 billion. The idea is to allow the BSP to use more of its dividends for its capital build-up. 

Previously, the BSP was required to continue remitting its dividends to the Maharlika fund even after the first two years – all the way until the national government’s P50 billion contribution was fully paid.

Senator Sherwin Gatchalian attempted to exempt the BSP from contributing any of its dividends at all “to ensure BSP’s increasing capitalization will be fully realized at the earliest possible time.” But Senator Mark Villar – the sponsor of the Maharlika bill – struck down the proposed amendment.

3. Limits to capitalization and corporate term

The total investments from government financial institutions (GFI), such as the Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) have also been capped at 25% of the GFI’s net worth.

For MIC’s seed money, Landbank will be contributing P50 billion while DBP will be investing P25 billion. The national government is also obligated to contribute P50 billion to the fund, which includes BSP’s dividends. 

The MIC will have an authorized capital stock of P500 billion. Senators included an amendment requiring MIC to request Congress for legislation in the event that they need to increase the capitalization of MIC.

The MIC was also given a corporate term of 35 years from the date of effectivity of the act, unless Congress extends or repeals it sooner.

Maharlika fund’s bonds wouldn’t be backed by government – Villar

4. Changes to the board of directors

The composition of the nine-member board of directors remained largely unchanged, but Senator Risa Hontiveros added a provision in anticipation of the proposed merger of Landbank and DBP. 

In case of a merger, consolidation, abolition, or dissolution involving either of the founding GFI, the board seat of the affected GFI will be occupied by the next highest ranking officer of the surviving GFI who assumed its rights.

For instance, in a Landbank-DBP merger, DBP will cease to exist and Landbank will be the surviving entity. This means that if the merger pushes through, the seat of the DBP on the board – which is normally occupied by the president and chief executive officer of the DBP – will now be occupied by an official from Landbank.

Persons with pending administrative, civil, or criminal cases relating to the misuse of money or breach of trust are also now disqualified from being a director.

5. Maharlika documents in Filipino

All documents relating to the MIF and MIC will also be made available in both English and Filipino. These include the investment policies, investment and risk management plans, statements of assets and liabilities (SALNs) of company officials, and audit documents from the Commission on Audit.

It was Senator Robin Padilla who added an amendment requiring that the documents be issued in both languages as he pointed out that many of those who do not support the bill say that they can’t understand what it’s about.

6. Heavier penalties for violations

Several amendments to the sections on offenses and penalties now impose heavier fines for violations. For instance, directors or officers found to have held office while possessing or concealing any grounds for disqualifications will face fines from P5 million to P7 million, along with perpetual disqualification from holding public office.

However, some penalties were not raised as high as originally proposed. Hontiveros pitched for directors or officers found guilty of graft and corruption to face fines of P20 million to P30 million and imprisonment of 20 years. 

But Senator Jinggoy Estrade – who served jail time for plunder and graft charges related to the pork barrel scam – instead suggested lowering the fines to just P5 million to P10 million. This amendment was eventually accepted.

Lingering issues?

Even with the amendments, several critics still said that setting up the Maharlika fund will reroute money from other government projects into a fund that could further burden the public, if it were to fail.

“You have public money as the source funding the Maharlika Investment Fund, but what is the tradeoff? The tradeoff is, all of this public money is supposed to be part of public revenues to support the national budget,” said former BSP deputy governor Diwa Guinigundo on CNN Philippines’ The Source.

Guinigundo warned that to replenish that public money, the government may be forced to raise more taxes, borrow money domestically or abroad, or do both.

“So instead of addressing and mitigating the problems of high fiscal deficit and increasing level of public debt, this Maharlika Investment Fund may, in fact, worsen it,” he said on Wednesday.

He also emphasized that continuing to use the dividends of the BSP to provide startup capital for the Maharlika fund further delays the central bank’s capital buildup, which can be especially dangerous in the current economic circumstances – ironically, the same circumstances that led to Marcos certifying Maharlika as urgent in the first place.

“You need a central bank that is more highly capitalized so that you would be able to promote price stability and financial stability when the situation gets worse and the need for central bank is necessary,” he said. “Instead, these dividends will be transferred, will be earmarked for funding the Maharlika Investment Fund.”

Former director-general of the National Economic and Development Authority Winnie Monsod, speaking on ANC’s Headstart, also echoed the same concerns about the funding source for the MIF.

“This is not a sovereign wealth fund. I cannot see that it comes from government surpluses because we have no government surplus. It does not come from balance of payments surplus because we don’t have a balance of payments surplus,” she said on Wednesday. 

“What you are doing with the sovereign wealth fund is you are creating an institution which could fail. And when that fails, the burden is going to be felt by the Filipino people,” she added. – Rappler.com

The United States, South Korea and the West have condemned the North’s space vehicle launches for using ballistic missile technology, which it is banned from doing under United Nations Security Council resolutions.

The following is a timeline of the North’s space program, satellite launches, and development of rocket technology.

August 31, 1998: North Korea kicks off its space program by launching a Kwangmyongsong-1 satellite on a Paektusan rocket from the Tonghae Satellite Launching Ground near the east coast. Pyongyang declares it a success, but U.S. officials said it broke up over the Pacific Ocean.

April 5, 2009: Then-leader Kim Jong Il oversees the launch of the Kwangmyongsong-2 satellite from the Tonghae complex, but it once again fails and crashes in the ocean. State media suggest that 14 North Korean soldiers were killed during the launch.

April 13, 2012: The Kwangmyongsong-3 satellite is launched from the newly completed Sohae Satellite Launching Station in the western region. Foreign media are invited to observe the launch, which once again is unsuccessful.

Decembr 12, 2012: North Korea successfully launches the Kwangmyongsong-3, putting an object in orbit. While the North claimed it to be an observation satellite, it is not believed to carry a functioning transmission system.

April 2013: North Korea establishes the National Aerospace Development Administration (NADA) which purports to pursue space exploration for peaceful purposes. The reconnaissance satellite launch on Wednesday was conducted by NADA.

February 7, 2016: North Korea sends up a satellite. The United States calls it a disguised test of an engine powerful enough to launch an ICBM. International observers said the satellite appears to be under control, but there is lingering debate over whether it sent any transmissions.

August 24, 2016: Hyon Kwang-il, director of scientific research at the North’s National Aerospace Development Administration says “our aerospace scientists will conquer space and definitely plant the flag of North Korea on the Moon.”

June 23, 2016: North Korea says it successfully tested an intermediate range ballistic missile (IRBM), with a range of 2,000 to 3,400 miles (3,200-5,400 km).

July 4, 2017: North Korea tests an ICBM for the first time, saying the missile can reach the continental United States. The missile, Hwasong-14, is tested again three weeks later, this time in a night launch.

August 29, 2017: North Korea fires an intermediate range missile over northern Japan, prompting warnings to residents to take cover. The missile falls into the Pacific Ocean, but sharply raises tensions in the region.

January 13, 2021: During a party congress, leader Kim Jong Un reveals a wish list that includes developing military reconnaissance satellites.

December 19, 2022: North Korea said it has conducted a “final phase” test for the development of a spy satellite at the Sohae launch station to check satellite imaging, data transmission and control systems.

March 16, 2023: North Korea test launches the Hwasong-17 ICBM, its biggest missile, which some analysts believe incorporates technology for space launch vehicles.

May 25, 2023: Construction and preparations at the Sohae Satellite Launching Station is moving forward at a “remarkable pace,” a US-based think tank says.

May 29, 2023: North Korea notifies Japan and the International Maritime Organization of a plan to launch a satellite between May 31 and June 11.

May 30, 2023: Ri Pyong Chol, the North’s highest-ranking military official after leader Kim, said joint military drills by the United States and South Korea required Pyongyang to acquire the “means capable of gathering information about the military acts of the enemy in real time”.

May 31, 2023: North Korea attempts to launch the satellite, but the rocket plunged into the sea “after losing thrust due to the abnormal starting of the second-stage engine,” state media KCNA reported.

– Rappler.com