Page 8 - SEPTEMBER 2017 A ISSUE

8 www.hello-philippines.com
P4.2-B BUDGET TO DOUBLE CUSTOMS STAFF IS A WASTE;
PRE-SHIPMENT INSPECTION ABROAD BETTER – ATIENZA
MANILA – Instead of spending
billions to hire personnel, the Bureau
of Customs (BOC) should put in place
a pre-shipment inspection abroad of
all imports bound for the Philippines, a
minority lawmaker said.
Buhay party-list Representative Lito
Atienza called on Congress to reject
the extra P4.2-billion annual funding
requested by the BOC to fill up more
than 3,000 vacant positions, saying this
was unnecessary.
He instead pushed for the passage of
a new law requiring the pre-shipment
inspection.
“There’s no point in wasting billions
of pesos to double the number of
Customs staff,” he said. “Nobody can
fix the rampant corruption and gross
inadequacy at the BOC, not even Isidro
Lapeña,” Atienza said, referring to the
outgoing director of the Philippine Drug
Enforcement Agency who will take
his oath on Tuesday as the new BOC
commissioner.
Lapeña replaced former Marine
officer Nicanor Faeldon, who resigned
last week as parallel hearings were
being held in the House and the Senate
on corruption at Customs, including the
smuggling of P6 billion worth of shabu
that got past BOC’s green lane.
Atienza said there are “rotten”
officials and employees at the BOC who
allow the illegal shipments, depriving
the government of the much-needed
revenues through import duties and
taxes.
Peso sideways, stocks
down on Tuesday
MANILA – The Philippine peso
settled at 51.11 to a United States dollar
on Tuesday, shedding three centavos
from 51.08 last Friday’s close.
At the start of the day, the peso
opened weak at 51.08 from Friday’s
opening of 51.05.
It traded between 51.08 and 51.23,
its weakest rate for Tuesday, resulting in
“They want the BOC to stay
inefficient because they thrive on
inefficiency – because corruption thrives
on inefficiency. The day the bureau
becomes truly effective at its job is also that was diverted to the BOC’s express
the day corrupt examiners and agents
lose their lucrative rackets,” he said.
Only viable option. In Atienza’s view,
the only viable intervention left is for
Congress to require the prior screening
overseas of all shipments bound for the
Philippines.
“Once we have pre-shipment
inspection, the BOC will actually need
fewer staff, because the bureau will be
performing less work,” he added.
In the proposed P3.767-trillion
General Appropriations Act for 2018,
the BOC is seeking an annual budget of
P3.5 billion. However, in the President’s
Budget Message to Congress, it was said
that, “In addition to the BOC’s budget,
we have tucked in an additional P4.2
billion under the FY 2018 Miscellaneous
Personnel Benefits Fund (MPBF).”
Per the budget message, the fund
“will finance the BOC restructuring,
to fill up its more than 3,000 vacant
positions.”
At present, only 3,031 of the bureau’s
6,264 authorized positions have been
filled up.
“As long as we have systemic
corruption at the BOC, officials and
staff there will continue to find ways to
circumvent reforms,” Atienza said.
He cited as an example the P6.4-
billion worth of shabu from China
The trading floor of
the Philippine Stock
Exchange. (File photo)
an average of 51.16
Total volume of trade went down to
US$548.9 million on Tuesday from last
week’s US$590.2 million.
Meanwhile, the Philippine Stock
Exchange index (PSEi) declined by
0.83 percent, or 66.75 points to the
7,948.39-level Tuesday. n Philippine News
Agency | August 30, 2017, 12:19 AM
BUSINESS & FINANCE
Rep. Lito Atienza speaks at a forum on martial law advance clearance of all foreign cargo
and Marcos in this InterAksyon file photo.
“green lane” at the Port of Manila to
avoid inspection and detection.
House bill on compulsory pre-
shipment check. Atienza earlier filed
House Bill No. 6220, which calls for the
compulsory pre-shipment inspection or
Rcuergruelnactoyrs, dsetabktehomldaerkrsetstarretfolormcasl
MANILA – Regulators are now
formulating measures to further
deepen the local currency debt market,
with the program set for gradual
implementation within the next 18
months.
In his speech during the
Economic Journalists Association
of the Philippines (EJAP) economic
forum in Ayuntamiento de Manila in
Intramuros, Manila Friday, Bangko
Sentral ng Pilipinas Gov. Nestor A.
Espenilla Jr. said the first meeting was
held Friday among the representatives
of the central bank, the Bureau of the
Treasury (BTr), the Securities and
Exchange Commission (SEC), the
Department of Finance (DOF) and
other stakeholders.
“We are unveiling soon, in fact this
afternoon, with partner government
agencies, a definite game plan to
accelerate the development of the local
currency debt market,” he said.
The regulators are proposing three
major operational priorities, first of
which is the deepening of the local
bond market.
This will be done by implementing
reforms on government securities
eligible dealers (GSED) system,
increasing supply of short-term
securities, and developing an effective
regulatory framework on derivatives
and repurchase markets.
The second priority is the institution
of reliable financial benchmarks and
valuation of financial instruments
while the third is the establishment
of an integrated financial market
infrastructure targeted “to promote
September 2017 – No. 17 • UK & Europe Edition
headed for the Philippines.
Under the bill, the exact nature of
all imports, to include their quality,
quantity and prices, would have to be
checked and verified at the country of
origin.
price discovery, transparency, and orderly because it sets the risk-free yield curve
trading clearing and settlement of a full
range of financial transactions.”
Espenilla said the central bank will
ensure that its regulated institutions
“have the capacity to manage risks so
that we don’t get into a situation of
financial instability.”
BTr, in turn, is tasked to “improve
supplies of government securities.”
The central bank chief said the supply
of government securities (GS), to date,”
is “relatively fragmented” and that
despite the over-all high liquidity system so market becomes a well-regulated
in the economy some market segments
are illiquid.
Ensuring that GS supply remains
ample and that these are liquid is “an
important piece of the reform,” he said.
Espenilla added that “primary market
is important because it is also directly
connected to the secondary market for
government securities .”
“The government security market,
in effect, is a most important element
BSP Governor Nestor
Espenilla, in file photo
Atienza said pre-shipment inspection
would enable the BOC to collect the
accurate import duties and taxes and
surpass income targets.
“The BOC has been missing targets
due to unbridled smuggling and
connivance in the undervaluation of
imports and underpayment of duties
and taxes,” he said.
In 2016, the BOC collected only
P398.41 billion, which was P58.04-
billion short of its P456.45-billion target.
From January to July this year, the
BOC collected only P246.98 billion,
or P10.16-billion short of its P257.14-
billion target.
Atienza also said pre-shipment
inspection would benefit legitimate
importers, adding “They will avoid
costly product defects and get
shipments faster without having to
spend for kickbacks.” n Lira Dalangin-
Fernandez, InterAksyon | August 28, 2017, 6:19 PM
which is foundation for pricing all other
kinds of instruments,” he said.
Espenilla said BTr is also tasked to lay
down the foundation of the repurchase
market, noting that the “repo market
is important for creating liquidity for
government securities.”
Repurchase facility allows GS dealers
to sell securities and buy it back, normally
the following day.
The role of the SEC in this partnership
is to “elevate game in market conduct
market,” Espenilla said.
“The approach is we have put
together a definitive roadmap which was
informed by technical assistance from
international experts.”
“We’ll put out the roadmap to engage
industry. (It will be) finalize(d) shortly
thereafter and implement in phases over
the next 18 months after launch today.
That’s a very definite game plan,” he added.
n Philippine News Agency | August 26, 2017, 5:00 PM