Koko Pimentel leads SC suit vs Maharlika By Joel R. San Juan @jrsanjuan1573
S
ENATOR Aquilino “Koko” Pimentel III together with the representatives of Bayan Muna Party-list group on Monday filed a petition before the Supreme Court seeking to declare unconstitutional Republic Act No. 11954 or the Maharlika Investment Fund Act of 2023. The petitioners also sought the issuance of a temporary restraining order and/or a preliminary injunction and/or a status quo ante order to immediately enjoin the implementation of the law that was signed into law by President Ferdinand “Bonbong” Marcos Jr. last July 18.
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Pimentel was joined by former congressman and Bayan Muna Chairman Neri Javier Colmenares, and former Bayan Muna congressmen Carlos Isagani Zarate and Ferdinand Gaite as petitioners in the case. Named respondents in the petition were Executive Secretary Lucas P. Bersamin, Finance Secretary Benjamin E. Diokno, the House of Representatives, and the Senate. In seeking to declare RA 11954 unconstitutional, the petitioners raised the following arguments: It is void because it was passed in violation of Section 26 (2) Article VI of the 1987 Constitution; the test of economic viability as mandated under Section 16 of Article XII of the
Constitution was not complied with prior to the creation of the Maharlika Investment Corporation; and that the said law violates the independence of the Bangko Sentral ng Pilipinas as provided under Section 20, Article XII of the 1987 Constitution. “Republic Act 11954, or the Maharlika Investment Fund Act of 2023, is a dangerous law. It entrusts hundreds of billions in public funds to unknown fund managers and an amorphous nine-member Board of Directors, six of whom remain unidentified until now,” the petition read. The petitioners pointed out that the Maharlika Investment Fund Act is being implemented in the midst of a budget deficit of P 1.6 trillion, infla-
tion rate of 6.1 percent, and poverty incidence of 18.1 percent in 2022 and massive unemployment and underemployment. “And, more importantly, in a country that has as yet, unchecked and unbridled corruption in the government. “A sovereign wealth fund and untransparent Maharlika Investment Corporation has no place in a country that is still plagued with corruption,” the petitioners said. Under Article VI, Section 26 (2) of the 1987 Constitution, a bill becomes a law only if it passes three readings on three separate days, except if Malacanang certifies it as an urgent measure. See “Koko,” A2
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Tuesday, September 19, 2023 Vol. 18 No. 337
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‘RICE TARIFF CUT A TOOL n
VS. SHORTAGE, INFLATION’
IN Las Piñas Market, a variety of rice grain prices, reflecting their quality, are on display. Economists warn that the continued enforcement of a price cap on rice could further fuel inflation. August inflation rose to 5.3 percent after six consecutive months of decline. Meanwhile, outraged farmers rallied at the offices of the Foundation for Economic Freedom, the Tariff Commission, the Federation of Filipino-Chinese Chamber of Commerce and Industry, and the Department of Finance. They denounced a “sinister plot” by leaders of these organizations to undermine the livelihoods of millions of farmers, jeopardize food self-sufficiency, and hinder the growth of local agriculture—all to benefit a select group of privileged importers and traders, said their official statement. This ongoing dispute underscores the complex dynamics surrounding rice pricing and its potential impact on inflation and agriculture. NONIE REYES/SINAG
A
By Jasper Emmanuel Y. Arcalas
@jearcalas
MID calls for his resignation, Finance Secretary Benjamin E. Diokno on Monday maintained that the reduction of rice import tariffs is part of the administration’s “comprehensive” plan of pulling down the domestic prices of the grain. “The Executive Department is currently discussing at the highest level the proposal to reduce import tariffs on rice as part of a comprehensive strategy to reduce prices for consumers and mitigate a potential shortage of the staple due to the impact of the ongoing El Niño phenomenon,” Diokno said in a statement on Monday in response to calls from various agriculture groups for him to resign over his proposal to reduce rice tariffs.
Seven major farm groups mounted a caravan on Monday to demand his resignation—and that of National Economic and Development Authority Secretary Arsenio Balisacan over the rice tariff issue. Diokno emphasized that the DOF’s position would always support “appropriate” policy responses that would “promote” the “greatest good for the greatest number of Filipinos.” See “Rice,” A2
THAILAND, JAPAN FAVE PINOY VACATION SPOTS–GRABADS By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
T
H A IL A ND is the top choice of Filipino travelers for their vacations in Southeast Asia in the next 12 months, while Japan claims the first spot for their non-Southeast Asian (SEA) destinations. The findings are contained in the latest SEA Travel Insights 2023 report of GrabAds, the advertising arm of Grab, anapp based regional transport n e t w o r k c o mp a n y ( T NC ) operating in the Philippines. The survey polled 2,000 respondents from the Philippines. The travel bug has bitten many Filipinos with interna-
tional pandemic restrictions in most cou nt r ies a l ready dismantled, such that 70 percent of the respondents said they plan to travel abroad at least once in the next 12 months, while 82 percent said they intend to travel more than twice in the same reference period. Of t he Fi l ipi no lei su re travelers’ favored destinations in Southeast Asia, Singapore ranks a close second behind Thailand, with Malaysia and Vietnam sharing third place. Outside of Southeast Asia, after Japan, Filipinos would also want to visit South Korea and the United States, ranking in second and third place, respectively. See “Thailand,” A2
Rising global rice prices may force rate hike–HSBC arm
R
ISING global rice prices may force the Monetary Board (MB) to hike the policy interest rate by 25 basis points later in the year, according to the HSBC Global Research. The research arm of the bank said it expects the Bangko Sentral ng Pilipinas (BSP) MB to keep the policy interest rate at 6.25 percent for the fourth consecutive month during its meeting this week. The MB is set to meet on September 21, Thursday. The HSBC Global Research pointed out that the price ceiling on rice imposed by the state provided the MB with elbow room to “keep policy rates steady.” “This cap will likely keep headline CPI [Consumer Price Index] subdued for the month,” it said in a report published on Monday.
However, the HSBC Global Research disclosed that it changed its forecast for policy rates in the fourth quarter following the “recent surge in global rice prices.” “Due to upside risks to the CPI, we expect a 25 [basis points] hike in [the fourth quarter] 2023, subject to how much tariffs are reduced on rice,” it explained. “A rate hike may also pre-empt the inflationary risks brought by the El Niño season,” it added. Nonetheless, the HSBC Global Research noted that the hike would largely be dependent on the impact of the rice price cap as well as the rice tariff reductions. “The next BSP move will likely depend on what the policy will be on rice after the price cap is lifted by the end of September,” it said. See “Rising,” A2
PESO EXCHANGE RATES n US 56.8380 n JAPAN 0.3847 n UK 70.4223 n HK 7.2630 n CHINA 7.8117 n SINGAPORE 41.7068 n AUSTRALIA 36.5639 n EU 60.6291 n KOREA 0.0428 n SAUDI ARABIA 15.1548 Source: BSP (September 18, 2023)