Biz buzz: ‘Clingy political appointees’

It seems that some appointees of the previous administration at one regulatory agency simply refuse to heed President Duterte’s Memorandum Circular No. 4.

It will be recalled that in response to reports that corruption remains rampant at some government agencies, Malacañang issued a circular aimed at ridding the bureaucracy of corruption by giving the President a free hand by mandating the submission of courtesy resignations by all presidential appointees.

But the chair and some commissioners of one agency— who are lawyers like the President—have refused to resign. They even argued that their agency should be insulated from politics to preserve their independence, and that their terms of office should be respected by the President.

They have even formally wrote Malacañang to inform the President that they were refusing to resign. Some career officers at the agency have scoffed at the letter, claiming that considering their backgrounds, the argument of their chairman and commissioners does not hold water.

One of the commissioners is a former key staffer of a losing presidential candidate (and who was supposedly instrumental in crafting a smear campaign against President Duterte during the campaign season)  while the other commissioner is a close associate of a key Cabinet member of the previous administration.

Career officers at the agency have highlighted the fact that the previous administration raised the salaries of the agency’s chair and commissioners to almost P600,000 and P400,000, respectively, exclusive of allowances, discretionary funds, travel allowances and other perks. As far as these career officers are concerned, their chair and commissioners were appointed to their positions as political rewards, and they refused to resign because of those perks.

More recently, the agency’s chair has been speaking openly about transferring to an office building that has yet to be built because the current office is supposedly an earthquake risk. However, it would seem this rationale has been belied by the findings of the independent contractor engaged to assess the building’s structural integrity and even by the Department of Public Works and Highways itself.

The independent contractor found that the building could maintain its structural integrity for at least 30 mor years if certain retrofitting works costing only P100 million are undertaken—a recommendation was eventually confirmed by the DPWH.

Career officers and regulated companies are questioning why the agency would choose to rent an expensive property in a swanky central business district to be able to build an office (to be financed, without Neda clearance, by a supposed P1-billion bank loan) when it already owns both the land and the building where its current offices are located.

The career officers have suggested that the real reason may be the possible redevelopment by third parties of the land on which the agency’s building is presently located and the possible benefits that go along with such a massive real estate deal.

So… is this agency’s property redevelopment a controversial Quezon Institute deal, part 2? Abangan! —Daxim L. Lucas

Vacancy in Aduana?

Are Customs Commissioner Nicanor Faeldon’s days at Aduana numbered?

Our Buzzard told us that his immediate boss, Finance Secretary Carlos G. Dominguez III, didn’t like him and that didn’t change even after more than 100 days of the Duterte administration.

Dominguez has sat on all the names recommended by Faeldon as customs collectors, including the former Marine captain’s fellow mutineers in Oakwood led by Gerardo Gambala and Milo Maestrecampo.

Faeldon had high hopes when he took on the job last July as he looked not only to improve revenue but also to beef up his bureau’s other role—border security.

Faeldon appears to have been set up to fail as his Magdalo brothers and other appointees have remained on lame duck status with Dominguez refusing to sign their papers. They can’t sign any document and neither can their predecessors who know they have been replaced.

But for Dominguez, Faeldon won’t cut it and he is looking to get someone he can “work together” in a way like Gary Teves worked with Boy Morales or Cesar Purisima, with Bert Lina.

Dominguez is reportedly vetting several names to replace Faeldon and one of those is former deputy commissioner Roberto D. Geotina.

Geotina was appointed in 2008 under the Arroyo administration when the going rate for “zero inspection” privileges started at P200,000 per container.

Our Buzzard thinks  Faeldon is safe until Christmas this year and unless he makes a miracle—like hitting the BOC’s P406-billion collection target which has only been achieved once in the last 20 years— Dominguez’s guy will take his seat. —Gil Cabacungan

A policy of confusion

In just about eight months, the Philippines may no longer limit the volume of rice imports with the expiration of the quantitative restrictions (QR) on the staple grain—a temporary, protectionist mechanism used in the World Trade Organization.

Considering that rice is a socially sensitive commodity, the Philippines sought—and was able to get it through lengthy negotiations—to extend the QR twice. The last extension was secured in 2015, which moved forward the expiration to June 30, 2017 (it was supposed to expire in 2012). The time gap means the extension process took at least three years.

Agriculture officials under the previous administration never sought to open talks for yet another QR extension, partly because it would become the problem of the next administration (their horizon was apparently limited to June 30, 2016).

Another likely reason was that, in the tail end of Aquino’s term, economists favoring freer trade (and less government intervention) gained the upper hand in steering the country’s rice policy. Before that, the populist policy of pushing for rice self-sufficiency (RSS) while limiting imports prevailed in the Cabinet.

Alas, the promise of “independence” in rice production and supply by the end of 2013 was not realized, no thanks to destructive typhoons (a given in this neck of the woods).

With change supposedly having come, along with the country’s new management, the situation appears to be more of the same, however.

Sen. Francis Pangilinan, himself a former boss of the National Food Authority and harbinger of change from RSS to greater importation under P-Noy, asked the present Cabinet to state a coherent policy on rice.

The thing is, the economist-vs populists tiff remain raging in Malacañang. For now, the pro-free trade camp seem to be keeping the higher ground. Agriculture Secretary Emmanuel F. Piñol, who pushes for RSS, seems to be resigned in defeat and accepting of confusion.

Piñol is pushing for yet another extension of the QR by at least two years. How that may happen within the bounds of WTO rules is a mystery, although trade experts at the DA maintain there are “many ways to hack it.”

Asked when Malacañang would ever be united on a rice policy, Piñol told reporters that such a time would never come.

“You can’t have a unified policy in the Cabinet,” Piñol said. “Basta ako nasabi ko ang posisyon ko. (I have stated my position).”

Meanwhile, home-grown rice continue to be uncompetitive, with the cost of production close to twice that in neighboring countries like Thailand and Vietnam.

With free trade, the market expects an influx of cheaper, imported rice. State think-tank Philippine Institute of Development Studies calls for the institution of safety nets and support for local farmers. So far, what the National Economic and Development Authority mentions is a CCT-type (conditional cash transfer) program for rice growers.

For groups like the Samahang Industriya ng Agrikultura, the problem remains smuggling, QR or no QR. —Ronnel W. Domingo

Race to the top (floor) over

Taking a break from a race to get top television ratings, GMA Network Inc. recently took the time to reward employees grumbling about a different sort of race: Getting to the top floors of their Quezon City headquarters.

It’s not only Edsa that suffers from congestion. For many years now, GMA employees have been packing themselves into the company’s three elevators. Despite being high-speed facilities, there’s only so many people you can serve with so little space.

The result: A sometimes uncomfortable wait scaling GMA Center’s 17 floors.

Well, the good news is GMA recently added two larger elevators for a grand total of five.

These new facilities were also considered “scenic,” if the sprawling view of Quezon City was more of your thing. —Miguel R. Camus