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Vol. 3 Monday, May 12, 2014 No. 58

Congressional Record16th CONGRESS, FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

CALL TO ORDER

At 4:00p.m., Deputy Speaker Pangalian M. Balindong called the session to order.

THE DEPUTY SPEAKER (Rep. Balindong). The session is called to order.

NATIONAL ANTHEM

THE DEPUTY SPEAKER (Rep. Balindong). Everybody is requested to rise to sing the National Anthem.

Everybody rose to sing the Philippine National Anthem.

THE DEPUTY SPEAKER (Rep. Balindong). Everybody will please remain standing for the Invocation to be led by the honorable Rep. Oscar “Richard” S. Garin Jr.

Everybody remained standing for the Invocation.

INVOCATION

REP. GARIN (O). Before we pray, I would like to ask that you take a moment to look around the room at all the men and women here, in this moment, sharing together this extraordinary experience of being active and of dedicating ourselves to working toward improving the lives of our people.

This is a room in which there are many challenging debates, many moments of tension, of ideological division, of frustration, but this is also a room where, by the very fact of us being human, we have much more in common than we have differences. We share the same potential for care, for compassion, for fear, for joy, for love, so that there is so much for us to celebrate.

Let us pray. In the name of the Father, and of the Son, and of the Holy Spirit. Amen.

Great and eternal God, Creator and Lord of all things, foremost Legislator and Supreme Ruler, from Whom all power emanates and those whose duty is to legislate, determine in Your name what is just or unjust as a reflection of Your divine wisdom.

We thank You for granting us such a sense of duty, objectivity and sound realism which have guided us in our sessions that we may never deviate from that sound impartiality which dictates that we labor without unjust preferences for the good of all.

We pray that You continue to grant us the will that may never fail in loyalty to our people and in firm adherence to the principles which we openly profess.

Continue to help us to be calm in our deliberations and to be immune from all passions except such as may be inspired by the honest quest for truth.

Hear us, O Lord, in order that our minds may never be without Your light, nor our wills without Your strength, nor our hearts without the warmth of Your love.

Finally, as a supreme reward, grant us this day to enjoy each other’s company, in celebration of three years of hard work, dedication and service to our people, a culmination of our cooperative effort to perform what was required of us guided by Your eternal wisdom.

In Jesus’ name, we pray.In the name of the Father, and of the Son, and of the

Holy Spirit. Amen.

THE DEPUTY SPEAKER (Rep. Balindong). The Dep. Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, I move that we defer the calling of the roll.

THE DEPUTY SPEAKER (Rep. Balindong). Please restate your motion.

REP. DEFENSOR. Mr. Speaker, I move that we defer the calling of the roll.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The calling of the roll is hereby deferred.

APPROVAL OF THE JOURNAL

REP. DEFENSOR. Mr. Speaker, I move that we approve Journal No. 57, covering the sessions of May 6 and 7, 2014.


The Journal of the previous sessions is hereby approved.The Dep. Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, I move that we proceed to the Reference of Business.

2 MONDAY, MAY 12, 2014


The Secretary General will please read the Reference of Business.

REFERENCE OF BUSINESS

The Secretary General read the following House Bills on first Reading, Communications, Subpoena Duces Tecum and Committee Reports, and the Deputy Speaker made the corresponding references:

BILLS ON FIRST READING

House Bill No. 4330, entitled:“AN ACT CONVERTING THE CIRCUMFERENTIAL

ROAD FROM BARANGAY POBLACION AND AROUND ALONG THE COAST, MUNICIPALITY OF BALABAC, PROVINCE OF PALAWAN, INTO A NATIONAL ROAD TO BE KNOWN AS MAYOR MATIAS VICENTE HIGHWAY AND APPROPRIATING FUNDS THEREFOR”

By Representative AbuegTO THE COMMITTEE ON PUBLIC WORKS AND

HIGHWAYS

House Bill No. 4331, entitled:“AN ACT RENAMING THE LAGUINDINGAN

INTERNATIONAL AIRPORT LOCATED IN LAGUINDINGAN, MISAMIS ORIENTAL INTO THE EMMANUEL N. PELAEZ INTERNATIONAL AIRPORT”

By Representatives Rodriguez (R.) and Rodriguez (M.)

TO THE COMMITTEE ON TRANSPORTATION

House Bill No. 4332, entitled:“AN ACT TO STRENGTHEN THE MINDANAO

STATE UNIVERSITY SYSTEM”By Representatives Rodriguez (R.) and Rodriguez

(M.)TO THE COMMITTEE ON HIGHER AND

TECHNICAL EDUCATION

House Bill No. 4333, entitled:“ A N A C T P R O V I D I N G F O R R U R A L

EMPLOYMENT ASSISTANCE PROGRAM A N D A P P R O P R I A T I N G F U N D S THEREFOR”

By Representatives Co and BatocabeT O T H E C O M M I T T E E O N R U R A L

DEVELOPMENT

House Bill No. 4334, entitled:“AN ACT PROVIDING NON-FISCAL INCENTIVES

FOR THE PURCHASE OF ELECTRIC, HYBRID AND OTHER ALTERNATIVE FUEL VEHICLES AND FOR OTHER PURPOSES”

By Representative VillarTO THE COMMITTEE ON TRANSPORTATION

House Bill No. 4335, entitled:“ A N A C T R E Q U I R I N G M A N D AT O RY

INSTALLATION OF CLOSED CIRCUIT TELEVISION (CCTV) CAMERAS ON MAJOR ROADS INCLUDED IN ROUTES OF PUBLIC UTILITY VEHICLES AND FOR OTHER PURPOSES”

By Representative HarescoTO THE COMMITTEE ON TRANSPORTATION

House Bill No. 4336, entitled:“AN ACT DECLARING AS PROTECTED AREAS

AND BUFFER ZONES THE PARCELS OF LAND DESIGNATED AS SUCH BY THE PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES PURSUANT TO REPUBLIC ACT NO. 7586, OTHERWISE KNOWN AS THE NATIONAL INTEGRATED PROTECTED AREAS SYSTEM (NIPAS) ACT, PROVIDING FOR THEIR MANAGEMENT AND FOR OTHER PURPOSES”

By Representative Ramirez-SatoT O T H E C O M M I T T E E O N N AT U R A L

RESOURCES

House Bill No. 4337, entitled:“AN ACT TO INCLUDE THE MUNICIPALITY OF

CARIGARA, IN THE PROVINCE OF LEYTE AS SPECIAL ECONOMIC ZONE, AMENDING FOR THE PURPOSE SECTION 5 PARAGRAPH (O) OF REPUBLIC ACT NO. 7916, OTHERWISE KNOWN AS THE ‘SPECIAL ECONOMIC ZONE ACT OF 1995’ ”

By Representative ApostolTO THE COMMITTEE ON ECONOMIC AFFAIRS

House Bill No. 4338, entitled:“AN ACT TO PROTECT WORKERS IN THE EVENT

OF COMPANY CLOSURES OR CESSATION OF OPERATIONS BY ESTABLISHING THE MECHANISM AND PROPER STANDARDS THEREFOR AND FOR OTHER PURPOSES”

By Representative TambuntingTO THE COMMITTEE ON LABOR AND

EMPLOYMENT

House Bill No. 4339, entitled:“AN ACT REQUIRING THE MANDATORY FISCAL

ADEQUACY OF BARANGAY UNITS THEREBY PROVIDING EQUITABLE DISTRIBUTION O F F U N D S A L L O C AT E D T O E A C H GEOGRAPHICAL UNIT AND APPROPRIATING FUNDS THEREFOR”

By Representative TambuntingT O T H E C O M M I T T E E O N L O C A L

GOVERNMENT

House Bill No. 4340, entitled:“AN ACT ESTABLISHING REFORMS IN THE

IMPLEMENTATION OF MAGNA CARTA OF PUBLIC HEALTH WORKERS, THEREBY AMENDING SECTION 7, RULE XV OF RA 7305

MONDAY, MAY 12, 2014 3

PROVIDING FUNDS THEREFORE, AND FOR OTHER PURPOSES”

By Representative TambuntingTO THE COMMITTEE ON HEALTH

House Bill No. 4341, entitled:“AN ACT PROHIBITING THE USE OF DISPOSABLE

P O LY S T Y R E N E F O O D C O N TA I N E R , DISPOSABLE NONRECYCLABLE PLASTIC FOOD CONTAINER, AND DISPOSABLE NONRECYCLABLE CONTENT PAPER C O N T A I N E R , A N D F O R O T H E R PURPOSES”

By Representative TambuntingTO THE COMMITTEE ON ECOLOGY

House Bill No. 4342, entitled:“AN ACT ESTABLISHING THE VISAYAS AND

MINDANAO HOSPITAL FACILITIES OF THE PHILIPPINE HEART CENTER, AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 673, PROVIDING FUNDS THEREFOR, AND OTHER PURPOSES”

By Representative Gatchalian (W.)TO THE COMMITTEE ON HEALTH


MINDANAO HOSPITAL FACILITIES OF THE LUNG CENTER OF THE PHILIPPINES, AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1832, PROVIDING FUNDS THEREFOR, AND OTHER PURPOSES”



MINDANAO HOSPITAL FACILITIES OF THE PHILIPPINE CHILDREN’S MEDICAL CENTER, AMENDING FOR THAT PURPOSE P R E S I D E N T I A L D E C R E E N O . 1 6 3 1 , PROVIDING FUNDS THEREFOR, AND OTHER PURPOSES”


House Bill No. 4345, entitled:“AN ACT CREATING AN INDEPENDENT

COMMISSION TO INVESTIGATE THE PRIORITY DEVELOPMENT ASSISTANCE FUND, OTHERWISE KNOWN AS PORK BARREL, FOR PURPOSES OF DETERMINING WHETHER PUBLIC FUNDS WERE LEGALLY USED FOR PURPOSES INTENDED AND PROVIDED FOR BY LAW”

By Representative AtienzaTO THE COMMITTEE ON APPROPRIATIONS

House Bill No. 4346, entitled:“AN ACT PENALIZING ANTI-COMPETITIVE

C O N D U C T, A B U S E O F D O M I N A N T

POSITION, AND ANTI-COMPETITIVE MERGERS, ESTABLISHING THE PHILIPPINE FAIR COMPETITION COMMISSION AND APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES”

By Representative Del Rosario (A.G.)TO THE COMMITTEE ON TRADE AND INDUSTRY

AND THE COMMITTEE ON ECONOMIC AFFAIRS

ADDITIONAL COAUTHORS

Rep. Lani Mercado-Revilla for House Bills No. 134 and 3840;

Rep. Mark A. Villar for House Bill No. 151;Rep. Angelina “Helen” D.L. Tan, M.D. for House Bills

No. 409, 1175, 2373, 3377 and 3731;Rep. Susan A. Yap for House Bill No. 1625;Rep. Rufus B. Rodriguez for House Bills No. 2152 and 2576;Rep. Noel L. Villanueva for House Bill No. 3058;Rep. Roy M. Loyola for House Bill No. 3686;Reps. Imelda R. Marcos and Diosdado Macapagal

Arroyo for House Bills No. 3839 and 3840;Rep. Ben P. Evardone for House Bill No. 3897;Rep. Leo Rafael M. Cueva for House Bill No. 3974;Rep. Xavier Jesus “XJ” D. Romualdo for House Bill

No. 4108;Rep. Raymond Democrito C. Mendoza for House Bills

No. 151 and 4094 and House Resolution No. 597;Rep. Victor J. Yu for House Bill No. 151 and House

Resolution No. 597;Rep. Irwin C. Tieng for House Bill No. 387 and House

Resolution No. 597;Rep. Agapito H. Guanlao for House Bill No. 410 and

House Resolution No. 597;Rep. Samuel D. Pagdilao for House Bills No. 2152, 2256

and 2576 and House Resolution No. 597;Rep. Luis “Jon-Jon” A. Ferrer IV for House Bill No.

3686 and House Resolution No. 597;Reps. Victor F. Ortega , Dan S. Fernandez and Ferdinand

Martin G. Romualdez for House Bills No. 3839 and 3840 and House Resolution No. 597;

Reps. Gwendolyn F. Garcia and Evelina G. Escudero for House Bill No. 3925 and House Resolutions No. 597 and 819;

Rep. Celso L. Lobregat for House Bill No. 4102 and House Resolution No. 597;

Rep. Nancy A. Catamco for House Bill No. 4265 and House Resolution No. 597;

Reps. Roy V. Señeres Sr., Juliet R. Cortuna, Rodel M. Batocabe, Michael Angelo C. Rivera, Catalina “Baby” G. Leonen-Pizarro, Maria Leonor Gerona-Robredo, Marie Anne S. Pernes, Francisco Ashley L. Acedillo, Raneo E. Abu, Edgar R. Erice, Ma. Victoria R. Sy-Alvarado, Eleanor C. Bulut-Begtang, Ronald M. Cosalan, Arturo B. Robes, Josephine Ramirez-Sato, Pablo R. Nava III, Rose Marie “Baby” J. Arenas, Manuel S. Agyao, Sherwin T. Gatchalian, Giorgidi B. Aggabao, Henedina R. Abad, Benjamin D. Asilo, Eufranio “Franny” C. Eriguel, M.D., Marlyn L. Primicias-Agabas, Edgardo R. Masongsong, Rico B. Geron, Mariano U. Piamonte Jr., Cesar V. Sarmiento, Maria Vida E. Bravo, Joaquin M. Chipeco Jr., Sonny P. Collantes, Francis Gerald A. Abaya, Jorge “Bolet” Banal, Herminia


B. Roman, Lino S. Cayetano, Jose F. Zubiri III, Evelio “Bing” Leonardia, JC Rahman A. Nava, M.D., Arthur R. Defensor Jr., Pryde Henry A. Teves, Gus S. Tambunting, Juan Johnny R. Revilla, Anthony M. Bravo, Cheryl P. Deloso-Montalla, Emil L. Ong, Jonathan A. Dela Cruz, Bellaflor J. Angara-Castillo, Mel Senen S. Sarmie nto, Silvestre H. Bello III, Ana Cristina Siquian Go, Antonio L. Tinio, Carlos Isagani T. Zarate, Carlos M. Padilla, Rosendo S. Labadlabad, Isagani S. Amatong, Henry S. Oaminal, Terry L. Ridon, Nicanor M. Briones, Oscar “Richard” S. Garin Jr., Sharon S. Garin, Rene L. Relampagos, Jose Christopher Y. Belmonte, Emmi A. De Jesus, Arnel U. Ty, Elenita Milagros “Eileen” Ermita-Buhain, Deogracias B. Ramos Jr., Manuel M. Iway, Elisa “Olga” T. Kho, Juan Pablo “Rimpy” P. Bondoc, Gina P. De Venecia, Christopher S. Co, Roman T. Romulo, Linabelle Ruth R. Villarica, Alfredo D. Vargas III, Alfredo “Albee” B. Benitez, Vicente J. Alcala, Czarina D. Umali, Mark Llandro L. Mendoza, Mariano Michael M. Velarde Jr., Marcelino R. Teodoro, George P. Arnaiz, Maria Zenaida B. Angping, Cinchona Cruz-Gonzales, Joseph Gilbert F. Violago, Rodolfo C. Fariñas, Erico Aristotle C. Aumentado, Jose Carlos L. Cari, Leah S. Paquiz, Victoria G. Noel, Josephine Veronique R. Lacson-Noel , Wilfredo S. Caminero, Ann K. Hofer, Rodolfo G. Biazon, Estrellita B. Suansing, Gary C. Alejano, Sol Aragones, Joseller “Yeng” M. Guiao, Edcel “Grex” B. Lagman, Doy C. Leachon, Fernando V. Gonzalez, Walden F. Bello, Niel C. Tupas Jr., Rolando “Klarex” A. Uy, Eleandro Jesus F. Madrona, Rodrigo A. Abellanosa, Isidro T. Ungab, Vicente F. Belmonte Jr., Ma. Lourdes Acosta-Alba, Jim Hataman-Salliman, Belma A. Cabilao, Al Francis C. Bichara, Maryam Napii Arbison, Isidro S. Rodriguez Jr., Francisco A. Calalay Jr., Winston “Winnie” Castelo, Abraham “Bambol” N. Tolentino, Enrico “Recom” Echiverri, Regina Ongsiako Reyes, Ferdinand Hernandez, Ronaldo B. Zamora, Sergio A. F. Apostol, Catherine Barcelona-Reyes, M.D., Jeffrey D. Khonghun, Peter “Sr. Pedro” M. Unabia, Amado S. Bagatsing, Mercedes C. Cagas, Lilia Macrohon-Nuño, Ruby M. Sahali, Thelma Z. Almario, Lawrence Lemuel H. Fortun, Mercedes K. Alvarez, Rosenda Ann Ocampo, Eric L. Olivarez, Hernan G. Biron, Jr., Erlpe John “Ping” M. Amante, Rogelio Neil Pepito Roque, Arnel M. Cerafica, Nicasio M. Aliping Jr., Jorge T. Almonte, Joseph “Ace” H. Durano, Maximo B. Dalog, Andres D. Salvacion Jr., Anthony G. Del Rosario, Pedro B. Acharon Jr., Arcadio H. Gorriceta, Alejandro Y. Mirasol, Paolo S. Javier, Aleta C. Suarez, Zajid G. Mangudadatu, Arnulfo F. Go, Benjamin C. Agarao Jr., Carlo V. Lopez, Antonio A. Del Rosario, Kimi S. Cojuangco and Kaka J. Bag-ao for House Resolution No. 597;

Rep. Emi G. Calixto-Rubiano for House Resolutions No. 597 and 669; and Rep. Barry M. Gutierrez for House Resolutions No. 597 and 819.

COMMUNICATIONS

Letter dated 30 April 2014 of Enrico L. Español, Legal and Regulatory, Smart Communications, Inc., submitting the corporation’s 2013 Annual Report pursuant to Republic Act No. 7294.TO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

Letter dated 30 April 2014 of Enrico L. Español, Legal Counsel, Smart Broadband, Inc., submitting the corporation’s 2013 Annual Report pursuant to Republic Act No. 8337.TO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

Letter dated 30 April 2014 of Enrico L. Español, Legal and Counsel, Primeworld Digital System, Inc., submitting the corporation’s 2013 Annual Report pursuant to Republic Act No. 8992.TO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

Letter dated 30 April 2014 of Roy Cecil D. Ibay, Legal and Regulatory, Digitel Mobile Philippines, Inc., submitting the 2013 Annual Report pursuant to Republic Act No. 9180.TO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

Letter dated 30 April 2014 of Enrico L. Español, Legal and Counsel, Connectivity Unlimited Resource Enterprise, Inc., submitting the corporation’s 2013 Annual Report pursuant to Republic Act No. 9130.TO THE COMMITTEE ON LEGISLATIVE

FRANCHISES

SUBPOENA DUCES TECUM

Pursuant to Section 150, Rule XXIII of the Rules of the House of Representatives transmitting the Subpoena Duces Tecum dated 14 April 2014 re: FF-C-14-0095 issued by Silverio T. Manuel, Jr., Director, General Investigation Bureau-A, Office of the Ombudsman, directing the Chief, Personnel Division, House of Representatives to submit within three (3) days from receipt, clear and certified true copy of the 201 File of Ma. Victoria R. Sy-Alvarado, Congresswoman, 1st District of Bulacan.

Pursuant to Section 150, Rule XXIII of the Rules of the House of Representatives transmitting the Subpoena Duces Tecum dated 18 March 2014 re: FF-C-14-0066 issued by Atty. Ferdinand Q. San Joaquin, Acting Director, Field Investigation Office II, Intelligence Bureau, Office of the Ombudsman, directing Rosalinda H. Borja, Director II, Human Resource Management Service, Administrative Department, House of Representatives, to submit within five (5) days from receipt, clear and certified true copies of the personal data sheet (latest file), appointment paper/s, service records and position description form pertaining to the staff of Hon. Conrado M. Estrella III:1. Lourd Dexter D. Manalo;2. Ronald Casareno; and3. Julie C. Manansala

COMMITTEE REPORTS

Report by the Committee on Basic Education and Culture (Committee Report No. 190), re H. No. 4365, entitled:


“AN ACT ALLOWING HOME ECONOMICS GRADUATES TO TEACH HOME ECONOMICS SUBJECTS AND HOME ECONOMICS-RELATED TECHNICAL-VOCATIONAL SUBJECTS IN ALL PUBLIC AND PRIVATE ELEMENTARY AND SECONDARY EDUCATIONAL INSTITUTIONS, RESPECTIVELY, CONSISTENT WITH SECTION 8 OF REPUBLIC ACT NO. 10533 OR THE ENHANCED BASIC EDUCATION ACT OF 2013”

recommending its approval in substitution of House Bill No. 1681

Sponsors: Representatives Cojuangco (K.), Escudero and Uy (J.)

TO THE COMMITTEE ON RULES

Report by the Committee on Basic Education and Culture (Committee Report No. 191), re H. No. 766, entitled:“ A N A C T S E PA R AT I N G T H E K A L I N G A

NATIONAL HIGH SCHOOL – SALEGSEG A N N E X I N B A R A N G AY S A L E G S E G , MUNICIPALITY OF BALBALAN, PROVINCE OF KALINGA FROM KALINGA NATIONAL HIGH SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS BALBALAN NATIONAL HIGH SCHOOL, AND APPROPRIATING FUNDS THEREFOR”

recommending its approval without amendmentsSponsors: Representatives Cojuangco (K.) and AgyaoTO THE COMMITTEE ON RULES

Report by the Committee on Basic Education and Culture (Committee Report No. 192), re H. No. 4366, entitled:“AN ACT ESTABLISHING A NATIONAL

S C I E N C E A N D T E C H N O L O G Y H I G H SCHOOL IN BARANGAY SAN JOSE, CITY OF ANTIPOLO, PROVINCE OF RIZAL TO BE KNOWN AS ANTIPOLO CITY NATIONAL S C I E N C E A N D T E C H N O L O G Y H I G H SCHOOL AND APPROPRIATING FUNDS THEREFOR”


Sponsors: Representatives Cojuangco (K.), Puno and Acop


Report by the Committee on Basic Education and Culture (Committee Report No. 193), re H. No. 1846, entitled:“AN ACT SEPARATING THE ROMBLON NATIONAL

HIGH SCHOOL – MAYHA EXTENSION IN BARANGAY MAYHA, MUNICIPALITY OF ODIONGAN, PROVINCE OF ROMBLON AS AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS MAYHA NATIONAL HIGH SCHOOL, AND APPROPRIATING FUNDS THEREFOR”

recommending its approval with amendmentsSponsors: Representatives Cojuangco (K.) and

MadronaTO THE COMMITTEE ON RULES

Report by the Committee on Basic Education and Culture (Committee Report No. 194), re H. No. 4367, entitled:“AN ACT SEPARATING THE GENERAL EMILIO

AGUINALDO NATIONAL HIGH SCHOOL ANNEX IN BARANGAY PASONG BUAYA II, IMUS CITY, PROVINCE OF CAVITE, FROM THE GENERAL EMILIO AGUINALDO NATIONAL HIGH SCHOOL, CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS GENERAL LICERIO TOPACIO NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR”


Sponsors: Representatives Cojuangco (K.) and Advincula


Report by the Committee on Basic Education and Culture (Committee Report No. 195), re H. No. 4368, entitled:“AN ACT ESTABLISHING A NATIONAL HIGH

SCHOOL IN BARANGAY CAMANGA, MUNICIPALITY OF MALANGAS, PROVINCE OF ZAMBOANGA SIBUGAY TO BE KNOWN AS DIONISIO LOPEZ, SR. NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR”


Sponsors: Representatives Cojuangco (K.) and Cabilao


Report by the Committee on Youth and Sports Development (Committee Report No. 196), re H. R. No. 1094, entitled:“A RESOLUTION CONGRATULATING AND

COMMENDING THE PHILIPPINE WUSHU TEAM FOR WINNING GOLD MEDALS IN THE 27TH SOUTHEAST ASIAN GAMES HELD IN NAY PYI DAW, MYANMAR ON DECEMBER 11-22, 2013”

recommending its adoption in substitution of House Resolution No. 646

Sponsors: Representatives Del Rosario (A.G.) and Olivarez


Report by the Committee on Basic Education and Culture (Committee Report No. 197), re H. No. 4370, entitled:“AN ACT PROHIBITING THE USE OF TOGA

DURING GRADUATION CEREMONIES IN ELEMENTARY SCHOOLS”


Sponsors: Representatives Cojuangco (K.) and Escudero


Report by the Committee on Public Information (Committee Report No. 198), re H. R. No. 1099, entitled:“A RESOLUTION CONGRATULATING THE


MANILA BULLETIN ON THE OCCASION OF ITS 111TH FOUNDING ANNIVERSARY ON FEBRUARY 2, 2014”

recommending its adoption in substitution of House Resolution No. 753

Sponsors: Representatives Almonte and CasteloTO THE COMMITTEE ON RULES

THE DEPUTY SPEAKER (Rep. Balindong). The Asst. Majority Leader is recognized.

REP. GARIN (O). Mr. Speaker, may we be allowed to acknowledge the presence of some guests in the gallery.

THE DEPUTY SPEAKER (Rep. Balindong). Please proceed.

REP. GARIN (O). Mr. Speaker, we have the Dumagat, Remontado, Tingguian, Abelling, Kalinga, B’Laan tribes of Region IV; Aeta tribes of Region III; and also Matigsalog, Bagobo, Higaonon, Kalinga, Ifugao, Agta, Dumagat tribes from the Central Office of the National Commission on Indigenous Peoples. They are the guests of our Cong. Nancy A. Catamco of the Second District of North Cotabato, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Balindong). Our honoured guests are requested to rise. Please rise. You are welcome to the House of Representatives. (Applause)

The Asst. Majority Leader is recognized.

PRIVILEGE HOUR

REP. GARIN (O). Mr. Speaker, I move that we proceed to the Privilege Hour.


The Chair declares a Privilege Hour.The Asst. Majority Leader is recognized.

REP. GARIN (O). Mr. Speaker, I would like to move for the recognition of Hon. Nancy A. Catamco of North Cotabato.

THE DEPUTY SPEAKER (Rep. Balindong). The Hon. Nancy A. Catamco is recognized to speak under the Privilege Hour.

PRIVILEGE SPEECH OF REP. CATAMCO

REP. CATAMCO. Mr. Speaker, Ladies and Gentlemen, I rise today to share some personal reflections and collective recollections on the Indigenous Peoples Rights Act or IPRA and to speak about that long road that remains to be travelled.

Ikinararangal kong makasama kayo ngayon hindi bilang isang babaeng isinilang at ipinalaki ng angkan ng mga Bagobo-Manobo na nagmula sa Mindanao. Ako ay mula sa isang tribong matibay ang diwa at kalooban. Sa kabila ng pagkokolonisa ng mga banyaga, hindi kami bumitaw sa aming kultura. Sa kabila ng mga naranasang polisiya ng

estado para sa asimilasyon at integrasyon, hindi kami nawalay mula sa lupain ng aming mga ninuno.

With the Agta tribe in Sierra Madre; the Bagobo, Ata-Manobo, Ubo and Manobo in the Davao Region; B’laan and T’boli in Socsargen; the Higaonon, Kaolo, Banwaon and Talaandig in Northern Mindanao; Subanen in Zamboanga Region and the Manobos in the Caraga; the Mamanwa and Manobo tribes in Surigao del Sur; Manobos in Agusan del Sur; the Sadanga tribe in the Mountain Province; and the Brooke’s Point Federation of Tribal Councils in Palawan, and the many others kasama po ang mga katutubo at mga leaders mula sa NCIP mula sa Region III at Region IV—the 14 million indigenous peoples stand victorious with the decision of the Supreme Court upholding the constitutionality of Indigenous Peoples Rights Act.

In the terse words of Justice Puno, the IPRA is a novel piece of legislation to address the centuries-old neglect of the Philippine indigenous peoples. Indeed, it is not only a piece of legislation but a legislation of peace. Ang IPRA, mga minamahal kong mga kasama sa Kongreso, ay isang batas na pangkapayapaan. Para sa aking mga kapwa katutubo, ito ay isang kasunduang pangkapayapaan sa pagitan ng pamahalaan at ng mga katutubo na pinagtibay bilang isang batas. Ito ay tagumpay mula sa, at para sa kapayapaan. Ito ay tagumpay na muling nagbibigay ng kapangyarihan sa mga katutubong isinantabi ng lipunan. It is a victory that is a fruit of our long decades of struggle against political isolation and dispossession. Our communal needs and aspirations have found the most comprehensive expression in the IPRA as a legal guarantee to reclaim our essential identity and cultural integrity.

G. Ispiker, mga iginagalang at mga minamahal kong mga kasama, dapat nating ikarangal at iulat sa Pangkalahatang Asembleya ng United Nations na 10 taon bago nito pagtibayin ang UN Declaration on the Rights of Indigenous Peoples noong ika-13 ng Setyembre taong 2007, naipasa na ng Kongreso ng Pilipinas ang IPRA noong ika-19 ng Oktubre taong 1997. Dahil dito, nais kong bigyan ng pinakamataas na pagpupugay ang Ikasampung Kongreso para sa kanilang walang pag-aatubiling pagpasa sa R.A. No. 8371. Dahil sa kanilang tibay ng loob at masigasig na pamumuno, walang bumoto laban sa panukalang ito.

Ang makabago at mapagpabagong batas na ito ay nagbigay-buhay sa mga pamayanan ng mga katutubo pagdating sa pagbubuo at pangangasiwa ng kanilang sariling mga sistema ng pamamahala at mga institusyon upang makamit ang kaunlaran gamit ang iba’t ibang paraan. In our pursuit of self-determination, we do not aspire for statehood nor political independence, but rather, a dignified communal coexistence for self-governance.

I had a wonderful experience and remarkable opportunity to study the autonomous communities of the great indivisible nation of Spain. Last month, Secretary Ging Deles of the OPAPP, together with some Members of Congress including this Representation and our Deputy Speaker, went to Galicia and Madrid to study their own models of autonomy which created a fairer and freer political system for its historical regions. It is inspiring to note that in a society with advanced democracy, cultural identities and aspirations for self-governance are recognized.

Personal kong nasaksihan kung paano nila ipinagtatanggol ang halaga ng mga katutubong wika sa bawat rehiyon


bilang pangunahing salik sa kanilang kultura na siyang nag-aambag sa mayamang pagkakaiba-iba ng sibilisasyong Kastila. Namangha ako sa kung paano sila nagkakasundo sa pangangasiwa at pamamahagi ng nalilikom na kita sa pamamagitan ng pagbibigay sa mas nangangailangan.

Yes, to those who have less, more is given. At sa puntong ito, ito ang kailangan natin sa Mindanao. Kasama na ngayon sa mga pangarap ko ang pagpapatupad sa ating bansa ng isang sistemang katulad nito.

G. Ispiker, mga kasama, ang pagkilala sa kultural at kolektibong identidad ng mga komunidad ng mga katutubo ay mahalaga para sa kanilang kapakanan at kaunlaran.

Dapat nating bigyang pansin at tanggapin na may mga pagkakaiba-iba at mayroon ding mga pagkakaisa ang mga mamamayang katutubo.

This brings me to the open letter to the President signed by the Timuays, Datus, Fintailans, Baes of Teduray, Lambingan, Dulangan Manobo, Erumanen ne Manuvu and Obo Manobo inhabiting in the southern and eastern part of Mindanao. They signified their deepest respect for many of their Maguindanaoan brothers which are of indigenous peoples as well.

Nagbigay pugay sila sa pamanang nagbubuklod sa kanilang pinagmulan, ang naratibo ng Mamalu at Tabunaway na nagsimula ng pag-uusap sa pagitan ng mga katutubo, mga kultura at mga kabihasnan. Binanggit nila na maliban pa sa kasaysayan, sila ay magkakaugnay dahil sa angkin nilang kultura. Idiniin nila ang pangangailangang alalahanin hindi lamang ang mga pagkakasundong pangkapayapaan na naghahayag ng pang-uunawang ito, kundi pati na rin ang mga sagradong kasunduan na nagbubuklod sa kanila bilang mga taong may taglay na iba’t ibang pagkakakilanlan, kalinangan at kalupaan. Ang mga kasunduang pangkapayapaang ito ay mga kasunduan din para sa teritoryo na siyang sabay na naghihiwalay at nag-uugnay sa kanila.

Sinabi nila na kahit pa ilang daang taon pa ang lumipas, ang naratibong Mamalu-Tabuwanay ay mananatili bilang isang balangkas na gumagabay sa kanila bilang isang pagbubuklod ng alaala at dunong na minana mula sa mga salinlahing dumaan. Ito, sa dulo ng lahat, ang siyang nagpapakita sa kanila kung paano tahakin ang landas patungo sa tunay na kapayapaan.

Equally crucial to the effective protection of the rights of IPs is the principle of plurality of ancestral domains contemplated under the IPRA. Stated simply, there are as many ancestral domains pertaining to different individuals or distinctive cultural groups held in common that may be identified and delineated. It cannot be a universal, indivisible and single ancestral domain pertaining to all ethno-linguistic indigenous cultural communities in the Philippines or in its particular region without distinction. To subscribe to this idea would be a brazen disregard for the rights of indigenous peoples to remain distinct—a case of forced assimilation, if not ethnocide.

That is why Justice Puno said that the identification and delineation of these ancestral domains and lands are powers conferred by the IPRA on the National Commission on Indigenous Peoples or NCIP. The guiding principle in the identification and delineation is self-delineation. This means that the IPs have a decisive role in determining the boundaries of their domains and in all pertinent activities.

Sa paraan ng pamumuhay ng mga katutubong Pilipino, ang

lupa ng aming mga ninuno ay hindi komersyal na kasangkapan. Hindi rin ito simpleng kaakibat ng pangangailangang pang-ekonomiko. Sa katunayan, ito ay usaping sumasaklaw sa kaibuturan ng pagkatao at pagiging tao, kasama na ang diwa ng kanilang mga ninunong pinaniniwalaan nilang nabubuhay pa rin sa kanilang mga lupain. Kapag nawala sa mga tribo ang mga lupa ng kanilang mga ninuno, mawawala rin ang saligan ng kanilang katutubong identidad, ang pangunahing bahagi ng kanilang buhay. Sinabi na noon pa na ang pagiging “katutubo” ay nangangahulugang pamumuhay sa loob ng kanyang tinubuang lupa. Ang kolektibo at pinagsamang diwa ng mga katutubo, na kadalasan ay naihahayag sa mga kwento at epiko ng paglikha at bagong simula, ay naglalagay sa kanila sa kanilang kinalulugaran na pisikal na buhay sa panahong hindi abot ng gunita. Dahil dito, kailangang bigyan ng diin ang kanilang bukod-tanging espiritwal na pagkakaugnay sa kanilang mga lupain. Ang pagtatanggol sa kanilang mga lupa ay tunay at tiyak na susi upang maunawaan nang lubos ang IPRA. Lalo pa nitong pinagtitibay ang katotohanang lupa at espasyo ang mahahallagang salik para sa kaligtasan ng mga katutubo. Ito ang ating ipinapanawagan at pinaninindigan.

As can be seen geographically, there are ancestral domains of the Lumads whose distinctive historical cultures and traditions coexist peacefully with that of their Muslim brothers in the southern and eastern Mindanao. As shown in your screen, ancestral domains on areas issued with Certificate of Ancestral Domain Title or CADT have light blue color while those with completed survey have deep blue color.

The suspension in the delineation and titling activities for Sumisip, Basilan was due to the prevailing peace and order situation, while boundary conflict causes the suspension of activities in Matalam and Kabacan, North Cotabato. Ancestral domains which are still being processed or suspended are in green and red colors, respectively.

As of January 30, 2014, the NCIP has approved and issued 165 CADTs throughout the country with 4.5 million hectares of ancestral domains. Per record, there are on-process and pending applications of ancestral domains throughout the country with almost 10 million hectares, more or less, 40 percent of which pertains to Regions XI and XII including the ancestral domains of municipalities of Upi and South Upi in Maguindanao.

G. Ispiker, nawa ay gawin nating batayang prinsipyo na isama ang mga kapakanan ng mga katutubo sa ating mga planong panglehislatibo, sa anumang usaping magbubunga ng pagyurak sa cultural na identidad nila at sa teritoryal na integridad ng mga lupa ng kanilang mga ninuno.

By and large, the IPRA is sui generis or one of its kind in being protective mantle bestowed to ethnic minorities recognizing their indigenous distinctive rights to self-determination, the flourishing of their language, the preservation of their cultures, and the protection of their lands.

Justice Puno, in his separate opinion, considered the Cariño doctrine which largely rests on the concept of due process as well as the pronounce policy “to do justice to the natives.” Applying the said doctrine and other cases, Puno said that the provisions of IPRA do not contravene with the Constitution and that the ancestral domains and lands are the private property of indigenous peoples and never have been part of public domain.


Noong nakaraang taon, G. Ispiker, nakisama sa pagdiriwang ng makasaysayan at cultural na kahalagahan ng katutubong Pilipino si Pangulong Benigno S. Aquino III. Ito ay noong ikalabinlimang anibersayo ng pagkakapasa ng IPRA. Ang tema para sa okasyong ito ay “IPRA ay Gabay sa Kaunlaran (Isaisip, Ipabatid at Isakatuparan).”

Nagbigay-pugay ang Pangulo sa mga katutubo sa kanyang pag-anyaya sa kanilang magbalik-tanaw sa maraming tagumpay ng RA No. 8371. Kasama rin sa kanyang mensahe ay ang paglalatag ng hamon upang lalong pag-ibayuhin pa ang dedikasyon ng lahat ng pagpapalakas at pagtataguyod ng mga cultural na identitdad bilang paraan ng pamumuhay upang magbigay ambag sa kasaysayan ng ating bayan.

The NCIP has allotted every year P20 million for the identification and delineation of ancestral domains and lands. This is clearly not enough to hasten the issuance of title for our native claimants.

I, therefore, encourage my dear colleagues to study and review the budget of the NCIP. There is no point of delaying the issuance of the CADTs for want of budget. We cannot delay giving what is already theirs since time immemorial. After all, in the landmark case, I previously cited that the registration requirement was not to confer title but simply to establish it.

For the record, after 13 years of the passage of IPRA, this present administration through the DILG issued Memorandum Circular No. 2010-119 that paved the way for the mandatory representation of indigenous cultural communities in policy-making bodies and other local legislative council. To date, there are 805 mandatory representatives in the local legislative councils throughout the country. Still, there are LGUs that are insensitive and unresponsive to the implementation of the memorandum. This inaction of some LGUs in this regard might probably, if not certainly, give the impression of racial prejudice which runs contrary to our inclusive and integrated effort to respect culture diversity at all levels.

Nabanggit ko na kanina, kaming mga tribo ay hindi nag-aasam ng paghihiwalay. Our own understanding of self-determination is not equivalent to sovereignty. It is not self-determination equivalent ot succession. An IP barangay or municipality created through the process of devolution is not far-fetched within the context of our Constitution and IPRA. We aspire for an IP barangay or municipality that will be funded by the national government according to our needs and in keeping with our aspirations. This will help fill, if not close, the gaps for basic needs of the poorest sector in our society. This is the duty of the State—to assist the indigenous peoples in their inclusive effort to realize their economic potential.

Nagiging malinaw sa akin ngayon na ito ay isang nagpapatuloy na laban na kailangan kong harapin mula noong araw na unang tumapak ako sa mundo ng serbisyo publiko bilang Kinatawan ng aking kapwa katutubo. Subalit ito ay isang mapayapang tunggalian. Ito ay isang laban para sa pagwawaksi ng mga kamalian at ng mga kakulangan ng ating pamahalaan.

It was this purest desire for the truest liberation of my people to live their lives with dignity and self-determination that made the greatest sense in my decision to join the Philippine Congress. I know that the challenges ahead are as high as the steepest hills of Mt. Apo. Hindi madali ang

magkaroon pa ng ikalawang tagumpay matapos ang IPRA, pero hinding-hindi ako matitinag.

For now, there is something that I am certain of. It is this Chamber that gave us our first victory. I, therefore, urge the distinguished Members of this House to convert our victory into reliable and solid political instruments and modalities to repair broken promises and to help my tribe reap the rewards and rightful share in the social and economic development of this country.

Mga kasama, ang pagkilala sa karapatan at kapakanan ng mga katutubong Pilipino ay kaakibat at kabuklod ng pagkilala sa lupa ng aming mga ninuno. Ito ang puno’t dulo ng mga usaping may kinalaman sa aming mga suliranin at pangarap. Nawa ay makasama namin kayo sa aming laban para sa kapayapaang kaugnay ng karangalan bilang iba-ibang tribo at bilang pinag-isang mamamayang Pilipino.

Maraming salamat, G. Ispiker. Maraming salamat, mga minamahal kong mga kasama sa Kongreso.

REP. ATIENZA. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Balindong). What is the pleasure of the Hon. Jose L. Atienza Jr.?

REP. ATIENZA. With the permission of the Lady, the distinguished Lady from Cotabato, we would like to help elucidate some more issues she raised today on the plight of our indigenous peoples in our country.

THE DEPUTY SPEAKER (Rep. Balindong). The Lady may do so, if she so desires.

REP. CATAMCO. Yes, Mr. Speaker.

REP. ATIENZA. Maraming salamat po, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Balindong). He wants further elucidation.

REP. CATAMCO. Okay. Yes, Mr. Speaker.


REP. ATIENZA. With the very critical condition prevailing now among the nation’s poor, we agree and we cannot disagree at all with the call of our Lady Representative from the Second District of North Cotabato about our indigenous peoples’ condition, that although they have a law protecting their rights, very clear, many times still, they are deprived of their rights. So, I would like to ask the Lady Representative: Ano po ba specifically ang inyong matutukoy na patuloy na paglabag sa karapatan ng ating mga indigenous peoples?

REP. CATAMCO. Thank you po, Mr. Speaker. Sa tanong po sa atin kung ano ang matutukoy, ngayon po, kung sa maitutukoy po ay marami po tayong maitutukoy, but as of now, we are really focusing on our ancestral domains na hanggang ngayon po ay kulang pa po ang badyet nito para ito ay ating ma-delineate, dahil ito po ay kailangan na kailangan po ng ating mga katutubo natin sa Mindanao.


REP. ATIENZA. Sa inyong palagay po ba ay ang inilalaan para sa surveying, definition and other requirements of the law to define the indigenous peoples’ land ay kulang na kulang? Iyon po ba ang pinakamalaking problema dito sa ating kasalukuyang panahon?

REP. CATAMCO. Sa ngayon po, sa sinabi na po natin ang badyet lang po para sa atin lang pong delineation ng ancestral domains ay P20 million a year. Ito po ay kulang according to the NCIP dahil marami pa pong mga kailangang gawin para po sa delineation po ng mga ancestral domains ng mga katutubo.

REP. ATIENZA. Sa meron pong kinalaman sa ancestral domain lands that are available for land use of our indigenous peoples? Saan po ba ang mga ito nabubuo, sa kahabaan ng Cordillera, sa Mountain Province, sa Mindanao? Saan po ba natutumpok ang mga problemang ito, sa tingin ninyo?

REP. CATAMCO. Mr. Speaker, ipinakita po natin kanina ang mga pending na mga applications or claims ng mga katutubo. Ito po ay from Luzon, of course, meron po tayo sa Baguio. Hanggang ngayon, ang pinakailangan po natin din kahit na po ang katutubo sa Mindanao—so marami po itong pending na application.

REP. ATIENZA. Sinusuportahan po naming ang panawagan ng ating napakagandang dilag na mukha ng ating mga indigenous people, sapagkat naniniwala po tayo sa kagandahan ng ating lahi. Subalit kailangan ay ating tumbukin kung saan nanggagaling ang problema at kung bakit hindi naibibigay ang karapat-dapat na lupa sa ating mga katutubo. Meron pong dapat managot dito? Hindi maaaring sabihin lang nating problema ang pondo. Ito po ba ay nabibinbin sa NCIP? Ito po ba ay nabibinbin sa Department of Environment and Natural Resources?

REP. CATAMCO. Ito po ay nakabinbin, of course, sa NCIP—sila po ang may mandato para po sa pag-delineate ng ating mga ancestral domains.

REP. ATIENZA. Para kong nararamdaman ang mahapding katotohanan kapagka ang mga katutubo na nangangarap na ng kani-kanilang bahagi ng ating lupa sa pagkakapirma ng batas noong Setyembre 13 ...

REP. CATAMCO. October po.

REP. ATIENZA. ... 2007.

REP. CATAMCO. October 1997 po. IPRA. October 1997.

REP. ATIENZA. ... of the IPRA Law, e hanggang ngayon ay wala pa pong katuparan iyong mga isinasaad doon, e napakalaking patuloy na hapdi ng damdamin at puso ng ating mga katutubo. This cannot continue, Mr. Speaker. The law has been passed. Congress acted expeditiously and it has been in effect for the past seven years, so it is about time that the government take this law seriously. Alam nating lahat na ang mga katutubo ang nagmamay-ari ng lahat ng buong kapuluan noong unang panahon pa bago dumating ang mga banyaga

at nagkaroon ng titulo ang mga bundok at ang mga lupain, pati na ang mga kapuluan kung saan ang mga katutubo ay napag-iwanan.

Ang pangarap ng bawat Pilipino ay lupa, hindi po biyahe, hindi po pagkain kung minsan, basta lupa. Bigyan ninyo ng lupa ang mga mahihirap at makapag-uumpisa na po sila para isakatuparan ang kanilang mga pangarap. Sang-ayon po ba kayo roon?

REP. CATAMCO. Yes, G. Atienza.

REP. ATIENZA. Kaya itinuturing nating napakalaking paglabag sa karapatan ng mga Pilipinong katutubo, na dapat sana ngayon ay nakaangat na sa kanyang kalagayan sa ekonomiya, but instead of that, he is deprived of a parcel of land that he would like to own, together with his family.

So, Mr. Speaker, I ask the Lady Representative from Cotabato officially, as a request of the BUHAY Party-List, that we work together to see to it that the indigenous peoples of the country, through the NCIP, the agency that represents them in government, are given more efficient attention coming from all the departments concerned.

Kung nagkukulang po ang Department of Environment and Natural Resources, tinatawagan po natin ang kanilang pansin. Kung hindi po nila ginagawa ang kanilang mahalagang tungkulin ay pananagutin natin sila. Kung nagkukulang din po naman ang mga dapat pumirma sa mga dokumento na magbibigay katuparan sa kanilang pangarap ay pananagutin din po natin ang mga ito.

More importantly, in the hands of this Congress, we should give answer to the plight aired by the Lady Representative from Mindanao, that the definition of ancestral lands is inadequate and is not usable for the purpose of its creation. Iyon po ba ang masasabi nating ninanais ninyo at gusto ninyong mabigyan natin ng solusyon?

REP. CATAMCO. Mr. Speaker, ako po ay nagpapasalamat sa ating esteemed colleague, of course, kay G. Atienza sa suporta po na kanya pong inilahad ngayon para po sa ating mga katutubo.

Salamat po, G. Atienza.

REP. ATIENZA. With that, Mr. Speaker, we call on our colleagues, let us take note of the condition, the situation, the dreams and the aspirations of our people coming from the ranks of the indigenous people in our deliberations on the budget that they are most deprived as of today. We would like to see the day when our country is enjoyed by our indigenous peoples, in the same manner that we, the products of the modern world and intermarriages in our land, are already enjoying. Hindi po dapat na nag-e-enjoy lang po dito sa atin ay iyong may mga apelyidong banyaga at hindi lamang po iyong mga mayroong matatangos ang ilong sapagkat marami pong mas magagandang tao tayong nakikita sa katauhan ng ating mga katutubo.

Maramng salamat po and we would like to thank the Lady from North Cotabato.

THE DEPUTY SPEAKER (Rep. Balindong). Thank you, Mr. Speaker.

REP. CATAMCO. Thank you po, G. Atienza.

10 MONDAY, MAY 12, 2014

THE DEPUTY SPEAKER (Rep. Balindong). What is the pleasure of the Hon. Kaka J. Bag-ao?

REP. BAG-AO. Maaari po bang magpaunlak ang Diwata ng Mt. Apo ng ilang mga katanungan, Mr. Speaker?

REP. CATAMCO. I am honored, Diwata ng Dinagat Islands.

THE DEPUTY SPEAKER (Rep. Balindong). The Hon. Catamco may do so, if she so desires.

REP. BAG-AO. Salamat po.Noon pong nakaraang Kongreso, noong Fifteenth

Congress, sa isang committee hearing ng National Cultural Communities Committee, nabanggit po ng isang representative ng NCIP na ang komisyon ay maaari lang magbigay ng isang CADT sa bawat probinsiya sa bawat taon. Ito ay iyong one CADT per province per year at alam naman po natin kung gaano karami iyong applicants sa isang probinsiya para sa issuance ng ancestral domain title sa mga probinsiya nila. Ganito rin po ba ang karanasan ng mga katutubong kasama ninyo, lalung-lalo na po sa Mindanao? At ano po iyong kadalasang nagiging aksyon at nagiging tugon ng mga katutubo kung isang CADT per province per year lang ang pwedeng iisyu ng NCIP?

REP. CATAMCO. Salamat po, G. Ispiker.Sa tanong po ng ating Diwata ng Dinagat Islands, sa

probinsiya po natin, lalo na po sa Mindanao, pinakaproblema po iyan na mayroon tayong policy na one CADT per province. I think matatagalan po yata bago maibigay o matugunan ang lahat ng claimant na gusto nila na ma-separate na, o ma-delineate ang kanilang ancestral land. So ito po talaga ay kulang na kulang.

REP. BAG-AO. Totoo. At kapag ganito po iyong pace o iyong kabagalan ng issuance ng CADT ay baka abutin pa po ng golden anniversary ang IPRA ay hindi pa tapos ang pamamahagi ng CADT. Ang gusto ko po sanang itanong ay may mga kongkreto bang mungkahi ang mga katutubo at I am sure naidudulog sa Committee on National Cultural Communities itong tungkol sa pagbabago ng rule na one CADT per province per year o iyong immediate na pagresolba ng application ng mga CADT na pipila sila na parang habambuhay para lang maisyuhan sila. Ang tanong ko po ay may mga kongkreto bang mga mungkahina pwedeng suportahan din ng Kongreso para matugunan iyong napakalaking problema na iyon?

REP. CATAMCO. Ang gusto lamang ng mga katutubo ay i-simplify ang proseso nito dahil kung tayo po ay talagang strict ay i-follow natin yung one CADT per province a year dahil hindi po talaga matutugunan ang pag-delineate ng kanilang mga ancestral domains, at ang sabi po ng NCIP, ang badyet po talaga for delineation of the ancestral domains which is only P20 million per year ay hindi po talaga ito tama, or kulang na kulang po para matugunan ang mga CADT na gusto po nating i-delineate para sa ating mga katutubo.

REP. BAG-AO. Kung ganoon, handa po ba iyong komite para mag-sponsor ng isang aksiyon o isang resolusyon na

puwedeng suportahan din ng mga MIyembro ng Kongreso para, una, ay mabago iyong rule. Tingin ko, hindi lang naman ito usapin ng badyet, usapin din ito ng pagsisiguro na iyong pagkilala sa mga ancestral domain claims ay nandiyan na kahit pinoproseso pa lang ang pagbibigay at ang paggagawa ng survey, ang paglalabas ng mapa, ang pag-a-identify ng mga boundaries mula sa bundok hanggang karagatan. Willing po ba iyong komite na magtulak ng ganitong pagbabago ng rule kasi kahit po sa personal na karanasan ay parang imposible na magkaroon ng totoong pagkilala kung lahat ng mga katutubo ay pipila taon-taon kasi isang CADT lang ang pwedeng maisyu ng NCIP?

REP. CATAMCO. Tama po. Ang Committee po ng Indigenous Peoples ay willing na para ...

THE DEPUTY SPEAKER (Rep. Balindong). The Ladies are requested to address the Chair.

REP. CATAMCO. Okay. Mr. Speaker, tungkol sa sagot po sa tanong ng ating Congresswoman ng Dinagat Islands, ang Committee ng Indigenous Peoples ay willing po to discuss the rules and policies para po ma-simplify po natin ang pagproseso po ng ating mga ancestral domains para po ay matugunan natin ang mga matagal na pong problema ng mga katutubo pagdating po sa kanilang problema sa kanilang lupain.

REP. BAG-AO. Sa palagay ko, Mr. Speaker, napapanahon na po para bigyan ng Kongresong ito ng atensiyon ang usapin hinggil sa pagproseso ng pagkilala ng ancestral domain claims. Sana po ay suriin natin at bigyan ng kaukulang solusyon ang mga balakid na nagpapabagal, kung hindi man ay nagpapahinto sa proseso ng pagbibigay ng mga CADTs.

Noong Tenth Congress pa napasa ang batas na ito. Sixteenth Congress na po ngayon. Sana po ay hindi na po natin patagalin iyong inaasahan ng ating mga katutubo.

Maraming salamat po sa Diwata ng Mt. Apo.

REP. CATAMCO. Maraming salamat po, Mr. Speaker, at maraming salamat po sa Diwata ng Dinagat Islands.


REP. DEFENSOR. Mr. Speaker, I move that we refer the speech of the Hon. Nancy A. Catamco and its interpellations to the appropriate Committee.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none, the motion is approved.

The Dep. Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, I move that we recognize the Gentleman from the Party-List MAGDALO, the Hon. Ashely L. Acedillo, for his privilege speech.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none, the motion is approved.

The Hon. Francisco Ashley L. Acedillo is recognized to avail of the Privilege Hour. Please proceed.

MONDAY, MAY 12, 2014 11

PRIVILEGE SPEECH OF REP. ACEDILLO

REP. ACEDILLO. Thank you, Mr. Speaker.Mr. Speaker, distinguished colleagues, I rise today to

honor the memory of the 14 soldiers, two of them, in fact, are known to me being both graduates of the Philippine Military Academy, who died in separate ambushes perpetrated by the New People’s Army which has been operating in Bohol more than a decade ago.

I rise today to give honor and due recognition to the endless toil, ceaseless determination and unparalleled heroism of our soldiers and policemen who day-to-day serve and fight to protect our people and preserve our democratic way of life.

On March 3, 2000, six soldiers and four militiamen were killed in an ambush by communist rebels in Barangay Sta. Catalina, Sagbayan, Bohol. They were sent to reinforce a nearby Special Forces Detachment in Barangay Balilihan that had come under attack by the NPA.

Killed in the Ambush were 2Lt. Socrates Que, leader of the reinforcing team, S/Sgt. Jaime Estrella and Corporals Albert Concepcion, Adonis Ysulan, Victor Danao and Policarpio Pama. Also killed were militiamen Ricardo Luzon, Efren Prado, Eduardo Lomosbog and Maximo Gahipas. Lieutenant Que was barely two years out of PMA, one year ahead of me in the academy, and was only in his mid-20s when he met his cruel fate that day.

According to the Cebuano newspaper The Freeman in their report two days after, and citing statements from the survivors:

After the initial hail of bullets, the rebels came down from the hills and finished off the soldiers before making off with their weapons.

The newspaper went on to cite that:

xxx in an ambush, the victims normally sustain gunshot wounds in their bodies. In this case, all the dead soldiers bore head wounds, meaning they were finished off at close range.

Almost three years after that day, tragedy would again hit, but this time it would hit closer to home. On March 8, 2003, Lt. Ronnie Bungaos and three other army soldiers were killed in an ambush while on their way back from their patrol in Barangay Abaca, Mabini, Bohol. Seven other soldiers sustained gunshot wounds in various parts of their bodies.

Lieutenant Bungaos was my classmate from the Philippine Military Academy, class of 1999, and a close friend. He sustained seven gunshot wounds, including one in the head and another on the chest. The firefight lasted for almost two hours. When they recovered his body , kahit wala na iyong baril niya, naka-trigger finger pa rin ang posisyon niya. He died fighting till his last breath gave out. Our helicopter unit recovered his remains and those of his soldiers from Bohol and brought them to Mactan Air Base in Cebu.

This is where I will make it more personal. Alam ninyo po noong nakita po namin ang kanyang katawan, basag na po ang kanyang bungo, and his right arm was barely hanging from his shoulder. Usually po kapag namamatay ang isang

army officer, he is also assigned a survivor officer from the Philippine Army. But in this particular case, probably because I was there the moment his body was brought to the airbase, I was assigned as airport officer and to be his survivor officer. Since that day on March 8, 2003 until he was buried on March 19, I never left his side. Iyon na lang siguro ang magagawa ko sa aking Mistah at sa aking kaibigan. Pero alam ninyo po ang nakakalungkot dito, Ronnie had been married only for 11 months. His son, then only five months old, was due to be baptized 15 days after March 8. Bibinyagan pa lang sana ang kanyang anak. By this time, he would have been married for 13 years, a major for 38 years and a proud father to a 12-year old pero hindi na po nangyari iyan. Namatay po siya sa Mabini, Bohol, no less than the hometown of his very own mother.

Iyon pong kwento ko takes a very curious turn dahil bago po nangyari iyong ambush in 2000 and 2003, mayroon pong kwento ang isang dating PC lieutenant na ngayon ay heneral na sa PNP tungkol sa isang nagngangalang Roy Erecre. Roy Erecre was arrested in early 1986 in Barangay Cabanbanan, Dimiao, Bohol after a raid on a hut where armed rebels were conducting a teach-in. Four of his companions jumped out of the window and were instantly killed. Three others were able to escape. Erecre and a woman, both unarmed, were inside with raised hands. Their cover story was that they were conducting research for their Master’s studies in the University of San Carlos and they were held against their will by the armed men. They were grateful that they were rescued by the PC Lieutenant. Itatago na lang natin siya sa pangalang Lt. Jun. Erecre, and his companion had IDs to show that they were students in the University of San Carlos Graduate School. Needless to say, the PC Lieutenant was given a commendation for supposedly saving Erecre and his companion from the NPAs and after so much fanfare, Lt. Jun was ordered by his provincial commander to release them.

When the Bohol peace panel was convened for the 1986 talk after President Cory Aquino rose to power, imagine the surprise of Lt. Jun and his soldiers when they saw in the Bohol capital that Erecre was sitting as the head of the NPA panel with Ranulfo Macadini, alias Ka Alay, the head of the Bohol NPA as his co-chairman. Lieutenant Jun’s platoon sergeant could not help but remark to his platoon leader, “Sabi ko na sa inyo, Sir, we should have killed them,” to which Lt. Jun simply replied, “Sergeant, we are not criminals nor murderers, we are soldiers.”

Mr. Speaker, my dear colleagues, iyon lang naman sana po ang hinihingi ko. Soldiers are expected to lay their lives on the line, and in that course, lay the ultimate sacrifice in the alter of freedom. Pero, bakit naman po kailangan pang basagin ang bungo nila, barilin pa sila at close range? Do they not deserve a more merciful end, “A soldier’s death,” as they say? Pero hindi po.

So, imagine my great surprise when I received a report from official channels. Noong natanggap ko po itong ulat na ito, I could only say: “The mills of God grind slowly but surely. Heaven’s vengeance is slow but sure.”

According to the report, combined elements of the Eastern Mindanao Command, CIDG 11, Army and AFP intelligence operatives, and the Davao police, arrested no less than Roy Erecre, alias Toto, alias Pasyong, the Secretary of the Central Visayas Regional Committee of the CPP-NPA. He was arrested in Sasa District, Davao City at around 11:00

12 MONDAY, MAY 12, 2014

a.m., on May 7, 2014. He was arrested with his girlfriend, a married woman, named Judith Jaron-Niog, while the duo were island hopping in the different beaches and tourist destinations in the region. Unbeknownst to the couple, they have already been tailed several days before by combined police and army intelligence operatives. Erecre was arrested by virtue of several unbailable warrants of arrest from regional trial courts in Cebu and Bohol in the late 1990s and early 2000. He also led the ambush which killed the late Lt. Socrates Que and Lt. Ronnie Bungaos, separately in 2000 and 2003, which brings to mind, Erecre will have to explain to his comrades in the Communist Party why he is in the beaches and hotels of Davao City with a very much married woman while the Communist Party is in the midst of filling a leadership vacuum.

Mr. Speaker, minamahal kong mga kasama, to me this story is really surreal. Sabi nga nila, “You may run and you may hide but the long arm of the law will catch up with you.”

Si Lt. Ronnie Bungaos po ay tubong Davao. Ang pamilya niya ay nakatira sa Sasa District, Davao City the very same place na nahuli po ang pumatay sa kanya, si Roy Erecre.

I am simply waiting for the CPP-NPA to declare in a similar fashion they declared when the Tiamzon couple were captured in Cebu, na ang mga Tiamzon daw ay nagsusupervise lamang ng reconstruction projects para sa Yolanda. I am fully expecting that they will declare that Erecre was on duty to inspect. I do not know, probably, anti-poverty projects. But Ladies and Gentlemen, I may be for the peace process with the Left but I will still resist any efforts to include the Tiamzons, and this time, Roy Erecre is in the JASIG list, para lang po makapag-participate sila sa peace talks. Tututulan po natin yan. Now that he is behind bars, I say to the 14 soldiers who died in the hands of Roy Erecre and his cohorts, to my fellow PMAers, the late Lt. Socrates Que and my mistah, Lt. Ronnie Bungaos, rest in peace. Justice is at hand.

Maraming salamat po, G. Ispiker. Thank you my dear colleagues.


REP. DEFENSOR. Mr. Speaker, I move that we refer the speech of the Honorable Acedillo to the appropriate committee.



REP. ALVAREZ (F.). Mr. Speaker, I move that we acknowledge the presence of some guests in the gallery.


REP. ALVAREZ (F.). We have the guests of Cong. Raneo E. Abu of the Second District of Batangas, Cong. Rico B. Geron and Cong. Nicanor “Nikki” M. Briones of AGAP Party-List, and Cong. Benjamin “Atong” D. Asilo of the First District of Manila.

We have the barangay captains of the municipality of Bauan, headed by ABC President Mely Castillo; Barangay

Captains of the municipality of San Pascual, Batangas, Felicidad Cuadro; and SB member of San Pascual, Nini Recepeda—all from the the Second District of Batangas.

THE DEPUTY SPEAKER (Rep. Balindong). Our guests are requested to please rise. (Applause) You are welcome to the House of Representatives.


REP. ALVAREZ (F.). May we also acknowledge the presence of the guests of Hon. Agapito H. Guanlao of BUTIL Party-List and the Hon. Gavini “Apol” C. Pancho of the Second District of Bulacan.


REP. ALVAREZ (F.). We have the alumni of St. James Academy of Plaridel, Bulacan: Monica Lontok, Cristina Santiago, Lorinda Capiral, Rebecca Soriaga and Leonila Castillo.

THE DEPUTY SPEAKER (Rep. Balindong). The guests are requested to please rise. (Applause) You are welcome to the House of Representatives.


REP. ALVAREZ (F.). Mr. Speaker, may we recognize the Hon. Henry S. Oaminal for his privilege speech.

THE DEPUTY SPEAKER (Rep. Balindong). The Honorable Oaminal is recognized to avail of the Privilege Hour.

Please proceed.

PRIVILEGE SPEECH OF REP. OAMINAL

REP. OAMINAL. Thank you very much, Mr. Speaker.Mr. Speaker, distinguished colleagues, ladies and

gentlemen in thie august Chamber.As I deliver this privilege speech today, my constituents

in the Second District of Misamis Occidental are enveloped in darkness because we have been experiencing seven to nine hours of daily power outage. My distinguished colleagues from Mindanao also share the same brownout experience in their respective districts.

In the recent consultation meeting that I called in my district with the local chief executives, electric cooperative management and officers, business sector and other energy stakeholders, I was asked this question:

“Mr. Congressman, the EPIRA is aimed to improve power services at a lower cost. The law was approved 13 years ago, but why is it that we are still experiencing this bad power services at present? May mahabang brownout na, mas tumaas pa ang bayad sa kuryente.” It is, therefore, heartbreaking to know that some people are reaping fruits at the expense of other people’s misery as can be gleamed from the following:

On February 23, 2014, shortly before we adjourned in early March, this humble Representation was stunned by a news article in the Manila Bulletin captioned: “PSALM asked to explain P31 billion loss from irregular transaction.” It has something to do with the prepayment transaction

MONDAY, MAY 12, 2014 13

for the concession fees for the government’s transmission facilities made by the NGCP to the PSALM, an agency of the government.

The enormous amount involved was so compelling to be ignored that during the Lenten break, diligent efforts were exerted to determine the veracity of the report. As this Representation dug a little deeper in the circumstances surrounding this so-called irregular transaction, more astonishing facts were unearthed.

Our government had, indeed, lost and will continue to lose billions of pesos each year in this single government transaction alone. As Representatives of the people, it is our bounded duty and moral responsibility to protect the interest of the people against continuing ill effects of the private capitalists’ appetite for profit especially in the power sector.

Mr. Speaker, it is for this reason, that I rise today to raise the highly irregular prepayment deal and to speak on the issue that affects every household, a very sensitive issue that has been pointed to as one of the culprits of the power price hike. I am referring to the privatization of TransCo which happens to be the root cause of the reported higly questionable transaction.

Let me narrate, for a brief backgrounder on how the situation come about, what has happened and what more can we expect.

The privatization in the power industry began in 1987 by virtue of Executive Order No. 215 issued by former President Corazon Aquino. It was pursued by succeeding administration of former President, now our distinguished colleague Rep. Gloria Macapagal-Arroyo, when restructuring and privatizing the power industry went full blast with the passage of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act or EPIRA of 2001.

After three failed biddings since 2003, the consortium of Monte Oro Grid Resources Corporation of Henry Sy Jr., Calaca High Power Corporation of China, known as the NGCP was awarded the concession contract when it won the bidding on December 12, 2007.

Mr. Speaker, amidst opposition from cause-oriented groups and concerned citizens, the NGCP obtained from Congress its license to operate and maintain the transmission system by virtue of Republic Act No. 9511 effectively legitimizing it as a private entity to run a public service utility. The concession contract amounted to $3.95 billion, 25 percent of which, equivalent to $987.5 million, was paid to the PSALM on commencement date or on January 15, 2009, and the balance in semi-annual installments for 20 years. But under the concession agreement, the NGCP has the option to prepay any deferred payment or any portion thereof so long as there is no amount due the PSALM or TransCo.

In blatant disregard of the concession agreement, specifically Section 6.07 thereof, the NGCP remitted $1.5 billion to PSALM on July 15, 2013 to cover the 10th to 40th deferred payments.

NGCP President Henry Sy Jr., in a press conference, explained that his company merely responded to the PSALM’s formal request on prepayment to help the said agency in its financial dilemma, but during the last Committee on Energy hearing, Mr. Ledesma, PSALM President, when asked by this prepayment, denied that he made one but cited the provisions of the concession agreement. TransCo, which is

under PSALM, strongly protested, citing that the government could fetch as much as P110.5 billion total concession fees and that the prepayment of US 51.5 billion may only amount to P65.16 billion at peso-dollar rate at that time.

The Commission on Audit or COA, in an audit memorandum issued to the PSALM, noted that the prepayment transaction blattantly infringed the concession agreement because the NGCP has an outstanding obligation with TransCo at that time amounting to P2.5 billion. Applying therefore the abovementioned provisions on the concession agreement, no prepayment should have been allowed.

Accoring to the COA, the prepayment is grossly disadvantageous to the PSALM/TransCo because it lost opportunity to earn interest income of 8.479 percent per annum or as much as P31.025 billion.

The table on the screen shows that the government should have earned P92.9 billion in interest income without the prepayment but only P61.8 billion after prepayment or a variance of P31 billion. This is based on teh principal amortization of P54.3 billion per amortization period, multiplied by 8.48 percent, equals P4.7 billion in interest income per amortization period, which has been reduced to P2.3 billion or a variance of P2.4 billion in interest income after prepayment.

The COA further emphasized that the prepayment proceeds were not needed by the PSALM last year for the simple reason that its cash balance of P47.2 billion was higher than its maturing obligation of P52.4 billion for the period.

As a matter of fact, part of the said prepayments were just placed under retail treasury bonds and high yield savings deposits which earn an annual interest of only three percent and one percent respectively, because they are not immediately needed in the PSALM’s current year operations.

The PSALM’s action therefore demonstrated a brazen disregard for the country’s financial state, foregoing over P31 billion of guaranteed income for our government. The huge amount could have helped us finance our different social services program like the Conditional Cash Transfer program for the poor instead of borrowing billions of pesos from the World Bank to finance the project.

Even considering the time that has elapsed from the time the transaction has been consummated up to the present, we cannot just condone this highly irregular transaction and let the day pass as if nothing had happened. We need to raise alarm signals and act swiftly to get to the bottom of this devious deal, considering the whopping amount involved which even dwarfed the P728 million fertilizer scam, the P12 billion Aman Futures Ponzi scam and the highly controversial P10 billion Napoles scam, combined.

Mr. Speaker and my distinguished colleagues in this august Chamber, if we consider this prepayment as a scam, then this is the grandmother of all scams. Other crucial parts of this document are the provisions on corporate tax exemption privilege, the pass-through charges to consumers and the provision of initial working capital to the NGCP.

Mr. Speaker, this humble Representation cannot fathom why in the world our government would ever think of selling a very profitable government corporation like TransCo.

In order not to complicate matters, let me just make a comparative partial summary of incomes and tax payments of TransCo and NGCP.

For the years 2007 and 2008, just before its privatization,

14 MONDAY, MAY 12, 2014

TransCo earned, after tax expense, P23.9 billion and P24 billion, respectively, and paid income and other taxes to the government, P6.6 billion and P7.2 billion, for said period.

On the other hand, for the years 2009 and 2010, just after the turnover from TransCo, the NGCP earned net incomes of P15.5 billion and P18.5 billion, respectively, but paid measly sums of P1.05 billion and P1.3 billion, which represented three percent franchise tax, as it is exempted from paying income and other form of taxes, duties, fees and charges of any kind, under R.A. No. 9511, a privilege which TransCo, a government corporation did not enjoy. This kind of transaction is what our people may sometimes call in jest as “lutong Macau na, tubong lugaw pa!”

With the special privileges accorded to the NGCP, it continues to reap the fruits of our own folly as its income grows significantly over the years. In fact, it landed in the 25th spot in the latest Securities and Exchange Commission’s list of top 500 corporations in the Philippines but is nowhere to be found in the BIR’s list of top paying corporations.

The NGCP also enjoys the benefit of imposing “pass-through” charges to its captive consumers under the Concession Agreement. For instance, the burden of funding the rehabilitation of the damage to the transmission lines and other facilities in areas affected by typhoon “Yolanda” which was estimated to reach P5.7 billion was simply passed on to the captive consumers. Even in the event that the government will impose tax, the same will just be passed on to the consumers in the form of charging high electricity rate.

Another sweetener in the Concession Agreement is contained in Section 4.06 thereof which provides that on the commencement date, the concessionaire shall acquire all of TransCo’s cash, receivables and the benefit of all prepayments made by TransCo and shall assume the liability to pay and discharge all of TransCo’s current liabilities. TransCo’s assets at that time reached a total of P10.7 billion with total liabilities of P7.4 billion, and in the initial working capital provided was P3.34 billion.

What is mind-boggling in that Concession Agreement was that while it required down payment equivalent to 25 percent of the total contract price on concession date, it also guaranteed provision on initial working capital for the same period.

The privatization of TransCo, therefore, has all the elements of a sweetheart deal. Even as this transaction might already be a done deal, in my personal view, Congress can still do something to remedy the situation. The questionable prepayment transaction which clearly breached the terms of the Concession Agreement is another matter that this august Body must look into.

Mr. Speaker, when the EPIRA was passed, we were deliriously overjoyed about the prospect that we will not suffer rotating brownouts anymore. However, it remains an illusion to this day. From the time the privatization of power commenced up to the present time, this power rate increase has defied solution, but I remain optimistic that we will still find a solution.

Mr. Speaker, this humble Representation is speaking on this issue not to take the government to task but possibly to help correct an agonizing situation and prevent a malady from further affecting the entire Filipino people from any point of Luzon up to Visayas and Mindanao as a direct consequence of TransCo’s privatization. Based on expert’s opinion, what

the Philippines needs is not privatization but a stronger state intervention on public utilities to protect the interest of the consumers and the productive sectors of the economy.

Let us then revisit the EPIRA to enable the government to possibly regain control on the power sector and revisit the Concession Agreement and the franchise law of the NGCP. Let us look into the P31-billion irregular prepayment deal to determine the culpability of the officials involved in the transaction and plug loopholes, if there are any, in the Concession Agreement. Let us not forget that our citizens’ misfortunes and sufferings will not stop and their tribulations will even be compounded if the present state of the power problem will not be solved.

This urgent call must be made so that the government, especially this august Body, should ensure that robust policies are laid down and fertile measures are adopted to rectify the electricity price mess. We need no experts to tell us that bias against privatization in general, and electricity transmission in particular, should cease; otherwise, our troubles will proliferate rather than diminish and cause collapse of our entire economic recovery program.

If we ignore this urgent plea for government intervention, if we permit this significant issue slip through our fingers, then, may the Father Almighty have mercy on us all.

Thank you, Mr. Speaker. Thank you, my dear colleagues.

THE DEPUTY SPEAKER (Rep. Balindong). Thank you.


REP. DEFENSOR. Mr. Speaker, before we proceed, I move that we extend the Privilege Hour for another one hour.


The Privilege Hour is extended for another one hour.

SUSPENSION OF SESSION

REP. DEFENSOR. Mr. Speaker, I move for a suspension of the session.

THE DEPUTY SPEAKER (Rep. Balindong). A suspension is declared.

It was 5:26 p.m.

RESUMPTION OF SESSION

At 5:26 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Balindong). The session is resumed.


REP. DEFENSOR. Mr. Speaker, in the meantime, I move that we suspend the Privilege Hour.

THE DEPUTY SPEAKER (Rep. Balindong). There is a

MONDAY, MAY 12, 2014 15

motion to suspend the Privilege Hour. Is there any objection? (Silence) The Chair hears none; the motion is approved.


ROLL CALL

REP. DEFENSOR. Mr. Speaker, I move that we call the roll.


The Secretary General will please call the roll.

The Secretary General called the roll, and the result is reflected in Journal No. 58, dated May 12, 2014.*

At this juncture, Deputy Speaker Balindong relinquished the Chair to Deputy Speaker Sergio A. F. Apostol.

THE SECRETARY GENERAL. The roll call shows that 198 Members responded to the call.

THE DEPUTY SPEAKER (Rep. Apostol). With 198 Members present, the Chair declares the presence of a quorum.

The Sr. Deputy Majority Leader is recognized.

REP. BANAL. Thank you, Mr. Speaker.I move that we consider bills on Third Reading.

THE DEPUTY SPEAKER (Rep. Apostol). Is there any objection? (Silence) The Chair hears none; the motion is approved.

The bills on Third Reading are hereby considered.

NOMINAL VOTING ON H.B. NO. 3984ON THIRD READING

REP. BANAL. Thank you, Mr. Speaker.I move that we vote on Third Reading on House Bill No.

3984 and direct the Secretary General to read the title of the measure, and call the roll for nominal voting.

I so move.

THE DEPUTY SPEAKER ( Rep. Apostol). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Thereupon, the Secretary General read the title of the measure, printed copies of which were distributed to the Members on May 7, 2014, pursuant to Section 58, Rule X of the House Rules.

THE SECRETARY GENERAL. House Bill No. 3984, entitled: AN ACT ALLOWING THE FULL ENTRY OF FOREIGN BANKS IN THE PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7721.

The Chair directed the Secretary General to call the roll

for nominal voting. Thereafter, pursuant to the Rules of the House, a second roll call was made. The result of the voting on Third Reading** on the aforesaid measure appears in Journal No. 58, dated May 12, 2014.

REP. BELLO (W.). Mr. Speaker, this is to register the opposition to this bill.

THE DEPUTY SPEAKER (Rep. Apostol). Just a minute, where are you?

REP. BELLO (W.) Yes, I am right here, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Yes, what is the pleasure of the Congressman?

REP. BELLO (W.) This is to register, Mr. Speaker, the opposition of AKBAYAN to this bill which will destroy the local banking industry. This is a neocolonial bill, we cannot accept this bill for the future of our country. This is a bad bill.

THE DEPUTY SPEAKER (Rep. Apostol). Congressman, we are on the Third Reading. I mean, ...

REP. BELLO (W.) I am registering a negative ...

THE DEPUTY SPEAKER (Rep. Apostol). ... if you object, you make your objection after the voting.

REP. BELLO (W.) Okay, thank you, Mr. Speaker.Therefore, I register AKBAYAN’s severe objection to

this bill, “No” to this.

THE DEPUTY SPEAKER (Rep. Apostol). Yes.

REP. BELLO (W.) Thank you.

THE DEPUTY SPEAKER (Rep. Apostol). Noted.

REP. TINIO. Mr. Speaker. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Yes, Congressman Tinio.

REP. TINIO. I vote “No” to House Bill No. 3984.

THE DEPUTY SPEAKER (Rep. Apostol). Okay, Congressman Tinio, “No.”

REP. COLMENARES. Mr. Speaker, I vote “No” on the bill.

THE DEPUTY SPEAKER (Rep. Apostol). Congressman Colmenares voted “No.”

REP. ILAGAN. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Yes, Congresswoman Ilagan.

** See MEASURES CONSIDERED (printed separately)* See ANNEX (printed separately)

16 MONDAY, MAY 12, 2014

REP. ILAGAN. I vote “No” to the bill and I shall submit my explanation of vote afterwards.

THE DEPUTY SPEAKER (Rep. Apostol). Yes, after the roll call.

REP. DELA CRUZ. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Congressman Bello (W.) is recognized.

REP. DELA CRUZ. Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Yes, Congressman Dela Cruz.

REP. DELA CRUZ. Thank you veru much, Mr. Speaker.May I know how my vote was recorded?

THE DEPUTY SPEAKER (Rep. Apostol). None.

REP. DELA CRUZ. Why? I am voting “No” against this bill.

THE DEPUTY SPEAKER (Rep. Apostol). Okay.

REP. DELA CRUZ. Why are you not recording my “No” vote?

THE DEPUTY SPEAKER (Rep. Apostol). Your vote now is “No.”

REP. DELA CRUZ. Thank you, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Apostol). Now, Congressman Bello (W.), you are supposed to deliver your speech.

REP. BELLO (w.). Mr. Speaker, I already said a few words. I do not think that the bill will be in the interest of the banking industry and the Philippine economy as a whole. That is basically the essence of my objection, Mr. Speaker, and I will submit this in writing detailing the reasons I have just given.

Thank you, Mr. Speaker.

APPROVAL OF HOUSE BILL NO. 3984ON THIRD READING

THE DEPUTY SPEAKER (Rep. Apostol). Submission in writing of the opposition will be considered.

Now, with 191 affirmative votes, seven negative votes and no abstention, House Bill No. 3984 is approved on Third Reading.

NOMINAL VOTING ON HOUSE BILL NO. 4146ON THIRD READING

REP. BANAL. Mr. Speaker, I move that we vote on Third Reading on House Bill No. 4146 and direct the Secretary

General to read the title of the measure and call the roll for nominal voting.

I so move.

THE DEPUTY SPEAKER (Rep. Apostol). Is there any objection? (Silence) The Chair hears none; the motion is approved.

Thereupon, the Secretary General read the title of the measure, printed copy of which were distributed to the Members on May 7, 2014, pursuant to Section 58, Rule X of the House Rules.

THE SECRETARY GENERAL. House Bill No. 4146, entitled: AN ACT INCREASING THE PRESCRIPTIVE PERIOD FROM FIFTEEN (15) YEARS TO THIRTY (30) YEARS FOR THE VIOLATION OF REPUBLIC ACT NO. 3019, OTHERWISE KNOWN AS THE “ANTI-GRAFT AND CORRUPT PRACTICES ACT”, AMENDING SECTION 11 THEREOF.

The Chair directed the Secretary General to call the roll for nominal voting. Thereafter, pursuant to the Rules of the House, a second roll call was made. The result of the voting on Third Reading* on the aforesaid measure appears in Journal No. 58, dated May 12, 2014.

At this juncture, Deputy Speaker Apostol relinquished the Chair to Deputy Speaker Pangalian M. Balindong.

APPROVAL OF H. B. NO. 4146ON THIRD READING

THE DEPUTY SPEAKER (Rep. Balindong). With 198 affirmative votes, no negative vote and no abstention, House Bill No. 4146 is approved on Third Reading.


NOMINAL VOTING ON. H.B. NO.4147ON THIRD READING

REP. BANAL. Mr. Speaker, I move that we vote on Third Reading on House Bill No. 4147 and direct the Secretary General to read the title of the measure, and call the roll for nominal voting.

I so move.



THE SECRETARY GENERAL. House Bill No. 4147, entitled: AN ACT RATIONALIZING AND STRENGTHENING THE PROBATION SYSTEM, AMENDING FOR THE PURPOSE THE PERTINENT PROVISIONS OF PRESIDENTIAL DECREE NO. 968, OTHERWISE KNOWN AS THE “PROBATION LAW OF 1976”, AS AMENDED.

* See MEASURES CONSIDERED (printed separately)

MONDAY, MAY 12, 2014 17


APPROVAL OF H. B. NO. 4147ON THIRD READING





I so move.



THE SECRETARY GENERAL. House Bill No. 273, entitled: AN ACT CONVERTING THE BAYAWAN CITY LAND TRANSPORTATION OFFICE (LTO) EXTENSION OFFICE INTO A REGULAR LTO DISTRICT OFFICE.


APPROVAL OF H.B. NO. 273ON THIRD READING


The Sr. Dep. Majority Leader is recognized.



I so move.



THE SECRETARY GENERAL. House Bill No. 577, entitled: AN ACT ESTABLISHING A LAND TRANSPORTATION OFFICE IN THE MUNICIPALITY OF NABUNTURAN, COMPOSTELA VALLEY PROVINCE AND APPROPRIATING FUNDS THEREFOR.







I so move.



THE SECRETARY GENERAL. House Bill No. 1001, entitled: AN ACT PROVIDING FOR THE ESTABLISHMENT OF A DISTRICT HOSPITAL IN THE MUNICIPALITY OF STA. ELENA, PROVINCE OF CAMARINES NORTE AND APPROPRIATING FUNDS THEREFOR.






18 MONDAY, MAY 12, 2014



I so move.



THE SECRETARY GENERAL. House Bill No. 2188, entitled: AN ACT ESTABLISHING A LAND TRANSPORTATION OFFICE (LTO) DISTRICT OFFICE IN THE CITY OF BAYBAY, PROVINCE OF LEYTE AND APPROPRIATING FUNDS THEREFOR.







I so move.



THE SECRETARY GENERAL. House Bill No. 4117, entitled: AN ACT DECLARING APRIL 27 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF LAPU-LAPU IN HONOR OF THE HEROISM

OF LAPU-LAPU AGAINST FERDINAND MAGELLAN DEPICTED IN THE HISTORIC BATTLE OF MACTAN.







I so move.



THE SECRETARY GENERAL. House Bill No. 4119, entitled: AN ACT DECLARING JULY 4 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF CADIZ, PROVINCE OF NEGROS OCCIDENTAL IN COMMEMORATION OF ITS CHARTER DAY ANNIVERSARY.






REP. BANAL. Mr. Speaker, I move that we vote on Third


MONDAY, MAY 12, 2014 19

Reading on House Bill No. 4125 and direct the Secretary General to read the title of the measure, and call the roll for nominal voting.

I so move.



THE SECRETARY GENERAL. House Bi l l No. 4125, entit led: AN ACT DECLARING THE NORTHWEST PANAY PENINSULA LOCATED IN THE MUNICIPALITIES OF NABAS, MALAY AND BURUANGA, PROVINCE OF AKLAN AND IN THE MUNICIPALITIES OF LIBERTAD AND PANDAN, PROVINCE OF ANTIQUE AS PROTECTED AREA UNDER THE CATEGORY OF NATURAL PARK, PROVIDING FOR ITS MANAGEMENT.







I so move.



THE SECRETARY GENERAL. House Bill No. 540, entitled: AN ACT ESTABLISHING A DISTRICT OFFICE OF THE LAND TRANSPORTATION OFFICE (LTO) IN THE CITY OF BACOOR, PROVINCE OF CAVITE AND APPROPRIATING FUNDS THEREFOR.







I so move.



THE SECRETARY GENERAL. House Bill No. 652, entitled: AN ACT CONVERTING THE EXTENSION OFFICE OF THE LAND TRANSPORTATION OFFICE IN THE MUNICIPALITY OF SANCHEZ MIRA, PROVINCE OF CAGAYAN INTO A REGULAR DISTRICT OFFICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.






REP. BANAL. Mr. Speaker, I move that we vote on Third Reading on House Bill No. 1246 and direct the Secretary


20 MONDAY, MAY 12, 2014

General to read the title of the measure, and call the roll for nominal voting.

I so move.



THE SECRETARY GENERAL. House Bill No. 1246, entitled: AN ACT ESTABLISHING A SATELLITE OFFICE OF THE LAND TRANSPORTATION OFFICE (LTO) IN THE MUNICIPALITY OF IROSIN, SORSOGON AND APPROPRIATING FUNDS THEREFOR.







I so move.



THE SECRETARY GENERAL. House Bill No. 2028, entitled: AN ACT ESTABLISHING A LAND TRANSPORTATION OFFICE (LTO) DISTRICT OFFICE IN THE CITY OF ANTIPOLO, PROVINCE OF RIZAL AND APPROPRIATING FUNDS THEREFOR.

The Chair directed the Secretary General to call the roll for nominal voting. Thereafter, pursuant to the Rules

of the House, a second roll call was made. The result of the voting on Third Reading* on the aforesaid measure appears in Journal No. 58, dated May 12, 2014.






I so move.


T h e re u p o n , t h e S e c re t a r y G e n e r a l re a d the title of the measure, printed copies of which were distributed to the Members on May 5, 2014, pursuant to Section 58, Rule X of the House Rules.

THE SECRETARY GENERAL. House Bill No. 2095, entitled: AN ACT CONVERTING THE LAND TRANSPORTATION OFFICE (LTO) EXTENSION OFFICE LOCATED IN THE MUNICIPALITY OF STA. MARIA, PROVINCE OF BULACAN INTO A REGULAR LTO DISTRICT OFFICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.







I so move.


MONDAY, MAY 12, 2014 21



THE SECRETARY GENERAL. House Bill No. 3217, entitled: AN ACT CONVERTING THE KABACAN LAND TRANSPORTATION OFFICE (LTO) EXTENSION OFFICE IN THE MUNICIPALITY OF KABACAN, PROVINCE OF COTABATO INTO A REGULAR LTO DISTRICT OFFICE.







I so move.



THE SECRETARY GENERAL. House Bill No. 4118, entitled: AN ACT DECLARING OCTOBER 26 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE PROVINCE OF CATANDUANES TO BE KNOWN AS THE “FOUNDATION DAY OF CATANDUANES.”







I so move.



THE SECRETARY GENERAL. House Bill No. 4120, entitled: AN ACT DECLARING MARCH 31 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE CITY OF PANABO, PROVINCE OF DAVAO DEL NORTE TO BE KNOWN AS “PANABO CITY DAY.”







I so move.



22 MONDAY, MAY 12, 2014


THE SECRETARY GENERAL. House Bill No. 4121, entitled: AN ACT DECLARING OCTOBER 24 OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF PILI, PROVINCE OF CAMARINES SUR IN COMMEMORATION OF THE FEAST DAY OF ITS PATRON SAINT, S T. R A P H A E L , T H E A R C H A N G E L , TO B E KNOWN AS THE “MUNICIPALITY OF PILI DAY.”







I so move.



THE SECRETARY GENERAL. House Bill No. 4122, entitled: AN ACT DECLARING THE THIRD FRIDAY OF OCTOBER OF EVERY YEAR A SPECIAL NONWORKING HOLIDAY IN THE MUNICIPALITY OF BAUNGON, PROVINCE OF BUKIDNON TO BE KNOWN AS “ARAW NG BAUNGON.”





REP. BANAL. Mr. Speaker, I move that we immediately transmit the aforementioned approved Bills to the Senate.

I so move, Mr. Speaker.



REP. BANAL. Thank you, Mr. Speaker.Before we take up the Business for the Day, Mr.

Speaker, may we acknowledge the presence of the guest of the honorable Speaker Feliciano Belmonte, Jr. and Majority Leader Neptali “Boyet” M. Gonzales II, we have with us former Rep. Manuel “Way Kurat” Zamora from the First District of Compostela Valley.

THE DEPUTY SPEAKER (REP. BALINDONG). The honorable former Cong. Manuel “Way Kurat” Zamora is on the left gallery. You are welcome again, to the House of Representatives. (Applause)


REP. BANAL. Thank you, Mr. Speaker.I move that we take up the Business for the Day.


CONSIDERATION OF H.B. NO. 4179ON SECOND READING

PERIOD OF SPONSORSHIP AND DEBATE

REP. BANAL. I move that we consider House Bill No. 4179, contained in Committee Report No. 161, as reported out by the Committee on Agrarian Reform.

May I ask that the Secretary General be directed to read only the title of the measure.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none; the motion is approved.*

The Secretary General is directed to read only the title of the measure.

With the permission of the Body, and since copies of the measure have been previously distributed, the Secretary General read only the title thereof without prejudice to inserting its text into the Congressional Record.


MONDAY, MAY 12, 2014 23

THE SECRETARY GENERAL. House Bill No. 4179, entitled: AN ACT PROVIDING FOR THE RESTRUCTURING AND CONDONATION OF UNPAID INTERESTS, PENALTIES, AND SURCHARGES ON LOANS SECURED BY FARMERS, FISHERFOLK AND AGRARIAN REFORM BENEFICIARIES FROM THE DEPARTMENT OF AGRARIAN REFORM (DAR), THE DEPARTMENT OF AGRICULTURE (DA), THE PEOPLE’S CREDIT AND FINANCE CORPORATION (PCFC), THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA), THE NATIONAL FOOD AUTHORITY (NFA), AND THE QUEDAN AND RURAL CREDIT GUARANTEE CORPORATION (QUEDANCOR).

THE DEPUTY SPEAKER (Rep. Balindong). The Sr. Dep. Majority Leader is recognized.

REP. BANAL. Thank you, Mr. Speaker. I move that the Explanatory Note of the Bill be considered as the sponsorship speech on the measure.



REP. BANAL. Mr. Speaker, there being no Member who registered to interpellate, I move that we close the period of sponsorship and debate.



REP. BANAL. Mr. Speaker, I move that we open the period of amendments. However, there being no committee or individual amendment, I move that we close the same.



REP. BANAL. With that, Mr. Speaker, I move that we approve House Bill No. 4179 on Second Reading.


VIVA VOCE VOTING

THE DEPUTY SPEAKER (rep. Balindong).There is a motion for the approval of House Bill No. 4179 on Second Reading.

As many as are in favot, please say aye.

SEVERAL MEMBERS. Aye.

THE DEPUTY SPEAKER (Rep. Balindong). As many as are against, please say nay. (Silence)

APPROVAL OF H.B. NO. 4179ON SECOND READING

THE DEPUTY SPEAKER (Rep. Balindong). The ayes have it; the motion is approved.

House Bill No. 4179 is approved on Second Reading.The Sr. Dep. Majority Leader is recognized.



REP. BANAL. I move that we consider House Bill No. 4214, contained in Committee Report No. 166, as reported out by the Committee on Basic Education and Culture and the Committee on Appropriations.





THE SECRETARY GENERAL. House Bill No. 4214, entitled: AN ACT PROVIDING FOR THE RETENTION AND UTILIZATION OF THE INCOME DERIVED BY THE NATIONAL MUSEUM, AMENDING FOR THE PURPOSE SECTION 26 OF REPUBLIC ACT NO. 8492, OTHERWISE KNOWN AS THE NATIONAL MUSEUM ACT OF 1998.

REP. BANAL. Mr. Speaker, I move that the Explanatory Note of the Bill be considered as the sponsorship speech on the measure.



REP. BANAL. Mr. Speaker, there being no Member who registered to interpellate, I move that we terminate the period of sponsorship and debate.

THE DEPUTY SPEAKER (Rep. Balindong). There is a motion to terminate the period of sponsorship and debate. Is there any objection? (Silence) The Chair hears none; the motion is approved.


REP. BANAL. Thank you, Mr. Speaker. I move that we


24 MONDAY, MAY 12, 2014

open the period of amendments. However, there being no committee or individual amendments, I move that we close the same.



REP. BANAL. Mr. Speaker, I move that we approve House Bill No. 4214, contained in Committee Report No. 166 on Second Reading.

VIVA VOCE VOTING

THE DEPUTY SPEAKER (rep. Balindong). There is a motion for the approval of House Bill No. 4214 on Second Reading.









REP. BANAL. I move that we consider House Bill No. 4271, contained in Committee Report No. 171, as reported out by the Committee on Labor and Employment.





THE SECRETARY GENERAL. House Bill No. 4271, entitled: AN ACT REDUCING THE RETIREMENT AGE OF SURFACE MINE WORKERS FROM SIXTY (60) TO FIFTY (50) AMENDING FOR THE PURPOSE ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442,

AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES.

REP. BANAL. Thank you, Mr. Speaker. I move that the Explanatory Note of the Bill be considered as the sponsorship speech on the measure.



REP. BANAL. Mr. Speaker, there being no Member who registered to interpellate, I move that we close the period of sponsorship and debate.



REP. BANAL. Mr. Speaker, I move that we open the period of amendments. However, there being no committee or individual amendments, I move that we close the same.



REP. BANAL. Mr. Speaker, I move that we approve House Bill No. 4271 on Second Reading.

VIVA VOCE VOTING







House Bill No. 4271 is approved on Second Reading.




REP. BANAL. I move that we consider House Bill No.


MONDAY, MAY 12, 2014 25

4275, contained in Committee Report No. 172, as reported out by the Committee on Labor and Employment.





THE SECRETARY GENERAL. House Bill No. 4275 entitled: AN ACT DEFINING THE ROLE OF THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) AND THE LOCAL GOVERNMENT UNITS IN THE ESTABLISHMENT AND OPERATION OF THE PUBLIC EMPLOYMENT SERVICE OFFICE (PESO), AND THE OPERATION OF JOB PLACEMENT OFFICES BY NON-GOVERNMENT ORGANIZATIONS (NGOs),AND STATE UNIVERSITIES AND COLLEGES (SUCs), AMENDING FOR THE PURPOSE SECTIONS 3, 6, 7 AND 9 OF REPUBLIC ACT NO. 8759, OTHERWISE KNOWN AS THE “PUBLIC EMPLOYMENT SERVICE OFFICE ACT OF 1999.”

THE DEPUTY SEPAKER (Rep. Balindong). The Sr. Dep. Majority Leader is recognized.

REP. BANAL. Mr. Speaker, I move that we consider the Explanatory Note of the Bill as the sponsorship speech on the measure.


REP. BANAL. Mr. Speaker, there being no Member who registered to interpellate, I move that we close the period for sponsorship and debate.


REP. BANAL. Mr. Speaker, I move that we open the period of amendments. However, there being no committee or individual amendments, I move that we close the same.



REP. BANAL. Mr. Speaker, I move that we approve House Bill No. 4275 as contained in Committee Report No. 172 on Second Reading.

VIVA VOCE VOTING










REP. BANAL. I move that we consider House Bill No. 694, contained in Committee Report No. 183, as reported out by the Committee on Veterans Affairs and Welfare and the Committee on Appropriations.





THE SECRETARY GENERAL. House Bill No. 694 entitled: AN ACT INCREASING THE BURIAL ASSISTANCE FOR VETERANS FROM TEN THOUSAND (P10,000.00) TO TWENTY THOUSAND PESOS (P20,000.00), AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6948, AS AMENDED, OTHERWISE KNOWN AS “AN ACT STANDARDIZING AND UPGRADING THE BENEFITS FOR MILITARY VETERANS AND THERI DEPENDENTS.”


REP. BANAL. Mr. Speaker, I move that we consider the Explanatory Note of the Bill as the sponsorship speech on the measure.

THE DEPUTY SPEAKER (Rep. Balindong). Is there


26 MONDAY, MAY 12, 2014

any objection? (Silence) The Chair hears none; the motion is approved.


REP. BANAL. Mr. Speaker, there being no Member who registered to interpellate, I move that we close the period for sponsorship and debate.



REP. BANAL. Mr. Speaker, I move that we open the period of amendments.



COMMITTEE AMENDMENTS

REP. BANAL. Mr. Speaker, we would like to introduce the following committee amendments to House Bill No. 694:

1. After Section 1 of House Bill No. 694, insert a new section to read as follows: “SEC. 2. APPROPRIATIONS. – THE AMOUNT NECESSARY FOR THE INITIAL IMPLEMENTATION OF THIS ACT SHALL BE CHARGED AGAINST THE CURRENT YEAR’S APPROPRIATIONS FOR BURIAL EXPENSES OF THE PVAO. THEREAFTER, THE AMOUNT NECESSARY FOR THE CONTINUED IMPLEMENTATION SHALL BE INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT.”: and

2. The title is hereby amended to read as follows: “AN ACT STANDARDIZING AND UPGRADING THE BENEFITS FOR MILITARY VETERANS AND THEIR DEPENDENTS AND APPROPRIATING FUNDS THEREFOR.”

I move for the approval of these amendments.

REP. BANAL. Mr. Speaker, I move that we approved the committee amendments as contained in Committee Report No. 183.



The committee amendments are hereby approved.The Sr. Dep. Majority Leader is recognized.

REP. BANAL. Mr. Speaker, there being no individual amendments, I move that we close the period of committee and individual amendments.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none; the period of committee and individual amendments is closed.


REP. BANAL. Mr. Speaker, I move that we approve House Bill No. 694, as amended, on Second Reading.

VIVA VOCE VOTING

THE DEPUTY SPEAKER (Rep. Balindong).There is a motion for the approval of House Bill No. 694, as amended, on Second Reading.

As many as are in favour, please say aye.



APPROVAL OF H.B. NO. 694, AS AMENDED,ON SECOND READING


House Bill No. 694, as amended, is approved on Second Reading.




REP. BANAL. I move that we consider House Bill No. 1222, contained in Committee Report No. 184, as reported out by the Committee on Veterans Affairs and Welfare and the Committee on Appropriations.





THE SECRETARY GENERAL. House Bill No. 1222 entitled: AN ACT TO ESTABLISH AND MAINTAIN AN OFFICE OF VETERANS AFFAIRS IN THE PHILIPPINE EMBASSY IN THE UNITED STATES OF AMERICA, PRESCRIBING ITS FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES.


REP. BANAL. Mr. Speaker, I move that the Explanatory Note of the Bill be considered as the sponsorship speech on the measure.


MONDAY, MAY 12, 2014 27


REP. BANAL. Mr. Speaker, there being no Member who

registered to interpellate, I move that we close the period of sponsorship and debate.



REP. BANAL. Mr. Speaker, I move that we open the period of amendments.



COMMITTEE AMENDMENTS

REP. BANAL. Mr. Speaker, we would like to introduce the following committee amendment to House Bill No. 1222: The title is hereby amended to read as follows: “AN ACT ESTABLISHING AND MAINTAINING THE OFFICE OF VETERANS AFFAIRS IN THE PHILIPPINE EMBASSY IN THE UNITED STATES OF AMERICA, PRESCRIBING ITS FUNCTIONS, PROVIDING FUNDS THEREFOR.”

I move for the approval of this amendment.

THE DEPUTY SPEAKER (Rep. Balindong). Is there any objection? (Silence) The Chair hears none; the committee amendment is hereby approved.

REP. BANAL. Mr. Speaker, there being no individual amendments, I move that we close the period of individual and committee amendments.



REP. BANAL. Mr. Speaker, I move that we approve House Bill No. 1222 as amended, on Second Reading.

VIVA VOCE VOTING

THE DEPUTY SPEAKER (rep. Balindong).There is a motion for the approval of House Bill No. 1222, as amended, on Second Reading.

As many as are in favor, please say aye.



APPROVAL OF H.B. NO. 1222, AS AMENDED,ON SECOND READING


House Bill No. 1222, as amended, is approved on Second Reading.


CONSIDERATION OF H. RES. NO. 981 ON SECOND READING

REP. BANAL. Thank you, Mr. Speaker. I move that we consider House Resolution No. 981, contained in Committee Report No. 167, as reported out by the Committee on Youth and Sports Development.





THE SECRETARY GENERAL. House Resolution No. 981 entitled: A RESOLUTION EXPRESSING FULL SUPPORT TO THE GILAS PILIPINAS NATIONAL BASKETBALL TEAM AND URGING THE PHILIPPINE BASKETBALL ASSOCIATION (PBA), SAMAHANG BASKETBOL NG PILIPINAS (SBP) AND ALL PARTIES CONCERNED TO ENSURE THE PREPAREDNESS OF THE TEAM TO COMPETE IN THE FORTHCOMING 2014 INTERNATIONAL BASKETBALL FEDERATION (FIBA) WORLD CUP.


REP. BANAL. Mr. Speaker, I move that we adopt House Resolution No. 981.

ADOPTION OF H. RES. 981


House Resolution No. 981 is adopted. The Sr. Dep. Majority Leader is recognized.


REP. BANAL. Thank you, Mr. Speaker. I move that we


28 MONDAY, MAY 12, 2014

consider House Resolution No. 1015, contained in Committee Report No. 178, as reported out by the Committee on Youth and Sports Development.





THE SECRETARY GENERAL. House Resolution No. 1015 entitled: A RESOLUTION CONGRATULATING AND COMMENDING DENNIS “ROBOCOP” ORCOLLO FOR WINNING THE “MASTER OF THE TABLE” TITLE IN THE 16TH ANNUAL DERBY CITY CLASSIC 2014 HELD IN ELIZABETH, INDIANA, USA IN FEBRUARY 1, 2014.




House Resolution No. 1015 is adopted. The Sr. Dep. Majority Leader is recognized.


REP. BANAL. Thank you, Mr. Speaker. I move that we consider House Resolution No. 150, contained in Committee Report No. 185, as reported out by the Committee on Revision of Laws.





THE SECRETARY GENERAL. House Resolution No. 150 entitled: A RESOLUTION CALLING FOR THE CELEBRATION OF THE 18TH OF AUGUST OF EVERY YEAR AS “JESSE ROBREDO DAY.”




THE DEPUTY SPEAKER (Rep. Balindong). There is a motion to adopt House Resolution No. 150. Is there any objection? (Silence) The Chair hears none; the motion is approved.

House Resolution No. 150 is adopted.The Sr. Dep. Majority Leader is recognized.

OMNIBUS CONSIDERATION AND APPROVAL OFLOCAL BILLS ON SECOND READING

REP. BANAL. Thank you, Mr. Speaker. I now move for the omnibus considerarion and approval of the following local bills on Second Reading:

1. House Bill No. 4261, contained in Committee Report No. 168;














REP. BANAL. Mr. Speaker, I also move that we consider the respective Explanatory Notes of the Bills as the sponsorship speeches thereon.


REP. BANAL. Mr. Speaker, there being no Member who


MONDAY, MAY 12, 2014 29

wishes to interpellate on the said local bills, I move that we close the period of sponsorship and debate.



REP. BANAL. Mr. Speaker, there being no committee or individual amendments, I move that we close the period of amendments.



REP. BANAL. Mr. Speaker, I move that we approve the aforesaid local bills on Second Reading.

VIVA VOCE VOTING

THE DEPUTY SPEAKER (Rep. Balindong). As many as are in favor of the approval of the bills enumerated in the omnibus motions, please say aye.


THE DEPUTY SPEAKER (Rep. Balindong). As many as are against, please say nay.


The bills enumerated in the omnibus motion are hereby approved on Second Reading.*


REP. BANAL. Mr. Speaker, I move for the change of referral of the following measures:

House Bill No. 277 and 4154 — Ordaining a Microfinance Code of the Philippines, from the Committee on Banks and Financial Intermediaries to the Committee on Small Business and Entrepreneurship Development.

I so move. Mr. Speaker.



SUSPENSION OF SESSION

REP. BANAL. Mr. Speaker, I move that we suspend the session for a few minutes.

THE DEPUTY SPEAKER (Rep. Balindong). The session is suspended for a few minutes.

It was 6:44 p.m.

RESUMPTION OF SESSION

At. 6:44 p.m., the session was resumed.

THE DEPUTY SPEAKER (Rep. Balindong). The session is resumed.

The Deputy Majority Leader is recognized.

REP. DEFENSOR. Mr. Speaker, I move that we resume the Privilege Hour.

THE DEPUTY SPEAKER (Rep. Balindong). There is a motion to resume the Privilege Hour. Is there any objection? (Silence) The Chair hears none; the motion is approved.

REP. DEFENSOR. Mr. Speaker, I move that we again recognize the Hon. Henry S. Oaminal for the continuation of his privilege speech.

THE DEPUTY SPEAKER (Rep. Balindong). The Hon. Henry Oaminal is recognized.

What is the pleasure of the Hon. Neri J. Colmenares?

REP. COLMENARES. Mr. Speaker, thank you. May we ask the distinguished colleague if he is willing to answer a few questions?

THE DEPUTY SPEAKER (Rep. Balindong). The Hon. Oaminal may do so if he so wishes.

REP. OAMINAL. Willingly and gladly, Mr. Speaker.


REP. COLMENARES. Thank you, Mr. Speaker.I would like to congratulate the distinguished colleague

from the Second District of MIsamis Occidental for such a well-researched privilege speech. In fact, the speech got me very interested, Mr. Speaker, when our distinguished colleague began to detail why the supposed privatization of the National Grid Corporation of the Philippines is a sweetheart deal. May we just ask for clarity, Mr. Speaker, if the distinguished colleague can just sum up, reiterate the basis for his statement na sweetheart deal pala itong pag-privatize ng ating grid, ng TransCo, Mr. Speaker.

REP. OAMINAL. Mr. Speaker, the basis of this humble Representation in saying that the privatization of the TransCo is just like a sweetheart deal is that this has accorded benefits which were not even enjoyed by TransCo as a government institution before. For instance, when the transmission business was still handled by TransCo, even if it was a government institution, it was paying a corporate income tax of 35 percent. That is why in the last two years where the transmission business was handled by TransCo, it was paying P6 billion and P7 billion respectively, for the gross income tax and corporate income tax. While in the case of the NGCP now, two years after their operation when they took over from TransCo, the corporation was only paying P1 billion to less


30 MONDAY, MAY 12, 2014

than P2 billion for the succeeding two-year operation which only indicated that the government lost, more or less, for the two years, around P10 billion in terms of revenue.

REP. COLMENARES. Thank you, Mr. Speaker.Now that you mentioned it, actually nakakagulat kasi

tiningnan ko po rito sa privilege speech ninyo, ang kita po ng ating TransCo noong 2007 at 2008 kasama na iyong taxes na ibinayad sa gobyerno at iyong kanilang mga other fees para sa gobyerno, ang total po dito na tinitingnan ko ay P62 billion. Noong 2007 to 2009, P62 billion po ang napasok sa gobyerno. Pero noong ibinenta nila noong 2009, ang ibinayad sa kanila, ang ibinayad sa ating lahat is a measly sum of 900—ilan ito, nine hundred, sorry, nine hundred almost—wala pang one billion, Mr. Speaker, P987 million. Tama po ba ito?

REP. OAMINAL. That P987 million, Mr. Speaker, is in US dollars and that is the 25 percent downpayment.

REP. COLMENARES. Ah, okay, tama po. So ibig sabihin po, ang kanilang kita sa two years ay P62 billion pero noong ibinenta nila ang ating grid sa mga bumili nito ay P42 billion ang ibinayad sa kanila because that is the equivalent of $987 million dollars, Mr. Speaker—P42 billion. So, parang nabawasan pa ang income ng ating TransCo kung baga dahil sa pag-privatize na ito. And to think na ang remaining balance kung baga ng babayaran nila ay 20 years, hindi po kaya tayo lugi rito, Mr. Speaker?

REP. OAMINAL. Mr. Speaker, the total concession agreement is about US$3.9 billion and this should have been amortized every six months with an interest rate of 8.49 percent per annum. This is the issue which I am bringing now to the floor, that with the prepayment of this semi-annual amortization, because of the prepayment, it only earns close to P2 billion, so that in totality, with this prepayment deal that was entered into between the PSALM and the NGCP, the government lost, more or less, P31 billion representing the interest that the government would have earned if the prepayment was not made.

REP. COLMENARES. Pero hindi po ba nakalagay sa concession, G. Ispiker, na pwede naman i-prepay noong bumili? Sino po pala ang bumili nito? Ang bumili po nito ng ma-privatize po ito sa—pwede ninyo po bang mabanggit kasi nakalagay po dito sa consortium—ang mga miyembro po nito ay sina Henry Sy, iyong Calaca High Power Corporation of Roberto Coyuito, at iyong State Grid Corporation ng China. Tama po ba ang aking basa rito?

REP. OAMINAL. The Gentleman is right, Mr. Speaker.

REP. COLMENARES. Ibinenta po kasama ang China—alam n’yo po ba kung ilang percent ang ownership ng China dito sa binili na ito?

REP. OAMINAL. Well, because of the constitutional limitations on the ownership of the operations of public utilities, I presume that the share of China here is only 40 percent—not more than 40 percent—and the 60 percent is being owned by Filipino corporations.

REP. COLMENARES. Kahit totoo po, Mr. Speaker, na 40 percent lang ang sa China rito, hindi rin po ba nakakaappekto ito sa ating—public utility kumbaga ito e, koryente ito e. Wala po bang epekto ito sa ating national security, halimbawa po, na China ang nagmamay-ari ng 40 porsyento, at least, ng ating grid dito sa Pilipinas, Mr. Speaker?

REP. OAMINAL. Yes, Mr. Speaker, that is the danger now even if China only owns 40 percent, but as per record with TransCo, it appears that the head of the system operations for the NGCP is a full Chinese national, and that the system operations is somewhat connected with that of the National Grid of China, which under the present relationship that we have with China, there is some sort of security impact or security repercussions on this particular transaction.

REP. COLMENARES. Pwede nyo po ba ma-explain kung bakit may security implications ang transaksyon na ito?

REP. OAMINAL. Well, having entrusted to the Chinese nationals the system operations of the power transmissions, let us say, if anything happens with our relationship with China based on the present situation that we have that we are bringing our West Philippine Sea issue in an arbitration with the UNCLOS, and if ever these Chinese nationals would put off the grid, then definitely in such decisions, we will be suffering a nationwide brownout.

REP. COLMENARES. Maraming salamat po, G. Ispiker.

Napansin ko po sa Concession Agreement na nabanggit dito na bagama’t $1 billion ang pauna nilang bayad sa atin, iyong remaining noong $3.9 billion na kanilang, kung baga, bid sa atin ay babayaran in 20 years. Pero nakalagay naman po rito na pwedeng i-prepay ito. Ibig sabihin, kahit hindi na nila hintayin iyong 20 years, pwede nang bayaran, at siyempre lugi ang gobyerno dahil walang interest na babayaran. Pero nakalagay naman po iyon sa agreement na puwede silang magbayad, so long as there is no amount due to the PSALM and TransCo.

Tanong ko po, G. Ispiker, bakit? Was there an amount due to the PSALM or TransCo? Bakit magiging ilegal itong prepayment na ginawa ng ating NGCP doon po sa TransCo, Mr. Speaker?

REP. OAMINAL. The Gentleman is right, Mr. Speaker, in citing Section 607 of the Concession Agreement between the PSALM and the NGCP that they have the option to prepay any deferred payment or any portion thereof, but there is a colatilla: so long as there is no amount due to the PSALM or TransCo. But at the time of the prepayment, the NGCP owes TransCo the total amount of P2.5 billion. That is why this overdue amount of payables from the NGCP to TRansCo, then there should have been no prepayment allowed because that was a blatant violation or disregard of the provisions of Section 6.07 of the Concession Agreement.

REP. COLMENARES. So, ibig sabihin, kung may utang sana ang NGCP sa gobyerno ng P2.5 billion, hindi sila pwedeng mag-prepay ng kanilang utang naman sa gobyerno doon sa pagpa-privatize kasi ang mangyayari rito, instead

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na ipambayad nila ng utang nila sa atin na P2.5 billion, ginamit nila itong pambayad sa P2.5 billion para bayaran ang utang nila na kung saan ay nag-ga-gather ng interes. So, sa tingin po ninyo, violation ito ng agreement na pinayagan ng PSALM ang NGCP na mag-prepay ng halos $1.5 kahit hindi pa natapos iyong 20 years and at the same time kahit na may utang sila sa gobyerno. Tama po ba?

REP. OAMINAL. Mr. Speaker, that is the observation of the Commission on Audit. The COA, in its audit memorandum issued to PSALM, has noted that this prepayment bill, amounting to P2.5 billion, then the prepayment transaction blatantly infringed the Concession Agreement between the PSALM and the NGCP.

REP. COLMENARES. Salamat G. Ispiker.Ano po itong napapansin ko na ang NGCP pala ay

allowed din sila na hindi magbayad ng income tax, tama po ba iyan?

REP. OAMINAL. The Gentleman is right, Mr. Speaker, in the sense that the franchise law of the NGCP had only provided that they will pay a franchise of three percent in lieu of all taxes so that this three percent, computed on the payment that they paid last 2009, two years thereafter that they had taken over the transmission operations from TransCo, they were only paying $1 billion and $1.9 billion, respectively, in the two years of operations. Compare that to TransCo when the transmission business was still handled by them, it was paying P6 billion and P7 billion in the last two years of operations. So, there is really a big disparity because of the provision in the franchise of the NGCP that it will only pay a franchise tax of three percent in lieu of all taxes.

REP. COLMENARES. Pero bakit po hinayaan ng ating gobyerno, ng ating mga negotiators na hindi magbayad itong NGCP ng income tax sa ating bansa, Mr. Speaker?

REP. OAMINAL. Well, that is the provision of the law that is being approved by this Congress.

REP. COLMENARES. Hindi po ba unfair yan sa atin na itong ibang mga negosyante ay nagbabayad ng income tax, ito ngayon ang NGCP, ni hindi sila sisingilin ng income tax kahit na napakalaki ng tubo nila? Hindi po ba unfair iyon, Mr. Speaker?

REP. OAMINAL. That is why it is the view of this humble Representation that we revisit RA No. 9511 which is the law that provides the franchise to the NGCP where that particular provision has been properly provided for.

REP. COLMENARES. Thank you, Mr. Speaker.Dagdag pong tanong, ano po ba naman itong ibinigay

naman sa NGCP na puwede nilang i-pass through sa atin na mga consumers iyong mga iba pa na mga gastusin nila? Tama po ba ito na kahit na mga iba pang gastusin nila like rehabilitation ng mga damaged na mga transmission lines nila ay hindi pa sila ang magbabayad nito katulad ng iba pang negosyante, na negosyante ka, kapag nasira ang iyong sari-sari store o grocery store sa bagyo ay talaga nga naming iyong rehabilitation noon, iyong pagpapatayo ulit noon ay

gastusin mo iyon, parte iyan ng negosyo mo. Pero ito po palang NGCP, ang ibig ninyo po bang sabihin, ipinapasa nila ang kanilang rehabilitation cost or reconstruction cost sa atin na mga consumers? Tama po ba iyan?

REP. OAMINAL. You are right, Mr. Speaker. That is the benefit that the NGCP is enjoying, to pass through charges to its captive consumers under the Concession Agreement.

REP. COLMENARES. Magkano po ba ang ipinasa nila sa mga consumers? Halimbawa itong nakalipas lang na bagyo na nagdaan, itong typhoon Yolanda, mga magkano po ba ang kanilang ipinasa sa consumer na pagre-reconstruct nila ng kanilang mga transmission lines, Mr. Speaker?

REP. OAMINAL. On the premise of the Concession Agreement, considering that they are allowed to pass through charges to the consumers any rehabilitation or repair of any damage of the transmission lines, whatever will be the actual cost in the repair or rehabilitation of any damage, that will be the cost that they could pass through their captive consumers.

REP. COLMENARES. Ito po bang pag-pass through nila sa mga consumers, dito lang po ba sa Luzon o kasama iyong Visayas po dito, Mr. Speaker?

REP. OAMINAL. The Concession Agreement covers the operation of the NGCP throughout the country, Mr. Speaker.

REP. COLMENARES. So, pati taga-Mindanao kasama rito na nagpasan ng mga gastusin ng NGCP dahil sa nakalipas na bagyo, Mr. Speaker. Tama po?

REP. OAMINAL. Insofar as this specific repair or rehabilitation of that particular area is concerned, it is not so clear in my research, Mr. Speaker, if the “pass-through” charges shall be borne by all consumers throughout the country, presumably because the actual cost only covers that area where the rehabilitation of damaged transmission lines is being conducted.

REP. COLMENARES. Thank you, Mr. Speaker, but in the end it does not matter whether the entire country will pay P5.7 billion or just the Visayas will pay P5.7 billion. Tinamaan na po ng kalamidad ang mga taga-Visayas tapos papatungan pa pala ng additional na transmission cost itong kanilang binabayaran. So, iyon po iyong medyo hindi maganda sa arrangement na ito na parang pabor na pabor doon sa NGCP.

Iyong isang tanong ko po ay ganito: Ano po ba ang ibig sabihin na ito palang concessionaire na nanalo rito, sila po ang mag-a-acquire ng lahat ng cash and receivables at lahat ng mga benepisyo ng prepayments ng TransCo? Ano po ba ang ibig sabihin nito? Can you please explain to this august Body this acquisition of cash and receivables by the concessionaire, Mr. Speaker?

REP. OAMINAL. Yes, Mr. Speaker, as provided for in the Concession Agreement between the NGCP and the

32 MONDAY, MAY 12, 2014

PSALM, particularly Section 4.06 thereof, if it provides that on the commencement date, the concessionaire shall acquire all of TransCo’s cash, receivables and benefits of all prepayments made by TransCo and shall assume the liability to pay and discharge all of TransCo’s current liabilities.

At the time of the takeover, the TransCo’s assets are at 10.7 billion, with a total liability of P7.4 billion only. So, there is a difference of P3.34 billion, which benefits the NGCP by virtue of that particular provision.

REP. COLMENARES. Thank you, Mr. Speaker. Medyo nakakagalit kapag may ganitong mga kontrata ang ating gobyerno na parang ang pera ay napakadali lang sa taong-bayan. Alam po ba ninyo kung sino ang mga negotiators on the side of the government na nagne-negotiate po ng ganitong klaseng sweetheart deal, na para sa akin ay mayroong mga implications of criminal responsibilities and criminal accountabilities on the part of the negotiators, Mr. Speaker?

REP. OAMINAL. Mr. Speaker, considering that at the time of the passage or approval of this Concession Agreement I was not yet a Member of this House, and I was just a local official in my district, so, at that time, I was not yet fully apprised or I do not have any detailed knowledge as to who are the members of the negotiating panel representing the Philippine government on this Concession Agreement.

REP. COLMENARES. Maraming salamat, Mr. Speaker. What about the PSALM, bakit nila tinanggap ang prepayment kung ang PSALM pala eh, legally speaking should not have accepted the prepayment of the NGCP, Mr. Speaker, because under the Concession Agreement ay hindi pwedeng i-prepay ang utang hangga’t mayroon kang amount due doon sa gobyerno? Tinanggap po ba ng PSALM ito at ano ang rason nila kung bakit nila tinanggap despite the provision in the Concession Agreement, Mr. Speaker?

REP. OAMINAL. Well, as per record, the PSALM is required by the Commission on Audit to explain such particular transaction although during the Committee on Energy hearing, when I asked Mr. Ledesma, the president of the PSALM, whether or not he made a request on the prepayment as manifested by the president of the NGCP in a press conference, Mr. Ledesma responded that he did not make any request and he just cited the provisions of the Concession Agreement. However, he assured me that in any case that we will conduct an investigation on this matter, he is very willing to support the investigation in order that there will be a clear and transparent result on this particular transaction.

REP. COLMENARES. Thank you, Mr. Speaker. Despite the fact na hindi sinabi ng PSALM president na hindi naman siya nag-request ng prepayment mula sa NGCP, the fact is, tinanggap naman ng gobyerno ang prepayment ng NGCP. Tama po ba iyan, Mr. Speaker?

REP. OAMINAL. You are right, Mr. Speaker. That is why the COA in its audit observations ...

REP. COLMENARES. Okay.

REP. OAMINAL. ... had cited that there could have been no reason for PSALM to accept it because one of the purposes of the proceeds of the privatization is to pay the PSALM’s obligations. In 2013, when this prepayment deal was made, the PSALM had about P47 billion in cash and its maturing obligation was only P32 billion. Therefor, there is no cause for alarm for them to accept the prepayment because there is no need for the utilization of the funds. As a matter of fact, because the funds are just there, they are being placed in a treasury bond or high-yield deposit which only earns interest from three percent and one percent, respectively, which is way, way below the interest that the government would have earned if that money was not accepted as prepayment.

REP. COLMENARES. Thank you, Mr. Speaker. So, dahil pinayagan ng PSALM na ibayad itong prepayment, mga magkano po ba ang nawala sa atin na dapat sana ay ibayad sa atin ng NGCP?

REP. OAMINAL. Based on the computation of the TransCo and on the record of the Commission on Audit, there appears more or less P31 billion that the government lost as a consequence of accepting that prepayment made by the NGCP to the PSALM.

REP. COLMENARES. That is really a huge amount of money, Mr. Speaker. However, I also noticed, Mr. Speaker, that you mentioned in your privilege speech that what the Philippines needs is not privatization but a stronger state intervention on public utilities to protect the interest of the consumers and productive sectors of the economy. Parang sinasabi po ninyo dito na ang solusyon ay hindi privatization kung hindi mas malakas pa nga, in fact, na interbensiyon ng Estado o ng gobyerno para ma-ensure na napo-proteksiyunan ang ating mga consumers. Maaari mo po bang ipaliwanag, Mr. Speaker, kung ano po ang ibig ninyong sabihin dito?

REP. OAMINAL. Well, you are right, Mr. Speaker, because at the time of the privatization, the transmission business which was handled by TransCo was a profitable business. As mentioned earlier, TransCo was earning close to P23 to P24 billion in the last two years when they were handling the transmission operations. So that, if the purpose is to improve power services at a lower cost, I think the privatization of the transmission operations should not have been the answer because it was making good and it was doing well under the care of a government corporation which at that time was the National Transmission Corporation.

REP. COLMENARES. Maraming salamat, Mr. Speaker. Iyong nabanggit ninyong privatization na mali na solusyon, ay sang-ayon po iyon sa opinion siyempre ng nagtatanong po, ano, at actually, marami-rami na rin pong mga Kongresista at mga kapwa natin kasama dito sa House ang nagsasabi na medyo ang puno’t dulo talaga nito ay ang EPIRA. Mukhang ito talaga ang nagsasabi na i-privatize lahat at dapat ay hindi na mag-intervene ang gobyerno at may pangako pa ang EPIRA na bababa ang presyo ng koryente. Ito po ba ay kapareho rin ba ng paniniwala ninyo na dapat bang tingnan muli itong EPIRA, at ano pa ang kanyang naidulot sa ating mga mamamayan despite its promise of lower electricity cost, Mr. Speaker?

MONDAY, MAY 12, 2014 33

REP. OAMINAL. You are right, Mr. Speaker, that is why it is the desire of this humble Representation in bringing this to this august Chamber for us to revisit the EPIRA and also the franchise law and Concession Agreement of TransCo and the PSALM because of the factual presentations that I have made which, more or less, caused disadvantageous transaction on the part of our government.

REP. COLMENARES. Maraming salamat, Mr. Speaker. Natuwa kami na marami-rami na rin sa mga kapwa nating Kongresista sa ngayon ang naniniwala na dapat na nga talagang balikan itong EPIRA at magpanday tayo ng bagong batas na magre-regulate sa ating koryente.

Before I go, Mr. Speaker, and this is my last point na lang, nabanggit ninyo, ano po ba ang puwede nating gawin? Siyempre, tama po na ang pagtingin sa EPIRA, isa po iyang puwedeng magawa talaga ng Kongresong ito, ‘no. Hindi naman natin hahayaang ang EPIRA ay patuloy na sisira sa buhay at kabuhayan ng ating mga mamamayan. So, kami ay natuwa sa ganoong pahayag, and last na lang siguro, other than that siyempre bilang abogado, sa pagtingin ko, actually maaari ring i-challenge ang validity ng kontrata. Kung sweetheart deal siya at may mga irregularities siya, puwede rin talaga ring ma-challenge kung matapang ang PSALM, kung matapang ang gobyerno, kung matapang ang iba pang mga ahensiya ng gobyerno na kung baga, ay nawalan ng benepisyo dahil sa pagbenta ng ating grid sa NGCP, maaari talagang ipa- terminate din sa korte ang kontratang ito on the basis that it is grossly disadvantageous to the Filipino people and that, therefore, it should be terminated. But in that case, Mr. Speaker, dito tayo sa Kongreso, ang isang magagawa natin ay ang pagrebisa at pagtingin at pagpanday ng bagong batas na papalit sa EPIRA.

Maraming salamat, Mr. Speaker, and we would like to congratulate our Representative from the Second District of Misamis Occidental, the Hon. Henry S. Oaminal.

Thank you, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Balindong). Thank you.


REP. DEFENSOR. Mr. Speaker, I move that we recognize the Hon. Jonathan A. Dela Cruz for his interpellation.

THE DEPUTY SPEAKER (Rep. Balindong). The Hon. Jonathan A. Dela Cruz is recognized to interpellate the Honorable Oaminal.

Please proceed.

REP. DELA CRUZ. Thank you very much, Mr. Speaker.

Will the distinguished colleague from the Second District of Misamis Occidental yield to a few questions?

REP. OAMINAL. Gladly, Mr. Speaker.


As mentioned earlier and noted by our Sr. Dep. Majority Leader, we congratulate the distinguished Member from the Second District of Misamis Occidental for this exposé on the

operations of the National Grid Corporation and, of course, the operations also of the National Transmission Corporation, as well as the PSALM. These are the entities, Mr. Speaker, that have made it very, very hard for us to recover from our lingering economic problems, and these are the entities also that have made the EPIRA such a bad example of law.

I just wanted to find out from the distinguished Gentleman if he is aware as to who is now supervising the operations, as well as the rate setting, if ever, of the National Grid Corporation?

REP. OAMINAL. Well, under the Concession Agreement, it is now in the hands of the NGCP, the full operations of the transmission line of the electricity industry of our country.

REP. DELA CRUZ. Sino po ang nagse-set kung halimbawa, mayroon pong fees ito, at kung nanghihingi po ang NGCP ng kanilang, for example, pagtataas ng fees, pagtataas po ng charges nila o kaya pagkakaroon po nila ng “pass-through” na mga arrangements? Sino po ang nag-a-approve noon? Ito po ba ay inaaprubahan ng isang government agency?

REP. OAMINAL. Yes, Mr. Speaker, it is under the jurisdiction of the Energy Regulatory Commission or ERC.

REP. DELA CRUZ. Thank you very much, Mr. Speaker. Natanong na po ba ng ating kaibigan, the distinguished Representative from the Second District of Misamis Occidental, what the ERC has done as far as these things are concerned? Has it ever given notice to the NGCP, and of course, the PSALM as well as TransCo, that this particular arrangement mentioned by the distinguished Representative of us losing virtually P31 billion from the regular prepayment transaction, has the ERC ever come to any conclusion what it is going to do regarding this? Is it going to have this refunded? Is it going to have it dismissed? What? Has there been any advice from the ERC?

REP. OAMINAL. Well, Mr. Speaker, the exclusive jurisdiction of the ERC over the NGCP operations is insofar as the rate is concerned, but insofar as this issue of prepayment deal is concerned, this does not belong to the jurisdiction of the ERC but rather, this is the transaction between the PSALM on the part of the Philippine government and the NGCP being the consignee in that Concession Agreement.

REP. DELA CRUZ. So, it is just a transaction between the PSALM, which in this case is supposed to be the one handling all the assets and liabilities of the government as far as the power industry is concerned, and the NGCP, which is supposed to be its concessionaire.

REP. OAMINAL. You are right, Mr. Speaker.

REP. DELA CRUZ. What about the TransCo, Mr. Speaker? What is the role of the TransCo in all of these transactions?

REP. OAMINAL. Well, TransCo, after the privatization, was limited as to the ownership of the transmission lines, but as to its maintenance operations, it is now with the full

34 MONDAY, MAY 12, 2014

rights and authority with that of the NGCP, and Transco being under the umbrella of PSALM, it is the PSALM that more or less supervises the NGCP insofar as the provisions of the Concession Agreement are concerned.

REP. DELA CRUZ. So, my understanding, Mr. Speaker, is that this Concession Agreement pertains only to the operation and maintenance of the entire electricity grid, and the ownership of the assets remains with the TransCo and the PSALM.

REP. OAMINAL. Tha is what I am made to understand, Mr. Speaker.

REP. DELA CRUZ. In other words, parang ano po ito, kumbaga, na-outsource natin iyong operation and maintenance, and then, we just let this outsourced company undertake all of these activities, and then we can have a deal with it at the same time. So, our outsource company, which in this case is the NGCP, can then pre-empt any of our efforts at any given time because it has the power under the Concession Agreement to operate and maintain the electricity grid.

REP. OAMINAL. You are right, Mr. Speaker. That is why, it was one of the gists of my privilege speech, that this particular transmission business should not have been privatized because when it was being operated by the TransCo, it was doing well and as I was mentioning earlier, it was making a profit from P24 billion to P25 billion a year.

REP. DELA CRUZ. Para nga pong ito ay binigyan natin ang isang bangko, kumbaga cash machine ang private sector, itong NGCP sa pamamagitan daw nitong Concession Agreement at pinabayaan na rin natin sila na kumita nang kumita to the disadvantage of the government.

REP. OAMINAL. Precisely, Mr. Speaker, because even in the payment of taxes, the TransCo, which is a government corporation, paid bigger taxes compared to that of the NGCP nowadays.

REP. DELA CRUZ. Ganyan din po siguro ang mangyayari kung saka-sakaling iyan din ang gagawin at ipa-privatize ang PAGCOR.

Kasi iyan po ang iniisip ng iba nating mga kaibigan sa private sector. They are salivating at the possibility of privatizing PAGCOR, and for us to just be content with getting a nominal fee from all these private concessionaires.

REP. OAMINAL. Well, I am not fully aware of that particular operation of the other agencies of the government. I am, more or less, focused on this privatization of TransCo and this prepayment deal which I humbly submit has caused disadvantage on the part of our government.

REP. DELA CRUZ. Is there any effort, Mr. Speaker, on the part of the distinguished Representative to file any remedial arrangement, for example, go to court aside from having this heard by the committees in the House, for us to be able to alleviate the situation right now. As it is, the PSALM

has already accepted the payment, the COA has objected but nonetheless, they proceeded with accepting the payment, and now we are in a position where we are going to lose, as you said, Mr. Speaker, P31 billion.

REP. OAMINAL. Well, the Executive Branch, through the Commission on Audit, Mr. Speaker, is doing its role also towards these transactions. At the time of my verficiations with the Commission on Audit, the PSALM was required to make an explanation or justification over these transactions. And particularly only after submitting that justification, if the Commission on Audit warrants it or whatever may be the appropriate action, then that is left within the sound discretion of the Commission on Audit.

REP. DELA CRUZ. We cannot ...

REP. OAMINAL. But as far as this humble Representation is concerned, Mr. Speaker, I believe having a strong faith in our institution which is the House of Representatives, I am bringing this to this august Body in order for our concerned committees to look into so that appropriate action can be made.

REP. DELA CRUZ. Is there a possibility, Mr. Speaker, in your view, that the COA will disallow this particular transaction and therefore that particular prepayment arrangement can be disregarded?

REP. OAMINAL. Well, that was the essence of the audit observations, Mr. Speaker. Under our existing COA procedures, after the audit observations, the concerned agency is required to make justifications. After submitting the justification, if the Commission on Audit seems not to concede or is not convinced with the justifications, then the normal consequence is for them to disallow the transactions. After the disallowance of the transactions, there is a period given under the law for which the concerned agency has to make an appeal to the Commission on Audit, so that proper disposition of the case can be properly handled.


In any event, will the distinguished Gentleman from the Second District of Misamis Occidental be prepared to possibly file a case in the event that this particular transaction is disallowed by the COA? At the same time, will the distinguished Gentleman also join us in asking for, not only a review but a full revision, amendment of the Concession Agreement, as well as the arrangements made between the NGCP and the PSALM in its entirety? Mr. Speaker, these are, I think at this point in time, the only remedies that we can avail of in order for us to be not overly burdened by all these transactional arrangements between the PSALM and the NGCP.

REP. OAMINAL. You are right, Mr. Speaker, but as far as this humble Representation is concerned, I would still be limited on the proper action or remedies that this august Body would like to take into under the given situations. I have my strong faith in this institution that something can be done insofar as this transaction is concerned.

MONDAY, MAY 12, 2014 35

Published by the Publication and Editorial Service, Plenary Affairs BureauThe Congressional Record can be accessed through the Downloads Center of the official website

of the House of Representatives at www.congress.gov.phFLL/08042014/1840

REP. DELA CRUZ. Well, we hope so, Mr. Speaker. That is the reason I said we congratulate the distinguished Representative of the Second District of Misamis Occidental for bringing this to us because this means that we will now have more informations available to us and will be able to take a second look maybe even a third look, at the privatization efforts of the government.

As we have always mentioned, there are certain services, certain sectors, certain activities which the government should be involved in and not pass it to the private sector. These are the commanding heights of the economy, Mr. Speaker, and we congratulate our colleague, the distinguished Representative from the Second District of Misamis Occidental for bringing us into this pass. It is very fortunate that we have this research undertaken and we hope that we will be able to proceed and take a second look at this; not only take a second look but probably bring all of the perpetrators of this grossly disadvantageous arrangement to justice.

Thank you very much, my dear colleague, and thank you very much, Mr. Speaker, for giving me this opportunity.

REP. OAMINAL. Thank you very much, Mr. Speaker.

THE DEPUTY SPEAKER (Rep. Balindong). Thank you very much.


REP. DEFENSOR. Mr. Speaker, I move that we refer

the speech of the Honorable Oaminal, together with the interpellations, to the appropriate committee.



REP. DEFENSOR. Mr. Speaker, I move that we terminate the Privilege Hour.

THE DEPUTY SPEAKER (Rep. Balindong). There is a motion to terminate the Privilege Hour. Is there any objection? (Silence) The Chair hears none; the motion is approved.


ADJOURNMENT OF SESSION

REP. DEFENSOR. Mr. Speaker, I move that we adjourn the session until tomorrow at four o’clock in the afternoon.


The session is adjourned until tomorrow at four o’clock in the afternoon.

It was 7:26 p.m.

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