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Rappler takes SEC case to the Court of Appeals

(UPDATED) Rappler’s petition for review cites procedural and substantive processes which were violated, and points out how Rappler’s PDRs were singled out

Published 7:21 PM, January 29, 2018

Updated 12:25 AM, January 30, 2018

PETITION FOR REVIEW. Rappler's counsel from the firm ACCRALAW files the petition for review before the Court of Appeals on January 29, 2018. Photo by Lian Buan/Rappler

PETITION FOR REVIEW. Rappler’s counsel from the firm ACCRALAW files the petition for review before the Court of Appeals on January 29, 2018. Photo by Lian Buan/Rappler

MANILA, Philippines (UPDATED) – Rappler Inc and Rappler Holdings Corporation filed on Monday, January 29, a petition for review questioning the revocation of their certificates of incorporation before the Court of Appeals (CA).

Rappler’s petition was prepared by legal counsel Francis Lim from the firm Angara Abello Concepcion Regala & Cruz Law Offices or ACCRALAW. Lim is a veteran corporate lawyer and the former president of the Philippine Stock Exchange (PSE).

“We have our own legal position on these issues and the Securities and Exchange Commission (SEC) will most likely take the opposite view. Fortunately, there is jurisprudence that can guide the Court of Appeals in deciding the case. We fervently hope that the case will ultimately be decided for the broader interest of the country,” Lim said.

The 68-page petition argues that contrary to the decision of the SEC, the agreement between Rappler and foreign investor Omidyar Network (ON) does not constitute control.

The petition also bares similar agreements between network giants ABS-CBN and GMA News with its foreign investors, which the SEC has not faulted, and which it did not investigate.

PDR and control

The SEC revoked the certificates of incorporation of both Rappler Inc and Rappler Holdings Corporation (RHC) due to a provision in the Philippine Depositary Receipt (PDR) agreement of RHC with Omidyar.

A PDR is a financial instrument that corporations resort to, to secure foreign investments without violating the nationality restrictions prescribed by the Constitution.

The SEC said that it was unconstitutional for Rappler to commit to Omidyar that it should engage in prior discussion or secure 2/3 of the votes of PDR holders before Rappler can amend its articles of incorporation or by-laws, or take action that would prejudice the rights of ON as a PDR holder.

The questioned provision, or Clause 12.2.2 reads as such:

The Issuer undertakes to cause the Company from the date hereof and while the ON PDRs are outstanding: not to, without prior good faith discussions with ON PDR Holders and without the approval of PDR Holders holding at least two-thirds (2/3s) of all issued and outstanding PDRs, alter, modify or otherwise change the Company’s Articles of Incorporation or By-laws or take any other action where such alteration, modification, change or action will prejudice the rights in relation to the ON PDRs.”

The SEC said the provision was equivalent to ceding control to a foreign entity, which means Rappler violated the 100% Filipino control rule.

The SEC’s Implementing Rules and Regulations (IRR) define control as something exercised only by the Board of Directors who shall vote, similar to the definition of control under the Corporation Code.

“Clause 12.2.2 of the Omidyar PDR does not grant control over Rappler to Omidyar because it does not make it a stockholder of Rappler or give it the right to vote the Underlying Shares,” the petition said.

Negative covenant

Rappler’s lawyers explained that because Omidyar is only a minority investor (another PDR holder North Base Media has more), the questioned provision existed “as a mechanism to help ensure that the rights of a minority investor would be protected vis-à-vis other PDR Holders.”

The petition argued that the clause is an example of a negative covenant. A negative covenant is a clause in agreements where parties make a promise not to do something.

Rappler’s lawyers said that a close reading of the provision would show that the agreement only kicks in when the amendment is “prejudicial” to Omidyar. It means, the petition said, that Omidyar does not dictate when to amend the by-laws, only that it has to be consulted and it has to agree if the amendment puts them at a disadvantage.

The petition stressed that this has not yet even happened. “Thus, Rappler and RHC cannot be punished in any way for a violation that never occurred,” said the petition.

Rappler’s lawyers cited Article 1158 of the Civil Code in saying that “if an act punishable by law has not been performed, then, the corresponding penalty under the law cannot be applied to one accused of violating it.”

PDRs of GMA and ABS-CBN

The petition also provides the Court of Appeals examples of PDR undertakings of network giants GMA and ABS-CBN, and said they were similar to Rappler’s PDRs.

See below:

PDRs. Rappler's petition for review before the Court of Appeals says that network giants ABS-CBN and GMA have more 'express' agreements with holders of their Philippine Depositary Receipts (PDR) compared to Rappler. Screenshot from Rappler's petition for review

PDRs. Rappler’s petition for review before the Court of Appeals says that network giants ABS-CBN and GMA have more ‘express’ agreements with holders of their Philippine Depositary Receipts (PDR) compared to Rappler. Screenshot from Rappler’s petition for review

Rappler’s lawyers made the argument that Rappler’s PDR issued to Omidyar requires good faith discussion and a 2/3 vote, while PDRs of the network giants “absolutely obligated the issuers” not to amend their by-laws in a way that will prejudice the rights of the PDR holders.

There should be no reason for the SEC En Banc to find fault in Clause 12.2.2 of the OMIDYAR PDR, which does not even absolutely prohibit the amendment of the Articles of Incorporation and By-Laws of Rappler,” the petition said.

SEC Chairperson Teresita Herbosa said there’s no need to review the PDRs of the network giants, after their decision on Rappler, saying they were different cases.

In the petition, counsels explained that Rappler did not need to register their PDRs with the SEC because the Securities Regulation Code (SRC) did not require registration for sales of securities to less than 20 persons. (Rappler sold only 3 PDRs.)

Nevertheless, RHC notified the SEC of the existence of the PDRs it had issued not only through SEC Form 10-1 but also through the submission of its Consolidated Financial Statements for 2015 and 2016, which the SEC En Banc (adopting the findings of the Special Panel in toto) took note of,” the petition said.

It added: “Clearly, there was no intention whatsoever to conceal the Omidyar PDR from the SEC.”

No due process

Rappler also claimed that due process was not followed, citing the SEC’s own rules. In the graphic below, the lawyers explained how the SEC cut short the process for Rappler, depriving it of the rightful opportunities to defend itself.

This is the standard procedure as per SEC rules, according to the petition:

STANDARD PROCEDURE. Standard Procedure for an administrative action under SEC rules, according to Rappler's petition for review.

STANDARD PROCEDURE. Standard Procedure for an administrative action under SEC rules, according to Rappler’s petition for review.

And this was the procedure applied to Rappler, also according to the petition:

SHORTCUT? The procedure applied to Rappler in the investigation of the SEC, according to Rappler's petition for review.

SHORTCUT? The procedure applied to Rappler in the investigation of the SEC, according to Rappler’s petition for review.

Moreover, the petition also said that the SEC had prejudged Rappler from the time it issued a show cause order against it.

A special panel was created in July 2017 to conduct an “in depth-examination of Rappler” and after a month, on August 2, Rappler was served a show cause order to explain why it should not be held liable for violation of the Constitution.

“The Special Panel did not have the power, authority or jurisdiction to adjudge Rappler and/or RHC administratively liable and to impose administrative sanctions….(but the show cause order) had already made a finding that RAPPLER and RHC were liable under the various laws cited in that order,” the petition said.

It added: “Rappler and RHC, being respondents in this case, were already found to have violated the law and the Special Panel shifted the burden of proof on them to explain why they are not liable. This is in contravention of the established rule the burden of proof is on the complainant.”

The petition also pointed out that on December 11, 2017, Omidyar waived its rights under the questioned provision. But the SEC did not consider it because only a photocopy was submitted, and therefore not counted as notarized.

The fact that only a photocopy of the Waiver was submitted should not have been made an issue by the SEC En Banc for the following reasons: (a) the SEC En Banc did not take issue with other documents submitted by Rappler and RHC which were only photocopies; (b) the original of the Waiver is available, exists and could have been produced by Rappler and RHC at any time if it was requested by the SEC En Banc or the Special Panel to do so,” the petition said.

The petition also cited the PLDT case, wherein the Supreme Court allowed the corporation to “cure” the deficiencies of their structure. The petition maintained that the revocation of the certificates of incorporation was a “harsh penalty” that would have a disastrous impact on businesses, and would discourage foreign investors.

It will not only substantially bring down the foreign investment market in the Philippines but will also create a domino negative impact on the Philippine economy effectively slowing its progress and worse, stifling the Philippine economy,” the petition said.

And even if the PDR clause were assumed to be unconstitutional, the petition said that there is no law that “grants the SEC the power to revoke the certificate of incorporation of a company for the reason that a clause found in a contract it had entered into is void for being unconstitutional.”

“To argue otherwise would expose countless corporations to possible revocation of their certificates of incorporation if any of their contracts happen to contain a void provision,” the petition said. (READ: FAQs: Rappler SEC case)

Press freedom

Rappler also pointed out that it cannot be held accountable for a law applicable to mass media when it should not be classified as only mass media.

The petition pointed out that both Section 11 (1) of Article XVI of the Constitution and Presidential Decree No. 1018 said that “mass media” only pertains to print and broadcast media. Rappler is fully internet-based. (READ: EXPLAINER: How SEC’s Rappler decision is a test case for press freedom)

Nevertheless, the petition said that the “serious procedural and substantive irregularities in the decision” lead to no other conclusion that “its real purpose is to silence Rappler and muzzle free expression.”

It notes the sequence of events of Solicitor General Jose Calida initiating the probe, and the accusations against Rappler by President Rodrigo Duterte in no less than his State of the Nation Address, as a pattern that would prove that its “closure” on corporate grounds has always been about the government’s intent to stop Rappler from publishing.

After the SEC decision, Rappler is now the subject of two separate criminal investigations by the National Bureau of Investigation (NBI): the first for possible violation of the Anti-Dummy Law and “other laws”, and the second for cyber libel over an article published before the Cybercrime Law was enacted.

“Rappler is being made to pay the ultimate price for exercising the freedom of the press,” said the petition. – Rappler.com

PNP Chief Dela Rosa: ‘Bloodless drug war impossible’

MANILA, Philippines — There is no guarantee that the relaunched “tokhang” will not result in bloodshed, Philippine National Police (PNP) chief Director Ronald dela Rosa said yesterday.

At Malacañang, presidential spokesman Harry Roque expressed hope the police “have learned from their experience” and would try their best to make sure community anti-drug operations or Oplan Tokhang “would be less bloody.”

The program made a comeback with an assurance from Dela Rosa that it would be free of violence if offenders agree to go peacefully with police.

But he could not promise a “foolproof anti-drug campaign that would be bloodless,” Dela Rosa stressed, explaining that police were “not dealing with people who are in their proper state of mind.”

“On the way of addressing this problem, we also have to protect ourselves, preserve our own life and the life of the stranger,” he said. “Now, tell me who among the police commanders can do it, and I will be willing to give up my post.

“That’s impossible,” he said.

Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1

“We are just giving you the assurance we will try our best to make it less bloody,” he added. Tokhang operations, he said, would only be conducted between 8 a.m. and 5 p.m.

But Sen. Panfilo Lacson questioned the PNP’s move to limit “tokhang” to office hours and weekdays.

“I don’t understand why drug pushers will have a weekend holiday,” he said.

Lacson said as long as the provisions of the Revised Penal Code and the rules of engagement on arrests, especially warrantless arrests, are followed, “the law enforcement function of the PNP should be continuous.”

In Cebuano, “Tokhang” is a combination of the words “knock” and “plead.”

Besides the visits, police have also run so-called “buy-bust” or sting operations and raided suspected drug dens and laboratories.

In many of these operations, say rights activists, suspects did not get the chance to surrender, but were executed in cold blood. Police insist suspects died because they violently resisted arrest.

Nearly 4,000 drug suspects have died in gun battles with police since June 2016, when President Duterte came to power. The government lost 85 police and soldiers in the drug war, police data show.

More than 1.2 million people had also turned themselves in after the home visits.

Duterte stopped police anti-drug operations twice due to questions over the conduct of the operations.

The President, who has promised to continue his war on illegal drugs “until the last drug pusher is out of the streets,” has also vowed to protect policemen who shoot drug suspects in self defense.

But he has clarified that the protection does not cover law enforcers who commit crimes and abusive practices.

Roque welcomed the PNP’s statement reaffirming police commitment to the rule of law. He said the President has no instructions regarding the re-launched campaign, noting that the PNP has already issued new guidelines for law enforcers involved in drug raids.

Interior and local government department officer-in-charge Eduardo Año has said that the new Tokhang guidelines emphasize accountability of police personnel providing support to the Philippine Drug Enforcement Agency, which has been tasked to lead the campaign.

While the PNP promised a less bloody Tokhang, at least four suspected drug personalities in Quezon City, Pasig and Cavite were killed days before the relaunch of the anti-drug crackdown.

Last year, Duterte removed the PNP from the anti-drug war following the deaths of teenage drug suspects in Caloocan.

He restored the PNP’s role in the campaign after a few months because of the supposed “notable resurgence in illegal drug activities and crimes.”

More than 19,000 “homicide” cases have been recorded since the start of the drug war in 2016, of which only about 2,200 are drug-related, according to PNP.

The PNP has conducted more than 64,000 anti-drug operations, with more than 102,000 arrests.

To ensure transparency, Dela Rosa invited human rights advocates, priests and the media to join the re-launched tokhang.

The police officers involved would also undergo a vetting process to weed out rogue officers, said Dela Rosa, adding that past abuses had involved the police seeking bribes to drop the names of people from the lists they compiled.

“We are certainly hoping that it will be less controversial, because controversy will only blur the real intention, which is really the fight against dangerous drugs,” Roque told reporters.

National Capital Region Police Office chief Director Oscar Albayalde also extended the same invitation to the Commission on hUman Rights (CHR).

“We are inviting the CRH to join all our Oplan Tokhang operations to erase once and for all accusations of EJK (extrajudicial killings) and other illegal activities by our Tokhangers,” said Albayalde in an interview.

Albayalde led the simultaneous re-launching of Oplan Tokhang in Metro Manila as he stressed that Tokhangers strictly passed a vetting process and background investigation.

The NCRPO chief said every tokhang operation would involve at least four policemen and village officials.

The PNP’s Directorate for Intelligence (DI) would pinpoint houses to be subjected to tokhang.

The Tokhangers would be in full uniform and unarmed, but would be accompanied by armed units depending on the security situation in the area of operation.

According to Albayalde, the Tokhangers would be different from the Station’s Drug Enforcement Unit (SDEU) which would separately conduct anti-drug operations in Metro Manila.

Tokhangers, based on rules, should not force subjects to come out of their houses.

“Those who turn themselves in or surrender would be brought to the barangay hall or police station where they would undergo documentation. They would be evaluated and first timers would be recommended for rehabilitation,” he said.

“When their subjects refuse to open their houses, the visiting Tokhangers would conduct a case buildup against them for the purposes of police operation later,” he added.

Dismissed policemen

A total of 352 policemen have been dismissed from the service for various offenses since Dela Rosa’s assumption as PNP chief 18 months ago.

“Since I assumed as chief PNP, I have already dismissed 352 policemen for various offenses, 167 for drugs or drug-related, 155 others for kidnapping, murder, extortion, various offenses,” he told reporters in a press briefing yesterday.

The ranks of the dismissed policemen ranged from police officer 1 (PO1) to superintendent.

He said 329 more are facing administrative and criminal charges and might also be dismissed.

Quoting a report from the Directorate for Personnel and Records Management (DPRM), Dela Rosa said 146 of the 167 policemen dismissed for drug related reasons were found to be drug users.

As part of the internal cleansing in the police force, Dela Rosa reassigned 200 errant Metro Manila-based policemen to Mindanao.

The DPRM records also showed 21 other policemen arrested for alleged involvement in illegal drugs, 72 dismissed for being absent without leave (AWOL), 57 for offenses like immorality, estafa and dishonesty; 22 for murder and 15 for robbery extortion.

Records also showed that nine police officers were dismissed for homicide, illegal arrest, detention or “incriminatory machination,” and parricide – offenses the PNP consider human rights violations.

Eight other policemen were dismissed for charges of kidnapping; one for graft and malversation and one for rape, DPRM records showed.

Dela Rosa revealed the dismissal proceedings against a police senior superintendent remain pending before the Office of the President. He refused to name the officer.

The Office of the President handles dismissal proceedings against officers with ranks of senior superintendent and higher.

“The city director of Iloilo City allowed drugs to proliferate, and Odicta to lord it over the drug trade. There’s a case against the city director,” he said, apparently referring to alleged Iloilo drug lord Melvin Odicta Sr. and his wife Meriam, who were shot dead at the Caticlan Jetty Port in Aklan on Aug. 29, 2016.

Dela Rosa did not disclose details about the police officer.

He also revealed a policewoman is facing charges after she was caught in a casino in Cebu. “Despite our warning, some remain hardheaded,” he said.

Also caught gambling in a casino was a town councilor in Cebu. – Non Alquitran, Marc Jayson Cayabyab, Romina Cabrera

Gov’t to make companies more accountable for their plastic waste

Published

By Madelaine B. Miraflor

Big multinational firms were among the companies in the country that Senator Cynthia Villar mentioned when she discussed about solid waste and how these firms have been contributing to the worsening garbage problem in the country.

MB File–Senator Cynthia Villar

Villar, who chairs the Senate committees on Environment and Natural Resources, said the government should now act to make companies more accountable for their plastic waste.

In a clean-up drive it did in Manila Bay in September last year, the group particularly recovered 54,200 pieces of plastic waste from Manila Bay.

Now, Villar particularly wants to amend the Republic Act (RA) 9003  or the Ecological Solid Waste Management Act particularly “for the manufacturers and producers of plastic products to be more responsible for the waste they are producing”.

“I’m pushing to amend RA 9003. It has to be amended and reviewed after 17 years and modernize some of its provisions,”  Villar said.

“The country’s problem on plastic waste is alarming. We are the third biggest producer of plastic and it endangers our food security because if fishes accidentally ate them, they will die,” she added.

Villar said she’s looking to amend the law in a way that there should be “extended producers responsibility”. Through that, if a company produced a product, then it’s also its responsibility to retrieve the waste.

“We’re pushing to make manufacturers more accountable for the life cycle of their plastic products. As of now, there’s still a lot of non-compliance among them,” the senator further said.

Environment Secretary Roy A. Cimatu promised to make the full implementation of RA 9003 as one of his top priorities soon after he assumed the DENR post in May last year.

He said that poor waste management is not only a source of pollution but it also negatively impacts the environment and public health.

“The issue of solid waste management has hounded us for many decades now. It is time that we address this once and for all, and ensure that we walk the talk,” Cimatu said.

“When we live in unsanitary conditions, we breathe polluted air and dirty water comes out of our faucets. These violate our basic right to a standard of living adequate for the health and well-being,” he added.

Cimatu was on his third month in office when the DENR ordered the permanent closure of the Payatas sanitary landfill in Quezon City due to serious environmental violations and susceptibility to trash slide.

In June last year, Cimatu put to task the municipal government of Malay in Aklan for the garbage problem on Boracay Island which at the time was a major public and environmental concern in one of the country’s top tourist destinations.

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DOJ orders filing of murder charges vs cops in Kian slay

DOJ clears the cops’ station commander Chief Inspector Amor Cerillo ‘because there was the absence of conspiracy’

Published 3:58 PM, January 29, 2018

Updated 4:03 PM, January 29, 2018

FACING CHARGES. Caloocan policemen PO1 Jeremias Pereda, PO1 Jerwin Cruz, and PO3 Arnel Oares attend the Senate hearing on Kian delos Santos' case on August 24, 2017.€‹ File photo by Angie de Silva/Rappler

FACING CHARGES. Caloocan policemen PO1 Jeremias Pereda, PO1 Jerwin Cruz, and PO3 Arnel Oares attend the Senate hearing on Kian delos Santos’ case on August 24, 2017.€‹ File photo by Angie de Silva/Rappler

MANILA, Philippines – The Department of Justice (DOJ) ordered the filing of murder charges against the cops of Caloocan City who gunned down 17-year-old Kian delos Santos during a legitimate anti-drug operation in August 2017.

The 3-man prosecution panel indicted for murder Police Officer 3 Arnel Oares, Police Officer 1 Jerwin Cruz, Police Officer 1 Jeremias Pereda, and a civilian named Renato Perez Loveras alias “Nonong,” the DOJ said on Monday, January 29.

“They’re being charged for murder because treachery was found to be present because the sudden and unexpected attack on the hapless victim Kian was clear and convincing. Also, they consciously and deliberately adopted this means or method to ensure the success of their plan. Note that the examination reveals that Kian was shot mercilessly to death while in a kneeling position,” said Acting Prosecutor General Jorge Catalan in a press conference on Monday.

Delos Santos’ killing tempered President Rodrigo Duterte’s messaging on the war on drugs after CCTV footage belied police claims that the supposed drug personality resisted arrest.

The panel also ordered the filing of charges of planting of drugs and firearms as evidence against the same 3 cops.

Eyewitness testimony

The panel gave weight to the testimony of an eyewitness who said she did not see the cops find anything on Kian when the 17-year-old was bodily searched.

“Indeed if Kian was keeping sachets of shabu with him, the same would have certainly fallen anywhere along the stretch of about 100 to 120 meters from the front of the drugstore where he was initially taken up to the dark dead end area near the Tullahan river where he was brought,” said the 43-page resolution by Senior Assistant State Prosecutor Tofel Austria, Assistant State Prosecutor Amenda Leaño-Garcia, and Associate Prosecution Attorney Moises Acayan.

On the gun supposedly used by Delos Santos to “fight back” that prompted the cops to neutralize him, the panel said: “It is important to note that when Kian was brought to the place where he was shot, any illegal effects he had supposedly possessed should have already been confiscated by the respondents. This renders farfetched the respondents’ claim that Kian still had in his possession a handgun after having been gunned down by the respondents.”

Pareda and Cruz also face charges of violation of domicile for raiding Delos Santos’ home without a search warrant.

“What makes their act more irregular or illegal is the fact that said policemen threatened and pointed a gun at JR and Sherry Anne, Kian’s siblings, while they were conducting the search,” said the resolution.

Complaint vs commander dismissed

On the other hand, the complaint against their station commander Chief Inspector Amor Cerillo was dismissed.

Also dismissed was the complaint against 12 other Caloocan cops included in the one-time, big-time (OTBT) raid conducted by the city police on the night that Delos Santos died.

“The panel found lack of probable cause because there was the absence of conspiracy, because in conspiracy, it must be clear and convincing that they indeed participate in the act. Here, their participation is questionable,” Catalan said.

Torture charges against Oares, Pereda, Cruz, and Loveras were also dismissed. The panel said that the cops’ acts of “slapping, boxing and punching Kian, although causing pain, do not qualify as a violation as contemplated under the Anti-Torture Act.”

Earlier, the DOJ panel also charged Caloocan cops in the killing of teenager Carl Angelo Arnaiz. The cops have been ordered arrested by a Caloocan court.

The deaths of Arnaiz and Delos Santos sparked public outrage, raising the doubts on the police’s usual narrative of killing drug suspects who supposedly fight back. – Rappler.com

Senate moves for Faeldon’s transfer to Pasay City jail due to contempt citation

Published

By Vanne Elaine Terrazola

The Senate has moved for the transfer of Office of Civil Defense (OCD) deputy administrator Nicanor Faeldon to the Pasay City Jail due to his continued contempt citation.

Former BOC Commisioner Nicanor Faeldon shows a sign asking permission to go to the bathroom after having heated arguments with Sen. Gordon during the Senate hearing on the 6.4 billion worth of Shabu shipment from China at Senate on Monday. Photo by Jansen Romero

Former BOC commisioner Nicanor Faeldon shows a sign asking permission to go to the bathroom after having a heated argument with Sen. Gordon during the Senate hearing on the 6.4-B shabu shipment from China today. (Photo by Jansen Romero)

Senator Richard Gordon, Blue Ribbon committee chairman, said the Senate has agreed to submit Faeldon under the custody of the Pasay City Jail, following the resumption of the probe on alleged corruption at the Bureau of Customs (BOC) today.

“I just want to make it formal that the Senate unanimously declared that Mr. Faeldon, formerly of Customs, would remain to be charged with contempt and he will now be remanded to the custody of the Pasay City Jail upon order of commitment by the Senarte President,’ Gordon said in his manifestation during today’s afternoon session.

Faeldon may be transferred to the city jail anytime within the day, information reaching Senate reporters said.

Faeldon has been detained in the Senate compound since September last year after he was cited for contempt for repeatedly refusing to attend the Senate inquiry.

Meanwhile, Gordon said Faeldon should “see a psychiatrist” for his demeanor in the Senate.

He made the proposal as he slammed Faeldon for being “arrogant” and deliberately evading the Senate blue ribbon committee’s probe into the alleged ‘tara’ system at the Bureau of Customs (BOC), which resulted in the release of the P6.4-billion illegal drugs from China.

The Blue Ribbon panel chair said Faeldon is being “selective in his respect, citing the latter’s reason for attending the hearing. At the start of the hearing, Faeldon, lashing out at Gordon, said he showed up because is “now a government employee, not because I expect that you will lead this committee to find out the truth.”

Gordon, concluding Faeldon’s attitude after the hearing, said, “He lives in his own world. I think he should see a psychiatrist, and I really mean that.”

With such an attitude despite the controversy he had figured in, the senator said he “agrees” that President Duterte may have “made a mistake” in appointing Faeldon to the OCD.

“I don’t think the President has any business appointing this guy. How many times should we forgive those who plot a coup against the government…those erring officials who escape when they get caught,” he said.

Gordon said he “strongly suggests” that the President appoint someone more competitive especially that Faeldon faces possibility of longer detention.

The senator lamented the Department of Justice’s dismissal of the case filed against Faeldon and other BOC officials linked to the smuggling of 604 kilos of ‘’shabu’’ (crystal meth) seized in May, while the Senate has yet to conclude its investigation on the issue.

He said this may have boosted the confidence of Faeldon to “disrespect” the Senate.

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House OKs bill making marriage annulment easier


The House of Representatives has approved on third and final reading the measure that would do away with the lengthy and costly judicial process of marriage annulment.

House Bill No. 6779, authored by Deputy Speaker Gwendolyn Garcia and Leyte 1st Dist. Rep. Yedda Marie Kittilstvedt-Romualdez, was passed with 203 votes on Monday afternoon.

The said measure would provide for church annulment decrees to have the same effect as annulment and dissolution rulings by the courts, making civil proceedings unnecessary for religious marriages.

It would also provide that the custody and support for children, and the liquidation, partition and distribution properties be agreed on by the spouses and embodied in a public document.

Church annulment decrees would have to be recorded in the appropriate civil registries along with the spouses’ agreement on child custody and the properties.

The former spouses would be allowed to remarry after complying with the recording requirement as well as the requirements of the Family Code of the Philippines.

The bill would apply to marriages duly and legally solemnized by a priest, minister, rabbi, or presiding elder of any church or religious sect in the country.

Currently, the State only recognizes the civil effect of divorce under Sharia, or Islamic, law.

Romualdez cited Pope Francis’ call for a “briefer annulment process that involves the local bishop, and requires only a single judgment, dropping the need for an automatic appeal to a higher tribunal” in proposing the civil recognition of church annulment decrees. /atm

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Economic Charter Change will lead to further socio-economic decline

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Lifting of foreign ownership restrictions through the Duterte administration’s Charter change (Cha-cha) will further stunt the Philippine economy. This will allow foreigners to further encroach on the country’s various industries. Government will also give up its responsibility to provide the public accessible and affordable goods and services, leaving Filipinos at the mercy of corporations.

2017 Yearend Birdtalk: Dutertenomics and Dictatorship, Thwarting Democracy

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Download the 2017 Yearend Birdtalk briefing paper here

The year 2017 will be remembered as the year when the first major signs of distress for the Duterte administration showed themselves. The signs of economic troubles and the fundamentally anti-poor direction of economic policies became even clearer. The political agenda of centralized power and extended rule through charter change also became clear, notwithstanding the misdirection of federalism dangled as a cure-all for the country’s far-ranging economic and political ills. These set the stage for greater unrest, as the Duterte administration shifts to high gear in undermining nascent Philippine democracy in 2018 and beyond.