Grossly unjust

A top official of the Metropolitan Waterworks and Sewerage System (MWSS) has admitted that making customers pay for the income taxes of Maynilad Water Services, Inc. and Manila Water Company is “grossly unjust”.

Acting regulatory office chief Emmanuel Caparas said in an ANC television interview, “The view of the regulatory office is that with respect to the income tax of the concessionaires, this is not a valid expense that should be passed on to consumers.”

But the practice has been allowed since 1997. Why did MWSS allow it? There have been several tariff increases since 1997. The practice of passing on the income tax paid by Maynilad and Manila Water was therefore known and approved by the MWSS Board.

The MWSS Board should now convene and issue an order to stop the grossly unfair collection immediately. As in the Supreme Court decision in the case of Meralco, all collections should be refunded.

Sen. Ralph Recto demanded a refund. He also said that the petition for a rate increase should be denied. He is filing a resolution to investigate the matter.

The two concessionaires also collected advance fees for projects they still have yet to build. They were awarded a 15-year extension of the concession agreement without bidding until 2022. They are now again requesting a 15-year extension to 2037.

One ticklish point: Sec. Rogelio Singson, who is chairman of the MWSS Board used to be president of Maynilad. He should inhibit himself.

Malacañang should step in and designate a prober to investigate the matter.

Disturbing figures

A report was released Thursday by the Ombudsman’s Finance and Management Information Office, showed that local government units (LGUs) topped the list of officials with cases filed against them in the Ombudsman.

A total of 2,669 were filed against them in 2012. A total of 3,852 cases were filed against LGU officers in 2011.

With bigger Internal Revenue Allotment given to LGUs, corrupt contractors have shifted their efforts to cornering LGU contracts. It is no longer uncommon for LGUs to have contracts worth P100 million or more. Construction of municipal buildings and public markets can cost as much as P500 million. Some LGUs have budgets of P8-12 billion.

There’s no “tuwid na daan” in many local govenment offices.

Policemen are in second place with 1,415 cases filed against them as opposed to 1,128 in 2011.

Among those in the top ten are AFP, DepEd, BIR, CHED, DENR, DAR, DOJ, Bureau of Customs, MWSS, BFP and DPWH.

This is strong proof that corruption is still a major problem.

Laggard

The World Investment Report for 2013 released by UNCTAD showed that the Philippines received only $2.79 billion in Foreign Direct Investments (FDIs) compared to Singapore’s $57 billion, Indonesia’s $19.8 billion, Malaysia’s $10 billion, and Thailand’s $8.6 billion. Even Vietnam outpaced the Philippines with $8.3 billion.

The Aquino administration should listen to the European Chamber of Commerce of the Philippines (ECCP) and American Chamber of Commerce of the Philippines (AmCham) who have complained against flip-flopping government economic policies.

Foreign executives have also complained against the difficulty and red tape in getting government licenses and project approvals.

The serious peace and order problem, highlighted by the kidnapping of foreigners causing issuance of travel advisories against travel to the Philippines, is also a disincentive.

A Business Mirror story reports that government underspending is limiting growth.

Secretaries Purisima, Domingo, and Abad should take note.

Golden heart

Senator-elect Cynthia Villar once again showed her generous heart when she gave Michelle, Annaliza, and Angel, the 3 abused women from Saudi Arabia cash donations and groceries to start a business.

Sen. Manny Villar has long been known to help OFWs including spending his money to bring home over a hundred of them by buying their tickets.

We hope other rich businessmen like Henry Sy and Lucio Tan will also give donations to bring home the OFWs languishing in OWWA shelters in the Middle East.

Pagcor can also make substantial donations for the purpose.

Crime all over

Tribal leader Fausto Baquiran of Dau, San Fernando, Bukidnon was gunned down at a beach resort in Cagayan De Oro.

Richard Laborte, a gold buyer was ambushed in Barangay Union, Lingig, Surigao Del Sur.

Three persons were killed in a shooting in Sto. Tomas, Pangasinan.

Dongliang Wang, 33, a Chinese national was ambushed by 2 men riding-in-tandem at M.H. Del Pilar, Malate, Manila.

A soldier was killed and 11 wounded in separate clashes with the NPA in Victoria, Northern Samar and Lake Wood, Zamboanga Del Sur.

A school bus driver was wounded in a shooting in Quezon City.

A PNP trainee was killed, 6 wounded, and 24 still missing in an ambush by the NPA at Tadjan, Mountain Province.

Solaire expansion

Solaire Casino of Enrique “Ricky” Razon is doing well. It attracts 6,000 Filipino patrons weekly. All the gaming tables are full on Fridays and Saturdays.

People also go there to eat at the food court. Prices are reasonable and offers varied fare.

Solaire announced plans to add 300 more gaming tables and 300 more hotel rooms.

There will be 3 more luxury casinos and hotels under construction. It should help take care of the increase in tourist arrivals.

One thing good, the casinos have given employment to thousands.

Pilot error

The Civil Aviation Authority of the Philippines (CAAP) has finished its investigation into the Cebu Pacific accident at the Davao airport.

CAAP found that pilot error was the cause of the accident because the pilot decided to land his plane in spite of zero visibility conditions.

The two pilots were suspended but Cebu Pacific was not penalized.

The CAAP should install Instrument Landing System (ILS) in all airports.

Tidbits: Congratulations to Mayor Joseph Estrada, Vice Mayor Isko Moreno, and 38 councilors of Manila who will take their oath of office tomorrow at Manila City Hall.

Happy Birthday to former Senator Helena Benitez on her 99th birth anniversary.

Congratulations to newly inducted Congressman Jonathan Dela Cruz of ABAKADA, Lito Atienza of Buhay Party-list, Eulogio Magsaysay of AVE, Sherwin Tugna of CIBAC, and Francisco Asedillo and Gary Alejano of MAGDALO.