ACCELERATING the momentum of his comprehensive reforms including the anti-corruption campaign of his administration, President Ferdinand Marcos Jr. delivered his fifth State of the Nation Address (Sona) on Monday with several bombshell announcements including the looming filing of charges against his cousin, former House Speaker, Leyte Representative Martin G. Romualdez, as well as massive tax relief reforms and junking of the ‘systems loss’ in electricity bills.
Marcos flipped the order of the issues he discussed in his previous Sona by starting with updates in his anti-corruption campaign, which gained massive public support and attention, while putting economic and foreign affairs goals and accomplishments at the latter part of his speech.
Just minutes after starting his speech, which ran for one hour and 25 minutes, the chief executive already announced that the Ombudsman will soon be going after Romualdez.
Romualdez is facing plunder charges for his alleged involvement in acquiring about P56 billion of ill-gotten wealth from 2022 to 2025.
‘We have reached the point where the Ombudsman said we are nearing the filing of case after case against the former speaker,’ Marcos said in Filipino.
‘While this pains me, we must do what is right. I am not the President of our family. I am not the President of my friend. I am the President of the Philippines,’ he added.
He then proceeded to discuss updates in the campaign of his administration against flood control project anomalies, which yielded P25 billion seized frozen assets of those involved in such illegal activities.
‘All of this [amount will be] recovered from the corrupt individuals involved and will be immediately returned to the public treasury,’ Marcos said.
Proper legal process
Efforts to reform the Department of Public Works and Highways (DPWH) are now under way to prevent similar irregularities, according to the President.
In a statement, Romualdez said he did not seek any assistance from Marcos, when it comes to the allegations against him, which he said he is ready to answer through the ‘proper legal process.’
The lawmaker maintained he was not engaged in any wrongdoing while he led the House of Representatives.
‘I agree that we should do the right thing. The right thing to do is to follow the process and let the evidence speak for itself,’ he said in Filipino.
‘And I’m ready to prove it,’ he added.
Systems loss
Marcos also highlighted the achievements of his administration when it comes to assisting the sectors, which were affected by the Middle East crisis through the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) initiatives of the government under Executive Order No. 110 implementing a State of National Energy Emergency.
He reported that 12 million people already benefited from the P20 per kilo rice program of the government.
The government has allocated over P60 billion to sustain its UPLIFT initiatives until the end of the year.
The government, Marcos said, also implemented measures to help reduce the electricity bills, which rose due to the Middle East conflict, by ordering power companies to refund the excess charges from their customers, and allowing the payment of bills in tranches for some.
Aa a long-term solution to make power rates cheaper, the President called on Congress to remove system loss from the electricity bills by amending Republic Act No. 9136 or the Electric Power Industry Reform Act (Epira).
System loss is the power lost when electricity travels from power plants to homes. See related story on page A11, ‘Scrapping systems loss charges from bills to impact DUs, ECs.’
‘It is passed on to the consumer and loaded onto the bill with value-added tax added on top. It is not the consumer’s fault why there was a system loss. So it is not right that they should be the ones to pay for it,’ Marcos said.
‘Therefore, we, the people, request-no, we demand for the immediate amendment of the Epira, and to prohibit charging system loss against consumers including the value-added tax thereon,’ he added.
The President also called on Congress to pass the ‘Sariling Kuryente Act.’ which aims to make installation of rooftop solar panels and batteries to store its power easier.
He said they continue to study nuclear energy and the construction of hydrogen power plants to help expand the country’s power production.
The ratification of the Association of Southeast Asian Nations (Asean) Framework Agreement on Petroleum Security for the joint stockpiling of energy asset will also help the country’s energy security amid global supply chain disruptions, according to Marcos.
Protecting the middle class
To protect the middle class from the lingering effects of the Middle East conflict, Marcos also urged Congress to pass a bill on tax relief measures.
He said the proposed piece of legislation will expand the exemption for income tax to include those, which will not exceed P350,000 annually; exempting small business from the minimum corporate tax; and giving amnesty for those with unpaid tax liabilities.
‘Therefore, as a special measure to protect them [middle income] and allow them to derive greater benefit from their hard-earned income, I call upon Congress to pass legislation that will provide some relief regarding our tax obligations,’ Marcos said.
Disaster mitigation
The proposed legislative reforms of the President also includes updating the National Building Code to make the country’s buildings and structures more resilient to disasters such as strong earthquakes and typhoons.
‘All private infrastructure should likewise meet the same high standards of quality and durability. Every building in our country must be prepared and capable of remaining stable and standing firm against any threat of disaster or calamity,’ Marcos said.
Updating the 25-year-old Ecological Solid Waste Management Act, he said, will help mitigate flooding.
Under the proposed bill waste management practices will be modernized through waste-to-energy and waste treatment technology.
‘As we recalibrate our solid waste management systems, we can draw inspiration from the solid waste management practices being championed by the MMDA [Metropolitan Manila Development Authority] here in Metro Manila, such as waste recovery, processing, upcycling,’ Marcos said.
High-tech goals
The President also discussed the highlights of economic achievements, including expanding trade abroad by raising the country’s free trade agreements to 23, as well as the Green Lanes to fast-track the processing of businesses which want to operate in the country.
‘Over the past three years, more than 6 trillion pesos in investments have been facilitated through our Green Lanes. These are estimated to create over 400,000 jobs for our fellow Filipinos,’ he said.
He said the government is eyeing to attract more investments in emerging industries such as pharmaceuticals, advanced manufacturing, luxury goods, technology, and logistics.
These initiatives will be augmented by the Asean Digital Economy Framework, which harmonize digital rules and enable cross-border digital transactions.
The US-led Pax Silica Initiative in New Clark City in Tarlac, which will have Artificial Intelligence firms, will not only bring high-quality jobs, but also accelerate the country’s industrial competitiveness.
Such advanced industries will be crucial as the Marcos administration eyes creating the country’s first spaceport in Cagayan, which he said is ‘geographically and economically primed to serve as our gateway to space and host the country’s first spaceport.’
‘A sounding rocket launch test is slated for next year. Yes, we are going to launch a rocket into space. This we will do in partnership with a South Korean aerospace company,’ Marcos said.