Category: Business Mirror

LOWERING the value-added tax (VAT) rate to 10 percent would trigger a chain of economic and fiscal consequences, according to a top official from the Department of Finance (DOF).

Speaking at the recent Philippine Tax Academy’s (PTA) convention, Finance Undersecretary Karlo Fermin S. Adriano said that reducing the VAT rate to 10 percent from the current 12 percent will reduce revenues to about P330 billion annually, equivalent to around 1 percent of the country’s gross domestic product (GDP).

This would widen the fiscal deficit from the 2025 target of 5.5 percent to about 6.5 percent, reversing fiscal consolidation efforts.

‘So, definitely, we will not be able to do fiscal consolidation because our fiscal deficit last year was only 5.7 percent,’ Adriano said.

‘And, if we do not do fiscal consolidation, if we cannot show that we are not capable of fiscal consolidation, what will happen? Interest payments will also increase,’ the DOF official added.

Because of this, Adriano said the country’s credit rating could be downgraded, which would then push up borrowing costs and increase debt servicing.

‘All of our debts will increase and that’s a cycle of more debt,’ Adriano said.

If the government is really keen on lowering the VAT rate, the other option, Adriano said, is to decrease government expenditures of around P300 billion a year. However, this means government programs will also be lessened.

‘Definitely, there are some positives, but there are also some negatives,’ Adriano noted.

The House Committee on Ways and Means is currently studying the proposal to reduce the VAT rate from 12 percent to 10 percent to ease inflationary pressures and give Filipino households much-needed relief.

Batangas 1st District Rep. Leandro Leviste filed House Bill 4302, or the proposed VAT Reduction Act of 2025, to help households save an estimated P7,000 annually.

‘This bill is about giving ordinary Filipinos a break. The VAT is regressive, hitting the poor and middle class the hardest. Lowering it makes our tax system more progressive,’ Leviste said.

However, Adriano said the country’s VAT system is not regressive, based on a World Bank study.

Adriano said many VAT exemptions already exist, particularly for food, which accounts for around 50 percent of the poorest of poor households’ spending.

‘That’s why it’s not regressive because we have so many exemptions,’ Adriano noted.

If the government were to actually decrease the VAT rate, Adriano said higher-income households would mostly benefit since they consume more goods and services subject to VAT.

Data from the Bureau of Internal Revenue and Bureau of Customs show VAT collections have increased nearly eightfold-from P156.67 billion in 2005, when the rate was raised to 12 percent under the Expanded VAT Law, to P1.20 trillion in 2024.

The Philippines currently imposes the highest VAT rate in Southeast Asia. In comparison, Vietnam and Cambodia charge 10 percent, Indonesia 11 percent, Singapore 9 percent (GST), and Thailand 7 percent. Malaysia, Laos, and Myanmar impose between 5 and 7 percent.

THE national government’s outstanding debt slightly dipped to P17.468 trillion as of the end of August, with the debt stock seen to increase in the coming months due to more borrowings.

Latest data from the Bureau of the Treasury (BTr) showed the outstanding debt posted a marginal drop of 0.5 percent or P95.07 billion from P17.563 trillion from end-July.

The Treasury explained this was due to the full repayment of local bonds worth P526.34 billion and a stronger peso, which reduced the value of the country’s external debt.

According to John Paolo Rivera, senior research fellow at state-run think tank Philippine Institute for Development Studies, the decline in outstanding is due to scheduled debt repayments, which are normal and expected in managing liabilities.

‘However, this does not signal a downward trend. [Year-on-year], the debt stock is still significantly higher indicating continued borrowing to finance the budget deficit and support expenditures,’ Rivera told BusinessMirror.

The outstanding debt rose by 12.3 percent from P15.550 trillion during the same period a year ago.

Of the total debt stock, 69.19 percent was borrowed locally, while 30.81 percent came from foreign sources.

The Treasury said this is a ‘generally more favorable debt position,’ since domestic debts are less vulnerable to shifts in foreign exchange movements.

‘[D]omestic borrowing is largely owed to Filipinos themselves, providing a safe and secure investment vehicle for wealth growth while also ensuring that the money circulates back into the local economy,’ the Treasury added.

Broken down, domestic debt as of end-August amounted to P12.087 trillion, up by 12 percent from P10.791 trillion in the same period a year ago.

Compared to the previous month’s level, domestic debt inched down by 0.2 percent or P21.39 billion from P12.108 trillion.

Meanwhile, external debt as of end-August increased by 13.1 percent, reaching P5.381 trillion from P4.758 trillion a year ago.

However, it declined by 1.4 percent or P73.68 billion from P5.455 trillion as of end-July.

Reinielle Matt Erece, economist at Oikonomia Advisory and Research, Inc., told BusinessMirror that the outstanding debt will increase towards the end of the year as the government continues to tap the domestic market for funds.

In the fourth quarter of the year, the Treasury plans to borrow P437 billion through the sale of government securities.

‘The strong demand for Philippine government securities and the issuance of these debt papers can further increase the country’s outstanding debt,’ Erece said.

‘We hope to see these funds put into good use, in that case the increase in debt is justified,’ he added.

Meanwhile, Rivera said that in the coming months, the government could frontload its borrowings, ramp up infrastructure spending and manage fiscal needs amidst inflation and global uncertainty.

‘The overall trend remains upward, even with temporary month-on-month dips,’ Rivera noted.

‘The Bureau reaffirmed its commitment to prudent debt management and responsible borrowing, ensuring that financing activities remain aligned with the country’s high and inclusive growth agenda, while safeguarding the welfare of future generations of Filipinos,’ the Treasury said.

By yearend, the outstanding debt is projected to reach P17.359 trillion, with a debt-to-GDP ratio of 61.3 percent.

The outstanding debt is seen to hit the P19-trillion mark, increasing to P19.057 trillion by end-2026.

THE House of Representatives on Tuesday pushed for the inclusion of eight additional reform bills in the administration’s priority legislative agenda.

In his first Legislative-Executive Development Advisory Council (Ledac) meeting, Speaker Faustino ‘Bojie’ Dy III said the House agenda for the 20th Congress is anchored on economic growth, stronger social protection, and governance reforms, with a focus on ensuring affordable food, creating sustainable jobs, expanding digital connectivity, and improving public services for Filipinos.

The meeting, held in Malacañang, was attended by House leaders, including Majority Leader Sandro Marcos.

Dy affirmed the chamber’s commitment to work closely with President Ferdinand R. Marcos Jr., Senate President Vicente ‘Tito’ Sotto III, and other government leaders to fast-track the passage of vital measures.

‘We meet today in a spirit of collaborative governance to align our legislative agenda with the Administration’s Philippine Development Plan and its 8-point Socioeconomic Agenda,’ Dy said.

According to Dy, 32 of the 33 measures identified by the executive branch have already been filed in the House, which he said ‘sets a positive tone for our productive collaboration with all branches of government.’

During the meeting, Dy presented eight new measures for possible inclusion in the Ledac priority list, among them a Disaster Risk Financing and Insurance Framework to ensure swift and transparent calamity response and a bill to strengthen the Bases Conversion and Development Authority (BCDA) by extending its corporate life and opening select lands for development.

The House is also pushing a Presidential Merit Scholarship Program to reward outstanding graduates from low- and middle-income families and a bill disqualifying relatives of officials up to the fourth degree from government contracts to strengthen integrity in public service.

To safeguard democracy, the chamber seeks to regulate digital campaigning through a fair use of social media, AI, and internet technology in elections. It also proposes to modernize the Bureau of Immigration by professionalizing its ranks, adding visa categories, and upgrading border security.

The proposed Rice Industry and Consumer Empowerment (RICE) Act, on the other hand, aims to stabilize prices and empower the National Food Authority, while the Magna Carta for Barangays will institutionalize long-overdue benefits and ensure resources for local officials and communities.

‘With the President’s leadership and the collective will of this Council, we are confident that we can achieve these legislative goals,’ said Dy.

‘The House of Representatives is responding to the call of the people by crafting laws that directly improve their lives,’ he added.

THE International Container Terminal Services Inc. Elite Junior Finals blasts off Wednesday at The Country Club featuring the best junior golfers from Luzon (North) and Visayas-Mindanao (South) in a Ryder Cup-style showdown.

The finals mirror the recently concluded Team Europe vs Team USA duel and the format includes Four-Ball (Best Ball) on Day 1, Foursomes (Alternate Shot) on Day 2 and Singles matches on the final day with 48 of the country’s top juniors competing.

Team North co-captain Ryan Tambalque laid down a simple but clear plan for Day 1’s Four-Ball format where the boys’ 7-10 division opens play from the first tee, followed by the 11-14 and the 15-18 divisions.

The girls’ teams start simultaneously on the 10th tee and the three-day event is open to the public.

‘Keep the ball in the fairway and greens in regulation,’ said Tambalque, giving concise marching orders to his 24-player squad that emerged from a grueling seven-leg qualifying series organized by Pilipinas Golf Tournaments Inc.

Team South skipper Alfred Gaccion exuded quiet confidence as he acknowledged the depth of Team North.

‘The opposing team is equally equipped, so we’re focusing on a balanced fielding of players,’ said Gaccion, who singled out the girls’ 15-18 division as a potential game-changer. ‘Fortunately, we have strong representatives in every age division.’

‘The 15-18 girls will definitely be on top,’ he added, referring to his powerhouse lineup of Tashanah Balangauan, Crista Miñoza, Precious Zaragosa and Mikela Guillermo.

Team North’s counterpart in the girls’ 15-18 division are Rafa Anciano, Levonne Talion, Tiffany Bernardino and Chloe Rada.

The complete rosters:

Team North-Zoji Edoc, Zach Guico, Asher Abad and Halo Pangilinan (boys’ 7-10); Ronee Dungca, Mavis Espedido, Winter Serapio and Tyra Garingalao (girls’ 7-10); Vito Sarines, Zianbeau Edoc, Ryuji Suzuki and Jacob Casuga (boys’ 11-14); twins Lisa and Mona Sarines, Kendra Garingalao and Alexie Gabi (girls’ 11-14); Patrick Tambalque, Zachary Villaroman, Jose Carlos Taruc and Kristoffer Nadales (boys’ 15-18); and Rafa Anciano, Levonne Talion, Tiffany Bernardino and Chloe Rada (girls’ 15-18).

Team South-Ethan Lago, Lucas Revilleza, Kvan Alburo and James Rolida (boys’ 7-10); Denise Mendoza, Soleil Molde, Claren Quiño and Francesca Geroy (girls’ 7-10); Ralph Batican, Ken Guillermo, Jared Saban and Marcus Dueñas (boys’ 11-14); Brittany Tamayo, Kimberly Baroquillo, Zuri Bagaloyos and Rafella Batican (girls’ 11-14); Alexis Nailga, along with Luciano Copok, Mhark Fernando III and Eric Jeon (boys’ 15-18); and Tashanah Balangauan, Crista Miñoza, Precious Zaragosa and Mikela Guillermo (girls’ 15-18).

THE tournament is young but already, three schools are showing signs of dominance in Season 88 of the University Athletic Association of the Philippines (UAAP) men’s basketball championship.

Surprisingly, Ateneo is on top with an unbeaten 3-0 win-loss slate going into the fourth day of first round eliminations.

I can only think of Kymani Ladi as the significant power behind Ateneo’s resurgence.

At 6-foot-7, Ladi can shoot threes with the ease of a gazelle about to soar. The 23-year-old is from Vallejo, California, whose Filipino father is of Puerto Rican descent.

‘He is also a smart defender,’ Ateneo coach Tab Baldwin said of Ladi in a recent interview with Spin.ph columnist Homer D. Sayson. ‘He plays offensively, with perimeter skills. He is a smart defender.’

But while Ladi may emerge as Ateneo’s savior and prove to be the key to the Blue Eagles’ redemption mission, I have to concede that University of Santo Tomas is also armed this time with a reinforcement looking every bit as a complete package.

I refer to Collins Arkowe, the massively built Nigerian, whose 6-foot-10 frame is packed with 260 pounds of pulverizing power.

In just two games, Arkowe is already producing statement stats that could yet translate into serious title hopes for the Growling Tigers from España.

First, he debuted with 29 points and 17 rebounds in University of Santo Tomas’s (UST) ghastly 87-67 rout of defending champion University of the Philippines, playing practically unstoppable in the shaded lane and transforming the boards into his own private domain.

And then in his second game, he fired 20 points and grabbed 19 rebounds, sparking a rally that erased a 12-point deficit en route to UST’s 93-84 spanking of De La Salle.

At the rate he’s been playing, Arkowe might yet shoulder the Tigers into greater heights-if not into the championship-given that he’s got great back-up in both Nic Cabanero and Forthsky Padrigao.

In both wins of UST, Cabanero and Padrigao dished off their usual deadly sting-with Cabanero continuously carving baskets even on tight situations and Padrigao also firing triples and unleashing his trademark assists in abundance.

I won’t be surprised if, this early, UST coach Pido Jarencio is dreaming to finally end a title drought of 19 years-and duplicating his 2006 victory as a rookie coach.

Jarencio faces another acid test today when UST battles National University (2-0) in a battle of unbeaten teams at 4:30 p.m. at UST’s Quadricentennial Pavillion on España.

It could be an emotional game for Arkowe as he squares off for the first time with the school where he first honed his skills as a junior player at NU.

The game is preceded by the match between La Salle (1-1) and winless Far Eastern U (0-2) at 2 p.m.

THAT’S IT Also unfolding today is the duel between Luzon/ICTSI and VisMin junior teams at the windswept but beautiful The Country Club in Santa Rosa, Laguna. The boys and girls golf skirmishes in the Ryder Cup-style competition is in 7-10, 11-14 and 15-18 age groups. Good luck to Francis Talion, who is Luzon team captain where his daughter, Levonne, is a mainstay in Luzon’s 15-18 division.

Siam Cement Group (SCG), a leading business conglomerate founded in Thailand, continues its long-standing commitment to education by awarding scholarships to 290 deserving students in the 17th year of its ‘Sharing the Dream’ program.

Since its inception in 2008, the program has been a cornerstone of SCG’s corporate social responsibility efforts, providing essential educational assistance to underprivileged yet promising students across the regions where the company operates-including countries like the Philippines, Vietnam, Indonesia, Cambodia, and Laos.

This year’s theme, ‘Green Generation,’ highlighted the program’s strong belief that every person’s potential matters and that education is the key to building a stronger, more sustainable nation.

SCG Country Director Mr. Jirasak Kaewubol echoed this theme, stating, ‘We believe in the value of individuals. That’s why we believe building human capital is the most important, which we achieve through education and upskilling people. That is what we have been doing for so many years.’

The official turnover ceremony on September 12 at Acacia Hotel Manila saw 250 high school students and 40 college students from Batangas, Manila, Bulacan, and Taguig receive their scholarships.

High school students were awarded an educational assistance package of P12,000 each while the college students were given P20,000 annually to support their educational journeys.

‘The Royal Thai Embassy really appreciates the initiative of SCG. SCG also plays a part in promoting people-to-people connections, which I think is very important and is a strong foundation for every policy that the government would like to move forward with,’ said Her Excellency Makawadee Sumitmor, the Thai Ambassador to the Philippines.

A privilege and a commitment

For 17 years, the Sharing the Dream program has awarded over 4,000 scholarships in the Philippines. This enduring commitment is rooted in a meticulous selection process that carefully chooses students for whom the scholarship will be an instrumental stepping stone toward their dreams.

High school applicants must maintain an average grade of 85% or higher with no grade below 80%, while college student applicants must maintain a general weighted average of at least 1.75. All applicants are also required to demonstrate active participation in non-academic and extracurricular activities.

An SCG scholarship alumnus, Ma. Jesiery Rose F. Guevarra, knows this process well, having received scholarships from SCG for both high school and college, which helped her achieve her dream of becoming a nurse.

‘It’s important for you to be true to yourself for them to see the genuineness of your heart,’ she advised, adding that showing eagerness is crucial for SCG to see an applicant’s true intentions and promise.

Guevarra, who benefited from the program’s support, describes the scholarship as ‘a fuel of my dreams. because when you know there’s someone willing to help you, that’s when you push forward to dream more.’

Similarly, former SCG scholar Ma. Theressa F. Orbeta, who received support for eight years and is now an employee of the company, highlighted the program’s holistic approach. ‘SCG doesn’t just help us financially; we gradually discover ourselves and realize our dreams,’ she said.

Orbeta further emphasized the program’s focus on personal growth beyond financial assistance. ‘I also experienced collaboration and socializing activities with other scholars,’ she explained. ‘Through these, we learned about their stories and also gained emotional intelligence.’

‘The Royal Thai Embassy really appreciates the initiative of SCG. SCG also plays a part in promoting people-to-people connections, which I think is very important and is a strong foundation for every policy that the government would like to move forward with,’ said Her Excellency Makawadee Sumitmor, the Thai Ambassador to the Philippines.

A partnership for uplifting Filipino lives

The partnership between SCG and the Department of Education is a powerful one, as highlighted by DepEd Director, Atty. Camara Jr.

He emphasized: ‘We see through the high school students that it was not only the material things that were brought in, but actually the confidence that empowers them. That actually changes not only their lives but the lives of their families and the communities as well.’

Atty. Camara further elaborated on the broader impact of this collaboration. ‘This partnership brought not only the resources of SCG but also a sense of solidarity between our two countries,’ he said.

He believes the program demonstrates how international friendship and industry collaboration can significantly strengthen a nation’s local education system. ‘SCG’s presence in our communities shows that the challenges of poverty and inequality can be confronted not just by the Philippines, but with our partners,’ he added.

Drawing on its 17-year history of providing educational support in the Philippines, SCG’s ‘Sharing the Dream’ program continues to champion the next generation of Filipino leaders. The initiative goes beyond financial aid, strategically investing in students from select areas by providing comprehensive assistance, fostering strong character, and encouraging active community participation.

The Securities and Exchange Commission (SEC) has approved the rental pool program of Damosa Land Inc., the first securities issuer to successfully register under the streamlined guidelines on Securing and Expanding Capital in Real Estate Non-Traditional Securities or SEC RENT.

In its en banc meeting, the agency approved company’s registration statement covering 100 certificates of participation in the condotel project of TRYP by Wyndham Samal.

Valid for 20 years starting from the date of the operation, the certificates cover 94 standard class condotel units with an offer price of P50,000; four deluxe class units worth P75,000 each; and two suite class units with an offer price of P100,000 each. All units in TRYP by Wyndham Samal will be enrolled under a mandatory condotel rental pool program. Each unit will automatically be included in the rental pool upon purchase, allowing it to be marketed, rented and managed as hotel accommodation for hotel guests without transferring ownership.

The rental pool arrangement is expected to gross up to P5.2 million, which will be used to fund the company’s pre-operating expenses and to provide a buffer for the first three months of operations.

The project, located in Barangay Limao, Samal, Davao del Norte, is expected to be launched in the fourth quarter this year, with construction set to begin in the first quarter of 2026. The project is expected to be completed in the third quarter of 2028, with the opening scheduled in the fourth quarter of the same year, according to its latest timeline submitted to the SEC.

Implemented through SEC Memorandum Circular No. 12, Series of 2024, the SEC RENT streamlines the registration process for securities of real estate firms involved in selling or offering investment contracts through rental pool agreements.

Rental pool agreements involve deals where a property developer sells or offers units in real estate projects such as condominiums, hotels or resorts to the public. Under the deals, buyers contribute the units to a rental pool managed and operated by the company or a third-party operator. In turn, the buyers are entitled to receive a share in profits earned by renting out the units to third parties.

THE Department of Information and Communications Technology (DICT) is turning to blockchain as its weapon of choice against corruption, banking on the technology’s permanence to protect government transactions from tampering or erasure.

ICT Secretary Henry Aguda said blockchain’s strength lies in its design: data stored on the chain cannot be altered or deleted, creating a permanent, verifiable record of transactions.

Aguda described this feature as an ‘immutable ledger’ that would allow the public to trace everything from budget allocations to actual purchases, ensuring a single version of the truth.

‘The nice thing about it is it’s immutable. So if there [is] anything unusual in the database, even if you don’t see it now, you can still find it down the road,’ he said. ‘You have an immutable ledger, meaning it will forever be there. It’s a single version of the truth.’

The DICT chief said this digital safeguard comes at a critical moment, as the government grapples with revelations that some Department of Public Works and Highways (DPWH) employees tampered with or wiped out project records that could have implicated them in the multibillion-peso flood control corruption scandal.

The Independent Commission on Infrastructure (ICI) recently disclosed that some files had been destroyed, complicating efforts to establish accountability for projects that were either substandard or never built at all.

‘[With blockchain] the data is not stored in one place, it’s distributed. It’s not like we can just delete or destroy the server,’ Aguda said.

At the same event, FPJ Panday Bayanihan Party-list Rep. Brian Llamanzares, vice chair of the House Committee on Appropriations, pushed House Bill 4489, or the proposed Blockchain for Government Transparency Act.

The House measure seeks to mandate that the entire national budget be placed on blockchain, ensuring citizens can independently verify every peso allocated, released, and spent.

‘When we’re talking about blockchain and how it works, we want all government transactions to be verified on the chain. What we’re doing is putting digital infrastructure in the Philippines that allows people to view these through a public portal,’ Llamazares said.

Marc Boiron, the CEO of blockchain company Polygon Labs, noted that ‘putting a national budget on-chain shows a bold commitment to transparency and accountability.’

‘This is exactly the point of blockchain technology, and it positions the Philippines as a leader that others will want to follow,’ he said.

First Gen Corp. (FGen) and the Manila Electric Co. (Meralco) are currently in talks for another extension of their gas deal that will eventually pave the way for the continued supply of electricity being sourced from FGen’s gas plant in Batangas.

‘You know that the Sta. Rita was extended up to January, but we’re hoping that will also be extended beyond. But that’s work in progress,’ said First Gen President Francis Giles Puno.

The Energy Regulatory Commission (ERC) had granted a five-month extension, or until January 2026, of their power purchase agreement (PPA), effectively averting the shutdown of the 1,100-megawatt (MW) Sta. Rita gas power plant.

Puno, however, could not yet say how long First Gen and Meralco want the gas deal to remain in effect. ‘That’s currently in negotiation.’

Meralco utility economics head Lawrence Fernandez had said that during this period both parties will continue negotiations on the PPA extension and will have to go back to the ERC after the negotiation.

Without the extension, First Gen would likely be constrained to shut down the Sta. Rita plant, the biggest among the four-gas fired power plants it operates in its Clean Energy Complex in Batangas. However, the extension may result in higher generation rates, the ERC noted in its previous decision.

‘Although the motion evidently impacts Meralco’s generation charge.there exist other equally compelling and urgent reasons that justify the proposed extension,’ the ERC said.

‘The issue transcends mere rate concerns and becomes a matter of energy security. Such a scenario could lead to widespread blackouts, with repercussions extending beyond potential increases in Meralco’s generation charge. Ultimately, the resultant blackouts could severely impact the national economy. In the end, this is what the commission is asked to reconsider and rule upon.’

These reasons, added the ERC, are anchored in policy considerations, such as ensuring grid and supply security and reliability, which fall more appropriately within the purview of the Department of Energy (DOE).

The DOE, for its part, told the ERC that the interim extension will not violate any DOE policy, particularly the competitive selection process (CSP) requirement because the Sta. Rita PPA was approved pre-Electric Power Industry Reform Act (Epira). Hence, the PPA is beyond any CSP policies issued by the DOE under Epira.

First Gen’s PPA with Meralco involving the 420-MW San Gabriel gas plant already expired last year while a similar agreement involving the 500MW San Lorenzo gas plant will expire in 2027.

Last August, First Gen said it recorded a slight increase in its net income at $151 million (P8.6 billion) in January to June from $150 million (P8.4 billion) a year ago due to lower revenues. Revenues stood at $1.213 billion (P69.3 billion), down 5 percent from $1.278 billion (P72.1 billion) because of lower electricity volumes, particularly in the gas platform, sold during the period.

The natural gas portfolio accounted for 66 percent of the company’s total consolidated revenues, while 30 percent came from the geothermal, wind and solar plants of Energy Development Corp. (EDC). The balance of 4 percent comes from the company’s hydroelectric power plants.

Meanwhile, Meralco reported last July that it will close the year with about P50 billion in consolidated core net income (CCNI), higher than last year’s P45.1 billion, after posting a CCNI of P25.5 billion in the first half.

In the first half, Meralco’s CCNI stood at P25.5 billion from P23.2 billion in the same period last year, with the distribution business accounting for the largest share of 54 percent or P13.7 billion. It also realized significant contribution from the growing power generation business with its share now at 37 percent to P9.4 billion of the CCNI.

The retail electricity supply and non-electricity businesses, meanwhile, brought in a combined P2.4 billion or 9 percent.

THE lawyers of former President Rodrigo Roa Duterte are asking the Pre-Trial Chamber of the International Criminal Court (ICC) to first determine whether his deteriorating health affects his ability to stand trial.

‘Mr. Duterte’s cognitive impairment is sufficient to warrant litigation of the matter prior to the holding of the confirmation hearing,’ said his counsel, international lawyer Nicholas Kaufman. ‘In light of the aforementioned, and given their relevance, the Defense hereby submits the present medical information into the case record.’

In a public redacted filing dated September 29, 2025, Kaufman submitted new medical records to support his claim that Duterte is suffering from cognitive impairment.

The submission is part of the ongoing case which investigates alleged crimes committed during Duterte’s presidency, particularly in connection with his controversial war on drugs.

The defense said two separate medical evaluations-one by a professional appointed by the ICC Detention Centre and another by a defense-proposed expert-corroborate the impairment and raise serious concerns about Duterte’s legal competency. The legal team also requested a status conference before the court’s judicial recess to address the matter urgently.

However, the prosecution strongly opposed the defense’s move, arguing that the medical submissions are irrelevant to the Chamber’s determination on interim release. In its own filing, also dated September 29, the Office of the Prosecutor said Duterte remains a flight risk, could interfere with proceedings, and may commit further crimes if released.

The Prosecution criticized the Defense for filing the medical challenge five months after Duterte’s initial appearance, and after key procedural deadlines had passed. It noted that during those months, Duterte was able to instruct his legal team to file jurisdictional challenges, request the disqualification of judges, and negotiate conditions for interim release-suggesting he was mentally competent enough to participate in legal strategy.

‘The Defense has unnecessarily delayed the proceedings,’ the Prosecution said, adding that the Chamber had already made clear that any postponement of the confirmation hearing would be ‘limited to the time strictly necessary’ to assess Duterte’s fitness.

The public versions of both filings redact specific medical details and internal negotiations.

Duterte, who served as president from 2016 to 2022, faces accusations of crimes against humanity for thousands of deaths linked to his anti-drug campaign. He has consistently denied wrongdoing and previously dismissed the ICC’s jurisdiction over the Philippines.

The ICC has yet to issue a ruling on the Defense’s latest request.