REPUBLIC OF THE PHILIPPINES

Senat:e
Pasay City

Journal

SESSION NO. 11
Wednesday, August 20,2014

SIXTEENTH CONGRESS
SECOND REGULAR SESSION
 SESSION NO. 11
Wednesday, August 20, 2014

CALL TO ORDER Bless the Senate. Bless the leadership

of our country. Bless the leadership of
At 3:3 I p.m., the Senate President, Han. Franklin the local governments all over the country
M. Orilon, called the session to order. as we lift these up to You and thank You,
in Jesus' Mighty Name.
PRAYER Amen.
Sen. Alan Peter "Companero" S. Cayetano
ROLL CALL
quoted the following passage from the Bible:
Upon direction of the Chair, the Secretary of
Let not mercy and truth forsake thee: bind
them about thy neck; write them upon the table the Senate, Atty. Oscar G. Yabes, called the roll,
of thine heart: So shalt thou find favour and good to which the following senators responded:
understanding in the sight of God and man.
Proverbs 3,'3-4 Angara, S. Honasan, G. B.
Aquino, P. B. IV B. Lapid, M. L. M.
Thereafter, he led the prayer, to wit:
Binay, M. L. N. S. Legarda, L.
Lord God, as we pray for mercy for our Cayetano, A. P. C. S. Osmena III, S. R.
nation, as we surrender to You all the Cayetano, P. S. Pimentel Ill, A. K.
poverty, the joblessness, the immorality, the Orilon, F. M. Poe, G.
problems that our country is facing, we ask Ejercito, J. V. G. Recto, R. G.
that the truth will come out in each and Escudero, F. J. G. Satta III, V. C.
every aspect of the Filipino life. Guingona III, T. L.
That in seeking the truth, Lord, we will
With 17 senators present, the Chair declared the
find solutions and will admit to us the
presence of a quorum.
problems that are grave and which our
nation is facing.
Senator Marcos was in an out-of-town meeting
As we continue to pray that we follow with some government officials relative to the
Your will and not our own will, we also launching of the proposed review of the Local
pray, Lord, that we will always be on Your Government Code of 1991, as indicated in the August
side rather than ask if You are on our side. 20, 2014 letter of the senator's chief of staff.

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 162 WEDNESDAY, AUGUST 20, 2014

Senator Villar was on official mission abroad. RECONSIDERATION OF THE APPROVAL

OF THE JOURNAL OF SESSION NO. 10
Senator Defensor Santiago was on an "extended
qualified medical leave" as indicated in her letter Upon motion of Senator Cayetano (A), there
dated July 11,2014. being no objection, the Body reconsidered the approval
of the Journal of Session No. 10.
Senators Enrile, Estrada and Revilla were unable
to attend the session as they were under detention. APPROVAL OF THE JOURNAL
OF SESSION NO. 10 AS CORRECTED
Senator Trillanes was absent.
Upon motion of Senator Cayetano (A), there
APPROVAL OF THE JOURNAL being no objection, the Body approved the Journal of
Session No. 10, subject to the correction made by
Upon motion of Senator Cayetano CAl, there Senator Sotto on page 151, right column, first para-
being no objection, the Body dispensed with the graph, line 5, to replace the word "used" with the
reading of the Journal of Session No. 10 (August 19, word TRIED.
2014) and considered it approved.
ACKNOWLEDGMENT
ACKNOWLEDGMENT OF THE PRESENCE OF GUESTS
OF THE PRESENCE OF GUESTS
At this juncture, Senator Cayetano (A) acknow-
At this juncture, Senator Cayetano (A) acknowl- ledged the presence in the gallery of the following
edged the presence in the gaJlery of the following guests:
guests:
• Councilor Carla Adajar of San Pablo
• AB Political Science students of the Far City, Laguna;
Eastern University, headed by Prof. • Councilor Allan Real of Sta. Maria,
Gemeniano S. Bentor, Jr.; and Laguna; and
• Members of the Liga ng mga Barangay,
• Barangay Chairman Dennis Santi dad of
Laguna Chapter, headed by Board
Barangay Sta. Ana, Pateros.
Member Boy Zuniga;
Senate President Drilon welcomed the guests to
Senate President Drilon welcomed the guests to
the Senate.
the Senate.
REFERENCE OF BUSINESS
BIRTHDAY GREETINGS
The Secretary of Senate read the following
At the instance of Senator Cayetano (A), the
matters and the Chair made the corresponding
Members greeted Senators Lapid and Sotto on the
referrals:
occasion of their birth anniversaries on August 21
and 24, respectively.
BILLS ON FIRST READING

SUSPENSION OF SESSION Senate Bill No. 2364, entitled

Upon motion of Senator Cayetano (A), the session AN ACT EXEMPTING THE CARRIAGE
was suspended. OF CONTAINER VANS FROM
THE PROVISIONS OF SECTION
It was 3:35 p.m. 1009 OF PRESIDENTIAL DECREE
NO. 1464, OTHERWISE KNOWN
RESUMPTION OF SESSION AS THE TARIFF AND CUSTOMS
CODE OF 1978, AND FOR OTHER
At 3:36 p.m., the session was resumed. PURPOSES ~
WEDNESDAY, AUGUST 20,2014 163

Introduced by Senator Paolo Benigno "Barn" Senate Bill No. 2368, entitled
Aquino IV
AN ACT PROTECTING THE RIGHTS
To the Committees on Trade, Commerce OF INTERNALLY DISPLACED
and Entrepreneurship; and Ways and Means PERSONS AND PENALIZING THE
ACTS OF ARBITRARY INTERNAL
Senate Bill No. 2365, entitled DISPLACEMENT

AN ACT PROVIDING FOR ADDITIONAL Introduced by Senator Guingona 1II

SUPPORT AND COMPENSATION
FOR EDUCATORS IN BASIC To the Committees on .Justice aud Human
EDUCATION Rights; Social .Justice, Welfare and Rural Develop-
ment; and Finance
Introduced by Senator Paolo Benigno "Bam"
Aquino IV Senate Bill No. 2369, entitled

To the Committees on Education, Arts and AN ACT PROVIDING A NATIONAL

Culture; Civil Service and Government Reorganiza- FRAMEWORK FOR STUDENTS'
tion; and Finance RIGHTS AND WELFARE

Senate Bill No. 2366, entitled Introduced by Senator Paolo Benigno "Bam"
Aquino IV
AN ACT ASSIGNING ONE REGISTERED
NURSE FOR EVERY PUBLIC To the Committee on Education, Arts and
SCHOOL IN THE PHILIPPINES Culture

Introduced by Senator Paolo Benigno "Bam" Senate Bill No. 2370, entitled
Aquino IV
AN ACT PROVIDING FOR A MAGNA
To the Committees on Health and Demo- CARTA OF THE POOR
graphy; Education, Arts and Culture; and
Finance Introduced by Senator Paolo Benigno "Bam"
Aquino IV
Senate Bill No. 2367, entitled
To the Committees on Social .Justice, Welfare
AN ACT ESTABLISHING A STATE-OF and Rural Development; Ways aud Means; and
THE-ART AND HIGHLY SCIENTIFIC Finance
SPORTS COMPLEX TO BE KNOWN
AS THE "NA TIONAL AMATEUR RESOLUTIONS
SPORTS TRAINING CENTER," AND
APPROPRIATING FUNDING THEREOF Proposed Senate Resolution No. 844, entitled
FOR THE ACQUISITION OF PRO-
PERTY, CONSTRUCTION OF FACI- RESOLUTION DIRECTING THE PROPER
LITIES INCLUDING ADMINIS- SENATE COMMITTEE TO CONDUCT
TRA TION, MAINTENANCE AND AN INQUIRY, IN AID OF LEGIS-
MANAGEMENT OF THE SAME AND LATION, ON THE PROPOSAL FROM
FOR OTHER PURPOSES A STUDY CONDUCTED BY THE
JAPAN INTERNATIONAL COOPERA-
Introduced by Senator Paolo Benigno "Bam" TION AGENCY AND COMMIS-
Aquino IV SIONED BY THE DEPARTMENT OF
TRANSPORTATION AND COM-
To the Committees on Games, Amusement MUNICA TIONS TO BUILD A NEW
and Sports; Ways and Means; and Finance INTERNA TIONAL AIRPORT TO

(
 164 WEDNESDAY, AUGUST 20, 2014

ADDRESS THE IMPENDING Proposed Senate Resolution No. 848, entitled

CAPACITY SATURATION OF THE
NINOY AQUINO INTERNATIONAL RESOLUTION DIRECTING THE PROPER
AIRPORT BY 2015 SENATE COMMITTEE TO CONDUCT
AN INQUIRY, IN AID OF LEGIS-
Introduced by Senator Defensor Santiago LATION, ON THE REPORTS OF
ALLEGEDLY BOGUS PAYMENT
To the Committees on Public Works; and CENTERS FAILING TO REMIT
Public Services THEIR CUSTOMERS' PAYMENTS
TO UTILITY COMPANIES
Proposed Senate Resolution No. 845, entitled
Introduced by Senator Defensor Santiago
RESOLUTION DIRECTING THE PROPER
SENATE COMMITTEE TO CONDUCT To the Committees on Public Services; and
AN INQUIRY, IN AID OF LEGIS- Trade, Commerce and Entrepreneurship
LATION, ON THE REPORT THAT
GUN TRADERS ARE SMUGGLING Proposed Senate Resolution No. 849, entitled
GUNS FROM PHILIPPINE NATIONAL
POLlCE-FIREARMS AND EXPLO- RESOLUTION DIRECTING THE PROPER
SIVES OFFICE SENATE COMMITTEE TO CONDUCT
AN INQUIRY, IN AID OF LEGIS-
Introduced by Senator Defensor Santiago LATION, ON THE ONGOING
RESEARCH BY SCIENTISTS FROM
To the Committee on Public Order aud
THE UNIVERSITY OF THE PHILIP-
Dangerous Drugs
PINES LOS BANOS ON THE BIO-
SYNTHESIS OF NANOGOLD FOR
Proposed Senate Resolution No. 846, entitled
POSSIBLE MEDICAL USE
RESOLUTION DIRECTING THE
Introduced by Senator Defensor Santiago
PROPER SENATE COMMITTEE TO
CONDUCT AN INQUIRY, IN AID
To the Committees on Science and
OF LEGISLATION, ON THE REPORT
Technology; and Health and Demography
THA T SACKS OF SEASHELLS OF
ENDANGERED SPECIES WERE Proposed Senate Resolution No. 850, entitled
SEIZED IN ZAMBOANGA
RESOLUTION DIRECTING THE
Introduced by Senator Defensor Santiago
PROPER SENATE COMMITTEE TO
To the Committees on Environment and CONDUCT AN INQUIRY, IN AID
Natnral Resources; and Agriculture And Food OF LEGISLATION, ON THE
VIOLATIONS AGAINST REPUBLIC
Proposed Senate Resolution No. 847, entitled ACT NO. 9262, OR THE "ANTI-
VIOLENCE AGAINST WOMEN AND
RESOLUTION DIRECTING THE THEIR CHILDREN (VA WC) ACT OF
PROPER SENATE COMMITTEE 2004" BASED ON THE REPORT BY
TO CONDUCT AN INQUIRY, IN THE PHILIPPINE NATIONAL
AID OF LEGISLATION, ON THE POLICE (PNP) DIRECTORATE FOR
REPORTED ILLEGAL LOGGING IN INVESTIGATIVE AND DETECTIVE
THE PROTECTED PALAUI ISLAND MANAGEMENT FOR THE FIRST
TN CAGA YAN PROVINCE HALF OF 2015

Introduced by Senator Defensor Santiago Introduced by Senator Defensor Santiago

To the Committee on Environment and To the Committee on Women, Family Rela-

Natural Resources tions and Gender Eqnality

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WEDNESDAY, AUGUST 20, 2014 165

Proposed Senate Resolution No. 851, entitled THE PIAZZA GRANDE, LOCARNO,
SWITZERLAND ON AUGUST 16,2014
RESOLUTION DIRECTING THE
PROPER SENATE COMMITTEE TO Introduced by Senator Lapid
CONDUCT AN INQUIRY, IN AID
OF LEGISLATION, ON THE REPORT To the Committee on Rules
THAT THE COUNTRY IS ON HIGH
Proposed Senate Resolution No. 855, entitled
ALERT AGAINST SMUGGLED WILD
ANIMALS COMING INTO THE RESOLUTION DIRECTING THE COM-
COUNTRY FROM AFRICA IN MITTEES ON PUBLIC SERVICES;
LIGHT OF THE DEADLY EBOLA PUBLIC INFORMATION AND MASS
VIRUS OUTBREAK IN PARTS OF MEDIA, AND OTHER APPROPRIATE
WEST AFRICA SENA TE COMMITTEES TO
CONDUCT AN INVESTIGATION, IN
Introduced by Senator Defensor Santiago AID OF LEGISLATION, ON THE
PROLIFERATION OF TEXT SCAMS
To the Committees on Health and Demo- THAT ARE DIRECTED AT POST-
graphy; and Environment and Natnral Resonrces PAID SUBSCRIBERS OF TELECOM-
MUNICA TlON PROVIDERS AND
Proposed Senate Resolution No. 852, entitled INQUIRE ON THE MEASURES
BEING UNDERTAKEN BY THE
RESOLUTION CONGRATULA TING THE NATIONAL TELECOMMUNICA-
TEN OUTSTANDING STUDENTS TIONS COMMISSION, AND PRIVATE
OF THE PHILIPPINES FOR 2014 TELECOMMUNICATION COMPANIES
TO PUT A STOP TO THESE UN-
Introduced by Senator Lapid SCRUPULOUS TRANSACTIONS

To the Committee on Rules Introduced by Senator Lapid

Proposed Senate Resolution No. 853, entitled To the Committees on Public Services; and
Trade, Commerce and Entrepreneurship
RESOLUTION CONGRATULATING
AND COMMENDING FILIPINO Proposed Senate Resolution No. 856, entitled
AUTHORS SOPHIA MARIE LEE
RESOLUTION DIRECTING THE SENATE
AND CATHERINE TORRES FOR
COMMITTEE ON JUSTICE AND
WINNING IN THE 2014 SCHOLASTIC
HUMAN RIGHTS AND OTHER
ASIAN BOOK AWARDS PRESENTED
APPROPRIATE SENATE COM-
DURING THE ASIAN FESTIVAL OF
MITTEE/S TO INQUIRE, IN AID OF
CHILDREN'S CONTENT ON 30 MAY
LEGISLATION, INTO THE REPORTED
2014 IN SINGAPORE
PROLIFERATION OF FAKE LAND
TITLES IN MANY PARTS OF THE
Introduced by Senator Lapid
COUNTRY, SPECIFICALLY IN
GENERAL SANTOS CITY, AND TO
To the Committee on Rules
RECOMMEND FEASIBLE SOLUTIONS
TO END THIS NEFARIOUS ACTIVITY
Proposed Senate Resolution No. 854, entitled
AND THEREBY ALLEVIATE THE
PLIGHT OF THE INNOCENT
RESOLUTION CONGRA TULA TlNG
VICTIMS THEREOF
AND COMMENDING FILMMAKER
LA VRENTE INDICO DIAZ FOR Introduced by Senator Pimentel III
WINNING THE GOLDEN LEOPARD
AT THE 6TH LOCARNO INTER- To the Committee on Justice and Humau
NATIONAL FILM FESTIVAL AT Rights
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166 WEDNESDAY, AUGUST 20, 2014

COMMUNICATION The foil text of her speech follows:

Petition from the Kapatiran Party/Alliance for the Yesterday, August 19, was Quezon City
Common Good RE: PETITION FOR INDIRECT Day. But the celebration of Quezon City Day
INITIATIVE TO ENACT A NATIONAL LEGIS- is also the celebration of the National Tubercu-
LATION TITLED "AN ACT AMENDING losis Day. By virtue of Presidential Proclamation
No. 840, the birth anniversary of President
REPUBLIC ACT NO. 9369, ENTITLED AN
Manuel L. Quezon is also our National Tubercu-
ACT AMENDING REPUBLIC ACT NO. 8436,
losis Day in remembrance of the first president
ENTITLED AN ACT AUTHORIZING THE of the Commonwealth who died of tuberculosis
COMMISSION ON ELECTIONS TO USE 70 years ago.
AN AUTOMATED ELECTION SYSTEM IN
THE MAY 11, 1998 NATIONAL OR LOCAL Although tuberculosis is a curable disease,
current efforts are insufficient to find and treat
ELECTIONS AND IN SUBSEQUENT
those who fall ill to the disease. All over the
NATIONAL AND LOCAL ELECTORAL world, one in three people who get sick with TB
EXERCISES, TO ENCOURAGE TRANS- are unable to get the care they need. Each year,
PARENCY, CREDIBILITY, FAIRNESS AND around nine million people worldwide get sick
ACCURACY OF ELECTIONS, AMENDING with tuberculosis but a third of them, or three
FOR THE PURPOSE BATAS PAMBANSA million, are "missed" or are not being targeted by
BLG. 881, AS AMENDED, REPUBLIC ACT the health systems. Thus, the theme for this
NO. 7166 AND OTHER RELATED ELEC- year's World Tuberculosis Day which was cele-
TIONS LAWS, PROVIDING FUNDS brated last March 24 was "Reach the 3 Million"
to ensure that everyone suffering from TB has
THEREFOR AND FOR OTHER PURPOSES
access to diagnosis, treatment and cure.
To the Committee on Electoral Reforms At the time this proclamation was signed
and People's Participation in 1966, the World Health Organization (WHO)
listed the Philippines as number one in terms
COMMITTEE REPORT of the number of reported TB cases in the
Western Pacific Region. Thus, the National
Tuberculosis Day was declared to address the
Committee Report No. 67, submitted jointly by the significant problem of TB in the country, as well
Committees on Games, Amusement and Sports; as increase public awareness on its prevention,
and Finance, on House Bill No. 4292, introduced diagnosis and treatment.
by Representative Almonte, entitled
Today, the Philippines is still among the
top 22 high-burden tuberculosis countries in the
AN ACT ESTABLISHING THE MISAMIS
world according to WHO. These 22 countries
OCCIDENTAL SPORTS ACADEMY comprised 80% of the total global TB burden.
IN THE CAPITAL CITY OF ORO-
QUIETA, PROVINCE OF MISAMIS An estimated 200,000 to 600,000 Filipinos
OCCIDENTAL AND APPROPRIAT- have active TB which makes them contagious
to others. A person with active TB can spread
ING FUNDS THEREFOR AND FOR
the disease to 10 other Filipinos each year.
OTHER PURPOSES, In fact, tuberculosis is so widespread that it
is the number six leading cause of death in the
recommending its approval without amendment. Philippines. It is worth noting that we have
significant development in increasing detection
Sponsor: Senator Sonny Angara and treatment.
In 2007, we achieved a detection rate of
To the Calendar for Ordinary Bnsiness 75%, exceeding the WHO target of 70%, and
treatment success is at 8 S%j again exceeding the
PRIVILEGE SPEECH WHO target of 85%.
OF SENATOR CAYETANO (P)
In 2009, the National Center for Disease
Prevention and Control of the Department of
Availing herself of the privilege hour, Senator Health spearheaded the process of formulating
Cayetano (P) delivered a speech on the occasion of the 2010-2016 Philippine Plan of Action to
"National Tuberculosis Day." Control TB (PhilPACT), with the vision of a
WEDNESDAY, AUGUST 20, 2014 167

TB-free Philippines and the goal of reducing SPECIAL ORDER

TB prevalence and mortality by half by the
year 2015. Upon motion of Senator Cayetano (A), there
PhilPACT is the guiding direction for our being no objection, the Body approved the transfer of
efforts towards achieving the Millennium Committee Report No. 58 on Senate Bill No. 712
Development Goals, and its strategies are closely from the Calendar for Ordinary Business to the
linked to the goverument's health reform agenda Calendar for Special Orders.
to ensure sustainability and risk protection.
Its eight-fold strategy to achieve these aims
includes, among others, localizing implementa- COMMITTEE REPORT NO. 58
tion of TB control, monitoring health system ON SENATE BILL NO. 712
performance, engaging all health care providers,
both in the public and private sector, securing Upon motion of Senator Cayetano CAl, there
adequate funding, and improving allocation and being no objection, the Body considered, on Second
efficiency of fund utilization. However, there still Reading, Senate Bill No. 712 (Committee Report
remains a need to undertake effective and efficient No. 58), entitled
strategies to significantly control and reduce
tuberculosis in the country. AN ACT PROVIDING FOR THE MAN-
The World Health Organization, which DATORY PHILHEALTH COVERAGE
monitors the TB control efforts in many FOR ALL SENIOR CITIZENS, AMEND-
countries, has identified six constraints which ING FOR THE PURPOSE REPUBLIC
hamper these efforts. These are: 1) lack of ACT NO. 7432, AS AMENDED BY
qualified staff; 2) poor monitoring and evalua- REPUBLIC ACT NO. 9994, OTHER-
tion; 3) inadequate infrastructure; 4) weak labora- WISE KNOWN AS THE EXPANDED
tories; 5) insufficient engagement in Directly
SENIOR CITIZENS ACT OF 2010.
Observed Treatment Strategy (DOTS) of private
practitioners and other health providers; and
6) limited commitment to, and capacity for, Pursuant to Section 67, Rule XXIII of the Rules
implementing DOTS in peripheral health services. of the Senate, with the permission of the Body, upon
What is the Philippine situation? The Philippines motion of Senator Cayetano CAl, only the title of the
faces three of these six constraints, namely, poor bill was read without prejudice to the insertion of its
monitoring and evaluation, poor involvement in full text into the Record of the Senate.
DOTS of private and non-entity public providers,
and low public awareness. Thereupon, the Chair recognized Senator Guingona
Thus, the Department of Health, as the lead for the sponsorship.
agency in the implementation of the TB control
program, must step up its efforts to address SPONSORSHIP SPEECH
these constraints. Further, we must boost public OF SENATOR GUINGONA
awareness about the disease, especially the need
for diagnosis and treatment, because some
infected patients may carry the disease and risk Senator Guingona presented for the Body's
spreading it to people around them. plenary consideration Senate Bill No. 712.

Through effective health interventions and The full text of Senator Guingona's sponsor-
strong information campaigns about tuberculosis,
ship speech follows:
both the public and private sectors can work
towards improving public health and protecting
our citizens against this relentless disease. Sa araw na ito, tumatayo po aka sa harap
ninya upang manindigan para sa isang
mahalagang simu/ain.
REFERRAL OF SPEECH
TO COMMITTEE Tumatayo po aka sa harap ninya sa araw
na ito alang-alang sa isang sector ng mga
Upon motion of Senator Cayetano CAl, there kababayan nalin na patuloy na dumadaan sa
being no objection, the Chair referred the speech of matinding mga pagsubok sa buhay.
Senator Cayetano (P) to the Committee on Health Kasama sa mga pagsubok na ito ang
and Demography. paghina ng kanilang katawan, ang katapusan

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168 WEDNESDAY, AUGUST 20, 2014

ng kanitang productive years, at ang kawalan as lifetime members, dependents, sponsored

ng kakayahan na alagaan ang kanilang sarili. or indigents.
Tumayo po aka sa harap ninya ngayon Yes, some 1.9 million Filipinos classified as
para hilingin ang suporta at tulong ng ating senior citizens have already been assured that
Senado. Tumayo po aka sa ngalan ng halos their medical requirements in advanced age can
tatlong mityong kababayan nating Pilipino - be adequately met.
ng halos tatlong mityong Pilipinong tinatawag
A recent census, however, shows that the
nating mga senior citizens.
number of Filipinos 60 years old and above
Today, on their behalf, and on behalf of my stands at some 6. I million. That means some 2.16
peers in the Senate Committee on Health and million Filipino senior citizens may still be
Demography, I ask for your support and that of languishing in hopelessness and in the worry
this entire Body for the speedy passage of that they cannot meet the medical requirements
Senate Bill 712: "An Act Providing for the of one who is advancing in age. Ang dalawang
Mandatory PhilHealth Coverage for all Senior mityon at dalawang daang libong senior
Citizens, Amending for the Purpose RA 7432, as citizens na ito ang Jayuning bigyan ng pag-asa
Amended by RA 9994, Otherwise Known as the ng Senate Bill No. 712.
Expanded Senior Citizens Act of2010."
Sa Jayuning ito, mangangailangan ang
Sa aking pag-iikot sa bansa, marami po pamahalaan ng karagdagang budget na PS.2
akang nakakasalamuhang mga 1010 at lola. At billion. Sa tingin ng inyong lingkod, maliit no
tuwing kinukumusta ko sila, ang sinasagot halaga lamang ito kung ikukumpara sa laking
nita, "Mabuti naman po." Pero 'pag tinignan pag-asa at pagkalinga sa aUng mga 1010 at
po ninyo ang kanitang mga mata, mababasa po lola na ibibigay nito.
ninyo doon na sUa ay dumadaan sa matinding
MalUt na halago po ito para sa pagtupad
paghihirap.
natin sa atas ng universal health care agenda
They are going through much pain. ng ating bansa.

Tinanong ko po ang isang lola. Sabi ko, May paniniwala tayong mga Pilipino. Sabi
"Ana po ang masakit sa inyo?" Tumingin natin, ong isang anak ay salam in ng pagkatao
lamang siya so akin at initagay ang kanang ng kanyang mga magulang. A child is the
kamay niya sa kanyang dibdib. Akala ko, reflection of the character of his parents. Kung
ang ibig niyang sabihin ay meron siyang sakit maganda ang pagkatao ng isang bata, 'yun ay
sa puso. Pero ganito ang sabi niya sa akin: anino lang ng maayos na pagkatao ng kanyang
"Senador, hindi po puso ang masakit sa akin. mgo magulang.
Ang masakit po ay ang damdamin ko. Lagi po
May kokambal ang prinsipyong ito. Sa
kosi akong nag-aalala na wala akong pambili
pagtanda naman ng isang tao, ang kalagayan
ng gamot at hindi ko na po kayang magpa-
ng tumanda na magulang ay saiamin ng
doktor. "
pagkatao ng kanyang mga anak. The condition
At that moment, I came to realize that the and situation of a person in his advanced age is
real disease of advanced age is neither gout nor the reflection of the character of his or her
mere rheumatoid arthritis. The worst of all children.
advanced age-related diseases is the feeling of
Tanong ko po: Hindi kaya ang kalagayan
uselessness, helplessness, and hopelessness.
ng mga senior citizens natin ay salamin din ng
Ang pinakamatinding sakit ng isang pagkatao at character natin bitang isang
nagka-edad na ay ang pakiramdam na wala ka bansa? Bilang isang /ipunan?
ng silbi at hindi mo na kayang tulungan ang
At ano po ang character ng isang bansa
iyang sarili. At ang bunga nita ay ang kawalang-
kung saan ang mga tumatandang mga
pag-asa.
magulang ay nakababad sa kawalang pag-asa
Iyan po ang sakit na layuning tulungang na matutugunan ang mga pangangailangan
gumaling ng Senate Bill No. 712. Under this nita sa kalusugan?
proposed law, it will become mandatory for all
At sa kabitang dako, ano naman po kaya
Filipinos 60 years and above to be covered by
ang larawan ng isang bansa at lipunan kung
the Philippine Health Insurance Corporation.
saan ang mga tumatandang mga magulang ay
As of June of this year, Phil Health has naaalagaan at natutugunan sa mga kaiIangan
already covered some 3.9 million senior citizens nita para sa kalusugan?
WEDNESDAY, AUGUST 20,2014 169

Ang mga lanong po na, 'yan ay sasagntin Many of our elderly fall between the cracks
ng lugon ng Senado sa hiling ng Senate without the safety net of a gentle society
Committee on Health and Demography sa catching their fall. To our government's credit,
muugung pugpu,')u ng Scnalc 13il1 No. 712. it i,:, murowing lhe deficit and closmg the cracks.
Muli, tumalayo po ako sa harap ninyo There is a program which grants P500
para hingin ang suportang 'yan sa ngalan ng monthly pension to indigent seniors, courtesy of
mga kasamahan natin sa Senate Committee on a landmark law, RA 9994, shepherded by
Health and Demography, triathlete Senator Pia who believes that the best
form of cardiac exercise is to extend a helping
COSPONSORSHIP SPEECH hand to lift up the down and out.
OF SENATOR RECTO Under this law, the discount for seniors has
been expanded by crossing out sales tax on a
Senator Recto delivered his cosponsorship wide range of goods and services-from the
speech, as follows: drugs they stock in their mini-pharmacies at
home, to Justin Bieber concert tickets, to airline
If it takes a village to raise a child, then it tickets, and even hotel rooms for a second
must also take a village to care for the old. And honeymoon. There is also a five percent
one that does so is great, for that is how a discount on water and power for them.
society is measured-not by the strength of its
economy, nor the might of its army. But rather, On the part of local governments, many are
in the words of a wise man, on how it treats extending services beyond those prescribed by
those in the dawn of life, the children; those in law. Enter any store and chances are you will
the shadows of life, the poor and the sick; and find a notice with the selfie of the local executive
those in the sunset of life, the elderly. with his toothy smile announcing that senior
discount cards are honored in that establishment.
Legislatures are also weighed by this
standard, and those who have made life kinder Paying by installment
for these people have in turn been judged kindly
But more needs to be done for our senior
by history.
citizens than offering to laminate their discount
The same yardstick is applied to Filipino cards for free. It will, however, be impossible to
families as well. give all the elderly all that they need for free.
Should we, for example, borrow money to build
Filial devolion
facilities and fund the services they need, the
Filial devotion is a gene in the DNA of our required amount will max out the national credit
race. That is why we do not send our parents card.
to nursing homes to be attended to by strangers.
We turn our very homes into places where we The fact is it will be impossible to create a
nurse OUf parents ourselves. As a result, a great national infrastructure for senior care in one swipe.
number of our households today double as The best we can do is to trim the deficit in
homes for the aged. Even if the elderly parent increments, so that it becomes a diminishing
has the means to employ a coterie of caregivers, balance. It is work done by installment. Today,
the company of kin and kith is something that through this bill, let us make another down-
money cannot buy. payment. It is like the shawl we drape on their
body when they are cold. We weave them,
The same compassion to elders must drive thread by thread. And through this bill, we are
government as well. Sadly, there is a huge adding a big patch to this quilt.
national deficit when it comes to how we treat
those who have given their best to give us better No need for a card
lives. Although this shortfall never appears in Health jnsurance can never be calJed univer-
our book of accounts, they are however evident sal ifit does not cover all seniors. Enrolling them
everywhere. must be automatic, not optional.
Narrowing Ihe deficil The ideal is that the minute they blowout
We have a public health system straining to the candles on their 60" birthday cake to the
meet the rising demand for geriatric care, moment they breathe their last-they should be
PhilHealth members.
We have a pension system which managed
to enroll only a fraction of those who should by Because what is better than giving them
now be getting the fruits of their contributions. birthday cards? Giving them PhiIHealth member-

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170 WEDNESDAY, AUGUST 20, 2014

ship cards. Or better still, if one reaches 60, he As I said, many of these six million "dual
or she does not need to present a card from citizens" are already under PhilHealth umbrella
PhilHealth to avail of its benefits. And that is through various schemes. Ang sinasabi lamang
the placticality of this bill. Iluwug na naling namin dito, hindi nu katlangan ang PhilHealth
hanapon pa ng ID iyong senior citizen kohit na card tutal naman hindi rin naman nakapag-
member po siyo 0 sponsored member po siya. bigay ang Philhealth ng PhiIHealth card.
Any valid ID would be enough.
But there are many who could fall between
Entitlement must corne with age. Extending the cracks. This bill seeks to shut close the gaps.
insurance coverage to all citizens 60 years and It does so by amending Republic Act No. 9994,
above is an affordable proposition. the "Expanded Senior Citizens Act of 2010."
For one, PhilHealth can never claim that Paying forward
government has been thrifty or tardy in infusing
Some fiscal conservatives will be quick to
funds. The national government has been provid-
take out their calculators to compute whatever
ing funds to PhilHealth to enroll sponsored mem-
small cost this proposed mandate will incur. But
bers. These amounted to P12.6 billion for 2013,
let me remind them that inSUring our elderly
P35.34 billion for 2014, and we expect P37.06
should not be viewed as a revenue loss. Rather,
billion for2015.
it should be viewed as a productive expenditure
Please note that the one for 2015 is on and debt paid to those who gave the best years
top of the almost P3.6 billion that the national of their lives so ours will be better.
government will be remitting to PhilHeaIth as an
We have been told to always honor our debts,
employer to more than one million workers.
and the national budget is the ledger which shows
Phi/Health can afford our faithfu1 compliance, always in amounts so
large that they never fail to shock us.
After raising its annual premium rates,
PhilHealth can never plead funding anemia. But there is one group of creditors who has
Remember that beginning this year, PhilHealth not billed us for their services, they who toiled
has jacked up the premium for government- to finance our personal growth and fund national
sponsored beneficiaries from PI,SOO to P2,400, development, never serving us a billing notice in
or 100%. return.
For those in the employed sector, the They are our senior citizens, and it is time
premium, which is basically a payroll tax, has that we paid them back. They have invested in
been indexed to compensation. With P 116 billion our future and they are entitled to dividends.
in reServes and P62 billion in income as of
This bill settles but a small portion of what
December 31, 2013, enrolling all seniors will not
we owe them. No obligation is more outstanding.
put PhilHealth in financial ICU. It will take gross
mismanagement for it to go flatline. This is not just about paying back the
generation ahead of us. It is also a matter of
First, many seniors are already covered by
paying forward, so that the generation who will
PhilHealth, either through direct government
come after us would know how to repay the
sponsorship or by virtue of them being the
labors of the generation who came before them.
declared beneficiaries of PhilHealth members.
I ask for this Body's support to pass
Second, those who are so-called "dual
Senate Bill No. 712.
citizens" - their second one being senior citizen-
ship - but still punch the clock in the office are
already under the PhiIHealth canopy. SUSPENSION OF CONSIDERATION
OF SENATE BILL NO. 712
Third, PhilHealth is not an "unli" HMO.
Although it can be used for a smorgasbord of
Upon motion of Senator Cayetano (A), there
illnesses, there are limits to the benefits it can give.
being no objection, the Body suspended consideration
The joke is that every PhilHealth case is a "ter-
of the bill.
minal case," meaning, there is a limit to how much
it would reimburse. Hindi naman lahat libre.
COMMITTEE REPORT NO. 56
6 in 100 ON SENATE BILL NO. 2282
Only six in every 100 Filipinos today are 60 (Continuation)
years old and above. We are a very young
popUlation. Upon motion of Senator Cayetano (A), there

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WEDNESDAY, AUGUST 20,2014 171

being no objection, the Body resumed consideration, services in the Philippines are of top quality and of
on Second Reading, of Senate Bill No. 2282 the most competitive prices which can only be
(Committee Report No. 56), entitled achieved in a competitive environment.

AN ACT PROMOTING FAIR COMPETI- Asked whether the measure provides for a
TION TO PROTECT CONSUMER balancing of interests between consumer welfare
WELFARE, ADVANCE DOMESTIC and the need to enhance competition, Senator Aquino
AND INTERNATIONAL TRADE replied in the affirmative, as he explained that part
AND SUSTAINED ECONOMIC of the balancing act is allowing the private sector to
DEVELOPMENT BY, AMONG OTHERS, grow and flourish, allowing the worthy ones to actually
REGULA TING MONOPOLIES, ANTI- increase their size, and at the same time ensuring
COMPETITIVE AGREEMENTS, that the market is competitive and that no big player
ABUSE OF DOMINANT POSITION, is enjoying an edge over the other players in the
AND ANTI-COMPETITIVE MERGERS, market. He added that one of the proponents of the
ESTABLISHING THE FAIR COMPETI- bill, the Philippine Chamber of Commerce and Industry
TION COMMISSION AND APPRO- (PCCI) attended the various hearings and meetings
PRIA TING FUNDS THEREFOR, AND to help in the crafting of the bill.
FOR OTHER PURPOSES.
Asked whether the scope and application of the
Senator Cayetano (A) stated that the parlia- bill apply to both the public and private sectors,
mentary status was still the period of interpellations. Senator Aquino answered in the affirmative. However,
he explained that when the government puts out
Thereupon, the Chair recognized Senator Aquino, orders, for instance a cease-and-desist order, it is
sponsor of the measure, and Senator Angara for his primarily meant for the private sector and to create
interpellation. a competitive atmosphere in the market. He said that
the Commission can also put out opinions and rulings
SUSPENSION OF SESSION in cases where the government engages in business.

Asked whether the measure, once enacted into

Upon motion of Senator Cayetano (A), the session
law, would also operate to restrain government
was suspended.
entities, Senator Aquino answered in the affirmative,
explaining that the measure aims to create a competitive
It was 4:15 p.m.
atmosphere in the market, thus, government engaging
in business will have to fall under the ambit of the
RESUMPTION OF SESSION
law, but he acknowledged the need to also look
at the rules on government allowing itself to be
At 4: IS p.m., the session was resumed.
sued. He clarified that among the functions of the
Commission is to create an enabling environment for
INTERPELLATION OF SENATOR ANGARA
competition, analyze the different sectors, and put out
its opinion regarding which sectors are not competitive
At the outset, Senator Angara noted the
based purely on private players, and also based on
complexity of the proposed Competition Act or the
private and public players in certain industries.
anti-trust measure, the reason why it took a decade
to craft it. Asked whether the law also applies to Duty Free
Philippines, considering that it has monopoly of duty-
Asked by Senator Angara on the policy behind free goods. Senator Aquino pointed out the need to
the proposed bill, Senator Aquino stated that the basic first define "market"; if it is a retail market, a duty-
principle of the bill is that promoting fair competition free store cannot be considered dominant and as
in the Philippine market would allow the entry of new such, it could not be adjudged as a monopoly because
players, there would be level playing field wherein new any of the goods that can be bought there can also
players can come in and transact with the market, be bought in other areas.
eventually lowering prices and improving the quality
of products and services. He added that the heart of Senator Angara agreed that the definition of
the bill intends to make sure that the products and "market" is crucial in the operation of the law.
 172 WEDNESDAY, AUGUST 20, 2014

Senator Aquino added that the adjudication of an uncompetitive atmosphere. He added that the
cases all over the world hangs on the definition of Fair Competition Commission (FCC) can initiate
"relevant market." further reforms in the casino industry as well as in
the Philippine Ports Authority (PPA), which is also
Senator Angara stated that if Duty Free is both a regulator and operator.
defined as just a market where balikbayans could
buy tax-free goods, only then could it be called a At this juncture, Senate President Drilon asked
monopoly, otherwise, if defined widely, it is considered whether the NFA could be penalized under the law
just part of the bigger sector of retail operators. if it increases its market share from the current
5%-10% to 50% or to a point where it can already
Senator Aquino clarified that the term "market" dictate the prices of rice, as he reminded that its
was defined not in its narrow sense because the idea social purpose is to keep the price of rice within
is to manage or administer large industries. Giving a affordable reach of the population. Senator Aquino
narrow definitition of the term, he said, would mean explained that if a large group promotes efficiencies
limiting the scope of the Fair Competition Commis- or activities which are good for the consumers, like
sion (FCC). Senator Angara concurred, noting that lowering the prices of commodities in the market,
markets are getting bigger given the global market then they do not fall under the ambit of the law.
trend of expansion. He added that access of consumers Noting that the NFA sells to the traders and not
to goods have become easier, with consumers buying directly to the market, he stated that price differentials
products in stores online, or for those who can for socialized pricing for the less fortunate sector
afford, shopping abroad where they feel they can are allowed and that it is actually included in one
avail of cheap products. of the provisions of the hill.
Senator Aquino cited the accepted principle of Senator Angara suggested the setting of priorities
substitutability of goods and services. If the goods among the different competing goals of the measure,
are easily substitutable, the market has to be defined saying that he could foresee the rise of a new
in a larger scope, he said. industry of litigation in courts and a whole slew of
Asked whether the NFA can be considered a anti-trust and competition lawyers as it has been in
monopoly, Senator Aquino replied that although it is other countries where the anti-trust law is a separate
the only one allowed to import rice, it is not the only hranch of practice for accountants and lawyers. He
one selling it, thus, it is not a monopoly. He explained believed that putting such discussions on the record
that in defining a monopoly, it is always in regard to would be helpful for courts as their reference at
a particular market and its ability to sell goods or some point in the future.
services.
Senator Angara recalled that in his sponsorship
Asked whether the provisions of the Act would, speech, Senator Aquino mentioned the Sherman Law
therefore, not apply to the NFA but only to the of the United States, a seminal piece of legislation
people who import rice through the NFA, Senator that was enacted at the turn of the century and
Aquino replied that the law would apply to traders which is still a valid law although it had been the
or cartels who act like a monopoly, pointing out that subject of amendatory legislation. He said that
the purpose of the bill is precisely to break mono- competition laws in the U.S. encompass judge-made
polistic behavior. He said that if a group of traders, laws, unlike in the Philippines which is a civil law
for instance, would agree to fix the price of certain country where everyone is written in black and
goods in order to control a large part of the market, white. He asked how the Sherman Act, Clayton Act
then their act will fall under the ambit of the law. and subsequent legislation on competition influenced
Senate Bill No. 2282. Senator Aquino stated that
Asked whether PAGCOR falls under the ambit common in the competition laws of the United States
of the law considering that many consider it a and the proposed bill are the prohibited acts such as
government monopoly, Senator Aquino explained that anti-competitive agreements and abuse of dominant
gambling as an activity is wide and the people have position, and review on mergers and acquisition, but
choices whether to go to a PAGCOR-operated he clarified that the bill does not penalize erring
casino or somewhere else. He said that the current firms hy their bigness as is being done by the U.S.
set-up of PAGCOR as both an operator and a government. He said that a large company with a
regulator should be looked into as it could lead to large market share hrought about by good husiness

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WEDNESDAY, AUGUST 20, 2014 173

practice, such as offering a good price and quality very encompassiug that it covers practically all
products, would not be adversely affected by the areas of business, could become a very powerful
proposed law. He said that it is only when companies government entity. Senator Aquino clarified that the
use their largeness and dominant position to edge out FCC, similar to competition commissions of other
other players and make it difficult for new ones countries, would only rule on administrative and civil
to enter the market that they are penalized. This, cases and will mete out fines as penalties, while
he says, is what differentiates the bill from other criminal cases would be handled by the Office for
competition policies around the world. He added that Competition under the Department of Justice. He
the rights and capabilities of local industries for added that other countries have very proactive
growth are also protected because the Philippine competition commissions that analyze industries, warn
Chamber of Commerce and Industry (PCCI) was companies of possible violations ahead of time, and
part of the main group that drafted the bill. He mete out fines, yet still allow the firms to operate
affinned that the "bigness" of the company itself is nonnally once the penalties are paid. He pointed out
not penalized; rather, it is the anti-competitive behavior the case of Japan, where criminal cases filed against
of the firm which will be restrained, as detailed in competing firms were few and far between since its
Chapter III (Prohibited Acts), a practice that is also competition commission operates to regulate the
largely accepted around the world. behavior of players within a free and open market.

Senator Angara stated that in the U.S., the Asked whether the P750-million fine is a criminal
approach is to look at the structure of a company, penalty or an administrative penalty, Senator Aquino said
and if it controls an unduly large share of the market, that the P750 million fme is the maximum administrative
it is broken up to preempt possible plans to merge or penalty that would be imposed on violators. He
acquire other companies. However, he noted that explained that the huge penalty recognizes the nature
lately, the "test of reason" approach has been utilized of the companies that would be involved in such
wherein each company's effect on the competition activities, specifically large companies in a dominant
is studied on a case-to-case basis. In reply, Senator position and operating in a mature market, unlike the
Aquino pointed out that such a scenario presents a P200 fine imposed by the National Telecommunica-
challenge to the proposed FCC particularly since the tions Commission (NTC) which hardly puts a dent into
current milieu under which the acts were committed the earnings of the erring telecommunication finns.
becomes a large part of the case. For instance, He expressed openness to any amendment concerning
he said that a particular act committed when the such penalties but stressed that the proposed penalty
company was still a small entity may not be considered primarily aims to act as a deterrent to possible violators.
a violation then, but could be considered a violation
Asked which violations would be slapped with
under the present law. He stressed that the import-
huge fines, Senator Aquino replied that the fines
ance of determining the relevant market, would
would cover any violation. He pointed out that a
depend on the appreciation of the Commission based
violation of Section 19 (Essential Commodities)
on the test of reasonableness. Similarly, he said that
would be imposed a three-fold fine because jacking
the Commission would also have to consider the
up prices of prime commodities, for instance, would
"dominant position" aspect in ruling on a case since
be detrimental to the public.
a price cut offered by a small player would not be
taken as a violation of the prohibitions of the bill. To the observation that the minimum fines would
He pointed out that most competition commissions be ineffective if they are too small, Senator Aquino
in other countries, such as the U.S. Federal Trade replied that he would welcome proposals to amend
Commission (FTC), are given a lot of leeway to be the provision at the proper time.
able to look at the current situation and the status of
the players before deciding based on the reasonable- Adverting to Section 1, Chapter II, Senator Angara
ness of the particular case at hand. He underscored asked on the rationale for attaching the FCC - which
the importance of plainly stating in the law the would be created one year after the approval of the
prohibited acts along with the safeguards that would Act - to the Office of the President. Senator Aquino
be enforced in application of such acts. explained that it is due to the importance and nature
of the Commission, and the need for it to be indepen-
Senator Angara agreed that safeguards are dent from all other agencies and to have a separate
necessary because the proposed FCC, with its scope and specific budget.
 174 WEDNESDAY, AUGUST 20,2014

As regards the concern that doing so would ing more benefits to the people. He believed that if
subject the Commission to undue influence from the the right person is appointed to run the Commission,
Executive department given that presidents usually 14 years would be enough to make serious changes
have rich friends, as evidenced by Comelec documents in the way the economy is running, the same way
that list the names of wealthy donors of presidential that BSP Governor Tetangco, who is already on his
candidates, including those involved in big businesses second term, has improved the performance of the
in the country, Senator Aquino replied that he would BSP which largely contributed to the stability and
welcome suggestions as to the appropriate govern- well-being of the economy. He hoped that the
ment agency that should manage the Commission, President would also appoint to the FCC highly
even as he noted that all actions of the Executive capable and proactive people who would resist any
department emanate from the Office of the President. type of temptation. He stated that the right safeguards
can be instituted to resist temptations, yet the choice
Senator Angara suggested that the FCC structure to appoint the best people to the Commission still
be made similar to the Bangko Sentral ng Pilipinas rests on the President.
(BSP) which is independent of the Office of the
President but is also given independence by virtue of Asked if he has someone in mind who could be
its exemption from the salary standardization law. appointed to the Commission, Senator Aquino expressed
his preference for renowned economists with pro-
Senator Aquino explained that the reason for active views and thinking.
putting the Commission under the Office of the
President is to put it in the highest level of the Asked on the type of person that would make a
Executive department. He nevertheless agreed to good commissioner of the FCC, Senator Aquino
discuss further the proposal of Senator Angara. replied that the qualifications are stated in Section 2,
He also confirmed that the Commission would be Chapter II of the bill. He stated that politicians
exempt from the Salary Standardization Law (SSL). cannot not be appointed since the bill states that the
But Senator Angara noted that in the actual operation appointee must not have been a candidate for any
of the law, the exempted agencies do not automatically elective national or local office in the immediately
have the power to set their salary scale because it preceding elections, whether regular or special.
must be first approved by the DBM. He added that people from certain fields are also
recommended, particularly those from economics,
Asked if the support staff should be composed finance, commerce or engineering. He said that he is
of specialized personnel, Senator Aquino replied that partial to one who specializes in economics because
they should be specialized because they would be the idea that good competition leads to better
handling cases involving billions of pesos. Thus, aside prices and higher quality of products and services is
from protection, he said that they would have to be a largely accepted economics standard. He also
paid properly or competitively so as not to risk the mentioned the need for a good legal team because
whole endeavor. the cases handled by regulators, most of which are
unfavorable to large businesses, always go to court.
Since the FCC will be a very powerful agency,
and with the types of cases it would handle, Senator Asked if the decisions of the FCC are appealable
Angara said that arbitrariness, corruption and regula- in the Court of Appeals (CA), and whether the CA
tory capture must be avoided; thus, it is very important would have the requisite expertise to overrule or sustain
that the first appointed officials to the Commission the decision of the FCC, Senator Aquino acknowl-
would be people above reproach and of the highest edged that initially the courts may not have the
capability. capacity to rule on such matters because competition
law policy would be a new field in the Philippines.
On the possibility of regulatory capture, Senator However, he expressed optimism that the required
Aquino said that the President should choose people competency would develop in the years to come. He
of the highest caliber and quality. He pointed out that disclosed that the Office for Competition under the
the term of office of the commissioner is seven DOJ, which was recently created, is already doing
years, which could be extended up to a second term. some level of training with the RTCs and the CA.
He stated that a good set of commissioners could Initially, he said that there would be a need to fund
unlock the country's economy further, thereby provid- some kind of capacity building for judges and justices.
WEDNESDAY, AUGUST 20,2014 175

Senator Angara noted that the courts would be interest of speedy disposition of disputes. Senator
ruling on business decisions, and since the business Aquino agreed, stating that cases do not last long
world moves faster than the judicial world, he asked because the competition commissions in other countries
ifthere are sateguards to ensure the speedy disposition are held in high regard so that large companies would
of the cases, like mergers and acquisitions. Senator just rather pay the fine and follow the rules rather
Aquino replied that the FCC would disallow mergers; than fight it out in courts.
however, if the case is appealed, a TRO might be
filed against the FCC decision. As regards the Asked if parallel cases - administrative or civil
speedy disposition of cases, he admitted that it has proceedings at the Commission as well as criminal
not been provided for in the bill, and he expressed proceedings at the DOJ - could be possible, Senator
openness to amendments on the matter. Aquino answered in the affirmative, saying that each
would require different courses of action.
Asked on the process of notification and on the
manner by which a party could file an appeal if it On the possible overlap between the FCC and
does not agree with the decision of FCC, Senator other regulatory agencies, Senator Aquino explained
Aquino replied that all decisions of the FCC, whether that of the 63 regulatory agencies mentioned in the
favorable or unfavorable, can be appealed to the CA. hearings, 61 do not have competition function, while
the other two, NTC and ERC, have an implied and
Senator Angara noted that under the bill, the power explicit competition function, respectively; thus, in
to issue a TRO is given only to the Supreme Court. terms of overlap, it would only be possible with ERC
He asked on the rationale behind giving appellate and NTC. But he pointed out that as stated in the bill,
jurisdiction to the CA while giving the injunctive the primary jurisdiction over competition cases is with
power only to the Supreme Court. Senator Aquino the FCC. He said that as practiced by other countries,
explained that the bill seek to avoid the experience of a memorandum of agreement (MOA) between the
other regulatory agencies whose decisions were stalled Commission and other regulatory bodies could be
because of the TROs issued by the courts. entered into to decide on who will rule on a particular
He believed that since the Supreme Court is already case; thus, before cases are filed, the Commission
the highest body, the issuance of TROs will go could discuss the case with the ERC, for instance,
through a more stringent process. However, he said which likewise shares a competition function.
that he would be amenable to an amendment to give
injunctive powers to the CA. Senator Angara said Senator Aquino said that if the parties cannot come
that he would have to rethink the suggestion as it to an agreement, they would go through a process
would add another layer for appeals since a CA pursuant to the Administrative Code. He explained
decision can be appealed before the Supreme Counrt. that in all the other cases, competition per se is not
under the jurisdiction of the other regulatory agencies.
Senator Angara stated that the Office for Com- He said that it would be best to understand that the
petition (OFC) has exclusive jurisdiction over the regulatory agencies do not act independently of each
criminal enforcement of the bill. He then asked how other but in partnership and in consonance with the
its powers could overlap with those ofthe Commission. rulings that would be good for the sector. He clarified
Senator Aquino explained that the FCC would tackle that if the case is towards regulation, the regulatory
administrative and civil cases, while the DOJ-OFC agency should rule on it; if the case is primarily on
would preside over criminal cases. He said that the competition, it is the FCC that should decide.
standard of evidence required is different since a
criminal case would require the highest standard of Senator Aquino agreed to Senator Angara's request
proof, which is beyond reasonable doubt, while the to furuish him with a list of the 61 regulatory agencies.
burden of proof on administrative and civil cases is
lower in terms of evidence required. Asked whether it would be necessary for the
FCC and the other regulatory agencies to enter into
Senator Aquino informed the Body that in other a memorandum of agreement, Senator Aquino replied
countries, most competition cases are within the that it may not necessarily be a MOA as he believed
administrative and civil liability level and very few get that a mutual understanding between the Commission
to a criminal level. Senator Angara surmised that the and the other regulatory agencies would suffice.
bias towards administrative proceedings is in the In cases that fall within the jurisdiction of both the
('
 176 WEDNESDAY, AUGUST 20, 2014

ERC and the FCC, he said that it would be better possible merging with anotber company could affect
that the two agencies enter into MOA to clarifY the market rate. He believed though that this opinion
which of them would have jurisdiction. applies only to extremely large companies and
extremely narrow markets. He pointed out that most
On Section 4, Chapter II (Prohibitions and Dis- markets in the country are already quite robust and
qualifications), Senator Angara noted the strict pro- a merger of two companies would not really make a
hibition imposed on the members of the Commission dent in those particular markets. He said that there
from holding other offices or employment. He asked are just a few markets left where there are very few
whether it is the same type of prohibition imposed on players that have a large market share and the
Cabinet secretaries under the Constitution. Senator players, if merged together, would be detrimental to
Aquino believed that they are basically the same. the market of that particular industry.

As regards the aspect of ruling on mergers, Senator Angara opined that in cases where the
Senator Angara asked what information must be merged entity would control the market just by virtue
supplied by the prospective merging entities to the of its position, the Commission could theoretically
FCC. Senator Aquino replied that the primary scuttle the merger.
information that must be supplied should include the
names of the companies that are to be merged as Senator Aquino said that the Commission would
well as an estimate of their market shares. However, be looking at the impact on the economy of an
he surmised that it could initially create a problem industry that is seriously without competition or control
for the Commission because part of its objective is and determine whether or not such merger would
to identifY the industries that could be merged, and to redound to the benefit of the consumers.
issue prior notification to the industries about which
combinations or mergers would actually be needed or Asked on the threshold and whether there are
which ones would not be allowed. indicative measures per industry, Senator Aquino
replied that as he mentioned earlier, if restricted to
Senator Aquino said that in the first two years much, the Commission may not be able to rule
from the time that the Commission is created, there effectively and besides, he pointed out that certain
might be a need for it to undergo the industry checks industries would have different thresholds. He added
required by the law and to draft different rules per that unless the threshold is per industry, it would not
industry. However, he said that after the process be wise to have a hard and fast percentage figure for
has been completed, the mergers would already be all industries.
an easier occurrence.
Asked what the FCC could do in terms of
Senator Aquino admitted that, initially, some looking into a certain activity and deciding per industry,
companies might merge with each other without Senator Aquino said that as an industry matures, the
having been notified ahead that such merger is not thresholds might change down the line. He stressed
allowed. However, he said that the Commission the need for the Commission to be given the leeway
could still issue a cease-and-desist order even after to determine and rule on cases based on the milieu
a merger has already been undertaken. and circumstances of a particular case.

On Section 2, Chapter IV (Compulsory Notifica- Senator Angara noted that the intent really is
tion), Senator Angara asked what the Commission to prevent the Commission from exercising a certain
would be looking at during the 30-calendar day degree of arbitrariness. He said that industries should
period if it is not looking at the prospective market know what allowable behavior is and what is to be
share of the merging or acquiring entities. Senator punished and penalized. He underscored the import-
Aquino supposed that the Commission would be ance of putting a provision in the law which requires
looking at some industries to determine whether or the Commission to publish from time to time the
not there is a healthy market of at least three players. necessary 'thresholds.
He said that the issue of whether or not a prior
notification is needed was debated in the House Senator Angara asked how the FCC would rule
version, but according to an expert, if an enterprise supposing the Philippine Airlines wishes to buy off
is already of a certain size, it would know that its Cebu Pacific Airlines. Senator Aquino replied that
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WEDNESDAY, AUGUST 20, 2014 177

the Commission would have to look at the nature of taken over by Mighty Tobacco and some other
the market, find out whether it is a highly controlled lower-priced cigarettes especially because of the
market or an open market, determine the total market block pricing and marketing mechanism adopted by
share that the merger would have, and look into the other companies.
whether or not people would still have options in the
market even with the merger, Asked whether the Commission would still have
the right to look into the merger of Fortune Tobacco
Senator Angara said that the threshold may vary and Phillip Morris given that it happened a year ago,
from time to time. He said that during the period of Senator Aquino replied in the negative, saying that
amendments, he would introduce an amendment that the law is prospective in nature. He said that once
would forestall a certain amount of arbitrariness on created, the FCC is not allowed to look into a
the part of the regulator. Senator Aquino said that he previously merged company. Also, he clarified that
would welcome the safeguards and would accept the the law does not penalize bigness, only abusive
amendments at the proper time. behavior.

Noting the earlier disclosure of Senator Guingona Asked by Senator Angara if there is no retroactive
about the merging of Smart Communications and Sun application of the law, Senator Aquino replied in the
Cellular, Senator Angara asked on the status of the negative. He said that it would be a very difficult
case as he recalled that the matter was questioned undertaking if the FCC were to analyze everything
by the DOJ. Senator Aquino replied that the merger from the time that it started.
was a done deal.
Senator Angara presented a hypothetical case,
Senator Angara recalled that before the enact- where the Commission allows a merger in 2015 but
ment ofthe sin tax law, Fortune Tobacco and Phillip discovers in 2017 that the merged entity has become
Morris merged, effectively getting an 80% to 90% too large that it prevents desirable competition in the
share ofthe market. Asked if the Commission would market. He asked whether the Commission would
also look into the merger, Senator Aquino said that have the power to break up the merger. Senator
the Commission could seriously look at the merger Aquino replied that the Commission would have the
considering that it involves a large percentage of power to file charges based on prohibited acts defined
the market, but it might also help to look into the fact in the law but not to break up a merger. However,
that there is currently another player in the market, he said that in case there is an attempt to merge
Mighty Tobacco, which is giving Fortune Tobacco companies and a cease-and-desist order has been
and Phillip Morris a run for their money in the sense issued by the FCC, the parties will have to go
that its price is quite competitive. In that sense, he through the court process to appeal; if by the end of
said that it could be argued that even with the the legal process the case was decided in favor of
merger, there are still other players in the market the FCC, only then can the Commission be allowed
who are able to offer a price lower than what the to break up a merger.
dominant player offers. He said that it is important
to look into whether the mergers would eventually On the matter of prospective merger, Senator
control the prices of a particular sector and whether Aquino affirmed that the FCC has the power to
the consumers would have other options or choices disallow mergers. He said that as a general principle,
available, as he pointed out that what is prohibited is FCC does not break up merged institutions, especially
the absence of choices or options for the consumers. when the merger was done before the enactment of
He said that even with the mergers, there are still the law. He stated that the companies involved
up-and-coming companies that can compete with should inform the FCC in advance of the merger in
the dominant players in the market and offer a accordance with the prior notification provision.
lower price.
Senator Angara cited the merger of Lafarge
At this point, Senate President Drilon confirmed and Holcim, which are botb cement manufacturers.
that before the passage of the sin tax law, Phillip He said that it was the European Commission which
Morris had a 92% share of the market and that the told both companies to divest three of their holdings
playing field was levelled when the law was passed in the Philippines, although their case in still pending
since a portion of the market of Phillip Morris was in Europe. He then asked if the FCC has the same
ft'
178 WEDNESDAY, AUGUST 20,2014

authority to order the merging companies to sell their of Senators Cayetano (P), Villar and Sotto as
plants in a certain place. members of the Senate panel in the Bicameral
Conference Committee on the disagreeing provisions
Replying in the affirmative, Senator Aquino stated of t~e following bills:
that in its ruling. FCC would have to be specific as
I. Senate Bill No. 2274 and House Bill
to which parts of the company need to be decoupled,
No. 4553 (Open Learning and Distance
as found in the merger process and prior notification
Education Act of 2014); and
provisions in the measure.
2. Senate Bill No. 2272 and House Bill
Asked on the possible consequences of companies No. 3575 (Ladderized Education Act
failing to give the FCC prior notification of their merger, of 2014).
Senator Aquino replied that the Commission has the
power to decouple them. ADJOURNMENT OF SESSION

At this juncture, Senator Angara said that he Upon motion of Senator Cayetano (A), there
would continue his interpellation on the bill the being no objection, the Chair declared the session
following week. adjourned until three o'clock in the afternoon of
Tuesday, August 26, 2014.
Senator Aquino thanked Senator Angara for his
in-depth questions and hope that he could further It was 5:34 p.m.
help refine the measure during the period of
amendments. I hereby certify to the correctness of the
foregoing.
SUSPENSION OF CONSIDERATION
OF SENATE BILL NO. 2282

Upon motion of Senator Cayetano (A), there

~AR'i1t::
being no objection, the Body suspended consideration
of the bili.
Secretary of the Senate ---
CONFEREES 0< /-r~
Upon motion of Senator Cayetano (A), there
being no objection, the Body approved the designation Approved on August 26, 2014 .