Thursday, October 12, 2017

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DBM recommends Northrail deactivation

The Budget department is recommending the deactivation of North Luzon Railways Corp. (Northrail) under a government plan to trim the number of state-owned firms.

The Governance Commission for GOCCs (GCG), Budget Secretary Benjamin Diokno said, is currently also considering the abolition or mergers for other government-owned and –controlled corporations.

“For… the Northrail, we are recommending for its deactivation because it makes a lot of sense,” Diokno told reporters in an interview.

Northrail, a subsidiary of the Bases Conversion and Development Authority (BCDA), was created in 1995 to develop construct, operate and manage a railroad system that would serve Metro Manila, Central Luzon and Northern Luzon.

A project to rehabilitate and upgraded an existing line ended up being shelved in 2011 over corruption allegations and Northrail was subsequently embroiled in an arbitration case filed by a Chinese contractor.

The Duterte administration has revived the project but placed it under the Department of Transporation, prompting the BCDA last year to call for Northrail’s dissolution.

Diokno said deactivating a GOCC means the firm will no longer receive a budget from the national government, which means that it will no longer be able to operate.

This is different from abolition, which requires the repeal of the law that created the GOCC.

“[T]here are agencies with 11 board members but only have six employees. It does not make sense. It should be abolished to save on the office space, the cars etc.,” Diokno noted.

GOCCs were initially said to number 158 but the GCC has said that this is being revised following reviews that found several in the list to be research institutions or already inoperational. Others were added once these were “discovered”, the agency said.

As of mid-2016, 108 GOCCs are listed as under GCG.

The agency has said that its long-term goal is to reduce the number of state-run firms to less than 90.

Duterte names OICs for DICT, DOH

President Rodrigo Dutere has named officers-in-charge of two departments, Information and Communications Technology, and Health, his spokesman Ernesto Abella said Thursday, October 12.

Undersecretary Herminigildo Valle was appointed OIC of the DOH following the recent rejection of Paulyn Ubial by the Commission on Appointments.

Undersecretary Eliseo Mijares Rio, on the other hand, will be in charge of the DICT, whose secretary, Rodolfo Salalima, resigned last month.

Facebook and Instagram down: Social media users baffled after both sites suffer outages

Facebook and Instagram users have been left baffled after both sites appeared to go down across the UK and Europe.

Website Downdetector showed a huge spike in reports of outages for both sites from around 4 p.m. onwards.

Thousands of people reported “total blackouts” and log-in issues with both of the social media giants.

Fans of the sites have taken to Twitter to lament the outages and share tongue-in-cheek memes.





A map by Downdetector shows that London was one of the worst-hit places for outages.

Mainland Europe was also affected, as well as cities on the west and east coasts of the US.

Two thirds of the problems reported with Instagram, which is owned by Facebook, were associated with the main news feed.



Higher Level Kids wins DreamPlay’s dance tilt

City of Dreams Manila’s DreamPlay, which is Dreamwork’s-inspired interactive play space, staged its second nationwide children’s dance competition recently dubbed “King Julien Dance Off” to celebrate its second year anniversary and mark its one million visitors to date.

Higher Level Kids, an all-boys group from Cavite, bested seven other finalists. First runner-up was Ace of Spades, a mix group of boys and girls from Angono. The other six finalists were Southernside Dance Theater, Super Kids, Small Fries, The Class, GFAM, and Mover’s Impact.

The Higher Level dance group is also known for their memorable performances on “Dance Kids,” a dance competition and reality TV show aired on ABS-CBN in 2015 and “Super Kids” in Cologne, Germany in 2016.

The judges included City of Dreams Manila General Manager for Non-Gaming Operations Marlon Hirsh, City of Dreams Manila Director of Public Relations Romina Gervacio, G-Force Senior Choreographer Gelai Aguzar, and celebrity couple Troy Montero and Aubrey Miles.

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Jazz fest

Greenfield District marked the half-year anniversary of its weekly music event, “Jazz Fest Thursdays,” last Oct. 5. It featured jazz renditions by popular bands Extrapolation and The Brass Munkeys.

Atty. Duane A.X. Santos
“Our goal at the beginning was to create an event in an elegant setting where friends, families, and music lovers can meet to enjoy live jazz performances and great food. I’m glad we were able to fulfill that vision and remain consistent to it. So many enthusiasts come here to celebrate the beauty of jazz music in an open space filled with excellent food choices,” said EVP/GM of Greenfield Development Corp. Atty. Duane A.X. Santos.

• • •

Tidbits: Happy b-day greetings today, Oct. 12, go to awarded TV host Marissa del Mar, former beauty queen turned-actress Pilar Pilapil, Willie Rebano, Serafin Pua, Pilar Ongking, Pilar Tanjangco, Antonio Santos, Dr. Morena Canizares, Jane Go, Noel Y. Regala, Marine Engr. Erwin Soriano of Bacoor City, Cavite; Imus City Mayor Emmanuel L. Maliksi, Alex Broce, Vina Rose Medina Soriano, Pilar Mateo, Baby O. Garcia, Angelia Jade Boaquina, Jenny Ramos Mahinay, Carl John Barrameda of Star Magic and Saicy A. Aguila, and Tessie Lozano-Dunn of Wales…Oct. 13 celebrators are Tito Sy, publisher Oscar Jornacion, Letty Ruiz, Dr. Charing M. Santos, Inday Rosales, Norma Lara, Carina Dacer, Marlette Pineda, Katrina E. Panlilio, Elizabeth Hammond, Vangie Jacinto, Rene Perez, Eriel Cortez, Annette Africano, Pinky Masigla, Irma S. Gumalay, Aika entertainment writers Len Llanes and Rose Garcia

Gov’t to deactivate NorthRail GOCC

The Governance Commission for Government-Owned or -Controlled Corporations (GCG) has recommended for deactivation the state-run firm that was formed to oversee the controversial NorthRail project.

Budget Secretary Benjamin E. Diokno, an ex-officio member of the GCG, told reporters recently that deactivating the North Luzon Railways Corp. meant that the GOCC will no longer be provided a budget, hence cannot operate anymore.

“It was not yet abolished; I think you need a law to repeal it,” Diokno said.

A flagship project of the Arroyo administration, the 80-kilometer railroad was to link Caloocan City with an international airport in the former Clark Airfield in Pampanga.

When he took over in 2010, former president Benigno Aquino III ordered a review of the contract between NorthRail and the China National Machinery and Equipment Corp. Group (CNMEG) to build the railway.

This has been hounded by allegations of overprice, its cost rising from an initial $503 million to about $2 billion, according to reports.

A 2005 study by the UP Law Center showed that the NorthRail contract had been improperly packaged as an executive agreement to evade public bidding.

In 2007, the Monetary Board approved a $500-million long-term loan from ChinaEximbank that would finance the first section of Phase I of the project.

The completion of the first phase of the project, a 42-kilometer train line that will connect Caloocan City to Malolos City in Bulacan province, was earlier moved to 2013.

In 2012, the Supreme Court ruled that CNMEG-NorthRail agreement was not an executive agreement, and that CNMEG was not immune from suit.

It remanded to the Makati regional trial court for further hearing a case questioning the validity of the contract, and the loan agreement.


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DBM moves to ‘deactivate’ Northrail

Non-performing GOCCs to be abolished

By Chino S. Leyco

The Department of Budget and Management (DBM) wants to stop government’s support to the North Luzon Railways Corp. (Northrail) starting next year as the Duterte administration plans to abolish or merge nonperforming state-owned companies.

Budget Secretary Benjamin E. Diokno said they are recommending the “deactivation” of Northrail, citing the Department of Transportation-attached agency has more number of board members than employees.

“We are recommending  deactivation of Northrail because it makes a lot of sense. For example, the agency has 11 board members and only six employees, which is absurd,” Diokno told reporters in a recent interview.

Asked about the term “deactivation,” Diokno explained that it means the Duterte administration will give zero budget to Northrail, noting the DBM has no authority to abolish any government-owned and controlled corporation (GOCC).

Northrail is under DOTr and a subsidiary of the Bases Conversion and Development Authority. The state-owned firm is in charge of constructing, operating, and managing railway systems servicing Metro Manila, Central Luzon, and Northern Luzon.

Meanwhile, Diokno also said that the Duterte administration is planning to reduce the number of GOCCs to save up office space, vehicles, taxpayers money, among others.

The DBM chief cited that among the GOCCs eyed to be merged are the housing agencies, while they are also contemplating on dividing the mandate of the Department of the Interior and Local Government (DILG).

“Rightsizing does not really mean reduction, in fact we are thinking about a Department of Housing and Urban Development, so the housing bodies will be merged. Another proposal will be Department of Local Government, split the local government and homeland security,” Diokno said.

Diokno is currently pushing for the passage of Rightsizing the National Government Act of 2017 that once passed into law will abolish executive agencies with overlapping or redundant operations and functions.

According to Dikono, this will result in ineffective and inefficient in the delivery of public  services.

Diokno, meanwhile, emphasized that the program is not about forced retirement or separation of affected regular employees.

Regular personnel whose positions would be affected in the implementation of the law shall have the option to avail of retirement benefits and separation incentives, or be placed by the Civil Service Commission in agencies needing additional personnel.