Documente Academic
Documente Profesional
Documente Cultură
Senate
Pasay City
Journal
SESSION NO. 75
Monday, May 26,2014
SIXTEENTH CONGRESS
FIRST REGULAR SESSION
SESSION NO. 75
Monday, May 26, 2014
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250 MONDAY, MAY 26, 2014
Letter from the Secretary General of the House of To the Committee on Education, Arts and
Representatives, informing the Senate that on 19 Culture
May 2014, the House of Representatives passed
the following House bills, in which it requested House Bill No. 4271, entitled
the concurrence of the Senate:
AN ACT REDUCING THE RETIREMENT
House Bill No. 1222, entitled AGE OF SURFACE MINE WORKERS
FROM SIXTY (60) TO FIFTY (50)
AN ACT ESTABLISHING AND MAIN- YEARS, AMENDING FOR THE
TAINING THE OFFICE OF VETERANS PURPOSE ARTICLE 287 OF
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MONDAY, MAY 26, 2014 251
House Bill No. 4275, entitled House Bill No. 1846, entitled
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252 MONDAY, MAY 26, 2014
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MONDAY, MAY 26, 2014 253
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254 MONDAY, MAY 26, 2014
House Bill No. 694, entitled To the Committee on Justice and Hnman
Rights
AN ACT INCREASING THE BURIAL
ASSISTANCE FOR VETERANS COMMUNICA nONS
FROM TEN THOUSAND PESOS
(PI0,000.00) TO TWENTY THOUS- Letters from Atty. Enrico L. Espafiol, dated 30 April
AND PESOS (P20,OOO.OO), AMENDING 2014, submitting to the Senate the 2013 Annual
FOR THE PURPOSE REPUBLIC Reports of the following: Smart Communica-
ACT NO. 6948, AS AMENDED, tions, Inc., in compliance with Republic Act
OTHERWISE KNOWN AS "AN ACT No. 7294; Smart Broadband, Inc., in compli-
STANDARDIZING AND UPGRADING ance with Republic Act No. 8337; Connectivity
THE BENEFITS FOR MILITARY Unlimited Resource Enterprise, Inc., in compli-
VETERANS AND THEIR DEPEN- ance with Republic Act No. 9130; and Prime
DENTS" AND APPROPRIATING World Digital System, Inc., in compliance with
FUNDS THEREFOR Republic Act No. 8992.
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MONDAY, MAY 26, 2014 255
and Proposed Senate Resolution No. 439, Seuator Estrada asked Senator Cayetano (A) if
introduced by Senator Marcos Jr., entitled he was able to ask the Chairman of the Committee
on Accountability of Public Officers and Investiga-
RESOLUTION DIRECTING THE SENATE tions for an update regarding the Malampaya Fund
COMMITTEE ON PUBLIC WORKS scam investigation which was postpoued last Thursday,
TO INVESTIGATE, IN AID OF May 22, 2014. Senator Cayetano (A) replied that
LEGISLA TION, THE ALLEGED they were supposed to meet before the session
SUBSTANDARD AND OVERPRICED started; however, Senator Guingona infomled him
BUNKHOUSES BUlL T FOR THE that he was waiting for the affidavit of Ms. Napoles
SURVIVORS OF SUPERTYPHOON from the DO] and that he would be attending some
"YOLANDA" IN THE VISA Y AS meetings afterward.
REGION, AND TO INSTITUTE
CORRECTIVE MEASURES TO Senator Cayetano (A) informed the Body that
ENSURE THE SAFETY AND in their phone conversation, Senator Guingona, in
SECURITY OF THOSE DISPLACED esseuce, gave the assurance that the Committee on
BY THE SAID CATASTROPHE, Accountability of Public Officers and Investigations,
being the committee of the people, would accordingly
recommending the adoption of the recommend- schedule any resolution and investigation asked for
ations and their immediate implementation. by the Members for truth to come out; and that
according to Senator Guingona, he would like to see
Sponsors: Senators Marcos Jr. and Defensor the affidavit of Ms. Napoles first before scheduling
Santiago any investigation where she would state under oath
her knowledge on the matter. He said that indeed
To the Calendar for Ordinary Business several other investigations have been filed by other
256 MONDAY, MAY 26, 2014
Members""such, ,~s ,the reopening, of the PDAF Asked by ,Senator Estrada whether he is in favor
investigation, and he hoped that Senator Guingona of resuming the investigation of the alleged PDAF
would indeed be able to read the affidavit first scam, Senator Cayetano (A) answered in the affinn-
before they both start talking about setting the dates ative, saying that in light of recent revelations by
of the investigations, Ms. Napoles, the only way to find out the truth is to
confront her in a Senate hearing. He added that he
Asked whether Senator Guingona has given a would also like to ask her questions, and even allow
particular date for the Malampaya Fund scam hearing, her to ask him questions. However, he acknowledged
Senator Cayetano CA) reiterated Senator Guingona's that the decision to reopen the PDAF investigation
desire to look into the affidavit ofMs, Napoles first lies with the Conunittee on Accountability of Public
He added that the committee chainnan has the pre- Officers and Investigations.
rogative to decide which investigation to open or reopen
first, unless overruled in accordance with the Rules. Senator Estrada suggested the inclusion of
Benhur Luy to those who would be invited in the
Senator Estrada recalled that in some interviews event the Conunittee on Accountability of Public
with the media, Senator Guingona had stated that Officers and Investigations decides to reopen the
after the Conunittee wrapped up the PDAF scam investigation on the PDAF scam. He lamented that
hearing, it would investigate the Malampaya Fund despite Luy's providing a copy of his files to the
scam even without the affidavit of Ms. Napoles. Philippine Daily InqUirer which included the names
Asked if Senator Guingona can proceed with the of other legislators, only Senators Emile, Revilla and
investigation based simply on the COA audit report, himself were tagged - their photos published - as
Senator Cayetano CA) answered in the affinnative, being involved in the scam.
recalling that he actually filed a resolution calling
for an investigation of the Malampaya Fund scam Senate President Drilon infonned the Body that
because of its close connection with the dealings Senator Guingona had recommended the issuance of
of Ms. Napoles; however, even before the investiga- a subpoena duces tecum for the files to be brought
tion could start, various events took place, such as to the Senate, but Benhur Luy had responded that
the arrival of Ms. Ruby Tuason, the testimony of the file was no longer with him because he had
Mr. Cunanan, the news about Atty. Gigi Reyes' already turned these over to the NBI. It was for that
return to the country, and the "Napolist." He said reason, he said, that another subpoena duces tecum
that the scheduled hearing last Thursday was post- was issued to the NBI upon the recommendation of
poned because, according to the committee chair, Senator Guingona for the production of such files.
there was lack of resource persons from the COA.
He agreed with Senator Estrada that the investigation Since the hard disk is a physical device which
could start based on the COA audit report. He said stores digital files and could easily be reproduced,
that other than those officially stated, he could not Senator Cayetano (A) noted that nobody knows if
speak on behalf of Senator Guingona regarding his the file given to the Philippine Daily Inquirer was
reasons for the postponement of the investigation and an original or just a copy. He also mentioned that
about the schedule of the investigations, Secretary De Lima was still consulting with the
Ombudsman whether the files should be turned over
Asked why Senator Guingona has not been to the Conunittee on Accountability of Public Officers
attending the plenary sessions, Senator Cayetano (A) and Investigations or an authenticated copy should
said that for that day, May 26, Senator Guingona be submitted instead. He assured the Body that all
would be attending to urgent matters as well as the documents and pieces of evidence would be turned
two meetings. over to the conunittee to make sure that justice
would prevail.
At this juncture, Senate President Drilon stated
that in a letter addressed to him by Senator Guingona's Senator Estrada said that based on infonnation
chief-of-staff, Atty. Dante Atienza, dated May 26, that he gathered, Benhur Luy had given his files to
2014, Senator Guingona would not be able to attend the NBI and then to the Philippine Daily Inquirer.
the regular session of the same date because of an He lamented that despite the inclusion of a number
important meeting with constituents within Metro of legislators in the files, the newspaper chose to
Manila. implicate only three senators.
MONDAY, MAY 26, 2014 257
Senator Estrada. said that a newspaper should recalled the ·statement of Senator Guingona that after
not be allowed to publish photos of legislators with the Napoles NOOs, he would investigate the other
their names on it without any solid pieces of evidence NOOs as well.
because they have their names and honor to protect
Senator Estrada insisted that Senator Ouingona
Senator Cayetano (Al stated that there is a should conduct the hearings simultaneously. Senator
process of accumulation and verification of evidence, Cayetano (Al added that it should be done with the
for instance, distinguishing betwen the COA report same zeal found in previous investigations.
with whistleblowers and additional evidence of
anomalies involving legislators, and the COA report Senator Estrada questioned why the Blue Ribbon
listing the legislators who have alleged dealings with Committee only investigated the NOOs connected
NOOs but were fully liquidated. He affirmed that in with Mrs. Napoles, zeroing only on the three senators,
the last two weeks, Benhur Luy submitted certaiu and why it did not investigate the other NOOs not
names to the newspapers which were published even connected with Mrs. Napoles. He then reiterated his
without accompanying documents. He said that what request to subpoena the digital files submitted by
added more to the confusion was gossip that was Mr. Benhur Luy to the Philippine Daily Inquirer,
sometimes substituted as truth where the accused which were being used by the newspaper as basis
became the accuser. He agreed that the best way to for publishing their report, so that the Body would
find out the truth is to hold hearing to find out who know if Benhur Luy's copy was authentic.
is saying the truth.
Senator Cayetano (A) said that there was already
Moreover, Senator Cayetano (Al believed that a subpoena issued to the NBI and the Philippine
the COA and the DBM should come out with the Daily Inquirer to produce the files.
documents and for the DOJ, which has been quick
in accusing people, to reveal the contents of the list The Senate President said that he was leaving
that Benhur Luy entrusted to them months ago, and the matter to the chairman of the Blue Ribbon
to clear the names of those who are not involved or Committee.
if there is no evidence of their involvement in the
scam. REMARKS OF SENATOR SOTTO
Senator Cayetano (Al sympathized with everyone Senator Sotto noted that in the discussions, there
mentioned but he reiterated that there is a process was mention of Benhur Luy's and Mrs. Napoles'
of verification and a process of accumulation of hard drive, as well as hard drive in the possession of
evidence. He stated that the whole country is wracked others which a lawyer claimed were not authorized.
by the PDAF scandal and the Body is searching for He suggested that the matter be looked into by the
a process in order to know the whole truth. He said Committee on Science and Technology because of a
that Senator Estrada, in his interpellation on the possible violation of Section 4 of the Cybercrime
Sandiganbayan bill, asked for fairness because Prevention Act
he was hoping that in the process he would be able
to fully defend himself and that truth will come out REFERRAL TO COMMITTEES
one way or the other.
Upon motion of Senator Cayetano (A), there
But Senator Estrada pointed out that the COA being no objection, the Chair referred Senator
report zeroed in only on the eight Napoles NOOs but Estrada's inquiry and discussions on the PDAF scam
it did not give attention to the legislators involved in to the Committee on Science and Technology, and to
the remaining 74 NODs. the Blue Ribbon Committee.
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258 MONDAY, MAY 26, 2014
East Asia, particularly the session on Designing ance of inclusive growth and highlighted the
Solutions for Climate and Resource Risks, to wit: need to address unemployment among youth
and gaps in the agriculture sector.
The Philippines' hosting of WEF gave us In climate risks, there could sometimes be no
the opportunity to tell the region and the world second chances. Because of climate change,
that we are back in business and that despite the poverty alleviation and achieving food security
calamities and the global financial crisis, our will become increasingly difficult, new poverty
economy has grown by more than 6% over traps will arise as existing obstacles remain, and
the past eight quarters and, last year, it grew economic growth will slow down.
by 7.2%.
The United Nations said economic losses
Inclusive growth, equitable progress and from disasters are "out of control." We should,
sustainable development were the key issues in fact, reverse this situation. We need to be in
discussed. But one notable message that was control and resilience should be at the core of
brought to the fore in several sessions is our development policies and strategies.
resilient growth.
No less than President Aquino, during the REFERRAL OF SPEECH
Opening Plenary, said that the impacts of climate TO COMMITTEE
change must be considered in all our develop-
ment plans and that we are gradually moving Upon motion of Senator Cayetano (A), there
"towards a direction that includes resilience in being no objection, the Chair referred the privilege
the face of disaster." speech of Senator Legarda to the Committee on
Resilience should be integral to both Climate Change.
corporate and public governance.
We can ensure out economic resilience by
COMMITTEE REPORT NO. 26
reducing disaster risks, letting investors be ON SENATE BILL NO. 2212
aware of it, and requiring business investments (Continuation)
to take into account disaster risk reduction and
management measures. Upon motion of Senator Angara, there being no
objection, the Body resumed consideration, on Second
As legislators, we are urged to address gaps
in policies through measures that will liuk Reading, of Senate Bill No. 2212 (Committee Report
science and policy~making, finance mechanisms No. 26), entitled
for climate and energy solutions - including
energy efficiency, clean technology and green AN ACT TO ACTIVELY PROMOTE
infrastructure investment, and enable the private ENTREPRENEURSHIP AND FINAN-
business and financial community to support CIAL EDUCATION AMONG FILIPINO
comprehensive climate and energy policies and YOUTH.
to invest in climate and clean energy solutions.
These messages were echoed by the co- Senator Cayetano (Al stated that the parlia-
chairs of the 23,d World Economic Forum during mentary status was still the period of interpellations.
the Closing Plenary.
Co-chair Takeshi NUnami, CEO of Lawson Thereupon, the Chair recognized Senator Aquino,
in Japan, stressed that resilience is important sponsor of the measure.
and technology must be used to combat
disaster risks. SUSPENSION OF SESSION
Co-chair Atsutoshi Nishida, chairman of the
Board of Toshiba Corporation in Japan, said that Upon motion of Senator Cayetano (A), the Chair
we must aim for resilient East Asia because the suspended the session.
impact of natural hazards can affect sustain-
ability. We should train our sights on a climate- It was 4:05 p.m.
resilient future, prepare for disasters, protect the
environment and use clean techniques.
RESUMPTION OF SESSION
Meanwhile, co-chair James T. Riady, CEO of
Lippo Group in Indonesia, stressed the import- At 4:05 p.m., the session was resumed.
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MONDAY, MAY 26,2014 259
2. Financial literacy and entrepreneurial skills Senator Aquino lamented that even graduates
in the country's educational system. from the best colleges in the country are not
guaranteed to find the right job, especially with the
Senator Aquino explained that when the bills of current underemployment rate of 20%. He said that
some of the Members were referred to the Committee, similarly with the World Economic Forum mentioned
there were different modalities being suggested - by Senator Legarda, which could bring investors and
either at the high school level; at the college level; create more jobs in the country, the measure would
at the tertiary level; or at the alternative education at the same time create a parallel path that could
level. He said that one study actually showed that the help young people put up their own business as
best time to teach financial literacy is at the grade another viable option for them considering that not
school or when one is actually less than 10 years old. everyone could have the opportunity to land a job.
He said that the Committee put the suggestions
altogether into the strategy of the bill which directs Senator Aquino explained that instead of merely
the DepEd, CHED, and TESDA to introduce financial sitting idle while waiting for a job opportunity, or
literacy and eventually entrepreneurialism into their settling for a job that is not in the line of his expertise,
courses. one can consider going into entrepreneurship if he
would be given the right support in an enabling
Senator Aquino hoped that the measure could environment.
create some changes in terms of the way that the
country would be able to support its entrepreneurs, Senator Cayetano (A) noted that the ASEAN
starting with financial literacy at a very young age - Integration plan would allow more opportunities for
which is savings, the value of money, the cost of work, different Asean countries to engage in entrepreneur-
the value of work - that would eventually lead ship and business. He said that while the neighboring
towards an entrepreneurial mindset down the line. countries were already exploring the types of business
they could establish, for instance, in Vietnam, Cambodia,
3. Create an enabling financial environment China or even the Philippines, the mindset of Filipinos
for young people to get into entrepre- is still to look for job opportunities. In response,
neurship. Senator Aquino said that with such a mindset, Filipinos
260 MONDAY, MAY 26, 2014
would end up seeking job in the companies that the CAl, saying that he would like to look at the measure
other countries would establish, He said that while vis-a-vis the other bills that he sponsored like the Go
the ASEAN Integration is largely frowned upon in Negosyo bill which would all fit together to create an
the business sector, Filipinos should be reminded that enabling enviromnent for entrepreneurs. At this point,
the country offers good products, and services and he said that Senator Villar, who is one of his main
currently has the best macro-economic growth, the partners in entrepreneurship, has expressed her
reason why other countries are similarly worried that intention to be a cosponsor of the measure.
the Philippines could enter their trade space. He
agreed with Senator Cayetano CAl that the mindset Asked if there would be a proper framework,
should be to utilize the opportunities. Apart from the curriculum and competent teacher to lead graduates
bill, he hoped that the government could create an in possessing the proper knowledge and abilities to
enabling environment for entrepreneurs in order to enter into c1ifferent forms of businesses, Senator
maximize the current market which, in his opinion, Aquino said that there are provisions in the bill that
is not being maximized by SMEs, and then explore would enable DepEd, CHED and TESDA to provide
other markets like the ASEAN which seemed to further training for the teachers to ensure competence.
be the next logical choice, being neighbors and He said that the K+ 12 program would require
considering the country's commitment to have an teachers who are specially trained because the tracks
integrated market by 2015. would be specific like the arts track or skills building
track which is technical or vocational type, He stated
Senator Cayetano (Al said that he was glad that the measure would bring entrepreneurship track
Senator Aquino used the term "enviromnent," as he at the forefront. Considering the study made by
believed that things should not be considered in Citibank a few years ago which revealed that the
isolation. To illustrate, he said that if Singaporeans Philippines ranked low in terms of financial literacy,
would be asked about peace and order, they would he opined that with more reason that financial literacy
reply that it is a matter of setting the environment or should be taught at the grade school level which
a relationship among different factors. He narrated would simply be a matter of saving and appreciating
that while reading about countries with a lot of micro the value of money which, he said, could ultimately
and small enterprises, he was surprised to discover become a life skill in the same way that honesty and
that 95% of the employees in Korea are from micro, being a good neighbor is being taught to young
small and medium enterprises, because all along he children. He said that children who are taught fmancial
thought of Korea as synonymous to big companies literacy at a very young age are envisioned to
such as Samsung, and in the same manner that in become entrepreneurs or would be able to utilize the
the case of quality products, he would think about money they have saved. He explained that DepEd
Japan which has a long tradition and history of large would have a specialization training program for
companies where people would go to work after teachers at each stage.
college and would stay until retirement. He realized
that the so-called "rising tigers" or the economies At this juncture, Senator Cayetano CAl suggested
that are currently being envied are not the countries that the bill could consider offering some sort of
with the biggest companies but those with interaction partnership with some sectors like the LGU and send
of different sizes of enterprises. At this point, he grade school or high school students to factories,
quoted Senator Villar, known for being a successful pharmaceuticals or call centers to encourage entre-
entrepreneur, as saying that it is not only a matter of preneurship instead of simply inviting businessmen to
having enough funds but it is the knowledge, wisdom conduct exposure trips so that learning outside of the
and experience that could make one succeed in classroom would become a standard. He noted that
business. He praised the bill because it did not only in big private schools, alternative classroom or learning
deal with funding but also about growing up and experiences are being provided to students like inviting
having the right mindset, enviromnent, and learning the parent of a student who happened to be the
tools to have a successful business. While he recog- president or CEO of a big company to speak before
nized that a lot of businessmen suffered failures in their a class and encourage students to become successful.
first ventures, he believed that they possessed the To further illustrate, he noted that in the United
right mindset that made them successful eventually. States, both in movies and in real life, the guidance
counsellor is seen as playing an active role in guiding
Senator Aquino agreed with Senator Cayetano students towards possible careers, providing them
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MONDAY, MAY 26, 2014 261
with brochures from colleges and orientations about Senator Cayetano CA) suggested the inclusion of
specializations, among others. He lamented that in surmner apprenticeship programs for high school
the Philippines, a guidance counsellor is merely seen students so that they could have the same trainings
as a disciplining authority to whom erring and difficult given to college students, which could be a two-
students are referred. week or one-month exposure to business operation
that could inspire and encourage them to pursue
Senator Cayetano CA) believed that it is actual entrepreneurship.
interaction with businesses in the community that
could catch the interest of students instead of mere Noting that the bill also seeks an institutionalized
theoretical teaching. Senator Aquino agreed, noting funding mechanism, Senator Cayetano CA) asked how
that the proposal can be best tackled in the Imple- the proposed funding would be pushed and whether
menting Rules and Regulation although he expressed it would be different from the GFIs or similar with
willingness to include the same in the amendment. the Negosyo Fund. In response, Senator Aquino said
that the bill provides a simple guarantee fund because
Senator Cayetano CA) believed that if CEOs and a direct funding from the government could some-
high-level officials of companies actively participate times not yield the desired results because the rates
in the Brigada Eskwela program, they would also be are not high enough. He said that the idea was to
willing to spend a few hours of their time to give spur the private sector to provide funds for the youth
presentations in schools. He stated that this should by putting up the corresponding guarantee fund. He
not be left to the creativeness of the principal or to stated that the matter could be taken up extensively
the connections of the local executive in the area, but during the preparation of the IRR with the proper
should become an institutional mechanism to enable government institutions and in order that funding
business leaders of the community to actually interact could come from multiple sources. He disclosed that
with the schools. To illustrate, he cited the case of call consultations were already made with a few GFIs
centers wherein out of 100 applicants, only six to 12 including the Land Bank of the Philippines and other
are being hired. He said that by simply improving the agencies. He added that the Committee would be
communication and language skills being taught to open to suggestions.
students could result in a 20% to 30% increase in the
number of potential hires. He believed that the Senator Cayetano CA) said that as he went
business sector would be willing to help if presented around the country for the Presyo, Trabaho, Kita,
with the right mechanism. Kaayusan Project and the "Anti-5/6," he was told
by bank executives that there are still a lot of thrift
Senator Cayetano CA) noted that the Brigada banks because people are still intimidated in trans-
Eskwela waS made possible because it provided a acting with big banks, and that the business practice
mechanism of helping that did not require them to of filling up forms and the requirements of Bangko
perform the necessary coordination. He agreed with Sentral are the main deterrents to borrowing formally.
Senator Aquino that the matter would be best He said that the "5/6" system of loan is still rampant
addressed during the period of amendments, or in the in the country and in almost all government offices.
crafting of the IRR so that the DepEd and the
business clubs could actively participate in creating a Senator Cayetano CA) said that he was in a
framework that would allow them to adopt the quandary on whether or not to include funding in the
appropriate mechanisms in each school district. bill because if it involves a large amount, the bill
would be harder to pass. However, citing the budget
Senator Aquino agreed, saying that K+ 12 has increase for the Pantawid Pamilyang Pilipino
actually made it incumbent upon the school to COor- Program C4Ps) from P62 billion to PIOO billion for
dinate with the business sector considering that at the 2016, he estimated that if PI billion would be allotted
11" and 12'" grade, a student would be expected to have for micro, medium and small entrepreneurs in each
acquired the learning skill that could secure local region in the country, it would only be less than P20
employment immediately. He stressed that there is a billion. He said that the funding thereof may be
need to convene the DepEd and the local businesses backed up by an accompanying bill.
to talk about the courses that could be best offered
or provided not only in pursuing the measure but also Senator Cayetano CA) said that if a private
in the regular course of pursuing the K+ 12 Reform. company like Puregold can encourage their sari-sari
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262 MONDAY, MAY 26, 2014
store clients by.constructing the stores for them and foundation for entrepreneurship is built for secondary
picking some outstanding retailers by going beyond and tertiary schools.
lending, there should be a way for government to do
the same. He stated that there are successful entre- As regards the program's project grants and
preneurs who need money to expand their busi- loans for the youth, Senator Aquino said that the
ness and this is where the funding should come in. amounts would just be small to get somebody started;
He said that the DSWD is doing this at certain for instance, a project grant where students would be
levels. He stated that in the last budget, he proposed given projects while learning entrepreneurship until it
P500 million, and with the help of Senator Escudero is time to scale up to a regular business wherein a
and Senate President Drilon, PlOO million was allotted loan would be necessary. He averred that it is the
for micro-finance. He hoped that the administering reason why both facilities are mentioned in the law,
agency would show good results during the budget so that they would not be constrained down the line.
hearing in order to convince the members that they
can put in more funds. Senator Villar said that when the students in high
school are studying entrepreneurship, there should be
At this juncture, Senator Villar inquired if there a budget for their projects and for them to practice
has been a study which shows that it would be more what they have learned. She stated that the grant of
cost-efficient to introduce entrepreneurship in primary loans to certain ages and levels of education should
school than in secondary school. Senator Aquino be clarified in the bill. Senator Aquino said that the
replied that a Citibank study showed that one of the loans can come in when it is time to venture into a
best periods to actually teach financial literacy and real business.
entrepreneurship is at the grade schooVelementary
level which would further bridge entrepreneurialism Senator Villar expressed the importance of
at the secondary and tertiary levels. By putting it encouraging micro, small and medium enterprises
together, he said that it would strengthen the goal of (MSMEs) because it comprises 90% of all busi-
financial literacy and entrepreneurship in schools. nesses in the Philippines, 50% of which are in
the food sector. In fact, she said that MSMEs
Asked how financial literacy would be taught in spurred the country's economic growth, not the big
the elementary level, Senator Aquino explained that businesses.
they have a working model - the Tagum Youth
Cooperative, a youth group awarded by the National Senator Aquino added that MSMEs provide 66%
Youth Commission last year, which put up a savings of all jobs in the Philippines so they not only playa
advocacy program in public elementary schools in significant part in the economy but are also significant
Tagum that teaches young children how to save. He employers. He hoped that the bill would usher in the
clarified that financial literacy is not a course but a youth and the MSMEs towards a better path to
life skill; it is teaching the values of handling money. progress by reaching the inclusive growth that
everyone is aiming for.
Senator Villar informed the Body that in her
community in the City of Las Pinas, elementary As regards loans, Senator Aquino said that he is
school students are not accepted in the Lakbay-Aral also trying to push Senate Bill No. 1832 or the
program because they are too young to understand Microfinance Bill, which aims to support and develop
livelihood projects; hence, accommodation for field trips the Filipino micro finance sector by providing an
starts only with high school students. She emphasized alternative to the five-six lending, which is more
that teaching the right values to make children good organized and with smaller interest rates.
entrepreneurs someday could be taught in elementary
school but since teaching entrepreneurship is more Upon queries of Senator Cayetano (A), Senator
difficult, it should be taught in high school. Aquino said that the subject of financial literacy can
be left to the discretion of the DepEd to a certain
Senator Aquino reiterated that there was no extent as they are experts in terms of putting together
intention to make financial literacy a course; it was curricula although as earlier clarified, there was no
only meant to be included in the values formation intention to add another subject of entrepreneurship
courses in elementary - to learn the value of in grade school but to fit it in at the life skills. He
savings and hard work - through which the disclosed that in another study, it was revealed that
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MONDAY, MAY 26, 2014 263
the Philippines is one of those that ranked very low COMMITTEE REPORT NO. 19
in financial literacy at the age of 30 - which shows ON SENATE BILL NO. 27
that most Filipinos do not have such foundation (Continuation)
while still young; some instances would be when an
employee lives paycheck after paycheck, with maxed- Upon motion of Senator Cayetano (A), there
out credit cards rather than setting aside a percentage being no objection, the Body resumed consideration,
for savings. He said that entrepreneurship and finan- on Second Reading, of Senate Bill No. 27 (Committee
cial literacy are skills that would allow people to be Report No. 19), entitled
more resilient in times of crisis and would help build
a practical mindset to the youth because handling AN ACT TO EFFECTIVELY INSTILL
money is an important part of life. He hoped that an HEALTH CONSCIOUSNESS THROUGH
entrepreneurship track could be included in the high PICTURE-BASED WARNINGS ON
school level, even in the K to 12 program, which can TOBACCO PRODUCTS.
be supported with some funding so that the students
would not only learn by theory. Senator Cayetano (A) stated that the parliamen-
tary status was the period of committee amendments.
Senator Cayetano (A) expressed that he was
uncomfOliable with leaving the financial literacy COMMITTEE AMENDMENTS
curriculum to DepEd, suggesting that some kind
partnership or institutional mechanism in the bill As proposed by Senator Cayetano (P), there being
would provide the right advice. no objection, the following committee amendments
were approved by the Body, one after the other:
Thereupon, Senator Aquino thanked Senators
Page 1
Cayetano (A) and Villar for their comments and
suggestions, reiterating that he is open to suggestions 1. On line 2, replace the word "Law" with ACT
and amendments to the bill. OF 2014;
Page 2
MANIFESTATION
OF SENATOR OSMENA 2. On line 4, between the words "have" and
"health," insert PICTURE-BASED;
To give way to the presentation of the committee 3. Reword lines 6 to IOta read as:
amendments on Senate Bill No. 27, Senator Osmefia h. TO REMOVE MISLEADING OR
expressed willingness to postpone his interpellation DECEPTIVE DESCRlPTORS UKE "LOW
on the bill until the next day. TAR," "LIGHT," "ULTRA LIGHT" OR
"MILD" WHICH CONVEY OR TEND
SUSPENSION OF CONSIDERATION TO CONVEY THAT A PRODUCT OR
OF SENATE BILL NO. 2212 VARIANT IS HEALTHIER, LESS
HARMFUL OR SAFER;
Upon motion of Senator Cayetano (A), there 4. On line II, after the semicolon (;), insert the
being no objection, the Body suspended consideration word AND;
of the bill.
5. On line 13, between the words "health" and
"and," insert the phrase PARTICULARLYIN
INQUIRY OF THE CHAIR RELATION TO TOBACCO USE AND ITS
EFFECTS ON THE HEALTH OF THE
Asked by the Chair whether other Members PEOPLE;
were scheduled to interpellate on the measure,
Senator Cayetano (A) said that Senator Osmefia Senator Cayetano (P) said that the amendment
was the last Member who made such a reservation. aims to clearly ensure the regulatory authority of the
However, he said that he intended to request the DOH over tobacco products.
other senators to prepare their individual amend-
ments so that these could be presented the next day 6. Delete the phrase "Department of Health"
or Wednesday at the latest so that the bill could be and the open and closed parentheses on
approved on Second Reading. lines 28 and 29;
264 MONDAY, MAY 26, 2014
II. On line 16, delete the phrase "transparent (F) THE PRINTING OF THE PICTURE-
wrappers, clear packaging"; BASED HEALTH WARNING SHALL
BE DONE USING CURRENT TECH-
NOLOGY AVAILABLE FOR PUR-
Asked by the Chair whether the phrase" but not
POSES OF PROVIDING VIVID AND
limited to" on line 15 has been deleted, Senator REALISTIC PICTURES WITHOUT THE
Cayetano (P) replied that the Committee decided to USE OF ANY BORDER, FRAME OR
cover all types of packaging. Moreover, she explained ANY OTHER DESIGN THAT WILL
that the phrase "transparent wrappers, clear packag- EFFECTIVELY LESSEN THE SIZE OF
ing" was deleted because this kind of packaging THE WARNING.
would be covered by other sections which prohibits THE PICTURE-BASED HEALTH
obstruction. WARNING SHALL BE PRINTED OR
INSCRIBED ON THE PACKAGE IN
12. On line 18, after the word "products," insert A COLOR WHICH CONTRAST CONS-
the phrase THAT CONTAIN THE LOGO PICUOUSL Y WITH THE BACK-
OR TRADEMARK OF THE TOBACCO GROUND OF THE PACKAGE OR ITS
COMPANIES; LABELS;
Senator Cayetano (P) stated that the amendment Senator Cayetano (P) explained that the amend-
aims to ensure that all product packages are covered ment aims to ensure that the graphic warning would
by the provision. She said that packages contain not be camouflaged by the color of the packaging.
trademarks or logos of the tobacco companies that
are used indirectly in their marketing promotions and At this juncture, the Chair directed the Secretariat
are even reused many times over in the homes or to designate the amendment after line 12 as line
small stores. 12(a).
r
MONDAY, MAY 26,2014 265
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266 MONDAY, MAY 26, 2014
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MONDAY, MAY 26, 2014 267
48. On line 8, after the word "not," replace the guidelines were not unnecessary, but because the
word "more" with LESS; DOH should be responsible enough to come up with
49. On line 9, after the figure in parentheses their guidelines and to implement them strictly.
"(Php20,000.00)," insert the phrase BUT NOT
MORE THAN TWO HUNDRED THOUSAND The session was suspended and was resumed
PESOS (PHP200,000.00) AND; shortly thereafter.
50. On line 12, insert a new paragraph to read as 56. Delete lines 17 to 29 until lines I to 18 on
follows: page 10 and replace it with the following:
Senator Cayetano (P) explained that the proviso The session was suspended and was resumed
was deleted not because the recommendations or shortly thereafter.
r
268 MONDAY, MAY 26,2014
Senator Cayetano (P) requested to leave the over tobacco products, especially on its health aspect.
proviso in the meantime and to continue with the However, despite the clarification, she said that
other amendments as soon as her corrections have tobacco manufacturers have questioned in court such
been reflected in the amended proviso. authority of the FDA. To ensure that the administra-
tive powers of the measure will not follow the foot-
Asked by the Chair whether lines 3 to 6 on page steps of RA 9711, she said that the proviso should
9 were deleted, Senator Cayetano (P) answered in have to be strengthened.
the affirmative.
The session was suspended and was resumed
Thereafter, Senator Cayetano (P) read the conti- shortly thereafter.
nuation of the amendment on page 10 which the
Body approved, to wit: 57. On line 25, delete "(1)" and insert the word
INSPECT after tbe word "enter";
c. IMPOSEAPPROPRIATEADMlNISTRATNE 58. On line 27, after the phrase "after such
SANCTIONS, SUCH AS RECALL, introduction," delete the conuna (,) and "(2)"
WITHDRAWAL AND/OR DESTRUCTION and insert the phrase TO ENSURE
OF ANY TOBACCO PRODUCTS THAT ARE COMPLIANCE WITH THE LAW;
IN VIOLATION OF THIS ACT.
59. Delete lines 28 to 33;
d. CALL UPON LAW ENFORCEMENT
AGENCIES AND THE MANAGING
AUTHORITIES AND THE ECONOMIC
The session was suspended and was resumed
ZONES FOR ASSISTANCE IN THE shortly thereafter.
IMPLEMENTATION AND ENFORCEMENTS
OF ITS DECISIONS, ORDERS, RULES AND Page 11
REGULATIONS. 60. Delete lines 1 to 6.
e. DEPUTIZE, WHENEVER NECESSARY,
WCAL GOVERNMENT EXECUTIVES AND Senator Cayetano (P) explained that the amend-
REPRESENTATIVES OF THE NATIONAL ment in Section 17 reflects the issues brought up
GOVERNMENT AGENCIES, TOBACCO during the period of interpellations that the DOH,
CONTROL ORGANIZATIONS AND CON- through the FDA, being the agency monitoring compli-
CERNED SECTORS TO HELP MONITOR
ance with the law, should be allowed to conduct
COMPLIANCE WITH AND REPORT ANY
routine inspections but subject to reasonable limitations.
VIOLATION OF THIS ACT;
f. INITIATE WHETHER MOTU PROPIO OR 61. Delete lines 21 to 23;
UPON VERIFIED COMPLAINT THE FILING
OF CRIMINAL CHARGES FOR VIOLA- Senator Cayetano (P) explained that the existing
TIONS OF THIS ACT.; AND legal situation will not change with the deletion of the
g. THE NON-ISSUANCE OF REGULATIONS paragraph, as with the deletion of the last paragraph
BY THE DOH OR THE FDA SHALL NOT of Section 16.
PREVENT THE COMING INTO FORCE OF
THE ACT AND/OR ANY PROVISIONS SUSPENSION OF SESSION
THEREOF. (as amended by tbe Chair)
Upon motion of Senator Cayetano (P), the session
Senator Cayetano (P) explained that the was suspended.
amendment was meant to emphasize that the
administrative body in charge of the implementation It was 5:55 p.m.
of the measure was the Department of Health and
its attached agencies and bureaus and the Food and RESUMPTION OF SESSION
Drugs Authority (FDA). She informed the Body of a
current case under Republic Act No. 9711 of the At 6:05 p.m., the session was resumed.
FDA law, which involved tobacco manufacturers
who went to cOUli to question the authority of the FURTHER COMMITTEE AMENDMENTS
FDA. As sponsor of the measure, she clarified that
both the DOH and the FDA should have jurisdiction As proposed by Senator Cayetano (P), there
MONDAY, MAY 26,2014 269