ROD NAVARRO, SENATORIAL ASPIRANT/CANDIDATE, MAY 13 2019, NATIONAL AND LOCAL ELECTIONS, PHILIPPINES

REPUBLIC OF THE PHILIPPINES
Senate
Pasay City
Journal
SESSION NO. 75
Monday, May 26,2014
SIXTEENTH CONGRESS
FIRST REGULAR SESSION

SESSION NO. 75
Monday, May 26, 2014
CALL TO ORDER
At 3:12 p.m., the Senate President, Hon. Franklin
M. Drilon, called the session to order.
PRAYER
The Body observed a minute of silent prayer.
NATIONAL ANTHEM
The Polytechnic University of the Philippines'
Bagong Himig Serenata led the singing of the
national anthem, after which they rendered the song,
entitled "Dugong Pilipino."
ROLL CALL
Upon direction of the Chair, the Secretary ofthe
Senate, Atty. Oscar G. Yabes, called the roll, to
which the following senators responded:
Angara, S.
Aquino, P. B. IV B.
Binay, M. L. N. S.
Cayetano, A. P. C. S.
Cayetano, P. S.
Drilon, F. M.
Ejercito, J. V. G.
Enrile, J. P.
Escudero, F. J. G.
Estrada. J.
Honasan, G. B.
Lapid, M. L. M.
Legarda, L.
Osmefia III, S. R.
Revilla Jr., R. B.
Sotto III, V. C.
Villar, C. A.
With 17 senators present, the Chair declared
the presence of a quorum.
Senators Marcos, Poe, Recto and Trillanes arrived
after the roll call.
Senators Guingona and Pimentel were on official
mission.
Senator Defensor Santiago was on indefinite
qualified medical leave as indicated in her letter
dated May 14, 2014.
APPROVAL OF THE JOURNAL
Upon motion of Senator Cayetano (A), there
being no objection, the Body dispensed with the
reading of the Journal of Session No. 74 (May 21,
2014) and considered it approved.
APPROVAL OF HOUSE BILL NO. 4084
ON THIRD READING
Upon motion of Senator Cayetano (A), there being
no objection, the Body considered, on Third Reading,
House Bill No. 4084, printed copies of which were
distributed to the senators on May 12, 2014.
Pursuant to Section 67, Rule XXIII of the Rules
of the Senate, upon motion of Senator Cayetano (A),
there being no objection, Secretary Yabes read only
the title of the bill, to wit:
r

250
AN ACT GRANTING PHILIPPINE
CITIZENSHIP TO ANDRAY BLATCHE.
Secretary Yabes called the roll for nominal
voting.
RESULT OF THE VOTING
The result of the voting was as follows:
In favor
Angara
Aquino
Binay
Cayetano (A)
Cayetano (P)
Drilon
Ejercito
Enrile
Escudero
Estrada
Against
None
Abstention
None
Honasan
Lapid
Legarda
Marcos
Osmefia
Recto
Revilla
Sotto
Trillanes
Villar
With 20 senators voting in favor, none against,
and no abstention, the Chair declared House Bill No.
4084 approved on Third Reading.
REFERENCE OF BUSINESS
The Secretary of the Senate read the following
matters and the Chair made the corresponding
referrals:
MESSAGE FROM THE
HOUSE OF REPRESENTATIVES
Letter from the Secretary General of the House of
Representatives, informing the Senate that on 19
May 2014, the House of Representatives passed
the following House bills, in which it requested
the concurrence of the Senate:
House Bill No. 1222, entitled
AN ACT ESTABLISHING AND MAIN-
TAINING THE OFFICE OF VETERANS
MONDAY, MAY 26, 2014
AFFAIRS IN THE PHILIPPINE
EMBASSY IN THE UNITED STATES
OF AMERICA, PRESCRIBING ITS
FUNCTIONS AND PROVIDING
FUNDS THEREFOR
To the Committees on National Defense
and Security; Foreign Relations; and Finance
AN ACT PROVIDING FOR THE RES-
TRUCTURING AND CONDONATION
OF UNPAID INTERESTS, PENALTIES
AND SURCHARGES ON LOANS
SECURED BY FARMERS, FISHER-
FOLK AND AGRARIAN REFORM
BENEFICIARIES FROM THE DEPART-
MENT OF AGRARIAN REFORM (DAR),
THE DEPARTMENT OF AGRICUL-
TURE (DA), THE PEOPLE'S CREDIT
AND FINANCE CORPORATION
(PCFe), THE COOPERATNE DEV-
ELOPMENT AUTHORITY (CDA),
THE NATIONAL FOOD AUTHORITY
(NFA), AND THE QUEDAN AND
RURAL CREDIT GUARANTEE
CORPORATION (QUEDANCOR)
To the Committees on Agrarian Reform;
and Agriculture and Food
AN ACT PROVIDING FOR THE
RETENTION AND UTILIZATION OF
THE INCOME DERIVED BY THE
NATIONAL MUSEUM, AMENDING
FOR THE PURPOSE SECTION 26
OF REPUBLIC ACT NO. 8492,
OTHERWISE KNOWN AS THE
NATIONAL MUSEUM ACT OF 1998
To the Committee on Education, Arts and
Culture
AN ACT REDUCING THE RETIREMENT
AGE OF SURFACE MINE WORKERS
FROM SIXTY (60) TO FIFTY (50)
YEARS, AMENDING FOR THE
PURPOSE ARTICLE 287 OF
r

PRESIDENTIAL DECREE NO. 442,
AS AMENDED, OTHERWISE KNOWN
AS THE LABOR CODE OF THE
PHILIPPINES
To the Committee on Labor, Employment
and Human Resources Development
AN ACT DEFINING THE ROLE OF THE
DEPARTMENT OF LABOR AND
EMPLOYMENT (DOLE) AND THE
LOCAL GOVERNMENT UNITS (LGUs)
IN THE ESTABLISHMENT AND
OPERATION OF THE PUBLIC
EMPLOYMENT SERVICE OFFICE
(PESO), AND THE OPERATION OF
JOB PLACEMENT OFFICES BY NON-
GOVERNMENT ORGANIZATIONS
(NGOs) AND STATE UNIVERSITIES
AND COLLEGES (SUCs), AMENDING
FOR THE PURPOSE SECTIONS 3, 6,
7 AND 9 OF REPUBLIC ACT NO.
8759, OTHERWISE KNOWN AS THE
PUBLIC EMPLOYMENT SERVICE
OFFICE ACT OF 1999
To the Committees on Labor, Employment
and Human Resources Development; Local
Government; and Finance
AN ACT ALLOWING HOME ECONOMICS
GRADUATES TO TEACH HOME
ECONOMICS SUBJECTS AND HOME
ECONOMICS-RELATED TECHNICAL-
VOCATIONAL SUBJECTS IN ALL
PUBLIC AND PRIVATE ELEMENTARY
AND SECONDARY EDUCATIONAL
INSTITUTIONS, RESPECTIVELY,
CONSISTENT WITH SECTION 8 OF
REPUBLIC ACT NO. 10533 OR THE
ENHANCED BASIC EDUCATION
ACT OF 2013
To the Committee on Education, Arts and
Culture
AN ACT INCREASING THE BED
CAPACITY OF RIZAL MEDICAL
CENTER IN PASIG CITY FROM
THREE HUNDRED (300) TO FOUR
HUNDRED (400) BEDS AND APPRO-
PRIATING FUNDS THEREFOR
251
To the Committees on Health and Demo-
graphy; aud Fiuance
AN ACT SEPARATING THE ROMBLON
NATIONAL HIGH SCHOOL - MAYHA
EXTENSION IN BARANGAY MAYHA,
MUNICIPALITY OF ODIONGAN,
PROVINCE OF ROMBLON FROM
THE ROMBLON NATIONAL HIGH
SCHOOL, CONVERTING IT INTO
AN INDEPENDENT NATIONAL
HIGH SCHOOL TO BE KNOWN AS
MAYHA NATIONAL HIGH SCHOOL
AND APPROPRIATING FUNDS
THEREFOR
To the Committees ou Educatiou, Arts and
Culture; and Finance
AN ACT CONVERTING THE BAKHAW
ELEMENTARY SCHOOL IN BARA-
NGAY BAKHAW, MUNICIPALITY
OF MANOURRIAO, ILOILO CITY INTO
AN INTEGRATED SCHOOL TO BE
KNOWN AS BAKHAW INTEGRATED
SCHOOL AND APPROPRIATING
FUNDS THEREFOR
To the Committees on Education, Arts and
AN ACT ESTABLISHING A NATIONAL
HIGH SCHOOL IN BARANGAY
TICWAS, MUNICIPALITY OF DUMA-
LINAO, PROVINCE OF ZAMBOANGA
DEL SUR TO BE KNOWN AS MA.
CLARA LOBREGAT NATIONAL
HIGH SCHOOL AND APPROPRIAT-
ING FUNDS THEREFOR
r

252
House Bill. NoA263,.entitled
AN ACT SEPARATING THE LIBERTAD
NATIONAL HIGH SCHOOL -
COLONGULO ANNEX IN BARA-
NGAY COLONGULO, MUNICIPALITY
OF SURALLAH, PROVINCE OF
SOUTH COTABATO FROM THE
LIBERTAD NATIONAL HIGH
COLONGULO NATIONAL HIGH
FUNDS THEREFOR
Cultnre; and Finance
AN ACT SEPARATING THE HALAPITAN
NATIONAL HIGH SCHOOL - LITTLE
BAGUIO ANNEX IN BARANGAY
LITTLE BAGUIO, MUNICIPALITY
OF SAN FERNANDO, PROVINCE
OF BUKIDNON FROM THE
HALAPITAN NATIONAL HIGH
LITTLE BAGUIO NATIONAL HIGH
FUNDS THEREFOR
To the Committees on Edncation, Arts and
AN ACT SEPARATING THE PIO DALIM
MEMORIAL SCHOOL OF ARTS AND
TRADES - STA. FILOMENA ANNEX
IN BARANGAY STA. FILOMENA,
MUNICIPALITY OF CALANASAN,
PROVINCE OF APAYAO FROM THE
PIO DALIM MEMORIAL SCHOOL
OF ARTS AND TRADES, CONVERT-
ING IT INTO AN INDEPENDENT
NATIONAL ARTS AND TRADES
STA. FILOMENA SCHOOL OF ARTS
AND TRADES AND APPROPRIAT-
ING FUNDS THEREFOR
HIGH SCHOOL IN BARANGAY
BALUKBAHAN, MUNICIPALITY OF
BAYOG, PROVINCE OF ZAMBOANGA
DEL SUR TO BE KNOWN AS
BALUKBAHAN NATIONAL HIGH
FUNDS THEREFOR
AN ACT SEPARATING THE LUNA
TUMOG ANNEX IN BARANGAY
TUMOG, MUNICIPALITY OF LUNA,
PROVINCE OF APAYAO FROM THE
LUNA NATIONAL HIGH SCHOOL,
CONVERTING IT INTO AN INDEPEN-
DENT NATIONAL AGRICULTURAL
AND TRADE HIGH SCHOOL TO BE
KNOWN AS TUMOG NATIONAL
AGRICULTURAL AND TRADE
ING FUNDS THEREFOR
Cnlture; and Finance
AN ACT ESTABLISHING THE MISAMIS
OCCIDENTAL SPORTS ACADEMY IN
THE CAPITAL CITY OF OROQUIETA,
PROVINCE OF MISAMIS OCCI-
DENTAL AND APPROPRIATING
FUNDS THEREFOR AND FOR
OTHER PURPOSES
To the Committees on Games, Amusement
and Sports; and Finance
AN ACT CONVERTING THE BUGANG
ELEMENTARY SCHOOL IN BARA-
r

NGAY BUGANG, MUNICIPALITY OF
SAGAY, PROVINCE OF CAMIGUIN
INTO AN INTEGRATED SCHOOL
TO BE KNOWN AS BUGANG
INTEGRATED SCHOOL AND APPRO-
AN ACT ESTABLISHING THE SIARGAO
ISLAND SPORTS ACADEMY AND
TRAJNING CENTER IN THE MUNICI-
PALITY OF DAPA, PROVINCE OF
SURIGAO DEL NORTE AND APPRO-
AN ACT ESTABLISHING THE DAVAO
SPORTS ACADEMY IN THE CITY
OF TAGUM, PROVINCE OF DAVAO
DEL NORTE TO BE LOCATED IN
THE DAVAO DEL NORTE SPORTS
AND CULTURAL CENTER AND
ALLOCATING FUNDS THEREFOR
AN ACT ESTABLISHING THE "NAVOTAS
DISTRICT HOSPITAL" IN THE CITY
OF NAVOTAS AND APPROPRIAT-
ING FUNDS THEREFOR
To the Committees on Health and Demo-
graphy; and Finance
AN ACT DECLARING CERTAIN
PORTIONS OF THE WELFAREVILLE
PROPERTY LOCATED IN THE CITY
OF MANDALUYONG OPEN FOR
DISPOSITION TO BONA FIDE
RESIDENTS WITHOUT PUBLIC
BIDDING, REPEALING FOR THE
PURPOSE REPUBLIC ACT NO. 5260
253
To the Committees on Urban Planning, Housing
and Resettlemeut; Ways and Means; and Finance
AN ACT DECLARING THE SECOND
DISTRICT OF SORSOGON A MINING-
FREE ZONE AND PROVIDING
PENALTIES FOR VIOLATIONS
THEREOF
To the Committee on Environment and
Natural Resources
SCIENCE AND TECHNOLOGY
HIGH SCHOOL IN BARANGAY SAN
JOSE, CITY OF ANTIPOLO, PRO-
VINCE OF RIZAL TO BE KNOWN
AS ANTIPOLO CITY NATIONAL
SCIENCE AND TECHNOLOGY
ING FUNDS THEREFOR"
AN ACT SEPARATING THE GENERAL
EMILIO AGUINALDO NATIONAL
HIGH SCHOOL ANNEX IN BARA-
NGAY PASONG BUAYA II, IMUS
CITY, PROVINCE OF CAVITE
FROM THE GENERAL EMILIO
AGUINALDO NATIONAL HIGH
GENERAL LICERIO TOPACIO
NATIONAL HIGH SCHOOL AND
APPROPRIATING FUNDS THEREFOR
Cnlture; and Finance
r

254
HIGH S~CHOOL IN BARANGAY
CAMANGA, MUNICIPALITY OF
MALANGAS, PROVINCE OF
ZAMBOANGA SIBUGAY TO BE
KNOWN AS DIONISIO LOPEZ, SR.
NATIONAL HIGH SCHOOL AND
APPROPRIATING FUNDS THEREFOR
AN ACT SEPARATING THE KALINGA
SALEGSEG ANNEX IN BARANGAY
SALEGSEG, MUNICIPALITY OF
BALBALAN, PROVINCE OF KALINGA
FROM THE KALINGA NATIONAL
HIGH SCHOOL, CONVERTING IT
INTO AN INDEPENDENT NATIONAL
BALBALAN NATIONAL HIGH
FUNDS THEREFOR
AN ACT INCREASING THE BURIAL
ASSISTANCE FOR VETERANS
FROM TEN THOUSAND PESOS
(PI0,000.00) TO TWENTY THOUS-
AND PESOS (P20,OOO.OO), AMENDING
FOR THE PURPOSE REPUBLIC
ACT NO. 6948, AS AMENDED,
OTHERWISE KNOWN AS "AN ACT
STANDARDIZING AND UPGRADING
THE BENEFITS FOR MILITARY
VETERANS AND THEIR DEPEN-
DENTS" AND APPROPRIATING
FUNDS THEREFOR
To the Committees on National Defense
and Security; and Finance
and House Bill No. 362, entitled
AN ACT AMENDING REPUBLIC ACT
NO. 53, AS AMENDED, OTHERWISE
KNOWN AS "AN ACT TO EXEMPT
THE ,PUBLISHER, EDITOR OR
REPORTER OF ANY PUBLICATION
FROM REVEALING THE SOURCE
OF PUBLISHED NEWS OR INFORM-
ATION OBTAINED IN CONFIDENCE,"
BY INCLUDING WITHIN ITS
COVERAGE JOURNALISTS FROM
BROADCAST, NEWS AGENCIES
AND INTERNET PUBLICATIONS
To the Committee on Public Information
and Mass Media
RESOLUTION
Proposed Senate Resolution No. 659, entitled
RESOLUTION DIRECTING THE PROPER
SENATE COMMITTEE, TO CONDUCT
AN INQUIRY, IN AID OF LEGIS-
LATION, ON THE KILLINGS OF
mDGE REYNERIO G. ESTACIO, SR.
AND OTHER mDGES WITH THE
END IN VIEW OF ENACTING
MEASURES TO SECURE THE
SAFETY AND WELFARE OF THE
MEMBERS OF THE mDICIARY
Introduced by Senator Pimentel III
To the Committee on Justice and Hnman
Rights
COMMUNICAnONS
Letters from Atty. Enrico L. Espafiol, dated 30 April
2014, submitting to the Senate the 2013 Annual
Reports of the following: Smart Communica-
tions, Inc., in compliance with Republic Act
No. 7294; Smart Broadband, Inc., in compli-
ance with Republic Act No. 8337; Connectivity
Unlimited Resource Enterprise, Inc., in compli-
ance with Republic Act No. 9130; and Prime
World Digital System, Inc., in compliance with
Republic Act No. 8992.
To the Committee on Public Services
Letter from Roy Cecil D. Ibay, dated 30 April 2014,
submitting to the Senate the 2013 Annual Report
of Digitel Mobile Philippines, Inc., in compliance
with Republic Act No. 9180.
To the Committee on Public Services
r

COMMITTEE REPORTS
Committee Report No. 30, submitted by the Com-
mittee on Public Works, on Proposed Senate
Resolution No. 436, introduced by Senator
Defensor Santiago, entitled
RESOLUTION DIRECTING THE PROPER
SENATE COMM1TIEE TO CONDUCT
AN INQUIRY, IN AID OF LEGIS-
LATION, TO STRENGTHEN LAWS
TO ENSURE THE EFFICIENCY,
TRANSPARENCY, AND ACCOUNT-
ABILITY OF GOVERNMENT
DISASTER RELIEF PROJECTS,
ESPECIALLY THOSE INVOLVING
INTERNATIONAL AID, FOLLOWING
REPORTS THAT BUNKHOUSES
BEING DEVELOPED BY THE
DEPARTMENT OF PUBLIC WORKS
AND HIGHWAYS IN LEYTE AND
EASTERN SAMAR THAT ARE MEANT
FOR THE VICTIMS OF SUPER-
TYPHOON YOLANDA ARE OVER-
PRICED AND DO NOT COMPLY
WITH INTERNATIONALLY RECOG-
NIZED STANDARDS AND BEST
PRACTICES;
and Proposed Senate Resolution No. 439,
introduced by Senator Marcos Jr., entitled
RESOLUTION DIRECTING THE SENATE
COMMITTEE ON PUBLIC WORKS
TO INVESTIGATE, IN AID OF
LEGISLATION, THE ALLEGED
SUBSTANDARD AND OVERPRICED
BUNKHOUSES BUlLT FOR THE
SURVIVORS OF SUPERTYPHOON
"YOLANDA" IN THE VISAYAS
REGION, AND TO INSTITUTE
CORRECTIVE MEASURES TO
ENSURE THE SAFETY AND
SECURITY OF THOSE DISPLACED
BY THE SAID CATASTROPHE,
recommending the adoption of the recommend-
ations and their immediate implementation.
Sponsors: Senators Marcos Jr. and Defensor
Santiago
To the Calendar for Ordinary Business
255
Committee.Report No. 31, submitted jointly by the
Committees on Local Government; Finance;
Ways and Means; and Social Justice, Welfare
and Rural Development, on Senate Bill No. 12,
introduced by Senators Marcos Jr. and Cynthia
A. Villar, entitled
AN ACT PROVIDING BARANGAY
OFFICIALS, INCLUDING BARA-
NGAY TANODS, MEMBERS OF THE
LUPON NG TAGAPAMAYAPA,
BARANGAY HEALTH WORKERS
AND BARANGAY DAY CARE
WORKERS A RETIREMENT BENEFIT,
recommending its approval without amendment,
taking into consideration Senate Bill Nos. 124,
540, 1007, 1166, 1684, 1853 and 1956.
Sponsors: Senators Marcos Jr., Escudero,
Sonny Angara, Maria Lourdes Nancy S.
Binay, Ejercito Estrada, TriIlanes IV,
Joseph Victor Ejercito and Cynthia A.
Villar
To the Calendar for Ordinary Business
INQUIRY OF SENATOR ESTRADA
Seuator Estrada asked Senator Cayetano (A) if
he was able to ask the Chairman of the Committee
on Accountability of Public Officers and Investiga-
tions for an update regarding the Malampaya Fund
scam investigation which was postpoued last Thursday,
May 22, 2014. Senator Cayetano (A) replied that
they were supposed to meet before the session
started; however, Senator Guingona infomled him
that he was waiting for the affidavit of Ms. Napoles
from the DO] and that he would be attending some
meetings afterward.
Senator Cayetano (A) informed the Body that
in their phone conversation, Senator Guingona, in
esseuce, gave the assurance that the Committee on
Accountability ofPublic Officers and Investigations,
being the committee ofthe people, would accordingly
schedule any resolution and investigation asked for
by the Members for truth to come out; and that
according to Senator Guingona, he would like to see
the affidavit of Ms. Napoles first before scheduling
any investigation where she would state under oath
her knowledge on the matter. He said that indeed
several other investigations have been filed by other

256
Members""such, ,~s ,the reopening, of the PDAF
investigation, and he hoped that Senator Guingona
would indeed be able to read the affidavit first
before they both start talking about setting the dates
ofthe investigations,
Asked whether Senator Guingona has given a
particular date for the Malampaya Fund scam hearing,
Senator Cayetano CA) reiterated Senator Guingona's
desire to look into the affidavit ofMs, Napoles first
He added that the committee chainnan has the pre-
rogative to decide which investigation to open or reopen
first, unless overruled in accordance with the Rules.
Senator Estrada recalled that in some interviews
with the media, Senator Guingona had stated that
after the Conunittee wrapped up the PDAF scam
hearing, it would investigate the Malampaya Fund
scam even without the affidavit of Ms. Napoles.
Asked if Senator Guingona can proceed with the
investigation based simply on the COA audit report,
Senator Cayetano CA) answered in the affinnative,
recalling that he actually filed a resolution calling
for an investigation of the Malampaya Fund scam
because of its close connection with the dealings
of Ms. Napoles; however, even before the investiga-
tion could start, various events took place, such as
the arrival of Ms. Ruby Tuason, the testimony of
Mr. Cunanan, the news about Atty. Gigi Reyes'
return to the country, and the "Napolist." He said
that the scheduled hearing last Thursday was post-
poned because, according to the committee chair,
there was lack of resource persons from the COA.
He agreed with Senator Estrada that the investigation
could start based on the COA audit report. He said
that other than those officially stated, he could not
speak on behalf of Senator Guingona regarding his
reasons for the postponement ofthe investigation and
about the schedule of the investigations,
Asked why Senator Guingona has not been
attending the plenary sessions, Senator Cayetano (A)
said that for that day, May 26, Senator Guingona
would be attending to urgent matters as well as the
two meetings.
At this juncture, Senate President Drilon stated
that in a letter addressed to him by Senator Guingona's
chief-of-staff, Atty. Dante Atienza, dated May 26,
2014, Senator Guingona would not be able to attend
the regular session of the same date because of an
important meeting with constituents within Metro
Manila.
Asked by,Senator Estrada whether he is in favor
of resuming the investigation of the alleged PDAF
scam, Senator Cayetano (A) answered in the affinn-
ative, saying that in light of recent revelations by
Ms. Napoles, the only way to find out the truth is to
confront her in a Senate hearing. He added that he
would also like to ask her questions, and even allow
her to ask him questions. However, he acknowledged
that the decision to reopen the PDAF investigation
lies with the Conunittee on Accountability of Public
Officers and Investigations.
Senator Estrada suggested the inclusion of
Benhur Luy to those who would be invited in the
event the Conunittee on Accountability of Public
Officers and Investigations decides to reopen the
investigation on the PDAF scam. He lamented that
despite Luy's providing a copy of his files to the
Philippine Daily InqUirer which included the names
ofother legislators, only Senators Emile, Revilla and
himself were tagged - their photos published - as
being involved in the scam.
Senate President Drilon infonned the Body that
Senator Guingona had recommended the issuance of
a subpoena duces tecum for the files to be brought
to the Senate, but Benhur Luy had responded that
the file was no longer with him because he had
already turned these over to the NBI. It was for that
reason, he said, that another subpoena duces tecum
was issued to the NBI upon the recommendation of
Senator Guingona for the production of such files.
Since the hard disk is a physical device which
stores digital files and could easily be reproduced,
Senator Cayetano (A) noted that nobody knows if
the file given to the Philippine Daily Inquirer was
an original or just a copy. He also mentioned that
Secretary De Lima was still consulting with the
Ombudsman whether the files should be turned over
to the Conunittee on Accountability ofPublic Officers
and Investigations or an authenticated copy should
be submitted instead. He assured the Body that all
documents and pieces of evidence would be turned
over to the conunittee to make sure that justice
would prevail.
Senator Estrada said that based on infonnation
that he gathered, Benhur Luy had given his files to
the NBI and then to the Philippine Daily Inquirer.
He lamented that despite the inclusion of a number
of legislators in the files, the newspaper chose to
implicate only three senators.

Senator Estrada. said that a newspaper should
not be allowed to publish photos of legislators with
their names on it without any solid pieces ofevidence
because they have their names and honor to protect
Senator Cayetano (Al stated that there is a
process of accumulation and verification ofevidence,
for instance, distinguishing betwen the COA report
with whistleblowers and additional evidence of
anomalies involving legislators, and the COA report
listing the legislators who have alleged dealings with
NOOs but were fully liquidated. He affirmed that in
the last two weeks, Benhur Luy submitted certaiu
names to the newspapers which were published even
without accompanying documents. He said that what
added more to the confusion was gossip that was
sometimes substituted as truth where the accused
became the accuser. He agreed that the best way to
find out the truth is to hold hearing to find out who
is saying the truth.
Moreover, Senator Cayetano (Al believed that
the COA and the DBM should come out with the
documents and for the DOJ, which has been quick
in accusing people, to reveal the contents of the list
that Benhur Luy entrusted to them months ago, and
to clear the names of those who are not involved or
if there is no evidence of their involvement in the
scam.
Senator Cayetano (Al sympathized with everyone
mentioned but he reiterated that there is a process
of verification and a process of accumulation of
evidence. He stated that the whole country is wracked
by the PDAF scandal and the Body is searching for
a process in order to know the whole truth. He said
that Senator Estrada, in his interpellation on the
Sandiganbayan bill, asked for fairness because
he was hoping that in the process he would be able
to fully defend himself and that truth will come out
one way or the other.
But Senator Estrada pointed out that the COA
report zeroed in only on the eight Napoles NOOs but
it did not give attention to the legislators involved in
the remaining 74 NODs.
Senator Cayetano (Al clarified that the report
covered only 2007 to 2009, which is only 1% ofthe
PDAF, and that even Benhur Luy said that until
2012, he was still dealing with the Department of
Agriculture. It was for that reason, he said, why he
asked for a eOA report for 2012. Moreover, he
257
recalled the·statement of Senator Guingona that after
the Napoles NOOs, he would investigate the other
NOOs as well.
Senator Estrada insisted that Senator Ouingona
should conduct the hearings simultaneously. Senator
Cayetano (Al added that it should be done with the
same zeal found in previous investigations.
Senator Estrada questioned why the Blue Ribbon
Committee only investigated the NOOs connected
with Mrs. Napoles, zeroing only on the three senators,
and why it did not investigate the other NOOs not
connected with Mrs. Napoles. He then reiterated his
request to subpoena the digital files submitted by
Mr. Benhur Luy to the Philippine Daily Inquirer,
which were being used by the newspaper as basis
for publishing their report, so that the Body would
know if Benhur Luy's copy was authentic.
Senator Cayetano (A) said that there was already
a subpoena issued to the NBI and the Philippine
Daily Inquirer to produce the files.
The Senate President said that he was leaving
the matter to the chairman of the Blue Ribbon
Committee.
REMARKS OF SENATOR SOTTO
Senator Sotto noted that in the discussions, there
was mention of Benhur Luy's and Mrs. Napoles'
hard drive, as well as hard drive in the possession of
others which a lawyer claimed were not authorized.
He suggested that the matter be looked into by the
Committee on Science and Technology because of a
possible violation of Section 4 of the Cybercrime
Prevention Act
REFERRAL TO COMMITTEES
being no objection, the Chair referred Senator
Estrada's inquiry and discussions on the PDAF scam
to the Committee on Science and Technology, and to
the Blue Ribbon Committee.
PRIVILEGE SPEECH
OF SENATOR LEGARDA
Availing herself of the privilege hour, Senator
Legarda gave a report on the key issnes discussed
during the 23'" World Economic Forum (WEF) on
r

258
East Asia, particularly the session on Designing
Solutions for Climate and Resource Risks, to wit:
The Philippines' hosting of WEF gave us
the opportunity to tell the region and the world
that we are back in business and that despite the
calamities and the global financial crisis, our
economy has grown by more than 6% over
the past eight quarters and, last year, it grew
by 7.2%.
Inclusive growth, equitable progress and
sustainable development were the key issues
discussed. But one notable message that was
brought to the fore in several sessions is
resilient growth.
No less than President Aquino, during the
Opening Plenary, said that the impacts of climate
change must be considered in all our develop-
ment plans and that we are gradually moving
"towards a direction that includes resilience in
the face of disaster."
Resilience should be integral to both
corporate and public governance.
We can ensure out economic resilience by
reducing disaster risks, letting investors be
aware of it, and requiring business investments
to take into account disaster risk reduction and
management measures.
As legislators, we are urged to address gaps
in policies through measures that will liuk
science and policy~making, finance mechanisms
for climate and energy solutions - including
energy efficiency, clean technology and green
infrastructure investment, and enable the private
business and financial community to support
comprehensive climate and energy policies and
to invest in climate and clean energy solutions.
These messages were echoed by the co-
chairs ofthe 23,d World Economic Forum during
the Closing Plenary.
Co-chair Takeshi NUnami, CEO of Lawson
in Japan, stressed that resilience is important
and technology must be used to combat
disaster risks.
Co-chair Atsutoshi Nishida, chairman of the
Board of Toshiba Corporation in Japan, said that
we must aim for resilient East Asia because the
impact of natural hazards can affect sustain-
ability. We should train our sights on a climate-
resilient future, prepare for disasters, protect the
environment and use clean techniques.
Meanwhile, co-chair James T. Riady, CEO of
Lippo Group in Indonesia, stressed the import-
ance of inclusive growth and highlighted the
need to address unemployment among youth
and gaps in the agriculture sector.
In climate risks, there could sometimes be no
second chances. Because of climate change,
poverty alleviation and achieving food security
will become increasingly difficult, new poverty
traps will arise as existing obstacles remain, and
economic growth will slow down.
The United Nations said economic losses
from disasters are "out of control." We should,
in fact, reverse this situation. We need to be in
control and resilience should be at the core of
our development policies and strategies.
REFERRAL OF SPEECH
TO COMMITTEE
being no objection, the Chair referred the privilege
speech of Senator Legarda to the Committee on
Climate Change.
COMMITTEE REPORT NO. 26
ON SENATE BILL NO. 2212
(Continuation)
Upon motion of Senator Angara, there being no
objection, the Body resumed consideration, on Second
Reading, of Senate Bill No. 2212 (Committee Report
No. 26), entitled
AN ACT TO ACTIVELY PROMOTE
ENTREPRENEURSHIP AND FINAN-
CIAL EDUCATION AMONG FILIPINO
YOUTH.
Senator Cayetano (Al stated that the parlia-
mentary status was still the period of interpellations.
Thereupon, the Chair recognized Senator Aquino,
sponsor of the measure.
SUSPENSION OF SESSION
Upon motion of Senator Cayetano (A), the Chair
suspended the session.
It was 4:05 p.m.
RESUMPTION OF SESSION
At 4:05 p.m., the session was resumed.
r

MONDAY, MAY 26,2014
INTERPELLATION
OF SENATOR CAYETANO (A)
At the outset, Senator Cayetano (A) requested
Senator Aquino to summarize the Youth Entrepre-
neurship Act of 2014.
Senator Aquino replied that the three main
features of the act are as follows:
I. Setting youth entrepreneurship as a
national strategy to address the country's
youth unemployment and encourage their
participation in activities which would
help their families and themselves.
Senator Aquino stated that at present, 72% ofall
those who are unemployed are actually under the
age of 30, a very large base of unemployed youth,
which the Committee is looking at especially those
who are desperately looking for opportunities to raise
income and to be productive. He said that primarily,
the bill puts youth entrepreneurship as one of the
government's national strategies;
2. Financial literacy and entrepreneurial skills
in the country's educational system.
Senator Aquino explained that when the bills of
some of the Members were referred to the Committee,
there were different modalities being suggested -
either at the high school level; at the college level;
at the tertiary level; or at the alternative education
level. He said that one study actually showed that the
best time to teach financial literacy is at the grade
school or when one is actually less than 10 years old.
He said that the Committee put the suggestions
altogether into the strategy of the bill which directs
the DepEd, CHED, and TESDA to introduce financial
literacy and eventually entrepreneurialism into their
courses.
Senator Aquino hoped that the measure could
create some changes in terms of the way that the
country would be able to support its entrepreneurs,
starting with financial literacy at a very young age -
which is savings, the value of money, the cost ofwork,
the value of work - that would eventually lead
towards an entrepreneurial mindset down the line.
3. Create an enabling financial environment
for young people to get into entrepre-
neurship.
259
Senator Aquino explained that part ofthe measure
is to create a fund that eventually young people can
get access to or utilize so that they can get the
necessary loans to put up their business.
Senator Aquino said that in a nutshell, the
measure is basically making youth entrepreneur-
ship as a national strategy, changing or modifying
the country's curriculum to include financial literacy
and entrepreneurship, and creating an environment
for loans and other ways to support the young people
to become entrepreneurs.
Asked if the bill is trying to address the mindset
ofthe Filipino people so that even as they go through
elementary and high school, they will have options
either to be employed or to be an entrepreneur,
Senator Aquino replied in the affirmative. He said
that he would like to take the measure in the same
context with the Go Negosyo bill which provides the
infrastructure to support MSMEs. He explained that
Senate Bill No. 2212 can be seen in light of the Go
Negosyo bill and focuses on the youth, 72% of
which are unemployed.
Senator Aquino lamented that even graduates
from the best colleges in the country are not
guaranteed to find the right job, especially with the
current underemployment rate of 20%. He said that
similarly with the World Economic Forum mentioned
by Senator Legarda, which could bring investors and
create more jobs in the country, the measure would
at the same time create a parallel path that could
help young people put up their own business as
another viable option for them considering that not
everyone could have the opportunity to land a job.
Senator Aquino explained that instead of merely
sitting idle while waiting for a job opportunity, or
settling for ajob that is not in the line ofhis expertise,
one can consider going into entrepreneurship if he
would be given the right support in an enabling
environment.
Senator Cayetano (A) noted that the ASEAN
Integration plan would allow more opportunities for
different Asean countries to engage in entrepreneur-
ship and business. He said that while the neighboring
countries were already exploring the types ofbusiness
they could establish, for instance, in Vietnam, Cambodia,
China or even the Philippines, the mindset ofFilipinos
is still to look for job opportunities. In response,
Senator Aquino said that with such a mindset, Filipinos

260
would end up seeking job in the companies that the
other countries would establish, He said that while
the ASEAN Integration is largely frowned upon in
the business sector, Filipinos should be reminded that
the country offers good products, and services and
currently has the best macro-economic growth, the
reason why other countries are similarly worried that
the Philippines could enter their trade space. He
agreed with Senator Cayetano CAl that the mindset
should be to utilize the opportunities. Apart from the
bill, he hoped that the government could create an
enabling environment for entrepreneurs in order to
maximize the current market which, in his opinion,
is not being maximized by SMEs, and then explore
other markets like the ASEAN which seemed to
be the next logical choice, being neighbors and
considering the country's commitment to have an
integrated market by 2015.
Senator Cayetano (Al said that he was glad
Senator Aquino used the term "enviromnent," as he
believed that things should not be considered in
isolation. To illustrate, he said that if Singaporeans
would be asked about peace and order, they would
reply that it is a matter of setting the environment or
a relationship among different factors. He narrated
that while reading about countries with a lot ofmicro
and small enterprises, he was surprised to discover
that 95% of the employees in Korea are from micro,
small and medium enterprises, because all along he
thought of Korea as synonymous to big companies
such as Samsung, and in the same manner that in
the case of quality products, he would think about
Japan which has a long tradition and history of large
companies where people would go to work after
college and would stay until retirement. He realized
that the so-called "rising tigers" or the economies
that are currently being envied are not the countries
with the biggest companies but those with interaction
of different sizes of enterprises. At this point, he
quoted Senator Villar, known for being a successful
entrepreneur, as saying that it is not only a matter of
having enough funds but it is the knowledge, wisdom
and experience that could make one succeed in
business. He praised the bill because it did not only
deal with funding but also about growing up and
having the right mindset, enviromnent, and learning
tools to have a successful business. While he recog-
nized that a lot ofbusinessmen suffered failures in their
first ventures, he believed that they possessed the
right mindset that made them successful eventually.
Senator Aquino agreed with Senator Cayetano
CAl, saying that he would like to look at the measure
vis-a-vis the other bills that he sponsored like the Go
Negosyo bill which would all fit together to create an
enabling enviromnent for entrepreneurs. At this point,
he said that Senator Villar, who is one of his main
partners in entrepreneurship, has expressed her
intention to be a cosponsor of the measure.
Asked if there would be a proper framework,
curriculum and competent teacher to lead graduates
in possessing the proper knowledge and abilities to
enter into c1ifferent forms of businesses, Senator
Aquino said that there are provisions in the bill that
would enable DepEd, CHED and TESDA to provide
further training for the teachers to ensure competence.
He said that the K+12 program would require
teachers who are specially trained because the tracks
would be specific like the arts track or skills building
track which is technical or vocational type, He stated
that the measure would bring entrepreneurship track
at the forefront. Considering the study made by
Citibank a few years ago which revealed that the
Philippines ranked low in terms of financial literacy,
he opined that with more reason that financial literacy
should be taught at the grade school level which
would simply be a matter of saving and appreciating
the value of money which, he said, could ultimately
become a life skill in the same way that honesty and
being a good neighbor is being taught to young
children. He said that children who are taught fmancial
literacy at a very young age are envisioned to
become entrepreneurs or would be able to utilize the
money they have saved. He explained that DepEd
would have a specialization training program for
teachers at each stage.
At this juncture, Senator Cayetano CAl suggested
that the bill could consider offering some sort of
partnership with some sectors like the LGU and send
grade school or high school students to factories,
pharmaceuticals or call centers to encourage entre-
preneurship instead of simply inviting businessmen to
conduct exposure trips so that learning outside of the
classroom would become a standard. He noted that
in big private schools, alternative classroom or learning
experiences are being provided to students like inviting
the parent of a student who happened to be the
president or CEO of a big company to speak before
a class and encourage students to become successful.
To further illustrate, he noted that in the United
States, both in movies and in real life, the guidance
counsellor is seen as playing an active role in guiding
students towards possible careers, providing them
r

with brochures from colleges and orientations about
specializations, among others. He lamented that in
the Philippines, a guidance counsellor is merely seen
as a disciplining authority to whom erring and difficult
students are referred.
Senator Cayetano CA) believed that it is actual
interaction with businesses in the community that
could catch the interest of students instead of mere
theoretical teaching. Senator Aquino agreed, noting
that the proposal can be best tackled in the Imple-
menting Rules and Regulation although he expressed
willingness to include the same in the amendment.
Senator Cayetano CA) believed that if CEOs and
high-level officials of companies actively participate
in the Brigada Eskwela program, they would also be
willing to spend a few hours of their time to give
presentations in schools. He stated that this should
not be left to the creativeness of the principal or to
the connections of the local executive in the area, but
should become an institutional mechanism to enable
business leaders of the community to actually interact
with the schools. To illustrate, he cited the case ofcall
centers wherein out of 100 applicants, only six to 12
are being hired. He said that by simply improving the
communication and language skills being taught to
students could result in a 20% to 30% increase in the
number of potential hires. He believed that the
business sector would be willing to help if presented
with the right mechanism.
Senator Cayetano CA) noted that the Brigada
Eskwela waS made possible because it provided a
mechanism of helping that did not require them to
perform the necessary coordination. He agreed with
Senator Aquino that the matter would be best
addressed during the period ofamendments, or in the
crafting of the IRR so that the DepEd and the
business clubs could actively participate in creating a
framework that would allow them to adopt the
appropriate mechanisms in each school district.
Senator Aquino agreed, saying that K+12 has
actually made it incumbent upon the school to COor-
dinate with the business sector considering that at the
11" and 12'" grade, a student would be expected to have
acquired the learning skill that could secure local
employment immediately. He stressed that there is a
need to convene the DepEd and the local businesses
to talk about the courses that could be best offered
or provided not only in pursuing the measure but also
in the regular course of pursuing the K+12 Reform.
261
Senator Cayetano CA) suggested the inclusion of
surmner apprenticeship programs for high school
students so that they could have the same trainings
given to college students, which could be a two-
week or one-month exposure to business operation
that could inspire and encourage them to pursue
entrepreneurship.
Noting that the bill also seeks an institutionalized
funding mechanism, Senator Cayetano CA) asked how
the proposed funding would be pushed and whether
it would be different from the GFIs or similar with
the Negosyo Fund. In response, Senator Aquino said
that the bill provides a simple guarantee fund because
a direct funding from the government could some-
times not yield the desired results because the rates
are not high enough. He said that the idea was to
spur the private sector to provide funds for the youth
by putting up the corresponding guarantee fund. He
stated that the matter could be taken up extensively
during the preparation of the IRR with the proper
government institutions and in order that funding
could come from multiple sources. He disclosed that
consultations were already made with a few GFIs
including the Land Bank of the Philippines and other
agencies. He added that the Committee would be
open to suggestions.
Senator Cayetano CA) said that as he went
around the country for the Presyo, Trabaho, Kita,
Kaayusan Project and the "Anti-5/6," he was told
by bank executives that there are still a lot of thrift
banks because people are still intimidated in trans-
acting with big banks, and that the business practice
of filling up forms and the requirements of Bangko
Sentral are the main deterrents to borrowing formally.
He said that the "5/6" system of loan is still rampant
in the country and in almost all government offices.
Senator Cayetano CA) said that he was in a
quandary on whether or not to include funding in the
bill because if it involves a large amount, the bill
would be harder to pass. However, citing the budget
increase for the Pantawid Pamilyang Pilipino
Program C4Ps) from P62 billion to PIOO billion for
2016, he estimated that if PI billion would be allotted
for micro, medium and small entrepreneurs in each
region in the country, it would only be less than P20
billion. He said that the funding thereof may be
backed up by an accompanying bill.
Senator Cayetano CA) said that if a private
company like Puregold can encourage their sari-sari
(

262
store clients by.constructing the stores for them and
picking some outstanding retailers by going beyond
lending, there should be a way for government to do
the same. He stated that there are successful entre-
preneurs who need money to expand their busi-
ness and this is where the funding should come in.
He said that the DSWD is doing this at certain
levels. He stated that in the last budget, he proposed
P500 million, and with the help of Senator Escudero
and Senate President Drilon, PlOO million was allotted
for micro-finance. He hoped that the administering
agency would show good results during the budget
hearing in order to convince the members that they
can put in more funds.
At this juncture, Senator Villar inquired if there
has been a study which shows that it would be more
cost-efficient to introduce entrepreneurship in primary
school than in secondary school. Senator Aquino
replied that a Citibank study showed that one of the
best periods to actually teach financial literacy and
entrepreneurship is at the grade schooVelementary
level which would further bridge entrepreneurialism
at the secondary and tertiary levels. By putting it
together, he said that it would strengthen the goal of
financial literacy and entrepreneurship in schools.
Asked how financial literacy would be taught in
the elementary level, Senator Aquino explained that
they have a working model - the Tagum Youth
Cooperative, a youth group awarded by the National
Youth Commission last year, which put up a savings
advocacy program in public elementary schools in
Tagum that teaches young children how to save. He
clarified that financial literacy is not a course but a
life skill; it is teaching the values of handling money.
Senator Villar informed the Body that in her
community in the City of Las Pinas, elementary
school students are not accepted in the Lakbay-Aral
program because they are too young to understand
livelihood projects; hence, accommodation for field trips
starts only with high school students. She emphasized
that teaching the right values to make children good
entrepreneurs someday could be taught in elementary
school but since teaching entrepreneurship is more
difficult, it should be taught in high school.
Senator Aquino reiterated that there was no
intention to make financial literacy a course; it was
only meant to be included in the values formation
courses in elementary - to learn the value of
savings and hard work - through which the
foundation for entrepreneurship is built for secondary
and tertiary schools.
As regards the program's project grants and
loans for the youth, Senator Aquino said that the
amounts would just be small to get somebody started;
for instance, a project grant where students would be
given projects while learning entrepreneurship until it
is time to scale up to a regular business wherein a
loan would be necessary. He averred that it is the
reason why both facilities are mentioned in the law,
so that they would not be constrained down the line.
Senator Villar said that when the students in high
school are studying entrepreneurship, there should be
a budget for their projects and for them to practice
what they have learned. She stated that the grant of
loans to certain ages and levels of education should
be clarified in the bill. Senator Aquino said that the
loans can come in when it is time to venture into a
real business.
Senator Villar expressed the importance of
encouraging micro, small and medium enterprises
(MSMEs) because it comprises 90% of all busi-
nesses in the Philippines, 50% of which are in
the food sector. In fact, she said that MSMEs
spurred the country's economic growth, not the big
businesses.
Senator Aquino added that MSMEs provide 66%
of all jobs in the Philippines so they not only playa
significant part in the economy but are also significant
employers. He hoped that the bill would usher in the
youth and the MSMEs towards a better path to
progress by reaching the inclusive growth that
everyone is aiming for.
As regards loans, Senator Aquino said that he is
also trying to push Senate Bill No. 1832 or the
Microfinance Bill, which aims to support and develop
the Filipino microfinance sector by providing an
alternative to the five-six lending, which is more
organized and with smaller interest rates.
Upon queries of Senator Cayetano (A), Senator
Aquino said that the subject of financial literacy can
be left to the discretion of the DepEd to a certain
extent as they are experts in terms ofputting together
curricula although as earlier clarified, there was no
intention to add another subject of entrepreneurship
in grade school but to fit it in at the life skills. He
disclosed that in another study, it was revealed that
r

the Philippines is one of those that ranked very low
in financial literacy at the age of 30 - which shows
that most Filipinos do not have such foundation
while still young; some instances would be when an
employee lives paycheck after paycheck, with maxed-
out credit cards rather than setting aside a percentage
for savings. He said that entrepreneurship and finan-
cial literacy are skills that would allow people to be
more resilient in times of crisis and would help build
a practical mindset to the youth because handling
money is an important part of life. He hoped that an
entrepreneurship track could be included in the high
school level, even in the K to 12 program, which can
be supported with some funding so that the students
would not only learn by theory.
Senator Cayetano (A) expressed that he was
uncomfOliable with leaving the financial literacy
curriculum to DepEd, suggesting that some kind
partnership or institutional mechanism in the bill
would provide the right advice.
Thereupon, Senator Aquino thanked Senators
Cayetano (A) and Villar for their comments and
suggestions, reiterating that he is open to suggestions
and amendments to the bill.
MANIFESTATION
OF SENATOR OSMENA
To give way to the presentation of the committee
amendments on Senate Bill No. 27, Senator Osmefia
expressed willingness to postpone his interpellation
on the bill until the next day.
SUSPENSION OF CONSIDERATION
OF SENATE BILL NO. 2212
being no objection, the Body suspended consideration
of the bill.
INQUIRY OF THE CHAIR
Asked by the Chair whether other Members
were scheduled to interpellate on the measure,
Senator Cayetano (A) said that Senator Osmefia
was the last Member who made such a reservation.
However, he said that he intended to request the
other senators to prepare their individual amend-
ments so that these could be presented the next day
or Wednesday at the latest so that the bill could be
approved on Second Reading.
COMMITTEE REPORT NO. 19
ON SENATE BILL NO. 27
(Continuation)
263
being no objection, the Body resumed consideration,
on Second Reading, of Senate Bill No. 27 (Committee
Report No. 19), entitled
AN ACT TO EFFECTIVELY INSTILL
HEALTH CONSCIOUSNESS THROUGH
PICTURE-BASED WARNINGS ON
TOBACCO PRODUCTS.
Senator Cayetano (A) stated that the parliamen-
tary status was the period of committee amendments.
COMMITTEE AMENDMENTS
As proposed by Senator Cayetano (P), there being
no objection, the following committee amendments
were approved by the Body, one after the other:
Page 1
1. On line 2, replace the word "Law" with ACT
OF 2014;
Page 2
2. On line 4, between the words "have" and
"health," insert PICTURE-BASED;
3. Reword lines 6 to IOta read as:
h. TO REMOVE MISLEADING OR
DECEPTIVE DESCRlPTORSUKE"LOW
TAR," "LIGHT," "ULTRA LIGHT" OR
"MILD" WHICH CONVEY OR TEND
TO CONVEY THAT A PRODUCT OR
VARIANT IS HEALTHIER, LESS
HARMFUL OR SAFER;
4. On line II, after the semicolon (;), insert the
word AND;
5. On line 13, between the words "health" and
"and," insert the phrase PARTICULARLYIN
RELATION TO TOBACCO USE AND ITS
EFFECTS ON THE HEALTH OF THE
PEOPLE;
Senator Cayetano (P) said that the amendment
aims to clearly ensure the regulatory authority of the
DOH over tobacco products.
6. Delete the phrase "Department of Health"
and the open and closed parentheses on
lines 28 and 29;

264
Page 3
7, On line I, after the word "two," insert the
number (2);
8, Delete the provision on lines 5 to 9 and
replace it with the phrase IN THE CASE OF
A SPHERICAL, CYUNDRICAL ORCONICAL
CONTAINER OF TOBACCO PRODUCTS,
THE TWO (2) LARGEST SURFACES THAT
ARE PREDOMINANTLY DISPLAYED; AND;
The session was suspended and was resumed
shortly thereafter,
9. Delete lines 10 and II and replace with the
following provision:
IN THE CASE OF A PACKAGE AND
CARTON THAT DOES NOT HAVE A
PARTICULAR SIDE OR SURFACE THAT
IS PREDOMINANTLY DISPLAYED OR
VISIBLE UNDER NORMAL OR CUSTO-
MARY CONDITIONS OF SALE ORUSE OR
THOSETHAT ARENOT DESCRIBEDUNDER
SUBSECTIONS 1AND 2, SIXTY PERCENT
(60%) OF THE THREE (3) DOMINANT SIDES
OR THE TOTAL SURFACE THEREOF,
WHICHEVER IS BIGGER, WHICH WILL
ENSURE THAT THE PICTURE-BASED
HEALTH WARNING IS VISIBLY SHOWN;
10. On line 14, delete the word "exportation";
II. On line 16, delete the phrase "transparent
wrappers, clear packaging";
Asked by the Chair whether the phrase" but not
limited to" on line 15 has been deleted, Senator
Cayetano (P) replied that the Committee decided to
cover all types ofpackaging. Moreover, she explained
that the phrase "transparent wrappers, clear packag-
ing" was deleted because this kind of packaging
would be covered by other sections which prohibits
obstruction.
12. On line 18, after the word "products," insert
the phrase THAT CONTAIN THE LOGO
OR TRADEMARK OF THE TOBACCO
COMPANIES;
Senator Cayetano (P) stated that the amendment
aims to ensure that all product packages are covered
by the provision. She said that packages contain
trademarks or logos of the tobacco companies that
are used indirectly in their marketing promotions and
are even reused many times over in the homes or
small stores.
13. On lioes 22 and 23, delete the phrase "Ninety
(90) days after the effectivity of this Act"
and replace it with ONE (I) YEAR AFTER
THE ISSUANCE OF THE TEMPLATES BY
THE DOH;
Senator Cayetano (P) stated that the amendment
was submitted by Senator Honasan, and that the
Committee decided to accept it to ensure that there
would be no more reasons for the delay and that the
new timetable would give the tobacco companies
reasonable time for compliance.
Page 4
14. On line 12, delete the number "600" and
replace it with 300;
15. On the same line, delete the word "at least";
Senator Cayetano (P) explained that the 300 dati
inch is consistent with what is acceptable as the
market standard. She added that all templates will
use four colors which constitute full color to ensure
that the health warnings are clearly seen.
shortly thereafter.
16. After line 12, insert a new subsection (I) to
read as:
(F) THE PRINTING OF THE PICTURE-
BASED HEALTH WARNING SHALL
BE DONE USING CURRENT TECH-
NOLOGY AVAILABLE FOR PUR-
POSES OF PROVIDING VIVID AND
REALISTIC PICTURES WITHOUT THE
USE OF ANY BORDER, FRAME OR
ANY OTHER DESIGN THAT WILL
EFFECTIVELY LESSEN THE SIZE OF
THE WARNING.
THE PICTURE-BASED HEALTH
WARNING SHALL BE PRINTED OR
INSCRIBED ON THE PACKAGE IN
A COLOR WHICH CONTRAST CONS-
PICUOUSLY WITH THE BACK-
GROUND OF THE PACKAGE OR ITS
LABELS;
Senator Cayetano (P) explained that the amend-
ment aims to ensure that the graphic warning would
not be camouflaged by the color of the packaging.
At this juncture, the Chair directed the Secretariat
to designate the amendment after line 12 as line
12(a).
r

MONDAY, MAY 26,2014
17, Reletter the subsequent subparagraphs
accordingly;
18, Replace the phrase "brand within the family"
with VARIANT;
19. On line 21, replace the number "2475" with
1931.4;
20. On line 24, replace the number "55" with 37;
Senator Cayetano (P) clarified that the bill had
no intention of changing the current packaging sizes
available in the market. She said that the size change
is based on currently available packaging sizes that
reflect the shortest height and width which can be
seen in the soft pack and the flip-top of tens and
which are dimensions that have been relayed to the
Committee by the industry.
Page 5
21. On line 15, delete the phrase "as issued by
the DOH according to" and replace it with
WHICH SHALL BE ISSUED BY THE DOH
TOGETHER WITH THE TEMPLATES IN
ACCORDANCE WITH;
22. On line 16, delete the phrase "but not limited
to";
23. On line 20, after the word "warnings," insert
a new sentence to read as: THIS IS IN
ADDITION TO ANY FISCAL MARKINGS
AS MAY BE REQUIRED BY OTHER
GOVERNMENT AGENCIES SUCH AS THE
BUREAU OF INTERNAL REVENUE;
Senator Cayetano (P) explained that the BIR and
the DOF have their own requirements. She said that
additional information are those solely provided by the
DOH in connection with the graphic health warnings.
24. On line 21, delete the phrase ''Ninety (90)
days after the effectivity of this Act" and
replace it with ONE (1) YEAR AFTER THE
ISSUANCE OF THE TEMPLATES BY THE
DOH;
25. On line 22, replace the word "contain" with
BEAR.
shortly thereafter.
26. Delete the words on lines 23 to 30 starting
with the word "including" until the word
"same" and replace it with THAT CLAIMS
ORMISLEADS A CONSUMER TO BELIEVE
THAT A TOBACCO PRODUCT OR
VARIANT IS HEALTHIER, SAFER OR LESS
HARMFUL;
27. On line 32, in between the words "is"
and "safer," insert HEALTHIER, LESS
HARMFUL OR.
Page 6
28. On line 3, replace the period ( .) with a semi-
colon ( ; ) and add the proviso PROVIDED,
THAT FOR VARIANTS THAT USED
COLORS, IMAGES ORNUMBERS AS PART
OF A BRAND NAME OR TRADEMARK,
A TEXTUAL WARNING TO THE EFFECT
THAT SUCH BRAND OR VARIANT IS NOT
HEALTHIER, SAFE OR LESS HARMFUL
SHOULD BE PRINTED ON THE PACKAG-
INGTOGETHERWITHTHEPICTlJRE.BASED
HEALTH WARNING AS MANDATED IN
SECTION 5;
265
Senator Cayetano (P) pointed out that there are
types of descriptors that are used to market a
product as healthier or safer than other variants but
in the interest of focusing on the primary objective of
the bill which is to include graphic health warnings,
general wamings will now be applicable.
29. On lines 8 and 1I, replace the mnnber "4950"
with 3219;
30 On line 17, in between the words "Manufac-
turers" and "and," insert the words
IMPORTERS, RETAILERS;
31 On line 19, replace the word "and" with
IMPORTED and after the word "distributed,"
insert OR SOLD;
32. On lines 19 and 20, delete the phrase "120
days from the effectivity of this Act" and
replace it with ONE (1) YEAR FROM THE
ISSUANCE OF THE TEMPLATE BY THE
DOH. NON-COMPLIANT PACKAGES
THEREAFTER FOUND IN THE MARKET
ON DISPLAY ORFOR SALE OR DISTRIBU-
TION SHALL BE SUBJECT TO REMOVAL,
CONFISCATION AND/ORDESTRUCTION.
shortly thereafter.
Senator Cayetano (P) explained that the Committee
extended the effectivity of implementation from
90 days to one year which is more than enough time
for the DOH to change the templates and for the
manufacturers and distributors to comply with the
new requirements of the law including the time to
exhaust the products currently in the market.
r

266
Page 7
33. On line 9, between the words "of' and "this,"
insert the phrase SECTIONS 5, 6 AND 8
AND SECTION IIINSOFAR AS TIIEY ARE
RESPONSIBLE FORPROVIDING DISPLAY
MATERIALS THAT ARE IN VIOLATION
OF;
Senator Cayetano (P) explained that this phrase
was included to clarify that violations of Section 5
mandating graphic health warning, Section 6, on the
side panel, and Section 8 the minimum principal
display, are subject to criminal penalty; on the other
hand, Section 10, which is on sales, will not be penal-
ized criminally because of the concern that there
may be difficulties in the far-flung areas to implement
this; this would remain an administrative violation and
not a criminal violation.
Senator Cayetano (P) further clarified that Sec-
tion II, which is the provision on non-obstruction in
the display of the tobacco packages, was included
insofar as manufacturers or distributors are concerned
because these signages and display materials are
provided by the tobacco companies to the retailers.
34. Delete the provision on lines 10 and 11 and
replace it with the following:
(I) ON THE FIRST OFFENSE, A FINE OF
NOT LESS THAN ONE MILUON PESOS
(PHP 1,000,000.00) BUT NOT MORE
THAN TWO MILLION PESOS (PHP
2,000,000.00) SHALL BE IMPOSED AT
THE DISCRETION OF THE COURT;
35. Delete the provision lines 12 and 13 and
replace it with the following:
(2) ON THE SECOND OFFENSE, A FINE
OF NOT LESS THAN FIVE MILLION
PESOS (PHP 5,000,000.00) BUT NOT
MORE THAN SEVEN MILLION PESOS
(PHP 7,000,000.00) SHALL BE IMPOSED
AT TIIEDISCRETION OF THE COURT;
36. On line 14, replace the word "more" with
LESS;
37. On line 15, between the figure (Php
20,000,000.00)" and word "or," insert BUT
NOT MORE THAN THIRTY MILLION
PESOS (PHP 30,000,000.00);
38. On line 16, delete the comma ( , ) between the
words "court" and "the," replace it with a
semicolon ( ; ) and insert the phrase
PROVIDED FURTHER THAT;
39. On line 23, after the word "citizen," insert OR
GROUP;
40. On line 24, replace the word "batch" with
WITHDRAWAL.
To the Chair's observation that the penalties are
quite stiff, Senator Cayetano (P) said that the
Committee is open to an amendment. Nonetheless,
she stated that cigarette companies make a lot of
money and in many cases around the world, it is
easier for them to violate the law then pay for the
penalties.
Asked by the Chair whether there are penalties
on individual persons like imprisonment, Senator
Cayetano (P) replied that any foreign national who is
an officer of a cigarette company found to be violating
the law may be deported; in case of a Filipino citizen,
for the third offense, the penalty includes imprison-
ment of not more than five years andlor fine.
shortly thereafter.
41. On the same page, line 24, after the word
"Each," replaced the word "batch" with
WITHDRAWAL; after the word "size" and
the comma (,), delete the words "that are";
42. On the same page, line 25, delete the word
"withdrawn" before the word "from";
Page 8
43. On line 3, between the word "of' and "this,"
insert a new phrase SECTIONS 5, 6 AND 8
OF THIS ACT, INSOFAR AS THEY ARE
INVOLVED IN THE DISPLAY, OFFERING
FOR SALE AND SELLING OF THE
COVERED PRODUCTS AS WELL AS
SECTION II OF;
44. On line 4, after the word "not," replace the
word "more" with LESS;
45. On line 5, after the figure in parentheses
"(Php5,000.00)," insert the phrase and figure
BUT NOT MORE THAN FIFTY THOUSAND
PESOS (PHP50,000.00) ;
46. On line 6, after the article "of," insert the
pln..se NOT LESS THAN; and after the figure
in parentheses "(PhplO,OOO.OO)," insert the
phrase and figure BUT NOT MORE THAN
ONE HUNDRED THOUSAND PESOS
(pHPIOO,OOO.OO);
47. On line 7, after the word "imposed" and the
semicolon (;), insert the article AND;
r

48. On line 8, after the word "not," replace the
word "more" with LESS;
49. On line 9, after the figure in parentheses
"(Php20,000.00)," insert the phrase BUT NOT
MORE THAN TWO HUNDRED THOUSAND
PESOS (PHP200,000.00) AND;
shortly thereafter.
50. On line 12, insert a new paragraph to read as
follows:
THE FINES IMPOSED HEREIN ARE
AT THE DISCRETION OF THE COURT,
TAKING INTO CONSIDERATION THE
TOTAL ASSETS OF THE ENTERPRISE.
51. On line 17, after the word "citizen," insert the
words OR GROUP;
52. On line 24 to 25, delete the phrase "and
every year thereafter or as frequently as the
need arises";
Page 9
53. Delete lines 3 to 6 and replace it with the
following:
UNDERSECTlON 5, MANUFACIURERS
ARE GIVEN A PERIOD OF ONE YEAR
FROM THE ISSUANCE OF THE INITIAL
SET OF TEMPLATES TO COMPLY
THEREWITH. THE INITIAL SET OF
TEMPLATES IS VALID FOR TWO YEARS
FROM IMPLEMENTATION.
WITHIN ONE YEAR FROM THE
EFFECTIVITY OF THE INITIAL SET OF
TEMPLATES, THE DOH SHALL ISSUE A
NEW SET OF TEMPLATES WHICH WILL
TAKE EFFECT UPON EXPIRATION OF THE
INITIAL SET. THIS NEW TEMPLATE
SHALL BE VALID FOR TWO YEARS AND
SOON.
Senator Cayetano (P) infonned the Body of the
timeline that she has created in reference to the
aforementioned amendment.
Page 8
54. On lines 30 to 32, delete the proviso
«Provided, however, that the absence of
recommendations shall not delay the issuance
of the template and guidelines.
Senator Cayetano (P) explained that the proviso
was deleted not because the recommendations or
267
guidelines were not unnecessary, but because the
DOH should be responsible enough to come up with
their guidelines and to implement them strictly.
shortly thereafter.
Page 9
55. Delete lines II and 12;
56. Delete lines 17 to 29 until lines I to 18 on
page 10 and replace it with the following:
THE DOH SHALL PROMULGATE
RULES GOVERNING THE HEARINGS ON
ALLEGED VIOLATIONS OF THIS ACT. THE
HEARINGS SHALL BE SUMMARY IN
NATURE AND SHALL BE CONDUCTED
BY MEANS OF POSITION PAPERS AND
AFFIDAVITS. ANY DECISION MUST BE
RENDERED NO LONGERTHAN SlXIY (60)
DAYS FROM THE DATE OF FILING.
THE DOH, BY ITSELF OR THROUGH
ANY OF ITS DEPUTIZED AGENCIES OR
BUREAUS, INCLUDING THE FOOD AND
DRUG ADMINISTRATION (FDA), IS
HEREBY CHARGED WITH ENFORCING
THE PROVISIONS OF THIS ACT IN
ACCORDANCE WITH THE POWERS
GRANTED UNDERREPUBLIC ACTNO. 9711
AND SHALL:
a. HEAR AND RESOLVE ALL ADMINIS-
TRATIVE CASES WITH RESPECT TO
ALIEGED VIOLATIONS OF THIS ACT.
b. IMPOSE, AFTERNOTICE AND HEAR-
ING AND, IN ACCORDANCE WITH
THE DEGREE OF THE OFFENSE AND
THE NATURE OF THE BUSINESS OF
THE OFFENDER, ADMINISTRATIVE
FINES OF NOT MORE THAN TEN
MILLION PESOS (PHPIO,OOO,OOO.OO).
FOR ANY VIOLATION OF THIS ACT,
THE PROCEEDS OF WHICH WILL BE
USED FOR HEALTH PROMOTION
CAMPAIGNS ON TOBACCO CONTROL
OF THE DOH. PROVIDED THAT,
MANUFACTURERS, IMPORTERS,
AND DISTRIBUTORS OF TOBACCO
PRODUCTS, AS MENTIONED IN
SECTION 12 OF THIS ACT, SHALL
HAVEAHIGHERPENALTYCOMPARED
TO RETAILERS AND SELLERS, AS
PROVIDEDIN SECTION 13 OF THIS ACT.
shortly thereafter.
r

268
Senator Cayetano (P) requested to leave the
proviso in the meantime and to continue with the
other amendments as soon as her corrections have
been reflected in the amended proviso.
Asked by the Chair whether lines 3 to 6 on page
9 were deleted, Senator Cayetano (P) answered in
the affirmative.
Thereafter, Senator Cayetano (P) read the conti-
nuation of the amendment on page 10 which the
Body approved, to wit:
c. IMPOSEAPPROPRIATEADMlNISTRATNE
SANCTIONS, SUCH AS RECALL,
WITHDRAWAL AND/OR DESTRUCTION
OF ANY TOBACCO PRODUCTS THAT ARE
IN VIOLATION OF THIS ACT.
d. CALL UPON LAW ENFORCEMENT
AGENCIES AND THE MANAGING
AUTHORITIES AND THE ECONOMIC
ZONES FOR ASSISTANCE IN THE
IMPLEMENTATIONAND ENFORCEMENTS
OF ITS DECISIONS, ORDERS, RULES AND
REGULATIONS.
e. DEPUTIZE, WHENEVER NECESSARY,
WCAL GOVERNMENT EXECUTIVES AND
REPRESENTATIVES OF THE NATIONAL
GOVERNMENT AGENCIES, TOBACCO
CONTROL ORGANIZATIONS AND CON-
CERNED SECTORS TO HELP MONITOR
COMPLIANCE WITH AND REPORT ANY
VIOLATION OF THIS ACT;
f. INITIATE WHETHER MOTU PROPIO OR
UPON VERIFIED COMPLAINT THE FILING
OF CRIMINAL CHARGES FOR VIOLA-
TIONS OF THIS ACT.; AND
g. THE NON-ISSUANCE OF REGULATIONS
BY THE DOH OR THE FDA SHALL NOT
PREVENT THE COMING INTO FORCE OF
THE ACT AND/OR ANY PROVISIONS
THEREOF. (as amended by tbe Chair)
Senator Cayetano (P) explained that the
amendment was meant to emphasize that the
administrative body in charge of the implementation
of the measure was the Department of Health and
its attached agencies and bureaus and the Food and
Drugs Authority (FDA). She informed the Body of a
current case under Republic Act No. 9711 of the
FDA law, which involved tobacco manufacturers
who went to cOUli to question the authority of the
FDA. As sponsor of the measure, she clarified that
both the DOH and the FDA should have jurisdiction
MONDAY, MAY 26,2014
over tobacco products, especially on its health aspect.
However, despite the clarification, she said that
tobacco manufacturers have questioned in court such
authority of the FDA. To ensure that the administra-
tive powers of the measure will not follow the foot-
steps of RA 9711, she said that the proviso should
have to be strengthened.
shortly thereafter.
57. On line 25, delete "(1)" and insert the word
INSPECT after tbe word "enter";
58. On line 27, after the phrase "after such
introduction," delete the conuna (,) and "(2)"
and insert the phrase TO ENSURE
COMPLIANCE WITH THE LAW;
59. Delete lines 28 to 33;
shortly thereafter.
Page 11
60. Delete lines 1 to 6.
Senator Cayetano (P) explained that the amend-
ment in Section 17 reflects the issues brought up
during the period of interpellations that the DOH,
through the FDA, being the agency monitoring compli-
ance with the law, should be allowed to conduct
routine inspections but subject to reasonable limitations.
61. Delete lines 21 to 23;
Senator Cayetano (P) explained that the existing
legal situation will not change with the deletion ofthe
paragraph, as with the deletion of the last paragraph
of Section 16.
SUSPENSION OF SESSION
Upon motion of Senator Cayetano (P), the session
was suspended.
It was 5:55 p.m.
RESUMPTION OF SESSION
At 6:05 p.m., the session was resumed.
FURTHER COMMITTEE AMENDMENTS
As proposed by Senator Cayetano (P), there

MONDAY, MAY 26,2014
, being{lo .objection, the Body approved the,following
connnittee amendments, one after the other:
Page 5
L On line 23, delete the phrase "including
colors, images, or numbers, or any";
2, Delete lines 24 to 27;
3. On line 28, delete the phrase "characteristics,
health effects, hazards or emissions";
4, Delete line 30, and in lieu thereof, insert
the phrase CLAIMS OR MISLEADS
A CONSUMER TO BELIEVE THAT
THE TOBACCO PRODUCT OR VARlANT
IS HEALTHIER, SAFER OR LESS
HARMFUL;
Page 9
5, On the amended subparagraphs of Section
16, after subparagraph A, insert a new
subparagraph B to read as follows:
B. IMPOSE, AFTERNOTICE AND HEAR-
INGAND IN ACCORDANCE WITH THE
DEGREE OF THE OFFENSE AND THE
NATURE OF THE BUSINESS OF THE
OFFENDER, ADMINISTRATIVE FINES
OF NOT MORE THAN TEN MILLION
PESOS (PHP 10,000,000,00) FOR ANY
VIOLATION OF THIS ACT, THE
PROCEEDS OF WHICH WILL BE USED
FORHEAL1HPROMOIlONCAMPAIGNS
ONTOBACCO CONTROLOF THE DOH.
PROVIDED, THAT THE MANUFAC-
TURERS, IMPORTERS AND DISTRI-
BUTORS OF TOBACCO PRODUCTS AS
MENTIONED IN SECTION 12 OF TIllS
ACTSHALLHAVEAHIGHERPENALTY
COMPARED TO RETAILERS AND
SELLERS, AS PROVIDED IN SECTION
13 OF TIllS ACT, THE IMPOSITION OF
THE ADMINISTRATNE FINE SHALL
TAKE INTO CONSIDERATION THE
FINANCIAL CAPACITY OF THE
MANUFACTURERS, IMPORTERS AND
DISTRIBUTORS IN THE TOTAL
ASSETS OF THE RETAILERS AND
SELLERS; and
6, On the title of the bill, insert the word
HEALTH between the words "PICTURE-
BASED" and "WARNINGS," so that the title
of the bill would now read as follows:
AN ACT TO EFFECTIVELY INSTILL
HEALTH CONSCIOUSNESS lliROUGH
PICTIJRE-BASED HEAL1HWARNlNGS
ON TOBACCO PRODUCTS,
TERMINATION OF THE PERIOD~ .. ,
OF COMMITTEE AMENDMENTS
269
There being no other connnittee amendment,
upon motion of Senator Cayetano (A), there being no
objection, the Body closed the period of connnittee
amendments.
MANIFESTATION
OF SENATOR CAYETANO (A)
Senator Cayetano (A) stated that the Body
would take up the individual amendments either the
following day or Wednesday,
INSTRUCTION OF THE CHAIR
The Chair directed the Secretariat to prepare an
amended copy of the bill incorporating the approved
connnittee amendments which shall be the basis
for futnre debates,
He said that copies of the bill would be made
available to the senators the following day,
SUSPENSION OF CONSIDERATION
OF SENATE BILL NO_ 27
being no objection, the Body suspended consideration
of the bilL
ADJOURNMENT OF SESSION
being no obj ection, the Chair declared the session
adjourned until three o'clock in the afternoon of the
following day.
It was 6:11 p,m,
I hereby certify to the correctness of the
foregoing,
OSCAR
Secretary 0 the Senate
t f> !u-~
Approved on May 27, 2014

ROD NAVARRO, SENATORIAL ASPIRANT/CANDIDATE, MAY 13 2019, NATIONAL AND LOCAL ELECTIONS, PHILIPPINES

Recommended

Recommended

More Related Content

Similar to ROD NAVARRO, SENATORIAL ASPIRANT/CANDIDATE, MAY 13 2019, NATIONAL AND LOCAL ELECTIONS, PHILIPPINES

Similar to ROD NAVARRO, SENATORIAL ASPIRANT/CANDIDATE, MAY 13 2019, NATIONAL AND LOCAL ELECTIONS, PHILIPPINES (13)

More from rodnavarro_phsenate_journals

More from rodnavarro_phsenate_journals (10)

Recently uploaded

Recently uploaded (20)

ROD NAVARRO, SENATORIAL ASPIRANT/CANDIDATE, MAY 13 2019, NATIONAL AND LOCAL ELECTIONS, PHILIPPINES