Updated @ 12:30 a.m., March 10, 2020
MANILA, Philippines — Pro-administration Senators Pia Cayetano and Imee Marcos clashed on Monday when the latter led a hearing tackling the economic effects of the President’s latest tax reform package.
The tension brewed when Cayetano manifested during Monday’s Senate session, questioning why the economic affairs committee, led by Marcos, conducted a hearing on a subject matter that the former is already defending on the floor.
“There was a hearing…on the resolution inquiring in aid of legislation ‘into the effectivity of the investment promotion agencies and its corresponding incentive regime in generating revenues, creating jobs, and providing business opportunities for the people’,” Cayetano noted.
“Dear colleagues, I think everyone knows that Committee Report No. 50 is CITIRA (Corporate Income Tax and Incentives Reform Act) which is on the floor,” she pointed out.
“So I would just like to pose my question to the body and ask that, if a subject matter is already taken up on the floor, have we changed our rules? Are we allowed to have another committee conduct a hearing on exactly the same subject matter in another hearing without even informing the chair, even on a personal level?” she asked.
Defending the hearing she led, Marcos said that the issue on CITIRA was just part of “what the different members and sectors of the business community are now calling the ‘triple whammy’ of the Philippine economy.”
“And these are COVID-19 (coronavirus disease), the abrogation of the VFA (Visiting Forces Agreement) and the potential removal of the Philippines under the GSP (Generalized System of Preferences) and thirdly their concern and anxiety that on top of all of this, the CITIRA will also be passed in the form that the House has,” she explained.
Marcos argued that her panel has “such a wide range of topics under it that all items that have anything to do with those that are economic are covered so.”
“I do not want to show any disrespect or overlap or duplication, I simply need to hear from certain sectors who are clearly going to suffer cumulative losses in the export and manufacturing sectors as well,” she said.
At this point, Senate President Vicente Sotto III, who was presiding over the session, acknowledged Cayetano’s “legitimate concerns because of some bills that are already on the floor.”
Sotto then asked Senator Majority Leader Juan Miguel Zubiri on his take on the matter.
“Unfortunately, there’s no explicit ruling on our rules in terms of committees on holding hearings on particular topics referred to their committee,” Zubiri said.
“However, because of due courtesy, we have this as inter-parliamentary courtesy among our members, we usually do not do anymore overlapping so that there is no double discussion of a particular topic,” he then said.
Marcos went on to defend her hearing and explained that the subject of CITIRA was only tackled “on the sidelines” of the discussion.
“This had to do with investment policy and as a result, we also had to tackle the CITIRA on the sidelines. I think something of the same nature is occurring with Pogo (Philippine offshore gaming operators). Tatlo na yung imbestigasyon sa Pogo, sabay-sabay po,” she said.
“Hindi ko tinatackle as tax kundi yung impact sa export po at saka sa BPO (business process outsourcing),” she added.
But Cayetano pointed out that Marcos explored specific provisions of the CITIRA bill during her hearing.
“Specific provisions of the CITIRA bill were taken up, including the creation of the FIRB (foreign investment review board), including the footloose industries, the sunset provision. So these are very specific to the CITIRA bill that is on the floor,” she said.
Cayetano also noted that the director general of the Philippine Economic Zone Authority (PEZA) was one of the resource persons of Marcos’ hearing.
“One of the speakers was no less than the director general of PEZA, who is known to have been very vocal about her opposition, and who as at some point said that she will support, but I guess she changed her mind. So she is the person who was given the platform to speak there,” she said.
“I don’t mind, dear colleagues, you can speak to any resource person. You can invite them to your office, but to have them in a hearing on a matter that was pending on the floor, is a slightly different thing,” she added.
“It’s a little bit difficult when I’m chairing a difficult subject matter, and there are parallel hearings going on with resource persons who have attended my hearing and who have already given their official statements. And I am not aware that they have changed their positions on it,” she further pointed out.
A visibly exasperated Cayetano then lamented the nature of the CITIRA resolution that was tackled in the Marcos-led inquiry.
She noted that the “Now, Therefore” clause of the resolution was about investigating, in aid of legislation, the effect of the incentives scheme on the exporters.
“That is the very essence of my Committee Report, my dear colleagues, na alam niyo namang inaral ko. So, if one of you and any of you would like to interpellate and make those statements of support or opposition, that is your prerogative. But I have another committee hearing it – and the chairperson (Marcos) herself will say, ‘Do you still have the heart to inflict CITIRA on these poor exporters?’ Why do you have a chairperson on Committee on Ways and Means defending this on the floor if you have another chairperson hearing the same matter?” she said.
“So that’s it. I sound exasperated because I am. I’d like to move on with work. But I cannot unless this jurisdictional issue is resolved. It doesn’t have to be now. But please don’t try to mediate. Resolve the jurisdictional issue,” she added.
Several senators — Minority Leader Franklin Drilon, Francis Pangilinan, Risa Hontiveros, Richard Gordon and Joel Villanueva — stood up to air their opinion on the matter.
After much discussion, Marcos apologized to Cayetano.
Cayetano accepted her colleague’s apology but maintained that the “jurisdictional issue remains.”
Following the dispute, Marcos approached Cayetano, who was in her seat, to apologize again and explained her side.
“Talaga kung minsan nagkaka-problema talaga sa jurisdiction at napakalabo kasi at napakalawak ng aking committee ng economic affairs,” she told reporters in a chance interview after she left the Session hall.
“Ang gagawain ko lahat ng may kinalaman sa CITIRA ifo-forward ko kay Senator Pia Cayetano sinabi ko naman sakanya yan at walang namang intensyon na angkinin yung kanyang committee o yung kanyang jurisdiction,” she added.
“So nag-apologize ako for whatever offense she took,” she further said.
She then clarified to reporters that she did not walk out due to the disagreement between her and her fellow Nacionalista Party (NP) member.
Marcos said she just went up to her office to talk with her youngest son, Ilocos Norte Gov. Matthew Manotoc.
She said Senator Cynthia Villar mediated between the two and talked with Cayetano because the latter was “really angry.”
“She [Villar[ was talking to Senator Pia kasi galit na galit si Senator Pia,” Marcos said.
In the end, the Senate resolution in question was referred back to the Committee on Rules following the motion made by Zubiri.
“I so move that (Senate) Resolution No. 339 is withdrawn referral from the Committee on Economic Affairs primarily and secondarily from the Committee on Ways and Means, back to the Committee on Rules,” he said.
/atm