Wednesday, February 17, 2010

Leveling off the Playing Field

Copyright © 2010 by Chester B. Cabalza. All Rights Reserved.

The Philippines’ Emerging Business Process Outsourcing (BPO)
Market and the Information Technology (IT) Parks


Background

Having the rise of globalization on the economic sphere, the business process outsourcing (BPO) has been one of its salient features. The BPO around the world began as early as 1990s. According to Filipino economists like Magtibay-Ramos, et. al., they confirm that it was only in the early part of the new millennium that outsourcing opportunities gained ground in the Philippines. From Php2 billion in 2000, investment in the BPO industry, it rose to Php11 billion in 2001, then settled to about Php5-7 billion annually in the next four years. The Philippine BPO sector is projected to provide 7-11 percent of the new jobs for the labor force entrants between 2007 and 2010. Meanwhile, it is also estimated that its total workforce size will reach 500,000 to 600,000 in 2010, which is considerable for a single economic activity.

With the influx of outsourcing and offshoring business investments in the Philippines, IT parks have been mushrooming. It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.

Legal Bases

• R.A. No. 8749 “amending the Special Economic Zone Act by directly allocating to the municipality or city 2% (out of the 5%) gross tax to be collected from the establishments operating in the ecozone and providing for disturbance compensation for persons to be displaced or evicted by publicly-owned ecozone”
• R.A. No. 8756 “incentivizing the establishment of regional headquarters to encourage investment and operation of multinational companies in the country and to generate more jobs”
• PEZA Resolution No. 99-264 ‘guidelines for the establishing and operation of Information Technology (IT) Parks”

Key Terms

Special Economic Zone


Sec. 4(a), R.A. No. 7916 refers Special Economic Zone (SEZ) as the ECOZONES, which are selected areas with highly developed or which have the potential to be developed into agro-industrial, Industrial tourist/recreational. Commercial, banking, investment and financial centers. An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.

Free Trade Zone

Sec. 4(d), R.A. No. 7916 defines Free Trade Zone as an isolated policed area adjacent to a port of entry (as a seaport) and/or airport where imported goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed or otherwise manipulated without being subject to import duties. However, movement of these imported goods from the free-trade area to a non-free-trade area in the country shall be subject to import duties.

Enterprises within the zone are granted preferential tax treatment and immigration laws are more lenient.

Business Process Outsourcing

There are seven types of BPO services identified by the Department of Trade and Industry (DTI), these are the following: Contact Center, Back Office, Data Transcription, Animation, Software Development, Engineering Development, and Digital Content. According to DTI (2006), Locsin (2006), and The Computer Language Company Inc. (2006), Contact Center consists of in-bound and outbound voice operation services for the purposes of sales, customer service, technical support, and others.

IT Parks

The IT Parks may be located in any suitable place. But those that are located inside the National Capital Region (NCR) will be restricted to serving only service type projects and no manufacturing operations.

Incentives to the IT Parks in the Country

According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the Information, Communications and Technology (ICT) sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.

The Philippines is a newly industrialized emerging economy, however, it is still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.

IT Parks experience sweet successes in the Philippines primarily because investors in cyberparks enjoy substantial benefits offered by the government such as income tax holidays, tax incentives to for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who holds ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor.

Observations

• Whether the Philippines can sustain its momentum in BPO markets, thus, encouraging colleges and universities to impose English as a medium of instructions in schools.
• The Philippines should not only produce agents for the market but also position itself to manufacturing and production of IT-related softwares in which the country remains to be a laggard compared with India and other leading technological countries.
• The new playing field is hot and opens leverage for our country. We have a young and dynamic population, educated and technologically savvy for the knowledge economy. Hence, the current growth in BPO sector in the Philippines, that is largely driven by the contact or call center subsector has a large share in total BPO employment and revenue, thus is drawing positive economic climate in the country.
•India cannot be divorced from the topic when it comes to the BPO industry. The emerging economy of India is the role model in this kind of transborder industry. The surge in the BPO sector in India resulted to• the well-educated English-speaking students and a group of enterprising local citizens who capitalized on the global shortage of programmers and the high demand for business solutions occurring in the 1990s. Hence, Indian expatriate in the US, especially IT professionals in Silicon Valley, is providing a crucial role in the rapid development of the Indian BPO sector through their investment sectors, partnership with large US software firms which they later on convinced to set up operations in India.
• Apparently, BPO is highly concentrated in mostly urban cities around Makati, Libis Quezon City, Ortigas Center, Alabang, Baguio City, Subic and Clark, and Cebu City. Lately BPO investors realized expansion and plan to tap possible and prospective places from Tuguegarao City and Cabanatuan City in the north to Cagayan de Oro City and Davao City in the south to supply unbeatable talents for the growing worldwide demands.
• In terms of compensation among BPO industries in Asia, the Philippines pays in the middle with an entry level call center earning US$5,547 yearly only while an employee with higher expertise level such as team lead earns an average of $9,153 yearly only - offering the US a labor cost savings of over 80 percent. But salary levels in the Philippines is slightly higher than other Asian countries like India and China. On the other hand, Singapore as a high-end BPO destination, pays the highest in the region with an entry level four times higher than what call center agent working in the Philippines is receiving.
• Tax incentives are made available by the Philippine Board of Investments for certain building and special zones in Makati, Manila, Ortigas, and Fort Bonicacio. The government should help identify these tax incentives for certain buildings and even office units that reside in Special Economic Zones (PEZA) where businesses are allowed to avail special tax breaks in these various parts of the Philippines.
• For other benefits, cyberparks provide IT insfrastructure and manpower which is attractive (in terms of cost) to multinational companies. It generates employment and offer high level training to locals. It catalyzes the commercial and retails business in the surrounding areas. And it creates linkage opportunities in areas such as construction constracts, supplies, materials and food packaging supplies.
• The government allows 100 percent (100%) foreign ownership of firms in the Philippines, with regards to the IT industry, that makes the local investors underdogs, unless the company belongs to the “Big Four” , since it is not easy to penetrate or invest in IT Parks. Hence, it needs heavy investments, and building up of infrastructures and systems.
• More so, the true essence of IT Parks in the Philippines, serves as economic zones. The enterprises that are located inside these zones are required to 100% of its production, but PEZA approves only 30% of the production to be sold in the local market.
• Lastly, The BPO market and IT parks in the Philippines are generating dollar inflows through foreign investments and outsourcing made by the foreigners. This in favorable to the country's service sector industry and integral to economic security in the Philippine economy.

References:

Bartolata, Christine Kim, Min Jeong Lao, et. al., Analysis of Information technology (IT) Parks in the Philippines (Specifically, Exposition of Philippine IT Parks and their Economic Effects on the Philippines , httt://iskwiki.upd.edu.ph/index.ph/IT_Parks

Cabalza, Chester, The Boon of the Business Process Outsourcing in the (BPO) in the Philippines, http://cbclawmatters.blogspot.com/2009/10/boon-of-business-process-outsourcing.html

Magtibay-Ramos Nedelyn, Estrada Gemma, Felipe Jesus. (March 2005), An Analysis of the Philippine Business Process Outsourcing Industry, ERD Working Paper, Series No. 93, Asian Development Bank: Mandaluyong City, Philippines.

Tuesday, February 16, 2010

Best Information Technology Parks in the Philippines

Copyright © 2010 by Chester B. Cabalza. All Rights Reserved.

The Philippines is now a hot player and emerging powerhouse in terms of the Information and Communication Technologies (ICTs) around the globe. The country is currently ranked as the "number one BPO destination in the world," and considered as the “texting” or SMS capital worldwide. It is also the "social networking" capital around the globe. One of the most preferred locators for Business Process Outsourcing (BPO). Before the facebook revolution in Arab and African countries, the Philippinies revolutionized "people power" by using the opportunities of technology using the SMS, blogs and internet during the EDSA II Revolution. The Philippines was cited by Global New Economy Index of the Meta Group in 2002 for its “excellent availability” of skilled IT workers with compliment for the Filipinos’ technical and business skills, such as in mainframes, minicomputers, and microcomputers, and for their technical and business skills in ICT projects. To many nationalities around the world, Pinoys are considered one of the best English speakers in Asia. And now “land lords” to all firms and foreign investments related to IT-businesses in the country.

It is said that technology hubs situated around the globe has various tags attached to it. Some call it Techno Parks, Cyber Parks, or less Science Parks. However, by description, IT Parks, which I fondly call Cyberparks, foster new business development and technological innovation by leveraging synergies within the cluster environment. Its legal definition, penned by the Philippine Economic Zone Authority (PEZA), is that IT Parks are areas developed into a complex that is capable of providing infrastructures and support facilities that are needed by the different IT-based industries.

According to the research paper by Batolata, Min Jeong Lao, et. al., they argue that IT Parks are capable of creating international economic relationships with other countries through foreign investments and outsourcing processes. It provides infrastructure and services for business, particularly in the ICT sectors. It also enables knowledge-transfer not only in the aspect of IT and management but also in cultural diversity.

The Philippines is a newly industrialized emerging economy, however, it’s still considered a ‘developing’ country. Hence, cyberzones here, previously under the Export Processing Zone Authority (EPZA), are solely dependent on service sectors, rather than manufacturing and actual technological developments, which has been the turf of mature IT powerhouses in the world.

Cyberparks experience sweet successes in the Philippines primarily because investors in technohubs enjoy substantial benefits offered by the government such as income tax holidays, tax incentives for certain BPO buildings, granting of permanent resident status for foreign investors, and for those who hold ITH option could actually wave them to accept the immediate availment of 5% gross tax income tax incentive. In gist, the Philippines boosts its cost effectiveness or low labor costs, with skilled English speakers who are akin to western cultures. These serve as best reasons why foreigners invest in our IT-related market, as articulated by some researchers.

However, exceptions on cyberparks where ICT are booming vast IT Parks would be PEZA buildings in urban cities such as Makati, Ortigas, Manila, and Fort Bonifacio. Here, tax incentives are made available by the Philippine Board of Investments for certain skyscrapers standing within prime Business Central Districts (BCDs).

Without much ado, below is the list of the Top Techno Parks in the Philippines, ranked by the author in the following order:


1. McKinley Hills Cyberpark (Taguig City) – this 14-hectare posh property and emerging ultra-modern technohub built by Megaworld Corporation inside the extensive 50-hectare mixed-use area of McKinley Hill firmly stands at the lucrative Global City in Fort Bonifacio. The newly-inaugurated ICT Park is fast-attracting top BPO offices and multinational companies (MNCs) because office edifices here are designed conscientiously to fit locators’ specific needs. In a Philstar article, it has reported that investors are pleased at the big floor spaces and convenient dorm residence provided for employees. Likewise, those from older business districts have transferred to McKinley Hill Cyberpark to include BPO firms such as Thomson Reuters, Accenture, CAISTA, et. al. Companies like Lawson and Erricson has also moved in to the new block, including consumer goods companies such as Colgate-Palmolive, Del Monte Fresh, and other multinationals, including Transcosmos, Ingram Micro, Factset, and more.

2. Eastwood City Cyberpark (Quezon City) – the pioneer IT Park in the Philippines is still not threatened by mushrooming cyberparks in the metropolis. It still enjoys a continued growth propelled by outsourcing and offshoring (O&O) sectors. In the study wrote by Batolata, Min Jeong Lao, et. al., they deem that Eastwood City Cyberpark has become a success because of several components: its strength on infrastructures, telecommunication, power, water and sewage system. In my observation, Eastwood has become a trendsetter in live-work-play community within a greater community. Its rhythm is alive and kicking, hosting MNC and BPO offices, while burgeoning skyscrapers flunk within its compound, offering world class entertainment, restaurants, shops, malls, world class cinemas, celebrated Walk of Fame for Philippine celebrities, and luxurious commercial and residential properties.

3. UP-Ayalaland TechnoHub (Quezon City) – the University of the Philippines’ answer to Stanford University’s Silicon Valley or Cambridge University’s MIT’s Route 28. It’s a fact that world-class universities should foster their own Science & technology (S&T) parks, that’s adjacent to their campuses, to provide a venue for industry-academe collaboration in Research and Development (R&D) and to encourage students as well as professors for significant technological innovations. This laboratory techno hub should be instrumental for the country’s national university to be at par with leading research universities around the world and pursue R&D and other technology-oriented programs to produce IT programmers and not the usual service-oriented call center agents.

4. Asiatown Information Technology Park (Cebu City) – the queen city of the south is now ready to take off and be part of the playing field in ICT revolution. This is paralleled to the fulfillment of the current administration’s cyber corridor projects in the Visayas. The ICT milestone in Cebu sits within a 24-hectare mixed use business park, envisioned to attract locators in the information technology services. Asiatown IT Park began in 2001 and opened its doors in 2002 where lucrative BPO offices and other conglomerates were established. According to the report of Palaubsanon, this hugely successful IT Park in Cebu was formerly the Lahug airport but was transformed into the flagship project of Cebu Property Ventures and Development Corporation as the first IT Park accredited by the PEZA in the Visayas and Mindanao. It hosts a total of 44 IT, IT-enabled and BPOs with direct employment of 13,500 employees and an estimated 5,000 workforce for its support services.

5. South Forbes Cyberpark (Santa Rosa City) – the rapid development in the suburbs is coupled with the creation of cyberparks to match with Santa Rosa City’s new status symbol. It’s now hailed as one of the richest cities in Southern Tagalog. The hubs of multinational manufacturing giants like Coca-Cola and Toyota. It’s the home and new Eden for the assembly of world-renowned automakers such as the Ford, Honda, Mazda, Nissan, and Isuzu, taking the shoes of Thailand and Detroit, USA. Based from Philstar’s report, the flourishing exclusive village has its very own Cyberpark that will feature world-class BTS buildings suited for BPOs and contact centers that will enable residents and their adult children to build careers within the city confines.

6. Northgate Cyberzone (Muntinlupa City) – Alabang’s answer to the burgeoning BPO opportunities. In its website, this high-end property covers 18.7-hectares with Cyberzone area located within Filinvest Corporate City. It’s a PEZA registered IT zone which is designed, mastered-planned, and built around the needs of technology-based companies engaged in software design and multimedia, call centers, e-commerce, banking and financial services, as well as other IT support businesses. It provides office buildings and spaces for lease and built-to-suit (BTS) packages. Under the BTS arrangement, companies can custom-build according to their specifications and operational requirements in an expedient and cost-effective manner.

7. Robinsons Cybergate Center (Mandaluyong City)
– a mixed-use cyberhub which is placed at the heart of the sprawling metropolis in the tiger city of Mandaluyong and developed by Robinsons Land. It houses three cybergate towers and other new condominiums. The burgeoning complex is found in corner Pioneer Road, at the mid-artery of the longest road in EDSA. It’s now home to several BPO offices such as the well-known Accenture contact services.

8. Bigfoot Information Technology Park (Lapu-Lapu City) – Filipino animators are known worldwide, some of whom has collaborated with prominent animation studios in Hollywood. Hence, the Philippines is fast gaining recognition as a cost-efficient location for backroom operations and other I.T.-enabled services such as animation, transcription and software development. It’s indeed proper that an offshore studio is placed at the first class and highly-urbanized city of Lapu-Lapu in Mactan Island to host Bigfoot Entertainment, a parent company of Bigfoot Productions, Bigfoot Production Services, the International Academy of Film and Television (IAFT), and Bigfoot Partners that provides facilities, services and training to international filmmakers. This studio is important since the country today has a growing number of young and award-winning independent film-makers who achieve great accolades in international and prestigious film festivals around the world.

9. Subic Science Park (SMBA) – the Presidential Commission for the Central Luzon Growth Corridor (PCCLGC) deems that this special ecozone situated at the former US Naval base, now called the SBMA, is an excellent site for biotech and science parks since there are available skilled and easily trained workers in the area. Many Taiwanese and Korean investors are bullish enough of the opportunities available at the reserved 16 hectares of beautiful investment land. More so, current study shows that SBMA’s exports had averaged a billion dollars since 1997. Cognizant to the grand opening of its Science Park, PLDT has teamed up with SBMA, to put Subic at the frontlines of the country's ICT sector which includes new investments worth more than P40-million, consisting of fiber optics cable that connects Subic Bay to Manila and the entire Luzon grid, and the P20-million Innovation Laboratory (Innolab) of Subictel. Lastly, Subic Bay's ICT infrastructures will cater to BPO operations, retail and manufacturing businesses, and even the hotel industry, that will give add-on to the ballooning investments in this prime ecozone.

10. Ayala, Damosa, Robinsons IT Parks (Davao City) – the largest city and “crown jewel” in Mindanao opens its investment horizons to ICT opportunities, playing hardly its card as the third most significant urban center in the country. While maintaining its competitiveness, three top investors are developing its ICT Parks in Davao to build BPO offices and venture into the new challenges of techno-entrepreneurship. The Ayala Land and Anflocor made a venture to build Abreeza, a P5 billion three-storey ultra-modern designed mall, two BPO offices, a hotel, and residential and commercial buildings. While Damosa Land Incorporated, has 23 hectares of prime lots located along J.P. Laurel Avenue which would accommodate two IT buildings, data building, commercial and a utility building, inspired after Cagayan de Oro City built its first ICT Park in Mindanao. Lastly, Robinsons Davao’s cutting-edge ICT investments is leveling off the playing field by putting up a two level shopping mall and building IT or BPO facilities.

Tuesday, February 9, 2010

You're the Song

Copyright © 2010 by Chester B Cabalza

Upon seeing you at first
I know you have the best
Song to my heart, the zest
An inspiration to my quest

Yes, I stampede so subtle
As I hear the songbird settle
In a made of rock castle
A queen admires kings in battle

Tarry, do I have to reveal?
My heart needs to deal
So I have yet to seal
And hope in you with zeal


February 08 1997

Shine (Original Composition of Chester Cabalza)

Copyright © 2010 by Chester Cabalza

G Em C D
Shine waiting for the brand new day to start
G Em C D
And leaving the dusty road
G Em C D
Shine sharing the happy moment
G Em C D
Yet carrying the heavy cross
G Em C D G
Now is the time to let all things happen in its way

Am A D
Life is full of mystery
Am A D
Shining bright that’s you amidst the dark
Am A D
Take me out of the dark and
G
Shine…

Monday, February 8, 2010

People vs Continente

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

People vs Continente
G.R. Nos. 100801-02
August 25, 2000

Facts:

The Decision dated February 27, 1991 of the Regional Trial Court of Quezon City, Branch 88, in Criminal Cases Nos. 89-4843 and 89-4844 finding herein appellants guilty beyond reasonable doubt of the crimes of murder and frustrated murder, respectively for the killing of U.S. Col. James N. Rowe and for seriously wounding Joaquin Vinuya.

It appears that appellant Donato Continente and several others were initially charged with the crimes of murder and frustrated murder in two (2) separate Informations dated June 20, 1989 in connection with the shooting incident on April 21, 1989 at the corner of Tomas Morato Street and Timog Avenue in Quezon City which caused the death of U.S. Col. James N. Rowe while seriously wounding his driver, Joaquin Vinuya. After the arrest of another suspect, Juanito Itaas, on August 27, 1989 in Davao City, the prosecution, with prior leave of court, filed two (2) separate amended Informations for murder and frustrated murder to include Juanito T. Itaas, among the other accused.

Issue:

Whether accused-appellants are guilty beyond reasonable doubt of the two amended separate informations for murder and frustrated murder?

Held:

Yes. With respect to the extra-judicial confession executed by accused Itaas, the Court finds that such was made pursuant to the Constitution. Although it may be argued that accused resides in Davao, the fact that he could understand Tagalog as admitted by him in his testimony and proven by the proceedings in court where he was answering questions addressed to him in Tagalog militates against his inability to comprehend his right and its subsequent waiver. Counsel for accused contests the independence and competence of Atty. Filemon Corpuz on the ground that said lawyer was a military lawyer. Although the military background of Atty. Corpuz is admitted, this does not automatically disqualify him to act as lawyer for the accused. Proof of the fact that he failed to render his duty to safeguard the rights of the accused must be shown before this court nullifies the weight of Itaas' extra-judicial confession. The allegation of torture similarly rings hollow. No medical certificate had been shown by the accused that he had indeed suffered brutal treatment from his jailers specially since he had alleged to have been treated by a doctor for his injuries."

The following are the appealed Decision of the Regional Trial Court. In Criminal Case No. Q-89-4843, appellants Juanito Itaas and Donato Continente are found GUILTY beyond reasonable doubt of the crime of murder, as principal and as accomplice, respectively. Appellant Itaas, as principal, is hereby sentenced to suffer imprisonment of reclusion perpetua. Appellant Continente as accomplice, is hereby sentenced to suffer imprisonment for twelve (12) years of prision mayor, as minimum, to fourteen (14) years and eight (8) months of reclusion temporal, as maximum. Both appellants Itaas and Continente are ORDERED to pay jointly and severally the amount of P50,000.00 to the heirs of the victim, Col. James Rowe, by way of civil indemnity.In Criminal Case No. Q-89-4844, appellants Juanito Itaas and Donato Continente are found GUILTY beyond reasonable doubt of the crime of attempted murder, as principal and as accomplice, respectively. Appellant Itaas, as principal, is hereby sentenced to suffer imprisonment for six (6) years of prision correccional, as minimum, to nine (9) years and six (6) months of prision mayor, as maximum. Appellant Continente, as accomplice, is hereby sentenced to suffer imprisonment of six (6) months of arresto mayor, as minimum, to two (2) years and four (4) months of prision correccional, as maximum.

Case Digest by: cbcabalza2010

People vs Dasig

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

People vs Dasig
G.R. No. 100231
April 28, 1993

Facts:


Appellants Rodrigo Dasig, Edwin Nuñez and 6 others were charged together of shooting Redempto Manatad, a police officer, as he died while performing duties. Upon arraignment, appellant and Edwin Nuñes entered a plea of "not guilty." However, after the prosecution had presented its first witness, accused Nuñes changed his plea of "not guilty" to "guilty." Hence, the lower court held in abeyance the promulgation of a judgment against said accused until the prosecution had finished presenting its evidence. While trial was still ongoing, Nuñez died on March 10, 1989, thereby extinguishing his criminal liability.

At about 4:00 o'clock in the afternoon, Pfc. Catamora noticed eight (8) persons, one of whom he identified as Edwin Nuñez, acting suspiciously. He noticed one of them giving instructions to two of the men to approach Pfc. Manatad. On August 16, 1987, two teams of police officers were tasked to conduct surveillance on a suspected safehouse of members of the sparrow unit located in Peace Valley, Cebu City. Upon reaching the place, the group saw Rodrigo Dasig and Edwin Nuñes trying to escape. The team of Capt. Antonio Gorre captured Nuñes and confiscated a .45 caliber revolver with 3 magazines and ammunitions, while the group of Sgt. Ronald Arnejo pursued Dasig, who threw a grenade at his pursuers, but was shot on his left upper arm and subsequently apprehended while a .38 caliber revolver with 17 live ammunitions were confiscated from him. Thereafter, Dasig was brought to the hospital for treatment, while Nuñes was turned over to the Metrodiscom for investigation. Dasig confessed that he and the group of Edwin Nuñes killed Pfc. Manatad. He likewise admitted that he and Nuñes were members of the sparrow unit and the their aliases were "Armand" and "Mabi," respectively.

The extra-judicial confession of appellant was signed by him on every page thereof with the first page containing a certification likewise signed by him. However, Dasig contends that the procedure by which his extra-judicial confession was taken was legally defective, and contrary to his Constitutional rights. He further contends that assuming he conspired in the killing of Pfc. Manatad, he should be convicted at most of simple rebellion and not murder with direct assault. Appellant also claims that the custodial interrogation was done while he was still very sick and consequently, he could not have fully appreciated the wisdom of admitting such a serious offense.

Issue:

Whether or not the accused-appellant is liable for extra-judicial killing of the deceased and participated in the act of rebellion?

Held:

Yes. Accused Rogelio Dasig is found guilty of participating in an act of rebellion beyond reasonable doubt and is hereby sentenced to suffer the penalty of imprisonment of eight (8) years of prision mayor, and to pay the heirs of Pfc. Redempto Manatad, P50,000.00 as civil indemnity.

As to the proper imposable penalty, the Indeterminate Sentence Law is not applicable to persons convicted of rebellion (Sec. 2, R.A. 4203), contrary to the insinuation of the Solicitor General. Article 135 of the Revised Penal Code imposes the penalty of prision mayor and a fine not exceeding P20,000.00 to any person who promotes, maintains, or heads a rebellion. However, in the case at bar, there is no evidence to prove that appellant Dasig headed the crime committed. As a matter of fact he was not specifically pinpointed by Pfc. Catamora as the person giving instructions to the group which attacked Pfc. Manatad.

Appellant merely participated in committing the act, or just executed the command of an unknown leader. Hence, he should be made to suffer the penalty of imprisonment of eight (8) years of prision mayor. For the resulting death, appellant is likewise ordered to pay the heirs of Pfc. Manatad FIFTY THOUSAND PESOS (P50,000.00) as civil indemnity.

Case Digest by: cbcabalza2010

Espuelas vs People

Chester Cabalza recommends his visitors to please read the original & full text of the case cited. Xie xie!

Espuelas vs People
G.R. No. L-2990
December 17, 1951

Facts:


On June 9 and June 24, 1947, both dates inclusive, in the town of Tagbilaran, Bohol, Oscar Espuelas y Mendoza had his picture taken, making it to appear as if he were hanging lifeless at the end of a piece of rope suspended form the limb of the tree, when in truth and in fact, he was merely standing on a barrel. After securing copies of his photograph, Espuelas sent copies of same to Free Press, the Evening News, the Bisayas, Lamdang of general circulation and other local periodicals in the Province of Bohol but also throughout the Philippines and abroad, for their publication with a suicide note or letter, wherein he made to appear that it was written by a fictitious suicide, Alberto Reveniera and addressed to the latter's supposed wife translation of which letter or note, stating his dismay and administration of President Roxas, pointing out the situation in Central Luzon and Leyte, and directing his wife his dear wife to write to President Truman and Churchill of US and tell them that in the Philippines the government is infested with many Hitlers and Mussolinis.

Issue:

Whether the accused is liable of seditious libel under Art. 142 of the RPC against the Government of the Philippines?

Held:

Yes. The accused must therefore be found guilty as charged. And there being no question as to the legality of the penalty imposed on him, the decision will be affirmed with costs.

Analyzed for meaning and weighed in its consequences, the article written bybthe accused, cannot fail to impress thinking persons that it seeks to sow the seeds of sedition and strife. The infuriating language is not a sincere effort to persuade, what with the writer's simulated suicide and false claim to martyrdom and what with is failure to particularize. When the use irritating language centers not on persuading the readers but on creating disturbances, the rationable of free speech cannot apply and the speaker or writer is removed from the protection of the constitutional guaranty.

If it be argued that the article does not discredit the entire governmental structure but only President Roxas and his men, the reply is that article 142 punishes not only all libels against the Government but also "libels against any of the duly constituted authorities thereof." The "Roxas people" in the Government obviously refer of least to the President, his Cabinet and the majority of legislators to whom the adjectives dirty, Hitlers and Mussolinis were naturally directed. On this score alone the conviction could be upheld.

Regarding the publication, it suggests or incites rebellious conspiracies or riots and tends to stir up people against the constituted authorities, or to provoke violence from opposition who may seek to silence the writer. Which is the sum and substance of the offense under consideration.

The essence of seditious libel may be said to its immediate tendency to stir up general discontent to the pitch of illegal courses; that is to say to induce people to resort to illegal methods other than those provided by the Constitution, in order to repress the evils which press upon their minds.

Case Digest by: cbcabalza2010