Everything seems to be topsy-turvy at the Palace communications agency, with its lack of direction bursting at the seams, and the crisis is made heavier by an internal conflict.

The head of the office has been reduced to putting out a fire that had started within his turf.

The chief mouthpiece will likely have a short tenure marked by challenges in managing media operations. 

Looking for a replacement with stronger management skills suggests dissatisfaction with his ability to align the administration’s goals and those of his office.

Cracks in the administration’s messaging, including during the midterm campaign, caused the office to fail to align its output with the President’s agenda.

Words are rife in the grapevine about an official being blamed as  author of the “Bobo Ako” ad for boxing icon Manny Pacquiao, who disastrously fell outside the winning circle. It was a fate hard to imagine for the sports hero.

The backlash from the awkward pitch was that even partylist groups associated with Pacquiao such as 1Pacman and MPBL failed to obtain votes for a seat in Congress.

The controversy undermines the messaging arm’s ability to manage the administration’s public image, especially when it is scrutinized over the Duterte feud and the electoral setback. 

A broad change in leadership in several sectors of the administration could restore confidence, but if not handled carefully, it risks further instability.

The call for courtesy resignations suggests an effort to consolidate power. However, frequent turnover in key posts could signal weakness rather than strength, especially if replacements struggle to navigate the same political pressures.

Deeper tensions within the administration were reflected in the communications arm of the Palace which failed to manage a cohesive narrative.            TDT 

Efficiency first

The Philippine Rural Electric Cooperatives Association Inc, the umbrella organization of electric cooperatives, said removing the value-added tax (VAT) on the sale of electricity will benefit consumers, but state revenues will suffer.

The group said Thursday that it supports “the growing clamor across various sectors and lawmakers for removing the multiple value-added tax on electricity.” 

While removing the VAT may give short-term relief, a power sector veteran says the inefficiencies of politically influenced electric cooperatives must be tackled to achieve sustainable improvements. 

Many electric coops, especially in the rural areas, report system loss rates exceeding 10 percent to 15 percent, with some reaching as high as 20 percent to 30 percent that are the major factors for exorbitant monthly bills. 

The National Electrification Administration (NEA) sets a cap of 13 percent for allowable system losses, but numerous cooperatives consistently exceed this threshold. For comparison, efficient utilities globally maintain losses below five to eight percent. Meralco’s system loss is lower than six percent.

High system losses increase operational costs, which are passed on to consumers through higher electricity rates. For example, a cooperative with a 20-percent system loss effectively wastes one-fifth of the electricity it purchases, inflating the bills to cover the shortfall.

Many cooperatives have aging and substandard equipment, such as old transformers and undersized distribution lines, leading to significant technical losses.

Limited capital for upgrades and poor maintenance practices exacerbate energy dissipation.

Also, cooperatives are often managed by political appointees or local politicians who may lack technical expertise. This can lead to mismanagement, prioritizing political patronage over infrastructure investments or operational efficiency.

Decisions like hiring unqualified staff or delaying critical upgrades due to budget misallocation contribute to persistent inefficiencies.

A combination of tax policy adjustments and systemic reforms in cooperative management could better serve consumers while maintaining fiscal and operational stability.

House Bill 32148 seeks to amend the National Internal Revenue Code to exempt electricity sold by generation, transmission, and distribution utilities from VAT.

Removing the VAT on electricity would cut government revenues, but the long-term solution would be to improve the performance of cooperatives or sell them to the private sector if they cannot afford to make improvements.