Conflicts of Interest
Imee Marcos, Ilocos Norte officials apologize to Fariñas over resolutions
The rival politicians from Ilocos Norte eventually patch things up, as Marcos tells Fariñas that they are ‘very, very sorry’ for declaring him persona non grata
https://www.rappler.com/nation/180747-ilocos-norte-imee-marcos-apology-house-farinas
After several hours of debate and argument, Ilocos Norte Governor Imee Marcos and provincial board members apologized to the House of Representatives and to Majority Leader and Ilocos Norte 1st District Representative Rodolfo Fariñas for a resolution and a draft resolution which offended lawmakers.
One by one, members of the board present during a Thursday, August 31 hearing into the alleged misuse of tobacco funds in the province, apologized to both the House and Fariñas. Several of the board members were either personal friends or former local government subordinates of Fariñas himself.
The House committee on good government and public accountability had earlier criticized two resolutions – one which was passed and the other, shelved – regarding an ongoing inquiry. One resolution declared Fariñas, former Ilocos Norte governor, persona non grata over the probe.
Another resolution condemned the probe, criticizing the “tyranny” of the House and accusing lawmakers of holding the probe “in aid of [their] political ambition.” This resolution was eventually archived.
The House committee ordered the provincial board members to explain why they should not be held in contempt for the two resolutions.
“I will propose that in their next session, it be withdrawn with apologies. I think we were all inflamed with concern and worry, and as a result, are very, very sorry that this may, in some way or another, offended or interfered in the operations of the House,” said Marcos, who had signed the resolution declaring Fariñas persona non grata.
After their apologies, Fariñas proposed to “just forgive” the Ilocos Norte officials. The crowd, composed primarily of Ilocos Norte officials and House staff, erupted into applause.
Fariñas, however, warned that the House would not be as kind should the incident happen again. “Let this serve as a warning to all other entities to respect also the proceedings of the House because a repetition of such an offense will be dealt with more severely by the House,” he said.
The House, because of a resolution filed by Fariñas, is looking into the alleged misuse of tobacco funds in the purchase of vehicles for Ilocos Norte. During Thursday’s hearing, documents from the vehicle seller and the local government indicated a P195,000 difference between the selling price and the purchase price declared by the local government.
Six Ilocos Norte officials – those involved in the purchase of the vehicles – were detained by the House for nearly two months for refusing to answer questions properly.
Fariñas, Marcos swap raps of stealing original tobacco fund papers
House Majority Floor Leader Rodolfo Fariñas has called out Ilocos Norte Governor Imee Marcos for her “very cheap and wild desperation shot,” after she accused him of stealing the original documents on transactions using proceeds from the tobacco excise tax.
http://newsinfo.inquirer.net/915402/farinas-marcos-swap-raps-of-stealing-original-tobacco-fund-papers
Marcos claimed in a Wednesday statement that Fariñas’ personnel swiped the original documents from the Commission on Audit’s office inside the provincial capitol. She added that the Ilocos Six officials only declined to give sworn statements on the photocopies presented to avoid the risk of committing perjury.
Sought for comment, Fariñas called out Marcos for “coming up with a yarn” and shot back that “her people stole the original documents and now claim the loss of such as their alibi not to remember the transactions subject of the inquiry”
“Really? Who’s using the loss of the originals as an alibi in not remembering the transactions under question?” he exclaimed.
At the same time, he mocked Marcos for appearing in a July 13 press conference in Manila, where she compared the investigation to the politics of Game of Thrones and quoted: “The North remembers and it never forgets.”
“She even borrowed a line from the Game of Thrones that the North remembers! Really? How come the Amnesiac 6 do not remember the P66.45M cash advances that Imee gave them?” Fariñas said.
“She should appear at the hearing, if she is really from the North, and show the Filipino people how she’ll help the Amnesiac 6 remember their suspicious cash transactions.”
Fariñas also called out Marcos for asking the Supreme Court to prohibit the House good government and public accountability committee’s inquiry while going on “a media blitz for her false statements.”
“The public clearly sees who is spending millions of pesos to cover up the loss of the bulk of P66.45M of tobacco funds,” he said.
The Ilocos Six refers to the following employees: provincial planning and development officer and bids and awards committee chair Pedro Agcaoili, provincial budget officer Evangeline Tabulog, provincial treasurer Josephine Calajate, accountant Eden Battulayan, and treasury office staff Genedine Jambaro and Encarnacion Gaor.
They were detained at the House since May 29 after giving unsatisfactory answers during the committee inquiry on the alleged misuse of P66.45-million tobacco tax proceeds to purchase government vehicles supposedly without public bidding, instead of spending on projects for the benefit of tobacco farmers. SFM
Tobacco Industry Makes Strides in Trump’s Washington
President Trump may have promised to “drain the swamp” of lobbyists in Washington, but six months into his administration it seems the swamp is winning.
http://www.truthdig.com/eartotheground/item/tobacco_companies_trump_administration_20170713
A new report published in The Guardian exposes how tobacco companies are gaining significant political victories under Trump, due to lobbying efforts and the fact that tobacco business insiders have been appointed to top positions in the president’s administration. Jessica Glenza explains:
America’s largest cigarette manufacturers, Reynolds American and Altria Group, donated $1.5m to help the new president celebrate his inauguration. The donations allowed executives to dine and mingle with top administration officials and their families.
Not long after Trump promised to transfer power from Washington to the American people, a wave of spending in pursuit of influence was unleashed. In the first quarter of 2017, tobacco companies and trade associations spent $4.7m lobbying federal officials. Altria, the company behind Marlboro, hired 17 lobbying firms. Reynolds, makers of the Camel brand, hired 13, according to the Campaign for Tobacco Free Kids.
Since then, tobacco companies have been putting points on the scoreboard. Politicians and officials with deep ties to the tobacco industry now head the US health department, the top attorney’s office and the Senate, even as tobacco use remains the leading preventable cause of death.
Agencies in charge of reviewing large mergers let a window slip by in which they might have requested information about a $49bn merger between Reynolds and British American Tobacco (BAT). That merger, expected to be voted through by shareholders next week, will make BAT the biggest listed tobacco company in the world, and puts proceeds from eight out of 10 cigarettes sold in the US into the pockets of two companies: Altria and BAT. …
The Food and Drug Administration has twice delayed legal briefs to defend regulations of e-cigarettes, products cigarette makers say are the future. Summer deadlines for cigar and e-cigarette makers to file applications with the FDA, which regulates the products, have all been delayed by the Trump administration.
And the high-profile attorney Noel Francisco, who once argued for Reynolds that including a quit-line phone number on cigarette packs amounted to government advocacy against smoking, has been nominated for the post of solicitor general, the government’s top attorney.
The companies now securing regulatory wins are also partly responsible for Trump’s victory in the 2016 election. “For Trump’s inaugural celebration, Reynolds American gave $1m. Altria Group gave $500,000,” Glenza reports. “The US Chamber of Commerce, which has been fiercely pro-tobacco in recent years, gave $25,000.”
Prior to becoming president, Trump profited from tobacco companies, Glenza says. His past financial disclosures “show he earned up to $2.1m from tobacco holdings in diversified portfolios,” although he has since claimed (without offering any proof) to have sold his stocks.
Senate Majority Leader Mitch McConnell and members of Trump’s administration including Vice President Mike Pence have deep ties to the tobacco industry. Glenza shows the links between tobacco company donations and pro-tobacco policymaking.
“Tobacco industry influence in Washington is pervasive, in many different ways,” Sen. Richard Blumenthal, D-Conn., a longtime opponent of smoking, tells The Guardian. “As in so many areas, the promise to drain the swamp has been an extraordinary hypocrisy.”
House summons Imee Marcos to tobacco fund hearing
If she fails to attend the July 25 hearing, then the Ilocos Norte governor will be arrested by the House, where her accuser Rodolfo Fariñas is majority leader
http://www.rappler.com/nation/174196-house-subpoena-imee-marcos-ilocos-norte-tobacco-funds-probe
MANILA, Philippines – The House of Representatives has issued a subpoena for Ilocos Norte Governor Imee Marcos to appear at the July 25 hearing on the alleged misuse of P66.45 million worth of provincial tobacco funds.
The subpoena was signed by Speaker Pantaleon Alvarez, House committee on good government and public accountability committee chairperson Johnny Pimentel, and House Secretary-General Cesar Pareja on Tuesday, June 27. A copy of the document was given to reporters on Wednesday, June 28.

Marcos is allowed to bring a lawyer to assist her in answering the lawmakers’ questions. Should she refuse to be assisted by a legal counsel, the governor must issue a waiver.
She must also give the House a copy of a written statement she plans to read as testimony two days ahead of the hearing. Marcos may also request for a conference with any member of the House good government and public accountability panel.
If Marcos fails to show up on July 25, the committee will cite her in contempt and move to detain her in the House. Her detention room is already being prepared.
The House is investigating the province’s tobacco funds after Ilocos Norte 1st District Representative Rodolfo Fariñas, the House Majority Leader and former Ilocos Norte governor, uncovered various documents indicating the money was used to purchase 40 mini-cabs, 5 secondhand buses, and 70 Foton mini trucks.
Under Republic Act Number 7171, 15% of tobacco excise taxes shall be allotted for a special support fund for tobacco farmers in the identified provinces, mostly in the Ilocos region. The money, however, should only be used for cooperative, livelihood, agro-industrial, and infrastructure projects.
Marcos has ignored previous invitations to appear in the hearings, only sending a letter to the committee maintaining the purchases were aboveboard and benefitted farmers.
Rappler, however, discovered documents showing Ilocos Norte’s tobacco funds go to Marcos’ pet projects.
The House is preparing her detention room after she said her brother, former senator Ferdinand “Bongbong” Marcos Jr, had advised her against testifying before lawmakers.
Six Ilocos Norte officials have been detained for giving “dismissive” answers during the hearings. The Court of Appeals had ordered their provisional release, but this was ignored by the House leadership.
This prompted the Ilocos Norte Provincial Board to declare Fariñas persona non grata. Fariñas, in turn, plans to sue the officials for voting in favor of the resolution against him. – Rappler.com
Himachal govt bars its officials from participating in tobacco industry’s activities
The circular has been issued recently in view of the fact that different government departments end up taking sponsorship from tobacco industries, knowingly or unknowingly.
http://www.hindustantimes.com/india-news/himachal-govt-bars-its-officials-from-participating-in-tobacco-industry-s-activities/story-4YLg9v87SRBtgk0Rw5411I.html
Himachal Pradesh government has issued a circular barring its officials from participating in any activity related to tobacco industry.
“All the heads of departments in Himachal Pradesh are instructed not to participate in any event organised by tobacco industry and also not to accept any kind of direct or indirect sponsorship or funding from corporate engaged in tobacco business,” the circular read.
The circular has been issued recently in view of the fact that different government departments end up taking sponsorship from tobacco industries, knowingly or unknowingly.
“Sponsorship from tobacco companies will weaken our tirade against tobacco, in which, Himachal is doing really well,” director health safety and regulation department Raman Kumar Sharma said.
Sharma said there are some events organised by tobacco companies where doctors are invited as technical experts. “Head of departments should refrain from participating in such events. It is equal to endorsing their products,” he added.
The directions have been issued in view of the implementation of The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply, and Distribution) or COTPA Act, 2003.
“Under the act, the direct and indirect advertisement of tobacco product is prohibited. But some tobacco giants sponsor government programme, which is a kind of endorsement of their activities,” health activist Ramesh Badrel said.
Investing in tobacco firms not banned, LIC tells Bombay HC
Mumbai city news: LIC was replying to a public interest litigation objecting to public sector insurance companies investing in firms manufacturing tobacco products
http://www.hindustantimes.com/mumbai-news/investing-in-tobacco-firms-not-banned-lic-tells-bombay-hc/story-ceFSeRSF8q5YNeiRTPRfKL.html
Investing in tobacco companies indirectly is neither prohibited nor banned by any authority, the Life Insurance Corporation of India (LIC) said in an affidavit filed in the Bombay high court.
LIC was replying to a public interest litigation objecting to public sector insurance companies investing in firms manufacturing tobacco products.
“Secondary investment in tobacco companies is neither prohibited nor banned by any authority,” says the affidavit filed by Vikas Chaturvedi, assistant secretary (investment operations) of LIC. “LIC is a corporate body and must function on business principles as far as possible. Ninety-five per cent of its surplus goes to policy vendors,” added the affidavit.
It added that the investment was in accordance with the provisions of the LIC Act, the Insurance Act and guidelines laid down by the Insurance Regulatory and Development Authority, and other prevailing rules and regulations. “LIC looked at several companies with a good track record for investment options,” said the affidavit, adding, “ITC is one such company.”
The affidavit was filed in response to a PIL by anti-tobacco activist Sumitra Pednekar and doctors attached to Tata Memorial Hospital. Meanwhile, the court allowed Karnataka state branch of Indian Medical Association to assist it by listing the ill-effects of tobacco.