BusinessMirror May 16, 2015

BOHOL SUNRISE The majestic colors of sunrise greet tourists on Panglao Beach in Bohol, known for its diving locations and tourist resorts. The islandprovince has revitalized its tourism industry, after it was hit by a powerful earthquake on October 15, 2013, killing 222 people and toppling centuries-old churches. MALOU ABAYONREYES

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THREETIME ROTARY CLUBB OF MANILA JOURNALISM M AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Tuesday, November 2014 10 219 No. 40 Saturday, May 16,18, 2015 Vol. Vol. 10 No.

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ROLLOUT OF CARS WITH EURO 4 ENGINES BY JANUARY 2016 DIFFICULT TO MEET

Automakers thumb down DENR order

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INSIDE

OCAL automotive makers have expressed their opposition to a government order which compels them to manufacture cars with environment-friendly Euro 4 engines, saying the January 2016 implementation date is “too stringent.”

THE NEW WHITNEY Spiritual shepherds

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OT all have done so as Christ himself and His flock expected. Painful as they are, these “dark smudges” are sharp reminders of the “frailty aspect” of the Church. But they also emphasize the “witness” of the good junior shepherds who greatly outnumber those who let God and us down. Indeed, over the centuries, the Church has known wonderful examples of spiritual shepherds who have given their life for the good or defense of their flock. Bishop Romero of El Salvador is one of these in our modern times. Fr. Charlito Colendres, who died while trying to save the drowning victims of the flash floods, is our local “hero shepherds.” In our own terms, we can also be good shepherds for God’s glory and honor. Amen.

EXPLORING GOD’S WORD, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life

SOMETHING LIKE LIFE: FOR THE GRADUATES »D4

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Saturday, May 16, 2015

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THE NEW WHITNEY: ONE OF THIS YEAR’S MOST ANTICIPATED ART EVENTS RUNNING People at 2,616,216 (1978–1979) by Jonathan Borofsky, installed at an upper gallery, is one of the more than 600 works featured in the inaugural show America Is Hard to See. NIC LEHOUX

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OUNDED by Gertrude Vanderbilt Whitney in 1930, the Whitney Museum of American Art—known as “The Whitney”—is a New York City art museum with a focus on 20th- and 21stcentury American art, and this institution last made headlines with a unprecedented retrospective of Jeff Koons some time ago. But that blockbuster exhibit has been replaced by a new gargantua.

Opened on May 1 with the obligatory dedication ceremony featuring US First Lady Michelle Obama and an iridiscent lighting up of the Empire State State Building across town to herald the museum’s latest salvo, The Whitney welcomes the neighborhood once again after a few months off the calendar. And for returning visitors, all is not what it seems.

Most obviously, its location has moved downtown to sparkling new digs designed no less by Renzo Piano. The new address is 99 Gansevoort Street, a place once considered among the farthest from the art world, if there ever was one, as the locus is in the midst of the Meat Packing

District, an area south of Chelsea that was once an industrial zone, now made genteel with efforts to speed up urbanization in some of the final patches of real estate in Manhattan not yet claimed by “civilization.”

The reviews began streaming in months and years before the opening date. The New York Times bannered: “The Whitney Museum, soon to open its new home, searches for American identity.” The Wall Street Journal: “Curators at the Whitney Museum of American Art discuss their largest exhibition to date at their new downtown location.” The New Yorker: “The exhibition will include plenty of crowdpleasers—Hopper, O’Keeffe, Calder’s ‘Circus’—but, with the Whitney’s brilliant chief curator, Donna de Salvo, at the helm, expect major twists in the conventional arthistorical plot.” And last, The Huffington Post: “One of this year’s most anticipated art world events.”

Clearly they were not merely referring to the debut of the new building or the new address. But the new building has made headlines nevertheless.

Piano’s behemoth includes at least 50,000 square feet of indoor galleries and 13,000 square feet of outdoor exhibition

THE Whitney Museum’s new building includes not only space additions but was designed as a response to the needs of the community and the larger art world.

ED LEDERMAN

space and terraces. In addition, an expansive gallery for special exhibitions running upward of 18,000 square feet will make the new Whitney proprietor of the largest column-free museum gallery in the city. Additional exhibition space includes a lobby gallery (accessible free of charge), two floors for the permanent collection, and a special exhibitions gallery on the top floor.

Said Piano: “The design for the new museum emerges equally from a close study of the Whitney’s needs and from a response to this remarkable site. We wanted to draw on its vitality, and at the same time, enhance its rich character. The first big gesture, then, is the cantilevered entrance, which transforms the area outside the building into a large, sheltered public space.

At this gathering place, visitors will see through the building entrance and the large windows on the west side to the Hudson River beyond. Here, all at once, you have the water, the park, the powerful industrial structures and the exciting mix of people, brought together and focused by this new building and the experience of art.”

And that experience of art informs the success of the opening. The show, titled America Is Hard to See, transforms the inauguration of the new building as an “opportunity to reexamine the history of art in the United States from the beginning of the 20th century to the present.”

The title comes from a poem by Robert Frost and a political documentary by Emile de Antonio, and metaphorically celebrates the ever-changing perspectives of artists and their capacity to develop visual forms that respond to the culture of the US, as it also defines the difficulty of neatly defining the country’s ethos and inhabitants, a challenge of limited perception and changing valuations.

But in the more than 600 works in its roster, the exhibition elaborates on the themes, ideas, beliefs and passions that have galvanized American artists in their work within and against established conventions, often engaging political and social contexts.

Numerous pieces that have rarely, if ever, been shown appear alongside beloved icons in a conscious effort to unsettle the canon.

For example, the chapter on Abstract Expressionism—the movement that is an epitomy of the art of the US—opens

with a work by Hedda Sterne, the sole female founding member of the New York School. The review includes paintings

by Lee Krasner, Jackson Pollock, Willem de Kooning, with sculpture by John Chamberlain and Mark di Suvero.

Then comes something unprecedented: Amid the fireworks is a section on experimental abstract cinema from the 1930s to 1950s, from Mary Ellen Bute,

Len Lye and Robert Breer, introducing an underexplored area. These are further complicated by political paintings by Jacob Lawrence and prints by Hugo Gellert, creating turmoil in the neat art historical narrative by adding pockets of creative production not explored in the past.

This sort of iconoclasm will surely raise eyebrows, another reason the new Whitney has become the latest must-see. n

LIFE

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FOR THE GRADUATES D4 Saturday, May 16, 2015

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For the graduates SOMETHING LIKE LIFE

MA. STELLA F. ARNALDO http://stella-arnaldo.blogspot.com @Pulitika2010

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HE 2014-2015 graduation season has just passed and I was happy to see many of my friends posting photos of their children completing their college, high school, grade school...gasp! even kindergarten! (Actually, a few of the photos were surprising: some of my younger friends—who still look like college students themselves—had kids already going off to the university. Wow!) Graduating from high school was especially liberating for many of us who studied in exclusive Catholic schools for girls. Under the watchful eyes of the nuns at Saint Theresa’s, we all tried to be prim and proper ladies that any parent would be proud of.

College was a whole other level.

If I thought I could get away with most of my subjects—except those Math-related—in grade school and high school, our courses at the university seemed designed to extract every drop of sweat and concentration from us students. Even my favorite pastime of reading books became less enjoyable, and seemed more like “work.”

So amid all that, I dabbled a lot in extracurricular activities and joined the student council, the college paper and even the student athletics league. The latter, of course, was just so I could get exempted from PE. And holy Santa Teresa de Avila! There were boys.

Tons of them. In all shapes, forms and persuasions. Sure, we had a few get-togethers with students from all-male Catholic schools back in high school, but I didn’t like attending them as my parents forced me to bring my brother as a chaperone. Eeek! So I decided to wait it out ‘til I got to college, and I wasn’t sorry.

Some may argue that the time we spend in school— from nursery to prep, elementary to high school, and then college—never quite prepares us for the real world, i.e., our careers, our families and our social lives.

But I disagree. For me, I’d say all those years helped me to be more tenacious and persevering—whether it is in my profession or in my relationships.

And because I am in media, all those years put me in touch with so many kinds of people with various temperaments, social classes and behavioral attitudes—a big help when trying to figure out if it would be better to approach that company president

playing with his young daughter in the resort swimming pool, or just wait for his news conference.

I’d also say that having graduated from a specific university also helped me forge social connections that were later helpful in my career. For instance, whenever I found out that a VIP I was about to interview graduated from the same university I did, it was the easiest opening to talk about a recent UAAP basketball match with the rival university, before asking how much his company made last year. (Unless the VIP turns out to have been a nerd his entire life and never cared for sports, then that opening would be a certifiable dud. Fortunately, I can be quite conversant about the latest techie gadgets as well.)

If I were to pass on the important things I learned after graduating from formal education, there probably would be a lot. But for brevity, here are a few: 1. English is still the lingua franca. I don’t care how many people say we are more nationalistic if we are conversant in our own Filipino language; in the real world, international communications are still largely done in English. (It is the reason, for instance, that BPOs have been coming here; we speak English better than

most Asians, although that edge is slowly slipping.) Even the Chinese, who occupy the most number of square kilometers on earth because of their sheer number, are learning English to be able to interact with the world outside their country. And if Manny Pacquiao can learn English, so can you! (A requirement especially if you have kids studying in Brent.)

2. Reading and writing well are essential in social or professional interactions. Be it books, or just the news sites, it’s important to read and be fully informed of current events, the latest trends in your field, and even showbiz gossip. For instance, company heads always need the latest information to plan the direction of their business. So it would be a great help if you could tell him the latest digital trends that could help the company expand its reach, or what a rival firm is doing.

Writing in close-to-perfect grammar just makes communications with the higher-ups or with potential clients so much easier. It expresses our thoughts better and makes our points go across well. It also sends the message that we have organized thinking, and we were

properly schooled, which translates to trustworthiness.

3. Money helps, but it isn’t everything!

Having just graduated from school, it’s best to go for the experience than the highest salary. For instance, working in a call center may give you P25,000 a month at the onset, but then what? Where do you go next?

(In many Western countries, a call-center job is a summer or part-time thing. In our country, it seems to be the be-all-and-end-all aim of most new graduates to be employed in a BPO.) Value the experience, not the money. Also, the more money we have, the more expenses we incur, many of them unnecessary.

4. Try to learn other disciplines other than what you already know. Remember that there are more and more young people graduating and eyeing your job, so it’s best to have an edge and give your boss the best value for his money.

5. Pray. It builds courage and strength. It helps us overcome obstacles and, perhaps, discouraging outcomes from what we had planned. It quiets our thoughts and helps open our mind to other possibilities and futures. n

already making their own rendition of the designs themselves. “They learned so fast. We only needed one session and they were doing their own thing. It was such an amazing, experience especially for me,” Legaspi said.

So far, the workshops have produced several notable art pieces which will be made into several gowns by Legarda.

Three of the gowns will be featured in a fashion show he will stage this month in Los Angeles. In June all the gowns will also be featured in fashion shows to be held in San Francisco during the World Autism Awareness Day, and then in New York during the United Nations Forum on

Autism. The gowns will also be shown during a World Health Conference in Geneva toward the last quarter of the year, Bautista said.

By the end of the year, the gowns will be sold at a public auction in the Philippines. All the proceeds of the sale will be used to sponsor more projects that will develop the full potentials of people with autism. Bien Mateo, program director of the SM Cares Committee on Disability Affairs, said beyond this project, SM Cares will remain committed to providing all the support to ensure that the full potentials of people with autism and those with disabilities are realized.

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PEOPLE with autism participate in the piña painting workshop to launch the Fashion Arts Autism Benefit (FAAB) during the World Autism Awareness Day celebration at the SMMall of Asia, in partnership with Autism Hearts Philippines and SM Cares, the corporate social responsibility arm of SM Supermalls. Also shown are some of their artworks to be featured in international fashion shows this year.

‘CLIPPER CURSE’ LIVES LOS ANGELES Clippers forward Blake Griffin (left) and center DeAndre Jordan fail to close out their semifinal series against the Houston Rockets in Los Angeles. AP

Sports BusinessMirror

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| SATURDAY, MAY 16, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

‘CLIPPER CURSE’ LIVES One moment, they were the reborn Clippers of a fierce Chris Paul and a flying Blake Griffin.

The next minute, they were the same old Clippers of Michael Olowokandi and Benoit Benjamin.

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Los Angeles Times

OS ANGELES—Into 31 years of their sordid Los Angeles history, the Clippers crumbled.

Into 45 years of their awful franchise history, the Clippers collapsed.

Into the worst fears of thousands of Staples Center fans who howled for three quarters, yet wound up stunned and silent, the Clippers cracked.

Attempting to advance to the conference finals for the first time on Thursday night, the Clippers added just another sorry chapter to their horrific saga by blowing a 19-point lead in the final 15 minutes in a 119-107 loss to the Houston Rockets.

One moment, the Clippers were winning the series four games to two and moving to within four wins of a spot in the National Basketball Association (NBA) Finals. The next minute, they were hesitating and gasping and falling backward into paralyzing reluctance and tentativeness.

They were outscored 40-15 in the fourth quarter, and that is not a misprint.

“Whoo, Lordy, Lordy,” said Clippers Coach Doc Rivers when he walked into the press conference room.

One moment, they were the reborn Clippers of a fierce Chris Paul and a flying Blake Griffin. The next minute, they were the same old Clippers of Michael Olowokandi and Benoit Benjamin.

DeAndre Jordan was missing a dunk, Griffin was blowing lay-ups, and Matt Barnes was throwing up an airball, and the Clippers simply stopped guarding anybody. Griffin missed all five of his fourth-quarter shots. Jamal Crawford missed all four of his fourth-quarter shots. Paul made just two-ofseven fourth-quarter shots.

“They wanted it so bad, sometimes when you want something so bad, you can’t get it because you get in their own way,” Rivers said. “They wanted it so bad they couldn’t think straight.”

One minute, the fans were standing, howling, jeering, celebrating and even coronating. The next moment, they were standing with mouth agape and hands on their heads. In the end, many walked away early, throwing their hands up in disgust, one gentleman pointing directly at me.

“Hey, Plaschke, don’t write about this game,” he shouted. “Seriously, just don’t write about it!”

The fans want it to go away, but this one will live forever, and now the Clippers are headed to Houston on Sunday for a Game Seven that could be best described as Seventh Hell.

Of 119 Game Sevens in NBA history, the visiting team has won just 24 times.

Suddenly, it seems like the Rockets could become only the ninth team out of 228 in NBA history to overcome a three-games-to-one deficit to win a series.

The bottom began dropping out on Thursday in the final seven minutes, after the Rockets had closed the gap to six. Paul scored on a lay-up through traffic, and everyone sighed, but that was the beginning of the end.

Josh Smith hit a three-pointer. Paul missed an off-balance rushed shot.

Jordan missed a dunk. Smith hit an open lay-up.

With 4:36, the Clippers still led 102-100, but then Griffin missed a lay-up, and Corey Brewer scored on a fast-break lay-up to tie the score.

Moments later, Griffin missed another lay-up, and, on the other end, Brewer sunk a three-pointer with J.J. Redick showing up late on defense, giving Rockets a three-point lead they never lost.

In the final minutes, to add insult to embarrassment, Jason Terry made a jumper and screamed at the crowd. Later, Smith hit a three-pointer and stuck out his tongue at the crowd.

Rivers warned about this before the game, saying, “Desperation will make you play hard and dumb sometimes.”

The Clippers played really hard, but really dumb, and seemingly scared.

Rivers also predicted that, “We’re going to have a win a game when they play their best.”

Well, for a second consecutive game, that didn’t happen. The Rockets showed up twice in a row in this series, the Clippers lost both games, and now they face questions they thought had been answered in the first round against San Antonio, doubts about their ability to close games.

Before this season, the Clippers had only been this close to a conference finals once, in 2006, when they lost to the Phoenix Suns by 20 points in Game Seven of the conference semifinals. They were never really competitive in the game, and were actually outscored 45-0 at the three-point line.

“We cannot be a one-shot wonder...we cannot be Milli Vanilli,” said Sam Cassell at the time, “We have to be the Jacksons.”

Turns out, nine years later, they reverted to Olowokandis and Benjamins, and history still awaits.

Actually, everyone should have known this would happen. An omen appeared with 2:18 left in the first quarter, with the Clippers rolling and Staples Center rocking.

Just when it appeared that this was the night the Clippers would shine the brightest, the darkest parts of their history walked in the building. Amid much fussing, Shelly Sterling took her seat at midcourt.

For now, the “Clipper Curse” lives.

CAV CA AVS VS EN ENTER EAS EASTT CCON ONFERENCE FINALS

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HICAGO—Cleveland displayed its depth of talent in the absence of strong performances by LeBron James and Kyrie Irving, beating Chicago 94-73 on Thursday to win the series 4-2 and progress to the National Basketball Association (NBA) Eastern Conference finals.

Cleveland’s James struggled to score 15 points while Irving limped off the court in the first half, but Matthew Dellavedova (19 points) and Tristan Thompson (13 points and 17 rebounds) picked up the slack to guide the Cavaliers to the final four of the playoffs for the first time since 2009.

Cleveland is right where it expected to be after James decided to come home from Miami and return to his first team. The Cavaliers didn’t expect to get there like this though, with Kevin Love suffering a season-ending shoulder injury in the opening round and Irving playing through leg injuries.

“These guys work their tails off every single day when you guys are not around,” James said of the lesser-known players who stepped up. “I’m a little bit

surprised because of how we’ve handled the postseason so far. These are first-timers right here (Dellavedova and Thompson), as well as Kyrie and Kev before the injury. They want to be good, they want to be great, and every single day they prepare the right way.”

Irving scored six points in 12 minutes before twisting his left knee when he came down on Thompson’s foot early in the second quarter. The score was 35-35 and he did not return.

James had 11 assists and nine rebounds but hardly looked like the superhuman that carried Cleveland in Game Five. He shot sevenof-23 from the field and missed all four three-point attempts in this game. But the Cavaliers had more than enough to get by, setting up a meeting with Atlanta or Washington.

It is James’s fifth straight conference finals, the previous four with Miami.

“I do everything for my team, do everything for my teammates,” James said. “I want these guys to be able to feel this moment. That’s what I came back here for. I’ve got four guys that never made the postseason that played a huge role on this team.”

Jimmy Butler led Chicago with 20 points and Derrick Rose finished with 14. Pau Gasol scored all of his eight points in the first quarter after missing the previous two games with a strained left hamstring, and the Bulls simply got overmatched in what could be their final game under Coach Tom Thibodeau.

There is heavy speculation that he could be out because of friction with management despite leading Chicago to playoff appearances in each of his five seasons.

“Until they tell me I’m not, I expect to be here,” he said. “That’s the way I’m going to approach it.”

Iman Shumpert scored 13 points for Cleveland. Dellavedova, James Jones and J.R. Smith (12 points) all hit three three-pointers and combined to score 40 points.

SPORTS LEBRON JAMES is on his way to a fifth straight Eastern »Conference finals but not without some help from the Cleveland Cavaliers bench. AP

Automakers said the Department of Environment and Natural Resources’s (DENR) Administrative Order (DAO) 2015-04 could also cause them to incur losses and additional expenses.

“It’s just not a matter of the availability of the fuel. Our immediate concern is the existing models we’re offering. We thought that the DAO’s application is prospective. We talked to the DENR, and they confirmed that that’s not the case,” Chamber of Automotive Manufacturers of the Philippines Inc. President Rommel R. Gutierrez said.

DAO 2015-04 provides the new vehicle-emission standards to be complied with by new and in-use vehicles starting July 1. It also enjoins the Department of Energy to ensure the availability of Euro 4 fuels by this date.

Considered the cleaner fuel, the DENR said Euro 4 has sulfur content of only 50 parts per million (ppm) for both diesel and gasoline, compared with 500 ppm for Euro 2.

Benzene in Euro 4 gasoline is only 1 percent by volume compared to 5 percent in Euro 2. It also provides S “A,” A

LEGOLAND A miniature model of famous Filipino stores made out of Lego pieces is displayed outside the first-ever Lego-certified store

in the Philippines, which opened on Tuesday. Located at the Park Triangle in Bonifacio Global City, Taguig, the store will hold monthly “Mini Build” events for kids to showcase their construction talents. ALYSA SALEN

DRY SPELL TO CUT RICE OUTPUT IN Q2PSA

Artworks of Pinoys with autism headed for international fashion shows LAUNCHING the Fashion Arts Autism Benefit (FAAB) project during the Eighth World Autism Awareness Day Celebration at the SM Mall of Asia Music Hall, Solinda Bautista, Autism Hearts Philippines director, said piña gowns with the hand-paintings of Filipinos with autism will be featured in several fashion shows lined up this year starting next month in the US and Europe.

Bautista said this will be the first time that artworks of people with autism will be featured in gowns in a fashion show.

The FAAB launching was made possible in partnership with SM Cares (www.smcares.com.ph), the corporate social responsibility arm of SM Prime Holdings Inc. Bautista said the project started when the idea was broached by Erlinda Borromeo to US-based Filipino designer Anthony Legarda on the need to showcase paintings made by children with autism. Legarda, who is also a textile technologist, suggested that the piña fabric should be used as canvas for their artworks since it is indigenous to the Philippines.

“We want to showcase Filipino products and Filipino ingenuity. And we’re not just talking ordinary talent here but extraordinary gifts coming from very special people,” Legarda said.

The participants underwent a workshop under visual artist and piña cloth expert Anna India Legaspi to teach them the basic techniques of painting on piña cloth. Legaspi said only after a threehour session, the participants, namely Vico Cham, Nick Huang, Ralph Sy and Nina Bartolo, not only learned the basics of painting on piña cloth but they were

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HE country’s palay production could go down by 4.21 percent to 3.9 million metric tons (MMT) in April to June this year, from 4.07 MMT recorded in the second quarter of 2014, due to the dry spell, the Philippine Statistics Authority (PSA) said on Friday.

In its latest report, titled “Rice and Corn Situation Outlook,” the PSA said harvest area in the second quarter may contract by 2.29 percent to 918,000 hectares, while yield may go down to 4.25 metric tons (MT) per hectare, from 4.34 MT per hectare.

“In Soccsksargen some palay areas at vegetative stages were damaged by the dry spell felt throughout the region. They delayed planting activities in South Cotabato and Sultan Kudarat due to the closure

PESO EXCHANGE RATES n US 44.5690

PANGILINAN said the National Irrigation Administration is implementing the “quick turnaround” scheme, waterdistribution rotation and is using watersaving technologies.

of some irrigation facilities of the National Irrigation Administration,” the report read.

The PSA said it also expects cutbacks in palay harvest in Mimaropa, Central Luzon and the Bicol region due to insufficient water supply and intense heat in most of the provinces.

“In Western Visayas contraction

in harvest area may be attributed to insufficient water supply and shifting to other crops, such as mongo and watermelon,” the report read.

The forecast in the April-to-June period, the PSA said, was based on standing crop. Presidential Assistant for Food Security and Agricultural Modernization Francis N. Pangilinan assured that measures are already in place to help rice farmers cope with the dry spell caused by the El Niño weather phenomenon.

Pangilinan, who is also chairman of the National Irrigation Administration’s (NIA) board, said the NIA is implementing the “quick turnaround” scheme, water-distribution rotation and is using watersaving technologies.

The NIA has also encouraged S “R ,” A

SM Prime gets deal for $3.1-B Cebu reclamation venture

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M Prime Holdings Inc. was awarded a deal to reclaim and develop land in the central Philippine province of Cebu in a project valued at P138 billion ($3.1 billion).

The 1,500-hectare (3,707-acre) redevelopment may be completed in eight years, SM Prime Executive Vice President Jeffrey C. Lim said in a mobile-phone message on Friday.

Adelino B. Sitoy, mayor of the town of Cordova, confirmed the venture with SM Prime, subject to the approval of President Aquino.

“This will be the biggest reclamation in the country,” Sitoy said in a phone interview. Cebu province, including Cordova, will have 51 percent of the reclaimed area,

where a cruise-ship terminal, a university, a hospital and mixeduse developments are planned, the mayor said.

SM Prime, owned by the nation’s richest tycoon Henry Sy Sr., is also waiting for the national government approval on two reclamation proposals in the neighboring cities of Parañaque and Pasay in Metro Manila worth a combined P100 billion.

The Cebu Provincial Reclamation Authority will endorse the project to the main agency in Manila next week, Sitoy said.

“SM is replicating the success of the Mall of Asia reclamation project in Manila,” said Anton Alfonso, an analyst at RCBC Securities Inc. in S “SM P,” A

n JAPAN 0.3740 n UK 70.3254 n HK 5.7506 n CHINA 7.1872 n SINGAPORE 33.7849 n AUSTRALIA 35.9747 n EU 50.8711 n SAUDI ARABIA 11.8851 Source: BSP (15 May 2015)

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Saturday, May 16, 2015

Oil trader Andurand sees US, Opec supply capping prices

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il supply from both Opec and US shale drillers is set to expand later this year, preventing further gains in prices, according to hedge-fund manager Pierre Andurand.

Oil prices will remain “relatively low” for the next two years, as a rebound in recent months allows US producers to revive slowing output, said Andurand, who generated a 38-percent return in 2014 from wagering that oil would fall. At the same time, members of the Organization of the Petroleum Exporting Countries (Opec), including Saudi Arabia, the United Arab Emirates and Kuwait, are raising their production amid concerns demand is nearing its peak, he said.

“We’ll be in a market where both US

Automakers. . .

production will go up and Opec,” Andurand said in a Bloomberg Television interview with Stephanie Ruhle at the Commodity Debate conference in New York on Thursday. “It’s going to be difficult for prices to go much higher in the short term.”

Andurand in March told clients that US benchmark oil prices would drop to around $30 a barrel in the following two months, as crude stockpiles expanded in Cushing, Oklahoma, the largest oil-storage hub in the US. While government data showed that invento-

ries did keep growing at Cushing until April 17, US oil prices have surged to about $60. West Texas Intermediate oil fell 16 cents to $59.72 a barrel in electronic trading on the New York Mercantile Exchange at 12:10 p.m.

Singapore time on Friday.

Andurand started his $450-million Andurand Capital Management hedge fund in 2013, the year after the firm he cofounded, BlueGold Capital, shuttered with losses of 34 percent. Andurand had previously traded oil at commodity firm Vitol Group.

BlueGold had managed about $2.2 billion at its peak, having almost tripled its value by correctly betting on higher oil prices in the first half of 2008 and then reversing the strategy.

The fund started trading in February 2008 and returned 209 percent that year, 55 percent in 2009 and 13 percent in 2010.

Besides the potential for more supply from Opec’s “core” Gulf members, there’s

scope for additional output from Iran, which would deepen the current surplus, Andurand said.

Iran could restore 500,000 barrels a day of oil exports within six months of an agreement on its nuclear program, and increase shipments by 1 million a day within 12 months, Andurand said.

Iran’s exports have been cut by about 50 percent since 2012 to roughly 1 million barrels a day because of sanctions that the United Nations, the US and the European Union have imposed over its nuclear program, according to the International Energy Agency.

The nation is in talks with six world powers to reach a final accord to lift sanctions in exchange for curbs on the Islamic Republic’s nuclear program, with a deadline of June 30.

“That will hit the market when inventory levels are already high and the market is already oversupplied,” Andurand said. Bloomberg News

of Mitsubishi Motors Philippines Corp., said the new DENR order will cause a “bigger headache,” as most buses and taxis will not be able to comply with it.

“It’s not only us that will be affected.

This will also affect fuel suppliers. Then there will be a crisis, [as] operators of jeepneys and buses may not be able to

comply,” Santos said.

“Who doesn’t want to have cleaner air? But the question is the timing. If we are able to get Euro 4 compliant engines abroad, that’s good; but will our customers respond to the sudden hike in pricing? We want a reversal of that DAO to consider the inputs of the industry,” he added.

Continued from A1

that all new vehicles to be used or introduced into the Philippine market by January 2016 must be equipped with Euro 4 engine and compliant with Euro 4 emission standards.

Automakers said they are unlikely to rollout Euro 4-compliant cars by January 2016. Gutierrez said they will appeal to the DENR for some “flexibil-

ity,” as they will not able to sell existing models with engines that are not Euro 4-compliant.

“This affects not just manufactured models but those being imported, too.

Mas marami ang hindi mag-ko-comply come January. Hindi kaya ang January,” Gutierrez said.

Dante Santos, first vice president

news@businessmirror.com.ph

Rice output. . .

Continued from A1

farmers to plant early-maturing rice varieties and drought-tolerant rice varieties to save on water.

“It was reported to us that most of Luzon has had a good harvest because of the adjusting of the planting season. By the time the driest months arrived, it was already time for harvest.

But, despite this good news, the dry spell has affected most of Mindanao and the rest of the country, that is why we continue our efforts in mitigating the effects of El Niño,” Pangilinan said in a statement.

Aside from the measures being implemented by the NIA, Pangilinan said the government is conducting cloud-seeding operations in the watershed areas of Angat, Magat and Pantabangan dams.

“The government is not taking this El Niño situation sitting down, and we will continue to assess and implement appropriate measures to lessen its impact on our yields and our farmers,” Pangilinan said.

The PSA said palay output in the July-to-September period will recover. Based on farmers’ planting intentions, output is projected to increase by 11.7 percent to 3.38 MMT, from 3.03 MMT posted in 2014.

“Harvest area may expand from 774,000 hectares to 872,000 hectares, or by 12.73 percent. Yield per hectare may decline from 3.91 MT in 2014 to 3.88 MT in 2015,” the report read.

“All regions, except Soccsksargen and Central Visayas, are foreseen to increase production,” it added.

From January to March this year, PSA data showed that palay production rose by 1.41 percent to 4.37 MMT. Meanwhile, the PSA said corn output in the second quarter could go down by 14.38 percent to 1.02 MMT, as harvest area is expected to decline by 13.84 percent to 335,810 hectares.

“Soccsksargen, Davao region, Cagayan Valley, Bicol region and Northern Mindanao may post significant reductions in production and harvest area. In Soccsksargen production may probably decrease due to delayed cropping caused by insufficient water supply,” the report read.

In Cagayan Valley the PSA said farmers are shifting to cassava, tobacco and other “temporary” crops to cope with the dry spell. Cagayan Valley is one of the major producers of corn in the Philippines.

Based on farmers’ planting intentions, the PSA said corn production may recover and grow by 4.25 percent in the Julyto-September period.

Output is expected to reach 2.55 MMT in the third quarter.

In the first quarter, the PSA said corn production expanded by nearly 4 percent to 2.37 MMT.

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Saturday, May 16, 2015 A3

Palace confirms intl concern over Chinese encroachments

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By Butch Fernandez

ALACAÑANG has acknowledged serious concerns raised here and abroad over the unrelenting Chinese reclamations in parts of the Kalayaan Island Group belonging to the municipality of Kalayaan, Palawan, but the Palace has yet to confirm if President Aquino is ready to convene the National Security Council (NSC) to tackle the matter.

“The concern regarding freedom of navigation in the West Philippine Sea is shared not only by claimantcountries, like the Philippines, but also by other responsible members of the international community,” Palace Deputy Spokesman Abigail Valte said on Friday.

Valte added: “Other issues at stake include the unimpeded flow of commerce and the region’s marine

‘BBL is our best chance for peace’

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ORO National Liberation Front (MNLF) Chairman Datu Abul Khayr Alonto said on Friday that the proposed Bangsamoro basic law (BBL) is the best chance to achieve peace in Mindanao and build genuine autonomy that the Bangsamoro people struggled and aspired for decades.

“Ang BBL ang ating pinaka-mabisang batas upang maisakatuparan ang maayos na awtonomiya na hangad ng Bangsamoro sa ilang dekada. Ang BBL ay naayon sa sinabi sa Saligang Batas na karampatang awtonomiya para sa Muslim Mindanao at makikinabang dito lahat ng Bangsamoro at lahat ng Pilipino,” Alonto said in a statement.

The draft BBL, pending passage in Congress, implements the Comprehensive Agreement on the Bangsamoro (CAB), which was signed by the government and the Moro Islamic Liberation Front (MILF) on March 27, 2014.

Alonto appealed to lawmakers and the public to understand the importance of the passage of the BBL as key to implementing the signed CAB. “Our lawmakers have the historic role to pass this draft BBL, which is inclusive of all Bangsamoro and that shall end internal armed conflict in the south.”

He says the BBL shall be beneficial to all as it aims to achieve genuine political and fiscal autonomy and build on the gains of the current Autonomous Region in Muslim Mindanao.

“There is no alternative to BBL. If the BBL is not passed, many of our Bangsamoro brothers and sisters in MILF will lose faith in the peaceful process of negotiating and implementing a peace agreement. They committed to transform into civilian life when the Bangsamoro is created. But, this will only happen if CAB is successfully realized.”

In March 2014 Alonto and MILF Chairman Al Haj Murad Ebrahim in a statement expressed a reiteration of MNLF’s support to the “full implementation of the CAB” as published in the MNLF Declaration of Unity at Lama Mardeka.

The statement also cited that both Moro fronts agree to “continue working together to foster strong unity, solidarity and brotherhood as one Bangsamoro people.”

Alonto is a founding leader of the MNLF and first vice chairman of the original MNLF Central Committee.

Alonto expressed his support to BBL passage in various consultations conducted respectively by the House of Representatives, the Senate, and the government peace panel.

environment, which are legitimate concerns shared by other nations, such as the United States.”

Foreign Secretary Albert F. del Rosario agreed that the South China Sea dispute is seen “as the most important issue in the world today.”

Speaking at the launch of the US-Philippines Strategic Initiative (USPSI) at the Center for Strategic and International Studies (CSIS) in

Washington, D.C., del Rosario also noted that “the goals of the US and China are so diametrically opposed, the outcome of the contest is capable of impacting international order,” in apparent referrence to the serious threats to navigational freedom and world commerce given that half of global trade passes through those maritime areas.

Officials mum on NSC

MALACAÑANG officials, however, were mum, when asked on Friday if President Aquino would heed proposals to convene the NSC to address a problem seen to arise from massive Chinese reclamation activities in the West Philippine Sea, which straddles vital sea lanes.

A Department of Foreign Affairs official earlier suggested convening the NSC to tackle the sea row with China as “a step in the right direction” given the unabated Chinese encroachments and rapid reclamation activities in the West Philippine Sea territories.

But DFA Spokesman Charles C. Jose could not confirm if the proposal had been formally conveyed to Malacañang and whether President Aquino already agreed to convene the NSC.

The proposal for the President to call a meeting of the NSC, which includes top officials from the foreign affairs and security clusters, was first suggested last year in the wake of reports citing Chinese intrusions and reclamation work in the Mischief Reef and adjacent islets.

After the reported Chinese encroachments were verified, del Rosario himself warned that China would eventually enjoy de facto control of vital sea lanes in the West Philippine Sea, if left unchecked.

US Navy patrols

THE proposed US military “freedom of navigation” operations in the South China Sea may prod China to more clearly explain what it considers to be its territory—and why.

While countries like the US and the Philippines have long urged China to set out the legal basis for its claim to more than 80 percent of the South China Sea, leaders in Beijing have relied on history and a nine-dash line drawn on a 1940s map, alongside their increased military clout.

Now, Defense Secretary Ashton Carter has asked the Pentagon to consider expanding patrols in disputed areas of the sea, including into a 12-nautical-mile (22-kilometer)

radius of the reefs China has been building on. Such actions, known as freedom of navigation challenges, could elicit protests from China and pressure it to explain the rationale for its assertions.

“The point is to put as many pressure points on China at every opportunity, without being overly aggressive, and make it more and more uncomfortable about what they are doing and what they are claiming,” said Gregory Poling, a Southeast Asia specialist at the Washington-based Center for Strategic and International Studies.

Keeping tensions down in the waters is key, given about half the world’s merchant ships pass through the area every year. Freedom of navigation operations is not unusual for the US Navy, which in the year to September 2014 challenged 19 nations, such as Indonesia, Malaysia, the Philippines and Vietnam, for the way they manage their territorial waters.

Alongside China, five other governments, including those of Vietnam and Taiwan, contest territory.

China’s reclamation work, where it has been creating artificial islands, has set off alarms that its ultimate aim is control of the South China Sea.

Submerged rocks

while saying that it takes no sides in the disputes, the US contends that China’s claims are ambiguous because maritime territory is derived from land features under the United Nations Convention on the Law of the Sea (Unclos), which China has ratified.

The Philippines has sought international arbitration under Unclos for its dispute with China over the Spratly Islands. China has said it will only discuss the spat directly with the government in Manila.

Any US naval operation could involve its vessels passing close to the structures China is building on rocks and reefs that are submerged at high tide. These aren’t legally entitled to a 12-nautical-mile territorial zone under the Unclos.

“New features built on low-tide elevations are legally artificial islands entitled under international law to no more than a 500-meter [1,640foot] safety zone,” said Poling.

If China were to protest US vessels sailing too close to one of these features, it would be obliged to argue that the former low-tide elevation is now a rock or an island. “That would place Beijing in an absurd legal position,” Poling said.

Workplace dangers stalk Pinoy workers–ILO

By Cai U. Ordinario

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HE death of more than 70 workers in a footwear factory in Valenzuela City is just one of the dangers faced by Filipino workers in the Philippines, according to the International Labour Organization (ILO).

ILO Director General Guy Ryder said the safety of workers cannot be overemphasized enough in light of these tragedies. He said these kinds of tragedies are preventable.

“Once again, we find ourselves mourning workers whose lives have been cut short as a result of workplace accidents. Often such accidents are preventable,” Ryder said.

“Everyone has the right to work

in a safe and healthy environment, regardless of the industry they are in or the type of work that they do,” he added.

Ryder said workplaces must be kept safe by improving work conditions, especially in places like factories, where most of the lowskilled workers are working.

He said there must be regular inspections to ensure that factories comply with structural, fire and electrical safety.

This will help protect workers from work hazards.

Ryder added that there is a need to ensure workers’ rights, especially freedom of association and collective bargaining.

“As always, the ILO stands ready

to assist, working with employers, workers and their organizations and all stakeholders to improve safety and health conditions in the workplace,” Ryder said.

The Delegation of the European Union (EU) to the Philippines, for its part, expressed concern over the poor labor conditions of workers in the country.

The EU said workers in the country continue to be subjected to the lack of proper safety standards that might have contributed to the shocking high number of victims in tragedies such as the Valenzuela fire. Nonetheless, the delegation welcomed the investigation, launched by the authorities to determine the cause

Leakage of Amlac report creates chilling effect on business–Binay

By Recto Mercene

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HE leakage of the Anti-Money Laundering Council’s (Amlac) report that led to the freezing of 242 bank accounts, five of which are allegedly in Vice President Jejomar C. Binay’s name, creates a “chilling effect” on the business community, Binay said on Friday.

Speaking at the 36th National Conference of Employers, the Vice President described the Amlac report as “whimsical” and expressed hope that the issue would be resolved soon.

“Let us all hope this whimsical use of regulatory powers is stopped sooner than later. It creates a chilling effect on confidence in business and banking system that is detrimental to our economy and development,” he said.

Binay jested that he hopes no one among the participants will be invited to attend the Senate Blue-Ribbon subcommittee hearings for being called his friend.

“Now that I have referred to you as dear friends, I hope you will not get an instant invitation from the Senate Blue-Ribbon subcommittee to prove you are not my dummies, and your companies, not my dummy corporations,” he quipped.

“It is also my prayer your bank accounts will not be subjected by Amlac to a freeze order solely on the basis of our friendship and association, or the fact that you are in the same room as Jojo Binay,” he added.

The Vice President lamented the order, saying it is being used to persecute persons affiliated with him.

“Such is the sad fate of some honest and hardworking businesspersons I know. They were publicly ridiculed, intimidated and harassed, and their bank accounts now frozen simply because they happened to be my friends,” he said.

Binay said he was not surprised that Amlac’s report had been leaked to other parties even as he himself has not yet received a copy.

“Hindi ko na tatanungin kung paano nakakuha

ng report na ayon sa batas ay confidential, dahil alam ko naman kung bakit inilabas ang report na ito,” he said, noting that Amlac’s report was one-sided as it has yet to include his responses to the findings.

“Ito po ang sabi ng Amlac. One sided lamang ang nasabing report at hindi kami binigyan ng pagkakataong makapagpaliwanag. Uulitin ko ang sinabi ko kahapon: The Amlac is wrong. Malingmali ang Amlac,” he said.

“Nalaman ninyo sa media na ako daw ay may 242 bank accounts. Tinalo ko pa si Bill Gates at Warren Buffet at hindi ko alam na may ganitong karaming bangko sa Pilipinas,” he added.

Binay clarified that the funds in his bank accounts came from his income, savings and investments before he joined the government, as well as the campaign donations when he run for vice president in 2010.

Sinasabi din ng Amlac na ang tanging pinagmulan ng kita ko ay ang sahod na tinatanggap ko bilang inyong Pangalawang Pangulo kaya hindi tugma ang aking kita sa halagang nilalaman ng aking mga bank accounts. Wala pong katotohanan ito,” he said.

“Hindi po itinagong yaman ang sweldo ko bago ako naging mayor. Hindi po itinagong yaman ang kinita at naipon namin sa pagiging duktor ng misis ko at sa pagiging abogado at guro ko, at sa mga negosyo na nasimulan ko noon pang dekada otsenta. Nagbabayad kami ng tamang buwis sa aming mga negosyo,” he added.

He added that the campaign contributions he received were duly reported to the Commission on Elections (Comelec).

“Hindi rin itinagong yaman ang mga campaign donations na deklarado sa Comelec. Maling-mali ang Amlac. At mas lalong mali na sabihin nila na akin ang dalawandaan at tatlumpu’t pitong accounts ng ibang mga tao, kasama na dito ang mga kilalang negosyante at investor,” he said.

“I remain hopeful that our business sector remains resilient to the oppressive heat of politics and remains focused on the bigger tasks ahead,” he added.

of this tragic factory fire.

The delegation also welcomed the governments’ determination to ensure strict compliance of all factories across the country with occupational safety and health standards, in line with international labor standards including ILO conventions.

Labor safety standards must be upheld, especially under the A sean Economic Communit y (AEC) or the single market that will integrate the 10 Asean member-states, including the Philippines, be the end of the year.

This would mean freer flow of goods, services, investment and skilled labor will impact the structure of the economy, as well

as jobs, skills, wages and labor mobility in the region.

Under the AEC, the ILO and Asian Development Bank said there will be an over 60-percent increase in demand for low-skilled workers.

Further, there is a projected 60-percent increase in the demand for high-skilled employment, such as managers, professionals, technicians and associate professionals.

Medium-skilled employment could also grow by around 25 percent. This covers mainly clerks, craft and related trade workers, plant and machine operators and assemblers, and service and sales workers.

Economy

A4 Saturday, May 16, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Missionary areas get P1.062-B budget hike for 2015–Napocor

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By Lenie Lectura

HE National Power Corp.

(Napocor) on Friday said that a rise in the demand for electricity in far-flung areas of the country has prompted a budgetary revision for the year.

“The growth of business and economic activities in the missionary areas has prompted Napocor [to] augment its P17.302-billion budget for 2015, with another P1.062 billion, or an additional 6 percent that will come from its internally cashgenerated funds,” the state firm said.

The Napocor is forecasting an increase in subsidy payments to private power suppliers, thus, the need for augmentation of its budget for the new power providers (NPPs) and qualified third parties (QTPs).

For 2015 the NPPs and QTPs updated energy sales are projected at 604 gigawatt hours (GWh), representing an 18-percent increase from its original forecast for the year of 511 GWh. “The increase in demand is mainly because of the upsurge of economic activities and the improved living standards in the islands after boosting electric supply in new growth areas in Palawan, Mindoro, Catanduanes, Masbate and Siquijor,” Napocor President Ma. Gladys

Cruz-Santa Rita said.

The additional P1.062-billion budget for this year includes P944million augmentation budget intended for the October to December 2015 requirements for existing NPPs and QTPs and the realignment of P118-million budget to cover the requirements of additional NPPs, which recently received approval to operate from the Energy Regulatory Commission.

The NPPs and QTPs operating in missionary areas are the Palawan Power Gen Inc., Delta P Inc., DMCIMasbate, Ormin Power Inc., Power One, Mindoro Grid, Catanduanes Power Generation Inc., Power Source Philippines Inc., DMCI-Palawan, Bantayan Island Power Corp., Siquijor Island Power Corp. and Calamian Island Power Corp.

Meanwhile, the new NPPs that started operation earlier in 2015 are Sunwest Water and Electric Co. in Catanduanes and DMCI-Calapan in Mindoro.

Introduced by the Department of Energy in 2004, the government’s

Private Sector Participation Program in the missionary areas has already attracted a total of 16 private power suppliers in the off-grid areas. The program’s main purpose is to accelerate the total electrification of the country and encourage the inflow of private capital in missionary electrification.

Moreover, the Small Power Utilities Group (SPUG), implementing arm of Napocor in providing electricity in missionary areas that are not yet taken over by NPPs and QTPs, also forecasted an increase in demand from 399 GWh in 2014 to 448 GWh in 2015. This is due to the extension of service hours of some power plants and the electrification of new areas. Napocor has identified a total of 1,130 missionary areas that are yet to be energized.

Napocor has recently extended the operating hours of some 53 SPUG plants and put into full 24 hours of operation its plants in the municipalities of Culion, Taytay, El Nido and San Vicente in Palawan, and Caluya in Antique.

news@businessmirror.com.ph

K to12 seen to boost PHL’s human capital

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he K to 12 Basic Education Program now being implemented in the Philippines can further boost its human capital, Makati Business Club (MBC) Executive Director Peter Perfecto said.

“Amid criticism over the K to12 Program, we expect K to 12 implementation over the medium term to turn low-skilled and unskilled workers to at least become medium-skilled workers,” Perfecto said.

On Wednesday the World Economic Forum reported that the Philippines ranked 46th in its Human Capital Index 2015, jumping by 20 notches from its 66th position in the 2013 Report.

The report now shifts measuring human capital to learning and employment outcomes from assessing the human capital through four pillars, including education, health and wellness, work force and employment, and enabling environment in its previous report.

The 2015 report measures education and economic participation on five age groups: under-15 age group, 15 to 24 age group, 25 to 54 age group, 55 to 64 age group, and 65 and over age group.

Among age groups, the Philippines is the most competitive in Southeast Asia in the 15 to 24 age group, as the country ranked 20th among 124 countries worldwide. Singapore was closest at 22nd.

However, the country’s lowest

ranking is in the under-15 age group which it only placed 73rd.

“More work, however, needs to be done, especially in the under-15 age group where we rank 73rd (fith in Asean).

Again, it will be important that we do not reverse or delay K+12 implementation,” Perefecto said.

“The results also underscore the need for government and private sector to implement the K to 12 Basic Education Program to improve education outcomes in the under-15 age group,” he added.

He added that the government should continue the Conditional CashTransfer Program in order to significantly reduce incidence of child labor.

“Aside from the high quality of our education system to meet the needs of a competitive economy, businesses can also rely on the country’s edge on the quality of business schools, and availability of research and training services,” Perfecto said.

Meanwhile, in the World Economic Forum’s Report, the Philippines has the second most competitive human capital in Asean only next to Singapore which rank 24th; Malaysia at 52nd; Thailand at 57th; Vietnam at 59th; Indonesia at 69th; Cambodia 97th; Lao PDR at 105th; and Myanmar at 112th.

The Philippines is more competitive in human capital than China which only ranked 64th in the report.

Kris M. Crismundo/PNA

Sandiganbayan clears Relampagos, 3 aides

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Habhab noodle of Quezon province A vendor sells “pancit habhab” or “pancit Lucban,” a popular noodle dish in Quezon province during the celebration of the yearly Pahiyas Festival in Lucban town on Friday. The popular dish is usually eaten straight from a banana leaf. PNA/Jess M. Escaros Jr.

he Sandiganbayan First Division has cleared former Budget Undersecretary Mario Relampagos and three others of graft and malversation charges in connection with the alleged pork-barrel scam for lack of probable cause.

Aside from Relampagos, also cleared were Rosario Nuñez, Lalaine Paule and Marilou Bare, all Relampagos’ staff. In a six-page ruling, the Sandiganbayan First Division said that the prosecution failed to present evidence to hod the four in trial as the co-accused of former Rep. Constantino Jaraula of Cagayan De Oro. The four, however, are still facing multiple counts of graft and malversation cases in all the five divisions of the Sandiganbayan for their alleged involvement in the pork-barrel scam.

The four have earlier posted bail bonds before all the Sandigabayan divisions for their provisional liberty.

In its ruling, the First Division said it found no participation by Relampagos and the three other Department of Budget and Management employees in the issuance of the special allotment release order (Saro) concerning the release of budget for supposed projects funded by Jaraula’s Priority Development Assistance Fund (PDAF).

The antigraft court said considering that the basis for the graft and malversation charges filed by the Office of the Ombudsman against the four DBM officials was their alleged participation in the “preparation and issuance” of the Saro, “the court, therefore, rules that there is no sufficient ground to find the existence of probable cause for the issuance of warrants of arrest against the accused Relampagos, Nuñez, Paule and Bare in these cases.”

The First Division chaired by Associate Justice Efren de la Cruz in his May 13 ruling, denied Jaraula’s motion to quash the graft, malversation and direct bribery charges against him.

“Upon a careful evaluation of the arguments presented by the parties, the court is not convinced that the cases against the accused-movant should be quashed,” the ruling said.

In his motion to quash filed in March, Jaraula asked the court that cases against him be “annulled, vacated or overthrown,” as the Office of the Ombudsman allegedly failed to establish in its complaint the elements of malversation, graft and direct bribery.

The same court said that after a judicious evaluation of the filed cases, “information reveals the presence of the elements of each of the three offenses

briefs

LAWMAKER seeks PASSAGE OF BILL STRENGTHENING CONSUMER LAW Amid the country’s booming economy, Sen. Paolo Benigno “Bam” Aquino IV on Friday pushed for the passage of a bill amending Consumer Act of the Philippines to give it more teeth and make it attuned to the present needs of consumers.

“In order to build stronger commercial systems and maintain thriving markets, there is a need to bolster the rights of consumers and we need to do this at the soonest possible time,” Aquino said.

Aquino, chairman of the Senate committee on trade, commerce and entrepreneurship, said his Senate Bill 2699 aims to amend the 23-year-old law to protect the consumers from defective and hazardous products flooding the markets. Under his bill, Aquino proposes to authorize the Department of Trade and Industry to close down establishments caught in the act of selling, distributing, manufacturing, producing, displaying or importing hazardous and defective products. ”In case of product recall, manufacturers of defective products will also be required to give notice to every person to whom such consumer product was delivered or sold to,” he said.

The bill will increase administrative fines against erring manufacturers from P50,000 up to P10 million, depending on the discretion by the trade secretary. The current fine ranges from P500 to P300,000. PNA

angara pushes for tax-deductible college tuition Due to the high cost of tertiary education in the country, Sen. Sonny Angara is pushing for the passage of a bill that seeks to include college tuition and related expenses as allowable deductions in computing taxable income.

Angara’s Senate Bill 2228 aims to amend Section 34 of the National Internal Revenue Code of the Philippines to allow payments for tertiary education tuition and allied educational

ascribed against the accused-movant.”

The court said among the facts established in the cases filed by the Office of the Ombudsman in February was Jaraula’s act of “repeatedly and unilaterally”choosing the Countrywide Agri and Rural Economic Development Foundation Inc. (CARED), one of the fake non-governmental organizations allegedly owned by Janet Lim-Napoles, as partner in the implementation of his PDAF-funded projects.

The court said this act of Jaraula during his term as lawmaker was “in contravention” of the appropriation law which does not allow firsthand release of a lawmaker’s funds to NGOs. “And, if in case engagement of NGOs is allowed, the selection should undergo public bidding as mandated by Republic Act 9184 [Government Procurement Reform Act],” the court said.

Jaraula is facing three counts each of malversation, graft and direct bribery for allegedly allocating P50.5 million worth of his PDAF from 2004 to 2007 to fake foundations allegedly owned by Napoles in exchange for a total of P20.8 million worth of commissions. The former lawmaker had earlier posted bail of P300,000 in exchange for his provisional liberty. The court set his arraignment for all the cases on June 1. PNA

expenses not exceeding P40,000 as tax deductions from the gross income of an individual.

“Given the limitations of government financial assistance such as scholarships, grants and student loans, providing tax deductions is an effective way of helping the poor and underprivileged Filipino families who have to spend a huge part of their small incomes to pay for education,” Angara, chairman of the ways and means committee, said in a news statement.

The deductions of up to four dependents for tertiary education, which includes post secondary courses from higher educational and technical and vocational institutions, must be claimed by only one of the spouses in the case of married individuals. PNA

dpwh-ncr bares may 15 to 18 road-repair schedule The Department of Public Works and Highways-National Capital Region (DPWH-NCR) said it will undertake reblocking and road repair starting at 10 p.m. on Friday to 5 a.m. on Monday on the following roads in the cities of Quezon, Pasig and Caloocan: Quezon City 1. Along E. Rodriguez Jr. Avenue/C-5 from Calle Industria Street to Greenmeadows Avenue (first lane from sidewalk, South bound); 2. Along Mindanao Avenue from Road 3 to Congressional Avenue (fourth inner lane, North bound); 3. Along Payatas Road from Majaas Street to Amlacville Street (second lane, North bound); and 4. Along Batasan Road from Filinvest I to Sinagtala Street (second inner lane, East bound).

Pasig City 1. Along C-5 Road Pasig Boulevard from Dr. M. Flores Street to Immaculate Hospital (North bound); and 2. Along C-5 Road from SM Warehouse to Lanuza Street (third outermost lane, North bound).

Caloocan City 1. Along Edsa from BDO to M. Ponce Street (second lane from sidewalk, North bound). PNA

Economy BusinessMirror

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ITS North Terminal Project cost seen to reach P4B to P6B

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By Lorenz S. Marasigan

he key infrastructure deal to develop an intermodal transport hub north of Metro Manila is seen to have a ticket price of about P6 billion, according to government officials who vowed to ramp up the negotiation process for the facility’s location.

Transportation Secretary Joseph Emilio A. Abaya said talks with the Department of National Defense (DND) for the utilization of a portion of the Veterans Memorial Medical Center complex for the construction of the Integrated

AEV signs pact to possibly acquire Lafarge’s local cement operations

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boitiz Equity Ventures Inc. (AEV) on Friday said it has signed an exclusivity agreement to potentially invest with partner Irish firm CRH Plc. to acquire the majority of the shares of Lafarge Republic Inc. The said agreement was nonbinding and also involved possible investment in Luzon Continental Land Corp. and Lafarge Cement Services Philippines Inc. These companies together constitute the majority of Lafarge’s Philippine cement operations.

CRH, a firm that manufactures building materials, earlier this year already announced that it will acquire the Philippine cement operations of Lafarge Holdings (Philippines) Inc., which is breaking up all of its assets and selling these to several firms, including Holcim Philippines.

Erramon Aboitiz, AEV president and chief executive officer, said the company is looking at acquiring four Luzon-based cement-manufacturing plants in Bulacan, Norzagaray, Teresa and Batangas. Lafarge also has a plant in Danao City, Cebu, and associated limestone quarries, which Aboitiz may also acquire.

“We are very pleased with the prospect of entering this new business, which is a solid opportunity that will support our thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV,” Aboitiz said.

“Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country’s need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector,” he said.

Earlier this year, AEV announced it was moving into infrastructure, the fifth leg of the company’s core businesses after power, banking, food and land.

“Venturing into infrastructure meets our growth criteria. We are very optimistic of the potential gains this new core business will bring to the group amid the huge demand for infrastructure in the Philippines,” Aboitiz said.

Conclusion of any transaction would be subject to the successful completion of the merger between Lafarge S.A. and Holcim Ltd., and also approval by the boards of both CRH and AEV, the company said.

VG Cabuag

Transport System North Terminal has been smooth and positive.

“We are making progress there, and they seem upbeat with the project and they want to execute,” he said, referring to officials of the defense agency.

Transportation Undersecretary Rene K. Limcaoco, for his part, said the facility will cost around P4 bi l l ion to P6 bi llion, depending on the cost of the location.

Earlier, Transportation Undersecretary Jose Perpetuo M. Lotilla explained that the location suits the parameters set by the government for the facility.

For one, it is near the three railway systems in Metro Manila, namely, the Light Rail Transit (LRT) Line 1, the Metro Rail Transit (MRT) Line 3 and the future MRT 7, which will run from North Edsa to San Jose del Monte in Bulacan.

The transportation department has three key considerations in choosing the best location for the infrastructure: cost, time of travel, and passenger convenience.

Once negotiations with the DND have concluded, and the

location for the project has been chosen, the transport agency will then endorse the deal to the National Economic and Development Authority (Neda) Board, chaired

by President Aqunio.

The project’s siblings, the P2.5billion ITS Southwest Terminal and the P4-billion ITS South Terminal, are also progressing.

The first one has been awarded to Megawide Construction Corp. and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy, while the South Terminal is currently under procurement.

The government has awarded nine contracts since the infrastructure program’s inception in 2010. It aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.

The state intends to plug the gap in the country’s transportation infrastructure in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

Saturday, May 16, 2015 A5

briefs

COURT RESTRAINS SBMA, CONTRACTOR FROM ASSUMING OWNERSHIP OF POWER-PLANT JUNK

SUBIC BAY FREEPORT—The Regional Trial Court (RTC) here has issued a temporary restraining order (TRO) against the Subic Bay Metropolitan Authority (SBMA), two of its senior executives and a metal-scrap dealer from seizing and assuming ownership over the junk materials in an old power plant inside this free port.

This, after a petition for injunction was filed by a local businessman who bought the property but was barred by respondents to enter.

In a five-page decision issued by Judge Richard Paradeza of RTC Branch 72, it identified the respondents as SBMA Chairman and Administrator Roberto Garcia; SBMA Law Enforcement Department Manager Orlando Maddela; Bonifacio Aporo, owner of Bonapor Metal Contractor Services and General Merchandise; and its representative, Annabelle Magno.

The respondents were temporarily restrained for a period of 20 days and ordered from preventing Fahrenheit Co. Ltd. from exercising its rights as owner of the remaining machineries, equipment and furniture found inside Building 1800, a power plant used during the US Navy along Argonaut Highway inside the free port.

The TRO was issued after Fahrenheit filed a petition for injunction with damages with “urgent prayer for the issuance of 72-hour and 20-day TRO” on April 24. PNA

MARINA 7 SUSPENDS 2 VESSELS IN CEBU COLLISION CEBU CITY—The Maritime Industry Authority (Marina) 7 has suspended the permits of the two vessels that figured in a collision late Wednesday afternoon on Lauis Ledge, off Talisay City in southern Cebu.

The masters of MV Starcraft 9 and MV Our Lady of Faith are also under preventive suspension pending investigation of the accident.

Marina 7 Director Nanette Villamor-Dinopol issued an order suspending the Passenger Safety Certificate (PSSC) of MV Starcraft 9 and the Cargo Ship Safety Certificate (CSSC) of MV Our Lady of Faith.

“The suspensions shall remain effective and may be restored/reinstated only after a satisfactory result of Marina inspection and/or evaluation of all available data surrounding the incident,” read Dinopol’s order.

MV Starcraft 9 is a passenger vessel operated by Dragon Star Highway Shipping Corp., while MV Our Lady of Faith is a cargo ship owned by MC Phil Maru Shipping Corp. MV Our Lady of Faith captain Jose M. Adaptar, in a marine protest filed with Marina 7, said that at around 4:20 p.m. on May 13, his vessel departed the city of Naga anchorage for Bacolod. PNA

A6 Saturday, May 16, 2015

Opinion BusinessMirror

editorial

The best and the worst

“It was the best of times, it was the worst of times, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.”

—A Tale of Two Cities, Charles Dickens (1859)

O

N Wednesday, a huge fire in a two-story building housing a rubber slipper factory took the lives of 72 ordinary Filipinos from Valenzuela City.

On Thursday another group of ordinary Filipinos of the shadow play group El Gamma Penumbra from Tanauan City, Batangas, emerged as the winner of the first Asia’s Got Talent competition.

Both of these astounding stories have touched the life of our country, one with anger and sadness and the other with joy and pride.

The 72 from Valenzuela went to work that morning expecting a normal day of toil to provide for themselves and their families just like most of us did that day. But fate intervened and, unlike the rest of us, they did not return home after work that night. Now comes the investigations and the search to understand why this happened and who or what deserves the blame for this tragedy.

Certainly someone is responsible for igniting the flame that started the fire. Whether this was an accident or negligence is yet to be determined. Is the owner of the building criminally negligent for failing to provide proper safety measures? Did the owner of the factory put money before concern for the workers? Did the city government contribute to this massive loss of lives by not enforcing rules and regulations designed to prevent this type of disaster?

In the biblical book of Luke, Jesus makes reference to the Tower of Siloam that collapsed, killing 18 innocent victims. His point was that accidents happen even if there might be someone to blame. Death can come unexpectedly to anyone.

We deserve complete answers to the cause of the deaths in Valenzuela to give justice to the victims and to hopefully prevent the same from happening in the future. But it will not bring them back to their families.

El Gamma Penumbra was formed in 2008 and competed in Pilipinas Got Talent in 2011 when they placed fourth. They entered the Asian contest because they wanted to experience the international TV stage and show the world what they can do as performers. There was no way that any of us could have watched their performances without feeling an immense amount of pride for them and our country. Regardless of the great talent displayed by the performers from other countries, it was obvious to all, and especially to the judges, that El Gamma Penumbra was truly in a class of their own.

So now we sit in the middle of “It was the best of times, it was the worst of times” trying to reconcile how life can give both light and darkness.

05162015

The low-volume problem John Mangun

O

OUTSIDE THE BOX

RDINARY people living normal day-to-day lives have no concern whatsoever for liquidity—the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Therefore, they do not understand the impact of having or lacking liquidity.

People buy cars to drive, houses to live in, clothes to wear, and food to eat.

There is never a need to be able to sell those assets because we intend to use them one way or another. Even a person that buys any of those assets for speculation—buying low today and selling higher in future—worries only a little about liquidity because there will always be a reasonably liquid market for cars, houses, clothes and food.

However, intangible assets must have a liquid market to be worth anything.

When I say “intangible,” I mean an asset that does not have a “useful” value other than as a financial instrument for making money. Shares of stock and bonds representing debt are intangible assets by my definition.

You may turn to housing prices in the US and Europe and say that the market there at the price top became

illiquid because you could not sell without lowering the price significantly.

That would be true. Except that the price of all those houses never actually fell below the replacement cost of the wood, concrete, paint and steel. There was plenty of liquidity for the true cost of the house. There was no liquidity for the “intangibles” that had been built into the price.

Stocks and bonds, on the other hand, do not have any tangible value. Don’t believe me? Try taking your shares of Globe Telecoms stock down to their nearest office and ask to exchange that stock for prepaid load cards.

At the very least, your automobile could be sold for parts and might even be worth more than what the car originally cost.

Intangible assets only have value insofar as there is market liquidity—

active buyers and sellers.

In an illiquid market where there are few active buyers and sellers, pricing is determined by the amount of buyers and sellers and not by concepts such as company fundamentals or government economic outlook. The old saying that you can sell anything at the “right” price is absolutely true. Unfortunately, that price might be near zero.

The same is true on the upside.

Pablo Picasso’s painting Women of Algiers (Version O) just sold at auction for a record $179.3 million. The painting is a masterpiece but will be of little use for the Zombie Apocalypse unlike the handmade “Jungle Survival Bolo”, which costs $85.00 (including shipping at filipinobolos.com).

When liquidity disappears from the bond and stock market, prices can explode or implode. On April 20, the interest yield—which is based on the trading price—of a German 10-year bond was 0.077 percent. Since then, the yield has increased to 0.718 percent because the price of the bond has collapsed. The market has become illiquid because there are no buyers.

You might say that this bond does have tangible value as the principle amount will be paid be when it matures in 10 years. But the return on investment for 10 years will be about 0.5 percent.

Because of the concept of “duration” in bond pricing, the price of those 100-percent guaranteed “AAA”-rated German bonds bought when rates were

Corporate Japan answers to nobody William Pesek

BLOOMBERG VIEW

I

T’S been a dreadful week for Japanese corporations. Toshiba is facing questions about its accounting practices, Sharp is asking lenders for another bailout and Takata can’t escape bad news about its air bags.

Each of these problems is bad enough on its own. Together, they raise serious questions about the state of Japan’s corporate governance. And at a time when the Nikkei stock exchange has been rising (it’s up 36 percent over the past year), those questions are in urgent need of answers. If Japan’s leading companies are managed as poorly as this past week’s events suggest, there’s little reason to believe the country’s stock market surge is sustainable.

Prime Minister Shinzo Abe has certainly tried to improve Japan’s corporate governance. Last year Tokyo introduced a stewardship code encouraging investors to pressure underperforming CEOs, and launched an index of 400 domestic companies that regulators believe use their cash stockpiles well. Next month it will release a national code of conduct for executives: Companies will be asked to include at least two outside directors on their boards or explain why they shouldn’t have to. Abe is also asking companies to invite more women into

the executive suite. Diversity in the boardroom, the government hopes, will enhance oversight.

In theory, says Nicholas Smith, Tokyobased strategist at Credit Lyonnais Securities Asia, “this should trigger a flurry of fevered business and balance sheet restructuring.” In practice, corporate Japan has barely budged in response to Abe’s reforms—after decades of running their affairs free of outside interference, their inertia has proven too powerful.

Take Toshiba, which on Wednesday estimated it will write down $420 million of profit over three years in response to an ongoing internal accounting probe that revealed the company has overstated its profits. Financial markets seemed relieved, but investors should be asking themselves two questions: How could such massive accounting irregularities still happen almost 14 years after Enron’s implosion and four years after the $1.7billion Olympus fraud scandal? And how have Japanese authorities responded to the revelations of Toshiba’s malfeasance?

Bloomberg Intelligence analyst Gregory Elders tackled the first question in a May 12 report titled “Toshiba May Awaken Olympus Accounting Concerns in Insider Japan.” As Elders points out, Toshiba’s board has a number of so-called insider directors who have worked for the company for an average of 38 years.

Toshiba’s poor accounting, he argues, “highlights how insider boards may struggle to challenge management.”

Rather than asking companies to bring on more outsiders, as Abe has done, Tokyo should mandate they do so, with penalties to ensure enforcement.

As for how Tokyo has responded to the revelations about Toshiba—it has barely done anything. There have been no investigations of the company, no public chastisement, no parliamentary hearings. Toshiba has even kept its place on the JPX Nikkei-400 index, which is supposed to list the country’s best-run companies.

Sharp, meanwhile, proved this week that it’s a zombie company with no path to growth. The debt-saddled company posted a $1.9-billion loss in the year that ended March 31. And the company only has itself to blame. Once synonymous with cutting-edge electronics, Sharp’s moves to diversify into software and content businesses have been glacial.

Little has changed at the company since 2012, when the company was saved from the brink of bankruptcy by indulgent lenders.

Now, Sharp is back, hat-in-hand, asking for more help. And all it is offering in return is a business plan riddled with gimmicks like reducing capital to cut tax

0.077 percent dropped by about 20 percent in a month.

We have seen our own problems with liquidity on the Philippine stock market these past three weeks as daily trading volume fell and the market lost about 3 percent at its lowest point. It has since recovered some of that loss also on low volume. But the local stock market is different because of it representing a very small amount in comparison to the size of the economy.

Yet as the third quarter ends, we may see global financial market liquidity shrink dramatically as we enter a new cycle. This will most particularly affect the bond markets and, therefore, interest rates will go higher. This shift with money flowing to the private sector from the public sector—which is basically all bonds—may spike interest rates as with the German bonds this past month.

Therefore, regardless of what the local stock market may do in the next three months, be prepared for some very volatile trading as we enter the fourth quarter. If volume drops, prices will go down and it may be a dramatic fall. What we are going through in the market right now is a test to see how Filipino investors can handle an illiquid stock market.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

payments. By any account, Sharp is the type of company that should be allowed to fail. Instead, weak oversight allowed management to run the company into the ground.

Takata, for its part, has managed to combine Toshiba’s lack of transparency with Sharp’s chronic complacency. This week, Toyota, Nissan and Honda said they’re recalling at least 6.5 million vehicles because of faulty air bags supplied by Takata that can endanger passengers by emitting shrapnel. Those recalls might have occurred much sooner had Takata not needlessly released information about its products in small drips. Even with passenger safety at stake, company executives haven’t offered their full knowledge to the public. (When the US Senate held air bag-safety hearings last November, company chairman Shigehisa Takada, grandson of the company’s founder, refused to appear.)

Takata’s reticence has caused massive problems for automakers. “They can’t recall all the possible cars without knowing what the direct cause is as the costs are enormous and they don’t know which side should cover the costs,” explains Tokyo-based researcher Takeshi Miyao of Carnorama. This is a situation where the government should find ways of compelling Takata to be more forthright. But there’s no signal that the government is inclined to make any such effort.

In that sense, this wasn’t just a bad week for corporate Japan. It was a bad week for the Japanese government. It should finally recognize that its efforts at corporate reform are falling far short of the mark.

opinion@businessmirror.com.ph

Opinion

PDC, a timely idea

From Manila to the world, congratulations Cardinal Chito

BusinessMirror

Rev. Fr. Antonio Cecilio T. Pascual

Cecilio T. Arillo

database

T

HE Philippine Council of Management (Philcoman) strongly endorsed on May 15 the enactment into law of the proposed creation of a Presidential Debate Commission (PDC) for the coming election.

Philcoman, a nonprofit federation of technological societies, academic institutions, business enterprises and professional managers, said the idea is significant and timely because the debate will give a chance to voters to participate and clarify matters facing the candidates on various issues.

Philcoman Director and Spokesman Bernard Karganilla relayed the endorsement to Rep. Estrellita B. Suansing of the First District of Nueva Ecija, author of the proposed bill.

Suansing said she is confident that the measure will be given priority as it aims to benefit presidential and vice presidential candidates and provide them a good venue to present their platforms and positions on issues that affect the country.

“I hope it will merit the immediate approval of Congress and the President during the remaining months of the 16th Congress so we can already have the PDC in place prior to the May elections, Suansing said.

The PDC shall obligate all presidential and vice presidential candidates to participate in the debates, and thus, help the voting population discern who to vote for, said Suansing, who is also the vice chairman of the Committee on Women and Gender Equality.

House Bill (HB) 5269, otherwise known as proposed “Presidential Debate Reform Act,” has already been referred to the House Committee on Government Reorganization and has a counterpart measure, Senate Bill 1797, submitted by Sen. Miriam Defensor-Santiago.

“Committee and plenary discussions of the bill will all the more highlight its relevance,” the author said.

Suansing said the right of the people to information on matters of public concern, included in Article III of the 1987 Constitution, strengthens the equally important right to vote.

“A well-informed voting population would be able to carefully and intelligently choose their future leaders,” Suansing added.

The significant right of the people is also recognized under Sections 90 and 93 of Batas Pambansa 881, also known as the “Omnibus Election Code of the Philippines” Suansing said.

The HB 5269 aims to establish a PDC composed of six members who will ensure that it will complement

the elections-related laws.

Each member should be appointed by the following: the speaker of the House of Representatives, House majority leader, who shall not be a member of the majority leader’s political party, president of the Senate, majority leader of the Senate, and two others shall be appointed by the president from among the list of nominees by the two dominant political parties.

Under the bill, the members to be appointed shall not be members of the same political parties from which the appointees of the president will be selected. Moreover, it states that not more than three appointees shall come from any political party and that the appointees, shall as much as possible come from the different sectors.

The presidential and vice presidential candidates are not allowed to become members of the Commission, as well as their relatives within the fourth degree of consanguinity and affinity.

The PDC will create a schedule of debate based on the following criteria: one preliminary debate; not more than two vice presidential debates; and two to four presidential debates. They will decide on the format of the debates based on the most effective way to provide the most useful information about the candidates to the voting public.

The commission will be tasked to closely monitor all other scheduled debates for the candidates for president and vice president hosted by the mass media or other government agencies or private organizations, and submit a report evaluating the effectivity of the said debates.

The commission will also coordinate with various government agencies charged with the enforcement and administration of all laws relative to the conduct of elections to ensure free, orderly and honest elections, and with other organizations or associations concerned with the elections.

“Once the evaluation reports are submitted and examined, the commission shall be assigned to formulate guidelines for the adoption of a debate format, which will best achieve the policies adopted by the act, Suansing emphasized.

To reach the writer, e-mail cecilio. arillo@gmail.com.

SERVANT LEADER

C

ongratulations to our archbishop, the archbishop of Manila and chairman of Caritas Manila. His Eminence Luis Antonio Cardinal Tagle was recently elected president of Caritas Internationalis.

Caritas Internationalis is the global confederation of 164 Catholic organizations working on behalf of the poor. It is the arm through which the Church delivers its moral mission to help the most vulnerable and excluded people, whatever their religion or race.

Cardinal Tagle was elected as the new president of Caritas Internationalis at the confederation’s 20th General Assembly in Rome. Speaking on the phone, Cardinal Tagle said to delegates from over 130 member-organizations from all over the world: “Buona sera a tutti…! Thank you for your trust. I’m limited in my capacities

but with all of you, with the love that Jesus has poured into our hearts and in the name of all of the poor people in the world, I accept this election.”

“Let us together strengthen the church of the poor so our witness can help guide us to a world of understanding justice, true freedom and peace.”

Cardinal Tagle is the first Caritas Internationalis president to be elected from Asia.

Cardinal Oscar Rodriguez Maradiaga, who is stepping down after serving two terms, offered his congratulations and warm support. (www.caritas.org)

Please e-mail your letters to the editor to opinion@businessmirror. com.ph. Letters chosen for publication in this section are edited for brevity and clarity.

W

ith regard to the publication by Mr. Leonid Bershidsky in your esteemed newspaper on Wednesday, May 6, 2015, I felt it was my duty to comment on that article.

The exact meaning of the term “propaganda” can be a subject of a long dispute but I would take the liberty of giving one core criterion.

Propaganda by its nature fears com-

petition. It thrives in closed societies with strictly censored press and other mass media and with no freedom of personal expression, as it was, for example, in the former Soviet Union, where the government not only controlled all news outlets in the country but also used special equipment to jam radio broadcasts from abroad.

On the other hand, any unbiased journalist is not afraid to face somebody holding an opposite view, because his position is based on irrefutable facts.

Meanwhile, there are no banned newspapers, magazines, TV Channels or web sites in Russia nowadays (except for a few that incite religious, racial, ethnic hatred or disseminate pornography, and only under court ruling). Social media, including blogosphere are operating in a free and unobstructed manner. Indeed, there are journalists who criticize President Vladimir Putin in public or ask him provocative questions even during the regular news conferences

The general assembly of the umbrella organization of Catholic charities elected our Filipino cardinal with 91 votes out of 133.

Caritas Internationalis’s general assembly (from May 12 to 17) is outlining and designing the goals for the next quadrennial term during this general assembly, whose theme is “One human family, care for creation.”

Cardinal Tagle will work in the framework of the guidelines provided by the general assembly. Cardinal Tagle’s program zeroes in on advocacy for poor and the wish to reach out to the peripheries. (www. catholicnewsagency.com) It’s a great honor for the Philippine Church that our good Cardinal “Chito” will lead Caritas Internationalis. His heart is definitely with the poor. He is the chairman of Caritas Manila and our vast experience in poverty reduction in terms of education, preventive health and social enterprises will contribute in the church’s clarion call for mercy and compassion especially for victims of disaster, human trafficking and violence globally. Caritas Manila

Let’s talk menstruation. Period.

By Chris Williams & Kersti Strandqvist InterPress Service

N

EW YORK—Every month, more than 2 billion women around the world menstruate, and yet the topic is still shrouded by a veil of silence. While some girls celebrate their period as the first step into womanhood, many girls in developing or emerging countries are shocked and ashamed of their monthly cycles.

Recent studies have found that over 70 percent of girls in India had no idea what was happening to them when they started their first period; 50 percent of girls in Iran believe that menstruation is a disease; and over 50 percent of girls in Ethiopia miss between one and four days of school per month due to menstruation.

Even in the United States, where menstruation management is taught in schools and girls typically have access to the necessary resources and infrastructure, the topic remains a taboo, preferably not addressed in polite circles. Real-life examples abound.

In March Instagram twice removed a photo of a fully clothed woman with two visible spots of blood, because it violated their “community guidelines.” In January tennis star Heather Watson shocked the world by ascribing her Australian open defeat to “girl things.”

In every country, the veil of silence around menstruation contributes to discrimination that can hold women back in their personal lives and professional careers.

It is time for the global community to break its silence on menstruation so that women and girls can dis-

cuss the topic without shame, and reap the rewards for their health, education and quality of life.

The taboo surrounding menstruation is a barrier to equal participation and opportunities for women.

More important, this neglect of a woman’s need to manage their menstruation inside and outside the home is a violation of a host of human rights—in many countries, menstruating women are banned from praying, cooking, or sleeping near their family.

Current research shows that menstrual education in every country continues to provide girls with mixed messages; on the one hand, it is a normal, natural event, however girls are also taught that it should be hidden.

This taboo on female development has also had unintended consequences for US aid priorities—according to development experts, the US government will remain reluctant to fund education initiatives in developing or emerging countries until there is a proven link between toilets in schools or menstrual management education to an improvement in attendance rates or performance in school.

The countdown has begun to the

‘Russian journalists are not propagandists’ MAIL

Saturday, May 16, 2015

of the president. The recent example is the national phone-in on April 16.

I believe the same should have been true for the US. Then I cannot help but ask why Mr. Bershidsky is so concerned about a “propagandist in Brooklyn.” Given the freedom of speech in the US and plenty of sources of information to choose from, one person is not able to do much to overcome the giants of American mass media.

Unless those who are afraid of the Russian journalists and label them as “propagandists” only for expressing dissenting opinions are themselves afraid that their facts and theories about Russia and international relations do not hold water, as they say.

Unless the American journalists do not want or cannot oppose the information from the Russian media with equally convincing facts, there is nothing to be afraid of. In democratic societies you can always choose another TV channel, leave a web site or put aside a newspaper that you

don’t like. Truth has thorns and it is only when no credible arguments are left that one resorts to calling names or making boorish, insulting remarks (“squeamishness”). In the particular case of the article under consideration, it may be better for the author to consult gastroenterologist.

I was saddened to know how the author interpreted the top story of LifeNews web site on May 5, “Donetsk People’s Republic’s Militia Prevents Takeover of Shyrokine and Horlivka.” Shyrokine and Horlivka, he says, “endured increased shelling by the pro-Russian militants.”

How is it possible? Shyrokine and Horlivka have been controlled by those whom Mr. Bershidsky calls “militants” (this is obvious even from the header of the news article). So according to his lopsided logic they were firing at their own brothers-in-arms, weren’t they?

Or at their own homes where their families are living? Where is journalism and propaganda here if the

The taboo surrounding menstruation is a barrier to equal participation and opportunities for women.

More important, this neglect of a woman’s need to manage their menstruation inside and outside the home is a violation of a host of human rights—in many countries, menstruating women are banned from praying, cooking, or sleeping near their family.

United Nations release of the Sustainable Development Goals, and women’s empowerment is expected to take center stage as a cross-cutting issue that will lift the development of society as a whole.

Strengthening women’s positions, and giving them the opportunity to fully participate in society is necessary if we are to achieve these targets.

The ambitious goal of ensuring equality for women and girls requires a multistakeholder approach, with collaboration from communities, government, UN agencies, private sector, academia, non-governmental organizations, the media and others.

It is time for all sectors to work together to ensure that menstruation is far higher on the development agenda.

By leveraging public-private partnerships, a unique combination of funding can ensure that market research from the private sector

simplest facts are being twisted to serve one’s ideological needs or stereotypes? The barbarous shelling was actually done by the Ukrainian Armed Forces that wanted to overtake those towns.

One more thing, no matter how unpleasant the LifeNews coverage of the developments in Ukraine may be for the Kiev Government, a persistent harassment of journalists is not consistent with the ideals of freedom of expression. Russia even in this difficult period of time hasn’t imposed any sanctions on European or American journalists, including notorious Russophobes, although it has been done

by Western countries and Ukraine against many Russian professional journalists. It is no accident that US high-ranking officials (Secretary of State John F. Kerry is among them) have expressed many times their complaints about “Russian propaganda.”

Now, as for the “Russia’s depredations in Ukraine,” I would like to remind you of the course of events

A7

and all social action centers in the Philippines are all behind him in his new mission.

Why Cardinal Tagle?

He represents a country that experiences the brunt of calamities both brought by nature and caused by man where often the poor are the natural victims. He hails from the Philippines that is a disaster corridor.

The world can learn much from our experience of survival, the resiliency that is part of our culture, and the steadfastness of our faith.

The heart of the cardinal is with the poor, he speaks their language, breaths their aspirations and can discern God’s will that will resonate mercy and compassion.

From Caritas Manila, our dear Cardinal is now Caritas Internationalis.

Congratulations Cardinal Chito.

(We resume Evangelii Gaudium next issue.)

For comments, e-mail caritas_manila@yahoo.com. For donations to Caritas Manila, call 563-9311. For inquiries, call 563-9308 or 563-9298.

Fax: 563-9306.

can efficiently contribute to the effectiveness of aid and investment.

This week the global movement to break the silence on menstruation comes to the US as Team SCA, an all-women crew of sailors participating in the round-the-world Volvo Ocean Race, docks in Newport, Rhode Island. The team is promoting the message of women’s empowerment.

With support from the Water Supply and Sanitation Collaborative Council, a UN body dedicated to achieving safe sanitation and hygiene for the most vulnerable through community-led approaches, Team SCA has participated in several menstrual hygiene management training sessions during the race.

Practical, sustainable change for women and girls can be achieved through research, innovation and education. Governments, community leaders, opinion leaders, and global citizens must speak out to change attitudes, upend customs that restrain menstruating women and girls, and promote basic education about periods.

Menstrual hygiene management is only the beginning but it is a critical first step. We need to break the silence across the female lifecycle, from puberty to menopause to old-age.

Eliminating these taboos is an international responsibility, and an opportunity for the US to lead by example, by increasing awareness of this monthly global humanrights violation, as well as holding an open and honest discussion about its own taboos.

in Ukraine after the unconstitutional coup d’etat in February 2014.

Seven million Ukrainian citizens of Donbass were willing to keep their legitimate right to speak in Russian, to elect their municipal authorities and to distribute budget funds on an equitable basis. Instead of talking, the central government in Kiev labeled them as “terrorists” and deployed the Armed Forces against them in a mopping-up operation, thereby unleashing civil war.

It is the aggressive actions of Kiev that brought immense misery and tragedy to the homes of Donbass.

I hope this letter could be published in your respectful newspaper.

The Embassy of the Russian Federation is open to contacts and partnership with you and will be ready to assist in any matters concerning objective and truthful coverage of the events related to Russia.

Ilya E. Perenkov Press Attaché

2nd Front Page BusinessMirror

A8 Saturday, May 16, 2015

OFW remittances strongest in March

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By Bianca Cuaresma

oney sent back to the Philippines by overseas Filipinos surged to its strongest in over five years in March to $2.1 billion, latest data from the Bangko Sentral ng Pilipinas (BSP) show.

The BSP said the cash remittances in March represented growth averaging 11.3 percent for the month.

This also compared against remittance growth of only 4.2 percent and 0.5 percent in February and January this year, respectively.

These outcomes proved lower than market expectations and the assumed growth path seen by the government of 5.5 percent this year.

The double-digit rate of growth in remittances was the strongest reported in more than five years or

since December 2009, when remittances grew by 11.4 percent.

Double-digit remittance growth rates were reported in only six different times the past five years, or since March 2010, according to the BSP. The cash remittances in March brought the aggregate in the first quarter to $5.79 billion or 5.5 percent higher than in the same three-month period last year, when this stood at $5.49 billion.

This was at par with the target rate of 5.5 percent for the year. Last

year the cash remittances proved higher than anticipated, when this grew by 5.9 percent instead.

Cash remittances from both land- and sea-based workers for the period totaled $4.4 billion and $1.4 billion, respectively.

The remittances flowed from the United States, Saudi Arabia, the United Arab Emirates (UAE), the United Kingdom, Singapore, Japan, Hong Kong and Canada.

The BSP cited preliminary data from the Philippine Overseas Employment Administration indicating approved job orders reaching 243,045 in the first quarter.

About a third of the job orders were for service, production and professional, technical and related workers in Saudi Arabia, Kuwait, Taiwan, Qatar and the UAE. Personal remittances, representing all current transfers of overseas Filipino workers whether in cash or in kind, totaled $2.326 billion in March or 11 percent higher than the previous year.

Remittances remain a key growth driver of the $272-billion Southeast Asian economy. It has help keep the country’s current account in a state of surplus.

www.businessmirror.com.ph

Vista Land income grew 10 percent in Q1

By VG Cabuag

V

ista Land & Lifescapes Inc. reported income and revenue grew by 10 percent in the first three months. Company officials also expressed optimism on Vista Land’s performance for the rest of the year.

The company reported net income reaching P1.64 billion from last year’s P1.5 billion. Its revenues, meanwhile, stood at P6.05 billion from last year’s P5.48 billion.

“We are pleased to have been able to sustain solid growth achieved over the past years and should have no problem achieving our full-year targets,” Vista Land Chairman Manuel Villar said.

“Our positive outlook for the year is also due to the fact that Vista Land’s land bank and existing projects are beneficiaries of the Philippines’s macroeconomic fundamentals and the government’s push to accelerate in-

SM Prime. . .

frastructure development,” he said in a statement.

Manuel Paolo Villar, the company’s president and CEO, said Vista Land launched P12 billion worth of projects for the quarter and that reservation sales for the period stood at P14 billion.

“This confirms our reading that demand for housing across the country continues to be strong,” he said.

Capital expenditures for 2015 were seen reaching P25.1 billion, or higher than last year’s P21 billion.

“I remain extremely confident about the prospects for our company.

In addition to our expansion in the provinces, we continue to move forward with our plans for the various commercial centers within or near our existing developments, taking advantage of the rising middle class in the country,” Paolo Villar said.

Vista Land is known for communities and house-and-lot brands, including Camella, Crown Asia, Brittany and

Vista Residences, which offer quality housing across all market segments.

The company said it would launch several house-and-lot projects in key cities using its flagship brand Camella.

Vista Land said it would launch a total P12 billion to P14 billion worth of projects under the Camella brand of houses, a brand that helped cement its fame in the real-estate sector in the 1980s.

“We are very bullish for the year 2015. That’s why we’re launching other distinct projects. The units that we launched last year have all sold out,” Villar said.

The new projects launched last month include Camella Verra Metro North in Valenzuela City; Camella Carson in Vista City at Daang Hari in Las Piñas; Camella Alta Silang in Cavite; Camella Belize atThe Islands in Dasmariñas, Cavite; and Camella Sierra Metro East in Antipolo. The projects have an aggregate market value of P5.6 billion.

Continued from A1

the Philippine capital. “This project will cement and expand SM’s footprint in a province that is considered as the economic center in that part of the country.”

Mall of Asia, one of the biggest shopping centers in the Philippines, owned by SM Prime, is on reclaimed land along Manila Bay. SM Prime rose 1.5 percent to

P19.86 at the midday trading break in Manila. Shares of SM Investments Corp., parent of SM Prime, gained 1.1 percent to P910.

The reclamation will triple Cordova’s current 800 hectares of land, while reducing its 3,500-hectare fishing area by more than a third, Sitoy said. It’s also an effort to clean up the town’s image, after revelations it

had become a center for online child pornography.

“This will be our redeeming feature,” Sitoy said, adding that local authorities are cleaning up the town and no new cases of child exploitation had surfaced recently.

“We will make Cordova the most beautiful city in the country.”

Bloomberg News

ROLLING ON A van makes its way up a ramp into a roll-on, roll-off (Roro) ship, designed to carry wheeled cargo such as trucks and cars, in Davao City. Used to ferry passengers, cargo and vehicles across rivers and short distances, Roro ships are indispensable in a country with more than 7,100 islands. NONIE REYES

SEC okays 1,160 applications in 1 day under new program

By David Cagahastian

O

n the first month of the Integrated Business Registry System (IBRS) program of the Securities and Exchange Commission (SEC), 84 percent of the applications of businesses seeking to incorporate have been approved in just one day.

The SEC said their incorporation already included registration with social agencies, such as the Pag-IBIG, Philippine Health Insurance Corp. and the Social Security System.

Meanwhile, the single-day rate of approval for the incorporation of businesses not requiring secondary licenses from other government agencies stood at 97 percent.

The Department of Finance attributed the high rate of single-day approval to measures aimed at making it easier to set up businesses in the Philippines.

From 16 steps in setting up a business originally, which took

an average of 34 days to complete, present day steps require only six and taking no more than eight working days.

According to data compiled by the SEC, 1,160 articles of incorporation were processed from April 15 to 30.

Of the number, 84 percent were approved within just one business day.

The rest were approved within four days at the latest.

“We are pleased to show that the IBRS, a flagship component of our Ease of Doing Business reforms, is delivering speedy service for our clients. We expect the figures to reach a consistent 100 percent as we perfect our systems and processes.

The IBRS is an innovation in governance; we are encouraged by the results and will work harder to make starting a business here in the Philippines simpler, quicker and better,” SEC Chairman Teresita Herbosa said.

Finance Secretary Cesar V. Purisima, who brought together 12 different

government institutions and pushed for reforms that made it easier to set up businesses in the Philippines, said more reforms are forthcoming to ensure the competitiveness of the Philippines in the region.

“We continue to make good on our promise to millions of enterprising Filipinos that we will make the business of realizing your dreams ever easier, leveraging technology and synergy across government. Transforming the Philippines to a country of renewed opportunity for our young and ambitious population underpins our mission to simplify and improve the conduct of business in the country,” he said.

Purisima noted that Shinhan Bank, a Korean bank, filed its application for a Manila branch on May 6 and was approved to do business the next day.

Shinhan Bank is one of the foreign banks allowed entry into the country after the signing of Republic Act 10641, or the Act Allowing Full Entry of Foreign Banks in the Philippines.