BusinessMirror June 9, 2015

OPTIMISTIC PROSPECTS A boy in a banca paddles past a row of factory buildings along the banks of the Pasig River in Guadalupe, Makati City. Moody’s Investors Service Vice President and Senior Analyst Christian de Guzman told the BUSINESSMIRROR that the rating firm remains optimistic on the prospects of the country, despite the deceleration of the economy’s expansion to 5.2 percent from January to March this year. NONIE REYES

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

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18,June 20149,Vol.2015 10 No.Vol. 40 10 No. 243 Tuesday,

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DPWH FORMALLY AWARDS CONTRACT TO BUILD P66.72BILLION CAVITELAGUNA EXPRESSWAY

Metro Pacific bags Calax deal INSIDE

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HE contract to build an expressway that will link the provinces of Cavite and Laguna was awarded to Metro Pacific Investments Corp. (MPIC) on Monday.

WHITE AND CREAM

Life

Take the gain

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EAR Lord, we wish to dwell on all our blessings and gains in life. We wish to see the growth and developments we experience in every undertaking that comes our way. We wish to see the joys and glories our efforts can bring. We wish to count all the successes that came from the service we have rendered. We wish to take the gain, not the loss to make life better to savor. Amen.

UNITY, SUE S. (ADAPTATION) AND LOUIE M. LACSON

Word&Life Publications • teacherlouie1965@yahoo.com

AT 300 POUNDS, CHRIS PRATT HAD ‘ONLY MOMENTS OF RESPITE’ WHILE EATING »D2

BusinessMirror

Editor: erard . amos • i est ebusinessmirror@ mai .com

Tuesday, June 9, 2015

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Quiet but powerful: Decorating with white and cream KEEP SLEEPLESS NIGHT AT BAY

B M C G McClatchy-Tribune News Service

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OU don’t always have to shout to make a statement.

Sometimes a whisper is the most powerful way to grab someone’s attention.

The same holds true in the decorating world. Need proof? Look no further than the unassuming sisters, white and cream. Whether they are the backdrop of a room or the main stage stars, these tones are anything but timid. And, they can be key to bringing your home décor to the next level. Here are four places you can add a spot of cream or a splash of white to arrest attention in your home: WHITEWASHED WALLS AND TRIM IN the years it took for me to save my pennies to renovate my dated kitchen, I imagined this all-important room in lots of different colors. In the end, I chose white. I wanted a color that screamed “clean.” (Believe me, when you have a golden retriever and two cats, something in your home needs to look clean!)

I want to challenge the notion that painting your walls white or cream is taking the easy way out. I think working with these soft colors is as much of a commitment as painting your walls a bold hue. It requires just as much decorating savvy to make a white or cream room warm, cozy and filled with character as one painted in any other color.

FURNITURE IN the first few years of our marriage, Dan asked only one thing from me: color stability. I love to experiment with color and I saw the walls and furnishings of our home as an ideal laboratory. So, instead of painting and repainting my walls, now I fulfill my color lust through a parade of colorful accent pillows, swapped out seasonally or whenever I feel the itch. What allows me to live in pillow heaven (or pillow hell, if you ask my husband)? White and cream furniture.

White and cream furniture is a welcoming canvass that embraces every

other color in the rainbow. In the spring, I love to toss in navy and green pillows, or coral and turquoise, or yellow and gray, or...you get the picture. I know lots of you shudder at the thought of white or cream furniture, feeling like you are one red wine spill away from disaster if you have this tell-all fabric on your sofa or a chair. But I’ve had fabulous luck with my white and cream upholstered furnishings, and that’s coming from someone with a very messy husband and three shedding pets who loves to entertain a lot, complete with red wine.

If there is no way white upholstery is crossing your threshold, you can dot in white furniture in different ways, like adding a punchy white ceramic garden stool as a side table. How about white painted wood furniture, like an end table or hutch?

BEDDING QUIET bedding ensembles that rely on a rich mix of tonal textures are among my favorites. And no colors pull this off more effectively than white

and cream. A white-themed bedding ensemble doesn’t have to be shabby chic. It can be crisp and contemporary and clean. Picking white fabrics as the base of a bedding ensemble is a smart idea because you can constantly change the look and feel of your bed just by switching out your accent pillows or the quilts that are layered at the foot of the bed. A cream duvet is lovely all by itself or as a spotlight for any color you pair it with.

ACCENTS DISHES: By now you’re probably tired of hearing my spiel on white plates and how they are the best investment you can make when buying dishes because they allow you to take your tablescapes a million different directions. But I want to add a pitch for white and cream table accents.

Just like white dishes, white platters, servers and bowls look just right on every table, giving you lots of mileage from each piece.

Pillows: Weave white into your

upholstered furnishing through accent pillows. Go for solid white or cream, boosted up with fabrics that feature a nice texture, or pick a pattern where white plays a key role.

Lamps: Larger scale lamps are a great addition to side tables because they add visual weight. And white lamps pull this off with panache, fitting in with just about any style home.

■ This article was adapted from Mary Carol Garrity’s blog at www.nellhills. com.. She can be reached at marycarol@ nellhills.com.

WE may be coming to the tail-end of summer around these parts, but the heat and humidity that persist, even at night, will no doubt convince you otherwise.

Which means the constant and annoying whirring of fans and air-conditioners working overtime will continue to be part of everyday reality—unless, of course, you belong to the 1 percent who have been able to equip your home with those very stylish technological marvels from Dyson Ltd. The British technology company that designs and manufactures, among a variety of home aids, bladeless fans. Dubbed Dyson Cool (www.dyson. ph , the new fan range with no blades has been ph) engineered to keep the stuffy sleepless nights at bay. With Dyson Air Multiplier technology, the fans provide quick and even cooling of the room. Dyson engineers have done away with noisy whirring blades and designed the machine to eliminate tones of up to 1,000Hz, similar to the tone produced by a mosquito’s beating wing.

“The new Dyson Cool machines are acoustically engineered to provide smooth airflow without the noise generated by high-speed air. The new Dyson Cool reduces noise by 75 percent while maintaining the same cooling performance as its predecessor.

With it, Dyson has engineered a sound night’s sleep during the hot summer nights,” said James Dyson, British inventor, founder and chief engineer of the company. While high-speed air creates noise, a specialist team of Dyson acoustic engineers has designed the Helmholtz cavity to capture sound waves traveling through the fan. The cavity alone eliminates tones of up to 1,000Hz. Meanwhile, the Air Multiplier technology behind the fans—which are available in the colors black/ nickel and white/silver—create and project a smooth, high-velocity airflow. Air is drawn in by an energyefficient, brushless motor.

The airflow is then accelerated through an annular aperture, passing over an air foil-shaped ramp, which draws in and channels its direction. This creates and projects powerful, smooth, high-velocity airflow. A streamlined airflow path and decreased motor turbulence translate to significant noise reduction. Result: no annoying whirring fan sound to keep you from having a good night’s sleep. Who wouldn’t want that?

Amaia Scapes Cavite gives basketball clinic for kids from PBA stars AMAIA Scapes officials turn over the basketball court and pavilion to its residents.

From left: Doris Salengua, customer care group head for South Luzon Operations; Rodney Reyes, project strategic management group head for South Luzon; Eric Ganaden, home owners association president; and Aurea Viray, regional sales director for South Luzon.

TRUE to property developer Amaia’s promise of uplifting the living standards of many more Filipinos, the Amaia Scapes Cavite basketball court and village pavilion were blessed on May 16 and turned over to homeowners.

The event got way more fun with the free basketball clinic for kids from some of today’s Philippine Basketball Association (PBA) stars. Thirty kids aged 7 to 15 experienced pro basketball coaching from Rain or Shine’s Beau Belga and Ryan Arana, together with Chig Manalo of Amaia Sparrows. After the clinic, Amaia Scapes Cavite homeowners had the chance to meet and greet two of today’s best PBA players.

“It’s our promise to our homeowners. These features help Amaia to create a more enjoyable and comfortable community for our residents,” said Rodney Reyes, Amaia project strategic management group head for South Luzon “Meanwhile, the basketball clinic

and the meet-and-greet with PBA stars are just one of our many future projects. Simple activities like these are our way of giving back to our homeowners,” Reyes added.

All Amaia Scapes projects (www. amaialand.com provide a village amaialand.com) patio which comes with a pavilion, swimming pool, basketball court, and landscaped garden.

A patio green which serves as an extension of one’s home is also available for a fresher environment for the family.

These features allow

LIFE

homeowners to have a time for leisure without going too far and spending so much.

Amaia Scapes projects are wholly managed by the Makati Development Corp. BuildPlus and Ayala Property Management Corp.

Guarded entrance and exits, 24hour security, and perimeter fence further the sense of well-being.

Amaia Land is the country’s leader when it comes to economic housing, which is designed with quality, affordability and security in mind.

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COSPLAY CHARMERS The Millennials BusinessMirror

Editor: Dennis Estopace • corp@businessmirror.com.ph

Cosplay convention charms consumers

Tuesday, June 2, 2015 B4-1

A FAN PONDERS ROCK ‘N’ N’ ROLL MUSIC AND THE BANDS THAT PLAY THEM

By Ezra Fajardo

MILLENNIALS UNIVERSE

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OME say rock bands are trash and they are too loud. I say they are gems and they stand proud.

Rock bands may not be a typical daily dose of sound for some but they are more than what some people think. And their music? Such a big help in adding a little punch in our lives.

I admit I wasn’t really into rock bands because all I heard were screaming and the heavy play of instruments.

I thought that time that the only people who listen to it are either too emotional or suicidal.

But I realized I was judging too much. I decided to give it a try and listen to their brand of music. My friends also recommended some bands.

I first tried the Sleeping with Sirens then went on to All Time Low. I

moved on to Foo Fighters and was led listening to Bring Me the Horizon. Local rock bands Kamikazee, Urbandub and Chicosci became my daily fare.

I was introduced to the concept of rock ‘n’ roll and realized how I liked it. I never knew that the music and the bands that play them would have a great impact on me. I graduated from being a pop afficionado—I admit I was that just to be in the circle of pop-music lovers.

It was like a part of me changed in just a snap.

I was drawn to the lyrics that make up their songs. I consider their music as full of emotion. I can strongly feel them and their music.

For me, rock music is very meaningful and enraged with power. The band themselves have such good names. It was different for me to see men with long hair and tattoos all over, with such warm smiles. And

they really know how to give a blasting performance. It was like being in another kind of heaven!

I believe that bands have impacted many people’s lives through their music. They help people to live out more and face the reality they are dealing with.

On the downside, I observed some people who adore rock have become rebels. They let everything burst out and think they are invulnerable. They think they can handle everything, that they are better independent.

Everything has its good and bad points, rock bands and their music included.

That is what, I believe, makes life balanced. That is what, I believe, has led me to explore more and be grateful.

Ezra Fajardo describes herself as just a typical teen who loves to write and is still planning for a good future.

Cosplayers’ two cents to a costume play career

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S   B S K A

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Correspondent

HE sun rose from the east, and to this convention of characters from the Land of the Rising Sun, hordes of young people arrived.

And were they charmed.

Mostly young consumers armed with cameras, food, water, costumes and cash were wowed by characters in the convention of cosplay, a portmanteau of the words “costume play.”

Called kosupure in Japanese, these conventions immersed fans in Japanese culture. There were Japanese traditional games like shateki (a shooting game), daruma-otoshi (using a small hammer to hit colored pieces), wanage (a ring toss game) and kendama (catching a ball in the cups and on the spike).

Winners in these games were given prizes with oo-kun (mascot) themes.

Oo-kun plushies were also awarded to winners of a trivia game on anime.

Winners in the kendama got a set of headphones.

There was also a race wherein participants balanced a marshmallow on chopsticks gripped between their

lips and passed on to fellow racers. A game also challenged participants to use only face muscles to move a cookie toward their mouths. A soda-drinking contest also challenged a pair to sip the other’s bottle using two connected straws.

Fans were also taught paper crane origami, which some hung on twigs of a life-size cherry blossom tree prop. Some tried their hand in writing names in kanji, while others took selfies at the booth of Fairy Tail, a Japanese manga series written and illustrated

by Hiro Mashima.

Of course there were Japanese food like takoyaki, taiyaki and beef dish served in bento boxes.

The convention’s highlight was the cosplay contest. The first day’s was the single division cosplayers composed of Orly Denzon as Nobunaga from Hunter x Hunter, Kharen Mendoza as Kura-

pika also from Hunter x Hunter Hunter, Mary Grace Abacia as Nakagawa Kanon from The World God Only Knows, Mary Victoria Meneses as Erza Scarlet from Fairy Tail, and Izaiah Luke Buelos as Hitsugaya Toshiro from Bleach.

Abacia won in third place, Buelos was second place and Meneses won first place.

There were also performances by Cosplay Queen of the Philippines Alodia Gosiengfiao, Junior New System and Gonzo. Some lucky fans also got to meet and greet Gosiengfiao and Gonzo in between the performances and other activities on stage by submitting their names to the meet and greet raffle.

Speaking of cosplayers, another thing fans look forward to in cosplay conventions is to take pictures beside their favorite characters brought to life by the cosplayers.

Of course, booths sold animé merchandise ranging from accessories, clothes, colored contact lenses, collectibles and toys.

At the end of the convention, one would come out both happy and crying like a baby. On one hand, it was great to see one’s favorite animé characters in the flesh. On the other hand, due to the booth’s enticing merchandise, one is left broke.

And yet it’s not enough, which brings the need to go to another cosplay convention.

OSPLAY is not just a hobby, it’s a lifestyle. Well-known cosplay icons, such as Alodia Gosiengfao, proved this activity, known as costume play, can also be turned into careers as well as do something fun with friends.

How does one start cosplaying? The BUSINESSMIRROR talked to cosplayers to identify the steps before they dressed in their favorite fictional character.

There are newbies, of course. Siblings Norielle and Nathaniel Aclan went to a convention for their first cosplay, respectively as Mystogan from Fairy Tail and Meliodas’s female version from The Seven Deadly Sins animé. They didn’t enter the contest for best cosplay but the Aclans said that’s the point to going to this convention.

You don’t have to join the competition to go there dressed as your idol, according to Norielle. The Aclans went to the convention in Manila on May 30 with their friends and classmates to “just have fun.” But they also caught the attention of other fans of the characters they portrayed who posed for pictures with them.

Norielle said his brother and an aunt make the props and the costumes. “We order some of the stuff, like wearables, online,” he explained.

Trying out loud TANTIN MENESES, this year’s cosplay contest winner, said she started after seeing Philippine Cosplay Queen Alodia Gosiengfiao in a television commercial.

“I should try that!” she exclaimed that November day four years ago.

Meneses won in this year’s contest portraying the character she cosplayed in 2011: Erza Scarlet of Fairy Tail. She performed

dressed in Erza’s Sea Empress armor and changed into the character’s iconic flameprinted pants and bandage-bound top.

Meneses said she also tried other characters such as Lena of Valkyrie, Black Rocket Shooter and Mirajane Strauss—also of Fairy Tail. “In the future, I would like to maybe cosplay Boa Hataki of One Piece, other characters of Valkyrie and some that involve sword play,” she said, because “I’m fascinated with the combat stunts.”

“It doesn’t matter what level of a cosplayer you are or what race, age, gender or even if you are a good cosplayer or a bad cosplayer because the cosplay community will accept you.”

Meneses added that the cosplay community in the country “won’t look at what’s wrong with your outfit and, if you are being bullied at school or aren’t really noticed, then you can express yourself through cosplaying.”

Mixed match ROY VINCENT is considered a veteran cosplayer but began with a simple Batman tee, sunglasses, a Batman pin on his hat and a black vest as costume.

“I told them I was Batman’s son,” Vincent said. He didn’t even know it was called cosplay until others were doing it.

His first experience in a contest was when he volunteered to help another cosplayer, who went as a Japanese soldier, to perform as the contestant’s prisoner.

As that character, Vincent was punched, kicked at and shot twice.

Vincent likes to cosplay old characters such as Billy of Mad City City. He would sometimes mix characters like combining Superman or Batman in military fatigues and call himself Super Soldier or Bat Guevarra.

OF FLIP-FLOPS AND THE ‘BAKYA’ B M M

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Correspondent

’M sure I am not the only Filipino to notice it. I’m also sure many of us have seen the similarity that some characterized flip-flops with a torrential flood of class and brand distinction. But flip-flops are tsinelas.

There, I said it. I feel like the little boy yelling, “The emperor is naked!” I actually undressed the power of the fad.

The fad has powers stronger than Harry’s wand. (No sexual reference here.) The fad has the power to embellish, enchant and gather its victims like the children to the Pied Piper’s flute.

How did my senses get suspended?

How did I spend hundreds of pesos more for something I can get in the palengke (local wet market).

Some say it’s only being human because humans are social beings and they do want to be sosyal: what used to mean fashionably trendy but now is referred to as aspirational.

I’m only being real, not judging. I have sosyal osyal in my blood too. I have fallen from my intellectual horse for the likes of certain kinds of phones and brand-

preferred drinks. No one told me to like it. The thing is, I like it for no reason other than just because most people like it.

In most minds, that means it should be liked and the unconscious cycle of liking the popular begins.

Like most fashion fads, they are sought after, and for a time, people flock to the fad like bees to honey. They come in drones until the fad is undeniably everywhere. Then time does its little trick to the fad: it turns everyone’s liking into hating or, worse yet, indifference.

In time, every fad will be hated. That’s what I think happened to the bakya.

The bakya was once the most common footwear for women. It was all the rage in the US in the fifties. It was considered a novel item bought and worn abroad to show the distinct culture of the Philippines. After being worn by the richest women, everyone started wearing the bakya. Mass production, hence, arrived and the rich people left: They didn’t want to wear the bakya anymore. But everyone else still wore it and so the bakya became a by-word to mean what Wikipedia now describes as “low-class, unsophisticated and cheap.”

I guess what they actually meant is

that the bakya isn’t popular anymore; it is no longer the fad. With as much fervor there was to acquire one, there is now the disdain in still having one.

The fate of the bakya, however, was quite contrary to the specific brand of flip-flops created cheap and affordable by a Scotsman in 1962. Only the poor wore it until 1990s when they flipped the color of the sole over to create a one-toned footwear. The rich started wearing them and, until now, even wear them to even the most formal occasions like weddings.

Flip-flops, tsinelas, if you may, probably took off from our trade with the Japanese. Our Asian neighbors called it zori zori, which is a slipper made of wood and rice straw. Gender classification also revolved around the zori: black straps for men, red for women. A zori was also only worn with a formal kimono.

A zori shouldn’t be mistaken for the wooden clogs seen worn by sumo wrestlers. The footwear is called geta and can be worn informally. Finally, there is a waraji waraji, which is the footwear for common people. I try not to think that we don’t like the tsinelas because it’s Asian.

I like to think it is more because they are

Vincent said cosplaying doesn’t always have to be too faithful to the original and being creative could be a good way to make a unique character of your own.

Considered another veteran cosplayer is Mark Kelvin Nobre Go who is well known for his papier-mâché and fiber glass Ironman costume.

Go said he was inspired by both manga and animé comics such as Type Moon and started out as a wary cosplayer who worried about his costume’s quality and accuracy. Despite not winning the grand pride in a contest, he felt his effort paid off.

During his junior and senior years in high school, Go and his friend set up a small business that specialized in making bespoke sword and gun props out of rubber sheets and industrial adhesive.

While their products were considered having enduring quality, the business was folded because of other priorities.

“The cost of the costume really depends on the quality you want it to have and you may have to spend thousands of pesos sometimes,” Go told the BUSINESSMIRROR. “But the most important thing when cosplaying is not the costume or the props, but the character itself. When you cosplay, you dont just dress up, you have to be the character.”

Go also advises cosplayers to do it for the passion and the love for the animé character and not just because it’s popular and everybody is doing it.

“Cosplay is about the love for your craft. If you do decide you want to cosplay, then do it. Study the character, invite your friends, make or buy the costume, go to cosplay cons and have fun,” Meneses said. Alessandra Brigitte Anonas

B J P

The Associated Press

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THE MILLENNIALS manufactured cheaply.

These footwears are all slippers yet they carry the undertow of social meaning, culture and price tag that is theirs alone. That is sort of how the social human operates. It’s never just a pair of shoes: It’s price, it’s brand, it’s culture.

My challenge: Walk a mile in another

person’s footwear.

Take a look at people in the street and friends you see. Try to understand why they wear the shoes that they do.

Does it say something about their personality, culture and generation? Do your shoes resonate with who you are or are you just following a fad?

Design&Space BusinessMirror

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www.businessmirror.com.ph

How to maximize space in small kids’ rooms

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B C H Tribune News Service

YPICALLY space is at a premium when it comes to maximizing the space of a child’s bedroom. The room must pack a punch and be able to successfully store and stow all a child’s necessities.

As an interior designer working almost exclusively in Manhattan, the typical child’s room is 200 square feet, so being able to maximize space is key. Whether small— or what some may call “tiny”—one can have success by following some of my tricks of the trade.

Here are some of my top tips for designing small children’s bedrooms: ■ Think function first.

■ Generate a floor plan that creates distinct spaces or zones.

■ Create a furniture plan. Bunk beds aren’t the only option for children sharing a room; often twin beds separated by a single nightstand creates a restful and inviting environment.

■ Allow plenty of room for circulation and flow.

■ Develop a color scheme.

■ Use color such as accent walls to help define a space.

■ Purchase furnishings that are multifunctional and space-saving.

■ Add pops of color through artwork.

■ Add warmth through accents and accessories.

■ Use mirrors. Nothing opens a space better.

And my final tip for making the most of a small space: ■ Organize. Small spaces can get cluttered and messy in a hurry. That’s why it’s important whenever possible to create sensible storage solutions so that everything stays organized and accessible.

When it comes to organization, in addition to new items, I also prefer using and/or repurposing ordinary household items into wonderful and useful organizational tools.

BEST D.I.Y. ORGANIZING ITEMS ■ Use a drawer utensil divider to organize jewelry, pencils or school supplies.

■ Use kitchen cabinets for school papers and books.

■ Buy a multidrawer tool box. I use the ones I buy to organize everything from office supplies to crayons

HOW TO CREATE A SAFER AND MORE COMFORTABLE HOME YOUR home is a haven, a sanctuary where you and your family retreat to rest, relax and have fun. Unfortunately you may not be completely protected from potential household hazards and unexpected dangers. In the Philippines, outside factors such as fluctuating electricity, rising costs of energy and sudden weather changes can cause dramatic problems to the home. These conditions can potentially damage what is inside your home and affect the overall well-being and comfort of your family.

However, by knowing how these dangers are caused and understanding how it can be prevented, you take the first steps in creating not just a safer and more energy efficient home, but also in giving you and your family peace of mind.

“Making your home safer and better involves simple remedies and doesn’t need to be expensive, which is why our most important consideration should also be the family’s well-being,” said Michael Mondragon, vice president for retail for Schneider Electric (www.schneiderelectric.com) which offers a range of products that can protect electrical electric.com and electronic equipment against a variety of worrisome scenarios, along with solutions for efficient ambiance control. “Let’s look beyond the surface and pay attention to the different areas of the home. Focus on the safety and security of your own personal universe.”

SOHO Drink Table, 13" (withd) x 9" (diameter) x 22" (height)

Miami by way of Manila

and markers.

And my new favorite items on the market: ■ Huggable hangers. I love them! They reduce space and keep your closet orderly ■ Clear bins. Put out-of-season items (or those a child doesn’t use very often) in clear bins and then label with a marker or photo that helps you identify what’s inside.

■ Erasable boards. They come in all sizes, and you can also purchase erasable labels. I believe effective labeling is the key to effective storage and organization.

■ Cathy Hobbs, based in New York City, is an Emmy Award-winning television host and a nationally known interior design and home staging expert. Visit her web site at www.cathyhobbs.com.

BORN from an interior and event design company, which recently introduced its brand in the home furnishings industry, Moss Manila Home (www. mossmanilahome.com) envisions to create a mossmanilahome.com whole new kind of appreciation for art and style by highlighting on bold and eclectic design. Channeling the freshness of spring and the languor of summer, its latest home collection takes its design cues from posh Miami Beach with a chic spin.

The new pieces exude a resort glam vibe, highlighting elegant forms and modern details. The collection features a lounge club chair in crisp lines (Park Chair), a Lucite trunk table with polished brass accents (Boulevard Trunk Table), and a bar cabinet topped with oversized pyramid studs (Rockstud Butler’s cabinet). It also includes an accent table using one of their signature patterns with Italian Carrara marble top (Soho Drink Table), ottoman in lush sheepskin-like fabric (Miami Ottoman), console and side table with beveled mirror and matte brass base (Luxe Console and Luxe Side Table), and a set of octagon shaped mirrors with beveled borders in black and gold lacquer (Octagon Mirrors). All furniture is locally designed and manufactured in the Philippines. The décor mostly come from India, Brazil, the US, and Thailand.

Moss Manila Home beautifully showcases the stark contrast of timelessness and edginess, staying true to their vision of making a dramatic decorative statement with their exclusively designed furniture.

Curiosities and objects of art procured from travels around the world are gems that form a part of their offering. This serves as an ode to their strong belief in wanderlust as their primary source of information and lifelong muse. While each piece works individually, there is a harmonious design dialogue of glamour all throughout which makes it perfect for stylish abodes.

Moss Manila Home offers complimentary interior styling services with a minimum purchase. The store’s team of board-certified interior designers can help transform new homes, spruce up a room, or create a gallery wall. Projects can range from creating custom furniture, accessorizing a space to a total makeover. These talented designers can bring in décor and complete the finishing touches themselves. They offer personalized design expertise and incorporate Moss Manila Home’s products into their spaces.

PROBLEM #1: DAMAGE TO HOUSEHOLD EQUIPMENT DUE TO POWER SURGES OFTEN, we leave appliances and electronics switched on and plugged in all day, but even if these are turned off to avoid consuming power, they are still vulnerable to power surges which can short-circuit appliances and internally damage expensive electronics. You can protect your electronics from spikes and surges by investing in voltage regulators and surge protectors that can adjust and normalize power consumption.

PROBLEM #2: POTENTIAL FIRE HAZARDS CAUSED

BY UNREGULATED ELECTRICITY IF power surges caused by lack of electricity can damage the home, there is also harm caused by having excess energy. If the electrical wiring around the home has too much energy current flowing through the wires and fuses, it could reach unsafe levels and create problems and equipment failures which put your home at a high risk of household fires and other mishaps. Invest in a reputable circuit breaker which monitor and regulates the input and output of energy.

PROBLEM #3: HIGH ENERGY CONSUMPTION CAUSED

BY UNCOMFORTABLE ENVIRONMENTS DURING the summer months, lighting and temperature controls can mean the difference between a stuffy living space and relief from the unforgivable weather. Your home may be equipped with lighting fixtures that consume more energy than others, and temperatures controls that fail to provide a healthy and comfortable ambiance. Optimize your home’s environment with efficient ambiance controls that can control lighting and temperatures automatically. An integrated system can provide comfort all day by giving you control to adjust and customize your ambiancepreference settings while increasing your savings on energy consumption.

DESIGN&SPACE ROCKSTUD Butler’s Cabinet, 28" (withd) x 18" (diameter) x 55" (height)

B C U. O

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MAXIMIZE SPACE D4 Tuesday, June 9, 2015

Executives from both the government and the private proponent were upbeat with the awarding of the contract, as the P66.72-billion CaviteLaguna Expressway (Calax) will help spur economic activities within and around Calabarzon.

“With the notice of award, we have to wait for the completion of the post-award requirements, such as the bid security and the down payment of the premium,” Department of Public Works and Highways’ Public-Private Partnership (PPP) Officer in Charge Ariel C. Angeles said in a telephone interview.

This means that MPCALA Holdings Inc. will have to shell out roughly P5.46 billion to pay the first 20 percent of its premium offer.

“We are happy to be formally given the notice of award in this major road-infrastructure project.

The next step is the signing of the concession agreement and the payment of a 20-percent down payment by end-June,” Metro Pacific Tollways Corp. (MPTC) President Ramoncito S. Fernandez said in a text message.

Angeles said the private partner will have to comply with the postaward requirements within 20 days.

“Our target is to sign the concession agreement by June 29,” he said.

The construction of the thoroughfare should start by July 2016, and should be completed by 2020.

The private partner holds a 30-year concession to 2050.

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HE national government has created a P1.92-trillionworth pipeline of various infrastructure projects that will be undertaken in the medium and long term, according to data obtained from the National Economic and Development Authority (Neda).

The bulk of the cost will be used to undertake 16 rail projects worth P935.19 billion. Only seven of these projects will be implemented in the medium term, and the rest are being proposed to be undertaken in the long term.

The medium-term projects amount to P529.28 billion. The largest of which is the P390-billion-worth Mega Manila Subway,

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SPECIAL REPORT

WANTED: FRESH IDEAS FOR EL NIÑO MITIGATION

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Govt infrastructure plan to cost ₧1.92 trillion

WORKING 9TO5 BECOMING A LESS POPULAR WAY TO MAKE A LIVING EW YORK—If you want an income, or you’re an employer looking for help, it may be time to scrap the idea of the traditional 9-to-5 arrangement.

For workers, it’s become easier and less risky to go solo. Affordable health insurance plans, which kept many workers shackled to traditional jobs, are more accessible because of the Affordable Care Act. And companies are increasingly open to hiring freelancers and independent contractors.

Many say independent workers bring fresh ideas without the long-term commitment.

An industry dedicated to serving the companies that offer freelance and contract work and the people who fill those openings is growing. Gigs can be found at a number of web sites, such as Upwork. com and Freelancer.com, or through hiring services that connect professional freelancers and companies. And companies that provide shared rented office space, such as WeWork, lets freelancers mingle with fellow contractors.

In 2013 23 million people were selfemployed, according the US Census Bureau. That’s up 1.2 percent from the year before and up about 24 percent from 2003.

B L S. M

a 74.6-kilometer subway which will run from San Jose del Monte, Bulacan, to Dasmariñas, Cavite.

In terms of long-term projects for railways, the government estimates that these projects will cost around P367.4 billion. The largest of which is the proposed elevated portion of the Metro Rail Transit (MRT) Line 7, which is estimated to cost P104.92 billion.

The proposed 24-km elevated portion of the MRT 7 will run from Blumentritt in Manila to Commonwealth Avenue in Quezon City, and end at Banaba in San Mateo, Rizal.

Other areas that will account for most of the allocation will be airports, worth P475.9 billion; and expressways and highways, P431.33 billion.

A MAN collects coal left by a forest fire in Maasin, Leyte. A forest fire is sometimes caused by drought, which is often partially induced by human activities like deforestation, but it can also be caused by a natural occurrence, like El Niño. NONIE REYES

B A S. D | Correspondent  M G P

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Second of three parts

ITING data from Philippine Atmospheric, Geophysical and Astronomical Services Administration, a study conducted by government statisticians said the Philippines has experienced a total of 19 El Niño events, seven of which were considered strong, from 1950 to 2010.

Aside from its impact on food production, the study conducted by the government statisticians, led by former National Statistical Coordination Board (NSCB) Chief Romulo A. Virola said El Niño also caused unemployment and “significant” reduction in productivity.

Experts, such as Philippine Institute for Development Studies (PIDS) Senior Research Fellow Roehlano Briones, said there is a need for the government to rethink its governance framework in the water sector.

“We certainly need to drastically reform how we are doing overall governance in the water sector,” Briones said in an interview.

The priority, he noted, is the availability of potable water. Because of this, other sectors, such as agriculture, could be sacrificed whenever the Philippines is faced with water scarcity during a prolonged dry spell.

For instance, National Water Resources Board (NWRB) cuts off water for irrigation whenever the water level in Angat Dam hits critical level.

Angat Dam supplies 97 percent of Metro Manila’s drinking-water requirements. Farmers tilling some 30,000 hectares of land in Bulacan and Pampanga also rely on Angat Dam for irrigation.

During critically dry periods, such as El Niño events, the Philippine Water Code of 1976 requires that domestic water supply be prioritized over irrigation water supply.

William Ocampo, a 55-year-old, fourth-generation farmer in Porac, Pampanga, said he had to C  A

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■ JAPAN 0.3576 ■ UK 68.6195 ■ HK 5.7925 ■ CHINA 7.2397 ■ SINGAPORE 33.0861 ■ AUSTRALIA 34.2884 ■ EU 49.9096 ■ SAUDI ARABIA 11.9763 Source: BSP (8 June 2015)

A2 Tuesday, June 9, 2015

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Wanted: Fresh ideas for El Niño mitigation Continued from A1

delay planting rice seedlings due to the lack of irrigation water. Ocampo said he and his neighbor-farmers had to wait 10 days because the volume of available water would not allow farmers to get water at the same time.

“By August, the seedlings will be transplanted,” Ocampo said. According to Briones, this situation could be avoided if only the country’s irrigation system is efficient.

A study by Pids identified some “serious technical problems and issues” in the country’s irrigation systems that need to be resolved immediately.

“For years, the actual irrigated areas for most irrigation systems in the country had all been consistently below the target,” the study titled “Appraisal of Methodology in Estimating Irrigable Areas and Processes of Evaluating Feasibility of National Irrigation Administration

Metro Pacific bags Calax deal. . .

Metro Pacific’s MPCALA topped the rebidding for the multibillion-peso deal with a P27.3billion premium bid, edging out the P22.2-billion premium offered by the San Miguel Corp.’s (SMC) Optimal Infrastructure Development Inc. The premium offer made by Metro Pacific was the highest single premium the government received from a public tender thus far.

It was the second time the government opened the transaction to a public bidding process. The first one, although successful, was eventually voided by President Aquino himself.

The rebidding—criticized by business groups, both foreign and local—was launched to accommodate the petition of Optimal Infra-

area in Amris is not irrigable.

“About 3,500 hectares of the total area has an elevation of 19 meters and thus, cannot be irrigated from the Bustos dam, which has a maximum crest elevation of 18.5 meters. In addition, around 4,500 hectares of the Amris area had been built up with residential, commercial, and industrial infrastructure,” said study authors Cristina David and Guillermo Tabios, both consultants of Pids.

The same set of issues persists in the Pampanga Delta Irrigation System, which has a design service area of 11,540 hectares. Based on the data from the NIA, only around 1,000 hectares, or 8 percent, of the target coverage area during wet season and 3,800 hectares, or about 30 percent, of the target coverage area during dry season. Using a geographic information system (GIS) map of this area, it was found that a total of over 6,000 areas cannot be irrigated be-

(NIA) Irrigation Projects read.

The study said this has been due mainly to “overestimation” of irrigable areas by not fully accounting for built-up areas or urbanization, flooded areas during the wet season, and elevated areas that cannot be reached by gravity irrigation systems.

The study looked into four irrigation systems in the country, namely, Angat-Maasim River Irrigation System (Amris) in Bulacan, Balog-Balog Irrigation System in Tarlac, Pampanga Delta Irrigation System, and Casecnan-Upper Pampanga River Irrigation System (UPRIS) in Pampanga.

For the Angat-Maasim River Irrigation System, which has service area of 31,400 hectares, the study noted that actual irrigated area had declined to an average of about 17,500 hectares in the last 10 years from the original 22,000 hectares or so in the 1970s. According to the study, a total of 8,000 hectares of the 31,400 hectares target

cause these places have either become urbanized, converted to fish pens, have higher elevation than the water source, or usually become flooded during the wet season.

Meanwhile, Balog-Balog and Casecnan irrigation areas cover or overlap within two watershed boundaries. Since both systems deliver water by gravity, the efficiency of the design of these irrigation systems, where the canal network traverses another watershed is questionable.

Aside from inefficiency in existing irrigation systems, non-governmental organization the Rice Watch Action Network (R1) said the lack of irrigation in other parts of the country is compounding the problem for farmers.

Despite the billions of pesos poured into the government’s irrigation program since 2010, R1 said NIA has failed to meet annual targets for providing irrigation to new areas. The NIA is currently under the Of-

Continued from A1

structure Development Inc., which allegedly offered P20.1 billion in premium payment to the government.

Team Orion of Ayala Corp. and Aboitiz Equity Ventures Inc. topped the original auction with a P11.33-billion offer on top of the project cost. Metro Pacific trailed behind by a hairline difference.

Mr. Aquino, who is the uncle of SMC’s chairman, decided to cancel the results of the initial auction, so the government could generate higher revenues from the bidding. This was tagged by businessmen as a money milking initiative that ultimately places ordinary commuters at the losing end.

Calax is a 47-kilometer thoroughfare that will link the Manila-Cavite Toll Expressway and the South Luzon Expressway aimed at enhancing trade and socioeconomic activities in the region.

The private partner will take on the financing, design, construction, and operation and maintenance of the entire four-lane toll road.

The project will also include the construction of centralized toll plazas, a toll collection system, viaducts and bridges. The road should be operational by 2019, based on an indicative timeline. The government has awarded nine contracts since the infrastructure program’s inception in 2010.

Timta. . .

fice of the Presidential Assistant for Food Security and Modernization.

Data from the NIA show that in 2013, out of the 108,145-hectare new areas it targeted to irrigate, the agency managed to achieve 55 percent, or 58,632 hectares. Also, out of its goal of restoring irrigation in 64,621 hectares, the NIA achieved 54 percent, or 34,574 hectares.

R1 said this failure of NIA to expand irrigated areas has contributed “significantly” to the inability of the country to produce enough rice. “The Philippines continues to import rice due to weaknesses in the implementation of the government’s irrigation program.”

While constructing new dams and expanding irrigated areas will help boost food output and ensure water for the farm sector, other agriculture experts said changing consumption habits would help ease the pressure on dwindling water supply. To be continued

Continued from A8

Another committee amendment to the bill mandated the annual conduct of cost-benefit analysis by the National Economic Development Authority (Neda) on investment schemes incentives to determine the impact of tax incentives on the economy.

This would empower the Neda to collect and evaluate tax incentives data collected from the reports of the DOF, the BIR, and the BOC, along with investment-related data such as lists of registered business entities, investment projects, investment cost, actual employment and export earnings.

The House of Representatives will follow the Senate’s lead as it is set to approve on fi-

nal reading Timta on Wednesday, the majority leader said on Monday.

House Majority Leader and Mandaluyong City Rep. Neptali Gonzales II, in an interview with reporters, expressed confidence the majority has enough numbers to pass the Resolution of Both Houses (RBH) No. 1 or the economic Charter Change (Cha-cha) and the Timta on Wednesday.

“There will a sine die ceremony. We expect a big attendance enough for us to undergo a nominal voting for the Cha-cha and Timta,” Gonzales said. he proposed Timta, was authored by Liberal Party Rep. Maria Leonor Gerona-Robredo of Camarines Sur. With a report from PNA

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Protest march against China bullying set on Friday

By Recto Mercene

F

ORMER congressman Roilo Golez announced on Monday that his Di Ka Pasisiil Movement will join the multisectoral Martsa Para sa Kalayaan protest action on June 12, Independence Day, in front of the Chinese Consulate in Makati City to denounce China’s illegal reclamations at the West Philippine Sea (South China Sea) and other parts of it in violation of the Philippine Exclusive Economic Zone (EEZ) and international law.

Golez is one of the leading civilsociety advocates opposing China’s incursions that started with the illegal grabbing of the Mischief Reef and later the Scarborough Shoal inside the country’s EEZ. The march will be led by young professionals belonging to the Martsa Para Sa Kalayaan Network, headed by youth leader Eufemio Agbayani III, who also led a successful march last year.

Other groups that will join are the Parañaque Riders Club, Armas Riders, Filipino Patriotic Solidarity Movement, United Filipino Seafarers, HOPE Inc., some members of UP Vanguard Reserve Officers Training Corps, ROTC Philippines and retired Armed Forces generals.

Other like-minded groups were invited to join.

The rally will start at 10:30 a.m. on June 12 in front of the Chinese Consulate on Gil Puyat Avenue, Makati City, across Mapúa Institute of Technology’s Makati campus.

The Department of Foreign Affairs (DFA), meanwhile, said its legal team will study the value of the Murillo-Velarde map to determine its usefulness in regard to the arbitration case it filed before the Permanent Court of Arbitration in The Hague, the Netherlands.

“We’re glad the map is now in the hands of a Filipino. As to its value in the arbitration case, we will defer it to the legal team,” DFA Spokesman Charles Jose said in a media briefing.

Jose was referring to the almost 300-year-old map of the Philippines showing the disputed Scarborough Shoal being part of Philippine territory as far back as three centuries ago.

The map was bought at an auction by Filipino businessman Mel Velarde for $266,869.46, or more than P12 million.

Velarde said the first certified true copy of the map has been reserved for Malacañang, and he will personally present it to President Aquino on June 12, the anniversary of Philippine independence.

The Murillo-Velarde map debunks the so-called nine-dash line map China has been using as proof of its claim over the whole West Philippine Sea. It also locates the Scarborough Shoal, then known as Panacot, also called Panatag by Filipinos, some 150 kilometers off Luzon, then known as Nueva Castilla.

Renamed Scarborough Shoal after an English sailor, the Shoal has been made a target area or “impact point” by the US military during its decades of stay at Clark Field and Subic Naval Base without any protest from China.

Editor: Dionisio L. Pelayo • Tuesday, June 9, 2015 A3

House abandons BLBar June 11 approval

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By Jovee Marie N. dela Cruz

HE House of Representatives on Monday decided to defer the approval of proposed Basic Law on the Bangsamoro Autonomous Region (BLBar).

But House Majority Leader Neptali Gonzales II said the lower chamber will finish its period of interpellations for the peace on Wednesday or before Congress sine die adjournment on June 12.

“We agreed to finish the period of interpellations by Wednesday.

So we will have our session today and then by Wednesday we will start the session by 10 [in the morning],” he said.

Congress will resume session on the day of the last State of Nat ion Add ress of President

Aquino on July 27.

Gonzalez admitted that the target date of June 11 to approve the peace measure is impossible as the number of interpellators increased to 33 from 31.

Gonzales also said the lower chamber will remove the so-called opt-in provision that allows areas outside the Bangsamoro region to be part of the territory on the fifth and 10th year after the proposed measure’s approval into law after several lawmakers expressed opposition to the said provision.

With the deferment of the bill’s approval, the lawmaker added that the peace measure will be approved on final reading in September.

Gonzales said the election in the Bangsamoro region may be synchronized in 2019 elections but the plebiscite may be done alongside the 2016 national elections.

The BLBar aims to create the new Bangsamoro juridical entity replacing the Autonomous Region in Muslim Mindanao.

‘Flexible’ Charter allows BLBar ‘flaws’–Lacierda

MALACAÑANG maintained on Monday that perceived legal infirmities in the Palace-endorsed BLBar, including an autonomous parliamentary set up under a presidential system, are “within the flexibilities” allowed by the 1987 Constitution.

At a media briefing, President Aquino’s chief spokesman, Edwin Lacierda, dodged questions on

whether Palace officials remain confident that the BLBar would get enough votes to ram through passage of the controversial measure in both the Senate and the House before session adjourns on June 11.

“I would leave the timetable of the BLBar to the legislators,” Lacierda said.

Asked about former Chief Justice Reynato Puno’s reported misgivings that BLBar’s provisions violate the Constitution and require Charter changes to be valid, Lacierda recalled that Aquino personally reminded government peace negotiators that the envisioned BLBar should conform “within the flexibilities of the Constitution.”

Amid similar concerns over Bangsamorobasiclaw’s(BBL)perceived “constitutional infirmities” raised in ongoing plenary deliberations in the Senate and the House, Lacierda voiced confidence the BBL can withstand the expected legal challenges.

The Palace official recalled that

Tourist tests negative for MERS-CoV

during the peace talks with the Moro Islamic Liberation Front which led to the BBL, the government negotiators got specific instructions from Aquino on the matter.

“He [Aquino] spoke...if you remember, that the negotiations will always be done within the flexibilities of the 1987 Constitution. From then until now, we have maintained that principle,” he said.

Lacierda noted that the President even “reminded the negotiators…and also in the drafting of the BLBar that everything should be done within the flexibilities of the Constitution.”

“We have not veered away from that principle. We strongly believe that the BLBar was drafted within those flexibilities and it is, therefore, to our mind, constitutional.

Certainly, people will be asking or may question it but we are very firm in our belief that we can defend the Constitution in whatever forum,” he added. With Butch Fernandez

No documents destroyed in Crame fire

By Claudeth Mocon-Ciriaco

By Rene Acosta

Correspondent

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A

TOURIST who recently arrived in the Philippines and initially displayed symptoms of the Middle East Respiratory Syndrome Coronavirus (MERS-CoV) tested negative of the dreaded disease, an official of the Department of Health (DOH) revealed on Monday.

Vito Roque, officer in charge of the DOH’s Bureau of Epidemiology, at the same time, appealed to the public especially those coming from South Korea or Middle East to “truthfully and completely” answer the Health Declaration Checklist to be filled up by all arriving passengers to prevent the entry of MERS-CoV and other infectious disease in the country.

“If they will not divulge the information…at the end of the day how can we help them? We are doing this for their loved ones, for our fellowmen, and for the country,” Roque said during the media briefing after the launch of the Hi5 (High Impact Breakthrough Strategies) Summit at the Century Park Hotel in Manila where he was joined by Assistant Secretary Elmer Punzalan and DOH Metro Manila Director Ariel Valencia.

He also said that there is still no “travel or trade restriction” issued against South Korea.

Roque said that the tourist, whose gender and age were withheld, arrived recently in the country but clarified that the tourist showed “no symptoms” while onboard the airplane.

Roque also refused to confirm if the tourist came from South Korea, where five persons have already died and 64 others have been affected by the virus.

Roque said the tourist showed the symptoms of Mers-CoV “while in the community” but was tested negative after he subjected himself for test in a medical facility.

He a l so ea sed up wor r ies saying that the department is ready and fully prepared to deal

SOME South Korean passengers arriving at the Ninoy Aquino International Airport wear protective masks as protection from the deadly Middle East Respiratory Syndrome-Corona Virus. Recto Mercene

with the disease.

“Naka-inplace na lahat iyan. All DOH hospitals ay naka heads up na… also private hospitals… remember in 2014 we have three experiences [of Mers-CoV cases],” he said, adding that Health Secretary Janette Grain is set to meet with private hospitals this week.

He stressed that it is still important for the public to be vigilant and be aware of the virus.

According to the World Health Organization (WHO), coronavirus are a large family of microbes that cause a range of illnesses in humans, ranging from common cold to Severe Acute Respiratory Syndrome.

The MERS-CoV is a strain of coronavirus which was first identified in 2012 in Saudi Arabia.

Those infected with MERS-CoV will experience fever, cough and shortness of breath.

Close monitoring

IN the wake of the serious outbreak of MERS-CoV in South Korea, Ninoy Aquino International Airport doctors and nurses have intensified their monitoring of arriving passengers from South Korea to prevent the entry of the virus.

South Korea, with 1.7 million arrivals last year, is the country’s No. 1 source of tourists.

“Our thermal scanners and other devices are in place so that if we detect any infected passengers, we are able to isolate them and have a complete background check of the person,” Roberto Salvador said.

He said early detection is crucial so that people seated near or around an infected passenger inside the airplane could be traced and examined.

For fear of contamination, some customs examiners have started

wearing protective masks.

“It’s better to be prepared and protect ourselves,” said Art Lazaro, customs operations chief.

The WHO reported that some 30 South Koreans has been afflicted by the virus and two of them reportedly died.

Hundreds of schools in Seoul and Incheon have been closed as the Mers-CoV virus is considered to be potential pandemic threat.

The Department of Foreign Affairs on Monday adviced the Filipino community in South Korea to visit the WHO web site regularly for updates and to take precautionary measures to avoid infections by regularly washing their hands and observe personal hygiene.

“No Filipino has been affected, according to our Embassy in Seoul,” said spokesman Charles Jose during a briefing. With Recto Mercene

EPUTY Director General Leonardo Espina, National Police officer in charge, on Monday the ordered inspection of all offices at the force’s general headquarters to ensure that they are not violating the Fire Safety Code.

Espina issued the order following a fire that gutted the old building of the Internal Affairs Service (IAS) on Sunday night.

One person was injured and officials assured that none of the office’s document was damaged or destroyed.

It was learned that the gutted building was set for renovation and IAS transferred to another building inside Camp Rafael Crame in January.

Espina wanted that all offices at Camp Crame are safe from fire or are compliant with the Fire Safety Code.

If not, they should be fixed.

Senior Supt. Bartolome Tobias, National Police spokesman, said the one-hour fire, which broke out at around 7 p.m., gutted the old IAS building near the camp’s Boni Serrano gate and injured Julius Nicolas.

Tobias said that although the building was totally destroyed, no document was damaged or destroyed since all case folders and other papers at IAS have been moved to another building where the IAS is already holding office. “Negative docs [documents] already. The cost of damage and cause of fire yet to be determined,” Tobias said.

Senior Supt. Adriatico del Camat, spokesman for the IAS, echoed Tobias’s statement, saying that the IAS has already transferred to another building in Camp Crame in January.

Del Camat said the old IAS building has not been used since January.

“We assure the public that there were no documents left in the burned building. Since IAS transferred to its new building, all documents and equipment were brought to the new facility,” he said.

UN Subcommittee on Prevention of Torture: Philippine jails, prisons overcrowded

By Marvyn N. Benaning Correspondent

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HE United Nations Subcommittee on the Prevention of Torture (UN SPT) practically indicted the Philippine government for not doing anything about the “chronic problem of overcrowding in places of detention in the Philippines.”

UN SPT issued the statement after visiting Philippine jails and prisons, and finding out cases on the use of torture and other illegal means to force sham confessions from suspected criminals

and even political prisoners.

Reacting to the UN SPT statement, the humanrights watchdog Karapatan said the reason such problems exist is the “grossly unjust system that puts many innocent people in jail.”

Karapatan Secretary-General Cristina Palabay said the cases of the 527 political prisoners in the Philippines are clear examples of unjust government policies and practices that exacerbate the conditions in detention centers.

Palabay added that the political prisoners endure the harsh and inhuman conditions in jail

facilities, denied of their right to speedy and fair trial, and go through tortuous court proceedings.

Karapatan urged the UN SPT to make their report public “in the interest of transparency and accountability.”

“The Filipino people, who worked tirelessly to uphold and advance human rights, deserve to know. We cannot expect such from the Aquino administration, who will do everything to prettify its image before the international community as its human-rights record stinks,” Palabay added.

Meanwhile, Party-list Rep. Lito Atienza of

Buhay filed two resolutions calling attention to the present conditions of inmates languishing in the country’s penitentiaries.

“Our first resolution strongly urges the Department of Justice to conduct an immediate review of all cases of inmates and/or detainees in all provincial and city jails across the country.

It is a reality that many of these inmates, due to severe poverty, are overstaying beyond the penalites prescribed for their offences, particularty in the City of Manila,” Atienza said.

Atienza pointed out that the Manila City Jail,

in particular, which was built to accommodate roughly 800 to 1,000 inmates, has a population of almost 4,000 inmates. The country’s seven penitentiaries have a total capacity of 16,000 inmates, but a total of 41,000 are presently held.

“Our second resolution tasks the Bureau of Jail Manangement and Penology to conduct an immediate inspection of the existing conditions of all provincial and city jails across the country, and effect the necessary repairs and improvements needed. They should work with the local governments concerned and even deputize them

if needed,” Atienza added.

Atienza cited Article III, Section 19 Paragraph (2) of the Constitution that bans “the employment of physical, psychological, or degrading punishment against any prisioner or detainee or the use of substandard or inadequate penal facilities under subhuman conditions.”

He added that Article I (1) of the International Convention on Civil and Political Rights also provides that “all persons deprived of their liberty shall be treated with humanity and with respect for the inherent dignity of the human person.”

Economy

A4 Tuesday, June 9, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

LRT 2 Masinag extension line seen to be operational by 2017

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By Lorenz S. Marasigan

ONSTRUCTION of the multibillionpeso extension of the Light Rail Transit (LRT) Line 2 may kick off any time soon, as the transportation department holds a groundbreaking ceremony for the project on Tuesday.

Transportation Secretary Joseph Emilio A. Abaya noted that the P2.27-billion infrastructure initiative, which will add 4.2 kilometers to the line up to Masinag in Antipolo City, will be operational by the third quarter of 2017.

“The LRT 2 system is a crucial transportation service that hundreds of thousands of passengers rely on. We are pleased to extend its scope to even more stakeholders in the eastern part of Metro Manila, many of whom go into the metropolis for work and school on a daily basis,” he said.

The extension of the country’s youngest overhead railway system is expected to cater to an additional 75,000 daily passengers living in densely populated areas of Rizal.

D.M. Consunji Inc. is the contractor for the project.

The Masinag Extension covers the construction of a 4-km elevated viaduct from Santolan, Pasig City to Masinag, Antipolo City. Two additional stations will be built: the Emerald Station in Cainta, Rizal, and the Masinag Station at the Masinag Junction in Antipolo City.

Aside from the construction of the eastward extension of the line, two other major contracts are up for bidding to further improve and modernize the LRT 2 system’s services.

An operations and maintenance contract is already in the procurement process, and is intended to provide riders with customer-oriented services and well-maintained facilities that enhance the overall passenger experience.

PSG AMBULANCE

Philippine Charity Sweepstakes Office (PCSO) Vice Chairman and General Manager lawyer Jose Ferdinand Rojas II (third from left) leads the turnover of two brand-new ambulances from the PCSO Ambulance Donation Program to Presidential Security Group Commander Commo. Raul Ubando (second from left) at the charity agency’s main office in Mandaluyong City recently.

With them are (from left) PSG Chief of Hospital Col. Rolando Cruz and PCSO Directors lawyers Mabel Mamba, Francisco Joaquin III and Bem Noel. JOSEPH MUEGO

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‘Structural weakness caused 2014 budget underspending’

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udget Secretary Florencio B. Abad said structural weakness, such as ill-prepared projects proposed by government agencies, caused the underspending of up to P303-billion budget allocation in 2014.

He told Congress on Monday that of the P2.284.3-trillion programmed spending for 2014, only P1.981.6 trillion have actually been disbursed, creating a situation of massive underspending, particularly for the administration’s infrastructure projects.

At the Joint Congressional Oversight Committee on Public Expenditures, Abad said the single biggest underspent allocation in 2014 was on infrastructure and capital outlays pegged at P106.9 billion. The remaining underspent allocation at P184.9 billion was on current operating expenditures that include personnel services and allotment to local government units.

The budget chief said the lingering structural weakness that affect disbursement include project implementation difficulties, poorly prepared projects or national agencies

SM raises investment in Cebu Seaside City complex to P30B briefs

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EBU CITY—A key official of SM Prime Holdings said the company is increasing its investment for the development of SM Seaside City complex in Cebu City’s South Road Properties (SRP) to P30 billion.

“For the whole complex, the original budget was P20 billion. At the rate we’re going and everything is getting more exciting, we may have to raise our budget to P30 billion,” SM Prime President Hans Sy said.

Sy said the company is increasing its investment for the project because “we felt the demand is really there.”

Apart from the mall, the 30-hectare development will also include a five-star hotel with a convention center, high-rise office and residential buildings and an events center.

Sy said SM Prime has already spent around P7.5 billion for the mall development, which it is

targeting to open in the latter part of this year.

The mall developer is in its fourth year in developing the five-level SM Seaside City mall at the SRP and, according to Sy, it would take six more years to complete the whole complex.

“It’s a whole 10-year project,” he said.

The mall, Sy added, is projected to employ some 5,000 workers, excluding the employment expected to be generated by the tenants.

He said that after the mall’s completion, SM would then proceed to building the convention center and the office buildings.

The 470,000-square-meter SM Seaside mall would be the fourth mall to be opened this year

by SM Prime after it opens a mall in Caloocan City this year, Sy said.

SM Prime recently opened its 52nd mall in San Mateo, Rizal, and another one in Cabanatuan City earlier this year. PNA

Business, schools eye DTS to ease youth unemployment

echnical-vocational institutions, industry leaders and concerned stakeholders made a common pitch during a recent forum in Mindanao to step up the implementation of the dual training system (DTS) to help reduce youth unemployment.

They said that the DTS, which combines study with work experience, reduces the job and skills mismatch, and help graduates of technical-vocational education and training (TVET) courses find employment easier.

Having a skilled and job-ready work force is essential as the country head toward the Asean integration and as the Aquino administration works its way to attain inclusive growth.

“Recognizing the vast opportunities and the great challenges posed by Asean 2015 and the government’s thrust of attaining inclusive growth, we, the representatives of schools and companies,

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commit to collaborate and establish close linkages and partnerships to produce Filipino workers whose competencies are at par with the rest of the world, reduce unemployment and contribute to poverty reduction in the country,” the participants of the First Mindanao Zonal Dual Training Partnership Forum said in the social contract they signed.

The Technical Education and Skills Development Authority (Tesda) Region 10 took the lead in organizing the recently concluded forum, held in Cagayan de Oro City, which aimed to gather the commitment of industries and the TVET institutions in implementing the DTS. Tesda was supported by the Philippine Chamber of Commerce and Industry (PCCI), German Philippine Chamber of Commerce and Industry Inc. (GPCCI), Cagayan de Oro Chamber of Commerce and Industry, and the Mindanao TVET

institutions association.

“The dual training system provides a promising path forward to young people by giving them a holistic learning experience that meld knowledge gained in the schools and hands-on work in companies,” Tesda Director General Joel Villanueva said.

“The results are graduates who can easily move from training to employment,” he added.

Institutionalized through the enactment of Republic Act (RA) 7686 in 1994, the DTS is an instructional delivery system of technical and vocational education and training that combines in-plant and in-school training, based on a training plan designed and implemented by accredited schools and their partner-business establishments.

During the forum, industry representatives and TVET institutions committed to intensify implementation of the DTS and,

at the same time, called on other institutions and businesses to put in place the DTS in their systems. More than 50 commitments to DTS partnerships were signed between TVET institutions and companies.

They said that DTS programs should also be institutionalized in public and private institutions as part of the full implementation of the law, and to make its impact felt in terms of helping ease youth unemployment.

Discussions at the forum focused on the DTS implementation. Speakers were from the GPCCI Tesda, K to 12 Plus Project Philippines, University of Makati, Nestlé Philippines Cagayan de Oro and Xavier University.

Misamis Oriental Gov. Vicente Emano, Tesda officials, local officials, officials from the PCCI, GPCCI and the local chambers and association of TVET institutions graced the event. PNA, Claudeth Mocon-Ciriaco

and departments, as well as procurement difficulties.

Abad added that peculiar problems of small government agencies have also affected disbursement in 2014.

Meanwhile, savings generated from lower interest payments and net lending have also contributed to the underspending of P303 billion, also in 2014.

Likewise, the government’s refocusing on efforts to Supertyphoon Yolanda rehabilitation, as well as unutilized funds from the Disbursements Acceleration Program and Priority Development Assistance Fund, have also compounded the underspending.

The Department of Budget and Management (DBM) has instituted measures to address the underspending, Abad said, which include submission of implementation plan for the programs and projects to the DBM in 2015.

He said the DBM has also designated full emergency delivery units in line agencies, as well as assignment of a full-time officer to monitor programs and project implementation. Estrella Torres

sc upholds doh’s power to regulate health clinics in phl The Supreme Court (SC) has upheld the Department of Health’s (DOH) power to regulate the activities and operations of all clinics that conduct preemployment medical examinations on overseas Filipino workers (OFWs).

In an en banc ruling, the SC denied the pleas filed by the Gulf Cooperation Council (GCC) Approved Medical Centers Association Inc. (Gamca) and Christian E. Cangco against the implementation of the DOH’s February 20 order.

Prior to the enactment of Republic Act 10022 on March 8, 2010, the DOH allowed the decking of OFWs in the conduct of their preemployment medical examinations.

Decking is a practice whereby an OFW is required to register for preemployment medical examination with a group of medical clinics, which subsequently farms out the OFW to a medical clinic located elsewhere.

The problem with the decking practice, however, is that Gamca was the sole medical group accredited by GCC to conduct medical exams on the OFWs bound to the GCC states. This means that Gamca’s member-clinics had the monopoly of conducting medical examinations on OFWs. PNA

house OKs bill creating a senior high school for each legislative district

The House of Representatives has approved on third and final reading House Bill (HB) 5604 providing for the establishment of a senior high school for each of the country’s legislative districts and appropriating funds thereof, in pursuance of the implementation of the K to 12 Enhanced Basic Education Program of the government.

The bill substituted HB 3399, principally authored by Rep. Edgar R. Erice of the Second District of Caloocan City and was endorsed to the plenary by the Committees on Basic Education and Culture, chaired

by Rep. Kimi S. Cojuangco of the Fifth District of Pangasinan, and on Appropriations, chaired by Rep. Isidro T. Ungab of the Third District of Davao City.

HB 5604 provides there shall be established, under the control and supervision of the Department of Education, a senior high school for each of the legislative districts in the country. The establishment of a senior high school means either expanding the existing high school to include the senior high school or establishing a stand-alone senior high school.

Moreover, consistent with Rule IV, Section 15 of the Implementing Rules and Regulations of Republic Act 10533, the DepEd shall authorize and regulate the offering of senior high school in private educational institutions. It shall also prescribe the guidelines on the issuance and revocation of permits and/or recognition of senior high schools.

The bill also provides that the courses to be offered by the senior high schools shall be in accordance with the Enhanced Basic Education Curriculum formulated and designed by the DepEd in pursuance of Section 5 of RA 10533 and in coordination with the Commission on Higher Education, Technical Education and Skills Development Authority, and other concerned national government agencies and stakeholders. PNA

armm to hold ramadan trade fair during fasting month

Coastal cleanup day Sen. Cynthia Villar delivers her message as guest of honor during the cleanup activity organized by the United Methodist Church at the Freedom Island along Coastal Road, also known as the Las Pinas-Parañaque Critical Habitat and Ecotourism Area, over the weekend at the Freedom Island in Las Piñas. PNA

COTABATO CITY—The Department of Trade and Industry (DTI) will organize a monthlong Ramadan Fair this month as part of the observance of the Holy Month of Ramadan.

The Ramadan Fair is considered the most popular annual multiproduct consumer exhibition in the region.

Dr. Susan Anayatin, DTI 7 Autonomous Region in Muslim Mindanao (ARMM) chief of technical exhibitors and visitors, said that this year, 40 food exhibitors and 20 nonfood exhibitors will showcase ARMM’s best goods and services from five provinces that include Maguindanao, Lanao del Sur, Basilan, Sulu and Tawi-Tawi.

During the Holy Month of Ramadan, Muslims all over the world are required to fast during the day.

This year’s observance is expected to start on June 17. The DTI-ARMM will be the Ramadan Fair’s lead agency, together with the Department of Tourism of ARMM. According to Anayatin, the event will attract exhibitors and visitors from the ARMM and neighboring areas.

Among the activities lined up for the monthlong Ramadan Fair is the Koran reading competition, headed by the Bureau of Madaris, whichaims at communicating messages written in the holy Koran. PNA

Economy BusinessMirror

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briefs n. cotabato consumers assured of sufficient power supply

COTABATO CITY—Power consumers in North Cotabato have nothing to worry, as electric cooperative officials are expected to get additional power supply to reduce the number of hours of power interruption that had been plaguing power consumers since February.

Within the month, the coalfired power plant owned by AboitizPower in Davao City becomes fully operational, according to the Cotabato Electric Cooperative (Cotelco).

Godofredo Homez, general manager of Cotelco, said the number of megawatts of power the co-op will purchase from AboitizPower’s Therma South Inc. (TSI) is enough to supply the load needed by its more than 110,000 power consumers all over its service areas.

The Cotelco has signed a 10-MW power-supply agreement with TSI, three years before the construction of plants could begin.

“If TSI begins its operations in July, we can get at least 10 MW of power from the coal plant,” Homez said.

“We have a shortfall of 12 MW daily because of a limited supply from the National Power Corp. And with only 2 to 3 MW of shortfall, we can assure our consumers of brownouts of at least an hour a day, as compared to two to four hours daily,” he said. PNA

japanese c.e.o. of srpc now an adopted son of pangasinan

LINGAYEN, Pangasinan—The president, chairman and CEO of San Roque Power Corp. (SRPC), which operates the 440-megawatt San Roque Multipurpose Project, is now an adopted son of Pangasinan.

This is by virtue of Provincial Resolution 1368-2015, which was approved on Monday. Declared in Provincial Resolution 1368-2015 as adopted son of Pangasinan was Ryukichi Kawaguchi.

“One need not to be a true Pangasinense to fully serve the province of Pangasinan in terms of leading a private company involved in hydroelectric-power generation,” stated the resolution authored by Board Member Alfonso Bince Jr. SRPC, with its main office in San Manuel, Pangasinan under Kamaguchi’s leadership, has been operational in the country, particularly in Pangasinan, since 2003.

The resolution also cited that, for more than a decade now, or since its start of operation in 2003, the SRPC, “has become increasingly active in organizing and financing development projects that have benefited different local communities.”

The resolution said the company has been promoting the interest of Pangasinan in the areas of microfinance, capacity-building, community empowerment, infrastructure facilities, health care, children’s welfare, environmental information campaign, and disasterrelief operations. PNA

Meralco power bill cheaper by P0.58 per kWh in June

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By Lenie Lectura

ower bills in June will go down

by P0.58 per kilowatt-hour (kWh), the fourth downward adjustment for the year, the Manila Electric Co. (Meralco) announced on Monday.

This translates to a reduction of P116 in overall Meralco bill for households consuming 200 kWh. The P0.58-per-kWh reduction can be attributed to a P0.36-per-kWh drop in generation charge; P0.09 decline in transmission charge; P0.06 decrease in taxes; and P0.07 drop in other charges.

Generation charge, the biggest component of a Meralco bill, decreased by P0.36 per kWh, from P4.81 in May to P4.45 this month.

This is its lowest level since October 2010.

The reduction was mainly driven by lower charges from plants under the independent power producers (IPPs) and power supply agreements (PSAs) due to lower fuel costs and higher dispatch of the plants.

IPPs and PSAs registered reductions of P0.67 and P0.59 per kWh, respectively.

The reductions in IPP and PSA rates more than offset a P2.85-perkWh increase in charges from the Wholesale Electricity Spot Market (WESM). It will be recalled that WESM exhibited noticeable price spikes, particularly beginning the week of May 11, as a number of plants went on forced outages or had reduced their output.

The high WESM clearing prices, which, at times, approached P30 per kWh, were sustained for the rest of the supply month. According to the Philippine Electricity Market Corp., the operator of WESM, the Secondary Price Cap was not triggered last May. The share of IPPs, PSAs and WESM to Meralco’s total power requirements stood at 45 percent, 48 percent and 7 percent, respectively.

Meralco has consistently reiterated that it does not earn from the

A Manila Electric Co. (Meralco) lineman conducts a routine inspection of power cables that supply electricity in Manila neighborhood. Meralco has announced on Monday that power bills will be cheaper by P0.58 per kilowatt-hour in the billing month of June. Nonie Reyes

generation and transmission charges, as these are pass-through costs. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to

Tobacco, alcohol excise tax reached P111.6B in 2014, BIR’s Henares says

By Jovee Marie N. dela Cruz

T

he volume of removals, or the number of locally manufactured tobacco products released to the market, has decreased in 2014 from a year earlier, but the revenues from “sin tax” continue to increase, the Bureau of Internal Revenue (BIR) chief said on Monday.

Revenue Commissioner Kim Jacinto-Henares, after the hearing of the Joint Congressional Oversight Committee on Public Expenditures, said cigarettes that were released to the domestic market totaled 3.6 million packs in 2014, lower from the 4.8 million packs recorded in 2013.

However, the volume of removals for fermented liquor was at 1.41 billion liters, slightly up compared to 1.4 billion liters in 2013.

Removals of distilled spirits has also increased to 415 million proof liters in 2014, from 371 proof liters in 2013.

“The removals of distilled spirits

are continuously increasing because the market of fermented liquor is transferring to distilled liquor, that’s why it’s increasing, meaning the consumption for fermented liquor is deceasing, while the distilled liquor is increasing,” Henares said.

Removals of wines have also increased to 1.2 million in 2014, from 1.1 million in 2013.

Moreover, Henares said, the BIR’s total excise-tax collections from alcohol and tobacco products have reached P111.6 billion in 2014, higher compared to P100.9 billion in 2013.

Aiming to pump revenues into its universal health care and other programs that directly benefit the public, the Aquino administration passed the sin-tax reform law, or Republic Act 10351, in December 2012 and took effect in January 2013.

By raising the sin-tax rates, the government, by its calculation, expects to collect at least half-a-trillion pesos from 2013 to 2017, with the bulk of the collection coming from

the tobacco industry.

Under the sin-tax reform law, tax rates on alcoholic beverages and tobacco have been raised to boost state revenues and reduce the incidence of smoking.

The increase will be implemented annually for most products until 2017, after which the tax rate will be indexed to inflation to avoid eroding government revenues.

Moreover, the Department of Health said the law has proven to be effective in reducing tobacco consumption, saying that, during the first year of implementation of the law, there was a significant decrease in smoking prevalence among adults 20 years and over, from 31 percent in 2008 to 25.4 percent in 2013.

More important, the agency said a significant decrease in smoking prevalence was also seen among children 10 to 19 years, from 9.1 percent in 2008 to 6.8 percent in 2013, despite no significant increase in tobaccoadvocacy activities.

the National Grid Corp. of the Philippines. Of the total bill, only the distribution charge accrues to Meralco.

Meralco’s distribution charge has not registered any adjustment

or change, and has remained at the same level for almost a year, or since July 2014, when it reflected a lower rate compared to June of the same year.

BSP warns public vs phishing

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he Bangko Sentral ng Pilipinas (BSP) issued a public advisory on Monday, warning financial consumers to be cautious of scammers who hack their way into personal information for the purposes, of accessing one’s bank accounts.

Phishing, as broadly termed, is a form of identity theft whereby someone steals or uses personal or sensitive information of another person without his or her knowledge or permission. This is done through hacking into one’s personal account, hijacking one’s data and taking over one’s online identity to commit fraudulent acts or conduct unauthorized business.

“Once the scammers have your information, it becomes possible for them to withdraw money or purchase items under your name; open a new bank or credit-card account; use your present account to illegally deal with other people; or encash checks on your behalf,” the BSP warned.

These scams are usually propagated through computer viruses or are embedded in e-mails.

According to the BSP, the fraudsters usually send an e-mail with a generic greeting, such as “Dear Cus-

tomer” or “To Our Valued Client,” with a message asking the recipient of the e-mail to verify or update one’s account, which, if not done, will result in account suspension.

“This message is usually accompanied by a link that, when clicked, leads to a spoofed or fake web site, which asks you to input your personal and financial information, such as user IDs, passwords and account and personal identification numbers,” the BSP said. These people usually disguise their fraudulent activities through the use of official-looking logos or other identifying information from financial institutions or other legitimate organization.

Apart from e-mails, phishing may also be done in text messaging, chat rooms, electronic fake banner ads, fake mailing lists and fake job search sites, among others.

As such, the BSP said that the proper way to deal with these is to not reply to suspicious e-mails.

“Ignore and delete the message. Do not click any link in a suspicious message. Do not give personal and financial information requested through e-mail,” the BSP said. Bianca Cuaresma

US expert presides over Franchise Asia PHL 2015 Certified Franchise Executive Program

gorriceta amenable to pgma’s house arrest

ILOILO CITY—Rep. Arcadio Gorriceta of the Second District of Iloilo said that he is amenable to calls that former President, now Pampanga Second District Rep. Gloria Macapagal-Arroyo be placed on house arrest because of her degenerative illness and for humanitarian reasons.

Gorriceta said that placing the former President on hospital arrest provides her access to her hospital needs, and that the feeling of being at home and able to see her family members daily is really consoling.

The Committee on Justice, headed

by Rep. Niel Tupas Jr. of the Fifth District of Iloilo has recently submitted a resolution which was approved in the plenary with the issuance of House Resolution 908 for the house arrest of PGMA so she would be able to rest and have her medication at the same time in her residence. PNA

Tuesday, June 9, 2015 A5

babla

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lobal Franchise Masters Private Ltd. Managing Director and CEO Harish Babla will tackle alternative approaches on the basics of franchising to participants of the Certified Franchise Executive (CFE) Program in the forthcoming Franchise Asia Philippines 2015.

Babla is regarded as one of the world’s brightest certified franchise executives. He will serve as facilitator of the CFE, one of the major Franchise Asia PHL 2015 components, from Monday to Tuesday at the AIM Conference Center in Makati City.

A successful entrepreneur, business visionary and inspiring franchise leader, Babla will talk about the concept of the Franchise Mind, which essentially is one of the trade

secrets of successful businesses.

The topic will delve deeper into the framework of an effective franchising system. Babla, a growth strategist who has honed his franchise skills in various capacities since 1983, will tackle subjects including the relationship between the franchisee and the franchisor, myths about franchising, the role of technology in today’s businesses, the importance of training and the factors that make a good enterprise.

Babla reigned for over seven years as the largest global franchisee, with over 1,200 units of worldwide print franchise.

He has run a successful Master License in the western United States for a diversified retail print-imaging company, the Copy Club. He was twice honored as “Franchisee of the Year.”

He also founded Grins 2 Go, a retail and mobile photography franchise, which earned him a “Franchisor of the Year” award from the Indus Business Journal in 2008.

The CFE Program is a mini-MBA professional development course duly accredited by the US-based Institute of Certified Franchise Executives. It is designed to raise the level of expertise of franchise professionals. Its certificate is a global mark of distinction in franchising.

Franchise Asia Philippines 2015 is Asia’s premier four-in-one franchising event,

where businessmen will converge to explore and discuss the various potentials and opportunities offered by the increasingly integrated global economy.

Organized by the Philippine Franchise Association (PFA), the country’s pioneer and largest franchise association, Franchise Asia Philippines 2015 is copresented by BPI Family Ka-Negosyo Franchising Loan and PLDT SME Nation, Sun, Smart and ePLDT as major partners.

Aside from the CFE Program, Franchise Asia Philippines 2015 will be topbilled by three vital fora—the International Franchise Conference, on June 10 and 11; the 3-day International Franchise Expo, from June 12 to 14; and the Educational Seminars simultaneous with the expo, from June 12 to 14.

The event is supported by 7-Eleven, Megaworld International, The Generics Pharmacy and Seaoil Phils. (Platinum); Coca-Cola and Qualiplus (Gold); Max’s Group, Goldilocks, Meralco BIZ Partners, All Day, Mister Donut, Farmacia Ni Dok, Francorp Philippines and Pepsi-Cola (Silver); Potato Corner, PR Gaz, Mini Stop, Jollibee, Wendy’s, HBC, Bibingkinitan, Philippine Business Bank, K2 Drug, Crystal Clear and Blooming Ventures Inc. (Bronze).

Its mall partners are Araneta Center, Ayala Malls (Glorrieta, Tri-Noma, Market! Market!), Robinsons Malls, Walter Mart, SM Supermalls and StarMall.

Almost done

Workers of the Department of Public Works and Highways-National Capital Region rush the repair and rehabilitation of Ayala Bridge in Manila in connection with its scheduled reopening to vehicular traffic on Thursday. The vital bridge was closed for rehabilitation on March 21. PNA

Other event partners include AM Cleofe Prints, Commerce Asia Inc., Chase Technologies Corp., Globaltronics Inc., Corporate Pisanti, Sportshouse and Jimac Inc. Donor sponsors: Bench, Duty Free Phils., Giordano, Kambal Pandesal, Oryspa and Saint

Francis GenericDrug. Partner organizations: Department of Trade and Industry Federation of Filipino-Chinese Chamber of Commerce and Industry Inc., Go Negosyo, Philippine Chamber of Commerce and Industry and Philippine Retailers Association.

A6 Tuesday, June 9, 2015

Opinion BusinessMirror

editorial

The rule of law in Philippines

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OO often, we treat ourselves like the “slow” student in the class, from whom not much is expected and, therefore, every little improvement is a “big” success story. The foreigners treat us that way also. It’s embarrassing, and it is not helping the nation genuinely improve.

Here are the recent headlines. “PHL is most improved in rule of law index.” “Success story: PHL ranks 51st in 2015 rule of law index.” “PHL jumps 9 spots in rule of law index.” These refer to the 2015 survey conducted by the World Justice Project.

American Bar Association Rule of Law Initiative Director Elizabeth Andersen said the Philippines is one of three countries considered as a rule of law “success story.” Andersen cited certain judicial and policy reforms, such as the Department of Justice’s court-automation initiative and governmental efforts geared toward helping remove the country from the intellectual-property watch list.”

My, aren’t we special. Obviously, we have been overstating the problem of our adherence to the rule of law as we are making big improvement in courtroom computerization, and not using as much pirated goods and software.

But people and companies actually have to operate under the Philippines’s implementation of the rule of law, as administrated by the courts. The rule of law is the legal principle that laws should govern a nation. We would go a step further and contend that the law itself must be fair and practical, that the implementation of the law is fair and equal, and that those in government play by the same rules as the people are expected to do.

Our highest score in the eight broad categories comes in “Order and Security” (71 out of 100) and “Constraints on Government Powers,” at 61. But the worst is for “Civil Justice” (46) and “Criminal Justice,” at a terrible 38. What good is the rule of law if it cannot be found in implementation of civil and criminal justice?

We tend to blame policing as a major problem, but in answer to the question, “Do police generally act according to law?,” 98 percent said “yes”. However, when it came to “Civil Justice,” the score on “No Corruption” was only 48 and “No Discrimination” was 50.

On the “Criminal Justice” side, “Due Process of Law” received a score of 39, “No Discrimination” was at 26, and “No Improper Government Influence” was scored at 35.

Obviously, the most basic aspect of the rule of law—the ability to receive fair and impartial redress of wrongs—is a near disaster in the Philippines. We rank next to military-dictatorship Thailand and communist-dictatorship Vietnam on Civil Justice. For Criminal Justice, we are in the bottom third, between Zambia and Tanzania If corruption is the major problem, as the administration says, it is the Judiciary that scores the lowest at 42, while the Executive branch (52) and the Police/Military (57) are better ranked, but still in need of major improvement.

While it is good that we improved, we need to be realistic and admit we still have major problems adhering to the rule of law, and not the rule of men and women who are often corrupted.

Elections and the economy Manny B. Villar

THE Entrepreneur

M

y latest four-part series on the issue of mismatch in education and employment showed the huge opportunity for the Philippines to reduce the number of jobless Filipinos amid the bright prospects of the economy.

Much has been said by investors and experts, including international organizations, about the Philippines being poised to be a global leader in economic growth, with its large pool of skilled workers; the advantage of having a young population; and the attractive business climate brought about by low interest rates, increasing remittances, robust businessprocess outsourcing industry and the real-estate boom.

This optimistic outlook, however, was somehow dimmed by the 5.2-percent growth in the first quarter, which fell short of expectations. The government is sticking to its gross domestic product (GDP) growth target of 7 percent to 8 percent for the whole of 2015, but economists are now considering downward revisions of their earlier forecasts.

Prior to the release of the official

report on the economy for the first quarter of 2015, the International Monetary Fund (IMF) said the Philippine economy would grow by 6.7 percent.

After the first-quarter report came out, an IMF official said the agency’s full-year forecast would be reviewed, because the 5.2-percent GDP growth was below the multilateral agency’s estimate.

Economic Planning Secretary Arsenio M. Balisacan admitted that, while growth in the private sector remains robust, government spending declined, resulting in the slower growth of the economy.

Balisacan and the other economic managers have given assurances that the government would accelerate spending in the remaining months of the year to make up for the firstquarter shortfall and regain fast-

paced growth. They said GDP growth must average 7.5 percent in each of the three remaining quarters to achieve the government’s full-year target. With the economy’s performance in the first quarter, however, it is understandable for investors to be more watchful of the government’s actions from here on.

Despite the slow growth in the first quarter, I still believe that a 5percent to 6-percent GDP growth for 2015 is a given. But a higher growth rate will require more hard work in the remaining days of the incumbent administration.

Concerns may be raised about the possible impact of the 2016 elections on the economy, particularly with respect to the implementation of reforms to sustain the revival of domestic industries and promote an attractive environment for investments.

As I noted in previous columns, the private sector has been driving the growth of the economy, but the government must provide support not only through the grant of incentives but with capital spending, such as on infrastructure.

Prospective candidates have begun announcing or indicating their intention to run for president in May 2016. Having been part of Philippine politics for more than two decades and being a businessman before and

Are the central banks losing it?

John Mangun

OUTSIDE THE BOX

V

olatility, which is the rapid movement of price in any financial market, is the trader’s dream and the investor’s nightmare.

The trader lives on volatility, as it gives opportunities for short-term gains and prices moving up and down with wild abandonment. It is the investor’s nightmare, because volatility makes discerning trend changes very difficult.

While “investors” say that they are in the game for the long term and are not concerned with volatility, these same individuals are remarkably silent when the stock they own goes down 60 percent and takes years to recover back to break-even. Short-term volatility has a nasty habit of turning into a long-term decline.

We have never witnessed the extremes of volatility in the last four decades that we are seeing today. It is bad enough to have 2 percent and 3 percent (of 5 percent and 6 percent in markets like China) daily moves with stock prices. The same is true of commodities like crude oil, where the law of pricing being determined by actual supply and demand no longer exist or function.

Bond interest rates in Germany have also

gone up 700 percent in a month.

But when currency-exchange rates are moving with the same sort of volatility, you know that all these markets are no longer connected to economic realities but are merely a game of traders; investors be damned.

While there have been specific days of huge price movements in the markets—the 1992 Black Wednesday in currency markets and 1987 Black Monday in the global stock markets— the daily volatility we are having now is unprecedented outside of times of extreme events.

This has been caused by the major central banks attempting to control global economics through artificial interest rates and financial-market intervention, which is really manipulation.

While current central-bank intervention is obvious and even incorporated as government policy, the prototype for this behavior started in 1997. The 1997 Asian economic crisis, as with all systemic meltdowns, was a result of government manipulation.

Take Thailand, for example. At that time the real inflation-adjusted interest rate in Thailand for borrowing in Thai baht was 9 percent. By contrast, borrowing in US dollar-denominated debt cost only 5.5-percent interest.

The Thai government encouraged locals to borrow in dollars, as it needed to keep rates high as inflation was running at 7.5 percent. The exchange rate of the baht to the dollar was 25:1. The government told businesses not to worry, because it had all the factors, especially the exchange rate, under control.

Needless to say, it was not under control, as the Thai central bank did not have enough dollars to fund the repayment of the dollar-denominated debt at a 25:1 exchange rate. When the baht had to be devalued to 50:1, the amount of debt the companies were carrying effectively doubled, wiping out many completely.

Central bankers, with a belief in their infinite wisdom and infinite power, are in control. But the question is, for how long?

In Thailand the Thai central bank was in control of dollar-denominated debt and the exchange rate of the Thai baht until there weren’t, then the whole scheme of their manipulation fell apart, as did the Thai economy. The contagion spread throughout Asia.

We are seeing a similar replay of the 1997 Asian crisis right now in Europe, as the European Central Bank (ECB) and the International Monetary Fund struggle with Greece and its debt. The impression is that the whole affair is

after that period, I am in a good position to look at the kind of candidate who may ascend to the presidency next year.

From an investor’s perspective, I don’t see any radical change because of the democratic thinking of all the prospective candidates. I don’t expect a radical change on our view of international finance, or other global economic issues. I believe that whoever wins the presidency will continue to pursue what is good for the economy.

In addition, the transparency brought about by advances in communications technology, including social media, allows the public to more closely monitor the actions of government leaders, and to promptly express their satisfaction or dissatisfaction.

Also, the Philippines is no longer considered as a small and isolated player on the fringes of the global economy. We are watched by international rating agencies, global investors and multilateral institutions.

We are now a global player, and I believe the prospective candidates in the 2016 elections are aware of this, and would not make any move to derail economic growth.

For comments, e-mail mbv.secretariat@gmail.com or visit www. mannyvillar.com.ph.

like some sort of financial and debt tsunami that just happened. Nothing could be farther from the truth. This has been developing for years, with the problem-solving being kicked down the road repeatedly. Mario Draghi, president of the ECB, said in July 2012 that the ECB would do “whatever it takes” to protect the euro zone from collapse.

Except, the ECB actually did nothing, except put policies in place to prolong the debt problem.

Now, “Judgment Day” is coming, and the risk is that the house of cards will fall and the contagion will spread, revealing the fragility of the global financial system that the central banks have created. As I said, we saw the prequel in 1997.

The first effect is going to be a mad rush to the US dollar and, subsequently, into US assets, like the stock market, as actually happened as money rushed out of Asia in 1997. I believe this is all going to coincide with the loss of confidence with the government at the end of September, as I have spoken about so often.

The current financial-market volatility is the first indication that the central banks are beginning to lose control, and that is not good. Fasten your seat belt, put your tray tables up, and hang on.

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.

Opinion BusinessMirror

opinion@businessmirror.com.ph

A challenge to Samsung’s ruling family William Pesek

BLOOMBERG VIEW

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aul Elliott Singer’s recent investment in Samsung might seem innocent enough. But the powerful family that controls South Korea’s biggest company wouldn’t be wrong to see it as a declaration of “war,” as Heo Pil-seok of Midas International Asset Management puts it. Singer’s move may prove a nightmare for the Lee clan—and, precisely for that reason, it’s a tremendous opportunity for Korea’s economy.

Singer’s stake in Samsung C&T, the company’s construction subsidiary, may be small at 7.12 percent. But the investment is terribly ill-timed for Lee Jae-yong, who has been minding the family business while his father has been ailing. In recent weeks Lee has been trying to buy out shareholders in Samsung C&T through the family’s de facto holding company. Some investors cried foul, arguing the move would consolidate Lee’s power at their expense, as the subsidiary is worth more than the proposed $9.4-billion price.

It’s entirely possible Singer will be rebuffed in his attempt to acquire a role in Samsung C&T management. When a company generates revenue equivalent to more than a quarter of a country’s gross domestic product, its existing caretakers tend to get their way. But Singer’s pressure will make an impact nonetheless, by forcing the currently reigning Lee to reveal his true intentions.

Lee, at 46, claims to represent a new generation that’s less insular than Korea’s traditional business elite; he presents himself as an internationally minded visionary who spent time at Harvard Business School and earned facetime with Steve Jobs when rivals couldn’t.

But if Lee stamps out Singer’s voice, he will have to engage in management tactics more akin to his father’s—or grandfather’s— generation.

His push to acquire control over Samsung C&T, after all, leaves little room for compromise or transparency, since it’s primarily about solidifying his family’s power, not making Samsung more productive, innovative or profitable.

“These mergers are designed primarily to enhance the control of the family shareholders so that they can continue to dominate the management of their group,” says Hank Morris, Seoul-based adviser at Triple A Partners.

“And they’re not particularly concerned as to whether or not this places some burden on the performance of the merged company that might detract from its earnings potential and therefore hinder its share price.”

Lee’s encounter with Singer also spotlights an awkward question about Samsung that few in Korea have felt comfortable asking out loud: When exactly will Samsung’s widely anticipated changing of the guard take place? Family patriarch Lee Kun-hee has been out of sight since his May 2014 heart attack.

Everyone knows the younger Lee is next in line. So why has the company delayed making it official? The widely cited excuse that the Lee kids are delaying an estimated $6 billion inheritance tax bill doesn’t make sense—that bill will have to be paid whether it comes due tomorrow or three years from now.

The Korean media, however, has avoided posing any uncomfortable questions. And that complaisance has allowed the Lees to behave like a royal family, one that allows its heir apparent to quietly consolidate his control over a kingdom that technically isn’t his yet.

Needless to say, hardly anyone has been minding the best interests of shareholders amid this process.

Singer is likely to challenge any plans for an easy handover to the Lee family’s next generation. And he won’t go away quietly—he’s a battle-tested activist who has previously waged campaigns in Argentina (over government debt), Houston (Enron) and Hong Kong (Wing Hang Bank).

All this is great news for Korea’s 50 million people. As I’ve argued before, Korea needs to end the stranglehold of the chaebol, the country’s five largest family conglomerates, over the national economy.

Their political connections, monopolistic ways and ability to buy out any start-up that one day might pose a challenge undermine Korea’s job and wage growth and its ability to innovate.

If President Park Geun-hye is too busy, or too diffident, to challenge the chaebol, the job should be given to market agitators like Singer. Critics will say Singer is just looking to make a quick profit before abandoning South Korea for good. That may be true. But if Singer breaks up the Lee family’s grip over Samsung before he leaves, his stay would have still been worth it.

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uccessful television series engage viewers by studding a long-running storyline with discrete subplots that usually are resolved within an individual episode. These shows often falter when the underlying plotline gets lost in the subplots.

Until now, the Greek drama has met the criteria for a successful show: The theme was the country’s commendable quest to stay in the euro zone—and, critically, to do so while meeting the legitimate aspirations of its citizens and avoiding becoming a long-term ward of Europe. This narrative spoke to Western Europe’s regional integration project, which has played a central role in transforming a conflict-torn region into an admirable oasis of peaceful coexistence and cooperation. It is relevant to the stability and prosperity of the global economy. And it acts, both in reality and in perception, as a counter to multiple external threats to

Western democratic values.

The main protagonists of this central storyline are the tireless political leaders who, time and again, have managed to overcome distractions and successfully meet last-minute deadlines—thereby securing a new season for the Greek drama. They unite, usually at the 11th hour and, despite recurrent disappointments and unmet promises, skillfully manage to win over their skeptical and sometimes restive constituents, including easily rattled financial markets.

But this powerful and, until quite recently, predictable formula is running into serious trouble.

A7

Changing economic provisions alone is not enough Edgardo J. Angara

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he House has proposed a change in some key economic provisions of the Constitution. The main goal is to give the power to effect such change to congressional action rather than having to call a constitutional convention, or convene both Houses of Congress into a constitutional assembly for that purpose.

That, based on Philippine experience, rarely happens and if it did, only once in a generation. On top of such glacial pace, it is both a time-consuming and expensive process.

The proposed constitutional amendment is rather simple, just adding the phrase: “unless otherwise provided by law.”

Supporters of the proposal say this will be vital to the reform efforts toward accelerating

the country’s economic growth, fulfilling its international trade commitments and, ultimately, creating jobs.

The Philippine Institute for Development Studies said as much in a 2014 article, that such constitu-

Honesty is the best policy Ernesto M. Hilario

ABOUT TOWN

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mid the questions raised over her citizenship and residency, perhaps the best that Sen. Grace Poe can do at this point is to be forthright and honest and address the issues squarely.

The citizenship and residency issues are important because these are basic qualifications for the two highest executive positions.

Article VII of the 1987 Constitution says: “No person may be elected President unless he is a natural-born citizen of the Philippines, a registered voter, able to read and right, at least forty years of age on the day of the election, and a resident of the Philippines for at least ten years immediately preceding such election.”

The citizenship question should be settled in a conclusive manner, as this would prove her loyalty to the country and to the Filipino people.

If she stayed in the United States for a long time and acquired American citizenship, then she ought to be able to prove that she has renounced her American citizenship and reacquired Philippine citizenship.

Poe said last week that she renounced her American citizenship before she took office as chairman of the Movie and Television Ratings and Classification Board, sometime in October 2010. “All of this is properly documented. Not only did I renounce in a public office here in the Philippines, I also renounced my citizenship in the US Embassy,” she said.

Poe said the renunciation was done before a public officer in the Philippines, signed and notarized, and she also has the renunciation certificate issued by the State Department through the US Embassy. In fact, Poe said, she has to apply for a visa from

Subplots cloud Greek drama

By Mohamed A. El-Erian | Bloomberg

Tuesday, June 9, 2015

Specifically, it is threatened by five subplots that may be about to hijack the main storyline: 1. By the end of last week, critical working relationships had devolved into fierce public acrimony, fueling increasingly stinging partisan rhetoric.

Having entered the week urging the country’s creditors to be “realistic,” Greek Prime Minister Alexis Tsipras informed parliament last Friday that the proposals he had been presented by creditors were “absurd.” Further, he suggested that the offer his European partners had made in writing departed significantly from what they had earlier indicated to him orally. As a result, he said he hoped the proposal “was a bad negotiating trick and will be withdrawn.”

2. Seeking to strengthen its own negotiating stance, Greece decided last Thursday to postpone a €300-million payment to the International Monetary Fund (IMF), one of the world’s

the US Embassy before she can make a trip to the United States.

Poe’s pronouncements are one thing, the actual documents are another. But she is correct: the courts and no one else should settle the issue of her citizenship once and for all.

Calax all set to start construction

Metro Pacific Investments Corp.

(MPIC) has won the bidding for the 47-kilometer Cavite-Laguna Expressway (Calax) project with its offer of a premium payment of P27.3 billion to build this toll road and operate it for 30 years.

Calax will link the ManilaCavite Toll Expressway (Cavitex), which is also run by MPIC, and South Luzon Expressway (Slex), which is run by a consortium led

by San Miguel Corp. (SMC).

This premium, to be paid on a staggered basis, is on top of the project’s construction cost of P35.4 billion and over a fourth higher than the P22.2billion offer of San Miguel Holdings Corp. The tandem of Ayala Corp. and Aboitiz Equity Ventures Inc. was the front-runner in last year’s first auction with the highest offer of P11.66 billion, but President Aquino decided to scrap that bidding and ordered the holding of another one after it became publicly known that SMC, which had been disqualified on a technicality, actually submitted a far higher bid of P20.1 billion. President Aquino initially received flak for ordering another public bidding, but it now

very few “preferred creditors.” It buttressed its case by invoking an obscure clause—used only once before

by Zambia in the 1980s—that allows IMF members to “bundle” payments and delay them until the end of the month. In the process, Greece defiantly signaled that its willingness to remain a fully cooperative working member of the international community was in doubt, along with its financial capacity.

3. These Greek provocations led the usually polite European Union (EU) president, Jean-Claude Juncker, to deliver a rather blunt warning to Tsipras over the weekend. “Friendship, in order to maintain it, has to observe some minimal rules,” Juncker said on Sunday. This reaction is notable because the EU president has gone to enormous lengths to maintain a working relationship between Greece and its more demanding creditors—from the growing number of hard-line eurozone countries to two powerful insti-

tional change is an ideal recourse for the Philippines if it wants to benefit from the Asean Economic Community integration in 2015.

Over the weekend former Chief Justice Reynato S. Puno strongly batted for a sweeping constitutional change in political and social provisions. The main problem, he argues, is about the balance and distribution of power—between the national government and local government units, among the three branches of government, and even the powers of the constitutional commissions.

He cited, in particular, that much wider change in our political system is needed to avert a constitutional crisis that may arise if the proposed Bangsamoro basic law were approved as worded.

The Constitution prescribes a unitary form of government, hence does not allow for a parliamentary

system for a subpolitical unit.

Both proponents—the gradualists and the big-bang reformers—are right. The gradualists (economic provisions only) are overly sensitive to a suspicious public. On the other hand, Chief Justice Puno is correct.

In many ways, the causes of Philippine underdevelopment— characterized by a boom-bust cycle that has left many Filipinos hungry and jobless—are political. Philippine politics is more personalistic than programmatic, illustrated by a weak and fragmented political party system, lacking in vision.

Limiting constitutional change to economic provisions only may neither make a dent in the national reform agenda nor drastically improve the country’s fortune in a rapidly changing world.

turns out that P-Noy was right, after all, in scrapping last year’s auction, because with the rebidding, the government stands to get a premium (from MPIC) almost three times than the amount proposed by the Ayala-Aboitiz tandem in 2014.

“It’s worth the wait considering the discrepancy of the bids from the previous auction… The results say everything went perfectly all right for the government and for the country,” said Undersecretary Rafael Yabut, chairman of the Department of Public Works and Highways’s Bids and Awards Committee.

Scoffing at charges that the higher premium would lead to higher toll rates, Yabut said that contrary to this allegation, the Calax contract actually shields the common commuter from excessive toll rates that were earlier feared to be imposed due to the high premium requirement.

“The winner here is the Filipino people,” he said. “The initial toll rate was based on the study and is comparable to our existing expressways.

The base is P4.65 per kilometer, which is at par with other toll roads.”

The project is due for full completion by 2020.

Technical Committee, tasked by the NumCom to oversee the coin evaluation, is still in the process of evaluating the test results of sample coins using the three plating technologies, i.e., mono-ply, bi-ply and multi-ply.

“Second, it is true that the BSP has issued in the past 1-Piso coins using all three technologies. But it has not experienced any difficulty so far. There was no documented public complaint raised on the quality of coins in circulation since the BSP issued the nickel-plated coins in 2004.

Based on our laboratory tests, the presence of blemishes/tarnishing, if ever, in any of the coins using any of the mentioned plating technology is not related to the kind of technology used. Rather, this was a result of how the public uses the coins in circulation and the environment to which the coins have been exposed to (e.g., coins blemish more in a salty environment).

“Third, it is not true that the adoption of multi-ply plating technology will limit the number of participants in the coin tenders, result in higher costs for the BSP and may even lead to coin shortage. The BSP will open the bidding to whoever wishes to participate. If one can do mono- or bi- or multi-ply, it can easily shift to the chosen technology if it wishes to. It is also worth mentioning that this patented multi-ply coin technology could be used by other suppliers without fees or charges.

“Finally, once the coin design, technology to be used and other specifications of the NGC coins have been approved by the NunCom and finally approved by the President, then the Bids and Awards Committee will announce the relevant dates for public bidding. This is open to all qualified bidders/suppliers. The BSP’s process of selection will continue to be fair and conducted on a level playing field.”

BSP rebuttal on new coins issue

We wrote about the projected issuance of new coins by the Bangko Sentral ng Pilipinas (BSP) in this column on May 26. We received a rebuttal from the BSP and we are publishing pertinent portions of it (edited for brevity) in the interest of fair play.

“First, it is not true that the BSP has decided to issue all the new coins using multi-ply plating technology. The Numismatic Committee (NumCom), which was created by the BSP to implement the statutory provision on its mandate to issue currency, has neither completed its study nor recommended any specific plating technology for the New Generation Currency (NGC) coins. An independent and interdepartmental Ad-hoc

tutions, the European Central Bank and the IMF, which, under political pressure, have taken on significant financial and reputational exposure.

4. The Greek gambit was particularly embarrassing for the IMF, which had confidently stated that the country would make its scheduled payment.

Managing Director Christine Lagarde traveled to Berlin early in the week to hammer out a unified position with Greece’s other official creditors. In the process, she compromised on a few conditions that many in her organization believe are critical components of a durable solution to the crisis, including more debt relief from EU members and a more credible fiscal-reform and adjustment effort on the part of Greece.

5. Witnessing this dysfunction, ordinary Greek citizens scrambled to do more to protect their dwindling savings.

Partial indicators point to continued withdrawal of bank deposits, capital flight and a growing consensus that

E-mail: angara.ed@gmail.com.

E-mail: ernhil@yahoo.com.

capital controls will soon be required.

These five subplots could divert the main storyline away from the struggle to reconcile differing views of what Greece needs to do to remain in the euro zone, including the right mix between budgetary austerity, structural reforms, debt relief and emergency cash.

Facing an intensifying trust deficit and worsening coordination failures, the leading actors—the region’s political leaders—increasingly risk being relegated to secondary roles.

Meanwhile, the ensemble in this drama—citizens subjected to a protracted and suffocating economic and financial crisis—is increasingly taking on more of the decision-making role on the ground. The more this occurs, the greater the probability that a new and very different storyline will impose itself—one that focuses on the uncoordinated, disorderly and uncontrolled exit of Greece from the euro zone.

2nd Front Page BusinessMirror

A8 Tuesday, June 9, 2015

PHL unemployment rate to decline this year–Neda

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s job-generating manufacturing and tourism subsectors remain strong, the National Economic and Development Authority (Neda) has expressed confidence that the country’s unemployment rate this year will fall within its target range of 6.6 percent and 6.8 percent.

Neda Director General and Economic Planning Secretary Arsenio M. Balisacan made the statement on the sidelines of the Joint Congressional Oversight Committee on Public Expenditures hearing on Monday, a day before the Philippine Statistics Authority’s (PSA) release of the Labor Force Survey results for April.

“I am confident that the unemployment rate will decrease because that’s what is indicated at our Philippine Development Plan [PDP]. It has come down since 2010,” Balisacan said.

According to Balisacan, the unemployment rate averaged 6.8 percent in 2013, well within the 6.7-percent to 6.9-percent target of the government for the year.

The Neda chief said the agency is expecting the unemployment rate to decline further toward the end of the year, due to efforts of the government to increase available jobs.

“The economy is continuously growing, particularly manufacturing and tourism. With this kind

BALISACAN: “I am confident that the unemployment rate will decrease because that’s what is indicated at our Philippine Development Plan.

It has come down since 2010.”

of growth, we should be seeing improvement in the employment situation,” he said.

In March data from the PSA showed that the country’s unemployment rate dropped to 6.6 percent in January 2015, from 7.5 percent in January 2014.

The PSA’s Labor Force Survey data also showed that the country’s underemployment rate fell to 17.5 percent in January 2015, from 19.5 percent in the same period in 2014.

Under its economic blueprint dubbed as the PDP, the government is targeting an unemployment rate of between 6.6 percent and 6.8 percent in 2015. By 2016, the government wants this figure to go down to as much as 6.5 percent.

To hit this target, the PDP indicated that the government would target more investments in the industry and services sectors to create more jobs. Jovee Marie N. dela Cruz

www.businessmirror.com.ph

Govt’s debt repayment hit ₧4B in Q1–DOF

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By David Cagahastian

he government completed the first three months paying down debts rather than acquiring more of them, totaling P4 billion for the period, based on latest data. According to the Department of Finance, fiscal planners have endeavored in recent years to pare down the country’s debt load by settling some of the obligations as they mature.

Its gross foreign borrowings for the period amounted to P54.39 billion, while gross borrowings from domestic creditors totaled another P46.49 billion. The settlement of principal loans owed to foreign cred-

itors amounted to P31.76 billion, while P73.09 billion went to paying down principal loans obtained from domestic sources.

The result was a net repayment of P3.96 billion on the principal loan

of the government in the first three months of the year.

The bulk of the government’s foreign borrowings arose from the global bonds exchange program the government completed in January, which resulted in borrowings amounting to P34.65 billion. The balance of the foreign borrowing activities during the period arose from project loans and program loans from foreign development partners like the Asian Development Bank and the Japan International Cooperation Agency.

The net repayment of loans for the quarter was traced to large repayment in domestic loans and to lower-than-programmed sale of Treasury bills (T-bills) and Treasury bonds during the period, when the government had occasion to partially or wholly reject bids tendered

for the securities due to high interest rates demanded by investors.

Payments made by the government in January amounted to P21.85 billion; payments made in February amounted to P11.18 billion; while those made in March amounted to P40.06 billion.

Liabilities from Treasury bonds during the period amounted only to P50 billion, since the government rejected all offers for the long-term securities at the public auction in February.

For T-bills, the government made a net repayment as redemptions in January amounted to P17 billion.

The government rejected all offers for the purchase of T-bills in January. Net liabilities resulting from the public auction of T-bills amounted to only P12 billion in February and P1.6 billion in March.

Govt infrastructure plan to cost ₧1.92 trillion. . .

The airports include the proposed New Ninoy Aquino International Airport,which is estimated to cost P436.9 billion and the Clark airport worth P40 billion.

In terms of highways and expressways, there are a total of P201.94 billion worth of new medium and longterm projects. There are a total of 10 medium-term projects and five longterm road projects.

Medium-term road projects were estimated to cost P130.14 billion.

The largest of which is the P30.21 billion Cavite-Laguna Expressway, which has already been committed under Public-Private Partnership (PPP) Program. The other big-ticket new project to be undertaken in the medium term is the P24.85-billion-worth North Luzon Expressway (Nlex)-San Jose del Monte-Caba-natuan-San Jose section. The proposed road is 99.4 kilometers long.

In terms of new long-term road projects, the Neda estimated that these are worth P71.8 billion. The largest project is the Manila City– Quezon City (Quezon Avenue) R-7 Expressway, a 10.2-kilometer road worth P24.48 billion.

The other new long-term road projects include the P12.71-billion Cavitex Extension West to Rosario; P10.14-

billion Guiginto Bustos Expressway; P11.95-billion Nlex Extension West (Subic-San Fernando); and the P12.52billion South Luzon Expressway (Slex) Extension East (Calamba–Lucena).

Most of the highways and expressways to be undertaken in the medium and long term are upgrades of existing roads. There are 25 road projects to be upgraded in the medium and long term.

The largest road to be upgraded in the medium term is the P11.23billion Bay-Antipolo road with an estimated length of 86.4 km.

Neda data showed that in terms of long-term upgrades, the largest one is the Sctex-North, whose upgrade is estimated to cost P13.08 billion. The pipeline also includes P58.5 billion worth of proposed roadbased public transport; P5.25 billion worth of traffic-management projects; and at least P15 billion worth of port projects.

In February Neda Director General and Economic Planning Secretary Arsenio M. Balisacan said infrastructure projects will be a key driver of the

Continued from A1

country’s economic growth in the coming years.

Balisacan noted that the economy is targeted to grow by 7 percent to 8 percent in 2015 and 2016. The industry sector is projected to grow the fastest, while services is expected to remain robust during the period.

“We need to continue removing key infrastructure bottlenecks that have limited the potential of various sectors of the economy, especially in the areas of industry and agriculture,”Balisacan said.

However, in the first quarter of 2015, the economy only posted a growth of 5.2 percent, the slowest since the last quarter of 2011, when the country’s gross domestic product grew 3.8 percent.

With this low economic growth in the first quarter, the government estimates that the economy must post an average growth of 7.5 percent in the second to fourth quarters.

Data from the Philippine Statistics Authority showed that public construction contracted 24.6 percent in the first quarter this year, from a growth of 17.5 percent in the same period in 2014.

Senate passes Timta bill; House set to OK measure

By Jovee Marie N. dela Cruz

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he Senate passed on Monday a measure that is geared toward “promoting greater transparency and accountability” in the grant and administration of tax incentives to companies and individuals.

Voting 14-0, senators approved Senate Bill 2669, known as the Tax Incentives Management and Transparency Act (Timta) sponsored by Sen. Juan Edgardo Angara.

Angara, chairman of the Senate Committee on Ways and Means, said the proposed measure sought to provide a solution for the lack of empirical data on fiscal incentives, thus enabling the government to “evaluate and maximize revenue spent toward boosting the country’s economic growth.”

The bill was a consolidation of bills authored by the measure’s cosponsors, Senate President Franklin M. Drilon and Senate Pro Tempore Ralph G.Recto.

According to Drilon, the main purpose of the bill is to “make public and let the sun shine on t he t a x incent ives whic h companies enjoy.”

“There should be transparency on the taxes that we are not collecting and waiving in the form of incentives granted to the private sector, so that we will see whether, indeed, the public is best served by these incentives being granted to them,” he said.

Drilon said the Timta was one of the two key economic reform bills —along with the Fair Competition Act—that both houses of Congress have agreed to pass and submit for signing to President Aquino before lawmakers go on sine die adjournment on June 12.

Under the bill, the data and information related to the taxincentives claims of the registered business entities and the actual amount of tax and duty incentives granted, which are submitted by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to the Department of Finance (DOF), will be maintained by the DOF under a single database for monitoring and analysis of tax incentives granted.

“Aside from monitoring tax incentives granted by investment promotion agencies and other government agencies, the

database would help the government project tax incentives for future years and to conduct annual evaluation studies on the impact of tax incentives to the nation’s economic performance,” Angara said.

Fol low i ng t he com m it te e amendments on the bill introduced by Angara, the DOF will be mandated to submit to the Department of Budget and Management the following data: “[a] actual amount of tax incentives availed by registered business entities; [b] estimate claims of tax incentives immediately preceding the current year; [c] programmed tax incentives for the current year; and the [d] projected tax incentives for the following year.”

For transparency purposes, these data and information will be reflected by the DBM in the annual Budget of Expenditures and Sources of Financing, which shall be known as the Tax Incentives Information section, and will be submitted to the President and the heads of the committees on appropriations and finance in both houses of Congress.

See “Timta,” A2