BusinessMirror February 16, 2016

BMReports Motor vehicle-theft cases bare crafty players, tech-reliant cops B M M, Researcher  D E, Editor

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Second of three parts

ARM wind pressed against Adorino Gonzales’s black leather jacket as he rode his motorcycle home on Christmas Eve down an alley he uses as a shortcut to avoid the traffic on C  A Aguinaldo Highway.

MEDIA PARTNER OF THE YEAR

11,027

The total number of motor vehicles and motorcycles stolen as of end-2013.

Only 1,674 were recovered in 2014.

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UNITED NATIONS

2015 ENVIRONMENTAL MEDIA AWARD LEADERSHIP AWARD 2008

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A broader look at today’s business n

Tuesday, February 16, 2016 Vol. 11 No. 131

SEC not budging on disclosure of beneficial owners of shares PPP REMAINS KEY T INGREDIENT TO SPUR B VG C

INSIDE

BOLD COLORS AND CAT-FRIENDLY TOUCHES AT HOME

LIFE

D1

P.  |     | 7 DAYS A WEEK

HE Securities and Exchange Commission (SEC) is prepared to defend its position on the new rules requiring securities brokers and dealers of stocks to disclose the beneficial owners of shares in a move to ensure compliance with the 40-percent foreign-ownership restriction.

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…As they failed to establish that the IRR poses grave and irreparable injury to them, then the recently issued 2015 [SRC] IRR stands.”—Herbosa

ECONOMIC GROWTH

‘VAN GOGH’S BEDROOMS’ IN CHICAGO

The Entrepreneur Manny B. Villar

ART

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D4

TAYLOR SWIFT IN A TRICKY SPOT

AN Airbus A350 takes off at Toulouse-Blagnac International Airport in France. GYROSTAT WIKIMEDIA, CCBYSA 4.0

SHOW

D2

KOBE’S NIGHT

PAL TO INK $1.8B PURCHASE OF A350900S

F

SPORTS

C1

B R M

LAG carrier Philippine Airlines (PAL) is set to ink a $1.8-billion agreement for the purchase of nearly half-a-dozen A350-900 on Tuesday or Wednesday, in time for the opening of the Singapore Airshow on February 16.

“Ranking officials of PAL and Airbus are now in Singapore to sign the deal,” according to a highly reliable source, who asked not to be named as the deal is still being kept under wraps.

The source said an official announcement would soon follow after the signing of the agreement.

The source confirmed to the BM the news that appeared on the Internet, quoting an unnamed source, as true. “That is true,” the source said, “but PAL will officially make the announcement following the signing at the Singapore Airshow either on Tuesday or Wednesday.”

The value of the deal is reported to be around $1.8 billion.

PAL and its subsidiary PALExpress are increasing their fleet of about 60 Airbus jets, six Boeing aircraft and around nine Bombardier airplanes.

The legacy carrier flies to 41 destinations and is reported to be acquiring more aircraft, as it grows its

lucrative international network to cater to increased demand from the 10 million overseas Filipino workers (OFWs). Some 2 million OFWs are in the Middle East, and this market is also shared by the region’s airlines— Emirates, Saudia, Qatar, Etihad and Kuwait Airlines.

PAL has opened eight new routes last year, with the maiden flight to New York in March 2015, followed

by Jinjiang, Cairns, Auckland, Papua New Guinea, Kuwait and Jeddah. A ninth destination would be opened on March 15, with the maiden flight out of Cebu to Los Angeles.

Conclusion

ONSIDERING the projects that are currently being implemented, those that have been awarded, projects that are being prepared for bidding and others being lined up for rollout, we should have enough publicprivate partnership (PPP) projects for the next six years.

These are in addition to the regular infrastructure projects that are undertaken by the Department of Public Works and Highways, and other agencies under the annual budgets.

However, the private sector is understandably feeling some apprehension on what the next administration will do with the PPP Program.

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S “PAL,” A

Oil resumes drop as Iran starts loading, China imports fall LENNOX: “Iran is going to add headwinds to the market.”

O

IL resumed its decline below $30 a barrel, as Iran loaded its first cargo to Europe since international sanctions ended and Chinese crude imports dropped from a record.

West Texas Intermediate futures fell 0.5 percent in New York, after surging 12 percent on Friday, while Brent in London slid 0.2 percent.

A tanker for France’s Total SA was

PESO EXCHANGE RATES n US 47.5670

being loaded on Sunday on Kharg Island, while vessels chartered for Chinese and Spanish companies were due to arrive later the same day, an Iranian oil ministry official said. Chinese imports in January decreased almost 20 percent from the previous month, according to government data.

“Iran is going to add headwinds to the market,” David Lennox, an analyst at Fat Prophets in Sydney, said

by phone. “We still have 500 million barrels of US inventories, and shale producers are still pumping. Until there are significant cuts to output, the rally is not sustainable.”

Oil in New York is down 21 percent this year amid the outlook for increased Iranian exports, and BP Plc. predicts the market will remain “tough and choppy” in the first half

PRESIDENT Aquino views a scale model of the Caticlan Airport during the inauguration of the newly renovated facility in Malay, Aklan, on June 25, 2011.

The airport-development project is an example of a public-private partnership.

The development is spearheaded by TransAire Development Holdings Corp., a subsidiary of San Miguel Corp. Also in the photo are San Miguel Corp. President Ramon Ang (third from right) and Aklan Gov. Carlito Marquez (right).

JAY MORALES/MALACAÑANG PHOTO BUREAU

S “O,” A

n JAPAN 0.4199 n UK 68.9912 n HK 6.1065 n CHINA 7.2340 n SINGAPORE 34.0445 n AUSTRALIA 33.7402 n EU 53.5604 n SAUDI ARABIA 12.6883

Source: BSP (15 February 2016 )

BMReports BusinessMirror

A2 Tuesday, February 16, 2016

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Motor vehicle-theft cases bare crafty PAL… players, tech-reliant cops…

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C  A

A pair on an all-black motorbike followed him until Bacoor, Cavite.

Gonzales tried to shake off a growing fear of the two as paranoia. But he should have not second-guessed himself.

As he stopped on a red light, the motorcyle trailing him settled to his right and the passenger tried to pry Gonzales’s hands from the handlebar.

He took off. Shots rang and the last thing Gonzales remembered is turning his motorcyle to the right to avoid pedestrians before crashing on a bend on a road.

The next morning, he learned that the law firm he worked for could not help him as he himself could not provide any substantial information to begin an investigation into the incident. He returned to the scene and look for the cartridge but no evidence of the shooting could be found. There were also no witnesses.

“They work cleanly. But we’ve never received any cases against something like this before. Either this is a first-time incident or victims fail to file cases because court hearings could be costly,” Gonzales, a 28-year old paralegal, told the BUSINESSM IRROR.

Sagpi

WHAT happened to Gonzales is identified by the Philippine National Police-Highway Patrol Group (PNP-HPG) as Sagpi, or “Seized at Gunpoint Intimidation.” This is the second widely used modus operandi in the Philippines wherein motor vehicle thieves use stolen vehicles without any identification and target motorists traveling alone late at night and along roads that are either deserted or have minimal traffic.

A variety of Sagpi methods include some suspects posing as passengers in public-utility vehicles or as hitchhikers.

Other criminal groups surveil individuals living in wealthy subdivisions or villages.

The surveillance takes weeks before holding the victims at gunpoint as they step out of the car to open the gates.

“When you park in any establishment, they can either seize it after you park or when they see you heading toward your car,” PNP-HPG Chief Supt. Arnold D. Gunnacao explained, calling the method as “carjacking.” “Usually, they use guns to threaten and force the driver out and run off with the vehicle.”

Another scheme involves perpetrators intentionally bumping the victim’s vehicle and holding the victim at gunpoint as he steps out of the car to confront the suspect for the incident. It was noted that some victims are left injured or killed if they resist giving up their vehicle.

“We have cases wherein people died during a carjacking incident,” PNP-HPG Spokesman PSupt. Elizabeth Velazquez said. However, Velazquez said the PNPHPG does not have the exact numbers.

The number of cases involving death of victims are usually low, she said.

Motornapping

FROM December 2014 to October last year, PNP-HPG reports show there are more incidents of motornapping (MN) compared to carnapping (CN) on a weekly average.

The December 2013 to June 2014 period posted the highest record of stolen vehicles, 81 in the National Capital Region (NCR) alone: 39 CN and 42 MN. The rates dropped significantly in the months of January to June 2015 as the weekly rates plunged to 14 CN incidents and 37 MN incidents within a 24-week period.

Gunnacao said the higher MN rates were due to ability of criminals to pick keyholes of motorcycles. Likewise, lighter vehicles became easier for criminals to

stow away or take apart.

Corrective measures were also instituted in the reporting system of PNP as the records obtained from the Directorate for Investigation and Detective Management (DIDM) did not tally with HPG records. The discrepancy was due to the bypassing of reports that territorial police files to the DIDM without being validated.

Police officials are moving to harmonize the two agencies’ records.

Lambat Sibat

IN October last year authorities activated an Intelligence Task Force in Greater Metro Manila that later implemented a crime-prevention campaign dubbed “Oplan Lambat Sibat.”

“The Lambat Sibat is primarily focused on pursuing cases of carnapping and motornapping groups,” Velasquez explained. She said the “Lambat” (fishnet) element refers to profiling and catching suspects and “Sibat” (spear) “is when we file cases in court.”

The authorities tried to involve citizens who were asked to report if the car parts they bought were suspected to have been stolen.

Twelve teams were dispatched to hunt down specific criminal groups in the NCR. Their members tracked a total of 143 individuals suspected of being involved with these groups.

At present the PNP-HPG has accounted for 73 percent of the individuals. Of the given total, 53 are detained, 37 were granted bail and two cases were dismissed. Nine casualties were separately recorded during the operation.

The police attributed the considerable drop of weekly CN rates to Oplan Lambat Sibat. From the first semester of crime year 2014, CN rates fell 64 percent by 2015. The need for improvement in anti-MN operations were noted as rates only dropped to

11 percent in the same period.

In 2014 1,674 out of 11,027 stolen motor vehicles and motorcycles were recovered, pushing for a 15-percent recovery efficiency. Gunnacao is confident the recovery efficiency for 2015 will pose higher numbers because of the Lambat Sibat program.

A total of 1,112 suspected car and motorcycle thieves were arrested last year.

According to Gunnacao, 1,123 criminal cases were filed in different courts against these suspects under the Republic Act 6539, or the Anti-Carnapping Act of 2014.

In the same year, Sen. Grace Poe filed a motion for “illegal towing” to be tantamount to carnapping. Senate Resolution 708 called for a probe on the “carnapping of vehicles disguised as towing”to provide stricter regulations regarding towing.

As of 2014, the Metropolitan Manila Development Authority’s accredited towing companies ran up to 24.

For Gunnacao, lessening the number of vehicles parked along roads would also help deter such criminals from using the method in Poe’s motion.

Opportunity

FOR Gunnacao, the deployment of PNPHPG personnel along Edsa boosts the efforts against motor-vehicle theft.

Last September the PNP-HPG deployed 183 policemen on a rotating three-shift duty along the length of Edsa highway.

According to the PNP web site, these policemen were deployed in the busiest points of traffic namely Balintawak, TriNoma, Cubao, Santolan, Ortigas Avenue, Shaw Boulevard, Guadalupe, Ayala Avenue and Pasay Rotonda.

Gunnacao said the move provided the HPG the opportunity to conduct more checkpoints along the 54-kilometer-long avenue. To be concluded

C  

PAL has also opened seven new domestic routes.

According to Airbus’s web site, the A350-900 is the cornerstone member of the firm’s all-new A350 XWB, which is well-suited to meet airlines’ market requirements in medium-, long- and ultra-long-haul operations.

“As the first A350 XWB version to enter airline service, the A350900 has the same optimized cabin cross-section as the other A350

Oil…

XWB versions , which ensures maximum comfort for both passengers and crew while guaranteeing operators optimum revenue potential and operating efficiency. This jetliner accommodates 325 passengers in a three-class configuration, while offering unbeatable economics in high-density seating and true longhaul capability with a range of up to 7,600 nautical miles in its standard configuration.”

C  

as it contends with a surplus of 1 million barrels a day. Speculators’ long positions in WTI through February 9 rose to the highest since June, according to data from the US Commodity Futures Trading Commission.

WTI for March delivery slid as much as 49 cents to $28.95 a barrel on the New York Mercantile Exchange and was at $29.28 at 2:50 p.m. Hong Kong time. The contract gained $3.23 to close at $29.44 on Friday after dropping 19 percent the previous six sessions. Total volume traded was about 12 percent above the 100-day average. WTI prices lost 4.7 percent last week.

Brent for April settlement declined as much as 69 cents, or 2.1 percent, to $32.67 a barrel on the London-based ICE Futures Europe exchange. The contract climbed $3.30 to close at $33.36 on Friday.

The European benchmark crude was at a premium of $1.59 to WTI for April.

Iran, which was the second-

biggest producer in the Organization of Petroleum Exporting Countries before sanctions were intensified in 2012, is seeking to boost output by 1 million barrels a day and regain market share after penalties were lifted. Total, Spanish refiner Compania Espanola de Petroleos and Russia’s Lukoil PJSC all booked cargoes to sail from Kharg Island to European ports, according to shipping reports compiled by Bloomberg earlier this month.

In the US drillers idled rigs for an eighth week to the lowest level since January 2010, according to data from Baker Hughes Inc. The number of active rigs dropped by 28 to 439, the company said on its web site on Friday.

Speculators’ long position in WTI rose by 1,152 contracts to 302,384 futures and options, according to CFTC data. Shorts, or bets that prices will decline, slipped 2.1 percent. Net-longs increased 5 percent to a three-month high. Bloomberg News

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Tuesday, February 16, 2016 A3

San Miguel moves to shield earnings from weak peso

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AN Miguel Corp. (SMC), the Philippines’s largest company, may sell bonds to small investors and cut its dollar-denominated debt to tap the country’s growing wealth, and shield its earnings from a weaker peso.

The energy, infrastructure and beer company plans to borrow more in pesos and sell preferred shares to refinance existing dollar debt, and fund infrastructure projects, ranging from rail and power to ports and toll roads, company president Ramon Ang, 62, said in an interview on February 12.

Marketing bonds to mom-and-pop investors, rather than just to big institutional clients, mirrors a move by the Philippine government and companies, including Globe Telecom Inc. and Filinvest Land Inc. Retail investors typically buy bonds in smaller denominations, allowing SMC to tap the population’s growing prosperity and flush liquidity from call-centerrevenue and overseas remittances.

“The retail bond market is very liquid,” making it more attractive at times than bank loans

for fundraising or refinancing at SMC units, CFO Ferdinand Constantino said on Friday.

Moving to pesos

SMC aims to cut its dollar debts in half over the next two to three years, Constantino said. The company had $8.54 billion of dollar-denominated debt at end-September, nearly half its total liabilities of P855.8 billion ($18 billion), according to its third-quarter filing.

Reducing its dollar-debt exposure is “a necessary move for San Miguel,” Luis Limlingan, head of research at Regina Capital Development Corp., said by phone. “At a time when the dollar is rising, shifting most of its obligations to peso would help shield the company from foreign-exchange volatility.”

Profit at the century-old brewer, which is now heavily invested in oil and electricity, fell by more than half to P6.17 billion for the first nine months of the year, as a weaker peso quadrupled foreignexchange losses to P10.3 billion. Falling fuel prices cut sales at its oil ventures, paring revenue 15 percent to P504.5 billion. SMC’s pretax profit is eroded by more than P5 billion each time the local currency weakens by P1 against the dollar, according to the company’s latest financial statement.

The peso has depreciated 6.8 percent over the past 12 months. The currency is expected to weaken 2.6 percent to 48.3 percent to a dollar by the third quarter, from 47.06 percent at end-2015, according to the median estimate in a Bloomberg survey. It has slumped 0.9 percent this year, the worst performer among Southeast Asia’s most-traded currencies.

Preferred shares

TO reduce its exposure to exchange rates, SMC aims to sell as many as P80 billion worth of preferred shares in three years, with an initial batch of P30 billion to be sold this quarter. Last September the company raised P33.5 billion from a similar fundraising.

SMC rose 1.1 percent as of 10:58 a.m. in Manila trading on Monday. The shares have rallied 48 per-

₧5B

Drop in San Miguel’s pretax profit each time the local currency weakens by P1 against the dollar

cent this year, the biggest gainer in the Philippine Stock Exchange index, after falling 32 percent in 2015. The stock slumped 66 percent in the five years through 2015, while the nation’s benchmark equities index climbed 66 percent.

“A reason for the stock’s underperformance in previous years was that investors were nervous about its expansion outside of food and drinks, and the debt buildup that resulted from these new ventures,” said Jonathan Ravelas, market strategist at BDO Unibank Inc., . “San Miguel is showing it’s managing these risks,

and some investors are beginning to see value.”

Shares have reached overbought level and may prompt some investors to lock in gains, Limlingan said, citing technical indicators. SMC gets more than half its revenue from oil ventures Petron Corp. and Petron Malaysia Refining & Marketing Bhd. That’s followed by the food, beverage and packaging business and its other energy ventures, according to its latest financial results. The company received some offers for its beer business, but doesn’t plan to sell it, Ang said.

Petron, the Philippines’s largest oil company, may report record profit of between P16 billion and P18 billion this year, as lower oil prices spur demand for fuel and margins improve from a refinery upgrade, Ang said. Its shares rose 7.3 percent as of 10:40 a.m. on Monday.

Overseas target

FALLING valuations for assets in the oil and gas industries present opportunities, Ang said, and discussions are ongoing for a possible acquisition overseas. The target is worth about $2 billion now, he said, down from about $5 billion in equity investment terms in 2012, when Ang first began looking at it.

“San Miguel’s problem now is how to look for new investments,” Ang said. “We don’t

have a cash problem.”

Ang and Chairman Eduardo Cojuangco Jr. have helped SMC, which started as Southeast Asia’s first brewery in 1890, expand beyond food and drink to create a conglomerate in infrastructure, energy and telecommunications. Away from home, it has manufacturing operations in Hong Kong, China, Indonesia, Vietnam, Thailand and Malaysia.

Infrastructure boost

SMC is preparing to start a mobile-broadband service as early as the first half of the year, to challenge market leaders Philippine Long Distance Telephone Co. and Globe Telecom Inc. Talks with Telstra Corp. are ongoing, but SMC can proceed even without a partner, Ang said.

Standard Chartered Plc. and Bank of Commerce will provide financing to SMC’s $1.6-billion, 44-kilometer (27-mile) mass-railway project from Manila to Bulacan province, to be built by EEI Corp., Ang said. Revenue from infrastructure, which includes rails and toll roads, may reach P100 billion by 2020, and will account for 20 percent of the business, from below 10 percent now, he said. The company’s earnings before interest, taxes, depreciation and amortization could hit P200 billion by 2020 if its infrastructure projects are completed as scheduled, Ang said.

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Tuesday, February 16, 2016

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Govt to sell Marcos jewelry valued at $21M

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HE Philippine government has approved the public exhibit and auction of the jewelry collection of late dictator Ferdinand E. Marcos’s widow Imelda, which international experts have appraised to be now worth at least P1 billion ($21 million), officials said on Monday.

The hoard was seized when Marcos and his family fled to Hawaii in 1986, following a popular revolt that ended his two decades in power. They include a 25-carat, barrel-shaped diamond worth at least $5 million and a Cartier diamond tiara that is now many times more valuable than the previous estimate of $30,000 to $50,000.

Andrew de Castro of the Presidential Commission on Good Government, an agency tasked to recover the Marcoses’ il lgotten wealth, said they hope to hold the exhibit and auction before t he end of P resident Aquino’s term in June, when the terms for the current members of the commission also end.

T he gover nment ’s Pr ivat ization Council, headed by the Depar tment of Finance, l ast week approved the sale of the jewelr y. A portion of the collection seized at the presidential

$5M

Worth of a 25-carat, barrel-shaped diamond that will be included in the auction

palace when the Marcoses f led, however, is still being contested in court. Other pieces of jewelr y were seized in Hawaii and at Manila’s air port.

“The jewelry confiscated from the Marcoses remain a singular manifestation of the misguided priorities of the Marcos presidency during his reign,” Commission Chairman Richard Amurao said on Friday. AP

BFAR allots P1.6B for new fisheries management tool to hike fish haul B M G P

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HE Bureau of Fisheries and Aquatic Resources (BFAR) said on Monday it is investing P1.6 billion in a span of four years for the implementation of an integrated law enforcement, and fisheriesand resources-management system.

The Integrated Marine Environment System, known as the PHILO Project, is considered as the second phase, or continuation and upgrading, of the BFAR’S current vessel-monitoring system (VMS) and other monitoring tools.

BFAR Director Asis G. Perez said the project will incorporate all existing information systems and integrate vessel detection. Its key elements include the VMS, ocean numerical models, ocean resource information system, and the detection and identification of illegal, unreported and unregulated fishing.

Perez emphasized the system’s capacity to monitor fishing vessels in Philippine waters through satellite images and to collect data on the volume of fish in the sea. “Through this system, we can now know which part of our seas or ocean have the most fish. We can tell small fishermen where the large volume of fish are so they can increase their catch,” Perez said.

According to the agency, the PHILO Project will support the implementation of Republic Act 10654, particularly on food security; rational and sustainable development, management and conservation of fisheries and aquatic resources; and the upgrade and expansion of the implementation of nationwide monitoring, control and surveillance.

The BFAR said PHILO 1 is already available and is partially implemented, while PHILO 2 is already pipelined for bidding and is expected to be completed by June or July. Meanwhile, the BFAR also introduced all of its existing information technology-based systems for fisheries monitoring and management on Monday.

These systems are the VMS, which monitors and tracks legal fishing vessels equipped with onboard ter minal

transponders; the National Program for Municipal Fisherfolk Registration Program, which has recorded a total of 1.65 million local fisherfolk as of February 13; and the National Program for Municipal Fishing Vessels and Gears Registration, with a record of 151,531 fishing vessels as of February 15.

Also introduced were the Target Beneficiaries Socioeconomic Survey Form, a centralized database featuring comprehensive details on fisherfolk beneficiaries; the Philippine Fisheries Observers Program (FOP) E-log Sheet System, an electronic means for catch reporting; the Fishing Vessel Electronic L i ce n s i n g Sys te m , a n a u to m ate d electronic-licensing system of commercial fishing vessels, gears and other regulatory documents; and the Fisher y LawEnforcement Management Information System, which monitors fishery lawenforcement operations and keeps tracks of violations on fishery laws. According to the agency, all these systems are already working and are either fully or partially implemented in the country. The BFAR said it is still working on improving its FOP E-log Sheet System so it can gather accurate and real-time fish-catch information in two years.

“Except for the VMS, which was developed by the French Collecte Localisation Satellites and hosted by the BFAR, all systems being used by the agency for fisheries monitoring and management are developed and maintained by its Fisheries Information Management Center,” the BFAR added.

The BFAR said the center is also currently working on a fisheries market-information system. It is also coordinating with the US Embassy in the development of another informationtechnology system, called the Law Enforcement Management Information System, an interagency tool for the enforcement of environmental laws, w h i c h w i l l b e u s e d by t h e B FA R , D e p a r t m e n t o f E nv i r o n m e n t a n d Natural Resources and the National Bureau of Investigation.

PHILO PROJECT BFAR’S vessel-monitoring system and other monitoring tools meant to collect data on the volume of fish in the sea, among other uses

IN this November 24, 2015, file photo, a Bureau of Customs appraiser shows to the media a set of jewelry from Roumeliotes Collection, one of three sets of the Marcos jewelry collection, during appraisal at the central bank in Manila. AP

Connection of LRT Lines 1 and 6 will not happen in next 30 years B L S. M

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ONNECTING the Light Rail Transit (LRT) Lines 1 and 6 will have a direct impact on the contract signed by the government with its private partner for the extension of Asia’s oldest overhead railway system, hence, they will only be interoperable come the end of their concession periods.

Transportation Assistant Secretary Jaime Fortunato A. Caringal said the government plans to link the two lines after three decades, as connecting the two train systems while the government has an existing deal with Light Rail Manila Corp. (LRMC) will prove to be a breach of contract.

“Both projects are independent of each other. We expect them to be interoperable at the end of the concession periods of both projects,” he said. “We can’t connect the two as it will affect the concession agreement of LRT 1. We don’t want to affect the current obligations of the government under the agreement. It might affect the key performance indices of LRMC.” LR MC operates t he oldest overhead train line in Asia. It is also tasked to build an 11.7-kilometer extension that will be connected into the existing facility immediately south of the Baclaran Station and run in a generally southerly direction to Niog, Cavite. The company—led by Metro Pacific Investments Corp.

(MPIC) and Ayala Corp.—has the right to operate and maintain the facility for 32 years.

The proposed LRT 6, on the other hand, will be a 19-km railway line that will have seven stations, namely, Niog, Tirona, Imus, Daang Hari, Salitran, Congressional Avenue and Governor’s Drive. Under a 30-year concession agreement, the private partner will finance, design, construct, operate and maintain and procure the rolling stock for the said train system.

A prequalification conference was staged on Monday, and several groups—including Metro Pacific and Ayala—joined the exercise.

Metro Pacific Vice President Karim G. Garcia said during the conference that his group will likely team up with Ayala and Macquarie Infrastructure Holdings to bid for the project. His camp, he said, has “high interest” in the deal.

These companies are mainstays in the infrastructure sector, and may win the contract. Despite this possibility, however, the government, according to Caringal, will still not bend the contract.

Linking the two train lines can only be possible, he said, after their concession agreements.

“We can’t give them an option to directly link the two train systems; it’s going to be difficult because that might open the whole process to question, because we might have given them some special consideration if you allow them to change the specifications just because they won,” Caringal said. “It’s best to wait for the end of the concession period.”

Timothy John Batan, the project manager for LRT 6, said the submission of prequalification documents to bid for the deal has

been set for April 5. Bid submission is scheduled for August, and the government aims to award the deal by September, or about three months after the next administration takes over. Caringal noted that the next administration may still alter the indicative timetable, depending on how the project moves.

“It depends if there is push back in the market. I am confident the next administration will be reasonable regarding the comment and the concerns,” he said.

So far, Metro Pacific Light R a i l C o r p. a n d S a n M i g u e l Holdings Cor p. have purchased p r e q u a l i f i c at i o n d o c u m e nt s for the project. T he LRT Line 6 is the largest public-pr ivate par tnership (PPP) project that has been rol led out so far. But w ith only a few months left on their belts, the subordinates of President Aquino in the transpor t at ion depa r t ment m ay find it hard to award a project w ith such magnitude. Since the launch of the PPP Program in late 2010, the government has awarded the following projects to the private sector:  The P2.2-billion Daang HariSouth Luzon Expressway project

bagged by Ayala Corp. in 2011;  T he P16.42-bi l lion f irst phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc.,as well as the BF Corp.-Riverbanks Development Corp. consortium;  The P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013;  T he P3. 8 6 - bi l l ion PSI P Ph a s e I I cont r ac t , pa r t i a l ly awarded in 2013 to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium;  The P1.72-billion Automatic Fare Collection System contract awarded to the AF consortium of Ayala and MPIC in 2014;  The P17.5-billion Mactan C ebu I nt e r n at ion a l A i r p or t New Passenger Terminal project bagged in 2014 by Megawide and GMR Infrastructures Ltd.;  The P64.9-billion LRT Line 1 Cavite Extension deal, awarded in 2014 to LRMC Consortium of Ayala and Metro Pacific;  The P2.5-billion Integrated Transpor t System Sout hwest Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henr y Sy in 2015;  The P35.42-billion CaviteLaguna Expressway bagged by MPCALA Holdings Inc. of Metro Pacific in June 2015;  The P24-billion Bulacan Bulk Water Supply to the San Miguel Group in 2015; and  The P4-billion Integrated Transport System South Terminal to Ayala last November.

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

AseanTuesday BusinessMirror

news@businessmirror.com.ph

Jokowi gets traction after tumultuous first year

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HOPPERS clamber atop slippery fish stalls in a town in rural Indonesia to catch a glimpse of President Joko Widodo and jostle to kiss his hand, a sign the star power that swept him to office a year-andhalf ago is intact.

Until recently, the same couldn’t be said for his relations with the parliament, or even his own party.

While challenges remain, that now looks to be slowly changing as the former furniture exporter gets a better grip on national politics and the once-majority opposition coalition crumbles. Set against neighbors Malaysia and Thailand, Indonesia looks relatively calm.

“Our relationship with all political parties is good, there is no problem,” the president, better known as Jokowi, told Bloomberg Television after stopping off at the market and visiting a toll road project on Sumatra island last week. “Our relationship with the parliament is also very good.” He put his initial woes down to “communication” issues.

Finding momentum, alongside an improvement in macroeconomic indicators and positive polling numbers, is crucial. Jokowi needs political stability and smoother relations with parliament for the rest of his five-year term to reach his goal of lifting economic growth to 7 percent by 2019. He’s planning a massive increase in public spending on infrastructure and seeking greater foreign investment.

Jokowi took office in October 2014 after the most divisive election in the country’s history saw him beat former Suharto-era general Prabowo Subianto. Under Indonesia’s electoral system, Prabowo’s coalition of parties occupied most of the seats in the parliament, as well as its leadership roles, making it harder for Jokowi to govern effectively.

He also lacked experience on a national level and didn’t have wellestablished networks within the major political parties in order to get things done. Before becoming president he was governor of Jakarta and the mayor of Solo. Jokowi found that out the hard way with early missteps and public spats within his coalition that caused unease among investors.

He drew criticism for some policies: The country’s manpower ministry made it harder for foreign professionals to get work permits, while the trade ministry issued protectionist regulations. Still, patronage and money, rather than policy or ideology, drive Indonesian politics so shifting allegiance is possible. Gradually, most opposition parties have expressed support for Jokowi, most recently the Golkar party, giving government backers a majority in parliament.

‘Learnt fast’

“JOKOWI has good reason to be confident because he has been able to assemble broad political support,” said Djayadi Hanan, a politics professor at Paramadina University in Jakarta.

“He learnt fast. He has the backing of the parliament and the public. He should be optimistic of stability until at least mid 2018 when the elections begin approaching.”

The president has an approval rating of 67 percent, up from 41 percent in June 2015, according to

Our relationship with all political parties is good, there is no problem…Our relationship with the parliament is also very good.”

—Jokowi

Editor: Max V. de Leon • Tuesday, February 16, 2016 A5

US summit draws skepticism, hope among Asean members

a survey carried out last month by Indikator Politik. Thirty-seven percent said they would vote for him in 2019, with Prabowo in second place with 15 percent. Indikator Politik conducted personal interviews with 1,550 people.

Party tensions

MARKET sentiment has also improved. So far this year the rupiah is Asia’s third-best performer, driven by inflows into the bond market.

“You can see things are more constructive when it comes to policies now,” said Indra Mawira, an investment manager at Panin Asset Management, which has around $1 billion under management in the country. “Last year was horrible on economics and finance. Things are getting done at least. The political noise has reduced.”

Jokowi seems to have smoothed out ties with his own Indonesian Democratic Party of Struggle, or PDIP, led by former President Megawati Soekarnoputri. Tensions between them were exposed last year by a destabilizing dispute over Jokowi’s choice of police chief. Last August Jokowi appointed Pramono Anung, the PDI-P’s deputy secretary-general, as his cabinet secretary, a move that gave the party closer access to Jokowi and helped heal relations with Megawati, said Hanan. Still, parliament last year passed just three bills into law, the lowest total in at least the last five years, according to the Jakarta Post. The 560-seat body has prioritized the passage of 40 new laws or amendments this year.

A coming test of Jokowi’s ability to work with parliament will be whether he can push through a tax-amnesty law projected to bring in an extra 60 trillion rupiah of revenue this year.

It’s possible some parties may seek concessions from the president in return for supporting the measure.

Growth target

WHILE the economy has held up, there are headwinds as Jokowi targets growth of 5.3 percent this year, up from 4.79 percent last year. With little prospect of a pick up in commodity prices and the extent of the slowdown in the Chinese economy still unclear, the pace with which Jokowi can push through domestic reforms will be key to reaching the growth goal.

Also on the agenda is a revision of antiterrorism legislation to better deal with the threat posed by the emergence of the Islamic State.

Bloomberg News

IN this February 1 photo, Hungarian Prime Minister Viktor Orban (left) shakes hands with Indonesian President Joko Widodo during their meeting at Merdeka Palace in Jakarta, Indonesia. AP

IN this November 22, 2015, file photo, US President Barack Obama (left) shakes hands with Chinese Premier Li Keqiang (second from left), while Malaysian Prime Minister Najib Razak (third from left) and Laotian Prime Minister Thongsing Thammavong look on during the 10th East Asia Summit at the 27th Asean Summit in Kuala Lumpur, Malaysia. With the symbolic handshakes and unity photo-op, Obama’s high-profile summit with Southeast Asian leaders in California this week aims to step up pressure against China’s increasingly worrisome behavior in disputed waters. AP

I

T’S a point of pride for many people in Southeast Asia that their respective nations will be represented at a summit with President Barack Obama in the US this week.

Beyond that, expectations range from the skeptical to the stratospheric: nothing will change or perhaps Obama can nudge my country in a better direction.

The Southeast Asian officials who will gather at a resort oasis in the California desert on Monday and Tuesday lead nations that span the political spectrum from communist dictatorships in Vietnam and Lao PDR to an oil-rich sultanate in Brunei Darussalam and boisterous democracies in Indonesia and the Philippines.

Some of the countries, such as Myanmar, are among the poorest in Asia, while at the other extreme sits Singapore, one of the world’s wealthiest when measured by per capita GDP. Most, however, are in the middleincome ranks: not desperately poor but still far behind nations such as Australia, Japan and the US and eager for less official corruption, better public services and a higher standard of living. Here’s what people in Southeast Asia are saying about the summit. nnn

Hamdani Rasyid, a high-school math teacher in Jakarta, Indonesia, said the meeting is important for Southeast Asian countries at a time when they want a stronger economic and political relationship with the US

China is a strong country and it is bullying weaker countries. It is a good thing for us to have the US on our side.”

—Filipino salesman Parce to prevent being dominated by China. But he said there are also possible downsides to drawing closer to the US. “Asean should strengthen itself and find the right distance between China and the US,” Rasyid said. nnn

Sok Sambo, an accountant in Phnom Penh, Cambodia, said she hopes the country’s long-serving prime minister Hun Sen will face scrutiny over problems including poverty, restraints on freedom of expression and unfair elections.

“The leader never talks about the million people that live under the poverty line. Therefore, it is good

if Hun Sen dares to talk about this issue before the US leader and asks help from Obama,” she said. “I also want to hear the US president talking straight away about freedom of expression, the rights of people be respected and democracy to be implemented.” nnn

Romeo Parce, hardware salesman in Manila, Philippines, said the summit is positive for Southeast Asia economically and for the Philippines particularly, as it seeks support for its side in territorial spats with China. “The US is the strongest country in the world and if the US can help us, then that is good,” he said. “The issue today is our territorial dispute with China in the Spratly islands. That should be an issue discussed. China is a strong country and it is bullying weaker countries. It is a good thing for us to have the US on our side.” nnn

Anna Koh, a housewife in Kuala Lumpur, Malaysia, said the summit will make no difference to the problems facing the country, including a months-long financial scandal involving more than $700 million that was channeled into Prime Minister Najib Razak’s personal accounts. The attorney-general has decided not to prosecute Najib, saying most of the money was a legal donation from the Saudi royal family. Not many Malaysians are convinced. “We are embroiled in our own troubles. We are so worried about so many things.

I really don’t have any confidence that the US can make any difference to our country,” Koh said. nnn

A zrul K halib, a Malaysian

human-rights activist, said the summit is a symbolic meeting that’s unlikely to produce a tangible outcome, but the US can send a message to the scandal-plagued Malaysian government. “There is a big trust deficit in Malaysia, that’s scaring away investors. Trust is at an all-time low and it is affecting the economy,” he said.

“I don’t expect the US to do the dirty work as we have to clean up our own house. But I do hope the US will send a warning and give a wake-up call to our government that it mustn’t be business as usual, that trust and accountability must be restored.” nnn

Ahmad Faizin, a food-stall owner in Jakarta, said the most pressing issue the Indonesian government needs to address with Obama is radicalism and extremism. “We have seen new waves of militant groups emerge and become more of a threat in Indonesia,” Faizin said.

“The Indonesian police in particular is managing the threat very well, but my view is that terrorism is largely driven and strongly influenced by the situation in the Middle East.” Seven people died, including four militants, in a suicide and gun attack in central Jakarta in January. nnn

Svay Sophorn, a taxi driver in Phnom Penh, said Hun Sen, the Cambodian prime minister, should lure more American investment and business because Cambodia has become too close with China. He said the summit should be a wake-up call for some countries. “At the moment the influence of China in this region is too big. This summit is a good chance for the US to build closer relations and limit China’s power.” AP

Thai economy gets government spending boost while exports falter

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HAILAND’S economy grew more than analysts estimated in the fourth quarter as the military government’s series of stimulus measures started to bear fruit, countering a slowdown in exports.

GDP expanded 2.8 percent in the three months through December from a year earlier, the National Economic and Social Development Board said in Bangkok on Monday.

That compares with the 2.6-percent median estimate in a Bloomberg News survey of 22 analysts. GDP climbed 2.8 percent in 2015, more than the median forecast of 2.7 percent in a separate survey.

Prime Minister Prayuth ChanOcha has accelerated budget spending to help everyone from farmers to small businesses, in an effort to boost local demand amid falling exports. Bank of Thailand Governor

2.8%

Thailand’s GDP growth in Q4 2015

Veerathai Santiprabhob said last week monetary policy remains accommodative to assist the recovery.

The central bank on February 3 kept its policy interest rate unchanged for a sixth straight meeting.

“While fiscal spending should help prop up the economy in 2016, the pace of the recovery will be gradual, given the backdrop of continued political uncertainty and high

household debt,” Krystal Tan, a Singapore-based economist at Capital Economics, said in a note after the data. “Meanwhile, lackluster external demand and declining competitiveness will weigh on goods exports.”

The baht slipped 0.2 percent to 35.67 against the dollar as of 10:43 a.m. in Bangkok. The benchmark SET Index of stocks rose 0.8 percent after the report.

Forecast cut

THE National Economic and Social Development Board cut its 2016 GDP growth estimate to a range of 2.8 percent to 3.8 percent from 3 percent to 4 percent on weaker exports.

“The government has prepared measures earlier to counter the global slowdown by trying to support local spending,” Porametee Vimolsiri, secretary-general of the state

planning agency, said in a briefing in Bangkok on Monday. “Money from existing government stimulus and budget spending should be enough to boost the economy to the median of our current forecast at 3.3 percent.”

The government has planned 470 billion baht ($13 billion) of stimulus measures from September 2015 to January, Porametee said. This excludes 50 billion baht of additional spending from the central budget, for which the government will seek parliamentary approval soon, he said.

A weak baht will also support exporters’ revenue, while lower oil prices and tourism will aid the economic recovery, Porametee said. The state planning agency forecasts 32.5 million tourist arrivals this year, up 8.8 percent from last year. Tourism revenue is forecast to rise 9.8 percent to 1.65 trillion baht. Bloomberg News

The W

Business

A6 Tuesday, February 16, 2016 * Editor: Lyn Resurreccion

briefs

CHINA’S TRADE TUMBLED IN JANUARY

HONG KONG—China’s trade tumbled in January, in a possible fresh sign of the weakness confronting the world’s No. 2 economy.

Exports fell 11.2 percent to $177.5 billion, a sharp deterioration from the 1.4-percent decline reported for December, according to customs data released on Monday.

Imports shrank by 18.8 percent to $114.2 billion, a faster fall than the previous month’s 7.6-percent contraction, leaving a trade surplus of $63.3 billion.

The export figure reflected weaker demand for shipments of manufactured goods as the global recovery continues to stumble.

Economists, however, were reserving final analysis until figures for February are out because the timing of the Lunar New Year holiday distorts China’s economic data at the beginning of the year.

Companies in China shut down for the weeklong holiday, which falls at different times in January or February. In the run-up to the holiday, which this year occurred last week, factories stock up on raw materials and rush to fill orders.

“The lower-than-expected exports in January was likely caused by some front-loading of shipments into December,” ANZ Bank economists Liu Li-gang and Louis Lam wrote in a report. They said that December’s export figures were probably better than expected for the same reason.

China’s economy posted its slowest growth in a quarter century last year, expanding 6.9 percent. Officials expect growth this year of between 6.5 percent and 7 percent.

Growth is slowing as the country’s communist leaders try to wean the economy off export-led manufacturing and instead focus on more selfsustaining domestic consumption and services. AP

BOEING CONFIDENT HUGE PIPELINE OF ASIA ORDERS TO STAY INTACT

SINGAPORE—Boeing Co. is confident its large pipeline of orders from Southeast Asian airlines will stay intact as the region’s carriers are adapting to tough competition, a senior executive said on Monday.

Dinesh Keskar, senior vice president of Asia Pacific and India Sales, said Boeing forecasts demand for 3,750 new airplanes in Southeast Asia, valued at $550 billion over the next 20 years. Of the forecast demand, 76 percent will be for single-aisle aircraft such as the Boeing 737 and Airbus A320, according to Boeing.

Dinesh Keskar, senior vice president of Asia Pacific and India Sales, told a news conference ahead of the Singapore Airshow that the company was in a “good spot” with customers that include regional carriers such as Indonesia’s Lion Air. “In this highly competitive market, airlines are adding capacity and adapting with new business models, such as the growing number of low cost carriers,” he said. “There are significant, huge orders. The Boeing piece looks pretty simple and straightforward, and we have not seen any requests for deferrals.” AP

IN this February 8 file photo, Macedonian Army soldiers attach a razor wire to a fence on the border line with Greece, near the southern Macedonian town of Gevgelija. Six nations from Central and Eastern Europe meet on Monday in Prague to discuss plans for a new “line of defense” for Europe that involves a double fence along Greece’s northern border. AP/BORIS GRDANOSKI

Antimigrant force builds in Europe, hurting Merkel’s quest for integration

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ARSAW, Poland—So where should the next impenetrable razor-wire border fence in Europe be built?

Hungary’s right-wing Prime Minister Viktor Orban thinks he knows the best place—on Macedonia’s and Bulgaria’s borders with Greece—smack along the main immigration route from the Middle East to Western Europe. He says it’s necessary because “Greece can’t defend Europe from the south” against the large numbers of Muslim refugees pouring in, mainly from Syria and Iraq.

The plan is especially controversial because it effectively means eliminating Greece from t he Schengen zone, Europe’s 26 -nation passport-free travel region that is considered one of the European Union’s most cherished achievements.

Orban’s plan will feature prominently on Monday at a meeting in Prague of leaders from four nations in an informal gathering known as the Visegrad group: Hungary, Poland, the Czech Republic and Slovakia. The Visegrad group, formed 25 years ago to further the nations’ European integration, is marking that anniversary on Monday. Still,

it has only recently found a common purpose in its unified opposition to accepting any significant number of migrants.

This determination has emboldened the group, one of the new mini-blocs emerging lately in Europe due to the continent’s chaotic, inadequate response to its largest migration crisis since World War II. The Visegrad group is also becoming a force that threatens the plans of German Chancellor Angela Merkel, who wants to resett le newcomers across the continent while also slowing down the inf lux.

“The plan to build a new ‘European defense line’ along the border of Bulgaria and Macedonia with Greece is a major foreign policy initiative for the Visegrad Four and an attempt to reestablish itself as a notable political force within the EU,” said Vit Dostal, an analyst with the Association for International Affairs, a Prague-based think tank.

At Monday’s meeting, leaders from the four nations will be joined by Macedonian President

Gjorge Ivanov and Bu lgar ian Prime Minister Boiko Borisov so they can push for the reinforcements along Greece’s northern border. Macedonia began putting up a first fence last November, and is now constructing a second, parallel, fence.

“If it were up only to us Central Europeans, that region would have been closed off long ago,” Orban said at a news conference recently with Poland’s prime minister. “Not for the first time in history we see that Europe is defenseless from the south...that is where we must ensure the safety of the continent.”

Poland has indicated a willingness to send dozens of police to Macedonia to secure the border, something to be decided at Monday’s meeting. “If the EU is not active, the Visegrad Four have to be,” Slovak Prime Minister Robert Fico said recently. “We have to find effective ways of protecting the border.”

The leaders will try to hash out a unified position ahead of an important EU meeting on Thursday and Friday in Brussels that will take up both migration and Britain’s efforts to renegotiate a looser union with the EU. The Visegrad countries have also recently united against British attempts to limit the welfare rights of European workers, something that would affect the hundreds of thousands of their

citizens who now live and work in Britain. The antimigrant message resonates with the ex-communist EU member-states, countries that have benefited greatly from EU subsidies and freedom of movement for their own citizens but which now balk at requests to accept even small numbers of refugees.

The Visegrad nations maintain it is impossible to integrate Muslims into their societies, often describing them as security threats. So far the Poles, Czechs and Slovaks have only accepted small numbers, primarily Christians from Syria.

Many officials in the West are frustrated with what they see as xenophobia and hypocrisy, given that huge numbers of Poles, Hungarians and other Eastern Europeans have received refuge and economic opportunity in the West for decades.

Indeed there are plenty of signs that the countries are squandering a lot of the good will that they once enjoyed in the West for their sacrifices in throwing off communism and establishing democracies.

Orban’s ambitions for Europe got a big boost with the rise to power last year in Poland of the right-wing Law and Justice party, which is deeply antimigrant and sees greater regional cooperation as one of its foreign policy priorities. Polish Prime Minister Beata Szydlo’s government says it wants to do more to help Syrian

refugees at camps in Turkey and elsewhere while blocking their entry into Europe.

Although Orban is alienating Greek authorities, who are staggering under the sheer numbers of asylum-seekers crossing the sea from Turkey in smugglers’ boars, he insists he must act as a counterweight to Western leaders, whom he accuses of creating the crisis with their welcoming attitude to refugees.

“The very serious phenomenon endangering the security of everyday life which we call migration did not break into Western Europe violently,” he said. “The doors were opened. And what is more, in certain periods, they deliberately invited and even transported these people into Western Europe without control, filtering or security screening.”

Dariusz Kalan, an analyst at the Polish Institute of International Affairs, said he doesn’t believe that the Visegrad group on its own can destroy European unity but says Orban’s vision is winning adherents across the continent in far-right movements and even among mainstream political parties. “It’s hard to ignore Orban,” Kalan said. “People in Western Europe are starting to adopt the language of Orban.

None are equally tough and yet the language is still quite similar.” AP

MIT students turn their brainpower toward suicide prevention

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AMBRIDGE, Massachusetts—After seven suicides in two years, students at the Massachusetts Institute of Technology are looking for their own solutions to prevent more deaths.

The school unveiled a sweeping plan to bolster mental health last fall, adding staff psychologists and expanding counseling hours, among other measures. But students have added their own ingenuity in recent months, starting a wave of grassroots projects intended to defuse the stress of campus life before it leads to a crisis.

One group of students launched a texting hotline called Lean On Me

this month, letting students chat anonymously with trained student volunteers about anything that’s troubling them. Other students plan to install artificial light boxes on campus, meant to treat depression that can take hold during dreary months. By her count, sophomore Izzy Lloyd has handed out more than 4,000 especially made wristbands that say TMAYD. It’s short for “tell me about your day,” a message that aims to get students talking with one another.

Lloyd started the project last year after two of her freshman classmates took their own lives in the same week. “It’s suicide prevention

by community building,” said Lloyd, 19. “We’re showing people who may feel like they have nothing left that they have a world of people who do care about them.”

Other projects take a lighter tone, like the new MIT Puppy Lab that will bring therapy dogs to campus this semester. Campus officials recently awarded almost $50,000 in grants to support campus projects meant to improve mental health. They say the new work is a reflection of MIT’s culture, marked by a drive to solve problems. But st udents sa id they’re also meeting a demand for services that were missing on

the campus of 11,000 students.

“If we really solved the problem, we wouldn’t be running into this same cycle of mental illness that we’ve been seeing,” said Nikhil Buduma, who graduated last year and founded Lean On Me with two current students. The hotline, he added, lets students get help anonymously and avoid stigmas tied to mental illness. Across the country, experts say, college students are playing a bigger role in suicide prevention. And more often, schools welcome that kind of help.

“We have found time and again that students listen to students before they listen to anyone else,” said

Nance Roy, clinical director at the Jed Foundation, a nonprofit group based in New York that works to prevent suicide among college students. “These issues can no longer just fall to the counseling center.”

Roy said there’s no evidence that elite schools have disproportionately high suicide rates. But a national study suggests that MIT’s rate was above average last year.

The average suicide rate among college students was seven for every 100,000 students between 2004 and 2009, according to research from the University of Rochester. Three MIT students took their lives last year, translating to almost 27 for

every 100,000. There have been at least seven student suicides since 2014, according to reports from the school’s student newspaper.

Some students and alumni say that MIT’s culture pushes students to extremes, sometimes at the expense of a social life or emotional health. “It’s heroic and glorified to push oneself to the point of our boundaries, of our physical or bodily needs,” said Sahar HakimHashemi, a 2013 graduate who’s filming a documentary called Sleep is for the Strong, exploring mental health at MIT and ways to improve it. “It’s like it shows how hardcore and strong someone is.” AP

World

sMirror Unity government proposed for Libya in new peace effort

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ABAT, Morocco—Delegates from rival Libyan factions proposed a new unity government on Sunday for the chaotic country, after months of UN mediation and the rejection of a previous Cabinet proposal.

If approved by Libya’s internationally recognized parliament, a new unity government could eventually seek international military intervention against Islamic State (IS) extremists who have taken advantage of the country’s political vacuum since 2014. However, it’s unclear whether the new proposal will have greater chances at success than previous efforts.

The Unity Presidential Council announced the 18-member government late Sunday in the Moroccan city of Skhirat. The council was formed after negotiations in Morocco last year, with the aim of forming a unity government.

The proposal needs approval from the internationally recog nized parliament based in eastern Libya, which rejected an earlier proposed unity government last month. Sunday’s announcement did not mention needing approval from the rival Islamist-dominated parliament based in Tripoli in the west. The rival factions are each backed by different militias and tribes. The Unity Presidential Council, headed

by Fayez Sarraj, includes representatives from the rival parliaments

and governments, as well as delegates from other factions. UN Secretary-General Ban Ki-moon spoke with Sarraj last week, urging him to submit a new list soon.

UN Libya envoy Martin Kobler tweeted his congratulations, calling Sunday’s announcement “a unique peace opportunity that must not be missed.”

Ibrahim O. Dabbashi, Libya’s permanent envoy to the United Nations, tweeted that the proposed Cabinet includes people close to the Qaddafi regime, and that “will only give parliament a reason to reject it.”

Nato carried out air strikes in 2011 against Libyan leader Moammar Qaddafi’s military after a crackdown on Arab Spring opposition protests. But after Qaddafi was killed, swaths of the country sank into lawlessness, human trafficking and Islamic extremism.

Small teams of US military members have gone in and out of Libya in recent months as part of an effort to establish ties with local groups and leaders. Italy, France and Britain are also keeping a close eye on Libya’s unrest. IS extremists in Libya have claimed responsibility for deadly attacks and are trying to take control of Libya’s oil network.

There are concerns that continued chaos and violence could lead to a greater influx of refugees to an already overburdened Europe given Libya’s close proximity to Italian islands. AP

Haiti lawmakers elect Senate chief as provisional president

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ORT-AU-PRINCE, Haiti— Lawmakers chose the Senate chief on Sunday to lead a caretaker government that will fill the void left by the end of President Michel Martelly’s term last week and perhaps ease tensions that suspended elections and pushed deeply polarized Haiti into political crisis.

In the early hours of Sunday, Jocelerme Privert was elected as provisional president and sworn in after a plodding session by Haiti’s bicameral legislature. He was formally installed in the afternoon before a crowd of Haitian officials and foreign diplomats.

The veteran politician was one of three candidates vying to lead an interim government that is supposed to last only 120 days.

His new position will be that of a powerbroker who hopefully carries enough weight to quickly smooth political divisions that have left Haiti without a president chosen by voters or a completed Parliament due to the suspended elections.

Prime Minister Evans Paul remains in office for now, but Privert and lawmakers are expected to choose a No. 2 official in coming days.

During a speech to lawmakers hours before their final vote, Privert promised that if selected he would lead a caretaker administration that would “foster confidence within all sectors of society,” ensure stability and see that the electoral cycle is concluded “as soon as possible.”

He submitted his resignation letter from the Senate to start his new post. An initial vote by legislators

gave Privert just two votes more than Edgard Leblanc, a former Senate president who was being backed

by Martelly’s political faction. But after closed-door negotiations, Privert became interim president after 3 a.m. in a second round of voting that gave him a clear majority of hand-written votes from senators and lower house deputies.

Martelly, who was barred by Haiti’s constitution from seeking a consecutive term as president, left office a week ago without a new elected leader in place. A runoff presidential election was delayed for a second time last month amid violent opposition protests and deep public suspicions about possible vote-rigging in favor of his chosen successor. Less than 24 hours before Martelly was set to step down of February 7, top Haitian leaders managed to cobble together plans for a shortterm provisional government and a roadmap to hold the postponed presidential and legislative runoffs. As Senate chief, Privert was a central figure in those talks.

Privert faces an uphill battle in bringing the troubled country and its perennially feuding politicians together. In recent days, some demonstrators took to the capital’s streets to protest against his inclusion as a candidate for provisional president, while others marched to support him. The elevation to interim leader is a dramatic transformation for Privert, who was jailed for over two years at the start of Haiti’s last provisional government in 2004. AP

news@businessmirror.com.ph | Tuesday, February 16, 2016

A7

IN this November 6, 2006, file photo, President George W. Bush jokes with his brother Florida Gov. Jeb Bush in Pensacola, Florida., where the president was drumming up support for local Republican candidates. Jeb Bush is summoning his brother, former President George W. Bush, to campaign for him in South Carolina. It’s not without risks, but the Bush family has long, deep political ties in the state, and the former Florida governor has little choice if he wants to join his father and brother as Oval Office occupants. AP

George W. Bush: From South Carolina cameo to starring role

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REENVILLE, South Carolina— George W. Bush won a bruising South Carolina presidential primary on his way to the Oval Office, as his father did before him.

Now it’s his brother’s turn, and for Jeb Bush, the most consequential foreign-policy decisions of his brother’s time in office are suddenly front and center of his bid to keep alive his campaign for the 2016 Republican presidential nomination—thanks to businessman Donald Trump.

The former president had already announced plans to campaign for his younger brother on Monday in South Carolina, marking his most direct entry into the 2016 race to date. Then Trump, the Republican frontrunner, used the final debate before the state’s February 20 primary as an opportunity to excoriate George W. Bush ’s performance as commander in chief.

The former president, Trump sa id , ig nored “t he adv ice of his CIA” and “destabilized the Middle East” by invading Iraq on dubious claims that Saddam Hussein had weapons of mass destruction. “I want to tell you: they lied,” Trump said. “They said there were weapons of mass destruction, there were none. And

they knew there were none.”

Trump didn’t let up as Bush tried to defend his brother, dismissing his suggestion that George W. Bush built a “security apparatus to keep us safe” after the 9/11 attacks.

“The World Trade Center came down during your brother’s reign, remember that,” Trump said, adding: “That’s not keeping us safe.”

T he onslaught—which Jeb Bu sh c a l led Tr u mp enjoy i ng “ blood sport”—was the latest example of the billionaire businessman’s penchant for mocking his rival as a weak, privileged tool of the Republican Party establishment, special interests and well-heeled donors.

But the exchange also highlighted the former Florida governor’s embrace of his family name and history as he jockeys with Florida Sen. Marco Rubio and Ohio Gov. John Kasich to emerge from South Carolina as the clear challenger to Trump, who won the New Hampshire primary, and Texas Sen. Ted Cruz, the victor in Iowa’s caucuses.

The approach tacks away from Bush’s months-long insistence that

he’s running as “my own man,” but could be a perfect fit for South Carolina. Noted South Carolina Sen. Lindsey Graham, who ended his Republican presidential campaign in December and endorsed Jeb Bush in January, said: “The Bush name is golden in my state.”

George W. Bush retains wide appeal among Republicans, from evangelicals to chamber of commerce business leaders and retired members of the military.

All are prominent in South Carolina, with Bush campaign aide Brett Foster going so far as to say that George W. Bush is “the most popular Republican alive.”

The attack on George W. Bush carries risk for Trump, given the

to overlook. In 2000 George W. Bush beat John McCain in a nasty contest, marred by rumors that McCain had an illegitimate black child. McCain adopted a child from Bangladesh. Exit polls showed George W. Bush won nearly every demographic group.

George H.W. Bush, the 41st president, won twice here, beating Bob Dole in 1988 and demolishing Pat Buchanan in 1992.

Meanwhile, Hillary Clinton and Bernie Sanders were in Las Vegas on Sunday as they campaign ahead of next weekend’s Democratic caucuses in Nevada.

The former Secretary of State and the Vermont senator both spoke at Victory Missionary Baptist

The Bush name is golden in my state.” —Graham Bush family’s long social and political ties in South Carolina and the state’s hawkish national security bent, bolstered by more than a half-dozen military installations and a sizable population of veterans who choose to retire in the state. Trump has repeatedly defied predictions that his comments might threaten his perch atop the field. And as he jousted on Saturday with Trump, Jeb Bush said, “this is not about my family or his family.”

But the Bush family does have a history in the state that’s hard

Church in Las Vegas on Sunday.

Clinton was accompanied by Rep. John Lewis of Georgia, the civil rights icon. Lewis’s appearance was a continuation of Clinton’s efforts to woo black voters, which has intensified following her 22-point loss to Sanders in last week ’s New Hampshire primary.

Both Nevada and South Carolina, which follows the Western state on the Democratic primary calendar, are more racially diverse than leadoff Iowa and New Hampshire. AP

Northeast US wakes up to record cold for Valentine’s Day

N

PEOPLE are bundled up as they walk in cold weather on Sunday in the Queens borough of New York. Bitter temperatures and biting winds had much of the northeastern United States bundling up this weekend. AP

EW YOR K—For muc h of the northeast United States, Valentine’s Day was the coldest on record, with people bundling up for the not-sowarm embrace of teeth-chattering temperatures. From New York and Boston to Providence, Rhode Island and Hartford, Connecticut, temperatures on Sunday morning dipped to as low as minus 40 Fahrenheit minus 40˚C—on Mount Washington in New Hampshire.

The National Weather Service said the temperature in New York

City’s Central Park fell to minus 1, a record low for the date. The last time it was below zero in Central Park was in January 1994.

“I’m dumb enough to do this,” e xc l a imed John Ma le before starting a 12-mile (19-kilometer) park run on Sunday morning w ith t wo companions. “I just always come out and I just decided not to do anything differently”—except to wear a furry tiger hat with two tails over his normal headgear, in addition to four layers of clothing.

Officials said the cold weather was dangerous and could be fatal to those spending too much time outdoors—especially the homeless.

Outreach teams brought 105 people into New York shelters, and 288 showed up at hospitals and health facilities, including more than 20 who were brought in for care needed immediately, New York Mayor Bill de Blasio said at a news conference inside a lower Manhattan subway station. Boston reached minus 9˚F (minus 23˚C), breaking the record

set in 1934 of minus 3˚F (minus 18.5˚C). It reached minus-16˚F (minus 26.5˚C) in Worcester, Massachusetts, breaking the 1979 record of 11 below zero˚F (24˚ below zero˚C). Providence hit minus 9˚F (minus 23˚C) and Hartford minus 12˚F (minus 24.5˚C), also breaking records from 1979.

In Montpelier, Vermont, the overnight temperature hit minus 19˚F (minus 28.5˚C), tying a record set in 2003. And South Lincoln, Vermont, recorded 27 below zero˚F (33˚ below zero˚). AP

The World BusinessMirror

A8 Tuesday, February 16, 2016

Editor: Lyn Resurreccion • news@businessmirror.com.ph

Syrian opposition figure slams Russia for continued bombing

FORMER Prime Minister of Syria Riad Hijab gestures during his speech at the Security Conference in Munich, Germany, on February 14. AP

M

UNICH—A top Syrian opposition figure criticized Russia on Sunday for continuing with its bombing in Syria, insisting that people in the country need to see action rather than words.

The head of the Saudi-backed Syrian opposition’s High Negotiations Committee, former Prime Minister Riad Hijab, also stopped short of declaring a clear commitment to implement a planned temporary truce.

“You ask me if I accept a cease-fire or a cessation of hostilities. I ask you: Why is the onus on the opposition and whether it has preconditions for negotiations?” Hijab said. “I would like to see a single day of a cessation of hostilities in order to give a chance for real political movement.”

Diplomats from a group of countries that have interests in Syria’s

five-year civil war, including the US, Russia, Turkey, Saudi Arabia and Iran, agreed on Friday to seek a temporary “cessation of hostilities” within a week. They also agreed to “accelerate and expand” deliveries of humanitarian aid to besieged Syrian communities beginning this week.

It remains unclear whether those commitments can be made to stick on the ground and whether deep differences regarding the truce and which groups would be eligible for it—between the US and Russia among others—can be overcome.

The truce deal in Munich comes

as Syrian government forces, aided by a Russian bombing campaign, are trying to encircle rebels in Aleppo, the country’s largest city, and cut off their supply route to Turkey.

Hijab questioned whether the continued fighting by Russia was “a seriously acceptable position to the international community.”

“We have gotten used to conferences and words put into hope, but what we need is action—and the action that I see is that Russia is killing Syrian civilians,” Hijab told the Munich Security Conference, an annual gathering of foreign and security policy leaders.

Speaking before Hijab, senior Republican Sen. John McCain sharply criticized the temporary truce deal, arguing that Russia is engaging in “diplomacy in the service of military aggression.”

“Let’s be clear about what this agreement does: it permits the assault on Aleppo to continue for another week. It requires opposition groups to stop fighting, but it allows Russia to continue bombing terrorists—which it insists is everyone, even civilians,” said McCain, who chairs the Senate Armed Services Committee.

I would like to see a single day of a cessation of hostilities in order to give a chance for real political movement.”—Hijab McCain said that Russian President Vladimir Putin “is not interested in being our partner. He wants to shore up the Assad regime. He wants to re-establish Russia as a major power in the Middle East.”

On Saturday Russian Prime Minister Dmitry Medvedev told the Munich conference there was no evidence that Russia was bombing Syrian civilians.

Hijab complained that the Syrian people have “been shredded and abandoned by the international community” over the past five years and have not seen any “leadership, specifically by the United States of America.”

Israeli Defense Minister Moshe Yaalon underlined Hijab’s complaint, saying the whole region was “frustrated and furious at the lack of

Western support.”

“For war you need two parties, there is one very active...in the region today—Russia—and on the other side it is missing, whether it is the United States, or Europe,” he said.

The head of the six-nation Gulf Cooperation Council (GCC), which includes key rebel backers Saudi Arabia and Qatar, offered a more upbeat assessment of the situation. He said the agreement to cease hostilities is a “signal of hope” and was optimistic that it could be achieved.

“It is an opportunity for us to turn our undivided attention on Daesh, which is probably the single most challenging global threat,” said GCC Secretary General Abdullatif alZayani, using the Arabic acronym for the Islamic State group. AP

Justice Antonin Scalia’s body being flown back; died of natural causes

W

ASHINGTON—The body of US Supreme Court Justice Antonin Scalia was taken to an El Paso airport and was being flown to Virginia after it was determined he died of “natural causes” and an autopsy was not necessary.

Chris Lujan, a manager for Sunset Funeral Homes, said on Sunday that Scalia’s body was taken from the facility late Sunday afternoon. Scalia’s family didn’t think a private autopsy was necessary and requested his remains be flown home as soon as possible, he said.

Presidio County Judge Cinderela Guevara told the Associated Press on Sunday she consulted with Scalia’s personal physician and sheriff’s investigators, who said there were no signs of foul play, before concluding the 79-year-old had died of natural causes. He was found dead in his room at a West Texas resort ranch on Saturday morning. Guevara says the declara-

tion was made around 1:52 p.m. Saturday.

Terry Sharpe, assistant director for operations at El Paso International Airport, said a private plane carrying Scalia’s body departed around 8 p.m. EST (0200 GMT).

Scalia’s body was accompanied to the airport by US marshals, he said. He said he didn’t know details about where the plane was headed.

The US Marshals Service referred questions about the flight to Supreme Court officials, who did not immediately respond to inquiries.

Scalia’s weekend death was as much of a shock to those at the ranch, as it was to the rest of the nation The owner of the West Texas ranch where Scalia died says the justice seemed his usual self at dinner the night before he was found “in complete repose” in his room.

John Poindexter, the owner of Cibolo

Creek Ranch near Marfa, told reporters Scalia was part of a group of about 35 weekend guests. He arrived on Friday around noon. Poindexter says the group had dinner on Friday night and Scalia was his “usual, personable self.” Poindexter says Scalia retired around 9 p.m., saying he wanted a long night’s sleep.

A procession of about 20 law-enforcement officers arrived in the early hours on Sunday at an El Paso, Texas, funeral home, according to Lujan. He said they had traveled more than three hours from the West Texas resort ranch where the 79-year-old Scalia was found dead in his room on Saturday morning.

Kristina Mills, a history teacher at nearby Chapin High School, came to pay her respects and brought flowers.

“Recognizing his contribution to serving our country just compelled me to come,” she said. “I wanted to do yellow

roses because for him dying in Texas.

I didn’t want his family to have bad memories of Texas.”

In the nation’s capital, where flags flew at half-staff at the White House and Supreme Court, the political sniping soared, raising the prospect of a court short-handed for some time.

The Senate’s Republican leader, backed largely by his party’s White House candidates, essentially told a Democratic president in his final year in office not to bother asking lawmakers to confirm a nominee for the lifetime seat.

Scalia’s colleagues praised his brilliance and grieved his death. Justice Ruth Bader Ginsburg said she and Scalia “were best buddies” for more than 30 years. Justice Clarence Thomas said, “It is hard to imagine the court without my friend.”

President Barack Obama ordered flags to be flown at half-staff at the high court,

where Scalia served for three decades, and other federal buildings throughout the nation and US embassies and military installations throughout the world.

While flags were being lowered, the campaign-year political heat has risen over the vacancy on the nine-member court.

At issue is whether Obama, in his last year in office, should make a nomination and the Republican-led Senate should confirm that choice in an election year.

Obama pledges a nomination “in due time.” Senate Majority Leader Mitch McConnell, R-Kentucky, thinks it should wait for the next president.

The Republican resistance to an election-year confirmation got a thorough public airing on the Republican debate stage just hours after Scalia’s companions found him dead in his room at the Cibolo Creek Ranch near Marfa. AP

Multiple crises challenge EU before summit

L

ONDON—If the European Union (EU) were a patient, its survival would be seen as threatened by multiple organ failure.

That’s the view of many experts, as EU leaders prepare for a Brussels summit that starts on Thursday. Analysts believe the combined strain of challenges, including a refugee crisis; threats facing the euro currency and Britain’s plan to hold a referendum on whether to leave the EU may be unbearable for the 28-nation bloc.

Just 20 years ago the EU seemed to be growing in stature as it proudly offered freedom and democracy—along with lucrative subsidies, military alliances and billions in foreign investment—to newly freed former Soviet satellites.

Now, Nato warships are steaming toward the Aegean Sea in an escalated bid to impose order on the chaotic arrival of more than 1 million migrants, which has not abated despite the wintry weather in southern Europe.

Informal mini-blocs have formed within the European Union, with some countries banding together to challenge, or just ignore, the EU’s announced refugeeresettlement program. Temporary border controls have been introduced in key countries including Germany and France, threatening the cherished notion of freedom of movement across European borders.

Britain, a nuclear power with a seat at the UN Security Council, is demanding concessions before a referendum on whether the UK should simply abandon the EU, a prospect known as “Brexit.” And a slow-burning, extremely divisive budget crunch threatens the future of the euro single currency that has been a hallmark of European integration.

Ian Kearns, director of the European Leadership Network research group in London, said the EU is “undergoing an existential crisis” as a once shared sense of mission fades. Countries are pursuing their perceived national interests instead of seeking collective solutions, he said, and the notion of European solidarity is fading.

“It’s anybody’s guess now whether it will survive long term,” he said of the EU. “I think it’s that serious. It’s not just the migration crisis, or Brexit. The challenge is the lack of faith in the mainstream political class in Europe that is evident across the continent, manifested in the rise of populist movements. The migration crisis has simply highlighted it.”

The summit is one of a series of meetings that have tried, but mostly failed, to find an effective collective response to the chaotic arrival of so many people. Leaders will consider fairly minor changes to Britain’s status aimed at placating restive British voters ahead of a referendum, and assess how well—or poorly—earlier edicts on migration have been implemented.

The union has a knack for solving difficult situations by building consensus, and papering over cracks with layers of bureaucracy, but some warn the migrant situation is a more serious threat to continental unity.

Anand Menon, director of the UK in a Changing Europe group at King’s College London, says the European Union simply doesn’t have a practical method of tackling its myriad mounting problems.

The structures set up when the union was formed by six countries as the European Economic Community in 1958, and diluted with the addition of so many countries with differing perspectives, are simply too weak, he said, so nations either make unilateral decisions or forge small alliances with other countries in the bloc that share their concerns. “The European project is probably in trouble,” he said. “The EU is where it’s been for the last few years: Very big crises without the tools to address them. It’s a halfway house of integration.

You have a little bit of authority in these areas—the migrants, Greece—but the big decisions are made by the member-states.

It’s fragmented because the memberstates have completely different views.”

Europe needs to have one cogent immigration policy to cope with the influx of people from the Middle East, Africa and elsewhere but won’t be able to forge one because countries don’t view the problem the same way.

“The countries in the south, like Greece and Italy, are facing the brunt of it,” Menon said. “A few countries in the north—Germany and the Scandinavians—were generous at first and are now regretting it. The Brits are pretending it’s not happening. And the Visegrad countries [Hungary, Poland, the Czech Republic and Slovakia] say they are not interested in helping for reasons of culture and history.

They say they have no history of taking in migrants.” AP

news@businessmirror.com.ph

The World BusinessMirror

Editor: Lyn Resurreccion • Tuesday, February 16, 2016

A9

Olmert is first Israeli PM to go to prison

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ERUSALEM—Israel’s former Prime Minister Ehud Olmert started serving a 19-month prison sentence for bribery and obstruction of justice on Monday, becoming the first Israeli premier to be imprisoned and capping a years-long legal saga that forced him to resign in 2006 amid the last serious round of IsraeliPalestinian peace talks.

Olmert walked into the Maasiyahu prison in central Israel hours after he released a video making a last-minute plea to Israelis meant to salvage his legacy. In the video, he appealed to the nation to remember his peace-making efforts as leader and denied any wrongdoing in the bribery conviction against him.

The three-and-a-half-minute video, released by his office and filmed at his home a day earlier, shows a weary-looking Olmert. He said it is a “painful and strange” time for him and his family and that he is paying a “heavy” price, but also adding that he has accepted the sentence because “no man is above the law.”

“At this hour it is important for me to say again.... I reject outright all the corruption allegations against me,” Olmert said in the footage.

He said that in hindsight, the Israeli public might view the charges against him and the seven-year legal ordeal that enveloped him in a “balanced and critical way.”

“I hope that then many will recognize that during my term as prime minister, honest and promising attempts were made to create an opening for hope and a better

19

Months Olmert has to stay in jail for bribery and obstruction of justice

future of peace, happiness and wellbeing,” he said.

Olmert, 70, was convicted in March 2014 in a wide-ranging case that accused him of accepting bribes to promote a controversial real-estate project in Jerusalem. The charges pertained to a period when he was mayor of Jerusalem and trade minister, years before he became prime minister in 2006, a point he reiterated in his video statement on Monday.

He was initially sentenced to six years in the case, but Israel’s Supreme Court later upheld a lesser charge, reducing the sentence to 18 months. That was extended by a month earlier this year for pressuring a confidant not to testify in multiple legal cases against him.

Olmert is also awaiting a ruling in

FORMER Israeli Prime Minister Ehud Olmert enters prison to begin his sentence in the central Israeli town of Ramle, Israel, on Monday. Olmert started serving a 19-month prison sentence for bribery and obstruction of justice on Monday, becoming the first Israeli premier to be imprisoned and capping a years-long legal saga that forced him to resign in 2006 amid the last serious round of Israeli-Palestinian peace talks. AP/ARIEL SCHALIT

an appeal in a separate case, in which he was sentenced to eight months in prison for unlawfully accepting money from a US supporter.

Israel has sent other senior officials to prison, including Moshe Katsav, who held the mostly ceremonial post of the country’s president and who is now serving a seven-year prison term for rape.

But having the once popular Olmert behind bars was met with mixed emotions by many Israelis, who viewed the milestone as a proud moment for Israel’s robust justice

system but also a sorrowful one.

“When you look at a person like this, who is the salt of the earth, who is so talented, who is so charming, who is so capable, the fact that he is going to prison is something sad,” Dan Margalit, a columnist with the daily Israel Hayom and a former Olmert confidant, told Israeli Army Radio.

Olmert was forced to resign in early 2009 amid the corruption allegations, which undermined the last serious round of Israeli-Palestinian peace talks and cleared the way for

hard-liner Benjamin Netanyahu’s rise to power.

Olmert led his government to the Annapolis peace conference in November 2007—launching more than a year of ambitious, but ultimately unsuccessful, US-brokered peace talks with the Palestinians.

Olmert has said he made unprecedented concessions to the Palestinians during those talks—including a near-total withdrawal from the West Bank and an offer to place Jerusalem’s Old City under international control—and was close to

reaching an agreement at the time of his resignation.

Despite his lengthy career as a public servant, former prison officials said Olmert would be treated like any other inmate, despite being held in a special wing for security reasons.

Haim Glick, a former Israeli prison service official, told Israeli Channel 2 TV that Olmert would need to participate in roll call, be in his cell by 10 p.m. and have limited phone use.

“He will receive good treatment like the rest of the prisoners but not any better than them,” he said. AP

TATARS STEP UP RESISTANCE TO RUSSIAN RULE OVER CRIMEA Execs impose curfew in Indian

U

ROZHAYNE, Crimea—Elnara Asanova lives alone with her four small children because her husband, an ethnic Tatar, is in jail. Last April, when she was seven months’ pregnant, police grabbed him from the streets of their village because he had taken part in a Tatar protest against Russian annexation of Crimea.

She is not allowed to visit him, so she travels to every court hearing. Once she took 7-month-old Mustafa, so her husband could glimpse the child as he was led from the police van to the courtroom. The court has refused to release him on bail, describing him as a flight risk.

“They say he will run away. But where to?” said Elnara, a meek young woman.

She points to her children. “We live in the country. You can’t survive here without a husband.”

Two years after Russia seized Crimea from Ukraine, President Vladimir Putin touts the move as a historic achievement, looking on with a satisfied smile from countless billboards across the peninsula.

However, overwhelming opposition from the Muslim Tatar ethnic minority puts a crack in this picture of unanimous support, as evidenced in interviews with more than two dozen Tatars across Crimea. And the resistance appears to be growing.

Many described the intimidation of community leaders, the closure of Tatar language classes and a general atmosphere of mistrust of Tatar residents. The Associated Press conducted some interviews at other people’s homes because of worries about police surveillance.

The majority of the people in Crimea are ethnic Russian and support Russia’s annexation. The nearly 300,000 Crimean Tatars, who make up less than 15 percent of the population, are Muslims, although largely secular.

Community leaders say repression has left young people fuming, risking their radicalization along the lines of the restive North Caucasus, a patchwork of predominantly Muslim republics in southern Russia.

IN this photo taken on January 25, a full moon rises above apartment blocks in Simferopol, Crimea. The entire peninsula was plunged into Medieval darkness when Tatar activists, led by Lenur Islyamov, blew up the electricity pylons last November, leaving 2 million Crimean without heating and forcing some people to cook food in the yard on the campfire. AP/SERGEI GRITS Tatar activists are already fighting back.

Before Russia annexed Crimea, Lenur Islyamov was a businessman with family and assets in Moscow. Last fall, he traded his business suits for military-style clothing to lead a resistance movement that imposed a blockade on the peninsula in retaliation for Russia’s persecution of the Tatars.

Last September the activists began stopping goods from crossing into Crimea.

Three months later, the Ukrainian government stepped in and banned all trade.

“Everyone, including Ukraine, left us with no other choice,” said Islyamov, whose assets in Moscow and Crimea have been seized. “Most of us don’t want to go to war—we want to make sandwiches, take our children to school, go shopping—but we’ve been forced to do this.”

Deliberate power outages have also become widespread. Last November unknown attackers blew up electricity pylons in Ukraine and tied Crimean Tatar flags to them, leaving 2 million people without heating. No one claimed responsibility for the explosions, but Tatar activists were suspected.

Tatars in Crimea cheered the power

cuts, saying the blackout returned the world’s attention to the situation in Crimea. Muzafar Fukala, community leader of the village of Voinka, said losing light was “nothing” compared to the hardships Tatars had survived in the past.

“I’m prepared to live in a complete blackout until this scum leaves,” he said, referring to supporters of the annexation.

To avoid police harassment, Fukala spoke to the AP in the home of friends in a neighboring village.

Both the border blockade and the power outages have put a big hole in the Kremlin budget at a time when plummeting oil prices have left Moscow with little to spare on shoring up its newest acquisition.

Russia had to fly in supplies and thousands of generators, and speed up the construction of underwater power lines.

Islyamov is also working to set up a “battalion” of 500 Tatar activists to be stationed just a few miles from the border.

Tatar activists in military fatigues, some of them carrying automatic weapons, now stand in the winter cold by the roadside of their tent camp. They used to search cars crossing into Crimea and back until blockade leaders announced that Ukrainian border guards and customs

officials would now do so instead.

Last November Chechen intelligence officers called on Islyamov’s 17-year-old son in Moscow, where he studied, and threatened him unless he denounced his father publicly. Several hours later, Islyamov arranged for his son to leave Russia.

Officials in Crimea in charge of ethnic minorities did not respond to the AP’s requests seeking interviews and comment.

Officials in the Crimean government have accused Tatar leaders who opposed the annexation of betraying the interests of the Tatars and being agents of Ukraine.

Under Russian law, people can be punished for calling for the return of Crimea to Ukraine.

The Crimean Tatars have a long history of repression. In May 1944 all 200,000 Tatars, who then made up a third of Crimea’s population, were put on trains and shipped to Central Asia in the space of three days. Thousands died during the grueling journey or starved to death in the barren steppes upon arrival.

Unlike other peoples deported during World War II by Soviet dictator Joseph Stalin, the Tatars were not allowed to return to their native land until the 1980s.

A visit to a Tatar home today opens a window to a parallel world far from the throngs of flag-waving Russians who gave Putin a Hollywood star reception on the streets of the Black Sea port of Sevastopol on his visit last summer. Tatars here all watch ATR, a Crimean Tatar channel owned by Islyamov, which was banished from Crimea and now broadcasts from exile in mainland Ukraine.

They talk of “better times” and a future “victory,” alluding to the eventual return of Crimea to Ukraine.

In almost equal measure, Crimean Tatars feel betrayed by Kiev, after Ukrainian troops stationed on the peninsula surrendered to Russian forces in February 2014 without putting up any resistance.

Later on, most of these troops took Russian citizenship and joined the Russian armed forces. AP

Kashmir after 2 killed in protests

KASHMIRI villagers attend the funeral of Shaista Hamid in Lilhar south of Srinagar, Indian-controlled Kashmir on February 14. A teenage boy and a young woman were killed during an anti-India protest that followed the killing of a local rebel in a gun battle with government forces in the disputed Himalayan region of Kashmir on Sunday, officials and eyewitnesses said. Anti-India sentiment runs deep in Kashmir, where rebel groups have fought since 1989 for either independence or a merger with neighboring Pakistan. AP/MUKHTAR KHAN

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RINAGAR, India—Authorities imposed a curfew in some parts of Indian-controlled Kashmir on Monday amid a general strike called by separatist groups to protest the killing of a teenage boy and a young woman during a protest against Indian rule.

As a result of the strike and curfew, shops, businesses and some government offices were closed and public transport stayed off the roads in the disputed Himalayan region. Train services were suspended and university examinations were postponed.

Hundreds of troops patrolled the old part of Srinagar, the region's main city, and some other towns, warning residents to stay indoors.

The teenage boy and the young woman, both students, were killed on Sunday during an anti-India protest that followed the killing of a local rebel in a gunbattle with government forces in

southern Kakpora village.

Police and paramilitary soldiers on Monday laid razor wire and erected additional road checkpoints in the region in anticipation of protests called by separatists fighting against Indian rule.

Protests by stone-throwing youths and clashes with government forces have become routine during the fighting between rebels and troops in Kashmir, where anti-India sentiment runs deep among the mostly Muslim population.

Rebel groups have fought since 1989 for either independence or a merger with neighboring Pakistan.

India and Pakistan each administer a portion of Kashmir. Both claim the region in its entirety.

Since 1989, an armed uprising and an ensuing Indian crackdown in the region have killed an estimated 68,000 people. AP

A10 Tuesday, February 16, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Is the Philippines a democracy?

I

T is often said that the election of a person to the highest office in the land is nothing more than a beauty contest, where substance takes a back seat to form.

Electing the next president of the Philippines, like crowning Miss Universe, might not be such a bad idea. At least, in a genuine beauty pageant, we are able to see many aspects of the contestants in direct comparison to the others. The upcoming candidate debates are supposed to highlight the differences in specific ideas for voters to make accurate comparisons.

However, does anyone really have confidence that will occur? It is unlikely that many of those who will question the candidates will be willing to ask the hard follow-up questions. Challenging a person that might be the future president would probably not be a good career move. Further, it is not part of our national character to be directly confrontational, especially in public.

But—for better or worse—the election process is the core of a participatory democracy. As Winston Churchill said, “Democracy is the worst form of government, except for all those other forms that have been tried from time to time.”

On the other hand, we also have been reminded that “A democracy is two wolves and a lamb voting on what to have for lunch.” This whole idea of “majority rule” can easily become “mob rule,” where the many can oppress the few. We see that sentiment with some disparaging the uneducated lower economic-class voter who constantly makes the “wrong” decision.

However, Aristotle wrote, “In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme.” If Vox populi, vox Dei—“The voice of the people is the voice of God”—then God must be speaking through the vote of the “ignorant” poor person.

The democratic electoral system, though, has potentially two problems that may be inherent and difficult to change: the process and the people.

Journalist author H. L. Mencken wrote: “Democracy is the art and science of running the circus from the monkey cage” to describe those elected to office. Granted there is always dissatisfaction with whoever wins, can we honestly say that the best person for the job is ever elected to public office?

Most disturbing and a concern that is an integral part of the discussion about the coming national election comes from playwright Tom Stoppard, who wrote, “It’s not the voting that makes a democracy; it is the counting.”

Democracy may or may not be the best form of government that has been tried. But if we are going to continue on this path of allowing voters to elect the leaders, then we must ensure that the counting is completely honest and totally accurate. If not, then we are wasting our time and fooling ourselves about being a democratic nation.

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PPP remains key ingredient to spur economic growth Manny B. Villar

THE ENTREPRENEUR Continued from A1

O

NE of the biggest questions in the minds of people will be on what will happen to the decisions of the past administration with regard to the PPP projects. As one executive from a participant in the PPP projects said, the first 100 days of the new administration would be important because it would show the direction that the government, under a new president, will take.

With only six years in office, a chief executive would naturally want to make a mark during his or her term, which would serve as the president’s legacy. That’s human nature.

In the United States President Ronald Reagan initiated an economic policy that became known as “Reaganomics.” Its key components, which were promoted during the 1980s, were lower taxes, less government regulations, cutting government spending and tightening money supply to keep inflation low.

More recently, Japan adopted an economic plan called “Abenomics,” after Prime Minister Shinzo Abe. The key component of the plan is a stimulus program financed by the government to help Japanese industries recover from the slowdown caused by weak export markets.

In the Philippines former President Carlos P. Garcia’s “Filipino First Policy” sought to curtail the dominance of foreign businessmen in the local economy. Under this

I don’t expect the new administration to totally shelve the PPP Program, which has been recognized by global entities like the World Bank and has been attracting foreign investors. Just like the Conditional Cash-Transfer Program, which was initiated by President Gloria Macapagal-Arroyo and expanded by President Aquino, the appropriate stance for the PPP Program is to continue and improve on it by accelerating its implementation or expanding its coverage.

policy, Garcia adopted an austerity program, which calls for a strict government spending, particularly for imported goods.

It is human nature for a new president to seek credit for completing more infrastructure projects, for instance, than the previous administration. The tendency is to question the projects approved by the previous administration, which may bring us back to square one. This is dangerous, but the tendency is to come up

Stock market investing as a religion John Mangun

OUTSIDE THE BOX

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EARLY everyone who invests in the stock market has a system of investing in the same way that those who buy lottery tickets do. Success or failure is not really as important as being able to justify why the system is being followed.

“My mind is made up; don’t confuse me with facts.”

It does not matter what techniques that you use to put your money at risk in the stock market.

You can always find dozens of experts who will support your strategy.

Likewise—although no one likes to admit to this—you can also easily find dozens of experts who will say your strategy is completely wrong.

The important thing to always —always—remember is to consider the source.

Stockbrokers and fund managers will recommend buying when stock prices are going higher, when stock prices are going sideways, and when stock prices are going down. That

strategy allows the investors to take advantage of upside momentum; to buy in preparation for a breakout to the upside; and to buy issues at lower prices before they go higher.

You can always tell when an investor or stock-market analyst uses corporate value and economic conditions to guide his or her investment strategy. When the stock price is down 10 percent, it is “just a dip.”

“The fundamentals haven’t changed” with a price drop of 20 percent. It is the stock market’s fault when the price has gone down 30 percent, as it is “deeply oversold.” Obviously, when a stock price is down 40 percent from a recent or historic high, “it is a generational buying opportunity.”

When it comes to investing in the stock market, it is probably best to be an “atheist.”

I often communicate to my subscribers a negative technical-analysis comment about a particular issue while, at the same time, recommending the shares as a buying opportunity. Following a strict system of beliefs is good when following a religion. In the stock market, it might lead you to financial hell.

Technical analysis, or the study of price movement, has no greater validity than fundamental analysis.

And I am a technical analyst, and have been for 40 years.

Most of all, the chart-pattern analysis is nonsense to the extent that the vast majority of the time the predictive value of these chart patterns is about the same as a random chance. Further, those patterns that do have high forecasting probability occur so infrequently as to have small

with a new vision that will establish a good reputation for the new administration.

However, I don’t expect the new administration to totally shelve the PPP Program, which has been recognized by global entities like the World Bank and has been attracting foreign investors.

Just like the Conditional CashTransfer Program, which was initiated by former President Gloria Macapagal-Arroyo and expanded

by President Aquino, the appropriate stance for the PPP Program is to continue and improve on it by accelerating its implementation or expanding its coverage.

That’s a direction that investors will welcome, and which will boost the economy.

The new administration, if it really wants to establish a name for itself, can pursue other projects under the PPP Program.

Right now, the nation can just hope and pray that the next president will not put credit over priority projects, even if this goes against human nature.

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

impact on the average investor.

Here is the key to the deal.

Remember the saying, “Every problem looks like a nail when the only tool you have is a hammer.” But a hammer is still a useful tool unless you come to worship the hammer as the only viable tool in the box.

Stock price will reflect corporate value. Stock-price movement does follow patterns. However, neither fundamental analysis nor technical analysis is a faith-based religion, and that is the mistake most investors make.

When it comes to investing in the stock market, it is probably best to be an “atheist.” I will often communicate to my subscribers a negative technical-analysis comment about a particular issue while, at the same time, recommending the shares as a buying opportunity.

Following a strict system of beliefs is good when following a religion. In the stock market, it might lead you to financial hell.

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.com.ph

Opinion

Breach of faith

A country- and coast-development oriented leader

BusinessMirror

Cecilio T. Arillo

DATABASE Part Two

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HE bitter irony came on November 25, 1999, at the announcement in Malacañang of the formal creation of the Commission of the 1986 Edsa Revolution, when former President Corazon C. Aquino warned then-President Joseph E. Estrada, by quoting American author George Santayana’s famous line, that: “Those who do not remember the past are condemned to repeat it.”

She described the quotation as “wise words not just for our children and grandchildren, but for all of us to heed.”

Did she not remember the famous quotation when she was the president for six years and four months?

Obviously, she did not.

Ferdinand E. Marcos in 1972 declared martial law, abolished the Constitution, allegedly jailed his opponents, may have violated human rights and allegedly plundered the treasury and the economy.

President Cory Aquino in 1986 also ruled by decree, abolished the 1973 Constitution, violated human rights and betrayed the Filipino people.

By comparison, Mrs. Aquino may have been worse than Marcos, judging by her own record.

Before the end of 1991, the Aquino government strangely assumed all the P194-billion liabilities incurred by the Marcos’s administration in 20 years and unjustly dumped them on the shoulders of the Filipino.

It meant that at that time, instead of benefiting from the Marcos’s alleged purloined wealth, each of the 76 million Filipinos in 1986 ended up with an additional liability of P2,421, using the P194 billion as a multiplying variable.

Not only that. By her action or inaction, she may have violated her own Constitution because 419 accounts of the total assumed liabilities—valued at P147 billion, including 130 fraudulent loans granted on the behest of Marcos and his cronies—were the object of massive recovery operations and prosecutions by her own creation, the Presidential Commission on Good Government.

The Constitution, in Section 24, Article VI, provides that: “All appropriation, revenue or tariff bills, bills authorizing increase of public debt, bills of local application and private bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments.”

Marcos spent P448 billion in 20 years; Aquino disbursed almost P1.6 trillion in six years and four months.

Aquino built a complex of overpasses in Metro Manila; Marcos constructed a network of roads and bridges.

Marcos spent P448 billion in 20 years; Aquino disbursed almost P1.6 trillion in six years and four months. Aquino built a complex of overpasses in Metro Manila; Marcos constructed a network of roads and bridges. It took a revolution to unravel Marcos; there was none in the case of Mrs. Aquino, but her regime left behind a paper trail that revealed its own incompetence, perfidy and misdeeds.

It took a revolution to unravel Marcos; there was none in the case of Mrs. Aquino, but her regime left behind a paper trail that revealed its own incompetence, perfidy and misdeeds.

Marcos resorted to propaganda hyperbole to obscure his failure; Aquino did the same with her yellow banners and confetti.

For instance, the popular impression that recalcitrant politicians and rebel soldiers were to blame for her government’s failure and economic debacle, as repeatedly dished out by her paid local and international propagandists, deserve a thorough review, because neither the rebel soldiers nor the politicians were in charge of the country during her term. President Aquino and her bumbling Cabinet were.

They controlled the currency, contracted debts, shaped the budget and decided the economic priorities with her hotshot technocrats.

It is easy to understand that President Aquino and her Cabinet were, indeed, responsible if the people would only take a second look at her national budget and flawed economic policies.

For instance, from 1986 to 1991, the Aquino government budget amounted to more than P1.6 trillion.

Of this enormous amount, Congress (the Senate and the House) got a total appropriation of only P4.4 billion.

In particular, the legislature had a total appropriation of only P1.230 billion—P900 million for the House and P330 million for the Senate.

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

Sen. Edgardo J. Angara

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INCE time immemorial, the Philippines has been largely an agrarian and seafaring nation. Up to this modern era, some 30 percent of our working population still make a living off of the land and sea—yet, farmers and fisherfolk still remain among the poorest sectors. And, ironically, 30 percent of the world’s merchant fleet is manned by Filipino seamen, who send billions of pesos to help fuel the country’s growth.

The country’s robust economy may have outpaced many of its peers in recent years. But much of our stellar economic growth has occurred far and away from our countryside and coastlines.

Former National Economic and Development Authority Director General Cielito Habito noted that while the country’s industrial and services sectors grew around 4 per-

BLOOMBERG VIEW

I

MAGINE if Ford remotely disabled the engine on your new F-150 pickup because you chose to have the door locks fixed at a corner garage rather than a dealership. Sound absurd? Not if you’re Apple.

Since 2014, the world’s most profitable smartphone company has—without warning—permanently disabled some iPhones that had their home buttons replaced by repair shops in the course of fixing a shattered screen. Phones that underwent the same repair at Apple service centers, meanwhile, have continued working just fine.

The message seems clear, at least to the multibillion-dollar indepen-

dent repair industry: Your phone is yours until you decide to get it fixed.

Then it’s Apple’s.

Apple says it was merely trying to keep the iPhones “secure,” and that “Error 53”—the code that pops up after the company bricks a unit—is meant to ensure that nobody messes with the phone’s fingerprint sensor.

Whatever the intent, the company now finds itself amid a PR and legal debacle that could upend the

the World Bank gave the Philippines “below average” grade, rating us particularly subpar in terms of farmers’ access to markets, plant protection, transportation of produce and the time and cost of registering and importing fertilizers.

This points up to a deeper problem—a general lack of attention and loving care for the countryside. For years, elite politicians and marketobsessed businesses have seen to it that a lion’s share of state resources are invested in roads and rails, power and connectivity, and schools and hospitals situated in our major urban centers.

Such lopsided allocation of scarce resources sparked massive country-to-city migrations, emptying farms, fishponds and fishing ports of food producers. Many have already warned that our farmers and fisherfolk are fast becoming a “dying breed,” as more of their children leave their parents’ trade and flock to the cities.

The consequences are sadly

Untangling traffic, one tollway at a time

national government makes good on its promise to deliver the required right-of-way.

S eg me nt 10 w i l l con ne c t MacArthur Highway in Valenzuela City to the Circumferential Road 3 (C-3) in Caloocan City. Hence, this alignment will decongest Metro Manila by providing access to Nlex without passing through Edsa or the Balintawak Toll Plaza, and will improve the movement of cargo from the Port of Manila by providing a direct link between Nlex and Radial Road 10 in the port area.

Once completed, Segment 10 will stretch Nlex from its current length of 95 km to 105 km.

As for SCTex, TMC is embarking on a P1.5-billion rehabilitation and expansion over the next three years on this 94-km expressway. The improvements include pavement works, construction of new facilities and communication systems, including additional rest rooms and roadside emergency- call boxes and closed-circuit

(by making them), the episode illustrated how paranoid Apple can be about anyone tinkering with its products: Among other things, it refuses to release repair manuals for its devices, maintains a stranglehold on spare parts, won’t share information on diagnostic equipment and software, and isn’t even accepting applications for new authorized service providers. All of which suggests that it wants to curtail consumer choice in favor of its own services.

That’s not a unique business model, of course. For decades, auto manufacturers and dealerships have done their best to undermine independent garages by limiting access to original parts and diagnostic tools.

The results, in both industries, are predictable: Repair shops have to turn away willing customers, and consumers lose the benefits of free competition, notably lower prices and more convenience.

In 2000, under threat of socalled “right to repair” legislation, US automakers, dealerships and service shops formed a union to share information on repairing today’s high-tech cars. Because membership was voluntary, however, there was little incentive to cough up any useful data, especially in a prompt manner.

Massachusetts took matters a step further in 2012 when it required manufacturers to provide the same information and tools to repair shops as they do to dealerships.

Fearful that other states would follow, the automakers agreed to make the law a binding standard by 2018.

That means authorized service departments will soon have to compete on price—handing a big win to consumers.

So far, there’s nothing similar for the electronics business. But Apple’s aggressive approach to controlling information may change that. Sev-

eral states are taking a hard look at legislation that would require tech companies to share repair data and sell parts at fair prices.

Needless to say, Apple could fix this problem on its own. It could offer tools and spare parts to independent shops at market rates, form an association with its competitors to encourage information sharing, and even push for a certification standard to ensure quality repairs.

Doing so would not be in Apple’s DNA, of course. But it might ease public outrage, mollify newly attentive regulators, appease customers at a time when sales are slipping and —not incidentally—forestall a wave of class-action lawsuits.

More to the point, if Apple’s executives don’t address the problem, lawmakers will do so for them. And that would be no bad thing: Apple’s service centers might suffer for it, but its customers—and their phones —will only benefit.

W

ITH the horrible traffic congestion in Metro Manila, motorists and commuters alike welcome the convenience and seamless travel offered by modern toll roads. Two-thirds of the country’s 320 kilometers of toll roads are operated by Metro Pacific Tollways Corp. (MPTC) through three of its subsidiaries: Manila North Tollways Corp. (MNTC), Tollways Management Corp. (TMC) and the Cavitex Infrastructure Corp. (CIC). MNTC operates the North Luzon Expressway (Nlex); TMC, the Subic-Clark-Tarlac Expressway (SCTex) and the Cavite Expressway (Cavitex).

Apple says it was merely trying to keep the iPhones “secure,” and that “Error 53”—the code that pops up after the company bricks a unit—is meant to ensure that nobody messes with the phone’s fingerprint sensor. Whatever the intent, the company now finds itself amid a PR and legal debacle that could upend the lucrative business of servicing gadgets worldwide.

lucrative business of servicing gadgets worldwide.

The root of that debacle dates to 2009, when Apple started using proprietary screws in MacBooks, and later iPhones, to keep DIY types from making simple fixes or souping up their systems.

Although repair shops eventually obtained compatible screwdrivers

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

rail track, and is seen to cut travel time from Slex to Nlex from the current 2 hours to just 15 minutes to 20 minutes.

All these toll road expansion and improvement projects could have been fast-tracked if the government, particularly the Toll Regulatory Board (TRB), approved the toll fee increases due MNTC, TMC and CIC in keeping with the periodicrate adjustments provided for in their respective concession deals or O&M contracts with the national government.

Nlex has pending applications for toll-fee adjustments for the years 2013 and 2015, while SCTex has similarly pending petitions for 2012, 2013, 2014 and 2016.

Cavitex has a pending application since 2011.

With rate adjustments in limbo for several years now despite the continuing capital expenditures spending of MNTC, TMC and CIC, the MPIC Group’s foregone revenues have already reached a combined P2.4 billion.

The tollway operators are asking the TRB to consider their tolladjustment applications since these periodic-rate adjustments are provided for in their concession agreements with the national government. Moreover, they have to recoup their multibillion-peso investments and generate enough cash for road expansion, improvement and maintenance projects.

Apart from their legal right to rate adjustments, the toll road operators also cite the fact that no less than the Supreme Court has ruled that they are entitled to a reasonable rate of return through periodic adjustments.

ABOUT TOWN

Ongoing is the P650-million integration of Nlex and SCTex. This project is already 85 percent finished and should be completed this March in time for heavy traffic during the Holy Week.

This tollway will cut travel time by 35minutes to 40 minutes as the number of toll plazas will be reduced

by March from four to only two from Balintawak to the Subic freeport and from five to two from Balintawak to Tarlac. Motorists can start using the same contactless, shortrange communication EasyTrip tags or magnetic cards on both tollroads to quickly pay their toll fees.

The full integration of Nlex and SCTex in two months’ time will mean that motorists will no longer experience the traffic gridlock in both expressways in the 2014 Christmas.

Meanwhile, MNTC has already finished 17 percent of the civil works at the P9-billion Nlex-Harbor Link Segment 10. This should be completed by next year once the

wrought with inequities and paradoxes. Sparkling business centers are surrounded by slums. Supermarkets are abundant in luxurious goods and all manner of imported food, while many go hungry. City dwellers enjoy some measure of connectivity and mobility, as many far-flung communities remain inaccessible, blighted, unwired and unconnected. Once beautiful beaches are now littered with flotsam and jetsam, while rivers, lakes and waterfalls are polluted.

Reversing these trends demands electing leaders who will work hard to unlock the hidden potential of our hinterlands and entice people to go back to their hometowns.

Ateneo economists, in their recent EagleWatch briefing, said the country needs an “agri-minded” president. Actually, the country needs a leader who has both the inclination and will to develop our coasts and countryside.

television cameras.

Over at the south, the CIC is slated to start work this first quarter on the P9-billion Circumferential Road 5 (C-5) Link, an eight-kilometer road connecting Cavitex and the C-5. This MPTC subsidiary has allotted P2 billion this year and the P7 billion balance in 2017 and 2018 on the C-5 Link, which will expand the 14-km Cavitex by connecting it to the South Luzon Expressway (Slex) flyover.

In the first quarter of 2017, MNTC plans to start the construction of the P6.5-billion Nlex Segment 8, a 7.85-km expressway that will link C-5 Road and Commonwealth Avenue to Nlex. It will be completed by 2019. Nlex Segment 8 will include a roundabout connection at Congressional Avenue plus interchanges in Mindanao and Regalado Avenues, all in Quezon City.

Meanwhile, Nlex Segment 8.2 is a 7.5-kilometer expressway from Segment 8.1 at Mindanao Avenue to Republic Avenue and Luzon Avenue all the way to Commonwealth Avenue.

As for the P23-billion Nlex-Slex Connector Road, the Department of Public Works and Highways will hold the Swiss Challenge for MPIC’s unsolicited proposal before the end of the Aquino presidency in June. This 8 km elevated expressway will extend Nlex southward from the end of Nlex Segment 10 in C-3 Road, Caloocan City to the Polytechnic University of the Philippines in Manila’s Santa Mesa district.

Connecting with the common alignment of Skyway Stage 3 now being built by the San Miguel Corp.Citra consortium, the proposed Connector Road will traverse along the Philippine National Railways

Ernesto M. Hilario

Why can’t you repair an iPhone?

Adam Minter

cent annually for the last 16 years, agriculture’s growth averaged only 1.4 percent. In fact, in 2015, it grew by only 0.2 percent, and lost up to 448,000 jobs.

Some quarters—such as the Joint Foreign Chambers of Commerce—have attributed such a decline to fundamental issues like ease of doing business. In its Enabling the Business of Agriculture 2016 report,

Tuesday, February 16, 2016 A11

E-mail: ernhil@yahoo.com

2nd Front Page BusinessMirror

A12 Tuesday, February 16, 2016

DBCC lowers 2016 growth goal despite election boost

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B D C

HE Development Budget Coordination Committee (DBCC) has cut the GDP growth target for the year to a range of 6.8 percent to 7.8 percent from the previous 7 percent to 8 percent.

The reduction in the growth target came amid an election year, in which the Philippine economy traditionally grows faster due to increased consumption brought about by Filipino voters being awash with cash.

The National Economic and Development Authority (Neda) explained that the growth targets for 2016 were downgraded due to the lingering threats to growth posed by developments in foreign countries, particularly in China.

The factors that were considered in downgrading the growth target for GDP were the slowdown in China and the sustained decline in the prices of oil, which put too much pressure on Middle Eastern countries where most remittances from overseas Filipino

6.8%-7.8% New GDP growth target set by the government for the year, down from the previous 7 percent to 8 percent workers (OFWs) come from.

Neda Assistant Director General Rosemarie Edillon explained that the reduction in the growth targets was in consideration of “the very challenging external environment.” “But if you compare it to the 5.8-per-

cent GDP growth in 2015, this is actually an acceleration of growth.”

“There are external factors but there are a lot of domestic-driven factors which will prop up growth and balance the external threats, especially the coming elections and the continuing implementation of public-private partnerships [PPP] infrastructure projects,” Budget Secretary Florencio B. Abad said.

For 2017 the GDP growth targets are even lower at a range of 6.6 percent to 7.6 percent. For 2018 and 2019 the growth targets are at a range of 7 percent to 8 percent and 6.9 percent to 7.9 percent, respectively.

Abad said the DBCC is looking at a national budget totaling P3.35 trillion for 2017, which is an 11.6-percent increase from the current year’s budget.

Finance Undersecretary and chief economist Gil Beltran said the next administration is not likely to lower the DBCC’s projection of the budget needed for 2017, and should find ways to fund such national expenditure by being more efficient in collecting taxes.

In terms of inflation, the Bangko Sentral ng Pilipinas (BSP) has maintained the inflation target of 2 percent to 4 percent for 2016 to 2018, due to the expectations of a sustained decline in the prices of oil in the world market.

BusinessMirror

The inflation expectation figures were arrived at with much consideration on the expected price of oil in the coming years.

The DBCC expects the price of oil to hover around the range of $45 to $60 per barrel this year, then at a range of $50 to $65 in 2017. The original assumption for the prices of oil for 2018 was maintained at a range of $70 to $80 per barrel.

For the foreign-exchange rates, the projections were also revised to reflect the continuing strength of the US dollar against Asian currencies. For 2016 up to 2019, the projected foreign-exchange rate of the Philippine peso is at a range of 45 to 48 against the US dollar.

The BSP said the expected weaker peso took into account recent developments “wherein most other currencies in the region experienced weakness because of the general strengthening of the US dollar.”

The International Monetary Fund (IMF) has also revised downward its Philippine growth outlook for this year, as the region’s sluggish performance and the global economy continued to drag the country’s potential growth going forward. IMF Resident Representative to the Philippines Shanaka Jayanath Peiris said the forecast for 2016 was cut from 6.3 percent to 6.2 percent, to reflect the “challenging external environment.”

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SEC…

C  

SEC Chairman Teresita Herbosa said the agency already gave the Philippine Association of Brokers and Dealers Inc. (Pasbdi), the umbrella organization of brokers and dealers, four years to challenge the new requirements. “None of them [brokers] assailed the intended amendments that we wanted to make.”

She said the agency is justified in imposing additional requirements on securities dealers and stockbrokers to disclose the beneficial owners of stocks and securities.

“They [Pasbdi] applied for a TRO [temporary restraining order] against some provisions in our new [2015] implementing rules and regulations [IRR] of the SRC [Securities Regulation Code]. But since their application was denied by the court, as they failed to establish that the IRR poses grave and irreparable injury to them, then the recently issued 2015 IRR stands,” Herbosa said.

Last month Pasbdi filed a petition that sought to nullify certain provisions in the 2015 IRR of the SRC. These include the amendments increasing transparency in the dealings of brokers and dealers, mainly concerning the beneficial ownership disclosure requirement. The said move is to align the SRC with the Foreign Investment Negative List and Anti-Money Laundering Act. In a ruling that took effect in 2015, the Supreme Court ordered the SEC—in the case of Gamboa v Teves—to look into the beneficial ownership of corporations and ensure compliance with the foreignownership restriction.

The beneficial ownership of stocks assumes that the stock holdings being managed by the brokers or dealers in behalf of their respective clients are not registered under the name of the real owners of said stocks.

Such scheme is usually employed to circumvent the law limiting foreign equity to 40 percent in partly nationalized industries, which include operation and management of public utilities; advertising; mining activities and exploration; and development and utilization of natural resources.

Pasbdi is not answering queries on the said issue.