BusinessMirror November 23, 2015

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Thursday 18, 2014 Vol.23, 10 No. 40 Monday, November 2015 Vol. 11 No. 46

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ADB, Jica set up $16-B fund for infra projects in Asia Pacific

By Cai U. Ordinario

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sia-Pacific countries now have more options for financing key infrastructure projects, after Manilabased Asian Development Bank (ADB) and the Japan International Cooperation Agency (Jica) announced the establishment of two new infrastructure funds.

INSIDE

a fine moment for filipiniana

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Obama refugee argument fails as Democrats desert

The two funds, which have a combined worth of $16 billion, can finance sustainable infrastructure projects by the private sector and those that will be undertaken via public-private partnership (PPP) schemes.

“Through its assistance for urban transport, renewable energy and other infrastructure, the partnership will also contribute to the expansion of climate financing to developing countries, in line with

southeast asia creates Economic Community, but challenges remain

the expected outcome of the COP21 [21st Conference of Parties] meeting in December,” ADB President Takehiko Nakao said. The ADB and Jica established a $6-billion-worth fund to finance private-sector investments in sustainable infrastructure in Asia and the Pacific.

The trust fund, which will be managed by the ADB’s Private Sector Operations Department, will also be capitalized with $1.5 billion in

PHL’s Apec hosting, GDP growth impress foreign journalists

By Recto Mercene & VG Cabuag

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heavily guarded ASSOCIATION of Southeast Asian Nations (Asean) leaders (from left) President Aquino, Singaporean Prime Minister Lee Hsien Loong, Thai Prime Minister Prayuth Chan-ocha, Vietnamese Prime Minister Nguyen Tan Dung, Malaysian Prime Minister Najib Razak, Lao PDR Prime Minister Thongsing Thammavong, Brunei Darussalam Sultan Hassanal Bolkiah, Cambodian Prime Minister Hun Sen, Indonesian Prime Minister Joko Widodo and Myanmar President Thein Sein join their hands, as they pose for photographers after the signing ceremony of the 2015 Kuala Lumpur Declaration on the Establishment of the Asean Community and the Kuala Lumpur Declaration on Asean 2025 in Kuala Lumpur, Malaysia, on Sunday. AP/Lai Seng Sin

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By Vijay Joshi & Eileen Ng The Associated Press

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UALA LUMPUR,Malaysia— Thirteen years after the idea was mooted, Southeast Asian leaders on Sunday formally created a unified economic community in a region more populous and diverse than the European Union or North America, and with hopes of competing with China and India.

The 10 leaders in the Association of Southeast Asian Nations (Asean) signed a declaration during their summit, establishing the Asean Economic Community.

The community, known by its acronym AEC, is already a reality, and many

PESO exchange rates n US 47.0320

of its fundamentals have been applied in the region, such as removal of tariff barriers and visa restrictions, among others. It has also led to greater political and cultural cooperation.

The AEC will bolster income and employment, and provide the region with stronger economic muscle in facing the other giants, said Michael G. Plummer, a professor of international economics at the Europe Center of Johns Hopkins University, based in Bologna, Italy. But there is a long way to go before the AEC becomes fully functional after becoming a legal entity on December 31.

“The AEC is arguably the most ambitious economic integration program in the developing world. But

implementation of the AEC is increasingly uphill. Much remains to be done, and the region faces many challenges in finishing. The AEC is a process,” Plummer said.

It falls short in more politically sensitive areas, such as opening up agriculture, steel, auto production and other protected sectors. Asean citizens will be allowed to work in other countries in the region, but will be limited to jobs in eight sectors, including engineering, accountancy and tourism. This accounts for only 1.5 percent of the total jobs in the region, and host countries still can put up constitutional regulatory hurdles restricting the inflow of talent.

Continued on A2

special report

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perspective

equity from Jica. The fund will enable the ADB to expand large-scale private infrastructure operations by leveraging Jica’s official development assistance (ODA) resources and risk-bearing capacity.

Meanwhile, the ADB and Jica will provide financing of $5 billion each to create a $10-billion fund for sovereign borrowers undertaking sustainable infrastructure projects.

oreign journalists who covered the recently concluded Asia-Pacific Economic Cooperation (Apec) Leaders’ Meeting and CEO Summit hailed the preparations undertaken by the government to ensure their comfort and safety.

What made their stay in the Philippines more pleasant, they said, is the hospitality of Filipinos. From those who assisted them in Apec meetings to the people they met on the streets, foreign journalists said the warmth of Filipinos made them feel more at ease.

“I find [Filipinos] very welcoming and very warm, compared to people in Canada and North America. In Canada we’re a bit more reserved. It’s a very nice change to see and to feel the warmth of the Filipino people,” said Bryan A. Mullan of Global National based in Canada.

“Filipino hospitality is very much appreciated. Also, the service here, especially in the International Media Center, it’s very good.

[Members of the staff ] look at you and say hello with a big smile. I think, that is very warm,” said Chinese journalist Yijing Wang of the Shanghai Media Group.

Although grappling with her limited English, Aleksandra Baiazitouva, reporter for the Russian daily Izvestia, had nothing but good words for the Filipino people and the Philippines’s hosting of Apec. “ Ver y good people; ver y

interesting city; very good organization, and beautiful people. I wish I had more time, I want to swim in your beautiful beaches,” Baiazitouva said.

Foreign journalists also lauded the “extremely tight” security during the Apec meetings. When asked about the rallies staged by protesters near the World Trade Center on November 19, Mullan said, “It’s finding a line between the protesters’right to express their opinion and keeping everyone safe and making sure it doesn’t influence how the summit is ran.”

“In Canada, when we had a massive protest during the G-20 [Group of 20] Summit, the police sort of went overboard with some of the protesters, but here, it seems the way your police officers have handled it is very professional. I think, they’ve done a very good job, and that’s the right attitude to have for this situation,” he added.

‘Role model’

Bisnis Indonesia writer Arys Aditya Nugroho said his country, Indonesia, can learn a thing or two from the Philippines on how it could boost economic growth.

“I think, Philippines is on the right track, and Indonesia must learn to organize the economy like the Philippines,” he said.

Philippine GDP rose by 5.6 percent in the second quarter of the year. In contrast, Indonesia’s GDP grew by 4.67 percent, the lowest recorded by Southeast Asia’s largest economy in six years.

See “Apec hosting,” A2

See “Southeast Asia,” A2

n japan 0.3835 n UK 71.6438 n HK 6.0679 n CHINA 7.3787 n singapore 33.0327 n australia 33.4771 n EU 50.5688 n SAUDI arabia 12.5416

Source: BSP (16 November 2015)

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News

BusinessMirror

Monday, November 23, 2015

ADB, Jica set up $16-B fund for infra projects in Asia Pacific Continued from A1

The ADB and Jica said they will collaborate to support long-term investment plans using ADB’s Multi-Tranche Financing Facility. They will also provide necessary technical assistance for preparing and implementing projects, leveraging the comparative advantages of each institution.

The two organizations will soon sign a memorandum of understanding on the partnership. The ADB and the Japanese government have agreed to hold regular high-level policy dialogues to effectively implement infrastructure

investments under the partnership.

The ADB will seek similar arrangements with other development partners to meet the SDGs, increase climate financing, support quality and sustainable infrastructure development, promote private-sector development and operations, and address other development issues.

The SDGs were adopted by 193 countries, including the Philippines, in September 2015. It contains 17 goals, and one of them is in building resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

The goal aims to promote the building of quality infrastructure that are affordable and provides equitable access for all, and promote inclusive and sustainable industrialization by raising the industry’s share of employment and GDP. Building quality sustainable infrastructure is Goal 9 of the Global Goals, or the SDGs, which must be met by 2030.

The goal also aims to increase access of small-scale enterprises in developing countries to financial services and affordable credit, as well as increase industries use of clean and environmentally

sound technologies.

SDG 9 also aims to enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, and increase the number of research and development workers per 1 million people by 2030.

Other SDGs aim to end poverty and hunger, promote universal health, education for all and lifelong learning, achieve gender equality, sustainable water management, ensure sustainable energy for all, decent work for all, and reduce income inequality between and among countries.

news@businessmirror.com.ph

Apec hosting. . .

Continued from A1

For his part, Mullan said Southeast Asia, including the Philippines, presents a lot of trade opportunities for Canada.

“I think the whole Southeast Asia is a whole market. Our current biggest trading partners are our neighbors to the south of us. But as economies diversify and global trade expands, relying on just our neighbors to the south of us wouldn’t be enough.

It’s important to expand elsewhere, like in Asia,” he said.

Minuses

Despite the preparations made by the government, including the setup of Apec lanes, some foreign journalists complained about the traffic congestion in Metro Manila. Outside of Pasay and Makati cities where Apec Leaders’ Meeting and CEO Summit were held, some foreign scribes said traffic congestion in Metro Manila was “terrible” and “awful.”

“I was surprised about the traffic, despite the positive feedback I heard. It was really a problem to go from point A to point B. For example, last Monday, traffic was very awful. But aside from that everything is okay here,” Chilean journalist Jaime Liencura of Diario Publimetro told the BusinessMirror.

For her part, Wang urged the Philippine government to do something about the traffic congestion in Metro Manila, saying this could have an adverse impact on the productivity of people.

“The traffic congestion was terrible. We were stuck. We wanted to shoot in different places, show the downtown to the suburbs. When we move to another place it takes at least two to three hours so that makes it very difficult for us to work,” she said.

Meanwhile, some foreign journalists disapproved the efforts of the government to “window dress” the areas surrounding the venues of the Apec meetings. Japanese journalist Kantaro Suzuki of Daily Manila Shimbun said this resulted in“lost opportunity” for foreign scribes to experience the dynamism of the Filipino people.

“I feel for the foreign reporters, they lost the precious opportunity to witness the dynamism of the Filipino people, including the poverty. Of course, poverty is not always negative,” Suzuki said.

“I think the intention to make everything look good is a good one. If you invite someone to come to your house you do some preparations and clean it up, you’re not trying to mask something, but preparations,” said Konstantin E. Rozhkov, Russia’s 5 TV Channel reporter. With reports from Bianca Cuaresma, Lorenz S. Marasigan and Mary Grace Padin

Southeast Asia. . .

Continued from A1

Intraregional trade has remained at around 24 percent of Asean’s total global trade for the last decade, far lower than 60 percent in the European Union.

Asean members also struggle to resolve diplomatic flare-ups among each other, such as border disputes between Cambodia and Vietnam, or Indonesia’s inability to fight annual forest fires that spew noxious haze for months over Malaysia, Singapore and Thailand.

Asean has 630 million people who are governed by various systems, including rambunctious democracy, military dictatorship, quasi-civilian, authoritarian, monarchy and communism.

Plummer said progress has been slow in services liberalization. Cross-border flow of investment is also restricted by large exclusion lists and caps on foreign ownership. Government procurement and curbing monopolies by state-owned enterprises are highly sensitive and untouched, he said.

Although the four poorer economies—Cambodia, Lao PDR, Myanmar and Vietnam—have until 2018 to bring down tariffs, economic integration could further reinforce income equalities in the region, he said.

AEC “is not the finished article. Neither is it officially claimed to be. There is much work to be done,” said Mohamad Munir Abdul Majid, chairman of a council that advises Asean on business matters. “There is a disparity between what is officially recorded as having been achieved...and what the private sector reports as their experience.”

There are also other hurdles, such as corruption, uneven infrastructure and unequal costs of transportation and shipping. A wide economic gulf divides Southeast Asia’s rich and middle-income economies—Malaysia, Indonesia, Singapore, Brunei Darussalam, Thailand and the Philippines—and its four less developed members, Communist Vietnam and Laos, Myanmar and Cambodia.

The AEC was envisaged in 2002—and a blueprint created in 2007—to face competition from China and India for market share and investments. While China’s economic growth is expected to slow to an average of 6 percent annually over the next five years, India’s expansion is likely to pick up to 7.3 percent in the same period, according to the Organization of Economic Co-operation and Development.

The AEC is one of the three pillars of the Asean community, which was created by the signing of the declaration on Sunday. The other two pillars are political security and sociocultural.

Digital economy. . .

Continued from A12

“The government should work hand in hand with incumbent and new entrants to make sure that scarce range of frequency spectrum that will enhance the speed of mobile telecommunications are made available on a fair and reasonable basis,”he said.

An auction, however, is considered highly unlikely as San Miguel has started rolling out infrastructure using the frequency band.

“Before you can reassign or recall a frequency you have to file a case before the regulator—citing either nonuse or nonpayment of spectrum fees. Then, of course, the case will go through the Court of Appeals, if a party wants to contest the decision of the regulator. It’s a long process,” NTC Director Edgardo V. Cabarios said.

San Miguel is expected to sign a deal with Telstra Corp. Ltd. soon as the venture debuts in Manila in 2016, through Bell Telecommunications Philippines Inc. It plans to invest roughly $1 billion in a wireless joint venture with the diversified conglomerate.

The Filipino diversified conglomerate is expected to own 60 percent of the company, requiring it to invest as much as $1.5 billion, while the remainder will be owned by the Australian telecommunications giant.

San Miguel President Ramon S. Ang said he does not plan to wage war against the incumbents. He simply wants to solve the Internet-quality problem in the Philippines.

“Honestly, we are not here to engage them in a fight. What we really want to do is to improve the service to the public,” he said.

Studies conducted by Ookla, an Internet metrics provider, showed that the Philippines has the second slowest average download speed among 22 countries in Asia, with an average speed of 3.64 Mbps.

The Philippines ranked 176th out of 202 nations around the world. Download speeds in the country is eight times slower than the global broadband download speed of 23.3 Mbps.

Separately, Cloud services provider Akamai Technologies said that while the Philippines might have improved its connection speed by a percentage point, its overall ranking in Asia still remains at number 13 out of 15, or the third worst connection in the region.

Filipinos, according to the first quarter report of Akamai, enjoy an average download speed of 2.8 Mbps during the period in review. Trailing behind were India and Indonesia with 2.3 Mpbs and 2.2 Mbps average speeds, respectively.

Telstra is known as one of the first few telcos in the world to have successfully capitalised on the 700 MHz band.

news@businessmirror.com.ph

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Monday, November 23, 2015 A3

Whipping absentee reps for BBL vote on Congress execs’ shoulders–Palace

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By Butch Fernandez

ALACAÑANG is relying on Congress leaders to crack the whip on absentee lawmakers to muster the quorum needed to pass the controversial Bangsamoro basic law (BBL) and other pending administration priority measures, including the final version of the P3.1-trillion 2016 budget bill.

Presidential Spokesman Edwin Lacierda on Sunday affirmed the Palace position when asked about reports quoting Senate President Franklin M. Drilon’s appeal to all lawmakers to be present in the remaining sessions until their next adjournment on December 18 to enable the two chambers to pass the BBL.

Duterte blames SET, chides Poe on decision to run for president

By Manuel T. Cayon Mindanao Bureau Chief

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AVAO CITY—After signaling he would and then he wouldn’t, Mayor Rodrigo Duterte announced here that he’s mulling again the decision to run for the country’s highest post.

This time, he blamed the Senate Electoral Tribunal (SET).

Saying he’s irate, Duterte said the option is “now on the table” to accept the substitution rule to run for President and that he did so indignant at the decision of the SET granting Sen. Grace Poe the legitimacy to run for President.

“I have no quarrel nor [sic] an issue with Poe, but to us lawyers, the seat of the highest political office in the country is sacred and should be given only to natural-born Filipinos,” Duterte said. He described as “showbiz-like and mere political” the five favorable votes of Poe’s fellow senators.

“Never had we signed that treaty to grant citizenship as natural-born to a foundling, but the Philippines grant citizenship to foundlings out of compassion and humanity,” he said in the city government’s Sunday television public affairs program.

Duterte said if the same decision would be handed out by the SET to motion for reconsideration, “then the option for me to run is now open.”

He said he could not stand seeing somebody “deemed only as Filipino but not truly yet a Filipino ruling our country.”

“Let a Matigsalug, an Igorot, a Tausug, a plumber or a barber run for President and I have to issue with it because these are undoubtedly Filipinos by birth.”

Duterte said it was disgusting for Poe “to lie that she was a natural-born Filipino when she [ran] for the Senate but would use her American passport than her Philippine passport abroad just so she can get easily with immigration.”

“If she is not comfortable with and being proud to be a Filipino, then she should get out of this country,” he said.

He said he would wait for the SET’s decision to the motion for reconsideration.

“And if that body [SET] tend to do the same, maybe if, maybe not, I may run for President so that, even for one day, I can argue this truth that we have studied for four years.”

Case disputing MMDA control over billboards junked by appeals court

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HE Court of Appeals (CA) has reversed a ruling issued by a Makati trial court in 2013 that prevented the Metropolitan Manila Development Authority (MMDA) from exercising its authority to issue clearances and permits for billboards and advertising signs along major and secondary thoroughfares in Metro Manila.

In a 21-page decision penned by Associate Justice Remedios Salazar-Fernando, the CA’s Second Division ordered the dismissal of the complaint questioning the legality of a memorandum of agreement (MOA) between the MMDA and the Department of Public Works and Highways (DPWH). The MOA said the MMDA has been deputized by the DPWH to implement provisions of the National Building Code that regulates the issuances of clearances to applicants of billboard permits. The complaint, filed by advertising firms Summit Publishing Co. Inc., Bigboard Advertising Corp. and Sygoo Enterprises Inc., questioned the validity of memorandum circulars issued by the MMDA pertaining to guidelines for the issuances of clearances and permits for billboards.

In its order issued on October 25, 2013, Regional Trial Court in Makati City Branch 58 presiding Judge Eugene Paras issued a writ of preliminary injunction restraining the MMDA from confiscating, rolling down and demolishing billboards. The writ also prohibited the MMDA to do the same in products by other entities similarly engaged in the business of outdoor media advertising on the basis of noncompliance with the memorandum circulars and the MOA between the DPWH and the MMDA. Joel R. San Juan

“Siguro ’yung panawagan po na ’yan would best be left to the call of the leaders in both Houses to ensure the attendance of all their members,” Lacierda said. “We certainly would hope to see the passage of the BBL.” Speaking over state-run radio, Lacierda pointed out that the measure abolishing the existing Autonomous Region in Muslim Mindanao (Armm)

in favor a new entity—negotiated by the Moro Islamic Liberation Front with the Aquino administration— has been the subject of extensive deliberations, indicating it could now be put to a vote for approval and implementation.

“It has been debated in the committee level; it has been discussed in public; all angles have been ad-

dressed,” the Palace spokesman said.

“So it’s time for the legislators who will pass the law to buckle down and we request them to take a hard look at the BBL.” Lacierda explained that the BBL is “an affirmative action to the neglected regions in Muslim Mindanao.

So this will unlock the potentials of it and with respect to the development

of Muslim Mindanao.”

“Sana ay makinig ang ating mga mambabatas sa panawagan ni Drilon at saka I’m sure [they, all of us], we have an interest and we have a stake in the development of Muslim Mindanao because it will redound to the benefit of all the peoples of Mindanao and, in general, to the people of the Philippines.”

Economy

A4 Monday, November 23, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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PHL gets more attractive to small Japan businesses

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By Genivi Factao

MALL and medium enterprises (SMEs) in Japan have shown strong interest in investing in the Philippines following the supportive stance of Prime Minister Shinzo Abe to President Aquino during the just concluded conference of leaders in Manila.

Japanese SMEs are still showing good interest in investing in the Philippines, according to Metropolitan Bank and Trust Co. Tokyo (Metrobank Tokyo) Manager Takeshi Odaka.

“When you look at the very positive and supportive posture, which Prime Minister Shinzo Abe has exhibited to our good friends in the Philippines, you can say that Japanese SMEs must feel more [comfortable] in doing business in the Philippines, since it points to the far better relationship between the two countries,” Odaka

told the BusinessMirror.

Japanese SMEs face the challenges of securing qualitative manpower in Japan, partly due to the decreasing young generation and, because of this, the talented Filipino workers become so attractive for Japanese SMEs, he added.

Odaka said Japanese SMES will naturally “follow the wind” and you will see additional investments from Japanese SMEs in the Philippines.

“You must feel ‘vice versa’ when you do business with China.”

Odaka added that corporate re-

Congress to approve salary-standards bill

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HE House of Representatives is eyeing to approve the proposed Salary Standardization Law (SSL) this week.

Speaker Feliciano Belmonte Jr. also assured government workers the House Bill 6268 (SSL of 2015) will be passed into law before the year ends.

“We will immediately approve this very important bill on third and final reading [at the lower chamber and transmit it to the Senate for its own deliberations],” Belmonte said.

Majority Leader Neptali Gonzales II of Mandaluyong City said the bill will be approved on the third reading once the Lower House receives the urgent certification from the Palace and muster enough quorum.

W hen we resume, and there is quorum and certification, we can approve it on third reading, Gonzales said.

Lakas Rep. Martin Romualdez of Leyte urged the Congress to immediately pass the bill for the benefit of 1.53 million state workers.

“We are committed to pass this very important legislation for the benefit of our state workers. They really need economic relief to decently support their basic needs,” added Romualdez, who also leads the House Independent Bloc.

The bill seeks to modify the compensation and position-classification

BELMONTE: “We will immediately approve this very important bill on third and final reading [at the lower chamber and transmit it to the Senate for its own deliberations].”

system of civilian government personnel and the base pay schedule of military and uniformed personnel in the government to be implemented in four tranches, starting January 1, 2016.

T he bi l l, l i kew ise, seek s to “strengthen the link between pay and performance through an enhanced performance-based bonus system, temper the cost of benefit while maximizing the benefits of employees and allow higher takehome pay, especially for government personnel belonging to the lower salary grades [SG].”

The measure is expected to result to a weighted average increase of 45 percent in the compensation of all SGs and raise compensation of government personnel to at least 70 percent of the private-sector rate.

The bill was principally authored by Belmonte, Gonzales and House Com-

mittee on Appropriations Chairman Isidro T. Ungab of Davao City, Committee on Accounts Chairman and Rep. Eleandro Jesus F. Madrona of Romblon.

Earlier, Budget Secretary Florencio B. Abad informed lawmakers that the SSL 4 will be “effected through a combination of a salary increase, a 14th month pay and an enhanced performance-based bonus to be implemented over a four-year period beginning January 1, 2016.”

Abad explained the SSL 4 is based on Joint Resolution 4 enacted by Congress in 2009, mandating the review of the compensation and positionclassification system after three years from the last year of the adjustment to determine the competitiveness of government pay in relation to the private sector and the compensation strategy to bring government pay closer to market rate.

Abad said the last tranche of the previous SSL 3 was completed in July 2012. He said, despite the substantial duties and responsibilities of public servants, their salaries stand only at 55 percent, or around half, of current market rates.

The first round of the salary standardization will be implemented next year, and will require a total funding of P57.9 billion.

Of this amount, P50.4 billion has already been earmarked in the

2016 General Appropriations Bill (GAB), which the House approved on third and final reading in October before adjournment.

The balance of P7.5 billion will come from adjustments they will make in the bicameral conference committee or from the Pension and Gratuity Fund (PGF).

Meanwhile, Ungab said the funding requirements for the succeeding compensation adjustments shall have the following budgetary requirements: second tranche, P54.3 billion; third tranche, P65.9 billion; and fourth tranche, P47.5 billion.

The bill provides the compensation and position-classification System shall apply to all civilian government personnel in the executive, legislative and judicial branches, constitutional commissions and other Constitutional Offices, government-owned or -controlled corporations not covered by Republic Act 10149, and local government units. It shall cover government personnel whether regular, contractual or casual, appointive or elective; and on full-time or part-time basis.

Under the new SSL, those under SG 1, who are now receiving P9,000 per month, will get P9,478 per month under Step 1 of the first tranche; P9,981 under the second tranche; P10,510 under the third tranche; and P11,068 under the final tranche.

Jovee Marie N. dela Cruz

mittance transaction value to the Philippines from Japan through Metrobank branches in Tokyo and Osaka posted a double-digit increase year-on-year for the January-to-October period.

Metrobank has established 63 alliances with Japanese regional banks and two government banks to support banking the needs of both Metrobank Philippines and Metrobank in Japan. Its largest Japanese regional bank alliance is with the Bank of Yokohama.

Meanwhile, Metrobank Assistant Vice President and Head

of Research Marc Bautista said Japanese companies have continued to express interest in setting up shop in expectations of good consumption spending here versus the poor spending in their home country.

“Additionally, some of these Japanese companies are trying to diversify away from China and from some Asean [Association of Southeast Asian Nations] countries, but more as a matter of strategic concern rather than from political considerations,” he told the BusinessMirror.

ERC revisits rules on ownership of power generators, distributors

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O discourage abuse of market power in the industry, the Energy Regulatory Commission (ERC) is currently reviewing the rules on cross ownership between generation companies (gencos) and distribution utilities (DUs), as well as the market-share caps for power generators provided for in the Electric Power Industry Reform Act (Epira).

“We want to revisit the provision on cross ownership and marketshare restriction under Section 45 of Epira…to prevent anti-competitive behavior and market abuse by certain companies,” ERC Chairman Jose Vicente Salazar said in a text message.

Epira’s Section 45 (a) provides that “no company or related group can own, operate or control more than 30 percent of the installed generating capacity of a grid and/or 25 percent of the national installed generating capacity.”

In fact, he said, the commission is already conducting an “extensive study” on this. “The commission gave instructions to key offices of ERC for the determination of the most optimal percentage,” he said when asked what the ideal limit is being considered by the ERC. Based on this study, the commission will issue resolutions to enforce whatever new regulations the agency has come up with. “We will have some resolutions before the year ends,” Salazar added.

While Epira allows gencos or DUs from participating in the transmission sector, crossownership between a genco and a DU is allowed.

As a safeguard to abuse though, the law prevents DUs from sourcing more than 50 percent of its total power demand from bilateral contracts with its affiliated gencos.

“Completely disallowing cross-ownership between a DU and a genco might prove to be too much of a barrier to investment and entry into the market and could also cause privatization to become more difficult,” according to a policy brief by the Sen-

ate Economic Planning Office.

Instead of completely disallowing cross-ownership, the Senate said the caps on bilateral contracts and grid capacity ownership maybe enough to promote competition in the power sector. Nonetheless, the ERC’s authority plays an important role to discourage possible market abuse.

“In the end, however, grid caps and bilateral caps can only do so much and there is still no substitute for good regulation and strong anti-trust and anti-monopoly enforcement which should be the job of a truly strong and independent ERC,” the Senate added.

Every year, the ERC sets generation capacity limits for power generators. The said limit could be calculated based on the installed generating capacity (IGC), which refers to the sum of the maximum capacities of the generation facilities connected to a transmission or distribution system in a grid.

The national grid has a total of 17,585.17-megawatt (MW) IGC this year from 15,832 MW a year ago.

In Luzon, this year’s IGC is at 13,057.76 MW from 12,041.42 MW last year. The Visayas has 2,363.69 MW from 1,827.29 MW last year; and Mindanao with 2,163.72 MW from 1,963.65 MW last year.

Based on existing rules, a genco could only corner 30 percent of the total IGC on a per grid basis. Thus, if the said rule is applied, the limit for Luzon this year is at3,917.327 MW of IGC; 709.107 MW on the Visayas grid; and 649.115 MW in Mindanao grid.

If the operation of a genco is concentrated in one particular grid, it is allowed to own 25 percent or 4,346.291 MW of the national grid’s total IGC. “The ERC determines and adjusts the installed generating capacity and the market share limitation yearly to ensure a competitive generation sector in the electric power industry that promotes and protects consumer interests,” former ERC Chairman Zenaida G. Cruz-Ducut said in the resolution she signed.

Salazar replaced Ducut.

The next adjustment will be implemented in March next year.

To date, the ERC said no genco has violated the market-share limitations. Lenie Lectura

₧1.7B worth of infra projects secured by Manila local govt

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HE Manila City government announced it has managed to secure a P1.7 billion worth of infrastructure projects from the Department of Public Works and Highways (DPWH), with most of projects aimed at solving the decades-old problem of flooding that affects the country’s capital city.

In a statement, Manila Mayor Joseph Estrada said the city government’s close coordination with Public Works Secretary Rogelio L. Singson resulted to Manila getting a windfall of infrastructure projects worth P1,742,775,286.46.

Of this amount, P1,086,057,000 was allotted to “flood control and drainage system” projects.

“How can you call Manila the country’s capital city when it is mostly flooded?

Since I assumed office, I have worked hard to solve the flood problem so this city will live up to its name as the Paris of Asia,” Estrada was quoted in the statement as saying.

“The bulk of our infrastructure projects focus on flooding, damaged, outdated or worn-out roads, clogged waterways, lack of classrooms and other pressing concerns.”

Manila City Engineer Roberto Bernardo said he can assure the implementation of these projects “would be free from any irregularities.”

Bernardo cited several awards the city government received in the past months as testament to this claim. Joel R. San Juan

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Monday, November 23, 2015 A5

Holiday spending, not Apec, will pull up Q4 GDP—economists

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By Cai U. Ordinario

he impact of public- and privatesector spending for the Asia-Pacific Economic Cooperation (Apec) summit on GDP will pale in comparison to Filipinos’ holiday spending in the fourth quarter, economists said.

Economists, however, agreed that the recently concluded Apec Leaders’ Meeting and CEO Summit will help increase foreign investments and funding for public projects.

“The effect would be minimal, even negligible since the effect of the Apec summit will be felt over the mediumto long-term period. Fourth-quarter growth will still be driven strongly by domestic consumption due to remittances,” University of Asia and the Pacific School of Economics Vice Dean Cid Terosa said.

Philippine Statistics Authority (PSA) data showed that consumer spending from 2012 up to the second quarter of 2015 was consistently above P1 trillion per quarter.

In the fourth quarters of the years 2012 to 2014, consumer spending or the household final consumption expenditure (HFCE) reached P1.26 trillion, P1.34 tril-

lion and P1.4 trillion, respectively.

These amounts are over 10 times the government budget of around P10 billion for the entire Apec meetings this year. The government’s Apec budget was spent not only in the fourth quarter, but throughout the Philippines’s 2015 hosting.

“According to Trade Undersecretary Adrian Cristobal, the government spent P10 billion for Apec, but that probably is for the whole year, with a big portion [spent in] the fourth quarter,” Ateneo de Manila University School of Social Sciences Dean Fernando T. Aldaba said.

Former Philippine Economic Society President Alvin Ang said what is certain is that holiday spending of Filipinos and tourism spending of Apec delegates will help boost fourth quarter GDP. Filipinos’ holiday consumption is usually boosted by year-end bonuses

and 13th-month pay of employees, as well as overseas Filipino worker remittances.

Aldaba, however, noted that in 1996, when the Philippines hosted the Apec summit, the economy got a major boost in terms of GDP growth for that year.

PSA data showed that in 1996, the country’s gross national income grew 9.4 percent and GDP grew 5.8 percent. This was the highest growth rates recorded under the Ramos administration.

“What cannot be accurately measured is the amount of spending by the delegates who attended Apec meetings before and during the summit. Of course, goodwill and reputation will also translate into new investments beyond the fourth quarter,” Aldaba said.

The amount of foreign investments facilitated by the Apec meetings have yet to be known, but the Leaders’ Meeting alone this month paved the way for the signing of agreements to finance key infrastructure projects.

Most notable of which was the P93.45billion loan extended by the Japanese government to the Philippines to jumpstart the construction of the North-South Commuter Railway Project (NSRP).

The NSRP will be implemented in three phases. The first phase will run from Malolos, Bulacan, to Tutuban station in Divisoria. The second and third phases of the North-South Commuter Line will be funded via public-private partnership scheme.

Filipino nurses seeking jobs in US up 17% in Jan-Sept

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lawmaker on Sunday said Filipinos remain the most active job-seekers in the US, as a total of 3,810 Philippineeducated nurses took the US National Council Licensure Examination (NCLEX) for the first time in January to September.

House Assistant Majority Leader and Nacionalista Party Rep. Gerald Anthony Gullas Jr. of Cebu said these Filipino nurses hope to find “gainful employment” in the US. “The number is up 17 percent versus the 3,253 Filipino nurses who took the NCLEX for the first time, excluding repeaters, in the same nine-month period in 2014,” Gullas, vice chairman of the House Committee on Higher and Technical education, said.

Since 1995 a total of 161,181 nurses educated in the Philippines have taken the NCLEX for the first time.

The NCLEX refers to the licensure examination administered by the US National Council of State Boards of Nursing Inc. “The number of Filipino nurses taking the NCLEX for the first time is considered a good indicator as to how many of them are trying to obtain US licenses, or seek gainful employment in America,” Gullas added.

Besides Filipinos, the lawmaker said, a total of 708 Indians, 382 Puerto Ricans, 292 South Koreans and 207 Jamaicans also took the NCLEX for the first time from January to September this year.

Meanwhile, Gullas pushed for higher salaries for nurses employed by the government, saying their pay should be P6,000 to P7,000 higher than what they are now getting. Jovee Marie N. dela Cruz

Tourism&

A6 Monday, November 23 , 2015 • Editor: Carla Mortel-Baricaua

A TASTE OF PAM

RUSTIC, country-side charm of Apag Marangle

B E V. D

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Photos by Martin San Diego

T has always been a refreshing experience to eat and dine at a farm. The breeze of fresh air, the cooling waters of a pond and the relaxing atmosphere bring back childhood memories of playing wistfully under the sun and in the dirt—without a care in the world.

So, when Apag Marangle, an authentic Capampangan restaurant came to town, the mood is calming and, yet, in a sense, jovial.

PEPASINGONG Gule Ampong Taguilo, fresh steamed vegetables from Pampanga

Located on the ground floor of the new Park Square in Makati City, Apag Marangle, which, in the vernacular language, means kain sa bukid (eating on the farm), is not your typical restaurant because aside from its delectable Capampangan dishes, the place takes you away from the city and brings you to a rural scene.

With bamboo chairs and tables, native flooring, wooden furniture and indoor plants, Apag Marangle’s look is a replica of their first food outlet in Bacolor, Pampanga. In fact, the restaurant has a mini fish pond filled with catfish (hito), where diners can choose one to be cooked and served in a matter of minutes. “Derived

NASING Marangle with large servings can satisfy big appetites

from its name, this is how we wanted the ambiance to be,” co-owner Cherry Tan says. “Although we have humble beginnings in Pampanga, we thought of expanding the business in Makati City. So, when this slot was first offered to us, we took it right away because not everyone is given this good of an opportunity.

This was the answer to our prayers, along with the people who wanted to invest in our restaurant.”

The dining experience

APAG Marangle has the rustic charms of the countryside. To heighten the rural experience, several banga (earthen jars) filled with water have

ENSALADANG Pakô, fiddle head fern salad with salted eggs

SUAM Mais, creamy corn soup served in a clay pot

been placed in the wash areas; quite an interesting take on the olden times.

“Aside from the ambiance, we are also promoting Capampangan culture through the practice of our dialect,” co-owner Mark Navarro points out.

“Our menu is written in Capampangan and we are proud of it.”

Unlike restaurants that offer fusion dishes, Apag Marangle serves authentic Capampangan cuisine by staying true to its original recipes. All ingredients come from the produce harvested daily from Pampanga, making sure that the taste remains consistent with every dish. “Plus, we strictly follow the traditional way of cooking and that starts from the preparation, the choice of ingredients, slow cooking, to the particular way we serve the dishes,” Tan says. “It’s simple, but it’s the traditional way of cooking.

There is no twist, or fusion. We are one of the few restaurants that chose to be authentic. When we cook sinigang, for instance, we don’t use instant or flavored powder. We use fresh tamarind, bayabas, kamias, or sampaloc for that sour taste.”

To start your Capampangan culinary journey, try the Ensaladang Pakô, a fiddle head fern salad with salted eggs, as your appetizer. For those who want to have something warm, order the Suam Mais, corn soup served in a clay pot that is tasty, frothy and full of corn kernels when you take a mouthful.

The best sellers and the exotics

NO doubt Apag Marangle offers a lot of best sellers. The Nasing Marangle is a meal in itself with rice topped with pinakbet and lechon kawali in large servings that is sure to satisfy a foursome. Vegetable lovers ought to have a taste of the Papasingong Gule Ampong Taguilo, steamed vegetables with fermented shrimp and rice dip.

&Entertainment BusinessMirror

tourism@businessmirror.com.ph • Monday, November 23, 2015 A7

AMPANGA’S APAG MARANGLE Tidtad is their version of dinuguan, but, instead of blood, it has a white sauce. Also a much sought-after dish is the fried hito. The Kalderetang Bibe, spicy duck stew, and the Humba, pork braised in yellow bean paste, are some of the menu items that are succulent and juicy, as well. If you love exotic dishes, Apag Marangle offers the Betute, or deep-fried frogs stuffed with savory ground pork, and the Camaru, or mole crickets that are fried or sautéed. For desserts, order the Ebun Malat, the restaurant’s famous salted egg ice cream.

Apag Marangle is also popular for their boodle-fight style of dining with four delectable eats of your choice that could satisfy a group of six. The package costs from P1,100 to P1,700.

So, if you’re looking for authentic Capampangan dishes, you need not travel to the province anymore. Just stop by Apag Marangle and they will gladly bring Pampanga to you via your taste buds.

EAT a hearty meal boodle fight style

BETUTE, deep-fried frog stuffed with savory ground pork

OurTime

A8 Monday, November 23, 2015 • Editor: Efleda P. Campos

BusinessMirror

news@businessmirror.com.ph

Former college editors reunite to celebrate freedom

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By Pauline de Guzman | Special to the BusinessMirror

T was the best of times for nurturing our youthful idealism; it was the worst of times for the dangers posed to our lives,” Elso U. Cabangon, president of League of Editors for a Democratic Society-College Editors Guild of the Philippines (LEADS-CEGP) 6972, said of his experience during the martial-law period as a member of the CEGP and the LEADS. He said that back then, being part of LEADS-CEGP meant harnessing your writing skills to engage in the discussion of issues confronting Philippine society, and being ready for any eventuality that can cost your life in serving the people.

Cabangon described the imposition of martial law as “a period of worldwide student unrest” when students in the country first got caught up in the ferment of the an-

ti-Vietnam war protest movement.

It then turned inward to protest the commercialization of education due to the ever-increasing tuition cost, and finally fighting the Marcos government for its corruption and human-rights violations.

After 40 years, former student editors and staff of LEADS and CEGP from 1969 to 1972 had a reunion that later on led to a decision to become a more formally consti-

tuted organization. On January 21, 2011, LEADS-CEGP 6972 became a nonstock, nonprofit association registered with the Securities and Exchange Commission.

To date, the association offers a scholarship program called “Kislap” that aims to continue serving the people, especially the impoverished youth.

“As the name implies Kislap, we hope that this little effort can catch fire, first among our members then our friends and relatives,” said Louie Segismundo, chairman of LEADSCEGP 6972 scholarship committee.

Segismundo said that this school year, the program has 13 scholars, with four graduating from the Polytechnic University of the Philippines (PUP) inApril. The association signed a memorandum of agreement with PUP on the selection of scholars whom they will support every year.

Meanwhile, the scholarship fund is supported by voluntary contributions from better-off members. The association also had published its first book entitled Not On Our Watch, Martial Law Really Happened—We Were There about true-to-life stories of 13 Filipino student journalists in the midst of Marcos dictatorship that

LEADS-CEGP 6972 members and scholars in a recent gathering. LEADSCEGP.ORG

became a best seller for months. With this, they are planning to have a sequel and to produce a short film based on members’ experiences during martial law and after.

“We learned much about our

‘Silahis ng pasko’ ushers christmas in baguio celebration

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AGUIO CITY—The local government unit of Baguio City has started preparing for the annual celebration of Christmas, dubbed “Silahis ng Pasko.”

The Silahis ng Pasko organizers with the senior citizens organizations, retirees, City Social Welfare and Development Office, Lucky Baguio Balikbayans and National Correspondents Club of Baguio, prepared giveaways and infant needs for the lucky Christmas and New Year babies.

Silahis sa Pasko features the good heart of the people of Baguio City by delivering the Yuletide spirit to children, the elderly and persons with special needs.

T he t rad it ion a l c h i ld ren’s mardigras, sports competition, Christmas cantata, Share-a-Toy, Himig ng Pasko, gift-giving to indigent groups, among others are expected to cheer residents of the city.

December 1 marks the “Christmas in Baguio” where Session Road will be closed for the annual lighting of the City Christmas Tree at the top of Session Road which will be ushered by a concert.

An added attraction in the opening is the Christmas Lantern parade of the Saint Louis University students showcasing different lantern designs.

The Baguio Christmas Village at Rose Garden, Burnham Park, is another feature of the event.

Council Committee on Tourism, Special Events, Parks and Playgrounds Chairman Elmer Datuin said different activities are already lined up in the monthlong celebration of Christmas in Baguio this year.

Datuin said the private-sector groups may introduce other programs for the people of Baguio and visitors to feel the spirit of this year’s Yuletide season. PNA

societal ills and what we perceived to be solutions through intensive studies of nationalist literature, discussions with comrades and engaging in mass actions,” Cabangon explained on why LEADS-CEGP

6972 still continues to pursue its vision hinged on a common love for country. He also advises the youth to “not be afraid to test the waters, soak up every knowledge given to you and serve the people.”

N. Cotabato turns over antipoverty infra projects to communities

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IDAPAWAN CITY—At least 10 villages in North Cotabato’s 17 towns have received various infrastructure projects as the provincial government intensified project implementation, officials on Tuesday said.

The massive project implementation forms part of the provincial government’s endeavour to improve the living conditions and quality of life of its people.

Among the projects turned over in Midsayap, North Cotabato, on Monday and Tuesday were lateral lines for electrification with 63 poles at Barangay Olandang worth P4.1 million; solar dryer in Barangay Nabalawag worth P300,000; 298-meter barangay road concreting in Lower Katingawan worth P3 million; 339-meter barangay road concreting in Bagumba worth P3 million; a P1.5-million covered court in Barangay Lagumbigan; multipurpose building in Central Labas worth P600,000; multipurpose building in Upper Labas worth P600,000; and covered court in Barangay Upper Bulanan worth P1.5 million all handed over to village officials.

Three other projects were turned over to officials of Linangkob in Kidapawan City—a farm-to-market

road-rehabilitation project (Linangkob-Sikitan-Santo Niño Road) worth P1.5 million; line canal water way worth P1 million and distribution of water line taping worth P200,000.

More than 400 senior citizens in Magpet town availed of free eye examinations and received free eye glasses in the activity conducted in the municipal gym under the “Salamin Alay kay Lolo at Lola” early Christmas project for the elders.

On the same day, 20 small farmers from the municipality of President Roxas obtained certified corn seeds in the distribution made in Barangay Poblacion. “This string of turnovers of projects and program implementations are part of our goal of improving the lives of constituents under the advocacy of ‘Serbisyong Totoo.’

Through useful projects, we provide them the opportunity to grow,” Gov. Emmylou Mendoza, who led the turnovers rites, told reporters.

“These projects are highly beneficial to villagers in near and remote barangays because these provide them with some of their most basic needs such as water, electricity and structures,” Mendoza said, adding that the taxes paid by the people are being properly utilized to give them noteworthy projects. PNA

Courts release 90 Negros inmates to mark National Judgment Day

B STRUGGLING BUT STILL FIGHTING Nanay Rosa, 65, a cigarette vendor in Baclaran, was abandoned by her child so she continues to sell

cigarettes, her only means of livelihood. She said she sometimes sees her child walking by, but that she is ignored. “Mas mainam pa iyong ibang tao dito mas pamilya pa ang turing sa akin.” DENISSE JANE REMOLACIO

ACOLOD CITY—A total of 90 inmates in Negros Occidental were freed on Monday as part of the observance of the National Judgment Day and 40th Anniversary of the Office of the Court Administrator.

Under the program, about 160 cases were also disposed of by the Regional Trial Courts (RTCs) in the province.

Jasmine Penuela, legal researcher of RTC Branch 45, said in a media interview that the program is meant to unclog the cases pending in courts and also the overcrowded jails in Negros Occidental.

Jojene Marquez, 47, who was jailed for more than 10 years for illegal possession of firearms, said his release is an early Christmas gift for him and his family. PNA

3 Palawan seniors nominated to ‘7th Regional Ulirang Nakatatanda Awards’

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UERTO PRINCESA CITY— Three senior citizens from Palawan are nominated in the Seventh Regional Ulirang Nakatatanda Awards of the Department of Social Welfare and Development (DSWD).

This was confirmed on Wednesday by Helen Bundal of the Provincial Social Welfare and Development Office (PSWDO).

Bundal said nominated under the

Individual Category of the search are senior citizens Virginia J. Agpao and Benida O. Paala of Aborlan town, and Antonio T. Gorecho Sr. of the municipality of Bataraza—all in southern Palawan.

The three finalists, she said, underwent meticulous examination and verification by the Regional Interagency Committee led by the DSWD.

The PSWDO official in Palawan said there was a big chance that any of the three would win the award because of their admirable achievements.

Bundal said the annual award intends to salute and appreciate the contributions of the elderly to the development of Palawan and the Philippines as a whole.

More important, the award aims

to inspire the Filipino people to continue to value the elderly citizens and the contributions they can still deliver to their communities despite their age. It also strengthens the Filipinos’ respect and care for the senior citizens, who are an important part of what the Philippines is today.

The awarding ceremony for the Seventh Regional Ulirang Nakatatanda Awards will be on Novem-

ber 26 in Metro Manila. The winner will receive a plaque and an P8,000 cash prize.

It is being supported by the DSWD in partnership with the Coalition of Services for the Elderly Inc. (COSEI) that aims to give recognition and honor to the older people of society, who still have the capacity, capability and interest to help in bringing solutions to issues that happen in

communities, and to contribute to society’s general welfare.

The first award was given in 2009 in Calapan, Oriental Mindoro, under the initiative of the Regional Interagency Committee—Philippine Plan of Action for Senior Citizens (RIAC-PPASC).

In 2012, Anastacio Villapa, a resident of Bataraza, won the top award in the said search. PNA

news@businessmirror.com.ph

The Regions BusinessMirror

291 farmers get lands in the ARMM B M T. C Mindanao Bureau Chief

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AVAO CITY—Some 291 farmers are now the owners of the land they tilled for decades. On Thursday the Department of Agrarian Reform in the Autonomous Region in Muslim Mindanao (ARMM) handed out the individual Certificates of Land Ownership Award (CLOAs) to 70 agrarianreform beneficiaries (ARBs) from Basilan and 221 ARBs from Maguindanao.

The distributed CLOAs cover a total of 711 hectares of landholdings in the two provinces, with 154.5 hectares in Basilan and 556.5 hectares in Maguindanao. DAR-ARMM Secretary Amihilda Sangcopan said there were still 967 pending CLOAs in the region that cover more than 2,000 hectares of landholdings in the provinces of Sulu, Basilan, Lanao del Sur and Maguindanao.

Of this number, 481 CLOAs were readied for transmittal to the office of Gov. Mujiv Hataman.

She said the recent distribution of land-ownership titles were part of the ongoing distribution of the remaining landholdings of 112,290 hectares after the DAR-ARMM distributed 263,563 hectares to beneficiaries as of summer this year. She said the department has a target of 20,055 hectares of land this year. The remaining 92,235 hectares would be

distributed by 2016 and beyond, which followed the cleansing of land records last summer. She said the cleansing of the records of ARBs was followed with a validation process, including the reconciliation of the records in the regional office with those kept in its provincial offices.

The department sifted records in the regional office and in the provinces of Basilan and TawiTawi, and finished the process in June. She said that of the 7.8 million hectares of land in the country, 375,853 hectares are in the ARMM. These lands would be distributed to 68,087 farmer-beneficiaries in the region.

Records from the DAR-ARMM showed that many beneficiaries have been tillers of the land since they were still children, including one Datu Jan Utto, 35, from Datu Saudi in Maguindanao, who confirmed the profile of the beneficiaries.

“I have been a farmer since childhood and we have waited for this for so long,” he was quoted as saying in an ARMM news dispatch about the distribution of the land titles. The DARARMM said the CLOA “is a proof that a farmerbeneficiary has the right of land ownership.

Land covered by the DAR’s CLO cannot be sold, transferred or donated within 10 years upon awarding, except through hereditary succession, or if sold back to the state or to another qualified beneficiary within the 10-year period.”

Editor: Dionisio L. Pelayo • Monday, November 23, 2015

A9

₧40-B bank loan for 455-MW coal plant in Quezon final by year-end

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B L L

AN Buenaventura Power Ltd. Co. (SBPL), a joint venture of Manila Electric Co. (Meralco) PowerGen Corp. (MGen) and Thailand’s New Growth BV, is looking at the end of this year to finalize the funding deal for a P40-billion bank loan to partly finance the 455-megawatt (MW) coal power plant in Mauban, Quezon.

“ T he financial close is set within the last quarter of the year,” Meralco Chief Financial Officer Betty Siy-Yap said.

By financial close, the company expects to sign a financing scheme

with “a consortium of five banks,” Yap said earlier. The financial closure for the project was supposed to take place early on but Yap said SBPL was still finalizing the number of banks.

“For now, it’s five banks but we need to address one last item.

If we get that done, then that’s five. If the transaction is not done by the time of the signing, then it will be four banks,” Yap had said. She declined to identify the local banks “until we have finalized the deal.”

The loan, she added, will have a term of 12 years. MGen is the power-generation arm of Meralco.

New Growth BV is a wholly owned subsidiary of Electricity Generating Public Co. Ltd. of Thailand.

Meralco will source part of it s power requ i rement f rom SBPL. A power-supply agreement between SBPL and Meralco was earlier approved by the Energy Reg u lator y Commission. T he Mauban coal power project will serve as an expansion of the 460MW Quezon power plant, which started commercial operations in

2000. The existing plant serves the Luzon grid under a 25-year powersupply deal with Meralco.

SBPL has started work on plantsite preparation. Financial closing and actual construction would commence after. The financial closure is an essential component of the power project. MGen is also working to award an engineering, procurement and construction (EPC) contract.

The commercial operation of the so-called supercritical coal-fired power plant is expected within the first half of 2019, with the start of construction scheduled in the first half of next year.

“We are doing site preparation and by the first half, we will turn over to the EPC contractor,” Meralco SVP Angelito Lantin said.

The Meralco group is also keen on bringing in more major powergeneration projects.

A10 Monday, November 23, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Paris, Mali, Mindanao?

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he body count never stops.

In the past week the world has faced an armed attack in Paris, France, and now in the African country of Mali. The Paris massacre was reportedly planned and executed by members of the Islamic State in Iraq and Syria (ISIS). Credit for the siege and killings at the Radisson Blu Hotel in Bamako, Mali, has been claimed by Al Mourabitoun, an Islamist militant group, along with al-Qaeda in the Islamic Maghreb.

The perpetrators all have one undeniable common thread—they are Muslim.

Yes, it sickens and disturbs us to say that, but it is a fact. It is no different than to say that the Rohingya people, a Muslim minority group, have been the victims of violence at the hands of Rakhine Buddhists in Myanmar.

The murderers in France and Mali, among others, proclaim that they are following the tenets, and even the obligations, of their religion. Then we are barraged by intellectual discussions as to whether these people are “real” followers of Islam. We are not religious scholars, and, frankly, do not care if their motivations and actions are justified or not by their religious beliefs. The families of the slain may not care either, as they bury their dead.

We are also told that the killers may have legitimate grievances that pushed them to their actions. We are given nearly the same kind of justification when we see a motorist attack and beat a traffic enforcer, or shoots someone in a fit of “road rage” when two cars are involved in an accident. There always can be found a rationalization for any action, no matter how twisted that explanation might be.

A prominent government official, in the wake of the Paris killings, talked about the Crusades, the first of which happening in 1095, as a comparison.

But we, in the 21st century, do not care about what happened 900 years ago, any more than we thought about the atrocities under American colonial rule when we greeted the US president last week.

What we do care about is that late last year, some 100 local Muslims in Marawi City at the Masjid Islamic Center pledged allegiance, or bai’ah, to the ISIS. We also care that last week masked gunmen released a video on Facebook threatening attacks on innocent civilians and to pursue an Islamic caliphate in Mindanao. As reported by the Mindanao Examiner newspaper, “The gunmen, with the ISIS flags behind them, spoke lengthily in fluent Tagalog, mimicking ISIS-style threats made against the United States, Britain and France,” and now against targets in Mindanao.

There has been one common principle and belief to all societies through the 5,000 years of human written history. Bad people who do bad things, whatever their inspiration, are not to be tolerated, and must be stopped.

Apec: A resounding success for the Philippines Atty. Jose Ferdinand M. Rojas II

RISING SUN

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he Asia-Pacific Economic Cooperation (Apec) summit held in Manila last week led to many gains for the country, one of which was the chance to network with the Apec memberheads of state to foster cooperation and partnership toward economic growth, and national and regional security.

In his opening remarks, President Aquino emphasized that the “Philippines hosts Apec with a people-centered agenda that embraces all segments of society as invaluable participants in a growth that is holistic.”

It is this inclusive growth that “creates jobs, sends children to school, puts food on the table, raises standards of living, protects the environment, fosters creativity and innovation, and levels the playing field.”

In order to achieve this kind of growth, cooperation with other nations is necessary. Among the positive developments of the summit were the signing of agreements between the Philippines and other Apec membereconomies: with Chile, on disaster risk reduction and management and the study of free trade; with Canada, for the Philippines to be one of the priority recipients of official development assistance; and with Mexico, on tourism cooperation, the fight against prohibited drugs, and the avoidance of double taxation.

Also inked by President Aquino were agreements with Russia, to enhance trade and fight prohibited drug trafficking; with Papua New Guinea, for climate-change cooperation and the improvement of trade; and with Vietnam, for a strategic maritime and defense partnership.

For its part, the US reiterated its commitment to a stronger defense partnership and to this end announced the transfer of two ships to the Philippine Navy— one, a research vessel to help map Philippine territorial waters; and a US Coast Guard cutter, for longendurance patrols.

The US will also be giving the Philippines the most support among countries in the region—$79 million—to beef up maritime security.

One of the highlights of the event was when US President Barack Obama opted to serve as facilitator of a conversation on climate change and inclusive growth with cyber marketplace Alibaba. com founder Jack Ma and engineer Aisa Mijeno.

PPP an election issue

By Alberto C. Agra

PPP Lead

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tarting today, the BusinessMirror will be featuring a regular column dedicated to public-private partnerships (PPPs). Every Monday, our returning columnist, Atty. Alberto Agra, will share with readers his insights, knowledge and expertise, as well as pose issues and raise challenges on PPPs, at the national and local government, and state-owned corporate levels. PPP policies, value drivers, projects, laws, policies and regulations, and the impact and expected outcome of PPPs will be scrutinized and brought to the surface.

“PPP Lead,” the title of Atty.

Agra’s column, shall be part of the newspaper’s initiative to promote greater understanding of PPPs and to build a PPP learning ecology. The Lead underscores the imperative for leadership in this partnership arrangement. The column will be the platform for the BusinessMirror’s blog on the subject intended to encourage and sustain an interactive discussion of PPP concerns.

We, not just the signatories to

a PPP contract, have a stake in PPPs. PPPs affect our lives and are designed to improve the quality of life. PPP, therefore, is not just for government officials, the elite, the business sector, CEOs, lawyers and bankers. We all bear the burden of any government project. We all are accountable and responsible. Our columnist will lead us into a deepening of our involvement in PPPs. Ever y column will end with or be accompanied b y a “ PPP

Mijeno, after an immersion trip to Kalinga province, developed the technology for a lamp that runs on saltwater. She admitted that her problem was scaling up production of her lamps and distributing them.

President Obama suggested that Mijeno connect with Ma to market the lamp widely. After the talk, Ma offered to mentor Mejino in entrepreneurship. Thanks to President Obama for showing that synergies not only between countries, but also among individuals, can be established and developed; sometimes all it takes is the right word to the right person at the right time.

The Apec summit also gave a chance for Filipinos to shine— among them, furniture designer Kenneth Cobonpue; fashion designer Paul Cabral, who made the barong Tagalog worn by the heads of state; world-famous pianist Cecile Licad; singers Charice, Gary Valenciano and Martin Nievera; international stars apl.de.ap, Arnel Pineda, Jessica Sanchez and Jed Madela; and shadow-play performers El Gamma Penumbra.

The official multicourse dinner was prepared by Chef Margarita Fores and restaurateur Glenda Barretto.

It was my honor to be invited to the state dinner for Mexican President Enrique Peña Nieto, at which Jett Pangan, Radha, Pops Fernandez, Darren Espanto and Juan Karlos Labajo performed.

It was an unforgettable week, and one that we can be truly proud of, a time when Filipinos worked

Lear n”— i nfo r m a t i o n o r i nfo graphics about PPP. This is part of the PPP learning-ecology initiative. PPPs must be popularized and understood by all.

Atty. Agra is a certified PPP and regulation specialist, a professor of laws teaching PPP Law, Local Government Law, Administrative Law, Law on Public Officers and Election Law at the Ateneo Law School. He also teaches Leadership in the Public Service at the Ateneo School of Government, where he is a PhD candidate on Leadership Studies. He developed a Model PPP Ordinance, which has already been referred to by 50 local governments, to date. He regularly conducts trainings and briefings on PPP for officials of government, private sector and civil-society organizations. He has, in fact, conducted 140 seminars on PPPs since 2011.

He was a former public servant, having ser ved as act ing secretar y of justice, acting solicitor general and government cor porate counsel.

together to show the world our unique brand of hospitality and facilitate the dialogue between Apec member-nations for the benefit of all.

As President Aquino said, we are all working for growth “that balances the pressing needs of the present with our shared mission of leaving behind a region and a world that is better than we found it.”

Congratulations to President Aquino, his staff, and all the government agencies and private entities that partnered together to make Apec Manila a resounding success for the country! To our Apec visitors, Mabuhay! nnn

The Philippine Charity Sweepstakes Office (PCSO) opened a new branch office at the Municipal Hall of Bayombong, Nueva Vizcaya, on November 16.

With me on the occasion were fellow PCSO Director Atty. Mabel V. Mamba, Nueva Vizcaya Rep. Carlos Padilla, Bayombong Mayor Ramon Cabauatan Jr., PCSO Assistant General Manager for Branch Operations Remeliza Gabuyo, PCSO Nueva Ecija Branch Manager Byron Joseph Bumanglag, and local government unit and PCSO officials and staff.

This brings to 48 the number of branches in the agency’s nationwide network. Another branch will be opened next month in Mati, Davao Oriental. nnn

Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

E

lections are not just about candidates and how to place them in office. Elections are much more than citizenship issues, the impact of pending cases, the substitution of candidates, the health of candidates, and their leadership traits, past, lineage and affiliation with incumbents.

The electorate must be able to ask and be convincingly satisfied with the answers of candidates and incumbents r unning for re-election about partnership arrangements between government and the private sector or business groups, and the involvement of civil society in these schemes. Public-private partnerships, or PPPs or P3, is an election issue.

This columnist for one, as an ordinary citizen, a voter, an enduser of PPPs, and a taxpayer who ultimately pays for government payments and subsidies, like everybody else, would want to know See “PPP,” A11

Opinion BusinessMirror

opinion@businessmirror.com.ph

A thief in the family

Putting emphasis on disclosures: Accounting estimates and judgments Filbert Tsai

Atty. Lorna Patajo-Kapunan

Q

legally speaking

uite a number of the provisions of the Revised Penal Code (RPC) need revisiting. Of course, there is that provision which prescribes a ridiculous difference in the degree of difficulty in proving of essentially the same crime, particularly adultery and concubinage. The difference in such case lies in the person committing the crime—whether it is the husband or the wife. No, this article is not about stealing a spouse. This is about the story of Manolo and Fredo, and the workings of Article 322 of the RPC creating exemption from criminal liability for certain crimes committed by certain persons.

Manolo met Fredo through the latter’s sister, Baba, who he was then dating. The two soon developed a bond of brothers. Manolo, Baba and Fredo were inseparable, enjoying their youth. Eventually, Manolo and Baba married. Not wanting to end the party too soon, Manolo and Baba decided to invite Fredo to live with them in their conjugal home, with Fredo only having to contribute to the monthly household expenses.

The setup was perfect, until parenthood took over Manolo and Baba’s lives. Fredo, who they saw less and less of, turned to gambling. He started missing his monthly contributions, and this eventually created a strain in the household, like money matters almost always do. Engulfed in gambling debts, Fredo thought it would be perfectly fine to sneak into the spouses’ room and take Manolo’s Rolex. His grand plan was to pawn the watch, go to the casino, use and profit from the money, secure the watch from the pawnshop and put it back when he got it, like nothing happened. It was a perfect plan and it was going smoothly, until he lost the money within an hour and never got the watch back. The crime? Theft.

There would have been no issue, if theft were simply the case here.

The pertinent provision in this case is that which grants Fredo exemption from criminal prosecution, particularly Article 322 of the RPC. Said provision provides that “[n] o criminal, but only civil, liability shall result from the commission of the crime of theft, swindling, or malicious mischief committed or caused mutually by the following persons: 1) spouses, ascendants and descendants, or relatives by affinity in the same line; 2) the widowed spouse with respect to the property which belonged to the deceased spouse before the same shall have passed into the possession of another; and 3)

brothers and sisters and brothersin-law and sisters-in-law, if living together.” The reason behind this, they say, is to preserve family harmony and solidarity.

My qualm here is that this makes no sense at all, with all due respect.

First, there is a crime to curb. Exempting all ates, kuyas, bayaws from criminal liability does the exact opposite.

It invites those who are so minded to commit the crime against the abovelisted relatives. In this respect, they are untouchable, anyway. A crime is committed, and it should not matter who the perpetrator is. One will even note, the fact that the perpetrator is an ate, kuya, bayaw makes the act even more appalling, and that the law excuses their criminal liability is, in my opinion, a travesty of justice.

I do understand that the family is the most basic of institutions, and that the state will do almost everything to preserve it. Thus, the rationale behind the exemption from criminal liability may be a viable argument. However, this loses value in the face of the fact that once a crime is committed, in this case against a family member, there is no more family harmony and solidarity to speak of. There is nothing left to preserve. Also, if one were to attempt to preserve family harmony and solidarity, there should be no reason for civil liability to attach.

The reality is that any case between family members—be it criminal or civil—strains their relations.

In conclusion, the crime must be curbed. The state has every interest to see that this is achieved. If an exception is to be made to save family harmony and solidarity, if this has more value over curbing a crime, it must be of both civil and criminal liabilities—otherwise, the objective is not achieved.

Please e-mail me at lpkapunan@ kapunanlaw.com for any comments.

PPP . .Continued . from A10 if our candidates understand what a PPP is and what it is not.

Do the candidates advocate a broad and liberal view of PPPs, or do they believe that the build-operate-and-transfer law is the only PPP law in the Philippines?

Will they pursue PPP as a development and change strategy, or just pay lip service to this popular practice? What would be their justifications for choosing the PPP route as against other government initiatives? Will they, before pursuing a particular PPP project, assess the cultural readiness and ethical standing of government agencies that will enter into PPPs? If so, how do they intend to accomplish these?

What projects do they intend to prioritize under this strategy? Will they push for PPPs on social services and infrastructure, like socialized housing, health care, education and agriculture, among others?

Will our new president, governors and mayors cancel PPP contracts made during the past administrations, allow changes in policies midstream, and permit variations in interpretations? Will they condone the evils of PPPs— corruption, clientism, capture, concealment, conflict of interest and complacency? What will they do about these? How do they intend to “future-proof” their own PPPs, if and when elected?

Do our national candidates trust local governments and capacitate them to pursue their own PPP projects with minimal intervention?

Will they issue executive orders clipping the discretion and prerogatives of local officials?

Will they impose layers of approvals before local governments can award PPP contracts and

Monday, November 23, 2015 A11

DEBIT CREDIT

T

he key risk in the accounting profession is the misuse of accounting judgments and estimates, which are either too conservative or too aggressive. Currently, accounting judgments and estimates are not clearly defined, apart from the requirement of Paragraph 122 of the International Accounting Standards (IAS) 1, which requires entities to disclose accounting judgments distinct from accounting estimates applied.

While it is a controversial issue, it is clear that judgments and estimates are intertwined, such that both are subjective and have significant financial effect.

In my other article regarding the accounting scandal currently faced by Toshiba in Japan, it is clear that accounting judgments and estimates have been exercised too aggressively, resulting to significant misstatement in its financial statements. As of this writing, Toshiba still estimates a downward adjustment of $1.22 billion (accumulated misstatement from 2008 to present) as a result of its previously aggressive accounting stance.

Current accounting standards do not have explicit prohibition against management’s application of judgments and estimates.

Rather, the application of the current principles-based accounting standards provides a freer exercise of judgment and estimates, considering that financial statements should reflect not just the past transaction but the present status of the company. We have to agree that, without accounting judgments and estimates, financial statements would hardly be relevant to users. For the information of those not in the accounting profession, the purpose of the financial statement is to present a company’s financial position (as of the reporting date); financial performance (for the reporting period); and cash flows (for the reporting period). Therefore, the exercise of judgments and estimates in accounting is to provide a better picture of the financial position and performance of a company at a given point in time.

Accounting judgments and estimates are usually exercised to determine fair valuation, and to determine percentage of completion or work done. In essence, accounting judgments and estimates, when applied within the context of responsible accounting, would help in producing more

proceed with projects? Will our new governors and mayors take initiative, be innovative, think outside the box, take risks, challenge any centralist curtailment of powers in connection with PPPs, in particular, and governance, in general?

How will they address the perception or criticism that PPPs are just “PowerPoint Presentations,” “Perpetually Pending Projects” or “Pahirap sa Pamilyang Pinoy?” Do they plan to expand the privatesector base participating in PPPs? How will they increase the PPP appetite and ready the market?

Will they foster a climate of dependency on consultants, outsider support, or will they promote a sustainable technology transfer and make insiders PPP specialists? Will they enhance the role of the PPP Center and decentralize its functions?

How will they convince the general public that they can be trusted insofar as gearing PPPs for the general welfare and common good? Do they espouse social accountability, and will they institutionally allow civil-society engagement in the whole cycle of PPPs? Will they give nongovernment and people’s organizations free access to PPP contracts and information? Will they support the establishment of a PPP Watch?

Since PPPs affect our lives and should improve the quality of our lives, we must all know the answers to these questions. It is no longer enough that our candidates exhort “inclusive growth, development, peace, general welfare. And good governance.” We need specifics. We need to know their PPP platform. We must make sure that whoever wins will be held to their answers and made accountable for them. We need their answers now.

PPPs, while an election issue, is also a governance issue. It poses a leadership challenge.

PPP Learn No. 1–Definition of a PPP

A PPP is “a contractual arrangement between

relevant financial information and more accurate reporting of the company’s financial position and performance. As the adage explains, with great power comes great responsibility.

Management is in a unique position to put these judgments and estimates into play, and within the context and parameters allowed by the current accounting standards.

As in the case of most accounting scandals, the fault lies not in falsified journal entries, but, rather, in extreme exercise of aggressive accounting stance.

A big question is now asked about the role of the auditor in these circumstances. Frequently, when these accounting scandals erupt, the first point of blame will be on the auditors who are expected to provide the users of the financial statements assurance that the financial statements are free from errors. As most readers of my blog are in the accounting profession, it is notable that the above notion is wrong for two reasons: 1. Assurance provided by an audit is only reasonable assurance; and 2. An audit does not provide assurance that the financial statements are free from error, rather, simply free from material error or misstatement.

These two points are accepted in the profession, as far as the legality of the issue is concerned, but the users of the financial statements clearly believe that auditors should have spotted these errors before branding the financial statements as audited. This is clearly an issue that needs to be addressed in the long run, but is not expected to fully reduce the blame on the auditors once an accounting scandal erupts. Auditors cannot be excused from blame in accounting scandals, as most of

the government and the private sector to deliver public infrastructure and/or public services.”

(Midterm Update, Philippine Development Plan 2011-2016, National Economic and Development Authority, 2014) A PPP “can be broadly defined as a contractual agreement between the government and a private firm targeted toward financing, designing, implementing and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties—minimizing cost while realizing project-developmental objectives. Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment.” (Official web site of the PPP Center) At the policy level, a PPP is “a developmental, innovative and partnership strategy aimed at promoting the general welfare and inclusive growth. PPP is a collaboration between a public entity and the private-sector proponent, underscoring their collective indispensability in socioeconomic development and governance, with the active involvement of the civil society, for the implementation of infrastructure, developmental and/or social welfare-related projects and facilities. At the project level, a PPP is a legally enforceable contract where each party assumes specified functions, bears certain risks, provides contribution or renders some obligation, and earns benefits and revenues from the PPP arrangement.” (Proposed Definition, Alberto Agra) How come there is more than one definition of a PPP? The columnist will offer an answer in his next column.

For your own answers, answers to the candidates’ questions, comments on this column, please e-mail the columnist at alberto.c.agra@gmail.com.

these resulted from significant aggressive accounting estimates and judgments, which should have been clearly disclosed in the financial statements. Indeed, this constitutes mayhem in the accounting profession.

Accounting standards currently require disclosure of accounting estimates and judgments applied in coming up with the financial statements, but provide only limited instances wherein these are required. Currently, International Financial Reporting Standards (IFRS) require detailed disclosures on the following accounting judgments and estimates: 1. Those involving financial instruments (IFRS 7).

2. Those involving share-based payments, wherein a valuation model is used (IFRS 2).

3. Those involving defined benefit plans (IAS 19).

4. Those involving fair-value measurements (IFRS 13).

The above items are those involving more complex accounting that requires detailed disclosures on the accounting estimates and judgments applied. These disclosures provide sensitivity analysis for users of the financial statements and insights as to the implication of a certain percentage movement in the underlying estimate or data. While the above disclosure requirements provide a tremendous insight to the users of the financial statements, they are very limited in contrast to the number of items that require judgments or estimates to be applied.

The following are examples where accounting judgement or estimate is applied: n Classification of a financial instrument as either trading security or available-for-sale; n Estimating percentage of completion for long-term revenue contracts; n Est imat ing impa ir ment losses for financial and nonfinancial assets; and n Estimating useful lives of finite life assets; and n Estimating value-in-use.

Those are just some of the examples where accounting estimates and judgments are applied, which could have potentially large impact on profit or loss. Current practice in the accounting profession for these items is just to insert a generic (boilerplate) narrative disclosure, either in the accounting-policy section or in the accounting judgment, and estimates section of the financial statements without any

reference to potential fluctuations resulting from varying levels of estimates.

International Standards on Auditing (ISA) 540—Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures—currently provide a catch-all requirement for the audit of accounting estimates and the related disclosures.

After considering the current auditing standards, it all refers back to the requirement for auditors to ensure compliance with the disclosure requirements of the accounting standards.

While auditors may disagree with management on the lack of disclosures as to the accounting judgments and estimates, which the auditors assessed to be significant, management is still in a unique position to determine which accounting judgments and estimates are material enough to warrant a disclosure in the financial statements.

In these situations, auditors are not in a position to further push a disclosure to be placed in the financial statements, as these disclosures are covered by management’s judgment, as well. The dilemma is a circular risk, which ends up with the disclosures being w it hin t he control of management.

So, do I mean that auditors can’t do anything and just have to deal with it? Not necessarily. The International Auditing and Assurance Standards Board is issuing an amendment to ISA 700 (among others) to update the previous simple auditor’s report, which does not provide any additional information as to the audit issues encountered and key accounting disclosures that auditors would like to highlight to the users of the financial statements.

Effective 2016, auditors are required to provide users of the financial statements, a commentary of the Key Audit Matters, aside from the standard audit opinion issued.

Is the game changing? Well, at least some balls are rolling in the right direction now.

Filbert Tsai is a financial accounting advisor y Ser vices executive in the UK, dealing with GA AP conversions and transaction accounting. He specializes in dealing with complex accounting and financial transactions in the power and utilities sector in Europe. He can be contacted through e-mail: filbert.tsai@gmail.com.

International Alert is engaged in peacebuilding MAIL

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

This refers to the BusinessMirror’s November 16 news story, “WB: CPP-NPA netted P1.6-billion revolutionary tax in East Mindanao,” by Manuel Cayon.

In the second paragraph, International Alert is described as “a London-based private organization helping foreign and domestic companies operate under socially and environmentally acceptable parameters in their host countries, including the Philippines.”

This is misleading. International Alert is a non-government organization engaged in peacebuilding.

Based in London, it has an office

in the Philippines that conducts research and advocacy, facilitates dialogues, and undertakes training.

International Alert-Philippines Programme also supports the peace process between the government and the Moro Islamic Liberation Front and the Communist Party of the Philippines-New People’s Army (CPP-NPA).

It was in the context of the collapse of the GPH-CPP-NPA peace negotiations that International Alert Philippines Country Manager Francisco J. Lara Jr. brought attention to the fact that P1.3 billion in so-called revolutionary taxes was collected by the NPA in Eastern Mindanao in 2014 alone.

International Alert is calling for the reopening of peace talks. That the 46-year-old communist insurgency is causing incalculable economic and human losses provides more than sufficient reason to resume peace negotiations, if not by the current administration, then the next one.

Judy T. Gulane Communication specialist International Alert Philippines Programme

2nd Front Page BusinessMirror

A12 Monday, November 23, 2015

www.businessmirror.com.ph

‘Asia Pacific needs to invest more in digital technologies’

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By Lorenz S. Marasigan

he fast-paced expansion of the so-called digital economy should help push developing countries, like the Philippines, on to higher grounds, according to the top honchos of companies in Asia and the Pacific.

And yet, much remains to be done in developing quality infrastructure, both soft and hard, that deliver services at optimum levels. The latest PricewaterhouseCooper International Ltd. (PwC) survey among 800 chief executives of companies in the Asia-Pacific Economic Cooperation (Apec) showed that company bigwigs see broadband connectivity as a priority need to enhance growth prospects in the region.

Of the chief executives surveyed, the highest—at 28 percent —went to broadband connectivity, compared to new transport and maritime corridors, trade facilitation agreements and others.

PwC Intl. Ltd. Chairman Dennis Nally reported on the findings of their Apec CEO survey as “reflective of a region in transition from intra-Apec trade outpacing global trade in 2016 to digital technology streamlining

manufacturing and high-quality education increasing the ranks of the middle class.”

Globe General Counsel Froilan M. Castelo, while citing the latest Groupe Speciale Mobile (GSMA) forecast on the harmonization of the 700 and 800 megahertz (MHz) bands, said gross domestic product (GDP) across the region could spike up should governments and their respective private sectors develop key policies in the utilization of assets—both soft and hard.

“Estimates on the impact on the gross domestic product across Asia Pacific of the 700 MHz band alone, as allocated to mobile, is a tenfold increase to $1 trillion by 2020,” he said.

GSMA, an international trade body for telecommunications advocacy representing network operators that use the GSM technology for their networks, said the Philip-

pines was one of only two countries in the world with major issues that lie in the way of the adoption of the Asia Pacific Telecommunity 700 Band Plan.

One such issue is the under-utilized 700 MHz band, currently held by companies under San Miguel Corp. The trade body has asked the National Telecommunications Commission (NTC) to release the 700 MHz spectrum and its proportionate distribution for use by Philippine telcos, but failed to convince the regulators.

All the major Philippine telcoservice providers urge the NTC to give them access to the 700 MHz band, as this will allow for the provision of broadband and data services at faster speeds and at least cost to everyone.

“The maximized use of the 700 MHz spectrum promises to be one of the driving forces in instituting broadband connectivity in conformity with the Apec’s growth directions by further developing regional economic cooperation and integration,” Castelo said.

Ray C. Espinosa, who heads Philippine Long Distance Telephone Co.’s (PLDT) regulatory affairs and policies office, said reclaiming the underutilized frequency and auctioning it off to incumbent operators is the best option for the government if it wants to further develop the digital economy in the country.

See “Digital economy,” A2