BusinessMirror January 25, 2016

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A broader look at today’s business n

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ONATING to politicians can get you in trouble.

Teresita Herbosa, chairman of the Securities and Exchange Commission (SEC), has warned corporations not to give any contribution, whether in money or in kind, to any political candidate, as violators may either be penalized and face administrative, and even criminal, charges.

INSIDE

WILLIAMS, SHARAPOVA TO MEET IN AUSTRALIAN OPEN QF

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TUMULTUOUS FIRST YEAR FOR SAUDI KING SALMAN’S ‘DECISIVE’ REIGN

Herbosa sa id compa n ies a re prohibited from making any donation or contribution to support any partisan political activity or finance any campaign expenditures of election candidates.

She cited the Corporation Code of the Philippines, the law that governs all SECregistered corporations and entities.

“That [prohibition] is a basic provision in the Corporation Code. No corporation—whether stock or nonstock, domestic or foreign, incorporated foundations, NGOs [non-governmental organizations]—can engage in partisan political activities.”

The campaign period for national candidates seeking the post of president, vice president, senators, congressmen and party-lists officially

starts on February 9, or 90 days prior to the election date on May 9. The campaign period for local candidates will begin on March 25, or 45 days before the national election.

“Depending on the gravity of the violation, whether there is fraud. If [there’s] no fraud [involved], it could be a mere imposition of a fine [as a penalty],” Herbosa said. “But should it (violation] be committed through or with fraud, suspension or even revocation (of franchise or license to operate) shall be imposed upon them [companies] for being fraudulent.”

When the penalty of suspension is imposed, the company cannot operate for a certain period of time. In case of revocation, the corporation will be ordered dissolved.

Should the violation be committed through or with fraud, suspension or even revocation of franchise or license to operate shall be imposed upon these companies for being fraudulent.”

—Herbosa

PREDICTIONS FOR 2016

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Embassy of Pakistan

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HE recent attack on Bacha Khan University in Pakistan is a chilling reminder of the gruesome attack on a school in Peshawar, Pakistan, in December 2014, where 150 students and staff members were brutally killed by the militants. In the recent incident, the militants killed 21 students and wounded 50 others. The attack took place at around 9:30 a.m., when the militants, taking advantage of the dense winter fog, scaled the rear wall of the Bacha Khan University in Charsadda. Timely action by the law-enforcement agencies helped neutralize the militants, who could have killed more innocent students.

Coffee farmers prepare to compete in SE Asia B M G P

Coffee imported by the Philippines yearly

PHL LAGS BEHIND PEERS INTELCO INDUSTRY

“For example, here is this company which already made some contribution [to a candidate]. And then, its directors or officers concealed [such] in their financial statement. Then, it becomes a submission of a false financial statement, making the act fraudulent,” Herbosa explained.

She said the regulators are aware some companies were organized as mere dummies or flow-through entity for raising and disbursement of campaign funds. In October, or right before the deadline for the filing of

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45,000 MT

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Cutting the tentacles of terrorism

Ambassador Safdar Hayat PERSPECTIVE

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SEC to firms: Don’t donate to politicians

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SPORTS

Monday, January 25, 2016 Vol. 11 No. 109

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UALITY and value-adding will give Philippine coffee farmers an edge in Southeast Asia, where commodities are expected to become cheaper as an integrated Asean dismantles tariffs on many products, including coffee, according to an industry group.

This year Philippine Coffee Board

PESO EXCHANGE RATES n US 47.8680

(PCB) Cochairman Pacita U. Juan told the BM farmers have set their sights on further improving their skills in the cultivation and processing of quality coffee beans.

Juan said these efforts are expected to increase yield and make coffee crops “superior” in quality.

Stakeholders in the coffee industry have rolled out various initiatives in view of the Asean economic integra-

tion, which would make it easier for traders to just buy coffee from other Southeast Asian countries.

Currently the Philippines imports about 45,000 metric tons (MT) of coffee to plug the shortfall in domestic production. Annual domestic demand— estimated at 70,000 MT—continues to outpace yearly local output pegged at 25,000 MT, data from the Philippine

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First of three parts

HREATENED by the prospective entry of a new core player in the duopolistic telecommunications market, the two largest mobile-services providers in the Philippines were compelled finally to lower the costs of their services, spend more to modernize their networks and further expand capacity last year.

This development, according to experts and industry observers, was the apex of events in the telecommunications business in 2015, the year which also saw a marked increase in the adoption and migration by businesses and households to the digital space.

With the announcement of Australian telecommunications giant Telstra Corp. Ltd. of a possible partnership with Filipino conglomerate San Miguel Corp., Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom Inc. were seen to have intensified their efforts of protecting their market share to the point of lowering their services prices and upgrading them.

“The year 2015 saw how the potential entry of a new telco shook things up in the local telecom industry,” Mary Grace Mirandilla-Santos, an independent researcher on information C  A

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n JAPAN 0.4064 n UK 68.1018 n HK 6.1250 n CHINA 7.2751 n SINGAPORE 33.4250 n AUSTRALIA 33.3250 n EU 52.0804 n SAUDI ARABIA 12.7546

Source: BSP (22 January 2016 )

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PREDICTIONS FOR2016

PHL lags behind peers in telco industry C  A

and communications technology and telecommunications policies, said. “This will probably intensify in 2016, as the incumbents telcos use all means to block competition.”

The local telcos were also seen accelerating the migration to the digital arena, with products and services that capitalize on large opportunities presented by the digital economy introduced last year.

Hence, consumers were able to enjoy more affordable Internet services in 2015. This was true for both postpaid and prepaid customers of the competing telcos.

Research and analyses conducted by information and communications-technology experts noted that the digital shift was inevitable as services ranging from watching videos, listening to music, hailing rides, down to paying bills start to go mobile in earnest.

The Internet, thus, presents a wide array of opportunities for both established and budding companies. In the Philippines almost half of its 100 million population have access to broadband services, according to data from the International Telecommunications Union.

In the race to claim leadership in the digital space, the two listed telecommunications companies broke capital spending records in 2015 with the largest telco in the country earmarking P43 billion, even as its competitor spent roughly P36 billion to expand and feed data-hungry Filipinos.

This helped widen Internet access in the Philippines. In 2015 Internet penetration stood nearly 50 percent, thanks to the introduction of sachet mobile Internet services and budget-

friendly smartphones.

Data hungry Filipinos

ACCESS to the Inter net w ill continue to rise in the coming years, the United Nations specialized agency for information and communication technologies said, as countries worldwide see the vast opportunities that the Internet presents.

Filipinos have been portrayed as hungry for mobile data, the Philippines being one of those countries with the most social-media users.

Telcos, in seizing this opportunity, offered free access to social-networking sites such as Facebook, Twitter and Instagram. They even give free access to the Internet to their subscribers.

“The hunger for data will continue to grow more and more throughout the years. Particularly for 2016, data requirements will likely grow due to new content the telcos launched last year,” National Telecommunications Commission Deputy Commissioner Edgardo V. Cabarios said. “Now, you can watch videos-on-demand, listen to music, pay bills and hail taxis on your mobile phone. Now, everything is done digitally.”

The two major players launched digital initiatives, establishing new partnerships and making new investments in order to bring new, innovative services to the Philippines and other markets in the region.

For instance, PLDT invested in iflix, a Malaysian Internet television service provider, and brought it to the Philippines and helped it become a leader in the country.

Smart Communications Inc. a l so pa r t nered w it h lead i ng global tech companies, like Uber and Airbnb, to enhance their

services menu here with mobile and fixed-Internet connectivity.

The telco group of businessman Manuel V. Pangilinan also invested in American tech companies Phunware and Hopscotch, and is working toward offering their mobile customer engagement solutions to companies in the Philippines and elsewhere in the region.

On the other hand, Globe invested in HOOQ, also an Internet television-service provider, partnered with ride-hailing application developer GrabTaxi, and collaborated with Disney for more content.

With this, Internet-based services are expected to push the local telecommunications market further and higher.

“The data business will continue to be stronger. You will see more content partnerships this year,” Cabarios said. Globe Spokesman Yolanda C. Crisanto and PLDT Spokesman Ramon R. Isberto agreed with the regulator, saying the revenue mix of the competing companies are now dominated by the broadband segments.

“In 2016 telcos will continue to introduce more digital services —developed through internal innovation, through partnerships and investments. We expect to see further gains in the deployment of our mobile payments and financialtechnology solutions,” Isberto said.

“Such innovations are being coupled with sustained investments in our networks, particularly in the data components of our networks in order to support the rapidly growing data traffic.”

For her part, Crisanto said the ever-changing lifestyle of Filipinos—brought about by advances

in technology and the expansion of the local economy—will be a key consideration of her company in offering digital services.

“Today’s lifestyle has changed and innovations around mobile apps continue to grow for a variety of uses, providing consumers with a greater sense of empowerment. We believe that increased adoption to smartphones, especially those in the provinces, will drive data usage and as customers become more engaged, they depend on their mobile devices to enrich their lives. We see this happening with rich content, such as video on-demand, gaming and music streaming,” she said.

Swedish multinational communication technology and services provider Ericsson has predicted that smartphone subscription penetration in the Philippines will reach the 70-percent mark by 2018. Four out of 10 Filipinos now own a smartphone or two, industry data show.

Cabarios also said micro, small and medium enterprises—even larger ones—are similarly interested in the idea of having a digitally enabled company. Both telcos are currently handling the Internet-based solutions of several Filipino and multinational firms here in the Philippines.

Digitization to affect many industries INTERNATIONAL Data Corp. (IDC) Philippines Country Head Jubert Daniel Alberto said companies will likely adopt the digital shift, underscoring its importance in driving business growth for both enterprises and small- and medium-sized enterprises (SMEs). He said businesses

in the Philippines need to transform into digitally led organizations to capture value-producing opportunities, pursue new revenue streams and change an existing business model.

“Companies in the Philippines that do not start a digital transformation initiative will find themselves struggling to respond to changing market demands and competitive pressures. Digitalization has been heightening industry competition as it paves the way for business-process excellence and new monetization and business models,” Alberto said.

He added: “Given increasing industry disruptions brought about by digitalization, it is high time for Philippine enterprises and SMEs to make the move into digital transformation to help them scale up in leadership, omni-experience, information, operating models and worksource transformation.”

While sectors, such as banking, transportation and media, have already started migrating to the digital space; industries, such as agriculture, agribusiness and resource industries, are seen to start adopting to the shift.

“The introduction of new information and communication technologies in these industries could make these industries more sustainable as it transforms the businesses and drive more organizations to pursue innovation-centric projects with information and communication technologies at their core,” IDC Philippines analyst Alon Anthony D. Rejano explained.

Hence, Cabarios said, the telecommunications industry in the Philippines will help drive the

Coffee farmers prepare to compete in SE Asia C  A

Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) showed.

Juan said imports could increase in the coming years as the Asean free-trade agreement, which abolished tariffs on many farm products, would make it easier to ship coffee into the country.

The Philippines used to rank as the fourth-largest exporter of coffee in the world up until the second half of the 1800s, the PCAARRD said. Also, Prof.

Carmen Lagman of the De La Salle University (DLSU) said the Philippines used to export $100 million worth of coffee yearly before the 1980s. Free trade, which allowed cheaper imports to flood the local market, made it difficult for coffee farmers to compete and survive.

Experts believe that Philippine coffee has a competitive edge compared to those produced in other countries. According to the Department of Science and Technology (DOST), the Philippines and other major producers such as Vietnam are in the socalled coffee belt.

Philippine coffee farms, however,

continue to experience low productivity.

The DOST said this is due to inefficient farm-production practices, old coffee trees, incidence of pests and diseases, poor postharvest facilities and farmers shifting to other crops.

To increase productivity and improve coffee quality, the DOST suggested the distribution of good quality planting materials, expansion of coffee-production areas and the implementation of “appropriate coffee management regimes.”

The PCB, for its part, said adding value to local coffee products would improve the income of farmers and entice them to plant coffee.

“If you can’t compete in terms of volume, you can compete in terms of quality and value-added features,” Juan added.

For one, she said coffee is grown organically in the country, as most farmers cannot afford to buy chemical fertilizers and pesticides.

The group trains farmers on how to properly plant and process high-quality coffee products. This year, the PCB said there will be “numerous” improvements in farmers’ techniques for the production of better quality coffee, as more farmers

agree to undergo training.

Farmers are taught that coffee beans should be picked only when it’s ripe, and should undergo a washing process. This, she said, will increase the buying price of the coffee.

“Now we’re telling [the farmers] there are people willing to spend P100 to P120 per kilogram for robusta, as compared to the normal price of P80 per kg. There are also people paying premium price for washed coffee,” Juan said.

Farmers will also be trained to use organic fertilizer, which will help them boost coffee yields. This is expected to translate into higher revenues for farmers.

The PCB is involved in efforts to increase the number of coffee trees in the country. For instance, in Old Panamao, Sulu, the 300 members of the People’s Alliance for Progress cooperative are targeting to plant an additional 2 million coffee trees by 2020.

These people, Juan said, did not have any source of income until they went into coffee farming. Now, she said each family earns P120,000 a year. The PCB also said it is encouraging third-wave coffee shops to use locally grown coffee.

“We’re encouraging the coffee shops to use local coffee. That’s how we promote it,” Juan said.

Some coffee varieties have penetrated the export market, such as the barako, or liberica coffee. Juan said the barako coffee is in demand in the Middle East and Japan.

The coffee products from Sulu are also being shipped to Korea and Japan.

Juan said the volume that’s being exported to these countries is very minimal, as there is a need to prioritize the local market.

The PCB official said some local coffee products have already won in international competitions, making it easier to promote Philippine coffee abroad.

“For example, we have an arabica coffee that has won awards in Bangkok, which was from Mount Apo. That one sells higher now, as high as P300 per kg,” Juan said.

Due to its potential, PCAARRD Executive Director Rey Ebora said the agency has included coffee as one of its priority areas in its Industry Strategic Science and Technology Program (ISP). The PCAARRD has allocated P96.78 million for the funding of all the coffee-related projects under the ISP.

IEC participants to stay at ‘Devotee City’

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EBU CITY—The Cebu City government has allowed participants of the 51st International Eucharistic Congress (IEC) to stay at the “Devotee City,” which was established for the recent Sinulog festivities.

Acting Cebu City Mayor Edgardo Labella said the Devotee City on the vacant lot of Compana Maritima across the Cebu City Hall, which can accommodate some 3,000 individuals, will remain open until January 31, the end of the international religious event that began on Sunday.

The Devotee City opened on Jan. 15 to house Santo Niño devotees from far-flung areas who have no place to stay in the city.

Labella said shipping firm 2GO Travel has granted the city’s request to extend the use of the 120 cargo containers until January 31.

He said these can be used as living

quarters for those who want to participate in the IEC activities, such as the opening Mass, the procession, parish visits and the closing Mass.

The city government sets up the Devotee City every year to house Santo Niño devotees who come to Cebu for the Sinulog celebration.

The facility was supposed to operate only until last Monday, a day after this year’s Sinulog grand parade.

Labella said those who can be accommodated in Devotee City for the IEC are families or individuals who reside beyond Danao City in northern Cebu and Carcar City in southern Cebu.

Those who come from other provinces in the neighboring regions are also welcome to stay at the facility on a first come, first served basis. PNA

economy to higher grounds.

“But we have a problem. We are lagging behind our neighbors when it comes to telecommunications services. We are being left behind,” he said.

SEC to firms: Don’t donate to politicians C  A

certificate of candidacy, the SEC and Commission on Elections (Comelec) signed a memorandum of agreement on information sharing.

According to the deal, the Comelec will give the SEC information on campaign financing that would be submitted by candidates and political parties. The Comelec would also inform the SEC of advertising contracts furnished by massmedia entities to the poll body.

“The reason we went [into] that agreement was to make it easier for both of us [SEC and the Comelec] because candidates are required by law to submit to the Comelec the list of donations given to them. Hence, we would find out,” Herbosa said. “Sad to say, some corporations violate the prohibition to donate. Some of them were not even aware of the prohibition and keep on donating” thereby violating the Corporation Code.

2016 inflation to average 2.5%, economists say

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RIVATESECTOR economists project inflation moving back to within the target band this year, after the country missed the target in 2015, even as oil prices continue to sink in the international market.

The consumer price index (CPI) used in measuring inflation were to average 2.5 percent this year, based on forecasts by 25 economists polled by the Bangko Sentral ng Pilipinas (BSP).

The year’s inflation forecast is higher than headline inflation averaging only 1.4 percent in 2015.

The forecast also falls within the range targeted by the BSP of 2 percent to 4 percent this year.

The same forecast, however, represents a cut back from an earlier forecast averaging 2.7 percent. According to the BSP, analysts attribute the lower inflation expectations to significantly lower oil prices and to lower domestic utilities rates.

What will keep inflation from falling below target include such upside risks as the El Niño weather disruptions, typhoons, increased expenditure from the upcoming national elections, robust consumer spending, weakening of the domestic currency and possible adjustments in utilities rates.

Chances are, according to the economists polled, there is a 63.9-percent probability that inflation will fall within the target band for 2016.

For 2017 inflation was seen accelerating slightly to 2.7 percent.

In the fourth quarter last year, inflation moved back past 1 percent after approaching 0 percent for several months.

Data from the central bank show the heavily weighted food inflation in the CPI basket as the main inflation driver in the country in the fourth quarter last year.

Food inflation increased in the fourth quarter due to weather-related supply disruptions and higher demand during the holiday season.

An offsetting influence to the increase pertained to energy prices as crude oil prices dropped some more in the international market. Overall electricity rates also moved down due to lower generation charges.

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‘Philippines should demand Thailand’s compliance with WTO cigarette ruling’

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HE Philippines should compel Thailand to abide by the World Trade Organization’s (WTO) ruling on the cigarette-tax case, after Bangkok slapped tax-evasion charges against Philip Morris Thailand (PMT), a legal expert said over the weekend.

Lawyer Anthony Abad, who was part of the Philip Morris Philippines legal team that won the case, said the time is ripe for Manila to demand Thailand’s compliance with the WTO ruling.

“It’s not just the Department of Trade and Industry [which should initiate proceedings at the WTO].

It’s the whole Philippine government. [Demanding compliance] is an important signal that countries should not be allowed to disregard the decision of the WTO,” Abad said.

“The basis of [Thailand’s] prosecution is undervaluation, and the undervaluation is based on an old system, which was already deemed a violation of the WTO’s Customs Valuation Agreement,” he added.

He noted that under Article 21.5

of the WTO’s Dispute Settlement Understanding, a complainantcountry can initiate a formal demand for compliance if it deems that the losing party in a dispute settlement case is not observing the WTO ruling.

Article 21.5 of the WTO’s Dispute Settlement Understanding also provides for the formation of a compliance panel should the Philippines file a complaint against Thailand.

In 2008 the Philippines questioned before the WTO’s dispute settlement body Thailand’s fiscal and customs measures, which affect local cigarette exports.

Manila claimed that Philippinemade cigarettes are being excessively taxed compared to those manufactured in Thailand and

$2.2B Thai tax fine facing Philip Morris

manufacturers had to contend with burdensome administrative requirements. Bangkok subjected resellers of imported cigarettes to value-added tax-related administrative requirements but exempted resellers of Thailand-made cigarettes.

The Philippines also claimed Thailand’s customs valuation measures are inconsistent with the WTO’s Customs Valuation Agreement. The WTO ruled in favor of the Philippines, affirmed that Philip Morris’s declared import value was correct, and ordered Thailand to comply with the recommendations and ruling of its dispute settlement body.

Last week Thailand’s Office of the Attorney General charged Philip Morris with tax evasion for supposedly underdeclaring import prices for batches of cigarettes imported from the Philippines between 2003 and 2006.

Philip Morris Thailand faces a $2.2-billion fine if the tobacco giant is found guilty.

However, Abad said the earlier

A FARMER harvests tobacco in a Philip Morris farm in Claveria, Misamis Oriental. MAU VICTA

WTO ruling, which was issued with finality, should negate the basis of Thailand’s filing of a criminal complaint against Philip Morris.

Also, Abad added that Manila’s demand for compliance to the WTO ruling could force Bangkok to throw away the tax-evasion charges it filed against PMT. Experts said the Philippine gov-

ernment cannot afford to just shrug off Bangkok’s latest move, as this could weaken the integrity of the WTO, which serves as a nonpartisan venue where any country can file trade-related disputes against its trading partners. Since the WTO serves as a “depoliticized platform” for dispute settlement, Abad said the possibility of straining diplo-

matic relations between Manila and Bangkok is remote.

“All sophisticated countries use the dispute settlement system [DSS] rather than allow countries to ignore WTO decisions, including the US and Australia. These are friendly countries that let the DSS settle the case so it doesn’t become arbitrary or discretionary on politics,” he said.

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Conserve water until El Niño ends–Paje

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AYING the strong El Niño episode is still being strongly felt in many parts of the country, Environment Secretary Ramon J.P. Paje on Sunday stressed the need to conserve water until the dry spell ends with the onset of the rainy season in June or July.

Paje earlier told reporters he will ask the National Water Resources Board (NWRB), an attached agency of the Department of Environment and Natural Resources (DENR), to conduct an assessment of available water resources, particularly in the Angat Dam, to determine water allocation for domestic use, irrigation and power generation.

“We want to study how much water do we have to plan ahead, how to use our water,” Paje said, who sits as chairman of the NWRB. In a statement, he appealed to water consumers, particularly in

Metro Manila, to help conserve water. “We do not want to deplete our water supply before the El Niño eases up,” he said.

He issued the appeal following reports of water shortages, particularly in agricultural areas.

These shortages have led to water rationing, cloud seeding and declaration of state of calamity in some areas in Mindanao, the DENR chief noted. The Philippine Atmospheric, Geophysical and Astronomical Services Administration said the country is likely to continue experiencing the worst

150 Million liters per day that Maynilad is extracting from Laguna de Bay to augment water supply for Alabang and Cavite

of El Niño until February, with droughts expected to hit most of the countryside until April.

Experts from the US National Oceanic and Atmospheric Administration, however, have observed a “weakening” El Niño, and they expect the dry spell to be over by midyear.

Until then, Paje said the public should conserve water to make sure that the current water supply will suffice. “We need to think about how our actions affect everyone’s food supply and electricity,” he said.

Director Ricardo Calderon of the DENR’s Forest Management Bureau (FMB) said the country’s forest-protection officers are on alert for potential forest fires because of the El Niño.

He also said the DENR’s partners in the implementation of the National Greening Program (NGP) have been advised to watch out for forest fires.

Laguna de Bay water

WATER supply for the domestic use of Metro Manila’s over 12 million population comes from the Angat Dam and La Mesa Dam. The Angat Dam is the biggest dam in the country, but it is also being used for power generation and agriculture, apart from supplying the daily water requirements of Metro Manila.

The private water contractors of the Metropolitan Waterworks and Sewerage System (MWSS) are eyeing other potential sources of water for their expanding service areas and increasing number of customers. The Laguna de Bay, the country’s largest freshwater lake, is a potential source of water, even though its current water

quality is classified as “Class C,” which means it is good for fisheries production.

Officials of Laguna Lake Development Authority (LLDA) said the updated master plan for the Laguna de Bay is geared toward maintaining the current status of the lake’s water quality for fisheries production, but said the new technologies to purify water makes it possible for domestic use.

In fact, Maynilad, whose water supply comes from Angat Dam, has been extracting water of about 150 million liters per day (MLD) from the Laguna de Bay since 2010 to augment water supply for Alabang and Cavite service areas. Maynilad holds the water concession for the West Zone of Metro Manila.

The company maintains a water-treatment facility in Barangay Putatan, Muntinlupa City, where it purifies water for distribution to its customers in Alabang and Cavite area. The company is allowed to extract 300 MLD from the Laguna de Bay, but it only extracts 120 MLD to 150 MLD, depending on the water requirements.

Starting next year, Manila Water, whose water supply mostly

comes from La Mesa Dam, which holds the concession for the East Zone of Metro Manila, will extract water in Morong, Bataan, said Cesar R. Quintos, the head of LLDA’s Policy Planning and Information Management Division.

He said the LLDA and Manila Water have already signed an agreement last year, formalizing the plan. The agreement allows Manila Water to extract 100 MLD, which it intends to use to augment water supply for its concession area in Rizal “Our plan is to maintain the quality of water in Laguna de Bay for fisheries production and other possible uses,” Quintos said.

According to the state environment agency, El Niño is the climate interaction between the Pacific Ocean and the atmosphere and is linked to the warming of sea surface temperatures across the equatorial Pacific. The phenomenon influences weather patterns, ocean conditions and fisheries across the world over an extended period of time. El Niño has a cycle span of two to seven years. The Philippines last experienced it between mid-2009 and mid-2010.

House think tank finds out ₧125.1B Private-sector help sought to plug data gaps in SDGs needed to implement unfunded laws B J M N.  C

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HE Congressional Policy and Budget Research Department (CPBRD) of the House of Representatives said the funding deficiency for the implementation of laws enacted from 1991 to 2015 has reached P125.1 billion as of October 2015.

The lower chamber’s think tank, citing the Department of Budget and Management’s Fiscal Planning and Reforms Bureau, also said out of the P367.3 billion total quantifiable funding requirements, only 66 percent, or P242.2 billion, had been allocated so far.

“The economic services sector had the highest funding deficiency of P79 billion, or 63.1 percent; followed by defense at P20.3 billion, or 16.2 percent; and social services at P15.5 billion, or 12.4 percent,” said the CPBRD. The research body said almost 90 percent of the P125.1-billion, funding deficiency pertained to the following: the Comprehensive Agrarian Reform Program at P37.4 billion; Armed Forces of the Philippines Modernization Program of 2012 at P20.3 billion; National Electrification Administration Reform Act of 2013 at

P20 billion; Civil Aviation Authority Act of 2008 at P13.8 billion; Comprehensive and Integrated Shelter Financing Act of 1994 at P11 billion; and payment to or claims of victims of human-rights violation during the Marcos regime at P9.9 billion.

By subsector, under the economic services, the CPBRD said Agricultural/Agrarian posted the highest deficiency at P40.2 billion, or 51 percent, out of P70 billion. It added laws with funding deficiencies under the Agri/Agra are the Comprehensive Agrarian Reform Program (P37.4 billion); the Philippine Fisheries Code (P1.5 billion); National Dairy Act (P1.1 billion); and the Sugarcane Industry Act (P206 million).

The P20 billion funding deficiency in the energy subsector under the economic services pertained to the National Electrification Administration (Republic Act 10531), the CPBRD said.

Meanwhile, it also said the Civil Aviation Authority Act of 2008, which is under the infrastructure/ transportation and communications subsector, had a funding deficiency of P13.8 billion as of October 2015. Other laws with funding deficiencies were People’s Development

Trust Fund (P4.4 billion); Revitalizing the People’s Television Network (P3.3 billion); Philippine Fisheries Code of 1998 (P1.5 billion); Freeport Area of Bataan (P1.4 billion); National Dairy Development Act (P1.1 billion); Bureau of Corrections Modernization (P382.5 million); Sugar Industry Act (P206.2 million); Dagupan Fishport (P140 million); National Privacy Commission (P70 million); Mindanao University of Science and Technology (P50 million); and Cybercrime Act (P24.6 million); according to the research body.

Speaker Feliciano Belmonte Jr. said the lower chamber hopes to pass the Fiscal Responsibility Bill to address the problem on unfunded laws before the 16th Congress goes on a break on February 6 to May 22 for the 2016 national and local elections. He said the measure is among the priority bills proposed by the Palace, House of Representatives and Senate, to control the proliferation of unfunded laws.

“Among its provisions is that no expenditure measure shall be passed and take effect without a new revenue generation or expenditure-reduction measure. The bill is pending at the committee level,”

Belmonte said. For his part, Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela said the leadership of the House of Representatives and Senate should find out why these laws are unfunded, and what are the repercussions of unfunded laws.

“We have to find out one by one why these laws are unfunded and what are the repercussions of these unfunded laws. For me, unfunded laws are tantamount to useless pieces of paper. We have to either repeal the law or amend it.

We have to find out first what will be the impact,” Gatchalian said.

“Unfunded laws deprive the Filipino people of services and programs that can be helpful to our lives,” he added. For his part, Party-list Rep. Jonathan dela Cruz of Abakada said “the government should review all of these laws to determine duplications, if any.”Party-list Rep. Sherwin Tugna of Citizens’ Battle Against Corruption said further research on these unfunded laws is needed.

“That way, we will be able to determine what laws should be prioritized for funding, especially those that are for special services,” Tugna added.

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HE Philippines may require privatesector help to address data gaps on several of the Sustainable Development Goals (SDGs).

National statistician Lisa Grace S. Bersales told the BUSINESSM IRROR the Philippine Statistical System (PSS) lack disaggregated data for many of the SDGs, as well as data on highly scientific indicators.

“This is about big data revolution because, definitely, the official statistics, the PSA [Philippine Statistics Authority] needs help from academe and from private sector for some of the data,” Bersales said.

“The data gaps are pertaining to goal 16, about justice and peace, and peaceful society because these are really questions on whether you are safe walking at night in your neighborhood. Indicators like that,” she added.

The national statistician said the country lacked data for highly scientific indicators, such as those on sustainable water and energy. Bersales said the country still does not have data for goals on energy, marine sources and highly technical indicators like carbon particles in the atmosphere.

The SDGs are composed of 17 goals with around 169 targets with 229 global indicators. The goals were adopted in September 2015. However, Bersales said, the number of indicators could double

once the United Nations Statistics Commission meets in March to accommodate disaggregations.

Bersales said these disaggregations include providing data based on gender and economic status. She added that some indicators will also require disaggregated data for indigenous peoples and persons with disability.

She said an expert group on the SDGs will meet from March 8 to 11 to discuss the indicators that will require disaggregated information. Once these are decided, the PSA and the National Economic and Development Authority (Neda) will conduct a workshop to decide how to address the data requirements for the SDGs, including the gaps.

The 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, resilient infrastructure; and reduce income inequality between and among countries.

The goals also include creation of sustainable cities; ensuring sustainable consumption and production; and taking action against climate change.

Other goals: conserve and sustainably use oceans and marine resources; reduce biodiversity loss; achieve peaceful and inclusive societies; and revitalize global partnership for development.

Cambodia seeks more flight frequencies with PHL B M. S F. A

Special to the BusinessMirror

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AMBODIA is seeking more flights between the country and the Philippines in a bid to further boost tourism flows.

This developed as both countries signed on Friday an implementation program for tourism cooperation for 2016-2020, during bilateral talks held on the sidelines of the Asean Tourism Forum. The implementation program will strengthen the memorandum of understanding on tourism cooperation signed by both countries in August 2000.

In an interview with the BusinessMirror, Cambodia Minister of Tourism Dr. Thong Khon said: “We want to increase flights [between the Philippines and Cambodia] because there are a lot of outbound Filipino [travelers] who want to fly direct to Siem Reap. But also, we have 1 million

outbound Cambodian [tourists] every year. So they also want to visit the Philippines.”

He said the flights of Cebu Pacific from Manila to Siem Reap, currently at four times a week, “are not enough.” He was also hopeful that there would be direct flights between Manila and the Cambodian capital of Phnom Penh “in the future,” as there are some 5,000 Filipinos who live and work there, mainly as nurses, musical performers, or are employed by non-governmental organizations.

At present, none of Cambodia’s six airlines offer direct flights to the Philippines. Most of these carriers operate only one to seven planes, focused largely on domestic flights within Cambodia, and flights to and from Vietnam. In his message at the start of the bilateral meetings, Philippines Tourism Secretary Ramon R. Jimenez Jr. said the earlier signed memorandum of

tourism cooperation “paved the way to facilitating tourism flow between our countries. In 2014 there were 93,475 Filipinos who visited Cambodia, while Cambodian visitors to the Philippines grew by 1 percent to 3,276.”

He, likewise, disclosed that the Philippine Embassy in Cambodia “is currently discussing with our Civil Aeronautics Board on the possibility of extending the [air] service to Phnom Penh.” In the 1970s, Thong said the Royal Cambodian airline used to fly directly between Phnom Penh and Manila.

He noted that a new air-service ag reement may no longer be needed between the Philippines and Cambodia as there are fifth freedom rights guaranteed under Asean, “so they can fly unlimited, destination to destination.”

Fifth freedom rights allows any carrier to fly between two foreign countries during flights

originating or ending in said airline’s home country. This means, a Philippine carrier can offer return flights between Manila and Kuala Lumpur, then onward to Phnom Penh or Siem Reap. The Philippines, however, has yet to sign the Asean open-skies agreement.

Siem Reap is the gateway to the popular Angkor Wat, a temple complex originally built in the 12 century, which is on the list of United Nations Organization for Education, Science and Culture’s World Heritage Sites.

Thong added the new implementation program will set up a “working group” that will outline joint promotion and marketing efforts to sell both Cambodia and the Philippines, not only within Asean, but to other international tourists.

He also said the agreement will enable Cambodia to learn from the Philippines in the area of “beach management…. Cambodia also has

a lot of nice sandy beaches, but we don’t have a lot of experience in managing these, so the Philippines can train us and give us more experience in that [area].”

In a separate interview, Jimenez said the implementation program sprang from an earlier offer by the Cambodian government to help the Philippines restore its heritage churches in Bohol, which were damaged by a massive earthquake in October 2013. “[Cambodia has] some of the world’s most experienced restorers for ancient structures. They said they wanted to help us when they saw what happened in Bohol. So this whole idea turned into a broader agreement because it’s not just the Bohol churches we need to rebuild, we need help in our provinces, in Intramuros, etc. [The implementation program] formalizes it because we can both exchange workers; first they can send people and look at it

to determine what kind of training program is needed.”

The Department of Tourism chief added the Philippines will also be helping Cambodia train its artisans to restore other relics “that are more relevant to what we have learned from the Spaniards.” Restorers from Escuella Taller, which is currently helping restore Intramuros, will be sent to Cambodia for this purpose.

Due to age and an influx of tourism, large chunks of the sandstone foundation at Angkor Wat had eroded. Restoration of the temple complex began in 1989 by local artisans with help from international restoration experts. The implementation program also calls for an exchange of tourism data, publications on rules and regulations for tourism investment, as well as information on tourism plans, particularly on ecotourism and best practices on sustainable tourism.

AseanMonday BusinessMirror

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Monday, January 25, 2016 A5

A look at the complex Vietnam-China ties $90B D IVIDED opinions within Vietnam’s Communist Party on how to relate to giant neighbor and onetime ally China are among key factors in play at an eight-day congress to choose its new leadership.

Vietnam and China have a complex relationship going back more than 2,000 years, including several periods of Chinese imperial occupation that were ended by Vietnamese uprisings.

Despite its early support for the Vietnamese Communist Party, China invaded in 1979 in retaliation for Hanoi’s overthrow of the Khmer Rouge in Cambodia.

Diplomatic ties were restored in 1991, but tensions have risen in recent years due to competing claims to islands and reefs in the South China Sea.

Keeping watch

CHINA is closely observing the party congress and has emphasized the importance of China-Vietnam relations, including $90 billion in bilateral trade last year.

“As a good neighbor, friend, comrade and partner to Vietnam, we wish to advance the overall strategic relationship into a new stage on the basis of long-term stability, forward thinking and good neighborliness,” Foreign Ministry Spokesman Hong Lei said on Friday.

“We also wish to work with Vietnam to appropriately control

maritime disputes with Vietnam so as to safeguard the maritime stability.”

ceived split within the Vietnamese Communist Party between pro- and anti-China factions.

Oil rig dispute

IN May 2014 China parked a huge oil-drilling platform off the Vietnamese coast in an area where the two countries’ exclusive economic zones overlap.

Vietnam furiously denounced the move and sent fishing boats and coast guard vessels to harass the rig and nearby Chinese vessels. Skirmishes led to collisions and the capsizing of at least one Vietnamese boat, while in Vietnam anti-Chinese rioting and the looting of Chinese and other foreign-owned factories left at least four Chinese citizens dead.

China’s outreach

CHINESE Foreign Minister Yang Jiechi visited Vietnam in June 2014 to try to contain the oil-rig dispute.

Despite receiving a frosty reception from Vietnamese Prime Minister Nguyen Tan Dung, escalation was

Vietnam visits

Value of China-Vietnam bilateral trade last year

avoided. More significant, the oil-rig incident nudged Vietnam closer to its old enemy the United States, which later that year partially lifted an arms embargo specifically to help improve Vietnam’s maritime security.

Competing claims

CHINA withdrew the rig in July 2014, one month ahead of schedule, saying it had completed its mission.

The confrontation is widely seen as part of a Chinese strategy to strengthen its footprint in the South China Sea, all or part of which is also claimed by Vietnam, the Philippines, Taiwan, Malaysia and Brunei Darussalam. The incident also focuses renewed attention on a per-

FOLLOWING a prolonged chill, Communist Party chief Nguyen Phu Trong (pronounced NEW-yen FOO CHONG) led a delegation to Beijing in April 2015 and was greeted by President Xi Jinping with full military honors at the Great Hall of the People.

Though little of substance resulted from the four-day trip visit, it is seen as helping get relations back on track.

Mending ties

CHINA’S Xi made a state visit to Vietnam in November 2015, during which he and Trong agree to limit their differences and maintain peace and stability.

Xi said China will “strive together with Vietnam to control differences at sea.” Trong proposed that neither side take actions that increase tensions. During the visit, about 30

people protested briefly in front of the Chinese Embassy in Hanoi. Xi also addressed Vietnam’s National Assembly, but avoided mentioning the South China Sea and the 1979 war.

Tensions renewed

VIETNAM protested to China in January over a test flight to a new airstrip on one of Beijing’s man-made island in the disputed Spratly Islands.

Vietnam Foreign Ministr y Spokesman Le Hai Binh demanded an end to such flights, saying they violate Vietnam’s sovereignty and hurt bilateral relations. China responded that the flights fall “completely within China’s sovereignty.”

Days later China conducted two more test flights. The South China Sea dispute looks only to grow more complex as China completes infrastructure on its newly created islands and boosts its maritime defense forces beyond anything its rival claimants can muster. AP

The World BusinessMirror

A6 Monday, January 25, 2016

Kerry off to Asia to address maritime row, NoKor nukes

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IYADH, Saudi Arabia—US Secretary of State John F. Kerry is pressing for peaceful resolutions to increasingly tense maritime disputes in Asia, and urging China to take a firmer stand on North Korea’s nuclear program after its recent bomb test.

Kerry left Saudi Arabia on Sunday and planned stops in Laos, Cambodia and China, shifting his focus as he wraps up an around-the-world diplomatic mission that began in Switzerland with a heavy emphasis on the Middle East, particularly Iran, and efforts to bring an end to Syria’s civil war.

His first stop is Laos, the current head of the Association of Southeast Asian Nations, whose members are becoming more vocal in complaints about China’s growing assertiveness over competing claims in the South China Sea and whose leaders President Barack Obama will host in California next month. Before that summit, US officials say, Kerry will make the case to the leader of the 10-nation bloc to present a unified stance in dealing with China on the disputes, which have grown more intense as China continues to construct man-made islands and airstrips in contested areas.

The US and governments with rival claims with China in the disputed region, including the Philippines and Vietnam, have expressed alarm over the Chinese construction, saying it raises tensions and threatens regional stability and could violate freedom of navigation and overflight.

But Asean unity has not always been possible, as China wields great influence among some of its smaller neighbors, such as Cambodia. Cambodia held the Asean chair in 2012 and blocked the group from reaching consensus on the South China Sea issue and has frequently sided with China on the matter. A senior State Department official accompanying Kerry in Asia said the US had heard from regional leaders that problems related to Cambodia’s chairmanship “left a black mark on Asean and are not to be repeated.” The official said the US believed that Laos would do a bet-

ter job in balancing Asean interests with China.

Recent developments, including China’s movement of an oil rig into a disputed zone and warnings against overflight of what it claims to be its territory, have raised levels of concern in the region to a point where the official said it would be very difficult for an external power like China to manipulate individual Asean countries in a way that paralyzes the broader group.

The official spoke on condition of anonymity because he was not authorized to discuss the details of Kerry’s visit publicly.

Kerry will be only the second secretary of state to visit Laos since 1955—Hillary Clinton visited in 2012. And Obama will become the first US leader to visit the landlocked nation later this year. Laos has moved away from a communist system in the past two decades, but like its close ally Vietnam, it retains a one-party political system and its government has been criticized for being intolerant of dissent.

Laos was targeted heavily by US bombing during the Vietnam War and still has large amounts of unexploded ordnance littering its countryside. The US has stepped up efforts to help clear Laos of those bombs and Kerry is expected to commit to expanding and upgrading such programs with details to be announced when Obama visits later in 2016, the US official said.

In Cambodia Kerry is expected to note the country’s strong economic growth but also raise concerns with

longtime authoritarian Prime Minister Hun Sen about human-rights and political freedoms. Kerry plans to meet representatives of Cambodia’s opposition, led by a man who has been in self-imposed exile since November, when an order for his arrest was issued on an old conviction for defaming Cambodia’s foreign minister.

Kerry will wrap up his Asia tour in Beijing, where he will renew concerns about China’s aggressive behavior in the South China Sea and call for Chinese leaders to take more steps to press North Korea on its nuclear program. Since North Korea’s nuclear test earlier this month, US officials asserted that China must use its leverage to demand that the Stalinist North Korean leadership end its nuclear-weapons program and testing and return to six-nation talks aimed at denuclearizing the Korean peninsula.

The senior US official said the US believes that the pressure China exerted on North Korea so far has not been enough to change the calculus of North Korea’s young leader, Kim Jun Un, and that it is important for China to join the US, South Korea and Japan in presenting a united front, which “must be a firm one, not a flaccid one.”

The official said the US wants the Chinese to line up with Seoul, Washington and Tokyo in convincing North Korea that the peaceful way forward is to comply with UN Security Council resolutions but “continuing down the road of provocation is a dead-end street.” AP

French president in India to strengthen strategic ties

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

US tribes oppose massive pipeline expansion in Canada

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EATTLE—A proposed pipeline-expansion project in Canada will put the fishing rights and cultural heritage of US tribes at risk, a lawyer representing several Washington state tribes told Canadian energy regulators.

Kinder Morgan’s Trans Mountain project would nearly triple pipeline capacity from 300,000 to 890,000 barrels of crude oil a day. It would carry oil from Alberta’s oil sands to the Vancouver area to be loaded on to barges and tankers for Asian and US markets. The project would dramatically increase the number of oil tankers that ply Washington state waters.

“This project will harm the cultures of the US tribes,” said Kristen Boyles, an Earthjustice attorney who spoke against the project on Friday on behalf of the Swinomish, Tulalip, Suquamish and Lummi tribes. She made final arguments to Canada’s National Energy Board at a hearing in Burnaby, British Columbia, which was broadcast online.

Boyles told the three-member panel that project officials didn’t consult with the US tribes and didn’t consider the impacts to the tribes.

“This project is all risk and no reward,” she added.

The US tribes are among the municipalities, environmental groups, First Nations and residents along the pipeline route who are interveners in the case. Many have raised concerns about the risk of pipeline leaks, increased vessel traffic and potential oil spills.

Last month a lawyer for Kinder Morgan Inc. told the energy board that the $5.4-billion expansion can be done in a way that minimizes impact on the environment, addresses social impacts and provides many economic benefits.

“There is no doubt as to the need for this project and the benefits that will flow from it,” Kinder Morgan lawyer Shawn Denstedt said in December, according to an NEB transcript. “Trans Mountain has mature operations, maintenance systems, and emergency response plans already in place,” he added.

Kinder Morgan said in an e-mail on Friday that it was actively engaged with the Washington state maritime community, which included representatives from government, industry, environment and tribes. “Our

engagement is focused on providing information and gathering feedback related to marine traffic and emergency preparation and response,” it said.

The Washington Department of Ecology, also an intervener in the case, is scheduled to give arguments next month.

In earlier written testimony, Ecology said it expects an additional 350 loaded oil tankers moving through state waters each year if the project is built. The state wants the project to ensure that vessels calling at the Vancouver terminal follow standards that are as protective as those in Washington state.

“Any spill is immediately damaging, even the smallest of spills,” Linda Pilkey-Jarvis, manager of Washington’s spill preparedness, said in an interview.

Ecology officials have said the project should require all vessels and barges to have tug escorts. It should also be required to help pay for and develop a response plan to address the risks of vessels carrying diluted bitumen, as well as show evidence it can pay for response and damage costs if a spill happens.

Trans Mountain has agreed to make it a requirement that tankers accepted at the Vancouver terminal have enhanced tug escort from the terminal to the west entrance of the Strait of Juan de Fuca, according to Pilkey-Jarvis.

Northwest tribes said increased vessel traffic poses a safety risk to fishermen and could have disastrous impacts on tribal fishing areas that are protected by their treaty with the US. They say the fisheries are important not only to jobs and livelihood but that it plays a major part of their self-identity.

“We are speaking directly to the Canadian regulators to highlight the risks of this pipeline to our lives, our culture, and the priceless waters of the Salish Sea,” Swinomish Chairman Brian Cladoosby said in a prepared statement.

Environmental groups also worry about the environmental impacts to the small endangered population of orcas that spend time in Washington state and Canadian waters.

The energy board is scheduled to make its recommendations on the pipeline expansion by May 20. AP

Burials begin for Burkina Faso nationals killed by jihadists

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A VOLUNTEER hostage is being rescued by Delhi Police commandos during a drill to tackle a mock terror attack ahead of Republic Day in New Delhi, India, on Thursday.

India is tightening security with extra paramilitary soldiers and police deployed across the capital, after a French consulate in southern India received a letter warning against the visit of French President François Hollande. AP/ALTAF QADRI

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EW DELHI—French President François Hollande began a three-day visit to India on Sunday that could push a multibillion-dollar deal for combat airplanes and closer cooperation on counterterrorism and clean energy.

Hollande landed in the northern city of Chandigarh where Indian Prime Minister Narendra Modi is due to join him at official engagements.

Designed in the 1950s by SwissFrench architect Le Corbusier, Chandigarh is one of three places that France has pledged to help develop as so-called smart cities—with clean water supplies, efficient sewage disposal and public transportation.

In Chandigarh Hollande and French business leaders will meet

with Indian counterparts to boost bilateral trade, which in 2014 stood at $8.6 billion. New Delhi is also trying to encourage French companies to tap into India’s economic boom.

Hollande is accompanied by a high-profile delegation, including the ministers of defense, foreign affairs, economy and culture and dozens of top corporate leaders.

Hollande will travel to the Indian capital later Sunday. He will hold talks with Indian leaders on Monday and be a guest of honor on Tuesday at India’s Republic Day parade, celebrating 66 years since the country adopted its constitution.

High on the agenda is India’s desire to purchase 36 Rafale combat planes for its air force, which Modi

had announced during a visit to Paris in April, touching off several rounds of negotiations over pricing, offsets and servicing.

In an interview with the Press Trust of India (PTI) news agency, Hollande hinted it might take some more time to sign the deal.

“Agreeing on the technicalities of this arrangement obviously takes time, but we are on the right track,” PTI quoted Hollande as saying.

France has also promised support for India’s clean-energy quest, including a solar energy alliance launched last month during the global climate talks held in Paris.

“Our bilateral relationship with France is very comprehensive. It covers number of sectors such as defense, civ-

il nuclear cooperation, railways, smart cities, science and research, space and culture. In all these areas we expect some forward progress during the French president’s visit,” Vikas Swarup, India’s External Affairs Ministry spokesman said, last week.

The two sides are also expected to touch on anti-terrorism efforts including speeding up extradition requests and cracking down on money laundering used to fund militant activities.

Swarup noted that both countries had been hit by militants recently, with 130 people killed across Paris on November 13 and a four-day siege against the north Indian air force base of Pathankot this month in which seven Indian soldiers were killed. AP

UAGADOUGOU, Burkina Faso—Burials have begun for the 10 Burkina Faso nationals killed in last week’s attack on a cafe and hotel in the capital, Ouagadougou, highlighting the local toll suffered in the latest West African country targeted by Islamic extremists.

Three burial services were held on Friday and more were expected over the weekend, as Burkina Faso remains fearful of further violence.

For many in Ouagadougou, the attack—the first of its kind in Burkina Faso—points to the need for more stringent security measures to help the country rebound from a period of unrest, including the toppling of the longtime President Blaise Compaore in 2014 and a brief, failed coup last September.

“We are asking our authorities to ensure security and we wish these measures to be visible,” said Celestin Pierre Zoungrana, chairman of the hotel and restaurant owners’ association in Burkina Faso. “We thought the economy was back on track and we could revamp but we made a mistake and set down our arms, and the terrorists proved us wrong.”

Security worries were further heightened on Friday, when soldiers who belonged to Burkina Faso’s former presidential guard attacked an armory west of the country’s capital.

The elite force, loyal to Compaore, was behind last year’s coup attempt and was later disbanded. Officials said on Saturday night that 10 soldiers and one civilian had been arrested in connection with the armory raid.

President Roch Marc Christian

Kabore was inaugurated as president at the end of last year and named his cabinet just days before the January 15 violence. The new team must respond to the changing security situation, said Cynthia Ohayon, West Africa analyst for the International Crisis Group.

“They will have to reorganize the guards, their equipment and their know-how,” she said.

According to the latest government figures, the extremist attack killed 30 people: 10 from Burkina Faso, six Canadians, three Ukrainians, one Italian, one Libyan, two Swiss, one Dutch, one Portuguese, two French nationals, one American, one French-Moroccan and one who has yet to be identified.

The government offered a mass memorial service for the local victims, but the families decided to have private burials.

Kabore attended a ceremony Friday at Ouagadougou’s Catholic cathedral for Jean-Pascal Kinda, a former Olympic official who was killed.

“What is important for us is to get the bodies and bury them,” said Mathias Tankoano, a close friend of Kinda. “We have to put his soul to rest in peace as soon as possible.”

Elsewhere, relatives of the dead were struggling to adapt to life without their loved ones. Seydou Ilboudo, the 64-year-old father of Sylvain Ilboudo, a server killed at the Italian-run Cappuccino Café, said the man’s family would have to split up.

“He had been working for a year now at Cappuccino Café and he was looking after his family, his wife and two kids,” Seydou Ilboudo said. AP

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Thailand reports 2nd MERS case in a man from Oman

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ANGKOK—Thailand has reported its second confirmed case of Middle East Respiratory Syndrome (MERS) detected in a 71-year-old man from Oman who arrived in Bangkok on Friday.

Thailand’s Public Health Ministry announced on Sunday that the man is in stable condition at an infectious disease center in Bangkok’s outskirts. His children are also being quarantined. The authorities have identified 252 people the patient came into contact with, and are seeking 37 they con-

sider at high risk for surveillance.

The World Health Organization (WHO) said in early January that it had been notified of 1,626 confirmed MERS cases, including at least 586 related deaths, since the disease was first identified in Saudi Arabia in 2012.

Thailand’s first MERS case was

a 75-year-old Omani man who was hospitalized last June and released several weeks later after recovering. In both cases, the men had first fallen ill in Oman and came to Thailand to seek diagnosis and medical treatment.

According to WHO, typical symptoms include fever, cough and shortness of breath. Pneu-

monia is common, but not always present.

Although most cases are attributed to human-to-human infections, the UN agency says the virus does not seem to pass easily from person to person unless there is close contact, such as when providing unprotected care to a patient. AP

The World Health Organization said in early January that it had been notified of 1,626 confirmed MERS cases, including at least 586 related deaths, since the disease was first identified in Saudi Arabia in 2012.

Monday, January 25, 2016

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Trump: My supporters would stick with me through shooting

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IOUX CENTER, Iowa—Donald Trump is so confident about the loyalty of his supporters that he predicted on Saturday they would stick with him even if he shot someone.

The Republican presidential frontrunner bashed conservative commentator Glenn Beck’s support of rival Ted Cruz and welcomed a figure from the Republican establishment, Sen. Chuck Grassley of Iowa, in rallies nine days before the Iowa caucuses open voting in the 2016 campaign.

“I could stand in the middle of Fifth Avenue and shoot somebody, and I wouldn’t lose any voters, OK?” Trump told an enthusiastic audience at a Christian school, Dordt College. “It’s like incredible.”

Beck campaigned for Ted Cruz and held little back in going after Trump. “The time for silliness and reality show tactics has passed,” Beck charged at a Cruz rally.

He warned that a Trump victory in the February 1 caucuses could have lasting consequences: “If Donald Trump wins, it’s going to be a snowball to hell.”

Trump demonstrated the extent to which some in the Republican establishment have begun to accept a potential

Trump nomination when Grassley introduced him at a later event in Pella.

Grassley did not offer an endorsement, but his presence underscored Trump’s enduring positions at the top of the polls as voting approaches. Alex Conant, speaking for Marco Rubio’s campaign, was quick to note, however, that Grassley will introduce Rubio at an Iowa rally in a week.

Days after Trump was endorsed by tea party favorite Sarah Palin, Cruz flashed his own conservative muscle during a rally in Ankeny, Iowa. Rep. Steve King, an Iowa Republican and conservative firebrand, and Iowa social conservative leader Bob Vander Plaats encouraged local Republicans to unite behind Cruz.

At his Sioux Center event, Trump called Beck a “loser” and “sad sack.” Beck was one of nearly two dozen conservative thinkers who penned anti-Trump essays for National Review magazine—a hit Trump referred to repeatedly at the rally.

Cruz, running close with Trump in Iowa polls, was almost entirely focused on the billionaire in his Ankeny event, as he professed core conservative values and drew a sharp contrast with Trump on issue after issue, without using his name. AP

The W

Business

A8 Monday, January 25, 2016 | Editor: Lyn Resurreccion

Bloomberg eyeing independent White House bid

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EW YORK—Former New Yo r k M a y o r M i c h a e l Bloomberg is tak ing early steps toward launching an independent campaign for president, seeing a potential path to the White House amid the rise of billionaire Donald Trump and Vermont Sen. Bernie Sanders.

Bloomberg has retained advisers and plans to conduct a poll after the February 9 New Hampshire primar y to assess the state of the race and judge whether there is an opening for him to mount an independent campaign, according to three people familiar with his thinking. They spoke on condition of anonymity because they were not authorized to speak publicly about his plans, which were first reported on Saturday by The New York Times. Bloomberg has set a March deadline to decide on whether to enter the race, to ensure his access to the ballot in all 50 states.

The billionaire media executive, who served three terms as mayor of New York, is said to be concerned by Trump’s lasting hold on the Republican field and is worried about the impact of Sanders’s campaign on Hillary Clinton’s bid for the Democratic nomination.

Bloomberg’s efforts underscore the unsettled nature of the presidential race a little more than a week before the first round of primary voting. The months-long rise of Sanders and Trump has shaken up the political establishment in both parties and on Wall Street, who’ve struggled to combat their climb in primary polls. A longtime Democrat who became a Republican to run for mayor in 2001 and later switched to be an independent, Bloomberg would strongly consider a bid if the general election looked like it could turn into a contest between Sanders as the Democratic candidate, and Trump or Texas Sen. Ted Cruz as the Republican contender.

He is not ruling out a bid if Clinton is ahead on the Democratic side, though people familiar with his plans believe it is not particularly likely Bloomberg would challenge Clinton in a general election. But they said Bloomberg has expressed concern about the damage caused by revelations she used a private e-mail address and server while serving as secretary of state, and he fears she may emerge atop the Democratic field as a weakened nominee.

The two New Yorkers have a cordial relationship, people close to them say. They met privately at Bloomberg’s offices a few months before Clinton announced her campaign last April, before an e vent a n nou nc i ng a ph i l a nthropic initiative to measure and track data about issues affecting women and girls. Bloomberg has also spoken at events hosted by the Clinton Foundation.

To prepare for a potential run, Bloomberg has also instructed aides to research previous thirdparty runs and is said to be willing to spend up to $1 billion of his own fortune, estimated to be about $37 billion, to finance his campaign.

Bloomberg, 73, has no personal animus toward Trump—he believes the real-estate developer is “a nice guy,” according to one of the people familiar with his plans— and knows him from New York’s social circuit and from dealings with Trump when Bloomberg was mayor. But he strongly disagrees with Trump’s political positions, particularly his stance on immigration, the person said. One of the richest people in the US, Bloomberg has previously toyed with presidential runs, but concluded ahead of the 2008 and 2012 campaigns he could not win. The founder of the financial news and information provider Bloomberg LP, he was a political novice when he launched an unlikely bid for mayor in 2001. AP

Public doubts Washington’s problem-solving ability: Poll W

ASHINGTON—As the first voting nears in the presidential race, most Americans have little to no confidence in the federal government to confront what they see as the country’s most important priorities, according to a national survey.

The Associated Press (AP)NORC Center for Public Affairs Research poll, conducted last December, found more than six in 10 respondents expressed only slight confidence—or none at all—that the federal government can make progress on the problems facing the nation in 2016.

Terrorism edged health care as the issue most often mentioned— each by about one-third of those questioned—when people were asked to volunteer the issues they believe Washington should address this election year.

The polling suggests an electorate more focused on the economy and domestic affairs than on foreign policy. Two-thirds of respondents included an economic issue on their priority list, and about four in five named a domestic policy other than the economy.

In addition to those who mentioned terrorism, nearly half added another foreign policy matter, and immigration was the next most frequent topic raised.

Perhaps, most vexing for the dozen or so candidates vying to succeed President Barack Obama, the poll indicates widespread skepticism about the government’s ability to solve problems, with no significant difference in the outlook between Republicans and Democrats.

“They can’t even seem to get

6

Out of 10 Americans expressed only slight confidence—or none at all—that the federal government can make progress on the problems facing the nation in 2016 together and pass anything that’s of any importance,” said Doris Wagner, an 81-year-old Republican from A labama who said she’s “not at all confident” about seeing solutions in 2016. “It’s so self-serving what they do,” said Wagner, who called herself a small-government conservative. In Texas Democrat Lee Cato comes from a different political perspective but reached a similar conclusion. She allowed for “slight” confidence, but no more.

The 71-year-old bemoaned a system of “lobbyists paid thousands upon thousands of dollars to get Congress to do what they want” for favored industries. “ They aren’t doing anything for you and me,” she said.

IN this January 10 file photo, a protester wearing a mask of missing bookseller Lee Bo sits in a cage during a protest against the disappearances of booksellers in Hong Kong. The wife of the missing chief editor of a publisher specializing in books banned in mainland China has told police she has been able to visit him on the mainland, Hong Kong police said on January 24. It is the latest twist in the disappearances of British citizen Lee and four of his colleagues that have intensified fears that Beijing is clamping down on Hong Kong’s freedom of speech. AP/VINCENT YU

Joe Flood, a Republican-leaning independent, said he sees government’s inner workings in his job as a federal contractor. A 49-year-old resident of Washington, D.C., Flood described the executive branch as a bureaucratic behemoth, and the legislative branch as an endlessly partisan wrangle. “That’s why government can’t get anything done,” he said.

Along with terrorism and health care, respondents were most likely to cite immigration (29 percent), education (25 percent) and unemployment (24 percent) as priorities.

Democrats and Republicans were about equally likely to mention unemployment, though there was a racial disparity. Almost half of black respondents mentioned the issue, compared with only a one-fifth of whites. A predictable partisan divide was apparent in other issues. Republicans were more likely than Democrats to cite terrorism as a priority, 42 percent to 30 percent. Immigration was

mentioned by 43 percent of Republicans and 21 percent of Democrats.

The poll was taken after the Paris attacks that were attributed to the Islamic State (IS) group and a shooting in San Bernardino, California, blamed on IS sympathizers.

One-fifth of Republicans mentioned the federal budget deficit, compared with less than a onetenth of Democrats, with a similar divide on the importance of taxes.

Democrats were more likely to consider guns as public policy priority, along with education, crime, racial problems, the environment and climate change. Many of those breakdowns reflect the separate debates now playing out in the presidential race.

The Republican field, led by boisterous candidates, such as businessman Donald Trump and Texas Sen. Ted Cruz, characterizes the Obama administration as an irresponsible, profligate manager of taxpayer resources, and unable to ensure national security and

protect US interests amid international threats and strife.

The leading Democratic cand id ates, for mer Secretar y of State Hillary Clinton and Sen. B er n ie Sa nders, a re foc u sed more directly on economic matters, both framing themselves as defenders of the middle class.

S a nde r s r a i l s a g a i n st t he d ispropor tionate economic a nd pol it ic a l power of t he nat ion’s wea lt h iest ind iv idu a ls a nd cor porat ions. T he A PNORC Pol l of 1,042 adu lts was conducted December 10 to 13, 2015, using a sample d raw n from NORC ’s probability-based AmeriSpeak panel, which is desig ned to be representative of the US population. T he marg in of sampling error for all respondents is plus or minus 3.9 percentage points. Respondents were first selected randomly using address-based sampling methods, and later inter viewed online or by phone. AP

Sanders attracting voters who seek more than protest vote

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ES MOINES, Iowa Bernie Sanders is attracting A mer icans who are in search of more than a protest vote.

Yes, Sanders’s backers say, they’re frustrated with a system they believe is rigged for the wealthy. But many say their support for the Vermont senator in the Democratic presidential race is also driven by real hope in his promise of a political revolution and a belief that his ideas are bold enough to bring economic security to the middle class.

“I just like a gutsy guy that doesn’t have his hair combed perfect and all that,” Emmett Lahr, a 75-year-old from Glidden, Iowa, said of the rumpled Sanders.

But it’s more than that. Lahr had planned to vote for Hillary Clinton, but says he’s now “90 percent switched” to Sanders, largely because of what Sanders wants to do for the economy.

Interviews with more than two dozen Sanders supporters in Iowa and New Hampshire reveal deep antipathy toward Clinton.

The longtime front-runner for the presidential nomination is seen by Sanders’s backers as part of the system they want to overhaul. While most Sanders’s supporters seem to view President Barack Obama favorably, some regret that Obama hasn’t been able to achieve more domestic policy goals of the left.

Sanders’s growing legion of

IN this January 19, 2016, photo, Democratic presidential candidate Sen. Bernie Sanders, Incumbent-Vermont, speaks at the Fort Museum Opera House in Fort Dodge, Iowa. Sanders is attracting Americans who are in search of more than a protest vote. Yes, Sanders’s backers say they’re frustrated with a system they believe is rigged for the wealthy. But many say their support for the Vermont senator is also driven by real hope in his promise of a political revolution and a belief that his ideas are bold enough to bring economic security to the middle class. AP/ANDREW HARNIK

supporters has him positioned for possible victories in the leadoff Iowa caucuses on February 1 and New Hampshire’s primary on Februry 9. The solid underpinnings of Sanders’s supports also make it more difficult for Clinton to cast him simply as unelectable and impractical.

“I look at Bernie’s opponents and I say, you know, these guys are in it for themselves,” said Robert Digrazia, 72, of Hollis, New Hampshire. “My sense is that Bernie is on my side.” For months, Sanders was seen as a formidable liberal foil for Clinton and a Democratic equivalent of Donald Trump—

antiestablishment figures with populist appeal and the ability to draw massive crowds. It’s only in recent weeks that polls suggest Sanders has become a threat to defeat Clinton in the two states that traditionally begin the stateby-state nominating contests.

His campaign believes twin victories would give him an opening to push forward for the nomination.

“It’s just a question of trying to get momentum,” said Tad Devine, a top Sanders adviser.

Sanders and Trump share outsider appeal, as well as overlapping views on trade and foreign policy.

Steve Stanley, a 63-year-old

“union guy” from Earlham, Iowa, said that between Sanders and Trump “you’ve got an alternative” to the politics-as-usual candidates.

Still, there’s noticeably less anger at Sanders events than among people at Tr ump ra llies, and nearly all of those interviewed were familiar with the outlines of Sanders’s policy proposals.

“It’s his consistent record that I really like,” said Hunter Hansen, a 22-year-old recent college graduate from Fort Dodge, Iowa. “And the fact that he’s not bought by big lobbyists, big corporate interests.

His opinion isn’t bought.”

Sanders is a fierce opponent of super political action committee, which can collect unlimited donations. He mentions at every campaign event that his average campaign contribution is $27.

He also has become increasingly critical of the high-dollar speaking fees Clinton received from the same Wall Street firms that Sanders wants to break up.

As the race has tightened, Clinton has vigorously attacked Sanders, accusing him of flip-flopping on gun-control measures, being a foreign policy lightweight, and calling for plans that are unrealistic. She specifically has challenged his call for free tuition at public colleges and universities and for a taxpayer-financed health-care system. Among some undecided Democrats, the feasibility of Sanders’s proposals is a

concern. “Even some of the Democrats won’t want to go along with some of his stuff, so I wonder how much he can do,” said Chris Short, 35, who attended a Sanders gathering this past week in Fort Dodge.

But those backing Sanders or leaning his way give the senator credit for thinking big and being willing to upend a system they no longer believe is working for the middle class.

“Bernie’s got the gumption and the persistence to win and be a good president,” said Dick Champagne, 74, an independent New Hampshire voter, who is backing Sanders and volunteering for his campaign after first favoring Trump.

Most of Sanders’s supporters, who were interviewed, backed Obama and remain generally supportive of the president. But there’s frustration over the Asia-Pacific trade deal and the president’s years of dawdling over the Keystone XL oil pipeline from Canada to the US Gulf before finally rejecting it.

There also is concern that while Wall Street banks have only gotten bigger after the 2008 financial crisis, and that the economic recovery doesn’t always feel real for the middle class.

When it comes to Clinton, Sanders’s backers views range from indifferent to disdainful.

“I have no basis for this, but I don’t like her,” said Carolyn Ferry, a nurse from Eagle Grove, Iowa, who plans to caucus for Sanders. AP

World

sMirror Police charge 17-year-old boy in Canada after 4 shot dead

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ORONTO—A 17-year-old boy was charged with four counts of first-degree murder and seven counts of attempted murder in a mass shooting at a school and home in a remote aboriginal community in western Canada, officials said.

The police said the male suspect can’t be named under Canada’s Youth Criminal Justice Act. Royal Canadian Mounted Police Supt.

Grant St. Germaine said nine people were shot in the school, including a female teacher’s aide who died at the scene and a male teacher who died in a hospital. He said seven people wounded on Friday’s shooting at the school are hospitalized.

Two brot hers, 17-yea r- old Dayne Fountaine and 13-year-old Drayden, were shot and killed in a home before the gunman headed to the grade 7 to 12 La Loche Community School, the police said.

The police responded to a call of shots fired at the school shortly after the lunch hour. Royal Canadian Mounted Police Commanding Officer Brenda Butterworth-Carr said when officers arrived at the school, they saw the front door had been shot open.

They entered the school, spotted the suspect and gave chase before apprehending him. He is due in court next week. The police said on Saturday that they were not aware of a motive and declined to say what type of gun was used.

The school is in the remote Dene aboriginal community of La Loche

in Saskatchewan Province. La Loche is a community of less than 3,000, where just about everybody knows everybody else. “This is a significant event for Canada,” St. Germaine said. “It’s a huge impact on the community of La Loche.

It’s a part of changing times. We are seeing more violence.” Residents lighted candles and placed flowers at a makeshift memorial outside the school. Shootings at schools or on university campuses are rare in Canada. However, the country’s bloodiest mass shooting occurred on December 6, 1989, at Montreal’s Ecole Polytechnique, when Marc Lepine entered a college classroom at the engineering school, separated the men from the women, told the men to leave and opened fire, killing 14 women before killing himself.

The educational assistant killed at the Saskatchewan school was identified as 21-year-old Marie Janvier. Deegan Park, her boyfriend of three years, said he would have given up the rest of his life just to spend another year with her.

“I grew up not a good guy, but she turned me right,” Park told The Associated Press. “She was that much of a great person to turn me right from all the wrongdoings I used to do.... She was a fantastic person.”

“I loved her, I really did,” said Park, who remembered her smile and how she would blush when she was happy. Kevin Janvier said his daughter was an only child. “I’m just so sad,” he said. AP

news@businessmirror.com.ph | Monday, January 25, 2016

A9

Nicaragua: 13 Costa Ricans killed when tourist boat capsizes

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ANAGUA, Nicaragua—A tourist boat carrying more than 30 people capsized in bad weather off the Caribbean coast of Nicaragua on Saturday, killing 13 passengers, authorities said.

Mario Berrios, the Nicaraguan navy’s commander for the southern Caribbean region, said the dead were all Costa Rican nationals who were traveling aboard

the Reina del Caribe, Spanish for “Caribbean Queen.”

The vessel went down amid rain and strong winds as it was ferrying between the Corn Islands, a

popular tourist destination. Berrios said that, of the 32 passengers on the boat, 25 were Costa Ricans, four were Americans and three were Nicaraguans.

He added that most of the 13 dead were women. The other 19 passengers were rescued.

“This is a great tragedy, truly painful, because they were our Costa Rican, Central American brothers and sisters who were vacationing in the waters of the Nicaraguan Caribbean,” government spokesman Rosario Murillo told the official media portal El 19 Digital. Berrios said the boat’s

captain and owner was detained because the vessel was not supposed to be sailing during the inclement weather that has been lashing the region for several days.

“There was a warning that the weather conditions would be bad, but it appears that was ignored and this tragedy happened,” Berrios said. Authorities had suspended boat launches in the area due to winds reaching 25 knots to 30 knots (29 miles per hour to 35 mph). Nicaraguan authorities were working with their Costa Rican counterparts to repatriate the bodies Sunday. AP

Inmates rappel from roof to escape California jail

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OS ANGELES—An alleged killer and two other inmates escaped from a Southern California maximum-security jail by cutting through half-inch (1.3-centimeter) steel bars and rappelling from the roof by a makeshift rope, authorities said on Saturday as they continued hunting for the men.

“It was very well thought out and planned,” Orange County sheriff’s Lt. Jeff Hallock said on Saturday at a news conference.

The inmates were last seen at 5 a.m. on Friday at the Orange County Central Men’s Jail in Santa Ana, about 40 miles (64 kilometers) southeast of Los Angeles. They could have

escaped any time between then and late Friday night.

“The inmates cut through half-inch steel bars to facilitate their escape,” Hallock said.

They also cut through plumbing tunnels and finally made it to an unguarded area of the roof where they were able to rappel to the ground using some kind of makeshift rope, Hallock said. They were last seen wearing orange jail jumpsuits, he said.

The inmates were seen at a 5 a.m. inmate count and were discovered missing at the 8 p.m. count, Hallock said.

Before the nighttime count, there was

some kind of disturbance at the jail that may have been part of the escape plan, Hallock said. It slightly delayed the discovery that the men were missing, he said.

Some “small pieces of evidence” have been collected and investigators will be looking at surveillance camera footage, Hallock said.

Earlier, Hallock said it was the first escape from the 900-inmate facility in 20 years. The inmates include 20-year-old Jonathan Tieu, who had been held on a $1-million bond since October 2013 on charges of murder, attempted murder and shooting at an inhabited dwelling.

His case is believed to be gang related.

Hossein Nayeri, 37, had been held without bond since September 2014 on charges of kidnapping, torture, aggravated mayhem and burglary. Nayeri and three other men are accused of kidnapping a California marijuana dispensary owner in 2012. They drove the dispensary owner to a desert spot where they believed he had hidden money and then cut off his penis, authorities said.

After the crime, Nayeri fled the US to his native Iran, where he remained for several months. He was arrested in Prague in November 2014, while changing flights from Iran to Spain to visit family. AP

Tourism&Entertainment BusinessMirror

A10 Monday, January 25, 2016

Editor: Carla Mortel-Baricaua

Scaling the Great Wall of China ‘T S    H D. T

HE Great Wall reflects collision and exchanges between agricultural civilizations and nomadic civilizations in ancient China.

It provides significant physical evidence of the far-sighted political strategic thinking and mighty military and national defense forces of central empires in ancient China, and is an outstanding example of the superb military architecture, technology and art of ancient China. It embodies unparalleled significance as the national symbol for safeguarding the security of the country and its people.”

THE perspective of the Great Wall

That was what the United Nations Educational, Scientific and Cultural Organization (Unesco) said when it has listed the Great Wall as a World Heritage in 1987. Just like a gigantic dragon, this one of the great wonders of the world winds up and down across deserts, grasslands, mountains and plateaus, stretching from east to west of China.

Recently, I had the opportunity of visiting this appealing attraction, owing to its architectural grandeur and historical significance. The trip was part of the prize which I won in the Eighth Bright Leaf Agriculture Journalism Awards last year.

No one really knows how long the Great Wall is, but some said it is around 6,300 kilometers in length. Now if you measure the length of all the different sections of the Wall, the distance is more

found human remains buried under parts of the Wall.

According to our guide, there are three greatest mountain passes of the Great Wall. The first two are Jiayuguan Pass and Shanhaiguan Pass.

Most of the leaders mentioned earlier visited the place via Badaling, in the northern part of the 18-km long Guangou Valley, which is one of the two “subpasses” of Juyongguan Pass. The one in southern part of the valley is called Nan. It was at the Juyongguan Pass that we went to scale the Great Wall. This mountain pass is in the Changping District, and it is about 50 km away from central Beijing.

Travel time was more than an hour because of heavy traffic.

When we arrived, there were already people going up. I looked up at the highest part of the Great Wall

like 22,000 km. Go figure that out!

The wall relics are mainly distributed in 15 provinces and regions, including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shandong, Henan, Shaanxi, Gansu and Qinghai. There are 43,721 relics, including the walls, trenches, towers and fortresses.

The Great Wall of China is, perhaps, the longest structure ever built by humans. The widest section of the wall is around 9 meters (30 feet). The highest point of the wall is around 8 meters (26 feet).

The labor force to build the Great Wall includes soldiers, forcibly recruited peasants, convicts and war prisoners. And it has been called the longest cemetery on Earth as over a million people died building the Wall. Some archaeologists have

THE author takes a rest.

SOUVENIRS for sale

SUPPORT PROGRAMS TO PUSH KOREA-HOSTED INTL EVENTS T

HE annual Rotary International Convention (Rotary16) is one of many upcoming events set to benefit from a range of expanding support programs offered by the Korea Tourism Organization’s (KTO) Korea Meetings, Incentives, and Conferences and Events (MICE) Bureau division. Available to international meetings hosted in Korea with at least 500 overseas participants, the customizable programs have been designed to both improve the quality and boost brand awareness of each event. The large-scale Rotary16, for example, which is set to unite 50,000 participants from 200 countries in May, will make full use of the bureau’s diversified MICE packages.

Other major 2016 events similarly benefiting from the programs include the Seventh World Fisheries Con-

and assumed it was very steep.

But I figured out that I can definitely climb it since I was able to scale Mount Apo, the country’s highest peak.

I was wrong. I was still young when I did climb Mount Apo; I was in my 20s. Now it’s a different story.

I am older and have gained a lot of weight. The words of Pam Wolf, the wife of my friend, Ben, came into my mind: “It can be a hard climb. I’m so glad we did it some years back. Not sure I would get as far now.”

Actually, it was a breeze at the lower part. It was just like walking in a park. People stop and take photos (selfies or in group). Then, it’s a long walk going to the peak. In the beginning, it might be alright, but as you continue scaling the Great Wall through the stairs made of stone, you get a feeling of being dizzy.

gress also scheduled in May, and the 94th General Session and Exhibition of the IADR in June. The three events alone will bring a total of 29,500 overseas business visitors to Korea.

Support programs for convention participants of the above will include an on-site Korea booth from which they can discover and experience the local culture, as well as smart name tags containing bar codes that identify their status, such as attendee, delegate, staff, etc. Meanwhile, complimentary promotion of the events will be provided on all 23 multicube digital display screens at the Incheon International Airport baggage claim area 108 times per day for the duration.

In addition, the Korea MICE Bureau will conduct safety training programs for tourism organizations and

professional convention organizers associated with each event to ensure their smooth running. Topics include identifying potential dangers, rapid response procedures and accident management.

These initiatives join the evergrowing range of Korea MICE Bureau support programs for large-scale events hosted in Korea, including assisting with pre- and post-tours, site inspections, cultural entertainment subsidies, bid presentations and more.

“Event planners really do get more in Korea, from event marketing and communications to comprehensive financial and promotional support” said Min Hong Min, KTO executive vice president for International Tourism.

“There has never been a better time to discover how Korea goes ‘Beyond Meetings’ for MICE,” he added.

Going up was not a problem, but it was going down that made me think otherwise. I was almost at the top when I decided to go down.

“Where are you going?” Mauricio Victa, a photographer of the BusinessMirror, asked me.

“I won’t do it anymore,” I replied.

But before we parted ways, he took some photos of me in that part of the Great Wall. It happened that Editha Antenor of the Philippines Graphic was also there. So we had a souvenir photo.

“The biggest building the astronauts could see from the space is the Great Wall, which looks very much like a black worm,” someone once said. So the question is: Is the Great Wall truly visible from the moon?

Yang Liwei, China’s first astronaut who was lifted into the outer space by the spacecraft Shenzhou

V on October 15, 2003, gave a definite answer to a reporter after he reached the ground. He said: “No!” The Scientific American, in its February 21, 2008, issue, reported: “The wall is only visible from low orbit under a specific set of weather and lighting conditions. And many other structures that are less spectacular from an earthly vantage point—desert roads, for example —appear more prominent from an orbital perspective.”

Whether you can see it from the moon, the Great Wall is definitely magnificent!

As American President Barack Obama said when he visited the place in November 2009: “It’s majestic. It’s magical. It reminds you of the sweep of history, and that our time here on Earth is not that long, so we better make the best of it.”

LOVE locked allover the place

DOT-Icex Spain partner for a tastier Madrid Fusin Manila 2016

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HE Department of Tourism (DOT) sealed the partnership with Icex España Exportación e Inversiones, the public export promotion agency belonging to the Ministry of Economy and Competitiveness of the Kingdom of Spain, for another rendition of Madrid Fusión Manila (MFM).

MFM is the only Asian edition of Madrid Fusión, one of the most important international gastronomy gatherings in the world. Next year’s theme is “The Manila Galleon: East Meets West,” in celebration of the 450th anniversary of the ManilaAcapulco Galleon Trade that linked Asia with the Western world. Confirmed chef presenters are some of the world’s top-ranked chefs Joan Roca, Dani Garcia and Jordi Butron from Spain; Virgilio Martinez from Peru; Enrique Olvera and Jorge Vallejo from Mexico; Jose Andres, Leah Cohen, Amy Besa, Romy Dorotan and Paul Qui from the US; Yoshihiro Narisawa from Japan; Jungsik Yim from South Korea; David Thompson from Thailand; Nurding Topham from Hong Kong; Kevin Cherkas from Indonesia; and Myke Sarthou from the Philippines. MFM 2016 will be one of the high-

lights events of the Visit the Philippines Again 2016 campaign of the Tourism Promotions Board (TPB), the marketing arm of DOT. Present during the memorandum of understanding signing were

(from left) Spanish Ambassador Luis Antonio Calvo, Tourism Secretary Ramon R. Jimenez Jr., and Economy and Competitiveness of the Kingdom of Spain Minister Jaime Garcia-Legaz.

Tourism&Entertainment BusinessMirror

Editor: Carla Mortel-Baricaua

Monday, January 25, 2016

A11

TIME TRAVELING IN KYOTO for contemplation and solace after exploring the castle.

Serenity in the urban jungle

NIJO Castle of the Tokugawa era

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S    J B

HE flight to Osaka was uneventful; everything I heard about Japan’s technology was true, from the train that took us from the terminal to the arrival area, to the futuristic features of the airport.

I even found the heated toilets that played a sound whenever you pressed a button novel.

TORII gates create an otherworldly experience for visitors.

KYOTO’S narrow walkways

I was in a rush to get out of the city to discover what Japan was like centuries ago. I bought a train ticket that will take me to the country’s former capital, Kyoto.

Moving through past and present

BOARDING the train from the airport to the ancient city of Kyoto was like going into a wormhole. It zipped through skyscrapers, underground tunnels, people came and went; the landscape transformed from concrete to wood, from pavement to farms.

The train stopped at Kyoto station, I tempered my expectations about what I will see and experience.

I was expecting an old city, with charming buildings in decay beside restored thousand year-old temples.

The train station was only a glimpse of the modern metropolis just a few meters outside.

The maze-like subway was difficult to navigate; people zipped in and out of platforms, boutique stores, restaurants and 7-Elevens.

A booming voice in Japanese dictated which trains arrived and which ones are about to leave. Everything

was prompt, down to the second; the organized chaos was different from Manila. It took a while for me to take everything in, things happened so quickly, time moved slower back home.

I left the station looking for solace, searching for a place to slow down. The train I boarded zipped through neighborhoods until it stopped at the heart of the city near the old town.

The moment I stepped out of the subway, I felt Kyoto’s paradox; it was an ancient city juxtaposed into the present. Towering office buildings and hotels right next to restored temples and old houses, the branded stores mixed with local shops selling clothes, handicrafts and knick-knacks, McDonald’s, and KFCs side-by-side with izakayas (informal drinking establishments that serve food along with drinks) line the streets. It is normal to see locals wearing kimonos, whether young or old, man or woman walking with people wearing suits, high heels, short skirts and Nikes. Kyoto is a vibrant city with a beating heart that is both old and new.

A walk through narrow alleys will take you to small, charming local

THE Golden Pavilion with three distinct architectural styles

GARDENS and green spaces of temples amid urban jungle

restaurants that only fit a handful of people, but nonetheless filled with salary men looking to unwind. The cramped spaces were like intimate hiding places for those seeking to get away from the fast pace of the city. A shot of sake, the crackling of kitchens concocting tempura and katsudon mixed with conversations among friends and colleagues are slow moments that you long and wait for.

Imperial past

AS the ancient capital of Japan, the imperial court gathered and discussed political affairs whenever they visited Kyoto.

Nijo Castle, a United Nations Educational, Scientific and Cultural Organization (Unesco) World Heritage Site, was used as a Kyoto residence for the Tokugawa epoch’s shoguns. The complex contained various chambers, offices, and rooms for the shoguns and other guests of the imperial court.

The design of the castle manifested the social control of the shoguns of that time. The outer cham-

DESPITE the frenetic and urban pace of Kyoto, the city has quiet places that locals hold sacred. From ancient temples to Zen gardens, there is solace and a place to slow down in different parts of Kyoto.

Fushimi Inari Taisha is the most famous place of worship in Kyoto, characterized by the towering, orange torii gates. People see Inari, the god of rice, as the patron of business, watching over their companies. The shrine is not only popular with foreign tourists, locals visit to pay their respects and enjoy nature. I took my time exploring, taking in the quietness of early morning and night where few people wandered.

The sight of the gates climbing up the mountain symbolized the spirituality of ancient Kyoto. Visitors had to hike up and cleanse their mind and bodies before they reached different mounds for private worship.

With each step and gate passed, they had to shed their former selves.

Stop time at Ryoan-ji Zen Temple, a Unesco Heritage Site in the northwest part of the city. The temple follows the Myoshin-ji school of the Rinzai branch of Zen Buddhism. The kare-sansui, or dry landscaped design, features rock formations amid carefully chosen pebbles that facilitate contemplation and meditation.

Kinkaku-ji, or the Temple of the Golden Pavilion, is another Zen temple in the city. However, if you are looking for solace, you came to the wrong place. As one of the most famous temples in Kyoto, Kinkakuji attracts several tourists every day, snapping photos and walking through the garden. The design of the golden pavilion integrates three styles, which are Zen, samurai and shinden, with each floor following a distinct style.

Ginkaku-ji Temple, also known as the Temple of the Silver Pavilion, is similar to Kinkaku-ji. The shogun used the temple grounds as a place of contemplation and rest. Despite the frenetic coming and going of tourists, the temple managed to keep its veil of tranquility. Visitors kept their distance and respected the sacredness of the complex.

The rock compositions and placements, bridges and plants of the gardens in both temples follow a certain arrangement to facilitate meditation and deep thought. Beauty does not have to be grand; contemplation and quietness do not have to be in isolation but is a state of mind. The simplicity of the landscaped gardens show small things and details can be beautiful.

I left Kyoto with a sense of wonder; I watched the city transform, coming to life with its bright lights.

I imagined what it was like centuries ago; was it the same? Was it different? The trains and buses darted from place to place, everything moved fast and precise. The paradoxes of the new and old Kyoto exemplifies a country that holds its past close to its heart, cherishes it and looks at it with childlike wonder, using it as a guiding light to map its future.

I headed to Kyoto station trying to catch the next train to Osaka. I was not in a hurry, as I knew it will arrive on time, it always does. Then I figured,-time is a state of mind here. The door of the train opened, I entered the wormhole waiting to arrive in the same place where I started this journey.

NIJO Castle’s beautifully landscaped complex

bers of the Ninomaru palace were for low-ranking visitors, while the subtle and inner rooms were for high-ranking officials. The entrances to the different quarters that separated the low-ranking guests from their high-ranking counterparts did not have bodyguards. The Tokugawas did this as a show of power to intimidate visitors.

I walked through the castle’s chambers and rooms to get a glimpse of what life was like during the city’s

imperial past. The social structure of the shogunate was clear, certain areas of the castle were only for chosen people, and each room had a separate use.

The imperial court had an eye for beauty; the complex had comely gardens where trees towered above the walls. The carefully positioned and placed stones and pine trees were a work of art, exemplifying Japanese simplicity and precision. These pockets of green are ideal spaces

Travel tips

■ The trains and buses have stations near tourist destinations, such as the Fushimi Inari Shrine and Nijo Castle, making it easy to travel from one place to another. Riding taxis is an unnecessary expense.

■ Bring your passport with you when you go shopping, you get discounts and tax exemptions when your purchases reach a certain amount. The best time to visit tourist attractions is as soon as they open; this allows you to explore the area minus the crowd.

A12

Science Monday

Monday, January 25, 2016

BusinessMirror

10,000YEAROLD MASSACRE

Origins of human violence

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N the banks of an ancient lagoon in Kenya, researchers have found evidence of what is thought to be the oldest massacre involving hunter-gatherers.

The skeletal remains of 12 adult victims discovered in Nataruk, near Lake Turkana, tell a grim story of merciless violence by one group of hunter-gatherers against another about 10,000 years ago.

Ten of the skeletons show clear signs of violent trauma, including club and arrow wounds to the head, ribs, knees, hands and neck, according to a paper published last week in the journal Nature.

One skeleton was found with what appears to be an obsidian arrow still lodged in its skull; another had an arrow in its chest.

Two of the skeletons—those of an older man and a woman who was at least six months pregnant— showed no evidence of lethal injury.

But researchers say it is possible they suffered violent deaths, as well. Fatal arrow wounds to the abdomen, for example, don’t necessarily leave skeletal lesions.

Marta Mirazon Lahr, a human evolutionary biologist at the University of Cambridge who helped uncover the grisly scene, said it suggests warlike behavior goes back further in human history than was previously thought.

“Most scholars have considered that warfare emerged as a result of ownership of land, farming and more complex political systems,” she said. “Our findings show that this hypothesis is incorrect, and that intergroup conflict had a much longer history.”

Evidence of warfare is well preserved among settled, sedentary communities—either among themselves, or between them and hunter-gatherers they may have encountered. But until now, there was no archaeological record of armed conf lict between early nomadic hunter-gatherer groups, Lahr said.

There have been signs of human violence that predate the Nataruk find, however. For example, human remains discovered at the Qadan graveyard at Jebel Sahaba, Sudan, go back 12,000 to 14,000 years ago and show clear signs of violence.

But the fact that the victims were

buried suggests they were part of a more sedentary society.

There have also been isolated examples of violent trauma not far from Nataruk, but whether that was a result of intergroup fighting is unclear.

“That is what is unique and important about this paper,” said Kim Hill, an anthropologist at Arizona State University who was not involved in the study. “There is little doubt that this represents intergroup warfare.”

The prehistoric carnage reported in the paper occurred about a mile from the shores of Lake Turkana, which at the time provided a fertile environment for many plants and animals. The fossil record suggests the area was brimming with life, including elephants, hippos, rhinos, zebras, warthogs, gazelles and millions of fish—as well as lions, hyenas and wild dogs.

“The edge of the lake must have been an amazing place to live— but also dangerous,” Lahr said.

“We have also found several fragments of human fossils at other sites with evidence of having been eaten by carnivores.”

The researchers believe the victims of the massacre were a small traveling band of huntergatherers who stopped by a lagoon to hunt or fish. The position of the skeletons suggests that the victims’ hands were bound at the time of their death. Since their killers wielded weapons that are not associated with hunting and fishing, the researchers believe the attack was planned.

It is impossible to know how big the group of assailants might have been, but Lahr said it was probably larger than that of the victims.

“The most important thing in determining whether it is worth attacking is simply the numbers,” she said.

T here is no ev idence t hat graves were dug for the victims, and the haphazard position of their bodies suggests they were not moved after their deaths.

IN this August 2012 photo, researchers Frances Rivera (right), Michael Emsugut (left) and Tot Ekulukum excavate a human skeleton at the site of Nataruk, West Turkana, Kenya. The skeleton of a woman was found lying on her back, with lesions on her neck vertebrae consistent with a projectile wound. She also had multiple fractures on one of her hands. Scientists said it’s one of the clearest cases of violence between groups among prehistoric hunter-gatherers.

MARTA MIRAZON LAHR VIA AP

Despite the amount of forensic evidence uncovered at the site, it already seems clear that the discovery will not put to rest the raging debate among anthropologists over whether hunter-gatherers engaged in warfare.

Douglas Fry, an anthropologist at the University of Alabama at Birmingham, suggested the abundant resources near Lake Turkana made it possible for the huntergatherers who lived there to enjoy some aspects of a sedentary existence, including food storage and more social complexity. These, he argues, lead to warlike tendencies.

“My suspicion is that the finds described by Dr. Lahr and her colleagues ref lect the increased intergroup conflicts that become possible—even likely—during a prea g r ic u lt u ra l re volut ion that ushered in a host of social changes,” said Fry, who wasn’t

involved in the Nature study. Hill saw the paper as offering further evidence that warfare among hunter-gatherer societies probably occurred quite frequently as a way to gain resources.

“In short, theory and common sense suggests that people will kill when they can get away with it and when there is something to gain,” he said. “Hence, intergroup violence has probably been part of Hominin natural history for a long time,” Lahr agreed.

“Nataruk is extraordinary for having preserved what was probably not an unusual event in the lives of hunter-gatherers at the time,” she said. “But we should also not forget that humans, uniquely in the animal world, are also capable of extraordinary acts of altruism, compassion and caring. Clearly both are part of our nature.”

Los Angeles Times/TNS

Editor: Lyn Resurreccion • www.businessmirror.com.ph

‘Supreme Court erred in hastily applying precautionary principle on Bt talong’

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B E T. R J.

HE Supreme Cour t (SC) decision declaring field experiments on Bacillus thuringiencis (Bt) talong (eggplant)permanently enjoined was justified on the basis of the “precautionary principle.” The precautionary principle says that “where there are potential adverse effects [of a technology], lack of full scientific certainty shall not be used as a reason for postponing appropriate measures to prevent environmental degradation.”

This principle is recognized both by international conventions, where the Philippines is a signatory; and by Executive Order 514 issued by former President Gloria Macapagal-Arroyo. Thus, the use of the precautionary principle is deemed a legal matter, and well within the scope of work of the judiciary.

Bt talong refers to eggplant that has been genetically modified to control the fruit and shoot borer, an insect pest that can cause more than 80-percent economic loss to farmers. Researchers on Bt talong from the University of the Philippines Los Baños have experimentally demonstrated that it is effective, and the use of this technology can dramatically reduce the current use of toxic chemical insecticides.

The safety of Bt talongis strongly supported by experimental and other evidences.

However, critics led by Greenpeace argued that Bt talong can cause adverse effects to the environment, also citing evidence from various sources. This conflict of opinion created a scenario of uncertainty, that, along with the claim of “potential adverse effects” constitute the conditions for application of the precautionary principle.

The SC necessarily had to accept, too, that Bt talong can cause potential adverse effects, before it could decide to apply the precautionary principle on the case of Bt talong.

However, potential adverse effect is a judgment that is not a matter of interpreting law but a matter of evaluating scientific evidence. While it may be correct to use the precautionary principle, because it is what the law says, deciding whether a technology should be covered by the precautionary principle is another matter.

While all technologies have elements of risk, not all of them can be banned on the basis of the precautionary principle.

Did the SC err in judging Bt talong to have potential for adverse effects and, therefore, should be covered by the precautionary principle? To answer this question, one must apply standards. There are two standards to choose from: absolute safety and relative safety. The standard accepted by all regulations on plant genetic engineering, including the Philippines’, is relative safety, because absolute safety is impossible to achieve for Bt talong—or any technology for that matter.

Establishing absolutely safety means proving that harm does not exist, and the scientific method is not adequate for this task. If absolute safety will be used as the standard by the courts, no technology will pass judicial challenge.

Simply stated, the concept of relative safety means that a new technology must not be more harmful than the old technology it is trying to replace.

Since the decision of the SC did not show any evaluation of the “old technology” being replaced by Bt talong, its judgment of the relative safety of Bt talong can be challenged for lack of rigor, leading to injustice or, worse, willfully exposing farmers and consumers to greater risks. (Is the latter a criminal offense? Let the courts decide!)

What are the “old technologies” in question?

One is the natural defense mechanism of the eggplant. The SC should have evaluated these.

Like all plants, eggplant cannot run away from its enemies, so it resorts to intimidation and chemical warfare. The “natural” eggplant intimidates it enemies with its thorns, and kills those who cannot be intimidated by poisoning.

Thorns and glycoalkaloids, the weapons in question, are not known to be very selective. For the natural eggplant, humans are enemies because they eat their babies (the seeds of eggplant). Fortunately, most varieties of cultivated eggplant do not have these weapons anymore.

Farmers and plant breeders eliminated these weapons by breeding and selection because they cause hazards to farmers and consumers alike. This is the reason farmers now have to use synthetic chemical pesticides to protect the eggplant from insect pests.

The SC also failed to evaluate the safety of synthetic chemical pesticides. What do synthetic chemicals do to other forms of life in the farm? How toxic are they to humans? Have they been subjected to longterm feeding trials? How do they compare in safety to Bt talong? The Bt talong is an attempt to use a natural defense mechanism, but selectively.

The idea is to prevent collateral damage by targeting only the pest; not humans or other forms of life. However, like other “natural” defense mechanisms, the Bt eggplant is not perfect. If one is really determined to show it can do harm, there is likely to be something that it can harm, in addition to the pest itself. One can easily demonstrate harm in the lab, even with perfectly harmless stuff, simply by giving high doses or longer exposures. Think of table salt, which can kill at high dosage, or ice, which can kill with prolonged exposure.

The safety of Bt eggplant should have been evaluated in comparison with alternatives, which are also imperfect.

The fact that the SC did not perform this evaluation before judging that Bt eggplant should be covered by the precautionary principle, is a good reason it should reconsider its decision. There is no doubt, considering the wisdom of the SC, that if it attempted to do the relative safety evaluation and found that information is insufficient, it would have ordered additional field trials instead of “permanently enjoining” these.

Dr. Eufemio T. Rasco Jr., PhD, is a plant breeder and Academician at the National Academy of Science and Technology.

FILIPINOAMERICAN WOMAN ON SHORT LIST

Mars travel an ‘opportunity to help mankind’ S    R R R

F

ILIPINO-AMERICAN entrepreneur Jaymee del Rosario is motivated and excited at the same time these days. She is one of the two Filipinas short-listed from more than 202,586 applicants for the “Mars One” project, the first ever Mars space travel project.

A sked why she joined t he search, the 28-year-old president and CEO of California-based International Metal Source said she wants to contribute in the search for an alternative place for people to live and settle.

“Stephen Hawking is one of my inspirations in this endeavor,” del Rosario told the BusinessMirror in an interview after a recent news conference in Quezon City.

“I strongly believe in Dr. Hawking’s belief that we have to explore other places because we owe it to the other creatures in our planet,” del Rosario added.

Although the Mars voyage of Netherlands-based “Mars One” is a one-way ticket, del Rosario remains unfazed by the risk because she considers it as a great opportunity to help mankind find and build another place in the future to travel to and live in.

As far as the possibility of death during the mission is concerned, del Rosario said it is a risk she has to undertake.

“Death is just an exit, just a part of life. You can walk out of the door and die. As long as you are at peace in your heart, I’m at peace with death. But, of course, this is not what this voyage is about,” del Rosario said She said she is “optimistic, hopeful and excited about what this Mars space travel can mean to life for us humans, to helping build a better future for all mankind.”

She added: “If I am privileged to have been chosen among those to finally travel to Mars, I hope that we can help create a new world of

peace and a world of conservation of the environment there. If I set foot on Mars, my first words would be: Mars, no war.”

Del Rosario is scheduled to compete with the other 100 remaining Mars astronaut candidates from all continents of the world.

Nevertheless, she is focusing on her preparation just in case she is selected to join the Mars expedition. For physical conditioning, del Rosario joins half-marathons and regular hiking.

“I am also on a diet regimen of fish, chicken and vegetables only,” she added. “Developing people skills is also important so you blend well with the team,” she added. Speaking on behalf of Science Secretary Mario Montejo, Department of Science and Technolog y (DOST) Assistant Secretary Raymond Liboro commended del Rosario for making the country proud.

Liboro said that DOST supports development of science and tech-

nology to ensure not only Philippine economic growth, but also the continued upliftment of the people’s quality of life.

Del Rosario’s firm, International Metal Source, has been distributing raw metals and exotic alloys to aerospace, defense and commercial industries since 2009.

Mars One is a nonprofit organization that has planned to land the first humans on Mars and establish a permanent human colony there by 2027. The private spaceflight project is led by Dutch entrepreneur Bas Lansdorp, who announced the Mars One project in May 2012.

Mars One wants to start to send groups of four on the one-way trip to Mars by 2023. However, some sceptics think the Mars One project is just a “one big joke.”

Dr. Adam Baker, an expert of space engineering at Kingston University, branded the program ‘a big publicity stunt’ pointing out the people spearheading the project

DEL ROSARIO

“are doing very well to fire up the public about going and some time in next decade or two it may be possible to see a commercial model but currently it’s unlikely to succeed.

Besides the gigantic logistical concerns, Baker said the organizers have also to deal on the Mars radiation issue. Moreover, he added the Red Planet does not have the “same level of atmosphere to protect people from things like solar

flares; dust is a problem, how toxic it is to human life in the long run is not known.”

Meanwhile, a Filipino scientist who declined to be identified said the project is “too good to be true.”

The scientists added the age factor will also be an important factor since each traveler will add 11 years to their current age. “By that time, your age is not fit for space travel,” the scientist said.

Green Monday BusinessMirror

www.businessmirror.com.ph • Editor: Lyn Resurreccion

Monday, January 25, 2016 A13

Smart embraces role in DRRM

SMART free-charging service in Talavera, Nueva Ecija, during Typhoon Lando.

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OBILE leader Sma r t Communications (Smart) has taken its role in disaster risk-reduction management (DRRM) to heart, prepositioning communications support for the use of local government u n it s for emergenc yres pon se ef for t s, d ay s before t y phoon s Non a a nd L a ndo h it t he cou nt r y l a st yea r.

Sm a r t a l so pre p os it ione d emergency communications for affected populations so they can reconnect with their loved ones.

Over the years, Smart has gone beyond providing emergency communications to disaster-stricken communities. It has been actively working with local government units and various partners to build the capacities of high-risk communities to prepare for, manage and bounce back from disasters.

Recently, the telco’s contribution to DRRM was acknowledged by the Office of Civil DefenseCordillera Administrative Region (OCD-CAR) and presented Smart the “Advocate for DRRM” award under the Private Category.

Smart Infocast

OCD-CAR has been getting support from Smart for years now via the Smart Infocast, a Web-based emergency communications solution that allows OCD-CAR to send warning, advisories, preparedness and safety tips via SMS to 3,000 DRRM officers and residents in the region for free.

“Smart Infocast is a big help in spreading vital information to the public in the fastest way possible.

This increases their level of awareness and urges them to smartly prepare for incoming disasters. If you look at our data on the casualties, there’s a huge decrease in the number,” OCD-CAR Regional Director Andrew Alex Uy said.

All six provinces in the CAR are connected via Smart Infocast, which was launched in the region in 2012. Infocast currently has more than 800 users and 2 million subscribers. Other provinces and cities that use Smart Infocast include Aurora, Batangas, Quezon, Albay, Southern Leyte, Bohol, Cebu, Iloilo, Butuan, Cagayan de Oro and General Santos.

Besides OCD, the other government agencies that are connected via Smart Infocast include the Philippine Information Agency, Department of Science and Technology, Department of Education DRRM office, Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa), Department of Health and Philippine National Police Maritime Group.

OCD partnership

SMART has also given its full support to the OCD national office in its effort to institutionalize disaster communication protocols.

E a rly l a st ye a r OC D he ld the first-ever regional disaster communications conferences, dubbed as ICT Bayanihan, and Smart is the first telco partner of OCD in coorganizing these

regional meetings, which aim to institutionalize rapid emergency telecommunication teams to lead immediate response and support when there are disasters.

Apart from coorganizing the regional communication summits, Smart also developed the Batingaw app for OCD last year.

The app, which can be downloaded for free at Google Play Store and Apple App Store, is a handy resource and reporting tool for nationwide disaster management.

Free calling and charging services

RECOGNIZING communications as an important form of relief, Smart has been consistent in immediately providing free calls and charging services to communities affected by disasters.

During Yolanda, Smart’s satellite services connected Tacloban and other affected areas to the rest of the world.

Apart from tapping its local sales team and the Alagang Kapatid Foundation of TV5, Smart partnered with the Department of Social Welfare and Development to be able to instantly offer the “Libreng Tawag” and “Libreng Charging” services to more communities affected by disasters.

‘Pamilyang Ready, Pamilyang Panalo’ disaster-preparedness caravan

IN addition to providing emergency communications support, Smart is also running nationwide disaster-preparedness caravan called “Pamilyang Ready, Pamilyang Panalo” to help build the capacities of families in handling emergencies and disasters in their own homes.

The preparedness caravan, attended by 300 to 700 participants, is held in high-risk communities to help them prepare for emergencies and disasters through gamified learning sessions.

“To become a nation that is more capable and ready for any ty pe of disasters, each of us should do our part and help the government. Through our disaster-preparedness caravans, we hope to help Filipino families embrace preparedness as a lifestyle,” Smart Public Affairs Group Head Ramon R. Isberto said.

Since it launched the project in 2013, Smart was able to bring the preparedness caravan to 20 locations, reaching around 8,000 families nationwide.

‘Maging Laging Handa’ video series

DESIGNED for c hi ld ren who are most vulnerable during disasters, Smart also developed the “Maging Laging Handa” disa ster -read i ness educ at ion a l videos that are now integrated in the Disaster Risk Reduction curriculum of elementary students.

The localized video materials are verified by Pagasa, Philippine Institute of Volcanolog y and Seismology, and the Mines and Geosciences Bureau of the Department of Environment and Natural Resources.

WIND farm in Xinjiang, China WIKIMEDIA COMMONS

Iran’s sanctions relief opens way for bigger pollution cuts

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IFTING nuclear sanctions against Iran will boost the nation’s efforts to curb fossil-fuel emissions, one of its vice presidents said, even as the Islamic Republic plans to unleash an extra 1 million barrels of oil a day onto global markets.

Without the crippling economic restrictions on trade, Iran should be able to boost access to wind and solar power and technology to curb greenhouse gases from power plants, homes and factories, said Vice President Massoumeh Ebtekar, who is head of the country’s Department of the Environment.

“The removal of sanctions will open new vistas and give new opportunities for investment in green businesses, and green technologies for Iran,” Ebtekar said on Tuesday in a telephone interview from Tehran. “The sanctions created many hurdles and many limitations for us in our program to curb greenhouse-gas emissions.”

Iran is the world’s 11th-biggest emitter of the pollution blamed for global warming. It joined 194 other nations in Paris last December in agreeing to a new international deal to fight climate change, requiring all countries for the first time to limit their greenhouse gases.

The Islamic Republic said in a submission to the United Nations that it could triple its efforts if sanctions were removed.

Iran’s pledge was to uncondi-

tionally cut emissions in 2030 by 4 percent from what would otherwise occur. Absent sanctions, officials said they could achieve an additional 8-percent reduction, bringing the total cut to 12 percent.

Iran projects emissions will double to about 1,600 megatons of carbon dioxide in 2030 from 2015 levels, the country’s lead climate negotiator, Majid Shafie-Pour, said on Wednesday in a phone interview from Tehran.

With sanctions relief, it can reduce emissions in 2030 by about 200 megatons, with annual emissions between now and then averaging 100 megatons below the business-as-usual pathway, he said. Over 15 years, that amounts to 1,500 megatons of emissions avoided—the equivalent of more than a year’s greenhouse gases from Japan.

“We now have an open forum for technology development and transfer and capacity-building activities to be initiated and to attract more investors to secure the financial resources that we need to go along the path,” Shafie-Pour said. “We have high hopes to be

12% Iran’s total emissions cut by 2030 with sanctions removed

able to reduce our emissions over that time span.”

With sanctions in place, western companies haven’t been able to trade with Iran, cutting off the republic’s access to wind turbines and solar panels whose prices have plunged in recent years as technologies became more efficient.

The country has already laid the groundwork to expand its renewables industry, setting up feed-in tariffs for wind and solar that are “quite attractive,” according to Ali Izadi-Najafabadi, a renewables analyst with Bloomberg New Energy Finance.

He forecasts nonhydro renewable-power capacity to increase to 5.6 gigawatts by 2020 from 400 megawatts at the end of 2015.

“You’re starting from a very low base,” Izadi-Najafabadi said in an interview. “The opportunities with the feed-in tariff are quite attractive, and it’s a country that has extremely good wind resources. Solar is also picking up.”

Wind is set to grab the lion’s share of that capacity, about 3.9 gigawatts, and manufacturers Gamesa Corp. Tecnologica SA, Suzlon Energy Ltd., Nordex SE and

Vestas Wind Systems A/S are all scoping out the market, he said.

He signaled that Chinese companies are likely to be the first movers in the new market, followed by the South Koreans and then Japanese and European firms.

“We have been witnessing delegations from Asian and European countries,” Ebtekar said. “These are mostly businesspeople—international corporations in different areas like energy, oil and petroleum, but also in wind technology, in water purification and waste management. “We have a lot of different proposals in terms of investment.”

The vice president, one of 11 in Iran’s government, said that improving energy efficiency in power plants, industrial facilities and homes will bring economic benefits, as well as being “very important” parts of carbon reduction efforts.“The gas, the petroleum that we’re using come from our natural resources,” she said. “It is part of our national wealth, and we have to use it properly.”

Removal of the sanctions follows the conclusion on Saturday by the International Atomic Energy Agency, the UN’s nuclear body, that Iran has complied with the terms of an international agreement to curb its nuclear development program. Even so, Ebtekar said the removal of sanctions alone won’t be enough to spur Iran’s more ambitious climate pledge.

“It’s more than just a lifting of the sanctions,” she said. “It is practical measures and implementation. We have to witness the actual changes that will come after the lifting of the sanctions.” Bloomberg News

Start the year right with green tips from WWF

H

UM A NI T Y generates more than 10,000 million tons of solid waste each year—and only 12 percent of this is reused and recycled, a Philippine solid-waste management group said. Though a season of joy, the holidays also contributed to the planetary problem of solid waste.

The World Wide Fund for Nature (WWF-Philippines) shared these simple tips to give planet Earth the gift of healing. 

Go for an organic lifestyle.

Going green starts in the kitchen. Organic food may be more expensive but these are free

of fertilizers and pesticides, which degrade groundwater and carry potential health risks. By purchasing organic produce, you are not only helping Mother Nature but also supporting our local farmers.  Use old shoe boxes. Reuse your old shoe boxes. Turn them into works of art. Boost your creativity by decorating boring old boxes and using these to store items and organize your home

 Start a green family tradition. Make your family partici-

pate in eco-conscious activities.

You can easily think of simple activities, like camping and tree planting, where you and your

family can work together to raise environmental awareness.  Sort your wardrobe. As the saying goes, what you don’t use is not really yours. Evaluate what is in your closets and set aside some pieces to share with others. This will not just spread a smile of happiness to others but also reduce waste generation. 

Walk or bike, it’s more fun.

This New Year, try walking or taking your bike to go places. You’ll be saving money and reducing your carbon footprint while getting an excellent workout. What better way to start the New Year than by staying fit?

PLANTING native trees is a great family bonding activity. GREGG YAN/WWF

A14 Monday, January 25, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Candidates: They are not like us

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OLITICIANS spend much of their time—and ours—trying to convince us that we and they are the same. Probably, 80 percent of a political campaign is focused on this idea.

The candidate must persuade voters that they can identify with the candidate and that the politician easily understands the problems that an individual voter is facing every day. Only when this hurdle is overcome can the candidate offer solutions to those problems.

Voters rarely accept the solution, unless they feel that the candidate understands what it is like walking in their shoes. It is similar to the argument that it is difficult for a person to take advice about marriage from a priest who has never been married.

To gain a vote, the prospective elected official must argue that he or she is simply doing the job of president, legislator or mayor in the same way the individual voter would if that private citizen had the time to run for public office and win. That is why candidates love to be seen in places where people go every day—the public school, the bus terminal and at the local food stall.

Candidates are not photographed at five-star hotel cake shops; they have their pictures taken at the public market.

However, they must also project an image of being just a little bit more qualified than everyone else, having gone to a better school or coming from a “better” family. It is a critical and narrow path that politicians must walk to be at the same time “of the people” and yet a little “above the people.”

But the reality is something entirely different. Most politicians do not have a clue as to what an ordinary citizen’s life really is like.

Here is the total private-sector experience of the leaders—in no particular order—of Canada, China, France, Germany, Japan, Mexico, Norway, Singapore, Spain and the United Kingdom. “Private sector” means working outside of the government, a political party, or for a government-funded organization.

Prime minister, age 61: two years as a university researcher. Prime minister, age 49: seven years as spokesman and corporate lobbyist.

Prime minster, age 44: two years as substitute school teacher and actor. President, age 61: no private-sector experience. Prime minister, age 61: three years as foreign sales representative. President, age 63: no private-sector experience. President, age 60: no private-sector experience. President, age 49: no private-sector experience. Prime minister, age 54: no private-sector experience. President, age 62: no private-sector experience.

Having lived a combined 564 years, these world leaders have had to work for real living like we do for a total of 14 years.

Is it any wonder then why their solutions to real world economic and social problems might not have a connection to our real world?

PCSO donates ambulances to Negros provinces Atty. Jose Ferdinand M. Rojas II

RISING SUN

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HE Philippine Charity Sweepstakes Office (PCSO) made its presence felt in the provinces of Negros Occidental and Negros Oriental through the donation of ambulances to local government units (LGUs) and hospitals.

On January 18 PCSO Directors Mabel V. Mamba, Francisco G. Joaquin and I, along with other agency officials and employees, v isited Bacolod Cit y where we were warmly greeted at the Provincial Capitol by Gov. Alfredo G. Marañon Jr. and other provincial and LGU officials and employees.

We participated in a ceremony where we handed over 17 PCSO ambulances.

Twelve were distributed in Negros Occidental: Isabela, Hinigaran, La Castellana, Candoni, San Enrique, Pontevedra, City of Sipalay, City of La Carlota, City of Bago, City of Himamaylan, Kabankalan City Hospital and San Carlos City Hospital.

Five were given to Negros

Or ient a l: Taya sa n, Ay ungon, Santa Catalina, City of Tanjay and Inapoy Community Primary Hospital.

The PCSO gives away ambulances nationwide under its Ambulance Donation Program, which seeks to put an ambulance in cities, municipalities and government hospitals as needed.

Government agencies, state colleges and universities, and charitable organizations may also request for ambulances, but the majority of requests come from LGUs, where the ambulances are used also as rescue vehicles during times of calamity or natural disaster.

After the turnover ceremony, we visited the PCSO branch headed by Abigail Reformina at the Pa-

glaum Sports Complex. Here, as in most PCSO branches, applicants can file requests for medical assistance, buy Lotto tickets, and claim prizes up to a certain amount, as well as avail themselves of other services offered.

Today more ambulances are being distributed, this time in the island province of Masbate, at the center of the Philippine archipelago.

The PCSO will continue giving ambulances to qualified recipients this entire year in fulfillment of the objectives of its charity programs. nnn

WHILE in Bacolod City we also visited the Carmelite monastery in Mandalagan, a haven of peace for the 20 or so nuns that reside there.

It is one of 23 communities in the Philippines belonging to the Discalced Nuns of the Order of Blessed Virgin Mary of Mt. Carmel Contemplative (OCD).

They lead lives of reclusion and prayer, g reeting g uests from behind a barred window in a special parlor.

Proving that it is a small world after all, we found out that my chief of staff, Jenny Ortuoste, has

links to the Bacolod Carmelites through her grandmother, Beatriz “Betty” Ledesma Lacson, her great-aunt Benedicta “Bennett” Araneta Garcia, and her mother, Malu Lacson.

The first two were philantrophists of their time, with Betty especially being heavily involved in charity work in Negros Occidental during the 1950s and 1960s during the time of Bishop Antonio Fortich. She helped the OCD nuns establish their community in Bacolod decades ago, and generously supported their causes until her death in the 1980s.

She is still remembered with fondness by the nuns in the community who, to this day, offer a prayer for her every July 16, the feastday of Our Lady of Mount Carmel.

During our visit, the nuns prayed over us for our special intentions, gave us prayer cards and rosaries, and let us feel, even for a few minutes, the peace and calm of a retreat. We came away spiritually refreshed and ready to face once more the challenges of everyday life. nnn

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

The public harm of ‘Moral Hazard Risks’ in PPPs

By Alberto Agra

PPP LEAD

P

UBLIC-PRIVATE partnerships (PPPs) entail risks. There are risks retained or transferred by the government to, or shared with, the private sector proponent (PSP).

Neither the government nor the PSP should bear all the risks.

If the PSP will be incentivized by the government to engage in excessive risk-taking due to inappropriate government guarantees and subsidies, this amounts to “Moral Hazard Risks” (MHRs) according to Jacques Cook of the Institute for PPPs (IP3).

MHRs can result in the formation of a new government entity or de facto parastatal further burdening the budget. Crony capitalism could also come about, which may result in public bankruptcy or fiscal crisis. Ned White, also of IP3, cautions against MHR. This could result in government bailout of PPP projects where public funds, which can be used for basic services, are now used to pay debts of the PSP.

This does not mean that the government should not assume any risk. Per Cook, the government must have some “skin in the game” so that PPPs will result in the desired outcome. If the PSP performs all the functions and assumes all the responsibilities of a project, then it will bear all the risks. This would increase the total project cost as no risk is cost-free.

High project cost would mean high end-user fees, which could result in “white elephants,” non-user of the project, payment defaults and protests.

So, the downside of faulty calibration of risks and misallocation of liabilities either by the government or the PSP will yield the same effect, i.e., public harm, rather than public good.

What we have to guard against is the possibility that our public officials will renege on their commitments. The annual rent or fees may not be budgeted. New tax regimes may be imposed. Expenses may be disallowed on audit. Executive officials may not prioritize the implementation of these projects.

In the 12 PPP projects awarded under the build-operate-transfer law by the current administration, the government contributes. In the Daang Hari-South Luzon Expressway Link, Ninoy Aquino International A ir port Expressway and Cavite-Laguna Expressway projects, the government shall provide the right-ofway (ROW). In the PPP School Infrastructure Phase 1 project, under a build-lease-and-transfer scheme, the government will pay the PSPs an annual lease rental for the next 10 years. In Phase 2, the government, using the buildand-transfer modality, will pay the PSPs as if the former pro-

cured the classrooms. For the SITS, the government will pay an annual fee.

Whether it is ROW, annual rent or fee, or outright payments, we, ultimately, absorb the risk.

As taxpayers, whether we use the facilities or not, we shoulder the costs, and pay for the subsidies and fees.

Is the administration guilty of engaging in MHRs for these projects? Is the government “skin” excessive? I do not think so. On its face, the risk allocation is appropriate, even desirable. There is no incentive for the winning PSPs to engage in excessive risktaking. If the government had to undertake these projects on its own, it would spend more and bear all risks.

What we have to guard against is the possibility that our public officials will renege on their commitments.

The annual rent or fees may not be budgeted. New tax regimes may be imposed. Expenses may be disallowed on audit. Executive officials may not prioritize the implementation of these projects.

The daunting challenge is how to “ future-proof ” these risky arrangements.

opinion@businessmirror.com.ph

Opinion

#ToPostOrNotToPost

Why markets will keep getting the Fed wrong

BusinessMirror

Atty. Lorna Patajo-Kapunan

T

LEGALLY SPEAKING O post or not to post—this is a question most of us ask ourselves every day, be it on Facebook, Twitter, Instagram, or on any other social-media sites or apps.

At present, social media has been the most powerful tool for communication and has revolutionized the way we interact and connect with others.

The developments in the realm of social media are so fast-paced that a single post by anyone may become “viral” and “trending” in just a heartbeat.

With this in mind, one may wonder, does he or she enjoy any informational right to privacy as regards all of his or her activities in social media considering that his or her page should be considered as his or her own private territory in cyberspace?

To answer said question, let me start by defining first what informational privacy is. According to the words of the esteemed Chief Justice Reynato S. Puno, the right to informational privacy is simply defined as “the right of individuals to control information about themselves.”

In this regard, the landmark case of Vivares v. St. Theresa’s College (G.R. No. 202666, September 29, 2014, 737 SCRA 92), exhaustively discussed a person’s informational privacy rights in social media. There, the Supreme Court (SC) held that “[i]n this [social networking] environment, privacy is no longer grounded in reasonable expectations, but rather in some theoretical protocol better known as wishful thinking.” In other words, once a person joins the social-media community, he or she should not expect to enjoy some sense of privacy in all of his or her dealings online, since social-media profiles are, by default, viewable by the public.

Nonetheless, despite the foregoing, one need not worry of his or her privacy in cyberspace since social-media sites and/or apps have already provided measures to protect a user’s informational privacy through a privacy setting.

However, one must still exercise caution in his or her posts even if the privacy setting is set to be viewable by “connected friends or followers only.” As what was explained by the SC in the aforementioned case, there is no guarantee that such kind of posts can never be viewed or accessed by a stranger, since the source material’s friends or followers can still share the same to total strangers, or even tag others in said posts. Obviously, you will never know when your posts will be shared or tagged by your connected friends or followers as you have no control over their actions.

Accordingly, it is every person’s cyber responsibility to be aware and conscious of all of his or her activities online.

Thus, before one can expect any informational privacy, he or she should always be mindful of making the necessary changes in the privacy setting before posting something on social media should they choose to keep such post private, especially those which have sensitive contents. Should you fail to do so, you might be the next trending topic on social media.

For comments, you may e-mail me at lpkapunan@kapunanlaw.com.

‘I am Acct’ Joel L. Tan-Torres

DEBIT CREDIT Part 1 of 2

I

OFTEN wonder how medical doctors got to use their titles of “Dr.”; attorneys or lawyers their titles of “Atty.”; engineers their titles of “Engr.”; architects their titles of “Arch.”; and the other professionals or government officials with their must-have designation of Gen. (for the generals), Cong. (for the congressmen), and many others. We all have accepted the habit, if not obligation, of acknowledging these persons with these various titles whenever we interact with them.

I have since researched if there are laws in the country that mandate that these badges be used by these professionals (or government officials) in the course of their daily routine. I believe I am correct that there are no existing laws or rules in

our land that prescribe this practice.

I also looked into the various guidebooks to proper etiquette to get some insights on the correct way of using these labels. For practically, all of the commonly encountered titles, the etiquette guides do not include

PAUL DONOVAN

F

INALLY, the US Federal Reserve (the Fed) has seen fit to raise interest rates. They should have done it three months ago. The Fed is informally signaling that there will be another four rate increases in 2016—“a quarter point a quarter” is the rallying cry. Economists have been expecting this move, and as a rule generally agree that the Fed is doing the right thing. Financial markets seem less convinced.

There is an air of sullen resentment in the financial markets’ grudging acknowledgement of the Fed’s tightening. Investors in many different asset classes have been less convinced than economists about the necessity of monetary policy tightening.

This dastardly act is, in fact, a reaction against the military operation launched by the government of Pakistan, which has helped marginalize the militants to a large extent by dismantling their bases, network and supply chains.

It was due to this operation that acts of terrorism committed in 2015 were the lowest in a decade. At present, the militant outfits are in total disarray and lack a central command. Their capacity to act in unison has been neutralized.

Inter- and intra-group cooperation and coordination has been badly affected.

This is evident from the fact that the act was claimed by a Taliban faction and disclaimed by the umbrella group branding itself as un-Islamic.

However, with the recent spike in violence in Pakistan after a year of relative peace, some serious concerns were raised about the efficacy of the operation. No doubt this is a serious matter of concern. However, we need

to understand that 100-percent success against the militants is not yet possible, as this will take a much longer time and a greater collective effort by the international community. The militants, no doubt, are down but not out. Their ability to launch acts of terrorism has been checked, but they still have the capacity to attack soft targets, like schools. In fact, taking advantage of the hilly terrain of the border area, they have managed to disperse and move over to the other side of the border. This has affected the capacity of our security forces to target the militants and check their activities across the border.

Initial reports show strong evidence the recent incident was planned in Afghanistan. Investigations into the incident are, however, underway and we have to wait for the result. In fact, no one country, even a superpower, can singlehandedly check the militants’ activities as they have multiple sources. Hence, a collective effort is required to effectively check the militant groups.

Central bank policy (at the Federal Reserve and elsewhere) has become multifaceted. Actually, central bank policy has been multifaceted for some time, but it is more apparent now. Central banks can seek to control credit through a number of different mechanisms: monetary policy, which is all about interest rates; quantitative policy, which is all about printing money; and regulatory policy, which is (obviously) all about regulation.

have larger margins of error than used to be the case, and this is also raising quality issues.

While I may be biased in my interpretation, I believe that the problem of data revision has been compounded by a deterioration in the quality of economic analysis in markets in recent years. There are fewer economists, and more bloggers. This is not a combination that will likely raise an economist’s confidence in how data is interpreted. Superficial-market strategy seems to be replacing more detailed economic analysis.

Why does this matter? Financial markets tend to react to initial data released based on limited economic analysis. Economists (and most central bankers are economists) react to revised data with more in depth analysis. With data revisions generally biased to the positive, this gives economists a more positive interpretation of the economy.

Markets, looking at initial releases and ignoring subsequent revisions, have a more blinkered view.

None of this seems likely to change in 2016. I would expect that financial markets will continue to diverge from economists in their interpretation of the economy and policy. For investors this can be a problem.

To paraphrase Lord Keynes, markets can remain wrong longer than investors can remain solvent.

The only solution to this tricky dilemma that I can see is to employ more economists, as quickly as possible.

So why this division between economists and markets? Why is confusion about the Fed likely to linger into 2016? There seem to be three causes of the divided opinion.

Central bank policy (at the Fed and elsewhere) has become multifaceted. Actually, central bank policy has been multifaceted for some time, but it is more apparent now. Central banks can seek to control credit through a number of different mechanisms: monetary policy, which is all about interest rates; quantitative policy, which is all about printing money; and regulatory policy, which is (obviously) all about regulation.

The potential for confusion arises because some members of the Fed may prefer to act through quantitative policy, and may sound quite dismissive about acting through monetary policy, without necessarily being dovish overall. Economists tend to think in terms of the necessity of broad central bank policy action—all three strands of policy acting in

concert—while financial markets obsess over interest rates. Hence, there is potential for confusion.

The Fed also appears to be a different institution from the policysetting body that existed under Fed Chairs Volcker and Greenspan.

That earlier era was very much a case of being led from the front (so much so that when Fed Chair Volcker was outvoted on policy, he promptly resigned). Anecdotally, the impression of the decision making process of the Fed under Chairs Bernanke and Yellen is of a more democratic system.

Bernanke and Yellen seem to have emphasized their role in chairing the committee rather than in leading the committee, allowing a broader range of views to contend. This is not to say that the Fed is going to start behaving with the open intellectual disagreement of, say, the Bank of England. It does mean that a wider range of views may well be expressed in public.

Economists, trained in the best

these in their accepted list of honorific titles. Our more commonly used dictionaries (Oxford and Merriam Webster) do not list these titles in their hallowed pages. The only abbreviations listed in these directories are Ms., Mr., Mrs., Fr. and Dr. Apparently, the use of the titles by our colleagues in the other professions came about in practice over time or by tradition.

For accountants, the use of the professional designation is prescribed In the Accountancy Law (Republic Act 9892). In the said law, Section 26 provides that, “No person shall practice accountancy in this country, or use the title ‘Certified Public Accountant,’ or use the abbreviated title ‘CPA’ or display or use any title, sign, card, advertisement or other device to indicate such person practices or offers to practice accountancy, or is a Certified Public Accountant, unless such person shall have received from the

Board a certificate of registration/ professional license and be issued a professional identification card or a valid temporary/special permit duly issued to him or her by the Board and the Commission.”

So, in practice, accountants use the abbreviation CPA by attaching these at the end of their names.

Thus, Mr. Rafael Torres, a certified public accountant, designates his being a professional accountant in the following manner: Mr. Rafael Torres, CPA. It is interesting, if not puzzling, why us, accountants, prefer to profess our professional attainment by prefixing our title CPA at the end of our names and not in front of our names. Our colleagues from the other professions proudly declare themselves as Dr. Reyes, Atty. Suarez, Engr. Pineda, Arch. Aquino, all preferring to introduce themselves by inserting their professional titles upfront before their names.

It appears that we, accountants, are not too enthusiastic in proclaiming to the world that we are accountants. But I am sure this is not actually the case. Accountants are proud that they have attained this status of being CPAs after undergoing a very vigorous process of completing a four-year (oftentimes five-year) course, undergoing further review or post-college studies, and successfully passing a complicated licensure examination process consisting of seven (soon to be six) subjects.

CPAs are recognized as being main contributors to the economic mainstream of countries. Accountants are prominent and successful in all sectors of society and the community.

So, definitely, it is not a case of us, accountants, being ashamed, or having no right, to display our professional title in front of our names.

Rather, it is simply a case where we, accountants, have not been able to

organize and agree among ourselves that it is high time that we start using an appropriate title that we can use to introduce ourselves to the rest of the world.

So, fellow accountants, how do we move forward and address this unfortunate situation?

(To be continued)

ernment, and an all-out operation was launched against them. This latest incident was another desperate attempt to weaken the people’s resolve.

The militants have failed to realize the ground realities and have failed to gauge the resilience of the Pakistani people who cannot be cowed by such acts, gruesome as they may be. This is evident from the fact that after the latest incident, except for the Bacha Khan University, no other educational institution was closed. The provincial education minister said “militants want them shut down. We wanted to send the message that education institutions will continue.” Prime Minister Nawaz Sharif, in a statement, vowed a ruthless response to the militants.

In its fight against terrorism, Pakistan has lost 6,000 members of its security forces and more than 20,000 civilians between 2003 and 2015. This is much more than the loss suffered by Isaf forces in its war in Afghanistan. The material damage is estimated to be more than $67 billion.

No other country has suffered as much as Pakistan from international terrorism.

The price, no doubt, is huge. However, without sacrifice nothing can be achieved.

And we are ready to make this sacrifice for the greater good of the world.

The menace from militancy has assumed a contagion proportion. This is no doubt huge and can only be effectively tackled with closer coordination among the international community. It is spreading its tentacles to other regions of the world. The rise of Islamic State of Iraq and Syria is now posing a major challenge. No country can claim to be immune from its threat. Hence, there is no time for complacency. Those who think that by supporting such forces against others they will keep it away are living in a fool’s paradise. Militants are nobody’s friends. They have a cause, to attain which they won’t hesitate to target their well-wishers if need be. They are not governed by any rules, morals or ethics. We need to understand that terrorism has no religion, color or creed. The

militants, who call themselves Islamic, have wreaked more havoc in Muslim countries than elsewhere. So, all this is not for Islam. It is the gross misuse of the name of Islam—a religion of peace, no doubt.

The best and only option is for the international community to join hands against this menace with the view to dismantle their network, supply chain and reduce the space for them, so that such elements cannot flourish and ultimately die their natural death. Without the realization of this collective responsibility, nothing substantial can be achieved. Militancy thrives on chaos and confusion, take advantage of the socioeconomic and political discrepancies, among others. Hence, we need to deny this space. While tackling terrorism, the international community will not only have to adopt a multipronged strategy, which would not only include force but also redressal of socioeconomic and political discrepancies in society— both individually and collectively.

Cutting the tentacles of terrorism Continued from A1

Monday, January 25, 2016 A15

As stated earlier, the militants are on the run and are facing a lot of difficulty in reorganizing themselves. Hence, they are looking for soft targets. Educational institutions are easy targets. In the recent incident, too, the militants selected an institution in the outskirts of the city and took advantage of the thick winter fog to scale through the rear wall of the university unnoticed. Thankfully, timely action by the security agencies averted a greater tragedy.

The reason they target children is to inflict maximum pain on the populace and weaken their resolve to fight the menace of terrorism. However, no matter how they try, be it the targeting of Malala Yousufzai—a young girl of 18 years—or the massacre in the army school in December 2014, the militants have utterly failed to achieve their objectives. Their dastardly acts failed to weaken the resolve of the people and government to fight this menace. Their dastardly acts only served to strengthen the resolve of the people and the gov-

of academic traditions, do not find this surprising.

Markets, remembering the policy-making of the earlier era, may mistake intellectual debate for policy moving in a different direction.

The final issue arises not from the Fed as an institution, nor from the structure of policy-making.

The final source of division between economists and markets lies in the economic data and its interpretation. Economic data is generally being revised more often, and with larger revisions, than has traditionally been the case. This is both a cyclical and a structural issue.

The structure of the recovery, at the moment, is generally skewed toward smaller businesses rather than larger companies—but data on smaller businesses is sadly very limited. This means that the true nature of the recovery is rarely revealed in the initial data prints.

Furthermore, government surveys (which for the basis of the data)

Paul Donovan’s latest book The Truth About Inflation was published

by Routledge in April 2015.

Visit www.ubs.com/pauldonovan for more research. Paul’s commentaries in the UBS series of documentaries on Nobel Laureates in economics is available at www.ubs.com/nobe.

Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant (CPA) who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He was the former commissioner of the Bureau of Internal Revenue.

This column accepts contributions of articles from accountants that are of interest to the accountancy profession, in particular, and to the business community, in general.

These can be e-mailed to boa. secretariat.@gmail.com.

2nd Front Page BusinessMirror

A16 Monday, January 25, 2016

www.businessmirror.com.ph

Execs talking to Uber, GrabTaxi to service Naia

A

B R M

1,797

IRPORT authorities are planning to allow other public transportation services, such as Uber and GrabTaxi, to operate at the Ninoy Aquino International Airport (Naia) to fill up the demand during peak arrival periods.

However, the airport’s transportation association, called Airport Transportation Concessionaire Association Inc. (Atcai), fears the addition of other transportation services could jeopardize the safety and security of the riding public.

Manila International Airport Authority (Miaa) chief Jose Angel Honrado said they are currently in a dialogue with Uber and GrabTaxi, and “hopefully, soon, we can see them servicing the airport.”

“We have roughly 1,500 airport transport vehicles, and the Miaa gave the concessionaires notice of conditional award for 296 more yellow taxis, although only 76 had been deployed since May 2015,” Miaa Spokesman David de Castro said. “If the concessionaires can’t supply [the

Number of airport transport vehicles currently servicing the Naia

slack], then other means will be considered by management.”

The Miaa has been criticized because many passengers have complained of the lack of airportaccredited taxi during peak arrival periods, which occurs between 2 and 5 p.m. and between 10 p.m. and 2 a.m. daily.

There were instances when some passengers, especially during the Christmas holidays, sleep at the terminal due to lack of transport.

Others had to wait for several hours before they could grab a taxi to take them home.

In other instances, passengers complained of being harassed by some taxi drivers who demanded a negotiated payment, instead of using the meter. Still, other drivers charged in American dollars.

De Castro sa id t he t hree

major passenger terminals received an average of 50,000 passengers a day, most of them arriving practically at the peak-hour window, thus, straining the capacity of the accredited airport vehicles.

The slack is taken advantage of by “outside” taxis, offering rides at negotiated prices, according to the airport taxi association.

The Miaa had suspended some of the accredited drivers who were the object of complaints by passengers, while others were terminated.

The president and spokesman of Atcai, Romy Sayaman, said there are 30 vehicle concessionaires who welcome the decision to allow public transportation to operate at the Naia.

However, he said, they fear the safety of departing and arriving passengers when they ride with the wrong drivers, who did not undergo training by the Miaa.

Sayaman said they knew that it was the Department of Transportation and Communications (DOTC) that gave the Miaa the green light to allow the entry of Uber and

NORTHEAST MONSOON AFFECTING LUZON (JANUARY 24, 5:00 AM)

GrabTaxi cars to operate at the premier airport.

“We will not argue with the DOTC decision, but we are only asking for fair treatment,” he said, adding that the association has more than 2,000 accredited drivers.

“Everyone of them had to undergo several security seminars before we are allowed to operate at the airport,” he said.

“If Uber and GrabTaxi would be allowed to operate at the airport, then they must also pay the corresponding fees like us. Hindi naman kami papayag na libre sila [We will not agree that they should be free from charges],” Sayaman added.

Airport records indicate that Atcai is paying millions of pesos annually to the Miaa. Each A-class vehicle pays P2,750 in rent, class B or coupon taxi pays P1,200, and class C—the same as yellow taxis—pays P600 per unit.

Their fees are separate from the parking fee of P700 per car each month.

Atcai said that drivers found at fault for various infractions are penalized from P2,000 to P5,000, aside from the confiscation and cancellation of their access passes.

“Our drivers are even required to wear white socks while on duty and noncompliance will mean suspension or penalty of P1,000,” Sayaman said.

He said the airport-accredited taxi meters are calibrated by the Land Transportation Franchising and Regulatory Board (LTFRB) every six months.

The grant of access privilege within the Naia complex is not a matter of right, but from concession, which may be revoked or canceled anytime, Sayaman said.

Airport-accredited taxi fares are also prescribed by the LTFRB, which includes the use of tollways.

Sayaman said Atcai members could not simply add more vehicles because many of them would stand idle outside of the peakhour window.

He said other airports in Asia, like Hong Kong, Singapore, Malaysia, Shanghai or Taiwan, have efficient railway systems that connect their airports to downtown cities.

“These airports do not experience the accumulation of passengers, like what happens at the Naia , because the trains usually take many of the passengers away to their respective cities,” he said.

Because of complaints against airport taxis, the LTFRB conducts random inspections of the vehicles.

This comes following various complaints brought to the attention of the Miaa about overcharging of passengers, particularly through fake dollar-rate cards, Sayaman said.

The Miaa has not approved any dollar rate for airport-accredited taxis. All fares are charged in Philippine peso, de Castro said.

Sayaman said they have invested millions of pesos and do not want their business jeopardized.

“We invested from P50 million to P100 million in this business, then all of a sudden our invest-

ments would be threatened because foreign owners have just entered the airport?” he asked, adding that the airport needs to give them some protection, as well.

Sayaman denied that any of the Atcai membe wrs were overcharging customers or that some of them were asking for American dollars in payment.

He hinted that some airport policemen, in cahoots with unaccredited drivers, were the ones harassing passengers, demanding negotiated payment.

He said Atcai doesn’t have power to arrest colorum drivers but they report these abusive drivers to the airport authorities.

“Hindi maglalakas ng loob ang mga illegal kung walang protection [Illegal drivers would not be emboldened without protection],” Sayaman said but did not elaborate, fearing reprisals.

He added that, the illegal drivers and colorums are the ones responsible for the overpricing of fares and charging in American dollars.

He said from their investigation, they found that illegal drivers charge foreign passengers $25 from Naia Terminal 1 to the Manila domestic airport. Other colorum drivers charge about $140 from Naia Terminal 1 to Olongapo City.

Sayaman said it is common knowledge that taxis from outside the terminal, which come into the airport to drop passengers off, could not pick up passengers on the way out of the Naia without paying bribes to some policemen.