BusinessMirror August 1, 2015

NOT BANGUI Workers maintain the surroundings

on a hill in Barangay Halayhayin, Pililia, Rizal, where windmills installed by Alternergy Wind One Corp. are located. The Energy Regulatory Commission approved last year the company’s plan to connect to the distribution network of the Manila Electric Co. ALYSA SALEN

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Saturday, 1, 102015 10 No. 296

P25.00 nationwide | 6 sections 28 pages | 7 days a week

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Expanding cash supply to help boost PHL’s gross domestic product this year

Domestic liquidity grew 9.3% in June

M

oney supply continued to expand at a robust pace in June, although the rate of growth has noticeably slowed to just 9 percent, or P7.7 trillion, versus 9.3 percent a month earlier.

INSIDE

According to the Bangko Sentral ng Pilipinas (BSP), money-supply growth in June, alternately known as domestic liquidity or M3, represents a significant reduction from year-ago expansion when this averaged in double digits.

This development helped fuel speculation the monetary authorities now have the space from which adjustments in the banks’ deposit reserves may be made without fueling an inflation spike.

With M3 on the retreat and inflation dwelling in 20-year lows, such adjustments, as a tweak in the banks’ deposit reserves, could be

life in the fast lane Bread that was sown

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EAR God, with grateful hearts we sing our joy for knowing Spirit within among us all; Life and knowledge, revealed through your word; Jesus the Christ Emmanuel. Bread that was sown in our hills and valleys now harvested becomes one; from all the world gather Your people O God, into the feast of Your love. Leaven and wheat so let us be for others, nurturing good with earnest care, bringing to birth new life where hope has gone stale, faith giving moments to share. Let the bread that was sown be forever in our hearts. Amen.

BREAKING BREAD 2014, MGPC, CALIFORNIA, USA AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

SOMETHING LIKE LIFE TEACHERS, PLEASE TEACH »D4

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Life in the fast lane

11 ways to speed up your home’s Wi-Fi without needing an engineering degree B J L The Orange County Register

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HEN it comes to what works in your home—and what doesn’t—Wi-Fi is no longer just an amenity.

It’s a real-estate necessity, especially if you have kids—and broken Wi-Fi. When Americans were recently asked what slice of life they couldn’t live without, Wi-Fi came in second— behind food—and, yes, ahead of sex! The poll, done by tech consultants IDC for Wi-Fi gear maker Linksys from Irvine—found 18 percent of adults polled listed wireless home Internet as a top priority, trailing food, at 30 percent. But Wi-Fi isn’t like plumbing—or even common appliances. Many household basics work well for years, if not decades, without much help from the user. Unfortunately, Wi-Fi isn’t that simple.

The service is powered by a confusing device called a “router”—a bit like a hot water heater—the hub from which a wireless network flows. Sadly, the tech industry has done a poor job of making these networks easy to set up. And once people finally get their wireless Internet working, they’re often scared to change it—the old “if it ain’t broke, don’t fix it” mentality.

Please be aware, though, that the wireless world is rapidly evolving for both routers and the devices that require a strong Internet signal. That’s why household demand for Wi-Fi is exploding—along with the list of reasons to rethink your network.

IDC researchers found 69 percent of households have five or more Wi-Fi-enabled devices in their home—a horde that can stretch the performance limits of most of the Wi-Fi systems installed.

At this curious juncture in Wi-Fi evolution, router makers are now pushing premium-level machines—

priced upward of $300. These boxes are filled with the latest Wi-Fi technology plus some serious computing and communications muscle.

Yes, the consumer should always get a tad squeamish at any technology’s push for higher performance products. Too often, the tech power only impresses geeks rather than improving everyday operations.

But Wi-Fi use for many households has ballooned to a point where most folks should consider new arrangements for their home wireless networks, from modest tweaks and upgrades to a total overhaul.

“Most people aren’t anxious to replace their router,” admits Dan Kelly, marketing vice president of router maker D-Link from Fountain Valley. “But it all comes down to need. There’s only so much Wi-Fi to go around from these legacy devices.”

Thanks to input from various tech sources— including Linksys and D-Link—here are 11 things to ponder if you want better Wi-Fi performance in your home—with or without a new router: 1. Location. Location. Location. Got some dark spots in your home’s Wi-Fi coverage?

If so, consider placing the router as close to the middle of the home as possible—or closest to the area of the home where Internet usage will be heaviest.

Make sure the location is flat (not the floor) and wellventilated. If you own a two-story home, it’s best to place the router on the second floor or high up on the first floor—such as atop a bookcase.

And, yes, most routers are god-awful ugly. But if your Wi-Fi needs trump fashion, you’ll need to place the router in a prominent place in the home. And why not?

Do you want fancy home design—or solid Wi-Fi? 2. Avoid blockage. Did you know Wi-Fi signals go through most walls? Yes, most. Not all.

Bathrooms and kitchens are signal killers. Walls in these rooms are often full of pipes and wires that can

slow down or stop Wi-Fi signals.

Also, metal objects—notably mirrors, metal cabinets and major appliances—can block signals.

Be aware of these signal blockers when exploring why your Wi-Fi seems lacking. If you have such problems, try moving the router to find a blockage-free position. Yes, a fix can be that simple.

3. Learn antenna science. Does antenna direction matter?

Yes! If your router has external antennas, they should be pointed in a vertical direction for the best results.

If you hope to push a Wi-Fi signal up or down a floor, position the antennas horizontally.

If that doesn’t help much, think about replacing the antennas with so-called hi-gain antennas. These addons come in various strengths—measured in decibels (dbi)—and can cost anywhere from $10 to hundreds of dollars. These antennas should increase the quality of your Wi-Fi connections by boosting the signal’s strengths. The best antenna-upgrade results are often found in single-floor homes.

4. Find signal scramblers. Did you know Wi-Fi can get into wireless traffic jams?

Many routers transmit Wi-Fi signals on the 2.4 gigahertz (GHz) radio frequency band. That’s the same airwave space that carries signals for cordless phones, baby monitors and garage-door openers. And microwave ovens and hair dryers can also generate that signal. Again, router positioning is key: as far as possible from other 2.4 GHz devices to minimize radio interference. Note that so-called dual-band routers offer signals on both the 2.4 GHz and 5 GHz radio bands.

That’s a plus if you have many 2.4 GHz devices in your home. Also, dual-band routers allow you to split users on two bands. Try that to maximize the router’s power.

5. Add an extender. Still have a Wi-Fi problem spot in your home? The answer may be a Wi-Fi repeater/

extender that can stretch a router’s signal in one direction around that secondary device. A repeater/ extender is best placed roughly halfway between the router and the trouble spot. These offer the best results for people seeking better signals in two-story homes.

These signal boosters can run from $30 to $150— and it’s a bit of “you get what you pay for” and a bit of knowing what you’re extending the signal for. An area of heavy use (say, a playroom with a gaming console) might need a high-end extender. Some spot where a WiFi signal might be an occasional bonus (say, a porch or patio) could be served with a more affordable extender.

6. Change the channel. Did you forget that Wi-Fi is not magic—it’s radio?

Wireless routers come with 11 channels on that 2.4 GHz wave, much like channels on an old-fashioned TV. But most Wi-Fi devices default to Channel 6.

That means you and your neighbors may be clogging one narrow space of the radio spectrum. (Not to mention other 2.4 GHz gear in your home!)

Why not switch channels? Some experts suggest channels 3 or 9; others 1 or 11.

While we wish Wi-Fi’s channel changing was as easy as a TV clicker, check your router manufacturer’s web site or manual to see how it’s done.

In many cases, it should be a minor tweak of router settings. Next, do some trial-and-error research to see what channel works best for you.

7. Know your use. Do you have a home filled with young adults addicted to heavy Internet use?

Are you a household that often uses streaming video programming or online gaming?

Or are you really low tech, infrequently using home Wi-Fi? It’s a critical point because heavy users will likely require state-of-the-art signal technology. Assuming

life

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little fashionista Parentlife BusinessMirror

www.businessmirror.com.ph

A NEW JUNIORS COLLECTION FOR YOUR LITTLE FASHIONISTA ELLE Juniors keeps its signature dainty look with dresses and separates in polka dots and floral prints.

Saturday, August 1, 2015

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Go around for a stroll in stylish, comfy flats. Ballet shoes with catchy cat print and fashionforward Oxfords lend effortless elegance to every look.

Trade-in your juicer for something better

YOUNG misses can keep warm and dry when the day turns wet and/or cool with cover-ups that range from tailored jackets in rich textures, hooded numbers, and even ultra-trendy bomber styles rendered in girly florals.

Young ladies can rock the casual chic look in sleeveless and polo tops paired with comfortable, well-fitting jeans.

THE latest health craze is juicing and this is your chance to get into it—and have it in the best and healthiest way possible for yourself and your family with the Hurom Slow Juicer. On offer until August 31, those living in Metro Manila can bring and surrender any brand of juicer or blender, working or nonworking, to the Hurom representative in participating stores (Abenson, The Landmark, Rustans, The SM Store, True Value). A discount of P5,000 will be given with the purchase of the Hurom Slow Juicer HA Series.

You may trade-in a maximum of three units for the entire duration of the promo.

However, Hurom has the right to refuse, reject or cancel the transaction if deemed necessary. The trade-in promotion cannot be availed in conjunction with other Hurom promotions except if indicated in the mechanics.

Trade-in juicers or blenders are not convertible to cash.

Unlike other juicers, Hurom Slow Juicer preserves the natural taste and nutrition not by grinding but squeezing raw ingredients through its innovative Slow Squeezing Technology that yields 75 percent more juice, which means more nutrients, more minerals, more enzymes and more flavor.

Life in the fast lane C  D the Internet signal coming into your home is solid—Wi-Fi is only as good as what it’s given to distribute—there are plenty of tips and technology to improve your home’s remote online experiences. Also, most routers aren’t smart—or personalized—enough to distribute Wi-Fi signals in an efficient manner. Do you have certain Wi-Fi-enabled devices that are rarely used, but are powered on constantly?

They may be wasting Wi-Fi signal from most older routers.

8. Know thy router. What kind of Wi-Fi do you own?

You may be like the 57 percent of Americans who couldn’t tell IDC researchers the generation of wireless technology in their home. Wi-Fi is radio science that’s technically dubbed “802.11” with a letter suffix informing you of the generational improvements.

It’s confusing, trust us, but it’s a necessary conformity that enables routers and devices from all manufacturers to talk to each other.

The evolution is not just geek-speak, as each new standard has brought greater Wi-Fi performance. Here’s how you can check your specifications: ■ 802.11 “a” or “b”—You’ve got 1999 tech. Signal range is maybe 140 feet.

Speed is literally one-thousandth of today’s high-end signal. It’s good for little more than Web surfing.

■ “g”—It’s 2003’s smarts with a similar range, but more data throughput (that’s how much data can be moved). It added music

streaming to Wi-Fi. ■ “n”—In 2009, this technology doubled range, expanded throughput and permitted twin radio bands. It allowed video streaming to work.

■ “ac”—2013’s version added even more power, plus the ability to customize signals so devices can get user-prioritized Wi-Fi signals.

■ “MU-MIMO”—Don’t ask why 2015’s improvements get even dumber lingo. When this standard is in both routers and WiFi-enabled devices, it creates automated, prioritized sharing of the signal.

Other technologies built into routers— better signal processors, computing power and improved antennas—let newer products deliver far stronger signal to more devices.

9. Refresh your router. Does your router have the latest “firmware”—geek-speak for internal software?

Manufacturers are frequently offering new versions of the tech smarts that run electronics, such as routers. Checking the manufacturer’s website or consumer helpline should tell you if new firmware is available.

Typically, a simple download and installation will get your router new firmware.

It commonly means improved performance, especially if you are years behind on such upgrades. The same exercise should be used to make sure all Wi-Fi-enabled devices have their newest firmware updates, too.

10. Customize access. Did you know that newer routers offer to set up a “guest network” for visitors to your home?

Use it! For one, it’s more secure—keeping

access to your own computers private. More important, this will also typically keep the prime Internet power directed at your own computers. That type of customization is also a powerful tool for maximizing a home’s WiFi experience. If you’re a serious gamer or big watcher of streamed TV, those devices can be given top priority to prime Wi-Fi signal.

Of course, if you’re just the bill payer and want the best Wi-Fi for yourself, the same customization can be used by parents— perhaps as a display of who’s the boss!

11. Try other tricks. Maybe this should be first on the list: Did you overlook oldschool wires? Directly linking devices like a desktop or laptop computer to the Internet via Ethernet wires gets you high-quality and reliable online connections. Of course, it can be tricky or expensive to add wired linkage in a home.

Don’t overlook “Powerline” technology either. This little-known technology ships Internet signals over your home’s electricity wires. You need to buy gear that links your home’s wiring to your home Internet, and devices that take the signal off the wires and makes it available for wired or wireless use.

So the bottom line to your Wi-Fi service?

It’s not you! People would still be using horses for transportation if driving a car was as confusing as Wi-Fi installment and maintenance still is.

But today’s routers and add-ons—with greatly improved installation processes—offer an alluring chance to speed up your home wireless network. ■

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safely implemented without fanning inflationary fires.

According to the BSP, an expanding cash supply is beneficial for a growing economy like the Philippines, as it helps fuel the productive sectors and boost the nation’s capacity to grow.

At the level reported, the BSP is optimistic that domestic liquidity growth should prove sufficient to help push local output, measured as the gross domestic product, averaging 7 percent or 8 percent this year.

“The sustained expansion in domestic liquidity during the month Continued on A2

Philippine peso in biggest drop in 10 months as inflation slows

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A

S any parent of prepubescent will tell you, one of the joys of this stage in a child’s life is that you can indulge that inner fashionista—yours and your little one’s.

And the global lifestyle brand ELLE, as it celebrates 70 years of bringing the Parisian take on fashion, is providing parents with all the tools necessary for such indulgence with the launch of its Juniors collection.

With elegance and sophistication that is the signature of the brand, the ELLE Juniors collection is aimed at preteens girls who want to be the epitome of effortless style that rule the Parisian streets.

Fronting the brand’s fashion files are its dainty dresses that come in flattering cuts and polka dot designs. Made to make each girl look and feel like a princess, the dresses also come with ribbon accents, statement collars and distinct pockets for that added impact. Casual wear also takes a chic turn with pretty shirts and comfortable pants perfect for relaxed strolls in the mall or in the park. Pants come in the usual denim or the more attention-grabbing brights, while tops come in shirts with florals and caricatures, while a plaid polo gives extra oomph on certain occasions.

With the rainy, colder months upon us, ELLE Juniors, which is available at all leading department stores nationwide and Ogalala Store at Shangri-La Mall, also provides stylish protection with its selection of outerwear. There are tailored, hooded jackets in red and blue, along with a floral bomber jacket and a longsleeved top to choose from.

To complete the look, the brand also has its own shoe collection, which young girls would love to sport.

Relaxed flats with interesting cat design headline the pack along with buckled bright ones.

It also steps up with polka-dotted wedges, boot-like rubber shoes and oxfords. From the classic to the more whimsical, these shoes make every girl’s step a little more fashionable and fun. ■

By Bianca Cuaresma

h e Ph i l i p p i ne p e s o posted its big gest monthly drop since September, on speculation the slowest inflation in 20 years may spur a reduction in banks’ reserve requirements.

Consumer prices may have risen between 0.5 percent and 1.3 percent this month on lower fuel and power costs, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said on July 27. Inflation below 1 percent would give policy-makers room to reduce banks’ reserve requirements, which, at 20 percent of deposits, are among the highest in the region, Mon-

PESO exchange rates n US 45.6180

etary Board member Felipe M. Medalla said this month.

The peso fell 1.4 percent from June 30 to 45.740 a dollar at the close of trading in Manila, the biggest drop since September 2014, according to the Bankers Association of the Philippines.

The currency declined 0.3 percent from Thursday to its weakest in five years.

“I wouldn’t be surprised if the central bank lowers banks’ reserve requirements,” said Patrick Ella, an economist at Security Bank Corp. in Manila. “Every one-percentagepoint reduction in the reserve requirement could potentially See “Peso,” A2

human-rights expert United Nations Special Rapporteur on the Human Rights of Internally Displaced Persons Chaloka Beyani urged the Philippine government to follow through on its commitments and devote muchneeded attention and resources to internally displaced persons “until durable solutions are attained and their futures secured.” NONIE REYES

Oil heads for biggest monthly dip this year amid global glut

O

il headed for the biggest monthly decline this year, amid speculation a global supply glut that drove prices into a bear market will persist.

Futures fell as much as 0.8 percent in New York and are down 19 percent in July. US crude stockpiles are almost 100 million barrels above the five-year average for this time of the year, while exports from southern Iraq rose to a record this month. Oil producers from BP Plc. to Royal Dutch Shell Plc. have started a new round of cost cutting as prices decline.

Oil’s worst month since De-

cember paces a drop across raw materials, as expanding surpluses and concern slower economic growth in China will crimp demand. Commodities also slid as the dollar gained on signals from Federal Reserve Chairman Janet Yellen that the US central bank may increase rates.

“The supply situation is adequate and that’s why we’ve seen oil drift lower,” David Lennox, an analyst at Fat Prophets in Sydney, said by phone. “The fall in Chinese equities shook investor confidence and that’s why we saw a lot of retracement in commodity prices.”

West Texas Intermediate (WTI)

for September delivery declined as much as 37 cents to $48.15 a barrel in electronic trading on the New York Mercantile Exchange and was at $48.22 at 12:39 p.m. in Sydney.

The contract fell 27 cents to $48.52 on Thursday. Total volume was about 30 percent below the 100day average. Prices have lost more than 20 percent from their closing peak this year on June 10.

Global supplies

Brent for September settlement was 20 cents lower at $53.11 a barrel on the London-based ICE Futures See “Oil,” A2

n japan 0.3675 n UK 71.1686 n HK 5.8848 n CHINA 7.3464 n singapore 33.1743 n australia 33.2275 n EU 49.8696 n SAUDI arabia 12.1645 Source: BSP (30 July 2015)

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News

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Saturday, August 1, 2015

Commodities slide with ruble as Europe’s stocks, bonds decline

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ommodities extended their worst monthly slump since 2011, and the dollar advanced against emerging-market peers as the Federal Reserve (the Fed) moved closer to raising interest rates. Stocks and bonds fell in Europe and the region’s currency strengthened.

Crude oil led the Bloomberg Commodity Index down 0.3 percent by 6 a.m. on Friday in New York, extending the gauge’s decline in July to 10 percent. The dollar headed for the biggest monthly gain since January, while a gauge of emerging-market currencies dropped to a record low and Russia’s ruble weakened before a monetary-policy decision. German bund yields rose four basis points and the Stoxx Europe 600 Index halted a three-day gain.

Peso. . .

The dollar’s ascendance amid rising bets on a US rate increase in September has spread across financial markets, hurting commodities already in retreat on supply gluts and slowing growth in China. Emerging markets have been a chief casualty, while stocks in the US and Europe are still poised for their biggest monthly gains since February, buoyed by earnings and deals.

“It’s been a bit of perfect storm for commodities markets,” said

Fiona Boal, director of commodity research in London at Fulcrum Asset Management, which manages $3.6 billion in assets.

“There are general concerns about a further slowdown in China as one issue, and obviously the dollar. A strong dollar historically never seems to be great news for most commodity markets.”

The prospect of higher borrowing costs in the US strengthened the dollar and drove gold to the lowest in five years this month. Bullion slid 0.7 percent to $1,080.76 an ounce in London and is down 7.8 percent in July.

Losing appeal

Brent crude dropped 1.3 percent to $52.60 a barrel and is down 17 percent in July for a third month of losses. Crops from wheat to corn and soybeans are set for their worst monthly performance this year.

Commodities are falling out of favor with investors as demand in China, the biggest user of metals and energy, is faltering amid

expanding inventories of copper and oil. Higher US rates curb the appeal of raw materials as they become more expensive for holders of other currencies.

The Bloomberg Dollar Spot Index was near the highest level since March, with the US currency poised to round out a month in which it appreciated against all but one of its 31 major peers.

Biggest gains

The biggest gains in July came versus currencies of commodity-producing nations. Colombia’s peso led declines with a 9.4-percent slide, followed by Russia’s ruble and Brazil’s real. Australia’s dollar came next, with a 5.6-percent slide.

Switzerland’s franc strengthened against the euro for a fourth straight day on Friday after the central bank posted a record first-half loss, fueling investor speculation it would struggle to curb gains in the currency. It added 0.5 percent to 1.05469 francs per euro.

Bloomberg News

Continued from A1

release about P100 billion [$2.2 billion] into the financial system.”

Inflation slowed to 0.8 percent this month from 1.2 percent in June, according to the median estimate of economists in a Bloomberg survey before data due on August 5.

The BSP held its benchmark interest rate for a sixth straight meeting in June after the economy grew at its weakest pace in more than three years. The next monetary policysetting meeting is scheduled for August 13.

The market has shifted focus from the timing of the Federal Reserve’s first rate increase to the “speed of normalization,” while China’s calmer financial markets may temper outflows from emerging economies, including the Philip-

pines, Tetangco said.

The yield on the five-year government bonds fell three basis points from June 30 to 3.86 percent, according to an end- of-day fixing from Philippine Dealing & Exchange Corp.

Bloomberg News

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Domestic liquidity grew 9.3% in June. . .

Continued from A1

indicates that liquidity remains sufficient to support the economy’s growth requirements,” the central bank said in a statement.

The deceleration of domestic liquidity growth in June 2015, when viewed against the double-digit expansion in the same month last year, reflects the statistical base effect associated with the significant increase in M3 a year ago.

The liquidity hike last year was traced to operational adjustments involving, for example, access by trust entities to the special deposit account (SDA) window of the BSP, which were completed in November 2013. Latest data from the central bank show SDA deposits now lower than P1 trillion versus its peak of about P2 trillion before the adjustments were in force.

Money supply continued to increase also due to sustained demand for credit during the period, according to the BSP. “Money supply continued to expand due largely to sustained demand for credit. Domestic claims grew by 10.8 percent in June from 9.7 percent in May [revised], as credits to the private sector increased at a faster pace relative to the previous month. The bulk of bank loans

Oil. . .

during the month was channeled to key production sectors, such as real-estate activities, electricity, gas, steam, and air-conditioning supply; wholesale and retail trade, and repair of motor vehicles and motorcycles; manufacturing; and financial and insurance activities.

“Meanwhile, net public-sector credit rose by 1.6 percent in June after contracting by 3.4 percent [revised] a month earlier,” the BSP said.

“Net foreign assets (NFA) in peso terms grew at a slightly slower pace of 8.0 percent in June from 8.3 percent in the previous month. The BSP’s NFA position continued to expand during the month, on the back of robust foreign-exchange inflows coming mainly from overseas Filipinos’ remittances and business-process outsourcing receipts.

“The NFA of banks, likewise, increased as banks’ foreign assets expanded, while their foreign liabilities contracted. Banks’ foreign assets increased due largely to the growth in their investments in marketable debt securities and deposits with other banks, while banks’ foreign liabilities decreased on account of lower deposits and placements made by foreign banks with their local branches,” the BSP said.

Continued from A1

Europe exchange. Prices have decreased 16.5 percent for the month.

The European benchmark crude traded at a premium of $4.90 to WTI. US crude stockpiles have been bolstered by production that rose

to the highest level in three decades last month. The nation pumped 9.4 million barrels a day through July 24, data from the Energy Information Administration show.

Bloomberg News

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Editor: Dionisio L. Pelayo • Saturday, August 1, 2015 A3

Aquino annoints Roxas admin bet in 2016 presidential derby

P

By Butch Fernandez

RESIDENT Aquino on Friday virtually proclaimed Interior Secretary Manuel Roxas II as the administration’s standard bearer, in advance of the October filing of certificates of candidacy for aspirants in the 2016 presidential elections.

Malacañang officials, however, promptly played down concerns that Aquino may be found to be in violation of election laws against premature proclamation as the well-attened political event— which included ruling Liberal Party stalwarts, led by Senate President Franklin M. Drilon and Cabinet officials—at Club Filipino in Greenhills, San Juan City, was billed as “a gathering of friends.”

Communications Secretar y Herminio B. Coloma Jr. and Chief Presidential Spokesman Edwin Lacierda said Aquino was not at all worried about potential liability for making an early endorsement of Roxas, Aquino’s friend and 2010 running mate, as the

LP standard bearer in next year’s presidential derby.

“No he [Aquino] is not,” Coloma said, noting that even election lawyer Romulo Macalintal had said that “the President may make a personal endorsement.”

The presidential endorsement, in effect, seals an upcoming rematch between Roxas as LP bet and Vice President Jejomar C. Binay, who is running under the opposition United Nationalist Alliance.

In his speech, Aquino told supporters that it is part of his obligation to ensure reforms began under daang matuwid will continue, which is why choosing and endorsing his successor is crucial.

Saying he felt no one else can guarantee with certainty the future of daang matuwid, Aquino then proceeded to endorse Roxas, triggering hearty applause from his Club Filipino audience. “We will go with whom we can be certain will continue the straight path. And I believe that person is none other than Mar Roxas.”

Justifying his choice, Aquino recalled that Roxas “was the first who worked to bring the BPO [business-process outsourcing] sector here and ensure it flourished in the Philippines.”

T he President pointed out that from having 2,400 BPO employees in 2000, the sector has ballooned to an P18.9-billion industry, employing over 1 million people in 2014.

“I know that, whatever orders are given Mar, he will not leave until the situation is stable. Whether in Zamboanga, Bohol, or Leyte, even when communications has been cut off because of [Typhoon] Yolanda, I know that everything is in good hands and that he does not need to wait for orders, just to ensure that all needs are met,” Aquino added.

Popularity rating disappointing

AQUINO admitted, however, he was puzzled why Roxas was

having difficulty improving his popularity ratings, trailing behind Binay and Davao Mayor Rodrigo Duterte in presidential surveys.

“What’s puzzling to us: In spite of everything that Mar has done, in spite of his sacrifices, it’s as if there’s an entire industry dedicated to bringing him down.”

“For my part: The triumphs of one person do not vanish into thin air, just because he does not broadcast them. And in choosing, I, like you, do not consider those who are clearly credit mongers, and those who have clearly strayed from the straight path,” Aquino said.

He urged voters to examine what candidates have done, saying: “The longer their experience, the better, because it is in their experience that we will see evidence of their being true and excellent partners along the straight path.”

“It is clear who, of all the choices, deserves to be our next leader. And if his numbers are low at this point in time, it only means that we need to do even more to make him known to all,” Aquino said. “To my bosses, I tell you today: In my opinion, the one who has shown exemplary work and true integrity, the one fully ready to continue the straight path, is none other than Mar Roxas.”

‘Perpetuation of elite rule, antipoor policies’

PROGRESSIVE groups called the recent anointment of Roxas as LP presidential candidate “logical choice for a laki-sa-layaw, pompous son of sugar haciendero of a President to prefer his kindred spirit.”

“As far as the workers are concerned with the affairs of the country, Aquino’s choice did not come as a surprise. Aquino did not hide the fact that he desired a candidate who will continue his rabid antipoor policies and Roxas undeniably fits the bill,” said Leody de Guzman, chairman of militant labor group, Bukluran ng Manggagawang Pilipino (BMP).

The BMP views Roxas’s acceptance of the baton from Aquino not only as a continuation of the programs of Aquino that led to wage suppression, widespread underemployment, contractualization and circumvention of labor laws but also their furtherance.

De Guzman argued that, “Roxas’s banking and business background will be utilized to stir up foreign investments and will directly translate to relentless liberalization of the market, deregulation of strategic industries, privatization of state assets and labor flexibilization.”

More so the labor leader perceives

that Aquino’s endorsement of Roxas will not only serve in the interests of the oligarchs but is also self-serving for it assures him a free pass from all accountabilities for his administration’s transgressions.

“Roxas’s neoliberal economic stance and entry in the 2016 presidential race has placed him in the crosshairs of the workers’ rage. He should expect it anytime soon,” he added.

Meanwhile, lawyer Aaron Pedrosa of Sanlakas took a jab at the public event at Club Filipino, where Aquino announced his anointment of Roxas saying, “It was composed of the same old dynasties and personalities that benefited from the Aquino regime and aim to perpetuate their economic and political control from 2016 onward.”’

“It only took less than a week for Aquino to expose himself. This administration never intended to pass the anti-dynasty law for it is the lifeline of their elitist rule and their activity at Club Filipino is testament to that. Roxas’s campaign shall be fueled by these corrupt dynasties, he said.

Both groups vowed to oppose all presidential candidates that will bear the neoliberal economic agenda in their political platform. With Mavyn Benaning and Claudeth Mocon

Eye clinic owner files libel, disbarment, civil cases vs top PhilHealth officials

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PREPARING FOR THE BIG ONE Students of the Eulogio “Amang” Rodriguez Institute of Science and Technology in Manila participate in the Metro-wide Earthquake Drill on Thursday. NONIE REYES

DMCI: ‘Photo-bombing’ issue has no basis in law

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By Joel R. San Juan

AYING that the “photo-bombing” issue against P2.7-billion Torre de Manila project has no legal basis in law, the DMCI Project Developers Inc. (DMCI-PDI) has asked the Supreme Court (SC) to dismiss the petition, filed by the Knights of Rizal (KOR) seeking to stop further construction its 49-story condominium building project in Manila.

In its 24-page position paper submitted to the Court, the DMCI-PDI described KOR’s petition as “high on political drama, but short on the facts and the law,” that warrants the immediate lifting of the temporary restraining order (TRO) that it issued enjoining the completion of the project.

It noted that there is no provision in Republic Act (RA) 10066 of the National Heritage Act, RA 4846, or the Cultural Properties Preservation and Protection Act and RA 7356, the law creating the National Commission for Culture and the Arts that protects the background or backdrop of any historical or cultural property.

“The law does not prohibit the construction of any structure that would overshadow, mar or otherwise obstruct the background or backdrop of any monument or park,” the DMCI-PDI noted.

The private respondent pointed out that KOR’s claim that Torre de Manila offends the senses of every Filipino who honors the memory of national hero Jose Rizal does not bring it within the legal definition of a nuisance per se.

It also denied that the building altered the physical integrity of the Rizal

Monument considering that it is 870 meters away from the monument.

The building also cannot be considered as nuisance, according to the DMCIPDI, as it does not pose a direct threat to public health or safety.

Furthermore, the DMCI-PDI said the fact that Torre de Manila was given the necessary permits and exemption confirms that it is not a nuisance.

“Torre de Manila is a legitimate residential condominium project that was demonized in the media as a ‘photobomb’ that would mar the view of the Rizal monument. However, the concept of ‘photo-bombing’ in relation to national monuments and shrines is not in the law. Buildings and high-rises, including those around public monuments, are inevitable in metropolitan areas because of the increase in population and the lack of available space,” DMCI argued.

It noted that even several prominent Filipinos, such as National Artist for Literature F. Sionil Jose, urban planner Architect Felino Palafox Jr., the Philippine Chamber of Real Estate and Builders’ Associations Inc. have independently issued opinions and statements defending Torre de Manila from public bashing in the media. It also warned that a ruling against the construction of Torre de Manila would create a dangerous precedent and result to “economic havoc.”

It noted that several high-rises and buildings surround most of the monuments in Metro Manila and other parts of the country.

In particular, the DMCI-PDI cited the runabout at the Bantayog ni Bonifacio in Caloocan City, where an SM supmer-

market and other buildings stand; the Bonifacio monument on J.P. Rizal Street in Makati City where several high-rise condominiums and commercial buildings have been put up and other monuments, such as the Edsa Shrine in Ortigas Center, Liwasang Bonifacio in Ermita, Manila, the Ninoy Aquino Monument in Makati City, the Rizal Monument in Zamboanga City, the Statue of Arsenio Lacson in Manila, and the monument of Gen. Pio del Pilar in Makati City.

“A ruling directing the demolition of Torre de Manila will have the practical effect of evicting thousands of residents of high-rise condominiums, knocking down malls and public markets, and tearing down banks, hospitals and other industries crucial to business and the national economy,” it explained.

It stressed that a ruling requiring the destruction of Torre de Maila constitute taking of private property for public use requiring payment of just compensation.

The DMCI-PDI noted that as of May 31, DMCI-PDI had spent P1.28 billion for the construction of the building and that it would lose about P4.27 billion in capital investments and unrealized profits should the Court order it to be demolished.

“Petitioner seeks to enjoin the construction and development of Torre de Manila and to demolish it to secure for the general public the continued enjoyment of the Rizal Monument and its surroundings, free of the supposed obstructions of tall buildings such as Torre de Manila. This constitutes public purpose within the contemplation of eminent domain,” the DMCI-PDI said.

HE Quezon City Eye Center (QCEC), one of the private clinics that a Philippine Health Insurance Corp. (PhilHealth) official included in the list of clinics that supposedly made fraudulent claims from the state corporation, on Friday filed disbarment, libel and civil cases against PhilHealth officials, led by its president and CEO, Alexander Padilla, for alleged harassment and damaging statements about QCEC. The QCEC, through its mother company Eye Center Conglomerate Inc., filed disbarment cases before the Supreme Court against Padilla, and lawyer Jay Villegas, senior manager of PhilHealth’s Operations Audit Department, for allegedly harassing QCEC and depriving the clinic of payments due to the latter for the use of its facilities.

QCEC President Raymond P. Evangelista also filed libel charges before the Quezon City Prosecutor’s Office against Padilla and Kim Gariando, PhilHealth internal auditor and member of the government company’s audit department, for wrongly accusing QCEC of receiving more than P150 million in Phil-

Health claims and allegedly resorting to illegal means to lure patients.

Evangelista, represented by lawyer Lorna Kapunan, is seeking P2.5 million each from Padilla and Gariando in moral and exemplary damages and attorney’s fees for the libel cases.

A P34-million civil case for damages for abuse of rights and breach of contract against PhilHealth, lawyers Padilla and Villegas, and Drs. Robert Louie So and Gariando was, likewise, filed by Evangelista before the Regional Trial Court in Quezon City.

The disbarment case against Padilla alleged that the PhilHealth CEO “unfairly persecuted and prejudged, and continues to persecute and prejudge, QCEC even if the investigation of QCEC is still ongoing.

“Not satisfied with depriving QCEC of its constitutional right to due process, Attorney Padilla launched a media campaign, announcing for the whole world to hear that QCEC is involved in fraudulent claims and that QCEC takes advantage of the already disadvantaged members of society for profit.

“Attorney Padilla, also using

resources of PhilHealth, including the audit department and the legal department, committed acts of harassment against QCEC and deprived QCEC of payments for the actual use of its facilities by PhilHealth members.”

The libel charges on the other hand stemmed from Padilla’s allegedly erroneous pronouncements that QCEC earned more than P150 million in benefit payments in 2014 and that it has three physicians with more than 1,000 cases of fraud.

“Philhealth also stopped paying the pending claims of QCEC and announced the allegations and sanctions without giving the clinic due process and informing it of the charges before these were aired in the media through a news conference,” the complaint said.

The other respondents were included in the charges for their participation in what Evangelista described as Padilla’s “apparent vicious intent to tarnish the reputation of QCEC as a health provider facility and destroy QCEC’s business.” Joel San Juan

Lack of quorum to kill anti-dynasty, FOI bills

By Marvyn N. Benaning Correspondent

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HE House of Representatives failed to do its job in three successive session days after President Aquino delivered his final State of the Nation Address (Sona) on Monday.

Members of the Makabayan Bloc, which prides itself as the most diligent group of legislators in the lower house, confirmed that those who applauded the President most on July 27 were missing from July 28 to 30.

Traditionally, the lower house does not hold sessions on Friday to allow members to return to their districts.

If the pro-administration lawmakers continue to absent themselves in preparation for the electoral campaign next year, Aquino’s request to Speaker Feliciano “Sonny” Belmonte Jr. to approve the Anti-Dynasty bill and the Freedom of Information (FOI) bill would mean nothing, the seven-member bloc said.

Nonetheless, the lawmakers will be around during the budget deliberations, particularly after the

Makabayan Bloc, revealed that the claims about the insertions of nine senators in the 2014 national budget are true.

In fact, the bloc said, the P323.6billion realignment orchestrated by Aquino and Budget Secretary Florencio B. Abad in the same year funded more than 1,000 projects at the behest of lawmakers.

Among the nine were Sens. Antonio Trillanes IV and Alan Peter Cayetano, who are both planning for higher office.

On Page 951 of the recently released National Expenditure Program (NEP), Party-list Rep. Terry Ridon of Kabataan said the Aquino administration pooled P90.4 billion from various departments and agencies and P233.2 billion from the Special Purpose Funds (SPFs.) These funds were then transferred to several agencies and to other SPF accounts to deodorize them, even if they eventually went to projects allocated to Liberal Party (LP) lawmakers or for programs pursued by Cabinet members belonging to the same party.

Worse, Ridon said, the funds could be channeled to the presidential campaign of Interior Secretary Manuel Roxas II, who was anointed

by Aquino as the LP presidential candidate in the May 9, 2016, election.

Roxas has been blamed for the fiasco at Metro Rail Transit Line 3, which lost 57 train cars out of 73 when he and his subordinates kicked out Sumitomo from its maintenance contract.

He was also slammed for the Typhoon Yolanda mess, when he tried to take over Tacloban purportedly to speed up “rehabilitation” and caused uproar among the disaster victims.

Bohol mayors whom Roxas criticized for the snail-paced repair of town halls and government buildings destroyed by an earthquake also lashed back at him, saying that the Department of the Interior and Local Government (DILG) that he heads took an eternity to give them the guidelines for the construction projects.

Under Roxas’s watch, not a single fire truck for the Bureau of Fire Protection (BFP) was purchased, even as the bureau had P2.6 billion for the program.

Economy

A4 Saturday, August 1, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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NFA: Enough rice stocks if ‘Big One’ hits PHL

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By Mary Grace Padin

he National Food Authority (NFA) has assured that it is prepared to roll out emergency measures should the “Big One” hit the country.

The NFA said it also has a memorandum of agreement with the Department of Social Welfare and Development to sell rice on credit for disaster relief and emergency operations.

The food agency also has an operations center in Quezon City, with counterparts in field offices nationwide. These centers are activated immediately once an emergency occurs.

Dalisay said he will also visit Pampanga and Tarlac to check their readiness for disasters, and to monitor the prices of commercial rice that has “significantly” gone down.

He said he has been going around the country to make sure that NFA rice is “available, accessible and affordable” to the public.

The Big One refers to a postearthquake scenenario that could hit the country at a 7.2 magnitude.

It is said that the earthquake of this magnitude could kill thousands of residents and destroy buildings in Metro Manila.

Government and private offices, including the NFA, joined a simultaneous earthquake drill in Metro Manila on Thursday.

NFA Administrator Renan B. Dalisay assured the public that the food agency is prepared should a strong earthquake happen and said it has enough rice stocks in its depositories.

“As of July 23, the NFA has a national inventory recorded at 15.5 million 50-kilo bags, or 775,165 metric tons [MT], which can last for 25 days based on the national daily consumption requirement of 632,620 bags, or 31,631 MT,” Dalisay said.

The administrator said he has instructed NFA’s field officials nationwide to be alert and prepare for the so-called Big One. Meanwhile, Dalisay said he will

visit Dagupan City in Pangasinan to assess the preparedness of the area. He said Dagupan City suffered severely during the 1990 earthquake, which hit Central and Northern Luzon.

An earthquake drill will also be conducted in a warehouse in Binalonan, Pangasinan. This will include a simulation of how rice are released to local government units (LGUs) and relief agencies.

Dalisay said the NFA sells rice on credit to LGUs for relief operations during calamities or emergency situations. The rice loan is due 15 days from the date of the issuance of rice.

briefs

4 firms interested to bid for MTPP’s O&M contract

Comelec ready for power shortage in 2016 polls The Commission on Elections (Comelec) is ready in case there will be power shortage in the May 2016 national and local polls.

Comelec Commissioner Christian S. Lim assured that the automated election system (AES) they will use in next year’s elections would have sufficient battery supply.

“Ang isang contingency namin is that part of the Terms of Reference of the voting machines is that the battery should last for 14 hours,” he said.

The chairman of the poll body’s steering committee for the 2016 elections said the 14-hour battery life will be sufficient to finish the voting and counting procedures in the polling precincts.

“We will have 14 hours na minimum for the batteries. So that should be well enough into and after the counting on election day,” Lim added.

Likewise, the poll official said they are also counting on the commitment of the Department of Energy (DOE) that there will be enough power supply come the May 2016 elections.

“Nung 2013, we called the DOE regarding the power issue. They guaranteed to us that, on election day, there will be power in Mindanao,” he said. PNA

PCSO approves 13 more ASAP partners The Philippine Charity Sweepstakes Office (PCSO) Board of Directors led

by Chairman Ayong S. Maliksi recently approved 13 more hospitals as partners under the PCSO Asap (At Source Ang Processing) program.

The program was launched on April 22 with the signing of an agreement between the PCSO and the St. Luke’s Medical Center.

The 13 hospitals recently added to the program are Justice Abad Santos Gene ral Hospital; Ospital ng Muntinlupa; Quirino Memorial Medical Center; Philippine Children’s Medical Center; Rizal Medical Center; East Avenue Medical Center; Jose B. Reyes Memorial Medical Center; Las Piñas General Hospital and Satellite Trauma Center; National Children’s Hospital; National Kidney and Transplant Institute; Lung Center of the Philippines; and Amang Rodriguez Memorial Medical Center.

“The PCSO Asap Program,” said PCSO Vice-Chairman and General Manager lawyer Jose Ferdinand M. Rojas II, “makes it more convenient for the public to access the agency’s services by establishing a PCSO Desk in partner hospitals.”

The PCSO Desk is manned by a social worker of the hospital and trained by PCSO in request evaluation and recommendation.

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our firms are interested to operate and maintain the Malaya Thermal Power Plant Complex (MTPP) for a year, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

PSALM Officer-In-Charge and Vice President for Finance Lourdes Alzona identified the interested bidders. They are SPC Malaya Power Corp., STX Marine Services Co. Ltd., OGAS Solutions (Thailand) Ltd., and KEPCO KPS Philippines.

STX Marine is the current operation and maintenance (O&M) contractor for the facility. However, its contract is set to expire in September this year.

Alzona said the four firms have purchased bid documents and that their bids will be opened on Monday.

“The bidding for new OMSC [operation and maintenance service contract] is set this Monday, August 3. There will be four bidders in the list,” she said.

The contract is good for a year and the state firm has approved a budget of P457.3 million, which will be sourced through its 2015 and 2016 Corporate Operating Budgets.

Prospective bidders for the OMSC will be subjected to open competitive bidding procedures using nondiscretionary “pass or fail” criterion in accordance with Republic Act

9184, the Government Procurement Reform Act. “Through this procurement project, PSALM hopes to ensure the continued maintenance and operation of the MTPP as a security plant for the Luzon Grid,” Alzona added.

The MTPP is composed of two units in Pililia, Rizal. Unit 1 is a 300-megawatt (MW) unit with a once-through type boiler, while unit 2 is a 350-MW unit fitted with a conventional boiler. The power facility was last rehabilitated in 1995 by the Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.

STX Marine also earlier won the contract to rehabilitate unit 1. Alzona earlier said that the rehabilitation works were finished early July.

Now that Malaya 1 has been rehabilitated, the entire power facility can run at its full capacity of 65 MW. “There will be an additional 300 MW to be used as reserved. Malaya, being a must-run plant, operates at time of plant outages, Malampaya in particular,” added Alzona.

The Department of Energy earlier designated the MTPP as a must-run unit in order to address any instability or supply deficiency that may occur as a result of sudden unavailability of any of the operating power plants in the grid. Lenie Lectura

Fashion on the sidewalk A helper of a sidewalk fashion stall in Baclaran patiently waits for his lady customers in search for blouses and other ladies wear displayed and sold at bargain prices. Nonie Reyes

2014 realignment allegations ‘misleading’–DBM

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he Department of Budget and Management (DBM) on Thursday stressed that various transfers of appropriation under the 2014 budget were legitimate and open to public scrutiny after Rep. Terry Ridon of Kabataan Partylist alleged that P323.6 billion in funds were improperly realigned in 2014.

The DBM likewise clarified that fund realignments and transfers of appropriation are different, where realignments involve the reallocation, modification, or change of details within an existing program, activity or project.

On the other hand, transfers of appropriation take place when an authorized agency transfers specific appropriations to another agency for the implementation of programs, activities or projects.

“Rep. Ridon’s claims on 2014 fund realignments are very misleading.

First, he mistakes transfers of appropriation for fund realignments, and second, he incorrectly alleges irregularity where there was none.

We ask our public officials to be responsible in interpreting budget information so that we don’t misinform the public,” the DBM said in a news statement.

As noted in the past and present General Appropriations Act (GAA), it said, budgetary transfers from one agency to another involve special provisions in a particular agency’s budget that assign another agency’s support in implementing particu-

lar programs or projects. The latter agencies are therefore given specific appropriations in order to implement these programs or projects.

In particular, the Department of Public Works and Highways (DPWH) was assigned the responsibility of constructing school buildings for the Department of Education (DepEd) under the education agency’s budget in 2015.

The DPWH was also tasked to construct farm-to-market roads (FMRs) for the Department of Agriculture under the latter’s 2015 budget.

On the other hand, when agencies need to effect changes in their organization to improve their operations and performance, they need to set up a Rationalization Plan based on Executive Order 366.

The plan, which involves transferring personnel from one agency to other agencies, will also have an impact on the budget of the agency.

“You’re not only moving around personnel under a Rationalization Plan, you also need to transfer their salaries. With the Department of Agrarian Reform (DAR), they needed to transfer people to the departments of Health and Justice. That’s why we needed to move the Personnel Service (PS) requirements of the affected personnel in DAR to the two other agencies in the 2015 GAA,” said Budget Secretary Florencio B. Abad.

Meanwhile, the DBM has a memorandum of agreement with the Autonomous Region of Muslim

Mindanao regional office of the DepEd (ARMM-DepEd) to administer their Government Service Insurance System (GSIS) premiums.

Likewise, part of the budget of the Department of Justice is transferred to the Department of Social Welfare and Development to ensure the funding of the Child Protection Service as stated under Republic Act 10630.

With regard to funds transferred to and from overall savings, these followed the guidelines in declaring savings from PS. These were later used to augment the 2014 National Disaster Risk Reduction and Management Fund (NDRRMF) and 2014 Contingency Fund, as well as to help settle the GSIS liabilities of the People’s Television Network.

“Before these funds can be transferred, the agencies need to detail their projects—with the specific beneficiaries or areas—before funds are released. Likewise, all information on these transfers are well-documented and made available online. In past and present GAAs, we’ve been following the strict conditions laid down by Congress. We have also crafted the budget in accordance with the high court ruling on savings and fund transfers” Abad said.

“While we welcome criticism, we also need to be vigilant against scaremongering because that only confuses the citizens. At the same time, it contributes nothing to the public discussion on government spending,” he added. PNA

Business group lauds recent passage of competition law

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he country’s biggest association of manufacturers on Friday hailed the government for the passage of Republic Act 10667 also known as the Philippine Competition Act. A top official of the Federation of Philippine Industries (FPI) said “the law was necessary to assure a level-playing field for all types of businesses in all industry sectors.”

Jesus L. Arranza, FPI chairman said that “the law’s passage is very much welcome news although overdue.” He added “that a true climate of free competition will surely be brought about by the full implementation of this law.

“Without a doubt, such climate will force local businesses to shape-up and be more efficient in the production and distribution of their goods, which will ultimately make the prices of their goods competitive.”

FPI is composed of 45 industry associations, such as those involved in the production and distribution of agricultural products, vehicles, steel, ceramics and cement.

The FPI also recently launched the Fight Illicit Trade Movement, a broad- based, multisectoral initiative intended to protect consumers, safeguard government revenues and shield legitimate industries from the illeffects of smuggling.

Arranza said “the FPI acknowledges the law’s laudable objective of preventing and penalizing businesses from engaging in

anticompetitive business behavior, such as in forming or acting as cartels, and abuses by dominant business groups in a particular industry.”

“The proper implementation of the law is now in the shoulders of the Philippine Competition Commission (PCC), which fortunately is to be directly supervised by the Office of the President,” Arranza said. He added that while the Commission should protect first and foremost...the Filipino consumer, it is also important that businesses and stakeholders are consulted with respect to guidelines that will be promulgated to implement the law.”

In late 2011 the Department of Justice (DOJ) approved the filing of a criminal case against the Liquefied Petroleum Gas Marketers Association Inc. (LPGMA) for acting like a cartel as the group fixes the price of LPG sold in market for cooking purposes The LPGMA case, which is presently being heard by the Pasig City Regional Trial Court is landmark case, being the first ever “cartel” case filed by the DOJ against a business group or association.

The filing of this case in 2013 prompted the Justice Secretary Leila de Lima to create the Office for Competition within the department.

DOJ insiders say that this office is the forerunner of the PCC mandated to be established under the new law.

Cigarette maker Philip Morris Fortune Tobacco Corp. Inc.(PMFTC) recently gathered its more than 200 tobacco leaf and nontobacco suppliers for a Suppliers Summit on Illicit Trade at the Solaire Resort and Casino, where public and private sector experts discussed the dangers of the illicit cigarette trade and how this impacts government revenues, legitimate manufacturers and their supply chain. The group later presented their Commitment Pledge to support the Fight Illicit Trade (Fight IT) Movement to Fight IT lead convener and Federation of Philippine Industries (FPI) Chairman Jesus Arranza (second from left). With Arranza are (from left) PMFTC Supply Chain Central Asia Director Luca Nanni, PMFTC President Paul Riley and Universal Leaf Philippines Inc. President Winston Uy. “We were pleased to accept the pledge from the Suppliers Summit, and we will be encouraging out Fight IT members from the agriculture, petroleum and other industries to undertake similar education measures with their suppliers and partners,” Arranza said.

Fight IT is a multisectoral movement under the FPI, which aims to curb unfair trade practices and protect the consumers.

Economy BusinessMirror

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Saturday, August 1, 2015 A5

Ayala, Filinvest cast bid for P4-B ITS South deal briefs

Drilon to PPA: Speed up Iloilo port upgrade

ILOILO CITY—Senate President Franklin M. Drilon has urged the Philippine Ports Authority (PPA) to upgrade the Port of Iloilo to enhance its shipping and cargo capabilities, particularly due to the heightened economic activities to be generated by government initiatives like the Jalaur River MultiPurpose Project and the Iloilo Convention Center.

Drilon, in a radio interview here, urged the modernization of the Port of Iloilo, which will play a critical role in the economic development of the whole Panay Island, amid the completion of major projects in the region.

According to Drilon, the lack of modern and efficient port facilities in Iloilo could hamper the growth of the city and province of Iloilo and of the entire Panay Island.

The Senate chief said that if not upgraded, the existing port facilities are not equipped to meet the demands for shipping services and cargo transport, which are expected to escalate once the Jalaur project is finished. PNA

Bill proposes P100k retirement for bRGY officials Retiring barangay officials will receive P100,000 under a bill granting them additional incentives upon retirement from government service.

Rep. Rolando G. Andaya Jr. of the First District of Camarines Sur filed House Bill 5721 to give due recognition to barangay officials and workers who have rendered valuable service, addressing immediate concerns of the community, among others.

The bill seeks to amend Republic Act 7160, otherwise known as the Local Government Code 1991.

The bill covers barangay officials, including barangay tanod, members of the Lupon ng Tagapamayapa, barangay health workers, barangay nutrition scholars and barangay day-care workers.

At present, Andaya said a punong barangay receives P1,000 a month as allowance, P600 per month for the Sangguniang Barangay members, barangay treasurer and barangay secretary, while a barangay tanod and members of the Lupon ng Tagapamayapa only receive honoraria, allowances, and other emoluments.

“Their job requires them to be on call at all times in order to maintain public order, amicably settle contending claims of community members, and steer the economic direction of the barangay,” Andaya said.

The measure provides retiring barangay officials a lump-sum retirement pay equivalent to one-year honorarium but not to exceed P100,000 to be taken from the barangay retirement fund.

The measure requires a retiree to be at least 60 years of age with a minimum of nine years of service at the time of the retirement.

The Department of Budget and Management, in coordination with the Department of the Interior and Local Government, shall issue the necessary rules and regulations to implement the proposed act. PNA

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By Lorenz S. Marasigan

RIDAY’S auction for the P4billion Integrated Transport System (ITS) South Terminal contract was met with a low turnout of bidders after half of them withdrew from the tender process to focus on other business endeavors.

Originally, there were four companies that were qualified to bid for the project, but only two of them submitted offers to win the project.

Ayala Land Inc. and Filinvest Land Inc. signified their complete interest for the deal, submitting their technical and financial proposals on Friday.

Datem Inc. and Megawide Construction Corp. backed out of the bidding, with the former citing commercial viability concerns.

Despite this, Transportation Undersecretary Jose Perpetuo M. Lotilla said he is still happy with the turnout of the bidding, adding that he is hoping that the two property developers offered competitive bids.

“What’s important is they have the capability to finish the project,” he said. “The problem there is there are a lot of infrastructure projects, and some of the prospective bidders are already undertaking some of them.” This is particularly true for Megawide, which won five of the 10 projects awarded under the PublicPrivate Partnership (PPP) Program under the Aquino administration.

“We will focus on other projects,” Megawide Vice President for Marketing Louie B. Ferrer said in a brief text message.

Datem, for its part, said it lost interest in the project as it found the project not commercially feasible.

“The company decided to formally withdraw as a prospective bidder due to concerns related to the commercial

viability of the project,” the firm said in a news statement. “Infrastructurerelated public-private partnerships can be technical and economically complex.” Technical proposals of Ayala and Filinvest were opened on Friday. Lotilla said his office targets to complete the review and awarding processes as early as next week.

“We hope to award as soon as possible. I think we can do it by a week from today, Friday. But, it still depends on how fast we can finish the process, the technical evaluation is not that hard,” he said.

The winning bidder will take care of the design, construction, and operations and maintenance (O&M) of the terminal for a concession period of 35 years.

The multibillion-peso project covers the construction of a terminal within a 4.7-hectare lot along Food Terminal Inc. (FTI) Compound in Taguig City. It will connect passengers coming from the South, specifically the Batangas and Laguna area, to other public-utility vehicles that are serving inner Metro Manila. It also covers the construction of arrival and departure bays, public information systems, ticketing and baggage facilities and park-ride facilities.

The transport agency aims to award the project in the third quarter this year in order to begin construction by the second quarter of 2016, while the terminal is set to open in December 2017.

Ligtas patient

Philippine Charity Sweepstakes Office (PCSO) Vice Chairman and General Manager lawyer Jose Ferdinand M. Rojas II (right) and Director Francisco G. Joaquin III interact with Armand Gabriel Fulgencio, 4, one of the pediatric patients of The Medical City (TMC) Liver Center Ligtas (Liver Transplant Information and Guidance Through Awareness Support) Program. The PCSO, through a formal partnership with TMC, is committed to providing liver-transplant patients with financial assistance for their hospitalization and surgery. With them are liver specialists Dr. Karen Mercado (left) and Dr. Vanessa de Villa, and Fulgencio’s parents Eleanor and Armando from Meycauayan, Bulacan. JOSEPH MUEGO

The government has awarded 10 contracts since it launched the PPP program in late 2010, namely: n The P2.2-billion Daang HariSouth Luzon Expressway project bagged by Ayala Corp. in 2011; n The P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. (MCC) and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. Consortium; n The P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013;

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he Japan International Cooperation Agency (Jica) turned over P17.8 million worth of agriculture infrastructure projects in Southern Leyte.

These infrastructure projects included communal irrigation project, potable-water system and postharvest facility. These will benefit 120 households of Katipunan, Silago, Southern Leyte. The projects were undertaken through the Jica-Department of Agrarian Reform (DAR) cooperation Agrarian Reform Infrastructure Support

Infrastructures Ltd.; n The P64.9-billion Light Rail Transit Line 1 Cavite Extension deal, awarded in 2014 to Light Rail Manila Consortium of Ayala and MPIC; n The P2.5-billion Integrated Transport System Southwest Terminal, won by MCC and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy in January; and n The P35.42-billion CaviteLaguna Expressway bagged by MPCALA Holdings Inc. of MPIC in June.

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

Lawmaker backs P8-billion Cebu IT Park expansion proposal

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ep. Gerald Anthony Gullas Jr. of the First District of Cebu on Friday said he supports a plan to expand the 24-hectare Cebu Information Technology (IT) Park, a bustling economic zone that hosts some of the world’s largest business-process outsourcing (BPO) providers and the back offices of multinational corporations.

“We are all for the project. It will surely draw in new investors and create fresh employment opportunities for the more than 23,000 college graduates that Cebu produces every year,” said Gullas, vice chairman of the House Committee on Higher and Technical Education.

The young legislator was responding to the request of Cebu Property Ventures and Development Corp. (CPVDC), the developer and operator of the IT park, for the City Council of Cebu to endorse the proposed P8-billion 2-hectare superblock.

The city government’s approval is required for the expansion project to be accredited by the Philippine Economic Zone Authority. The superblock will include two new BPO office towers; a 500-store, threelevel Ayala mall; and a 12-level, 214-room Seda Hotel.

“Whatever value is added to the IT park is also value added to Cebu as well as the provincial government’s passive investment in CPVDC,” Gullas said.

According to Gullas, the provincial government owns 8.28 percent of CPVDC. The province’s 77,865,406 shares in CPVDC, at P6.50 apiece, is now worth P506 million, according to Gullas. He also said that from 1996 to 2014, the provincial government received a total of P100.9 million in cash dividends from CPVDC, a Philippine Stock Exchange (PSE)-listed entity. Cebu Holdings Inc. (CHI) owns 76.26 percent of CPVDC, and Ayala Land Inc. (ALI), another 7.80 percent. CHI is, in turn, 49.80 percent-owned by ALI. CHI is the developer and operator of the nearby 50-hectare Cebu Business Park.

PSE filings show that CPVDC posted a net income of P150.2 million on gross revenues of P550.73 million in 2014.

The company generates revenues from the lease of office and commercial spaces, as well as real-estate sales, mostly of residential condominium units.

Gullas sees that the provincial government’s investment in CPVDC “could possibly be worth billions of pesos years from now, as land and property values grow.”

“We need bigger IT parks and high-tech office spaces to further build up Cebu as a global outsourcing hub,” the Cebu solon said. A leading US-based services globalization and investment advisory firm, Tholons Inc., previously rated Cebu as the world’s eighth-best outsourcing destination, after Bangalore, Metro Manila, Mumbai, Delhi, Chennai, Hyderabad and Pune.

“Cebu has the huge potential to rapidly grow as an outsourcing ‘superstar.’ Our biggest asset is our ample supply of young professionals and fluent English-speaking college graduates,” he said.

Gullas is author of a bill seeking to reinforce the use of English in all school levels, in a bid to make the nation’s future human resources highly competitive in the global labor markets.

The current locators at the Cebu IT Park include Accenture Inc., Aegis PeopleSupport Inc., Bombardier Transportation Shared Services (Philippines) Inc., Convergys Philippines Services Corp., Epson Software Engineering (Philippines) Inc., eTelecare Global Solutions Inc., IBM Solutions Delivery Inc., JPMorgan Chase Bank N.A.-Philippine Global Service Center, Microsoft Philippines Inc., NCR Cebu Development Center Inc., NEC Telecom Software Philippines Inc., Penguin Random House Co.’s Author Solutions, Promotional USB of Australia, Qualfon Philippines Inc., Stream International Global Services Philippines Inc., and 1 & 1 Internet Philippines Inc. The country’s BPO and IT-enabled services industry encom-

Jica turns over agri infra projects in Southern Leyte

By Cai U. Ordinario

n The P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium; n The P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the Megawide-World Citi Inc. consortium, also in 2013. n The P1.72-billion Automatic Fare Collection System contract awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. (MPIC) in 2014; n The P17.5-billion MactanCebu International Airport New Pa s s e n ge r Te r m i n a l proje c t bagged in 2014 by MCC and GMR

Project (ARISP)-Phase III. “We continue to support Philippines’s inclusive growth agenda, and enhancing agriculture production remains one of our priorities. We hope that through the agriculture infrastructure, we will be able to uplift the lives of people in agrarian communities, and create more jobs in the area,” Jica Representative Yoshiyuki Ueno said.

The turned over subprojects in Silago, Southern Leyte, were an outcome of cost-sharing or 50 percent each from the local government of Silago, and the ARISP III project.

The projects in Silago were also im-

plemented in partnership with the municipal government and the National Irrigation Administration. Jica lauded the participation of the beneficiaries who contributed equity through materials for construction, portion of land value and improvement of right of way.

“The projects highlight the value of community participation in achieving development goals, and making sure that the people’s voices are heard,” Ueno said. “The subprojects were consulted with barangays and based on the Agrarian Reform Community development plan.” Since 1995 Jica has partnered with the DAR to implement its ARISP

to support Philippine agriculture.

ARISP, now on its third phase, aims to build 13,468 irrigation facilities in the Philippines and 754 kilometers of farm-to-market roads.

The project also intends to build 1,822 linear meters of bridges, 94 postharvest facilities and 84 units of potable-water supply, among others.

Jica is an agency of the government of Japan responsible for implementing the technical cooperation, grant aid and yen loan programs of Japan’s official development assistance to developing countries such as the Philippines.

passes contact-center services; back offices; medical, legal and other data transcription; animation; software development; engineering design; and digital content.

According to the IT and Business Processing Association of the Philippines, the industry is projected to fully employ some 1.3 million Filipinos and generate up to $26 billion in annual revenues by 2016. PNA

A6 Saturday, August 1, 2015

Opinion BusinessMirror

editorial

Madonna in Manila: Too expensive?

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op-music legend Madonna is coming to Manila to perform at the SM Mall of Asia (MOA) Arena in February next year. We welcome her to our shores. However, since the announcement of her concerts, there has been some controversy and discussion about the price of the tickets to see her perform.

While there are certainly much more important issues to discuss, as the highest-priced Special VIP admission is at P57,750, does this say something about the Philippine economic situation?

Madonna began her first concert tour in 1985. While her fans would vehemently disagree, at 56 years old, her career has probably peaked out a bit. But that does not distract in any way from her talent. It is the P58,000 a ticket that is the issue.

We thought back to when another music legend came to Manila in December 1996. Michael Jackson then was at the top, having released the iconic studio album HIStory: Past, Present and Future. On this album, as at the concert in Manila, Jackson sang the songs that have come to define his music: “Billie Jean,” “Thriller” and “Beat It.” The venue for the Michael Jackson concert was the then-wilderness of the reclamation area on Roxas Boulevard. A temporary road had to be cut from where Jackson was staying at the Westin Philippine Plaza Hotel (now Sofitel Philippine Plaza) to the concert site. While our memory is not exact on this, it would not be surprising—but certainly ironic—that his concert in the field was staged near the current location of the MOA Arena.

The most expensive ticket to see Jackson was P5,000. At the peso-dollar exchange rate then, it was priced at $190. The least-expensive admission was P500 ($16.25). By comparison, in dollar terms, Madonna’s most expensive is $1,300 and least costly is $70.

Interestingly, Jackson played to a venue holding 50,000 and, at full capacity at the arena, Madonna will be seen by about 40,000.

In peso terms, Madonna’s highest-priced ticket is over 10 times as costly as Jackson’s and the least costly is six times as high. Could the growth of the Philippine economy in the last 20 years explain the difference in ticket prices?

When Jackson came to the Philippines, the country’s total economic output was $74 billion. As Madonna graces our country, last year we produced $285 billion. The size of the Philippine economy is about four times as large now as in 1996. Madonna’s tickets are too expensive by that standard.

In 1996 the per-capita gross domestic product in comparative purchasing power was $4,100. Currently, it is about $6,600, or 50 percent larger. Still, too expensive. Average monthly household income in the Philippines has almost doubled in 20 years, but not up 10 times as between the Jackson ticket price.

Too expensive?

Madonna’s concert will be sold out as was Jackson’s. Back in 1996, some complained that the MJ concert highlighted the wealth disparity of the country. Some things haven’t changed in two decades.

Online stock-market investing John Mangun

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OUTSIDE THE BOX

omeone on Facebook gave me a link to a scanned copy of my column from Monday, July 23, 2001, in the Philippine Daily Inquirer, titled “Understanding the peso”. Nothing has changed much since then, except that I did actually have hair on my head.

At that time, the Bangko Sentral ng Pilipinas was concerned about and trying to take action against potential currency manipulators attacking the peso, which was trading at 53 to $1.

In typical blah-blah fashion, I talked about how this sort of manipulation can take place in both currencies and stocks. But, as I told someone, the interesting thing was what was in the old newspaper itself.

President Gloria MacapagalArroyo was to give her first State of the Nation Address (Sona) that same afternoon, and not much has changed since then. It was to be a “Sona for the poor,” and many of the same familiar faces were running the government then as now. Protesters were going to be in the streets for the speech, except that the Philippine Charity Sweepstakes Office intended to provide a meal of lugaw and bottled water for the street activists.

In the financial section, we find that the Philippine Stock Exchange Composite index was trading at 1,400. Needless to say, “The market is

looking forward to the President’s speech to provide some temporary relief to an otherwise listless stock market this week.” The more things change, the more they stay the same.

But individual stock prices have changed a lot since then. Almost exactly 14 years ago, here were the prices of some selected issues: Ayala Corp., P6.50; Jollibee, P13.50; Ayala Land, P4.95; DMCI Holdings, P0.28; Megaworld, P0.71; and Philippine Long Distance Telephone, P665.

It was an advertisement, though, that caught my attention. A brandnew Acer desktop computer was on sale for P84,900. The computer package included a 14-inch LCD monitor, and the computer was powered by Pentium III, which included 128 megabytes of RAM memory, a 1.44 floppy disk drive, a 30GB hard drive and, of

course, a fax/data dial-up modem to connect to the Internet. The promo included a free Acer V750 cell phone with “28 built-in ringtones” but no games. Obviously, some things have changed for the better.

What has also changed is the way orders are being executed on the stock exchange by active traders and investors. While many still like the personal contact of speaking directly with a stockbroker, many—in the tens of thousands—have switched to online trading, and the trend is growing.

Online trading carries its own advantages and disadvantages. One disadvantage is that an investor does not have the opportunity to discuss a trading decision with a stock-market professional. One advantage is that an investor does not have the opportunity to discuss a trading decision with a stock market professional.

Too many times, stockbrokers are like a salesperson in a clothing store.

Of course, that outfit looks great on you as long as you buy it. And here is another that would also look fantastic.

But, seriously, online or offline is not as important as the decision process itself. If your stockbroker can provide sound investment advice, then by all means use a live broker. If you are willing to do your homework, then it makes sense to go online.

The industry has benefited from online trading, as it tends to make investors more active in the market, and that is actually good for all investors, providing more liquidity. However,

China’s headaches are the Fed’s, too William Pesek

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BLOOMBERG VIEW

t’s time to call Beijing’s aggressive stock-market intervention what it really is: quantitative easing (QE), Chinese style.

With deflation pressures mounting, China’s central bank would seem to have plenty of incentive to follow counterparts in Japan, the United States and Europe down to zero rates and beyond. Governor Zhou Xiaochuan has held off because of two overriding fears. First, an unknown number of companies might default on dollar debts if a full-fledged QE program depressed the value of the yuan.

Second, that kind of stealth devaluation might scuttle Beijing’s hopes of adding the renminbi to the ranks of the world’s reserve currencies.

Instead of intervening in debt markets as the Federal Reserve (the Fed), Bank of Japan (BOJ) and European Central Bank (ECB) have, China has, thus, targeted stocks directly. The goal—to commandeer assets as a transmission mechanism to gin up growth and confidence—is the same. Indeed, in some ways, the Chinese strategy is even more direct about its aims.

This is the worrying part, though: Just as those other nations have, China is going to have a very hard time exiting from its easing program. And its difficulties are going to compound the challenges faced in Washington,

Brussels and Tokyo.

Monday’s 8.5-percent stock plunge in Shanghai followed reports Beijing was considering how to withdraw support for shares. The scare probably postponed any such moves indefinitely. Earlier this month, Zhou sounded much like his global peers when he pledged “ample liquidity” to the market. On Tuesday he again promised to stay the course, saying the People’s Bank of China (PBOC) would “stabilize financial-market expectations and continue to support the real economy.”

While probably necessary to forestall a panic, there are obvious costs to this approach. Beijing should be accelerating the transfer of productive assets from inefficient state-owned enterprises to higherpotential private-sector industries.

The more time authorities spend obsessing over stocks, the less they’ll have to shore up China’s foundations.

This matters outside China, as well.

True, the impact of a stock bust on the broader Chinese economy can be exaggerated. Only about 9 percent of households participate directly in the market, and the share of equities in totals assets is in the “low single digits,” says Tom Orlik, Bloomberg economist in Beijing. As such, he notes, “early signs suggest China’s consumer mood has been unaffected by the collapse in the equity markets.”

But the psychological impact globally is unmistakable. For one thing, investors worry about the knock-on effects on Chinese bank balance sheets. Badloan growth accelerated in the first quarter, up 64 percent year-on-year at China Merchants Bank alone. Falling share prices are putting intensifying pressure on asset quality. Only time will tell how the recent $4-trillion loss in market value will affect megabanks, such as Industrial & Commercial Bank of China, China Construction Bank and Agricultural Bank of China.

For another, the efforts to calm stocks are affecting China’s interest-rate trajectory, adding to the risk of a global shock.

In 2013 speculation the Fed would begin tapering roiled emerging markets and demonstrated what can happen when a major central bank tries to exit QE. China could soon provoke its own taper tantrum. A deeply concerned International Monetary Fund, for example, is urging Beijing to unwind its QE-via-stocks

in a flat or down-trending market as we have had for several months, online investors walk to sidelines more quickly and may miss opportunities.

Reasonably, often contact with a live broker, even when not actively trading, keeps an investor involved in the market even if temporarily on the sidelines.

Online or offline, stock-market investing requires the two same things: reliable information and analysis of that information. And information is not just the company financial reports. Most stockbrokers do an excellent job of having all the data that you need right at your fingertips. The problem comes in the interpretation of that data. One broker says “buy” and another says “hold” based on the same information, and “Past Performance Is No Guarantee of Future Results” as every research report disclaims.

Your future results are only in your own hands, and that is why it is important to continuously learn more and constantly grow your stock-market education. If you do not know more about stock-market investing today than you did one year ago, then it is unlikely that your results will be much better.

E-mail me at mangun@gmail.com.

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

scheme. Were Beijing to acquiesce, global markets could follow Chinese shares lower. The resulting volatility and damage to business and consumer confidence around the globe could trap the Fed and the ECB in ultralow-rate territory longer than officials realize.

Risks also abound if China goes the other way, BOJ style. Sensing its legitimacy is on the line, President Xi Jinping’s party may throw more and more inducements at the markets. But continuing to feed a financial monster of the government’s creation will make it harder to control—and increase risks of a crash. Along with PBOC stimulus, support efforts are sure to be financed by fresh borrowing by local government and state-owned enterprises already suffocating on debt. As one huge bubble (debt) feeds another (stocks), China’s problems could become the world’s in a repeat of Japan’s asset reckoning.

As Beijing battles hedge funds in the months—or years?—ahead, Fed Chairman Janet Yellen will also have to keep a close eye on China’s dollar holdings.

In the second quarter, China’s currency hoard fell to $3.69 trillion, the lowest since 2013. Beijing may be tempted to draw down reserves even more to prop up stocks. The slightest whiff China is dumping its $1.2 trillion of dollars would send shockwaves through world markets and US borrowing costs higher.

In recent years, the Fed bent over backward to show it’s not a threat to global stability, or to its central- banking peers. Now at least some of that burden falls on Beijing.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Saturday, August 1, 2015

A7

Scrutinize the AFP command Caritas Manila welcomes graduates to its Society of Servant Leaders and control structures first before you modernize Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database

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HIS is a job for our legislators in Congress and the Executive branch to look over because the defense budget passes through them and the right mix of national security policies are crafted by them and their expert advisers.

What we have today in the armed services is the unified command (UC) concept that is very expensive to maintain. It removed the distinctions between maritime, land and air operations; and it produces more armchair generals.

A study conducted by this writer showed that the UC concept is better suited for conventional warfare rather than for guerrilla warfare.

Besides, there is a great value in the separate identities and distinct characteristics of the Navy, Army and Air Force as the needs of the modern battlefield require the specialist skills, fast transport and communications, armaments and high-density explosives.

Various arguments for the UC concept appeared persuasive, but such impressions need to be critically examined. While there is a general absence of economics literature on the UC concept, Congress and the Executive branch should look at the subject by focusing initially on the economics of defense and the need for difficult choices in an environment of uncertainty.

A starting point requires an indepth study of the present multilayered command structure, particularly the UC or joint operations, which are not actually a new concept as they were implemented on an ad hoc basis by the allied forces during the European and the Pacific wars.

The official literature claims two major arguments for UC. First, the armed forces together provide a greater capability than the sum of their individual parts; and second, UC offers efficiency savings through rationalization and the elimination of wasteful duplication.

But, as with merger of services, the study believes that any advantages of a UC would be outweighed by the damaging impact on the economy and the ethos, morale and operational effectiveness of the men in uniform, especially if you put a premium on the need to retain the individuality and separate identity of the three services with their specialist skills, loyalty and commitment.

Besides, the Army, the Navy and the Air Force, as well as the police, have maintained separate defensive and offensive capabilities using different variants of guerrilla warfare, which is the situation in the Philippines. Each used its own cost-effective operating procedures, command and control systems, maintenance support chains and training programs.

The narrow justification for opting a UC concept for the armed services is this: there are unlimited demands for new equipment, personnel and bases, but the resources available for defense spending were limited. This problem had been accentuated by rising equipment costs at about 20 percent yearly in real terms.

Narrow in the sense that the planners did not consider that maintaining the present multilayered command structure would require enormous overhead expenses.

For example, under the present command structure are seven UCs, namely, Northern Luzon Command; Southern Luzon Command; National Capital Region Command; Central

Command; Western Command; Eastern Mindanao Command; and the Western Mindanao Command.

In addition, there are the AFPwide support services and units that report directly to the AFP General Headquarters: AFP General Headquarters and Headquarters Service Command; General Headquarters and Headquarters Service Command (GHQ & HSC), act as the fourth Major Service Command representing the support, technical and independent services of the Armed Forces; Technical and Administrative Service, Armed Forces of the Philippines; Presidential Security Group; Philippine Military Academy; Armed Forces of the Philippines Commissary and Exchange Service; Communications, Electronics and Information System Service, Armed Forces of the Philippines; Civil Relations Service, Armed Forces of the Philippines; Armed Forces of the Philippines, Dental Service Center; and the National Defense College of the Philippines.

At a glance, you have here headquarters operating over the existing general headquarter whose functions and responsibilities overlap with the latter.

For example, the Army alone has 10 divisions, 30 brigades, 90 battalions scattered all over the country with separate headquarters complete with the usual line services: intelligence, personnel, operations and logistics.

There are a host of broad choices for defense policy-makers to consider to correct the flawed command structure and one of these is a major defense review of the structure and troops commitment in relation to the nature of threats (e.g., its commitment to provide a complete range of air, land and sea forces and the size of forces in Mindanao where three UCs are operating but fighting only a guerrilla war).

In this context, the disbanding of the UC and adopting the pre-martial law command structure, which was lean, mean and highly professional, offers an efficiency improvement by maximizing defense capability from a limited budget and/or providing cost savings through the right combination of policies (e.g., economic rationalization, avoiding duplication of functions and responsibilities and from shared training and support activities).

For instance, the P401.14-billion defense budget approved by President Aquino for 2016 provides only limited information on the costs of UC concept.

Some further insights into the multilayered command structure are provided by employment data for service and civilian personnel at the AFP Headquarters in Camp Aguinaldo.

Again, these are only part of the limited data available for analysis at the AFP Headquarters and there is a need for Congress and the Executive branch to review the command and control structures, and establish its own databank and retrieval system to provide the public accurate information on how defense and security spending is made in relation to the country’s local, national and global security situations.

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

M

ore than 100 graduate-beneficiaries under the six-decade education program of Caritas Manila recently gathered for its First General Assembly held at Saint Joseph School in Pandacan, Manila.

Atty. Lorna Patajo-Kapunan, distinguished lawyer and humanrights advocate, was the keynote speaker. In her speech, she recalled Pope Francis’s visit in the Philippines. She also inspired the graduates to uphold the values instilled

by Caritas Manila as they become servant leaders in the society.

“From stories shared by the graduates and alumni, I have no doubt, as I face you tonight, that you are all servant leaders. The future of this country and our poor rise in fulfilling your mission of empowering,

caring and being servant leaders of our country,” Kapunan added.

With the theme “And God called them Servant Leaders,” as executive director of Caritas Manila, I also welcomed the graduates and encouraged them to give back and share the generosity they received through Caritas Manila.

Three graduate-beneficiaries, Sophia Avendano of Batch 1994, and new graduates with honors, Jessica Ferrera and Fredielyn Soria, expressed their heartfelt gratitude to Caritas Manila not only for helping

them finish college but also for honing them to become servant leaders.

Officers of Caritas Society of Servant Leaders (CSSL), led by Manny Tan, Caritas scholar Batch 1984, were inducted during the event. “Balik Handog,” a pay-forward project of the Society, was launched, which aims to support more youth to finish college.

The Eucharistic celebration was presided by the Rev. Fr. Benny Tuazon, former Caritas Manila scholar and now parish priest of Saint Anthony of Padua, concelebrated by the Rev. Fr. Roberto de la Cruz, Restorative Justice Minister. In his homily, Fr. Benny emphasized the Church’s response in educating poor youth, “We have to thank the Catholic Church sapagkat ang isa sa misyon ng simbahan ay tulungan ang mga nahihirapang magpaaral na magkaroon ng edukasyon.”

Caritas Manila believes that education is the most effective developmental program for poverty reduction. With over 10,000 graduates since 1953, Caritas Manila’s flagship program—Youth Servant

Leadership and Education Program (YSLEP)—continues to provide educational assistance, values-formation workshops and leadership trainings to more than 5,000 students nationwide.

Caritas Manila is the Archdiocese of Manila’s lead social services and development ministry. Apart from YSLEP, Caritas Manila runs diverse projects that help the poor fulfill their human potential, such as the All is Well Health Program, Restorative Justice Ministry, Caritas Damayan and social entrepreneurship programs Caritas Margins and Segunda Mana.

To know more about YSLEP and other programs of Caritas Manila, visit www.caritasmanila.org.ph. For your donations, call our DonorCare lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857.

Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph.

For comments, e-mail veritas846pr@ gmail.com.

Top French official contradicts Kerry on Iran deal

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By Josh Rogin | Bloomberg View

ecretary of State John Kerry has been painting an apocalyptic picture of what would happen if Congress killed the Iran nuclear deal. Among other things, he has warned that “our friends in this effort will desert us.” But the top national security official from one of those nations involved in the negotiations, France, has a totally different view: He told two senior US lawmakers that he thinks a congressional no vote might actually be helpful.

His analysis is already having an effect on how members of Congress, especially House Democrats, are thinking about the deal.

The French official, Jacques Audibert, is now the senior diplomatic adviser to President François Hollande. Before that, as the director general for political affairs in the Foreign Ministry from 2009 to 2014, he led the French diplomatic team in the discussions with Iran and the P5+1 group. Earlier this month, he met with Democrat Loretta Sanchez and Republican Mike Turner, both top members of the House Armed Services Committee, to discuss the Iran deal. The US ambassador to France, Jane Hartley, was also in the room.

According to both lawmakers, Audibert expressed support for the deal overall, but also directly disputed Kerry’s claim that a congressional rejection of the Iran deal would result in the worst of all worlds, the collapse of sanctions and Iran racing to the bomb without restrictions.

“He basically said, if Congress votes this down, there will be some saber-rattling and some chaos for a year or two, but in the end, nothing will change and Iran will come back to the table to negotiate again and that would be to our

advantage,” Sanchez told me in an interview. “He thought if the Congress voted it down, that we could get a better deal.”

(The Elysee Palace office and the French Embassy in Washington did not respond to my requests for comment on Thursday morning. After publication on Thursday afternoon, a spokesman for the embassy, Arnaud Guillois, issued a statement saying it “formally denies the content of the remarks.” The embassy would not elaborate, except to say that it spoke for Audibert. He did not respond to a request for an interview.)

Audibert’s comments, as recounted by the lawmakers, are a direct rebuttal to Kerry, who, in remarks to the Council on Foreign Relations on July 24, said that if Congress voted down the deal, there would be no chance to restart negotiations in search of a tougher pact. Kerry also said that congressional rejection of the Iran deal would erode the US credibility to strike any type of international agreement in the future. “Do you think the Ayatollah is going to come back to the table if Congress refuses this and negotiate again? Do you think that they’re going to sit there and other people in the world are going to say, hey, let’s go negotiate with the United States, they have 535 secretaries of State?” Kerry

said. “I mean, please.”

This argument is being echoed by a throng of US commentators and former Obama administration officials who support the deal. They all say that if Congress doesn’t lift US sanctions, the rest of the international regime will collapse and allied countries will rush to do business in Iran.

That would make the US sanctions moot and put US businesses at a disadvantage, the argument goes. (Kerry pointed out in his council speech that the French foreign minister, the French commerce minister and German officials were all visiting Iran with delegations this month.)

Audibert disagrees with that analysis, too, according to the two lawmakers. He told them that if US sanctions were kept in place, it would effectively prevent the West from doing extensive business in Iran. “I asked him specifically what the Europeans would do, and his comment was that the way the US sanctions are set in, he didn’t see an entity or a country going against them, that the risk was too high,” Sanchez said.

Audibert also wasn’t happy with some of the terms of the deal itself, according to Sanchez and Turner. He said he though it should have been negotiated to last forever, not start to expire in as few as 10 years. He also said he didn’t understand why Iran needed more than 5,000 centrifuges for a peaceful nuclear program. He also expressed concerns about the robustness of the inspections and verification regime under the deal, according to the lawmakers.

To be sure, Audibert wasn’t speaking on behalf of the entire French government, and there may be a variety of views about the deal in Paris. The French am-

bassador to Washington, Gerard Araud, has been on Capitol Hill pushing for the deal along with his British and German counterparts. “It’s just one person’s opinion, but he has good credentials to be talking about it,” Sanchez said of Audibert. “We have Kerry saying the French are just going to bust in there and do this and this, and here we have somebody who seems to disagree with that.”

When the lawmakers returned to Washington, news of their conversation with Audibert spread among their colleagues. Turner confronted Kerry with Audibert’s statements during a July 22 closed-door briefing with Kerry and more than 300 House lawmakers. The briefing was classified, but Turner’s questions to Kerry were not.

“Are you surprised Jacques Audibert believes we could have gotten a better deal?” Turner asked Kerry, according to Turner.

“The secretary appeared surprised and had no good answer as to why the national security adviser of France had a completely different position than what the secretary told us the same day,” Turner told me.

Sanchez was not at that briefing, but since then, many lawmakers have asked her about the information, especially Democrats, she told me. “It’s one piece of information that people will use to decide where they are,” she explained.

While the chances of Congress voting down the deal and then overriding a presidential veto are slim, they are not negligible: Many Democrats, including Sanchez, remain on the fence. They are scrutinizing it and examining the administration’s claims one by one. Now, one top French official has sent them a strong message that there could be better alternatives.

Europe’s worst crisis in decades is also populism’s greatest opportunity

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By Julian Baggini

RISTOL, England—The Greek crisis has been one of the most analyzed political events of recent years, and yet one aspect of the drama has been under-discussed. This lacuna was most evident when the result of the referendum came in and several political leaders hailed it.

“It’s fantastic to see the courage of the Greek people,” said one. Another called it “a victory of the people against the oligarchy of the European Union [EU].” A third hailed “a very important day for Greece but also for Europe,” saying, “We saw the Greek people, who did not give in to fear, who proved that it cannot be blackmailed, it cannot be threatened.” These are sentiments many progressive democrats shared. But it should give us pause to note that these three celebratory pronouncements came from the lips of Nigel Farage, Marine Le Pen and Panos Kammenos, the leaders of UKIP, the Front National, and far-right coalition partner of Syriza, the Independent Greeks, respectively.

Of course, the fact that many people we’d rather avoid supported the “no” vote is not in any way an argument that “yes” was the better choice. Guilt by association is by itself nothing more than a cheap rhetorical slander, like condemning vegetarians because Hitler was at least for a while among their number. “The friend of my enemy is my enemy” is a logic of

the school playground.

Nonetheless, when people do keep unsavory company and get support from nefarious sources, we ought at least to ask what is really going on. And in this case, the answer is clear.

Syriza members are not fascists, and Greek Prime Minister Alexis Tsipras is not Farage. But Syriza is a populist party, and in that respect, it has much more in common with the likes of the Front National and even Golden Dawn than it is comfortable having its sympathizers admit.

Populism is a difficult word, not least because almost uniquely in the US, it has a mostly positive meaning. Elsewhere, populism is more a term of abuse. The core of populism is, in the words of Tim Bale, a distinction “between ‘the people’—long-suffering, sensible, salt of the earth—and the political [and sometimes financial] class—a self-obsessed, self-interested, nest-feathering elite which will sell them down the river every time.” In this dichotomy, the will of the people is taken as clear, right and given.

As Catherine Fieschi puts it, there is “a conviction that ordinary people in their common sense and emotionally direct relationship to politics have all the answers.”

The likes of Farage and Le Pen have reveled in the Greek crisis because it is the biggest populist uprising in Europe of recent decades. Syriza’s rise to power and defiance of the EU show that populism is a potent force in Europe. Since the

1980s, the populists have had periodic surges of support, but with the exception of Switzerland, none managed to sustain more than around 15 percent of the vote, and few entered government and exercised any real power. But now the formbook has been ripped up, and all bets for the future are off. No one should take comfort from the fact that Syriza is floundering, because the main beneficiary of its demise would be the much more extreme Golden Dawn.

This should frighten us. Populism appeals to the “will of people” but is actually profoundly undemocratic. Democracy is about the negotiation of competing interests, the balancing of different values. Populism, in contrast, is a kind of mob rule. Where there is complexity, it offers simple solutions. Instead of seeking common ground, it looks to exaggerate the differences between them and us. The unquestioned righteousness of its own cause and means to its ends leads to the demonization of those it opposes.

The right has never had a monopoly on populism. The left had Hugo Chavez in Venezuela, and there is no doubt that Syriza is another.

Tsipras’s pre-referendum rhetoric was classic populism, with its denunciation of the troika as “terrorists” and appeal to “destiny” and “the will of the people.”

Pernicious though populism is, the blame for its rise lies squarely with the political mainstream which it so effectively sets

itself against. There have been no shortages of warnings about the rise of populism from think tanks and political commentators. Counterpoint produced a whole series of reports from across Europe (one of which I wrote), while Policy Network has been reading “the populist signal” for several years.

The diagnosis is clear enough. Populism is on the rise because the political mainstream disconnected from the worries and concerns of ordinary people—in particular traditional, settled working classes. Populists offered them a voice that they felt had been denied them.

The mainstream was able to be presented as a disconnected elite because that is precisely how it behaved. In short, populism became credible because it had a good point.

The challenge for the mainstream to counter the populists is immense. The temptation is to play their game, trying to outbid them with simplifications and unrealistic promises.

That is a sure-fire way to lose. The only sustainable strategy is to rebuild trust brick by brick, demonstrating the seriousness and integrity that populists lack. The problem is that, at the moment, that seriousness and integrity is just what is lacking from a political generation in thrall to image management.

Julian Baggini is the founding editor of The Philosophers’ Magazine.