Businessmirror september 26, 2015

BusinessMirror

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

U.N. MEDIA AWARD 2008

A broader look at today’s business

SaturdaySeptember 18, 2014 Vol.26, 10 No. 40 Vol. 10 No. 352 Saturday, 2015

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BSP NOTES CONTINUED STRONG DEMAND; MACROPRUDENTIAL MEASURES INSULATE BANKING SECTOR

‘Real-estate risks remain muted’

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HE Bangko Sentral ng Pilipinas (BSP) shrugged off concerns over the condition of the country’s real-estate sector and the bank’s exposure to it, as brought up by Fitch Ratings in its latest assessment of the Philippines.

INSIDE

SUCCEEDING IN A MAN’S WORLD Life

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

Saturday, September 26, 2015

GUINIGUNDO said that, while the rise in realestate supply and demand has been notable, it remains to be “manageable, and the risks that come with it remain muted.”

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Succeeding in a man’s world SOMETHING LIKE LIFE MA. STELLA F. ARNALDO

http://stella-arnaldo.blogspot.com @Pulitika2010

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ONCE asked Olivia Limpe-Aw, chairman of Destileria Limtuaco & Co. Inc. (DL), if she had any hobbies or other interests outside of her work. Her answer was: “None.” I prodded her some more: “But how do you relax?” (After a bit of thought, she said that she dines out with her family, watches movies, indulges in some retail therapy and travels for leisure.)

But those who know Olive aren’t at all surprised. This always-stylish lady chief executive of the oldest distillery in the country is described as a “workaholic.” She’s regularly out on the field, touching base with dealers and distributors, and, lately, farmers who supply fruits for her newest concoction, the Manille Liqueur de Dalandan. Dang, she now sells soap, too! (Short story, the leftovers from processing calamansi and dalandan to make DL’s liqueurs, such as the seeds and rinds, are now used to make handcrafted natural soaps.)

And she’s also constantly abroad, marketing the company’s various products in the US, China and other parts of Asia.

But I suppose that being always on her toes is what it takes for Olive to succeed in this male-dominated world of liquors and spirits. After a long line of male master blenders at DL starting from its founder Lim Tua Co, a merchant and immigrant from Amoy, China, who first brought Sioktong to the Philippines, Olive is the fifth and first female master blender in the family-held corporation. (Her father Julius is the greatgrandnephew of Lim, who later Christianized his name to Bonifacio Limtuaco.)

“As a master blender, we decide on the blend of each product we introduce to the market. I learned from my father and I also learned from international experts in distilled spirits. I also trained abroad to further my master blending and distilling skills,” explains Olive, who is the fifth among seven daughters of Julius and wife Lily.

“I would watch my father working with his blends in the laboratory with great interest.

I learned some parts of it by observation, particularly the process of experimentation and arriving at the final blend of a product,” she adds, talking about her training in the company. Like most Filipino-Chinese families, she and her sisters spent their summer breaks at their father’s office and factory working and playing. “I had the chance to work in the factory, too, which was to make us understand the value of hard work, and that it wasn’t easy to make money.”

Her father eventually passed on the management of the company in 2004, making her president, then the chairman in 2012. “As far as I can remember, I had been conditioned by my parents to eventually run the company.

So I tried my best to learn the ropes of the

OLIVIA LIMPE-AW (left), president and CEO of Destileria Limtuaco & Co. Inc., with Chef Margarita Fores, brand ambassador for Manille Liqueur de Dalandan

business to prepare myself for this responsibility. By the time I took over, I had enough solid experience to fit into the shoes of the president. But, of course, I was lucky that my parents were always there to support me and give guidance whenever I needed it.”

The best part of her job, Olive enthuses, is the “creative process of conceptualizing new products and marketing campaigns that raise the bar of Philippine distilled spirits and allow us to grow our business nationally and internationally. In so doing, we’re also building a name for Philippine wines and spirits in foreign markets, which make us proud as a country and as a people.”

The Manille Liqueur de Dalandan will likely join the company’s long list of liquors and alcoholic beverages making waves among

overseas Filipinos and foreigners alike. It was launched just last Tuesday at Grace Park, Chef Margarita “Gaita” Fores’s much-loved farm-to-table concept restaurant.

Chef Gaita whipped up inspired dishes using the liqueur and the dalandan fruit itself.

My favorites were the Roast Bacolod-Style Lechon Stuffed with Manille Dalandan and Dalandan Leaves; the Di Martino Mezzi Rigatoni with Dalandan Rinds and Fresh Mint in a Light Cream Sauce; and a luscious dalandan rhum cake.

Of course, while enjoying these splendid dishes, I was downing shots of the Dalandan liqueur on the rocks, and had a glass of mixologist Enzo Lim’s refreshing Sinturis Smash, which was a mix of the Dalandan liqueur, muddled lemon and

mint leaves, with a splash of gin.

“Manille Liqueur de Dalandan is the only liquor in the world that utilizes the essential oils of the fruit and captures the sweet zesty profile of dalandan,” says Olive with much pride. She points out that the company’s Philippine Craft Spirits line was formed out of the need to create something uniquely local. “I saw the limited use of the crops we have here…. I wanted to show everyone that with proper research, the right materials and, most important, drive and passion, we can find a way to be advocates of our own Philippine produce.”

This ties in perfectly with Chef Gaita’s advocacy of supporting local farmers and championing our home-grown produce and products in foreign markets. “I’ve had the honor in recent years to be able to present Filipino cuisine and products abroad, and being able to showcase the best in our country has always made me proud,” the chef and brand ambassador for Manille Dalandan adds.

Olive says it was Chef Gaita who actually “suggested we try dalandan as the next flavor for Manille. She has a great reputation in the culinary scene, and is known as an innovative and passionate chef.”

DL also does its part in supporting local farmers by paying them the market price of the dalandan. By cutting out the traders, the farmers get 100 percent of the profits from dealing directly with the company. “It’s part of our CSR [corporate social responsibility] program. This way, we are able to help the dalandan farmers increase their margins a great deal,” Olive says.

The company gets its dalandan from Tiaong, Quezon and also from a farmers group in Socorro, Oriental Mindoro, where they also get their calamansi.

In contrast with her father who only had daughters, Olive has three sons with her husband Benny Aw, who handles DL’s international sales. Their eldest, Clifford, handles sales and is also the family “mixologist”; Aaron leads the marketing team; while the youngest, Brandon, is dubbed the “resident DJ”.

Her sons have already come up with their own margarita mix and tequila line, ensuring that Destileria Limtuaco will continue to remain in the family and keep its long tradition of producing quality liquors and spirits for more generations to come.

DON’T TRY THIS AT HOME B S  M Philadelphia Daily News

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HAT do Kim Kardashian, Paris Hilton, Rob Lowe, Tommy Lee, R. Kelly and Pamela Anderson— twice—have in common?

They all made private sex tapes that later became public.

This brings us to Sex Tape, the romantic comedy starring Cameron Diaz and Jason Segel that hit theaters not too long ago.

Diaz and Segel play a married couple who make a sex video based on every position in The Joy of Sex. They upload it to the Cloud, then are horrified to learn it was sent to a handful of other iPads.

We dispatched romance columnists Steve and Mia to review the movie.

Steve: I’m always in favor of trying new stuff to bank the fires of a long-term romance.

But replicating every position in The Joy of Sex? Remember our review of the updated edition just a few years ago?

Mia: Yes, I do. It was exhausting just looking at the pictures.

Steve: I’ll say. With some of those positions, it should’ve been called “The Agony of Sex”. There was one that involved a phone book.

Mia: Where would you even find a phone book today?

Steve: Craigslist?

Mia: Sex Tape does make you think about the impact that long-term marriage can have on a couple’s sex life.

Steve: Especially if you’re a working couple with kids. Hell, you have to make a sex appointment two months in advance.

Mia: So, what are you supposed to do when you hit a sexual dry spell? I can see why Jay and Annie (Segel and Diaz) decided to make a sex video. What’s hotter than seeing yourself and your lover going at it? Steve, have you seen

yourself in action?

Steve: God, no! Seeing me having sex would turn anyone off sex forever, including myself. Seeing Diaz have sex, on the other hand, puts the Joy in The Joy of Sex. Mia: Yeah, well I saw more of Diaz’s butt crack during that movie than I ever thought I’d see.

Steve: We should tell our readers that the movie is really more of a chase movie than a sex movie, although you do get to see Cameron in bikini panties and roller skates.

Mia: And Jason in jockeys.

Steve: Back in 2005 we reviewed In Her Shoes, another romcom starring Diaz. We loved it, but she was a hot 32-year-old woman then. Now she’s um, more “mature”. Do you think she’s lost some sex appeal?

Mia: Not a bit! She’s still smoking.

Steve: There seemed to be a range of horror on how much embarrassment the couple would suffer, depending on who viewed the tape. What would be your worst case? If your mom saw it?

Mia: The worst thing isn’t if anyone saw it.

What would hurt me more is if my butt looked ginormous or if I had bacne or something else ratchet going on.

Steve: Good point. It’s not who sees it, it’s what it looks like.

Mia: Trust me. There are certain angles you might not want to see your naked backside from.

Steve: In my case, that would be any angle.

I guess for couples crazy enough to do it on camera, though, we should offer some advice.

What do you think?

Mia: Before you pull out the camera, there should be ground rules. I recommend making only one copy of yourselves in action. If you’re tech-challenged, don’t even think of uploading it anywhere. Instead, get an old-style video recorder that uses an actual tape that you can destroy yourself.

Steve: Yeah, you can buy those online. In fact, you can probably buy lost sex tapes online.

Mia: The couple should decide ahead of time who gets possession of the tape. Better yet, watch it a few times and destroy the evidence. Relationships can be dicey, and the last thing you want is to end up on a revengeporn web site.

Steve: Revenge-porn web sites? Such things exist? You’ve given me a homework assignment.

Mia: You might want to leave your faces out of it and just show your bodies. Also, think about wearing a wig in a different hair color for a change of pace. Or maybe a Mardi Gras mask to conceal your identity. And don’t forget lighting. You don’t want it to be too dark while you’re filming.

Steve: Hmmm. I’m looking at you differently. On your next shoot, let me know if you need a gaffer.

Mia: All I’m saying is, if you’re going to do it, do it right. Make sure your room is clean. You want nice sheets on the bed. You don’t want an ironing board set up in the background—unless you’re doing a sexy laundress scenario.

Steve: Scenario?

Mia: Yeah, you need to set the scene.

Have some sort of plot lines so you know which way you’re going. In the movie, the couple made their way through The Joy of Sex. I suggest a pizza delivery-man theme.

You know, ladies, have your guy ring the door bell and walk into the house carrying an empty pizza box.

Steve: I’d rather have a guy ring my doorbell and walk into my house carrying Cameron Diaz. n Steve is a fifty-something married man who’s been around the block. Mia is a younger, recently married woman with an all-together different attitude. They may not agree, but they have plenty of answers.

MAKING MOMENTS EVEN MORE SPECIAL

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ITH the holiday season mere weeks away, now is the best time to plan that Christmas party, be it for one’s family at work or at home. City Garden Hotel Makati ((www.citygardenhotel-makati.com) offers a wide array of packages for just about every occasion and corporate event.

With its continuing value proposition, the value hotel has come up with reasonable packages for celebrations like weddings, debuts, birthdays, baptisms and, of course, Christmas. Packages for corporate events, like meetings, conferences, planning sessions and seminar-workshops, are also available.

Kids and adults alike can have fun with a competitively priced children’s party package, ideal for parents who not only are budget-

The World

U.S. TO RUSSIA: DON’T FAN FLAMES OF SYRIAN WAR

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ASHINGTON—US Defense Secretary Ash Carter said on Thursday that he would talk to his Russian counterpart again about Moscow’s military intentions in Syria, but cautioned that if the Russians insist on fighting the Islamic State (IS) without simultaneously pursuing a political solution to Syria’s civil war they will be “pouring gasoline” on the conflict.

In comments at the Pentagon, Carter said the Obama administration is concerned that Russia could use the warplanes and other military force it has recently assembled in Syria to attack the IS or the moderate Syrian rebels who are fighting against the government of President Bashar al-Assad.

Carter declined to say whether he believes the Russian buildup is intended to undertake air strikes or other offensive military action.

“We’re going to be talking to them about their intentions both on the political track and the military track,” Carter said.

He spoke to Russian Defense Minister Sergei Shoigu on Friday, and afterward Pentagon officials said it remained unclear how the Russians intend to use their military in Syria.

“To pursue the defeat of ISIL [Islamic State of Iraq and the Levant] without at the same time pursuing a political transition is to fuel the very kind of extremism that underlies ISIL, and if that’s the Russian view that’s a logical contradiction,” Carter told reporters.

“And the way out of that contradiction is to pursue both of those in parallel. And on that basis I think we’re prepared to discuss a way ahead with Russia, where the political and the military move in parallel.”

To do otherwise, Carter said, is to “pour gasoline on the ISIL phenomenon rather than to lead to the defeat of ISIL.” At another point he likened a militaryonly Russian approach to “pouring gasoline on the civil war in Syria.”

Russia has been building up its military presence at an air base in Syria, including fighter jets, tanks, helicopters, air-defense missiles, personnel and other equipment.

Russia is a traditional ally of Syria

briefs

U.S., AUSTRALIA WARN OF POSSIBLE TERROR ATTACK IN MALAYSIA KUALA LUMPUR, Malaysia—The US and Australian embassies in Malaysia have warned of a potential terrorist attack at a popular hawker street in Kuala Lumpur.

The US Embassy issued an advisory on Thursday saying it has credible threat information and urged its citizens to avoid Alor Street, located in a shopping belt in the city center, and its immediate surrounding areas. It said that terrorist organizations had in the past planned attacks to coincide with significant dates, but gave no details.

The Australian Embassy issued a similar alert to its citizens based on the US threat warning. AP

SOLDIERS LEAVE CAPITAL, BURKINA FASO RETURNS TO CALM OUAGADOUGOU, Burkina Faso—People lined up at gas stations and money machines in Burkina Faso’s capital on Thursday, as life began returning to normal after a weeklong coup.

Interim President Michel Kafando and interim Prime Minister Yacouba Isaac Zida were reinstalled on Wednesday, and government soldiers who had remained loyal to the government withdrew overnight. Members of the presidential guard that staged the coup were confined to their barracks.

People in Ouagadougou went out early on Thursday to buy sheep at the market for slaughter in celebration of Eid al-Adha, known here as Tabaski, one of Islam’s most important holidays. AP

and has supported Assad, who has clung to power despite a US-led international effort to force him to step down.

In an interview taped with CBS’s 60 Minutes for broadcast on Sunday, Russian President Vladimir Putin was asked if his country was “trying to save the Assad administration.”

Putin responded, “Well, you’re right.” He said any effort to destroy Assad’s government “will create a situation which you can witness now in the other countries of the region,...where all the state institutions are disintegrated.”

The Russian leader added, “There is no other solution to the Syrian crisis than strengthening the effective government structures and rendering them help in fighting terrorism.”

Carter spoke at a Pentagon news conference alongside Ukraine’s Minister of Defense ColonelGeneral Stepan Poltorak. Carter said that even if the US and Russia share the desire to oust IS from Syria, that does not take away from America’s support for Ukraine and its condemnation of Russia’s military actions there and its annexation of the Crimea region of Ukraine.

Asked whether he could trust what the Russians tell him about their intentions in Syria, Carter said that in earlier days, “the answer to that question was ‘trust but verify’ and that always seems reasonable. It’s not a matter of trust. It’s a matter of seeing what the Russians do.”

State Department Spokesman John Kirby said on Thursday that the US was concerned about Russia supplying Syria with fighter aircraft and surface-to-air missiles to fight the IS, which doesn’t have an air force.

“I think there are legitimate questions that we continue to have about the kinds of capabilities we see flowing in there,” Kirby said. “Secretary Kerry will continue to have the conversations he needs to have on the diplomatic side to try to get better clarity and better understanding.”

Russia has begun flying drone surveillance flights over Syria, gathering intelligence in preparation for what most expect will be the launch of fighter aircraft in the coming days, according to US officials. AP

conscious but also appreciate being freed of the hassles of organizing the event. For corporate packages, a whole-day, eight-hour session in any of the hotel’s function rooms can be availed at compelling packages that include plated lunch and two snacks, with an upgrade option for a buffet setup. And with Christmas just around the corner and venues fast running out, book a Christmas get-together at City Garden Makati early at equally enticing price points.

Whatever the occasion, ensure a fun-filled and memorable celebration, as well as successful meetings with City Garden Makati’s events packages, which include the choice of function room, poolside at the roof deck, or Le Jardin restaurant for the venue.

LIFE

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BusinessMirror

OFFICIALS with the King County Medical Examiner’s Office and the Seattle Fire Department remove a body from the scene of a bus crash involving a Ride the Ducks tour bus and several other vehicles on Thursday in Seattle. AP/TED S. WARREN

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EATTLE—A fun day designed to introduce new international college students to Seattle turned into a nightmare when a “duck boat” tour vehicle collided into their charter bus on a busy bridge, killing four students and injuring dozens. tion, two Philadelphia friends on a road trip across the country, Brad Volm and Bradley Sawhill, were cruising over picturesque Lake Union when they said they saw the duck boat’s left tire “lock up” as it swerved into the charter bus, t-boning it. Their SUV hit another truck head-on, but they escaped injuries.

“It all happened so fast. I got out of my car, and there were just bodies,

just everywhere. People lying in the street,” Volm said.

The amphibious vehicle is operated by a tour company called Ride the Ducks, which offers tours known for exuberant drivers and guides who play loud music and quack through speakers as they lead tourists around the city.

The collision on the Aurora Bridge, which carries one of the city’s main north-south highways over the lake, left a tangled mess of twisted metal, shattered glass and blood, witnesses said.

Authorities say 51 people were taken to area hospitals.

Susan Gregg, a spokesman for Harborview and the University of Washington medical centers, released a statement on Thursday night that gave the conditions of some of them. At Harborview Medical Center, two people are in critical condition and 10 are in serious condition in intensive care, Gregg said.

Three other people are in satisfactory condition, she said.

At the University of Washington

Medical Center, two people are in intensive care, Gregg said. Three people are being treated at the Northwest Hospital and Medical Center, she said.

A stretch of highway was closed for hours as traffic investigators looked into what happened. The National Transportation Safety Board sent a team of 17 people to Seattle, and Mayor Ed Murray said they were taking over the investigation.

There was no immediate word about the cause of the crash, which involved a military-style tour bus that can also be operated on water.

Initial reports described the accident as a head-on collision.

Three dozen people were onboard the duck boat, as well as the driver, who is certified by the Coast Guard and a licensed commercial driver, company President Brian Tracey said. He said he did not know what happened or caused the crash.

“We will get to the bottom of it,” he told the Associated Press. “Our main concern right now is with the families of those hurt and killed.” AP

RADICAL PARTY LIKELY KINGMAKER IN SPAIN’S CATALONIA SECESSION

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ARCELONA, Spain—A radical left party has made a startling journey from colorful oddity to potential kingmaker in Catalonia’s independence drive.

The Popular Unity Candidacy, or CUP from its Spanish name, joins a line of far-left movements seizing the political momentum in Europe, from Greece’s ruling Syriza party and Spain’s own far-left Podemos movement to the shock emergence last week of hard-core socialist Jeremy Corbyn as leader of Britain’s Labour Party.

As in the other cases, painful austerity policies have given wings to the CUP—and it finds itself possibly holding the key to the aspirations of Catalan separatists determined to sever centuries-old ties with Spain.

Catalans vote on Sunday in regional parliamentary elections that the breakaway camp hopes will give them a mandate to put their region on a path toward independence—a goal the Madrid central government says would be illegal.

Polls show the race is tight and that the large “Together for Yes” block formed by pro-independence parties from the rest of political spectrum will need support from the smaller CUP to secure a 68-seat majority in Catalonia’s 135-seat parliament.

And without the majority, secessionists concede, the effort to break away from Spain will be set back for years. That gives CUP potentially strong leverage to dictate the terms of its support, and impose

some of its hard-left agenda on business-friendly Catalonia.

CUP is present only in northeastern Catalonia and is led by the outspoken David Fernandez, who sports T-shirts with radical slogans (from his wardrobe of more than 200), while debating in the ornate chambers of Catalonia’s Parliament.

Under the 41-year-old Fernandez, the party has succeeded regionally in tapping into the same anger at Europe’s austerity measures that has vitalized far-left European parties like Syriza in Greece that eat into traditional support for social democrats. Polls show CUP is set to win as many as 10 parliamentary seats, up from the three it currently holds.

Catalans, he said in an interview with the Associated Press, need to claim their sovereignty as a nation from a Spanish state he insists has little respect for Catalonia and is an enthusiastic participant in a global capitalist economy he labels as “a war machine that robs, kills and lies.”

Movements that inspire Fernandez include Syriza, Ireland’s Sinn Fein, Spain’s Basque Country separatists and the Zapata Army of National Liberation active in Mexico’s Chiapas region in the 1990s.

But he said CUP owes most of its identity to Catalonia’s own history of workers and leftist movements, including 1930s radicals from predictatorship Catalonia—when anarchists, communists and militant workers unions were among those who fought a losing 1936-1939 war against

Sought for a comment, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said that, while the rise in realestate supply and demand has been notable, it remains to be “manageable, and the risks that come with it remain muted.”

This was in reaction to a special section in Fitch Ratings’s overall assessment of developments in the country, which explains the recent

IN this September 20 photo, the leader of radical left party CUP David Fernandez (right) raises his arm next to other members of his party during a campaign meeting in Barcelona, Spain. Catalans, Fernandez said, need to claim their sovereignty as a nation from a Spanish state he insists has little respect for Catalonia and is an enthusiastic participant in a global capitalist economy he labels as “a war machine that robs, kills and lies.” AP/EMILIO MORENATTI

Francisco Franco’s fascist forces.

After earning a reputation as a gifted debater in parliament, Fernandez and CUP’s radical rhetoric have struck a note with pro-independence Catalans who are angry about the languishing economy and firm in their belief that Catalonia does not get back what it pays in taxes to Madrid.

Fernandez has consistently polled as Catalonia’s “highest rated” politician in regional government surveys since he joined the chamber in 2012. But the central government

in Madrid cites his radical views as one of many reasons voters should choose anti-independence regional lawmakers.

He brushed off claims that Catalonia would have a rough ride trying to turn itself into a nation and described Spain as a failed state.

“We are already having a rough time right now,” he said. “We have to recover the public sector, we have to scare the free market out of our pensions, education, health care and culture, and let the cooperative social sector come in and combat the casi-

no economy of capitalism and financial speculation.”

Analysts say the economic hardship is the main reason CUP and other radical parties around Europe have gained power. In Spain crushing austerity measures, a 22-percent unemployment rate and prominent corruption cases involving politicians from Catalonia and across Spain “has been the perfect storm, and the crisis has really helped” CUP, said Antonio Barroso, a London-based analyst at the Teneo Intelligence political risk consultancy. AP

THE WORLD

VW mess induces China’s push for electric vehicles

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news@businessmirror.com.ph

‘Duck boat’ tour of Seattle turns into nightmare; 4 killed

Rujia Xie and other North Seattle College students were on their way to the city’s iconic Pike Place Market and Safeco Field for new student orientation events on Thursday when she heard the crash from the back of the bus.

She smelled gas and felt glass falling on her face. She and others jumped from the bus.

Traveling in the opposite direc-

YELLEN EXPECTS RATE ADJUSTMENT THIS YEAR

C  A

TOUR TURNS INTO TRAGEDY B2-4 Saturday, September 26, 2015

B B C

B24

HINA will forge ahead promoting electric vehicles as part of its energy policy to reduce dependence on fossil fuels, as regulators increase scrutiny of diesels following Volkswagen AG’s admission to cheating emissions rules.

“The Chinese government has been paying attention to air-pollution prevention, given that it affects China’s development and economic structural adjustments,” Zheng Shanjie, vice administrator of China’s National Energy Administration, told reporters on Friday in Beijing, in response to a question about Volkswagen and diesels. “China is now vigorously promoting development

Volkswagen deception Volkswagen admitted that it intentionally installed software programmed to switch engines to a cleaner mode during official emissions testing. The software then switches off again, enabling cars to drive more powerfully on the road while emitting as much as 40 times the legal pollution limit.

Volkswagen AG stock

Affected diesel models

VW’s share price was down 16.8 percent today at 111.2 euros and near a four-year low. The company has lost almost 25 billion euros two days.

The allegations cover roughly 11 million worldwide and around 482,000 diesel passenger cars sold in the United States since 2008

200 In euros

• Jetta (model years 2009 – 2015)

150

• Beetle (model years 2009 – 2015)

111.2 100

8/24

9/22

• Audi A3 (model years 2009 – 2015) • Golf (model years 2009 – 2015) • Passat (model years 2014-2015)

Source: EPA, Frankfurt Stock Exchange, Volkswagen, AP

Graphic: Staff, TNS

of electric vehicles, which is part of our measures on comprehensively addressing the issue.”

FEDERAL Reserve Chairman Janet L. Yellen smiles as she takes her seat at a news conference in Washington on Thursday.

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EDERAL Reserve (the Fed) Chairman Janet L. Yellen said she expected the central bank to raise a key interest rate this year, “unless the economy surprises us.”

Speaking publicly for the first time since the Fed opted to hold the rate steady last week, Yellen said “considerable uncertainties” surround the US economic outlook.

Global financial markets have been tumultuous in recent weeks, after China devalued its currency last month, a sign its economy might be slowing.

She said there was a “risk that a slowdown in foreign growth

might restrain US economic activity somewhat further.” But Yellen emphasized she and other members of the policy-making Federal Open Market Committee (FOMC) didn’t expect that to derail the first rate hike in nearly a decade.

“The committee is monitoring developments abroad, but we do not currently anticipate that the effects of these recent developments on the US economy will prove to be large enough to have a significant effect on the path for policy,” Yellen said in a speech at the University of Massachusetts in Amherst.

The lengthy address looked the

AP/JACQUELYN MARTIN

effects of inflation on monetary policy in the past, and how price expectations play into the Fed’s decision-making now as they consider lifting the federal funds rate from the near-zero level it has been since late 2008.

Strong job growth in recent years has pushed the US near full employment, with the unemployment rate down to 5.1 percent in August. But inflation has remained well below the Fed’s annual 2-percent target.

Yellen said sharply lower oil prices and the rising value of the dollar have kept inflation down recently.

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S “VW,” A

Apec advances MSME growth through ‘Iloilo Initiative’ I LOILO CITY—Micro, small and medium enterprises (MSMEs) in the region got a major boost, after the business sector and ministers of the 21-member Asia-Pacific Economic Cooperation (Apec) considered the adoption of the so-called Iloilo Initiative that advances the interest of MSMEs in global trade and investments.

On the last day of the Small and Medium Enterprises Ministerial Meeting here on Friday, the Apec Business Advisory Council (Abac) prioritized the inclusion of e-commerce to accelerate the access of MSMEs to international markets by promoting innovation and participation in the global value chain, as well as by ensuring better financing and affordable credit for the sector.

Trade Secretary Gregory L. Domingo said the

PESO EXCHANGE RATES n US 46.7380

MSMEs play a vital role in the realization of a prosperous Asia-Pacific region, as they comprise the great majority of businesses. An important component is to bolster the ability to take advantage of cross-border business opportunities that will help boost economies in the process.

MSMEs account for over 97 percent of all enterprises and employ over half of the work force across Apec economies.

MSMEs also contribute significantly to economic growth, with their share in the gross domestic product ranging from 20 percent to 50 percent in the majority of Apec economies.

However, they account for only about 35 percent of direct exports. Director Jerry T. Clavesillas of the Department of Trade and Industry (DTI)

Bureau of Small and Medium Enterprise Development said the Philippines has over 1 million DTI-registered MSMEs. Western Visayas alone has over 16,000 registered MSMEs. The Abac, chaired by Doris Magsaysay-Ho, underscored the need to leverage the growing Internet usage, burgeoning middle class, and the increasing accessibility and affordability of technology to enable MSMEs to enter the global market. E-commerce has also evolved into a regular marketplace option for many buyers.

An important measure that is relevant to the innovation agenda is that of strengthening the digital infrastructure and leveraging the digital economy to accelerate MSMEs’ participation in the global value chain, the Abac chairman added. PNA

n JAPAN 0.3887 n UK 71.2568 n HK 6.0310 n CHINA 7.3212 n SINGAPORE 32.7802 n AUSTRALIA 32.7871 n EU 52.2624 n SAUDI ARABIA 12.4628 Source: BSP (24 September 2015)

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Saturday, September 26, 2015 • Editor: Dionisio L. Pelayo

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Conflicts, guns, misery foster PHL kidnappings

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ANILA, Philippines—The recent abductions of three Westerners and a Filipino woman from a southern Philippine resort are the latest reminder of the long-running security problems that have hounded a region with bountiful resources and promises, but hamstrung by stark poverty and an array of insurgents and outlaws.

While authorities have not identified the abductors with certainty, there is one usual suspect: the Abu Sayyaf group (ASG), a brutal alQaeda-linked organization that has pulled off mass kidnappings for ransom in the last 15 years in the south and in neighboring Malaysia.

“The primary suspect is ASG,” Regional Military Commander Lt. Gen. Aurelio Baladad told reporters on Thursday. He added, however, that there have been no conc lu sive f i nd i ng s on t he kidnappers’ identities.

Under cover of darkness, at least 11 men armed with two rifles and pistols barged into the Holiday

Ocean View Samal Resort on southern Samal Island shortly before midnight on Sunday and then headed toward yachts docked at a marina, according to the military and police.

In less than 20 minutes, the kidnappers herded at gunpoint Canadians John Ridsdel and Robert Hall, Norwegian Kjartan Sekkingstad, the resort’s marina manager and Filipino Teresita Flor, to two motor boats.

An American and his Japanese female companion fought back and were injured, but escaped by jumping off their yacht, said Senior Superintendent Samuel Gadingan, the police chief of Davao del Norte

province, where Samal is located, about 1,000 kilometers southeast of the capital, Manila.

Aside from the Abu Sayyaf, investigators have considered the possible involvement of a small extortion gang of former Muslim rebels. Communist guerrillas have an active presence in the vast Davao region but they have in the past publicly declared their abductions, mostly of government troops, within days of seizing them, making them the unlikely suspects, according to Gadingan. It remains uncertain which group is behind the latest abduction, but the conditions that foster such crimes are much clearer: a volatile mix of poverty, weak law enforcement and access to thousands of unlicensed firearms in the south, said Julkipli Wadi, dean of the Institute for Islamic Studies at the state-run University of the Philippines.

It’s very likely too that those deep-seated social ills would not be solved anytime soon and kidnappings will continue, he said.

“These are generational problems that are difficult to be solved by presidents who are restricted to six-year terms and often lack political will,” Wadi said.

Steven Rood, an American whose nongovernmental group helps foster peace talks with Muslim rebels, said it’s crucial for the government

to dismantle armed groups maintained by powerful families that abound in the south. That, he said, would motivate a larger Muslim rebel group that recently signed an autonomy deal with the government to relinquish their weapons and broaden the prospects of peace in the south.

Kidnappings for ransom have preceded the Abu Sayyaf. But the group started an alarming trend of large-scale abductions after it emerged in the early 2000 as an offshoot of the decades-long separatist rebellion by minority Muslims in the predominantly Roman Catholic nation’s south.

The Abu Sayyaf abducted 21 people, mostly European tourists, from a Malaysian diving resort in 2000, freeing them later, reportedly in exchange for huge ransoms.

The militants took three Americans and 17 Filipinos the following year from the Dos Palmas resort in Palawan province southwest of Manila, then staged a failed kidnapping attempt at a popular resort on Samal Island, near where Sunday’s abductions occurred.

Without any known foreign financial support and after more than a decade of battle setbacks inflicted by US-backed Philippine military offensives, the Abu Sayyaf has survived mostly through kid-

SC junks smuggling raps vs oil firm T

he Supreme Court (SC) has ruled that former Justice Acting Secretary Agnes Devanadera correctly held that there was no probable cause to indict Unioil Petroleum Philippines Inc. and its officers for smuggling of oil products from Oilink International Inc.’s depot in 2008.

In a 32-page ruling dated September 8, the SC en banc affirmed the resolution dated December 28, 2009 of Devanadera which upheld the State Prosecutor’s dismissal of the complaint-affidavit filed by the Bureau of Customs (BOC).

“Wherefore, the petition is partly granted. The Court of Appeals resolutions dated March 26, 2010 and August 4, 2010…are reversed and set aside,” the SC ruling said.

With respect to the directors and officers of Oilink, the SC said that “they may further be held liable jointly and severally for all damages suffered by the government on account of such violation of Sections 3602 and 3611 of the Tariff and Customs Code of the Philippines [TCCP], upon clear and convincing proof that they willfully and knowingly voted for or assented to patently unlawful acts of the corporation or was guilty of gross negligence or bad faith in directing its corporate affairs.”

“This is without prejudice to the filing of the appropriate criminal and administrative charges under Sections 3602 and 3611 of the Tariff and Customs Code of the Philippines, as amended, against private respondents Oilink, its officers and directors, and Victor D. Piamonte, if the final results of the post-entry audit and examination would show that they violated the said provisions,” the SC said.

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Ortegas to de Lima: murder charges should stick against Reyes brothers

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Burdang Lumban fest

Philippine Charity Sweepstakes Office Vice Chairman and General Manager lawyer Jose Ferdinand Rojas II (second from right) receives a plaque of appreciation from Mayor Renato Anonuevo (second from left) of Lumban, Laguna, during the 2015 Burdang Lumban Festival and 437th anniversary of the town’s founding held at the town plaza on September 22. Also in photo are Laguna Vice Governor Karen Agapay (left) and Lumban Vice Mayor Rolando Ubatay. Rojas was a guest speaker at the said event. JOSEPH MUEGO

It will be recalled that the BOC filed the smuggling complaint before the Department of Justice (DOJ) in December 2008 accusing Unioil for its alleged illegal withdrawal of P181.99-million worth of oil products it consigned with the Oilink’s facility in Bataan province.

In its ruling, the SC said that since the allegations in the BOC’s complaint-affidavit fell short of the acts or omissions constituting the violations of the customs code, then-DOJ chief Devanadera correctly ruled that there was no

probable cause to believe that they committed such crimes. “A careful reading of the BOC’s complaintaffidavit would show that there is no allegation to the effect that private respondents committed undervaluation, misdeclaration in weight, measurement or quantity of more than 30 percent between the value, weight, measurement, or quantity declared in the entry, and the actual value, weight, quantity, or measurement which constitute prima facie evidence of fraud,” the SC ruling said.

“Nor is there an allegation that they intentionally committed undervaluation, misdescription, misclassification or misdeclaration in the import entry,” the SC said.

While Devanadera correctly stated that the act of fraudulent importation of articles must be first proven in order to be charged for violation of Section 3601 of the TCCP, the SC disagreed that “proof of such importation is also required for various fraudulent practices against customs revenue under Section 3602.” PNA

Testing equipment now a requirement to qualify to bid for DPWH projects he Department of Public Works and Highways (DPWH) is requiring contractors to have their own required minimum materials testing equipment to qualify in the bidding of government projects.

In Department Order 138 dated September 2, Public Works Secretary Rogelio Singson directed implementing offices to compel contractors to comply with the prescribed minimum testing equipment and to utilize their own laboratory testing equipment/facilities before engaging the services of private testing laboratories for effective and better quality

nappings and extortion. In recent years they have grown more daring by crossing the sea border to snatch victims in Malaysia’s Sabah state.

The US military’s antiterrorism task force in the southern Philippines was deactivated in February after 13 years, as Washington recently shifted focus to supporting freedom of navigation in the South China Sea. US forces continue to provide intelligence and training to Filipino troops in the south.

The rewards for Abu Sayyaf kidnappers have been relatively huge.

Aside from the money, kidnap victims have been used as human shields to preempt government offensives. High-profile abductions also have allowed the militants to capture the attention of foreign terrorist networks, a confidential government security assessment report said. Last year the militants were estimated to have pocketed more than P277 million in ransom from the kidnappings of 59 people, said the report, a copy of which was obtained by the Associated Press.

“Kidnapping has indeed become a lucrative industry in Mindanao,” the report said, referring to the southern region. It added, without elaborating, that unidentified corrupt politicians and even law enforcers have benefited from the crime. AP

control of construction materials.

“Contractors have to prove that they are capable of conducting their own quality control of construction materials before they can be allowed to participate in bidding, much more implement public works projects,” he said in a news statement.

The DPWH chief noted that the requirement would ensure the incorporation of the right quality of materials in civil works project issued 25 years ago is more than enough time for contractors to procure contractors’ testing equipment.

On April 3, 1990 Department Order 80 was issued ordering the inclusion of the

minimum materials testing equipment in the prequalification of contractors’ capability to undertake government projects.

An extended time was given to contractors to procure and Department Order 8, Series of 1996, was issued allowing them to avail themselves of the services of the DPWH testing laboratories or any private testing laboratories accredited by the department in testing of construction materials, provided the testing is witnessed by authorized representatives of the concerned implementing office.

Singson explained that DPWH testing laboratories and accredited private testing

laboratories examine, test, calibrate or, otherwise, determine the characteristics or performance of materials or product.

The test report, a document which presents the test results and other information relevant to the test/s conducted on the materials, will undergo evaluation of DPWH implementing office as to acceptability of the materials tested.

A Star Rating System for testing laboratories of the regional and district offices were adopted in 2013 to enhance the materials testing capability of the DPWH implementing offices and improve quality control in project implementation. PNA

By Joel R. San Juan

AYING that their quest for justice does not end with the arrest of former Palawan Gov. Joel Reyes and his brother former Coron town Mayor Mario Reyes, the family of slain broadcast journalist Dr. Gerry Ortega on Friday pleaded to Justice Secretary Leila M. de Lima to resolve their petition for review seeking the reversal of the dismissal of the murder complaint filed against the brothers.

The Reyes brothers, who were arrested in Phuket, Thailand earlier this week, are being accused of masterminding the ambush-slay of Ortega in January 2011.

The two are now detained at the Philippine National Police-Criminal Investigation Division Group (PNPCIDG) headquarters in Camp Crame following their deportation to the country. The brothers were immediately handcuffed and brought to Camp Crame in Quezon City under heavy guard shortly after debarking from a Philippine Airlines Flight PR 733 that arrived at around 3:20 a.m. on Friday from Bangkok, Thailand.

Lawyer Alex Avisado, who is representing the Ortega family, said with the arrest of the Reyes brothers, de Lima should now resolve their petition for review with her office questioning the first resolution of prosecutors dismissing the murder charges against the Reyes brothers before she is expected down and run for a Senate slot next year. “We believe that the higher demands of substantial justice should compel the DOJ [Department of Justice] secretary to adopt a different position in order to avoid any suspicion that she could be protecting the Reyes brothers as the former counsel of Governor Joel Reyes,” the lawyer said in a news statement.

Avisado believes that upholding the indictment of the accused would dispel questions on impartiality of the DOJ chief on the case attributed to her being former election counsel of the former governor.

Avisado did not give credence to de Lima’s pronouncement that she cannot act on the petition for review because of the DOJ’s pending petition before the Supreme Court seeking the reversal of the Court of Appeals’ decision which nullifies the resolution issued by the DOJ second panel of prosecutors finding probable cause to charge the Reyes brothers with murder. With Recto Mercene and Rene Acosta

briefs

CDC, D.O.S.T. to deploy hybrid road train in Clark The Department of Science and Technology (DOST) has inked an agreement with the Clark Development Corp. (CDC) for the use of DOST’s Filipinomade “green” light-hybrid road train for workers in the Clark Freeport Zone.

The light-hybrid train is the smaller version of the hybrid-electric road train that was tested for road-worthiness last June inside the free port.

In a news statement, CDC said it has allotted P1 million for the performance and functional testing of the eco-friendly transport system, which may run for a year, and has signed a memorandum of agreement with DOST for the purpose.

The testing will involve plying and maneuvering the main thoroughfares of the free port before being introduced to the wider commuting public.

Currently the light train unit is under lease from the DOST. The bus-like, 160-capacity train, would ferry passengers for free in December as a service to the workers in the free port.

Dr. Rio S. Pagtalunan, division chief for analysis and testing, said the road network in Clark is of the standard that will enable them to test the maximum speed of the said train. Catherine Elizamarie N. Pillas

loyalists cite fm’s devt program for phl Marcos loyalist groups on Friday said that the socioeconomic development program of the late strongman former President Ferdinand Marcos is the only pro-Filipino in form and substance that fully embodies what Filipinism ideology is all about.

The groups lead by the Movement for National Salvation (MNS) head Bishop Nilo Tayag and Colonel Rey Cabauatan stated in a news statement early this week that the “enduring legacy [of ] President Ferdinand Marcos bequeathed to the Filipino people to this day is unrivaled and unequaled by the five presidents who succeeded him.” “[Marcos’s] massive infrastructure and socioeconomic development programs from 1965 to1986 as president sustained our top position as the No. 1 nation in Southeast Asia during his time, second only to Japan. This singular feat of has never been equaled by all the five presidents who succeeded him, starting from President Cory Aquino in 1986 to this day under the administration of her son Noynoy Aquino,’’ they said.

Bill raises teachers’ allowance by 2,000

A lawmaker has filed a bill granting public-school teachers an additional monthly allowance of P2,000 in a bid to motivate them to continue giving quality education to students in public schools.

Rep. Mercedes C. Cagas of the First District of Davao del Sur said the P2,000 additional monthly allowance provided under House Bill 6023 shall be without prejudice to any salary increase or adjustment that public-school teachers may be granted in the future.

Cagas said there is a need to provide an additional monthly allowance of P2,000 as a financial incentive for public-school teachers considering the work load they have, the amount of time and effort they spend and exert for the children, and the professionalism and knowledge they share and impart to uplift the country’s education.

“It is, but, fitting and proper to give our public-school teachers the financial incentive they truly deserve. This will motivate our publicschool teachers to continue giving quality education to our children in public schools,” Cagas said. The lawmaker added that the heart of the educational system lies with the school teachers, who educate the country’s future, the youth. PNA

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Neda and DTI embark on PHL investment push with US traders

By Cai U. Ordinario

W

ith the hope of increasing investments in the country, the National Economic and Development Authority (Neda) will be meeting with several executives of US-based firms in New York over the weekend.

Economic Planning Secretary Arsenio M. Balisacan recently told reporters that his meeting with the business community will be held on the sidelines of the United Nations General Assembly this weekend.

“I will be helping the DTI [Department of Trade and Industry] secretary in selling the country [and] I think they [US businessmen] are very much interested in talking with policy-makers,” Balisacan said.

Balisacan also said that he will be meeting the leaders of these US firms and discuss the country’s manufacturing industry, infrastructure and overall business environment, which could guide them in investing in the country.

These efforts would augur well with the Industry Roadmap crafted by the DTI and the Philippine Institute for Development Studies (PIDS).

Phase one of the road map, which will be implemented between 2014 and 2017, aims for a globally competitive industries in automotive, aerospace parts electronics, garments, food, resource-based industries, chemicals, furniture, tool and die, and shipbuilding.

Phase two of the road map, to be undertaken in 2018 until 2021, aims to drive the local manufacturing industry to produce high-tech transport equipment, chemicals and electrical machinery.

It is also envisioned that during this time, the government will create manufacturing hubs in regional and global production networks for auto, electronics, machinery, garments and food industries.

The last and third phase of the road map, between 2022 and 2025, aims to promote high value-added activities through upstream industries, such as chemicals, iron and steel, as well as med-tech basic and fabricated metal sectors.

“Structural change through [the] revival of manufacturing is essential for job creation, poverty reduction and sustained development,” Trade Assistant Secretary Rafaelita M. Aldaba said in a recent presentation.

The country has not been doing well in terms of both foreign and local investments in the first semester of 2015.

The data from the Philippine Statistics Authority showed that approved investment pledges of Filipino and foreign nationals contracted 48.9 percent in the Januaryto-June period.

The country’s total approved investments reached P186.44 billion in the January-to-June period in 2015, from P365.16 billion in the same period in 2014.

The country’s primary investment promotion agencies, the Board of Investments (BOI) and the Philippine Economic Zone Authority both suffered lower investment pledges in the first six months of the year.

Investments approved by the BOI, which accounted for 49.4 percent of the total, or 92.02 billion. It posted a decline of 38.4 percent from P149.45 billion in 2014.

Saturday, September 26, 2015

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Group to Customs: Divulge import cost of frequently smuggled goods

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By David Cagahastian

trade group is calling on the Bureau of Customs (BOC) to publish import prices of so-called frequently smuggled goods which, according to a study, cost the Philippines $25.8 billion in 2011 alone.

Fight Illicit Trade lead convenor Jesus Arranza, also the chairman of the Federation of Philippine Industries, said that publishing import prices of frequently smuggled goods will help ensure transparency and curb smuggling.

“One way of highlighting the menace of smuggling is for the customs bureau to publish the declared import prices of frequently smuggled goods. This is consistent with the BOC’s mandate under the

Tariff and Customs Code to prevent and suppress smuggling and other customs fraud,” Arranza said in a news statement released on Friday.

He added that with the publication of these import prices, concerned citizens may be able to help by alerting authorities should they come across suspected smuggled products.

Arranza cited findings by the Washington, D.C.-based watchdog Global Financial Integrity (GFI) which indicated that a fourth of

all goods imported into the Philippines were not reported to the BOC in 2011.

This translates to foregone revenues from duties and taxes amounting to some $25.8 billion.

The GFI’s analysis further revealed that from 1960 to 2011, $410.5 billion flowed through the Philippines as “illicit funds,” and out of this amount, $277.6 billion resulted from underreporting goods shipped into the Philippines.

INC to hold first-ever simultaneous worldwide evangelical mission today

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he Iglesia Ni Cristo (INC) will be holding a worldwide evangelical mission, to be officiated by INC Executive Minister Bro. Eduardo V. Manalo, which will be beamed live in various key cities all over the world today, September 26.

This historical event, dubbed as “Dakilang Pamamahayag” or Great Evangelical Mission, will be the firstever such global Bible exposition which will be conducted by the INC, with Bro. Eduardo officiating the “Pamamahayag” or Bible exposition, at the 55,000-seater Philippine Arena in Bocaue, Bulacan. This could be seen via live video feed in more than 2,000 sites all over the world INC Spokesman Minister Edwil Zabala said this is open to all non-INC members.

“We are inviting everybody to

Bazaar season

Christmas bazaars, like the one shown above, begin to sprout in various parts of Metro Manila with the coming of the Christmas shopping season. The merriest of all seasons promises brisk sales for shop owners and retailers. Alysa Salen

‘Narrow growth prevails in PHL economy’

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espite the economy’s recent success, the Philippines continues to suffer from narrow, shallow and hollow growth, according to a former socioeconomic planning secretary.

Cielito Habito, a professor of Economics at the Ateneo de Manila University, said this is the reason high inequality persists in the country.

“Richest 1 percent of Filipinos control 60-percent of GDP [gross domestic product],” Habito said. “[The] income of [the] richest 20 percent is 8.4 times that of [the] poorest 20 percent versus Thailand [6.9 percent]; Vietnam [6 percent]; and Sri Lanka [5.8 percent].”

Narrow growth, Habito explained, is the kind of growth that is driven by a few high-growth sectors, such as business-process outsourcing, finance and real estate.

Shallow growth, on the other hand, refers to growth where the bulk of exports come from low domestic valueadded sectors that have little or no linkage to the rest of the economy.

Habito said hollow growth refers to jobless growth. This happens when job generation remains low amid high or unprecedented economic success.

The economist said that the only way to resolve this is through the five pillars of inclusive growth—small enterprise development; competition policy; asset reform; sectoral drivers of inclusive growth; and human

HABITO

development through better health and high education.

While all these are important, Habito stressed that micro, small and medium enterprises (MSMEs) growth and development can already be the cornerstone of the next administration’s economic program.

Developing MSMEs include expanding their access to financing, as well as strengthening technology assistance through public research and development and shared services.

This also includes fostering the clustering of MSMEs and encouraging “coopetition” among them, as well as improving market access.

“Because of the need for economies of scale to be able to engage in the export markets, the inclusive value chain is being practiced by certain big businesses that deliberately choose to source their inputs from small producers,” Habito said.

“Therefore, you also have a good reason for small enterprises, the small producers to be strengthened symbiotically with large businesses,” he added.

Competition policy, on the other hand, has recently become a law in the Philippines, or the Philippine Competition Act (Republic Act 10667).

Under the new law, the government will create a Competition Commission to address and/or curb abuse of dominance; mergers and acquisitions; stateentry barriers; regulatory conflict of interest; and leveling the playing field among large enterprises and MSMEs. Asset reform, on the other hand, pertains to equal opportunities through legislation, such as the Comprehensive Agrarian Reform Program and the Fisheries Code.

Habito also said sector or industry inclusive growth drivers aim to benefit other industries in the economy through backward and forward linkages, as well as generate more employment. These industries are tourism and allied industries; agriculture and agribusiness; and manufacturing.

Further, human development, Habito said, includes educating existing entrepreneurs or those aspiring to own a business someday.

The government, Habito added, should change the mindset of graduates to not simply be an employee and earn a wage but create jobs and wealth.

Cai U. Ordinario

attend this special event. Listen to what we have to say, and in the end you will decide whether you would want to continue the Bible studies under the INC,” he said. But he clarified that no recording devices would be allowed inside the Philippine Arena and in the various buildings of worship selected as remote video link sites for the event.

The INC is continuing its intensive evangelical missions on its 101st year, as it tries to reach out to as many people as possible, for them to hear the message of salvation as written in the Bible. It has also intensified the construction of houses of worship under the administration of the present INC executive minister. More than 870 INC houses of worship worldwide has been built since 2011. More than 3,000 new ministers have also been ordained since 2011.

A4 Saturday, September 26, 2015

Opinion BusinessMirror

editorial

Is the system stopping job creation?

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he Philippines seems to be stuck on a treadmill—moving a lot but going no place fast—on the issue of our unemployment problem. While the government keeps pushing the fact that the country has one of the highest economic-growth rates in the world, we all know that there is a problem of this growth being inclusive to all parts of our society.

Unemployment in the Philippines is one of the worst in Southeast Asia and, combined with underemployment, the situation is absolutely dismal.

We have been hearing the same arguments as to why we have not been able to make a significant and sustainable move toward greater and higher quality employment for years if not decades. “Our education system is deficient.”

“There are not enough high paying manufacturing jobs.” “There are jobs available, but there is a mismatch between employee’s skills and the job requirements.” “There is not enough foreign investment to create more jobs.” “There is a misallocation of domestic capital for job creation.” “The government has continuously failed in its job creation polices.”

All of the above arguments may be true to a certain extent, but none can adequately explain why the Philippines is so far beyond similar nations in job creation. Perhaps, the answer lies someplace else and is more systemic and complex.

We have heard so many times how the Philippines is moving up the rankings of global comparisons in innovation, governance and competitiveness.

There is no question that in many areas the Philippines—its government, its businesses and its people—are doing a better job.

But even after years of better government financials and better corporate performance, job creation is not progressing at the same speed.

The latest Global Competitive Index (GCI) does offer some important insights. In the category of “Labor Market Efficiency,” the Philippines ranks 91st which is way below our overall rank at 52. We scored high on “Cooperation in labor-employer relations” (29th); “Pay and productivity” (27th); and “Reliance on professional management” (29th): We score very poorly on “Hiring and firing practices” at 104th and even worse on “Redundancy costs” at 124th.

The GCI says that, “The efficiency and flexibility of the labor market are critical for ensuring that workers are allocated to their most effective use in the economy and provided with incentives to give their best effort in their jobs.

Labor markets must, therefore, have the flexibility to shift workers from one economic activity to another rapidly and at low cost.”

If it is cheaper for a business to keep a low-cost motorcycle messenger than to up-train them for a higher skilled job, the labor market does not become more efficient. If it is more cost effective to hire contractual workers because of inflexible labor laws, careers are not created.

It is time the legislature looked to bringing Philippine labor laws up to 21st century standards in order to make our labor market more flexible and efficient.

The next three months John Mangun

OUTSIDE THE BOX

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ver the last nine months I said repeatedly that the US Federal Reserve (the Fed) would not raise interest rates.

It is unlikely that rates will be raised in 2015 and almost definitely not in 2016.

The current Fed Board of Governors are all Obama appointees, and 2016 is an election year when Obama’s Democrat party is struggling to hold onto the presidency.

Imagine if the Fed hikes interest rates in early 2016 and the US economy goes into a recession. The presidential election would almost certainly go to the Republicans.

I also said that there is a possibility that the US would move to negative interest rates as is being done in some European countries where the government actually pays back a lower amount when its debt matures than the original face value. Corporations are willing to lose moneylending to governments because they need a risk-free short-term investment and even negative rates are less risky than putting money on deposit with a bank.

In a speech two days ago, the Fed Chairman Janet Yellen said: “The federal funds rate and other nominal interest rates cannot go much

below zero, since holding cash is always an alternative to investing in securities.” She went on to say, “This limitation is a potentially serious problem because severe downturns, such as the Great Recession, may require pushing real interest rates far below zero for an extended period to restore full employment at a satisfactory pace.” In other words, if the US economy does not show strength, interest rates will go negative.

The Europeans, the Japanese, the Chinese and the US are all trying to keep their currencies from appreciating. The headline US Dollar index only shows the battle between the dollar, the euro and the yen. The currencies of Algeria, Egypt, Mexico, Brazil, South Africa, Turkey and Russia, among others, have all reached historic dollar lows in the last month.

That means money is flowing into the US and this will continue as will extreme volatility in the commodity, equity and currency markets.

This past week, the Bangko

Sentral ng Pilipinas kept base interest rates unchanged after raising those rates one year ago. This is in stark contrast to what is being done in other countries. Norway just lowered its rates to their historic low.

The Asian Development Bank said two days ago that the Philippines will have its lowest economic-growth rate in the last four years in 2015. However, it is highly optimistic—as it should be—for 2016. Likewise, Fitch Ratings raised its outlook on the Philippines to “positive” from “stable.”

But before the potential good times of 2016, we need to get through the last quarter of 2015 and that may not be a gentle trip.

The Philippine peso, as well as the stock market, is going to continue to be volatile with swings that would be considered “wild” in the past.

In 2013 we saw this same kind of extreme movement, but this time it is different.

In 2013 the Philippine economy was growing at a faster rate and the concern was that any Fed rate increase at that time would stall the country’s growth. The rate increase did not happen. The Philippine peso was appreciating then and the dollar was stable and weaker. The euro is now 1.12; in 2013 it was 1.30 to the dollar. The Japanese yen was also 20-percent higher. Should I mention that crude oil was trading at $100 in 2013?

Central banks were in firm control. Government policy makers had the peoples’ confidence. All was good

Pope moves the needle in US politics Albert R. Hunt

BLOOMBERG VIEW

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N Congress even “the wave” is political. Hearing a pope for the first time in the House chamber, senators and representatives rose for standing ovations starting from the left, with the other side slowly, sometimes reluctantly, following.

As Pope Francis addressed a joint session of Congress on Thursday, the side, populated mainly by Democrats, cheered his call for openness to immigration, policies to help the poor and protect the environment and to abolish the death penalty.

Many Republicans, on the other side, were far more guarded. Some appeared sullen during much of the pontiff’s 15-minute speech, in which he cited Abraham Lincoln and Martin Luther King, along with the Catholic social activist Dorothy Day and the theologian Thomas Merton as exemplars of the American spirit.

Once Republicans led the applause.

That was when the pope asked Congress to “protect and defend human life at every stage of its development,” alluding to the church’s opposition to abortion.

Pope Francis was especially passionate talking about the contributions of immigrants to American life, and he called on the politicians to defend this legacy. Almost all congressional Democrats, along with President Obama, support creation of a pathway to citizenship for undocumented resident immigrants. Most Republicans don’t, and the issue has become especially contentious with Republican presidential candidates vying for support from the party’s conservative voters.

That’s just one of the ways the historic speech illustrated how much has changed at the intersection of American politics and papal oratory.

Many conservatives—columnists, commentators and politicians—are agitated by Pope Francis over what they see as his economic and environmental

radicalism. Some have accused him of undertaking a dangerous ideological and political mission.

In reality Pope Francis hasn’t changed any church policies on economics, social justice, war, abortion or gay marriage. As if to underscore that point, on Wednesday he visited the Little Sisters of the Poor, which took the US government to court to fight a requirement that religious organizations cover birth control in the health insurance they provide to employees.

Yet, in his emphasis on the plight of the poor, immigrants and the environment, this pope has changed the Catholic Church’s tone and rebalanced its priorities. That bothers conservative activists in the US, where the Catholic hierarchy for three decades has largely been identified with Republicans and the culture wars because of its stress on abortion and gay marriage.

Priests and bishops who’ve preferred to focus on social action have often been drowned out by hardliners, like Cardinal Raymond Burke, former archbishop of Saint Louis. He’s now in a diminished role in Rome after reassignment by Pope Francis.

From Erie, Pennsylvania, to Springfield, Illinois, to Saint Louis and elsewhere, conservative church leaders denied or threatened to deny communion to politicians who supported abortion rights. This included a few

as in the next year stock markets hit historic highs.

Forward to 2015 and look around.

Europe is in chaos with its refugee and Greece debt crisis, and now the US is moving more nuclear weapons to Russia’s doorstep. The Middle East is in chaos with Russia building military bases in Syria. China’s economy is in crisis with data showing a continuing and accelerating decline. Both Canada and Japan are in recession, although their governments are making excuses for the downturn. Global trade volume and value is in its steepest and longest decline since 2009.

The Philippine government is desperately singing, “Don’t Worry, Be Happy” as we go into the election season. We will find out if they are right in about 30 days when third quarter economic numbers are released.

Local stockbrokers desperately want investors to look at fundamentals, “Fair Value” and future profits in order to keep buying issues that are down 8 percent and more in six weeks. They might be right also.

In the meantime though, be cautious and carry your umbrella at all times. The financial and economic typhoon season is just beginning.

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.

Republicans like former Gov. Tom Ridge of Pennsylvania, but was aimed mainly at Democrats. Notable examples include Secretary of State John Kerry when he ran for president in 2004 and the former Health and Human Services Secretary Kathleen Sebelius.

The prestigious University of Notre Dame was chastised for giving President Obama an honorary degree in 2009.

The Catholic vote is diverse and huge, a quarter of the electorate. In the 2012 presidential race, according to election day exit polls, it broke slightly for Obama, 50 percent to 48 percent over Mitt Romney. Many Catholic voters ignore their church on political matters, but in more than a few campaigns Republicans have worked—covertly or otherwise—with church officials, especially in turning out like-minded voters.

Don’t expect bishops to deny communion to Rep. Steve King of Iowa, an immigration-basher, or to the presidential candidate Marco Rubio for a tax plan that includes a break for many wealthy Americans. Pro-choice Catholic politicians will still get flak from some church leaders.

But now there’s a new dynamic. Pope Francis’s advocacy for the poor and for immigrants, along with his warnings about income inequality and the perils of climate change, means that politicians will have to answer for their positions on those issues, as well.

Opinion BusinessMirror

opinion@businessmirror.com.ph

‘Laudato Si’

Greed and wrong economic policies (A historical perspective)

the entire planet, but it must be said that only limited progress has been made in this regard.

Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database Third part

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SIAN Development Bank (ADB) and World Bank’s powersector reform programs proceeded from an erroneous diagnosis that public ownership and government monopolies inherently lead to poor performance of public utilities and eventually financial ruin.

Actually, these programs spawned

the wrong prescriptions, as they handed over ownership to the private sector, forcing the government to abandon its social contract that existed with its constituents as early as during President Ferdinand Marcos’s time.

Power-sector reform programs render the public vulnerable to high electricity cost, the profits motive of private power firm and the loss of control over environment regulation.

The end-result is significantly reduced consumer protection and the transfer of corporate debts into public hands.

The Freedom from Debt Coalition (FDC) said requiring the implementation of power-sector reform program as a condition for loan disbursements illustrated the way the ADB and other international financial institutions’ belief that a “one-size-fits-all” model is applicable to countries everywhere.

Power-sector reform programs are being advanced by those institutions as a panacea for improving technical, financial and managerial performance of power utilities, regardless of differences in the economic level of countries; the level of development of their power sectors; the number of people connected to the grid; and the roots of the crisis faced by various publicor state-owned utilities.

Indonesia and the Philippines have different stages of power-sector development, different models of electricity-market structure and different conditions in terms of energy sources. Yet, the FDC said, the models and phases for power reform imposed by the ADB and the World Bank on the two countries are almost the same.

Many times in the past, the ADB had also intervened in the internal process of reforms that countries are supposed to enjoy as sovereign states. It had gone beyond its role as loan provider, intervening to shape the substance of laws, government policies and programs.

According to the FDC, the ADB practically drafted the electricity-reform bill of the Philippines and Bangladesh, and worked with the World Bank to draw up the Power Sector Restructuring Policy of Indonesia in 1998.

Both institutions were also involved in drafting the Indonesia Electricity Bill.

The ADB itself facilitated the very process of passing the bill into law, which explicitly declared that the second disbursement of the power-sector restructuring loan of $200-million-plus additional cofinancing from Japan Bank for International Cooperation of $200 million, would not be released without the law in place.

From the time the Electric Power Industry Reform Act (Epira) was drafted for the Philippine government, the ADB exercised undue influence.

Suspiciously, the FDC said, the privatization of National Power Corp. (Napocor) was attended by a payoff scandal exposed by two parliamentarians.

The ADB’s overarching goal to reduce poverty comes under serious question, because of flawed process of reform and the lack of genuine public participation. The ADB argued that the reform will help the government to cut subsidies for electricity. The government then should be able to allocate funds to other public-expenditure priorities, such as health and education.

According to the FDC, the idea for encouraging private-sector participation in independent power producerprograms through build-operatetransfer (BOT)/build-own-operatetransfer, along with the implementation of the reform, has put private

profit before public interest. Private investors would always want to limit their losses and to cover most of their business risk, and they would always insist on government guarantees for their revenues.

The case of BOT private infrastructure clearly demonstrates the nature of the ADB’s strategies and the lack of accountability in terms of longer-term development goals, such as debt and risk management. The World Bank itself admitted that guarantees could potentially create major budgetary shortfalls and dire consequences for future generations (Wyatt, 2002).

In the case of the Philippines, Napocor has admitted paying about P60 million a month to the Department of Finance to guarantee IPP projects starting in the 1990s.

Epira was premised on the need to reform the Philippine power-industry sector toward market-oriented competition. The law asserted that privatizing the power industry leads to more efficient delivery of energy at lower costs through competition.

Actually, this premise hinged on the structural adjustment policy imposed by the International Monetary Fund and the World Bank, as well as the ADB, on developing countries, like the Philippines, to privatize stateowned enterprises, so as to free up government resources that would allow debtor-countries to pay past loans to those institutions.

That compliance with this policy was a condition for the release of new loans soon became obvious.

After Congress passed Republic Act 9136, the ADB and the Japan ExportImport Bank, an export credit agency, released a total of $950 million in loans and guarantees.

The release of the amount triggered a spate of borrowings by the Arroyo administration, making it the biggest debtor to date as illustrated below.

Comparative borrowings per administration (in million pesos):

Aquino (1986-1991) Ramos (1992-1997) Estrada (1998-2000) Arroyo (2001-2003) Arroyo (programmed for 2004) Arroyo (2001-2004)

P383,370 P401,015 P725,181 P958,168 P411,948 P1,370,116

Marcos debt in 1986 was $28.206 billion, or P575.12 billion ($=P20.39, 1986 forex). Marcos accumulated budget in 20 years was P488 billion; the peso devaluated 24 times between 1981 ($=P7.90, forex) and 2004 ($=P55.55).

The World Bank is currently estimating the quantitative dimension of contingent liabilities. Some estimates of the government’s contingent liabilities run to about P3.1 trillion as of endMarch 2002, representing maximum exposures under obligations, such as (a) liabilities of public pension institutions; (b) direct guarantees on loans to government-owned and -controlled corporations (GOCCs) and government financial institutions; (c) guarantees on risks under BOT contracts; and (d) deposit insurance.

Outstanding Public Sector Debt (national government and debts of GOCCs) as of 2005 was P5.39 trillion.

The Philippines’s External Debt to gross domestic product (GDP) ratio was second only to Indonesia, at 69.1 and 75.8, respectively, in 2002.

But as of the second quarter of 2003, the Philippines External Debt to GDP ratio increased to 71.0; and Indonesia decreased to 69.6. The Philippines’s is now the highest in the region.

To be continued

Part Four Note: We continue the reprint as a series of the Holy Father Pope Francis encyclical Laudato Si (On Our Care for Our Common Home).

Chapter One What is happening to our common home

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heological and philosophical reflections on the situation of humanity and the world can sound tiresome and abstract, unless they are grounded in a fresh analysis of our present situation, which is in many ways unprecedented in the history of humanity. So, before considering how faith brings new incentives and requirements with regard to the world of which we are a part, I will briefly turn to what is happening to our common home.

The continued acceleration of changes affecting humanity and the planet is coupled today with a more intensified pace of life and work which might be called “rapidification.” Although change is part of the working of complex systems, the speed with which human activity has developed contrasts with the naturally slow pace of biological evolution.

Moreover, the goals of this rapid and constant change are not necessarily geared to the common good or to integral and sustainable human development. Change is something desirable, yet it becomes a source of anxiety when it causes harm to the world and to the quality of life of much of humanity.

Following a period of irrational confidence in progress and human abilities, some sectors of society are now adopting a more critical approach. We see increasing sensitivity to the environment and the need to protect nature, along with a growing concern, both genuine and distressing, for what is happening to our planet. Let us review, however cursorily, those questions which are troubling us today and which we can no longer sweep under the carpet.

Our goal is not to amass information or to satisfy curiosity, but rather to become painfully aware, to dare to turn what is happening to the world into our own personal suffering and, thus, to discover what each of us can do about it.

I. Pollution and climate change Pollution, waste and the throwaway culture

Some forms of pollution are part of people’s daily experience. Exposure to atmospheric pollutants produces a broad spectrum of health hazards, especially for the poor, and causes millions of premature deaths. People become sick, for example, from breathing high levels of smoke from fuels used in cooking or heating.

There is also pollution that affects everyone, caused by transport, industrial fumes, substances which contribute to the acidification of soil and water, fertilizers, insecticides, fungicides, herbicides and agrotoxins, in general. Technology,

Saturday, September 26, 2015

which, linked to business interests, is presented as the only way of solving these problems, in fact, proves incapable of seeing the mysterious network of relations between things and so sometimes solves one problem only to create another.

Account must also be taken of the pollution produced by residue, including dangerous waste present in different areas. Each year hundreds of millions of tons of waste are generated, much of it nonbiodegradable, highly toxic and radioactive, from homes and businesses, from construction and demolition sites, from clinical, electronic and industrial sources. The Earth, our home, is beginning to look more and more like an immense pile of filth. In many parts of the planet, the elderly lament that once beautiful landscapes are now covered with rubbish. Industrial waste and chemical products used in cities and agricultural areas can lead to bioaccumulation in the organisms of the local population, even when levels of toxins in those places are low. Frequently, no measures are taken until after people’s health has been irreversibly affected.

These problems are closely linked to a throwaway culture, which affects the excluded just as it quickly reduces things to rubbish. To cite one example, most of the paper we produce is thrown away and not recycled. It is hard for us to accept that the way natural ecosystems work is exemplary: plants synthesize nutrients which feed herbivores; these, in turn, become food for carnivores, which produce significant quantities of organic waste which give rise to new generations of plants. But our industrial system, at the end of its cycle of production and consumption, has not developed the capacity to absorb and reuse waste and byproducts. We have not yet managed to adopt a circular model of production capable of preserving resources for present and future generations, while limiting, as much as possible, the use of nonrenewable resources, moderating their consumption, maximizing their efficient use, reusing and recycling them.

A serious consideration of this issue would be one way of counteracting the throwaway culture which affects

Climate as a common good

The climate is a common good, belonging to all and meant for all. At the global level, it is a complex system linked to many of the essential conditions for human life. A very solid scientific consensus indicates that we are presently witnessing a disturbing warming of the climatic system. In recent decades this warming has been accompanied by a constant rise in the sea level and, it would appear, by an increase of extreme weather events, even if a scientifically determinable cause cannot be assigned to each particular phenomenon. Humanity is called to recognize the need for changes of lifestyle, production and consumption, in order to combat this warming or at least the human causes which produce or aggravate it. It is true that there are other factors (such as volcanic activity, variations in the Earth’s orbit and axis, the solar cycle), yet, a number of scientific studies indicate that most global warming in recent decades is due to the great concentration of greenhouse gases (carbon dioxide, methane, nitrogen oxides and others) released mainly as a result of human activity. As these gases build up in the atmosphere, they hamper the escape of heat produced by sunlight at the earth’s surface. The problem is aggravated by a model of development based on the intensive use of fossil fuels, which is at the heart of the worldwide energy system. Another determining factor has been an increase in changed uses of the soil, principally deforestation for agricultural purposes.

Warming has effects on the carbon cycle. It creates a vicious circle which aggravates the situation even more, affecting the availability of essential resources, like drinking water, energy and agricultural production in warmer regions, and leading to the extinction of part of the planet’s biodiversity. The melting in the polar ice caps and in high altitude plains can lead to the dangerous release of methane gas, while the decomposition of frozen organic material can further increase the emission of carbon dioxide. Things are made worse by the loss of tropical forests, which would, otherwise, help to mitigate climate change. Carbon-dioxide pollution increases the acidification of the oceans and compromises the marine food chain. If present trends continue, this century may well witness extraordinary climate change and an unprecedented destruction of ecosystems, with serious consequences for all of us. A rise in the sea level, for example, can create extremely serious situations, if we consider that a quarter of the world’s population lives on the coast or nearby, and that the majority of our megacities are situated in coastal areas.

Climate change is a global problem with grave implications: environmental, social, economic, political and for the distribution of goods. It represents one of the principal challenges facing humanity in our day.

Its worst impact will probably be felt by developing countries in the coming decades. Many of the poor live in areas particularly affected by the phenomena related to warming, and their means of subsistence are largely dependent on natural reserves and ecosystemic services, such as agriculture, fishing and forestry. They have no other financial activities or resources which can enable them to adapt to climate change or to face natural disasters, and their access to social services and protection is very limited. For example, changes in climate, to which animals and plants cannot adapt, lead them to migrate; this, in turn, affects the livelihood of the poor, who are then forced to leave their homes, with great uncertainty for their future and that of their children. There has been a tragic rise in the number of migrants seeking to flee from the growing poverty caused by environmental degradation. They are not recognized by international conventions as refugees; they bear the loss of the lives they have left behind, without enjoying any legal protection whatsoever. Sadly, there is widespread indifference to such suffering, which is even now taking place throughout our world. Our lack of response to these tragedies involving our brothers and sisters points to the loss of that sense of responsibility for our fellow men and women upon which all civil society is founded.

Many of those who possess more resources and economic or political power seem mostly to be concerned with masking the problems or concealing their symptoms, simply making efforts to reduce some of the negative impacts of climate change. However, many of these symptoms indicate that such effects will continue to worsen if we continue with current models of production and consumption. There is an urgent need to develop policies so that, in the next few years, the emission of carbon dioxide and other highly polluting gases can be drastically reduced, for example, substituting for fossil fuels and developing sources of renewable energy. Worldwide there is minimal access to clean and renewable energy. There is still a need to develop adequate storage technologies. Some countries have made considerable progress, although it is far from constituting a significant proportion. Investments have also been made in means of production and transportation which consume less energy and require fewer raw materials, as well as in methods of construction and renovating buildings which improve their energy efficiency. But these good practices are still far from widespread.

To be continued To know more about the programs of Caritas Manila, visit www.caritas. org.ph. For donations, call 563-9311.

For inquiries, call 563-9308 or 5639298. 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.

Volkswagen and the EPA’s dirty little secret

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heating reflects badly, first and foremost, on the cheater—and so it is with Volkswagen, whose shocking manipulation of US emissions tests continues to exact a price in market value, legal costs and reputation. At the same time, it’s not unreasonable to ask how the cheating happened in the first place, and that question implicates more than just Volkswagen.

For years, automakers have been able to exploit lax testing systems in the US and Europe. Regulators owe it to both car buyers and the environment to make these systems more rigorous.

As things work now in the US, carmakers test their own vehicles and send the results to the Environmental Protection Agency (EPA), whose engineers review them and, usually, apply a rubber stamp. The EPA allows manufacturers broad latitude in determining test conditions, an invitation to hanky-panky. The agency

does some independent, random testing— but on just 10 percent to 15 percent of new models. Only in rare cases does it test cars that have actually been driven off the lot.

The problems with this regime were obvious even before VW’s shenanigans. In 2013 Consumer Reports found that 55 percent of hybrids and 28 percent of turbocharged cars fell short of their EPA fuel-efficiency ratings. Last year the Justice Department reached a $350million settlement with Hyundai and Kia for overstating gas mileage. Ford, Mercedes, Mini and other manufacturers have restated their official mileage ratings in the last three years, usually under threat of consumer lawsuits.

Europe, where automakers also test their own vehicles, has its own issues. Just before the VW scandal broke, a European environmental advocacy group released test results showing major discrepancies between lab and real-world emissions in cars made by BMW, Mercedes and Opel. The European

Commission has announced that all passenger cars will be undergo “real world” emissions testing starting in 2017.

Any system will inevitably rely on self-reporting to some extent. Government regulators simply don’t have the money or personnel to test every new vehicle. But they can enact safeguards on a system that is all too easy for carmakers to game.

First, the EPA should have some of its engineers on hand at the industry labs to oversee compliance. Carmakers have a bevy of little tricks that can increase efficiency—lowresistance tires, removing side mirrors and taping over cracks between panels—and while the EPA has done better than the Europeans at closing loopholes, vigilance must be maintained. The agency should also vary the testing routines periodically, so that carmakers won’t know in advance exactly what they are in for. (The current regime’s predictability may well have been a big part of VW’s

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successful deception.) The EPA should consider following the EU’s lead with on-the-road studies, for gas mileage as well as pollutants.

Also, the so-called defeat device VW used to game the emissions test was actually a pretty simple software tweak. It shouldn’t be too hard for the EPA to invest in some computer forensic capabilities to track what’s going on in our increasingly computerized vehicles.

Just as important, there need to be greater consequences for cheating. Any company caught in violation should lose its self-monitoring rights for a number of years. It should have to dig into its own pockets for trials by neutral third parties, such as parts manufacturers, which have the necessary equipment.

What VW did appears to be in a category all its own, and it deserves special condemnation. But other carmakers game the system, and regulators tolerate it. That is the dirty little secret of emissions and efficiency testing, and the EPA needs to clean it up. Bloomberg View

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News

BusinessMirror

Saturday, September 26, 2015

YELLEN EXPECTS RATE ADJUSTMENT THIS YEAR Continued from A1

But Fed policy-makers were confident those were temporary factors and that “inflation will gradually return to 2 percent over the next two or three years.”

In economic forecasts released last week, Fed officials projected inflation would be 0.4 percent this year and not hit the central bank’s annual 2-percent target until 2018.

The Fed has a dual mandate to maximize employment and keep prices stable. Yellen said she and most Fed policy-makers “currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter.”

“But if the economy surprises us, our judgments about appropriate monetary policy will change,” Yellen said. Some analysts have said the Fed should wait to raise rates until the economy is at full employment and inflation is back to 2 percent.

Acknowledging the argument, Yellen said that would risk harming the economy because there is a lag in the effects of monetarypolicy changes.

“If the FOMC were to delay the start of the policy-normalization process for too long, we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals,” she said. “Such an abrupt

tightening would risk disrupting financial markets and, perhaps, even inadvertently push the economy into recession.”

After their meeting last week, Yellen said she and her colleagues wanted “a little bit more time to evaluate the likely impacts on the United States”of the recent financial-market turmoil, which could be a signal of a global economic slowdown.

Fed officials could act as soon as their next meeting in late October.

But Fed policy-makers might have trouble determining the effects on the US if a budget dispute leads to a federal government shutdown.

The fiscal year ends on September 30 and if Congress and the White House can’t agree on at least a shortterm spending bill, the next batch of data—including the September jobs report due to be released on October 2—could be delayed until the government reopens.

A 16-day partial government shutdown in October 2013 caused the labor department to delay releasing the September jobs report for two weeks. The next meeting of the policy-making FOMC is on October 27 and 28, and Fed officials probably would need updated data on jobs and other economic indicators to decide on an interestrate hike.

Obama administration officials hope there will not be a shutdown.

But as a precaution, they are reviewing contingency plans, Labor Department Spokesman Stephen Barr said on Thursday. MCT

news@businessmirror.com.ph

‘Real-estate risks remain muted’ Continued from A1

revision of its outlook from “stable” to “positive” for the country.

“There is limited clarity over macroprudential risks stemming from the real-estate market…. Lack of data on property prices and affordability indicators make it difficult for Fitch to assess the effects of credit growth on the real-estate market,” Fitch said, citing a Colliers International data showing that land values in the Makati Central Business District have risen by more than 50 percent since 2012.

Guinigundo said the significant

run-up in real-estate prices in Makati and elsewhere in the country could be true, although at best anecdotal.

“For housing, we continue to have a large backlog, while the capacity of clients has increased due to overseas remittances, higher employment and the business-process outsourcing,” Guinigundo said.

“The risks of asset-price inflation appear manageable and have, in fact, been addressed by a number of macroprudential measures,” he added.

Meanwhile, the pressing need to have a single and more centralized data on real-estate price movement in the

ADB hikes annual climate change financing to $6B

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he Manila-based Asian Development Bank (ADB) announced that it is doubling its annual climate financing to $6 billion by 2020 in the Asia-Pacific region, the first time the bank adopted a financing target for climate-related investments.

The announcement, made by ADB President Takehiko Nakao, came ahead of the adoption of the 17 Sustainable Development Goals (SDGs) at the United Nations General Assembly in New York.

“World leaders gathering in New York this weekend will commit to achieving 17 historic SDGs by 2030 and the ADB stands ready to be an important part of global efforts to finance these goals,” Nakao said.

“Nowhere is tackling climate change more critical than in Asia and the Pa-

cific, where rising sea levels, melting glaciers and weather extremes, like floods and droughts, are damaging livelihoods and taking far too many lives,” he added.

The ADB said that of the $6 billion, some $4 billion will be dedicated to mitigation efforts through scaling up of support for renewable energy, energy efficiency, sustainable transport and building smart cities.

The remaining $2 billion will be allocated for adaptation through more resilient infrastructure, climate-smart agriculture and better preparation for climate-related disasters.

The financing is expected to boost efforts to address climate-change risks in the region. The Philippines is among those in the region that are considered most at risk. Cai U. Ordinario

country has been highlighted by both the BSP official and Fitch Ratings.

“The BSP plans to release a residential real-estate price index [RREPI] later in the year. The proactive supervision and regulation of the BSP, particularly on the introduction of real-estate stress test and caps on mortgage loan values relative to collateral may help contain risks,” Fitch said.

“We need a statistical index like RREPI to make a general characterization of the real-estate sector and the likely path of property prices. It is also useful to produce a decomposition into residential and commercial property

VW. . .

prices, which are driven by different dynamics,” Guinigundo agreed. The BSP official also expressed confidence that banks have been more cautious in terms of their exposure to the realestate sector due to several monitoring measures put up in recent times.

“Banks engaged in real estate have been advised to ensure their capital base is not unduly challenged by their exposure in real estate. They claim that they build towers one at a time, increased the equity shares of clients and started to rely on internal funds for their operations,” Guinigundo said.

Continued from A1

Unlike Europe, where diesel is popular as an automotive fuel, most cars in China run on gasoline. The country has, in recent years, spent billions promoting the adoption of electric vehicles, doling out research grants and subsidies to automakers and battery suppliers to reduce air pollution in its major cities and seize leadership in what it sees as the next mainstream automotive technology.

China has said it will target raising the proportion of non-fossil fuel-energy use to total consumption to 15 percent by 2020, increasing further to 20 percent by 2030.

Local governments in major cities began restricting the use of diesel-powered passenger vehicles in the 1990s due to concerns that poor diesel quality would worsen pollution and rising demand for the fuel would undermine supply for trucks that haul goods around the country. As a result, the estimated sales of diesel-powered passenger vehicles

were only 0.4 percent of total deliveries in China in the past 12 months through August, according to data compiled by Bloomberg Intelligence.

China’s shunning of diesel cars may turn out to have been a blessing for Volkswagen, as it’s shielded the company from direct backlash in its largest market. The Wolfsburg, Germany- based automaker has counted on the country for about 35 percent of vehicle sales this year and plans to raise local production capacity to 5 million autos by 2019, from 3.5 million in 2014.

“The Chinese government has been supporting development of electric vehicles instead of diesel-powered cars,” said Steve Man, a Hong Kong-based analyst with Bloomberg Intelligence. “China is critical for Volkswagen and the ban on diesel cars may make China a savior for the company and help preserve the brand’s good reputation in the market.”

Bloomberg News

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

Life

BusinessMirror

Saturday, September 26, 2015

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Succeeding in a man’s world something like life ma. stella f. arnaldo

http://stella-arnaldo.blogspot.com @Pulitika2010

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ONCE asked Olivia Limpe-Aw, chairman of Destileria Limtuaco & Co. Inc. (DL), if she had any hobbies or other interests outside of her work. Her answer was: “None.” I prodded her some more: “But how do you relax?” (After a bit of thought, she said that she dines out with her family, watches movies, indulges in some retail therapy and travels for leisure.)

But those who know Olive aren’t at all surprised. This always-stylish lady chief executive of the oldest distillery in the country is described as a “workaholic.” She’s regularly out on the field, touching base with dealers and distributors, and, lately, farmers who supply fruits for her newest concoction, the Manille Liqueur de Dalandan. Dang, she now sells soap, too! (Short story, the leftovers from processing calamansi and dalandan to make DL’s liqueurs, such as the seeds and rinds, are now used to make handcrafted natural soaps.)

And she’s also constantly abroad, marketing the company’s various products in the US, China and other parts of Asia.

But I suppose that being always on her toes is what it takes for Olive to succeed in this male-dominated world of liquors and spirits. After a long line of male master blenders at DL starting from its founder Lim Tua Co, a merchant and immigrant from Amoy, China, who first brought Sioktong to the Philippines, Olive is the fifth and first female master blender in the family-held corporation. (Her father Julius is the greatgrandnephew of Lim, who later Christianized his name to Bonifacio Limtuaco.)

“As a master blender, we decide on the blend of each product we introduce to the market. I learned from my father and I also learned from international experts in distilled spirits. I also trained abroad to further my master blending and distilling skills,” explains Olive, who is the fifth among seven daughters of Julius and wife Lily.

“I would watch my father working with his blends in the laboratory with great interest.

I learned some parts of it by observation, particularly the process of experimentation and arriving at the final blend of a product,” she adds, talking about her training in the company. Like most Filipino-Chinese families, she and her sisters spent their summer breaks at their father’s office and factory working and playing. “I had the chance to work in the factory, too, which was to make us understand the value of hard work, and that it wasn’t easy to make money.”

Her father eventually passed on the management of the company in 2004, making her president, then the chairman in 2012. “As far as I can remember, I had been conditioned by my parents to eventually run the company.

So I tried my best to learn the ropes of the

Olivia Limpe-Aw (left), president and CEO of Destileria Limtuaco & Co. Inc., with Chef Margarita Fores, brand ambassador for Manille Liqueur de Dalandan

business to prepare myself for this responsibility. By the time I took over, I had enough solid experience to fit into the shoes of the president. But, of course, I was lucky that my parents were always there to support me and give guidance whenever I needed it.”

The best part of her job, Olive enthuses, is the “creative process of conceptualizing new products and marketing campaigns that raise the bar of Philippine distilled spirits and allow us to grow our business nationally and internationally. In so doing, we’re also building a name for Philippine wines and spirits in foreign markets, which make us proud as a country and as a people.”

The Manille Liqueur de Dalandan will likely join the company’s long list of liquors and alcoholic beverages making waves among

overseas Filipinos and foreigners alike. It was launched just last Tuesday at Grace Park, Chef Margarita “Gaita” Fores’s much-loved farm-to-table concept restaurant.

Chef Gaita whipped up inspired dishes using the liqueur and the dalandan fruit itself.

My favorites were the Roast Bacolod-Style Lechon Stuffed with Manille Dalandan and Dalandan Leaves; the Di Martino Mezzi Rigatoni with Dalandan Rinds and Fresh Mint in a Light Cream Sauce; and a luscious dalandan rhum cake.

Of course, while enjoying these splendid dishes, I was downing shots of the Dalandan liqueur on the rocks, and had a glass of mixologist Enzo Lim’s refreshing Sinturis Smash, which was a mix of the Dalandan liqueur, muddled lemon and

mint leaves, with a splash of gin.

“Manille Liqueur de Dalandan is the only liquor in the world that utilizes the essential oils of the fruit and captures the sweet zesty profile of dalandan,” says Olive with much pride. She points out that the company’s Philippine Craft Spirits line was formed out of the need to create something uniquely local. “I saw the limited use of the crops we have here…. I wanted to show everyone that with proper research, the right materials and, most important, drive and passion, we can find a way to be advocates of our own Philippine produce.”

This ties in perfectly with Chef Gaita’s advocacy of supporting local farmers and championing our home-grown produce and products in foreign markets. “I’ve had the honor in recent years to be able to present Filipino cuisine and products abroad, and being able to showcase the best in our country has always made me proud,” the chef and brand ambassador for Manille Dalandan adds.

Olive says it was Chef Gaita who actually “suggested we try dalandan as the next flavor for Manille. She has a great reputation in the culinary scene, and is known as an innovative and passionate chef.”

DL also does its part in supporting local farmers by paying them the market price of the dalandan. By cutting out the traders, the farmers get 100 percent of the profits from dealing directly with the company. “It’s part of our CSR [corporate social responsibility] program. This way, we are able to help the dalandan farmers increase their margins a great deal,” Olive says.

The company gets its dalandan from Tiaong, Quezon and also from a farmers group in Socorro, Oriental Mindoro, where they also get their calamansi.

In contrast with her father who only had daughters, Olive has three sons with her husband Benny Aw, who handles DL’s international sales. Their eldest, Clifford, handles sales and is also the family “mixologist”; Aaron leads the marketing team; while the youngest, Brandon, is dubbed the “resident DJ”.

Her sons have already come up with their own margarita mix and tequila line, ensuring that Destileria Limtuaco will continue to remain in the family and keep its long tradition of producing quality liquors and spirits for more generations to come.

Don’t try this at home

By Steve and Mia Philadelphia Daily News

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hat do Kim Kardashian, Paris Hilton, Rob Lowe, Tommy Lee, R. Kelly and Pamela Anderson— twice—have in common?

They all made private sex tapes that later became public.

This brings us to Sex Tape, the romantic comedy starring Cameron Diaz and Jason Segel that hit theaters not too long ago.

Diaz and Segel play a married couple who make a sex video based on every position in The Joy of Sex. They upload it to the Cloud, then are horrified to learn it was sent to a handful of other iPads.

We dispatched romance columnists Steve and Mia to review the movie.

Steve: I’m always in favor of trying new stuff to bank the fires of a long-term romance.

But replicating every position in The Joy of Sex? Remember our review of the updated edition just a few years ago?

Mia: Yes, I do. It was exhausting just looking at the pictures.

Steve: I’ll say. With some of those positions, it should’ve been called “The Agony of Sex”. There was one that involved a phone book.

Mia: Where would you even find a phone book today?

Steve: Craigslist?

Mia: Sex Tape does make you think about the impact that long-term marriage can have on a couple’s sex life.

Steve: Especially if you’re a working couple with kids. Hell, you have to make a sex appointment two months in advance.

Mia: So, what are you supposed to do when you hit a sexual dry spell? I can see why Jay and Annie (Segel and Diaz) decided to make a sex video. What’s hotter than seeing yourself and your lover going at it? Steve, have you seen

yourself in action?

Steve: God, no! Seeing me having sex would turn anyone off sex forever, including myself. Seeing Diaz have sex, on the other hand, puts the Joy in The Joy of Sex. Mia: Yeah, well I saw more of Diaz’s butt crack during that movie than I ever thought I’d see.

Steve: We should tell our readers that the movie is really more of a chase movie than a sex movie, although you do get to see Cameron in bikini panties and roller skates.

Mia: And Jason in jockeys.

Steve: Back in 2005 we reviewed In Her Shoes, another romcom starring Diaz. We loved it, but she was a hot 32-year-old woman then. Now she’s um, more “mature”. Do you think she’s lost some sex appeal?

Mia: Not a bit! She’s still smoking.

Steve: There seemed to be a range of horror on how much embarrassment the couple would suffer, depending on who viewed the tape. What would be your worst case? If your mom saw it?

Mia: The worst thing isn’t if anyone saw it.

What would hurt me more is if my butt looked ginormous or if I had bacne or something else ratchet going on.

Steve: Good point. It’s not who sees it, it’s what it looks like.

Mia: Trust me. There are certain angles you might not want to see your naked backside from.

Steve: In my case, that would be any angle.

I guess for couples crazy enough to do it on camera, though, we should offer some advice.

What do you think?

Mia: Before you pull out the camera, there should be ground rules. I recommend making only one copy of yourselves in action. If you’re tech-challenged, don’t even think of uploading it anywhere. Instead, get an old-style video recorder that uses an actual tape that you can destroy yourself.

Steve: Yeah, you can buy those online. In fact, you can probably buy lost sex tapes online.

Mia: The couple should decide ahead of time who gets possession of the tape. Better yet, watch it a few times and destroy the evidence. Relationships can be dicey, and the last thing you want is to end up on a revengeporn web site.

Steve: Revenge-porn web sites? Such things exist? You’ve given me a homework assignment.

Mia: You might want to leave your faces out of it and just show your bodies. Also, think about wearing a wig in a different hair color for a change of pace. Or maybe a Mardi Gras mask to conceal your identity. And don’t forget lighting. You don’t want it to be too dark while you’re filming.

Steve: Hmmm. I’m looking at you differently. On your next shoot, let me know if you need a gaffer.

Mia: All I’m saying is, if you’re going to do it, do it right. Make sure your room is clean. You want nice sheets on the bed. You don’t want an ironing board set up in the background—unless you’re doing a sexy laundress scenario.

Steve: Scenario?

Mia: Yeah, you need to set the scene.

Have some sort of plot lines so you know which way you’re going. In the movie, the couple made their way through The Joy of Sex. I suggest a pizza delivery-man theme.

You know, ladies, have your guy ring the door bell and walk into the house carrying an empty pizza box.

Steve: I’d rather have a guy ring my doorbell and walk into my house carrying Cameron Diaz. n Steve is a fifty-something married man who’s been around the block. Mia is a younger, recently married woman with an all-together different attitude. They may not agree, but they have plenty of answers.

Making moments even more special

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ITH the holiday season mere weeks away, now is the best time to plan that Christmas party, be it for one’s family at work or at home. City Garden Hotel Makati (www.citygardenhotel-makati.com) offers a wide array of packages for just about every occasion and corporate event.

With its continuing value proposition, the value hotel has come up with reasonable packages for celebrations like weddings, debuts, birthdays, baptisms and, of course, Christmas. Packages for corporate events, like meetings, conferences, planning sessions and seminar-workshops, are also available.

Kids and adults alike can have fun with a competitively priced children’s party package, ideal for parents who not only are budget-

conscious but also appreciate being freed of the hassles of organizing the event. For corporate packages, a whole-day, eight-hour session in any of the hotel’s function rooms can be availed at compelling packages that include plated lunch and two snacks, with an upgrade option for a buffet setup. And with Christmas just around the corner and venues fast running out, book a Christmas get-together at City Garden Makati early at equally enticing price points.

Whatever the occasion, ensure a fun-filled and memorable celebration, as well as successful meetings with City Garden Makati’s events packages, which include the choice of function room, poolside at the roof deck, or Le Jardin restaurant for the venue.

Sports BusinessMirror

Blue Eagles vs Tigers; Bulldogs face UP five

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TENEO de Manila and University of Santo Tomas (UST) clash for a share of the lead in the main game of Season 78 University Athletic Association of the Philippines (UAAP) men’s basketball action on Saturday at the Mall of Asia Arena.

The Blue Eagles and the Growling Tigers battle at 4 p.m. Season host University of the Philippines (2-2), on the other hand, tries to arrest a two-game skid against defending champion National University (NU) (3-2) at 2 p.m.

Since dropping its opening game to Far Eastern University, 64-88, the Blue Eagles have racked up three straight wins, the last against University of the East, 77-72. UST, on the other hand, had a 3-0 start but were halted by the Bulldogs, 54-55. The winner of the main game joins the Tamaraws at the top of the standings.

“I’m glad we had so much time to prepare against UST because that team is playing very well,” Blue Eagles Head Coach Bo Perasol said.

“With our last three wins, I think our team feels confident right now.”

Confidence is what Growling Tigers Head Coach Bong de la Cruz wants his players to bring against Ateneo, especially after absorbing a tough one-point loss to NU. De la Cruz said breaks didn’t go their way in the final minute of the contest and hopes that his wards have learned from their mistakes and are ready for the important match against the Blue Eagles.

“Ateneo is playing well right now. We will prepare for them,” de la Cruz said.

Meanwhile, NU guns for its third straight win to move to the .500 mark as it faces the skidding Fighting Maroons, who started the season with two straight wins.

“The UP game won’t be a walk in the park,” said Altamirano, whose team is coming off a 75-54 destruction of Adamson University.

“Their defense has improved a lot. They are fundamentally sound. They have the materials this year with the return of Jet Manuel and they have a legitimate center [Cheick Kone],” added Altamirano, who was part of the 1986 UP squad that won its lone UAAP crown.

Joel Orellana

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aturday, September 26, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

GILAS ADVANCES G

ILAS Pilipinas scored another lopsided win, this time against Kuwait, 110-64, for its second straight win in the Group B preliminary round of the International Basketball Federation (Fiba) Asia Men’s Championship on Friday at the Changsa Social Work College Gymnasium in Hunan, China.

A day after trumping Hong Kong by 51 points, 101-50, the Filipinos hardly missed a beat against the physical Kuwaitis and moved into the second stage with a 2-1 win-loss card.

Nine players scored at least eight points for the Philippines, led by Terrence Romeo, who finished with a game-high 19 points.

Jayson Castro added 16, and together with Ranidel de Ocampo and Calvin Abueva, helped Gilas build a 28-point cushion at halftime.

Naturalized player Andray Blatche had

eight points and eight rebounds in just 19 minutes of play, as Head Coach Tab Baldwin decided to sit him out for the majority of the second half to rest him for the crucial second phase of the preliminary stage.

Palestine (2-0), which shocked the Philippines 75-73, played Hong Kong (1-1) in another Group B late Friday.

From a slim 11-10 lead, the Philippines ended the first period with a 23-1 blast to grab a 34-11 cushion. Gilas took a 55-27 lead at halftime.

The Philippines made Kuwait bleed for every point early on. The Middle East squad fell into a long scoring drought until Abdullah Alsaeid’s two free throws at the 4:24 mark of the first period made it 11-18. The Kuwaitis’ next basket came at 5:49, also in the second period, courtesy of Abdulrahman Alshammari’s drive, 13-44, to end the Filipinos’ 26-0 run.

De Ocampo, Castro and Abueva combined for 26 points in the first half, nearly matching the output of the whole Kuwaiti team.

The Filipinos continued to pounce on the Kuwaitis in the third period and stretched their lead to 45 points, 77-32. Kuwait never recovered from there to bomb out of the tournament with its third straight loss.

Alshammari led Kuwait with 15 points, while Alsaeid added 13 markers. Abdulaziz Alhamidi was ejected late in the game for a disqualifying foul. He confronted a game official after his mouth was bloodied by de Ocampo’s shoulder. Prior to that incident,

Red Lions, Bombers in contrasting wins

STENSON DOMINANT IN FIRST ROUND

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TLANTA—Just getting to East Lake is the challenge for Henrik Stenson. Playing the golf course appears to be the easy part.

Two years after his wire-to-wire victory to capture the FedEx Cup, Stenson was just as dominant on Thursday until he stalled at the end and had to settle for a seven-under 63 and a two-shot lead over Paul Casey in the Tour Championship.

Stenson ripped a 4-wood from 288 yards to 25 feet and made the eagle putt on the par-5 ninth to go out in 29. He added two more birdies to reach eight under through 12 holes until he made pars the rest of the way and his lone bogey on the 17th.

Even so, it was just the start he wanted on a course that he has figured out. Stenson opened with a 64 two years ago, stretched his lead to as many as nine shots in the third round and joined Tom Watson as the only wireto-wire winners of the Tour Championship.

He missed last year when he failed to get into the top 30 who qualify for the FedEx Cup finale, and knew he only needed to get back to have a chance.

“I wanted to get out of the blocks quickly, and I surely did,” Stenson said.

Jason Day, in his first tournament as the No. 1 player in the world, stayed with Stenson until one shot. Day birdied his opening three holes, but his drive on the par-4 fifth hole

sailed through the trees on the right, over the fence and out-of-bounds. He made triple bogey and never really got back on track. He shot a 69 and was six behind.

Rory McIlroy started slowly, finished the front nine with three straight birdies and had a 66 to join British Open champion Zach Johnson. Jordan Spieth took the stress out of his game and rarely was out of position.

He just didn’t hit it close enough for birdie chances, made three of them and shot a 68 to join a large group that included Brooks Koepka and Brandt Snedeker.

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TONY Lascuña studies the line of his putt on No. 8.

Young Lim ousts Arcilla in PCA tilt

ALBERTO LIM JR. puts to good use his experience playing overseas. NONIE REYES

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AN BEDA survived Mapua’s late-game charge to score a 75-65 victory and earn at least a playoff for a Final Four berth on Friday in the 91st National Collegiate Athletic Association (NCAA) seniors basketball tournament at the Filoil Flying V Arena in San Juan City.

Jose Rizal University (JRU), on the other hand, held off the shorthanded Perpetual Help, 62-60, for its fourth straight triumph and fan its semifinals hopes.

Arthur de la Cruz played true to form and finished with 17 points, 14 rebounds and five assists, and Baser Amer played his best game so far in the season for a near double-double of 15 points, nine rebounds and four assists for the Red Lions, who improved to 12-4 won-lost overall.

Pierre Tankoua and Ranbill Tongco each added 12 points off the bench for the Red Lions, who snapped the Cardinals’ six-game winning run for a 10-6 record.

Allwell Oraeme also made his presence felt with 15 points, 21 rebounds and two blocks for San Beda.

Darrell Menina added 15 points, highlighted by five three-pointers, while JP Nieles had 10 markers for Mapúa.

“It’s a big win, because we get a bit of an advantage right now. It’s the home stretch, every game counts. I’m just happy we were able to get a win,” San Beda Head Coach Jamike Jarin said.

Paolo Pontejos scattered 19 points—16 he made in an explosive third quarter—to power the Heavy Bombers to their 10th win in 16 games.

Gerald Dizon fired 15 points and reigning Most Valuable Player Earl Scottie Thompson contributed 12 points, 11 rebounds and six assists for the Altas, who dropped to 11-5. Diego de la Paz

LASCUñA TIES BIBAT ATOP HEAP

ony Lascuña overhauled a four-stroke deficit with a near-impeccable start and cashed in on a two-shot swing on No. 15 to wrest control but fumbled with a closing bogey to settle for a 68 and a share of the lead with Michael Bibat in the third round of the P3.5-million International Container Terminal Services Inc. (ICTSI) Tournament Players Championship at the Sherwood Hills Golf Club here in Trece Martires, Cavite, on Friday.

Lascuña finally flaunted the form missing in his last two tournaments and pounced on Bibat’s poor iron game to move closer to redemption from stinging setbacks at ICTSI Open and Central Azucarera de Tarlac Open that cost him a crack for a fourth straight Order of Merit (OOM) title.

As Bibat sputtered with a twobirdie, two-bogey 72 after going bogey-free in the first 36 holes and Lascuña back in his old fiery shape to force a tie at 206, the chase for the top P650,000 purse in this final leg of the

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AR Eastern University (FEU) and Emilio Aguinaldo College gun for a sweep of their respective best-of-three series for third as action in the Shakey’s V-League and Spikers’ Turf resumes on Saturday at The Arena in San Juan City.

The Lady Tams face the University of Santo Tomas (UST) Tigresses at 12:45 p.m., looking for a follow-up to their 25-17, 26-17, 25-20 victory last week and clinch third-place honors in the Shakey’s V-League Season 12 Collegiate Conference presented

by PLDT Home Ultera.

The match will be aired live over GMA News TV Channel 11 with the six-time champion Tigresses out to rebound and force a sudden death.

Game Three, if necessary, will be played on October 4, according to the organizing Sports Vision.

The Emilio Aguinaldo College Generals are also seeking a repeat of their 25-18, 25-12, 2514 romp over the National College of Business and Arts for third place in the Spikers’ Turf Season I Collegiate Conference, also presented

by PLDT Home Ultera.

Both matches can also be viewed live via streaming on www.v-league.ph.

The two battle for third matches also serve as prelude to Sunday’s Game Two of the Shakey’s-backed V-League and Spikers’ Turf finals with Ateneo shooting for a sweep of both titles over National U. The Lady Eagles exploited the absence of Dindin Santiago-Manabat to take the opener, 25-19, 25-13, 25-23, while the Eagles trounced the Bulldogs, 25-17, 25-18, 25-19, to likewise move closer to a title sweep.

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JOSE RIZAL University’s Abdouladif Poutouochi blocks a driving Earl Scottie Thompson of Perpetual Help. KEVIN DE LA CRUZ

Lady Tamaraws seek to sweep duel for 3rd place

Alhamidi sneaked a punch into de Ocampo’s groin area that was not caught by the referees.

Defending champion Iran, as expected, topped Group A with a 3-0 record following its manhandling of Malaysia earlier, 122-42. Also advancing to the next stage in Group A were Japan (2-1) and India (1-2). Malaysia (0-3) was eliminated.

The tournament takes a break on Saturday.

The Philippines will meet Japan on Sunday, Iran on Monday and India on Tuesday. China, South Korea and Jordan also advanced from Group C, as well as Qatar, Kazakhstan and Lebanon. Joel Orellana

OP junior player Alberto Lim Jr. overpowered eight-time champion Johnny Arcilla, 7-5, 4-6, 6-1, to advance to the men’s singles finals of the 34th Philippine Columbian Association (PCA) Open-Cebuana Lhuillier Wildcard Event at the PCA clay courts in Paco, Manila, on Friday.

The 16-year-old Lim arranged a showdown with defending champion Patrick John Tierro, a walkover winner over Elbert Anasta who withdrew from the semifinals because of personal reasons.

Lim, who credited his overseas exposure for his improved game, started off aggressively against the 35-year-old Arcilla. After faltering

“This is going to be an exciting finish with at least five players closely bunched together,” said Lascuña, who pushed his 9-iron shot from 140 yards and missed the green on the 18th. “But the key here is a good start and I think a 67 will win it all.”

Rey Pagunsan also bounced into contention for the first time in a long, long while, as the long-hitting former amateur standout fired a 67 to join Elmer Salvador and Korean Hyeok Park Jun, who both had 71s, at 210, four adrift of Bibat and Lascuña.

Pagunsan could’ve move closer to the leaders but bogeyed the last hole and settled for a five-under card, while Jhonnel Ababa matched par 72 for a 211 followed by Rufino Bayron, who also carded a 72 for a 212.

Despite blowing a four-shot lead, Bibat remains upbeat of his chances to end a two-year title spell but

hopes to recover his iron game and, at the same time, keep his focus and touch off the tee and Sherwood’s putting surface.

“My driving and putting were actually okay. In fact, I made just 23 putts. But I struggled with my irons and hit just six greens,”Bibat rued.

For a while, Bibat appeared to have sustained his form coming off a solid 68 and 66, matching Lascuña’s birdie opening and pars in the next two. But as he scrambled to salvage pars in the next three, Lascuña picked up two birdies and after both bogeyed the difficult par-4 seventh, the dusky Davaoeño shotmaker moved within one with backto-back birdies against Bibat’s birdie on the eighth.

Another birdie on the par-3 11th tied Lascuña for the lead, although he fell behind again with a missed-green bogey on No. 14 before birdieing the next from 5 feet off a superb iron shot while watching Bibat fumbled with a bogey.

One-up, Lascuña matched Bibat’s pars in the next two but stumbled with a missed-green bogey on the 18th to drop to a share of the lead.

Mondilla, the third player in the featured threesome, kept within striking distance with a 35 start then came through with birdies on Nos. 14 and 15 to stay in the hunt for a second pro win after scoring a breakthrough in Canlubang last year.

Casas, who led in the first round with a solid 66 but reeled back with a second-day 73, also fueled his own title drive with a 69 that featured six birdies against three bogeys.

“It’s anybody’s game in the final round. Anything can happen, especially if the wind come into play,” said Casas, who won two tournaments last year, including the tour’s flagship tournament—The Country Club Invitational—and the Iloilo Challenge.

in the second set, he bounced back stronger, scoring two crucial break points to turn the match in his favor.

“Suwerte lang, maganda nilaro ko sa third set, ginawa ko lang lahat para manalo. Malaking tulong rin po ‘yung mga laro ko abroad, nakakakuha po ako ng confidence doon,” said Lim, winner of the India Junior 1 and Delhi International Tennis Federation Juniors tournaments in January and the China Junior 14 Nanjing in August.

The young ace, known for his explosive two-handed backhand, booted out Australian Open juniors doubles champion Francis Casey Alcantara in the quarterfinals of the event, supported by Cebuana Lhuillier, Puma, Dunlop, Head, Babolat, Compass/IMOSTI and Sarangani Rep. Manny Pacquiao.

Lim and Tierro earned automatic tickets to the main draw of the 2015 Manila ITF Men’s Futures Leg 2 starting on October 12, also at the PCA clay courts. The finals is set on Sunday.

Arcilla will have to go through the qualifying round for the Manila ITF along with Anasta, Alcantara, Marc Anthony Alcoseba and Ronard Joven.

2015 ICTSI Philippine Golf Tour became wide open with three more title-hungry players wheeling back into contention with under-par scores.

Orlan Sumcad sustained an impressive start of four birdies in the first eight holes and closed out with two birdies in the last four to negate his two bogeys for a 68, joining Cassius Casas and Clyde Mondilla, who both carded 69s, at 208, just two shots behind the joint leaders heading to the final 18 holes of the event sponsored by ICTSI.