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Thursday, November 9, 2017 Vol. 13 No. 29

PHL may tap foreign labor for ₧8-trillion infra projects

By Cai U. Ordinario

@cuo_bm

he government is open to the possibility of hiring foreign workers so it could complete its big-ticket infrastructure projects by 2022, the chief of the Department of Budget and Management (DBM) said on Wednesday.

At the sidelines of the 55th Annual Meeting and Conference of the Philippine Economic Society (PES), Budget Secretary Benjamin E. Diokno told the BusinessMirror that

tapping foreign labor would be the government’s “last resort.” The government aims to spend around P7 trillion to P8 trillion until 2022 to usher in the so-called

2.37M The number of unemployed Filipinos according to the July Labor Force Survey

golden age of infrastructure. The amount will cover some 75 flagship projects and 5,636 smaller projects in the Philippine Investment Program (PIP). “In the event the worst-case scenario [happens and we will need to] import labor, we will do it to finish Continued on A2

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Piketty, Marawi, Wadi Rene E. Ofreneo

LABOREM EXERCENS Thomas Piketty is the author of the 700-page Capital in the Twenty-First Century (2013), which has become a conversation piece among economists and politicians worldwide. The book is based on a singular thesis: the rate of return on capital in developed countries is persistently greater than the rate of economic growth in these countries. This, according to Piketty, is the most important explanation for the continuous concentration of wealth among the super-elites of the world over the past 250 years of industrial capitalism, and the inexorable widening of economic inequality between the rich and the poor. To correct this anomalous situation, Piketty proposes a progressive global tax on wealth. Continued on A12

Metro Pacific eyes water, infra projects in Indonesia By Lorenz S. Marasigan @lorenzmarasigan

AKARTA, Indonesia — After its initial P7.5-billion investment in an Indonesian infrastructure conglomerate, Metro Pacific Investments Corp. is keeping a keen eye on new opportunities here, specifically in water and tollways, which are the sectors that the Filipino company could apply its expertise on. David J. Nicol, who sits as the chief finance officer at Metro Pa-

₧6.9B The value of the new investment agreement signed by Metro Pacific and PT Matahari Kapital Indonesia

cific, said his group is interested in expanding its portfolio of investments outside the Philippines, starting with Indonesia, where it

recently closed a multibillion-peso acquisition deal. “We will focus on water and roads. We think those two sectors offer both the best investment return and the best outlet for value added by our people,” Nicol told the BusinessMirror. During a press briefing here, Metro Pacific Tollways Cor p. President Rodrigo E. Franco said his group sees “a lot of prospects” in Indonesia, and partnering with Nusantara—a company that has a similar business See “Metro Pacific,” A2

Informal-sector contribution to GDP at P5T

EXECUTIVE COMMITMENT The economist and mathematician who became a regulator as president at the Philippine Stock Exchange, Hans Sicat, is the incoming country manager at the Manila unit of the Dutch financial-services giant ING Group. The 30-year global capital markets professional, with stints in such prestigious houses of commerce as Citibank and Salomon Brothers, takes over on November 16 from Consuelo Garcia, who led ING Bank Manila operations for nine years. See story on A8.

Drilon set to push review of GCG law By Butch Fernandez

@butchfBM

e nat e M i nor it y L e ad er Franklin M. Drilon on Wednesday reiterated his readiness to file a resolution calling for a Senate review of the implementation of Republic Act (R A) 10149, which created the Governance Commission for Government-Owned and -Controlled

Corporations (GCG) to regulate GOCCs, when Congress reconvenes session on November 13. “Yes, if only to start an inquiry on the implementation of the GCG law,” Drilon told the BusinessMirror . “You can only do that if there is a resolution.” D r i lon , who aut hore d R A 10149, added that the upcoming Senate review of the GCG law will be carried out as “part of Congress

PESO exchange rates n US 51.2350

oversight functions.” The upcoming Senate scrutiny was triggered by reports on alleged self-dealing by Social Security System (SSS) officers handling the pension fund’s investment and the recent exposé of billions of pesos in fat bonuses and other questionable benefits granted to GOCCs. The resolution authorizing the GOCC inquiry is expected to lead Continued on A12

he Philippine Statistics Authority (PSA) on Wednesday said the unorganized or informal sector accounted for more than a third of the country’s total GDP of P14.48 trillion last year. Using current prices, PSA Assistant National Statistician Vivian Illarina pegged the contribution of the informal sector to the country’s economy in 2016 at P5.013 trillion. “The informal sectors in agriculture, hunting, fishery and forestry contributed P1.35 trillion of GDP in 2016; industry, P1.4 trillion; and services, P2.28 trillion,” Illarina said in a presentation during the 55th Annual Meeting and Conference of the Philippine Economic Society (PES). The PSA said it considered informal activities as those that

are part of the underground production, unobserved activities, illegal production and unrecorded production. The information was obtained from the Labor Force Survey; Census of Philippine Business and Industry; Annual Survey of Philippine Business and Industries; and Family Income and Expenditure Survey. Other data sources included the Census of Agriculture and Fisheries; other surveys, livestock and poultry survey, survey of municipal fishing, and survey of jeepney operators; and administrativebased data. In a presentation during the PES Conference, Ma. Katrina PeridaTrayvilla of the Department of Labor and Employment’s Bureau of Workers with Special Concerns

said around 35.1 percent of the total 40.83 million labor force were “own account workers,” or self-employed. At the sidelines of the conference, National Economic and Development Authority (Neda) Undersecretary Rosemarie G. Edillon said the “informal or unorganized sector” does not only include ambulant vendors but also professionals, such as doctors. Edillon said self-employed Filipinos have control over their own schedules. If they have high incomes, this enables them to be more resilient in the face of economic shocks. “[Having an] unorganized sector is really not necessarily bad. For instance, practicing physicians, they’re also part of the organized See “Informal sector,” A2

n japan 0.4497 n UK 67.4714 n HK 6.5648 n CHINA 7.7167 n singapore 37.5678 n australia 39.1589 n EU 59.3916 n SAUDI arabia 13.6594

Source: BSP (8 November 2017 )

BMReports BusinessMirror

A2 Thursday, November 9, 2017

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PHL may tap foreign labor for P8-trillion infra projects Continued from A1

projects. We will not be stymied by the lack of workers,” Diokno said. However, the DBM chief said he is confident that, no matter the size of the government’s infrastructure program, the Philippines will have sufficient manpower to complete mega structures. Diokno noted that some 1.5

million Filipinos join the labor force every year, and this is partly due to the steep population growth in previous years. He said the Philippines produce about 2 million babies a year. He added that, apart from the new entrants to the work force, there are overseas Filipino workers who would like to come home and work in the country. According

Metro Pacific. . . Continued from A1

model with his group—will prove to be a sound decision. “While we represent the tollroads sector, we have—as part of Metro Pacific Investments—our experience and expertise in concessions in water, power generation and distribution, light rail and even health care,” he said. Aside from these, his group may also vie for other infrastructure deals, such as international gateways and seaports. “We would be looking at opportunities at airports and seaports and all the other areas of infrastructure. We’ve committed to do these investments through a company that we recently formed in PT Metro Pacific Tollways Indonesia and though our partnership with Nusantara,” Franco said. His group signed last Friday a P6.9-billion agreement with PT Matahari Kapital Indonesia to acquire PT Matahari’s shares in Nusantara, a listed company in Indonesia. This adds to the initial P600 million that it invested earlier this year. So far, this is the largest international venture that the tollways arm of Metro Pacific has invested in. It also has interests in expressway operators in Thailand and Vietnam. Employing roughly 700 people over its five business sectors, Nusantara provides services

to Diokno, they can consider jobs in the government, construction sector or allied industries. “What will happen is you will offer them higher wages. So wages will even improve in the Philippines,” Diokno said. The DBM chief also said many of the big-ticket infrastructure projects will not require many workers, mainly because of the technology

to more than 103 million customers, 550,000 households, 103 million vehicles, more than 210 vessels. It also connects millions of people through communications. “We at Metro Pacific have been trying to establish a Pan-Asean infrastructure footprint and we are very pleased to have made the investment in Nusantara, because we want to use that as our way of participating in the infrastructure development in Indonesia,” Franco said. Nusantara President Danni Hasan said his group is open to the prospect of having Metro Pacific as partner in future infrastructure deals, explaining that synergies between the Filipino and Indonesian companies may be formed due to their proven track record in the infrastructure scene in both the Philippines and Indonesia. “We will be mirroring what we have now. You should understand that coincidently Metro Pacific is very similar to us,” he said. “Deals in the power and water sector are already in our business plan.” Nicol noted that his group will study all prospective deals in each sector, and noted that the company will be ready to pump in more investments should the opportunity arise. “Spending depends on good opportunities,” he said. Metro Pacific is an infrastructure holdings company listed in the Filipino bourse. It has interests in power, light rail, water, tollways and hospitals.

needed to complete the projects. One such project is the P335.59billion Metro Manila Subway Phase 1, a 25-kilometer underg rou nd m a ss -t ra ns por t at ion system, which will require new drilling technology. Once completed, the project will connect major business districts and government centers. It is expected to serve around 370,000

passengers per day in its opening year alone. “Our projects are not really labor-intensive like the subway. You don’t need a lot of workers there. We need more technology,” Diokno said. Based on results of the July Labor Force Survey (LFS), there are 6.54 million underemployed and 2.37 million jobless Filipinos.

LFS results showed underemployed persons who worked for less than 40 hours in a week are called “visibly underemployed persons.” They accounted for 51.6 percent of the total underemployed in July and 54.9 percent a year ago. The unemployment rate in July, meanwhile, was estimated at 5.6 percent. The unemployment rate the previous year was 5.4 percent.

‘No debate on drug war in Duterte, Trump meet’ policemen who kill individuals as a result of illegal engagement, is the correct legal posture to take,” Roque added. Roque was referring to Duterte’s pronouncement that he will not tolerate policemen who are involved in illegitimate police operations and vigilante-style executions. The President made this statement after his war on drugs faced one of its toughest criticisms to date following the death of minors Kian Loyd de los Santos and Carl Angelo Arnaiz allegedly at the hands of police forces. “It is consistent with both constitutional and human-rights law,” Roque said,

Informal-sector. . . sector. So you have really a range. I think what is sorely missing in the unorganized sector is the level of protection of workers,” Edillon said. The Neda official said one of the ways the government is addressing this gap is through the efforts of

referring to Duterte’s pronouncement that he will not tolerate police abuses. However, the Palace official is confident Trump will not confront the President on the war on drugs, as the the US leader has expressed backing to Duterte’s flagship campaign. “I don’t think it will be a contentious point between the two presidents. To begin with, President Trump has said that President Duterte has done the right thing in embarking on this war on drugs,” Roque said. Roque added Duterte and Trump share the same “thinking, language and demeanor,” so it is safe to say that they agree with

Continued from A1

the Social Security System (SSS), which allows self-employed workers to i nd iv idu a l ly pay for their benefits. Under the rules of the SSS, selfemployed workers can become members of the SSS and contribute on a

Continued from a12

the policies of one another. He said not even the Chief Executive’s pursuit of an independent foreign policy will get in the way of their bilateral meeting. “It’s going to be very interesting because you have two individuals who are very much alike in their thinking, in their language and even in their demeanor, meeting each other for the first time,” Roque said. The President and Trump are expected to meet for the first time in the Asia-Pacific Economic Cooperation summit in Danang, Vietnam, but their bilateral meeting will take place in Manila during the 31st Asean summit. Elijah Felice E. Rosales monthly or quarterly basis. However, self-employed workers who are more at risk of economic shocks are those who have low incomes. Edillon said the problem with this is that the country’s data is not disaggregated enough to be able to determine the needs or interventions to help specific informal-sector groups. Cai U. Ordinario

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PNP reports decline in crime incidents for last 10 months By Rene Acosta @reneacostaBM

he Philippine National Police (PNP) reported a slight decline on crime incidents for the last 10 months as a result of the continued intelligence-driven operations against organized crime groups and street-crime gangs. PNP Spokesman Chief Supt. Dionardo B. Carlos said the total crime volume (TCV) dipped to 452, 204 from January to October this year, compared to the 493,912 incidents that were recorded during the same period last year. The decrease represented 8.44 percent. Carlos also added a 20.56-percent reduction in index crime (IC) cases was noted during the same period, as gleaned from the Crime Information Reporting and Analysis System of the PNP Directorate for Investigation and Detective Management. T he nationw ide TC V of 452,204 comprised 94,565 IC cases and 357,639 non-index crime (NIC) cases. Carlos said that notable decreases in crime volume were recorded in all regions except in Southern Luzon (Calabarzon) and Northern Mindanao, where slight increases in NIC were recorded. Across the country, all regions posted marked dec line in IC cases of murder, physical injury, robbery, theft, rape, carjacking

and cattle rustling. Overall, theft cases were most prevalent, and made up 32.44 percent of all the recorded IC incidents, while physical injury comprised 28.44 percent, and robbery, 14.75 percent. Carlos said “corresponding decreases were noted in murder, homicide and physical injury cases during the period.” Meanwhile, the suspect in the killing Grab driver Gerardo Maquidato Jr. in Pasay City has surrendered to the PNP and was brought to Camp Crame on Wednesday. Narc Tulod Delemios, alias “Miko” and “Real Nikolo Delemios,” who has been the subject of an intense manhunt operations by the police, yielded at around 9 p.m. on Tuesday, according to the Criminal Investigation and Detection Group (CIDG). Combined elements from the CIDG Zambales, CIDG National Capital Region-South, Southern Police District and Pasay City Police apprehended the suspect at his residence in Kaymito Street, Barangay Santo Niño, Pasay City, and brought him to Camp Crame. Delemios was identified as the suspect in the killing of Maquidato, who booked him as his passenger but, eventually, ended up being killed. Maquidato’s Toyota Innova was recovered by the operating policemen at Barangay Matatalaib, Tarlac City.

Editor: Vittorio V. Vitug • Thursday, November 9, 2017 A3

Paltry P30K and P10K bail for Noynoy in connection with Mamasapano fiasco By Jovee Marie N. dela Cruz

@joveemarie

he Office of the Ombudsman on Wednesday filed before the Sandiganbayan charges against former President Benigno “Noynoy” S. Aquino III in connection with the botched Mamasapano operation in 2015, which killed 44 members of the Philippine National Police-Special Action Force (PNP-SAF).

Ombudsman Conchita C. Carpio-Morales said Aquino will face trial for violating Section 3(a) of the Anti-Graft and Corrupt Practices Act, or Republic Act (RA) 3019, and Usurpation of Official Functions under Article 177 of the Revised Penal Code (RPC). The charges were filed after Morales denied the motion for reconsideration filed by Aquino. With this, Morales also junked the motion of complainant Volunteers Against Crime and Corruption (VACC) to charge Aquino of 44 counts of reckless imprudence resulting in homicide. Morales, however, recommended bail for Aquino at P30,000 for graft and P10,000 for usurpation of official functions. It will be recalled that, in Jan-

44 The body counts of PNPSAF troopers who perished in the aftermath of the Mamasapano massacre in 2015 during Aquino’s regime

uary 2015, almost 400 highly trained commandos belonging to the elite SAF unilaterally launched Oplan Exodus to serve standing

warrants of arrest against internationally wanted terrorists, Zulkifli Bin Hir, alias Marwan, and Ahmad Akmad Uson in Mamasapano, Maguindanao. In the ensuing firefight that lasted for several hours, 44 SAF troopers died in the line of duty. According to the Ombudsman, “President Aquino’s act of utilizing the services of the preventively suspended [Alan] Purisima for Oplan Exodus prior to and during its implementation, despite the designation of an officer in charge of the PNP, caused Purisima to perform under pretense of official position, the acts pertaining to the PNP chief without being lawfully entitled to do so, in violation of Article 177 of the RPC on Usurpation of Official Functions.” “President Aquino’s act of utilizing the services of Purisima for Oplan Exodus under the aforesaid circumstances constituted an act of persuading, inducing or influencing another public officer to perform acts constituting a violation of the order of preventive suspension and a commission of usurpation of official functions in violation of Section 3(a) of RA 3019,” the Ombudsman said. Earlier, Aquino said all the actions he carried out during the briefing for Oplan Exodus and its implementation were within the bounds of his powers and functions as the President of the Philippines and chief executive. “There is nothing irregular,

much less illegal, about his act of utilizing all the resources available at his disposal, including sourcing information and inputs from anyone—whether they are in active service or not,” Aquino said in his earlier motion. “His only intent was to utilize the expertise of Purisima, and not for Purisima to command or plan anything, but just to help him understand what [former SAF director Getulio] Napeñas a nd h is people were t a l k ing about and that he was a passive receiver of information regarding an on-going operation,” the motion added. Under Section 3(a) of RA 3019, it shall be unlawful for any public officer to persuade, induce or influence another public officer to perform act constituting a violation of the rules and regulations duly promulgated by competent authority or an offense in connection with the official duties of the latter. Meantime, under Article 177, Usurpation of Authority is committed by any person who shall knowingly and falsely represent himself to be an officer, agent or representative of any department or agency of the Philippine Government, or who, under pretense of official position, shall perform any act pertaining to any person in authority or public officer of the Philippine Government, or any agency thereof, without being lawfully entitled to do so.

Ex-Customs exec seeks dismissal of drug BI readies for Asean raps, blames PDEA for ‘faulty’ complaint leaders’ meeting T T By Joel R. San Juan @jrsanjuan1573

HE former head of the Bureau of Customs Intelligence and Investigation Service (BOCCIIS) on Wednesday claimed that the Philippine Drug Enforcement Agency (PDEA) has filed a “faulty” criminal complaint in connection with the botched attempt of smuggling P6.4 billion worth of shabu into the country in May. Due to this, resigned CIIS Chief Col. Neil Anthony Estrella expressed confidence that he and the other personnel of the CIIS charged with graft and conspiracy for smuggling the drug shipment would be exonerated by the justice department. Estrella insisted that the CIIS personnel tagged in the smuggle try were innocent and were actually instrumental in the seizure of the drug shipment. He added the faulty complaint may lead to the exoneration, not only of the CIIS members but of those actually responsible for the drugs shipment, including Customs broker Mark Taguba and the shipment’s consignees. During the continuation of the preliminary investigation on the case on Wednesday, Estrella said the PDEA failed to show that the CIIS personnel charged had been involved in the

drugs shipment passing through the BOC, the primary rationale of the PDEA to establish that the BOC officials charged were involved in a criminal conspiracy as claimed by PDEA Agent Norman Balquedra in his reply to the BOC officials’ counteraffidavits on November 3. “While the complainant and his principals style themselves as immaculate antidrug crusaders elsewhere, their lack of seriousness to craft a complaint worthy of this honorable panel’s time and attention betrays their true colors and ulterior motives,” Estrella said in his five-page rejoinder to the complainant’s reply. Estrella noted the CIIS does not have a hand in the approval or processing of shipments through the BOC, much more in designating if a shipment that passes through the Customs green lane inspection is waived. “Our mandate is to investigate and seize contraband outside the Customs territory. So why are we, who, with the NBI [National Bureau of Investigation] and the PDEA are responsible for successfully conducting one of the largest drug busts in history, now included in this criminal case?” he added. Estrella said Balquedra’s reply failed to rebut the facts presented in

the CIIS officials’ counteraffidavits disproving the numerous “falsehoods” in the PDEA’s complaint. This includes PDEA’s charge that the CIIS usurped the former’s authority over drug investigations. Estrella stressed that such claim was belied by the certificate of coordination issued by PDEA on May 26, or the day of the seizure, to the BOC affirming that the drug bust had been conducted under the PDEA’s ambit. “All told, the complaint against me should, as it must, be dismissed not only for lack of probable cause, but also for utter lack of merit,” the rejoinder added. Estrella also welcomed the Ombudsman’s plan to probe the drugsshipment case, as he expressed confidence that a full and impartial investigation would lead to the CIIS officials’ exoneration. But Estrella lamented that, because of the falsehoods peddled by the PDEA in its complaint, those directly responsible in the shipment may likely be exonerated as well. Estrella accused Balquedra and former PDEA Deputy Director Wilkins Villanueva of having committed perjury in their statements before congressional panels probing the drug shipment, and in the PDEA complaint affidavit filed with the DOJ.

“ We w i l l f i le c r i m i n a l c a ses against the responsible PDEA officials, and they should be held ultimately responsible if the cases against those directly involved in the shipment are dismissed,” Estrella said. He added that, contrary to the PDEA complaint, CIIS had acted with propriety and integrity. Contrary to its claim, Estrella said PDEA personnel did not raise any objection during the operation to seize and safeguard the drugs, and to conduct a controlled delivery of 100 kilos of shabu to the consignee warehouse to arrest the ultimate consignees of the shipment. “In fact, they readily gave the BOC and NBI a certificate of coordination that we were acting under the PDEA, and they themselves oversaw the operation for the controlled delivery and to safeguard the drugs along with the NBI. The chain of evidence was never broken, contrary to the PDEA’s complaint. They even held a news conference to announce this successful operation and claim it as their own,” Estrella added. The PDEA complaint, he added, was inaccurate when it charged that BOC personnel had coddled warehouse owner Richard Chen and allowed him to escape justice.

HE Bureau of Immigration (BI) on Wednesday announced that it has deployed some 50 immigration officers to augment the agency’s manpower in the country’s international airports ahead of next week’s Association of Southeast Asian Nations leaders’ summit. Immigration Commissioner Jaime Morente assured that personnel are ready to perform their tasks to conduct arrival and departure formalities for thousands of foreign delegates who will be arriving at the country’s airports. Morente explained the agency needed to beef up its personnel assigned at international airport, where the bulk of the Asean delegates, including heads of states, will be arriving. “It is very imperative that we have more than enough personnel manning our airports during one of the most important and momentous international gatherings in our nation’s history,” Morente said. BI Chief Personnel Officer and Acting Spokesman Grifton Medina said many of those who were redeployed to the airports were personnel assigned from various BI field offices and seaports nationwide and from the BI main office in Manila. They also include some top and senior BI officials who are ready to conduct immigration formalities for the Asean delegates if the need arises, Medina said. Likewise, BI Port Operations Division Chief Marc Red Mariñas said that special teams of immigration officers were already formed to process Asean delegates and other foreign visitors who will be arriving aboard chartered or special flights. The Immigration Airport Operations Section headed by Cecille Jonathan Orozco has also been instructed to monitor the attendance of immigration officers at international airports next week and ensure that all immigration counters are adequately manned. Several immigration supervisors were also dispatched to help oversee and facilitate the proper and orderly processing of the arriving foreign dignitaries and delegates. Twenty-one world leaders are expected to arrive in the country next week, while advance parties and members of their delegations have already started arriving since last week. Joel R. San Juan

Economy

A4 Thursday, November 8, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

Senate measure proposes ‘lifetime’ ownership of cell phone numbers By Butch Fernandez @butchfBM

ongress is in the process of crafting a law allowing cell phone owners to permanently retain their mobile number, even if they switch network providers. “Our phone numbers are already an extension of people’s lives,” said Sen. Sherwin T. Gatchalian, principal author of Senate Bill (SB) 1237, to be known as the Mobile Number Portability Act. “This is a straightforward and exciting bill that will empower consumers.” He added that the bill also “aims to break the duopoly in the telecom industry and spur efficiency by allowing a third or even fourth telecom players to enter the Philippine market.” Gatchalian, who chairs the Senate Economic Affairs Committee, expects early passage of the law will also encourage competition among telco players and, in turn, “generate better services with the best value for money.” The lawmaker recalled that way back in 2008, the National Telecommunications Communications (NTC) had already tried to adopt a mobile number portability scheme in the market, but this was shelved due to “high costs of porting mobile numbers” and left unresolved the question as to who would shoulder the costs. During Tuesday’s committee hearing, however, it was reported to the senators that technological advancements since then may have lowered the cost of mobile portability operations, making it essentially viable. “Our technology has come a long way since 2008,” noted Gatchalian, adding that “prices of the software we need to operate the porting of mobile numbers have gone down.” Still, he did not rule out the possibility that “consumers may shoulder some of the costs, but we are currently consolidating studies and frameworks to make it completely free for all subscribers.” According to Gatchalian, the benefits of the mobile number portability have long been recognized by various developed countries, such as Singapore, Germany and Canada, as well as developing countries like Afghanistan and Ecuador.

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Govt renews courtship to private sector investors for BBB projects

By Cai U. Ordinario

@cuo_bm

he national government remains open to accepting unsolicited proposals from private-sector entities, provided they could begin project implementation in less than two years. In the 55th Annual Meeting and Conference of the Philippine Economic Society (PES), the Department of Budget and Management (DBM) and the National Economic and Development Authority (Neda) assured that the private sector have a place in the government’s huge infrastructure initiatives. Budget Secretary Benjamin E. Diokno said the Duterte administration does not want to con-

tinue the practice of accepting “premium payments” from the private sector for Public-Private Partnership (PPP) Program. He said this was “taxation without representation.” “Let me disabuse your mind that we have abandoned PPPs. We have, in fact, provided more options. We are entertaining unsolicited proposals that was not entertained before,” Diokno said. “We are challenging the private

sector. If you can start a PPP project within 18 months, then it’s yours,” he added. Socioeconomic Planning Secretary Ernesto M. Pernia said the 18-month window to begin projects was based on the experience in building the Clark International Airport. Pernia reiterated that the government intends to finance the P7-trillion to P8-trillion worth medium-term infrastructure program through official development assistance (ODA) funding, the national budget and PPPs, particularly unsolicited proposals. He said the reservation of the Duterte administration to PPPs stemmed from the delays experienced by projects. Diokno added this includes the 4-kilometer Daang Hari-Southern Luzon Expressway Link Road that, according to him, took five years to complete. Pernia said the government is “experimenting” on having its flagship projects initially financed

2 years or less The time frame given by the Duterte administration to private-sector entities to commence with the implementation of unsolicited project proposals

through ODA and the General Appropriations Act (GAA) or national budget, and having the private sector take over the operations and maintenance of the projects. “We are open to a mix of funding sources, private, ODA or government. There is really no rule of how much PPP, ODA, or GAA [can be used for infrastructure projects],” Pernia added. As of June 2017, the Neda estimates that 53 of its 75 flagship projects could be worth P1.58 trillion. The other 22 projects still do

not have cost estimates. This is the reason the government put together a list of 70 projects in the “Build, Build, Build” (BBB) program. According to the government’s web site, the BBBs consist of a mixed bag of projects ranging from roads, bridges, railways, bus-rapid transits (BRT), to the Philippines’s first subway, among others. Based on the government’s launch of the BBBs in November 2016, the list included unfinished projects that were started by previous administrations. Around 20 projects included in the BBBs are also included in the flagship projects. These include the Mindanao Rail Project Phase 1 or the P35.26-billion Tagum Davao Digos Segment; the P2.8-billion Metro and Light Railways Common Station Project; and the two BRT projects in Metro Manila; the P37.76-billion Line 2 or the Edsa/ Central line; and P4.79-billion Line 1 or the Quezon Avenue line.

House bill for ARB full insurance coverage up for plenary deliberation By Jovee Marie N. dela Cruz @joveemarie

Christmas bazaar

A housewife browses through an extensive inventory of Yuletide decorations at one Christmas bazaar stall along Dapitan Street in Manila, where such seasonal ornaments are sold yearly at reasonable prices. Roy Domingo

IT-BPM ready to pour investments amid onset of artificial intelligence

NAPC’s Maza to govt: Utilize every cent of Yolanda rehabilitation funds

he Philippines’s information technology and business-process management (IT-BPM) industry is ready to invest on artificial intelligence (AI) to seize opportunities from digital technology. Contact Center Association of the Philippines (CCAP) President Jojo Uligan said on the sidelines of International IT-BPM Summit on Tuesday that IT-BPM firms stand ready whenever clients would demand for AI to increase productivity and improve efficiency. Uligan said the introduction of AI into their businesses both comes from the industry and the clients. He added that some companies are offering AI to their clients as upgraded services since it could improve customer experience, faster response time, and increase productivity. “[When] everyone is shifting the way they do business, all these digital transformation, digital journey of clients…[it] very important for us to be ready. When the customers wanted it, we can [provide] it,” the CCAP official said. But since companies will be heavily investing in AI, it is expected that it will initially slowdown firms’ profitability. “Our profitability will definitely go down before it goes up because we will be investing on [new] technology, on people,” Uligan said. He added that the IT-BPM industry, particularly the contact center segment, is pushing for initiatives in retooling, reskilling and reeducating its talents as the industry moves into AI. Uligan said that with AI, those transactional and repetitive type of work would be automated, hence, the need to upgrade the skills of talents who are doing those jobs. PNA

resident Duterte’s antipoverty chief has urged the government to “utilize every cent of the rehabilitation funds” for Eastern Visayas so as to fast-track the reconstruction of communities wrecked by Supertyphoon Yolanda. In a news statement issued on Wednesday, National Anti-Poverty Commission (NAPC) Lead Convener Liza L. Maza said the Duterte administration should not forget about the victims of Yolanda, and must give it all in helping them recover four years after the calamity. “Government agencies must utilize every single cent of the rehabilitation funds for Eastern Visayas to hasten poverty alleviation in communities wrecked by typhoon Yolanda in 2013,” Maza said. Maza added the government has yet to tap much of the allocation for rehabilitation for Yolanda survivors. She cited the recent disclosure of the Philippine Coconut Authority that some P2.45 billion has not been properly accounted for. “One can just imagine the impact of Yolanda on the livelihood of the region’s poor,” she said. “There is already a social volcano waiting to explode in our communities because these problems were not immediately resolved,” the antipoverty chief added. Maza added the NAPC is now working together with the Leyte Center for Development, a disaster response and development-oriented nongovernmental organization, in gathering

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By Elijah Felice E. Rosales

@alyasjah

There is already a social volcano waiting to explode in our communities because these problems were not immediately resolved.”—Maza

information on the ground on the present condition of farmers, fishermen and workers. “While we are already coordinating with other government agencies to give full assistance to the victims of Yolanda, people’s participation in disaster risk reduction governance remains key to fast and full recovery of our communities,” she said. Meanwhile, Malacañang said the Filipino people should not forget the “lessons learned” from the calamity considered to be one of the deadliest in national history. “As we commemorate the deadliest typhoon that hit the Philippines on record, and offer prayers to those who lost their lives, we also keep in mind the lessons learned brought by such great tragedy,” Presidential Spokesman Harry L. Roque Jr. said in a separate news statement. “Yolanda is a story of faith and hope that characterizes our people as it is an account of ‘tapang at malasakit’ (courage and compassion) that we must demand from our leaders,” Roque added.

he House Committee on Agrarian Reform has endorsed for plenary approval a measure granting full insurance coverage to all qualified agrarianreform beneficiaries (ARBs) of the Comprehensive Agrarian Reform Program (CARP). This, after the House Committee on Appropriations has passed the funding provision of the unnumbered substitute bill that would provide ARBs with the much-needed insurance protection against compensable losses arising from natural calamities, plant diseases and pest infestation of their crops. Rep. Rene L. Relampagos of the First District of Bohol, chairman of the House Committee on Agrarian Reform, said the bill is expected to be deliberated upon in the plenary when session resumes this month. The unnumbered substitute bill of House Bills 229 and 2177 was authored by Deputy Speaker Rep. Eric D. Singson of the Second District of Ilocos Sur and Rep. Vilma Santos-Recto of the Sixth District of Batangas, respectively. The bill seeks to amend Section 37 of Republic Act (RA) 6657, as amended, or the Comprehensive Agrarian Reform law, so that “The state shall adopt the integrated policy of support services to all ARBs. To this end, the Department of Agrarian Reform [DAR], the Department of Finance and the Bangko Sentral ng Pilipinas shall institute reforms to liberalize access to credit by agrarian-reform beneficiaries. The Presidential Agrarian Reform Council shall ensure that support services for ARBs.” The support services to ARBs shall also include full insurance coverage to all qualified ARBs as defined in RA 1000 or the “Agri Agra law,” who are actually tilling the land and capitalizing on crops as certified by the DAR. Compensable losses include natural calamities such as typhoon, flood, drought, earthquake, volcanic eruption and frost, and other destructive natural phenomena such as heat and hot wind; plant diseases caused by pathogens, bacteria, fungi, viruses, virus-like pathogens and other similar foreign bodies; pest infestations caused by

nematodes, insects, mites and spiders, millipedes and centipedes, symphylans, slugs and snails, sow bugs and pillbugs, parasitic higher plants and other parasites; and loss of life and/or injury to the qualified ARB due to accident or to any of the aforementioned causes. The following crops are covered by this section: palay; corn; sugarcane; high-value crops as defined in the “High-Value Crops Development Act of 1995,” coconut; tobacco; aquaculture; livestock; and non-crop agricultural assets. The bill also mandates the secretaries of the Department of Agriculture (DA) and of the DAR to include in their agency programs the needed operational requirement of the act. The bill said the initial funding of the Act shall be charged against the allocated funds by the General Appropriations Act (GAA) to the Philippine Crop Insurance Corp. (PCIC) for the Registry System for Basic Sectors in Agriculture (RSBSA). It added that, thereafter, projections of the premium requirement shall be submitted by the PCIC, the DA and the DAR to the President, and shall be included in the annual GAA. For his part, Relampagos said the measure will promote a positive impact on the lives of farmer-beneficiaries and will ensure the efficiency of support services to be accorded by the DAR for the ARB sector. “In this manner, it will take pressure off the ARBs in managing risks arising from the production of commodities, price variability and rise against poverty. The concerns of ARBs in situations beyond their control like the increasingly unpredictable weather patterns and adverse weather conditions brought about by the intensifying climate change and weather uncertainties will be addressed accordingly,” Relampagos said. The bill, he added, would strongly complement the agricultural insurance for ARBs participating in the agrarian reform production credit program and the credit assistance programs for program beneficiaries development in the financing programs implemented by the DA, DAR and Land Bank of the Philippines, which cover all the regular insurance as implemented by the PCIC.

Agriculture/Commodities BusinessMirror

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Editor: Jennifer A. Ng • Thursday, November 9, 2017

DA to review proposed meat-inspection fee hike

By Jasper Emmanuel Y. Arcalas

@jearcalas

he Department of Agriculture (DA) will set up a technical working group (TWG) that will scrutinize the proposal of the National Meat Inspection Service (NMIS) to increase its meat-inspection fees.

Agriculture Secretary Emmanuel F. Piñol said the goal of the TWG is to determine a “reasonable” rate hike that would be acceptable to both the NMIS and stakeholders in the livestock and poultry sectors. Piñol made the pronouncement following his meeting with stakeholders in the livestock sector on November 8. “We agreed to form a TWG. It will be composed of the NMIS and stakeholders in the livestock sector,” Piñol told reporters in an interview on Wednesday. “The stakeholders are not against the idea of increasing the fees. As to how much [would be the increase], that will be

VEGETABLE-CULTIVATION TRAINING Participants to the SM

Foundation Kabalikat sa Kabuhayan Rural Farmers’ Training Program in Barangay San Pablo, Ormoc City held their Harvest Festival to signal the completion of their 12-week training program. The vegetable farmers were given lessons on off-season farming on high-value crop with natural farming technology with the Japanese EM Technology, a natural and probiotic technology developed in Japan that involves microorganisms beneficial to crops. The farmers’ training was held in a demo farm owned by Vice Mayor Leo Carmelo Locsin. The harvest festival and graduation ceremony held at the Barangay San Pablo covered court were attended by 162 graduates. They are victims of the earthquake that hit Ormoc and Supertyphoon Yolanda. They were recommended by the Department of Social Welfare and Development to be beneficiaries so that they can be given an alternative source of livelihood. Present during the harvest festival and graduation ceremony were Brgy. Chairman Estrella Cortez, Officer in Charge Provincial Agriculturist Luis Fernandez, Regional Director Field Office 8 Restituto Macuto, SM Ormoc Mall Manager Jane Losaria, Savemore Tacloban Supervisor Nestor Pilito, City Councilor Tomas Serafica and City Agriculturist Maria Elena Mendoza. SM FOUNDATION PHOTO

Govt keen on forging agri trade deal with Papua New Guinea

he government is planning to hammer out an agricultural trade agreement with Papua New Guinea that would involve a possible compromise on tuna processing, according to Agriculture Secretary Emmanuel F. Piñol. Piñol said the agreement will be discussed during a bilateral meeting between officials of the Philippines and Papua New Guinea at the sidelines of the Asia-Pacific Economic Cooperation meeting in Vietnam on November 9. At the sidelines of the launching of the Department of Agriculture’s Karne, Isda Supply Supporta sa Masa at Ekonomiya project on Wednesd ay, Piñol added one of the issues that Manila wants to raise is the plan of Port Moresby to monopolize the processing of tuna caught by Filipinos in Papua New Guinea waters. “We have a problem with Papua New Guinea right now. Before, Filipinos can catch tuna in Papua New Guinea and process it in the Philippines. Now, their government wants all tuna caught in their waters to be processed in Papua New Guinea,” he said. “If that pushes through, then our tuna-processing industry here would be affected. The request of the stakeholders in the tuna industry is for them to be allowed to process part of their catch in the Philippines,” Piñol added. He noted that Papua New Guinea’s plan to monopolize the processing of tuna caught by Filipino fishers could result in the displacement of factory workers here. According to Piñol, some 40 percent of the Philippines’s tuna catch comes from Papua New Guinea.

The Philippines has access to the tuna-rich High Seas Pocket 1 area, which is bounded by the exclusive economic zones of Micronesia to the north and east, Palau to the west and Indonesia and Papua New Guinea to the south. Manila is hoping that Port Moresby would agree to a compromise and defer its plan. Piñol added that the Philippines is keen on helping Papua New Guinea develop its rice sector. “Papua New Guinea has long been asking the Philippines to help them in their effort to produce more rice because they are dependent on imports despite their vast land area,” he said. “So [rice production] would also be taken up during the bilateral meeting. The Philippines will help Papua New Guinea develop their rice sector in consideration of their leniency to our tuna stakeholders,” Piñol added. He also said Filipino rice producers w ill be encouraged to venture into Papua New Guinea’s grains sector. “The population of the Philippines is growing at such a rate that there would come a time when we would need more areas for rice farming. Papua New Guinea is interested in developing their rice sector but they lack the right technologies,” Piñol said. “The moment Filipino investors are able to satisfy Papua New Guinea’s demand for rice, they can consider bringing into the Philippines rice produced there,” he added. Papua New Guinea has 49 million hectares of land, but it has a population of only 7 million. Jasper Emmanuel Y. Arcalas

discussed by the TWG.” Stakeholders in the livestock sector, including hog raisers belonging to the Pork Producers Federation of the Philippines (ProPork), are opposing the government’s plan to increase meat-inspection fees, as this could make pork more expensive. ProPork President Edwin G. Chen earlier told the BusinessMirror that the proposal of the NMIS to increase its antemortem and postmortem fees will only burden consumers. “There is no reason for this rate hike. They cannot use inflation as a reason for it,” Chen said. “They will only burden the consuming public and accelerate inflation. There is no

justification for the rate hikes. For what they will use the money?” Piñol also disclosed that stakeholders were mum when he pointed out that nobody opposed the importation of meat products from Brazil due to the threat of foot-and-mouth disease (FMD) before the government banned shipments from the Latin American country. “There was no comment on my observation that we’ve been importing from Brazil since 2012, and that no one has raised this issue before,” he said. “The issue here is not whether we should import from Brazil. The issue here is whether we should lift the suspension or not.” Piñol added the government would first focus on addressing the salmonella issue, which prompted the DA to slap a temporary ban on Brazilian meat imports. “The technical team, which inspected meat plants in Brazil, has already made its recommendation, and this will be submitted to the accreditation review board [ARB]. The ARB will submit the recommendation to me once I get back from Vietnam,” he said. The DA chief will join President

Duterte who will attend the Asia-Pacific Economic Cooperation meeting in Vietnam on November 9. The lifting of the temporary ban on meat imports from Brazil will depend on the recommendation of the ARB, according to Piñol. A source who is privy to the results of the inspection on foreign meat establishments (FMEs) in Brazil told the BusinessMirror that the FMEs were found to be “compliant” with Philippine standards. The source said 23 FMEs in Brazil were inspected by the DA mission team from September 18 to 29. Of the total number of FMEs, 10 were found to have been involved in the shipment of meat products tainted with salmonella to the Philippines in July. Earlier, ProPork warned against lifting the ban on meat imports from Brazil, which has been accorded the FMD-free but with vaccination status by the World Organisation for Animal Health. The group argued that importing meat products from Brazil may “endanger” the local hog sector and the country’s “FMD-free without vaccination” status.

PHL on track to regaining bird flu-free status by year-end

he Philippines may regain its bird flu-free status before the end of the year, as the government would soon be able to complete the roll out of all the necessary measures to manage the avian-influenza (AI) virus. The Bureau of Animal Industry (BAI) is planning to notify the World Organisation for Animal Health (OIE) that the Philippines is already bird flu-free by December 20, more than four months after the virus was discovered in some towns in Central Luzon. “International bodies like the OIE [requires official report] so we can regain our bird flu-free status. Our target is to inform them by December 20,” BAI Officer in Charge Ronnie D. Domingo told reporters in an interview at the sidelines of the launching of the Department of Agriculture’s (DA) Karne, Isda, Supply Suporta sa Masama at Ekonomiya project on Wednesday. “We will inform them that we have already conducted disinfection procedures and have controlled the

movement of animals,” Domingo added. The BAI official said the OIE recognizes a country as bird flu-free once it does not report any new outbreaks 90 days after the last disinfection of affected areas. In the case of the Philippines, it would fall on December 20. “The OIE does not give official recognition. What is important that we report to them 90 days after our last disinfection so that our report will come out in the OIE database that the Philippines is already cleared of the AI,” he said. “What our trading partners want to see is that we did something to arrest the problem,” Domingo added. The newly appointed BAI chief said the government is set to deploy sentinel birds in AI-affected farms in Jaen and San Isidro in Nueva Ecija, and San Luis, Pampanga this week. “ T he 35 -d ay observation period would start

California approves rescue plan for shrinking Salton Sea

AN DIEGO—California regulators on Tuesday approved a plan to spend nearly $400 million over 10 years to slow the shrinking of the state’s largest lake, a vital migratory stop for birds and a buffer against swirling dust in farming towns. Funding for the Salton Sea is unclear but the plan enjoyed support of major water agencies and environmental-advocacy groups and preserves a fragile peace among urban and rural areas in California on distributing the state’s share of Colorado River water. Authorities in Imperial Valley, home to the 350-square-mile (560-squarekilometer) lake, had threatened to derail a landmark watersharing agreement unless California did more to honor its commitment to a long-term fix. Kevin Kelley, general manager of the Imperial Irrigation District, told the State Water Resources Control Board that the plan would create a smaller but more sustainable lake. He acknowledged public opinion was divided in the desert farming region of about 175,000 people, which provides the United States with much of its winter vegetables. “You can’t let the perfect stand in the way of the good,” he told board members in a meeting in Los Angeles. “Foremost in our mind is that there needs to be a pathway forward, and we need to all extricate ourselves from this cave that the Salton Sea has become.” The plan comes at a crucial time for the salty lake about 150 miles southeast of Los Angeles because San Diego’s regional water agency will stop sending water to the lake on December 31, accelerating evaporation. San Diego agreed to help preserve the lake for 15 years under a 2003 agreement that allowed it to buy large amounts of Colorado River water from the Imperial Valley. The Salton Sea—called “The Accidental Sea” because it was created in 1905 when the Colorado River breached a dike and two years of flooding filled a sizzling basin—has long been a flashpoint in water negotiations. Demands from San Diego and coastal cities clash with desires to protect a critical habitat for more than 400 species of birds and shield-farming communities from dust that may contribute to respiratory ailments. AP

once the sentinel birds have been deployed. The deployment of sentinel birds is part of our interventions to ensure that an area is totally free of AI,” Domingo said. The deployment of sentinel birds is a biosecurity measure indicated in the government’s AI Protection Program Manual of Procedures (AIPP MOP), which serves as the bible-like guide of the DA on how to address bird flu. Under the AIPP MOP, the sentinel birds, which will be grown and observed in the AI-affected areas, must test negative for bird flu to ensure that the area is free from the virus. Agriculture Secretary Emmanuel F. Piñol earlier told reporters that the DA has not received any new reports of bird-flu outbreaks in the country since he declared in

September that the bird-flu crisis is over. Poultry growers are slowly regaining their footing as data from the BAI showed the farm-gate price of broiler continued to recover, and breached P92 per kilogram (kg) in the third week of October. Data from the BAI obtained by the BusinessMirror showed that the farm-gate price of broiler as of October 23 reached P92.56 per kg, slightly higher than the P92.07 per kg recorded on October 16. The highest recorded farm-gate price during the reference period was P94 per kg, while the lowest was at P91 per kg, according to BAI data. On a monthly basis, the P92.56per-kg farm-gate price was 68.08 percent higher than the P55.07 per kg recorded on September 22, BAI data showed. Jasper Emmanuel Y. Arcalas

TheBroa

Business

Thursday, November 9, 2017

REBRANDING OUR PARA P

By Roger Pe

INK. Red and white make up its characteristics: passion and energy, peace and purity. The mixture gives a color commonly associated with romance. Albeit also associated with femininity, it has a deeper meaning: love, caring and understanding humanity.

FRONT beach near the entrance to the Underground River. NONIE REYES

Pink also makes one an intuitive person. Pink also connotes conforming to social norms is less of a concern to someone. Pink is also Puerto Princesa, Palawan. The pink color of the exuberantly beautiful Palawan balayong tree flower, commonly referred to as the Palawan Cherry Blossom, is now the symbol of Puerto Princesa. The balayong tree will bloom all year round, accentuating another city symbol that has graced its seal for many years, the regal Pheasant Peacock, locally known as tandikan. In the design, the plumage of the rare bird is symmetrically spread out in quintet fashion, providing a royal background to its silhouette. The bird’s crowning glory, the head feathers, is proudly captured, as if trumpeting its princess-like presence. The new emblem speaks the heart and vision of the city. Underneath the design, the new tagline says it all: “Where nature begins and never ends.” Puerto Princesa, by definition, is nature at its best. Though tourism and commercialization are encroaching at an unprecedented pace, the city maintains a close grip to preserve what it is largely known for: an iron bastion for environmental conservation, uncompromisingly enforcing it and tightening the lid on any form of degradation of its natural resources.

Species trade

FROM the ’60s to the ’70s, when the city was still a sleepy town and practically everyone knew everyone, it was customary to see bamboo cages packed with mynahs (k’yaw), blue-naped parrots (pikoy), cockatoos (katala), bear cats (binturong), pangolins and the Palawan Scrubfowl (tabon) in the market. The latter’s egg, triple the size of a chicken egg, can be had for a few centavos. I remember a line of stalls in the market dealing in covert endangered species trade, which went on unabated for years. I should know, because I lived and slept there, right behind our modest wood-and-sawali house. That time people had the mistaken notion that because the creatures were plenty and one could hardly feel any restrictive law enforced, it was okay to sell and buy them. Though sometimes discreet, the sale of endangered species

would turn raucous during Sundays, when viajeros from Manila come down from the pantalan, strut their urban bearings and engage in wholesale buying. It was a lucrative business for some locals who had contacts from far-flung, heavily forested barrios. It was also a grand time for natives who could easily be swayed by the promise of easy money, sacks of rice or used clothes.

Old frontier

THE brisk trade in endangered species made the palengke look like an old frontier town, reminiscent of the time of Sir James Brooke. The Rajah of Sarawak also went as far as establishing a tribe in what’s now known as Brooke’s Point, southern Palawan. When the trade was at its peak, the palengke was usually punctuated by the sound captured wild boars (baboy damo) made, accentuated by the scent of wild honey and the Almaciga tree resin and made picturesque by the colors of wild sanggumay and dapo orchids—all put on the block by ambulant traders. For years, the market on Calero Street was “The Wild Animals Hub” and frequented by Manila businessmen who must have enriched themselves by engaging in the trafficking of rare Palawan flora and fauna. If it was easy to sneak in a pair of mynah birds in a carton box on a plane then, how much more loading crates of them onboard commercial shipping lines? Of course, those were the days. The city has matured and awakened. The citizens now self-police their ranks and, slowly, everyone has become guardians of the environment. An environment reboot turned the tide and a conscious effort to protect nature became a religion and way of life in Palawan. Through the years, Puerto Princesa has put the province on the map by its landmark forest preservation, reforestation and economic sustainability programs, a model followed by other countries in the world.

Future perfect

MIGRATION to Palawan’s capital has spread far and wide. People came from the towns of San Miguel, San Pedro, Tiniguiban, Santa Monica, Irawan, San Jose and as far as Santa Lourdes. Sicsican, is literally siksikan (crowded). Even the once bucolic

Iwahig is feeling the pinch. The national highway in San Miguel and San Pedro is the most choked during rush hours, highly unthinkable 12 years ago. “Meron din kaming mga pangarap [We also have dreams], says Puerto Princesa Mayor Lucilo Bayron. To note, Bayron was Puerto Princesa’s Vice Mayor from 2004 until May 2013. Bayron wants to solve the problem, and is seeking help from the Public Works and Highways Department to finance his dream project: the P3-billion, 4-kilometer-long, first-of-a-series Puerto Princesa Skyway. This will connect the city proper, from Baywalk to Santa Monica National Highway, to the southern part of the city. The mayor claims the project would have minimal or no impact on marine environment when the construction goes full throttle.

Spectacular plans

THE city’s rich biodiversity inspired architects and planners to design a futuristic international airport for Puerto Princesa. The main attraction at the departure area is the Biodome, a spectacular architectural centerpiece that symbolizes the city’s flora and fauna. Designed in a radial manner, the Biodome reflects the movements of plants and trees that are abundant in the city. The Tower is a living structure, with plants crawling up to the top. The columns follow the shape of caterpillars. The outer perimeter has giant Acacia trees highlighting a well-manicured landscape. The airport is now one of the country’s main aviation arteries, with directs flights from Taiwan, Korea, Brunei, and with many others to follow. “We want new generations of people from this city to be proud of their God-given Paradise and appreciate its remarkable beauty,” Bayron said. To emphasize his point, Bayron showed the masterplan of the helix-shaped, glass-encased “DNA Tower”. The building is envisioned to be the tallest building outside Metro Manila. Located in the earthquakeproof province, the building will have 38 floors with a total area of 7,218 square meters. The building will feature twisting solar panels, lower and upper viewing decks,

THE Prinsesa ng Baybay, a fiber-glass sculpture by Ronel F. Roces, welcomes seafarers to Puerto Princesa, named after the mythical princess. HANHANPEGGY | DREAMSTIME.COM

ST. Paul’s Underground River Cave is more than 24 km long. NONIE REYES

state-of-the-art escalator and elevator systems and a statue on top. The building will rise in Balayong Park at Santa Monica on 1,292 square meters, including 12 rentable spaces and a main reception area.

Integrated fish port

LATEST statistics by the Philip-

pine Fisheries and Development Authority reveal 38 percent of fish that land in Navotas, 30 percent in Lucena, 32 percent in Iloilo, and 25 percent in General Santos all come from Palawan waters. Under Bayron’s governance, the city will expand and fully integrate the current fish port of Puerto Princ-

esa to help increase its fish output by 30 percent. A new and modern processing facility, patterned after Japan’s famous Tsukiji market, is expected to rise from the area. Designed to showcase Puerto Princesa’s lead role in the province, as well as in the country’s economic growth and economically sustain-

aderLook

sMirror

www.businessmirror.com.ph | Thursday, November 9, 2017

ADISE: PUERTO PRINCESA

SABANG Wharf. NONIE REYES

their hotel and got curious. After master diver Andy Leonor, our guide and butanding expert, briefed us on the do’s and don’ts, we sailed around Puerto Princesa Bay and out into the Sulu Sea. A few miles more, we would have reached Tubbataha Reef. Then, we saw a commotion on the water surface, 20 meters ahead of our boat. A swarm of sea gulls then hovered around the “turbulence”. Moving closer, we saw that they were actually schools of tuna and anchovies being chased by the one we were also chasing, the butanding. The Dutch couple excitedly jumped into the water, unmindful that it was 100 to 180 feet deep. The two ferociously swam and wanted to get closer, but the first one we saw sped away. That was 9 a.m., and nearly two hours later no sign of another butanding came.

FAZON1 | DREAMSTIME.COM

Crystal clear

able development, the project aims to benefit low-income sectors and spur investments in fish processing and tourism industries, provide employment and livelihood, and serve as a focal point for marine research and development.

Balayong Park

THOUGH over 30 cherry blossom trees were planted in Atok, Benguet, last year, Puerto Princesa will dwarf that number and have the world’s largest park planted to balayong (cherry blossom) trees. “It’s going to be a park within a park within a park,” said Bayron. He said the city will launch an “Adopt A Tree” program, encouraging city folk to own a tree and make it part of their family. Last year, thousands of Puerto Princesans planted 3,200 balayong trees within a 5-kilometer radius of the Palawan State University and City Hall. When they bloom in five years, it is hoped to rival Japan’s famous Sakura Garden. The balayong (Afzelia rhomboids Caesalpiniaceae) is a species native to Southeast Asia and reaches up to 25 meters in height and 50 centimeters in diameter. Because of logging and slash-and-burn farming, its number has dwindled. Contrary to the popular belief, it is not a relative of the Japanese cherry blossom tree but closer to acacia, narra and tindalo families.

The park will have a restaurant with a view deck, ecumenical chapel, meditation garden, amphitheater, food complex, museum, library, artists’ pavilion for art exhibits, including fitness and recreational and children parks. “We planted balayong instead of other trees because we want the next generation look back to this historical day when we united to establish this park,” Bayron said. The three-year project is in line with the city’s Comprehensive Land Use Plan, which recognizes the vital role of parks and open spaces in making the city more sustainable and attractive.

Cruise-ship capital

BECAUSE it is closer to most Asian cities, Puerto Princesa deservingly earned the “Cruise ship capital of the Philippines”. The financial and geographical center of Palawan welcomed almost a million or more foreign tourists from world-renowned luxury ships over a three-year period. The ships include the Superstar Aquarius, Costa Victoria, Caledonian Sky, Azamara Quest, Albatross, Seabourn Sojourn, Legend of the Seas, Pacific Venus, Europa, Bremen, L’Austral, Le Soleal, Hamburg, Artania, Queen Elizabeth and Silver Shadow. “Puerto Princesa Bay has one of the best ports in Asia because

it is inside a bay surrounded by mountains,” City Tourism Officer Aileen Amurao said. “Obviously, it is perfect for this mode of travel. It is also unlike other towns in the northern part of the province. It has a natural harbor and is sheltered from typhoons all year round.” On August 22, November 6 and November 24 of 2015, the worldrenowned Royal Caribbean cruise ship Legend of the Seas docked on the city port and brought a total of 16,800 passengers and over 6,600 crew ship members. “We are making the most out of this positive sign,” Amurao added. “Our long-term plan is to further improve our terminal to make it on the level of, if not better than, other Asian ports.”

The butanding

I ALMOST missed this trip from lack of sleep. I was ready not to show up in Baywalk, our jump-off point to the open sea, where six hours of sailing would take us to the whale-shark enclave. When we arrived, Dutch tourists Willhelm Niewland and Krysia Wielogroch were already putting their life vests on, so excited for the adventure of their lifetime. The two traveled by land to Puerto Princesa from El Nido. They were not supposed to join the trip but changed their plans when they saw a flyer at

WE were beginning to get disappointed, but by 11am, we saw “turbulences” left and right of our boat—telltale signs that the butanding were frolicking in the area. For one full hour, we were treated to an adventure of our lives, the glory of seeing whale sharks gliding around and under our boat, their fins out of the water. We shouted with glee when one even pranced vertically astride. The infectious excitement everyone was having made me reach for my diving fins and snorkel gear, forcing me to jump into the water. A bit scared, I stayed close to the bamboo outrigger, clinging to it as tightly as I could. I dived for a moment and stayed underwater for about 20 seconds. And then there it was: the sea behemoth, which I estimate to be 40 feet long. Unlike in some parts of the Philippines where the butanding are almost “caged”, it is different in Puerto Princesa: they are in the wild, open sea. When a “spotter” also announces a whale-shark presence, not more than one boat swarm or “attacked” it. Visibility is also wonderfully crystal clear.

Firefly watching

IN Puerto Princesa’s Iwahig and Irawan rivers, the mangrove trees sparkle like Christmas trees: fireflies. They are there to mesmerize you and make your stay in the city truly unforgettable. Fireflies are not found all over the world, only in areas where oxygen is clean. They glow primarily to attract mates in the dark. These displays are quite beautiful. Edison Dalanon, our gregarious tour guide, explains: “A flying male will find a usually nonflying female by looking for her flashing lights.” “Some fireflies actually synchronize their flashes, so an entire tree or area will flash on and off,” Dalanon added. Whether it is the Iwahig or Irawan firefly watching that you

booked, you certainly won’t regret every single second of this trip.

War museum

PRIVATELY managed and repository of never-before-seen photos, artifacts and memorabilia from pre-war to World War II. The museum also has a collection of photos of American Thomasites when they came to Cuyo islands and those of Japanese officers who terrorized American soldiers and their subsequent courtmartial proceedings. Guns, ammunition and weapons of war are on display, including bombs and mortars, rifles and bayonets. An authentic Japanese flag, with a photo of a soldier’s family wishing him goodbye, is poignant. The museum was founded by Higinio “Buddy” Mendoza Jr. to honor his father, Higinio Mendoza Sr., Palawan’s greatest hero, as well as all Palaweño guerrillas who fought defending Puerto Princesa and the entire province during the war. Mendoza Sr., was a doctor, Palawan governor from 1931 to 1938 and organized the first Guerrilla Unit (A Company) in 1942. He was executed by the Japanese army in a grisly manner.

Beautiful hotels

WHERE before one can count on fingers the number of places to stay in Puerto Princesa, there are now plenty of places to stay. The city is a virtual tourist haven catering to visitors belonging to different demographics: backpackers, bed-and-breakfast travelers, those who are traveling on a shoestring budget and the most finicky tourist. The multinational chains are also making their presence felt, providing world-standard hospitality. The trailblazers are still providing legendary service, like the Microtel Wyndham, the only beachfront hotel offering a spectacular view of Palawan sunrise and wide expanse of historic Canigaran Beach. The Imperial Palace Palawan Resort Hotel is fast shaping up, with no less than the award-winning architecture shop WTA Architecture and Design Studio at the helm. Bankrolled by a Korean business group, the P1.9-billion waterpark project located in Barangay Santa Lourdes is proof of the city’s viability as an investment haven for tourism growth and real-estate development. When finished, the 15-story Imperial Palace will have 367 rooms, private pool villas, restaurants, water parks, hot spa and a hot spring. Then there’s Aventura Resort, built like a ranch with a “kubotel” (bahay kubo with amenities of a luxurious hotel) and home to the White Cockatoo (katala). If you want a respite from the madness of city living, this is the place to stay, a paradise where you are lulled to sleep by the sound of countless birds.

If you’re a no-nonsense tourist and traveling to different parts of rugged Palawan, Casitas is the place to be. Peaceful, with unobtrusive service and ever-smiling staff, they will arrange any kind of tour for you within the city. Looking for value for money? Worth mentioning are Jillian Inn, Cecille’s Inn, Mercedes Bed and Breakfast, Aniceto Pension House, Dang Marias, RAQ Pensionne, Nevas, Café Loreto and Casa Gloria.

Hundred Caves

ON your way to Underground River (World Heritage Site and one of the Seven New Wonders of Nature), you will never miss a limestone karst mountain in Barangay Tagabinet, a solitary rock formation near the roadside. What makes it intriguing is its outer color. It looks like it’s been painted with white enamel, but it actually has the color of first-grade marble. It got its name from countless caverns that seem infinite as you explore in and out. My biggest achievement happened here. I conquered my claustrophobia after trekking an almost vertical 80-meter rock to reach the cave’s main entrance. We stayed in the cave’s inner sanctum for almost one-and-a-half hours and rappelled back to the ground when rain started to fall. The landmark is an awesome sight way past Buenavista’s rain forest and before you reach Cabayugan, a barangay with similar towering, grotesque limestone structures.

Tunnel, river

REPUTEDLY the world’s longest acacia tree canopy, stretching from a portion of Barangay Irawan to Iwahig and on to Inagawan and near the boundary of Aborlan town. The spectacular wonder of nature could be a candidate for a Unesco World Heritage site. The lung of Puerto Princesa is also home to thousands of species of flora and fauna. Properly developed, it could be another attraction of a city that is already gifted with a thousand and one wonders by nature. Meanwhile, the construction of the P100-million Sabang Integrated Wharf Development project will commence early part of 2018. Expected to be completed in five years, the new modern wharf will guarantee utmost convenience for tourists visiting the famous Underground River. The Tourism Infrastructure and Enterprise Zone Authority (Tieza) has initially funded the P15-million project design. When finished, the terminal can accommodate over 300 visitors and will have a museum showcasing the park’s amazing biodiversity. The upgraded wharf will include a modern boat docking area, breakwater, tourist esplanade, drop-off area, parking and an efficient, systemized tourist service.

Banking&Finance

Thursday, November 9, 2017 • Editor: Jun B. Vallecera

BusinessMirror

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ING Manila unit keen on four growth drivers

By Bianca Cuaresma

Automated system seen accelerating shift to cashless transactions

@BcuaresmaBM

he Manila unit of the Dutch financial-services giant ING Group trains a keen eye on four areas of interest now that its Philippine operations has passed to Hans Sicat, an investment banker.

On Wednesday Sicat vowed increased focus on cross-border deals involving renewable energy, telecom media and technology (TMT), the branded consumer sector and portfolio structuring, as well as restructuring for conglomerates as he took on the helm as ING Manila country manager. At a news briefing on Wednesday at the bank ’s Ayala offices, Sicat said he plans to capitalize on increased foreign interest to set up domestic operations or invest in the Philippines. Sicat, former president and CEO of the Philippine Stock Exchange, is taking over from outgoing ING Bank Country Manager Consuelo Garcia.

“There is a lot of interest and people are [going around] all the time in the Philippines so that is a very good sign. We know it because we see it on the ground,” Sicat observed. He said ING bank will be linking foreign companies interested in coming to the Philippines with local firms interested in selling a portion or even their entire operations. “There is actually a little bit of an art there. It is not just your numbers and your maximizing financial models. There is an art in making sure there is connectivity in interest. In other words, there is shared vision of growth and also maybe complementation of what they offer to

Case clippings

By Justice S J Ranada Jr.

DANGEROUSE DRUGS–proving chain of custody The chain of custody is established by testimony about every link in the chain, from the moment the item was picked up to the time it is offered in evidence, in such a way that every person who touched the exhibit would be able to describe how and from whom it was received, where it was and what happened to it while in the witness’ possession, the condition in which it was received, and the condition in which it was delivered to the next link in the chain. People v. Del Mundo GR 208095 20 Sep 2017 Martires, J

SINAG AWARDS

The Sinag: Sun Life’s Financial Literacy Awards is on its fourth year. The nationwide competition recognizes the output of financial journalists from Luzon, the Visayas and Mindanao on subjects such as financial habits, entrepreneurship, financial planning and related stories. A cash prize of P35,000 and a trophy await winners. The awarding ceremonies will be held in December in Manila.

one another,” Sicat said. The newly minted country manager also has bullish views on the stepped up integration across the Association of Southeast Asian Nations, saying the process fits well with their business strategy of cross-border transactions going forward. “In general, we are very optimistic that this creates even more economic activity. And when you think of it from the ING that a number of our other stakeholders and clients are looking at these cross-border opportunities to grow and provide us with additional transaction opportunities,” Sicat said. “We chose Hans to be my successor, right? He is quite modest but he ha s considerable invest ment ba n king ex pertise in his past life,” outgoi ng I NG B a n k Cou nt r y M a n a ger Consuelo Garcia said. “He was a formidable competitor on the other side, and I think it is really his investment banking expertise that we felt would be needed for us to take advantage of these business opportunities for the Philippines. We are confident we would have a fair share of the deals. It is not just Philippine companies going out but foreign companies

‘Excess bank funds are deployed elsewhere’

anks and trust entities entrusted to the Central Bank and its termdeposit facility (TDF) far fewer excess funds on Wednesday than they used to in the past, as financial institutions deployed what excess they have elsewhere. T he Bangko Sentra l ng Pi lipinas (BSP) reported fewer fund deployment to the TDF this week as subscriptions proved weaker than last no matter that the volume of offering have previously been raised. In particular, tenders for the seven-day TDF totaled only P37.57 billion this week, short of the P40 billion on offer. As for the 28-day TDF, tenders fell to

only P86.51 billion, below the P90-billion volume expected this week. “What is happening is that we see surplus funds in the system declining in volume that the BSP normally mops up. Since these have decreased, the BSP would be simply siphoning less from the market,” BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said. “But the key point there is that the economic and financial requirements are being amply funded. That is positive for growth, that is positive for the financial system,” the BSP official added. He also noted the continued momen-

Citizens’ assemblies for unitary excise tax go national

itizens’ assemblies were launched in various cities asking the government to implement a unitary excise-tax increase on tobacco and set aside funds for the universal health care (UHC) and similar government programs that directly benefit the people. Spearheading the citizens’ assemblies were Aktibong Kilusan Tungo sa Iisang Bayan (Aktib), Polytechnic University of the Philippines-Student Party for Equality and Advancement of Knowledge (PUP-Speak) and Social Watch Philippines. The assemblies attended by barangay officials, representatives of people’s organizations, academicians, youth and elders tackled the global, national and local issues on cigarette smoking, the unitary increase on tobacco sin tax, other regulatory measures to curb smoking and potential revenue sources for expanding the UHC program. Ka Erning Ofracio, Aktib chairman, said numerous medical evidence indicated cigarette smoking as the cause of more than 2,000 deaths yearly. Implementing a unitary increase on tobacco sin tax to its

maximum level immediately will help deter new smokers and increase the number of quitters. “The government has been spending P210 billion annually for cigarette smoking-related sickness,” he said at the Quezon City citizen’s assembly. Elijah San Fernando, PUP student regent, said at the PUP youth assembly that the expected P60-billion to P90billion incremental revenues from the unitary sin-tax increase on tobacco products will help finance not only the expanded UHC but also the Education for All and other pro-poor programs of the current administration. San Fernando urged the Senate to support the legislations introduced by Sen. Manny Pacquiao and Sen. Joseph Victor Ejercito calling for a P60 and P90 excise-tax increase by January 1, 2018, with a stipulated 9-percent annual increase thereafter, respectively. According to the organizers, more citizens’ assemblies are scheduled in other cities and universities prior to the launching of the national movement for higher tobacco sin tax and its effective deployment for health and other human development programs.

tum in loan growth that he traced to robust economic activities. Guinigundo said several banks have issued long-term negotiable certificates of deposit that helped absorb some of the spare liquidity off the market. Directionally, the seven- and 28-day TDF rates went in different directions with the shorter tenor posting a higher yield this week. The seven-day TDF averaged 3.3849 percent, higher than the 3.3548 percent last week. The 28 -day TDF averaged 3.4908 percent, slightly lower than last week’s 3.4940 percent. Bianca Cuaresma

Security Bank lists ₧8.6-billion LTNCDs

ecurity Bank Corp. successfully raised P8.6 billion worth of longterm negotiable certificates of time deposit (LTNCD) representing the first tranche of its P20-billion approved issuance from the Bangko Sentral ng Pilipinas. The lender initially planned to raise only P5 billion worth of LTNCDs with a tenor of five years and six months but later upsized the sale after receiving strong support from its own investor base. The LTNCDs have a coupon of 3.875 percent and will mature on May 8, 2023. The LTNCDs were also listed on Wednesday at the Philippine Dealing Exchange, the first instrument Security Bank listed in the platform—allowing its investors better access to the secondary market. HSBC and Standard Chartered Bank acted as joint lead arrangers and bookrunners, and were also selling agents alongside Security Bank and Multinational Investment Bancorp.

going in,” she added. Sicat knows global capital markets and worked at one time as investment banker with Citigroup and various firms in various roles in New York, Hong Kong and the Philippines. He said he does not worry over the increased interest of foreign banks in the Philippines that only heighten competition. “We are in a better position because we have a head start. It is probably in fact a confirmation that we are in the right space. Is competition worrisome? I think competition is good because it makes us aware of the needs of our stakeholders, of our client base,” the new country manager said. Several banks have since provided increased competition following the approval of full foreign bank participation and entry to the Philippines. In 2014 ING Bank was lead arranged the 150-megawatt Burgos Wind Energy Project in Ilocos Norte, the first such structure built under the country’s renewable-energy law.

he Bangko Sentral ng Pilipinas (BSP) on Wednesday activated for the first time the automated clearinghouse (ACH) that makes possible a seamless electronic fund transfer (EFT) and payments of accounts in near real time. The Philippine EFT System and Operations Network (Peso Net) seeks to modernize the country’s retail-payment system, increase the adoption and greater use of so-called electronic payments and help shift transactions from cash-heavy to e-payments down the line. The EFT takes off from the National Retail Payments System initiative launched in December 2015 and articulated the goal of moving 20 percent of all transactions from cash and checks and into the digital sphere by 2020. A study published by Better Than Cash Alliance in 2014 said only 1 percent of all transactions in the country were digital transactions. BSP Governor Nestor A. Espenilla Jr. said the PESO Net clearinghouse aims to make more convenient the day-to-day transactions in the Philippines. With the ACH, funds can be made available to recipient accounts within the same banking day or immediately upon clearing. Payees receive the funds transferred in full and shall not pay for electronic crediting to their accounts. Its benefits range from lower cost of doing business and as alternative to the check system, as transactions are processed the same day compared to next-day check clearing only recently. In turn, Espenilla said businesses and enterprises will have beter grasp of liquidity management through the digital pathway and is expected to result in the increase of economic activities in the country. Bianca Cuaresma

Member-relations ambassador, anyone?

erving and engaging with members is a natural role for associations. However, I have yet to encounter the job title “member relations ambassador” that exists in the association community here or abroad. That was before last week when I was in Kuala Lumpur as part of the organizing team of our association’s annual CEO Forum held in the Malaysian capital. The event gathered 250 delegates from 23 countries at the Intercontinental KL Hotel. The moment our team of three checked into the hotel, there was already this homey welcoming feeling as the doorman, the bell captain and the receptionist were all smiles and very helpful. It was quite eerie, too, though in a positive sense, when we had our late lunch at the hotel’s dining outlet, Serena. A “roving conversationalist” (as I referred to him since he was going around and chatting with other diners) approached our table and greeted me with my first name. He presented himself as simply Jason, who, with his amiable personality, told us that he’s the “man to call” if we needed something. Dinner time came and we opted for a light meal at the same dining area and as soon as we settled down, there was Jason, greeting us again. The next morning at breakfast, I had a longer chat with Jason as I was curious about his job. He sat across my table and I saw the opportunity to interview him. He gave me his business card and I noticed his job title, “guest relations ambassador.” I probed more and found out that he’s 64 years old, no college degree, diabetic and with a high blood-pressure condition. And yet, he said, he sleeps only about four to five hours a day, never been late at work, and does his “routine” day in, day out. I was truly impressed! I told him I am an association executive and associations can learn from his experience. So I asked him what he can share with associations based on his work. He mentioned three things that are important in his job: passion, positive attitude and punctuality. Here’s how I thought the three attributes he told me relate to an association executive’s work:

Association World Octavio Peralta n Passion—putting more energy into something than is required. Passion is about fulfilling a mission with a whole heart, mind and soul. This is what keeps an association executive awake at night, thinking of what more can be done for the association and its members. n Positive attitude—I equate this to humaneness, characterized by tenderness, compassion, sympathy and respect for people. Associations are communities of people and, as such, requires the association executive to give due consideration to the needs and aspirations of its members. n Punctuality—being able to complete a required task before or at a previously designated time. I would also relate punctuality to dedication—the quality of being committed to a task or purpose. Associations thrive and sustain themselves because of their purpose, i.e., advancing a cause or advocacy. Because of the nature of their job, association executives need to focus on mission-critical and timely services to members. As member-serving organizations, associations can certainly learn from Jason’s worthy 3P’s and can emulate these traits in relating to their members. Considering a job title for your association? How about a member-relations ambassador? The column contributor, Octavio “Bobby” Peralta, is concurrently the secretary-general of the Association of Development Financing Institutions in Asia and the Pacific and the CEO and founder of the PCAAE. The PCAAE is holding the Associations Summit 5 and the “Ang Susi” Awards 2017 on November 22 and 23 at the Philippine International Convention Center. E-mail inquiries@adfiap.org for more details.

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Europe goes to ends of the Earth in search of sugar markets

UROPEAN sugar is turning up in odd places. Production from the region’s beet farms is drawing buyers as far away as Haiti, once a major grower of cane in the Caribbean, and Sierra Leone in sub-Saharan Africa. It’s even shown up on the Pacific island of Pitcairn, one of the remotest abodes on Earth. Any demand is good news for producers such as Suedzucker AG, the world’s biggest, and main European rival Nordzucker AG as a supply glut has pushed white-sugar prices down 27 percent this year in London. That followed a European Union (EU) decision to end quotas on output and exports. “There is a vibrant market out there that loves to take European white sugar right now,” Nordzucker CEO Hartwig Fuchs said in an interview at the company’s headquarters in Braunschweig, Germany. “We are the cheapest supply today.” The EU’s share of global exports will more than double to almost 5 percent this season, according to the International Sugar Organization, a group that counts producing countries among its members. While Europe will want to maintain its traditional markets like Israel, Egypt, Norway and Switzerland, deliveries have also been booked to Cameroon and Mauritania in northwest Africa in recent weeks. Fuchs highlighted an odder delivery to Pitcairn a year ago, only known to Nordzucker after a traveler from Braunschweig sent it a snapshot of its 25-kilogram sacks dropped off by a passing cruise liner. The volcanic outcrop is home to 50 or so mostly descendants of 18th Century mutineers from the ship HMS Bounty and about 10,000 miles from Europe as the crow flies, double the distance from Brazil, the world’s top sugar exporter. More significant are sales of sugar produced by German competitor Suedzucker to Haiti, once one of the world’s main producers and just a few hundred miles from growers in Jamaica and Belize. “We have a lot of demand right now indeed from outside Europe, because we are the cheapest,” Fuchs said, with stronger growth seen in Asia and Africa.

World market

NEW markets abroad can’t compensate for the depressed prices European producers face amid a global glut. For now, exports have been a trickle relative to the expected oversupply, with Marex Spectron Group Ltd. saying slow loading at some ports may be to blame. A weaker dollar against the euro has also reduced profit for European sugar growers, adding to pressure that may force the weakest out of business, according to Fuchs. Farmers will likely reduce planting, “drastically” cutting acreage as early as 2019, he said. Imports into the EU have already been capped by lower regional prices. White-sugar futures in London slumped to a two-year low of $353.30 a metric ton in September. “In the next three, four months we will stabilize the market but at relatively low levels,” the CEO said. “It may take up until 2019 before they will really recover.” Nordzucker is preparing for future developments elsewhere. It’s looking for opportunities to expand in Africa and South America, and is already working on partnerships. With raw prices at about 14 cents a pound, there’s been little investment in output and care of cane, and that along with a switch toward more ethanol will herald production curbs, Fuchs said. Prices will likely rise to 15 to 18 cents a pound in a year, he said. Bloomberg News

Thursday, November 9, 2017

‘Trump a graver threat to American democracy than Russian meddling’

ASHINGTON—The House’s top Democrat investigating Russia’s election meddling on Tuesday declared that in many ways President Donald J. Trump is “far more grave a threat” to American democracy than the Kremlin. Rep. Adam Schiff cited a litany of actions by Trump, from appointing Cabinet officers with “ direct conf licts of interest” and goals of dismantling their agenc ies to l im it ing Musl im immigration and discrediting federal judges. As for the president’s own possible jeopardy, Schiff said Trump is tr ying to disparage the credibility of special counsel Robert Mueller and the congressional panels that are investigating possible coordination between his campaign and Russia in the election that put him in the W hite House.

“So no matter what is produced, he can say it’s a fake,” the California congressman said in an interview with The Associated Press. “I do feel our democracy is under threat,” Schiff said. Trump’s approach to governing, he said, “is a serious problem and in many respects far more grave a threat than anything coming from outside the country.” The interview came as Trump jetted across the global stage on his first official trip to Asia. But back in Washington, FBI and congressional probes continued to churn. Trump has insisted that the FBI investigation, including the fed-

eral indictments of former campaign chairman Paul Manafort and the guilty plea of former adviser George Papadopoulos, have nothing to do with him. “It’s disappointing, though hardly surprising, that Adam Schiff would make hysterical and demonstrably false comments about the president, and then claim to be objective in his oversight duties,” said Raj Shah, White House principal deputy press secretary. Schiff also had sharp words for Facebook, Twitter and Alphabet— Google’s parent company—who he said were stonewalling investigators about sharing data that could possibly link the Trump campaign to Russian interference. Among the questions Schiff said the social-media companies could help resolve is whether Americans were surreptitiously targeted by the Russians in ways that were “sufficiently specific and overlapping” that they would have required input directly from the Trump campaign. When the companies were asked for such information, Schiff said:

“They were noncommittal, but we will continue to press them.” Schiff, the senior Democrat on the House intelligence comm it te e, a l so s u g ge ste d t h at Russian contacts with Trump campaign aides George Papadopoulos and Carter Page were part of a larger Russian effort to infiltrate the Trump campaign and that WikiLeaks ser ved as a Russian proxy to leak damaging information about Democratic candidate Hillary Clinton without involving Trump campaign aides directly. Asked if his House panel was investigating the president personally, Schiff said it was not focused on specific people. But he also said the probe could focus on Trump himself. “No one is off the table,” Schiff said. As House Democrats have pursued their focus on Trump and his campaign, House Republicans, urged on by Trump, have launched their own investigation of Clinton and her role when she was secretary of state in the sale of a uranium mine to Russia. Schiff accused House

Speaker Paul Ryan of giving his “blessing” to a coordinated effort to handicap the Russia probe. “I think the speaker, ultimately, the buck stops with him. And whatever he is allowing, he is blessing. And in this case what he is blessing is an effort that I think was orchestrated by the White House and its external allies to distract from the Russia probe,” Schiff said. He also added it will be difficult to stave off efforts by the Russians—or others—to interfere with the next presidential election as long if the White House doesn’t help get to the bottom of 2016 and Trump still denies there was interference to help him. In the meantime, he said, the time for clarity about the 2016 election is now. “We don’t wait until there’s a constitutional crisis. We need the White House to get the message now that there will be a dramatic pushback should he try to fire Bob Mueller,” Schiff said. “I think we’re all going to be held to account one day for what we did when our democracy was under threat.” AP

Communist supporters mark Bolshevik Revolution centennial

OSCOW—Un l i ke t he grand celebrations of t he Sov iet pa st, t he Kremlin skirted Tuesday’s centennial of the Bolshevik Revolution—an anniversary that drew only a routine demonstration by Communist devotees. The government’s attitude reflects both a wide split in public perception of the revolution and the Kremlin’s uneasiness about the events in 1917 that heralded more than seven decades of the Communist Party rule. President Vladimir Putin has bemoaned the 1991 collapse of the Soviet Union as the “greatest geopolitical catastrophe of the 20th century,” but he also has deplored the revolution that destroyed the Russian empire and triggered a devastating civil war that killed millions. “Let us ask ourselves: Was it not possible to follow an evolutionary path rather than go through a revolution?” Putin said in a speech last month. “Could we not have evolved by way of gradual and consistent forward movement rather than at a cost of destroying our statehood and the ruthless fracturing of millions of human lives?” Putin made no mention of the revolution while attending official meetings on Tuesday, a regular working day, unlike in Soviet times when it was marked as the nation’s main holiday. Putin’s ambivalence is rooted in his desire to claim the heritage of both the czarist and the Soviet empires. While he can’t denounce an event that is still revered by many of his supporters, the Russian leader disdains any uprisings and tends to see them as work of foreign spy agencies. While the Kremlin has avoided any celebrations of the centennial, Russian state television marked the event with a slew of documentaries about the revolution and lavish biopics about revolutionary leaders. All those productions made a particular emphasis of the alleged role by Germany in triggering the revolution by funding the Bolsheviks—the line that echoes the Kremlin’s allegations of the Untied States meddling in Russian affairs today. Alexander Baunov, an analyst with the Carnegie Moscow Center, noted that Putin appears to see a parallel between his

Communist Party supporters carry Andy Warhol-style portraits of Cuban Revolution hero Ernesto “Che” Guevara (center) and Soviet leader Josef Stalin (right) during a demonstration marking the 100th anniversary of the 1917 Bolshevik revolution in Moscow, Russia on November 7. Thousands of Communist demonstrators marked the centennial of the 1917 Bolshevik revolution on Tuesday by marching across downtown Moscow. AP

tight controls over the Russian political scene and the czarist government’s efforts to rein in the revolutionar y movement. “He sees his punitive measure as the continuation of the inconsequent and luckless struggle of law enforcement agencies of the Russian empire against the looming collapse of the state, and hopes to do better,” Baunov wrote in a commentary. Putin has accused the US of encouraging massive demonstrations against him in Moscow in 2011 and 2012, and he also has blamed Washington for masterminding a series of uprisings in Middle East, North Africa and ex-Soviet republics. “The government has a fantastic, paranoid fear of revolution, and the memory of what happened 100 years ago still hurts,” liberal politician Leonid Gozman said in his blog. The Kremlin’s reluctance to

commemorate the still-polarizing event reflects deep divisions over the revolution in Russian society. A recent nationwide poll showed public opinion on whether the revolution was positive or negative for Russia was split almost evenly. Even as the Kremlin ignored the centennial, thousands of Communist Party members and supporters marched along Moscow’s downtown Tverskaya Street carrying portraits of Soviet leaders Vladimir Lenin and Josef Stalin. During Soviet times, November 7 was a major state holiday, with huge military parades and demonstrations on Red Square. Russia stopped celebrating it after the 1991 Soviet collapse. The Communists have continued to honor the date, and the authorities allowed them to march close to the Kremlin to mark the anniversary, but kept them off Red Square.

Such marches reflect the Communists’ role as part of the token opposition in parliament that obediently toes the Kremlin line and limits itself to pro forma criticism of the government without challenging Putin’s rule. Many Russians still see November 7 as a major holiday and feel nostalgic about the Soviet past. “I feel like congratulating myself with the 100 years of my motherland,” Lyudmila Krasitskaya said. “I think that this was the time when we dreamed and the dreams came true. And we all are absolutely grateful to our Soviet motherland for a happy life that it gave to us.” Another Moscow resident, Nina Galkina, said she’s missing the holiday on November 7. “We lived this life, we took part in manifestations, we had a feeling of a holiday,” she said. In a bid to switch attention from the revolution anniversary, the

authorities in recent years marked the date with a reenactment of the November 7 1941, Red Square parade that saw Red Army soldiers march directly to the front line during the Battle of Moscow in World War II. T he reenactment feat ured troops in period uniforms, vintage tanks and other military gear. While Putin spoke critically about the revolution and Lenin, he has ignored demands to remove the Soviet founder’s embalmed body from its Red Square tomb for burial. Such calls have become more frequent recently, with Ramzan Kadyrov, Moscow-backed strongman leader of the province of Chechnya, joining those who called for Lenin’s burial. Communist Party chief Gennady Zyuganov criticized Kadyrov for raising the issue, and Kadyrov angrily dismissed Zyuganov’s statement as a “sign of senility.” AP

A10 Thursday, November 9, 2017 • Editor: Angel R. Calso

Opinion

BusinessMirror

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editorial

Odds of war

he New York Times published last Saturday an opinion piece by Nicholas Kristof saying that President Donald J. Trump’s belligerent approach to North Korea could end in a nuclear war. Republican Sen. Lindsey Graham, Kristof wrote, said that Trump told him he’d choose a war with North Korea over allowing it to continue on its course. “There is a military option: to destroy North Korea’s program and North Korea itself,” Graham said, relaying a conversation with Trump. “If thousands die, they’re going to die over there. They’re not going to die here—and he’s told me that to my face.” Is Trump seriously putting the United States on a slippery slope to war? Kristof sought the opinion of three experts: John Brennan, former head of the CIA, estimated the chance of a war with North Korea at 20 percent to 25 percent. Joel S. Wit, a Korea expert at Johns Hopkins University, gave it a 40-percent chance. Richard Haass, the president of the Council on Foreign Relations, said the odds may be somewhere around 50-50. Kristof wrote: “The Congressional Research Service last month estimated that as many as 300,000 people could die in the first few days of war—and that’s if it remains nonnuclear. If there is a nuclear exchange, “there easily could be a million deaths on the first day,” said Scott Sagan, an international security expert at Stanford, who believes the odds of war are certainly greater than is widely recognized by the American public.” Trump is currently in Asia, rallying countries to strengthen sanctions against North Korea. However, Kristof said the goal appears doomed: “Almost no expert believes that sanctions will force Kim Jong Un to give up his nuclear weapons or halt his missile program. That puts us on a collision course, for North Korea seems determined to develop a clear capacity to target the US with nuclear weapons, while the White House hints that it would rather have a war than allow the North to become a nuclear threat.” Lt. Gen. H.R. McMaster, Trump’s national security adviser, said on Fox News he is not going to permit Kim Jong Un to threaten the US with a nuclear weapon, and he is willing to do anything necessary to prevent that from happening. Kristof said the whispers in Washington are that “anything necessary” includes air strikes on North Korea, such as a strike on a missile as it is being prepared for launch. In short: war. Democratic Sen. Tammy Duckworth, a former military pilot and an Iraq war veteran, told Kristof that, from what she hears, the chance is greater than 50-50 that Trump will order a strike on North Korea. Kristof quoted Duckworth: “I am extremely worried that we’ve moved beyond ‘let’s prevent war’ to ‘it’s acceptable to do a first strike.’” Kristof said: “Trump didn’t create the problem, and it’s real: We should fear North Korea’s gaining the capacity to destroy US cities. Eerily, on my last visit, North Koreans repeatedly said that a nuclear war with the US was not only survivable but winnable.” The reckless threats emanating from the United States and North Korea are quite alarming. What’s surprising is that neither the public nor the global financial markets recognize how high the risk is of a nuclear war, and how devastating this could be. Since 2005

BusinessMirror A broader look at today’s business

‘Asean Week’: The fun begins John Mangun

OUTSIDE THE BOX

hile the rest of us are either hunkered down or caught in massive traffic jams, some really important people are going to be meeting in Manila next week. Of course, they are all just like you and me. They get headaches, argue with their spouses and have certain foods that they particularly like or dislike eating. But some members of this group visiting the Philippines have nuclear weapons. All of them control armies of soldiers, live in historic mansions at public expense, tell millions of people what to do and influence the lives of every person on planet earth. Regarding the fact that United States President Donald J. Trump has come to Asia and is including the Philippines on his itinerary, US National Security Adviser H. R. McMaster said: “A major goal of this Asia trip is to rally allies to achieve the complete, verifiable

The mindful society Cecilio T. Arillo

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and permanent denuclearization of the Korean Peninsula.” That statement sounds all well and good, but is sort of like saying you went to the birthday party so that you could have a piece of the cake. The “allies” are already rallied, and nothing is going to move any leader or country from their current position on how the issue should be resolved. Further, no one truly believes that North Korea is going to change its nuclear-weapons ambitions regardless of any backdoor talks between the allies. In the short

HAT interesting title is a subhead in Dr. Jeffrey D. Sachs’s fascinating and highly instructive best-selling book, The Price of Civilization, published in 2011 by Random House, which captured the American imagination and the world’s millennial generation.

He began in that section of his book, page 9, with one of Socrates’s famous quotations, “The unexamined life is not worth living,” and then added his own: “We might equally say that the unexamined economy is not capable of securing our well-being. Our greatest national illusion is that a healthy society can be organized around the single-minded pursuit of wealth.” Sachs said: “The ferocity of the quest for wealth throughout society has left Americans exhausted and deprived of the benefits of social trust, honesty and compassion. Our society has turned harsh, with the elites on Wall Street, in Big Oil and in Washington among the most irresponsible and selfish of all. When we understand this reality, we can begin to refashion our economy.” According to him, “Two of humanity’s greatest sages, Buddha in the Eastern tradition and Aristotle in the Western tradition, counseled us wisely about humanity’s innate tendency to chase transient illusions rather than to keep our minds and lives focused on deeper,

longer-term sources of well-being. Both urged us to keep to a middle path, to cultivate moderation and virtue in our personal behavior and attitudes despite the allures of extremes.” Sachs explained: “Both urge us to look after our personal needs without forgetting our compassion toward others in society. Both cautioned that the single-minded pursuit of wealth and consumption leads to addictions and compulsions rather than to happiness and the virtues of a life well lived.” “Throughout the ages,” he said, “other great sages, from Confucius to Adam Smith, to Mahatma Gandhi and the Dalai Lama, have joined the call for moderation and compassion as the pillars of a good society.” “To resist the excesses of consumerism and the obsessive pursuit of wealth is hard work, a lifetime challenge. To do so in our media age, filled with noise, distraction and temptation, is a special challenge. We can escape our current economic illusions by creating a mindful society, one that promotes the personal

term, the North Korean issue may be more a newspaper headline excuse for these meetings. The star of the show is obviously Trump, who is making the longest trip of any US president to Asia since the administration of George H. W. Bush in 1992. Trump enjoys widespread approval in Asia while, at home, he is experiencing near historic rating lows. Much of that probably has to do with Asians voting the person more than the “policy.” Of course, that fact comes under great criticism here in the Philippines, but does not bother voters in other Asian countries. A result of the Philippines’s colonial history with the US perhaps? Further, countries like the Philippines were left abandoned by the Obama administration. You would be hard pressed to find any particular benefit to the smaller Asian nations from the Obama “Pivot to Asia.” Even while the Chinese and US governments are at odds over trade, currency and power projection in Asia, the Chinese people—evidenced through their social-media platforms —simply like Trump. All Filipino eyes will be on the meetings between Trump and

virtues of self-awareness and moderation, and the civic virtues of compassion for others and the ability to cooperate across the divides of class, race, religion and geography. Through a return to personal and civic virtue, our lost prosperity can be regained,” he argued.

America is ready for reform

After meticulously vetting America’s burdensome economic history in the first half of his 322-page book, Sachs was specific on what should be done. He said: “First, can we really afford more government activism in an era of huge budget deficits? I’ll show that we both can and must. “Second, can a program of thoroughgoing reform really be manageable? Here, too, the answer is yes, even by a government that currently exhibits chronic incompetence. “Third, is a reform program politically achievable in an era when politics is as divisive as it is today?” “Successful reforms,” he said, “are almost always initially greeted with a broad chorus of skepticism. ‘That is politically impossible.’ ‘The public will never agree.’ ‘Consensus is beyond reach.’ These are the jeremiads we hear today whenever deep and real reforms are proposed. During my quarter century of work around the world, I’ve heard them time and again, only to find that deep reforms were not only possible but eventually came to be viewed as inevitable.” Much of his book is about the social responsibility of the rich, “roughly the top 1 percent of American households, who have never had it so good. They sit at the top of the heap at the same time that around 100 million Americans live in poverty or in its shadow.

Duterte. For Trump, this will be an opportunity to make clear in substance rather than form that his administration is different from the Obama administration. That may mean a move forward for more trade from the Philippines to the US. It could also mean a stronger US position on Philippine territorial claims against China. The President will probably take the opportunity to show the nation that the US is still firmly in Philippines’s corner regardless of past Duterte rhetoric. Aside from the Trump/Duterte encounters next week, the most interesting and perhaps important will be between Duterte and Russian President Vladimir Putin. In the Asian scene, Putin is caught between Trump and Xi Jinping. A much closer relationship between the Philippines and Russia could have some consequences for the power struggle taking place among the US, China and Japan. Let the games begin. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

“I have no quarrel with wealth per se. Many wealthy individuals are highly creative, talented, generous and philanthropic. My quarrel is with poverty. As long as there is both widespread poverty and booming wealth at the top, and many public investments (in education, child care, training, infrastructure and other areas) that could reduce or end the poverty, then tax cuts for the rich are immoral and counterproductive. “I’m a firm believer in the market economy, yet American prosperity in the 21st century also requires government planning, government investments and clear, long-term policy objectives that are based on the society’s shared values. Government planning runs deeply against the grain in Washington today. My 25 years of work in Asia have convinced me of the value of long-term government planning— not, of course, the kind of dead-end central planning that was used in the defunct Soviet Union, but long-term planning of public investments for quality education, modern infrastructure, secure and low-carbon energy sources and environmental sustainability.” Sachs, an author of five highly acclaimed and persuasive books, is the director of the Earth Institute at Columbia University and a United Nation special adviser. He is internationally renowned for his contribution to solving some of the world’s most daunting economic and social crises in his role as a leading scholar and an economic mentor to governments and international organizations. Don’t miss his books!

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

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Broken promises

Like wise bridal maids Msgr. Sabino A. Vengco Jr.

Val A. Villanueva

Businesswise

resident Duterte won the 2016 election by piggybacking on the people’s disenchantment with the difficulties they had to face in their daily lives. Rightly or wrongly—or maybe fuelled by some vested interest groups—they all heaped the blame on the administration of former President Benigno S. Aquino III.

Alálaong Bagá

S we approach the closing of the liturgical year, the unpredictable coming of the Lord at the end of time is something we must be ready for in active watchfulness like the wise bridal maids did (Matthew 25:1-13).

The wedding maids The infuriating traffic gridlock, the worsening drug problem (Duterte’s centerpiece program), Aquino’s perceived lack of empathy and accountability on the “SAF 44” incident where special action forces were “massacred” in Mamasapano during a covert operation to arrest Malaysian Zulkifli “Marwan” Abdhir, one of the Federal Bureau of Investigation’s “Most Wanted Terrorists.” The operation killed Marwan, but at the expense of what the media described then as the “fallen 44.” The Duterte campaign team expertly capitalized on these and other issues. Duterte’s theatrics wowed and won over 16 million voters, certainly not the majority, but large enough to put him in Malacañang. After more than a year, however, the problems that beset the previous administration remain and seem to have gotten worse. Duterte’s war on crime and drugs has snuffed the life out of the impoverished, and the collateral damage has become worrisome. At the outset, the people applauded this reckless bloodletting. To those who put him in power, Duterte could do no wrong. He is their knight in shining armor, a hero, a demigod. His fanatic supporters seem to relish the gore, with the killing rampage unfolding like that in a Sam Peckinpah blockbuster movie of old. But as more innocent and young people were wrongly and savagely executed, people started to question the propriety of such statesanctioned operations. The killing of a youngster, Kian de los Santos, has awakened the citizenry to openly challenge Duterte’s flawed policy Now, people doubt whether Duterte can really deliver. According to the uncommissioned September 23 to 27 nationwide survey of the Social Weather Station, the number of those who expect Duterte to fulfil most of his promises has nosedived to 35 percent, from 63 percent in 2016. Among 1,500 respondents, only 8 percent of Filipinos are still hoping for the best, while 27 percent doubt if Duterte can fulfil what he vowed to do during the campaign: solve traffic in three months; rid the country of drugs in six months; end the practice of endo; go after police “scalawags”; intensify anti-terrorism efforts; implement tax reforms; and pursue peace efforts with the Moro Islamic Liberation Front, among others. Interestingly enough, this survey comes just months after Duterte’s popularity and trust ratings significantly declined. But to the President’s fanatics whose distorted view of reality labels bananas as apples and red as blue, surveys such as this are pure garbage if they impact negatively on their idol. Among those who bewail Duterte’s unfulfilled campaign promises, the growing sentiment is that they’ve been had. The country may be in for an even rougher ride. Consumer prices in October was at its fastest leap in almost three years, chiefly due to higher oil and transport costs joined by a weak peso. The maximum inflation forecast for October was 3.6 percent year-on-year by Standard Chartered Bank. Some economists anticipated 3.5 percent. Philippine Statistics Authority (PSA) data also hint that if the October inflation rate hit at least 3.5 percent, it could be the fastest rate of upsurge in prices of basic goods since November 2014’s 3.7 percent. Weaker peso is also seen contributing to the upward price pressures during the month, according to the Banko Sentral ng Pilipinas (BSP).

The estimate range for October was above the BSP’s projection of between 2.8 percent and 3.6 percent for September. According to PSA’s math, the quicker inflation rate was pushed by food prices. Higher than most staples are the prices of corn, meat and vegetables. Mirroring the peso devaluation, imports-related prices in housing, water, electricity, gas and other fuels rose by an overall 4.6 percent, according to PSA. We could only expect weakened purchasing power until the end of the year, which is usually when we experience curt consumer spending pushing up prices. Also, manufacturers typically pass on to consumers the burden of higher costs for the petroleum products, equipment and raw materials they use in their operations, thereby swelling prices of goods and commodities. This price bearing disastrously affects everybody, even those families relying on dollar remittances from overseas Filipino workers. The combined effects of peso decline and inflation could raise food costs, which could adversely affect what these families spend on schooling, conveyance, health and relaxation. What about those families with no greenback to depend on? Inflation triggered by a feeble peso can be punitive, especially in the regime of inactive or dwindling household incomes worsened by mounting unemployment. Records show that, as of July this year, about 2.37 million Filipinos were without jobs, 1.8 percent more than last year; and another 6.54 million were not having enough paid work or not doing work that makes full use of their skills and abilities. Equally disturbing is how the rest of the world sees us. Our country ranked highest in impunity, according to the 2017 Global Impunity Index (GII) conducted by the Universidad de las Americas Puebla and Jenkins Graduate School. The study was conducted among 69 countries, and excluded 124 other member states of the United Nations due to lack of sufficient information on security and justice. The Philippines topped the impunity index with 75.6 points, followed by India with 70.94 points. Other countries that garnered high scores were Cameroon, Mexico, Peru, Venezuela, Brazil, Colombia, Nicaragua, Russian Federation, Paraguay, Honduras and El Salvador. “The Philippines is going through one of its critical moments,” noted the GII, “due to the increase of violence related with organized crime and increased terrorist activities from local gangs linked with the Islamic State.” The GII said that high rates of impunity can lead to socioeconomic disparity, legal inequality, rule-of-law problems and insufficient economic development difficulties to attract foreign investment and tourism, as well as an increase in human-rights violations. Duterte mistakenly believes that his administration is getting hit because of the inadequate or inefficient delivery of his messages. He replaced the mild-mannered Ernesto Corpuz Abella with the loquacious Harry Roque as his spokesman, oblivious to the fact that it is ultimately the quality of the product and not the garrulousness of the salesperson that counts. We must all brace ourselves for the tough times ahead. For comments and suggestions, e-mail me at mvala.v@gmail.com

The somewhat bizarre wedding parable, when returned to its original simple line, tells of the coming of the groom, which is symbolically the advent of God’s kingdom, as well as of the failure of some people to get included in its joy even as others prove themselves ready to share in it. This forthright message of the original parable of Jesus became embellished and allegorized in the retelling from community to community and from its oral to its written form. Last, within the evangelist’s framework of the great discourse in chapter 25 about the end of the world, Christians are exhorted also by means of this wedding parable to prepare for that event whenever it may happen.

In the Palestinian world, a wedding is a grand happening that attracts everyone and to which everyone is invited. In Scripture, a wedding celebration naturally illustrates the gathering and rejoicing fulfilled in the kingdom of God, a figure for the messianic banquet. The bridal maids, who customarily join the bride in waiting for the groom in order to proceed together with them to the wedding feast, aptly represent the invited people waiting for the celebration. Those who are prepared participate in the procession and enter the feast. Not everyone, however, is like those ready bridesmaids, for there are those foolish ones who somehow are not prepared when the groom comes to fetch his bride.

Thursday, November 9, 2017 A11

The wise and the foolish

The parable as we have it includes the unexplained long delay by the groom, while the bride and her maids wait at home. Finally, the groom is sighted coming. And the wisdom of some bridesmaids becomes manifest as they ready their individual lamps; the delay is not disastrous for them because they have enough lamp oil in reserve. But there are those bridesmaids who vainly try to ready their lamps for the procession, for they have no more oil. They are foolish in being improvident for the wedding without calculating for possible emergencies. The wise bridal maids are ready for any eventuality and do not take chances. For us, this wedding parable logically metamorphosed to a “second coming” exhortation. The Parousia, or the final coming of Christ, the eschatological groom, is unpredictable and open to delays. We are kept waiting, and it is idle to speculate about its day and hour. But such waiting can cause discouragement and anxiety, and also carelessness and doubt. That is why the final coming calls for positive thinking and meaningful behavior. These existential needs of the early Christians necessitated the realignment

Filing and processing of refund claims Fulvio D. Dawilan

Tax Law for Business

ast month, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular 89-2017 (RMC 89-17), which amended the previously issued rules relative to the processing of claims for refund/issuance of tax credit certificate (TCC) and the required revenue officials authorized to approve said claims. One of the significant changes introduced by the new circular pertains to the value added tax (VAT) claims by direct exporters. Based on the old rules, all claims are filed with the respective revenue district offices (RDOs) of the claimant. In the new circular, however, all VAT claims by direct exporters should be filed with and processed by the VAT Credit Audit Division (VCAD). This is not mandatory for taxpayers under the jurisdiction of the large taxpayers service, who may either file with the large taxpayers division, where they are respectively registered, or file with the VCAD. Claims processed by the VCAD shall be reviewed by the Tax Audit Review Division (TARD) prior to the approval by the final approving revenue official. The revenue official authorized to finally approve a claim shall either be the Assistant Commissioner-Assessment Service, Deputy Commissioner-Operations Group or the Commissioner, depending on the amount of the claim and/ or the amount granted. For the other refund/TCC claims by taxpayers registered with the RDOs, including VAT claims by indirect exporters, the same should be filed with and processed by the

concerned RDO, and shall be reviewed by the Assessment Division of the Region. The regional director shall be the final approving authority for claims amounting to P10 million and below. Upon the recommendation by the regional director, claims exceeding P10 million shall be forwarded to the TARD for further review prior to the final approval by the authorized revenue official. Aside from specifying the revenue offices and the revenue officials authorized to process, review and approve the claim, the new circular also clarified/added rules on the timeframe for the processing of VAT refund/TCC claims for input taxes related/attributable to zero-rated sales/receipts under Section 112 of the Tax Code. This is in relation to the 120-day period given to the Commissioner to act on the application for refund/TCC, which, as clarified by RMC 054-14, is deemed denied if no action is made within the said 120-day period. In the past, there had been controversies as to when the 120-day period commences to run, considering that the law says that it should start from the submission of complete documents in support of the

Placing internal timelines in each of the processing/ reviewing revenue offices may contribute in the speedy processing of a taxpayer’s claim. However, it may also result in the shortening of the supposedly 120-day period allowed for the BIR to act on a claim, to the detriment of the claimant.

application. By implication, upon the issuance of RMC 054-14, the 120-day period should be counted from the date of filing of the application, as the same circular requires the submission of the complete documents upon the filing of the application. This is made clearer by RMC 89-17 as it now specifically states that the 120-day period shall start from the date of filing of the application. In addition to further clarifying the commencement of the 120-day period, RMC 89-17 split this 120-day period into the different stages in the processing/approval of the application for input tax refund. For claims processed by the RDO or the VCAD, the same should be forwarded to the TARD within 80 calendar days from the date of the filing of the application. Except for justifiable reasons, the TARD shall not accept the docket beyond this prescribed 80-day period. The TARD, on the other hand, should transmit the docket to the approving official within 100 days from the filing of the application and for the approving official to act on the recommended claim within the 120th day from the receipt of the application by the processing office. Placing internal timelines in each of the processing/reviewing

Insuring against the risk from insurance

ompared with the banks, insurance companies withstood the calamity of 2008 pretty well. American International Group Inc. (AIG) was the main exception—it needed an enormous bailout— but the rest of the industry was spared the worst. Does this mean that insurance companies pose no great challenge for financial regulators? It doesn’t. The insurance business is posing a bigger systemic risk than it used to. Regulators need to pay closer attention. For years, life insurers promised policyholders guaranteed returns. When interest rates came down, some companies (notably in Germany) struggled to deliver. Managers responded by taking

on more risk. They’ve invested in riskier bonds and less-liquid assets, including infrastructure projects, which are harder to sell in the event of a crisis. These trends are grounds for concern. Insurance companies may face liquidity pressures if a lot of policyholders cash in their contracts at once. Some of the firms are extremely large and connected in complex ways to other parts of the financial system. As AIG showed, this can create a version of the “too big to fail” syndrome that demands additional scrutiny of systemically important banks. Regulation of the insurance industry is relatively relaxed. For example, insurers aren’t required to mark all their

liabilities to market. This makes some sense, because companies don’t typically redeem these liabilities on short notice. Nonetheless, insurers are vulnerable to market shocks. The International Monetary Fund recently simulated the impact of a shock in the equity and real-estate markets, and of a flight to high-quality sovereign bonds. It found that the insurance business would be severely affected. “If such a shock were to occur,” it reported, “it could mean that life insurers would be unable to fulfill their role as financial intermediaries, precisely when other parts of the financial system are failing to do so.” Regulation in the industry has evolved since the crash, but the

of the wedding parable to emphasize preparedness and watchfulness, attentiveness and convinced hopefulness in the return of Jesus. Alálaong bagá, the oil needed to join in the wedding cortege stands for doing the will of the Father, as our Lord clearly pointed out: “Not everyone who says to me, ‘Lord, Lord,’ will enter the kingdom of heaven, but only the one who does the will of my father in heaven” (Matthew 7:21). The foolish bridesmaids without oil for their lamps have merely the words “Lord, Lord,” hollow without Christian deeds and incapable of opening the closed doors to the wedding of the Son of Man. No wonder the wise bridesmaids could not share their oil with the foolish ones, for it is deep personal relationship with God as one lives in faithfulness to Him; it is not something that can be borrowed by someone else at the last minute. Indeed, preparedness is not just empty “waiting for” something to take place, but actively participating in the process leading to its fulfillment. Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

revenue offices may contribute in the speedy processing of a taxpayer’s claim. However, it may also result in the shortening of the supposedly 120-day period allowed for the BIR to act on a claim, to the detriment of the claimant. For instance, what happens if the 80-day period is not observed by the RDO, the regional office or the VCAD? Considering that the docket will not be accepted by the TARD beyond this period, does this mean that the claim will no longer be processed further? And if so, will this be considered a deemed denial of the claim, or will there be actual issuance of a denial of the claim? Similarly, if the TARD fails to complete its review and submit to the approving official before the end of the 100th day, is there already a deemed denial? Also, while the circular requires that the approval by the final approving authority be made within the 120th day, there are instances that the claim is still subject to further evaluation/review/ approval by other government agencies, such as the Bureau of Customs (BOC). In this instance, when is the claim considered granted—approval by the BIR or by the BOC? These are just among many questions and concerns in relation to this new issuance. We hope that further clarifications be issued to guide the taxpayers in chasing their claims. The author is a senior partner of Du-Baladad and Associates Law Offices, a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported therefore by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at fulvio.dawilan@ bdblaw.com.ph or call 403-2001 local 310.

assessment of risk needs further improvement. Data is lacking, and it’s harder than it should be to compare liabilities across countries. The United States makes banks submit to regular stress tests, but makes no such demand of insurers. There’s a harmonized international regime for setting capital standards for banks, but not for insurers. This needs to change. Better and more fully comparable data is essential; attention should be paid to the need for bigger capital buffers; and, as long as solvency remains an issue, regular stress tests would be wise. The effort needs to be international. And the time to look at this more carefully is now—before, not after, the next financial crisis. Bloomberg View

2nd Front Page BusinessMirror

A12 Thursday, November 9, 2017

PHL won’t even build huts on disputed cay T

By Rene Acosta

@reneacostaBM

he military has dropped plans to put up makeshift structures for Filipino fishermen on a sandbar in a Philippine-claimed territory that China continues to dispute after it was stopped by President Duterte upon the advice of the Department of Foreign Affairs.

Defense Secreta r y Delf in N. Lorenzana said the Commander in Chief halted the construction of the makeshift shelters for fishermen in the West Philippine Sea in August, after he was advised by Foreign Secretary Alan Peter S. Cayetano that it may be violative of a regional agreement. “It was explained to him by the Foreign Affairs secretary that we had an agreement that nobody should

occupy new structure. So the President said…we will just pull out,” the defense chief told military reporters at the sidelines of the defense forum held by the Stratbase ADR Institute in Makati City. Lorenzana did not say whether the sandbar was the Sandy Cay, which Supreme Court Senior Associate Justice Antonio T. Carpio earlier said had been “invaded” by China by keeping Filipino fishermen

LORENZANA: “It is not a permanent structure because it is a sandbar. You cannot even dig in there because it’s very soft.”

away from it with militar y and paramilitar y vessels. In August Sandy Cay became another scene of a “standoff” between China and the Philippines, after the military sent soldiers in the area following what was reported as presence of Chinese vessels there, sealing it against Filipino fishermen. Lorenzana denied the standoff, saying it was just a misunderstanding, although he admitted that China protested. “Actually, we brought people there to put structures for our fishermen,” he said. Lorenzana added that at the time, Chinese fishermen were present on the sandbar, which also prompted the country to send a fishing boat

from Navotas. Both sides, however, have left Sandy Cay. According to Carpio, the cay, a disappearing high-tide sandbar that was extensively discussed in the July 12, 2016, ruling of the United Nations arbitral tribunal, forms part of the Philippine land territory, being located between Pagasa and Zamora Reef. Duterte has maintained that it will not confront China over the geological feature, saying the country does not have the military capability and capacity to challenge Beijing. Lorenzana said that when Duterte ordered the military to stop the construction of the makeshift shelters, as it may violate the Asean Declaration of Conduct in the South China Sea as advised by Cayateno, they immediately complied. He said what the government actually brought to the sandbar were “nipa hut” and “bamboos.” “It is not a permanent structure because it is a sandbar. You cannot even dig in there because it’s very soft,” Lorenzana said, describing the sandbar as having a size of about 500 square meters.

‘No debate on drug war in Duterte, Trump meet’ ROQUE: “President Trump has said that President Duterte has done the right thing in embarking on this war on drugs.”

residential Spokesman Harry L. Roque Jr. said President Duterte is unlikely to withdraw from his “brutal” crackdown on illegal drugs, even if US President Donald J. Trump would criticize it during their bilateral meeting. “I think President Duterte, if the issue crops up, will highlight that the exercise of police power is always legitimate in any demo cratic society, and his latest pronouncement on the issue, that he will send to jail Continued on A2

ACADEMIC AIMS Asian Institute of Management (AIM) President and Dean Dr. Jikyeong Kang (center) led the launch of AIM’s new Master of Science in Data Science (MSDS) program and the School of Innovation, Technology and Entrepreneurship (SITE) on November 8 at the AIM campus in Makati City. With Kang are Site Head Chris Monterola and MSDS Academic Program Director Erika Legara. The MSDS program is considered the first data science graduate degree program in the Philippines. The Site, on the other hand, is positioned to be a catalyst for generating impact, powering innovation and creating value in the Asian context. ALYSA SALEN

Drilon set to push review of GCG law to measures that will prevent and penalize alleged abuses exposed in the recent cases of alleged self-dealing by SSS officials and excessive bonuses in some GOCCs. The chairman of the SSS, Dean Amado O. Valdez, has promised a full and fair investigation, and assured the fund’s members their investment funds are intact. However, he acknowledged that, per the initial details provided by Commissioner Jose Gabriel M. La Viña, there could be a clear conflict of interest committed by some officials if, indeed, they are found to have tapped the SSS’s accredited stockbrokers to advise them on their alleged personal trades in the market. La Viña, in his administrative complaint, accused SSS Executive Vice President for Investments Rizaldy Capulong and three others of serious dishonesty and grave misconduct. The others are Equities Division Chief Reginald Candelaria, Equities Product Development Head Ernesto

Francisco and Chief Actuary George Ongkeko Jr. Capulong, Candelar ia and Francisco allegedly acted on the advice given by the SSS-accredited stockbrokers and used the information for personal trades, i.e., to buy and sell stocks and earn profits using information that otherwise should have been used to grow the SSS investments. Ongkeko was included by La Viña for his alleged neglect in keeping records of the trades allegedly done by the three others. Under R A 10149, government officials can be held liable for violating their fiduciary duty. Meanwhile, Section 24 on Restitution could also be revisited in the upcoming Senate review, in the context of the Commission on Audit’s (COA) disallowance of the billions in bonuses and allowances received by officials and employees in dozens of GOCCs, led by the Philippine Charity Sweepstakes Office (PCSO). Section

24 states that, “Upon the determination and report of the Commission on Audit that properties or monies belonging to the GOCC are in the possession of a member of the board or officer without authority, or that profits are earned by the member of the board or officer in violation of the fiduciary duty, or the aggregate per diems, allowances and incentives received in a particular year are in excess of the limits provided under the Act, the member of the board or officer, receiving such properties or monies, shall return the same to the GOCC.” It adds, “Failure to make the restitution within 30 days after a written demand has been served shall, after trial and final judgment, be punished by an imprisonment of one year and a fine equivalent to twice the amount to be restituted, and in the discretion of the court of competent jurisdiction, disqualification to hold public office.” Moreover, Section 20 of the same law included provisions on Trustee

Continued from a1

Relation to the Properties, Interests and Monies of the GOCC, which states, thus: “Except for the per diem received for the actual attendance in board meetings and the reimbursement for actual and reasonable expenses and incentives as authorized by the GCG, any and all realized and unrealized profits and/or benefits including, but not limited to, the share in the profits, incentives of members of the board or officers in excess of the authorized by the GCG, stock options, dividends and other similar offers or grants from corporations, where the GOCC is a stockholder or investor, and any benefit from the performance of members of the board or officers of the corporation acting for and in behalf of the GOCC in dealing with its properties, investments in other corporations, management of subsidiaries and other interest, are to be held in trust by such member of the board or officer for the exclusive benefit of the GOCC represented.”

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Piketty, Marawi, Wadi Continued from A1

Now what has Piketty got to do with Marawi? Well, his ideas on how to tackle fundamentalist Islamic terrorism in France somehow resonate at home. It will be recalled that on November 13, 2015, ISIS militants launched a series of attacks against civilians in Paris that left 130 dead. Europe and the rest of the world were shocked, especially at the callousness of the terrorists who rained bombs and bullets in French cafés, restaurants, a theater and a football game. The response of the French government was a sweeping security beef up, targetting in particular the Islamic migrant communities that form part of the ghettoes of France. A week after, Piketty wrote for Le Monde a short article entitled “A Crackdown Alone Will Solve Nothing.” He explained that the ISIS movement was bred by “the humiliations and injustices” that Arab Muslims have suffered in the Middle East. Piketty went on to cite how the West sundered the Arab borders in the 1920s, destroyed the Iraqi government, and interfered in Kuwait to ensure the flow of oil to the emirs and Western companies. He wrote: “There is no question: terrorism is fueled by the inegalitarian powder keg of the Middle East, which we [meaning the developed capitalist countries] largely helped to create.” On inequality in the Middle East, Piketty further wrote: “Beyond the clash of religions, the concentration of oil resources within a small, unpopulated territories shapes and undermines the region’s whole political and social system.” About 10 percent of the population, consisting of the “oil monarchies,” hold a combined 60 percent to 70 percent of the GDP, with the masses from Egypt and Iran to Syria and the Arabian Peninsula wallowing in poverty. This, according to Piketty, “makes the region the most unequal in the world.” Is this the reason Saudi’s new political leader, the Crown Prince Mohamed bin Salman, has launched a sweeping anti-corruption drive that has led to the detention of dozens of billionaire ministers and members of the royalty? To prevent the rise of another Osama bin Laden and to still the unrest building up among the Saudi population? To Piketty, the general solution to terrorism is “social development with equity” and that “a development model that is so unequal can only lead to disaster.” In Piketty’s logic, fortifying France with arms, espionage and more security personnel is meaningless if the root causes of social and economic exclusion and alienation for a large part of the population, including migrants, are not addressed. The question now is: Can social development with equity be developed also for Marawi, Mindanao and the whole country? As articulated by our own military officials and security experts, the liberation of Marawi from the Maute forces does not signal the end of terrorism in the country. It can resurface in new forms and shapes in various places of Mindanao and the country. Like in France, our government is pouring resources on the military and police forces, promising higher salaries and procuring new and modern arms from a variety of countries: the United States, China, Russia and even Israel. The government is also allocating double-digit billion-peso amounts for the rebuilding of Marawi, the pulverized Queen City of the South. But how is the social rebuilding being undertaken? Are the socioeconomic and infrastructure programs being hatched beneficial to all in an equitable and sustainable manner? Will the Duterte administration be able to avoid the anti-poor measures committed in the post-Yolanda rebuilding efforts? For example, one harebrained policy measure adopted by the past Aquino administration was the no-build zone policy, which stipulates that no houses or settlements shall be allowed to be built within 40 meters of the shore land to avoid a repetition of the tsunami-like disaster that hit Tacloban. The authors of this policy failed to recognize that majority of the fisherfolk in the Visayas and other coastal areas of the country have houses situated within the so-called no-build zone. To simply ask the fisherfolk families to vacate the prohibited areas without any clear resettlement program, without any alternative livelihoods and without any coordination and transition programs is cruel and patently anti-poor. To make matters worse, in some Yolanda-hit areas, the poor were asked to vacate lands that were taken over eventually by rich resort developers. This was dubbed by some civil-society organization activists as nothing but “disaster capitalism.” But back to Marawi. Prof. Julkipli Wadi of the UP Islamic Studies, in a recent assembly organized by the Laban ng Masa, expressed fears that Marawi represents a new “theater of war” in Mindanao, and that the wounds in the hearts of the Marawi youths are likely to fester for a long time, despite the government’s promises of full rehabilitation for the city. Their anger is likely to manifest in various forms in the future. And the objects of their anger can be any of the following: the radicals who based themselves in the city, the narco-politicians and their families, and the military who destroyed the city through widespread “overkill” bombing. Like Piketty, Wadi also raised broader social and political issues related to the Marawi conflict, such as the unresolved struggle of the Bangsamoro people for self-government and freedom. At the same time, Wadi pointed out that segments of the Islamic population are aligned with the struggle of the Islamic world against the “structural globalization” imposed by the developed capitalist countries in the Middle East in tandem with select monarchies. This globalization is opposed by “transnational political Islam,” which has nurtured the radical ideas that have been imbibed by the ISIS, al-Qaeda, Abu Sayyaf, Bangsamoro Islamic Freedom Fighters, Maute Group and other radical Islamic groups. Wadi warned that the conflict in Mindanao is likely to worsen as a result of the Marawi war. Moreover, the situation of the poor in Mindanao has been worsening because of widespread landgrabbing and abuses by the traditional politicians, warlords (and drug lords) and foreign interests. So, to Wadi, what is needed is a comprehensive program of reform and rehabilitation that gives priority on how to rebuild the trust of the Maranaos, Yakans, Tausugs and tribal people on government. How? Piketty’s answer sums it up neatly: social development with equity.