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n Monday, April 2, 2018 Vol. 13 No. 170

Mining, tourism woes make environmental rights a must

By Bernadette D. Nicolas

@BNicolasBM

he environmental issues hounding Boracay, Panglao and El Nido, as well as the ecological damage being left behind by miners, are just some of the compelling reasons that made experts agree to the consultative committee’s (Con-com) plan to introduce a number of environmental rights in the proposed federal charter.

T he 20 -member Con- com, chaired by former Chief Justice Reynato S. Puno, seeks to adopt a self-executing provision on environmental rights by the second week of April, covering: right to clean air and clean water, right to a healthy environment and ecology, right to the preservation of ecosystems, right to be protected from activities that destroy the environ-

ment, right to sustainable development, right to compensation for damage to environment, recourse to courts for immediate protection and a stronger Writ of Kalikasan in the Bill of Rights, so that it may not be subject to withdrawal or revision by Congress or the Supreme Court. A lthough the Con-com acknowledged the presence of strong

environmental laws in the country, Puno told the BusinessMirror that the sentence-long environment-related provision in the 1987 Constitution, as shown under Article II Declaration of Principles and State Policies, is not enough. Section 16 stressed that: “The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the

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Finding the right balance: A cautionary tale on monetary policy

The only provision in the 1987 Charter that relates to environmental rights rhythm and harmony of nature.” “Of course, these developments only validate the feeling that the 1987 Constitution does not sufficiently protect the three generations of human rights,” Puno said, noting that the Bill of Rights did not include some socioeconomic rights and environmental rights. “If you will include it in the Bill of Rights, that means you’re strengthening the right.” Puno also noted the country has been left behind when it comes to the enshrinement of environmental rights, as this has been done in other countries and in various treaties. Continued on A2

BSP Deputy Governor Diwa C. Guinigundo

onetary policy is both a science and an art of trade-offs. For example, the idea of Phillip’s curve in macroeconomics shows that there exists an inverse relationship between unemployment (or output) and wages (or inflation). This can also be formulated in terms of higher output growth being associated with higher prices or inflation. In practice, these trade-offs imply that monetary policy has real and significant economic costs. On one hand, when a central bank raises interest rates prematurely, it runs the risk of the economy slowing down. On the other hand, when the central bank raises interest rates too late, it could potentially fuel inflationary pressures leading to overheating. Thus, achieving an optimal policy that encourages growth in an environment of low and stable inflation requires a careful balancing act. Nobel laureate Joseph Stiglitz aptly captured this notion when he suggested that monetary-policy prescriptions should come with a big label: Use only with caution and careful understanding of the risks. Despite the humor, Stiglitz intended to remind all of us that monetary policy needs to be done within a specific framework and guided by a long-term, rather than a myopic strategy. In other words, one Continued on A16

PSPs challenging a PSP Alberto C. Agra

@butchfBM

mid fears that Islamic extremists continue to feed on economic woes to recruit and regroup for another wellorchestrated attack similar to the Marawi siege, lawmakers are racing against time to finally craft a law that will ensure lasting peace and development in the South: this time, a version that has been rid of the perceived constitutional flaws of the first Bangsamoro basic law (BBL) bill, and which can stand alongside a federalist setup, should Continued on A16

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Art. II, Sec. 16

Senators eye ‘constitutional, healing’ BBL by May break By Butch Fernandez

2016 ejap journalism awards

ead

PPPC.LAgra Alberto

-A-C-T. Public-private partnerships, which are agreements between government/implementing agencies (IAs) and private sector proponents (PSPs), must observe four selection requirements. These are: Public Advantage, Accountability, Competition and Transparency. Straight negotiations must be avoided. Without PACT, the act (i.e., the PPP contract) may be voided and the actor (i.e., the parties to the PPP contract) held liable.

EASTER SUNDAY FUN AT THE BAY Children frolic in the waters of Manila Bay in Pasay City on Easter Sunday. ALYSA SALEN

PESO exchange rates n US 52.2070

Continued on A15

n japan 0.4957 n UK 73.9251 n HK 6.6535 n CHINA 8.3165 n singapore 39.8648 n australia 40.0793 n EU 64.7628 n SAUDI arabia 13.9226

Source: BSP (28 March 2018 )

A2 Monday, April 2, 2018

BMReports BusinessMirror

‘Forcing mineral processing via legislation won’t work’

urrent proposals by some sectors to ban the export of unprocessed mineral ores in an effort to boost domestic mineral processing won’t work, mining experts from the academe, government and industry said. At a forum organized by independent think tank Stratbase ADR Institute, experts from the academe, government and industry discussed the Philippine mining industry in the context of promoting national security through industrialization. “There is a need to look at the massive mineral potential of the Philippines today more than ever, especially in the context of the Duterte administration’s Build, Build, Build program. Having a conversation with all sectors will help uncover issues and solutions vital to pursuing mining downstream industry development to further our national security interest,” said ADRi President Prof. Dindo Manhit. Philippine Business for Environmental Stewardship Secretary General Atty Lysander Castillo said: “We recognize the strategic impact of responsible mining in the country’s remote areas not only for job creation but also infrastructure, and all the hospitals and schools that the mining industry actually provides. There are existing local models that performs beyond laws that sets high benchmarks in environmental protection and community development for all mining operations to emulate.” Ateneo School of Government Dean Dr. Ronald Mendoza presented his study, “Mining through the National Security Lens,” where he cited the lack of viable investments and capacity in processing and strong competition from other countries as among the factors that make the suggested ban counter-productive. “The United States’ recent policy regarding steel may be an additional complicating factor, and it is well-known that China is shopping around to unload its excess supply of manufactured processed minerals,” he said. These trends make the environment much more volatile, he added. He said imitating the mineral-industry models in countries like South Korea, China and Australia is unsound because, unlike the Philippines, these countries have “complete value chains.” “Markets do not necessarily produce those jumping points and connectivities across these different products on their own. Without government intervention or public sector support, markets will not necessarily lead to the development of industries all the way to the core.” Adrian Cristobal, Jr., former secretary of the Department of Trade and Industry, said: “It is the market; we cannot legislate that (mandatory processing). Indonesia found out they can’t, even if they passed a law on forced processing.”

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Mining, tourism woes make environmental rights a must Continued from A1

Asked if the lack of environmental rights in the Constitution led to the aggravation of the environmental problems in Boracay and in other areas, Puno said: “Well, partly, yes.” According to Puno, the “timidity of the government to enforce these rights” are just one of the factors that contributed to the country’s environmental problems. Since Con-com is tasked to review the current Constitution and to submit its final draft of the proposed Constitution to the President on July 19, days before the Chief Executive’s State of the Nation Address, Puno said it’s all up to legislature and the Supreme Court to strengthen these rights, which they are hoping to constitutionalize. Pressed on the impact of these environmental rights to mining industry, Puno said these will prevent miners from doing practices that will destroy the environment, citing the Nepal Constitution as an example, in which mining companies were made to pay if they cause environmental damage. During the briefing last March 26, Puno said they are strengthening the environmental rights of citizens with this proposal, putting on a par this right to a healthy environment with the civil and political rights of the people. “Meaning to say, this right to a healthy environment will equally be demandable against the state and its agencies,” he said. Chamber of Mines of the Philippines Executive Director Ronald Recidoro stressed that the proposed amendment to include the environmental rights is an attempt to convert the aspiration for a balanced and healthful ecology into a clear and actionable right that will affect all human activity, not just mining. “Our concern is overreach and over-reaction/ overprotection, such that environmental rights become an obstacle to economic growth,” Recidoro

told the BusinessMirror.“Congress must seek a balance between the primordial interest of environmental protection and the pressing call for the country to develop its economy and resources for the benefit of all the people.” He also pointed out that legitimate large-scale mines already follow environmental laws, which are already good and sufficient for the purposes that they are enacted. “The industry is very strictly regulated by the Department of Natural Resources and the Mines and Geosciences Bureau,”he said, adding that the problem lies with the capacity of DENR and MGB to consistently implement these laws throughout the country. According to Recidoro, illegal mining operations are still rampant in many parts of the country. “The illegal ones continue to operate with impunity because, often, the government does not have the manpower, resources or political will to consistently implement the laws, especially against illegal miners,” he said. Cielo Magno, assistant professor at the University of the Philippines (UP) School of Economics, agreed with Recidoro that, although the country has strong environmental laws, the government lacks the manpower and technical capacity to monitor mining activities, such as the production of mining companies. Nevertheless, Magno said the constitutionalization of these rights is still significant, as it is a recognition of the importance of the environment and the ecology. However, she pointed out that the challenge will always be with the enforcement and public education of these rights. “But, at the same time, for those rights to be effective and for the public to be able to exercise it, then public education and enforcement [and] stronger regulation are necessary. If the public is not aware with it, and if they don’t know how to exercise those rights,

then those rights are useless.” By constitutionalizing environmental principles, Magno also believes that, maybe, the government will now be forced to really analyze the impact of mining before it issues any license to operate since, she noted, the country lacks a rigorous process in assessing the environmental impact of mining activities. On the impact of the inclusion of these rights to the tourism industry, Puno agreed that this will lead to more tourist arrivals. “If you will be able to preserve the environment, then there will be more tourists coming in,” he said. Like Boracay, if you were not able to protect it, in a few years’ time, no more tourists will be coming there.” Tourism Assistant Secretary Frederick M. Alegre said in an interview with the BusinessMirror that constitutionalizing environmental rights would be a plus factor in their overall effort to sustain tourist destinations. “We see no problem with its inclusion, knowing that this would even be an added value to our image as not only a fun place to be in but environmentally compliant, as well,”Alegre pointed out. “And this will further boost our foreign tourist arrivals.” He also noted most people in the tourism industry would welcome this proposal. “The opposition would only come from those with short-term goals because the efforts to save and sustain will ensure the future-proofing of our natural resources,” he said. Asked if the proposal will help solve the problem in Boracay and other tourist destinations with environmental issues, he said: “It will be a giant step in our effort to save and sustain our worldclass destinations.” Although the inclusion of these rights would give a stronger backbone to existing environmental policies, Magno also believes that its effect on the number of tourist arrivals is yet to be seen.

“If we are able to preserve our environment and really maintain the pristine state of our nature, then it will attract more tourists because we will have a nicer environment. But, at the same time, higher volume of individuals can also damage the environment, so the challenge is to achieve the balance in terms of environmental preservation and increase of volume of tourists in the country,”she said.“Again, it goes back to regulation.” For both tourism and mining industries, she said proposal would be an additional challenge for players to comply with additional environmental requirements and minimize their environmental footprint. Constitutional law professor Dr. Dan Gatmaytan of UP College of Law stressed the need for the Con-com to craft clear and specific self-executing provisions. “That commission that Duterte created has to be clearer on the kind of language that they want to adopt, so it’s clear how far we can take the Constitution, because, right now, it just says the right to a balanced and healthful ecology,”Gatmaytan said. “It’s not useless to constitutionalize these rights, as long as we are sure and [we know] what we can expect, what we can pursue under a different constitution. If it’s going to be a lot of broad statements, then it’s not going to be different from the one that we have now,” he added. He also noted this proposal would make things harder for both the tourism and mining industries. “I like to think that we cannot arrive at the conclusion that we want a healthy environment without going through some phase where we have to sacrifice a lot, especially for both the tourism and mining industries. If you look at the record of the mining companies, it’s not really impressive. If we want to rehabilitate these industries, then a lot of changes have to be made and, in the meantime, they may not like it,” he said.

Senators eye ‘constitutional, healing’ BBL by May break Continued from A16

Transition Commission that is helping ensure a truly inclusive landmark legislation. He hopes the approved bicameral version of the BBL can be submitted before Duterte’s State of the Nation Address in late-July. The House of Representatives has, like the Senate, also conducted BBL hearings and consultations in the South. The House, though, is still consolidating four bills seeking to provide for the BBL and abolish the Autonomous Region in Muslim Mindanao (ARMM). Zubiri had earlier estimated t hat t he BBL d iscussions “should take around three to four months, hopefully, including all out-of-town consultative hearings, committee work, interpo-

lations and amendments.” Noting that the “draft submitted to us by the Transition Council” contains 126 pages, 18 articles, 267 sections, Zubiri prepped stakeholders for the daunting task ahead. He said it “would be a very difficult bill to tackle, not to mention that we have to debate the constitutionality of some controversial provisions. It won’t be a walk in the park, but the proponents can be assured that I, as a Mindanaoan [he hails from Bukidnon], will put my utmost priority to its approval.” The senator from Bukidnon noted the “confidence-building measures” between the MILF and MNLF on one hand with the Armed Forces of the Philippines. These groups were reported to have aided the military in fighting terrorism

in Mindanao, particularly during the five-month Marawi siege that began May 23, where certain MILF leaders proved vital in communicating with various parties in the conflict. In a separate interview where he was asked whether an impeachment trial for Chief Justice Maria A. Lourdes Sereno might stall key legislation, Zubiri had said whatever happens, “the Senate should prioritize the passage of the BBL, as the cost of war outweighs any other legislation in the agenda. We can’t afford another Marawi in Mindanao or in any other area in the country for that matter. The passage of the BBL is part of the last steps of the final peace agreement with the largest rebel group in the country. That should be the priority.”

Curing BBL bill’s ‘defects’

The urgency notwithstanding, senators have indicated there can be no railroading of such a bill promising fundamental change. Still, Sotto voiced optimism the Senate can cure what President Duterte considers “defects” in the previous administration’s version of the BBL. There are issues even with the latest version, though. Sen. Sherwin T. Gatchalian has questioned the bill’s provision on “length of term and term limits” for Bangsamoro Members of Parliament (BMPs). Gatchalian manifested an intention to push for major amendments in SB 1717 “to ensure that contentious provisions regulating the terms of office of Bangsamoro elective local officials are consistent with the Constitution.”

He zeroed in on SB 1717’s provision under Article VII, Section 13, which states the initial term length of three years for members of the Bangsamoro Parliament (MPs) “without prejudice to the power of the Bangsamoro Transition Authority [BTA] to include in the Election Code a new term of office.” Gatchalian sought to clarify if “this provision would empower the BTA to lengthen the subsequent terms of Bangsamoro MPs to more than three years.” Zubiri replied in the affirmative after consulting members of the BTC. This prompted Gatchalian to suggest that the bill’s controversial provision—virtually skirting term limits—be amended to comply with Article X, Section 8 of the 1987 Philippine Constitution limiting elected local officials to not more than three consecutive three-year terms. At the same time, Gatchalian is prodding the Senate to tighten a provision in the bill to prevent a possible circumvention of the three-term limit for local elective officials prescribed by the Constitution by “dissolving the Parliament.” He cited Article VII, Section 37 of SB 1717, which provides that t he ceremon i a l head of t he Bangsamoro government, called Wali, will be empowered to “dissolve Parliament upon the advice of the Chief Minister after a twothirds vote of no confidence cast by all the members of Parliament.” The provision should be reworded, Gatchalian said, to clarify that the term served by incumbent Bangsamoro MPs at the time of dissolution be recognized as a full uninterrupted term—meaning, “that it will count against the three-term limit.” Gatchalian explained: If such were taken as an interrupted term, that would mean “they can run again as if they were back to their original term; so that if you are on your third term and Parliament is dissolved, you can serve another three terms again. That’s a perpetual term already.” The lawmakers “need to clear this up very well because it’s something that can be abused in the future,” he warned.

BBL and federalism

Meanwhile, Senate President Aquilino L. Pimentel III discounted

the concern that federalism would clash with the goals of the BBL. “Federalism, hopefully, should have answered the concerns of our Muslim brothers because under federalism, there would be many autonomous regional governments,” Pimentel said in an ambush interview. “’Yun sana, but BBL can be achieved through a law and, hopefully,” a law that is “constitutional” can emerge. A s federalism can only be achieved w ith constitutiona l amendments that will take longer to achieve, it made sense to frontload a more “doable” law for the areas now subsumed in the ARMM, according to Pimentel.

Senate Minority backs BBL

One thing going for the timely passage of the BBL is that the Senate Minority bloc, led by Sen. Franklin M. Drilon, has signalled support for its early enactment, even though they continue to fiscalize the Duterte administration on other issues, notably on human rights and foreign policy. Drilon had acknowledged that the BBL could be a viable formula for accelerating Mindanao’s progress, and said he and the Minority bloc are committed to “rise above partisan politics” to help ensure timely passage of BBL. Nonetheless, Drilon—a former Senate President and justice secretary and considered one of the Senate’s legal eagles—said he was keen to “examine everything” to ensure the legislation does not run afoul of the Constitution. “So far from what I have seen, they seem to have addressed and they were conscious of the constitutional limitations,” Drilon said on the sidelines of a presentation by Zubiri. As main author of the Senate version of the BBL bill, Pimentel —himself a Mindanaoan and a Bar topnotcher—vowed that the chamber will craft a measure that passes constitutional hurdles. “I think we all want this (BBL), but we all want to pass a constitutional version.” Zubiri summed up best the two ideals of lawmakers, even while putting a premium on urgency: “What we want is a BBL that promotes healing rather than divisions. A BBL that can stand constitutional scrutiny.”

A4 Monday, April 2, 2018 • Editor: Vittorio V. Vitug

The Nation BusinessMirror

VP vote recount starts today

By Joel R. San Juan

@jrsanjuan1573

he Supreme Court (SC), sitting as the Presidential Electoral Tribunal (PET), will start today (Monday) the recount of votes sought by former Sen. Ferdinand R. Marcos Jr. who claimed that he lost the 2016 vice presidential race due to “massive cheating.”

Former Sen. Ferdinand R. Marcos Jr. and Vice President Maria Leonor G. Robredo

Photo courtesy:

Bongbong Marcos Facebook page and the Office of the Vice President

The recount will start at 8:30 a.m. at the gymnasium at the fifth floor

of the SC-Court of Appeals Building in Padre Faura, Manila.

5,418 The total number of clustered precincts covering the provinces of Camarines Sur, Iloilo and Negros Oriental, which former Sen. Ferdinand R. Marcos Jr. claimed that he lost in the 2016 vice presidential race due to “massive cheating”

Lawyer Jose Lemuel Arenas, PET ad hoc committee member, described the revision as the process of verifying of the ballots, to recount the votes of the parties and to record the objections or claims of the parties objected to or claimed by the parties. The revision will be conducted from Monday to Friday until 4:30 p.m. and will cover three pilot provinces—Camarines Sur, Iloilo and Negros Oriental—with a total of 5,418 clustered precincts. The said provinces were chosen by Marcos as the best provinces where he could prove the irregularities he cited in his poll protest. Arenas said the time limit per ballot box with less than 300 votes will be 5.5 hours, while for 300 to 700 votes

will be 8.25 hours, and for more than 700 votes will be 11 hours. The tribunal is expecting some 213 personnel to come in per day during the recount. These include 60 employees of the tribunal, psychometricians, lawyers and representatives of both parties, and the revisors. The revisors are part of the tribunal’s committee tasked to examine the contested ballots. Once the recount on the first 1,400 ballot boxes is done, the PET will receive the other ballot boxes from Camarines Sur, Iloilo and Negros Oriental. Members of the Philippine National Police, Philippine Coast Guard, Police Security Protection Group and PET guards will secure the recount venue on a round-the-clock basis. Marcos filed the protest on June 29, 2016, claiming that the camp of Vice President Maria Leonor G. Robredo cheated in the automated polls in May that year. In his protest, Marcos contested the results from 132,446 precincts in 39,221 clusters, covering 27 provinces and cities. Robredo won the vice presidential race in the May 2016 polls, with 14,418,817 votes or 263,473 more than Marcos’s 14,155,344 votes. Robredo and her legal team will attend the multisectoral mass organized by the Kaya Natin! Movement for Good Governance prior to the start of the recount.

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Peza backs Duterte’s push for federalism, Plaza says

he Philippine Economic Zone Authority (Peza) supports the Duterte administration’s push to federalism, noting that the agency is ready for this form of government, its top official said. Peza Director General Charito B. Plaza told reporters that the agency is actually decentralizing its operations, wherein services offered by Peza can already be processed among its regional offices. Only the approval of applications is still being handled by the head office in Manila, according to Plaza. “We are planning to regionalize Peza,” she said, adding that the plan is in line with the goal of having an economic zone in every region. She said Peza was able to present the agency’s plan, particularly on revenue sharing, to the committee on constitutional amendments, if the government will shift to federalism. Currently, out of the 5-percent

gross income earned (GIE) that the government is getting from Pezaregistered companies, the national government gets 3 percent, while the local government unit (LGU) gets the remaining 2 percent. “In federalism, it’s the other way around,” Plaza said. However, Plaza added that if the economic zone is a public land, the national government will still be getting 3 percent of GIE. “Peza’s contribution is to create metropolitan area in every region, with ecozones serving as economic drivers. We are promoting new concept of economic zone,” the Peza chief said. “With our ecozone program, we are contributing already in making LGUs empowered, enriched. It’s a preparation for them for self-sufficiency and resource generating. We are doing it now by inviting LGUs to build economic zones,” she added. PNA

With our ecozone program, we are contributing already in making LGUs empowered, enriched. It’s a preparation for them for selfsufficiency and resource generating. We are doing it now by inviting LGUs to build economic zones.”—Plaza

Recruiters of outbound HSWs nix POEA’s ‘no interview’ order By Recto Mercene

@rectomercene

he labor-recruitment sector has expressed its opposition to a circular issued by the Philippine Overseas Employment Administration (POEA), which prohibits interviews of household service workers (HSWs) by foreign principals or representatives of foreign recruitment agencies (FRAs). The sector view the POEA circular as a virtual ban on HSW deployment. Alfredo Palmiery, head of a Hong Kong recruiters association, told POEA Administrator Bernardo Olalia in a letter that preventing foreign principals or their agents from interviewing HSW applicants is a curtailment of the recruitment activities of licensed agencies. The reason for the issuance circular was the increasing number of abuses on HSWs in the Middle East. However, Palmiery said that such abuses are not rampant in Hong Kong, or other parts of Asia and other developed countries. The main purpose of foreign principals in coming to Manila is to personally select applicants for HSW to match the applicant for their clients. This is to prevent any mismatch of applicants to work, which may end up to the disadvantage of the workers themselves. Sometimes this may end up in termination or repatriation. Palmiery added that the letter of authority issued by the POEA was requested by agencies to replace the special working permits issued by the Bureau of Immigration (BI).

The industry negotiated with the BI that a letter of authority from the POEA would suffice for foreign principals to interview workers instead of the permit that has been the practice since 2001. Numerous cases of arrests and extortion were reported agaisnt foreign principals before 2001, especially Japanese principals who were interviewing applicants for the entertainment industry. Palmiery added that if the objective of the circular is to reduce the number of workers applying for work abroad, this will not happen. “The government cannot stop Filipinos from working abroad to earn for their families,” he said. The introduction of the HSW Reform package in 2006 aims to reduce the number of outbound HSWs. But the higher salary of $400 appeared to have attracted more applicants. HSW deployment has gone up since then, from 41,000 in 2007 to 205,000 in 2016. The head of the recruitment agency said licensed agencies are partners of the government in combating illegal recruiters and human traffickers, and by imposing a ban on interviews and deployment will only aggravate the illegal trafficking of HSWs. The industry also requested that prior consultation with the stakeholders should be the rule rather that the exception. This has been the previous practice of former administrators to promote good and harmonious relations with the recruitment industry.

Sun vow

A family of farmers dons long-sleeved tops, gloves and wide-brimmed buri hats as protection from the scorching heat of the sun while working at a farm in Davao City. According to reports, Davao, home region of President Duterte, has set up its target to renew its agriculture, fishery and forestry production. ALYSA SALEN

Holy Week violence in Negros Occidental kills 2, wounds 5 B

ACOLOD CITY—Two men died, while five others were injured in separate shooting incidents in Negros Occidental on Good Friday and Black Saturday, reports from the Police Regional Office 6 in Western Visayas and the Negros Occidental Police Provincial Office showed. At about 5:30 p.m. last Friday, Sunny Villamor, 58, of Barangay Tabugon, was gunned down on his way home from Barangay Camansi allegedly by two suspects identified as Joseph Dequitos, 21, and Josing Caliwa, 38, both residents of the village. Initial investigation of the Kabankalan City Police showed Vil-

lamor came from the house of Rodelo Esteban where he watched a card game of tong-its when attacked. Villamor’s son, Sammy, 18, witnessed his father being shot by the two suspects. According to the report, Dequitos and Caliwa followed the elder Villamor from Esteban’s house. It said Dequitos fired but missed Villamor, and was even able to stab Caliwa, who in turn fired at the victim. Dequitos again shot Villamor dead. Policemen were able to arrest Caliwa, who was brought to Bacolod City to get treatment for his stab wound. Dequitos, however, was able to escape.

Police investigation showed that on March 28, Villamor and Caliwa fought over a game of tongits, with the former accusing the suspect of cheating. In Moises Padilla town, Dave Tortal, 44, a Barangay Peacekeeping Action Team member, was shot by four suspected members of the New People’s Army (NPA) at his residence in Barangay Odiong at about 7:40 p.m. last Friday. Tortal was standing at the terrace when his assailants fired, hitting him on the left thigh. He crawled to get his gun inside the house and fired back. He heard the retreating gunmen shout “Mga NPA ni, hapa!” [We are

NPAs, get down!], while continuing to fire shots. Tortal was brought to Bacolod City for treatment. In Calatrava town, the group of Kadong Mancao engaged in a shootout with the group of Arnie and Boboy Solitas in Sitio Magsimbahon, Barangay Malatas at about 1:15 p.m. last Friday. One person was wounded, but the victim was not identified. Police investigation showed the two groups collect revolutionary taxes for the NPA, and the collected money caused the misunderstanding. After the incident, joint operatives of the Calatrava and Toboso police, with the First Provincial Mobile Force Company, conducted

checkpoint operations on the possible withdrawal routes of the groups. Over at Cauayan town, Luciano Montilla Jr. alias “Luciano Concepcion,” 38, of Barangay Baclao, died on the spot, while councilman Luciano Montilla Sr., 58, of the same village, was injured when they were shot by four unidentified men in Barangay Inayawan at about 9:30 a.m. last Saturday. The victims were on a motorcycle when the assailants waylaid them. The gunmen fled, while the victims were treated at the Cauayan District Hospital. Police are still investigating the motive behind the shooting. In Silay City, Bartolome Tanjay

was wounded after he was shot by Gerard Apora at their neighborhood at Hacienda Dorothea, Barangay Kapitan Ramon around 7 p.m. last Saturday. Police investigation showed both the victim and the suspect were having a drinking session with Tanjay’s cousin and Apora’s brother when the suspect’s three-year-old son took their food. Tanjay admonished the boy, which apparently irked Apora, who went home and came back with an improvised gun. He shot Tanjay on both legs. The suspect was brought to the Teresita L. Jalandoni Provincial Hospital while the suspect fled. PNA

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Editor: Vittorio V. Vitug, Max V. de Leon • Monday, April 2, 2018 A5

Duterte admin okayed 40 projects worth P1.23T since 2016–Neda

By Cai U. Ordinario

@cuo_bm

he Duterte administration has approved a total of 40 projects since assuming office in June 2016, data obtained from the National Economic and Development Authority (Neda) showed.

In its latest update, the Neda said these projects amounted to as much as P1.23 trillion and only two of these will be financed and implemented through the public-private partnership (PPP) program mode. The bulk of the projects, around

28, will be financed through official development assistance (ODA); seven to be financed by local financing; two each to be financed through PPP and a combination of ODA and local financing; and one to be financed by internally generated funds.

Data showed 20 projects were approved in 2017, while 16 were approved in 2016. Only three projects have been approved this year, as of February and only one does not have a date of approval. The biggest projects approved by the current administration amounted to P866.41 billion, or over 70 percent of the total approved projects since June 2016. These projects were the P355.59billion-Metro Manila Subway Project-Phase 1; P299.4-billion Philippine National Railways (PNR) South Commuter and South Long Haul Project, formerly known as the North-South Railway Project; and the P211.43-billion Malolos-Clark Railway Project (PNR North 2). The three projects approved

Foreign, local tourists flock to Aurora

ourist flocked to Aurora province during the Holy Week from March 26 to April 1 to witness the grand opening of the Second Summer Festival in the Aurora Pacific Economic Zone and Freeport Authority (Apeco). The weeklong celebration was anchored on the theme “Tulung-tulong sa pagsulong: Kabuhayan, Kaunlaran, Kapayapaan.” The event highlighted Apeco as a leading partner of the provincial government in preserving Aurora’s cultural ingenuity and history, environment and natural resources. The event also served as a tool for economic progress by improving the tourism aspect and all areas of possible investments spearheaded by the Aurora ecozone. The grand opening ceremony on March 26 was graced by distinguished guests from national and local governments, national government organizations and guests from the private sector. Among those who attended was the Department of Tourism’s Spokesman, Assistant Secretary Frederick M. Alegre, who had committed the DOT’s support for the Aurora Ecozone. He said that the five-day festivity, which offered business opportunities, training programs, sports, beauty, arts, dance and other competitions, health and wellness and many other interesting activities, will prove to be memorable for the residents and their guests. While remaining positive that the government will overcome the Boracay problem, he said that “for tourism to really work, we must be responsible caretakers of the community resources and to be fun, yet responsible, hosts to our visitors.” The tourism official also noted that the clean and beautiful beaches in the province, the historic places in Baler and the promising tourism sites in San Ildefonso Peninsula are more than enough to promote the province of Aurora.” He added that the churches in the area, especially the most-visited Ermita Church, will encourage faith tourism. Another guest, Undersecretary Emily Padilla of the Department

of Agrarian Reform (DAR) spoke on how federalism will work in Aurora. Noting that Apeco is the only ecozone facing the Pacific Ocean, she said, “With the problems that we have concerning the West Philipppine Sea, we can go back to the original route used by the Acapulco and the Galleon Trade to spur economic activities in the eastern seaboard, adding that we need Apeco as we need to build 200 economic hubs in the country.” She, likewise, cited the strong support of President Duterte and the DAR for the Aurora Ecozone. Department of Social Welfare and Development (DSWD) Undersecretary Virginia Orogo, who also attended the event, said that Apeco is the hope of economic progress in Aurora. She stated that the DSWD targets to lower poverty rate in the country by at least 14 percent, and one way to do this is to help the country attain peace by eradicating people’s rebellion caused by poverty. “The theme Tulong-tulong sa pagsulong: Kabuhayan, Kaunlaran at Kapayapaan is very timely and aptly put together. Aurora is now accessible by land, sea and air. Our natural resources are vast and we need to involve everybody in preserving and nurturing what we have. Invite investors as there are lots of opportunities in this province. The DSWD has sustainable livelihood programs that Aurora can avail itself of. The Duterte administration’s thrust is geared toward what Apeco wants to become,” Orogo concluded. Presidential Communications and Operations Office Undersecretary Joel Egco, who also spoke during the opening ceremony, cited the recent survey that says 94 percent of Filipino adults are happy. “It is not fake news as it came from a reputable research agency. There are many bad news, there are also good news. Focus on good news. Apeco is one good news as it starts to take off and effect the change for the development of Aurora, whose potentials have impact on national economy. Happy ako sa Apeco,” Egco candidly said. Lt. Gen. Emmanuel Salamat of the Armed Forces of the Philippines Northern Luzon Command (Nolcom) also graced the

event. He said that Apeco has been strongly supporting the Nolcom in performing its mandated tasks. “We have established solid partnership in sharing common perspective on economic and security issues. We will continue to do so as we ensure regional stability and, most important, peace and security in our communities.” He believed that it is vital to be adaptable and undaunted to challenges without compromising peace. “A center of social and economic transformation such as Apeco is essential in creating fair and inclusive societies that provide various opportunities for growth and cooperation,” Salamat said. National Youth Commission (NYC) Assistant Secretary Paul Anthony Pangilinan, in his remarks, also pledged the support of the NYC to Apeco’s thrusts. Department of Energy (DOE) Assistant Secretary Gerardo Erquiza committed the support of the DOE to the Aurora Ecozone. As former President and CEO of Apeco, he promised that “the DOE will help the ecozone in its requirements especially on power and other energyrelated projects.” Rep. Bellaflor Angara-Castillo of the Lone District of Aurora, in her remarks, encouraged the women and persons with disability of Aurora to participate in the livelihood program that she had initiated in cooperation with Apeco. Other officials who attended the event were NBI Deputy Director Jose Justo Yap, John Hay Management Corp. President Allan Garcia, and Clark Development Corp. Board Director Nestor Villaroman. Eleven of the Investment Promotion Agencies were also be present in the occasion: Freeport Area of Bataan, Board of Investments, Bases Conversion Development Authority, Clark Development Corp., Cagayan Economic Zone Authority, Clark International Airport Corp, John Hay Management Corp., Regional Board of Investments Autonomous Region of Muslim Mindanao (RBOI-ARMM), Subic Bay Metropolitan Authority, Subic-Clark Alliance for Development, Tourism Infrastructure And Enterprise Zone Authority.

this year only obtained an ad referendum approval from the Neda Board, the highest policy-making body of the Neda chaired by the President himself. TheseprojectsaretheP20.31-billion Safe Philippines Project, Phase 1; the request for Extension of the Loan ValidityandImplementationPeriodofthe Kexim-EDCF Loan for the Construction Samar Pacific Coastal Road Project, Northern Samar; and the request for Extension of the Loan Validity and Implementation Period of the Jalaur River Multipurpose Project, Stage 2. The Duterte administration aims to spend P8.4 trillion for various infrastructure projects until 2022. This includes 75 flagship projects, which will bear the imprint of the President in Philippine society, and

over 5,000 projects in the Public Investment Program (PIP). In July 2017 the Neda estimated that the Three Year Rolling Infrastructure Program (TRIP) 2018 to 2020 will cost P3.55 trillion. But the numbers are expected to increase. As of January 2018 Neda documents obtained by the BusinessMirror stated that the TRIP for 2019 to 2021, in terms of cash-based appropriations, will reach P3.66 trillion. In 2019, the amount will reach P1.05 trillion, or 5.4 percent of GDP; in 2020, P1.22 trillion, or 5.8 percent of GDP; and in 2021, P1.39 trillion, or 5.9 percent of GDP. Not all these projects, however, will be evaluated by the interagency Investment Coordination Committee (ICC) of the Neda Board, which require

a minimum cost of P2.5 billion for each project. For 2019, only 11 projects will go through the ICC; for 2020, five projects; and 2021, two projects. Of all the projects in the next three years, around 77 will require right-of-way acquisition and two will require resettlement. The government will invest some P4.86 billion for Rowa and resettlement in 2019; around P4.52 billion for 2020; and P932.77 million for 2021. However, the Neda said the investment estimates for 2019, particularly, may further increase because some project proposals have not yet been completed and received by the Neda. These agency proposals are estimated to increase the cash-based appropriations needed for infrastructure projects to P1.3 trillion in 2019.

Animation and the Filipino A

S early as the 1980s, the animation industry has already been present in the Philippines; our local animators have thus been providing animation services for 30 years now. Besides Finding Nemo, Filipinos are the talents behind esteemed cartoons and animated films from the likes of Scooby Doo (1969 to present), Tom and Jerry (1940 to present), The Incredibles (2004), Dragon Ball Z (1989 to 1996), Captain Planet (1990 to 1996) and The Mask (1995 to 1997), all under big names in the entertainment industry, such as Walt Disney, Warner Brothers, Cartoon Network and Marvel. Aside from flourishing in the film industry, Filipino animators are also able to provide graphics for the gaming industry under companies like Nintendo and Sega. However, considering that the country had first-mover advantage, its current share of the global animation market remains below expectations when compared to the international demand for animation work. It is high time that the Philippine animation industry secured a more commanding portion in the global market. The continued demand in the global animation market has allowed the Asia-Pacific region to further emerge as a premier destination for animation outsourcing. The major players in the region include China, India, Singapore, South Korea and the Philippines. The Philippines still manages to remain “top-of-mind” when it comes to animation related services. The Tholons Report “The Philippines Animation Industry Landscape” of May 2008 attributes this to the following: The established local animation industry with an impressive résumé of animators in the country; The rise of the business-process outsourcing industry in the Philippines; and The presence of a creative talent pool. Below are some of the challenges the industry needs to address to be able to meet the industry potential and level-off industry threats: One of the major challenges of the Philippine animation industry is the lack of large animation companies

creative philippines By Henry Schumacher capable of supporting and fulfilling large international clients. Since most of the companies are small and medium in scale, the industry is seen to be fragmented with small players doing their individual work without minding the collective capacity of the industry. With the opportunities available, the industry needs to find a way to consolidate its efforts in order to bring in the bigger contracts which will be ultimately beneficial for the industry as a whole. In terms of infrastructure investment, the industry must be able to attract local, as well as foreign investors, in order to boost infrastructure development. The challenge is also for the animation companies to take the risk of investing in infrastructure, more specifically in the acquisition of new animation software and related hardware technologies. Considerable investment in time and resources are needed in order to hone the skills of new animators. This dilemma is largely attributed to lack of training in relevant animation skill-sets of graduates and entrylevel employees. Further, with an average pay of $250 to $300 a month, local animators in the Philippines will continue to seek higher-paying jobs outside the country. The industry is also faced with the issue that many animators are working in the Gig Economy, doing freelance jobs around the world. In order to neutralize the growing competition in the global animation space, the Philippine animation industry needs stronger backing from the government. If the government is able to provide an enabling legislative environment for the local animation industry, in terms of policies that provide incentives (whether economic, financial or physical), then

investment in the animation sector is expected to follow. Computer animation has been subjected to many interesting developments over the years. Computer animations are being increasingly used in various fields that require communication as an irreplaceable means of functioning to be successful unit. For instance, the use of this is quickly increasing in the education sector, where various theories and concepts are being explained in a fun and interactive way, with the help of computer animations. We can see the tremendous impact that technology growth has had on all professional walks of life. Be it architecture, education, medical or even the forensic sector, it is being incorporated to give a better impact. Hence, the use of this has branched out, and is no longer restricted to just the media and entertainment industry. Even uses of animation in advertising are diversified, as well. Some of the other prominent fields are: Animation in the Medical Industry; 3D Computer animation in the architecture industry; Engineering and animation Computer animation in case of Forensics; and Education and the use of computer animations. Other than the obvious sectors like media, gaming and filmmaking, where computer graphics are exploited to create amazing results, the remaining fields are also playing catch up and trying to use all the benefits provided by animation to their advantage. Today, all sectors promote innovation; inspired creativity is the need of the hour because competition is multiplying manifolds every day and to stay at the top of the ladder, one needs to have all the skills they can acquire. With technology taking over so many aspects of business, it is quite apt to implement them. Importance of animation in business is something that can no longer be ignored. Comments are welcome—e-mail me at Schumacher@eitsc.com.

Agriculture/Commodities

A6 Monday, April 2, 2018 • Editor: Jennifer A. Ng

BusinessMirror

www.businessmirror.com.ph

US to PHL: Reduce barriers to farm trade By Elijah Felice E. Rosales

@alyasjah

ashington called on President Duterte to liberalize agricultural trade between the Philippines and the United States by reducing the barriers to imported farm products. In the 2018 National Trade Estimate Report on Foreign Trade Barriers of the US Trade Representative (USTR), Washington pressed Manila to make the concessionary rates under Executive Order 23 permanent. The EO issued in May of last year extended for another three years the reduced rates on agricultural products as part of the Philippines’s tariff commitments to the World Trade Organization. The country is implementing most-favored nation (MFN) rates of duty on certain farm products as concession to its special treatment on rice that expired July of last year. Legislators have yet to convert the lapsed quantitative restriction on

rice into tariffs, reason the President had to extend the MFN rates of duty until June 30, 2020, or until such time the agricultural tarrification law is amended. Under EO 23, mechanically deboned or separated meat is slapped with a tariff of 5 percent. It will remain at that rate until 2020 before reverting to 40 percent in 2021. Duty on buttermilk, curdled milk and cream, yogurt, kephir and other fermented and acidified milk and cream is kept at a measly 1 percent for another 3 years. The same levy is applied to cheese until 2020. Butter and other fats and oils derived from milk, along with dairy

spread, is slapped with a 5-percent tariff for another three years. Potato exporters enjoy duty-free privilege in the Philippines before a 10-percent levy is imposed in 2021. The EO also declared Manila’s continued compliance with its minimum access volume commitments of importing 805,200 metric tons of rice annually at a 35-percent tariff. In 2021 rice imports will be punished with a higher duty of 40 percent. Concessionary rates under EO 23 were viewed enthusiastically by the US and recommended its permanent enforcement. Washington is also pressuring Manila to get rid of its two-tiered system on handling frozen and freshly slaughtered meat delivered in wet markets. Under this method, tougher requirements are imposed on the sale of frozen meat, which are mostly imported, than on fresh meat, which came from animals raised domestically. The two-tiered system, for the US, is discriminatory and must therefore be lifted. “The United States continues to press the Philippine government to remove unjustified requirements that treat frozen meat differently from fresh meat.”

Bloomberg

The US is also averse to the regulation of the Department of Agriculture mandating importers to obtain a sanitary and phytosanitary permit before the shipment of any agricultural good and to transmit the permit to the exporter. The United States said this “require-

Soybean meal imports seen rising by 5.45% this year By Jasper Emmanuel Y. Arcalas @jearcalas

hilippine soybean meal (SBM) imports this year would go up by 5.45 percent to a record-high of 2.9 million metric tons (MMT) due to the continuous expansion of the livestock and poultry sectors, according to a Global Agricultural Information Network (Gain) report. The Gain report, which was prepared by the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) in Manila, noted that the forecast is higher by 15,000 metric tons (MT) than the 2.75 MMT recorded in 2017. “Driven by strong feed demand from the expanding domestic hog and poultry industries, SBM imports are forecast to reach a record 2.9 million tons in marketing year [MY] 18/19,” the report read.

The Gain report noted the United States will remain as the top exporter of SBM to the Philippines, as “less competition” is expected from competitor Argentina, which is currently grappling with drought. “According to US Customs data, Philippine SBM imports from the United States reached $747 million in 2017, the highest ever, making the country the largest market in the world for US,” it added. The USDA-FAS in Manila estimated that the Philippines’s total SBM demand this year to grow 3.4 percent to 3 MMT, from last year’s 2.9 MMT. “SBM demand is expected to increase through MY 18/19 as local livestock and poultry raisers capitalize on growing consumption of meat and meat products [the by-product of an expanding economy],” it said. “MY 18/19 SBM demand is forecast to grow 100,000 tons from the previous MY reaching 3 million tons.”

Local SBM production is expected to remain flat for the third consecutive year at 126,000 MT, bringing total supply for 2018 at 3.291 MMT, which is beyond the 3-MMT estimated full-year demand. The Gain report noted SBM stocks at the end of 2018 would be at 291,000 MT. “Local SBM production remains insignificant relative to overall supply and the industry is dependent on imports,” it added. The Gain report also projected that the country’s soy bean oil (SBO) imports this year would reach a three-year high of 40,000 MT. Total Philippine SBO consumption this year is expected to increase by 7.69 percent to 70,000 MT due to a flourishing retail food industry, according to the Gain report. “SBO is mainly used for mayonnaise and salad dressings, and the local industry does not consider it to be a complete CNO [coconut oil]

substitute,” it added. “Food use of SBO is minimal relative to overall edible-oil usage.” The Gain report indicated that local SBO production would remain flat at 30,000 MT. “Philippine SBO production continues to be insignificant relative to overall Philippine vegetable-oil production and is supported largely by imported beans.” It also noted Philippine soybean imports in 2018 would expand by 3.85 percent to 270,000 MT, from the previous year’s 260,000 MT. The report noted this is due to the increasing preference of livestock farmers for full-fat soybean, which is cheaper. “Overall soybean imports are projected to increase to 260,000 tons in MY 17/18 with the majority coming from the United States,” it read. “US beans, however, may face stiff competition from Brazil due to a bumper crop and more-favorable prices.”

Trump’s call for tariffs creating anxiety in the farm belt

OSPERS, Iowa—In Sioux County, where swine barns interrupt the vast landscape of corn-stubbled fields, exports of meat, grain and machinery fuel the local economy. And there’s a palpable sense of unease that new Chinese tariffs pushed by President Donald J. Trump—who received more than 80 percent of the vote here in 2016—could threaten residents’ livelihood. The grumbling hardly signals a looming leftward lurch in this dominantly Republican region in northwest Iowa. But, after standing with Trump through the many trials of his first year, some Sioux County Trump voters say they would be willing to walk away from the president if the fallout from the tariffs causes a lasting downturn in the farm economy. “I wouldn’t sit here today and say I will definitely support him again,” said 60-year-old hog farmer Marv Van Den Top. “This here could be a real negative for him.” Last week Trump announced plans to impose tariffs on a range of Chinese goods, a move aimed at punishing Beijing for stealing American technology. The Chinese government responded with a threat to tag products from the United States, including pork and aluminum, with an equal 25-percent charge.

That sent a chill through places like Sioux County, which ranks first among Iowa’s 99 counties in agricultural exports. In 2016 the county sold $350 million in meat, grain, machinery and chemicals overseas. Far closer to the sparsely populated crossroads of South Dakota and Minnesota than Iowa’s bustling Des Moines metro area, Sioux County is home to just 34,000 people, but more than 1 million hogs, 6 million chickens and nearly as impressive numbers of cattle and sheep. Brad Te Grootenhuis sells about 25,000 hogs a year and could lose hundreds of thousands of dollars if the tariffs spark a backlash from China. He said it’s possible he would abandon Trump if pork’s price decline continues and lasts. “Any time you’re losing money, nobody’s happy,” the 42-year-old farmer said. “I’ve got payments to make, plain and simple.” Nationally, opinions on Trump’s tariffs, which were a central part of his campaign pledges to get tough on China, are mixed. Although GOP congressional leaders have argued tariffs would prompt a trade war and have urged Trump to reverse course, 61 percent of Americans who identify as Republicans nationwide favor a tariff, according to a national poll taken this month by The Associ-

In this March 26 photo, farmer Jeff Rehder looks over some of his pigs, in Hawarden, Iowa. Rehder stands to lose potential revenue on his hogs after China responded to Trump’s announced plans to impose tariffs on products including Chinese steel. AP Photo/Nati Harnik

ated Press-NORC Center for Public Affairs Research. Still, 39 percent of Republicans say it will lead to a decrease in jobs, according to the poll, compared to 32 percent who think it will lead to an increase. That’s similar to the views of all voters, the survey shows. Countermeasures by China, which is second only to Canada in importing Iowa products, could cause pain across the American agricultural sector, according to economists. For instance, a pork tariff

imposed by China, which spent $42 million on Iowa pork products in 2017, would back up the Iowa market and force prices sharply downward. “Retaliatory tariffs from China would have a devastating impact on US agricultural exports, especially if they focus on products like soybeans and hogs,” said Adam Kamins, a senior economist at Moody’s Analytics. “This puts northwest Iowa and the Great Plains more broadly on the front line in a trade war.” AP

ment adds costs, complicates the timing of exports and prevents the rerouting to the Philippines of products intended for other markets, but not sold there for commercial reasons.” “Since December 1, 2016, the process for new permits has in-

cluded a requirement that permits be signed by the secretary of agriculture, or his or her chief of staff, introducing further delays in issuance. The United States continues to work with the Philippine government to ensure the process does not hamper trade,” the report added.

Green farming key to a profitable, sustainable PHL agri sector—WB

new World Bank study emphasizes the benefits for agricultural countries like the Philippines of addressing agricultural pollution, noting how reforms and incentives can support the industry’s competitiveness, development and sustainability. “The Challenge of agricultural pollution: Evidence from China, Vietnam and the Philippines” notes that, while agricultural growth and intensification have allowed East Asia to support some of the world’s fastest-growing and urbanizing societies, in parts of the region, the agricultural sector is “becoming a victim of its own success, as its environmental footprint deepens.” “Agricultural growth has played a significant role in increasing food security and lifting millions of people out of poverty in East Asia over the last three decades. However, this growth has also come at a high price, resulting in unprecedented soil, water and air pollution in the region,” said Laura Tuck, vice president for sustainable development at the World Bank. “Investing in the prevention and control of pollution is key to ensuring that development gains in agriculture are sustainable. Good pollution-control policies and measures can increase the profitability of agriculture and spur the development of a competitive food industry while enhancing human and environmental health,” she added. The paper stresses the importance of national policy priorities that will enhance food safety, add value to agricultural products, improve diet quality, attract a new generation of farmers and food entrepreneurs, and reduce greenhouse-gas emissions to fight climate change. “In this light, addressing agricultural pollution issues can be considered a gateway to achieving countries’ broader sustainable development goals,” it continued. In the Philippines, where agricultural pollution is less severe than in China or Vietnam, or rather more localized, the government has put in place fewer agriculturespecific laws and programs, the paper noted. On the other hand, China and Vietnam have started to embrace more balanced agricultural policies that place greater emphasis on environmental sustainabil-

ity as food quality, competitiveness, yield performance and food security. Governments have a wide range of policy instruments at their disposal to promote greener farming practices, said the report. “Typically, governments need to develop multipronged programs that use combinations of these instruments to send clear signals to farmers and facilitate effective responses,” it added. Some of these instruments for addressing agricultural pollution include zoning rules; livestock farm-size restrictions; specifications for animal housing, waste storage and waste-treatment facilities; requirements that farms draw fresh water from sources downstream of them; mandatory reporting requirements for waste and wastewater discharges; bans on the marketing and use of certain pesticides, antibiotics, hormones and other chemicals; limitations on the open burning of agricultural residues; and standards for the treatment and discharge of wastewater. Meanwhile, programs focused on incentives or disincentives tied to improving farming practices and agroindustry services may also be offered. These include fines or loss of benefits for noncompliance with mandates; preferential credit or grants for straw-residue management or manure-injection machinery; subsidies for formula fertilizer, fertilizer deep-placement products or soil-testing kits; payments for adopting practices that reduce farm runoff; and public procurement requirement that food purchases meet given certification standards. They also cover fast-track licensing for operations meeting high environmental management standards; loans to enterprises offering input application and soil testing services, as well as improved drugs, inputs and gear; grants for demonstration farms and farmer-led movements modeling and supporting best practices; and grants to enterprises increasing access to and the appeal of plant-based or low-footprint foods. At the same time, the study urges the introduction of programs on research, surveillance and information to complement these activities. Philexport News & Features

www.businessmirror.com.ph

Banking&Finance BusinessMirror

SSS launches another interest penalty condonation program

he Social Security System (SSS) will start processing applications for loan penalty condonation under its Loan Restructuring Program (LRP) today, April 2, in all its branches nationwide. The program is expected to benefit some 250,000 delinquent member-borrowers during the six-month implementation of the program. The state-run pension fund reminds member-borrowers with past due salary, calamity, emergency, educational loans, study-now-pay-later plan voc-tech, Y2K and investments incentive loans are covered under the LRP, provided that the members have resided or worked in a calamity or disaster-stricken area as declared by the National Disaster Risk Reduction and Management Council, or in the case of Typhoon Ondoy, by the national government. The SSS further stressed that LRP applicants should bring a duly accomplished LRP Application Form, which can be downloaded from its web site at www.sss.gov.ph, and two valid identification cards when applying for the loan in their respective SSS branch. The LRP allows member-borrowers to

clean up their overdue loan principal and interest payments in full or by installment under a restructured term depending on their capacity. Qualified members only have si x months to avail themselves of the program, or until October 1, 2018. It said borrowers with approved LRPs in 2016 and 2017, members with final benefit claim prior to the LRP availment period and those who committed fraud against SSS are disqualified from the program. In March the SSS said it would once again offer the LRP and likely generate P1.2 billion from the program and condone another P2.85 billion in penalties. SSS President and CEO Emmanuel F. Dooc said the first condonation program was in April 2016, when it was offered for one year and helped some 800,000 individual member-borrowers. It generated P6 billion for the pension fund. The LRP has an affordable amortization schedule and has a lower interest rate of only 3 percent compared to the interestrate levels of other loan programs reaching 10 percent. Rea Cu

Sun Life claims lead in premium income

un Life of Canada (Philippines) Inc. (Sun Life) remains the top life insurance company in the Philippines with premium income reaching P32 billion in 2017, based on a recent report released by the Insurance Commission (IC). Based on a report by the IC, Sun Life sustained its leadership for the seventh consecutive year after attaining the highest total premium income in 2017 of P32.114 billion, inching up by 0.7 percent from premium income of P31.890 billion in 2016. “This milestone is one we attribute to our clients, whose trust and support inspire us to keep improving and innovating. We also have our advisers, employees and partners to thank, for it is through their hard work and passion that we are able to touch the lives of more Filipinos,” Sun Life President Alexander S. Narciso said. Narciso recounted how Sun Life advisors rallied to serve more clients in 2017, despite some challenges in the market. In 2017 its first year premium income from the sale of traditional and variable insurance products reached P5.784 billion, an expansion by 12.7 percent from P5.132 billion in 2016. “In fact, in the last quarter of 2017, our advisers settled P2 billion in annualized first year premium, the company’s highest in the past five years,” he added. The Sun Life group of companies grew its client base to over 3 million and its advisory force is now over 11,000

as at end-2017. “We are on track to realizing our ‘RI5E PH’ vision of having 5 million clients by 2020,” Sun Life Philippines CEO and Country Head Rizalina G. Mantaring said. For 2018 Sun Life plans to tap broader markets, launch new products and offer more digital tools while continuously enhancing its client service. Earlier, Mantaring told the BusinessMirror that one way for insurance companies to gain a wider reach of the market is for the IC to allow know-your-client (KYC) sessions via video calls, among other proposals. “A few others would help boost the growth of the industry, such as allowing KYC sessions to be done via video calls. This would help reach a bigger population as it would facilitate selling via other distribution channels such as online and affinity marketing,” Mantaring said. She also said allowing insurance companies to invest in infrastructure more is a challenge that needs to be addressed. “In terms of challenges, one of our main ones is finding assets that give the necessary yield for traditional products, and assets with long enough durations. Infrastructure investments would be ideal. So the IC can facilitate infrastructure investing by no longer requiring approval for individual investments as long as they are intended for approved government infrastructure projects,” she added. Rea Cu

Case clippings

By Justice S J Ranada Jr.

DANGEROUS DRUGS–unbroken chain of custody Where, in a prosecution for the illegal sale of dangerous drugs, for reasons unknown, the PNP Crime Laboratory agrees to turn over custody of the seized items to an unnamed receiving person at the City Prosecutors Office before they are submitted as evidence to the trial court, there is a failure by the prosecution to establish an unbroken chain of custody over the seized items, and the accused should be acquitted. People v. de Guzman 05 Feb. 2018

GR No 219955 Del Castillo, J

Editor: Jun B. Vallecera • Monday, April 2, 2018 A7

‘China could prove a reliable lender’ By Rea Cu

@ReaCuBM

he Department of Finance (DOF) said the government in the years ahead may tap the Panda bond market as a regular funding source based on the success of the maiden sale of the IOUs in March amounting to 1.46 billion renminbi (RMB).

Finance Secretary Carlos G. Dominguez III strongly hinted at it to financial reporters. He said the Panda bond market would “most likely” become a regular source of foreign financing going forward. Panda bonds are RMB-denominated securities from a non-Chinese issuer but sold in the People’s Republic of China. Last month the Philippines became the first Asean sovereign to issue Panda bonds, the Investor Relations Office (IRO) said. The IRO added the three-year Panda bonds fetched a coupon rate of 5 percent, a tight spread of only 35 basis points above benchmark when it sold in the onshore

Chinese bond market on March 20. The Philippine government’s inaugural issue of renminbi-denominated bonds received oversubscription, with bids reaching RMB 9.22 billion compared with the Philippine government’s debt offering of only RMB 1.46 billion. Under the Bond Connect scheme, offshore investors comprised 87.7 percent of allocation, representing the highest offshore mix for any Panda issuer, with onshore markets at around 12 percent of total investors for the government security Price ranged from 5 percent to 5.6 percent, with the demand pushing the coupon rate to 5 percent. Bank of China served as lead

underwriter and Standard Chartered Bank as joint lead underwriter. The DOF earlier reported the Panda bonds were rated “AAA” by China’s Lianhe Credit Rating Co. Ltd., which cited the country’s strong and consistent economic growth, low level of external debt and ample foreign and current account reserves as plus factors for the sale. Last year the Bureau of the Treasury (BTr) said there should be no problem when generating foreign financing from overseas lenders in 2018 when the government shall have issued so-called panda, samurai and the good old reliable the ROPs, or global bonds, hit the markets. Republic of the Philippines (ROP) bonds, or global bonds, are shorthand for dollar-denominated IOUs issued by the government. Deputy Treasurer Erwin D. Sta. Ana said the proposed bond sales cater to different market segments and should not compete against each other for patronage when the paper finally meets investors. The DOF instructed the BTr to study the economics of selling samurai bonds that allow the government to access Japanese capital. Samurai bonds are yen-denominated bonds issued in Japan by non-Japanese companies, and subject to its regulations.

Perspectives Getting technology risk a seat at the table

ith technology increasingly touching nearly every aspect of the business, more C-suite leaders now acknowledge the direct connection between information-technology (IT) risk and enterprise risk—and, more broadly, enterprise strategy. As such, many organizations are beginning to view technology risk as a value center that helps meet critical business objectives, and are investing accordingly. Although technology risk teams clearly have a larger role to play, their ability to do so is hindered by the fact that an overwhelming majority (87 percent) of organizations do not currently view IT risk’s role as the proactive management of technology risk across the organization. According to our survey data, organizations primarily view technology risk as an arm of compliance or cybersecurity, rather than an organization-wide function for proactive risk management. We also found that often, technology risk teams are only included in projects after the fact, once issues begin to arise. At this stage, the impact they are able to make is minimal. Other KPMG research backs up the fact that technology risk has a larger role to play when it comes to protecting the organization from risk—especially with regard to cybersecurity. According to KPMG’s 2017 US CEO Outlook survey, only 40 percent of CEOs say their organizations are well prepared for a cyber event. In addition, KPMG found that a significant portion of technology incidents are preventable with the right precautions

(see sidebar on technology risk’s role in preventing blockchain breaches). In our recent report, Technology risk radar, we found that more than 30 percent of the 700+ technology incidents we examined over the past year across industries were caused by software glitches. By engaging technology risk from the get-go, exercising rigor when testing systems and building the right level of resilience to enable failover, most of the incidents would have been avoidable.

How can technology risk gain their warranted seat at the table and increase their impact on the business?

For one, technology risk leaders should establish a plan of activity and menu of services that line up with the day-to-day and project-based activities of the IT group that directly support the overall business. For example, technology risk could align its activities with the priority projects in IT’s annual budget cycle, even becoming a direct work stream of those projects. It is also important for technology risk to participate in committees and focus groups that are looking at new products or services, with a focus on providing clarity on the potential risks of innovation and strategies to remove obstacles associated with those risks. In addition, top-level tech risk professionals should interact regularly with the CIO, Ciso, CRO and COO. Annually, technology risk should also report to the board’s risk committee. In fact, in conversations with business leadership, technology risk leaders should take on the role of friendly “chal-

lenger”—using their risk perspective to help think through business issues and question decisions that might increase the organization’s risk profile, whether it’s the introduction of a new technology or entry into a new market. To be effective challengers, tech risk professionals need broad knowledge of business strategy and processes, as well as the experience and gravitas to speak up with confidence. That will require technology risk to close the skills gap and leverage data more effectively, both of which we discuss later in the report. Finally, only establishing a clear tone at the top will make the business want to actively collaborate with technology risk. That requires a dual effort by both technology risk and business leadership. They must work together to show the entire organization that technology risk deserves to be a critical part of the strategic decision-making process, be it about M&A, embracing a new technology or any business transformation initiative.

The article “Getting technology risk a seat at the table” by Phil Lageschulte, KPMG International, was taken from KPMG’s publication entitled Disruption is the new norm. © 2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines. For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

The World BusinessMirror

A8 Monday, April 2, 2018 • Editor: Lyn Resurreccion

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Palestine, Israel blame each other for deaths

sraeli and Palestinian leaders blamed each other for the deaths of at least 16 Palestinians who were part of a mass protest along the Gaza border, with each side lobbing threats of escalating the violence. Palestinian Authority President Mahmoud Abbas said Israel was “fully responsible” for killing his countrymen last Friday, and a video appearing to show an unarmed teenager being gunned down by Israeli sniper fire circulated on Palestinian media. The Israeli army argued that Gazan militants were using civilian protesters as cover as they fired at soldiers and tried to lay explosives near the border fence. The protest, which peaked at 30,000 participants last Friday and will run for the next six weeks, is “an organized terrorist operation,” the Israeli army said in a tweet last Saturday. “What we saw yesterday [Friday] were attempts to launch rockets, attempts to carry out live attacks, Molotov cocktails, attempts to set fire to the security fence and a lot of terrorist activity,” the Israel Defense Force said in separate tweets. “Nothing was carried out uncontrolled; everything was accurate and measured, and we know where every bullet landed. We are only interested in terrorists who are trying to disrupt Israeli life; we only act against them.” The army said at least 10 of the dead were known militants, giving their names, organizations and positions. Hamas said five of them were

members of its military wing. The army warned it would increase its response if the violence continues.

Increased force

Abbas said Palestinians needed international protection from Israel, and United Nations SecretaryGeneral Antonio Guterres called for an independent inquiry into Friday’s deaths. Overnight last Saturday, the United States blocked a UN Security Council resolution blasting the Israeli response in Gaza and calling for an investigation. The protests come amid growing tensions over President Donald J. Trump’s December recognition of Jerusalem as Israel’s capital, as well as a yet-to-be-released United States peace plan that Abbas has already pledged to reject. Abbas severed all official Palestinian contact with the White House in December after Trump announced plans to move the US Embassy to Jerusalem from Tel Aviv. Hamas planned the protests against the Palestinian displacement resulting from Israel’s founding in 1948 to culminate with the date of US embassy move. The demonstrations began last Friday with tent camps set up a halfmile from Gaza’s 40-kilometer frontier with Israel. The climax is to come

Erdogan attacks high rates, Israel and Kosovo’s leader

urkish President Recep Tayyip Erdogan attacked supporters of high interest rates, condemned Israel for its actions in Gaza and reprimanded the leader of Kosovo during a string of speeches last Saturday across the capital. Erdogan berated defenders of high interest rates, which he said are a source of “every evil in an economy,” and that advocates for keeping rates high will answer to him. “The interest rate is both the mother and the father of the inflation,” Erdogan said in televised remarks in Istanbul last Saturday. “Those who don’t know this, they should. Anyone attempting to act against this would find me facing them.” Erdogan addressed crowds five times in Istanbul as part of an aggressive campaign ahead of next year’s local, parliamentary and presidential elections that will make the president’s office the center of political power by abolishing the prime ministry. His topics raged from the role of the central bank, to the violence between Israel and Hamas. For years, Erdogan has said a key to containing prices is lower interest rates. Last Saturday he blamed financial institutions for lobbying for higher rates, which he said “makes the rich richer and the poor poorer.”

Orders ignored

“We should know this as it is, and who is lobbying for it—the financial institutions. I am saying this openly, the state banks are also involved in this. We will solve this sooner or later,” Erdogan said. Responding to supporters’ calls that he should issue an order about interest rates, he said: “We’re already issuing orders but those orders are not carried out.” Following the lira’s weeks-long slide against other currencies, which

left everyone from TV commentators to columnists and economists fretting about the currency, Erdogan for the first time tried to deflect interest on the topic, in his own way. “What foreign-exchange rate? Down with your foreign-exchange rate,” Erdogan said. Prime Minister Binali Yildirim announced 7.5 billion liras ($1.9 billion) in loans for small businesses last Saturday, further backing the economy’s growth following a 2016 coup attempt by followers of United States-based cleric Fethullah Gulen.

‘Political leg’

Erdogan waged a crackdown on tens of thousands—including workers in every branch of government and leading members of the media, academia and the judiciary since the failed putsch. Last Saturday he said main opposition CHP leader Kemal Kilicdaroglu, who accused him of being the “political leg” of Gulen’s network, will also pay for his remarks in court. He then said Turkish citizens who are thinking of leaving the country are a “burden” on the country. “Actually, there is need to open an office for them and send them away by paying for their tickets,” he said. On other topics, Erdogan reprimanded Prime Minister Ramush Haradinaj of Kosovo for dismissing Interior Minister Flamur Sefaj and Kosovo intelligence agency chief Driton Gashi for extraditing six alleged Turkish coup plotters to Turkey, urging people of Kosovo to punish for protecting Turkey’s political foes. The president condemned Israel over the use of force in quelling a protest in Gaza. “Israel is carrying out a massacre in Gaza,” Erdogan said as he condemned the reaction in Gaza last Friday in clashes that resulted in the death of at least 16 Palestinians. Bloomberg News

Relatives and Fatah masked militants carry the body of Hamdan Abu Amsha, 23, during his funeral in Beit Hanoun, Gaza Strip, on March 31. Israel will target “terror organizations” in Gaza if violence along the territory’s border with Israel drags on, the chief military spokesman warned last Saturday, a day after thousands of Palestinians staged protests near the border fence. AP/Adel Hana

in mid-May with a mass march to the border, which Israel fears will become an attempt to breach its territory.

Protest escalates

Hamas leaders presented the initiative as a peaceful effort, though they conceded that it could get out of hand. The army said riots broke out at five locations along the border. Palestinian eyewitnesses said that, in one spot, about 90 people cut through the security fence and confronted soldiers, with many being shot in the legs. Gaza’s Hamas-run Health Ministry said 16 Palestinians were killed and more than 1,400 injured last Friday, while another three Palestinians were hurt in continued skirmishes last Saturday.

Violence against Israel has surged in recent weeks. Palestinians, who want the eastern part of Jerusalem as their own capital, have been storming the Gaza fence and planting bombs targeting Israeli soldiers, drawing retaliatory fire and air strikes. At least five Israelis have been killed in stabbing and car-ramming attacks in Jerusalem and the West Bank in recent weeks.

‘Hostile march’

Jason Greenblatt, who is helping spearhead the US peace effort, accused Hamas of instigating a “hostile march” to spark a confrontation. “Hamas should focus instead on desperately needed improvements

to the lives of Palestinians in Gaza instead of inciting violence against Israel that only increases hardship and undermines chances for peace,” Greenblatt tweeted. Senior Hamas leader Ismail Haniyeh, appearing at the tent camps last Friday, presented the march as

a rebuke to the US peace effort and said it marks the beginning of the Palestinian return to all of what is now Israel. “The Great March of Return is a message to Trump that his deal and all those who support it, that there is no concession on Jerusalem, no alternative to Palestine and no solution but to return,” Haniyeh said. The Palestinians “will not agree to keep the ‘Right of Return’ only as a slogan.” Israel views the demand for a mass return of Palestinians as a bid to eradicate Israel as a Jewish state. The Gaza protests correspond with red-letter dates on the Palestinian calendar. Last Friday was “Land Day,” marking the 1976 killing of six Arab citizens by Israeli security forces during demonstrations against land expropriations. It’s also the beginning of the weeklong Jewish Passover holiday. The main march to the fence on May 15 will commemorate the Palestinian “Nakba,” or the catastrophe of their displacement at Israel’s founding. It takes place a day after the new US embassy in Jerusalem is slated to open, on the 70th anniversary of Israel’s independence. Ramadan, the Muslim holy fasting month that often sees a surge in Palestinian attacks, also begins on May 15. Bloomberg News

The Great March of Return is a message to Trump that his deal and all those who support it, that there is no concession on Jerusalem, no alternative to Palestine and no solution but to return.”—Haniyeh

Syrian army declares victory as rebels vacate eastern Ghouta

EIRUT—The Syrian army declared victory in eastern Ghouta last Saturday after opposition fighters evacuated from most of the area near the capital, except for the town of Douma, where negotiations are still underway for rebels there to leave or face an allout government offensive. The government has given rebels in Douma—the area’s largest town and stronghold of the powerful Army of Islam rebel group—an ultimatum to agree on leaving by late last Saturday. Some progovernment news web sites reported that the army is massing troops around Douma, adding that the ultimatum may be extended until last Sunday. The army statement came shortly after another group of opposition fighters and their relatives left southern and western parts of eastern Ghouta last Saturday afternoon, bringing President Bashar al-Assad’s forces a step closer to eliminating threats from insurgents groups nearby. State TV said 38 buses left the towns of Zamalka, Ein Tarma, Ar-

been and Jobar taking more than 1,700 rebels and civilians to the northwestern rebel-held province of Idlib. The channel said troops entered the towns and raised the national flag in Arbeen’s main square. “The importance of this victory lies in restoring security and stability to the city of Damascus and its surrounding areas after the suffering of its civilians from the crimes of terrorists over several years,” said the army statement, read on TV by Brig. Gen. Ali Mayhoub. Government forces taking back most of eastern Ghouta reopens a major network of roads and highways that link Damascus with other parts of the country that have been closed since 2012 when rebels captured eastern suburbs of the capital. The army statement vowed “to wipe out terrorism and bring back stability and security to all parts of Syria.” A crushing government offensive under the cover of Russian air strikes that began on February 18 has forced opposition fighters in most of eastern Ghouta to agree to evacuate and

head to Idlib province. “Arbeen, Zamalka, Jobar and Ein Tarma in eastern Ghouta are free of terrorists,” shouted a correspondent for state-affiliated al-Ikhbariya TV channel from Arbeen. State news agency Sana said 38,000 fighters and civilians have already headed to Idlib over the past two weeks, marking one of the largest displacements since Syria’s conflict began seven years ago. More than 100,000 others headed to government-controlled areas over the past weeks. Before the last wave of violence began in eastern Ghouta last month, the United Nations had estimated that some 393,000 people were living in the area under a tight government siege. Tens of thousands of rebels and civilians have been relocated to Idlib over the past years from different parts of Syria making it one of the most inhabited regions in the country. The top UN official in Syria, Ali Al-Za’tari, told the Dubai-based alArabiya TV in an interview aired last Saturday that “Idlib cannot take more people.”

The Britain-based Syrian Observatory for Human Rights reported that a vehicle carrying evacuees from eastern Ghouta had a road accident in the government-held village of Nahr al-Bared leaving five fighters and three civilians dead. It said the bus had left eastern Ghouta last Friday night. The departure last Saturday from southern and western parts of eastern Ghouta comes as negotiations are still ongoing between Russian mediators and officials from the Army of Islam to evacuate Douma, but no deal has been reached so far with the rebel group, which insists on staying in the town. Army of Islam officials did not respond to requests for comment by The Associated Press. Rami Abdurrahman, who heads the Observatory, said negotiations are now suggesting that thousands of Army of Islam members and their relatives could head to the northern town of Jarablous that is controlled by Turkish troops and Turkey-backed opposition fighters. The Observatory also reported that Syrian troops have been massing troops around Douma in case negotiations collapse. AP

Trump bid to move ‘hellhole’ embassy sunk by architectural icon

russels, the European city Donald J. Trump labeled a “hellhole,” is picking a fight with the US president in an area close to his heart: real-estate development. The Belgian capital has taken action to block Washington’s plan to move the US embassy from its current downtown location near Russia’s mission to a bucolic neighborhood adjacent an 11,000-acre forest on the city’s southern outskirts. The point of contention? The new building is too celebrated for what the Americans have planned for it. The United States government— which still doesn’t have an ambassador to either Belgium or the Brussels-based European Union—purchased the site in

2016, with the intention of tearing down the existing building because it doesn’t meet its size requirements or modern environmental standards. But, last year, the regional city government applied to have the building placed on a “safeguard list,” which would prevent any modification or destruction to the four-winged, copper- and glass-covered structure. The building, which formerly housed the Royale Belge insurance company and, more recently, a local AXA SA outpost, “is part of the flagship heritage of our region,” said Lidia Gervasi, spokesman to the regional minister responsible for monuments and sites. “For many people living in Brussels, it’s an icon of modern architecture of the 1960s.”

London’s ‘bad deal’

And while the regional government has another year to make its formal decision, it intends to confirm the safeguard procedure and place the building on the monument list, Gervasi said. Brussels is the world’s secondlargest seat of diplomatic representations, hosting more than 200 embassies as well as the European institutions and the North Atlantic Treaty Organization (Nato). The Belgian row adds to the controversies Washington is navigating at its international missions, with Trump earlier this year canceling a visit to London to open a new embassy, saying the old site was sold for “peanuts” and the

new building, in an “off location,” was a “bad deal.” Trump also complicated plans for Middle East peace talks last year when he said he’d move the US embassy to Jerusalem from Tel Aviv, jeopardizing America’s role as a mediator in the region. The Brussels-based real-estate investment trust Cofinimmo SA sold the site, made up of two buildings on Boulevard Souverain, to the US government on the condition Washington would get the proper licenses and permits from the Brussels authorities. The location represents 1.6 percent of Cofinimmo’s property portfolio and was valued at €55 million ($67.8 million). Bloomberg News

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The World BusinessMirror

Trump renews Amazon attack, says ‘Post Office scam’ must stop

resident Donald J. Trump lit into Amazon.com Inc. for the second time in three days with a pair of Twitter messages that said the online retailer “must pay real costs [and taxes] now!” The United States president last Saturday claimed, citing reports he didn’t specify, that the US Postal Service (USPS) “will lose $1.50 on average for each package it delivers for Amazon” and added that the “Post Office scam must stop.” Amazon has said the postal service, which has financial problems stretching back for years, makes money on its deliveries. Amazon shed $53 billion in market value last Wednesday after Axios reported that the president is “obsessed” with regulating the e-commerce giant, whose founder and CEO, Jeff Bezos, also owns the Washington Post newspaper. Those losses were pared last Thursday, the final day of a shortened trading week, even as Trump tweeted that Amazon was using the postal service as its “Delivery Boy.” White House Spokesman Lindsay Walters said last Thursday that, while the president was displeased with the e-commerce giant, and particularly instances where third-party sellers on the site didn’t collect sales tax, there were no administrative actions planned against Amazon “at this time.” Still, Brad Parscale, who’s managing Trump’s 2020 presidential campaign, hinted in a tweet late last Thursday that the administration may act to raise Amazon’s postal costs. “Once the market figures out that a single @usps rule change will crush @amazon’s bottom line we will see,” Parscale wrote. Amazon.com and the Washington Post have been regular punching bags for Trump. In July the president mused about whether the newspaper was “being used as a lobbyist weapon” to keep Congress from looking into Amazon’s business practices. He echoed that comment last Saturday, saying the Post “is used as a ‘lobbyist’ and should so register.” Trump is spending Easter Weekend at his resort in Palm Beach, Florida, and arrived at the nearby Trump International Golf Club early last Saturday, just after the tweets were published. He also criticized Amazon over Twitter during his winter vacation at Mar-aLago, saying in December that the postal service “should be charging much more

for package delivery.” Amazon regularly uses the USPS to complete what’s called the “last mile” of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily. It has a network of more than 20 “sort centers” where customer packages are sorted by zip code, stacked on pallets and delivered to post offices for the final leg of delivery. While full details of the agreement between Amazon and the USPS are unknown—the mail carrier is independently operated, and strikes confidential deals with retailers—David Vernon, an analyst at Bernstein Research who tracks the shipping industry, estimated in 2015 that the USPS handled 40 percent of Amazon’s volume the previous year. He estimated at the time that Amazon pays the postal service $2 per package, which is about half what it would pay United Parcel Service Inc. (UPS) or FedEx Corp. A sudden increase in postal rates would cost Amazon about $2.6 billion a year, according to a report by Citigroup from April 2017. That report predicted UPS and FedEx would also raise rates in response to a postal service hike. Citigroup also said that the “true” cost of shipping packages for the USPS is about 50 percent higher than its current rates, leading some editorial writers to conclude that Amazon was receiving the type of subsidy cited in Trump’s Thursday tweet. But the postal service’s losses have little to do with Amazon and more to do with its large health-care obligations and the dwindling use of first-class mail. The post office charges some of the world’s lowest stamp prices. “The Postal Regulatory Commission has consistently found that Amazon’s contracts with the USPS are profitable,” the company said in the statement. “Amazon has invested hundreds of millions of dollars in a network of more than 20 package sortation facilities that inject directly into the USPS last mile network bypassing most of USPS network. This investment resulted in more efficient processes as well as thousands of jobs and related economic benefits in local communities.” The president’s tweet also assumes that Amazon would be forced to pay if the Postal Service increased its rates for packages. But Amazon has been setting up its own shipping operations in the United States, and elsewhere in the world to minimize costs. Bloomberg News

Monday, April 2, 2018 A9

Mekong countries’ leaders call for $66-B investment

Asean leaders (first row, from left) Prime Minister of Lao PDR Thongloun Sisoulith, Prime Minister of Cambodia Hun Sen, Prime Minister of Vietnam Nguyen Xuan Phuc, Foreign Minister of China Wang Yi, Vice President of Myanmar Henry van Thio and Asian Development Bank President Takehiko Nakao applaud during the Greater Mekong Summit in Hanoi, Vietnam, last Saturday. Vietnam News Agency via AP

ANOI, Vietnam—The leaders of six countries along the Mekong River last Saturday adopted an ambitious investment plan worth $66 billion over the next five years. At least $7 billion will come from the Asian Development Bank (ADB) and the rest from governments and the private sector. The plan was adopted at a summit in Vietnam that included the prime ministers of Cambodia, Laos, Thailand and Vietnam, as well as a vice president of Myanmar and the

Chinese foreign minister. The Greater Mekong Sub-regional (GMS) economic cooperation program was initiated by the ADB in 1992, and has since mobilized $21 billion, with the bulk going to infrastructure projects. “GMS is starting a new era of development with unprecedented

$7B

The estimated amount that will come from the Asian Development Bank for the Greater Mekong Sub-regional economic cooperation program

opportunities and challenges which require us to have a creative approach with long term and comprehensive vision in order to tap into the internal power of each country, while effectively promoting connectivity to create strength resonance across the GMS for rapid economic growth and

harmonizing economic and social development with environmental protection,” Vietnamese Prime Minister Nguyen Xuan Phuc said in his opening remarks. The five countries along with China’s Yunnan province and the Guangxi Zhuang Autonomous region with the population of 340 million and combined GDP of $1.3 trillion have recorded one of the world’s fastest-growing economies. Closing the one-day summit, Phuc said cooperation would remain the driving force in the region’s development. “I believe that given the results we have realized as well as our solidarity and determination, GMS cooperation will continue to be part of the cooperation mechanism of the region and will make concrete contribution to the economic and social development of member countries, promote sustainable development and reinforce the peaceful and stable environment in the region,” he said. In the meantime, Chinese State Councilor and Foreign Minister Wang Yi said the world’s secondbiggest economy supports “the multilateral trading system and promotes an open, inclusive and balanced economic globalization that benefits all.” “China has long been an advocate of an open world economy. China is committed to win-win cooperation in opening up and firmly opposes trade protectionism,” Wang said. “Protectionism harms others without benefiting oneself—it is a oneway street that leads to nowhere. The right approach to address trade disputes is to conduct consultation in line with international rules and as equals.” President Donald J. Trump’s move last week to impose tariffs on as much as $60 billion on Chinese goods prompted Beijing to consider imposing tariffs on a number of American goods exported into the country. AP

Blacks largely left out among high-paying jobs compared with whites in the US

OSTON—JonathanGarland’s fascination with architecture started early: He spent much of his childhood designing Lego houses and gazing at Boston buildings on rides with his father away from their largely minority neighborhood. But when Garland looked around at his architectural college, he didn’t see many who looked like him— there were few black faces in classroom seats, and fewer teaching skills or giving lectures. “If you do something simple like Google ‘architects’ and you go to the images tab, you’re primarily going to see white males,” said Garland, 35, who’s worked at Boston and New York architectural firms. “That’s the image, that’s the brand, that’s the look of an architect.” And that’s not uncommon in other lucrative fields, 50 years after the Rev. Martin Luther King—a leader in the fight for equal-employment opportunities—was assassinated. An Associated Press analysis of government data has found that black workers are chronically underrepresented compared with whites in high-salary jobs in technology, business, life sciences, and architecture and engineering, among other areas. Instead, many black workers find jobs in low-wage, less-prestigious fields where they’re overrepresented, such as food service or preparation, building maintenance and office work, the AP analysis found. In one of his final speeches, King described the “Other America,” where unemployment and underemployment created a “fatigue of

despair” for African-Americans. Despite economic progress for blacks in areas, such as incomes and graduation rates, some experts say many African-Americans remain part of this Other America—with little hope of attaining top professional jobs, thanks to systemic yet subtle racism. The AP analysis found that a white worker had a far better chance than a black one of holding a job in the 11 categories with the highest median annual salaries, as listed by the Bureau of Labor Statistics. The ratio of white-to-black workers is about 10 to 1 in management, 8 to 1 in computers and mathematics, 12 to 1 in law and 7 to 1 in education—compared with a ratio of 5.5 white workers for every black one in all jobs nationally. The top five high-paying fields have a median income range of $65,000 to $100,000, compared with $36,000 for all occupations nationwide. In Boston—a hub for technology and innovation, and home to prestigious universities—white workers outnumber black ones by about 27 to 1 in computer-and mathematicsrelated professions, compared with the overall ratio of 9.5 to 1 for workers in the city. Overall, Boston’s ratio of whiteto-black workers is wider than that of the nation in six of the top 10 high-income fields. Boston—where King had deep ties, earning his doctorate and meeting his wife—has a history of racial discord. Eight years after King’s assassination, at the height

Theodore Landsmark, lawyer, architect and director of the Dukakis Center for Urban and Regional Policy at Northeastern University poses for a photo in his office in Boston on March 27. Pictured in Landsmark’s office are a sketch of King (top left), a portrait of Supreme Court Justice Thurgood Marshall (bottom left) and a Pulitzer Prize-winning photograph by Stanley Forman, which shows Landsmark being assaulted in 1976 by a demonstrator carrying a flagpole bearing the American flag. AP/Charles Krupa

of turbulent school desegregation, a Pulitzer Prize-winning photograph from an antibusing rally at City Hall showed a white man attacking a black bystander with an American flag. The young victim was Theodore Landsmark. He’s now 71, a lawyer, an architect and director of Northeastern University’s Dukakis Center for Urban and Regional Policy. He said “structural discrimination” is the overarching cause of disproportionate race representation in high-paying fields. Landsmark and others say gains are elusive for myriad reasons: Substandard schools in low-income neighborhoods. White-dominated office cliques. Boardrooms that prefer familiarity to diversity. Discrimi-

natory hiring practices. Companies that claim a lack of qualified candidates but have no programs to train minority talent. Some also say investors are more likely to support white startups. When Rica Elysee—a lifelong Boston resident who grew up in predominantly black neighborhoods—brought her idea of an online platform linking beauty professionals with customers for in-home appointments to investors, she was shunned, she said. “They said I didn’t belong in the program, that they couldn’t identify with it because they weren’t black,” said Elysee, 32, who initially marketed BeautyLynk to black women like herself.

“I remember crying pretty harshly. They couldn’t relate to what I was doing.” Some even advised her to move out of Boston, which had a booming innovation economy but was “not encouraging minorities in the tech space,” she said. Three years later, Elysee said BeautyLynk is slowly growing but still needs capital. Most American metro areas are like Boston, with AP’s analysis showing that racial disparities in employment are indifferent to geography and politics. California’s Silicon Valley struggles to achieve diversity in computer fields. In Seattle, home to Amazon, whites outnumber blacks nearly 28 to 1 in computer- and math-related fields. Financial powerhouse New York has a 3-to-1 ratio of white-to-black workers in all occupations, but nearly 6 to 1 in business and finance. Hollywood shows inequality in entertainment, with almost nine whites for every black worker. In Atlanta, King’s hometown, the proportional representation of black-to-white workers is close to even in many fields. Many reasons are cited. Atlanta has historically black colleges and universities such as King’s alma mater, Morehouse; the first black mayor, Maynard Jackson, pressed for policies helping black professionals after his 1973 election; and events like the 1996 Olympics opened doors for entrepreneurs of all races. Atlanta is an exception. For nearly

all of the past half-century, black unemployment nationally has hovered at about twice that of whites. President Donald J. Trump touted on Twitter that December’s 6.8-percent unemployment rate for blacks was the lowest in 45 years—a number critics say ignores a greater reality. For example, in an economy that increasingly demands advanced degrees, Department of Education data show that black representation among graduates in science, tech, engineering and mathematics peaked at 9.9 percent in 2010, and has been slowly declining. In Boston, Democratic Mayor Marty Walsh said in a recent speech that the city is addressing the issue and is committed to placing 20,000 low-income residents in “goodpaying jobs” by 2022. Landsmark said stronger role models might be a solution. As Boston Architectural College’s president, he mentored Garland. They discussed race issues in the professional world—as when Garland, trying to land jobs in his neighborhood, realized many people who looked like him were unfamiliar with the very concept of architecture. He once had to explain to a homeowner who wanted his roof reframed: “I’m not a builder, I’m an architect.” Today, Garland speaks at high schools and works at the Dream Collaborative, which focuses on projects in low-income neighborhoods. “I know the barriers exist in other folks’ minds, and I have to disprove that,” he said. “I keep myself focused on the issues.” AP

A10 Monday, April 2, 2018 • Editor: Efleda P. Campos

The Regions BusinessMirror

Japan donates more emergency vehicles to Luzon, Mindanao By Manuel T. Cayon |

@awimailbox Mindanao Bureau Chief

AVAO CITY—The Japanese government donated 35 more vehicles for emergency and rescue situations to the Bureau of Fire Protection (BFP), as it hoped to enhance the capability of the fire-fighting agency. The donation to the BFP this year entered its fifth year. To date, the BFP has received 76 vehicles since 2014. The donation was done in simple

rites here last week where Ambassador Koji Haneda witnessed the turnover of 15 vehicles to local governments in Mindanao. He also signed “the Project for Providing

Emergency Vehicles to 20 Local Government Units in Luzon.” The BFP was the main beneficiary of the project “as one of the agencies in the forefront of disaster response in the country [but which] has an insufficient number of emergency vehicles at its fire stations to deliver its mandate.” “Through these projects, the Government of Japan aims to assist the BFP in addressing this shortage,” a Japanese embassy communication said. It said the shortage “became apparent during typhoon Yolanda in 2013, after which the Embassy of Japan started extending assistance by providing emergency vehicles to the BFP.” Last year at the signing of the fourth project, “the partner-

ship between the Embassy of Japan and the BFP was further expanded in Luzon.” As of last year, the Embassy of Japan has provided a total of 76 units amounting to $998,357. In 2014 it gave 17 fire trucks and three ambulances to 17 municipalities in the Visayas. The following year, it gave nine fire trucks, seven ambulances and one rescue truck to another 11 municipalities, also in the Visayas. In 2016 two fire trucks, 14 ambulances and one rescue truck were donated to 15 municipalities in Mindanao. Last year 14 ambulances, six pumper trucks and two rescue trucks were given for the identified 20 municipalities in Luzon. The embassy said “it is expected

that a total of 6.6 million people in Mindanao and 3 million in Luzon will benefit from these projects.” The vehicle assistance to the Philippines was done through the Grant Assistance for Grassroots Human Security Projects which started in 1989, “for the purpose of reducing poverty and helping various communities engaged in grassroots activities.” To date, 534 grassroots projects have been funded, the embassy said. “Japan believes these projects will not only strengthen the friendship between the peoples of Japan and the Philippines, but also contribute to further fostering a strategic partnership between the two countries toward the future,” it added.

PRDP approves P919.4-million infra projects for Davao region

‘SALUBONG’ A traditional salubong (meeting) is held before dawn at the National Shrine of Saint Padre Pio in San Pedro, Santo Tomas,

Batangas. The salubong is an Easter Sunday ritual depicting the meeting of the risen Christ with His mother Mary. It is performed in the churchyard under a specially prepared arch, where a young girl dressed as an angel removes the mourning veil of the grieving Virgin Mary after meeting her risen Son. Before the meeting, participants in the procession are segregated by gender. The men and boys follow the statue of the risen Christ, while women and girls follow the statue of the Virgin Mary. The procession ends with the two groups meeting in front of the church. ROY DOMINGO

2 NPAs killed in encounter with AFP in Quezon town

By Rene Acosta

@reneacostaBM

WO reported members of t he New People’s A r my (NPA) were killed while a militiaman was wounded last Saturday during a firefight between soldiers and rebels in Quezon, a report reaching Camp Crame said. Elements of the Army’s 85th Infantry Battalion engaged guerillas for about 15 minutes at Barangay San Andres, Lopez, Quezon, at past 11 p.m. last Saturday, the Quezon Provincial Police Office (QPPO) reported. During the firefight, two rebels, whose identities were still being ascertained, were killed. Their bodies were left behind by their comrades. Meanwhile, the wounded militiaman was identified as Michael Collado. The soldiers recovered an M16 sniper rifle with scope, an AK47 rifle, a rifle grenade and communication equipment. The QPPO said the firefight occurred after soldiers got wind of the presence of rebels near a military detachment in Barangay San Andres. The encounter between soldiers and rebels was the first to be reported since Thursday, when the NPA marked its 50th founding anniversary. The Communist Party of the Philippines has ordered rebels to intensify their attacks against the government.

The Left is inclined to resume peace talks with the government, but Malacañang said the prevailing environment does not still call for it. Meanwhile, a subleader of the Bangsamoro Islamic Freedom Fighter (BIFF) was killed late last week in a firefight with a combined team of policemen and soldiers in North Cotabato. Armed Forces Western Mindanao Command Spokesman Capt. Jo-ann Petinglay said Commander Buds Basilan, also an expert bombmaker, was killed during a joint operation by the 34th Infantry Battalion and the Aleosan police at Barangay Puypuyan, Aleosan, North Cotabato at around 7 p.m. last Thursday. The BIFF subleader was listed number 209 in the wanted list for martial law. “Our soldiers and policemen had been tracking the person and was about to apprehend him when he shot at the authorities resulting in the encounter,” said Maj. Gen. Arnel de la Vega, commander of the Joint Task Force Central. “Basi l a n who is u nder t he BIFF’s Karialan Faction, was responsible in the manufacture of bombs and IEDs which affected the areas of Aleosan, Midsayap and Carmen of North Cotabato. His neutralization will definitely weaken his subgroup that is operating mostly in the province,” de la Vega said.

Surigao del Norte town welcomes improved health care facility

HEN a devastating 6.7magnitude earthquake h it t he prov ince of Surigao del Norte in 2017, the coastal town of San Francisco was put to the test. Residents were traumatized by the tremors, the strongest they have felt in a very long time. Homes were damaged, and basic necessities were unavailable. Roads, bridges and several structures bore the brunt of the quake. One of these structures was the municipality’s health center, San Francisco Rural Health Unit, which suspended operations temporarily due to the damages it sustained. After organizing immediate relief operations, an initiative that benefited more than 1,000 families in the province, BDO Foundation rehabilitated the decades-old health center. Through the rehabilitation of the rural health unit’s overall structure, lobby and waiting areas, offices, dental clinic, treatment room, laboratory and birthing facilities, the foundation hopes to help improve the delivery of patient care to a population of more than 15,000 individuals from 11 barangays. BDO Foundation also installed an activity area for children, waiting lounge for senior citizens and breastfeeding station in the health center, which averages around 15 births per month.

HE Philippine Rural Development Project’s (PRDP) R eg ion a l P rojec t A dv isory Board (RPAB) 11 approved five additional infrastructure project proposals amounting to P919,425,627 for four provinces in Region 11. T he ap prove d I nte n si f ie d Building up of Infrastructure and Logistics for Development (IBUILD) project proposals include, P201,043,885.49 for the rehabilitation of the Sonlon-Camansa farm-to-market (FMR) road in Davao del Norte; P248,036,217.78 concreting of Waterfall-Osmeña FMR with PSCG Bridge; and P169,861,199.40 rehabilitation of San Isidro, Hagonoy to Km.67, Matanao FMR in Davao del Sur; P191,119,236.61 rehabilitation of Barangay Cabinuangan-Magangit FMR with three units bridge retrofitting works in Compostela Valley province; and P109,365,087.62 rehabilitation of San AgustinMamacao Tanglad FMR in Davao Occidental. The recent RPAB meeting was chaired by Chief Maria Febe T. Orbe of the Department of Agr iculture R FO 11’s Planning, Monitoring and Evaluation Division, in behalf of Regional Executive Director Ricardo M. Oñate and attended by RPAB members from the departments of Agrarian Reform, Environment and Natural Resources, the Interior and Local Government, and of the Public Works and Highways, M i nd a n ao De ve lopment Authority, National Commission

THE RESURRECTION

on Indigenous Peoples, the Department of Trade and Industry, and Regional Agricultural and Fishery Council. “Let’s work hard together in ensuring that each proposal we have today is ready to pass all the screening process it has to go through in the next level and hopefully, we can see these projects implemented soon,” Orbe said. The RPAB will endorse the approved five infrastructure development project proposals to PRDP for fund support under the IBUILD component. Each subproject proposal was presented to the RPAB members by one local government unit (LGU) representative from Davao del Sur, Davao del Norte, Davao Occidental and Compostela Valley province. The approved subproject proposals should comply with all the requirements and should qualify to the IBUILD Prioritization Scheme that sets criteria on the LGU performance in terms of procurement, disbursement, compliance to social and environmental safeguards, transparency through applied geotagging tools, and other criteria included in the prioritization scheme. The next level for the RPAB approved project proposal would be another series of review by the Project Support Office Mindanao and then by the National Project Coordination Office for the issuance of No Object Letter 1 and 2, and then final project implementation. Joy M. Montecalvo

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Ocean Adventure operator unveils water park in Subic Freeport By Henry Empeño Correspondent

UBIC BAY FR EEPORT— A nother family-oriented theme park was unveiled here by the Subic Bay Marine Exloratorium Inc. (SBMEI), operator of the popular tourist attraction Ocean Adventure Marine Park, in time for children’s summer entertainment and family outings. This is the Adventure Beach Water Park, packed with water slides, wading pools, artificial rivers, and other water-themed facilities in its 1-hectare location between the Subic Bay and the triple-canopied Ilanin Forest Reserve. The new park was formally launched last Thursday by SBMEI Chairman Jack Lin, SBMEI CEO Robert Gonzaga, and guest of honor Chairman Wilma T. Eisma of the Subic Bay Metropolitan Authority. Gonzaga said the Adventure Beac h Water Pa rk project is part of SBMEI’s expansion program designed to further bolste r the grip of Ocean Adventure, as well as that of its sister firm Camayan Beach Resort on the educational-entertainment tourism niche here. “We want to dish out fun opportunities for family bonding that might as well be memorable and educational experiences for the children,” Gonzaga said. “At the same time, we emphasize caring for the environment as the core value in the SBMEI complex,” he added. The major attractions at the Adventure Beach Water Park are the three-story Twisters Slide, the Rainbow Falls at the Kidz Playground splash-and-play area, the swinging Viking ship, the Aqua Serein that simulates rain, and the R iver Bend artificial river that goes around most of the park area. Aside from these, the park has Forest Grill, which serves snacks and a variety of grilled food serve in native bilao and an open-sea area for swimming and kayaking that older children and adults can enjoy. All around the park are cabanas for visitors. These range from a pavilion that could accommodate 70 persons at P8,000 for the day, to the four-person square cabana rented out at P300. There is also one Tiki Tower good for up to 15 persons at P2,500 per day. Gonzaga said the facility can easily take in 700 guests at one time, with admission rates at P528 for children seven years old and below, as well as for senior citizens; and P688 for adults.

A 50-foot statue of the risen Christ stands on top of a hill at the Punta Amelita Resort in Cordon, Isabela. The religious shrine serves as a pilgrimage site for Catholic devotees in observance of Easter Sunday. LEONARDO PERANTE II

The Regions BusinessMirror

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Monday, April 2, 2018 A11

LGUs, DPWH ordered to enforce safety measures in Albay roads

By Manly M. Ugalde | Correspondent

EGAZPI—Malacañang has finally stepped in to ensure public safety in roads, warning local government executives with mandatory compliance 24/7.

In Memorandum Circular 208-30 dated March 7, 2018, Interior Secretary Eduardo M. Año said President Duterte has emphasized during a recent Cabinet meeting about the recurring complaints of Filipinos

regarding stalled and ongoing road projects and the dangers they pose to the public. The massive road- and bridgewidening program recorded close to 8,000 road accidents in Albay alone

DENR, Mitsubishi launch ‘Sustainable Integrated Area Devt’ program in Bangui, Ilocos Norte By Jonathan L. Mayuga

@jonlmayuga

HE Department of Environment and Natural Resources (DENR) recently forged ties with Mitsubishi Motors Philippines Corp. (MMPC) to establish a 30-hectare coffee and cacao plantation and transform the historical Sentinella Hill in Bangui, Ilocos Norte into an ecocultural tourist destination. The plan is the first phase of a 100-hectare enterprise-development project through the sustainable integrated area development (SIAD), a new approach to forest rehabilitation being adopted by the DENR. In a statement, Environment Secretary Roy A. Cimatu said that, SIAD harnesses a community’s natural wealth to achieve sustainable and inclusive growth within a locality. “In pursuit of sustainable and inclusive growth, our government under the administration of President Duterte necessarily employs a participatory approach,” Cimatu said during the recent groundbreaking ceremony in Bangui town. Also present during the groundbreaking rites was Bangui Mayor Fidel Cimatu Jr. Under the partnership, MMPC, a joint venture, will provide funds for SIAD projects to be identified by the DENR. The DENR will provide the technical requirements in terms of manpower skills and government support. Cimatu underscored the importance of the DENR’s “convergence approach” with the private sector and the local government to achieve equitable growth that will “improve the ecological condition of the country, as well as the socioeconomic status of the community.” “Bangui’s initiatives to sustain its local tourism industry hinges well on its people’s desire to harness and protect its ecological condition,” said Cimatu, a native of Bangui. In the same statement, Mutsuhiro Oshikiri, MMPC president and CEO, was quoted as saying that environmental advocacy forms the core of the company’s corporate social responsibility program, with the assurance that “we, too, will be doing our part for the betterment of the environment.” “I applaud the DENR for their commitment in ensuring the sustenance of the habitats, not only here in Ilocos Norte but also in the different regions of the Philippines,” Oshikiri said. MMPC will initially release P2.6 million for the two undertakings, with P1.9 million going to the Sentinella Hill project. The amount will cover the cost of improving its access trail and slope stabilization, establishment of a 2.2-hectare plantation site, a seedling nursery and construction of a lookout tower. TheSentinellaHill,locatedinBarangaySanLorenzo, gives a commanding view of the entire 9-kilometer Bangui coastline famous for its windmill turbines, and a panoramic view of the hills and coastline of the neighboring towns of Burgos and Pagudpud. It was fortified with artillery by Japanese forces during World War II to ward off approaching American vessels. During the Spanish colonial era, the hill served as an observation post to monitor incoming sea trade vessels and to warn Bangui residents of any attack from pirates. For the 30-hectare coffee and cacao plantation that will rise in Barangay Payac, MMPC will shell out P700,000 to cover the production of 15,000 quality cacao and coffee seedlings, construction of a seedling nursery, and maintenance and operation cost of the plantation for 2018. Under the agreement, MMPC is given a chance to transform 10 hectares of forestland into SIAD sites anywhere in the country within a span of four years to five years.

from 2015 to 2016, the Philippine National Police said. Año’s memorandum mandated local chief executives and local offices of the Department of the Interior and Local Government to see to it that contractors properly notify the public in advance through posters and tarpaulins, including lightings at night time prior to the implementation of the project until completion, or face sanctions. The circular also warned delay in the completion of projects. Local officials, however, describe Año’s memorandum as a mere reiteration of past secretaries of the Department of Public Works and Highways (DPWH),

which unfortunately landed only on desks without actions from local officials concerned. Citing the vanishing official billboards on projects that had long been embodied in the bidding process, most infrastructure projects in Bicol are simply started and completed without the billboard. The official billboard, which has become an effective tool concerning the transparency program, forms part of the Commission on Audit circular, titled “Information and Publicity on Programs/Projects/Activities of Government Agencies.” It shall contain information, such as the source of funds, name of project, project cost, name of contractor, date

started and completion date. T hen-Bicol Reg iona l Par t y Committee Chairman and New People’s Army (NPA) commander Sotero Llamas strongly slammed the DPWH about the vanishing billboard on projects being done in collaboration with politicians. Contractors have reportedly been complaining the billboards have become a leeway for the NPA rebels to impose revolutionary taxes on projects. But, a month before his ambush and murder in Tabaco City in 2012, Llamas denied in an interview with journalists at the Legazpi airport site the allegations of the contractors, saying

corrupt engineers, contractors and politicians simply hated the posting of billboards on project to avoid scrutiny from the public. On March 8, 2017, then-newly installed Bicol DPWH regional director Danilo Versola was briefed and interviewed by journalists about the vanishing billboards on projects and the rampant obstructions in roads as a result of the massive roads and bridge widening. Versola promised to act on the complaint. With a whooping P74-billion budget for Bicol, however, the issues about the vanishing billboards continued to haunt the DPWH, with Versola nearing retirement come August 2018.

Zambales govt lauds local ‘golden girls and boys’ Story & photos by Henry Empeño Correspondent

BA, Zambales—The senior citizens of Zambales never had it this good. Each month, they congregate in some barangay plaza for a joint birthday celebration, toast each other to long life and better health, partake of free food and drinks, courtesy of the local government, and bond and party like the old times. “It’s fun, and it makes you feel younger,” said Mercedita Elad of Masinloc town, as the seniors waltzed and cha-cha’d to near exhaustion during a recent birthday bash. “Most of all, we get to celebrate with friends—not alone in the house—and for free,” Masinloc Senior Citizens Federation Chairman Melody Bautista added. The monthly birthday parties start with a morning merienda, followed by a program where the “golden girls and boys” participate in song and dance presentations. Then came the recognition of the celebrators and awarding of cash gifts to centenarians. Lunch is packed food most of the time— unless the local government units prepared a more sumptuous fare—but the seniors eat away happily, some rewrapping untouched food to be brought home to their apos. There’s a band to sing songs and play danceable music, and the rest of the afternoon is devoted to games, chats and more dancing. The parties have been going on each month since June last year, when Gov. Hermogenes Ebdane Jr. challenged Masinloc officials and the town’s Federation of Senior Citizens to start a monthly get-together to celebrate the birthdays of local seniors. The practice has caught on and spread to all the 13 towns in Zambales. At that time, the provincial government has been putting up Senior Citizens buildings in each town to house the offices of the local senior-citizen associations so the birthday project jelled with Ebdane’s elderlywelfare program. Recently, the governor also announced another project for the elderly: a Senior Citizens Ward already being constructed at the provincial hospital here in Iba. Ebdane, himself a senior citizen at 66, said the Senior Citizens buildings, the birthday celebrations and the Senior Citizens Ward are but token recognition of the elderly for their contributions to the community. “They have earned the right to be respected because this province, as well as the residents of local communities, won’t be here and won’t be like this today were it not for them,” Ebdane said. The Governor’s Office said there are about 45,000 registered senior citizens in the province of Zambales, with 16 of them already 100 years or older. The oldest living centenarians here are Julieta Reyno of Cabangan town, born on November 9, 1907; Cristina Valderrama, from Palauig town, born on October 10, 1912; and Virginia Torres, also of Palauig, born on October 12, 1913. Some of the governor’s staff keep track of the centenarians, visiting the already infirm and giving them their monthly allowance of P2,000 from Ebdane, as well as needed medicine. The other week, during the joint birthday celebration for the “birthday boys and girls” from the towns of Palauig, Iba and Botolan, Ebdane also handed out a P10,000 cash gift to Primitiva Merto, who turned 100 this month. The P10,000 gift is given to all senior citizens reaching the ripe age of 100. With the purpose of recognizing the el-

ZAMBALES Gov. Hermogenes Ebdane Jr. helps serve centenarian birthday celebrants Virginia Torres and Cristina Valderrama during their joint birthday celebration sponsored by the Zambales provincial government.

Ebdane engages several senior citizens in a quiet discussion during a birthday celebration the provincial government sponsors for its older constituents.

ders’ role in community development, the Zambales provincial government is paying back with projects to make the locals’ golden years more comfortable and rewarding. The Senior Citizens offices, for example, each have a lounge with sofa set, television and DVD player, and refrigerator. The municipal governments, the caretakers of the buildings, are also encouraged to supply coffee and biscuits for the consumption of the seniors who visit and meet at the offices. Provincial Engineer Domingo Mariano said the provincial government has already completed construction of Senior Citizen offices in all the 13 towns of Zambales, the latest of which is in Subic. The iconic buildings are done in the same style and are all swathed in blue, red and white. Each of two-story structures that house the Senior Citizens office has the seniors on the lower floor, and the office of Barangay Health Workers on the upper level. The governor said half in jest that such an arrangement would ensure the seniors would always have ready medical assistance nearby. “We’ve put up these offices, not only

because we want a comfortable place for officials of the seniors federation, but more so because we know the seniors need their own place, their own social network,” Ebdane explained. “These offices give them a base for their activities and projects, which make them even more productive in their golden years,” he added. Aside from helping establish their social base, the government of Zambales also makes sure the elders get needed medical care. Ebdane said that, since its installation in 2010, his administration has continuously provided free medical and dental care for the elderly, especially those living in remote villages, and given away financial assistance to needy seniors. The government has also given away wheel chairs to senior citizens who can no longer walk, but still attend the birthday celebrations. The Senior Citizens Ward project, which Ebdane also hopes to put up in the two other district hospitals in the

province, is the icing in the government’s elderly-care program. Ebdane said the elderly ward at the Ramon Magsaysay Memorial Hospital will have four beds at the isolation room and six beds each for the male and female wards. All rooms would have their own toilet and bath. With a construction budget of P9.3 million, the special ward will also have its own nurses’ station and a spacious multifunction receiving area. The project is scheduled for completion in October. Officials of the senior citizens’ federations have hailed the governor’s building program as a huge contribution for the welfare of the elderly. Lea Mayormita, president of the Provincial Federation of Senior Citizens of Zambales, said the seniors have benefitted a lot from the governor’s program for the elderly. “We can never thank Gov. Ebdane enough for all these things he has given us,” Mayormita said during the inauguration of another Senior Citizens building recently. “We are empowered, and we feel very happy with what you do,” she told the governor. Ebdane said he placed emphasis to elderly welfare in the province’s development program because of an experience during his stint as chief of the Philippine National Police. “At that time, we were building some training facilities at Camp Bagong Diwa in Taguig, and we named some of the buildings and streets after some retired officers, who we invited during the inauguration,” Ebdane recalled. “And you know what these battlescarred former tough guys did when they saw our tribute? They cried. And they cried because they were overwhelmed upon realizing that they have not been forgotten, that we remembered what they did during their prime,” he added. “This is also what we are trying to do here in Zambales: to give our elders their due, to remember the role they have in our lives and to show them that we have not forgotten,” he said.

Green Monday BusinessMirror

A12 Monday, April 2, 2018

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

87,000 tons of plastic and counting

The ‘Great Pacific Garbage Patch’ is ballooning

n the Pacific Ocean between California and Hawaii, hundreds of miles from any major city, plastic bottles, children’s toys, broken electronics, abandoned fishing nets and millions more fragments of debris are floating in the water—at least 87,000 tons worth, researchers said lastThursday. In recent years, this notorious mess has become known as the “Great Pacific Garbage Patch,” a swirling oceanic graveyard where everyday objects get deposited by the currents. The plastics eventually disintegrate into tiny particles that often get eaten by fish and may ultimately enter our food chain. A study published last Thursday in the journal Scientific Reports quantified the full extent of the garbage patch: It is four to 16 times bigger than previously thought, occupying an area roughly four times the size of California and comprising an estimated 1.8 trillion pieces of rubbish. While the patch was once thought to be more akin to a soup of nearly invisible microplastics, scientists now think most of the trash consists of larger pieces. And, they say, it is growing “exponentially.” “It’s just quite alarming, because you are so far from the mainland,” said Laurent Lebreton, the lead author of the study and an ocean-

the debris is condensed in one area in the ocean. “I think the name patch is a little bit confusing,” said Nancy Wallace, the director of the National Oceanic and Atmospheric Administration’s Marine Debris Program, who was not involved in the study. Describing it that way, she added, gave the wrong impression that it “would be easy to go pick it up.”

There may still be time to act

ographer with the Ocean Cleanup Foundation, a nonprofit that is developing systems to remove ocean trash and which funded the study. “There’s no one around and you still see those common objects, like crates and bottles.”

Just one word: Plastics

In the late summer of 2015, Lebreton and his colleagues measured the amount of plastic debris in the patch by trawling it with nets and flying overhead to take photographs. Although they also found glass, rubber and wood, 99.9 percent of what the researchers pulled out of the ocean was plastic. They also recovered a startling number of abandoned plastic fishing nets, Lebreton said. These “ghost nets” made up almost half the total weight of the debris. One explanation is the patch’s proximity to fishing grounds; another is that fishing material is designed to be resilient at sea and stays intact longer than other objects.

Litter dumped in a wetland area in the United States, among water lilies and marsh plants. Wikimedia Commons

“We found a few unexpected objects,” Lebreton said. “Among them were plastic toys, which I found really sad, as some of them may have come from the tsunami in Japan,” he added, referring to the 2011 disaster that sent millions of tons of debris into the ocean. The researchers also fished out a 1990s-era Game Boy cover, construction-site helmets and a toilet seat, as well as a number of objects with Japanese and Chinese inscriptions. Other objects, Lebreton said, had “little bite marks from fish.” Some sea turtles caught near the

patch were eating so much plastic that it made up around three quarters of their diet, according to the foundation.

The garbage patch is not exactly a ‘patch’

After its discovery in the late1990s, the Great Pacific Garbage Patch took on an image in the popular imagination akin to an island or even a seventh continent made of trash. That myth was debunked, and the patch became understood as more like a region that looked like the rest of the ocean to the naked eye but

was polluted with tiny microplastics. However, the new study says that the microplastics, while still a problem, account for just 8 percent of the mass of the patch. Until now, most of the sampling used an ocean trawl designed to pick up small particles, and therefore, Lebreton said, underestimated the number of larger pieces of debris floating in the sea, like bottles, buoys and fishing nets. “Most of the mass is actually large debris, ready to decompose into microplastic,” Lebreton added. Still, “it’s not an island,” Lebreton said. “It’s very scattered.” A visual model, however, shows how

The worry is that, within a few decades, the larger pieces of debris could break up into microplastics, which are much harder to remove from the ocean. “It’s like a ticking time bomb,” said Joost Dubois, a spokesman for the Ocean Cleanup Foundation. The foundation says it would be almost impossible to remove the plastic already in the patch by traditional methods, like nets attached to boats. Instead, the group has developed a mechanical system that floats through the water and concentrates the plastics into denser areas that can then be collected by boats and taken back to shore to be recycled. T he found ation pl a ns to launch the first such system this summer from Alameda, California. New York Times News Service

It’s like a ticking time bomb.”—Dubois

Intensified environmental actions pushed during Earth Hour Europe’s $38-B carbon market starting to work

housands trooped to the Cultural Center of the Philippines’s (CCP) front lawn in Pasay City to take part in the Earth Hour switch off, led by the World Wide Fund for Nature (WWF) Philippines, on March 24 in support to global calls to protect the Earth’s biodiversity. WWF-Philippines’s CEO and President Joel M. Palma said, “The Philippines will continue to play an important role in sending a message to the rest of the world that we can tread the path to sustainable development and help protect our people and planet’s health and well-being. Thriving biodiversity serves as our lifeline, as it holds us all together.” This year’s Earth Hour theme, #Connect2Earth, recognizes the role of maintaining Earth’s biodiversity to counter the worsening impacts of climate change. Biodiversity-rich Philippines is one of the 17 “mega-diverse countries.” It is home to more than half of the world’s species, but WWF also sees the urgent need to step up environmental action to counter the Philippines’s record as a “biodiversity hot spot” and address worsening threats to its forests, oceans and wildlife.

Earth Hour onsite and online highlights

Around 1,000 Filipino scouts were mobilized during the event as part of a global partnership to engage the World Organization of Scout Movement through its Environmental Education program, tapping young scouts as environmental stewards, who are eager to earn the new Panda badge. Up to 500 bikers from 21 bike groups under the Hataw Padyak federation also joined the event and cycled more than 15 kilometers from Malabon City to CCP to promote low-carbon mobility through cycling. Philippine President Duterte’s message was read during the program in support to WWF and the people’s efforts to “take strides in finding solutions to climate change, ecological degradation, and other pressing environmental problems.” Participants were joined by WWF-Philippines National Ambassadors Iza Calzado, Marc Nelson and Rovilson Fernandez, together with Earth Hour National Ambassador Mikee Cojuanco-Jaworski and National Youth Ambassador Janine Gutierrez. With CCP as copresenter, cultural performances and immersive activities highlighted

SM City in Taytay, Rizal, shows its support to Earth Hour 2018. Dancers wear LED light forming a "Wi-fi signal" during the switch off. The mall participated by switching off 50 percent of its lights for 60 seconds during the Earth Hour. NONOY LACZA

this year’s Earth Hour activities onsite. Featuring the indigenous artistry of Sanghabi and folksinger-activist Lolita Carbon, local performances were inspired by nature at the heart of Philippines’s rich culture and heritage. Drawing attention to how biodiversity loss affects wildlife, immersive activities like “whale-shark dive” and “iceberg path” gave a glimpse of what it is like for some of the world’s climate-vulnerable species like whale sharks and polar bears to struggle and survive amid plastic-filled oceans and thinning sea ice. #Connect2Earth video pledges were collected to form a call to action video which was played after the 60-minute lights out encouraging people to adopt a “one planet lifestyle” and make sustainable choices to protect the environment. Online solidarity throughout the globe was captured using connect2earth.org, a social listening and sharing platform featuring Earth Hour commitments and conversations around biodiversity and climate solutions. Representatives from the government, businesses and organizations also signified their support for Earth Hour. Nationwide, several schools, government facilities, and business establishments like malls and hotels also held their own Earth Hour activities and switch-off events in their communities. Earth Hour government agencies and institution partners issued circulars urging their constituents to support WWF-Philippines’s

Earth Hour celebration. Corporate partners and sponsors who share Earth Hour’s vision pooled together resources for the main switch-off event. Media offices, including the BusinessMirror served as the official media partners of the 2018 run of the world’s largest grassroots movement for the environment.

Going beyond the Hour

#Connect2Earth served as Earth Hour and WWF’s battlecry to galvanize public support for more earnest and decisive actions to protect the planet. For more than a decade, the global lights-out event remains an impactful visual call-out since it started in Sydney, Australia. But more than the one-hour switch off, WWF-Philippines urged Filipinos to observe sustainable living and support advocacies pushing for low-carbon cities, renewable-energy development, sustainable food production and consumption, forest and water conservation, and wildlife protection, among others. Angela Consuelo S. Ibay, Earth Hour Pilipinas national director and head of WWF-Philippines’s Climate and Energy Program said: “Working together with the government, businesses and communities, we strive to build on the gains of Earth Hour to help drive policies, awareness and actions that would support local, national and global initiatives to halt negative climate impact and biodiversity loss.”

urope’s $38 billion a year carbon market is finally starting to work the way it was intended, reining in pollution with a minimum of squealing from industry. Thirteen years after it was created to limit carbon-dioxide (CO2) emissions, prices for the allowances are rising. European Union (EU) policy-makers have enacted measures expected to keep the cost of pollution on an upward trajectory through 2030, prompting hedge funds that abandoned the market to pile back in. “For a five-year-plus period, this market was in the desert,” said Per Lekander, a fund manager at Lansdowne Partners UK Llp. in London. “What’s happened over the past five months is the investment community is getting behind it again and putting on positions.” Big polluters have heard the message and are starting to adapt. From automaker Volkswagen AG to RWE AG, which is Germany’s largest power generator, industry is cleaning up its smokestacks by turning toward renewables and bracing for a time when coal plants are regulated out of existence. Some are buying before allowances get even more expensive. All this is happening without noticeable complaints from industry in part, because policy-makers from German Chancellor Angela Merkel to UK Prime Minister Theresa May have made it clear they want to phase out coal within the next decade, slashing greenhouse gases. Companies favor the carbon market because it gives them more flexibility on how to comply with tighter emissions rules than regulation or taxes. The alternative to a market could be much worse for industry. It’s also a good sign for the global effort to rein in climate change, showing that market mechanisms and government policy can persuade industry to step away from fossil fuels in a way that doesn’t create turmoil in the broader economy. Europe’s carbon market is the biggest of more than 45 systems working worldwide and a model being tried everywhere from China to Mexico and parts of the United States. “We are very much in favor of the European Emissions Trading System,” said Klaus Schaefer, CEO of the German power generator Uniper SE. “In order to deliver the CO2 reductions that we all agreed to in Europe, you will have to see higher prices.” Carbon trading was not an immediate success. Europe’s permits surged to more than €29 a ton in 2006 and 2008, only to plunge more

than 90 percent after the financial crisis hobbled the industry and helped create a surplus of the pollution rights. That glut took policy-makers years to mop up, culminating in an agreement that got final approval only last month. Utilities like Uniper will feel the brunt of the impact of higher carbon prices—governments cut off the supply of free permits to most power generators while doling out allocations for industries like steelmakers. EU emission allowances are the best performing energy commodity this year, according to a report by Bloomberg New Energy Finance (BNEF). They’ve surged 57 percent to as much as €13.04, for each ton emitted on March 22, on the ICE Futures Europe exchange. Higher carbon prices drive up the cost of using hard coal and lignite to run power plants. It’s one of the mechanisms the 28-nation EU is using to move industry away from the most polluting fuels and reaching the goals for curbing climate change set out in the 2015 Paris Agreement. “Climate policy will drive accelerating coal phase-outs in the next few years,” said Phil MacDonald, an analyst at Sandbag, an environmental research group. Jan Kresnik, a portfolio manager at broker Belektron, said prices of €30 a ton or more “could be reachable.” BNEF estimates it will reach €32 by 2023. All this is in step with the ideas that percolated over the past two decades from economist Richard Sandor, father of both the modern carbon market and interest-rate futures and derivatives on the Chicago Board of Trade. His theory was that putting a price on pollution would be the most efficient way to curtail the greenhouse-gas emissions damaging the atmosphere. The idea won official backing at the United Nations climate talks in Kyoto, Japan, in 1997. Some of the biggest energy users remain concerned about the upward drift in prices. Steelmakers especially blame the carbon market for reducing their competitiveness. At Britain’s Engineering Employers Federation representing manufacturers, Roz Bulleid, who is head of climate policy, supports emissions trading but says her members are “increasingly jaded” about the impact. “The original intention to deliver emissions reductions at least cost has been replaced by a focus on achieving a certain carbon price,” Bulleid said. “There are a number of overlapping policies in this area muddying investment signals. Overseas competitors are not facing the same policy costs.” Bloomberg News

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

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Monday, April 2, 2018 A13

Corporation, community partner for biodiversity conservation

n Barangay Atisan, San Pablo, Laguna, a corporation serves as partner with the community to conserve biodiversity while promoting rural development and economic enterprise. Broadchem Corp., established in 1989 as a product development and distribution company for new and emerging products for the animal health industry, is engaging community folks to conserve the local biodiversity while earning a living through its Environment, Livelihood and Education Community Social Responsibility Program (CSR). Broadchem Founder and former Agriculture Undersecretary for Livestock Jose C. Reaño initiated the CSR Program in 2004, by transforming an 18-hectare marginal and barren upland into a healthy ecosystem. Reaño engaged jobless community folks to plant bignay trees and taught them to how to conserve the biodiversity. Bignay bears sweet and luscious small berries but is not a popular fruit. “When I arrived in Atisan, people cut trees for livelihood. Now they plant bignay trees to earn money. Broadchem set up a wine-making facility using the improved winemaking recipe I learned from my alma mater, UP [University of the Philippines] Los Baños,” Reaño said. “Bignay berries are made into high-quality table wine, whose taste is comparable to imported ones but has more antioxidants. We are now marketing our bignay wine under the brand Saint Ambrose,” he explained. Bignay is the center of an integrated farm system which Reaño introduced in Atisan. In between trees are indigenous vegetables and other fruit-bearing trees which not only provide sufficient economic returns for the community but also serves as sanctuary for birds. The multicropping strategy ensures soil fertility. To ensure a variety of sources of income, Broadchem introduced cattle and native-chicken raising, as well as bee keeping. Natural ways in managing crop

pests and diseases were also introduced. With the return of vegetation in the once-barren upland, local biodiversity also returned, notably the hornbills. “We only plant indigenous crops to ensure that the local ecosystem stay healthy and safe from invasive alien species,” Reaño added, an active member of the San Pablo City Chamber of Commerce and Industry. The 13-year corporate and community partnership bore new business ventures. From bignay wine, they now produce jams, jellies, fruit

juices and fruit cakes. Integrated with the livelihood and biodiversity conservation programs is the scholarship program for children of selected farmers. Reaño sends them for free to the local college—Dalubhasaan ng Lungsod ng San Pablo. He also donated computer units to the local elementary school. Through the corporate and community partnership, Atisan’s slash and burn problem was eliminated. The biodiversity and local ecosystem are back in the pink of health. The community folks live in harmony with the environment and have developed good values. When the members of the local chamber of commerce visited Reaño’s farm, one of its members, Rolando Inciong, the chamber’s PR director, left behind his mobile phone. Reaching the main road after a 30-minute downhill hike, Inciong’s group waited at a jeepney stop. Fif-

We only plant indigenous crops to ensure that the local ecosystem stay healthy and safe from invasive alien species.”—Reaño

teen minutes later, the group saw two sweat-drenched farmers coming and shouting, “Did anybody leave a phone?” Livelihood, a healthy biodiversity and good values translate to rural development, a product of corporate and community cooperation. Today, Reaño continues his advocacy on corporate-community cooperation on biodiversity conservation. He has been a finalist in the recent Asean Champions for Biodiversity of the Asean Centre for Biodiversity. He has served as resource speaker in various Asean environmental fora. Reaño is currently the chairman of two committees—Agriculture and Tourism—of the Philippine Chamber of Commerce and Industry in San Pablo City (PCCI-SPC) and has advocated the involvement of business in conservation. “With his successful careers in business and government, Joe is now giving back to communities through the local chamber. He is leading our group in promoting the raising of native swine and chicken in San Pablo City. He is also very much involved in agritourism and ecotourism as he is currently developing his area in Barangay Atisan, the highest peak in San Pablo City,” Inciong said, president of PCCI-SPC.

Broadchem founder Jose Reaño (third from right) shows to members of Philippine Chamber of Commerce and Industry in San Pablo City, some samples of bignay products from his mountain farm in Barangay Atisan, San Pablo, Laguna. PCCI-SPC

UN reports Lonelier planet with fewer plants, animals

ASHINGTON—Earth is losing plants, animals and clean water at a dramatic rate, according to four new United Nations scientific reports that provide the most comprehensive and localized look at the state of biodiversity. Scientists meeting in Colombia issued four regional reports last Friday on how well animal and plants are doing in the Americas; Europe and Central Asia; Africa; and the Asia-Pacific area. Their conclusion after three years of study: Nowhere is doing well. TheIntergovernmentalScience-PolicyPlatformonBiodiversityandEcosystemwasabout more than just critters, Study Team Chairman Robert Watson said. It is about keeping Earth livable for humans, because we rely on biodiversity for food, clean water and public health, the prominent British and US scientist said. “This is undermining well-being across the planet, threatening us long term on food and water,” Watson said in an interview. Scientists pointed to last week’s death of the last male northern white rhino in Africa, severe declines in the numbers of elephants, tigers and pangolins, but said those are only the most visible and charismatic of species that are in trouble. What’s happening is a side effect of the world getting wealthier and more crowded with people, Watson said. Humans need more food, more clean water, more energy and more land. And the way society has tried to achieve that has cut

Rice, Canada’s chief government scientist for fisheries and oceans, who cochaired the Americas report. Duke University conservationist Stuart Pimm, who wasn’t part of the study team, said the reports make sense and are based on well-established scientific data: “Are things pretty dire? Yes.” Among the regional findings:

The Americas Keeper Zachariah Mutai attends to Fatu, one of only two female northern white rhinos left in the world, in the pen where she is kept for observation, at the Ol Pejeta Conservancy in Laikipia county, in Kenya, on March 2. According to four new United Nations scientific reports on biodiversity released on March 23, the Earth is losing plants, animals and clean water at a dramatic rate. AP/Sunday Alamba down on biodiversity, he added. Crucial habitat has been cut apart, alien species have invaded places, chemicals have hurt plants and animals, wetlands and mangroves that clean up pollution are disappearing, and the world’s waters are overfished, he said. Man-made climate change is getting worse, and global warming will soon hurt biodiversity as much as all the other problems combined, Watson added. “We keep making choices to borrow from the future to live well today,” said Jake

If current trends continue, by the year 2050 the Americas will have 15 percent fewer plants and animals than now. That means there will be 40 percent fewer plants and animals in the Americas than in the early-1700s. Nearly a quarter of the species that were fully measured are now threatened, Rice said. And when all of “nature’s contributions” are taken into account, nearly two-thirds are declining and more than one-fifth are “decreasing strongly,” Rice added.

Asia Pacific If trends continue, there will be no “exploitable fish stocks” for commercial fishing by 2048. Around that same period, the region will lose 45 percent of its biodiversity and about 90 percent of its crucial corals, if nothing changes, said Asia Cochairman Sonali Seneratna Sellamuttu, a senior researcher at the International Water Management Institute. “All major ecosystems are threatened in the region,” she added.

Europe and Central Asia Even though it is the region that Watson said might be doing the best, 28 percent of the species that only live in Europe are now threatened. In the last decade, 42 percent of the land plant and animal species have declined, Europe Cochairman Mark Rounsevell of the Karlsruhe Institute of Technology in Germany said. Wetlands have been cut in half since 1970.

Africa Africa could lose half of some bird and mammal species by 2100. And more than 60 percent of the continent’s people depend on natural resources for their livelihoods, report Cochairman Luthando Dziba of South African National Parks said. Already more than 20 percent of Africa’s species are threatened, endangered or extinct. While scientists said government and society needs to change its ways, individuals can use less energy, less water and eat less red meat, Watson said. “A balanced diet can really help,” he added. There are “lots of individual things you can do.” The outlook is bleak if society doesn’t change, but it still can, Watson said. “Some species are threatened with extinctions. Others, just pure numbers will go down,” Watson added. “It will be a lonelier place relative to our natural world. It’s a moral issue. Do we humans have a right to make them go extinct.” AP

A local landmark in Port Lincoln, which is a center for tourism because of its ready access to the Bight in Australia, on February 19. The Great Australian Bight, a pristine stretch of ocean, is believed to have enormous natural-gas reserves. The local fishing and tourism industries worry the risks of drilling outweigh talk of jobs. Matthew Abbott/The New York Times

Drilling in ‘Australia’s Galápagos’ raises hopes of jobs, fears of spill

ORT LINCOLN, Australia— It has been called Australia’s answer to the Galápagos: a stretch of rich, pristine ocean facing the Antarctic that is home to calving whales and teeming fisheries that have turned local boat captains into tuna barons. But now the waters, known here as the Great Australian Bight, or just the Bight for short, have drawn a different sort of resource industry: The Norwegian oil giant Statoil plans to start drilling by the end of 2019, to tap what experts call one of the world’s great remaining natural-gas reserves. Here in a country built on resource extraction, where the fossilfuel industry has a long history of political connections that often give it priority over the environment, people fear that this haven for some of the most unusual marine life in the world will be damaged and put at even greater risk from a spill. “Our fishing industry, our tourism industry, our lifestyle, our local food and our wildlife all depend on a pristine coastline,” said a marine adventure company employee, Elise Lavers, while swimming with endangered Australian sea lions. She called the Bight one of the world’s best-kept environmental secrets. “We have too much at stake to allow oil drilling in the Great Australian Bight to occur,” Lavers said. The pressure to seek an oil and gas bonanza is especially intense because of local politics: Much of the Bight extends along the state of South Australia, a struggling postindustrial area where talk of jobs and economic growth dominated a recent local election. Whether to open the Bight to drilling was a crucial issue in the election this past week to select lawmakers for the state Parliament. Leading politicians at the national level have chimed in over the years, with pro-growth candidates arguing that the oil and gas industry would create jobs and wealth in South Australia and beyond for decades to come. “Statoil’s decision to undertake exploration is good news for the South Australian economy,” said Matt Canavan, a conservative senator from the state of Queensland. Even though pro-drilling candidates won in hard-fought races, plans to extract natural gas here still have to be approved by Australia’s offshore oil and gas drilling regulator. Statoil insists that exploration will be safe. Australia has reached its 27th consecutive year without a recession by supplying energy and raw materials like iron ore to the manufacturing economies of Asia, and particularly China. Opening the Bight to drilling would help Australia stay on track to eclipse Qatar as the world’s largest exporter of natural gas by 2020. But opposition to the drilling plan highlights the limitations of relying so heavily on the exploitation of natural resources and their export. The plan has met surprisingly strong resistance, despite the need for jobs in a region where manufacturing used to employ one in five workers. Six town councils have

raised objections to the drilling. Communities on Australia’s southern coast are questioning whether the government can justify putting at risk a unique marine wilderness area that supports the country’s most valuable fisheries and a tourism industry worth more than $1 billion. The Bight gets its name from its appearance: From space, it looks as if a giant bit into the southern coast of Australia. The crescent-shaped bay runs for more than 700 miles, lined by the longest stretch of sea cliffs in the world. Port Lincoln, a small seaside town of around 16,000 people where sealing and whaling reaches back to the 1820s, is the main jumping-off point for access to the Bight. Today, the enormous wealth that it continues to bring is evident in the mansions that dot its coast— homes of the tuna barons who have made millions from selling to Japan, where sushi chefs pay top dollar for Australian tuna. “There’s potential for an oil spill that would be catastrophic for the industry and other industries along the coast,” said Robbie Staunton, marine operations manager at Stehr Group, one of Australia’s leading seafood companies. Computer modeling by the British oil company BP, which withdrew in 2016 from its plan to drill in the Bight, projected that an accident similar to the Deepwater Horizon blowout in 2010 could cause environmental damage along a wide stretch of the southern Australian coastline. This raised local concerns, particularly because the Bight’s waters are deeper, rougher and more remote than those of the Gulf of Mexico. The projection also raised another problem: whether Australia was even equipped to deal with an accident at an offshore drilling platform. The equipment needed to contain a blowout by capping the flow of oil is thousands of miles away in Singapore, and would take up to 35 days to put in place. “History shows that the risks are often substantial,” said Kirsten Rough, a researcher for the tuna industry for more than two decades. There are also environmental risks in the techniques used to locate the oil and gas before drilling begins. Seismic surveys to find the undersea deposits rely on loud explosions that, according to researchers, could drive fish away—especially the tuna that matter most to the area. Fishermen say they have already noticed disruptions in the movements of tuna since the surveys began. Others in the fishing industry, though, are more resigned to sharing the waters with drilling rigs. Though initially opposed to the drilling, Hagen Stehr said the focus should shift to making sure that its impact is limited. This would include ensuring that seismic surveys are not conducted during the times of year when the hauls of fish are the largest. “You can’t stop the development in the Bight,” Stehr said, one of the town’s best-known tuna barons, in his Port Lincoln office, surrounded by photographs of himself with former prime ministers. New York Times News Service

A14 Monday, April 2, 2018 • Editor: Angel R. Calso

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editorial

What is Good about Friday?

hile the origin and the exact meaning of the term “Good Friday” has been lost in time, countless parents over the centuries have had to answer a child’s question of why we consider this celebration a “good” day. The Catholic parish priest might explain that this day marks the beginning of the journey to the resurrection and salvation, which is the cornerstone of the Christian faith. Another might add that we learn a good lesson about sacrifice and “Greater love hath no man than this, that a man lay down his life for his friends.” However, most of us are not that “holy” even as we are willing to make sacrifices that are actually in our own self-interest as for a family member and not necessarily for the great good. The person that donates a kidney to a stranger often becomes front-page news. The same sacrifice to a close relative is almost expected. A soldier that might give his or her life to protect a member of the team is heroic but this may be more a part of duty and honor—esprit de corps (“spirit of the body”) than love for our fellow man. The biblical account of this man Jesus of Nazareth comes to a close during what we now call “Holy Week.” While we tend to focus on the reported miracles and other “religious” aspects to this man’s life, many thousands of ordinary folks were taken by what he had to say. His was a message of hope and, then as now, we all need to hear that there is something better for us individually and the world around us. It does not take much examination to see that many of Jesus’ actions appealed to people. When He approaches Jerusalem, Jesus is greeted by a large crowd with many calling Him “King” and not necessarily in a religious context. He goes to the Temple and drives out the money changers and those selling sacrificial animals, no doubt with a high profit margin and perhaps a kickback to the local priests. The “chief priests and the teachers of the law” were not too happy about that; the people were probably happy. Jesus challenged the authority of the religious leaders. The first trial begins at the Sanhedrin, the religious tribunal, which was open to the public and witnesses are presented. But their testimonies do not match, and the people hear this and the people are not ignorant. But Jesus is found “guilty.” Finally the trial continues before the Roman governor Pilate, who represents the occupying Roman army. Jesus is eventually led to His execution. One interesting thing about the Holy Week story is that at anytime from the arrest in Gethsemane, the authorities could have just killed Jesus. They really did not need the cover of due process by law. But we are told that they did not because “there may be a riot among the people.” Maybe the “Good” lesson from this “Friday” is that ordinary, normal people have more power than they think. Those who may have voted for Rodrigo Duterte for president are not “idiots” as they are so often called on social media. Those who supported the candidates of the Liberal Party are not “evil yellows,” another phrase that comes up often. The loudest voices are not necessarily the correct voices. They are only loud. But those are the ones that divide the people and the nation and do the most damage. Since 2005

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The Saturday Group: A timeline Atty. Jose Ferdinand M. Rojas II

RISING SUN

Conclusion

llow me to finish today the 50-year timeline of The Saturday Group that I started here two Mondays ago. The group celebrates its 50th anniversary this year with an exhibit, Saturday Group Gold: Celebrating 50 Years in Art, at the Main Gallery of the Cultural Center of the Philippines. You can still view the show until the 6th of May.

The Current Saturday Group Years (1994 to present)

Then president of the group, Cesar Legaspi, died on April 7, 1994. After this sad period, there was confusion over the new leadership as some members believed it should be Mauro “Malang” Santos who should become the next leader because Legaspi entrusted the leadership of the group to him. On the other hand, there were members who said that Onib Olmedo, as the elected president, should take the lead. Olmedo, however, resigned immediately and some artists left the group to put up the “Saturday Morning Group,” a factional circle that was formed in protest.

Under Malang, the group conducted regular sessions at the Corinthian Gardens and the Metropolitan Museum of Manila. The Annual Group Exhibition also became mandatory at this time. In 1995 Ben Francisco designed the official logo and the group also started a successful fundraising campaign in the same year, Portraits for a Cause. In 1996 The Saturday Group started producing the monthly newsletter Saturday Balita. (This would run until the year 2001.) The sketching sessions, which were sometimes being held at the Giordano office in Quezon City, also started happening at the Shangri-La

Mall. The following year, the group visited Hong Kong courtesy of the group fund. Arturo Luz, a Saturday Group Member, also received the National Artist award in 1997. Malang resigned in 1998, and appointed Cris Cruz as the new president. The group’s constitution was drafted and adopted that year. The next year, the group went to visit Thailand. James Onglepho also opened Asia Art Gallery to the group in the same year. Shortly after, in 2001, Frank “Paquing” Verano was assigned as the new leader of the group and, also in the same year, Ang Kiukok received the National Artist status. The group gets a new leader once again in 2002, when Buds Convocar started his leadership. In the same year, the first fundraising art raffle was also held. This was seen to become an annual event that could help fund the group’s outings and charity projects, including scholarships for Fine Arts degrees of some of its members. Still in the same year, Judy Araneta-Roxas provided the group with gallery space at Alimall in Cubao, free of charge. The Crucible Gallery also provided the staff for the space, also at no cost to the group. In April that year, the art exhibit Unang Sibol inaugurated the gallery. Alya Honasan published The

Actually, you can fix stupid

By Timothy Egan | New York Times News Service

ope Francis opened the holiest week of the Christian calendar with an admonition to the generation that will own the 21st century. “Dear young people, you have it in you to shout,” he said in his homily. “It is up to you not to keep quiet.” Other voices were more censorious. On Fox & Friends, which provides President Donald J. Trump with a steady ration of half-truths and hatreds to fill an empty head and an empty schedule, a cohost had some advice for younger citizens just now learning how to use the wings of democracy. “These 17-year-olds should go back to civics class,” said Pete Hegseth, scowling at the March for Our Lives demonstrators. Actually, civics class has come to them, in the form of a hail of bullets from a weapon of war that is legal because of a broken political system. They’ve been forced, by triage, to learn how to use the tools of democracy that were largely denied them by passive educators. It’s no secret that in the rush to produce adults who are adept at applying science and technology to modern life, we left them ill-trained in the basic duties of citizenship. Nearly a third of Americans cannot name a single branch of government, and almost 40 percent are unable to cite a right

guaranteed by the First Amendment. But it’s not the kids who are the doofuses. “There’s a big difference between being ignorant and being stupid,” said Sonia Sotomayor, associate justice of the Supreme Court. She’s been touring the country—38 states so far—promoting civic competence among the young, a virtue that used to be a bedrock part of American education. “No one is born a citizen,” she said during a stopover in Seattle. “You have to be taught what that means.” The teaching, for a generation that has come of age since the 1999 Columbine massacre, for the 187,000 students who have experienced a shooting on campus during school since then, has been largely do-ityourself. Only a handful of states require proficiency in civics and government as a condition of graduation. The educational system, with its fear of confrontational topics and its corporate-driven emphasis on Stem, has failed them. But one of the great surprises of the Trump era is the renaissance of

civic engagement—at a level of urgency not seen in half a century. It’s a reaction to severe stress on democracy; Trump is both the cause, and leading symptom, of that stress. The awakening started with the revulsion of women—at a president who is credibly accused of sleeping with porn stars, while his wife nursed their newborn child and who bragged of sexual assault, and at his daily slights to truth, dignity and other values that mothers teach their children. And now it’s the young’s turn. Critical thinking has arrived at a critical time. They’re not afraid of trolls; they grew up with snark from a screen. So after Laura Ingraham at Fox taunted a Parkland shooting survivor for not getting into his college of choice, the student immediately tweeted out a list of her advertisers. When they threatened to bail, she apologized. “These self-righteous kids screaming at you on television over the weekend aren’t helping out at all,” said Tucker Carlson, another Fox scold. As he knows, they are helping—but just not his side. “First we march, then we vote,” was a leading slogan of the demonstrations. The problem is that Americans are among the least-active voters in developed countries—another consequence, I would argue, of not teaching the manual of democracy

Saturday Group Book in 2003, as Jose Joya received the National Artist award (posthumously) also in the same year. Three years later, in 2006, it was Bencab’s turn to receive the citation. The group got its first female president in the person of Anna de Leon in 2007, as Migs Villanueva published The Saturday Group, a hardbound full-color coffee-table book, also in the same year. She would later serve as president from 2013 to 2017. In 2009 another Saturday Group member, Federico Aguilar Alcuaz, received the National Artist award. More recently, just last year (2017), Omi Reyes was elected president of the group. The Saturday Group Gallery also opened in Shangri-La Mall in the same year. And, together with Reyes, I helped the group obtain its certification of incorporation, after 49 years, as the “Manila Premier Saturday Artists Group Inc.,” a duly registered artists association. It’s been a long journey for the Saturday Group and now, 2018, we are celebrating 50 colorful years in the Philippine art and culture scene. My warm congratulations to everyone who is, and has been a part of this interesting and meaningful endeavor. More power to the Saturday Group! Long live the artists!

in school. And young people are the least likely to vote. “Adults mess up a lot,” Sotomayor told the high-school kids in her audience in Seattle. “We don’t have all the answers. We need you to come up with fresher and better ideas.” So today, these young people wonder why even the most obvious legislation, universal background checks on all gun purchases, can’t pass in Congress despite support from 90 percent of the public. They learn quickly that it’s because a single lobby owns the politicians. The obvious solution, which jaded political minds often forget, is to vote the bums out. It’s not complicated. And again, it shouldn’t be a DIY thing. Let’s teach people how to tell fake news from real news. They do this in Italy, and many universities in the United States have taken it up as well. It should be, like learning road signs before you can get a driver’s license, one of the courses that everyone takes before getting out of high school. Democracies die when citizens feel powerless. The biggest stress test will come if Trump fires special counsel Robert Mueller. Then, all the people new to the process will see what a constitutional crisis looks like. But thanks to recent, real-life lessons, they’ll recognize it for what it is. And they won’t feel powerless to do something about it.

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The familiar Passion play PSPs challenging a PSP By Alberto Agra

Joel L. Tan-Torres

PPP Lead

DEBIT CREDIT

uring the Lenten season, the whole of Christendom celebrates the Passion of our Lord, starting from the Last Supper with Christ’s Apostles on Holy Thursday, to the suffering, crucifixion and death of our Lord on Good Friday, and culminating with the Resurrection of Jesus on Easter Sunday. For a great number of Filipinos, this Passion play is somewhat replicated on a regular basis, not in terms of events that arise, but in terms of the anguish and suffering encountered. We are too familiar with the drama that arises with the death of a member of the family. Though the suffering may not be comparable with how Jesus Christ agonized, the loved ones of a deceased person will not only grieve because of the loss of a precious relative, but also will suffer because of the inheritance and tax problems that will arise instantaneously at the time of bereavement. In the Philippines the death of a person oftentimes will result in the remaining members of the family dealing with the contentious issues on inheritance and settlement of the estate tax. The situation becomes quite complicated, especially if the deceased person is affluent or failed to plan for these realities of death. Inheritance issues include the legal if not equitable legal process of distributing the properties to the heirs; establishing the wish of the departed one, who may or may not have a last will and testament; dealing with the expectations, if not demands, of legitimate as well as “illegitimate” heirs; and zillions of details that need to be addressed urgently even while the successors are bereaving. Equally problematic are the tax concerns that will definitely arise. The old Tax Code before the onset of the current Tax Reform for Acceleration and Inclusion law imposed an inheritance top tax rate of 20 percent and a whole set of complicated rules to compute and pay the estate tax. The new tax laws, which took effect in 2018, somewhat simplified the tax system and reduced the estate tax to a lower rate of 6 percent. But

even with this simplification, a tax is a burdensome and complicated item to deal with, especially if the surviving heirs have never discussed or planned for this inevitability. And more often than not, this state of unpreparedness is the situation that most of my acquaintances and clients experience at the hour of death of a loved family member. I have been involved in the business of tax for over 35 years and I continue to hear these hardship stories from the spouse, sons and daughters who were left behind to address these inheritance woes and tax problems. The explanation oftentimes given why these issues were not addressed and resolved during the lifetime of the deceased is that it was perceived that discussing the topic of inheritance and estate tax planning was taboo if not disrespectful. “Why do you want to discuss your inheritance? Do you want me dead already so that you can get your share of the properties that I had worked so hard to accumulate?” These are the thoughts or sentiments of the elderly head of the family, real or otherwise, perceived by the younger members of the family that hinder or prevent these conversations on timely estate tax planning and transfer of properties. Will this familiar Passion play on the lives of the typical Filipino family never change? Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He was the former Commissioner of the Bureau of Internal Revenue from 2009 to 2010. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

Continued from A1

olicited versus unsolicited. There are two recognized PACT-compliant ways by which an IA can select a PSP—the IA either solicits and initiates the selection process, or the IA accepts an unsolicited proposal (UP). For UPs, the PSP, not the IA, prepares, without being invited, the project study. The PSP obviously takes a risk of being snubbed outright since the IA cannot be compelled to accept a UP. Governing policy. The BOT law, the 2018 Joint Venture Guidelines issued by the National Economic and Development Authority (Neda Guidelines), Memorandum Circular 120-2016 released by the

Bernard Siegfred Bueno Mison, Esq.

THE PATRIOT

AINT Bernard is a gentle dog breed famous for its enormous size. These dogs were originally bred for rescue at two hospices built and run by monks near the borders of Italy and Switzerland, and Italy and France. At Philippine Airlines (PAL), we have a different, yet similar, kind of Bernard—he is not a dog, but embodies the gentleness and rescue abilities a Saint Bernard is known for. Chief Commercial Adviser Bernard Francis is hardworking and efficient, though you will hardly see him inside his office; he chooses, instead, to go and work side by side with his managers. During a January kickoff event for the Commercial Group of PAL, Bernard rallied together the Sales, Revenue Management, and Marketing departments to hit the revenue target of $2.6 billion. It could be because of Bernard’s work ethic that PAL exceeded revenue targets

The rise of God’s spokeswomen By Nicholas Kristof New York Times News Service

ver since Eve bit into an apple in the Garden of Eden, God has been rough on women. Or, more precisely, the men who claim to speak on behalf of God have routinely disparaged women or discriminated against them. Male religious leaders declared menstruation ritually unclean and advised in Deuteronomy that when a girl doesn’t bleed on her wedding night “the men of her town shall stone her to death.” Saint Paul orders women to “be in submission” and adds, “It is disgraceful for a woman to speak in the church” (some scholars believe that Paul didn’t write that passage, and that it was added later). Over the centuries, it was fine for women to be martyred (or, at times, to be burned as witches), but they were denied the right to become priests, rabbis or ministers. Yet a revolution is unfolding across America and the world, and countless women will be presiding this weekend over Easter and Passover celebrations. In just a few decades, women have come to dominate many seminaries and rabbinical schools and are increasingly taking over the pulpit at congregations across the country. “What we’re seeing before our very eyes is a dramatic shift; in my mind it’s as big as the Protestant Reformation,” says the Rev. Serene Jones, the first woman president of New York City’s Union Theological Seminary—where almost 60 percent of the students are now female. “We’re seeing a new day of understanding of who God is,” Jones added. “When the people who are representing God, making God present, have female bodies, that inevitably changes the way you think about how God is.” Jones argues that over time women will come to dominate religious leadership and that this will powerfully reshape Americans’ understanding of God from stern father to more of a

Department of the Interior and Local Government allow for both open bidding or competitive selection, and competitive challenge for UPs. “Who” is challenged? There is nothing personal about the

maternal healer and nurturer. “It changes the way you think geopolitically about the greatest truth,” she says. Granted, an enormous distance remains to achieve equity, especially in Catholic, evangelical and Mormon churches and in Orthodox synagogues. Women studying to be ministers or rabbis share wrenching #MeToo tales of sexual abuse and of infuriating gender pay gaps. Religion News Service calculated in 2015 that a majority of religious women belong to a denomination that generally prohibits them from becoming leaders. It’s a disgrace to humanity that for millenniums we’ve placed a divine stamp on discrimination against women, insisting that inequity is actually sacred. But just as religion was initially used to justify slavery but later to inspire abolitionists, faith is now evolving from a rationale for suppressing women to a means for empowering them. In small towns across America (including my hometown, Yamhill, Oregon, which has one stoplight and five churches), this process also elevates women into public moral authorities. When a couple wrestles with infidelity, or a man beats his wife, it’s now often a female pastor or rabbi who counsels them. Will the messenger change the message? Not in every case, but women do bring their own perspectives to religious leadership. Ruth Messinger, who was president of American Jewish World Service, says that women in religious aid groups seem more inclined to address gender violence or girls’ empowerment. Likewise, with a majority of students in many seminaries and rabbinical schools now women, and increasingly leading congregations, it may become less natural to think of God as “He.” Already, Reconstructionist Judaism—where 63 percent of the new rabbis since 1998 have been female—refers to God with gender-neutral language or in the feminine. There’s a legend in progressive Judaism that

in passenger sales in the first quarter of 2018. While others might say this success is due to his leadership, Bernard believes that it is a blessing from above, just like all things that have been given to him ever since he became a follower of God at 16 years old. In his opening speech at that kickoff event, Bernard, to my pleasure and surprise, invoked the grace of God to help his team meet and exceed the company’s expectations. The opening prayer, which was led by different department representatives, also asked for divine intervention to unite the group in solidarity of purposefulness, respect, teamwork and commitment to the

a man once angrily protested that a woman no more belongs at a synagogue pulpit than an orange belongs on a Seder plate. So these days when celebrating Passover, some Jewish families include an orange on the Seder plate. Rabbi Emily Barton, who presides over a Conservative synagogue in Des Moines, says that her congregation hasn’t had a problem with the fact that she’s a woman and a lesbian. But she does acknowledge that she’s uncomfortable with passages in the Bible that seem homophobic or misogynistic. “If I was giving advice to women who wanted to be clergy, I’d say, ‘Be OK with being uncomfortable, because there are always going to be things in your religion that make you uncomfortable,’” Barton said. “Sometimes you just have to live with your discomfort.” Women clergy can mine the Bible for plenty of strong women role models and for passages that suggest real equality. One of ancient Israel’s leaders was a woman, Deborah (Judges 4-5), and later Esther saved the Jews from slaughter by the Persians. As for the New Testament, the first witnesses to the Resurrection are women. And here’s a quick quiz question: In the Bible, who is the only person who outargues Jesus in a public debate? The answer is an unnamed gentile woman. Both Mark (7:24-30) and Matthew (15:21-28) tell how she approaches Jesus—in Mark’s version, she barges into the house where he’s staying and begs him to heal her daughter. Jesus is initially dismissive of her, saying that he will help only his fellow Jews. “It is not right to take the children’s bread and toss it to the dogs,” he says (calling someone a dog was a serious insult). “Yes it is, Lord,” she replies. “Even the dogs eat the crumbs that fall from their master’s table.” She talks back! She’s feisty! But Jesus then praises her for her “great faith” and heals her daughter. The story can be read as a celebration of a woman who, er, persisted.

Monday, April 2, 2018 A15

competitive challenge process. The “who” in the challenge is the original proponent (OP)—the PSP whose UP was accepted under the BOT law; or the PSP who passed the negotiation phase under the Neda Guidelines. When is the challenge? The IA cannot sign the PPP contract with the OP without going through a challenge, otherwise, there will be no PACT. The challenge happens in Stage 3—after the UP is evaluated and accepted (Stage 1) and the IA and PSP come to terms after negotiations (Stage 2). The IA causes the publication inviting challengers. The PSP, on the day of the publication, posts the required security. Who can challenge? The PSPs who wish to challenge must be legally, technically and financially capacitated. They must signify their intention to participate in the process, purchase the terms of reference (TOR) for the challenge and submit their counteroffers.

What is being challenged? In Stage 2, the IA and PSP agree on the technical aspect of the PPP project. The terms and conditions of the challenge are spelled out in TOR, which are anchored on the negotiated terms in Stage 2. What remains to be determined is the economic or financial aspect of the project, the scope of the challenge in Stage 3. Interested challengers must be able to implement the project based on the Stage 2-determined technical description of the project with all its components. If there is no challenger? In the event that there is no challenger, the OP secures the project under the negotiated terms arrived at in Stage 2. If challenged, what now? If there are qualified challengers, the OP, depending on the relevant policy, shall have the right to match or outbid the superior offer, or shall have the option to submit a second financial offer.

team goals. The group prayed for unity, hope and vision as they all recited in unison: “Lord, we pray for unity. Build in us all a deep respect for one another so that the Commercial Group may be one. Lord, we pray for hope. Come stir Your hope within our hearts and renew our faith. Lord, we pray for vision. May Your vision fill our lives as we seek to reveal Your love.” In a PAL Awards event a few weeks ago, Bernard yet again displayed his unwavering faith and commitment to God. In his opening speech, Bernard praised Him and gave thanks for His abundant blessings. He never forgets to attribute his success to God because of his brother and late mother’s influence, as well as a nun who introduced him to a better relationship with Him. A pastor from Christ Commission Fellowship (CCF) once said that while we all want to succeed at work, we have to succeed at what matters the most. As this CCF pastor said, money and titles may indicate success at work but the true meaning of success is “becoming all that God wants you to be and doing all that He wants you to do.” Bernard is doing just that. He is fulfilling his ministry here on Earth by

simply making a difference in PAL. Everyone in PAL expects Bernard and his commercial group to meet revenue targets. In the process, Bernard is leading by example in showing his team the importance of knowing and understanding why they do what they do in PAL. In the Bible, Colossians 3:2324 tells us, “Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that you will receive an inheritance from the Lord as a reward. It is the Lord Christ you are serving.” And this could be the reason Bernard’s group is performing surprisingly well in terms of key performance indicators (KPI). I see the group become more united, highly motivated and very inspired. Some colleagues think that Bernard has come to the rescue of the PAL Commercial Group in the same way Saint Bernard dogs were famous for in the Swiss Alps—timely and providential. The KPI and revenue targets might all be about PAL. But for Bernard Francis, all these numbers are more about Him. For questions and comments, please e-mail me at sbmison@gmail.com.

Drink when thirsty… that’s the new rule

By Jesusa L. Carag

ummer is here. Once again, the sun is at its brightest and hottest. Beach resorts and picnic parks are waiting for eager students on vacation and their whole families. Students are particularly excited when summer is here, which spells vacation for them. No lessons and no homework. Just pure fun every day. However, the intense heat makes outdoor activities for students more challenging in terms of their physical fitness. Parents are advised to keep their children properly hydrated during the summer months. Why? Because if they are dehydrated, they’ll feel weak and may experience extreme fatigue. Lack of liquid in the human system will not only affect the body but also the brain. That’s what makes dehydration dangerous. Just like food, we also need nutrients from water to support our body system so that we can remain lively and energetic. But just how much water should we drink every day? People say the rule of thumb is eight glasses every day. But, really, we should only drink water when we’re thirsty. Science has proven that our body is pretty good at judging when it is low on water. In fact, drinking when we’re not thirsty might even confuse our brain. A recent study in the Proceedings of the National Academy of Sciences looked at how the brain regulates the sensation of thirst and the reflex that allows us to swallow water. It found out that the brain actually tamps down on that swallowing

reflex once we’ve had enough to drink. Drinking when we’re not thirsty forces us to override that instinct. “It’s a biological mechanism in quite ancient parts of the brain, and it seems intent on stopping us from drinking too much,” said Michael Farrell, the study’s coauthor. While drinking plenty of water to stay hydrated is important, experts are now warning us that consuming too much water might actually be harmful. Apparently, drinking excess liquid, especially when we’re not thirsty, is bad for our health. The new study said that drinking too much activates a “protective swallowing inhibition” in the brain and can cause people to suffer from water intoxication. Drinking too much water may lead to hyponatremia, a condition when sodium levels in the blood becomes abnormally low. Symptoms of hyponatremia include headache, confusion, seizures, weakness, restlessness, muscle spasms or cramps. So, how much water should we drink? Here’s the advice of experts: If you have specific medical concerns, talk to your doctor. For healthy individuals, however, experts recommend that you “have a beverage with meals and drink water when you are thirsty.” In other words, heed your thirst signals, enjoy that watermelon, and stop feeling guilty for not drinking those extra glasses of water that so-called health experts recommend. The author is Teacher 3 at Enrile Vocational High School in Enrile, Cagayan.

2nd Front Page BusinessMirror

A16 Monday, April 2, 2018

Manila assures WTO members of sustained economic liberalization

By Elijah Felice E. Rosales

@alyasjah

he Philippines assured its trading partners of its commitment to liberalize at least eight investment areas, two of them deemed crucial to the success of the Duterte administration’s “Build, Build, Build” program.

In his closing statement at the country’s fifth trade-policy review at the World Trade Organization (W TO), Trade Undersecretar y Ceferino S. Rodolfo Jr. said “the Philippines is already an open economy, with foreign investments allowed in a broad range of activities.” And it does not stop there, he added, as the government is inclined to open more sectors for foreign ownership through its three-pronged reform approach. Rodolfo said the first part of this strategy is to review the eight investment areas President Duterte wants to liberalize. As listed in Memorandum Order 16 issued last November, the Presi-

dent intends to relax, if not remove, foreign-ownership cap on private recruitment; practice of particular professions; contracts for public works; public services; culture, production, milling, processing and trading of rice and corn; teaching at higher education levels; retail-trade enterprises; and domestic market enterprises. Of these eight, Rodolfo said priority is placed on contracts for the construction and repair of locally funded public works and public services, except activities and systems that are recognized as public utilities. “By giving priority to these two areas, we look forward to creating a more liberal

The number of investment areas that Duterte wants to liberalize based on Memorandum Order 16

investment environment where our Build, Build, Build program would be able to deliver, deliver, deliver at the soonest possible time,” he explained. Under Executive Order 184, or the 10th Regular Foreign Investment Negative List, contracts for the construction and repair of locally funded public works are limited to 25-percent foreign equity. On the other hand, foreign investors are allowed to own up to 40 percent in the operation of public utilities, with respect to Article 12, Section 11 of the Constitution. Aside from this, Rodolfo also said Commonwealth Act 146, or the Public Services Act, will soon be amended by Congress. The 82-yearold law defines the sectors considered as public utilities and are therefore restricted to 40-percent foreign ownership. “Through this amendment, our Congress will be able to provide a clear definition of public utility to

cover only three sectors: distribution of electricity; transmission of electricity; and water-pipeline distribution or sewerage pipeline. This means that all other sectors in transportation—land, water and air—communication, electricity and water services will be opened to 100-percent foreign ownership,” the trade official said. Rodolfo added there is also the consultative committee mandated by Duterte to review, among others, economic provisions of the Constitution that reserve certain activities to Filipino citizens. “The intention is to create a window for these activities to be liberalized through legislation,” he added. The Philippine delegation, headed by Rodolfo, was quizzed last week by WTO member-countries on a number of issues relating to trade and economy. Among the questions raised was Manila’s efforts to remove restrictions on foreign ownership. China, for one, inquired if the Philippines is considering to allow foreign participation on mining, energy, construction and public utilities. On the other hand, the United States asked for an update on the government’s steps to liberalize communications and transportation.

Senators eye ‘constitutional, healing’ BBL by May break Continued from A1

one finally come to pass. In separate interviews, senators said they are looking to front-load deliberations on BBL as soon as Congress reconvenes regular sessions in mid-May, despite their tight schedule. Senate Majority Leader Vicente C. Sotto III indicated over the weekend that they are targeting to submit the awaited measure for plenary approval before their next adjournment on June 1. Upon resumption of regular sessions, Sotto said the Senate will schedule plenary deliberations on the BBL to allow senators to seek further clarification on the proposal to grant wider autonomous power to Muslim communities in Mindanao. Asked if the Senate will be ready to put the bill to a floor vote shortly after sessions resume in mid-May, Sotto made it clear, though, “We are still in the period of interpellations,” meaning, senators are still taking turns grilling Sen. Miguel F. Zubiri, chairman of the Subcommittee on the BBL and principal sponsor of Senate Bill (SB) 1717. “Hopefully, we will pass [the BBL] on second reading before the sine die adjournment [on June 1],” Sotto said. Zubiri, for his part, also vowed to comply with his own set timeline on processing the BBL through Congress. “I plan to resume interpellation on May 15 then close the period of interpellation on May 22, then start the period of amendments that same day and on May 23. I’ll move to approve it on third and final reading by May 28, which is a Monday, to time it before our sine die break on May 31,” Zubiri said in an interview.

Duterte’s timeline

The Senate’s timeline came under fresh pressure last week after President Duterte met with leaders of

MAMA MARY MEETS THE RISEN CHRIST Young cultural dancers perform the “Bati” (greeting) dance as the Virgin Mary meets the Risen Christ in front of the National Shrine of Saint Padre Pio in San Pedro, Santo Tomas, Batangas. The Bati dance is part of the Salubong (meeting), an early-morning ritual that is part of the Easter Sunday celebration. ROY DOMINGO

the Moro Islamic Liberation Front (MILF), Bangsamoro Transition Commission (BTC) and government peace panel in Davao City. The meeting took place a day after Duterte visited Sulu and urged the people there to scrutinize the proposed BBL, with the President apparently determined to avoid the kind of legal wrangling that plagued the first BBL version under his predecessor. Present at the meeting, a report by the state-owned Philippine News Agency (PNA) said, were MILF Chairman Al-Hajj Murad Ebrahim, BTC Chairman Ghadzali Jaafar and MILF Peace Panel Chairman Mohagher Iqbal and Presidential Adviser on the Peace Process Jesus Dureza. Duterte apparently noted the call of the MILF leaders for Congress to pass the BBL first before a new Constitution, one embodying his vision of federalism, is ratified.

The President, however, is anxious that some stakeholders in the South, especially non-MILF members, might feel excluded from the final BBL, and underscored such when he visited Patikul town in Sulu. The PNA report said Duterte appealed for unity there, saying a lot of tribes in Mindanao should be considered in crafting the BBL. Nonetheless, Duterte wanted an end-2018 timeline for BBL’s passage, hence his desire to help ferret out, this early, reservations on the evolving version. “I have to fathom it. That’s why I need to talk to you and I want to finish it this year. I want to have a result of this by the end of the year,” the PNA report quoted Duterte assaying.

New version more inclusive–Zubiri

Zubiri is confident, though, that

the highly inclusive consultations this time around will ensure a much-improved version. “I believe we corrected almost all the flaws of the previous BBL after extensive hearings and consultations had taken place. This version is more inclusive with members of the MILF, MNLF [Moro National Liberation Front], women, Christians and IP [indigenous people] sectors fully represented during the hearings and consultations,” he said. The hearings called by his Subcommittee on the BBL were participated in by constitutionalists, Supreme Court chief justices and other legal eagles “to assist us in making it constitutional,” Zubiri said. When Zubiri endorsed for plenary debates on March 1 his BBL version, he described it as being “96-percent BTC,” referring to the multisectoral Bangsamoro Continued on A2

www.businessmirror.com.ph

Finding the right balance: A cautionary tale on monetary policy Continued from a1

can say that it needs to be done with care and caution, as well as with vision and compassion.

Economic outlook: The current symptoms

This brings me to my observations about the markets recently. Some analysts have been expecting the Bangko Sentral ng Pilipinas (BSP) to raise its policy rates or tighten its monetary-policy stance on account of several developments. First, inflation outturns for the first two months of the year have shown an elevated path. Second, as a consequence of higher actual inflation, inflation expectations have, likewise, gone up and there is thus a purported need to anchor monetary policy. Third, the prevailing inflation outlook suggests increased risk associated with the possible emergence of second-round effects. Fourth, the US Federal Reserve’s (US Fed) current normalization path could trigger potential capital outflows and, therefore, add further pressure on the peso. Do these developments warrant a change in the BSP’s monetary stance? In line with Stiglitz’s metaphor, do the symptoms require medication?

Diagnosis beyond the symptoms

While these concerns are relatively valid, the BSP believes that these developments, along with other ignored but equally important facts, continue to validate the current monetary policy stance. Hence, during the meeting on monetary policy on March 22, 2018, the Monetary Board decided to maintain its policy rate, the interest rate on the BSP’s overnight reverse repurchase (RRP) facility, steady at 3.0 percent. Both the standing overnight deposit and lending rates were also kept at 2.5 percent and 3.5 percent, respectively. Cognizant of the trade-offs and opportunity costs between output and inflation, the BSP has been conducting monetary policy under an inflation targeting (IT) framework since 2002. This framework looks deeper beyond current economic symptoms that market players usually focus on through a comprehensive assessment of the country’s current inflation dynamics. It additionally and, more important, requires a forward-looking assessment of the inflation outlook in the medium to long term. It would be useful to clarify that BSP assesses the macroeconomy, financial sector and global developments through the lens of the BSP’s IT framework. How does this work? First, while recent inflation outturns show an elevated path for the first two months of 2018, a few observations should not define the direction of our monetary policy. Monetary policy, indeed, works with a long and variable lag. The latest baseline forecasts continue to show that inflation may still remain within the inflation target in 2018 and moderate further to stay well within the target in 2019. We expect elevated readings for the most part of 2018 but some gradual leveling off is likely to happen between the third and fourth quarters of 2018. Aside from the manageable inflation outlook, surveys, likewise, indicate that inflation expectations continue to be anchored close to the BSP forecasts and targets. While some market indications point to rising inflation expectations, nothing at this point suggests that the market expects persistent significant surge in consumer prices through 2019 that would warrant a change in the monetary-policy stance. Second, the drivers of inflation continue to originate from the supply side. Monetary policy should not be adjusted to respond to temporary shocks. A recent study by Cecchetti and Moessner (2008) examined the impact of the significant rise in food and energy prices on inflation dynamics. Their results show that core inflation does not tend to revert to headline inflation, which implies that higher commodity prices do not, in general, lead to second-round effects on inflation. The study was replicated using Philippine data and the conclusion was sustained. This suggests that transitory shocks in food and energy prices can safely be accommodated. Third, while we recognize the possibility of second-round effects emanating from pending petitions for adjustments in minimum wages and transportation fares, several mitigating measures from the national government could temper any price pressures from this front. Nonmonetary measures, such as institutional arrangements in setting transportation fares and minimum wages; unconditional cash transfers which were set for distribution this March 2018; as well as transport subsidies are expected to help mitigate these inflationary impulses. In addition, once the rice-tariffication bill is passed by Congress, we would also expect further price amelioration for many Filipinos. Fourth, under the IT framework, decisions on the monetary policy stance will continue to be data-dependent, focusing in particular on the outlook for inflation and domestic demand. We will act on external developments to the extent that these could alter the domestic inflation path. Thus, the impending normalization in the US Fed does not have to be matched by a corresponding tightening in the Philippines. Our economic and business cycles as they affect inflation dynamics are quite different. Moreover, our estimates of the exchange rate pass-through to inflation has declined since the adoption of inflation targeting in 2002. This gives us additional space to accommodate the peso’s flexibility in absorbing and thereby mitigating external shocks to ensure that the economy’s need for rebalancing and adjustment is met.

Conclusion: Finding the right balance

As the BSP’s history of IT has shown, focus and discipline in avoiding unnecessary overreactions result in long-term stability of prices, expectations and credibility. While there are pressures to raise interest rates, our careful assessment of the data and facts does not point to immediate rate hikes. Should conditions alter and the targets may be compromised, the BSP will not lose time to do the appropriate tightening. The BSP’s future actions will continue to be about taking a balanced approach and careful assessment of data. Ensuring that the cure does not become the disease itself suggests that finding the right balance in the conduct of monetary policy is absolutely necessary. But the markets can be assured that the BSP remains firmly committed to its primary mandate of promoting stable prices in the economy conducive to sustainable and balanced growth. Stiglitz, after all, was for care and caution as much as for growth and fairness.