Businessmirror april 05, 2018

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Thursday, April 5, 2018 Vol. 13 No. 173

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@jonlmayuga

nvironment Secretary Roy A. Cimatu has signed an order that will ensure the proper determination, assessment and collection of fees for the Special-Use Agreement in Protected Areas (Sapa) effective this year. The new order is expected to increase revenues generated from fees collected from the special use of land within a protected area (PA)

Grab assures PCC of full cooperation in merger review By Lorenz S. Marasigan

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@lorenzmarasigan

rab has committed to take a cooperative stance in the review that will put to rest the competition issues raised by both the government and the riding public on its merger deal with Uber, a company official said.

59,020

The current combined fleet of Grab and Uber in the country Grab Philippines Public Affairs Manager Leo Emmanuel K. Gonzales said his group has anticipated that the Philippine Competition Commission (PCC) will launch a review of the deal, given the nature of the merger. Despite this, the company seems to be confident that it Continued on A12

to as much as P500 billion annually, Director Theresa Mundita S. Lim of the Biodiversity Management Bureau (BMB) said.

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Cimatu unleashes ₧500-B economic potential of PAs By Jonathan L. Mayuga

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China embarking on a higher road in its ‘marketization’ program

240

Rene E. Ofreneo

laborem exercens

The current number of protected areas nationwide with an estimated total size of 5 million hectares

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he runaway winner under economic globalization is undoubtedly China. Four decades of continuous double-digit growth have transformed China into a global economic colossus. It is now on the verge of formally displacing the United States as the world’s Numero Uno, which is clearly the reason President Donald J. Trump is foisting a “trade war” on the US economic rival.

“Finally, this is what we’ve been waiting for for a long time,” Lim told the BusinessMirror. Lim said the new fees will take effect Continued on A2

Continued on A10

TPB resurrects Madrid Fusión Manila 2018 ‘FEDERAL SHIFT ALSO REQUIRES

REFORMS IN RECALL ELECTIONS’

By Ma. Stella F. Arnaldo

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@akosistellaBM Special to the BusinessMirror

N a surprising turnaround, the Tourism Promotions Board (TPB) will be pushing through with the Madrid Fusión Manila (MFM) this year. Frederick M. Alegre, spokesman for the Department of Tourism (DOT), confirmed to the BusinessMirror that the popular gastronomy event featuring foreign and local chefs presenting culinary trends will be held from September 25 to 29. “Marriot Hotel‘s grand ballroom will be the venue for the event, and it will be handled by a different organizer,” he said. The TPB is the marketing arm of the DOT. The TPB is supposed to bid out the venue and the event organizer. For the past three years, the annual MFM was held at the SMX Convention Center and was organized by The Philippine Association of Convention/Exhibition Organizers and Suppliers Inc. (Paceos). Other high-ranking government sources also confirmed that the event would push through on those dates.

PESO exchange rates n US 52.0260

By Samuel P. Medenilla

BRILLANTES: “Recall elections will play a more important role if the terms will be prolonged, since it will take a longer time for voters to replace their elected officials.”

@sam_medenilla

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Tourism Undersecretary Benito C. Bengzon Jr. (from left), Tourism Secretary Wanda Corazon T. Teo, Lourdes Plana of Foro de Debate and Iñigo Iribarnegaray of Vocento signed the memorandum of agreement for holding the Madrid Fusión Manila 2018 in a ceremony on September 18, 2017. PHOTO COURTESY D.O.T.

Earlier, TPB COO Cesar Montano failed to return messages of this paper, asking for confirmation of the event’s resurrection. He recently told Inquirer columnist Margaux Salcedo that MFM 2018 wouldn’t push through, ostensibly because the government was seen spending a lot of money “to promote other cultures.” In a signed statement sent to

select media at 5 p.m. on Wednesday, however, Montano finally acknowledged that the event would push through, but left out details regarding the date and venue. “Initially, the [TPB] management have considered the deferment until 2019 due to the nonavailability of participating international chefs and exhibitors. Continued on A2

lec tion exper ts voiced the need to strengthen the mechanism for recall elections alongside moves to regulate political dynasties in the proposed federal charter. Institute for Political and Electoral Reform Executive Director Ramon Casiple said provisions on the recall process of the Commission on Elections (Comelec) should be updated, as the shift to federalism could result in longer terms for lawmakers and local government officials. “The scope and methodology [for recall polls] is considered deficient because it exempts congressmen and senators...it should cover all elected officials,” Casiple told the BusinessM irror. “In the discussions for the proposed constitution, it is either you retain or strengthen the provisions (for the recall polls) to include congressmen and senators. This is important so the electorate could remove those they no longer prefer,” he added. The recall election is a mechanism of the Comelec to allow voters to remove then replace elected local government officials due to loss of confidence before

the end of their term. It currently only covers public officials in the provincial, city, municipal and barangay levels. Casiple said this will address the gaps in the impeachment process, which only applies to the president, vice president, justices of the Supreme Court, members of the constitutional commissions and the Ombudsman.

Legislation woes The political analyst said this is even more crucial amid reports that the ruling political party Partido Demokratiko Pilipino–Lakas ng Bayan (PDP-Laban) in Congress is pushing to set the term of lawmakers in its federal government model to five years, from the current three years for congressmen and six years for senators. Continued on A12

n japan 0.4881 n UK 73.1538 n HK 6.6288 n CHINA 8.2765 n singapore 39.6721 n australia 39.9716 n EU 63.8463 n SAUDI arabia 13.8736

Source: BSP (4 April 2018 )

A2 Thursday, April 5, 2018

BMReports BusinessMirror

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Cimatu unleashes P500-B economic potential of PAs Continued from A1

this year, 15 days upon publication of the new guideline. “This will increase income between P300 billion to P500 billion a year,” Lim added. Currently, she said income generated in the operation of PAs only reach up to P30 million, the ceiling in terms of collection. “With the new guideline, we will be able to charge operators according to the zonal value of the land nearest to the protected area,” she said. To recall, a 2013 study by Resources, Environment and Economics Center for Studies Inc. commissioned by the Department of Environment and Natural Resources, which covers 22 PAs, revealed that income from rental or lease of lands can increase the total annual revenues derived from operation from a measly P16 million to a whopping P306 billion. The study indicates that current rental or lease of lands in PAs, including national parks, marineprotected areas, natural parks and

sanctuary, are covered by Commonwealth Act (CA) 141, or the Public Lands Act, which charges a minimal fee of less than 3 percent of the value of the land to locators doing business within the PAs. The study said charging merely an additional 1 percent of the minimum allowable fees for rent or lease of the land within PAs based on a higher zonal land value than that of an agricultural land under CA 141 will do the trick. The study said with the proper application of the National Integrated Protected Areas System (Nipas) Act, the Integrated Protected Areas Fund (Ipaf), the automatic-retention law and their implementing rules and regulations, the value of lands within PAs are actually higher and can be based on the zonal value of the nearest city or urban center; putting premium to the fact that the lands are special because of their unique features, aesthetic value and that they are natural habitats of threatened and endangered

species that need special care. The BMB, a staff bureau of the DENR, has administrative jurisdiction over PAs under the Nipas Act.PAs are areas set aside for conservation because of their recognized natural, ecological or cultural values. Some PAs in the Philippines are also key biodiversity areas. They may be situated on land and along coastal or marine areas. Every PA is governed by a Protected Area Management Board and is managed by the Office of the Protected Area Superintendent designated by the DENR satellite office that has jurisdiction over the PA. There are currently 240 PAs nationwide, with total size of about 5 million hectares, many of which allow the operation of commercial establishments that pay only a minimal amount for the use of land, as prescribed under the 82-year-old CA 141. The BMB chief said with the increase in revenue from the Sapa

fees and the law retaining 75 percent of the Ipaf, the managers of the PAs will be reinvigorated in coming up with development plans that will ensure the sustainable use of the resources within a PA. “Finally, we thank Secretary C i m at u for sig n i ng t he new guideline,” Lim said, adding that the proposal was first made by her office in 2012. A study was commissioned by the BMB to determine the potential revenue increase that can be obtained by the DENR if the Sapa is updated. She said that the new guideline will encourage serious investors with the capacity to really help protect and conserve the biodiversity that thrives in a specific PA. Some PAs, she noted, have resorts and commercial establishments like restaurants or eatery, souvenir shops or other businesses, but the owners or locators, she said, are not really contributing to the biodiversity protec t ion a nd conser vat ion

TPB resurrects Madrid Fusión Manila 2018 Continued from a1

However, in light of new developments and change in logistical requirements which are advantageous to the government for the International Gastronomy Congress and the Fusión Manila International Gastronomy Expo, the (TPB) is assessing the possibility of staging the fourth edition of Madrid Fusión Manila later this year.” He added: “TPB management continues to recognize the impact of Madrid Fusión Manila in the promotion of our country as a focal point of gastronomic interest worldwide.” Government sources assume TPB’s turnaround could be due to “pressures,” owing to the negative reaction of the public to the announced cancellation. The annual event is the first of its kind in Asia, and has helped put the Philippines on the world gastronomy map. Asian culinary giants like Singapore and Hong Kong have reportedly been envious of the privilege accorded to Manila.

Prior to Montano‘s announced cancellation of the event last weekend, Tourism Secretary Wanda Corazon T. Teo and Undersecretary Benito C. Bengzon Jr. signed an agreement with Foro Debate representatives last September on the holding of the MFM from April 19 to 21. (See, “Native ingredients, traditional techniques ‘star’ in Madrid Fusión Manila 2018,“ in the BusinessMirror, September 19, 2017.) The DOT again announced the MFM 2018 during Madrid Fusión in January, inviting the delegates there to attend the Manila event. During the international gastronomy congress, foreign and local chefs present their take on current food trends and demonstrate dishes that are served in their restaurants. It is well attended, especially by culinary students, food experts, and chefs. Some of the greatest names in the culinary world have graced the Manila event

like Michelin-starred chefs Elena Arzak (Arzak), Yoshihiro Narisawa (Narisawa), Andoni Luis Aduriz (Mugaritz), Joan Roca (El Cellar de Can Roca), Alvin Leung (Bo Innovation), as well as celebrated Filipino-American chefs like Sally Camacho Mueller, Leah Cohen (Pig and Khao) and Chef Romy Dorotan (Purple Yam). The event has also given popular local chefs like J. Gamboa (Cirku lo), Fer nando A racama (Aracama), Robby Goco (Cyma), Myke Sarthou (Agos) and Marg a r i t a F o r e s (C i b o / L u s s o), among others, to explain their culinary philosophies and show off their own cooking skills to the foreign chefs. Along with the gastronomy congress, the event also features reg iona l and specia l lunches highlighting the country‘s native ingredients and popular local restaurants, cosponsored by the DOT and the Department of

Agriculture. There is also trade show featuring local agricultural products, native cuisines, Filipino alcoholic beverages, kitchen gadgets and attire, as well as Spanish food and wine products. Earlier, TPB MICE Officer in Charge Teresita D. Landan said the DOT had transferred the organization of this year‘s MFM to the TPB. “We’re still finalizing details of the event and checking on the availability of the chefs because, of course, without the chefs there would be no event,” she stressed. She underscored that her office had already prepared the terms of reference for the bidding and was ready to send these out. Landan added that event managers like Paceos, and venues like the SMX Convention Center, “are welcome to join the bidding. The Secretary [Teo] just wanted to open the bidding to more participants.” (See “Madrid Fusión Manila 2018 on hold,” in the BusinessMirror, March 15, 2018.)

effort of the government. “Finally, we can weed out businesses that are profiting from PAs but are not serious in taking care of our PAs,” she said. The new guideline, DENR Administrative Order 2018-05 dated March 15, 2018, titled “Addendum to DENR Administrative Order 2017-17 on the Rules and Regulations Governing Special Uses within Protected Areas,” provides the guidelines and principles in determining development fees for access to, and sustainable use, of resources in PAs. Under the new guideline, the DENR shall impose development fees based on the fixed percentage of the zonal value of the land and the improvement in the area. The fees shall be equivalent to 5 percent of the most recent zonal value of the commercial zone in the nearest barangay or municipality where the project area is located, multiplied by the size of the area for development and 1 percent of the value of improve-

ment as premium to the PA. The most recent zonal values prescribed by the Bureau of Internal Revenue for the commercial zone within the nearest barangay or municipality will be used as basis for the computation of Sapa development fees. Under the same guideline, the fees are subject to evaluation every five years. The annual Sapa fee shall be paid upon issuance of the Sapa and annually thereafter within 30 days from the date of issuance. The delinquent locators may be charged with surcharges for late payment equivalent to 8.33 percent monthly, or 100 percent for one year of delay. Also, the new guideline imposes an administrative fee of P5,000 for every Sapa application filed to cover the cost of examining, assessing and processing of the requirements submitted by development or project proponents relative to the application for a special-use agreement in a specific PA.

Grab assures PCC of full cooperation in merger review Continued from A12

The government has yet to determine the valuation of the deal, or the size of the parties involved in the transaction. This would be one of the the bases whether the merger is compliant with the Philippine Competition Act or in violation of the said law. Under the implementing rules and regulations of the law, a transaction is notifiable if the size of the transaction reached P2 billion, or if the size of the party is at P5 billion. Land Transportation Franchising and Regulatory Board Spokesman Aileen B. Lizada earlier told the BusinessMirror that officials of Grab informed her that the transaction was less than the thresholds set by the competition watchdog, and, thus, it does not require the parties to notify the PCC. “During our meeting with Grab yesterday [Monday], they said that they did not meet the P2-billion and P5billion thresholds,” said Lizada, who was present in the meeting among officials of Grab, Uber, the PCC and the LTFRB. Notification to the antitrust body should be made within 30 days after signing of the definitive agreement. If the transaction is notifiable, Grab and Uber are not allowed to consummate the deal without the approval of the competition watchdog. And, since the government decided to launch a motu propio review of the deal, Grab and Uber will be forced to disclose the specific details of the merger. These will then determine whether the transaction is valid or invalid. Among those that will be determined by the antitrust agency are the post-acquisition effects to the market, including price increases, service levels, options and fair entry of new competitors. Already, the mergers and acquisitions office of the regulator indicated that “there are reasonable grounds that the said acquisition may likely substantially lessen, prevent, or restrict competition.” The same office also noted that there may be adverse effects on the riding public and partner-drivers should the deal be allowed to consummate. The commission also found that the transaction will result in a substantial increase in concentration of an already highly

concentrated market in an industry that provides a basic public service. For Gonzales, the review will help both parties “to understand the impact to consumers and driver-partners.” “We are willing to collaborate with the government and regulatory bodies, as always, to ensure that we fairly address the needs of our stakeholders,” he noted. There are two scenarios that could possibly arise from the motu propio review. First is that the antitrust body finds the transaction legal and not anticompetitive. This means that Grab and Uber are allowed to consummate the deal without repercussions. The other scenario is that the PCC finds the deal as anticompetitive, on the basis that the transaction will result in a “substantial lessening of competition.” Hence, the two parties may be stopped by the antitrust body from consummating the deal. However, the two parties may propose remedies to address the competition concer ns raised, but these will be subject to the approval and conditions set by the regulator. The PCC may also issue an order temporarily halting the merger itself. Uber is expected to exit the Philippines on April 8. Despite this possible setback, Grab is determined to migrate all Uber drivers into its system, a provision of the deal signed by the two parties. “Grab will continue to put our utmost support to ensure f u l l t ra nsit ion of accred ited Uber drivers onto our platform,” Gonzales said. Once Grab fully integrates all of U ber’s drivers into its system, it will have a fleet of 59,020 transport network vehicle services—or peers—by April 8. To recall, Grab’s founders announced in Singapore last week that they are acquiring Uber’s Southeast Asia units, namely: the Philippines, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam. Under the deal, Grab is taking all of Uber’s shares in Southeast Asia. In exchange, Uber will receive a 27.5-percent stake in Grab. The deal has already been questioned by the Competition Commission of Singapore, where Grab’s headquarters is located.

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DND chief demands Reds’ surrender, rules out truce

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nstead of requesting for a truce, it would be much better for New People’s Army (NPA) rebels to lay down their arms and surrender peacefully, Defense Secretary Delfin N. Lorenzana said on Tuesday. “We urge the CPP-NPA [Communist Party of the PhilippinesNPA] and their supporters to take the peaceful path toward change so that a just and lasting peace may be achieved, thereby rendering a truce or ceasefire unnecessary,” Lorenzana said, as the possibility of resuming peace negotiations with the CPP-NPA surfaced anew. He earlier said that the NPA’s desire to resume peace talks could be summarized in three points. “First, their fighters and mass base are surrendering in droves. As of last count, more than 4,000 have done so nationwide, with the bulk coming from Eastern Mindanao. More and more are returning to society because of the Enhanced Comprehensive Local Integration Program and their desire to give their families a better future,” the defense chief said. “Second, the President has given notice that any business found paying and helping the NPA would be closed. Rather than serve as milking cows of lazy insurgents, these establishments can cooperate with our authorities and enjoy the protection of our security forces without having to pay anything,” he added. Third, he said, they are about to

be declared by the court as a terrorist organization. “They can no longer hide their sinister plans and actions by using their political ideology as their legal cover,” he added. Lorenzana said the NPA is not really out for genuine peace during negotiations, as they are merely using the respite provided by the talks to strengthen their armed rebellion. “Let us not delude ourselves, because it is not. They will just use the peace talks with the government as their so-called democratic space to gain time and advantage to further their armed rebellion. Once their purpose is accomplished, they would create situations to break off the talks,” he said, adding that they have done this many times in the past, and this is why “we have not had any progress in the last three decades.” Lorenzana said he is flattered by the rebels’ accusation that he is the cause of the peace talks’ stoppage. “This, I consider, is a fulfillment of my patriotic duty to stand and defend the people against their deceptive schemes and despicable acts,” he said. On November 23 last year, President Duterte signed Proclamation 360, which scrapped all peace negotiations and meetings with the rebel group that stemmed out from NPA atrocities and other acts of violence against civilians and security forces while the peace talks were ongoing. PNA

Editor: Vittorio V. Vitug • Thursday, April 5, 2018 A3

Sereno faces fellow magistrates in yet another showdown at SC

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By Joel R. San Juan

@jrsanjuan1573

HIEF Justice Maria Lourdes A. Sereno is ready to stand before her fellow magistrates to argue that it is not within her colleagues’ jurisdiction to decide on the quo warranto petition seeking the nullification of her appointment filed against her by the Office of the Solicitor General (OSG). SERENO

“Yes, the CJ [Chief Justice] will attend the oral arguments to answer questions of justices. But her appearance is without prejudice to our jurisdiction challenge,” said lawyer Jojo Lacanilao, one of Sereno’s spokesmen. On Tuesday the Supreme Court (SC) en banc compelled Sereno to appear on the oral arguments scheduled on April 10 in Baguio City and answer the questions from he fellow justices. The High Tribunal granted Sereno’s motion to conduct an oral argument on the petition, which Solicitor

General Jose C. Calida also lauded. Calida, likewise, hailed the decision of the SC to deny the petition for intervention filed by the Makabayan bloc consisting of party-list lawmakers led by Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna and a group of private individuals led by running protest Fr. Robert Reyes. Sereno had earlier asked the SC to dismiss the OSG’s petition on technical grounds, particularly for lack of jurisdiction and violation of the one-year prescription period for the filing of such petitions. ShearguedthattheSChasnojuris-

diction and authority to remove her from office because the 1987 Constitution provides that she could only be ousted by impeachment in Congress as she is an impeachable official. A quo warranto proceedings is initiated against an individual who usurps, intrudes into or unlawfully holds or exercises a public office; a public official who commits an act that serves as a ground for the forfeiture of the position; or an association that acts as a corporation in the Philippines without being legally incorporated or

without lawful authority to act. Sereno, who was forced to go on indefinite leave upon the prodding of her fellow magistrates, cited Section 2, Article XI, of the 1987 Constitution which provides that impeachable officials, which include all members of the SC, may only be removed from office upon impeachment by the House of Representatives and conviction by the Senate, sitting as an 
impeachment court. Sereno said the petition should be dismissed not only because of the Constitution and jurisprudence so demand “but also because the Chief Justice deserves her day in court before the Senate sitting as an Impeachment Tribunal.” The SC, on the other hand, merely noted the intervention petition filed by Integrated Bar of the Philippines. Calida’s petition against Sereno stemmed from a letter filed by suspended lawyer Eligio Mallari, urging him to initiate a quo warranto proceeding against the top magistrate. On February 21 Mallari, who called Sereno a “de facto chief justice”, asked the OSG to initiate a quo warranto proceeding against her. Calida insisted that a quo warranto proceeding is a “proper remedy to question the validity of Sereno’s appointment.

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A4 Thursday, April 5, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Senator seeks review of PHL’s national electrification agenda By Lenie Lectura

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@llectura

lawmaker is calling for a thorough review of the country’s national electrification program, with the aim of assessing existing strategies in closing the gap in the number of households across the country that are yet to be energized.

“We want to check on the status of electrification of the country to assess and possibly revise the national electrification strategy,” said Sen. Sherwin T. Gatchalian, who filed Senate Resolution 695. At present, the government is employing three methods in pursuing the total electrification agenda. The first is through grid extension by electric cooperatives, which is carried out by the National Electrification Administration. The second is by missionary electrification in off-grid areas, which is being implemented by the National Power Corp.

The last method is through the entry of qualified third parties in remote and unviable areas. The said methods are being subsidized either through government appropriations or pass-on charges to consumers through the universal charge for missionary electrification. From 2016 to 2018 the government allocated P5.45 billion for sitio electrification and P3.97 billion for the supply of electricity in missionary areas. In addition, around P73 billion has been remitted from the universal charge for missionary electrification collection as of

December 2017. Despite all efforts, however, Gatchalian stressed that, as of December 2017, a total of 2,399,108 of unserved households were not connected to the power grid, equivalent to 16 percent of households in the entire country. The majority of this number is found in Mindanao (1,345,116 households), while Luzon and the Visayas share the remaining half (529,952 and 524,040 households, respectively). “It is necessary to review the national electrification project of the government by identifying which communities are economically viable

for grid extension, how much government appropriations are necessary to complete the extension and in how long the construction can be accomplished,” Gatchalian said. The assessment, he added, would be helpful in “achieving total electrification for the welfare of the Filipino people and the development of the nation.” “It is, likewise, important to know which communities are best for offgrid electrification, what technologies are suitable for them and how fast the entry of qualifies third parties in the remote and unviable areas can be facilitated,” Gatchalian said.

It is necessary to review the national electrification project of the government by identifying which communities are economically viable for grid extension, how much government appropriations are necessary to complete the extension, and in how long the construction can be accomplished.”—Gatchalian

WTO chief calls for ‘constructive solutions’ to avert global trade war By Elijah Felice E. Rosales @alyasjah

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he World Trade Organization (WTO) is pleading to its member-countries to talk it over before an actual trade war occurs between the world’s largest economies, which could result to a breakdown of the multilateral trading system. WTO Director General Roberto Azevedo said WTO member-countries should go back as far as 70 years when the multilateral trading body was created with the objective of promoting the recovery of the global economy, as well as provide greater political stability. “This logic, which has prevailed for 70 years, seems to be questioned recently, whether intentionally or not,” he said. “We’ve all seen the headlines in recent days and weeks about the rising trade tensions between a number of major economies. The situation is of real concern, as there are signs that this may only be the beginning of these tensions,” Azevedo added. The WTO chief is referring to the virtual trade war between the United States and China—the world’s top economies—resulting to imposition of left and right barriers to free trade. “An escalation of reciprocal trade restrictive measures would stop this recovery in its tracks, with consequences for jobs and GDP growth that would harm us all,” he said. Azevedo said it is urgent for the clashing economies to “try and avoid this escalation.” He argued that, if

Solar toast

A man sundries assorted fish like round scad (galunggong) and sardines (tamban) after salting along a busy street in Capulong, Tondo, Manila. ROY DOMINGO

the trade war persists, it will be difficult for the world to step back and resolve the situation. “There may still be time, but we need open communication lines and a true disposition to find constructive solutions. This is one of the most urgent challenges before us today,” the WTO chief said. For him, it is important for WTO member-countries to preserve the “spirit of international cooperation, and not confrontation,” for them to revert their full trust on the multilateral trading system. He also said governments must understand the broader economic context of why the WTO was created, so as not to lose its confidence

in the system it embodies. “W hile we need to respond to the immediate threats that we see, we also need to develop a deeper understanding of the longer-term shifts. This will allow for a clearer sense of how we can respond,” Azevedo said. US President Donald J. Trump has recently enforced stiffer tariffs on steel and aluminum products in a move that further emphasized the Washington leader’s protectionist stance. He authorized the imposition of higher tariffs on steel at 25 percent and aluminum at 10 percent in spite of strong opposition from his fellow Republicans and the United States’s trading partners. The move was seen to impact

global trade of steel, as the US is the world’s largest steel importer. In 2016 it accounted for about 8 percent of steel imported globally, with the volume it imported at least 15 percent higher than that of Germany and South Korea, second- and thirdlargest steel importers, respectively. As a countermove, Beijing is not taking Washington’s economic barriers sitting down, and vowed to retaliate if the United States carries on with its plan to impose tariffs on more Chinese goods. The world’s two largest economies drew near to a trade war after China issued a statement that it “doesn’t hope to be in a trade war, but is not afraid of engaging in one.”

Tadeco launches innovative anti-banana pest program

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he Tagum Agricultural Development Co. (Tadeco) has set in motion an innovative and holistic approach in combatting plant infestation that threatens the lucrative banana industry. The privately owned firm based in Panabo City hosted recently a reception at Barangay Magsaysay in Carmen town, Davao del Norte, marking the official launch of Tadeco Agri-Technology Outreach Program geared at helping small-scale banana farmers and growers insure the viability of their projects by eliminating banana diseases, notably the Fusarium wilt. The program involves the early detection and containment of the infestations using the revolutionary Q-PCR, meaning real-time Polymerase Chain Reaction. It called for the setting up of a modern laboratory that offers technological services for the early detection of Fusarium wilt and other banana diseases, as well as trichoderma, or mass production of healthy and disease-free young plants for

distribution to the individual banana farmers and small-scale growers. Trichoderma, the first of such studies accredited by the government’s Bureau of Plant Industry, also offers extensive soil and leaf analyses and appropriate recommendations for the prevention and control of parasitic infestations that could affect the growth of the banana plants. Fusarium wilt, also known as Panama disease, is characterized by soilborne fungal infection that attacks the plant through the roots and the xylem vessels, thereby blocking the flow of water and nutrients toward the leaves. Subsequently, the leaves rot and collapse at the petiole leading to the death of the whole plant. Scientific studies showed that once a banana plantation is infected by Fusarium wilt, “the fungus persists in the soil for an indefinite period of time and cannot be managed using chemical pesticides.”

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WB affirms 4Ps viability in fight against poverty By Cai U. Ordinario

@cuo_bm

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ocial safety nets (SSNs), such as the country’s own Pantawid Pamilyang Pilipino Program (4Ps), could lift millions out of poverty, according to Washington-based lender World Bank. Based on the latest State of the Social Safety Nets 2018 report, the Philippines’s Conditional Cash Transfer (CCT) program coverage increased to 20 percent of the population, from only 5 percent when it started in 2010. Spending on CCTs, as a percentage of the country’s GDP, also increased to 0.5 percent of GDP in 2015, from only 0.1 percent in 2010. However, this was still below the 1.1 percent average spending in the East Asia and the Pacific Region. “Social safety net programs matter if we want to reduce poverty and inequality. Our data show that only countries with substantial coverage and benefit levels make important gains in poverty reduction,” said Michal Rutkowski, World Bank Group Senior Director for Social Protection and Jobs Global Practice. The World Bank measured the monthly benefit level of selected flagship CCTs in purchasing power parity (PPP) terms, which provide comparisons that are based on prices of hundreds of items divided into 155 categories of GDP, allowing it to avoid deficiencies of fluctuating currency exchange rates. On a monthly basis, the country’s 4Ps extends $66 in PPP terms per beneficiary. This is more than Malaysia and Indonesia’s flagship CCTs offer at $48 and $44 per beneficiary. However, in Southeast Asia, the country with the highest CCT benefit was Cambodia with $141 per recipient per month in PPP terms. The country that extends the highest CCT benefit per month is Argentina at $468 in PPP terms, while Zambia’s flagship CCT offers zero in PPP terms. “The absolute benefit level per household also differs significantly across country income groups. In a subsample of 36 countries that have flagship [main] programs

with the household as a beneficiary unit, the benefit amount [PPP in US dollar terms] per household is four times greater in upper middle-income countries than in low-income countries—PPP $106 versus PPP $27, respectively,” the report stated. The World Bank said the 4Ps has the largest coverage of the poor population among CCTs outside of Latin America and the Caribbean. While the average CCT coverage of the poor was only 40 percent, the 4Ps covers 60 percent of the poor in the Philippines. Globally, the World Bank said 2.5 billion people are covered by an SSN, of which 650 million are in the poorest 20 percent. However, the bank said only one out of five persons living in a low-income country is covered by an SSN. Furthermore, countries at high risk of natural disasters often have lower safety net coverage. “In a volatile world, there is strong evidence that social safety net programs can help to build the resilience of poor families and reduce their poverty, making them a vital instrument for the rapid development of countries,” said Annette Dixon, World Bank Group vice president for human development. “In the absence of these safety net programs, poor people facing shocks can fall into deeper poverty, often having to sell their remaining assets or borrow more.” As such, the World Bank said the Philippines, which has a higher safety net coverage and lower humanitarian spending, “indicated a greater readiness and suitability for their safety nets to address the risk of shocks.” This view is supported by Philippine Institute for Development Studies senior research fellow Connie Bayudan-Dacuycuy and research analyst Lora Kryz Baje in their study on making social protection programs more responsive to climate change. The authors said there is a need to unify the country’s social protection, climate-change adaptation and disaster-risk reduction efforts, because climate change and natural disasters can undermine the social protection programs of the government.

House panel okays proposal on mobile-number portability By Catherine Joy L. Maglalang Correspondent

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he House Committee on Information and Communications Technology (ICT) recently approved a measure that seeks to institutionalize mobile phonenumber portability for subscribers. House ICT Committee Chairman Rep. Victor A. Yap of the Second District of Tarlac said the mobilenumber portability bill (MNP) allows phone subscribers to shift from one network to another, as well as switch from postpaid to prepaid subscription or vice versa, without having to change their mobile numbers. “A mobile number represents the identity of a mobile-phone user in the digital world. It contains vital information, as well as their ties with other users. Through long and consistent use, a mobile-phone user acquires property rights over their phone number. By forcing them to surrender this number upon changing networks, they are, in effect, being deprived of a vital commodity in the digital world,” Yap stated. Under the bill, telecommunication companies and the National Telecommunications Commission (NTC) will be tasked to establish a mechanism to implement the MNP. Public telecommunication entities (PTE), which currently pro-

vide services to a subscriber, or a donor provider, must notify the opposite network, or recipient provider, within 24 hours of their client’s desire to shift to the recipient provider’s network. Should a client have any existing financial obligation, they will be given three working days to settle unpaid dues. If a client does not pay these fees after the three-day period, the donor provider will notify the recipient provider of the nonpayment. The bill also states that while a subscriber’s move to a different network is being processed, the donor provider must continue providing them with all mobile telecommunications services. “This bill is revolutionary [since] it…would break the dominance of current telcos in the industry. It can benefit new and small players, spur competition and improve PTEs’ service, which would entice more subscribers,” Yap said. The bill also states that PTEs that violate the law will be fined by the NTC of an amount starting from P100,000 to P300,000 for the first offense, and P400,000 to P600,000 for the second offense. Subsequent offenses, meanwhile, will be fined at an amount that will range from P700,000 to P1 million, as well as cancellation of a PTE’s franchise to operate.

Agriculture/Commodities BusinessMirror

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Council scrambles to beef up rice stock of food agency By Butch Fernandez @butchfBM & Jasper Emmanuel Y. Arcalas @jearcalas

Cabinet Secretary Leoncio B. Evasco Jr., who is also NFAC chairman, said on Wednesday that the rice stockpile of the state-run food agency, at 10,000 metric tons (MT), is equivalent to less than a day of the total national daily rice requirement. The country’s current daily consumption requirement is 32,013 MT, or 640,260 50-kg bags, according to the NFA. “We have to proactively think about it. In fact, I have to meet the council members about this because this is a new development,” Evasco said in a news briefing on Wednesday. “We will be asking the police to [determine] whether it is true or not.” Evasco said he has asked the Commission on Audit (COA) to conduct a special audit of the palay procurement and rice distribution measures undertaken by the current management of the NFA. He added that he has ordered his undersecretaries and assistant secretaries to go to the COA on April 5, to discuss the timeframe and the details of the special audit. Evasco disclosed that the meeting between President Duterte and rice traders scheduled on the same day will push through. Evasco also disclosed that the NFAC has thumbed down the NFA’s management proposed amendments to the terms of reference (TOR) for the importation of 250,000 MT of rice via the government-to-private scheme for

“security reasons.” He said the NFA management wanted to allow winning foreign bidders to enter the grains agency’s warehouses. At present, winning bidders can only deliver the imported rice up to the gate of NFA warehouses, where NFA employees would check whether the delivery is in accordance with the TOR. Evasco disclosed that on April 2, his office received a communication from the NFA management that the latter would conduct a referendum among the members of the NFAC to determine if they agree with the proposed amendment or not. “We do not want to succumb to such position because it has security implications. How will we know the new stocks and old stocks will not be mixed?” he said. “We do not have control over that. That is why the council members rejected this position.” Evasco said the rice imports by the NFA are set to arrive before June, just time for the lean months.

‘Avert rice queues’

Senate President Pro Tempore Ralph G. Recto raised concerns on Wednesday over the Duterte administration’s “factionalized rice team,” warning this could cause a spike in the price of rice he deemed to be a “volatile political commodity.” Recto prodded Duterte to “whip his compartmentalized rice team

@jonlmayuga

M A man arranges what is left of the rice stockpile of the National Food Authority in Quezon City. NONIE REYES

to get their act together because rice is a volatile political commodity in which the slightest perception of shortage could shoot prices up and hurt the poor most.” In a statement, Recto noted a seeming “policy incoherence” that concerned officials should promptly address. “There seems to be policy incoherence. Or at the very least, instead of being on the same page, different parts of the orchestra are playing different music,” the Senate leader said, adding: “The President should grab the baton and be the master conductor.” Recto warned that when the public gets mixed signals on the status of what they eat, this could trigger market disruption. He pointed out, for instance, that if each household buy an additional 10 kilos of rice, this will had a big impact on supply, “especially if the buffer is thin.” The senator added that while “politically, a nation will tolerate all kinds of queues—MRT, passport... rice queues must be avoided at all cost.” He, however, promptly clarified that “at present, there is no need to, because—thanks to our farmers—of the recent record rice harvests.” Still, Recto said that despite a stable national stock, “there is a need to make rice affordable to the poor who cannot afford expensive

Living the sustainable life in an ecovillage

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UERTO PRINCESA CITY—I got wind of the ideal of living in an ecovillage after one of my interviewees, Sarah Queblatin, told me that she spent three years living—on and off—in an ecovillage in Palawan. It was here, Sarah said, that she learned to live in harmony with nature, and did some inner work following the death of her mother in 2013. Living here also gave her time to meditate more on her life’s mission: to learn and work with transitional communities into designing better systems. A few years later, Sarah would live out her life’s mission by establishing Green Releaf Initiative, a non-governmental organization that uses holistic systems like permaculture and ecovillage design to help local communities that are in transition from radical changes like natural disasters or conflict. She is also a consultant and volunteer for the Global Ecovillage Network (GEN); a registered charity, which has consultative status in the United Nations-Economic and Social Council. nnn According to GEN, an ecovillage is a community that is designed by its members based on four dimensions of sustainability—social, culture, ecology and economy— to regenerate social and natural environments. Contrary to my initial impression that living in an ecovillage means living in some remote mountain community far away from modern civilization, an ecovillage can, in fact, exist in a city.

Prime Sarmiento

prime commodities There’s such a thing as “urban” ecovillage, and GEN said this can be achieved if the community members decided to build a city that is more sustainable, collaborative and participatory. There are other types of ecovillages, too. The “traditional” ecovillage is a rural village and community while an “intentional” ecovillage is created by people who come together afresh with a shared purpose or vision. But whether one lives in an urban or traditional ecovillage, what defines an ecovillage is adhering to the concept of social, cultural, ecological and economic sustainability. Social sustainability is about diversity, community building, more participatory governance and sharing common goals and trust. Cultural sustainability honors cultural traditions that supports human dignity, nurtures mindfulness and celebrates creativity. Ecovillagers practice ecological sustainability by producing food, shelter, water and energy that respect the cycles of nature. This can be done by using renewable-energy sources, growing crops organically, adapting green building technologies and waste management.

Agri firms may lose forest-management deals with DENR By Jonathan L. Mayuga

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he National Food Authority Council (NFAC) vowed to prevent the total wipeout of the rice stockpile of the National Food Authority (NFA), which plunged to a four-decade low of 200,000 50-kilogram (kg) bags.

Editor: Jennifer A. Ng • Thursday, April 5, 2018

An economically sustainable ecovillage promotes equitable land ownership, social entrepreneurship, fair trade, local community empowerment and economic justice. nnn The idea of going on a career sabbatical to meditate on one’s life path, do inner work and live with nature intrigued me, so I decided in the end to visit the nearest ecovillage that I could find. Which was why I found myself one Friday afternoon in a jeep of group of yoginis as we drove through the hills of central Palawan to go to Maia Earth Village. Just about an hour away from Puerto Princesa city, this ecovillage was established by the same community behind Bahay K alipay—the renowned yoga, meditation and detox center in Palawan. According to Bahay Kalipay’s web site, Maia Earth Village is founded on the same principles that guide Bahay Kalipay—a return to simplicity and essential living. After exploring Maia Earth Village, I could understand why some people go here to meditate and make art work. Although it’s beside a paved road, the ecovillage is still in a forested area, surrounded by Palawan’s mountains. It’s distraction-free—there’s no cell-phone signal there, much less a Wi-fi connection. There are books, though, but in the end it’s just about you and not about other people. Although, if one really needs to contact someone, you have to go to one of the mud houses on top of a

fancy varieties.” He cited statistics indicating the poorest 30 percent of families spend 70 percent of their income on rice, adding that “for many of them, 22 centavos for every 1 peso they earn are spent to buy rice.” The Senator proposed that in order to “prove that they’re not forgotten, the government should deploy rolling rice stores to poor urban areas to show that there’s enough rice.” Moreover, Recto recommended that Duterte “should regularly meet the ‘Big Four’ in rice policy—the secretaries of Agriculture, and Finance, the cabinet secretary who heads the NFA and the NFA administrator—so that “all the important actors shall speak in one voice, and move towards one direction.” “It is not just the NFA,” he said. “The big picture is production, which is the DA’s responsibility. And all aspects of the industry, where government is involved, whether production, or NFA procurement, needs funding, and the one who must raise the money is the secretary of finance,” Recto added. Citing consumers’ penchant for so-called unli-rice, the senator noted that every Filipino on average eats about 108 kilos of rice a year. “But our population grows by 1.6 million annually,” he says adding that 136 Pinoys already consume 14.7 tons of rice annually.

hill in order to get a connection. The pathway has been cleared, so even a klutz like me can go up this place. One of the mud houses there has an outlet where one can recharge a cell phone or a laptop. But, apart from that, there are no other electrical devices. No ref, no stove as, like Bahay Kalipay, this community lives on a raw-food diet. People come in and out of the several mud houses that were built by the community villagers using clay, sand, rice straw and recycled glass bottles. For food, one has to literally scrounge around for bananas and coconuts. Can I live here, then? Honestly no, as the silence, isolation and living on a mono diet of coconuts would probably drive me nuts. However, I did get some ideas on how to live more sustainably, and this was something that I can incorporate in my city-based lifestyle. But if I can’t live here, can I then stay here, sit for a while and meditate? Yes, of course, which was what we did after marveling the view from a mud house on top of a hill. Errata: In my story, “A permaculture garden is not just about organic farming” published on March 15, I wrote that Green Releaf ’s Sarah Queblatin was talking with the administrators of Mindanao State University in in Iligan to build an ecovillage and permaculture learning site in the university. That should have been MSU-Marawi and not MSU-Iligan. The error is regretted, and I apologize for whatever inconvenience it might have caused.

ore than half of agricultural companies with Integrated Forestry Management Agreements (Ifmas) have failed to establish tree plantations and may eventually lose rights over vast tracts of land, an official of the Department of Environment and Natural Resources (DENR) said. Director Nonito M. Tamayo, the director of the DENR’s Forest Management Bureau (FMB) told the BusinessMirror in a telephone interview that the agency is now collating audit reports and recommendations from various teams that were dispatched to Ifma areas as part of the comprehensive audit of the program. A total of 89 Ifmas are covered by the nationwide audit following the flash flood that resulted in the death of more than two dozen people in Zamboanga del Sur in December last year. One of several land tenurial instruments issued by the DENR to qualified beneficiaries, Ifma is a production-sharing contract entered into by the DENR through the FMB and a qualified applicant for a period of 25 years. The contract may be extended for another 25 years upon expiration. It grants qualified applicants the exclusive right to develop, manage, protect and utilize a specified area of forestland and forest resources consistent with the principle of sustainable development and in accordance with an approved Comprehensive Development and Management Plan (CDMP) and under which both parties, the DENR and the contractor, share in its produce as provided for under DENR Administrative Order 99-53. To recall, Environment Secretary Roy A. Cimatu has ordered a comprehensive review of all existing Ifmas upon the instruction of President Duterte to stop the operation of big agricultural corporations with large forest-management concessions in Zambonga del Norte because of the tragedy. The Dacon Group of Cos. and its subsidiaries, which operate tree plantations in Sibuco, Zamboanga del Norte, is being blamed for the destruction of the forest in the area that caused severe flooding at the height of Typhoon Vinta (international code name Tembin) last December. More than two dozen people died in Sibuco town as a result of the flooding. However, Tamayo, eventually cleared the Dacon Group of liability, saying the flooding was caused by the degradation of the forest outside the Ifma areas. But the incident paved the way for the comprehensive review of the 19-yearold program that is meant to make the country’s forest land productive through the establishment of industrial or agroforestry tree plantations. “Some of the teams have arrived. It’s not yet complete but there are already initial reports. There are gross violations. Some Ifmas have not really commenced operation,” Tamayo said. According to Tamayo, some of the Ifmas were awarded prior to the signing of Executive Order (EO) 23 which banned harvesting of timber from natural and residual forests. Since then, he said, some

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Ifma holders have decided to cease operation. With EO 23 in place, the IFMA holders are supposed to establish tree plantations. But Tamayo said some were reluctant to invest in tree plantation because of peace and order problem. “Some of Ifma holders said they were afraid to invest in tree plantation because of the presence of New People’s Army in the area,” Tamayo, speaking in a mix of English and Filipino said. “More than 50 percent have been found to commit a violation.” According to Tamayo, another violation is the failure of Ifma holders to come up with their CDMP. Tamayo said the failure to operate a tree plantation in the area covered by Ifma is a ground for cancelation of the contract. Tamayo said the DENR is looking at awarding the Ifmas to other qualified applicants under the same program, granting that the applicants are willing and able to invest in tree plantation, precisely to make the lands productive. Another option, he said, is to award some of the areas to qualified farmers under the Community-Based Forest Management (CBFM) program. There is also a proposal to lease the areas to be freed from Ifma contracts to potential investors for power generation, particularly renewable energy. “We will have to collate all data and come up with a recommendation to the DENR secretary for approval,” he said.

A BusinessMirror S

MANILA INTERNATIO

WORLD TRADE CENTER METRO MANILA | WTCMM EAST W

A6 Thursday, April 5, 2018 | www.businessmirror.com.ph

MIXING BUSINESS WITH PLEASURE

AT MIAS 2018: WORK& PLAY

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HE country’s most anticipated auto show is back as the Manila International Auto Show returns for its 14th edition. Never one to disappoint overzealous car lovers and auto industry players, the theme for this year’s MIAS is guaranteed to solicit an equal amount of excitement, if not more. Inspired by two of the most central reasons that motivate people to buy cars, MIAS 2018 will drive up the action to the tune of “Work & Play”. Following the trailblazing success of last year’s show, MIAS 2018 is committed to deliver another explosive display; but this time around, focusing closely on cars and automotive innovations that will live up to the “Work & Play” aspirations of auto enthusiasts. As such, visitors of this year’s MIAS can expect to find an extensive range of vehicles that are either ideal for their various business and career agendas or ones that will help one’s business keep up with the demands of their trade. On the other hand, leisure fiends, adventure-seekers,

and everyone else in between are sure to be impressed with the lineup of cars that are especially designed to elevate the way we travel. Last year, MIAS racked up at least 128,000 visitors as it housed 145 companies and boasted 250 displays throughout its four-day run. In turn, MIAS 2018 expands its venue to 34,850sqm and has noted over 400 car and motorcycle displays. With an increase of 73% of exhibitors and 63% of car and motorcycle displays, it will not come as a surprise that MIAS 2018 transcends its own records with this year’s line-up of presentations. Naturally, all eyes will be on this year’s newest auto releases. From special editions and updates to the latest models, visitors can expect a no holds barred access to the hottest cars of the season. Some vehicles on display will likewise be available for test drives at the Test Drive area

which can be found outside the venue’s main hall. In line with MIAS’ promise to cater to the needs of virtually all types of auto seekers, commercial vehicles and large trucks by the country’s leading custom off-roading authority will be put on display at the Truck Pavilion, located at the north wing side of the show venue. Meanwhile, those who are particularly into car customizations

will be glad to know that this year’s Custom and Classic Car Competition will once again return to feature over a hundred entries of the most eyecatching and creative car set-ups. Truly a haven for car lovers of all kinds, also not to be missed at this year’s MIAS is the Die Cast Display which ultimately features miniature versions of the most beloved car models from various franchises. Additionally, another highly sought-

after component of MIAS is the Swap Meet, a gathering of members who would buy, sell, or trade die cast car models among one another. MIAS is also thrilled to announce the return of the Russ Swift Stunt Show, an annual event highlight which showcases a series of mind-blowing stunt performances by international precision driver and Guinness World Record holder Russ Swift. Swift will be using his trusty

Subaru cars for all his shows. Only growing bigger and bolder each year, so much is in store for car lovers and trade players at MIAS 2018: Work & Play which will run from April 5 to 8, from 10:00am to 10:00pm at the World Trade Center Metro Manila and the Philippine Trade Training Center. The event is organized by Worldbex Services International, the country’s leading events and expositions organizer.

Special Feature

ONAL AUTO SHOW

WING A & B, PHILIPPINE TRADE TRAINING CENTER

www.businessmirror.com.ph | Thursday, April 5, 2018 A7

CAR INDUSTRY EXHIBITION

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HE Manila International Auto Show is the go-to event for motor-enthusiasts to attend and participate. This event revolves around heavy and light machineries, parts and tools, auto components and devices, safety equipment and accessories, vehicle equipment, car care equipment and much more. The show is widely acclaimed for presenting leading brands of auto products and showcasing recent developments in the auto industry in the Automotive, Bicycles, Rickshaw & Spares industries. HIGHLIGHTS nVarious car club displays at the WTC driveway / Truck display nMIAS Custom Classic Car Competition nMiniature die-cast car collection display nTest Drive your favorite car nFormula one display and racing simulator challenge / Russ Swift Stunt Show

MIAS 2018 OFFICIAL SCHEDULE APRIL 5, 2018 (THURSDAY) TIME 10:00 AM - 10:45 AM

ACTIVITY Opening ceremony

LOCATION WTC main lobby

10:00 AM - 6:00 PM

Team Hyundai Philippines Club display

WTC driveway

11:00 AM - 11:15 AM

Ford Launch

Ford Area (WTC main hall)

11:25 AM - 11:40 AM

Subaru Motor Image Launch

11:50 AM - 12:05 PM

Hyundai Launch

12:15 PM - 1:00 PM

Rota Wheels Product Launch

1:30 PM - 1:45 PM

GAZelle Launch

Subaru Area (WTC main hall) Hyundai Area (WTC main hall) Rota Wheels Area (WTC main hall) GAZelle Area (WTC main hall)

1:00 PM - 2:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

2:00 PM - 2:15 PM

BMW Launch

BMW Area (WTC main hall)

2:30 PM - 2:45 PM 3:00 PM - 3:15 PM 3:00 PM - 4:00 PM

Isuzu Area (WTC main hall) Suzuki Area (WTC main hall)

Isuzu Launch Suzuki Launch

1:00 PM - 2:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

3:00 PM - 4:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

5:00 PM - 8:00 PM

2018 DMC World DJ Championship

PTTC Hall B Stage Area

Subaru-Russ Swift Stunt Show

WTC loading bay

3:30 PM - 3:45 PM

Jaguar Land Rover Launch

Jaguar Land Rover Area (WTC main hall)

5:00 PM - 6:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

4:15 PM - 4:30 PM

JAC Motors Passenger Vehicles Launch

JAC Automobiles Area (WTC main hall)

6:30 PM - 9:30 PM

JCI Manila Fourth GMM (by invitation only)

Hidalgo & Amorsolo Room

5:00 PM - 6:00 PM

King of Nations International Drifting Event Presscon (by invitation only)

Amorsolo Function Room

5:00 PM - 6:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

6:30 PM - 9:30 PM

AAP “Driver of the Year” Gala Awards Night

PTTC Hall B Stage Area

APRIL 6, 2018 (FRIDAY) 10:00 AM - 6:00 PM 10:00 AM - 6:00 PM

BMW Car Club of the Philippines Display Subaru Car Club Display

APRIL 7, 2018 (SATURDAY)

5:00 PM - 6:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

6:00 PM - 7:00 PM

A-Plus Paintbabes Show at MIAS 2018

PTTC Hall B Stage Area

8:00 PM - 9:00 PM

MIAS - Petron Custom and Classic Car Competition awarding

PTTC Hall B Stage Area

APRIL 8, 2018 (SUNDAY) 10:00 AM - 6:00 PM

Mustang Car Club and Mustang Enthusiasts Club Display

WTC driveway

Team Hyundai Philippines Club Display

1:00 PM - 2:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

10:00 AM - 6:00 PM

WTC driveway

2:00 PM - 4:00 PM

Bardahl No Smoke Challenge

East Wing A driveway

1:00 PM - 2:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

3:00 PM - 4:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

2:00 PM - 4:00 PM

Seaoil Campaign Launch

Seaoil Area (WTC main hall)

4:00 PM - 5:00 PM

Photo Workshop by Ardieclicks

PTTC Hall B Stage Area

2:00 PM - 4:00 PM

Bardahl No Smoke Challenge

East Wing A driveway

5:00 PM - 6:00 PM

Photo Workshop by Ardieclicks

PTTC Hall B Stage Area

3:00 PM - 4:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

5:00 PM - 6:00 PM

Subaru-Russ Swift Stunt Show

WTC loading bay

A-Plus Paintbabes Show at MIAS 2018 MIAS Best Booth Awarding

PTTC Hall B Stage Area

WTC driveway

4:00 PM - 5:00 PM

Photo Workshop by Ardieclicks

PTTC Hall B Stage Area

6:00 PM - 7:00 PM

WTC driveway

5:00 PM - 6:00 PM

Photo Workshop by Ardieclicks

PTTC Hall B Stage Area

7:30 PM - 8:300 PM

WTC lobby

Banking&Finance BusinessMirror

A8 Thursday, April 5, 2018 • Editor: Jun B. Vallecera

www.businessmirror.com.ph

Regardless of base year, forecast ‘Term-deposit volume says it all’ inflation seen higher in March By Rea Cu

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@ReaCuBM

iscal planners project higher inflation in March averaging 4.1 percent, a rate comparably lower than that forecast for the period by their host and neighbor at the Bangko Sentral ng Pilipinas complex along Roxas Boulevard. A ccord i ng to t he De pa r t ment of Finance (DOF), inflation, using 2012 as base year of the consumer price index (CPI), likely ranged higher in March as consequence of the uptick in the price of the various “sin” products that are now levied a higher excise tax. The DOF acknowledged had the CPI been based on 2006 prices as the base year, the inflation rate in March would have averaged even higher at 5 percent.

The 4.1-percent forecast for the month is also higher compared to inflation averaging only 3.9 percent in February. “ T he yea r - on-yea r c h a nge is dominated by sin products which rose by 22.45 percent and food and nonalcoholic beverages, which rose by 5.25 percent. [The] sin products and nonalcoholic beverages were affected by temporary tax issues, while fish appears to be still affected by rough seas. Vegetable prices were

Tokyo surprises: Antenna shops Part Two

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n last week’s column, I wrote about the surprises from my four-day educational visit organized by the Tokyo Convention and Visitors Bureau (TCVB) for our association, Adfiap. This time, I wish to introduce to you the “antenna shops” of Tokyo. Yes, you heard me right: Antenna shops. Not those selling gadgets that enhance radio tuning or TV viewing. I am referring to shops that sell goods and services. To be honest, this was the first time I heard about these shops during my Tokyo visit although I learned they have been around since the 1990s. In an article originally written in Japanese by Harada Kazuyoshi of Nippon.com and published on March 26, 2015, the Japanese term “antenna shop” (antenna shoppu) referred to outlets set up by companies to display and sell their products with the principal aim of putting out “feelers” (hence the derivative word, antenna) to assess consumer demand. However, the term is now largely associated with shops promoting regional goods. These shops display and sell local items that are generally unavailable in metropolitan supermarkets, and some even include dine-in facilities. They also function as publicity centers, offering information about the sponsoring region for potential visitors, and can serve as meeting places for natives of the region living in the big city. In essence, antenna shops are a unique way of enjoying Tokyo and, at the same time, learning about the charm of Japan’s regions without ever leaving the city. As Japan’s prefectures and municipalities seek to raise their profile and boost sales of local products, the growing number of regionally sponsored antenna shops are playing an increasingly important role. According to the Japan Center for Regional Development (JCRD), most of the antenna shops in Tokyo have 100,000 to 500,000 visitors a year. In a survey, prefectures and

Association World Octavio Peralta municipalities have many reasons for setting up an antenna shop, and the top 5 are to: (1) generate publicity for local products, (2) generate publicity for the prefecture/city, (3) provide tourist information and boost tourism, (4) share information about the prefecture/city with media and others, and (5) increase sales of local products. For the past several years, JCRD has been holding tours of antenna shops and seminars for foreigners who wish to pursue similar initiatives in their own countries. The participants have included representatives from Africa like Kenya, Nigeria and Uganda, as well as Asia including Malaysia, Pakistan and Fiji. More recently, representatives from the United States, Canada, Australia, the Philippines and South Korea have also taken part, according to JCRD. I am sharing this Japanese antenna shop concept as this could be adopted by local government units to promote their respective areas, spearheaded by trade associations and cooperatives to promote their products and services, taken up by our tourism authorities as a way to promote our regions as a tourist destination, and serve as a vehicle to encourage Metro Manila residents to relocate (or return home) to some of the country’s other growth regions. I hope your antennas are clearly receiving these signals. The column contributor, Octavio Peralta, is concurrently the secretarygeneral of the Association of Development Financing Institutions in Asia and the Pacific (Adfiap) and CEO and founder of the Philippine Council of Associations and Association Executives (PCAAE). PCAAE enjoys the support of Adfiap, the Tourism Promotions Board and the Philippine International Convention Center. E-mail-obp@adfiap.org

affected by unfavorable weather,” the DOF said. With 2012 as base year, the price of alcoholic beverages and tobacco may average 22.45 percent in March, higher than the actual inf lation rate of 16.85 percent in February and 7.48 percent in the same month last year. The price of food and nonalcoholic beverages was seen averaging 5.25 percent for the month, higher than the 4.79 percent recorded in February, and the 2.88 percent in March last year. The DOF particularly said tobacco products remain the top drivers for the widening inflation in March. “Sin products are significantly driving the inf lationary pressure. Of the 4.1-percent forecast inf lation rate for March, sin products account for as much as 0.5 percentage point, much higher than their contribution of only 0.16 percentage point in the same month last year,” the DOF added. The price of clothing and footwear was seen at 2.06 percent, a lso higher compared to the previous month’s 2.02 percent, but lower than the 2.89 percent recorded in March 2017. Housing, utilities and fuels were seen inching up to 2.72 percent for the month, higher than the February rate of 2.64 percent, but lower than the previous year’s 3.70 percent. The price of furnishings and household equipment may settle at 2.24 percent, lower than the 2.51 percent recorded in

February and the 2.56 percent in March 2017. Health may settle at 2.12 percent lower than the 2.15 percent in the previous month, and the 3.32 percent in March last year. The price of transportation was seen to reach 4.54 percent, lower than the 5.76 percent in February and the 5.72 percent in March last year. Communication was seen to settle at 0.21 percent, from 0.20 percent the previous month, and 0.50 percent in March last year. Recreation and culture was seen to hit 1.44 percent, higher than the 1.37 percent in February, and the 1.01 percent last year. Education may settle at 2.31 percent inching up from 2.29 percent in the previous month, but lower than the 3.06 percent last year. Rest au ra nts a nd m iscel l aneous services were seen to hit 2.75 percent from 2.49 percent in February, and the 1.49 percent in March last year. Meralco’s rate per kilowatthour may rise to P10.32 for the month, from P9.67 year-on-year, and P9.47 in February this year. Its generation charge per kWh may also rise to P5.30 from the P4.90 YoY and P4.65 in the previous month. For March, diesel prices in the National Capital Region may settle at P41.15 per liter, from P31.01 per liter recorded YoY, while gasoline prices may increase to P52.75 per liter, from P45.71 YoY.

Deutsche Bank should scale back US business

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eutsche Bank AG needs to scale back its US operations and focus on serving European companies to unlock capital and improve returns, according to analysts at JPMorgan Chase & Co. The US business “consumes material balance sheet resources” while suffering from “persistently low profitability,” Kian Abouhossein and Amit Ranjan wrote in a note to clients on Wednesday. The alternative would be to do nothing and hope for a better environment, which would leave the bank at risk of a “confidence issue” should markets go the other way, they said. It’s “time to change strategic direction,” the analysts wrote. The US business is “in need of shrinkage.” Deutsche Bank is taking a close look at the US operations as part of a fresh review of its trading businesses, Bloomberg News reported last week. CEO John Cryan is examining activities where Europe’s largest investment bank is trailing competitors to determine if it should try to win back market share or exit, said people familiar with the review, dubbed Project Colombo. The Frankfurt lender’s US business consumes at least €10 billion ($12.3 billion), or about 20 percent, of Deutsche Bank’s common equity, the analysts wrote. Shrinking the US equities and corporate clients units would be ke y to i nc rea si ng prof it ability and freeing up capital, they said. Deutsche Bank probably lost market share to big US investment banks in the first three months of the year, marking a fourth consecutive quarterly decline, the analysts wrote.

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ustained demand for the term-deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) on Wednesday allowed the monetary authorities to keep the volume of its offering steady at next week ’s auction. Data show the BSP keeping the volume of its offered TDFs steady on all three tenors for next week on the basis of the interest the banks displayed for the facility, particularly on the 7- and 28day tenors. In particular, the 7-day TDF, which had the largest volume offer, was oversubscribed anew on Wednesday. Bids aggregated P65.133 billion during the week, far more than the P50 billion sought for sale by the BSP this week. The same was true of the 28day facility that was met by tenders totaling P29.24 billion versus only P20 billion offered by the BSP during the week. For the 14-day facility, tenders only covered 74.8 percent of the P40 billion offered this week, totaling P29.935 billion on Wednesday.

BSP officials earlier said they could subtly change monetary policy direction without changing the main policy rate by allowing the market-determined TDF rates to rise of fall. The BSP controls this by altering auction volumes. The volume on all tenors proved steady this week, however, as the BSP kept the 7-day TDF at P50 billion. The P40 billion offer for the 14-day TDF and P20 billion for the 28-day TDF rounded the aggregate to P110 billion at next week’s auction. TDF rates, however, were seen rising with the exception of the 28-day TDF. For the 7-day TDF, the rate hit 3.2657 percent this week, up from the 3.1651 percent in the previous week. This was also true for the 14day TDF, which fetched a rate of 3.3575 percent from previous week’s 3.2788 percent. For the 28 -day TDF, howe ver, t he rate went sl ight ly down to 3.4229 percent from t he pre v iou s we e k ’s 3.4232 percent. Bianca Cuaresma

Tax-evasion incidence keeps piling up–Dulay

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he Bureau of Internal Revenue (BIR) reported 147 cases filed under the Run After Tax Evaders (RATE) program that only strengthened its commitment to ensure the correct tax goes to government coffers and that Filipinos actually pay their fair share of taxes. On Wednesday the BIR reported it filed before the Department of Justice (DOJ) its 147th complaint under the RATE program since President Duterte assumed office and installed BIR Commissioner Caesar R. Dulay as agency head. The BIR filed a criminal complaint against Lemuel Sibuma Consolacion for the willful attempt to evade or defeat tax and for the deliberate failure to pay tax for taxable years 2015 and 2016, in violation of Sections 254 and 255 of the National Internal Revenue Code of 1997. Consolacion is the proprietor of North Med Enterprises with business address at the Centro Building, Lingsat, San Fernando City, La Union, and is engaged in the wholesale or retail of pharmaceutical supplies and products. According to the BIR, Consolacion filed his fourth quarter value-added tax (VAT) return for taxable year 2015 using the electronic Filing and Payment System (eFPS). Upon verification that he filed his fourth-quarter VAT return for taxable year 2015 using the eFPS with no corresponding payment, a collection notice was served requiring him to pay tax amounting to P280,802. A collection notice was like-

wise served requiring him to pay P492,572 and P1.372 million after it was determined that he filed his first-quarter and fourthquarter VAT returns for taxable year 2016 using the eFPS with no corresponding payment. Final notices and demandsbefore-suit were sent to Consolacion, giving him the opportunity to settle his tax liabilities that he eventually failed to do. Under existing rules and regulations, eFPS payments shall be made within the day. The return was electronically filed subject to the prov isions on insta llment payment in the Tax Code following the “pay-as-you-file” principle. As a consequence of his acts and omissions, he is liable to pay an estimated aggregate deficiency VAT liability of P3.469,678 million, inclusive of increments broken down into: 2016 totaling P3.050 million; and 2015 amounting to P418,957. Under the RATE program, the BIR investigates criminal violation of the National Internal Revenue Code of 1997 and assist in the prosecution of criminal cases that will enhance voluntary compliance and promote public confidence in the tax system, among others. Based on data from the BIR, 327 cases were filed under the RATE program in 2014 with estimated total tax liability amounting to P64.98 billion. Broken down, cases pending at the DOJ reached 283; cases pending in different courts totaled 39; and five cases dismissed with finality.

The outlook for revenue “does not look encouraging” and it’s not clear how the bank would win back market share, especially in equities, they said. Cryan last year named former finance chief Marcus Schenck to help oversee the corporate and investment bank, while the CEO himself assumed oversight for the US operations. The bank recently hired a former Goldman Sachs executive, Peter Selman, in a bid to revive the equities business. The future of the investment bank, the lender’s largest unit by revenue, has been a central point of contention in Cryan’s restructuring efforts since he took over in mid-2015. Investors’ frustration with the lack of growth prompted Chairman Paul Achleitner to search for a successor to the CEO, people familiar said last week. Achleitner himself has come under fire for having failed to forge a recover y a f ter going through three CEOs in six years. Deutsche Bank on Wednesday proposed former Merrill Lynch chief John Thain to its supervisory board as part of a wider reshuffle of By Justice S J Ranada Jr. that body. The 62-year-old MURDER–abuse of superior strength is among four candidates who would There is abuse of superior strength where the accused was armed with a take over from exknife, a deadly weapon, while the victim was then burdened by a child and isting board memhad no means to defend herself. Clearly the accused abused his superiority bers when their afforded him by his sex, height and build and a weapon, as the accused was terms end this year. of heavy build and stood at 5’10’’ while the victim was only 4’11.’’ T h e a p p o i nt me nt s a re s u b ject to approval at People v. Mat-an GR 215720 Deutsche Bank ’s annua l share21 Feb. 2018 Martires, J holder meeting next month.

Case clippings

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Editor: Dennis D. Estopace • Thursday, April 5, 2018 A9

Marcos, Robredo camps debate ‘tampered votes’

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By Joel R. San Juan

@jrsanjuan1573

HE discovery of several unused or excess ballots in a town in Camarines Sur with allegedly pre-shaded votes caused camps of Vice President Maria Leonor G. Robredo and former Sen. Ferdinand R. Marcos Jr. to trade barbs. The Marcos camp claimed the votes could be another proof of

elections fraud. The group issued the statement after receiving

unconfirmed information about the preshaded ballots. The ballots were discovered during the third day of the recount of votes in the vice presidential race in the 2016 elections between Marcos and Robredo. Aside from this, people familiar with the matter said revisors also found several ballots that were cut into half—which means they were unused or excess ballots—but were found in the valid ballots with the Robredo votes. However, Robredo’s camp questioned the information about preshaded ballot. “These could be rejected ballots

that were mistakenly placed inside the envelope for unused ballots,” said Bernadette Sardillo, one of the lawyers of the vice president. “Based on experience—due to the conditions inside the precincts— mistakes happen.” Sardillo also questioned the leakage of such information from the Supreme Court sitting as Presidential Electoral Tribunal (PET). “We find the report ridiculous since, at that time, only one ballot box was opened, and this report surfaced immediately” she said. “How can this be reported that quick if no telephones or any mode of outside

communication is allowed inside the revision area? ” The lawyer believes this development could be another attempt of the camp of Marcos “to throw shade at the recount process and further confuse the public.” It can be recalled that on the first two days of the recount, Marcos camp claimed that six wet ba l lot boxes were found from Bato and Baao towns in Camarines Sur. Marcos also questioned the missing audit logs from clustered precincts in Bato town discovered by revisors upon opening of the ballot boxes.

He revealed that 38 out of 40 ballot boxes from the town in Camarines Sur—one of the three pilot provinces he identified for the recount—did not have audit logs. The audit logs, according to Marcos, contain the record of the times the precinct opened, closed and the time the votes were cast. This was followed by the resignation of four head from their duties only a day after the start on the recount. The PET has not issued any statement with regard to the claim of Marcom camp as the proceedings is supposed to be confidential.

World’s first national-emergency operations center opens in Clark E-trike to be pilot tested in Iloilo City

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HE world’s first nationalemergency operations center (Neoc) was launched on Wednesday at the Clark Freeport by the Philippine Disaster Resilience Foundation Inc. (PDRF). On hand during the launching were Rep. Gloria Macapagal-Arroyo of the Second District of Pampanga, PLDT Inc. CEO Manuel V. Pangilinan, Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala, Clark Development Corp. President Noel F. Manankil, PDRF Resilience Officer Guillermo M. Luz and PDRF President Rene S. Meily. Cardinal Luis Antonio G. Tagle is named as PDRF honorary chairman, while Pangilinan and Ayala are designated cochairmen. Manankil lauded the launching of the national Neoc that he said is a “self-sufficient operations hub geared toward training for disaster preparedness and the coordination of relief and response during major disasters.” According to the PDRF, Clark was chosen for the facility, as it is one of the designated recovery sites identified by the government in the national contingency plan and an ideal place due to its proximity to the Clark International Airport and Port of Subic Bay. Pangilinan said disaster management in the country should be a collaborative effort between the government and the private sector. He also cited the PDRF’s effort for creating platforms in establishing a disaster-resilient Philippines. “The PDRF’s formation is premised on the conviction that disaster management is not solely up to the government,” Pangilinan said. “The despair of one must touch us all and everyone must help.” The PDRF was established in

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LOILO CITY—A company engaged in electric-vehicle industry has expressed its interest to pilot test its electric tricycle, or e-trike, in Iloilo City. The Bemac Electric Transportation Philippines Inc. said it will provide a unit of 68VM e-trike for a month to “measure its feasibility and viability as an environment friendly and sustainable transportation in the city.” The unit has a passenger capacity of seven including its driver. It has a maximum speed of 50 kilometers per hour. There is no definite date yet to start the test due to the absence of a Memorandum of Understanding (MOU). The Sangguniang Panlungsod deferred giving authority to City Mayor Jose Espinosa III to sign the MOU that Bemac proposed, as they still have to consult the Land Transportation Office (LTO) regarding the

World Bank study seen to bare real score on jobs in Mindanao This photo courtesy of the Clark Development Corp. (CDC) shows (seated, first row, from left) CDC President and CEO Noel F. Manankil, Aboitiz Equity Ventures Inc. President and CEO Erramon Aboitiz, PLDT Inc. CEO Manuel V. Pangilinan, former President and Rep. Gloria Macapagal-Arroyo of the Second District of Pampanga, Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala, Lorenzo Shipping Corp. President Doris Teresa Magsaysay-Ho and National Disaster Risk Reduction and Management Council Undersecretary Ricardo B. Jalad during the inaugural program of the emergency operations center facility in Clark.

2009 as a public-private sector partnership as a response to the devastation caused by Typhoon Ondoy. It ser ves as a critical link among government agencies, civil society groups, international and local government units for disaster preparedness,

and relief and recovery. The Neoc is seen to complement government efforts and highlight private sector initiatives in all aspects of response and early recovery as it will provide alerts and updates to the PDRF network during emergency situations. It

also features a command center, which harnesses data from local and international sources to monitor earthquakes, tropical cyclones, volcanic eruptions and pandemics. It also maps data on public infrastructure to help protect them from hazards.

Clark airport breaks records anew, fetes honest workers

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LARK INTERNATIONAL AIRPORT—This airport tallied more than 215,000 passengers in the month of March, while over 8,000 travelers passed through Clark on April 2, which broke the previous records anew. Alexander Cauguiran, Clark International Airport Corp. (CIAC) officer in charge, said a total of 215,040 passengers from March 1 to 31 were recorded here, while the highest number of travelers served in just a day was on April 2 at 8,322 individuals. “These numbers are the highest, so far, in the history of CIAC since 1995,” Cauguiran said. The average daily passenger volume at this airport is 7,000 and served by a total of 481 weekly flights, 158 of which are interna-

classification and the registration of the e-trike. Meantime, Republic Act 8794 or the Motor Vehicle User’s Charge (MVUC) provides that any new model of motor vehicle in the market must be properly classified prior its registration with the LTO, according to a document furnished to Councilor Eduardo Peñaredondo on Wednesday. E-trike, which is a motor vehicle powered by electrical energy from rechargeable batteries, shall be classified as motorcycle-tricycle. The law also provides that its operation shall be limited within or along barangay roads only. It can only pass the main thoroughfares, highways or national road for purposes of crossing only when the barangay road is divided by a highway, main thoroughfares, or the national road. Bemac is a domestic subsidiary of Uzushio Electric Co. Ltd., a pioneer in Japanese vehicle industry. PNA

tional flights, while the remaining 323 are domestic routes. “From January 1 to March 31 this year alone, there were a total of 600,811 passengers that passed through Clark airport,” the CIAC chief added. “At this rate, and with the full support of the Duterte administration, we will be able to break the 2017 record of 1.5 million passengers and will probably reach the 2-million mark this year.” Airlines operating flights here include Asiana Airlines, Cathay Dragon, Cebu Pacific, Emirates, Jetstar Asia, Jinair, Philippines AirAsia, Philippine Airlines, Qatar Airways and Scoot, while chartered flights are operated by AirSwift and Alphaland Aviation. “There is definitely a surge at Clark airport in terms of the

number of flights, destinations and passenger volume, along with the improvements of its facilities, all largely possible under the leadership of President Duterte,” Caugurian said. Meanwhile, Transportation Secretary Arthur P. Tugade lauded the management and staff of the CIAC for ensuring the convenience and safety of the commuting public, particularly during the recent observance of the Holy Week. Tugade also extended his “deepest and sincerest gratitude” to CIAC personnel who, he said, “unselfishly sacrificed their off days to give and assure the riding public the safety, security and comfort in their Holy Week journeys and travels.” At the same time, five CIAC personnel were commended for

“honesty and exemplary service in the performance of their duties [who] gave a breath of fresh air in the light of social-media posts that have put Clark airport in a bad light in the past several months,” Cauguiran said. CIAC Security Officers Christopher Ferry and Larry Magcalas were cited for promptly returning on March 10 the belongings left behind by a passenger and politely turning down a reward. In February outsourced personnel Eduardo Labarda returned a passenger’s lost mobile phone, and Eranie Decena surrendered a Rolex watch. Last December Parking Attendant John Pamintuan assisted a troubled balikbayan beyond his duty at the CIAC Park and Fly facility. Ashley Manabat

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AVAO CIT Y—T he government said its Philippines Mindanao Jobs Report (MJR) to be presented here on Thursday would give a clearer picture of the development path of Mindanao in terms of job generation and the possible support the sectors and areas needed to yield more productivity. The Mindanao Development Authority (MinDA) said in a statement that the consolidated report “culminates the series of consultation and validation rounds conducted by the World Bank and MinDA since 2015.” The report was done in partnership with the Philippine Business for Social Progress (PBSP), according to the MinDA. The consultation and validation rounds were conducted among different sectors, including government, business, labor, academe, civil society groups and farmer associations, it added. The MinDA said the report “outlines a number of recommendations which reform coalitions can consider to put Mindanao on a path of inclusive growth and address the jobs challenge.” “This tells a new Mindanao story through the lens of jobs generation, which makes it as a living document of the ways forward to unlock the Mindanao’s potentials through raising farm productivity, improving logistics and connectivity, and developing key ports and other gateways,” MinDA Undersecretary Janet M. Lopoz said. Lopoz said majority of the strategies identified in the report were also

being carried out by MinDA “through its flagship programs, including the Mindanao Development Corridors and the establishment of Mindanao Agri-Economic Ecozones and the Tawi-tawi Freeport Zone.” “We believe that the MJR findings could strongly boost our argument and proposition why Mindanao needs to be given a higher and equitable budget that it rightfully deserves,” she said. The MinDA said Budget Secretary Benjamin E. Diokno was slated “to cap the [presentation] with updates on national government’s programs for financing Mindanao’s growth and development.” The presentation program would include a signing of memorandum of understanding between the MinDA and PBSP, “signifying its renewed and strengthened partnership for pursuing inclusive business in Mindanao.” Lopoz said the MJR was first conceptualized after the MinDA forged a partnership with the PBSP for the Mindanao “Inclusive Agribusiness Framework.” “As part of inclusive business strategy, we proposed a partnership with the World Bank for the conduct of the MJR Study that will assess job-generation factors in the islandregion and recommend strategic actions to create more and better jobs for Mindanawons,” Lopoz said. The MinDA, PBSP, Mindanao Coalition of Development NGO Networks and the Xavier UniversityKnowledge for Development Community served as the project team for the report, the MinDA said. Manuel T. Cayon

Aklan officials: Ready for probe on alleged irregularities in Boracay

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ORACAY Island, Malay Aklan—Both Aklan Gov. Florencio Miraflores and Malay Mayor Ciceron Cawaling expressed readiness to face any court charges for alleged ir-

regularities in this resort island. Earlier, the Department of the Interior and Local Government named Miraflores and Cawaling among others to be possibly charged of graft on April 14.

They allegedly misdeclared the earnings generated from the environmental collection fee charges that some say amount to P90 million. Last year around 2 million tourists

visited this resort island. At P75 per tourist, the total collection fee could hit P150 million. Miraflores expressed confidence he would not be implicated in the charges

as the head of the local government in charge of collecting the environmental fee. Cawaling said in a separate interview said he would act to clear his name.

“I should face the charges since there is nothing I can do for now,” he said. “What I hope is to clear my name on this mess before my term ends.” Jun N. Aguirre

A10 Thursday, April 5, 2018 • Editor: Angel R. Calso

Opinion

BusinessMirror

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editorial

How the BIR can regain public trust

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or years, the Bureau of Internal Revenue (BIR) has to live with its reputation as one of the most corrupt government agencies. Such “notoriety” made it difficult for taxpayers to trust the agency, and even harder to pay the correct amount of taxes. That’s how corruption got embedded in a system where both tax collectors and taxpayers benefit, while the supposed beneficiaries of the taxes the BIR collects suffer, especially the poor and marginalized Filipinos. April is tax time and, needless to say, taxpayers are required to file and pay the correct amount of taxes. Yes, we despise the BIR and all the corruption in this agency, but its reputation does not give us an excuse not to pay our taxes correctly. Not paying the right taxes is a crime. To put things in perspective at the BIR, the BusinessMirror published on Tuesday a front-page story—BIR: Understaffed but still reaching for the sky—showing the challenges facing BIR Commissioner Caesar R. Dulay in his desire to transform the agency into a center of excellence. This includes BIR’s dilemma: How to attract honest, top-of-the-line professionals given its salary scale. Without offering competitive compensation, the BIR can’t attract the professionals it wants to hire. For example, BIR examiners are currently earning a net income of P14,000 a month, which is not at all competitive if it wants to hire the best and the brightest. We have heard it before: “If you pay peanuts, you get monkeys.” Finance Secretary Carlos G. Dominguez III has said he favors giving higher salaries to BIR employees to enable the agency to attract top-ofthe-line professionals. But there’s a hitch: By exempting BIR employees from the salary standardization law, the finance chief said this should come with the lifting of security of tenure among its employees. The BIR currently has only 9,292 employees, way below the number of required personnel—or a total of 21,634 employees. Here’s the good news: No less than President Duterte congratulated the agency for its tax-collection performance in January 2018. The BIR collected P175.6 billion in January, or 19-percent growth year-on-year. The growth, however, was mainly driven by the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect on January 1, 2018. The BIR chief remains optimistic that despite the manpower shortage, the agency will meet collection goals. For 2018 the BIR has set a revenuecollection target of P2.039 trillion. To hit its target revenue collections this year, the bureau took into account nine initiatives out of its 17 priority programs. These include: updating the schedule for zonal values, intensified audit investigations, enhanced implementation of the arrears management program in regional offices, broadening of taxpayers’ base, review all pending cases under its Run After Tax Evaders program, strengthening sanctions under its Oplan Kandado program, cleaning up its Taxpayer Account Management Program, improving excise-tax collections from its Large Taxpayers Service, and developing electronic sales reporting, invoicing and receipting in the bureau. Of course, the BIR can’t reach its collection goal if Filipino taxpayers do not pay correct taxes. For this, we have to thank the Duterte administration’s war against corruption, which clearly had positive effects in government agencies, the BIR included. The President has assured taxpayers the government would use the taxes we pay to fund the priority programs under his administration, such as education, health, housing and infrastructure. We hope the BIR continues to rise to the challenge. That’s how it can regain the trust and confidence of the people in our tax system.

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OUTSIDE THE BOX

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o be honest, I do not have much of a problem with what we call “fake news”; that is incorrect or false information that is presented as fact. Granted, there are some people that really do need protection from this sort of thing. However, it is like a sign I once saw at a beach near Pattaya, Thailand: “No swimming in this area if you can’t swim”. If you cannot discern that which even at first glance seems a little “off,” or you cannot find a way to double check what you read on the Internet, it might be best to stick with watching Japanese anime on YouTube. Much more dangerous—and I do not use that word lightly—is what I would label as “shallow news.” I define this as analysis that is factually correct in every way, but does not dig deep enough to present a complete picture. In an attempt to make a complicated situation simpler to understand, too much is left out of the discussion, and the conclusions are distorted and often wrong.

Because of this, the public does not have the proper information to avoid being caught up in false assumptions and expectations. The latest example is the “trade war” between the United States and China. Many articles have appeared in local newspapers and some knowledgeable commentators have written about the situation. But this “trade war” is a complex subject and cannot be adequately presented in 1,000 words. The broad picture ignores the “devil in the details” but, without the details, the conclusions are incomplete. We can understand, for exam-

ple, that China is going to place a 25-percent duty on pork products imported from the US. It is easier to understand that rather than a complicated tariff scheme on recycled aluminum. Pork production in the United States is a $28=billion business, but that is nothing compared to a $17-trillion economy—unless you are a pig farmer. The US exports $1.1 billion worth of pork to China, or 3.9 percent of the business. Important, but not exactly critical. And China imports 1 percent of its total pork consumption from the United States. However, the largest pork producer in the US is Smithfield Foods, which also exports part of its production to China. But Smithfield Foods is a wholly owned subsidiary of the WH Group, a Chinese company listed on the Hong Kong stock exchange. Smithfield makes a point on their web site of saying “No Smithfield products come from anima ls raised, processed or packaged in China.” So this “trade war” with the United States immediately affects an “American” company totally owned by a Chinese company. The US has imposed a 25-percent tariff on imported steel, and China is the world’s largest steel

China embarking on a higher road in its ‘marketization’ program Dr. Rene E. Ofreneo

LABOREM EXERCENS

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos Dennis D. Estopace

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Trade war! Trade war!

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Continued from A1

ronically, in the mid-1970s, when Deng Xiaoping embraced the policy of “marketization”, China’s per-capita GDP then was equal to only a fraction of that of the Philippines’s. At about the same time, the Philippines was negotiating with the International Monetary Fund (IMF)-World Bank for “structural adjustment loans” to finance “economic reforms” in support of full-market liberalization, dubbed as the “structural adjustment program,” or SAP. The marketization outcomes for the two countries are starkly different. After its successful Factory Asia program, China is now trying to assert global leadership in new frontiers of the global economy such as robotics manufacture, clean-energy generation and bio life sciences. In contrast, the Philippines, after decades of industrial stagnation and agricultural decline, is now trying to

catch up with its Asian neighbors through the Department of Trade and Industry’s “Manufacturing Resurgence” program. Are these contrasting outcomes not due to the differing approaches to marketization by the two countries? The SAP program of the Philippines is better known today as the “Washington Consensus,” which essentially calls for the full liberalization of the trade and in-

vestment regimes of a country, deregulation of various areas of the economy and privatization of government assets, services and infrastructures. The SAP/ Washington Consensus also demands tight fiscal discipline and respect for private-property rights. As to the China marketization model, a lot has been written as to how China pursued marketization differently in a non-neoliberal manner. This has prompted many economists to coin and embrace the term “Beijing Consensus”. What are the distinguishing features of the China model as practiced in the last four decades? First, China adopted a gradualist approach in the opening up of its economy. This helped China cushion the masses from any social and economic dislocations arising from any industrial restructuring. In contrast, the former Soviet Union, which embraced the “shock therapy” recipe or all-out liberalization of the economy upon the advice of the IMF, suffered a cataclysmic decline in industrial and agricultural output under the “reform-minded ” administrations

producer as the United States is the largest steel importer. But 30 percent of US imported steel comes from Canada (16.7 percent) and Brazil (13.2 percent). Only 2.9 percent of United States imported steel comes from China. So China is putting additional tariffs on $3 billion worth of goods from the US, noting that China imports $150 billion from the United States or on 2 percent of the total. The US is increasing tariffs on $50 billion worth of goods out of $505 billion of Chinese imports, or on 10 percent of the total. As to the potential effect of all this on the Philippines, the best the experts can come up with is, “What if the trade war spreads?” What if the United States stops importing computers from China with Philippine-made chips inside? I think we heard all this unsubstantiated “shallow news” before. Remember when the US was going to close down all the Philippine call centers? E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets. com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

of Mikhail Gorbachev and Boris Yeltsin. Proof of the gradualist approach is the way China got accepted in the World Trade Organization. It took China 15 long years before it was accepted in 2001, partly because it had to negotiate for the gradual liberalization of over 5,000 tariff lines, not in a wholesale fashion as what the Philippine negotiators did, but on a line by line basis. Second, China, like Japan and South Korea before, went exportoriented while maintaining protection for the domestic market. To maintain ex port competitiveness, it pegged its currency with the US dollar and, when it was forced to abandon this peg, tried to calibrate the value of the renminbi as close as possible to the dollar. For the consumers at home, China maintained a different price system. Third, China’s leaders kept pushing its local enterpreneurs to keep innovating and upgrading. What has been raising the hackles of western economic policy makers is that China is acquiring See “Ofreneo,” A11

Opinion

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Rapid emissions reduction would keep CO2 removal and costs in check Cecilio T. Arillo

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database

APID greenhouse-gas emission reductions are needed if governments want to keep in check both the cost of the transition toward climate stabilization and to reduce the amount of carbon dioxide (CO2) already emitted in the atmosphere. To this end, emissions in 2030 would need to be at least 20 percent below what countries have pledged under the Paris climate agreement, an insight that is directly relevant to the global stock-take scheduled for the United Nations climate summit in Poland later this year, said the Postdam Institute for Climate Impact Research (PIK) in a new study shared to database. Removing CO2 from the atmosphere through technical methods, including carbon capture and underground storage (CCS) or increased use of plants to suck up CO2 come with a number of risks and uncertainties, and hence the interest of limiting them. “Emissions reduction efforts in the next decade pledged by governments under the Paris Climate Agreement are by far not sufficient to attain the explicit aim of the agreement—they will not keep warming below the 2-degrees limit,” said Jessica Strefler, PIK lead author of the analysis published in Environmental Research Letters. “To stabilize the climate before warming crosses the Paris threshold, we either have to undertake the huge effort of halving emissions until 2030 and achieving emission neutrality by 2050—or the emissions reductions would have to be complemented by CO2 removal technologies. In our study, we for the first time try to identify the minimum CO2 removal requirements—and how these requirements can be reduced with increased short-term climate action,” Strefler pointed out.

At least 5 billion tons of CO2 removal per year

According to the computer simulations done by the scientists, challenges for likely keeping warming below the threshold agreed in Paris would increase sharply if CO2 removal from the atmosphere is restricted to less than 5 billion tons of CO2 per year throughout the second half of the century. This is substantial. It would mean, for instance, building up an industry for carbon capture and storage that moves masses comparable to today’s global petroleum industry. Still, 5 billion tons of CO2 removal is modest compared to the tens of billion tons that some scenarios used in climate policy debates assume. Current CO2 emissions worldwide are more than 35 billion tons per year. “Less than 5 billion tons of CO2 removal could drastically drive up the challenges of climate stabilization,” PIK coauthor Nico Bauer said. “If, for instance, this amount of carbon dioxide removal [CDR] was

Ofreneo . . .

continued from A10

tec hnolog y by v iol at i ng t he intellectual-property rights of other countries. And yet, China is simply emulating what Japan did in the postwar decades of the 1950s and 1960s, and South Korea in the 1970s and 1980s by doing “reengineering” of imported products and, yes, copying industrial models developed by other countries. A major contentious issue for the WTO and trade partners is the continuing requirement by China for foreign investors (FDIs) to transfer technology, a requirement that is supposed to be a violation of the

halved, then the annual CO2 reduction rates between 2030 and 2050 would have to be doubled to still achieve 2 degrees Celsius. In addition, short-term emissions reductions would also have to be increased as the emissions reductions pledged so far by the signatories of the Paris Agreement are not sufficient to keep warming below 2 degrees if they’re not combined with CO2 removal from the atmosphere,” Bauer emphasized.

It’s all about short-term entry points

PIK said more CO2 removal could in principle reduce costs since, on paper, implementing the relevant technologies to compensate residual emissions in industry and transport is cheaper than pushing emissions reduction from 90 percent to 100 percent. However, PIK said, CO2 removal technologies are afflicted with three types of uncertainties and risks. First, the technical feasibility and also the costs are not well known so far. Second, they might have negative effects for sustainability; a massive scale-up of bioenergy production for instance could trigger land-use conflicts and come at the expense of food production and ecosystem protection. Third, the political feasibility is by no means given. In Germany, fears expressed by parts of the population made the government stop even small-scale carbon capture and storage implementation, PIK stressed. “This gives important information to governments—first, rapid short-term emissions reductions are the most robust way of preventing climate damages, and second, large-scale deployment of CDR technologies can only be avoided when reliable CO 2 prices are introduced as soon as possible,” said Ottmar Edenhofer, coauthor of the study and PIK’s chief economist. “Ramping up climate policy ambition for 2030 to reduce emissions by 20 percent is economically feasible. It is all about shortterm entry points: rapidly phasing out coal in developed countries, such as Germany and introducing minimum prices for CO 2 in pioneer coalitions in Europe and China makes sense almost irrespective of the climate target you aim for,” Edenhofer said. “In contrast, our research shows that delaying action makes costs and risks skyrocket. People, as well as businesses want stability, and this is what policy-makers can provide— if they act rapidly,” he concluded.

Thursday, April 5, 2018 A11

The wounds of the risen Lord Msgr. Sabino A. Vengco Jr.

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Alálaong Bagá

he Gospel reading (John 20:19-31) for the Second Sunday of Easter is repeated every year. Narrating two appearances by the Risen Christ, the text gives the fulfillment of all His promises to His disciples: His abiding presence, the gift of the Holy Spirit, forgiveness of sin, peace and eternal life. The fourth Gospel merges into one event Jesus’ resurrection, ascension, the gifting with the Spirit, and the send-off on mission. THE PEACE AND THE HOLY SPIRIT. Twice the risen Christ imparted and announced peace to His disciples. In the context of his victory, his peace (shalom) and joy are the signals of the messianic era (Isaiah 11) inaugurated by His death and resurrection. It is a peace based on an irrevocable reconciliation with God upon divine initiative. As a gift to humankind, it might and it would be broken again and again from below, but it is definitive and will ultimately triumph. “Receive the Holy Spirit.” The mystery of Pentecost is already now part of the glory and victory of the resurrection. In bestowing the Spirit upon his followers, Jesus is

portrayed as fulfilling the prophecies about the Messiah who would pour out his Spirit upon all humankind and within his people (Joel 3:1; Ezekiel 36:27). Jesus in victory empowered, inspired and anointed His disciples with the same Spirit of God that brought forth order and life at the beginning of creation, and breathed life into created humanity, and anointed prophets, priests and kings, and God’s own servant (Isaiah 42:1). Great importance is given to the wounds of Jesus. Jesus volunteered to show His disciples His pierced hands and wounded side. Their contact with His wounds was not only the answer to their fears and doubts, but also

the guarantee to their future and for their mission. The wounds of His passion proclaimed the continuity between the cross and his glorification, as the joyful recognition of his disciples proved. From Jesus’ pierced body on the cross flowed blood and water (John 19:34), in allusion to the Eucharist and baptism, the sources of life for the believers up to the end of time. And the connection is clear that the Holy Spirit now imparted to the disciples is poured out upon humankind by virtue of Jesus’ death and resurrection. THE MISSION. The second salutation of peace and the gifting with the Holy Spirit is together with the mandate for the disciples to go on mission. As Jesus was sent by the Father, so now His followers are sent forth to share in his work of salvation. The peace they receive and the Spirit given to them should mean healing and forgiveness to sinners they encounter, both within and outside the Christian community. The fruits of Jesus’ victory over sin and death are to be shared with all who believe. The rabbinical terminology of “binding and loosing,” i.e. retaining and forgiving sins, means acceptance into, or exclusion from, the community of Christ’s saving presence. The commissioning of the disciples is illumined by the story

It’s tax time! Let’s get your money back! Sept Balusdan

tax law for business

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he bulk of our government’s revenues come from the income tax and the value-added tax (VAT). These taxes acquired regularity in their imposition upon both corporate and individual taxpayers.

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

As a rule, both individual taxpayers and corporate taxpayers are required to file their quarterly and annual income-tax returns (ITRs). The quarterly income tax returns for individual taxpayers are filed within 45 days from the close of each taxable quarter. On the other hand, the quarterly ITRs for corporate taxpayers are filed within 60 days from the close of the taxable quarter. There is no difference though in deadline for the filing of the annual ITRs for both individual and corporate taxpayers, which is on or before April 15 of the following year, or the 15th day of the fourth month following the close of the fiscal year for corporate taxpayers. In the filing of ITRs, the advent of the Tax Reform for Acceleration and Inclusion (TRAIN) law or Republic Act (RA) 10963, included a limitation that the ITRs for both individuals and corporations, shall consist of a maximum of four pages in paper or electronic form and shall contain only the information enumerated under the new provision. Further, it is worthy to note that RA 10963 institutionalized the substituted filing of ITR of purely compensation income earners, by inserting the new Section 51(A) in our Tax Code. After filing, it’s time to pay the

taxes. Since the Philippines adheres to the “pay as you file” system, the general rule is that imposable taxes shall be paid by the person or corporation subject thereto at the time the return is filed. The taxpayer, though, may ask for an extension of time to pay, which, at times, depends upon the discretion of the tax authority and only in meritorious cases. In comparison, there is variation when it comes to the filing of returns and payment of the VAT. A person liable for VAT should file a quarterly VAT return, but shall pay on a monthly basis. In paying the VAT, the monthly VAT declaration shall be filed within 20 days following the end of the month, while the quarterly VAT return shall be filed within 25 days following the close of each quarter. The administration of taxes does not always end upon the collection by the Bureau of Internal Revenue (BIR), but rather upon refund or issuance of a tax-credit certificate. A taxpayer may ask for a refund of erroneously, excessively or illegally assessed or collected taxes, whether as a liability or penalty, applying Section 229 of the Tax Code. On the other hand, the taxpayer may ask for a refund of the creditable input taxes attributable to its zero-rated or effectively

WTO agreement restricting TradeRelated Investment Measures. Fourthly, China did not rely solely on FDIs to grow the economy. Deng Xiaoping made the famous call in the early marketization years for Chinese entrepreneurs at the grassroots to bloom—“to get rich is glorious.” This is somewhat similar to what Trade Secretary Ramon M. Lopez and the young Joey Concepcion are trying to promote among the youth and students in their “Go Negosyo” program. Fifth, the Chinese government played a central guiding role in nurturing, promoting and upgrading key industries and sectors of the economy. Many of the old

state-owned enterprises during Mao’s time have been downsized or reengineered. And yet, gradually, a number of state-supported enterprises engaged in investing at home and overseas have arisen and have seized the commanding heights of the economy. So, what is China now doing? It is now building up the economy at a higher level. There are eight principles adopted by the government of President Xi Jinping. According to Cheng Enfu, Chairman of the World Association of Political Economy and Ding Xiaoqin, Deputy Director of the Center for Socialist Political Economy with Chinese Characteristics, these are:

One, focusing on science and technology to promote “original innovation, integrated innovation, and re-innovation and introducing and absorbing innovation in the economy.” Two, orienting production to improve the livelihood of the people. This means guarantees for social protection (poverty relief, employment, housing, education, medical care and social security) for all. Three, maintaining the dominance of “public ownership” over “private ownership” and balancing the two in order to control the “chaos of the market.” Four, avoiding the “middleincome trap” by addressing so-

zero-rated transactions, applying Section 112 of the Tax Code. Note that Sections 229 and 112 differ as to concept and as to application. In claiming tax refunds, the taxpayer must first file an administrative claim before the BIR in a form of a letter, discussing the grounds for the refund and submitting all supporting documents for such claim. For refunds of erroneously or illegally paid taxes, the taxpayer should file the administrative claim within two years from the payment of the tax; while for input VAT refund, the claim should be filed within two years from the close of the taxable quarter when the sale was made. The taxpayer has 30 days from receipt of the decision of the BIR to elevate the claim to the Court of Tax Appeals (CTA) via a petition for review. Note though that in a refund claim for erroneously paid taxes, both the administrative claim and the judicial claim should both be filed within two years from the date of payment. Thus, in case there is inaction on the part of the BIR, the taxpayer should ensure the filing of Petition for Review before the CTA before the two-year period ends. Prior to the TRAIN law, the law specified that the BIR has 120 days from submission of complete documents for a claim for input VAT refund to decide on the administrative claim and that failure to do so shall be deemed denial of the claim. Upon the advent of the TRAIN law, the BIR now has only 90 days from the submission of official receipts

of Thomas. It is a case both of encouragement for doubting and struggling believers of all ages, and of clarification to a problem that started when the authoritative eyewitnesses to the resurrection have passed away already. Faith is not an automatic result of hearing the testimony of eyewitnesses; Thomas refused to believe what the other disciples said they saw. Neither is faith guaranteed by seeing firsthand; even when Thomas saw the Lord he still had to come to faith. Thomas was moved to faith, not because he actually touched Jesus (apologetically, the disciples did not just imagine the appearances of the risen Lord), but because Jesus challenged him: “Believe!” Faith is a personal response to a personal invitation. Alálaong bagá, it is natural enough in life to rely on the guarantee of our senses, but our personal communion with the risen Jesus calls for a supernatural act of trust beyond our doubts and questions. To accept Jesus as “my Lord and my God,” finally trusting together with Thomas, is to believe that Jesus is one and equal with the almighty Father of all peoples. It is to be included in Jesus’ beatitude: “Blessed are those who have not seen and have believed.”

or invoices and other documents, to decide on the administrative claim; and failure to do so shall subject the BIR officer to punishment under Section 269 of the Tax Code. The new law and the implementing rules do not specify if such inaction within the 90-day period shall be deemed denial of the claim. This issue has been raised in a series of consultations but the clarification seems to remain unheeded by the tax authorities. Nonetheless, it is to my mind that, such inaction, should still be treated as deemed denial, in order for the taxpayer to elevate its claim to the CTA, same as the old rule. Otherwise, this may amount to a violation of taxpayer’s right to property or due process. In claiming for tax refunds, what is really significant is the substantiation of the claim. Sometimes, taxpayers lose billions merely due to lack of compliance with the substantiation requirements. To avoid this tragedy, taxpayers should be more alert in complying with pertinent Revenue Regulations. Upon passage of the TRAIN law, there are issuances adding requirements in claiming for refunds, such as RR182018, RMC 17-2018, RMC 2-2018, and, of course, the undying invoicing requirements under previous regulations. As long as taxpayers comply with the requirements under the law and regulations, there should be no reason for the BIR to hold on to your money. “It’s tax time, prepare your purse, but don’t forget your papers.”

Val Villanueva is on leave.

Businesswise cial and income inequality and recognizing labor’s entitlements to wealth distribution. Five, balancing the requirements of society and the market. Six, giving priority to the “intensive, high performance” path of development, not the “extensive, high-growth” path of the past four decades. This means a slowing down of growth but improvement in the quality of development. Seven, promoting the “real economy” and controlling the “virtual economy” in order to preserve social balance. Eight, maintaining economic openness while asserting economic sovereig nt y. T his last

me a n s i nte r n at ion a l cor p o rations shall be gover ned by “three controls”—China’s control of the shares, core technologies, technological standards and brands. Clearly, for China, the issue is not whether to embrace or not global integration. The challenge is how to define the terms of incorporation in a still evolving global economic order based on China’s development priorities and national interests. Can we in the Philippines not adopt a similar policy approach—raising questions and looking for answers on how good or bad has been the Philippine incorporation in the global economy?

2nd Front Page BusinessMirror

A12 Thursday, April 5, 2018

Con-com seeks to address social inequities in federal charter’s Bill of Rights

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By Bernadette D. Nicolas

@BNicolasBM

he self-executing provisions on socioeconomic rights have been lined up for consultative committee (Concom) en banc decision by next week. The socioeconomic rights, particularly, rights to health, education and decent housing are to be enshrined in the Bill of Rights under the proposed constitution to address social inequities and wide economic disparities in the country. Con-com Chairman and former Chief Justice Reynato S. Puno told reporters in a news briefing that these three socioeconomic rights are “most urgent,” specifically for the poor sectors of society. “And this point of view is not only reflected by the realities in

the Philippines but universally,” he said, stating that the South African Constitution also included these in their Bill of Rights. Puno also said the committee has studied various constitutions before deciding on enshrining these socioeconomic rights, and found that the constitutions of South Africa and India, among others, are good models for the upcoming federal constitution. The enshrinement of socioeconomic rights will benefit the public since they can go to court in order to enforce these demandable rights.

PUNO: “At the very least, it will help the poor fight for a better life.”

At present, only civil and political rights are listed under the Bill of Rights. But since the Con-com members are tasked to review the 1987 Constitut ion , t he y a re prop osi ng to inc lude socioeconomic and environmental rights in their proposed charter. Last week the Con-com bared their proposed coverage of environmental rights. But they are also yet to decide on the exact wording of the self-executing provisions. The Con-com is supposed to submit its final draft to the President on July 19, ahead of the Chief

Executive’s State of the Nation Address on July 23. Asked to elaborate on how the enshrinement of these rights will solve wide economic disparities in the country, Puno admitted that it may not completely solve the problems of the poor, “but at the very least, it will help the poor fight for a better life,” and become “a more effective tool to fight poverty.” He is also confident that government funds won’t hinder the realization of these rights, as the government will be compelled to act to meet the demands of these socioeconomic rights. “It would also encourage Congress to make the proper appropriations in order to be able to satisfy the grant of these most basic socioeconomic rights,” Puno said. “If we don’t do this, then the enforcement of these socioeconomic rights will just remain statements of policies,” Puno added.

Grab assures PCC of full cooperation in merger review Continued from A1

will ace the scrutiny, committing to fully cooperate with the antitrust body’s evaluation. “We will prepare the necessary documents and share information required by the PCC, and will closely work with the commission to address whatever questions and clarifications they may have,” he said on Wednesday. Tuesday saw Arsenio M. Balisacan, who chairs the competition watchdog, announcing that the agency’s motu propio review of the Philippine deal between Grab and Uber would begin on Thursday, as the merger could have “far-reaching effects” on the riding public and partner drivers, as this could give Grab a “virtual monopoly” in the ride-hailing market. Continued on A2

NEW BRIDGES Budget Secretary Benjamin E. Diokno, Interior Undersecretary for Barangay Affairs Martin B. Diño and Metropolitan Manila Development Authority Chairman Danilo D. Lim inspect the Pasig River on Wednesday, onboard the MV Super Ferry for possible construction sites of new bridges that would help solve Metro Manila’s traffic problem. ROY DOMINGO

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3 former U.S. soldiers go on trial in contract killing of Filipino broker

In this September 26, 2013, file photo, Joseph Hunter (second from left), a former US Army sniper who reportedly became a private mercenary, is in the custody of Thai police commandos after being arrested in Bangkok, Thailand. AP

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former US Army sniper and two other ex-American soldiers agreed to become contract killers for an international crime boss who wanted to settle a score with a real-estate agent in the Philippines he thought had cheated him on a land deal, a prosecutor said on Tuesday in opening statements at the trial of the three men. Joseph Hunter, a one-time sergeant with a Special Forces background, and Adam Samia and Carl David Stillwell have denied they planned the 2012 execution-style hit— a case that’s provided an inside glimpse into the secret fraternity of private mercenaries willing to kill in cold blood for cash. Prosecutors said the 52-yearold Hunter was working as a security chief for weapons and drug trafficker Paul Le Roux when he recruited Samia and Stillwell to travel from their homes in Roxboro, North Carolina, to the Philippines for what was called “ninja work.” Hunter provided firearms and silencers and told them Le Roux would pay them $35,000 a piece to get the job done, US Assistant Attorney Patrick Egan said in federal court in Manhattan. The broker, Catherine Lee, was on a “kill list” that self-styled assassins with military backgrounds saw as a golden opportunity, Egan said. “If Paul Le Roux wanted somebody killed, these guys got the call,” he said. “For these men, more murders meant more money.” Samia, 43, and Stillwell, 50, did surveillance on Lee before contacting her pretending to be potential clients, the prosecutor said. While returning from a trip to the countryside outside of Manila, Samia

pulled out a .22-caliber gun and killed Lee by shooting her twice in the face as she sat in the back seat of a van, he said. Lee’s body was found on a pile of garbage on the side of the road, Egan said. After being paid, her killers were ordered back to the United States, where they were arrested in 2015. An investigation turned up a picture on Stillwell’s phone of a bloody head wrapped in a towel that was taken around the time of Lee’s death, authorities said. He also admitted being behind the wheel of the van when she was shot, they added. Prosecutors said other evidence includes a secretly recorded video of Hunter from a sting in Thailand that resulted in a separate conviction for plotting to kill a Drug Enforcement Administration agent. They said he’s overheard talking about killing people for Le Roux, including a Filipino real-estate agent. On Tuesday defense lawyers asked jurors to keep an open mind, saying the case lacked eyewitness, forensic and other conclusive evidence needed to convict. They also told them not to trust shady government witnesses like Le Roux, who has pleaded guilty and is cooperating. Hunter ’s lawyer, Cesar de Castro, suggested the government couldn’t prove its case. Samia only agreed “to do legitimate, legal security work,” said his lawyer, Jeremy Schneider. Stillman’s lawyer, Robert Ray, didn’t deny his client’s statements about being in the van but claimed he never joined a murder conspiracy. “It just didn’t happen,” Ray said. AP

‘FEDERAL SHIFT ALSO REQUIRES REFORMS IN RECALL ELECTIONS’

Continued from a1

There is a similar proposal from the Liga ng mga Barangays of the Philippines to extend the terms of barangay chairmen from three years to five years. Like the issue on political dynasties, Casiple noted that the reform may have to go through the consultative committee (Con-com), as lawmakers are unlikely to pass the necessary law that would go against their interest. “ This is the reason they are not included in the officials covered by the law on recall in the first place,” Casiple said. The Con-com, created by President Duterte to review the 1987 Constitution, already decided to restrict “political dynasties,” but it has yet to discuss term extensions and the recall polls.

More feasible Former Comelec Chairman Sixto S. Brillantes Jr. agreed with Casiple’s recommendation to strengthen the recall elections, especially with the proposed term extensions. “Recall elections will play a more important role if the terms will be prolonged, since it will take a longer time for voters to replace their elected officials,” Brillantes said.

The veteran election lawyer also explained that filing a recall petition, the first step toward a recall election, will be even more feasible if officials have longer terms. Under the current rules of the Comelec, a recall petition may only be filed “a year from the date of assumption to office of an official and not later than one year immediately preceding the next regular local elections.” Brillantes said this leaves voters only up to the second year of the three-year term of a government official to file their recall petitions. Aside from the time it takes to assess the sufficiency or insufficiency of recall petitions, Comelec Spokesman James Jimenez also admitted that the filing and processing period eats up more time, making it harder for them to enforce the recall polls. “The cases may drag for quite some time—all because of the legal mechanism adopted by the aggrieved parties. The challenge would be to be able to conduct recall election within the time frame provided by law,” Jimenez said. If local government officials are given five-year terms, Brillantes said voters could initiate the recall process from the

second to the fourth year of their term.

Few cases Despite previous attempts of the government to make it easier for voters to file recall petitions by removing the preparatory recall assembly requirements in 2004, the Comelec was still only able to record a few recall polls in the last three decades. Based on a report obtained by the BusinessM irror from the Comelec, the number of recall petitions recorded by the Election Records and Statistics Division showed it was only able to hold 72 recall elections from 1990 to 2015. Of these cases, only 12 were confirmed to have resulted in the replacement of a local government official. About 65 percent, or 47, of all these recall elections involved barangay captains. Eight of the recall petitions were against mayors, four against vice mayors and only one against a governor. In a separate report, the Comelec said it was able to register 10 recall petitions in 2017. Only six of these petitions were found by the Comelec to have “sufficient” basis. It has yet to conduct any recall election based on the said pending petitions. Among the subjects of these peti-

tions are Caramoan, Camarines Sur, Mayor Marlyn S. Cordial; Puerto Princesa, Palawan, Vice Mayor Luis M. Marcaida III; Cabadbaran, Agusan del Norte, Vice Mayor Rey G. Jamboy; San Juan Mayor Guia G. Gomez; Cabadbaran, Agusan del Norte, Mayor Katrina Marie O. Mortola; and Pandi, Bulacan, Mayor Celestino T. Marquez. The ban for recall elections takes effect next month.

Additional reforms The number of recall elections is expected to increase with the implementation of the term extension, since voters will now be given a longer period to file their recall petitions. However, both Casiple and Brillantes said this will necessitate the Comelec to implement additional reforms to prevent losing candidates from abusing the recall process. “I am not saying this applies to all, but there are cases where it [recall] is being used by politicians against their enemies who won the elections,” Casiple said. “This should not be the case, since it should only be reserved for the people to remove underperforming officials.” Brillantes said this could be prevented if the Comelec would put more weight on

the reason of a party for filing a recall petition. “It should require specific grounds for the filing of the petitions.”

The danger National Citizen’s Movement for Free Elections (Namfrel) Secretary General Eric Alvia said the Comelec may coordinate with the Department of the Interior and Local Government (DILG) in assesing the credibility of the reasons cited for a recall petition. “The DILG’s opinion should also come in already in determining if the accusation is true or it’s just a power play,” Alvia said. “It [recall poll] is a nice process for the relief of really bad local leaders. On the other hand, it is also a danger if misused, so this is what we should guard against.” The Namfrel official also advised Comelec to raise the number of required signatures for the approval of recall petition. “They should fix at 25 percent or even higher...they could also consider making the threshold equal to the percentage of votes drawn by the winner or by the opponent,” Alvia said.

Recall requirements Currently, the Comelec may declare a recall petition as “sufficient” to proceed

into a recall election if those who filed it managed pay the necessary fees and submit the necessary number of signatures of registered voters. The fees range from P5,000 to P50,000, while the required number will depend on the number of registered voters in a specific area, or ranging from 10 percent to 25 percent of the voting population: At least 25 percent for a voting population of 20,000; at least 20 percent but not less than 5,000 for a voting population of at least 20,000 but not more than 75,000; at least 15 percent but not less than 15,000 for a voting population of at least 75,000 but not more than 300,000; and at least 10 percent but not less than 45,000 for a voting population of over 300,000. Jimenez said they are not inclined to base their decision on a recall petition other than these factors pursuant to the provisions of existing laws. Under the Local Government Code and Comelec Resolution 7505, local government officials could be recalled for loss of confidence. This was partially fleshed out in Republic Act 9244, which mandates recall petitions to contain at least a brief narration of the reason and justification for the said petition.