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Friday, April 6, 2018 Vol. 13 No. 174

Labor groups want no part of watered-down ‘endo’ EO

By Samuel P. Medenilla

@sam_medenilla

abor groups will not take part in any signing photo op with President Duterte unless they are sure the executive order (EO) on contractualization that will be signed by the Chief Executive is their version. Members of the labor coalition Nagkaisa threatened to back out of the much-awaited meeting with the President on April 16, after

they got wind of another version of the proposed EO, purportedly recommended by Labor Secretary Silvestre H. Bello III.

April 16 The date of the meeting between Duterte and labor groups and signing of the executive order on contractualization

“We will not attend any signing until we are certain what version [of the EO] will be signed. We refuse to walk blindly into that meeting,” said Joshua Mata, Sentro secretary-general and one of the members of Nagkaisa. Continued on A2

@cuo_bm

& Bianca Cuaresma @BcuaresmaBM

nflation reached 4.3 percent in March, breaching the government’s full-year target of 2 percent to 4 percent, and averaged 3.8 percent in the first three months of the year, according to the Philippine Statistics Authority (PSA). The National Economic and Development Authority (Neda) said the high inflation rate was driven by the continuous cost acceleration of key commodity items since the start of the year: Alcoholic beverage and tobacco (18.6 percent), food and nonalcoholic beverages (5.9 percent), and housing, water, electricity, gas and other fuels (2.9 percent). Neda Undersecretary for Planning and Policy Rosemarie G. Edillon said proactive measures will be vital in managing inflation and mitigating its impact, especially on the poor. “The government remains vigilant

Hope has risen at BOC Dr. Jesus Lim Arranza

Make Sense

t’s Easter. A time for Catholics to rejoice for the resurrection of Jesus Christ. And a time to celebrate for the rebirth of our Savior and hope. Thus, for my column this week, I will discuss an interesting topic about Customs Commissioner Isidro Lapeña and about hope rising at the Bureau of Customs (BOC). Continued on A10

Grab, Uber reject PCC order for status quo

4.3percent

The inflation in March, above the government’s full-year target of 2 percent to 4 percent to price pressures, especially on food consumed by the poor, such as rice,” she said in a statement on Thursday. Prices of rice rose 3.6 percent in March, from 2.8 percent in February. Farm-gate prices of palay have been on an upward trend since the second week of January, which, in part, contributed to higher wholesale and retail prices of rice. Edillon cited the urgency to fasttrack the amendments of Republic Act 8178, or the Agricultural Tariffication Act, which will remove the quantitative restrictions on rice importation, and eventually open imports to private traders and allow the National See “Neda,” A12

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NEDA: PROACTIVE MEASURES NEEDED TO CUSHION IMPACT OF RAPIDLY RISING PRICES By Cai U. Ordinario

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By Lorenz S. Marasigan @lorenzmarasigan

(DENR), Tourism (DOT) and of the Interior and Local Government (DILG), stakeholders started crafting the actions plans last month, encompassing thematic areas that

HILE the Philippine Competition Commission (PCC) intends to force Uber into continuing its operations in the Philippines, pending the review of its acquisition by rival Grab, both transportation network companies strongly opposed the interim measures proposed by the antitrust body. Commissioner Stella A. Quimbo listed the possible interim measures that the competition watchdog would want to apply as part of its motu propio review of the merger between Grab and Uber during Thursday’s public hearing on the transaction. Its main initial order involves maintaining the operations of Uber

See “Boracay,” A2

Continued on A12

TOUCHING GOLD An exhibitor polishes a Mustang displayed at the World Trade Center in Pasay City for this year’s Manila International Auto Show.

ALYSA SALEN

Task force crafts action plans to rebuild Boracay By Jonathan L. Mayuga

@jonlmayuga

The interagency body tasked to address the environmental problems besetting Boracay, the country’s top

tourist destination, is now finalizing five action plans to step up rehabilitation efforts on the island. Led by Task Force Boracay, comprising of the departments of Environment and Natural Resources

n japan 0.4876 n UK 73.3147 n HK 6.6326 n CHINA 8.2818 n singapore 39.6821 n australia 40.1687 n EU 63.9232 n SAUDI arabia 13.8824

Source: BSP (5 April 2018 )

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A2 Friday, April 6, 2018

Labor groups want no part of watered-down ‘endo’ EO Continued from A1

Nagkaisa members said they will only meet with Duterte if the Department of Labor and Employment (DOLE) assures them that the EO that will be signed contains their definition of security of tenure (SOT). In their version of the EO, contracting or subcontracting of labor—known popularly in the Philippines as endo—will be prohibited if it circumvents workers’ right to security of tenure, which is defined by Nagkaisa as the direct hiring relationship between the principal employer and employee. In an interview, Bello confirmed that the DOLE’s version of the EO, which they submitted to Duterte, does not contain this definition of SOT, which, he not-

Boracay. . .

Continued from A1

include problems revolving around water and soil pollution, drainage, solid-waste management, illegal squatting, and law enforcement. The action plans will be implemented during the six-month moratorium on tourism activities on Boracay Island. Presidential Spokesman Harry L. Roque Jr. on Wednesday announced that the President has approved the recommendation to close Boracay for six months starting April 26.

Massive activities

Undersecretary Jonas Leones, the designated spokesman of Environment Secretary Roy A. Cimatu, said there will be massive activities on the island during the period. While still inspecting unchecked hotels and resorts, the DENR will simultaneously conduct technical meetings with those already issued with notices of violation (NOCs). According to Leones, the task force will soon start working with various stakeholders “more intensely” to ensure that the problems on Boracay Island are fixed, and issues and concerns raised are addressed. Because of the severity of the problem, he said short-term, medium-term and long-term solutions are being eyed. “We will closely coordinate with the water concessionares, the local government units, to start fixing the drainage system; upgrading all sewer lines, cleaning of old STP [sewage treatment plant] and putting up of new STPs to ensure that wastewater, in case of discharge, will be treated,” said Leones, also the DENR’s undersecretary for policy and planning, international affairs and foreign-assisted projects.

Drastic measures

He reiterated that with President Duterte’s approval of the task force’s recommendation, drastic measures will be implemented, adding that full cooperation of concerned government agencies, including the local government units, is expected. He clarified, however, that it was not Cimatu alone

ed, will effectively “prohibit any form of contractualization.” “ This precludes contractors already.... This is something we cannot accept. It is also something the management cannot accept,” Bello stressed. Nagkaisa accused Bello of “misleading” Duterte on the issue by presenting other versions of the EO aside from their version. It insisted that their version still allows contractualization for some positions to be decided by the National Tripatite Industrial Peace Council. “Secretary Bello shamelessly foisted that labor is calling for the total prohibition of contractualization and deliberately misled the public and the President that workers are handling and demanding the impossible. He obstructed and

who decided on the matter. “At the end of the day, the decision to recommend the closure was an act of an interagency task force and the members supported it. Of course, there were devil advocates during the meetings, but at the end of the day, the decision to recommend Boracay’s closure was supported by all the members of the task force,” he said.

Tourism moratorium

The closure of Boracay for six months, Leones said, means a moratorium on tourism activities. This includes enforcement of the ban on tourists traveling to the island from the main island Malay and other areas near Boracay. This, he said, will require coordination among the DOT, DILG, LGUs and Department of Transportation (DOTr). “The hotels and transport sector will be informed about it. The DILG will be coordinating with PNP, DND and PCG,” he said.

Rehabilitation

Leones said the DENR, for its part, will coordinate with the DILG and LGUs in pursuing the recovery of forestlands and wetlands from the big-time illegal squatters, the hotels and resorts, and informal settlers, as part of the rehabilitation effort. For that, he said the task force expects strong resistance and is anticipating legal battles, especially with hotels and resort owners, who may try to seek legal remedies. “Of course, there will be legal battles when we dismantle the illegal structures,” he said. The official added that another major concern is the looming garbage crisis on Boracay Island. He said as a way forward, the DENR will work with various stakeholders on the island to revive and ensure the sustainable operation of materials recovery facilities (MRFs).

Greening

The DENR, he said, will also identify areas for reforestation—both inland forest and beaches or coastal areas. He added the reforestation activities will be incorporated in the Enhanced National Greening Program (ENGP),

derailed the democratic processing of an EO,” Nagkaisa said. Nagkaisa added it may finally call for Bello’s resignation if he refuses to present their version of the EO to Duterte. Despite this position of Nagkaisa, Bello said he is still confident he will be able to iron out the issues raised on the EO during his meeting with Nagkaisa before April 16.

Not final

In a related development, Bello belied the allegation of Nagkaisa that he was grandstanding after the DOLE reported on Wednesday it has ordered the regulariation of 6,482 contractual workers of Jollibee Food Corp. (JFC) in Metro Manila. Bello clarified the decision came from their National Capital Region and the indigenous peoples and those who will be affected by Boracay’s sixmonth closure will be enrolled as beneficiaries of the program to cushion its expected economic impact. More than 17,000 local residents from both the island and mainland Malay and other surrounding areas are employed by the tourism industry that operates on Boracay. On top of the DENR’s ENGP initiative, he said the departments of Labor and Employment (DOLE) and of Social Welfare and Development (DSWD) will also be asked to help. “The DOLE will look for alternative jobs, while the DSWD will identify beneficiaries for a cash-for-work program,” he said.

Solid waste

Leones said the task force is also discussing the possibility of introducing waste-to-energy (WTE) solutions to the garbage problem besetting Boracay. Solid-waste generation on the island is 2.25 kilos per person, totaling 90 tons per day, but only 30 tons are collected and brought out of the island. “Obviously, the influx of tourists has exceeded Boracay’s capacity to accommodate wastes. The MRFs have become open dumps for a time. We need to fix that,” he said. Leones added the garbage situation has reinforced the DENR’s resolve to look at WTE solutions to the garbage problem. This, he said, opened opportunities to review the Clean Air Act, which prohibits the use of incinerators as a way of disposing of garbage. For the meantime, he said they will look for appropriate no-burn WTE technologies for Boracay. In a separate interview, Eligio Ildefonso, executive director of the National Solid Waste Management Commission (NSWMC) Secretariat, said there are three MRFs already in place on the island, situated in Barangay ManocManoc, Balabag and Yapak. He added that as early as July last year, upon the instruction of Cimatu, the DENR and NSWMC have started to act on reports that the MRFs have become “open dumps.” “When we came there, we already fixed the problem. But when we pulled out, it stopped operation. But there is no more open dump in the area,” he told the BusinessMirror. “What we need to do is sustain the operation. Based on our action plan for solid waste, as a result of our workshop during the Holy Week break, the operation of the MRFs will be sustained by the LGU,” he said. He added that as part of the solution to the garbage problem, the NSWMC and the DENR will work with various stakeholders to intensify the enforcement of the Ecological Solid Waste Management Act, institutionalize waste segregation at source, and ensure that the 3Rs—reuse, recycle and reduce waste—will be practiced both by business establishments and at the household level, while looking at the possibility of putting up a WTE facility

office and can still be appealed before his office. “If they don’t appeal, then that is the only time it becomes final and we implement,” Bello said. Nagkaisa argued that the mass regularization was imprudent since it created panic, needlessly reducing the value of shares of JFC in the stock market since on Wednesday. It also noted the number of regularized workers was still only a small portion of the total workforce of JFC. Bello said there could still be more JFC workers to be regularized workers in the coming weeks, since their inspection in its other branches is still ongoing. “On a nationwide basis, I think it has 10,000 to 50,000 workers,” Bello added. on the island. “Imagine, Boracay is producing 100 tons of garbage a day. So, we really need to look for appropriate technology that can help address the garbage problem on the island,” he said.

Strict regulation

According to Leones, while saying the focus of the government is on the rehabilitation, the task force may consider coming up with, for strict enforcement, various rules and regulation related to tourism in compliance with various environmental laws. For that, he said a governing body may be formed, to ensure that tourism will not exceed the island’s carrying capacity. “The ERDB [Ecosystems Research and Development Bureau] is currently conducting research to determine the island’s carrying capacity. Like in the Puerto Princesa Underground River [PPUR], there will be limits to tourism activities,” he said. According to Leones, enforcement of environmental laws will be institutionalized to ensure that hotel and resort owners, including the residents and tourists arriving on the island, will follow rules, like discarding wastes, such as food wrappers, plastic bottles and littering. Aside from Boracay, the DENR has launched a crackdown in other tourism areas like Panglao, Bohol, Siargao Island, El Nido, Palawan, Puerto Galera, Oriental Mindoro and other tourist destinations. Meanwhile, Senate President Pro Tempore Ralph G. Recto on Thursday asked Duterte administration officials concerned to provide “a performance target” sought to be achieved from the mandatory six-month closure of Boracay. Recto made the request after President Duterte ordered Boracay closed starting April 26. In a statement, Recto asked: “What are the countable outputs after six months? How many kilometers of sewer lines would be fixed. How big is the expected improvement of water test results? How many illegal shoreline structures would be removed?” The senator stressed such a master plan is needed “so that at the end of six months, we will have a before and after comparison table.” Recto recommended that authorities come up with a “Waze-like guide map“ for implementing the Boracay clean up, adding: “Freelancing is a nono. You are closing an entire island, putting thousands of workers on forced vacation, then the rehabilitation work will be sporadic?” At the same time, Recto reminded authorities concerned that “ a plan is also needed to determine the funds required in Boracay’s rehabilitation. “Under our budgeting, procurement, accounting and auditing rules, you cannot ask for a blank check, and then say that liquidation shall follow. The release of funds is based on a program of work, with the deliverables clearly identified.” With reports from Butch Fernan-

dez, Samuel P. Medenilla, Lorenz S. Marasigan and Bernadette D. Nicolas

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26 PHL firms among Asia Pacific’s fastest growing companies

he Financial Times (FT) of London has released its inaugural list of the FT 1000 High-Growth Companies in Asia Pacific, consisting of firms based in 11 of the region’s more developed markets, namely Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea and Taiwan. FT’s research partner Statista compiled the list, basing the rankings on the percentage of revenue growth between 2013 and 2016. Two fastestgrowing fintech companies from the fintech industry, Prospa of Australia and Pushpay of New Zealand, topped the list after registering compounded annual growth rates (CAGR) of 445 percent and 408 percent, respectively. Twenty-six Philippine companies made it to the FT 1000 list, and the top three are ASpace, DFNN Inc. and PetroEnergy Resources. ASpace is an unlisted support services company providing coworking spaces in Makati and Cebu. Philippine Stock Exchange (PSE) listed company DFNN, which is recognized in both the gaming and fintech Industries, is the only Filipino core technology company to make the list. PetroEnergy is another PSE-listed firm engaged in upstream oil exploration, renewableenergy development and power generation. Here is the complete list of high-growth Filipino firms, with CAGR and overall ranking as follows: ASpace, 115.2 percent (53rd); DFNN Inc., 49.3 percent (193rd) ; PetroEnergy, 34.8 percent (320th); Semirara Mining, 29.9 percent (394th); Alsons Consolidated, 27.3 (444th); Leisure & Resorts World, 26.5 percent (467th); Pryce Corp., 19.8 percent (663rd); Cirtek Holdings, 19.1 percent (693rd); JG Summit, 17.7 percent (755th); Concepcion Industrial, 17.6 percent (760th); Megawide Construction, 17.5 percent (764th); Puregold Price Club, 15.4 percent (856th); STI Education Systems, 15.2 percent (863rd); Harbor Star Shipping, 14.8 percent (877th); Cebu Air, 14.7 percent (881st); Solid Group, 14.5 percent (890th); Century Pacific Food, 14.1 percent (903rd); MacroAsia, 13.2 percent (927th); SSI Group, 13.0 percent (930th); Jollibee Foods, 12.4 percent (947th); Asian Terminals, 12.1 percent (956th); SPC Power, 12.0 percent (958th); Crown Asia Chemicals, 11.7 percent (967th); Emperador Inc., 11.2 percent (981st); Manila Broadcasting, 11.1 percent (984th); Philippine H2O Ventures, 10.5 percent (996th). This is the first time such a list has been compiled, and those that made it came from a pool of 14,000 companies that were chosen on criteria that they generated revenues of at least $100,000 in 2013, and at least $1 million in 2016. With a total of 271 companies on the FT 1000, India reigned supreme, followed by Japan with 190 and Australia with 115. In terms of most number of companies for a single city, Tokyo came out on top with a total of 134, ahead of Mumbai’s 60 and Sydney’s 52.

Grab, Uber reject PCC order for status quo Continued from A12

“These are intended to ensure the integrity of the review is reserved. We want to conduct a proper review—one that is unbiased and reflective of market conditions,” Quimbo said. Interim measures are put in place as the watchdog starts its motu propio review of the acquisition of Uber by Grab, rivals in the ridehailing market. The measures announced on Thursday, PCC Chairman Arsenio M. Balisacan noted, are still subject to an official order. The antitrust body will be deliberating the remedies proposed by both Uber and Grab before coming up with a firm decision. “Based on the hearing, from the views and comments that we heard, we will further deliberate the interim measures, and then we will issue the order,” he said. The agency aims to issue the official order before April 8, when Uber ceases to operate in the Philippines. Tension continued to heat up inside the room, as the PCC and the parties involved discussed the interim measures presented by the government agency. According to Grab Philippines External Legal Counsel Arlene M. Maneha, there is no need for the PCC to issue the somewhat “disproportionate” interim measures. “We think the interim measures will not be necessary,” she said. “Any concern that the commission might have is not a real concern because nothing in the transaction merges the operations.” Maneha added that the acquisition in the Philippines only involved the drivers’ contracts, employees and other assets. It, however, does not include proprietary assets, such as the app, pricing and incentive mechanisms, and marketing and sales policies, among others. “We would like to emphasize the transaction does not involve the integration of the operations of both apps,” Maneha said. “We do not and will not have access to pricing mechanism and policies relating to sales and incentives.” Also, it will be impossible for Uber to continue with its operations in the Philippines, according to Uber Chief Business Officer for Asia Pacific Brooks Entwistle. “We no longer have any funding for me to use on this markets,” he said. “Our ability to

hold or reinstate the is simply no longer there.” Maneha added that the decision of Uber to leave the Philippines stemmed out from a corporate decision due to the $700-million losses it incurred in Southeast Asia. “We have to emphasize that Uber exited this market. This is a very important fact. Uber has exited, it has made that commercial decision,” she stated. Already, Uber Philippines drivers are migrating to Grab, almost immediately after the March 25 announcement of the regional acquisition. 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. Maneha added that there is no substantial lessening of competition in the space, as Filipino commuters still have other modes of transportation to choose from. “The perception that there is high concentration in the relevant market would not be an accurate assessment. The market is far bigger,” she said, citing buses, jeepneys and even tricycles as other modes of option for commuters. This, she said, is the case in Singapore, a highly-developed market with efficient public transportation. Commissioner Johannes Benjamin R. Bernabe, however, did not buy the idea, saying that public transportation in the Philippines is unlike other nations. “Public transport is very much developed in other jurisdictions, but in the Philippines it is not,” he said. “There are valid considerations, which are unique to the Philippines, and are considered by the mergers and acquisitions office for the interim measures.” Maneha added that there will be “sufficient competitive constraints in the market” given the forthcoming entry of new players in the ride-hailing space. Land Transportation Franchising and Regulatory Board (LTFRB) Board Member Aileen B. Lizada listed four possible entrants in the market, namely: Hype, Lag Go, Owto, and Picar. “We think that there will be sufficient competitive constraints in the market. We think that the anti-competitive concerns would be low because there are very low barriers to entry,” Maneha said.

The Nation BusinessMirror

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Sereno seeks inhibition of 4 magistrates in quo warranto proceedings against her

MBATTLED Chief Justice Maria Lourdes A. Sereno on Thursday filed a motion before the Supreme Court (SC) that seeks the inhibition of four magistrates from participating in the deliberation and resolution of the quo warranto petition filed against her by the Office of the Solicitor General, which seeks to nullify her appointment to the post. Sereno said Associate Justice S. Diosdado M. Peralta, Lucas P. Bersamin, Francis H. Jardeleza and Noel G. Tijam shou ld recuse themselves from the quo

w a r ra nto pet it ion for bei ng biased against her. The four associate justices testified in the impeachment proceedings conducted by the House of the Representatives Committee on Justice against Sereno. The four justices were also seen participating in the so-called Red Monday protest in the SC that called for Sereno’s resignation. Sereno insisted that their refusal to inhibit from the case would constitute “a willful and intentional violation” of her constitutional right to due process.

Joel R. San Juan

Duterte appoints new DOJ secretary, names incoming PNP and AFP chiefs

resident Duterte “I accepted the resignation of Vit Aguirre, fraternity brother, as secretary of justice. announced he has accepted my I am now…looking for [his] replacement,” DuterteremarkedinhisspeechatGawad Saka the resignation of Justice 2017 and Malinis at Masaganang Karagatan Secretary Vitaliano N. Aguirre II, 2017 at the Rizal Hall in Malacañan Palace. But the President did not elaborate on the and that National Capital Region circumstances behind Aguirrre’s resignation, which came after the DOJ dropped charges Police Office chief Director Oscar against alleged drug lord Peter Lim and selfconfessed drug lord Kerwin Espinosa, and a D. Albayalde will be the next to string of other controversial cases. head the 170,000-strong Philippine A few hours after Duterte’s speech, Presidential Spokesman Harry L. Roque National Police (PNP). Jr. announced that Senior Deputy Execu-

Families of Dengvaxia ‘fatalities’ file crime raps vs Garin, others

RIMINA L charges were filed before the Department of Justice (DOJ) on Thursday against 35 current and former health department officials and executives of the manufacturer and supplier of the controversial anti-dengue Dengvaxia vaccine by families of four schoolchildren who reportedly died after being given shots of the vaccine. The complainants, through the assistance of the Public Attorney’s Office (PAO), named former Health Secretary Janette L. Garin on top of the respondents.

Garin and the rest of the respondents were specifically charged with reckless imprudence resulting in homicide under Article 365 of the Revised Penal Code and Violation of Republic Act 9745 (Anti-Torture Act). The complaints were filed by the families of Aejay Bautista, 11; Angelica Pestilos, 10; Lenard Baldonado, 10 and Zandro Colite, 11. The PAO has been tasked by the DOJ to conduct fact-finding probe and build up cases on criminal liabilities of government personnel and private individuals for the deaths. The PAO filed the charges af-

Editor: Vittorio V. Vitug • Friday, April 6, 2018 A3

ter its forensic teams established that all four victims died of organ failures that could be attributed to the vaccine. Other respondents in the complaint are nine other health department officials, Dr. Vicente Belizario Jr., Dr. Kenneth Hartigan-Go, Dr. Gerardo Bayugo, Dr. Lyndon Lee Suy, Dr. Irma Asuncion, Dr. Julius Lecciones, Dr. Joyce Ducusin, Rosalind Vianzon and Mario Baquilod, along with Drs. Socorro Lupisan and Maria Rosario Capeding of the Research Institute for Tropical Medicine. Joel R. San Juan

tive Secretary Menardo Guevarra is the new DOJ secretary, and the appointment of Western Mindanao Command Chief Lt. Gen. Carlito Galvez Jr. of the Philippine Military Academy Class of 85, as incoming chief of staff of the Armed Forces to replace Lt. Gen. Rey Leonardo Guerrero. Duterte also named Albayalde, a member of Philippine Military Academy Class of 1986, as the next PNP chief, replacing Director Ronald M. dela Rosa, who was originally set to retire on January 21 since he already reached the mandatory retirement of age of 56.ThePresident,however,extendedhisterm indefinitely. Joel R. San Juan and Bernadette D. Nicolas

Govt sets terms for peace gab with Reds

resident Duterte said on Thursday that he will grant the Communist Party of the Philippines (CPP) founding chairman Jose Ma. Sison an assurance that he may return to the country without being arrested once peace talks between the government and communist rebels resume, according to Presidential Spokeman Harry L. Roque Jr. Roque stated that the President informed the Cabinet in their meeting on Wednesday night that he has authorized the resumption of peace talks subject to three conditions.

“ We are awaiting their response to the government position that we are willing to resume peace talks, but subject to those conditions,” Roque said. The government’s conditions for CPP-New People’s Army (NPA) to include honoring a genuine cease-fire with no actual shooting, desisting from collecting revolutionary taxes during the ongoing cease-fire and stop seeking a coalition government. “So, if the CPP-NPA would agree to these conditions, then peace talks could resume; and if peace talks would resume, the President said he’s

even able and willing to grant Joma Sison an assurance that he can come home without being arrested for the purpose of participating in the peace talks,” Roque said. “Now, former Congressman Nani Braganza was deployed [on Wednesday] to meet with the bargaining panel of the CPP-NPA to relay this information to them,” he added. Meanwhile, at Camp Aguinaldo, defense and military officials have issued a chorus of support to President Duterte’s decision to resume the peace negotiations “for the last time.” Bernadette D. Nicolas and Rene Acosta

Economy

A4 Friday, April 6, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Inflation rise threatens manufacturing growth

By Cai U. Ordinario

@cuo_bm

espite the robust performance of the manufacturing sector, rising inflation will remain a threat to its growth this year, according to the National Economic and Development Authority (Neda). In a news statement issued on Thursday, Neda Officer in Charge Rosemarie G. Edillon said high commodity prices could impact negatively on the ability of the manufacturing sector to obtain raw and intermediate materials needed for production. “Risks to growth remain. The government must remain cautious of increasing inflation, which may lead to higher cost of production for manufacturing firms. Strategies are needed to be pursued to sustain the upward growth trajectory of the manufacturing sector,” Edillon said. In the Monthly Integrated Survey of Selected Industries of the Philippine Statistics Authority (PSA), the Volume of Production Index for manufacturing grew by 24.8 percent in February 2018, higher than the 9.8 percent registered in the previous year. The Neda said this is a signal of a continued improvement from its slowdown since the second quarter of 2017. The Value of Production Index, likewise, increased by 23.6 percent. This led to the three-month moving average growth rate of both indexes to remain in positive territory at 12.9 and 11.7 percent. In order to sustain the growth, Edillon said the government needs to

encourage all forms of innovation in manufacturing and manufacturingrelated services, and to enhance the capacity of domestic firms, especially micro, small and medium enterprises. “We need these initiatives to produce raw materials and intermediate goods that meet the requirements of international markets. We also need to pursue bureaucratic and regulatory reforms that incentivize compliance across all levels of government to eliminate red tape and reduce the cost of doing business,” Edillon said. The Neda attributed the robust performance of the manufacturing performance in March to factors, such as the increase in the country’s working-age population.

It also said other factors include rising productivity, improvement in business environment and aggressive infrastructure development. These factors, Edillon said, will likely help sustain manufacturing output growth in the coming months. “The industries’ outlook for both the current and succeeding quarters remains bullish with the expectation of sustained robust demand, improvement in production capacity, new product lines and enhanced marketing strategies,” she added. PSA data also showed the average capacity utilization rate in February for total manufacturing was recorded at 84.2 percent. The PSA said this was due to 55 percent, or 11, out of the 20 major industries that operated at 80 percent and above capacity utilization rates. The proportion of establishments that operated at full capacity (90 percent to 100 percent) was recorded at more than one-fourth of the total number of establishments (27.2 percent) in February. About 54.3 percent of the total establishments operated at 70-percent to 89-percent capacity, while almost a fifth of the total establishments (18.5 percent) operated below 70-percent capacity.

Risks to growth remain. The government must remain cautious of increasing inflation, which may lead to higher cost of production for manufacturing firms. Strategies are needed to be pursued to sustain the upward growth trajectory of the manufacturing sector.”—Edillon

Employees replenish store shelves at a supermarket chain in Makati City, amid a Philippine Statistics Authority report that inflation picked up further to 4.3 percent in March, due to higher prices of food, beverages, tobacco and utilities. The National Economic and Development Authority, meanwhile, has warned that rising inflation figures may curb growing manufacturing growth. NONIE REYES

Labor group to Duterte, DOLE: Do a better job to end ‘endo’ By Nelson S. Badilla

Correspondent

E-commerce platform for small C enterprises and SMEs launched By Elijah Felice E. Rosales @alyasjah

mall enterprises are expected to get a boost in market reach after the government launched its first e-commerce platform that will feature goods produced by micro, small and medium enterprises (MSMEs). The departments of Trade and Industry (DTI) and of Science and Techonology (DOST) on Thursday launched an online platform where MSMEs can sell their products. The joint project, dubbed OneSTore.ph, aims to expand the market reach of small enterprises, as well as easing their way of reaching customers. The OneSTore.ph is the government’s first-ever e-commerce

platform. The project is part of the trade department’s intensified commitment to bolster the capabilities of MSMEs to access the mainstream market. The agreement between the two agencies will allow small enterprises to make use of OnesTore.ph through Negosyo Centers. It will also give Negosyo Centers access to clients of the DOST. The online platform will also allow clients to display and dispatch their products with its payment and logistic partners through an Internet-based hub managed by the government. This hub, dubbed as the One Town, One Product Philippines, is an intervention with the objective of improving the products of local

communities and drive inclusive growth within their areas. As for the DOST, its main task is to develop and maintain OneSTore. ph to ensure the smooth flow of transactions in the platform. It is also mandated to identify products for product-development initiatives, including improvements in packaging and labeling, subsidy or discounts in testing fees, equipment support, such as the Small Enterprise Technology Upgrading Program, and strengthen research and development efforts. In a speech, Trade Secretary Ramon M. Lopez said the DTI is bent on boosting the capacity of MSMEs. “Today’s signing of MOA to deepen the collaboration between [the] DTI and DOST [is intended] to attain this goal,” he said.

iting the order handed down recently by the Department of Labor and Employment (DOLE) to Jolibee Food Corp., a labor group advocating the end of job contractualization, or endo, expressed belief that President Duterte, through the DOLE, can do a much better job in regularizing more contractual workers. On April 4 DOLE-National Capital Region Director Henry John Jalbuena said his office has directed the popular burger chain to regularize its 6,482 employees. Jalbuena also said Perf Restaurant, which owns Burger King, was also ordered to regularize its 704 employees. In a news statement issued on Thursday, the Bukluran ng Manggagawang Pilipino (BMP) said “[t]he Jollibee regularization only shows that the DOLE and the President have the power to end contractualization, even without the amendment of the Labor Code, precisely because

the Labor Code allows them to do so. Regularization of all would be easier if Duterte will fulfill his promise of ending contractualization and this is through an executive order.” The BMP added that “[i]f the DOLE can regularize thousands of workers with just one directive, just like how it regularized more than 6,000 workers of Jollibee last April 4, 2018, why can’t it regularize all contractual workers in the Philippines?” According to the Alliance of Labor Unions (ALU), there are about 30 million contractual workers in the sectors of manufacturing services and agriculture nationwide. The BMP’s renewed call on the President to end contractualization was the group’s reaction to Duterte’s legal aide’s statement that the Chief Executive has no power to end cotractualization through an executive order. Deputy Executive Secretary Menardo Guevara said it’s the duty of Congress to do so by amending the Labor Code. Lawyer Jose Sonny G. Matula, president of the Federation

of Free Workers (FFW), assailed Guevara’s stand, saying that the Labor Code, the Constitution and the country’s jurisprudence are sufficient bases for Duterte or Labor Secretary Silvestre H. Bello III to stop contractualization. Matula, an expert on labor laws, asserted that “President Rodr igo Duterte is a law yer, [thus] he knew very well where he spoke when he promised to end contractualization [during] the presidential election campaign two years ago.” M at u l a rem i nded D uter te that “[t]he right to security of tenure is a constitutional right (Article XIII, Section 3, of the Constitution). Thus, your profession, your job or employment is a property right protected by the due process clause of the fundamental law [as the FFW leader cited the Callanta v Carnation case in relation to A rticle III, Section 1, of the Constitution].” Thus, FFW strongly urged the President to carry out what the laws ordered him to do for the irregular workers nationwide.

Lawmaker pushes for passage of plastic-waste disposal bill By Catherine Joy L. Maglalang | Correspondent

Comfy, modern jeepney ride

A lady commuter savors the comfortable and passenger-friendly features of a modern air-conditioned jeepney with a generous passenger leg and headroom at the World Trade Center in Pasay City during this year’s Manila International Auto Show. The jeepney is, likewise, equipped with its own Wi-fi and computer system. ALYSA SALEN

en. Emmanuel Joel J. Villanueva on Wednesday sought the passage of a law, which aims to improve the country’s waste-disposal management of beverage containers. Villanueva has filed Senate Bill 1032, or the Beverage Container Disposal Act, which mandates the beverage industry to prepare, submit and implement a management plan that sets out an effective disposal mechanism and accounting of beverage containers. The bill seeks to further encourage proper disposal of beverage containers among consumers by institutionalizing a refund-deposit mechanism. This mechanism mandates the monetary compensation of individuals who will return beverage containers to designated sites, like retail stores, thus creating incentives for proper disposal among the general public. Beverage containers, especially the ones made of plastic, are dumped into the world’s oceans every year. According to environmental group Greenpeace, the Philippines is the third-biggest plastic polluter into the ocean next to China and Indonesia.

Villanueva acknowledged the need to improve the waste-disposal management noting that excessive production and use of beverage containers can impose both environmental and health risks, to both humans and animals. “The government needs to strengthen existing mechanisms for effective disposal of beverage containers by institutionalizing the active participation of both the industry and consumers in reusing and recycling beverage containers,” Villanueva said. Under the bill, the Department of Environment and Natural Resources may prescribe a management plan for the collection, transport, reuse and recycling of beverage containers that being sold the domestic market. “We want to impose discipline among Filipinos on the importance of proper waste management and recycling,” the lawmaker said. “Little by little, we can do so much for our environment and we must strive to remove our country from the list of major contributors of plastic wastes being dumped into the world’s oceans,” Villanueva added.

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Friday, April 6, 2018

NFA may miss palay-procurement goal By Jasper Emmanuel Y. Arcalas

@jearcalas

he National Food Authority (NFA) vowed to step up its purchases of unmilled rice, but an official from the agency said it would be a tall order for the NFA to hit its procurement target for this year’s dry season harvest.

The NFA said it has bought 19,361 50-kilogram (kg) bags of palay from farmers. Of this volume, 7,412 bags were bought last month, at the start of the summer crop harvest. “Rice harvest started last March, and it would peak this month. So, if the farm-gate price of palay would drop, then we could procure more palay,” the official said. “We remain optimistic that we can hit our target, but it would be quite difficult.” NFA Administrator Jason Laureano Y. Aquino said the agency’s field offices are adopting “innovative means” to convince farmers to sell to the agency despite the big difference in palay buying price. The NFA buys at a support price of P17 per kg for clean and dry palay, while private traders offer higher prices.

Data from the Philippine Statistics Authority released during the third week of March showed that the average farm-gate price of palay has reached P20.40 per kg nationwide. “Our palay procurement for March was higher, with most of our purchases coming from our NFA branches in Northern Cagayan-Apayao, Mindoro, Zamboanga del Sur, North Cotabato and Bukidnon,” Aquino said in a statement. “While our procurement is still below our target, it shows the result of our best efforts to buy locally produced rice,” he added. Aquino noted the mandate of the NFA is to provide a floor price for palay for farmers to get a reasonable return on their produce. “We intervene only if palay

prices are low so that farmers can recoup their investments. If prices are high, government intervention is not necessary. We want the farmers to earn and be competitive,” he said. NFA is targeting to buy more palay as the summer harvest peaks, with a procurement target of 1.2 million bags, or 60,000 metric tons (MT) for the months of April and May. The Philippine Statistics Authority estimates that rice production in January to June would grow by 1.63 percent to 8.709 million metric tons, from the previous year’s 8.569 MMT. For 2018 the NFA is aiming to purchase 6 million bags of palay, which is equivalent to 300,000 MT. Last year the NFA failed to achieve its goal of procuring 3 million bags, as its purchases reached only 556,880 bags, or 28,344 MT.

Rice stockpile

Aside from purchasing palay from farmers, the NFA also buys rice from abroad to beef up its buffer stock, which has fallen to a fourdecade low of 10,000 MT. Part of the agency’s stockpile is sold to low income consumers. The NFA claimed that Cabinet Secretary Leoncio B. Evasco Jr. is delaying its importation of 250,000 MT of rice by not immediately approving the terms of reference (TOR) for it.

File photo

“The CabSec has yet to approve the TOR for the importation of 250,000 MT that NFA management has submitted for approval, adopting the 2017 rice importation TOR, under an open tender or government to private scheme,” Aquino said in a statement. “The NFA Council [NFAC] has been defying President Duterte’s order for an immediate importation of the 250,000 MT buffer stock,” he added. During a special meeting with the NFAC on March 19, Aquino said the President has directed

the NFA to immediately import rice. “The President said he would rather prefer an excess supply of rice than a shortage.” The NFA chief said he also welcomes the special audit on the NFA management’s operations to be undertaken by the Commission on Audit, following the recommendation of the NFAC. “The NFA Council is questioning NFA management why it released a lot of its rice stocks during the harvest season from October to December while distribution was low during the lean months

of July to September,” he said. “It is not correct to say that NFA’s rice distribution was high during the harvest season and low during the lean months,” Aquino added. The NFA chief said the grains agency’s rice distribution sank to a decade-low in 2017 at 14 million bags due to depleting stockpile. “Part of NFA rice releases in October, November and December went to the relief agencies, such as the Department of Social Welfare and Development, Office of Civil Defense and local government units for their relief operations totaling 292,848 bags. Total rice issued for relief operations in 2017 was 784,429 bags,” Aquino said. He also said the NFA’s distribution during the lean months last year was fewer compared to the fourth quarter due to the agency’s low rice inventory. “The government-contracted 250,000 MT of imported rice in 2017 started arriving in the country only in the last week of August. Thus, distribution during the lean months was calibrated due to low inventory,” Aquino said. “With the arrival of fresh buffer stocks, NFA had to release older stocks to its network of accredited retailers nationwide to avoid deterioration. This is in line with the agency’s total quality management program,” he added.

Friday, April 6, 2018

The World BusinessMirror

Editor: Lyn Ressureccion | www.businessmirror.com.ph

US militarization of border isn’t new

LBUQUERQUE, New Mexico—President Donald J. Trump’s promise to use the National Guard to secure the United States-Mexico border isn’t a new concept, and is something the US has done in the past for varying reasons.

B ot h for me r P reside nt s George W. Bush and Barack Obama sent National Guard troops to the border when they were in the White House. And throughout the history of the borderlands, the military or armed militias have been dispatched there to keep black slaves from fleeing, remove Native Americans from ancestral lands and suppress Mexican-American revolts stemming from anger over white mob violence. After the US seized Texas and the American Southwest following the United States-Mexico War, armed militias patrolled the border looking for runaway black slaves. The traditional Underground Railroad to the north was too far for slaves to travel, so thousands attempted the journey south to freedom. Soon, a guerra sorda, or cold war, developed between the nations. According to historian James David Nichols, Texas slaveholders took matters into their own hands and sent armed militias to the border and into Mexico to search for runaway slaves. Often, Mexico refused to turn over slaves, and the conflict sometimes resulted in violent skirmishes. In the late-1800s a nd ea rly-19 0 0 s, mou nted watchmen who patrolled from El

Paso, Texas, to California were dispatched largely to look out for Chinese immigrants trying to illegally enter the US. Kelly Lytle Hernandez, a University of California, Los Angeles, history professor and author of Migra!: A History of the US Border Patrol, said that, initially, there were no restrictions on Mexican immigration at the time because United States growers wanted a steady stream of agricultural workers. Ten sion s rem a i ned h ig h between white settlers, Mexican-A mer icans and Native Americans in the newly acquired territory following the US-Mexico War. Miguel Levario, a Texas Tech history professor and author of Militarizing the Border: When Mexicans Became the Enemy, said the United States government erected military bases, such as Fort Bliss in El Paso, Texas, for the sole purpose of removing Native Americans from lands. “It had little to do with immigration,” Levario said. As the Mexican Revolution began in Mexico around 1910, white settlers feared MexicanAmericans might take up arms on behalf of Mexican Revolutionary leader Pancho Villa. When Villa soldiers in north-

ern Mexico killed 19 white engineers and staff from an American mining company, drunken US soldiers sought revenge in El Paso and attacked Mexican-Americans in poor El Paso neighborhoods, sparking a riot in 1916. El Paso police also are believed to have sought revenge and set fire to Mexican inmates in the El Paso jail, killing 27, Levario said. The inmates were doused with coal oil and gasoline as a crude disinfectant, he said. What happened at the jail helped push Villa to raid the small town of Columbus, New Mexico. The violent raid angered whites and President Woodrow Wilson, who ordered Gen. John J. Pershing to invade Mexico to arrest Villa. The US Army never caught him. National Guard units from around the country were called up, and more than 100,000 troops were sent to the border. Congress created the US Border Patrol in 1924 and the agency slowly grew in size as its mission changed. At first, the agents sought to keep out Asian immigrants and later worked to stall alcohol trafficking in the Prohibition era. Slowly, it evolved into stalling unwanted migration from Mexico. Occasionally, US presidents have sent the military or the National Guard to the border region to help the Border Patrol stem a crisis amid controversy with border residents. In 1997 camouflage-clad US Marines ordered to patrol the border for drugs in West Texas shot and killed 18-year-old Esequiel Hernandez Jr. while he was herding his family’s goats near the tiny village of Redford, Texas, along the United States-Mexico border. Authorities said Hernandez had no connection to the drug trade and was an honor student. AP

Admirers mourn King, pledge to carry on unfinished work

EMPHIS, Tennessee—Fifty years after a shot rang out in Memphis, killing the Rev. Martin Luther King Jr., freedom rang from the balcony of the Lorraine Motel as a bell tolled 39 times to mark a life cut short by racism. King died among the most hated men in America, but on Wednesday, admirers grateful for his life and legacy mourned his loss and pledged to carry on his unfinished work to end racial injustice and economic inequality. “Nothing would be more tragic than for us to stop at this point,” said the Rev. William Barber, who will renew King’s Poor People Campaign this spring. “We must go up together or go down together. What he said then is what we must do now.” A host of tributes to the slain civil-rights leader were held across the country. At the epicenter was Memphis, where King was assassinated on April 4, 1968, while in town for a sanitation workers’ strike. The dignity of the workers paralleled this year’s anniversary, with teachers in Oklahoma and Kentucky walking out of schools to push for more funding. The triple evils of racism, poverty and war that King hammered at the end of his life linger—from economic, educational, housing and health disparities to the looming threat of nuclear war. Both the speakers and marchers of the day pledged their commitment to picking up King’s mantle. The Rev. James Lawson, who invited King to Memphis 50 years ago to assist with the sanitation workers’ strike, said more progress is needed toward King’s goal of equality for all. “I’m still anxious and frustrated,” said Lawson, his black hair turned gray. “The task is unfinished.” Speaking in King’s hometown of Atlanta, the Rev. Bernice King recalled her father as a great orator whose message of peaceful protest was still vital decades later. “We decided to start this day remembering the apostle of nonviolence,” she said during a ceremony to award a prize named for her father. As painful as losing her father was, she added she wouldn’t change history. “Actually, I’m glad that everything happened the way that it happened, because I can’t imagine the world we live in without the contributions of Martin Luther King Jr. and Coretta Scott King, and the sacrifice that they made,” she said. As a march began in Memphis, people locked arms or held signs as they chanted and sang songs such as “We Shall Overcome.” Memphis police estimated the crowd at about 10,000. “We know what he worked hard for, we know what he died for, so we just want to keep the dream going,” said Dixie Spencer, who came from nearby Hardeman County, where she’s a National Association for the Advancement of Colored People leader. “We just want to make sure that we don’t lose the gains that we have made.” Martin Luther King III addressed marchers at the end of their route. “There’s something wrong in our nation where a minimum of 48 million people are living in poverty. That’s unacceptable. We must do better. America should be embarrassed about having people living in poverty,” he said. AP

www.businessmirror.com.ph | Editor: Lyn Ressureccion

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Facebook scandal affected more than 87M users

E W YOR K— Fa c e b o o k revealed on Wednesday that tens of millions more people might have been exposed in the Cambridge Analytica privacy scandal than previously thought and said it will restrict the user data that outsiders can access. Those developments came as congressional officials said CEO Mark Zuckerberg will testify next week, while Facebook unveiled a new privacy policy that aims to explain the data it gathers on users more clearly—but doesn’t actually change what it collects and shares. In a call with reporters on Wednesday, Zuckerberg acknowledged he made a “huge mistake” in failing to take a broad enough view of what Facebook’s responsibility is in the world. He said it isn’t enough for Facebook to believe app developers when they say they follow the rules. He says Facebook has to ensure they do. Facebook is facing its worst privacy scandal in years, following allegations that Cambridge Analytica, a Trump-affiliated data mining firm, used ill-gotten data from millions of users through an app to try to influence elections. Facebook said on Wednesday that as many as 87 million people might have had their data accessed—an increase from the 50 million disclosed in published reports. Facebook is basing the estimate in part on the number of friends each user might have had. Cambridge Analytica said in a statement that it had data for only 30 million people. On Monday all Facebook users will receive a notice on their Facebook feeds with a link to see what apps they use and what information they have shared with those apps. They’ll have a chance to delete apps they no longer want. Users who might have had their data shared with Cambridge Analytica will be told of that. Facebook says most of the affected users are in the US. Zuckerberg said fixing the company’s problems will take years. Besides the privacy scandal, Facebook also has been dealing with fake news, the use of Facebook to spread hate and discord and concerns about social media’s effect on people’s mental well-being. These are “big issues” and a big shift for Facebook as it broadens

its responsibility, Zuckerberg said. He added that he does think that by the end of this year the company will have “turned a corner” on a lot of the issues. Zuckerberg has made fixing the company his personal challenge for 2018. As part of the steps it’s taking to address scrutiny about outsiders’ access to user data, Facebook outlined several changes to further tighten its policies. For one, it is restricting access that apps can have to data about users’ events, as well as information about groups such as member lists and content. In addition, the company is also removing the option to search for users by entering a phone number or an e-mail address. While this helped individuals find friends, Facebook says businesses that had phone or e-mail information on customers were able to collect profile information this way. Facebook says it believes most of its 2.2 billion users had their public profile information scraped by businesses or various malicious actors through this technique at some point. Posts and other content set to be visible only to friends weren’t collected. This comes on top of changes announced a few weeks ago. For example, Facebook has said it will remove developers’ access to people’s data if the person has not used the app in three months. Earlier on Wednesday, Facebook unveiled a new privacy policy that seeks to clarify its data collection and use. Although Facebook says the policy changes aren’t prompted by recent events or tighter privacy rules coming from the European Union, it’s an opportune time. Zuckerberg is set to testify April 10 before a joint hearing of the Senate Commerce and Judiciary Committees, and a day later before the House Energy and Commerce Committee. The two sessions will be his first testimony before Congress. Separately, the US Federal Trade Commission and various authorities in Europe are investigating. As Facebook evolved from a closed, Harvard-only network with no ads to a giant corporation with $40 billion in advertising revenue and huge subsidiaries like Instagram and WhatsApp, its privacy policy has also shifted— over and over. AP

Austria sends record delegation to China

USTRIA is sending its largest-ever trade delegation to China to strengthen the foundation of what the Alpine country sees as a new economic and political order tilting east toward Asia. About 150 Austrian company representatives, led by President Alexander Van der Bellen, will fill a Boeing 777 on Friday headed for Beijing for a week of hobnobbing with China’s economic and political elite. China’s President Xi Jinping is scheduled to hold a working meeting with Van der Bellen on Sunday. “We’ll discuss what the geopolitical shift from a transatlantic world order to a Pacific one means,” Austrian Foreign Minister Karin Kneissl told reporters at a news conference in Vienna. “Regarding the economy, 80 percent of our exports are focused on European markets, so there is room for improvement in Asia—which is much more than China.” Austria’s delegation, which also includes Chancellor Sebastian Kurz, underscores China’s growing role in trade and technology. Austrian executives expect China’s so-called new silk road to spur demand of climate-friendly

technologies like batteries and electric cars. The trade route known in Beijing as the “Belt and Road” initiative has invested than $60 billion in countries participating in the transport network. Austrian companies will present their products for potential customers in the energy, infrastructure, aviation and security sectors. Christoph Leitl, the head of Austria’s chamber of commerce, is accompanied by senior executives from companies, including Erste Group Bank AG, Andritz AG and Red Bull GmbH. Companies are planning to sign about 30 contracts worth €1.5 billion ($1.8 billion) during their visit, Economy Minister Margarete Schramboeck. Austria will increase the frequency of large economic missions to Asia and is planning to present a new export strategy by the end of the year, she said. Chinese companies have also started to take stakes in Austrian companies to gain access to technology and markets. They include FACC AG, a maker of aircraft components; Wolford AG, a luxury knitwear company; and C-Quadrat Investment AG, a Vienna-based asset manager. Bloomberg News

Friday, April 6, 2018

Barclays’s rating cut by Moody’s to lowest investment grade

ARCLAYS Plc.’s ratings were cut by Moody’s Investors Service, citing concerns about earnings at the investment bank after the British lender split its riskier trading activities from its retail operations. Barclays’s overall debt rating was cut to one level above junk by Moody’s on Wednesday, which said the bank will face “on goi n g prof it a bi l it y c h a l lenges” on top of the negative i mpac t of r i ng- fenc i ng. T he bank ’s €1 billion ($1.2 billion) of 1.375-percent senior unsecured bonds were little changed on T hursday, largely because executives had f lagged a likely downgrade earlier in the year, analysts at Investec Plc. said.

Credit ratings for some of the biggest United Kingdom banks have been hit by the post-crisis rules, known as ring-fencing, which come into force next year, Moody’s said. This is because lenders’ wholesa le and retail arms will have to issue debt independently in future and, therefore, lose the benefits of business and funding diversification, the ratings agency said in the report. Barclays, led by CEO Jes Staley, changed its legal structure

earlier this month to comply w ith the law, which was designed after the financial crisis to protect consumers’ deposits from losses in riskier trading activities, dubbed the “casino” part of banking by lawmakers. Mo o d y ’s s a id t he non - r i n g fenced pa r t of Ba rc l ays w i l l see bigger swings in earnings because of the volatility of its capital markets business. Lower credit ratings can increase a company’s borrowing costs. Barclays has about £14.8 billion ($20.8 billion) of bonds due by the end of 2019, data compiled by Bloomberg showed. Barclays had told investors it hopes to save as much as $1 billion in interest expense over the next year as it refinances expensive crisis-era debt—issued in 2008 when the bank was close to collapse—at today’s much-lower rates, Bloomberg News reported last month.

Moody’s cut Barclays’s longterm issuer and senior unsecured debt ratings to “Baa3,” or one step above junk, from “Baa2.” Rival Deutsche Bank AG is currently rated one notch higher. However, the ratings agency gave the British lender a stable out lo ok a nd h i g h l i g hte d it s “strong franchises in UK retail, business bank ing and globa l c r e d it c a r d s .” S h a r e h o l d e r s shrugged off the news, with the stock up 1 percent at 9.45 a.m. in London. “We’ve been on negative watch for some time and now they’re reviewing the rating,” Finance Director Tushar Morzaria said last month. “It would be a little bit surprising if they decide to review the rating and leave everything where it is.” Moody’s also separately downgraded the ratings of some units owned by the Royal Bank of Scotland Group Plc. Bloomberg News

Oil holds near $63 as crude stocks drop, trade tensions abate

IL held near $63 a barrel after US crude stockpiles declined and trade tensions between the United States and China showed tentative signs of easing. Futures were little changed in New York. US oil inventories shrank the most since January, according to government data on Wednesday, in contrast to a forecast expansion. Risk assets, including equities, rallied as Chinese and American officials indicated they’re willing to negotiate on escalating frictions, helping to calm fears that a trade war could derail the strongest global growth in years. The decline in US stockpiles has boosted optimism that surging shale output may not thwart Organization of the Petroleum Exporting Countries’s (OPEC) efforts to drain a glut. While prices have been buoyed by America’s potentia l w it hd rawa l f rom a nuclear deal with Opec producer Iran, a gathering trade conf lict

between the US and China—the world ’s two largest economies— has kept a lid on gains. P r ice s a re b e i n g a f fe c te d by “a bullish oil-inventory report” from the US, said Michael Poulsen, an analyst at Global Risk Management Ltd. We s t Te x a s I nt e r m e d i at e (W TI) for May delivery fell 4 cents to $63.33 a barrel on the New York Mercantile Exchange as of 10:36 a.m. in London, after dropping 14 cents on Wednesd ay. Tota l volume traded on Thursday was about 23 percent below the 100-day average. Brent for June settlement declined 2 cents to $68 a barrel on the London-based ICE Futures Europe exchange, after slipping 10 cents on Wednesday. T he global benchmark crude traded at a $4.70 premium to June WTI. US storage dropped by 4.62 million barrels to 425.3 million barrels last week, while outbound shipments of crude

Gold seen rising as Canadian miner eyes lack of exploration

ILLION prices are set to climb because there’s been a lack of exploration and the global industry isn’t replacing the reserves it’s been mining, according to Stephen Letwin, CEO at Iamgold Corp. “Gold has a much-higher probability of moving north as opposed to south,” Letwin said in an interview at a mining conference in Hong Kong on Thursday. “I’ve been around a long time; when you’re in an industry that’s not replacing what it produces, eventually, the price has to move up.” The producer-funded World Gold Council has estimated that world supply may have peaked, while Frank Holmes, CEO of US Global Investors Inc., said this week that mine supply topped out in 2017 or will do so this year. Combined with understated inf lation and strong demand from China and India, this could help boost prices to $1,500 an ounce by the end of the year from about $1,327 now, according to Holmes. Toronto-based Iamgold is seeking to increase production to 1.35 million ounces in four years from about 875,000

ounces, through more exploration near existing mines and by ramping up its Westwood operation in Canada, Letwin said. Exploration had yielded some significant discoveries at Rosebel in Suriname and Essakane in Burkina Faso. All-in sustaining costs are going to drop to about $800 an ounce from around $1,000, he said. The company spends about $45 million a year on exploration, and isn’t looking into acquisitions, unless they are really compelling, said Letwin, who’s had close to three decades of experience in the oil and gas industry and been in the mining sector for the past eight years. Iamgold has other development and exploration projects that may come on stream from 2021, he said. I a mgold h a s hedged it s exposure on oil to 2022 and ta kes protection on Canadian dollars and euros, but it doesn’t hedge gold, Letwin said. “Our shareholders are buy ing our equit y because they want exposure to gold.” Bloomberg News

expanded to a record, according to an Energy Information Administration report Wednesday. The EIA data also showed that American oil production rose to an unprecedented 10.5 million barrels a day, topping the 10 million-barrel level for a ninth week. Global markets from equities to oi l recovered af ter investor optimism grew that the US and China w ill step back from the brink of a trade war. T he Asian nation said on Wednesday it would lev y an additional 25-percent tariff on about $50 billion of US imports, following which the W hite House National Economic Council Director Larr y Kudlow spent much of the day tr ying to calm markets.

The two countries still have time to work out their differences, he said, while China’s ambassador to the US, Cui Tiankai, also said his first choice would be to consult the US over trade. Proposed tariffs on China’s imports of A merican propane probably won’t hurt US companies as much as intended, si nce C h i nese buyers sig ned long-ter m contracts t hat inc lude high fees for brea k ing the agreements. K azakhstan’s cash-strapped state oil company generated another $1 billion in prepay ments by extending a crude-supply contract w ith Vitol Group. Gasoline futures fell 0.2 percent to $1.9726 a gallon, after adding 0.1 percent on Wednesday. Bloomberg News

Banking&Finance BusinessMirror

A8 Friday, April 6, 2018 • Editor: Jun B. Vallecera

Asean seeks to mobilize private capital for infrastructure

inance Secretary Carlos G. Dominguez III and finance ministers from across the Asean will be meeting with investors in Singapore to find ways of mobilizing private capital for infrastructure development in the region. The Asean is the sixth-largest economy and collectively the third-largest in Asia, according to the Department of Finance (DOF). Dominguez took part in the 8th World Bank-Singapore Infrastructure Summit ahead of the Asean Finance Ministers’ and Central Bank Governors’ Joint Meetings that started on Thursday. Chaired this year by Singapore, the 2018 Asean Finance Ministers’ and Central Bank Governors’ and Related Meetings on April 5 and April 6 will focus discussions on enhancing the region’s resilience to natural disasters, as well as cybersecurity risks. Dominguez will also join fellow finance ministers and Asean central bank governors at the regular meeting of the US-Asean Business Council to discuss innovations in digital finance, capital markets development and insurance. The World Bank estimates that infrastructure needs of emerging economies in Asia require around $26 trillion until 2030, including $3.4 trillion worth of programs to mitigate the effects of climate change. The Philippines chaired the Asean last year during its golden anniversar y, and the 2017 sessions of the region’s finance ministers and central bank governors held at the Shangri-La Mactan Resort in Lapu-Lapu City. The Asean was established on August 8, 1967, in Bangkok with five founding members the Philippines, Indonesia, Malaysia, Singapore and Thailand. It has since expanded to include Brunei Darussalam, Vietnam, the Lao PDR, Myanmar and Cambodia. It established the Asean Economic Community, which officially commenced on December 31, 2015, to create a single market and production base within the region through the free f low of goods, skilled labor, services and investments among its 10 member-states. Rea Cu

Moody’s cites asymmetrical bank loan, capital growth

By Bianca Cuaresma @BcuaresmaBM

nternational credit watcher Moody’s Investors Service has flagged the doubledigit loan growth across banks in the country as potentially problematic, as the strong credit expansion is beginning to tell on the banks’ capital.

Moody’s said increased revenues from strong loan growth are insufficient to cover the industry’s rapid asset growth. In a report on Thursday, Moody’s Vice President and Senior Analyst Simon Chen said rising credit costs and the implementation of new financial reporting standards are to weigh on the banks’ capital. “Banks’ internal capital generation is not sufficient to support the current pace of loan growth, limited by low cost efficiency,” Moody’s said. Credit growth averaged 19 percent in January and gained even more speed the following month, when this expanded by 19.5 percent. “The implementation of the Philippine Financial Reporting Standards 9 [PFRS9] will also re-

Officials bare Q1 fiscal performance

he Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) reported higher revenue collection in the first quarter by 16 percent and 24 percent, respectively. “[The] first-quarter collection of the BIR and BOC increased by 16 percent and 24 percent, respectively, over the same period last year. Disbursements grew by 31 percent for the same period,” National Treasurer Rosalia V. de Leon said. During the period, the BIR collected P429.66 billion, up 16

percent, from P370.404 billion in the same period in 2017. Its full-year collection target this year amounts to P2.039 trillion. Revenues col lected by t he BOC hit P129.08 billion in the first quar ter, up 24 percent, from P104.13 billion reported in the same period in 2017. Its target this year was set at P598 billion. Finance Secretary Carlos G. Dominguez III attributed the increase to the rollout of the government’s “Build, Build, Build” (BBB) program and the imple-

mentation of the Tax Reform for Acceleration and Inclusion (TR AIN) signed into just last year. “Our BBB and TRAIN programs are working as planned,” Dominguez said. Disbursement during the period reached P806.4 billion, up 31 percent, from P615.362 billion in the same period last year. E a rl ie r, Bud ge t S e c re t a r y Benjamin E. Diokno expressed optimism in achieving the 2018 expenditure program of P3.364 trillion. Rea Cu

RBI keeps rates unchanged

ndia’s central bank kept interest rates unchanged for the fourth straight meeting and cut its inflation forecast citing lower food prices, sparking a renewed rally in the bond market. Reserve Bank of India (RBI) Governor Ur jit Patel and his monetary-policy committee retained the benchmark repurchase rate at 6 percent on Thursday, as predicted by all 42 economists in a Bloomberg survey. Five of the six-member MPC voted for the decision, while one sought a hike. “Overall food inflation should remain under check on the assumption of a normal monsoon and effective supply management by the government,” the RBI said in a statement in Mumbai. It retained its neutral policy stance. The decision helped extend a

rally in the bond market, triggered last week by the government’s decision to cut its first-half borrowing plans and after the RBI on Monday allowed lenders to spread their debt market losses over four quarters. The yield on the benchmark 7.17 percent sovereign notes maturing 2028 fell 11 basis points to 7.19 percent. The rupee gained 0.3 percent to 64.9750 per dollar and the main equity index was trading up 1.7 percent as of 3:15 p.m. in Mumbai. Patel said fiscal slippages from the federal, as well as state governments, and a below-normal monsoon meant that risks to inflation were on the upside. Companies polled by the RBI said input and output prices were rising and this could be passed on to consumers.

Key points

n Cuts inflation forecast for first-half of fiscal year started April 1 to a range of 4.7 percent to 5.1 percent from 5.1 percent to 5.6 percent; second-half forecast at 4.4 percent from 4.5 percent to 4.6 percent n Reiterates commitment to keep inflation at 4 percent in medium-term n Sees GDP growth at 7.4 percent in fiscal 2019, from 6.6 percent the previous year, “with risks evenly balanced”; n RBI warns rising trade protectionism and financial-market volatility could derail global recovery; says Indian companies and banks must continue cutting debt; and n Central bank exploring creation of a digital currency; forms panel to study and submit report by June.

Research shows industry leaders struggle to balance digital innovation and security

kamai Technologies Inc., the world ’s largest and most-trusted cloud delivery platform, recently released data showing how companies st r ug g le bet ween adv a nc i ng digital innovation and ensuring secure digital experiences that maintain user trust and mitigate risk. As part of a commissioned study of more than 350 global information-technology leaders conducted by Forrester Consulting on behalf of Akamai, the results also show that companies defined as being the most digitally mature—best balancing innovation and security—grow faster than their competitors. As the world’s largest and mosttrusted cloud delivery platform, Akamai has delivered approximately 95 exabytes of data a year across billions of devices. Top financial institutions, online retailers, media and enter-

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tainment providers, and government organizations have leveraged the power of Akamai’s cloud platform to deliver exceptional digital experiences to customers. As a result, Akamai has seen firsthand the critical intersection of user experience and digital security, and how it ultimately impacts customer behavior. “With the help of this research by Forrester, Akamai has created a way to evaluate how digitally mature a company is, based both on the effectiveness of its digital experience and the strength of its security posture,” said Ari Weil, vice president of product marketing of Akamai. “It is imperative for these innovators to strike a delicate balance between seamless digital experience and comprehensive security. We think our research shows how companies are achieving, or struggling to reach, that balance and Akamai is ready to help usher

any organization along a path to digital maturity.” Digital innovation, Weil said, sits at the helm of today’s complex enterprise environment. The Forrester study indicates that delivery of digital experiences is critical to competitive edge, customer satisfaction and even more importantly—achieving customer trust. For any given enterprise organization, meeting unique customer needs is a challenge—addressing disparate regions, network connectivity and device usage has complicated the ability to deliver secure, personalized digital experiences. The study examines how digital businesses across the globe and various industries align overall user experience and security with strategic priorities. Findings from the survey research include: n Digital struggles are a real-

ity: A high number of executives reported difficulty in achieving the proper balance between security and digital experiences. Most respondents feel as though their firm is strongest in security and trust, but weakest in digital experience maturity. n Trust is at an all-time low: More than one-third of surveyed executives feel they only have a moderate level of trust from their customers, due in large part to suspicion around a company’s data use practices. n Lack of trust attributed to lack of security, equates to lack of revenue: Customers are more comfortable sharing data with companies they actually trust; when firms fail to deliver on security, their brand reputation, customer trust and even revenue are negatively impacted. In fact, the study notes that even suspicion of a company’s data-use practices can lead to a 25-percent reduction in revenues.

duce capital levels, though slightly, because banks will need to cover additional provisioning charges with retained earnings,” it added. The new reporting standard, which parallels the International Financial Reporting Standard 9, was first implemented in January this year. But while the impact of the strong loan growth on the banks’ capital had its unintended consequence, bank profits have been significantly higher during the period. Moody’s said the robust loan growth of Philippine banks pushed core earnings higher and boosted profitability in 2017. “Most banks posted loan growth of 15 percent to 19 percent, driven by demand from consumers and do-

mestic businesses, and under strong macroeconomic conditions,” the global credit watcher said. It further said revenue prospects this year should prove higher than in 2017, as net interest margin improved after having largely steadied last year. The improvement, when combined with continued strong loan growth, should further boost the banks’ earnings and profitability. Growth in higher-risk loans will also result in the acceleration of the formation of new nonperforming loans (NPL), Moody’s said, but only at a marginal level. “Most banks reported declines in gross NPL ratios in 2017, and loan loss reserves as a percentage of gross NPLs remain high,” Moody’s added.

Boards and effective risk management

isk is an inevitable part of doing business, and boards must consider risk in the preparation of their strategic plans. Board directors are expected to take prudential risk to build up their companies and, thus, increase shareholder wealth. Boards must therefore build an effective management framework as part of their corporate governance responsibilities. Effective governance entails having a control environment that is conducive to effective operation of control activities, and risk should be identified and managed within the context of an enterprise-wide framework. Thus, the board should identify key risk areas and key performance indicators, and monitor these to ensure the effectiveness of internal control. To ensure this, the board of directors are responsible for (1) ensuring that the strategic, operational and financial risks have been exposed; (2) ensuring that the necessary systems are in place to enable such risks to be monitored and managed effectively; (3) establishing that the company has put in place adequate reporting systems and operational and financial internal controls and their associated review functions; (4) ensuring that riskmanagement systems are operating effectively; and (5) ensuring that company policies comply with applicable laws and acts in accordance with the highest financial and ethical standards. Important risk-management strategies should include: n Anticipating and identifying all potential risks; n Identifying the significance of these risks according to likelihood and consequence; n Identifying risks that could affect market position, cause financial setbacks, and/or result in prosecution; n Setting up and ensuring execution of controls to manage the risks; n Formulating and ensuring a contingency plan to mitigate disaster; n Creating and reinforcing a positive culture to manage the risks; n Establishing continuity management control arrangements; n Regularly checking audit compliance with control arrangement; n Regularly reviewing these arrangements as to completeness, relevance, adequacy and effectiveness; and n Ensuring accurate and complete annual reports on risk-control

FINEX free enterprise Mercedes B. Suleik measures to concerned offices. While the board has full responsibility for risk oversight, it may delegate this to the Risk Management Committee (RMC) which is composed of the risk manager, the chief financial officer, the Compliance Officer and the company legal counsel. The RMC is responsible for developing, reviewing, approving and monitoring the risk-management strategies and exposure of the company in coordination with the board of directors. Its two most important qualities are independence and authority. The RMC and the Audit Committee report to the board, as also does the CEO and management. Overall, the board is responsible to the regulators. Additionally, under the Code of Corporate Governance for Publicly Listed Companies issued by the Securities and Exchange Commission on November 22, 2016, subject to a company’s size, risk profile and complexity of operations, the board should establish a separate Board Risk Oversight Committee (BROC) that should be responsible for the oversight of the company’s Enterprise Risk Management System (ERM) to ensure its functionality and effectiveness. BROC, which must have at least three members, the majority of whom must be independent directors, including the chairman, with at least one member who should have relevant and thorough knowledge and experience on risk and risk management, is generally required for conglomerates and companies with high-risk profile. The BROC must report to the board on a regular basis or as deemed necessary, the company’s material risk exposures, the actions taken to reduce the risks and recommends further action or plans as necessary. Note that the Board chairman may not chair the BROC. In the end, it should be remembered that today a company is a complex enterprise engulfed by rapid technological change and fierce global competition. Thus, the board should ensure that its exposure to risk is assessed and monitored regularly in this everchanging environment. merci.suleik@gmail.com

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Napocor bares power projects for Bohol

HE National Power Corp. (Napocor) will put up 19 power-generating sets with an aggregate capacity of 890 kilowatt (kW) to various mini grids in Bohol. Moreover, the state firm said it would add seven new power facilities in the province. This, after Napocor said it now provides round-the-clock power service to Cuaming Island in Bohol, in a bid to entice the local community to engage in small businesses. “Fishing remains to be the No. 1 industry in the island, but then we believe that with 24/7 power, non-fishermen can engage in other means of livelihood in order to boost local trade in the island,” Napocor Acting Manager for Visayas Operations Pete Llorente said. Napocor services 500 households in the island through its Cuaming diesel-power plant, which has a total dependable capacity of 233 kW. Cuaming Island is part of the municipality of Inabanga, Bohol, and can be reached through an hour of boat ride from the port of Tubigon. Napocor has also recently laid the foundation for the construction of a bigger office in Cortes, Bohol, that will cater to its 12 mini grids in the province’s outlying islands. “The establishing of the new and bigger Napocor-SPUG Bohol mini grid office does not only mean that Napocor is here to stay, but it also signifies our commitment to provide efficient service and be Bohol’s partner in progress,” Napocor Vice President for SPUG Edmundo Veloso said.

South Korean firm offers to modernize Port Irene

UGU E G A R AO C I T Y— A South Korean company, through its Philippine subsidiary, has offered to undertake the expansion and modernization of Port Irene in Santa Ana, Cagayan, in a proposal to dredge its harbor and reinforce its pier that would allow large cargo and cruise vessels to dock there. Describing it as “a breakthrough proposal at no cost to the government,” Secretary Raul L. Lambino, administrator and CEO of the Cagayan Economic Zone Authority, said the proposed expansion and modernization would be done by Fairbridge Overseas DevelopmentPhilippines Inc. (Fodpi), the local subsidiary of a South Korean firm of the same name. “It will mark the beginning of the development of Port Irene to its full potential,” Lambino added. Lambino and Fodpi President Kim Myung Hwan signed a memorandum of understanding (MOU) recently, setting the scope of the project. Port Irene in Cagayan’s northernmost tip is the jewel of the Cagayan Economic Zone and Freeport, but poor port conditions and inadequate infrastructure have set back its development using its advantage of being along the Northern Pacific’s major international shipping lanes. The proposed modernization includes dredging of the navigational channel, upgrading of existing piers and wharves and reinforcing the 1-kilometer concrete breakwater and repairing its storm-damaged portions. Under the MOU, Fairbridge would get the sea sand dredged from the harbor and its periphery and use the harbor for its business. Fairbridge planned to contract local labor for the manufacture of building materials made out of sea sand for its mass-housing project and for the importation and local sale of the product. PNA

Editor: Dennis D. Estopace • Friday, April 6, 2018

Tesda chief claims moving to stem corruption in agency

ECHNICAL Education and Skills Development Authority (Tesda) Director General Guiling A. Mamondiong has ordered the reassignment of regional and provincial directors to dispel any rumors of spurious activities. “I apologize to the directors but if only to prove that under my watch there is no corruption, I had to do it and I am doing it,” Mamondiong said. He also warned he would cancel registered programs and sanction technical-vocational institutions (TVIs) from perpetrating corrupt practices.

Mamondiong’s warning came after he sent a memorandum to President Duterte in Malacañang as he vowed to sanction anyone involved in the illegal activity. “In due time, we will be canceling registered programs and sanction TVIs if the inspections, which we have been conducting for the last two months and

hope to complete this April, will reveal anomalies in their respective allocation of scholarship slots and absorptive capacities,” Mamondiong said. Further, he added he instructed regional directors to be the sole authority in distributing scholarship slots to prevent any delays in their implementation, saying the “tendering system” in 2017 caused a delay in the awarding of scholarships to TVIs. “Because the tendering system had caused a delay in the implementation of the scholarship program, the authority to award the scholarship grants has now been delegated to the regional directors,” Mamondiong said. He added he also instructed regional and provincial directors to submit the list of names of the scholarship beneficiaries in their areas for verification and validation in an effort to eliminate the possibility of “ghost scholars.”

Tesda has also been conducting internal audits and technical audits in all registered tech-voc programs nationwide since 2017. Mamondiong said the agency continues to conduct spot inspections at TVIs implementing scholarship programs of the agency to ensure their compliance to the Tesda Code of Conduct and its program on awards and incentives for service excellence. He added that any resolutions of administrative cases should be sped up by coordinating closely with various oversight agencies, non-governmental agencies and international bodies. In 2017 the Tesda chief conducted public consultations in all regions and provinces and announced a P0.5-million reward for anyone who could provide any information regarding illicit activities involving Tesda officials or employees. However, Mamondiong said

“to this date, nobody has come forth with any substantiated complaints.” The awarding of scholarship programs like the Training for Work Scholarship Program and the Special Training for Employment Program (Step) will be strictly monitored in line with the National Technical Education and Skills Development plan 2017 to 2022 and Tesda’s 17-point reform agenda, according to him. The procurement process in the purchase of starter toolkits for the Step will also be stricter, requiring these to be approved by the Tesda Board and crafted to more closely comply with Republic Act 9184. “While we do not claim to have perfect control mechanisms over possible areas of corruption, we remain steadfast in our fight against corruption and our resolve toward providing the best service to our citizens,” Mamondiong added. Claudeth Mocon-Ciriaco

DPWH opens ₧324-M bridge in Bongabong, Oriental Mindoro

OTORISTS traveling to the southernmost part of Oriental Mindoro are now reaping the hundredfold benefits of a new permanent bridge built by the Department of Public Works and Highways (DPWH). President Duterte and Public Works Secretary Mark A. Villar recently led the formal opening of Lisap Bridge along Calapan South Road in Barangay Hagan, in the town of Bongabong and considered to be one of the longest bridge in the province of Oriental Mindoro with a length of 365 lineal meters and approaches of 175 lineal meters. Lisap Bridge was constructed on a higher elevation and with wider lanes designed for a safer and reliable bridge transport

replaces the old Bailey Bridge. Villar said the newly built bridge, with an allocation of P324 million, now serves as a primary route from the municipality of Bongabong to Roxas, bypassing the lengthy circumferential road. “With this new Lisap Bridge, motorists won’t have to endure passing through a long circumferential road nor riding small boats or rafts to cross the dangerous Bongabong River just to reach this innermost part of Bongabong town,” Villar said. In long term, the new Lisap Bridge is expected to improve mobility, gradually increasing economic activities brought about by the flourishing tourism and agriculture in the area.

Displaced workers in Palawan undergo labor orientation

UERTO PRINCESA CITY, Palawan—Some 3,300 people in seven municipalities in Palawan who lost their jobs due to typhoons in December last year are undergoing labor orientation to help them find work. “This is to support Palaweños who lost their jobs due to typhoons in December 2017,” Program Manager of the Provincial Public Employment Services Office (Peso), Richard Rebote said on Wednesday. “We requested the DOLE [Department of Labor and Employment] to provide funds for this and more than P10 million was approved.” Rebote added that the 3,300 are beneficiaries of the “Tulong panghanap-buhay Para sa Ating [employment aid for our] Displaced workers,” or Tupad, initiated by the DOLE, in partnership with the provincial government of Palawan. He said the labor orientation began on April 3, in three southern Palawan towns. These will be held in Aborlan, Narra and Sofronio Española, Brooke’s Point, Bataraza, and Quezon and Rizal. Rebote said the beneficiaries of Tupad in the province were identified by the Municipal Social Welfare and Development Office to ensure they were directly affected by tropical disturbances Vinta, Urduja and Agaton. After the orientation, he said Tupad beneficiaries may either work as road and canal cleaners, tree planters, repairmen of public facilities and other jobs. They will be paid P300 per day or P3,000 for 10 days under the cash-for-work program this month. “Through this, we will be able to help the families of the displaced workers, who were also victims of calamities until they are able to return to their normal lives,” Rebote said. PNA

This photo courtesy of Malacañang shows President Duterte on the lead vehicle for a ceremonial drive on the Lisap Bridge during its inauguration in Bongabong, Oriental Mindoro, on April 3. With the President is Public Works Secretary Mark A. Villar (left), Socorro Mayor Ma. Fe V. Brondial (second from right) and Special Assistant to the President Christopher Go.

DA advisory body OKs P727-M projects for 4 Bicol provinces

EGAZPI CITY—The Department of Agriculture’s (DA) advisory body has approved seven subprojects worth P727 million for four provinces in the Bicol region, among them farm-tomarket roads (FMR) meant to increase farm productivity. T he Ph i l ip pi ne Ru r a l De ve lop ment Project’s (PRDP) Regional Project Advisory Board (RPAB) for Bicol gave the green light to the P198.69million rehabilitation and improvement of the 8.3-kilometer Hacienda-Rawis FMR in Tabaco City, Albay. The PRDP RPAB also approved the P246.30 -mil lion concreting of the 15-kilometer San Agustin-Sawang FMR

in Aroroy, Masbate. The board also endorsed for funding this year two Investments in Rural Enterprises and Agriculture and Fisheries Productivity subprojects worth P11 million for the municipalities of Santa Elena and Labo, both in Camarines Norte. DA Regional Information Officer Emily Bordado said these projects are designed to increase the productivity and marketability of agriculture and fishery products in the provinces of Albay, Camarines Norte, Masbate and Catanduanes, through increased access to information, network and support services. “We expect that the farm and fish-

ery household incomes would increase through engagement in value-adding activities and it would improve the protection and conservation of the natural resource base of identified enterprises through alternative livelihoods and support facilities,” Bordado said in an interview on Wednesday. The RPAB is the body that provides guidance, reviews and approves undertakings for funding under PRDP, which covers the P8.2-billion “Intensified Building-Up of Infrastructure and Logistics for Development” budget from 2018 to 2020. Priority subprojects will still undergo the regular PRDP review process. PNA

Iloilo City opens ₧1.5-M CR inside public market

LOILO C I T Y—A comfor t room inside a public market—the first of its kind in this metropolis— opened at the Iloilo Central Market on Wednesday. Funded by the city government with more or less P1.5 million, the tiled comfort room offers separate provisions for males and females and is also accessible to persons with disability (PWDs). Jose Ariel Castañeda, head of the Local Economic Enterprise Office, said the renovated comfort room will make it “convenient and comfortable” for people frequenting the market.

With the renovation, the septic tank was expanded and a provision for water has been added. The female section has six cubicles and one for PWD, while the male section has five urinals and four cubicles. Castañeda said city hall employees assigned at the market have been tasked to monitor the proper use of the comfort room. The public will not be charged but could extend a donation for the maintenance “until the [market] association is able to organize themselves and take part,” Castañeda said.

He added after the comfort room, they plan to clean up the meat and fish sections. He said he initially spoke with the market vendors about the plan to install display and storage facilities to ensure that their products are sanitary and fresh. Mayor Jose Espinosa III, who led the inauguration, said the Iloilo Central Market will serve as the model for the improvement of Iloilo City’s six other public markets. Espinosa also urged the cooperation of the public in taking care of the facility. PNA

A10 Friday, April 6, 2018 • Editor: Angel R. Calso

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editorial

Financial secrecy Philippine style

T may seem like a long time ago, but it was only in 2015 that the headlines of the world newspapers were splashed with the details of the infamous “Panama Papers.” The leaked documents showed the “hidden wealth” of 12 current or former world leaders, 128 other public officials and politicians, and hundreds of celebrities, businessmen and other wealthy individuals in over 200 countries.

Granted, most of the money was simply being hidden from current or ex wives, boyfriends, business partners and taxing authorities, in a few cases the funds were exceedingly dirty. However, at the end of the day, a few—very few—of the individuals went down. Uruguay arrested five people and charged them with money laundering through shell companies for a Mexican drug cartel. Overall, a number of politicians and government officials resigned and others paid correct taxes, but mostly it was glum faces with very sincere apologies before the television cameras and everyone quickly moved on. Former Prime Minister of Italy Silvio Berlusconi, who had been already convicted for tax evasion and expelled from the Parliament, was included in the papers. Berlusconi is still head of his own political party and is a force to be reckoned with in Italian politics, despite the fact that he is back in court for allegedly paying aspiring showgirls to lie at previous trial in which he was acquitted he paid an underage Moroccan teenager for sex. The lifestyles of the rich and famous. However, the release of this information did create a climate where nations had to examine their own practices of being secure places for dark money. The Tax Justice Network, founded in 2003, is an advocacy group consisting of a coalition of researchers and activists with a shared concern about tax avoidance, tax competition and tax havens. It publishes the “Financial Secrecy Index” which examines which countries attract potential “undiscovered wealth” and an individual nation’s “attractiveness” for that wealth in terms of providing financial secrecy. The Philippines is a very small global player because, for some reason, no one first thinks of stashing the money in the Philippines. We account for only 0.09 percent of the global market for offshore financial services compared to Thailand at 0.13 percent. While we complain that our politicians have the ability to hide all kinds and amounts of hidden wealth, overall, the Philippines is considered relatively “open” in comparison to others. Our score is 65.38 compared to much more secretive Malaysia at 71.93 and Thailand at 79.88. In fact, Thailand is the 10th most financially secretive place on Earth. However, in one category—Legal Entity Transparency—the Philippines has a 100-percent secrecy rating on four out of five factors. We are super financially secret when it comes to Public Company Ownership, Public Company Accounts, Country-by-country Reporting and Corporate Tax Disclosure. Most nations are secretive about who owns which companies and normally should not be a problem. But it might be for the Philippines with our foreign ownership restrictions. If a cap on foreign ownership is good for the country, we should keep it. If it hinders economic development, it should be changed. But because ownership is so secretive, we may not have a clue about how much actual foreign ownership there is of our private corporations. Certainly this is not a critical issue but it is something to think about when making policy. Since 2005

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Sub judice James Jimenez

spox

n an order dated February 13, 2018, the Presidential Electoral Tribunal explicitly declared, “considering that the revision process ìs about to commence, the tribunal directs both protestant and protestee to observe the sub judice rule.” “Sub judice,” of course, literally translates to “under judicial consideration.” It is a rule that, in essence, restricts comments and disclosures pertaining to pending judicial proceedings, as a well settled limitation on the freedom of speech. It encompasses not only the participants in the pending case, including the members of the bar and bench, the litigants and witnesses, but also to the public in general—necessarily covering statements made by public officials.

The central idea behind the sub judice rule is the concept of prejudgment, so it doesn’t prohibit fair and accurate reporting of factual matters, including factual content of ongoing judicial proceedings, in the media. Things become problematic when those facts are used to promote a particular—inevitably partisan —conclusion. Statements like that could then be deemed in violation of this rule, and contemptuous of the tribunal, because they risk prejudging matters or issues

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Continued from A1

he Federation of Philippine Industries (FPI), which I chair, recently had a call on Lapeña. In that meeting, we presented to the commissioner a letter of appreciation for his efforts to raise revenues and curb smuggling and corruption at the ports, citing, among other reasons, his determination to eliminate benchmarking which is illegal, and his strict implementation of the “one-strike policy” for key Customs officials who fail to meet their collection targets. Already, several district collectors down to section heads have been reassigned or reshuffled for failing to meet their targets. Supposedly to deter collusion and avoid familiarization between Customs officials and importers, it seems like Lapeña’s strategy is working well. The BOC is now surpassing its collection targets. We also presented to Lapeña the compilation of my earlier columns about the antidotes to smuggling, which came out in this paper. He candidly acknowledged that the compilation can help the bureau in its anti-smuggling campaign. He is not only sensitive to issues and receptive to suggestions, but most importantly he is righteous and knows what’s best for the government. The

qualities, indeed, of a real and honest public servant. We discussed about an earlier FPI proposal to then-Customs Commissioner Napoleon L. Morales, for the BOC to assert its compulsory acquisition power on grossly undervalued shipment, but which Morales never considered. Should this the BOC mandate be implemented, importers would no longer undervalue their shipment as they would lose a lot of money if their shipment is seized, and later bought by the government based on its undervalued declaration. With our offer to help the bureau in the sourcing of funds for its compulsory acquisition program, Lapeña could now be studying his options.

and placing undue pressure on the tribunal to decide on the issues one way or the other. Having said that, I understand why people choose to ignore the rule, and why some quarters would rather hear—or read about— battling soundbites. It’s certainly more exciting that way and, on a more practical note, probably provides a comforting buffer against an uncertain (or predictable, depending on how you look at things) outcome. I understand, sure, but I disagree. Despite the adrenalin rush of being in a wild-wild-west environment created by ignoring the sub judice rule, the fact remains that it ultimately does not advance the cause of determining the truth about the issues at hand. Quite the opposite. In the meantime, the Commission on Elections (Comelec) will be conducting simulated voting—a mock election—in connection with the 2018 Barangay and Sangguniang Kabataan Elections. The simulation will be held at the Rosauro Almario Elementary School, in Tondo, on

April 21 from 7 a.m. to 1 p.m. To get as close as possible to actual election day conditions, 50 real voters actually assigned to Clustered Precincts 63 and 64, of Barangay 20, Tondo—a total of a hundred voters—will participate in the simulation; the voters will be appearing before Boards of Election Tellers that will also be composed of the individuals who will actually serve on those boards on May 14; and the ballots will be canvassed by same Barangay Boards of Canvassers that will be convened on election day. The simulation is expected to surface any potential issues that may arise on Election Day, allowing them to be addressed well in advance. In particular, the Comelec is concerned that both voters and election workers might experience some confusion about manual election practices and procedures that some have not seen since 2013, and which others—particularly the firsttime voters—might have never been exposed to at all.

We could have talked a lot more about smuggling and trade facilitation with Lapeña, but the few hours we had with the commissioner enabled us to understand the man, his vision and purpose in life. The meeting with Lapeña, on a personal note, gave me a reassuring thought that, finally, there is hope for real change at the Bureau of Customs.

shipment to come across certain arrangements with these Customs officials. If only to avoid being charged for technical smuggling. The BOC should be clear and strict in the implementation of its voluntary disclosure program and that, the moment a notice of audit is sent to an importer, that importer can no longer avail himself of the voluntary disclosure program. After all, voluntary disclosure, to my understanding of the law, would mean the importer himself/herself discovered the undervaluation in good faith, and volunteers to settle with the government the tax deficiency. We could have talked a lot more about smuggling and trade facilitation with Lapeña, but the few hours we had with the commissioner enabled us to understand the man, his vision and purpose in life. The meeting with Lapeña, on a personal note, gave me a reassuring thought that finally, there is hope for real change at the BOC. Kudos Commissioner Lapeña. We are inspired by your dedication and commitment for reforms. And we’ll be here anytime you need help in your crusade for reforms and real change at the BOC. For my next column, I will discuss another interesting topic about Department of Energy Secretary and Philippine Electricity Market Corp. Chairman Alfonso G. Cusi, a principled man who has not only served various administrations, but most important, has always been a real public servant.

We also discussed how the voluntary disclosure provision of the law can be exploited and maximized for its purpose, if only to collect the right duties and taxes. While the purpose of the voluntary disclosure provision is noble, which is to give a chance to importers who may have erred, in good faith, their declared values, the way, however, the voluntary disclosure provision was being implemented by some corrupt Customs officials only lined their pockets, instead of the government gaining from it. These Customs officials made it a policy that importers who have received a notice of audit, but with no indicated specific date of audit yet, can still avail themselves of the voluntary disclosure program. This procedure or policy, whatever it is, practically made a mockery of the voluntary disclosure provision of the law. For all intents and purposes, the notice actually served as a warning to importers with grossly undervalued

Opinion BusinessMirror

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The beginning of new hope

Friday, April 6, 2018 A11

Thinking about this artifice of silence Tito Genova Valiente

annotations

Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

‘T

he Son of Man must be delivered over to the hands of sinners, be crucified and on the third day be raised again.” (Luke 24:7)

As we are on the first week of the Easter Sunday, let us all rejoice that we have been saved from our sins by our Savior Jesus Christ by sacrificing His life in the cross. The resurrection of our Lord Jesus Christ marks the triumph of good over evil, sin and death. This celebration proves that everyone who believes in Him will not perish but have eternal life. And since Easter represents the fulfillment of God’s promises to mankind, it is the most important celebration in the year of our Lord. Recognizing the value of Easter, Manila Archbishop Luis Antonio Cardinal Tagle is inviting all the Catholic faithful to come and join “The Word Exposed: Seeing SIGNS of LIFE in our TIMES” Easter Recollection. Organized by the Jesuit Communications Foundation, Cardinal Tagle will speak about how the faithful can deepen their faith to our Savior Jesus Christ by recognizing the power of

God in overcoming death in order to save us from our sins. Those who intend to watch the event live may avail themselves of the free tickets through Tanging Yaman Stores outlets at Ateneo de Manila University campus, SM Megamall, St. Paul Bookstore (SM North Edsa), the Chancery of Arzobispado de Manila in Intramuros, Manila, and at the Radio Veritas station on West Avenue, Quezon City. To learn more about the event, visit www.jescom.ph or call the Jesuit Communications Foundation line (+632) 426-5971. To know more about Caritas Manila, visit or follow us on Facebook: CaritasManilaInc. For your donations, please call our DonorCare lines 5639311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph and follow its Twitter and Instragram accounts @veritasph and YouTube at veritas846.ph. For comments, e-mail veritas846pr@gmail.com.

Are we becoming a country of inequality? Edgardo J. Angara

he Philippines has had the longest representative government in Asia. In 1902 the Philippine Bill established an elected unicameral national assembly. And in 1916, the Jones Act created a Senate composed of senators elected from senatorial districts. That representative system continued to this day, with the exception of four years of Japanese occupation during World War II. How come, despite the Filipinos’ experience in electoral democracy, we never made it economically? At one point, we were even branded as the “Sick Man of Asia.” Where did we fail? When the United States of America pulled out in July 1946, the US military created war surplus depots in several locations where trucks, jeeps, generators and other valuable equipment were deposited. ThenSenate President Jose Avelino, whose island province of Samar had one of the largest depots, sounded the prevailing mood of the time: “What are we in power for?” For there were allegations that powerful people were looting the contents of the surplus depots. To stop rampant corruption that energized the Communist insurgency whose armed component was called HUKS, under Luis Taruc, Ramon Magsaysay—the then-defense secretary—ran and won as president. His winning vice president was Sen. Carlos P. Garcia of Bohol. President Magsaysay died in a plane crash in March 1957. In the presidential election of 1961, Pampanga Rep. Diosdado Macapagal won as president. In the 1965 presidential election, Senate President Ferdinand Marcos defeated President Diosdado Macapagal. President Marcos won reelection in 1969. And two years later, he proclaimed martial rule that shuttered Congress, the media and the political parties. In February 1985 People Power

The Gini coefficient of the Philippines is 0.49 using the 2015 Family Income and Expenditure Survey, according to Dean Ronald Mendoza of the Ateneo School of Government. Compared with China, India and the majority of Southeast Asia, the Philippines has a higher degree of inequality. Hence, the Philippines needs to rebalance its development goals. overthrew the Marcos one-man regime. Competitive elections returned in 1988 for Congress, and in 1989 for local government. And that system prevailed to this date. With one exception: as the traditional political parties disappeared, the era of political butterflies began. Forbes recently published the 10 richest Filipinos for 2018. Their combined wealth totaled $52.8 billion. The total wealth of 10 Filipinos is larger than the assets of 30 million Filipinos. The Gini coefficient of the Philippines is 0.49 using the 2015 Family Income and Expenditure Survey, according to Dean Ronald Mendoza of the Ateneo School of Government. Compared with China, India and the majority of Southeast Asia, the Philippines has a higher degree of inequality. Hence, the Philippines needs to rebalance its development goals. E-mail: angara.ed@gmail.com| Facebook and Twitter: @edangara

he long holiday caught me stuck in Manila. I got tired checking the availability of buses. Forget about flying for the tickets seemed to have flown away, too. On Wednesday of the Holy Week I stepped out of our apartment and saw a few cars. On Thursday the next day, the streets were empty. I was tempted to take photos of the streets of this big city that were clean and clear. The city, I told myself, is beautiful without the people. It felt like a gift.

Silence was a power bestowed on me last week. It was good. I felt like a god. This is not faith but presumption: I have not asked or talked to a god who could tell me silence was indeed a gift for and from them. But I assumed if there was a benefit being a god, it was that the god could stay away, be silent, and not be blamed for being away. He is also not blamed for being silent, for not responding. In fact, our prayers work because of the stillness that happens during the moment we utter our pains, our joys, the sorrows that make us tremble and give in to that silent space. Silence always comes with a prayer. One is not expected to be able

to pray unless one is able to create stillness around him. We were not taught to ask from the Almighty to bring us to a pause. It is our task to pause. We try very hard to stop, so that we could pray and listen to the god who is far away. We are not bitter that our gods are far. Distance is their prerogative and there is silence in that distance. We keep our silence hoping that we could hear the arrival of the gods. They are not always around and we know the reason for that—we are full of noise and not of grace. By Friday last week the world came to a halt. But this was only for those who got stuck in the big city.

Old boomers never die

By Ross Douthat | New York Times News Service

ike all things in this Trump-deranged era, the remarkable ratings success of the rebooted Roseanne, a show that last aired when I was 17 years old but commanded a larger audience in its return than any sitcom now on network television, has unleashed a thousand takes about the show’s political significance.

Who’s going to win Roseanne voters in 2018? Can Hollywood entertain Trump country without betraying its principles? Is the proTrump Roseanne Barr an oracle or a conspiracy theorist? Can a member of the #Resistance watch Roseanne in good conscience? All of these takes are, I’m sorry, tiresome. So let’s try to analyze the return of the Conner family in strictly cultural terms, without directly referencing the present occupant of the White House. The show’s skyhigh ratings probably owe something to Roseanne’s political views and blue-collar goddess reputation, but above all they are a case study in the power the baby boom generation still wields, even as it begins to enter old age, over our collective cultural imagination. And not only that: They testify to the extent to which the boomers, for all the destruction trailing in their wake, might be the only thing holding American culture together at this point. That’s because if the boomers were destructive, they were also creative. Indeed, you can make a reasonable case that theirs was the last great burst of creativity in Western history, the last great surge of mass cultural invention. The boomers were the last generation to come of age with some traditional edifices still standing, the old bourgeois norms and Christian(ish) religion and patriotic history, which gave them something powerful to wrestle with, to rework and react against and attempt to overthrow. And because they came of

age within a stable-seeming (though not for long) common culture, their revolution was experienced as a communal experience itself, something that united millions of people simply by virtue of their being young and Western in 1965 or 1969 or 1975. In an essay on “Golden Ages” in his Prejudices: Philosophical Dictionary, Robert Nisbet argued that a great period of ferment and achievement often features a “dialectical antinomy.” This is a fancy way of saying that you need ideas and trends and forces in tension with each other (community and individualism, the secular and the sacred, new ideas and settled consensus, younger and older generations) to ignite what he calls “the blaze of creativity.” We can debate just how golden their achievements really were, but in hindsight his description applies to the period of the boomer takeover—it was the tension between a multitudinous younger generation’s utopianism and libertinism and mysticism, and an older generation’s attachment to patriotism and family and religion that shaped and stamped the rise of rock ‘n’ roll, the rebel cinema of the 1970s, the New Age reinvention of religion, the New Journalism and the postmodern wave in the academy and the libertarian ascendancy in the GOP and more. In the movies and television, this tension led to an extended reworking, deconstruction and reinvention of classic American genres (the Western, the war movie, the

Already, by Monday and Tuesday, everyone had bags with them. Everyone was going to the airports and the bus stations. These people were not looking for silence because if they were, they could have stayed in the big city. They were looking for a place where noise and reverberation were allowed and not taboo. It is interesting to ask if an omnipresent divinity could manifest his or her presence in a place, by the infinite sea, on a land where people have decided to move away from silence. Silence has become a commodity. This is good for those who have money to buy stillness. It is good business for those who have the entrepreneurial spirit to manufacture a grand, lovely pause. The

gangster flick, the sitcom), something that happened first in cinema and then extended more gradually into TV. What we often think of as two golden ages—the auteur years in 1970s Hollywood, and then the more recent golden age of television—are really part of the same generational takeover; it just took longer for boomer influence to work itself out on the small screen. But it did eventually: what David Chase did with The Sopranos and David Simon with The Wire, and before them figures like the late Steven Bochco and Matt Groening and, yes, Roseanne Barr, was all an extension and an echo of the era-defining pop cultural ferment that began in the 1960s and took off in the 1970s. But now we are in the twilight of that era—and it is not at all clear that the boomers’ successors are prepared to react against boomer hegemony with anything like the same creativity and vigor. In part that’s because technological and social change has left the rising cohorts of Americans fragmented, polarized, alienated from one another, too divided by belief and taste and language to build something new together. And in part it’s because the boomers themselves contributed mightily to fragmentation, leaving too little standing when they tore things down and rebuilding haphazardly and selfinterestedly, bequeathing a spirit of transgression and permanent revolution that’s run out of things to deconstruct and is either feeding on itself, lapsing into torpor, or generating niche forms of radicalism on the further left and right that are too weak as yet to produce revolution or renewal. (Indeed, it is not a coincidence that conservatism, itself decadent in this late-boomer dispensation, is desperate to claim boomer culture for its own—think

of Ted Cruz’s love of The Simpsons or the new pro-Roseanne ardor on the right.) As Nisbet writes in the same essay, golden ages give way to ages of iron very easily. “If there is no community,” then “there is nothing to challenge, nothing to fuel the dynamism” required for a golden age, and if there is nothing but transgression and dissent, there is nothing to give acts of transgression the “purpose, substance and meaning” that make them something more than just puerile self-indulgence. Both problems define our age; everyone fancies themselves a rebel, even Sean Hannity and Donald Trump, but the traditional forms and structures that would give rebellion purpose and clarity exist only as effigies to be torn down in ritual reenactments of the original revolution, now decades in the past. And so we just keep returning to boomer culture—revisiting its glorious victories or simply replaying its greatest hits. The same week that Roseanne hit it big, the No. 1 movie in America was Steven Spielberg’s Ready Player One— an aging boomer director telling a story saturated in nostalgia for the pop culture that defined his peak artistic years. And the big Easter television event was the live performance of Jesus Christ Superstar, a musical that the baby boomer Andrew Lloyd Webber wrote at the tender age of 22, in a world where a rock-opera retelling of the passion still had a Christian culture to draw from, react against, enlighten and offend. No longer: Now it’s just boomer culture all the way down. And since that culture is, for all its creaking repetitiousness, our only common culture at this point, it would not be surprising if we find ourselves still clinging to it even once its progenitors are gone.

Martin Luther King’s imperiled vision

he 50th anniversary of the assassination of Martin Luther King Jr., like previous anniversaries, will be used as a measuring stick. How far has America come from King’s era? How far must it still go to realize his vision of justice and comity? It’s a useful exercise, but it also risks reducing King’s vision instead of enlarging it. The pursuit of justice has never been tidy or linear. It advances and recedes, pushed and pulled by political and popular engagement. In the moment, it can

be difficult to tell which way the nation is headed. The presidency of Barack Obama was an extraordinary historical marker. It also engendered a backlash that helped elect his successor. Donald J. Trump’s presidency, in turn, has helped to energize mass mobilizations on behalf of women’s empowerment and gun safety. Not all retrograde motion is self-defeating. Those young people who marched last month for saner gun laws owe a historical debt to King’s 1963 March on Washington for Jobs and

Freedom, where he delivered his “I Have a Dream” speech. That dream is easily rendered as cliché. But it remains both inspiring and practical, and neither aspect should be discounted. King’s protests —strategic, disciplined, dramatic and morally unambiguous—created a vibrant template that is still used to spur collective action. King’s rhetoric, meanwhile—“Injustice anywhere is a threat to justice everywhere”—asks Americans to make a conscientious effort to elevate moral character over tribal allegiance.

preservation of stillness is yet to be declared a world heritage, perhaps, because there is no sense doing that. Last week, thus, I wanted to write about how beautiful the city is when its people—or a large number of them—travel away. But something stopped me. There was something quite bitter and sad about the thought that I was happier because people—or all of my neighbors at least—were gone. A week from now, I may go on a retreat. I will be alone. I will be silent…if only to listen to the words of this world and, maybe, just maybe, find a force so divine it need not be rediscovered in silence. E-mail: titovaliente@yahoo.com.

King’s vision, rooted firmly in American history and aspiration, requires dignity for all, malice toward none. In 2018, with the US polarized by partisanship, race, culture and wealth, it is a vision under constant threat. It will always be important to measure personal and societal progress on King’s scale. But on the 50th anniversary of his death, the nation has a more fundamental and pressing task: to secure King’s vision of justice and mutuality at the center of American greatness. Bloomberg View

2nd Front Page BusinessMirror

A12 Friday, April 6, 2018

DOTr not taking shortcuts in evaluating competing proposals for Naia upgrade

By Lorenz S. Marasigan

@lorenzmarasigan

he Department of Transportation (DOTr) assured that it will follow legal protocols relating to the approvals process of unsolicited proposals, particularly for the redevelopment of the Ninoy Aquino International Airport (Naia), after one party raised concerns over the possible tarnishing of the process. Goddes Hope O. Libiran, director for Communications at the DOTr, said the agency will follow a “clear and transparent process” in evaluating the proposals of Megawide Construction Corp. and rival Naia Consortium. “We will follow proper procedures in evaluating proposals,” she told the BusinessMirror. Wednesday saw Louie B. Ferrer, an authorized representative of Megawide and its partner GMR Infrastructure Ltd., urging the Naia Consortium to play by the book and respect the process of determining the best option between the two unsolicited proposals for the Naia’s expansion. “The process has been set by the government and provided by law. It is there to ensure a clean and transparent tender. As members of the private sector, we must set an example and to work together even in competition, for the development of the Naia and the country,” he said. On Tuesday Naia Consortium Spokesman Jose Emmanuel P. Reverente appealed to the

government to fast-track the approvals process of his group’s P350-billion unsolicited proposal for the Naia. While citing figures on how a more efficient and expanded Naia could lead to significant growth in GDP, he said the group should receive the notice to proceed “by late this year” to enable the group to deliver on its proposals. Reverente declined to comment on Ferrer’s statement. For now, the transportation department is reviewing which of the two proposals would be most beneficial for the public. According to Libiran, the transportation department will have about four months to complete the evaluation, provided that the proposals are complete. “ W h e n t h e d o c u m e nt a r y requirements are complete, we are mandated by law to finish the evaluation process in not more than 120 days. If there is a lack in requirements, the process of evaluation will be longer,” Libiran explained. She added a proposa l may

be returned to the proponent, should the department find it disappointing. “If the proposal is deficient, we will have to return it, and then, if they will resubmit, we will start again from day zero,” Libiran said. Due to their nature, unsolicited proposals are required under law to go through several approvals processes, including a review by the implementing agency and an evaluation by the several bodies of the National Economic and Development Authority (Neda). Under current rules, unsolicited proposals are also required to undergo a Swiss challenge, which essentially allows other groups to outbid the original proponent of the project. The original proponent, however, has the option to submit a counteroffer to win the challenge. The winner of the challenge will be determined after the Neda Board, currently chaired by President Duterte, has evaluated the challenger’s offer, and the original proponent’s counteroffer. Hence, the process could go for as quick as six months to over a year, and as long as almost a decade, as in previous cases. Naia Consortium’s P350-billion proposal involves expanding and interconnecting the existing terminals of the Naia, upgrading airside facilities, and the development of commercial facilities. Divided into two phases, the group’s proposal aims to increase the capacity of the Naia to about 100 million passengers per year. It also plans to construct a people mover that will link Naia’s terminals to existing transport systems in Metro Manila. Actual work will take 24 more

months for the first wave of immediate expansion. Further expansions are planned to meet projected passenger dema nd moving forward. The offer carries a concession period of 35 years. On the other hand, Megawide’s offer involves a more affordable $3-billion price tag with a shorter concession period of 18 years. The multibillion-dollar proposal is divided into several phases, of which the first six years of the operations would focus on the expansion of the existing terminals, the optimization of the current runways and the capacity expansion of the whole airport complex. Immediately upon takeover, the group proposes to construct fulllength parallel taxiways for both runways, an additional rapid-exit taxiway for the primary runway, the extension of a second runway and the provision of maximum aircraft stands. These solutions will increase airfield capacity to 950 to 1000 aircraft movements per day, a 35-percent increase from the current 730 aircraft movements daily. Within the first two years, the group will rehabilitate and expand the existing terminals, which will roughly double the space and result in over 700,000 square meters of terminal area. By that time, the airport will be able to handle as much as 72 million passengers annually, a huge

jump from the current 30-million annual passenger capacity. Megawide President Edgar B. Saavedra said there are two scenarios that the group foresees the government might take. “The first one is within 30 days, if there are two proposals, the government can choose which one is superior and use that to determine whom to award the original proponent status,” he said in an interview. Or, the government may choose to combine the salient points of the two proposals and bid out the project as a government deal. “The government can decide to tender it out, just like what happened in Clark to make it fair to all parties,” Saavedra said. Both groups found the need for the expansion and modernization of the Naia as “urgent,” noting recent statistics released by t he Ma ni l a Inter nat iona l Airport Authority. The Naia has reached its peak, handling 42 million passengers last year, way above its maximum capacity of 35 million passengers annually. This year the throughput is expected at 44 million. Avelino L. Zapanta, a wellknown aviation expert in the Philippines, however, finds the proposals as either not viable or lacking (See “Two proposals for Naia upgrade fail to impress Filipino aviation expert,” in the BusinessMirror, March 27, 2018)

When the documentary requirements are complete, we are mandated by law to finish the evaluation process in not more than 120 days. If there is a lack in requirements, the process of evaluation will be longer.”—Libiran

Grab, Uber reject PCC order for status quo Continued from A1

beyond April 8, the date that it is expected to take a complete exit from the Philippine market. “The parties have to maintain the independence of their business operations and other conditions prevailing prior to March 25, which include, among others, ride-hailing and delivery platforms; pricing and payment policies, including incentives and promotions to riders; product options; customer and rider database; and on-boarding of new partner drivers, as well as fees, charges and incentives

Neda. . .

Continued from A1

Food Authority (NFA) to focus on ensuring buffer stocks for rice.“Without this measure, containing food-inflation pressures will be a challenge given the diminishing rice stocks,” Edillon said. The Neda said the country’s total rice inventory, inclusive of stocks from households, commercial warehouses and NFA depositories, registered a marked drop to 1,795.78 thousand metric tons (MT) as of February 1, 2018. Edillon noted that, while the 250,000 MT of imported rice scheduled to arrive next month will momentarily boost the NFA stockpile, this will not be able to meet the country’s rice demand in the succeeding months. Edillon said inflationary pressures from other agricultural food items must be managed as well, while at the same time anticipating developments in

to partner drivers,” Quimbo said during the public hearing. Likewise, the possible measures may require both parties to refrain from providing access to confidential information, such as pricing, formulas, incentives, operations, marketing and sales policies, promotions, partner drivers and customers. They may likewise be ordered to stop from imposing exclusivity clauses, lock-in periods and/ or termination fees, and from performing any act that may lead to reduced viability and salability of the parties’ businesses. Continued on A2

international oil markets. “Given the risks, we really need to be anticipative and proactive in implementing measures to ensure price stability and cushion the impact of higher consumer prices on the poor,” Edillon said. The PSA reported that inflation was highest in Metro Manila or the National Capital Region (NCR), where prices surged 5.2 percent in March 2018. In the previous month, inflation settled to 4.7 percent and in March 2017, 3.9 percent. The uptrend was due to higher annual increases recorded in the indices of eight out of the 11 commodity divisions. In Areas Outside of NCR, inflation was also high at 4.1 percent in March. The annual rate in the previous month was posted at 3.6 percent, and in March 2017, 2.9 percent. The PSA said faster annual add-ons were observed in all the commodity groups, with the transport index registering a slower annual growth of 4.4 percent. Meanwhile, Bangko Sentral ng

beating the summer heat After a day in school, local kids join their families beat the summer heat and enjoy the cold water along Playa Ilaya in San Juan, Batangas. ROY DOMINGO

Pilipinas (BSP) Governor Nestor A. Espenilla Jr. said they are “closely monitoring the situation” following the surge in inflation in March. “The coming task of the Monetary Board is to carefully evaluate the appropriateness of a measured policy response to firmly anchor inflation expectations in line with our forecast that inflation targets will continue to be met in 2018-2019,” Espenilla said. “This can allow as well for orderly adjustment in market rates and in the peso. We are closely monitoring the situation,” he added. In their most recent monetary policy-setting exercise on March 22, the BSP said inflation is expected to average 3.9 percent for 2018 under the new 2012 base year consumer price index computation, and to further go down to 3 percent by 2019. In the same meeting, the BSP maintained its policy rate at the status quo of 3 percent, saying while upside

pressures to inflation remain, expectations are anchored within the 2-percent to 4-percent target range. This prompted some economists and analysts to say that the BSP is falling behind the curve and will need to tighten its rates soon to control the rise of consumer prices. Nevertheless, the BSP remained confident that inflation will “average near the high end of the target range in 2018 before decelerating further to the midpoint of the target range in 2019” as indicated in their formal statement following the inflation announcement. “The elevated path of inflation in 2018, along with rising inflation expectations, will be continually be assessed to guard against potential secondround effects from developing and inflation becoming broader based,” the BSP said. “Nevertheless, nonmonetary measures, such as institutional arrangements in setting transportation fares

and minimum wages, unconditional cash transfers, as well as transport subsidies, are expected to help mitigate these inflationary impulses,” it added, explaining that the proposed reforms in the rice industry could also help temper price pressures. The BSP’s statement also reiterated the monetary board’s data dependence in formulating future monetary policy. “The BSP will remain vigilant in evaluating price conditions and is ready to take appropriate measures as necessary to ensure that inflation over the policy horizon remains consistent with the target,” the BSP said. “The inflation data today tells you that consumer price rise is broader than originally thought,” said Euben Paracuelles, an economist at Nomura Holdings Inc. in Singapore. “Rate hikes are on the cards probably as early as May. The case for BSP to hike sooner rather than later is strengthening.” The peso fell 0.1 percent to 52.1 per

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Experts push for open data law to reduce disaster risk

multisectoral forum of scientists, academics, government and civil-society experts are pushing for a new law that provides open access to data that are crucial in responding to disasters. Dr. Alfredo Mahar Lagmay, a professor at the National Institute of Geological Sciences, University of the Philippines, presented the findings of his study, titled “An Open Data Law for Climate Resilience and Disaster Risk Reduction,” at a forum organized by independent think tank Stratbase Albert del Rosario Institute (ADRi) last week. Prof. Dindo Manhit, president of Stratbase ADRi, said while strides have been made on disaster preparedness since Supertyphoon Yolanda (international code name Haiyan) hit the country in 2013, the study remains highly relevant with the frequency of natural disasters hitting the country every year. “We’re one of the most vulnerable countries to the effects of climate change, as well as other natural disasters, owing mainly to our geographical location. Worse, the consequence of these disasters is aggravated by poor infrastructure, which is more pronounced in the countryside, where, tragically, calamities more frequently occur,” he said. Lagmay cited an incident during the rescue operations following the 2006 landslide in Saint Bernard, Southern Leyte, as a testament to the life-saving potential of freely available data in disaster response. “It was one of the biggest landslides in the world in the past century and, for so many days, a 2,000-man search and rescue team tried to look for one barangay—Guinsaugon, particularly an elementary school. There was word that came out that there was a teacher who texted saying that they were still there, alive, with 400 children,” he said. The school, which was supposedly buried under 30 meters of rubble, actually had a global poisitioning system point that could’ve been used to aid rescuers, Lagmay said. “We knew there was available data, but the GPS point was only given on the seventh day after the request, and so the rescue efforts failed. More than 1,000 died.” Lagmay said that, after studying disasters like the Saint Bernard landslide and related policies, the need for an open-data approach emerged, he said. “We must have open access. We must have open knowledge, open science and open government,” he said. Layer Lysander Castillo, secretarygeneral of the Philippine Business for Environmental Stewardship, stressed the importance of institutionalizing a law on open data to push government agencies to the right direction. “We have manpower challenges, technology challenges and capacity challenges, and that’s where having a law is an advantage,” Castillo said.

dollar as of 10:34 a.m. on Thursday in Manila, taking its decline this year to 4.2 percent. The majority of economists surveyed in February and March forecast the benchmark rate will be raised from a record-low 3 percent this quarter. But there is still debate on the rate outlook. “The central bank has been very clear in saying that inflation will still be within their target range” and may not move its key rates in the immediate future, said Jill Singian, a government bond trader at Bank of the Philippine Islands in Manila. ING Groep NV sees higher prices this year, but forecast rates will remain unchanged as inflation will slow. “The Central Bank won’t raise rates,” said Joey Cuyegkeng, a senior economist at ING in Manila. “It’s all in line with the Central Bank’s expectations that inflation will continue to rise and eventually will turn more moderate.”

With Bloomberg News