Businessmirror april 11, 2018

GOVT NO LONGER ACCEPTING UNSOLICITED BIDS FOR UPGRADE OF REGIONAL AIRPORTS

By Lorenz S. Marasigan

T

@lorenzmarasigan

NONIE REYES

he transportation department has adopted a policy of publicly soliciting bids for the regional airports in the Philippines, with the P148-billion unsolicited proposal of an infrastructure-development company becoming the first offer to be rejected because of the new direction.

Department of Transportation (DOTr) Director for Communications Goddess Hope O. Libiran said the agency has officially informed Aboitiz InfraCapital Inc. of its decision to include the regional airports program on the government’s list of priority infrastructure projects.

“We’ve already sent Aboitiz a letter telling them that we cannot accept their unsolicited proposal,” she said in a text message.

Aboitiz submitted an unsolicited proposal for the upgrade, expansion, operation and maintenance of

media partner of the year

United nations

2015 environmental Media Award leadership award 2008

Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol International Airport (Panglao) last month.

“We have adopted a policy to publicly solicit bids for the operations, maintenance, improvement and expansion of all airports under our jurisdiction,” Libiran said.

The four regional airports listed above were among the five gateways lined up for modernization. The project was launched by the government through the Public-Private Partnership (PPP) Program.

They were initially offered in 2014, under two different bundles, as the government believed then that grouping the airport-development deals would be more commercially palatable to the taste of investors. The plan, however, was scrapped last year, pending a more thorough review of the government’s aviation plans.

See “Govt” A2

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

Wednesday, April 11, 2018 Vol. 13 No. 179

n

BSP: Restructuring options open for Boracay borrowers

By Ma. Stella F. Arnaldo

B

@akosistellaBM Special to the BusinessMirror

ORROWERS in Boracay Island who will be affected by the sixmonth closure starting on April 26 are urged to ask their banks to restructure their loans.

In a Viber message to the BusinessMirror, Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. advised borrowers

“it’s best to engage the bank proactively, rather than wait for the loan to deteriorate and become past due.”

ESPENILLA: “BSP rules actually allow for flexibility in situations like this. Banks concerned may ask BSP collectively if they have specific ideas beyond what rules already allow.”

He added: “BSP rules actually allow for flexibility in situations like this. Banks concerned may ask BSP collectively if they have specific ideas beyond what rules already allow.”

Continued on A2

@butchfBM

The Buddha’s smile Teddy Locsin Jr.

free fire I delivered this statement, as usual the shortest, at the UN Alliance of Civilizations Group of Friends Meeting (PR-Level) on the theme of “Preventing Violent Extremism and Sustaining Peace” on April 3 at the Economic and Social Council, which is the UN’s central platform for reflection, debate and innovative thinking on sustainable development.

xcellencies. We The Group of Friends of the UN Alliance of Civilizations share a goal and an aspiration: The goal of defeating the forces that undermine civilization in its most basic sense—decency regardless of cultural expression.

And the aspiration to sustain civilization in the sense of decency by combating violent extremism, which feeds on itself and is the avowed enemy of civilization in any sense of the word.

‘E

Continued on A10

Justices focus questioning on Sereno’s ‘failure’ to submit SALNs

ESCUDERO: “However, it will still boil down to the honesty and integrity of the people who will implement it; that is crucial.”

T

HE Office of the United States Trade Representative’s (USTR) 2018 report recently flagged persistent “corruption” in the Philippines’s Bureau of Customs (BOC) as among the major trade barriers in the country.

However, lawmakers who just finished an exhaustive probe into the shenanigans and drug smuggling at the BOC believe the suggested reforms embodied in their end-inquiry report can adequately address the USTR’s concerns.

“Of course,” Senate Blue Ribbon Chairman Richard J. Gordon replied when asked over the weekend if the reforms arising from the committee inquiry would substantially address key concerns of corruption and inordinate delays at the BOC, as cited in the 2018 USTR report released last week.

“For any delay in Customs, the shippers will gladly pay,” Gordon pointed out, since the shippers routinely pass

on such costs of delays in their fees or rates. But this also poses a burden to all stakeholders, he added.

At the same time, he noted such systematic delays have engendered the massive corruption at the bureau, powering the illegal trade of Customs brokers and fixers—a setup well detailed in hearings of the Blue Ribbon inquiry.

Gordon expressed hope that the Senate plenary will act quickly to approve the report and endorse key recommendations to relevant parties, if only to speed up the reforms.

Continued on A12

PESO exchange rates n US 52.0840

business news source of the year

P25.00 nationwide | 5 sections 28 pages | 7 days a week

SENATE’S SHABU-SMUGGLING PROBE TO BEAR REFORMS THAT WILL END CORRUPTION AT B.O.C.

By Butch Fernandez

2016 ejap journalism awards

By Joel R. San Juan @jrsanjuan1573

B

annual thrift-bank convention Bangko Sentral ng Pilipinas Governor Nestor A. Espenilla Jr. (center) keynotes the 2018 National Convention “Banking on Disruptive Technologies,” the annual convention of the Chamber of Thrift Banks held in Makati City on Tuesday. Moderating the forum are Chamber of Thrift Banks First Vice President Alberto Emilio V. Ramos (left) and Chamber of Thrift Banks Trustee Argeo J. Melisimo. ALYSA SALEN

AGUIO CIT Y—The High Tribunal on Tuesday grilled Chief Justice Maria Lourdes A. Sereno for her reported failure to submit 11 Statement of Assets, Liabilities and Net Worth (SALN) during her 20-year stint at the University of the Philippines (UP).

She was also quizzed on the truthfulness of the SALNs she submitted to the Judicial and Bar Council (JBC) as a requirement when she applied for the associate justice post in 2010, and for the chief justice post in 2012.

During Tuesday’s oral argument on the quo warranto petition filed

by Solicitor General Jose C. Calida, Associate Justice Teresita de Castro and Sereno had a heated exchange See “Justices,” A2

n japan 0.4879 n UK 73.6103 n HK 6.6357 n CHINA 8.2508 n singapore 39.7224 n australia 40.0891 n EU 64.1779 n SAUDI arabia 13.8887

Source: BSP (10 April 2018 )

A2 Wednesday, April 11, 2018

BMReports BusinessMirror

www.businessmirror.com.ph

BSP: Restructuring options open for Boracay borrowers Continued from A1

The “premise” of a loan restructuring for a borrower in Boracay, whose income will likely be affected by the closure, is “force majeure. And restructuring is a good approach given the time-bound nature of the problem,” he said. President Duterte has ordered the island to be closed from April 26 to October 26, ostensibly to give way for its rehabilitation.

If the bank is willing to restructure the loan “to give relief to its borrower due to force majeure,” Espenilla stressed, “it can invoke Circular 941 [Series of 2017] so that the loan doesn’t have to be downgraded and specific provisioning set aside.”

This developed as BDO Unibank Inc., which has two full-service branches and three ATM stations in Boracay, confirmed that it has loan exposures on the island.

But Eduardo V. Francisco, president of BDO Capital and Investment Corp., said the bank was keen to restructure the loans of the borrowers in the popular resortisland, whose cashflows will be affected by the closure.

“In general,” Francisco said in a text

Justices. . .

Continued from A1

of arguments centering on Sereno’s alleged failure to submit copies of her SALNs, which she claimed she had filed.

De Castro even accused Sereno of failing to religiously comply with Section 7 of Republic Act 3019, which requires every public officer—within 30 days after assuming office, and within the month of January of every other year thereafter, as well as upon the expiration of his term of office, or upon his resignation or separation from office—to submit a true, detailed and sworn SALN, including a statement of the amounts and sources of his or her income, the amounts of his or her personal and family expenses and the amount of income taxes paid for the next preceding calendar year.

“You’re making a lot of excuses for not filing your SALN…You are blaming everyone, but the point is, have you religiously filed your SALN?” de Castro told the Chief Justice.

De Castro was referring to the failure of Sereno to provide the JBC copies of her SALN, which she was supposed to file while she was at UP for 20 years, as well as her confusing SALNs that she submitted to the JBC in 2010.

De Castro noted that Sereno submitted to the JBC on July 27, 2010, her SALN for 2006, even if the requirement was the submission of her latest SALN. Sereno, however, reasoned that the only available downloadable form online then had the year 2006 on it. So she used that form and wrote 2010 on it.

Even Associate Justice Francis H. Jardeleza noted Sereno’s use of several excuses in defending her failure to present her missing SALNs. “It seems to be that you are layering a lot of reasons about why you did not file. You are not

ERC. . .

Continued from A12

of four ERC commissioners in December 2017. The TRO will lapse on April 12. The ERC official earlier warned of a debilitating impact of the suspension order, saying this will put the operations of the agency in a severe paralysis.

As a collegial body, the presence of at least three ERC commissioners is needed to constitute a quorum to enable the commission to adopt any ruling, order, resolution or decision in the

message, “yes, we will work with our borrowers.” BDO declined to reveal its level of loan exposure in the island, and whether these were in the form of production or consumer loans.

Other banks on Boracay include Bank of the PhilippineIslands, Asia United Bank, Philippine National Bank, Metropolitan Bank and Trust Co. Rizal Commercial Banking Corp., and Sterling Bank. Many of these banks also have branches in Kalibo, the capital of Aklan.

While no data was available online for loans to the tourism sector, specifically in Boracay or Western Visayas, latest statistics from the BSP showed total loans to the accommodation and food-services sector expanded by 19.33 percent to P540 billion in January to April 2017, from the P452.54 billion borrowed in the same period in 2016.

For her part, BSP Managing Director for Financial Supervision Research and Consumer Protection Sub-Sector Lyn I. Javier explained that Circular 941 provides the definition of nonperforming loans and past due loans, and the provi-

sion of restructured loans.

“A bank and borrower can restructure if the [loan] account is a performing account. Banks will have to consider the borrower’s payment history, if he is a good borrower,” she added. Also, she added, the borrower must be able to show when Boracay is finally open and business returns to normal, that he or she will be able to make the loan payments.

Circular 941 defines restructured loans as “loans and other credit accommodations, the original contractual terms and conditions of which have been modified in accordance with a formal restructuring agreement that sets forth a revised schedule of payments for the purpose of lessening the financial difficulty of the borrower and maximizing collection and realizable economic value on an obligation within a reasonable period of time. The modification may include, but is not limited to, change in principal due, maturity, interest rate and other charges, collateral or other terms and conditions.”

The circular adds: “If prior to restructuring, the loans were categorized

presenting us evidence to the contrary; your assertion is that you filed,” Jardeleza said.

Sereno, however, insisted that she could not longer find copies of her SALN because of the 10-year retention period.

Associate Justice Noel G. Tijam also blasted Sereno. “You filed but couldn’t find them, you were not reminded or the others also did not also file…. The filing of a SALN is a constitutional and statutory requirement.” Sereno’s failure to submit her SALNs for the past years is the major basis of the solicitor general in filing the quo warranto petition, which intends to nullify Sereno’s appointment as chief justice.

During the oral argument, Sereno maintained that she consistently filed her SALN, as required by law. She even accused de Castro of having an “absurd and oppressive” interpretation of law with regard to the filing of SALN. Sereno pointed out that the fact that her name was included on the JBC’s shortlist proves that the SALNs she submitted were acceptable.

No inhibition

Also prior to the start of the oral arguments, Acting Chief Justice Antonio T. Carpio announced that the five justices Sereno accused of being prejudiced against her had denied her motion seeking their inhibition from the case.

De Castro and four other magistrates—Associate Justices Diosdado M. Peralta, Lucas P. Bersamin, Jardeleza and Tijam—all rejected the motions of Sereno seeking their inhibition from the case over alleged biases.

Carpio said the justices would explain their reasons for their denial of Sereno’s motion for inhibition, together with the resolution of the quo warranto petition.

Sereno’s counsel, lawyer Alex Poblador, reiterated that their participation in the proceedexercise of its quasi-judicial and quasi-legislative functions. Devanadera said earlier there are 162 petitions for power supply agreements pending before the agency. Of these, 132 cases involve electric cooperatives and 30 involve private distribution utilities.

The total value of these pending applications for ERC approval is close to P1.6 trillion. “This P1.588 trillion—not just millions, but trillions—include investments from both local and foreign entities. Without ERC action, the projects cannot proceed. The investors may

as performing, such classification shall be retained.” This means, Javier said, banks can set aside as loan provisioning, 1 percent of outstanding balance of the account, instead of the usual 5 percent under restructured loans, which may have been nonperforming before the restructuring. “The loan-loss provisions aren’t as heavy, compared to the usual restructured loans,” she said.

Echoing Espenilla, she added it was better for the borrowers in Boracay to be “proactive and approach their banks for a restructuring, even before their loans have become past due.”

The Department of Labor and Employment (DOLE), meanwhile, said it is now closely monitoring reports of workers that will be illegally displaced because of the looming closure of Boracay Island.

Labor Undersecretary Dominador R. Say reiterated the six-month closure of the prime tourist destination is not a valid reason for employers to retrench their regular workers. “Workers who will be terminated because of the closure could go to us so we could provide them the necessary

ings should not be considered as waiver of their position that the five justices should inhibit themselves from the case.

Not ordered by Duterte

Meanwhile, Calida denied that President Duterte was behind his decision to file a quo warranto petition against Sereno.

“The President never instructed me to file a quo warranto case against respondent Sereno. It is not his style. But, under Rule 66, I have the power to file a quo warranto on my own without the President’s instruction,” Calida told reporters prior to the start of the oral arguments on his petition Under Rule 66 of the 1997 Rules of Civil Procedure, a quo warranto petition may be commenced against a person who usurps, intrudes into or unlawfully holds or exercises a public office, position or franchise.

Sereno’s arguments

Poblador stressed that a ruling in favor of the quo warranto petition would set “a very dangerous precedent, erode the independence of the judiciary and the principle of separation of powers.”

He maintained that Section 2, Article XI, of the Constitution provides that “impeachable officials may be removed from office on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes or betrayal of public trust.”

“It is not difficult to see that allowing the solicitor general to remove a sitting justice by quo warranto will set a dangerous precedent that will destroy this public policy,” Poblador said, while urging the Supreme Court justices during the oral arguments to dismiss Calida’s petition. get discouraged,” Devenadera had said.

When the TRO was issued, the commissioners immediately resumed work. During its regular commission meeting held from February 13 and 27, the ERC has approved the grant of Provisional Authorities to Operate (PAOs) and the issuance of Certificates of Compliance (COCs) to 15 generation companies (gencos).

The COCs are required to commercially operate a power plant or other facilities used in the generation of electricity, pursuant to Section 6 of Republic Act 9136, or the Electric Power Industry Reform Act of 2001, and Section 4 of the implementing rules and regulations of the Epira.

On the other hand, pending the issuance of the COC, the PAO may be issued by the ERC to enable a genco to operate its generation facility.

The PAO shall be issued in the form of a notification to the genco and shall be valid for a period of six months from issuance thereof. The six-month validity period shall be included in the five-year term of the COC. Devanadera said it is imperative for a genco to secure a COC or a PAO from the ERC prior to its commercial operation. The ERC, she stressed, recognizes the need for the immediate issuance of the COCs and PAOs to gencos to ensure a reliable and sustainable power supply, especially that there is an upsurge in power demand during the summer months.

“With the approvals of PAOs and COCs to generation companies, power supply will be augmented, as additional power will be injected into the grid. This will keep a stable power supply, especially during the coming summer months when the demand for electricity is expected to increase drastically. That’s why we, at the ERC, are acting with dispatch to avert load shedding or brownouts,” Devanadera said.

assistance in filing their illegal-dismissal complaint before the courts.”

The DOLE issued the statement after it was reported on Monday that a hotel chain in Boracay has laid off 280 newly hired workers in anticipation of the impact of the closure.

In a text message to the BusinessMirror, DOLE Region 6 Director Johnson G. Cañete said they have yet to receive complaints of retrenchment related to the upcoming closure.

Say, however, clarified Boracay workers, whose companies were permanently closed down for violating environmental regulations, or those who have no security of tenure, can be legally retrenched. Workers that will fall under these two conditions will be entitled to separation pay.

Workers who will be retained by their employers in Boracay after the six-month closure of the island can seek alternative employment for the meantime. “Once the closure ends, the affected employees will have one month to return to their employer before they are considered resigned,” Say said. With Samuel P. Medenilla

Govt. . .

Continued from A1

Libiran noted the government has yet to come up with a concrete plan for the said regional airports.

“We’re still reviewing which option is best to be adopted,” she replied, when asked if the government will bid out the airports in bundled deals.

For now, Libiran said, what is clear is that the government wants to bid out the airportdevelopment deals through the solicited mode.

She explained that such a decision stemmed from the department’s desire to get more competitive offers from other parties. “This is to promote an environment with a level playing field.”

Soliciting public bids allows the government to receive proposals from different parties, based on the parameters it has set. It is also much faster to auction off projects versus unsolicited bids.

The process for unsolicited proposals, on the other hand, could be lengthy due to several evaluations by different government agencies.

First, the implementing agency will have to review the unsolicited proposal. It has the authority to either approve or reject it. Should it award the original proponent status to the group that submitted the unsolicited proposal, the next step is for the National Economic and

Duterte. . .

Continued from A12

“It will be a status symbol for China if they get this project,” Housing Secretary Eduardo D. del Rosario said in an interview in his office in Makati City, citing the warming relations between the two countries.“They would like to showcase to the Philippines that they are here to help.”

The Philippines has shifted toward China under Duterte, and officials from both countries have been discussing boosting trade and investment while setting aside territorial disagreements.

Duterte, who is in Hainan province for the Boao Forum for Asia this week, is scheduled to meet with Chinese President Xi Jinping.

The world’s biggest construction and engineering firm, CSCEC offered to rebuild roads, schools, public buildings and utilities in the most damaged part of the city for P17 billion.

Repayment for 40 percent of the cost is interest-free for one year, and 80 percent of the workers would be hired locally. China is also giving the Philippines a P1-billion grant to rebuild structures and help provide livelihood to Marawi residents.

Should the company come to a final agreement with the government, there’s a target start date of June, with the aim of completing the project before Duterte’s term ends in 2022.

Brushing aside concerns about the impact China’s offer might have on the nations’competing claims on South China Sea, del Rosario, 61, a retired army general, said the Philippines’s relationship with China is “even better” than with the US. “They don’t set conditions,” he said. “A true friend is willing to help you without strings attached.”

Development Authority (Neda) to evaluate it.

Once its different subagencies approve the proposal, the Neda Board—the highest government planning body chaired by the President—will then have the final say on the project’s fate.

Should it be approved by the Neda Board, the implementing agency will then place the unsolicited proposal under a so-called Swiss challenge. Essentially, a Swiss challenge is a means for the government to get a better offer versus the original proposal. Under the said competitive exercise, other groups may place offers that will “challenge” the original proponent’s offer. The original proponent will then have the chance to offer a counterproposal.

“While Aboitiz InfraCapital believes its proposal is a very efficient solution to address the immediate need of the airports in the most expedient and comprehensive way, we understand the DOTr’s decision to take a different course,” read a disclosure from Aboitiz Equity Venture Inc. on Tuesday.

According to the group, its infrastructure arm remains committed to supporting the government in its efforts to advance infrastructure in the country, particularly the aviation sector.

“We look forward to receiving the final details of the upcoming tender and will continue suppor ting the development of the regional airports,” the disclosure read.

Duterte welcomed the growing partnership between the Philippines and China, stressing the government’s commitment to ensure an enabling environment for businesses and investments to thrive and prosper.

“Allow me to say that the growing trade and investment reflect the vigorous momentum of the Philippine-China relations, highlighting the Chinese position as the largest trading partner and our largest export market together with Hong Kong,” Duterte said in a speech after he witnessed the signing ceremony for 10 business letters of intent on the sidelines of the Boao Forum for Asia in Hainan, China.

Duterte added he is looking forward to a more robust and balanced trade in the coming years, as the two countries continue to enhance trade links.

“I reiterate the impor tance of further developing economic cooperation with China, noting that the Philippines is focusing on agriculture, fisheries, infrastructure and public works, energy, trade, e-commerce, industrial park development, MSMEs, processing, manufacturing and tourism.

“I acknowledge the job opportunities that will be created by Chinese investments now and in the years to come and the role in promoting inclusive growth of encouraging entrepreneurship among the Filipinos.”

He also stressed the country’s commitment in good governance to improve the climate and ease of doing business.

The letters of intent were signed by Trade Undersecretary Rowel S. Barba and 10 Chinese companies. These covered investments and projects in infrastructure and public works, tourism, energy, agriculture and manufacturing industries, among others. With Bernadette D. Nicolas,

Bloomberg News

The Nation BusinessMirror

www.businessmirror.com.ph

Editor: Vittorio V. Vitug • Wednesday, April 11, 2018 A3

Couple behind Bitcoin ‘investment scam’ falls

Officials of the Volunteers Against Crime and Corruption present victims of an alleged cryptocurrency or Bitcoin fraud during a news conference at a restaurant in Manila. Couple Arnel and Leonady Ordonio allegedly amassed at least P900 million from 50 investors, who were allegedly promised huge interest over such short a period of time. ROY DOMINGO

O

By Rene Acosta

@reneacostaBM

peratives of the Philippine National Police-Criminal Investigation and Detection Group (PNP-CIDG) have arrested a couple for gypping more than 50 victims of some P900 million through an online investment scam using cryptocurrency or Bitcoin.

Police chief Director General Ronald M. dela Rosa identified the suspects as Arnel Ordonio, 27, and his wife, Leonady, owners of NewG Bitcoin Investment Trading that was supposedly involved in cryptocurrency trading, which is becoming increasingly popular around the world.

“More or less P900 million have been amassed from the victims who believed in the couple’s false promise of huge amount of interest in a short span of time,” dela Rosa said at a news briefing.

The couple were arrested by policemen during an entrapment operation at around 9:45 p.m. on April 4 along Calle Crisologo, Vigan City, Ilocos Sur.

Confiscated from the Ordonios were the boodle money used in the entrapment operation, a laptop and a mobile phone that the policemen believed they were using in their syndicated activities and in contacting their cohorts.

The arrest of the couple came after 48 of their victims sought the assistance of the CIDG’s AntiOrganized Crime Unit after having been “persuaded, enticed and lured to invest” in online Bitcoin trading, “in exchange of a false promise of huge amount of interest in a short period of time.”

CIDG chief Director Roel B. Obusan, who joined dela Rosa during the news briefing, said Arnel had promised their victims an interest rate of 33 percent for every 16 days to lure their victims into the business.

“For the first few months (September to November, 2017), Ordonio gave the interest as promised.

However, starting December 2017, the suspect [no] longer [paid] the interest and cannot be contacted and found anymore,” he said.

Christopher Aguilar, one of the complainants, however, managed to contact Arnel who told him they were having a problem with the web site coins.ph.com in claiming their investment and that Aguilar needs to pay P2 million for the processing of their investment withdrawal from coins.ph.com.

Sensing that Ordonio was just making an alibi, Aguilar agreed to give an additional P50,000 on April 4, which prompted the CIDG to arrange for the entrapment operation.

More or less [than] P900 million have been amassed from the victims who believed in the couple’s false promise of huge amount of interest in a short span of time.”—dela Rosa

Palace maintains Duterte won 2016 elections ‘fair and square’

M

alacañang has denied allegations that President Duterte was elected into office with the help of the parent company of Cambridge Analytica, the same London-based data analytics group linked in a recent Facebook users’ data breach.

About 1.2 million Filipinos were among the 87 million users reportedly affected by the data breach.

Presidential Spokesman Harry L. Roque Jr. said in a news statement that Finance Secretary Carlos G. Dominguez III assured that he did not pay anything to Cambridge Analytica nor did he had any transaction with them.

Dominguez was the treasurer of Duterte’s campaign team.

The statement was issued follow-

C

armen Reyes Bartolome has joined her Creator last Saturday, April 7, 2018. She was 93.

She was a distinguished public elementary school teacher and a loving mother.

ing a report from South China Morning Post, showing Mr. Duterte dining with Alexander Nix, then-board director of Cambridge Analytica parent company Strategic Communications Laboratories in 2015.

Also in the photo, which was taken at a National Press Club event in May 2015, were cousins Peter T. Laviña and Jose Gabriel La Viña, then-NPC President Joel Sy Egco and Taipan Millan, who were identified in the report as Duterte’s family friend.

After the data privacy scandal was made public, Nix was suspended as Cambridge Analytica CEO. “The President won the election fair and square, with an overwhelming mandate of over 16 million votes

Bartolome, 93 She is survived by her daughter Ma. Asuncion Bartolome-Chanco, sons Lauro, Victor Bernardo, Noel Aguedo and Antonio Bartolome; sonin-law Noel, daughters-in-law Myra, Mary Ann, Maria Lourdes and Leah,

and a margin of over 6 million. Support for the former Davao City mayor was from all sectors and not just from Facebook or online; thus, the Duterte campaign did not have to purchase information,” Roque said.

Duterte won the election with landslide victory in 2016. “We should respect the President’s landslide victory, which was a result of the trust and confidence of the Filipino people, and not undermine it with unsubstantiated allegations.”

Cambridge Analytica is also the same firm accused of siphoning Facebook users’ data to aid Donald J. Trump’s US presidential campaign.

Facebook CEO Mark Zuckerberg is expected to testify before the US Congress this week to explain how the information was acquired. Bernadette D. Nicolas

and her grandchildren.

Her wake is at the Valenzuela Memorial Park Chapel in Barangay Veinte Reales, Valenzuela City. Interment will be on Thursday, April 12, 2018, also at the Valenzuela Memorial Park.

Govt to extend aid to Red surrenderers Pernia outlines PHL’s priority in pursuit of AmBisyon 2040

T

he Department of the Interior and Local Government (DILG) is ready to provide assistance to surrendering New People’s Army (NPA) rebels as part of their reintegration into the mainstream society.

This was assured by Interior Officer in Charge Secretary Eduardo M. Año, days after President Duterte had agreed to revive the peace talks with the Communist Party of the Philippines-National Democratic Front (CPP-NPA-NDF).

The peace process between the government and insurgents has been an on-off process. Thousands of soldiers and rebels, including scores of unarmed civilians caught in the cross fires, have died in the last four decades.

In a news statement, Año said assistance will be provided to rebels who would lay down their arms and return to the fold of the law.

More than 2,000 former rebels have been assisted through the Enhanced Comprehensive Local Integration Program (E-Clip) of the DILG. “The E-CLIP of the DILG is an investment for peace. It is the government’s way of opening its arms to former rebels and assisting them to return to [a] normal, productive, and law-abiding way of life,” said Año, a former Armed Forces AFP chief of staff.

Just recently the President approved the release of almost half a billion pesos to support the E-Clip, enough to support the more than 1,000 expected surrenderers for this year.

“We call on the families, relatives and friends of rebels to help us convince them to go down from the mountains and take this life-changing opportunity,” he said.

For the past three years, the DILG

has provided financial assistance to hundreds of former communist rebels who have returned to mainstream society. A total of P59.68 million has been utilized for immediate assistance to 471 former rebels, while 459 got livelihood assistance, 361 with reintegration assistance and 132 were given firearm remuneration, the DILG chief said.

As of December 31, 2017, there were 2,082 former communist rebels enrolled in E-Clip. One thousand three hundred fifty-seven are in Mindanao, 448 in Luzon and 277 in the Visayas.

“I share the sentiment of the President that I hope this time, the communists will not waste this opportunity.

Let this be the peace talks that will lead to a peaceful, progressive Philippines.

No more death of peace talks, no more people dying,” Año said.

The DILG chief also assured full cooperation in the Task Force Balik Loob created by the President, through Administrative Order 10, to integrate government’s rebel-returnee assistance programs, namely the DILG’s E-Clip and Office of the Presidential Adviser on Peace Process’s Payapa at Masaganang Pamayanan (Pamana) program.

“The creation of the Task Force Balik Loob signifies the administration’s genuine sincerity, readiness and resolve to end this decades-old conflict. We make change happen and it is now,” Año said.

The E-Clip facilitates the mainstreaming of former NPA rebels and Militia ng Bayan as productive citizens. The program also compensates and remunerates all surrendered firearms.

A former rebel gets an immediate assistance of P15,000 for mobiliza-

tion expenses, livelihood assistance of P50,000, skills training, shelter and legal assistance, among others.

A financial assistance amounting to P5 million is provided per local government unit for the construction of a halfway house, which is a facility for former rebels that will house him/her, while awaiting his/her enrollment to E-Clip and shall serve as a venue in conducting rehabilitation and healing sessions, and education and skills training activities.

A total of P45 million has been spent on construction of halfway houses for rebel-surrenderers in nine provinces, namely, Kalinga and Mountain Province, Masbate, Negros Oriental, Northern Samar, Sarangani, Sultan Kudarat, South Cotabato and North Cotabato.

At the same time, Año said that his first instruction to incoming National Police (PNP) chief Oscar D. Albayalde is to go after PNP personnel scalawags and misfits in police uniform, especially those who are on absence without leave, sleeping, nonperforming and drinking-on-the-job.

This means that the DILG chief wants Albayalde “to scale up and implement nationwide the internal cleansing [that] he successfully implemented in Metro Manila” during his almost two year stint at the National Capital Region Police Office since July 2016.

President Duterte appointed Albayalde over two other generals— PNP Deputy Chief for Administration Deputy Director General Ramon Apolinario and PNP Director for Intelligence Chief Director Greg Pimentel who are his upperclassmen in the Philippine Military Academy because he is a “doer” and a “disciplinarian” compared to the two.

Jonathan L. Mayuga and Nelson S. Badilla

By Cai U. Ordinario

R

@cuo_bm

esolving pressing population issues, creating sustainable cities and making migration a choice for Filipinos are among the top priorities of the Philippines in the next four years, according to the National Economic and Development Authority (Neda).

In a statement delivered at the United Nations Headquarters in New York on Monday, Socioeconomic Planning Secretary Ernesto M. Pernia said these are the priorities of the country in order to meet the vision of Filipinos under AmBisyon Natin 2040.

Pernia spoke on behalf of the Philippines at the recent 51st session of the Commission on Population and Development (CPD).

“The Philippines is now on a path of consistently strong economic growth. This growth is among the development goals laid out by our government in the context of the Filipinos’ long term: ‘Our Ambition 2040’,” Pernia said. “[The country] envisions a prosperous, upper middle-class society where no one is poor; where people live long and healthy lives, and are smart and innovative; and a high-trust society where families thrive in vibrant, culturally diverse, and resilient communities,” he added.

The Philippines also called on developed countries and partners to continue supporting developing countries in transforming its cities into sustainable cities and supporting international migration through stronger international cooperation and partnerships.

“We also strongly call upon all countries to reach a global consensus that will advance CPD’s work for the betterment

of human lives based on our common humanity, rather than cultural and national differences,” the Neda chief said.

Pernia added the Philippines is “aggressively pursuing” the implementation of the responsible parenthood and reproductive health law, which is consistent with the principles and goals of the International Conference on Population and Development (ICPD).

He also reported that the government has already lifted the temporary restraining order (TRO) on modern family planning, particularly on contraceptives.

In 2016 the Supreme Court issued a TRO on contraceptive distribution nationwide. This prevented the issuance of Certificates of Product Registration (CPRs) for contraceptives.

However, due to the lifting of the TRO, Pernia said more Filipinos use contraceptives up from 38 percent in 2013 to 40 percent in 2017.

This, Pernia said, resulted in a decline in total fertility rate from 3 children in 2013 to 2.7 children in 2017.

“The country recognizes the importance of addressing pressing population issues that hinder development.

With more than 105 million Filipinos, the challenge to strike a balance between population and economic growth is more urgent than ever,” Pernia told the UN Population Fund.

In terms of creating sustainable cities, Pernia said the government has launched its “Build, Build, Build” program to promote connectivity and mobility nationwide.

Pernia said the government also has its “Green, Green, Green” program which aims to transform the country’s 145 cities into more livable and sustainable communities, consistent with the New Urban Agenda.

He added the government has also required all local government units to prepare and implement land use plans and zoning policies.

“In terms of strengthening data on migration, the government will also conduct the first ever National Migration Survey this year to provide empirical data on migration patterns,” Pernia added.

Meanwhile, the Neda chief said the government is bent on seeing the completion of the Global Compact for Safe, Orderly and Regular Migration which gives hope to the dream of making international migration a choice, not a necessity for Filipinos.

Pernia also said the government has also revised the Magna Carta for Migrant Workers and Overseas Filipinos to help reintegrate millions of overseas Filipinos.

He said the government is committed to providing Overseas Filipino Workers with welfare and legal services wherever they are through its many labor and consular offices worldwide.

“While we recognize the economic contribution of overseas Filipinos, we remain firm on making international migration a choice rather than a desperate act. As such, we continue to seriously address issues such as lack of gainful jobs that compel Filipinos to leave the country,” Pernia said.

These goals and commitments are consistent with the country’s efforts to meet the 17 Sustainable Development Goals (SDGs).

The SDGs or Global Goals is a set of 17 socioeconomic goals that 193 United Nation-member countries like the Philippines committed to meet by 2030. The goals are composed of around 169 targets and over 300 global indicators. The SDGs were adopted in September 2015.

Economy

A4 Wednesday, April 11, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

www.businessmirror.com.ph

LTFRB told: Stop ‘meddling’ in Grab-Uber merger deal

A

By Elijah Felice E. Rosales

@alyasjah

consumer group is urging the Land Transportation Franchising and Regulatory Board (LTFRB) to focus on pending applications of transportation network companies (TNCs), instead of “meddling” in the review of the Grab-Uber merger.

In a news statement, Laban Konsyumer Inc. pressed the LTFRB to act expeditiously on requests of new players to enter the country’s ride-hailing market to fill up the

void of Uber, which sold its assets and operations to Grab after leaving Southeast Asia.

The group said consumers “lost their right of choice of booking

and riding and, correspondingly, availability of alternative services and rates” with Grab’s acquisition of Uber.

For Laban Konsyumer, this should be acted upon immediately by the government by providing a concrete time frame for the riding public to adjust their time and resources and when to expect new options.

Also, Laban Konsyumer President Victorio A. Dimagiba pressed the LTFRB to stop intervening in the review of the Grab-Uber merger spearheaded by the Philippines Competition Commission (PCC). “The LTFRB should stop meddling in the review of the Uber and Grab agreement by the PCC,” he said.

“The [Philippine] Competition Act vests the PCC the primary

power to review and decide on the deal in accordance with the law.

Let the PCC complete the review of the deal,” Dimagiba added.

The LTFRB is questioning the logic of the PCC’s review of the acquisition and its corresponding order for Uber to carry on with its operations until the assessment is completed.

LTFRB Board Member Aileen B. Lizada said the PCC’s instruction for Uber is difficult to implement, claiming that Uber does not have funds and employees in the country anymore.

This does not play well with Laban Konsyumer, as there appears to be some kind of a turf war between the two government agencies.

“Any public statement supporting the shutdown of Uber by the LTFRB

could undermine the PCC review processes,” Dimagiba said.

Instead of fiddling with the antitrust agency’s mandate, the LTFRB is urged to turn its head on the entry of new players in the ride-hailing market, he added.

Dimagiba said the LTFRB can begin informing the riding public of the track record of the applying TNCs, what services they can offer, the rates of their services and the technology they will be using so that commuters will be better aware once they start operating in the country.

The consumer-rights activist demanded the LTFRB to be transparent in their process of approving the applications of the new TNCs. He also asked the transport regulator to conduct public hear-

ings so as to be familiar with the pleas of commuters.

Grab acquired Uber’s assets and operations in the whole of Southeast Asia, including the Philippines, in a move that instituted the former as a monopoly in the country. Uber now has a 27.5-percent share in Grab.

PCC Chairman Arsenio M. Balisacan said Uber can still effectively operate in the country, in spite of its publicly declared exit in Southeast Asia. “Uber is highlighting its exit, but what it does not emphasize enough is its integration with Grab,” he said.

“Thus, Uber is not truly exiting the Philippine market, but, rather, effectively merging their operations with Grab here. The deal makes Uber a part-owner of Grab,” he added.

House Minority Leader wants NFA’s Aquino axed

By Jovee Marie N. dela Cruz @joveemarie

A

mid dwindling supply of National Food Authority (NFA) rice in Metro Manila, the Minority Leader of the House of Representatives on Tuesday called for the resignation of NFA Administrator Jason L.Y. Aquino.

House Minority Leader Danilo E. Suarez of the Third District of Quezon, in a news conference, said the recent announcement that the NFA rice stock has been deplet-

ed to a day’s requirement would lead to higher prices.

“While the Malacañang assured that our country has enough supply, we are concerned that rice traders will take advantage of this situation, to the detriment of the Filipino consumers,” Suarez said.

He also criticized Aquino for failing to comply with the 15-day buffer stock policy.

“Such incompetence should no longer be tolerated,” Suarez said.

Earlier, President Duterte approved the NFA’s 500,000 metric ton

(MT) rice importation to revitalize its nearly depleted stockpile.

The BusinessMirror also reported that the initial 250,000 MT will be imported within the month via government-to-government scheme to immediately beef up the NFA’s buffer stock, which has sunk to four-decade low of 200,000 bags.

Meanwhile, the remaining 250,000 MT would be purchased by the NFA via government-to-procurement scheme, in preparation for the lean months.

Last Friday, reports said Duterte

wanted the 18-member body abolished, amid disagreements over the rice-importation policy between the NFA Council and the NFA. However, Malacañang later clarified that the President merely wants to reconstitute the council. The NFAC is the highest policymaking body of the NFA. Also, Speaker Pantaleon D. Alvarez backed the reported intention of Duterte to abolish the NFA Council to address the recurring problem on the country’s rice supply, particularly on the cheaper rice sold by the NFA.

Cow girls Sen. Cynthia A. Villar (right) pats the head of a cow, as the animal feeds on

a trough at the launch of the Magkakasama Sa Sakahan, Kaunlaran Inc. at the DV Boer Farm in Lian, Batangas. Joining Villar is Marian Villamin, the farm’s co-owner. NONOY LACZA

Duterte aims for higher innovation, creativity rankings for Philippines

By Bernadette D. Nicolas @BNicolasBM

P

resident Duterte said on Tuesday the Philippines will be joining the top one-third of countries in the Global Innovation Index (GII) by 2022 due to its investments in government processes, technology and human development.

In 2017 Philippines placed 73rd out of 127 economies. In 2016 the country placed 74th out of 128 and 83rd out of 143 economies in 2015.

“We will empower more Filipinos with better skills and expertise and, with our Innovation Council under the Department of Science and Technology, we will improve the competitiveness and productivity of our MSMEs [micro, small and medium enterprises],” Duterte said in a speech at the Boao Forum for Asia in Hainan, China, attended by around 2,000, including world leaders.

The index computes and economy’s performance on innovation by looking at innovative and creative outputs resulting from a slew of factors that enable innovation.

The President also noted that the government will apply science, technology and innovation in agriculture and service industries, and also improve research and development and intensify international cooperation in this areas.

Aside from investments in innovation, the Philippines will also focus on infrastructure and interconnectivity.

“Our milestones are ambitious: We will spend 5 percent to 7 percent on infrastructure. We aim to reduce poverty from 22 percent in 2015 to 14 percent by 2022. We intend to achieve growth of 7 percent to 8 percent every year up to 2022,” he said.

“Our ‘Build, Build, Build’ program will provide the solid backbone for growth. This will continue to upgrade the infrastructure, connect more people and communities, and create more jobs.

Already, we have started a threeyear rolling program amounting to over $69 billion until 2022,” Duterte said.

DUTERTE: “Our milestones are ambitious: We will spend 5 percent to 7 percent on infrastructure. We aim to reduce poverty from 22 percent in 2015 to 14 percent by 2022. We intend to achieve growth of 7 percent to 8 percent every year up to 2022.”

“Finally, the Philippines will remain committed to interconnectivity, both in functional terms and in political engagements and cooperation with our friends and neighbors. We will harness the potential for shared growth in our region and beyond,” he added.

The President also said the Philippines is slowly making the Filipino dream a reality.

“Far too long, the Philippines has nurtured the dream of a comfortable life for our citizens. We want a society where there are opportunities for all. We want a nation where the hardworking, the talented and the law-abiding can advance together and move up [the] socioeconomic ladder,” he said, noting that there are challenges but the nation will not be deterred.

“We seek to partner with responsible businesses—home-grown and foreign-based—to drive the progress we envision,” the President said. He also mentioned China in his speech, describing it as the country’s sovereign equal.

Duterte’s foreign shift toward China is backed by his adoption of a more cooperative stance between Manila and Beijing. “[T]he Philippines and China are partners in the building of the much-needed inf rastr ucture. [We are building] bridges of greater understanding between our peoples. We are working together on strengthening economic complementarities.

He also called on all nations to act collectively to achieve the shared goal of prosperity.

“Let me say it again: the Philippines’s destiny is in Asia. The Philippines is ready to work with

all nations in the region to seek friendship and cooperation. We have a stake—as well as responsibilities—in [the] forging of a more prosperous continent and world.

This is what [nations]—big or small—should act on collectively when we leave Boao: Cooperate, coordinate [and] collaborate. So we can achieve our shared dream of prosperity for all,” he said.

Chinese President Xi Jinping also highlighted in his opening speech China’s economic achievements and opportunities, as well as its visions for the future.

Although he did not directly addressed the escalating US-China trade war, President Xi noted that China hopes that developed countries will stop imposing restrictions on normal and reasonable trade of high-tech products and relax export controls on trade with China.

China will also reduce tariffs and expand imports, according to President Xi. “China does not seek trade surplus; we have a genuine desire to increase imports and achieve greater balance of international payments under the current account,” he said.

A research note from RHB Bank Berhad dated April 4 said the Philippines could be the most at risk country in the Asean region because of the trade war.

Singapore Prime Minister Lee Hsien Loong, for his part, said that China’s response to the US has been careful and calibrated.

“We hope both countries can ward off further escalation. Singapore believes imposing unilateral tariffs is not the solution,” Lee said, noting that a trade war will damage bilateral ties and that the consequences could be catastrophic.

“A US-China trade war is far from inevitable, but it could compromise countries big and small,” he said.

China proposed last Wednesday for the imposition of higher tariffs on about $50 billion of US imports.

Last Thursday US President Donald J. Trump ordered to consider imposing tariffs on an additional $100 billion in Chinese imports.

www.businessmirror.com.ph

Banking&Finance BusinessMirror

T-bills sale attracts only P5B T

he Bureau of the Treasury (BTr) reported mixed results in its latest auction of Treasury bills (T-bills) on Tuesday, with the auction committee selling only P5 billion of the P15 billion on offer due to high bid rates from the market.

National Treasurer Rosalia V. de Leon said bids for the 182- and 364-day tenors leaned on the higher end of the curve, which forced the auction committee to reject all bids for both tenors.

The committee would award only the 91-day IOUs. “Otherwise, the rates would have been as much as 30 basis points” higher, de Leon said.

The auction committee awarded the full P5 billion for the 91-day tenor, with bids reaching P8.901 billion and the committee rejecting P3.901 billion. The three-month IOUs averaged 3.346 percent on Tuesday, which was 15.5 basis points higher than the previous rate of 3.191 percent.

Bids for the 182-day tenor were undersubscribed, reaching only P3.130 billion of the P4-billion on offer. Had the auction committee sold the IOUs, the rate would

have averaged 3.683 percent, or 47.7 basis points higher than the previous auction’s 3.206 percent.

For the 364-day tenor, bids totaled only P2.940 billion on offers reaching P6 billion.

The one-year T-bill rate would have averaged 3.870 percent, or 43.6 basis points higher than the previous rate of 3.434 percent.

“We are not comfortable with the higher rates they are offering. We can still afford to reject at these levels given the cash cushion of the Treasury. We still can afford to not award at those levels,” she added.

De Leon said the market may have taken into consideration the country’s inflation path and expectations from the Federal Reserve System (the Fed) on possible rate hikes.

“I think it’s really where we are in terms of the inflation, that they still see the uptrend, the uncertainty, [the anticipated] rate hikes from the Fed,” she added.

Earlier, the Philippine Statistics Authority said the inflation in March averaged 4.3 percent or higher than the Bangko Sentral ng Pilipinas’s target range of 2 percent to 4 percent. Rea Cu

Case clippings

By Justice S J Ranada Jr.

REQUEST FOR ADMISSION–failure to answer Once a party serves a request for admission as to the truth of any material and relevant matter of fact, the party served has 15 days within which to file a sworn statement answering it. In case of failure to do so, the matter of which submission is requested shall be deemed admitted. Exception: when the party to whom such request for admission is served had already controverted such matters in an earlier pleading.

Duque v. Spouses Yu 19 Feb. 2018

GR 226130 Velasco, J

Accounting software—which one works best?

T

echnology is rapidly moving at speeds faster than the “blink of an eye.” It used to be that we do everything manually, and what took hours to prepare a simple financial report can be done in a few minutes with the advent of accounting software.

Nowadays, accounting software has greatly improved, and the onset of online software makes it more feasible to collaborate even if one is not on-site.

The type of software that fits a company depends on many factors. But the accounting software now is generally classified as to whether it is for small- and medium-sized businesses or for large companies. It is then further tested as to whether it meets the requirements of the business or not.

Most if not all of the new solutions in the market are cloud-based. There are the traditional accounting software that can be downloaded, but because of their price and the speed at which technology changes, they might be obsolete in a few months and have to be updated.

What is more popular now are the subscription type of software where you pay a fee on a monthly basis depending on the number of users you have and the features your business needs. If you are a small business, stay away from software intended for large companies because you might end up not using many of their features while you pay a large sum for acquiring and maintaining it.

The advantage of an online software is the automatic update, and your data immediately backed up in the cloud. The top software in the market can be easily integrated with add-on solutions. Thus, the business can start with basic features like invoicing, disbursements or inventory management and later purchase addon solutions for a minimal fee to meet the needs of the business as it grows.

PC Magazine considers Quickbooks as the No. 1 accounting software online, while simpledollar.com considers it also as one of the top 3 software online with Zero and Freshbooks sharing the top slots. These are all cloud-based, and the top accounting software for small and medium business because they can easily integrate with many applications like customer-relations and inventorymanagement tools and are user-friendly.

The subscription price of accounting software is very affordable. You no longer

FINEX free enterprise Wilma C. Inventor-Miranda have to buy the traditional downloadable software. With the Internet becoming more affordable and more available nowadays, there will come a time when even traditional software and spreadsheets become obsolete.

We all started with using spreadsheets or Excel. But the online accounting software is getting more popular, and it has more advantages than the spreadsheets.

Some of the advantages include enabling the business to generate financial reports in real time without having to wait for month-end. Even if you are traveling and need to update your finances, your transactions are easily viewable, and reports are easily generated. Spreadsheets are more prone to errors and sometimes take more time to detect, but the online software provide audit trails and pinpoint accountability as to who erred or made fraudulent entries.

As your business grows, you may step up to the higher versions, such as the Quickbooks Desktop Enterprise, Oracle NetSuite, SAP Business One, Microsoft Dynamics GP, Sage (formerly Peachtree) with enterprise-resource planning as additional features.

It may be hard to make the change from Excel to an accounting online software, but there is no other choice but to innovate or one left behind. And there are many accounting software with features best suited to one’s business and are at the same time user-friendly and with backups secure enough to make you sleep soundly at night. More important, they are a lot cheaper than the traditional variety one wonders how one missed them in the first place.

Wilma Miranda is the managing partner of Inventor, Miranda & Associates and Certified Public Accountants, board of director member of KPS Outsourcing Inc. and treasurer of Negros Outsourcing Service Inc. The views expressed herein do not necessarily reflect the opinion of these institutions.

Editor: Jun B. Vallecera • Wednesday, April 11, 2018 A5

Sustained FDI inflows traced to solid macro underpinnings

L

By Bianca Cuaresma

@BcuaresmaBM

ong-horizon overseas funds, also known as foreign direct investments (FDI), have kept the faith on the country’s economic future and voted with their money aggregating $919 million on net basis in January.

This developed no matter that the local currency the peso weakened further by 0.8 percent to P52.084 per dollar from month to date, while portfolio fund managers poured far fewer investments of their own in recent months.

Data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed FDI flowing inward on net basis to $919 million in January, representing an increase by 56.7 percent.

In January last year, long-horizon FDI only hit $587 million.

The jump in the level of FDI inflows

contrasted sharply against lower foreign portfolio investments (FPI) in January this year at only $162.16 million, or almost half the $301.33 million in the same month last year.

The local currency also averaged only P50.51 per dollar in January, weaker than the P49.74 rate in January last year.

Both the FPI and the peso are indicators of near-term investor sentiment and more volatile in nature, while FDI own long-horizon views and, by this measure, are more coveted by regulators, as they indicate the long-term outlook of global

fund managers because of the job-generating nature of their business.

The BSP attributed the sustained increase in FDI in January to positive “investor outlook on the country’s economic performance” on the back of “strong macroeconomic fundamentals.”

Broken down, net capital inflows— which accounted for the bulk of FDI during the period—rose more than eight times to $473 million, from $58 million in the previous year. The sevenfold increase in equity capital placements to $531 million drove this development, as withdrawals amounted to only $58 million during the month.

The equity capital placements were from Singapore, China, Taiwan, Japan and the United States.

The BSP said the capital infusions were invested mainly in manufacturing; financial and insurance; real estate; electricity, gas, steam and air-conditioning supply; and wholesale and retail trade activities.

Net investments in debt instruments issued by local affiliates consisting of intercompany loans, on the other hand, declined by 16.7 percent to $381 million.

R e i nv e s t me nt o f e a r n i n g s a l s o decreased by 8.4 percent to $65 million during the period.

‘Blockchain is not foolproof’

By Rizal Raoul S. Reyes

@brownindio

J

ust like any other computing system, a financial-technology (fintech) expert on computing systems said on Tuesday that blockchain is a not full-proof system.

“If anyone who says blockchain is secure, that is b......t.

The system is as secure as the people who are managing it,” Varun Mittal, Association of Southeast Asian Nations fintech lead at Ernst and Young Solutions Llp., said in his presentation on “Blockchain for Banks” during the 2018 National Convention Banking on Disruptive Technologies organized by the Chamber of Thrift Banks held in Makati City.

Nevertheless, Mittal said private organizations as well as governments, must continue to invest in technologies such as blockchain to achieve better service, efficiency and transparency.

“No technology is good or bad. Internet is both good and bad, technology is what you make it to be,” Mittal pointed out.

Blockchain is a distributed ledger used to record promises, trades, transactions or items that a person wants to be stored.

It allows everyone in an ecosystem to keep a copy of the common system of record.

Mittal said both the private and the public sector would face different challenges when they pursue their blockchain projects. Since private blockchains are based inside the network infrastructure facilities, a wouldbe hacker will first need break the firewall before he can get into the main system.

“They have to hack the corporate firewall first before you can hit the application,” he pointed out.

As far as the public chains are concerned, Mit-

tal said the state of the software will be a main factor in determining if there is a breach. He added the possible presence of bugs will pose a challenge to the network.

However, Mittal said hacking and exploitation of bugs are not the same. Bugs can be found in the processor and the browser. Once detected, Mittal said a bug can be reported to the service provider and the community for the private and public blockchains, respectively. “It becomes hype when people tend to sensationalize it.

Despite the challenges in investing in blockchains, Mittal said public and private institutions should pursue it to achieve their objectives. “They have to evaluate and see the benefits in investing in blockchain,” he said.

Gregorio Anonas, president of Chamber of Thrift Banks (CTB), said the organization is aware of the importance of riding the digital wave. “We are aware of the shift in digital behavior of our clientele. Thrift banks have embraced these new technologies to ensure faster, better and more affordable services,”

he said in a news statement.

Meanwhile, the CTB has formed a partnership with Lendr, a fully digital and multichannel platform that enables financial institutions and credit providers to reach customers through a sole online marketplace for loans.

Anonas pointed out that the thrift-bank industry plays an important role in promoting

economic inclusivity servicing micro, small and medium enterprises, as well as consumer loans, the automotive and housing sectors, both in the urban and the countr yside. Accord ing to the Bangko Sentral ng Pilipinas data, thrift banks dedicated about 12 percent of their loan portfolio to MSMEs

A6

Wednesday, April 11, 2018

The World BusinessMirror

Facebook’s Zuckerberg faces congressional probe

W

ASHINGTON—After privately assuring senators that his company will do better, Facebook CEO Mark Zuckerberg is undergoing a two-day congressional inquisition that will be very public—and possibly pivotal for the massive socialnetworking company he created.

Zuckerberg visited with senators in closed-door meetings on Monday, previewing the public apology he plans to give Congress on Tuesday after revelations that Cambridge Analytica, a data-mining firm affiliated with Donald J. Trump’s presidential campaign, gathered personal information from 87 million users to try to influence elections.

He has apologized many times already to users and the public, but it is the first time in his career that he has gone before Congress.

Zuckerberg will testify before a joint hearing of the Senate Judiciary and Commerce Committees on Tuesday and before a House panel on Wednesday.

In the hearings, Zuckerberg will not only try to restore public trust in his company but also stave off federal regulation that some lawmakers have floated.

In prepared testimony released on Monday by the House Energy and Commerce Committee, which he is expected to deliver on Wednesday, Zuckerberg apologizes for fake news, hate speech, a lack of data privacy and Russian social-media interference in the 2016 elections.

“We didn’t take a broad enough view of our responsibility, and that was a big mistake,” he says in the remarks. “It was my mistake, and I’m sorry. I started Facebook, I run it, and I’m responsible for what happens here.”

After resisting previous calls to testify, Zuckerberg agreed to come to Capitol Hill this month after

reports surfaced—and the company confirmed—that Cambridge Analytica had gathered Facebook users’ data. In the remarks, Zuckerberg said his company has a responsibility to make sure what happened with Cambridge Analytica doesn’t happen again.

Zuckerberg is also expected to be asked about Russia’s use of United States social media during the 2016 elections—a subject of several congressional investigations and special counsel Robert Mueller’s probe into Russian interference.

In the statement, Zuckerberg addresses Russian election interference and acknowledges, as he has in the past, that the company was too slow to respond and that it’s “working hard to get better.”

The company has said that as many as 146 million people may have received information from a Russian agency that’s accused of orchestrating much of the cyber meddling in the election.

“We will continue working with the government to understand the

Facebook CEO Mark Zuckerberg arrives on Capitol Hill in Washington on April 9 to meet with Sen. Dianne Feinstein, Democrat-California, the ranking member of the Senate Judiciary Committee. Zuckerberg will testify about the use of Facebook data to target American voters in the 2016 election. AP/J. Scott Applewhite

full extent of Russian interference, and we will do our part not only to ensure the integrity of free and fair elections around the world but also to give everyone a voice and to be a force for good in democracy everywhere,” Zuckerberg continues.

In the testimony, Zuckerberg acknowledges that the questioning will likely be hostile.

“We face a number of important issues around privacy, safety and democracy, and you will rightfully have some hard questions for me to answer,” Zuckerberg says.

The prepared remarks do not reveal new information about how data was shared or what Facebook will do. In addition to saying he is sorry, Zuckerberg outlines the steps the company has taken to restrict outsiders’ access to people’s personal information.

He also says the company is investigating every app that had access to a large amount of information before the company moved to prevent such access in 2014— something that came too late in the Cambridge Analytica case.

We didn’t take a broad enough view of our responsibility, and that was a big mistake. It was my mistake, and I’m sorry. I started Facebook, I run it, and I’m responsible for what happens here.”—Zuckerberg

Zuckerberg met on Monday with Florida Sen. Bill Nelson, the top Democrat on the Senate Commerce panel. Nelson said afterward that Zuckerberg was “forthright and honest to the degree he could” be in the private, one-on-one meeting.

Nelson added he believes Zuckerberg is taking the congressional hearings seriously “because he knows there is going to be a hard look at regulation.”

Democrats like Nelson have argued that federal laws might be necessary to ensure user privacy.

Republicans, so far, have shown little appetite for such a regulation, but that could change if there are future privacy scandals or Democrats gain control of Congress in this November’s elections.

“I think he understands that regulation could be right around the corner,” Nelson said.

Zuckerberg was also scheduled to meet with Senate Judiciary Chairman Chuck Grassley, Republican-Iowa, and Senate Commerce Committee Chairman John Thune, Republican-South Dakota, ahead of Tuesday’s hearing.

Separately, Zuckerberg said in a Facebook post on Monday that the company is establishing an independent election research commission that will look into the effects of social media on elections and democracy.

He said the commission would work with foundations across the US to set up a committee of academic experts who will come up with research topics and select independent researchers to study them. AP

Trump fumes at Mueller probe after raid on lawyer

W

ASHINGTON—President Donald J. Trump has lashed out against special counsel Robert Mueller’s Russia investigation, branding it “an attack on our country” and exhibiting mounting concer n about the yearlong probe after federal authorities raided the offices of his personal attorney.

Caught off guard and furious with the encroaching inquiry, the president showed a flare of temper watching cable news coverage of the raid on Monday afternoon, summoning lawyers Ty Cobb and Jay Sekulow to get their opinion of what was happening.

Aides and outside allies described Trump as shaken and increasingly frustrated by the development, and they said his reaction had sparked discussion about whet her t he ra id would usher an unpredictable new phase in how the president responds to the probe.

Trump vented from the Oval Office that Mueller’s investigators were “going too far” and conducting “their witch hunt” to undermine his presidency, according to three people familiar with the president’s views but not allowed to discuss them publicly.

Minutes later he publicly unleashed his shar pest invective to date against the sweeping

investigation, calling the Monday search “a disgrace.”

“It’s an attack on our country in a true sense,” he said in the Cabinet Room, flanked by the nation’s top military brass, who watched the scene stone-faced. “It’s an attack on what we all stand for.”

Trump let loose after federal agents pierced the protective bubble around him, seizing records from the offices of longtime Trump attorney Michael Cohen, on topics including a $130,000 payment made to a porn actress who says she had sex with Trump more than a decade ago.

Cohen has been an ardent defender in Trump’s business, personal and political affairs for more than a decade. He claims to have used a personal home-equity loan to pay the adult film actress, known as Stormy Daniels—and the probe’s expansion into the president’s inner circle left Trump fuming.

The president didn’t bat away the idea of firing Mueller, saying people have advised him to take that action: “W hy don’t I just fire Mueller? Well, I think it’s a disgrace what’s going on—we’ll see what happens.”

He said the raid in New York marked a “whole new level of unfairness” by Mueller and his team.

Trump called the probe a “witch hunt,” as he has many times in the

past, complaining that it distracts from serious issues, such as consideration of a military response to the apparent use of a chemical weapon on Syrian civilians over the weekend.

That was one of the intended subjects of his Monday evening meeting with the defense secretary, the joint chiefs of staff and United States combat commanders.

Instead, with reporters in the Cabinet Room and cameras rolling, Trump opened the meeting with an unprompted four-minute critique of Mueller’s investigation.

“I just heard that they broke into the office of one of my personal lawyer’s, a good man,” Trump began, referring to agents who had obtained search warrants from a federal judge. The raid on Cohen’s office was conducted by the US Attorney’s office in Manhattan and was based at least partly on a referral from Mueller, according to Cohen’s lawyer, Stephen Ryan.

Trump blasted the Mueller team as “the most conf licted group of people I’ve ever seen,” labeling most of them Democrats and saying the few Republicans had worked for former President Barack Obama. “They’re not looking at the other side,” he complained, referencing the long investigation into former Secretary of State Hillary Clinton’s use of a

private e-mail server. “They’re not looking at the Hillary Clinton horrible things that she did and all of the crimes that she committed.”

Mueller, a lifelong Republican, and his team of attorneys have been investigating Russian interference in the 2016 election and associated misdeeds in the president’s orbit since May 2017.

Mueller reports to Deputy Attorney General Rod Rosenstein, who appointed the special counsel last year after the recusal of Attorney General Jeff Sessions and Trump’s firing of FBI Director James Comey. Trump lit into Sessions, repeating in public his private criticism of the attorney general for making a “terrible mistake” in recusing himself from the Russia probe. Trump said Sessions “should have certainly let us know” he would step aside in the probe, and we would have “put a different attorney general in.”

Word of the Cohen raid came as the White House suffers from decreased morale amid a period of staff turnover and policy unpredictability. It also comes as aides are girding for the release of Comey’s memoir next week, which promises to reveal new details about the former Federal Bureau of Investigation director’s conversations with the president and the Russia probe. AP

www.businessmirror.com.ph

Kim Jong Un briefs party leaders dialogue with US

T

OK YO — Nor t h K ore a n leader Kim Jong Un briefed top ruling party officials on his vision for the future direction of dialogue with the United States and his upcoming summit with South Korea’s president, the North’s official media reported on Tuesday.

Kim gave his “profound analysis and appraisal” of the prospects for North Korea-US dialogue at a meeting of the Politburo of the ruling party’s Central Committee, the Korean Central News Agency (KCNA) reported. The meeting was held on Monday.

The KCNA report did not specifically mention plans for Kim to hold a summit with President Donald J. Trump, expected in May or June, but it suggests Pyongyang is actively preparing for the meeting and is ready to let North Koreans know big events may be ahead.

The North ’s official media has, thus far, made virtually no mention of the series of stunning diplomatic overtures Kim has made toward Seoul and Washington since January, though it did trumpet Kim’s visit to Beijing last month to meet with Chinese leader Xi Jinping.

That was the first time Kim has left the North since assuming power in 2011 and was also his first meeting with another head of state.

Nor t h Korea’s parl iament, called the Supreme People’s Assembly, is scheduled to convene on Wednesday. T he assembly generally convenes once a year to approve the national budget and other policy and personnel issues that have already been decided on

by Kim and the party leadership.

According to the KCNA report, the party leaders who met on Monday approved a budget for this year that will be presented to the parliament.

It said Kim outlined in detail his analysis on the situation on the Korean Peninsula and mentioned the North-South summit, which will be held on the south side of the demilitarized zone on April 27.

He then discussed the “prospect of the DPRK [Democratic People’s Republic of Korea]-US dialogue and set forth the strategic and tactical issues” to be maintained by the party.

Though the report did not explicitly mention plans for the summit with Trump, it was the most concrete suggestion to date that Pyongyang is preparing for what would be the first-ever summit between a North Korean leader and a sitting US president.

Trump said on Monday that their meeting might be-late May, or even in June. The location has yet to be announced.

The main issue at the summit will be North Korea’s nuclear program. Speaking at the White House on Monday, Trump expressed hope that a deal to get Pyongyang to denuclearize might be made.

Administration officials say the North has communicated that Kim is ready to discuss his nuclear weapons program.

Questions remain about what conditions Kim might tack on to any denuclearization agreement.

Wednesday’s parliament meeting could provide further clues as to what approach Kim might intend to take for the negotiation. AP

‘US has many options on military strike vs Syria’

W

ASHINGTON—President Donald J. Trump is threatening an imminent military strike against Syria, vowing to respond “forcefully” last Saturday’s apparent chemicalweapons attack on civilians and warning that Russia or any other nation found to share responsibility will “pay a price.”

As he began a Monday evening meeting with military leaders at the White House, Trump promised to “make a decision tonight or very shortly thereafter.” He said: “We have a lot of options militarily, and we’ll be letting you know pretty soon. Probably after the fact.”

T he W h ite Hou se sh a r ply rejected any sug gestion that Trump’s own words about pulling United States troops out of Syria had opened the door for the attack, which killed more than 40 people, including children.

Trump, asked at midday whether Russian President Vladimir Putin bore any responsibility for the weekend attack, responded: “He may, yeah, he may. And if he does, it’s going to be very tough, very tough.”

He added: “Everybody’s gonna pay a price. He will. Everybody will.” Then, during the meeting with top military leaders, he said the weekend assault “will be met, and it will be met forcefully.”

Those at the meeting included Defense Secretary Jim Mattis and the chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford.

Amid the tough talk at the White House, the US military appeared to be in position to carry out any attack order. A Navy destroyer, the USS Donald Cook, was underway in the eastern Mediterranean after completing a port call in Cyprus.

The guided missile destroyer is armed with Tomahawk cruise missiles, the weapon of choice in a United States attack one year

ago on an airfield in Syria following an alleged sarin gas attack on civilians. The Russian military, which has a presence in Syria as a key Assad ally, said its officers had visited the weekend site in a suburb of Damascus, the Syrian capital, and found no evidence to back up reports of poison gas being used.

Russia’s United Nations Ambassador Vassily Nebenzia accused Washington of deliberately stoking international tensions by threatening Russia in a tone “beyond the threshold of what is acceptable, even during the Cold War.” Trump said there was little question that Syria was responsible for the apparent weekend attack, a lthough the gover nment of President Bashar alAssad denied it.

“To me, there’s not much of a doubt, but the generals will figure it out,” Trump said.

Emphatic in his condemnation of the apparent gas attack, Trump noted graphic pictures of the dead and sickened, calling the assault “heinous,” “atrocious,” “horrible” and “barbaric.”

Fielding questions at the White House, Trump Press Secretary Sarah Huckabee Sanders said it would be “outrageous” to say that Trump’s recent announcement that he intends to remove all US forces from Syria in the coming months had emboldened Assad.

“I think that it is outrageous to say that the president of the United States green-lit something as atrocious as the actions that have taken place over the last several days,” she said.

Mattis, in separate remarks at the Pentagon, also suggested Moscow bore some blame. He criticized Russia for what he suggested was its failure to ensure the elimination of Syria’s chemical-weapons arsenal under terms of a 2013 agreement. AP

The World BusinessMirror

www.businessmirror.com.ph

May hints at softer stance on EU migration in Brexit trade talks

P

rime Minister Theresa May said the United Kingdom would look at the issue of European migration as part of negotiations on a post-Brexit trade deal with the European Union (EU), an indication she may be willing to consider special treatment for the bloc’s citizens. May reiterated her aim for a comprehensive and ambitious trade deal with the EU after the divorce.

“Obviously as part of that we will be looking at the issue of movement, but we will recognize that there will be EU citizens who will still want to work and study in the UK and UK citizens who will still want to work and study in the EU27,” she said.

The UK will be out of the single market, out of the EU’s freedom of movement rules, and setting its own regulations on immigration, she said at a news conference in Copenhagen.

Controlling immigration, and putting an end to free movement from EU countries, was one of the main issues in the Brexit referendum campaign in 2016. But May’s insistence on it is one of the obstacles that will prevent the UK from keeping its access to Europe’s single market after the split.

May says she wants a trade deal that’s more ambitious than any of the EU’s previous accords.

But so far, the EU has said her aspirations aren’t feasible as they amount to cherry-picking the best bits of membership without accepting the responsibilities.

In the latest sign that May is still to be convinced of the merits of Brexit, the prime minister avoided answering a question on whether she has changed her mind on the split since campaigning for Remain in the referendum. Bloomberg News

Wednesday, April 11, 2018

A7

Xi pledges greater openness amid trade dispute with Trump

C

hinese President Xi Jinping reiterated pledges to open sectors from banking to auto manufacturing in a speech that also warned against returning to a “Cold War mentality,” amid trade disputes with his US counterpart Donald J. Trump.

Xi pledged a “new phase of opening up” in his keynote address on Tuesday to the Boao Forum for Asia, China’s answer to Davos.

While the speech offered little new policy, Xi affirmed or expanded on proposals to increase imports, lower foreign-ownership limits on manufacturing and expand protection to intellectual property—all central issues in Trump’s trade gripes.

“Human society is facing a major choice to open or close, to go forward or backward,” Xi told hundreds of investors gathered on the resort island of Hainan, in a speech that didn’t mention Trump’s name. “In today’s world, the trend of peace and cooperation is moving forward and the Cold War mentality and zero -su m-ga me t h in k ing a re outdated.”

Highlights from Xi’s speech

n Pledges to further open financial sector by year-end ; n Endorses lower foreignownership caps for carmakers

n Commits to cutting tariffs on car imports; n Vows greater intellectual property-rights protection; n Supports accelerated process to join World Trade Organization’s governmentprocurement agreement; and n Plans annual events to facilitate increased imports.

The long-planned speech— marking 40 years after the first economic reforms transformed China—was being closely watched after Trump’s plan to hit hundreds of Chinese products with duties.

Credibility gap

The country faces a credibility gap after years of promises to free up the economy were followed by more centralized control, marketaccess barriers and state support for local companies.

T hose practices are at the center of Tr ump’s threats to lev y some $150 billion of tariffs against China. The United States has asked the countr y to reduce its trade surplus by $100

China’s President Xi Jinping speaks at the Boao Forum for Asia Annual Conference in Boao, China, on April 10. Qilai Shen/Bloomberg

Paying attention only to one’s own community without thinking of others can only lead into a wall.”—Xi billion, cut tariffs on cars and stop forced technolog y transfers by foreign cor porations, among other things.

A W hite House officia l who watc hed a broadc a st of X i ’s speec h sa id t he C h inese preside nt ’s re fe re nce to autos fol low ing Tr u mp’s Tw it ter complaints about the issue ap pea red to be a n oppor t u nit y to develop t r ust bet ween t he t wo sides. T he officia l said the US was e x pect ing C hina to put concrete proposa ls for wa rd. “ The US side will likely want to see deeds, not just words, be-

fore it considers softening its protectionist stance,” Bloomberg Economics Chief A sia Economist Tom Orlik wrote in a note. “Even so, with X i ’s speech positioning China as conciliator y, the chances of a damaging trade war appear a shade lower.”

Asean, IMF leaders attend

The speech was attended by leaders, inc lud ing Phi lippine President Duter te, Singaporean Prime Minister Lee Hsien Loong and International Monetar y Fund Managing Director Christine Lagarde.

“I read muc h of t hat speec h as being about cement ing C hina’s reg iona l leadersh ip as a n open cou nt r y foster i ng f ree t rade a nd development,” Jim McC augha n, CEO at Pr inc ipa l Globa l Investors, told Bloomberg Telev ision. “ T he idea that t here is going to be a qu ic k f i x on t h is is u n l i kely.”

Since Trump’s election, Xi has presented himself as a champion of the existing global trading system, comparing protectionism to “locking yourself in a dark room” during a speech last year at the World Economic Forum in Davos, Switzerland.

On Tuesday he took a veiled s w i p e a t Tr u m p ’s “A m e r i c a First” polices. “Pay ing attention only to one’s own community without thinking of others can only lead into a wall,” X i said. “And we can only achieve w in-w in resu lts by insist ing on peaceful development and working together.”

Potential damage

Federal Reserve Bank of Dallas President Robert Kaplan said on Tuesday that trade issues between the US and China won’t get resolved soon and warned of potential damage if the dispute is prolonged.

“I really do think it is too early to judge how this is going to affect the economy,” K aplan said on Bloomberg Television from Beijing. “But I do think the rhetoric, if it goes on for long enough at this level, is having somewhat a chilling effect.”

Bloomberg News

Poised to balloon to $1T, US deficit fuels fear of crisis W

A S H I N G T O N —T h e federal government’s annua l budget deficit is set to widen significantly in the next few years, and is expected to top $1 trillion in 2020 despite healthy economic growth, according to new projections from the nonpartisan Cong ressiona l Budget Of f ice (CBO) released on Monday.

The national debt, which has exceeded $21 trillion, will soar to more than $33 trillion in 2028, according to the budget office.

By then, debt held by the public will almost match the size of the nation’s economy, reaching 96 percent of GDP, a higher level than any point since just after World War II and well past the level that economists say could court a crisis.

The fear among some economists is that rising deficits will drive up interest rates, raise borrowing costs for the private sector, tank stock prices and slow the economy, which would only drive the deficit higher.

“Such high and rising debt wou ld have ser ious negat ive consequences for the budget and the nation,” said Keith Hall, director of the budget office. “In particular, the likelihood of a fiscal crisis in the United States would increase.”

The budget office forecast is the first since President Donald J. Trump signed a sweeping tax overhaul, then signed legislation to significantly increase military and domestic spending during the next two years.

The figures are sobering, even in a political climate where deficit concerns appear to be receding.

The tax overhaul, which includes permanent tax cuts for

corporations and temporary ones for individuals, will increase the size of the economy by an average of 0.7 percent from 2018 to 2028, according to the budget office.

B ut t h at a d d e d e conom ic growth does not come close to pay ing for the ta x overhau l, which the budget office said would add more than $1.8 trillion to deficits over that period, from lost tax revenue and higher interest payments.

Many Republicans have said the tax overhaul would vault economic growth over 3 percent a year for a sustained period, generating more revenue than the tax cuts would cost.

But the budget office expects the economy to grow at an annual average rate of 1.9 percent over the next decade. Growth would start strong, at 3.3 percent this year and 2.4 percent next year, but then slow considerably.

And if the temporary tax cuts for individuals are extended past their scheduled expiration at the end of 2025, the price tag for the tax overhaul would be even greater.

Trump has talked about embarking upon “Phase 2” of tax cuts, which could include making those individual tax cuts permanent.

Democrats jumped on the projections to castigate Republicans over their economic record.

“From Day 1,” the Senate Democratic leader Chuck Schumer of New York said, “the Republican agenda has always been to balloon the deficit in order to dole out massive tax breaks to the largest corporations and wealthiest Americans, and then use the deficit as an excuse to cut Social Security and Medicare.”

The Capitol Building in Washington on April 9. The government’s mounting debt has seemed of little consequence on Capitol Hill in recent months as Republicans in Congress successfully worked to pass a sweeping package of tax cuts. Pete Marovich/The New York Times

Rep. Nancy Pelosi of California, the House Democratic leader, was equally harsh: “The CBO’s report exposes the staggering costs of the GOP tax scam and Republicans’ contempt for fiscal responsibility.”

For their part, Republicans were remarkably quiet: “ Without quest ion, we h ave c h a llenging work ahead,” said Rep. Steve Womack of Arkansas, the chairman of the House Budget Committee.

This fiscal year, which ends on September 30, the budget deficit

is expected to total $804 billion, up from $665 billion last fiscal year, according to the projections.

In a decade, the red ink is expected to reach $1.5 trillion.

The forecast is considerably bleaker than the budget office’s projections in June last year, before Congress approved the tax cuts and agreed to increase spending.

The $804 billion projected deficit for the current fiscal year is $242 billion larger than what the budget office had expected in June.

In addition, the budget office now projects a cumulative deficit of $11.7 trillion over the next decade, an increase of $1.6 trillion from last June’s projection for that time period.

By 2023 accord i ng to t he budget of f ice, interest costs are projected to exceed what the government spends on the military. By 2028, interest payments will reach $915 billion, more than triple the interest costs last year.

The government’s mounting debt has seemed of little conse-

quence on Capitol Hill in recent months as Republicans in Congress passed a sweeping package of tax cuts. But in a sign that Republicans are growing concerned about the political liability of soaring deficits, the House will vote on Thursday on a constitutional amendment to require balanced budgets.

Rep. Jeff Duncan, a conservative Republican from South Carolina, took to Twitter to say, “To every House Democrat on social media today complaining about the debt and deficit for the first time: I look forward to seeing you vote for the balanced budget amendment later this week. That is of course assuming you are actually serious about addressing our debt.”

Si nce suc h con st it ut ion a l amendments require two-thirds of the House and Senate to agree, it is unlikely to pass Congress, let alone be ratified by the states.

But the flurry of recent legislation is making it difficult for Republicans to continue blaming President Barack Obama and Democrats for the government’s fiscal condition.

T h i s y e a r l aw m a k e r s a p proved a two-year budget deal that raised strict caps on military and domestic spending by a total of about $300 billion. That deal paved the way for Congress to pass a $1.3 trillion spending bill last month.

Before passing the tax overhaul and the spending legislation, lawmakers were already facing worrisome projections about growing deficits, driven by increased spending on Medicare and Social Security, as well as growing interest costs.

New York Times News Service

A8

The Regions

Wednesday, April 11, 2018 • Editor: Dennis D. Estopace

BusinessMirror

www.businessmirror.com.ph

Mindanao shows compliance to standards in biz permits

D

AVAO CITY—Businesses here and in the rest of Mindanao show remarkable performance in terms of complying with world standards in the processing of new and renewal of permits, a government agency’s poll revealed.

The regional Department of Trade and Industry (DTI) here said the 2017 Cities and Municipalities Competitiveness Index survey shows a high of 96.7-percent compliance among businesses in the region in processing new applications and a similarly high 94.8 percent for renewal of business permits.

“This is in terms of issuing the business permits within one [day] to two days upon receipt of the application form with the prerequired documents,” the DTI said in a statement.

Some 71.5 percent of local government units (LGUs) were also found compliant with completing the business-registration process within three steps for the new applications. Some 70.6 percent of LGUs were also found compliant for the steps related to renewal applications.

However, a quarter of local governments in the Davao region were

reported to take longer to as far as four steps (28.5 percent of the LGUs for new applications and 29.4 percent for renewal) to process the applications, the DTI added.

DTI Regional Director Maria Belenda Q. Ambi credited the improvement in processing business permits and licenses to the “competitiveness-related reforms” pegged on global rating standards.

The DTI cited the recent “Doing Business Report” by the International Finance Corp., which ranked the Philippines 113th out of 190 economies in 2018, a rank 35 notches higher from 148th in 2010.

The DTI said the IFC report “captures important dimensions of the regulatory environment, such as, starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, en-

forcing contracts and resolving insolvency.”

Here, the DTI also recently conducted provincial road shows to bring closer the reforms to the LGUs “to improve their competitiveness, and by being more competitive, more investments are expected to come in.”

“There is an upward trend as we look back into our performance in the ease of doing business, as well as, competitiveness,” Ambi said.

“However, reaching the higher ranks would require intense public and private collaboration, for while we are doing our best to improve, other LGUs are also doing the same.”

In these provincial road shows, the DTI’s Regional Industry Development Division would discuss the compliance rating of every LGU in adapting to the 2016 Business Permit and Licensing System standards “as well as their overall competitiveness performance in the rankings.”

The road shows have been held in Davao del Sur, Davao del Norte, Compostela Valley and Davao Occidental. Those invited included these provinces’ respective local chief executives, business permit and licensing officers, local economic and investment promotion officers, city or municipality treasurers, city or municipal local government operations officers, and other local officials involved in the whole businessregistration process.

There were also representatives from the business sector. Manuel T. Cayon

STRAWBERRY SHOWCASE

A lady sits beside fresh and bottled strawberries on her stall at a public market in La Trinidad, Benguet.

As part of this upland town’s culture and tradition, this year’s annual celebration dubbed as “Strawberry Festival” was observed from March 9 to 27. SUZANNE JUNE G. PERANTE

Female cop, 5 kidnappers dead in rescue of suspected drug lord

By Rene Acosta

@reneacostaBM

P

OLICEMEN rescued a kidnap victim and killed his five captors during a shoot-out in Laguna on Tuesday, wherein five others, including the victim, were also wounded.

One of the wounded, a policewoman identified as Police Officer 1 Sarah Jane Andal, reportedly died en route to an unnamed hospital.

Senior Supt. Glenn Dumlao, director of the Anti-Kidnapping Group (AKG), said exchange of gunfire erupted around 6 a.m. during an arranged payment of the ransom for Ronald Arguelles somewhere in Alaminos, Laguna.

Arguelles was abducted on Mon-

day by armed men disguised as members of the Philippine Drug Enforcement Agency who barged inside the victim’s house in Candelaria, Quezon.

Arguelles was reportedly listed as among the high value targets of the Quezon Provincial Police Office in its anti-illegal drugs war. He has been jailed twice and currently out on bail.

Dumlao said follow-up operations led lawmen to an Isuzu Sportivo bearing temporary plate 989 that was believed to be the vehicle of the kidnap suspects.

The suspects allegedly demanded P800,000 for Arguelles’s release.

The payment was to be made in Alaminos.

Apparently sensing the pres-

ence of lawmen, the suspects allegedly fired at the policemen and fled toward Maharlika Highway in San Pablo City, Laguna. Police said a chase ensued and the suspects were killed during that chase.

Arguelles, Andal and three other policemen were wounded.

Philippine National Police Chief, Director General Ronald M. dela Rosa identified the other wounded policemen during a news briefing on Tuesday as PO1 Mendoza, PO1 Orlanes and PO1 Villaflor.

“The killed suspects were identified through their police uniforms in camouflage as SPO2 Adalla, SPO3 Fernandez, PO3 Dizon, PO2 Rebadulla, and another still unidentified person,” dela Rosa said.

10 Lanao del Sur E. Visayas infra projects execs surrender to be expedited—DPWH loose firearms

M

A DA LU M , L a n ao de l Sur—A total of 128 assorted loose fire arms from 10 Lanao del Sur towns were handed over during rites commemorating the Day of Valor in this municipality on Monday.

The loose firearms were turned over by the mayors of Madalum, Madamba, Ganasi, Lumbatan, Binadayan, Calanogas, Balindog, Pagayawan, Tugaya and Bayang towns to Maj. Gen. Roseller Murillo, commander of the Philippine Army’s First Infantry Division.

Murillo lauded the local town executives for their cooperation in the military’s campaign against loose firearms in the province.

Murillo said the surrender of loose firearms “will save numerous lives” and would do much to contribute to “the lasting peace” in the province and in Mindanao.

Sultan Usman Sarangani Sr., former mayor of this town, underscored the importance of yielding loose guns in order to minimize rido (clan war) incidents, which he noted has bedeviled Lanao del Sur for decades.

Sultan Sarangani also called on residents in the neighboring municipalities who still possess more loose guns to “turn them over to the authorities despite the fact that for a Maranao, owning a gun is a status symbol.”

Maranaos also use firearms to “defend themselves” but the former mayor said the lesser the number of unlicensed guns in the province, the more peace was achievable. PNA

T

ACLOBAN CITY—The higher limit of delegated authority to five district engineering offices of the Department of Public Works and Highways (DPWH) would fast-track high-impact projects in Eastern Visayas, a public works official has said.

This development would help the regional office focus on the supervision of bigger projects, Edgar Tabacon, head of DPWH 8 Eastern Visayas, said on Tuesday.

Among the district engineering offices nationwide with delegated authority to approve projects worth up to P100 million are those in Eastern Samar, Leyte’s fourth district, Northern Samar’s second district, Samar’s first district and Southern Leyte. The region has 13 DPWH district offices in Tacloban City, and the provinces of Biliran, Eastern Samar, Leyte, Northern Samar, Samar and Southern Leyte.

Prior to the issuance of Department Order 20 on January 31, all district public works offices in the region were only authorized to plan and design projects that cost no more than P50 million.

“This change only shows that the central office recognizes the capability of our district offices,” Tabacon said. “They have noted during the design audit that these field offices are capable of managing bigger projects in accordance with standards of the department.”

“If the load is proportionally distributed, it is easier to accomplish things rather [than place] the burden to the regional office,” he added.

Last year at least 571 infrastructure projects had been completed in the region as the government poured more investments in widening roads and strengthening bridges. The regional office received a budget of P23.48 billion for 2018. PNA

Leyte farming program covers over 250 villages

T

ACLOBAN CITY—At least 80 more villages in Leyte province will be covered by the compact farming program of the provincial government that aims to alleviate extreme poverty in rural communities.

These villages are in addition to the 172 villages that have been implementing the program, which was officially dubbed as “More Income in the Countryside” compact farming for high-value vegetables and fruit crops.

“We are using this economic development as primary tool in fixing problems on poverty, [and] criminality including insurgency,” Leyte Gov. Leopoldo Dominico L. Petilla said on Tuesday.

Since the program’s launch, enrolled villages in the province have experienced dramatic economic development from major improvements of infrastructure and increase in food production.

The most successful is Villaconzoilo, a village 7 kilometers away from the town center of Jaro, Leyte. Aside from being the most impoverished area in the province in the past, the village was also affected by insurgency.

From producing high-value vegetables with a start-up capital of P1,800 from members’ contributions, the village evolved into a top farm-tourism destination in the province. PNA

ExportUnlimited BusinessMirror

Editor: Efleda P. Campos • Wednesday, April 11, 2018 A9

DTI-EMB projects $122-B exports by 2022

By Kristina Noelle S. Andaya

Trade-Industry Development Specialist (TIDS) Knowledge Processing Division

T

HE Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) is confident that the country’s exports will reach at least $122 billion by 2022, through the efforts of the electronics, processed food and beverages, and services sectors, particularly the information technology-business process management (IT-BPM) sector.

“There are moves to upscale our IT-BPM sector. There are challenges for the Philippines’s export growth.

It is more risky. There are policy threats in major markets. There are constraints in what we’re doing in the negotiations in free-trade agreements, and there are technological breakdowns that we have to look at.

The IT-BPM sector is not shielded from this, and we have to find ways to have more value-added IT-BPM that will make the services sector more relevant and productive for our economy,” DTI-EMB Director Senen M. Perlada said.

The DTI-EMB is working on the country’s exports to balance the trade and be able to address the growing trade deficit with the second-largest economy in the

DTI-EMB Director Senen M. Perlada projects Philippine exports to reach $122 billion by 2022.

world. This November, the Philippines will participate at the China International Import Expo (CIIE), China’s biggest import exposition, that would give the Philippines

the opportunity to sell to the consumer market in China.

The DTI-EMB pushes for wearables, furniture and furnishings, and gifts, décor and houseware

as well as agricultural products, such as bananas, mangoes, papayas and pineapples.

“Because of the newfound wealth in China, a lot of consumers really want to try something that they would like to import from abroad.

The CIIE will be the best platform for us to start doing that,” Perlada said.

He noted the DTI is strengthening the efforts of the country’s e-commerce sector to facilitate its participation in China’s huge ecommerce market.

“We have to address our suppliability. We have capacities for manufactured exports like electronics but, when it comes to fresh and processed foods, our difficulty is to have the quantity the market can absorb from us,” Perlada added.

Halal Philippines products showcased in Mihas 2018 DTI-EMB supports

OPENING the Philippine Pavilion at Mihas 2018 on April 4 are (from left) Ahmad Nasaruddin Mohd Noor (Asean and Oceania Section, Matrade); Assistant Secretary Abdulgani Macatoman of the Department of Trade and Industry; Philippine Ambassador to Malaysia Charles C. Jose; and Katrina Banzon, commercial attaché of the PTIC-Kuala Lumpur.

By Katrina Banzon

Commercial Attaché, PTIC-Kuala Lumpur

T

HE Philippines is ready to compete in the $5.73-trillion global halal market.

This was shown by the country’s participation in the 15th Malaysia

International Halal showcased in Mihas 2018.

The Philippine Pavilion was officially opened on April 4, 2018, attended by Charles C. Jose, ambassador of the Philippines to Malaysia; and Abdulgani Macatoman, assistant secretary

of the Department of Trade and Industry (DTI) and head of the Philippine delegation. Representatives from the Philippine Trade and Investment Center (PTIC) in Kuala Lumpur and Malaysia Ex ter na l Trade Development Corp. (Matrade) were also present for the ribbon cutting. All 24 exhibitors and guests witnessed the event.

Ambassador Jose asserted that “the Philippines is ready to participate office in Malaysia, the Philippine Trade the big world halal market.”

The sentiment was echoed by Macatoman in his speech during the opening ceremony.

Both pledged support to the effort of the country’s halal-product exporters from the Embassy of the Republic of the Philippines in Malaysia, the PTIC-Kuala Lumpur.

The Philippine Pavilion consisted of new and repeat exhibitors. The new exhibitors provided fresh offerings of unique, organic and superior food and cosmetic products, while the repeat exhibi-

tors served as testimonials to their success in Mihas 2017. Screened carefully by the DTI-Export Marketing Bureau (EMB), all the exhibitors represented the finest products of “Halal Philippines”—the banner industry development and tradepromotion program of the Philippine government.

Other partner and supporting agencies under the Philippine Pavilion are the Zamboanga City Special Economic Zone Authority and the Department of Tourism, promoting the Asian Halal Hub and Muslim-friendly tourism, respectively.

Mihas is an annual event organized by the Matrade, now in its 15th year. Mihas usually coincides with the World Halal Conference.

Mihas 2018 was participated by 40 countries from mostly Asean, East Asia, South Asia and the Middle East.

Mihas 2018 was housed for the first time in the Malaysia International Trade and Exhibition Centre, the country’s largest exhibition venue.

DTI-EMB holds information session on Doing Business with 3 African countries

By Gina A. Verdeflor

Market Officer, Market Innovation Division DTI-EMB

I

N preparation for the Outbound Business Mission to three African countries from August to September this year, the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) held an information session on Doing Business with South Africa, Mozambique, and Zambia on March 28 at the DTI-International Building in Makati City.

Speakers during the seminar included Marthinus Nicolaas Slabber, ambassador extraordinary and plenipotentiary, Embassy of the Republic of South Africa, Manila; Philippine Honorary Consul Donald Tulcidas, Mozambique; Alona V. Obispo, country representative, Philippines-Asia, (commercial attaché); and Agnes R. Legaspi, EMB assistant director. All stressed the importance of partnerships that will benefit both the people of the three African countries and the Philippines.

South Africa was the largest trading partner of the Philippines among African countries and the 44th in the world

AMBASSADOR Marthinus Nicolaas Slabber of South African Embassy in Manila presents the opportunities in Doing Business with South Africa in a recent information session held at the DTI International Building in Makati City.

in 2017. The Philippines’s total trade with South Africa last year amounted to $171.2 million, with the Philippines as a net exporter, with export receipts valued at $117.5 million, and imports valued at $53.7 million.

Zambia and Mozambique were the Philippines’s 159th and 150th trading partners, respectively, in 2017. Unlike in South Africa, the Philippines was a net importer of

these two African countries, with imports valued at $0.7 million for Mozambique and $0.3 million for Zambia.

The Philippines exported $100,000 worth of goods to Zambia and only $6,543 to Mozambique.

Slabber believed South Africa and the Philippines have a lot to learn from each other and that there were significant opportunities for closer

collaboration, particularly in the areas of trade and investment.

The South African Embassy in Manila works closely with the DTI and the Philippine Chamber of Commerce and Industry in establishing a Joint Trade Committee with the Philippines.

A bilateral trade agreement is already in place and the two countries are working on exchanging a number of trade delegations during 2018.

PHL regions through export-info sessions

By Golda Kristy T. Grospe

Market Innovation Division DTI-Export Marketing Bureau

A

S part of its continuing efforts to propel domestic enterprises toward competitiveness and sustainability in the global market, the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) has lined up a series of information sessions in various regions of the Philippines this year.

The initiative is designed to advance the know-how of domestic manufacturers and exporters about export trade through plenar y discussions facilitated by experts in the field. It also opens opportunities for comprehensive consultation with the resource speakers through one-on-one coaching.

Recently, the DTI-EMB collaborated with the DTI Region 4A for the conduct of the Philippine Export Competitiveness Program and Doing Business in Free Trade Areas information session in Calabarzon. Held in Tagaytay City, it was attended by more than 100 participants, mostly composed of existing exporters and potential exporters from the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.

Dur ing the session, DTIEMB Assistant Director Agnes Perpetua R. Legaspi discussed the benefits of the free-trade agreements and urged exporters shipping to economies where the Philippines has signed an FTA to avail themselves of these benefits and maximize its utilization. She said that, with these agreements, duties and other regulations of commerce are eliminated on substantially all the trade between partner countries. She added the Philippines engages in FTA to maintain competitiveness, promote cross-border complementation, sustain inflow of investments and benefit consumers.

Gina G. Yap, senior trade industry development specialist of the EMB’s Market Innovation Division, familiarized partici-

pants with the rudiments of doing business in the United States and Canada. Her presentation coincided with the preparations being carried out by the DTI 4A in line with its involvement in “Fiesta in America” in New Jersey and the fifth Annual Coconut Festival and Marketplace in Toronto, both slated in August 2018.

Meanwhile, John Derrick Anchinges, Trade Industry Development analyst of the EMB’s Export Assistance and Business Matching Division, discussed the Client Profile Registration System in relation to export procedures.

Vic Soriano, chief of EMB’s Knowledge Processing Division (KPD) presented Tradeline Philippines, the bureau’s businessintelligence platform that aims to deliver timely and relevant information and assistance to existing and potential exporters to enhance their capabilities and competitiveness as suppliers of quality goods and services to global markets. He urged the exporters, to take advantage of the free registration to Tradeline Philippines’s online businessmatching system, accessible via businessmatching.dti.gov.ph, to expand their opportunities in finding foreign buyers.

DTI 4A Assistant Director Ma rce l i n a S. A lc a nt a ra e xpressed her full support and appreciation for the conduct of the information session in Calabarzon.

“We want to help Calabarzon exporters and potential exporters to become more competitive by providing them valuable information on productivity, innovation and updates on export trends. Moreover, we want to help in sustaining the export growth,” she said.

The DTI-EMB is set to organize within the year more exportrelated information sessions in other key areas of the country, as it adapts a more purposive and regional approach in adhering to its mission to champion export growth through strategic promotions founded on a comprehensive base of knowledge.

DTI-EMB, PTIC-Toronto to lead PHL delegation to OBMM, SIAL Canada 2018

By Myrtle Faye L. Solina

Trade-Investment Development Specialist DTI-EMB

T

HE Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) and the Philippine Trade and Investment Center (PTIC)-Toronto will lead the Philippine delegation for the Outbound Business Matching Mission (OBMM)

on April 26 and May 10 and the participation to SIAL 2018 from May 2 to 4 at Palais des Congrès, Montreal, Canada.

To be led by EMB Director Senen M. Perlada and Senior Trade Commissioner Maria Roseni M. Alvero of PTIC-Toronto, 12 out of the 14 Philippine participants are featured on Trade Facilitation Office (TFO)-Canada’s web site.

TFO-Canada is a provider of consultancy and trade leads for exporters

in emerging and developing countries who want to penetrate the Canadian market. They also extend web-based resources to advance the trade capacities of their pool of registered exporters. Some of these web-based resources tackle Overview of Intellectual Property: Trademarks for small and medium sized exporters, Preparing for Trade Show Participation, Halal Market in Canada, Understanding the Proposed

Safe Food for Canadians Regulations, and Food Safety Systems: A Competitive Edge for Suppliers.

Last year the EMB in coordination with PTIC-Toronto submitted a proposal to TFO-Canada presenting the current needs and requirements of the companies interested to participate in the OBMM to Canada. TFO-Canada assessed the submitted proposal together with the profiles of the exporters. EMB

received the letter of acceptance from TFO-Canada in November 2017 and continuous collaboration among EMB, PTIC-Toronto and TFO-Canada followed in preparation for the OBMM to Canada.

Participating exporting companies are being assisted through various global export advancement initiatives such as information session focused on the Canadian market, preparing and ushering them to strategic marketing and

promotions by participating in SIAL Canada 2018 and market access support by facilitating the web-based resources of TFO-Canada. The delegation is composed of representatives from Bahaghari Global Food Inc.; CocoPlus Aquarian Development Corp.; GreenLife Coconut Products Philippines Inc.; KF Nutri Foods International Inc.; La Carlota Food Enterprises; Lao Integrated Farms Inc. and Le Potager Inc. (The Fruit Garden).

A10 Wednesday, April 11, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Duterte as rice czar

T

here were early warning signs that the National Food Authority was in trouble. Data from the Philippine Statistics Authority showed that the rice stock held by the food agency as of January 1 fell by 80 percent to 106,860 metric tons from the previous year’s 547,460 MT. The NFA also failed to beef up its rice stockpile during the main harvest based on figures from the PSA. Its rice stock of 191,860 MT as of October 1, 2017, was nearly 65 percent lower than the 545,990 MT recorded a year ago.

The volume continued to decline, prompting the food agency to warn in January that its rice buffer stock would be wiped out in two months.

The food agency’s hands were practically tied. It could not import sans the go signal of the NFA Council, the highest policymaking body of the NFA, and it could not buy local rice because there was little harvest during the months of December to February. Also, the food agency’s support price was simply uncompetitive compared to the prices being offered by traders. Its plea to raise government-support price temporarily was shot down by the NFAC, as it could accelerate inflation.

Despite the announcement of the NFA that its rice stockpile had been nearly wiped out on April 4, the hemming and hawing among concerned government officials continued. Unfortunately, their talk will not produce the rice needed by the poor and the victims of natural disasters. This probably led to the decision of President Duterte to step in and put an end to the dilemma of the NFA by declaring that the food agency will now be under his supervision. Duterte himself ordered the food agency to import 500,000 MT of rice, which would arrive next month.

By practically acting as the country’s rice czar, the President has removed the bureaucratic delays that have made it difficult for the NFA to fulfill its mandate. Many in Duterte’s economic team seem to have forgotten that, until and unless Congress has enacted measures that would abolish the food agency or reinvent its role, the NFA would continue to perform its functions.

Unfortunately, the President’s decision to let the NFA import 500,000 MT of rice may be a case of too little, too late. The volume would arrive in May, just in time for the lean season, which would start in July. But from now until the imports arrive, the NFA would have to make do with a thinning stockpile. And it looks as though the food agency would have difficulty hitting its procurement goal in the months of April and May. Duterte already taken the first step as rice czar to at least stop prices from skyrocketing by ordering the importation. But it would be interesting to see what he would do in the next few months, when the NFA would again be confronted with difficulties in beefing up its stockpile via domestic procurement. The President has declared before that his administration’s priority is to buy more rice from local farmers, so he must take the necessary steps to make this happen.

Keeping the flame of love burning Art Amansec

All About Social Security

T

he number of senior citizens, or those who are aged 60 and above, are increasing in the Philippines. Based on the latest study of the Population Commission, by year-end 2018 there will be 8,013,059 Filipinos over 60, constituting 8.2 percent of Filipinos. Of this group, 5,082,049 will be 65 and older.

Of the more-than 8 million senior citizens by year-end, a significant number will be pensioners of the Social Security System. As of December 2017 the pension fund has 2.3 million pensioners and, based on actuarial projections, the number of SSS pensioners will increase by 100,000 to 150,000 every year.

In 2012 the SSS implemented the Annual Confirmation of Pensioners system, which requires pensioners to annually report to the SSS or to banks where they receive their

pension for continuous payment of their monthly pension. The Acop intends to protect SSS beneficiaries and the SSS fund from fraudulent claims like cases when a pensioner is already dead but is still receiving his monthly pension.

In this annual kamustahan between the SSS and its pensioners, a good number of pensioners have requested to waive complying with the Acop so they could save time and money in reporting to the SSS branch or bank.

The Buddha’s smile

Since 2005

BusinessMirror A broader look at today’s business

Teddy Locsin Jr.

Free fire

✝ Ambassador Antonio L. Cabangon Chua

Continued from A1

Founder Publisher

T. Anthony C. Cabangon

Editor in Chief

Jun B. Vallecera

Managing Editor Associate Editor News Editor

Max V. de Leon Jennifer A. Ng Vittorio V. Vitug

Senior Editors

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

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager VP HR and Admin

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan Loida S. Virtudazo

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

‘N

ot surprisingly, the first thing extremists do, after indulging in the most bestial acts of inhumanity, is destroy famous landmarks of civilization: the giant Buddha in Afghanistan, the ancient monuments of human achievement in Syria and Iraq.

“Our theme, ‘Preventing Violent Extremism and Sustaining Peace,’ highlights the urgency for member-states to pursue individual and collective measures, as well as complex and diverse approaches—best suited to varied circumstances—to defeat violent extremism. It must never be accommodated. It has no place in the world.

“Since the beginning of the 21st century, there has been more than a nine-fold increase in the number of casualties from violent extremism.1 More than 40 countries have experienced at least one attack.2 It does not temper the outrageousness of the situation that more deaths happen in bathrooms and from drunk driving as we are repeatedly told. That is comparing pineapples and grenades.

“In July 2016 the General Assembly adopted the secretary-general’s Plan of Action to Prevent Violent Extremism, which recognized that “violent extremism cannot and should not be associated with any

religion, nationality, civilization or ethnic group.” However, it would be foolhardy to ignore that religion, nationalism, twisted history and false notions of ethnicity—as matters of pride or contempt—are exploited as vile excuses to destroy civilization defined as the decent behavior of mankind.

“The Duterte administration’s plan of action rightly connects violent extremism and the most egregious criminal activities known to man: violent extremism and drug and human trafficking. These are today’s trinity of evil. The Plan treats them all holistically, which is to say with unflagging tenacity on all three fronts simultaneously to stop any one from helping the other two. We will not waste time, resources and energy trying to understand violent extremism except to discover the weaknesses whereby it can be defeated. It is the simplest thing imaginable: pure evil with no excuse or good reason.

“The Philippines and Pakistan

So, late last year, the SSS piloted a new way to help pensioners comply with the Acop. The pension fund forged an agreement with the Philippine Statistics Authority (PSA) for checking of retiree pensioners. Starting October 2017, retiree pensioners aged 84 years old and below who are residing in the Philippines need not go to any SSS branch or depository bank for the Acop.

This means that more than 1.86 million retiree pensioners are now able to have extra time for other activities and savings from the cost of transport going to the SSS or their depository bank because the SSS is now doing the Acop for them through the PSA and other verification processes.

However, since the dropping of the Acop is a pilot program, other types of pensioners still have to report annually to the SSS or their depository bank for the Acop. This includes pensioners who are residing abroad, total disability pensioners in the Philippines, survivor pensioners and minor or incapacitated dependent pensioners.

Further, retiree pensioners based

in the Philippines who are 85 years old and above and survivor pensioners who cannot report personally due to sickness, illness or injury are still required to comply with the the Acop, but through the mandatory domiciliary or home visit of an SSS employee or doctor.

For pensioners abroad, there are numerous ways of reporting to the the SSS, primary of which is the “Acop thru Video Conference” for easier and faster compliance with the Acop.

The SSS’s Acop requirement is just a click away. To make an appointment with the SSS, simply send an e-mail to ofw.relations@sss.gov.ph or to member_relations@sss.gov.ph indicating in the subject line “Skype [Acop], pensioner’s name and SSS number.”

SSS pensioners are the pillars of the SSS because their contributions made during their productive years serve as lifeblood of the pension fund. Their monthly pension is the fruit of years of hard work and perseverance. Naturally, the SSS will have to love back its pensioners by giving them the privileges and conveniences that they justly deserve.

have repeatedly urged interreligious and intercultural dialogue precisely to address, through intellectual exchanges, the vile misuse of religion and culture to destroy true civilization, which is best attained and sustained by the rich diversity of religious, political and cultural expressions. Diversity does not divide or destroy civilization but enriches it.

It was Alexander the Great who put the smile on the Bactrian Buddha’s face, said Malraux on Voix du Silence.

“Excellencies. Allow me to present the recommendations of the Philippines: n “We should support the development of a broader political plan for the conduct of military operations against extremist groups. Lacking such a plan will only worsen the chaos that extremism first creates and then feeds on. True, there is no one-size-fits-all approach; but it cannot be overemphasized that, once identified and clearly demarcated, there is only one rational and effective response to violent extremism.

Capitulation is never an option. n “Programs and activities to prevent violent extremism and sustain peace must not include what is wrongly called the root causes of violent extremism. Wrongly because violent extremism is the human inclination to do harm and the intense satisfaction of doing it—when you can get away with it. True, there are circumstances in which extremism flourishes once it breaks out and is not suppressed immediately. These are injustice, inequality, exclusion and the sense of helplessness. But none of these directly produce violent extremism. Indeed, when violent extremism is accepted as somehow justified by

these factors, then men lose all prudential sense and patience. They turn to violence to avenge grievances, while demanding an instant redress that is impossible to achieve in the chaos they create. Civilization is about order, or it does not exist. n “We must strengthen the first-responder capacity of local governments in delivering essential public services and providing public safety. It helps if we can foster that trust—in community and institutions—without which the public patience essential to reform is lost, and revenge takes its place; not as solution but as satisfaction. n “We should continue to push for women empowerment and youth engagement. Women are instruments of peace; and the uninstructed youth are easily enticed by men to war. n “We must work with faithbased organizations and religious leaders to stop the misuse of faith for its diametrical opposite: the violence that compels obedience but never belief through love and wonder.”

I was the third speaker. The panel dealt at tremendous length with administrative matters; followed by statements from the floor; to wit, particular aspects of the program of activities announced by the chef de cabinet along with the announcement about some problem with holding a conference.

1 UNDP Global Meeting on Preventing Violent Extremism & Promoting Inclusive Development, Tolerance and Diversity (Concept Note), March 14 to 16, 2016 2 www.undp.org/oslo_governance_ centre.html (accessed on March 27, 2018)

Opinion BusinessMirror

www.businessmirror.com.ph

Wednesday, April 11, 2018 A11

China offers ‘Tianxia’ InsurTech: Enhancing the agent-client interaction philosophy to unite world?

Dennis B. Funa

INSURANCE FORUM

Michael Makabenta Alunan

on the contrary

A

S world attention is now focused on the April 8 to 11 Boao Forum for Asia in Boao, Hainan, China, it is worth studying “Tianxia,” one of the many ancient Chinese philosophies that offer world unity, which we can lock-in China to this commitment to counter fears its rise to superpower may create a hegemon that could lead to wars as what happened to superpowers and empires in history.

n Sleeping giant awakens.

These fears are valid after witnessing China’s malicious creeping encroachment into our waters, although there are many conflicting reasons how this issue evolved and heated up.

We now see this once “sleeping giant” waking up, and growing huge.

Imagine, in 2000, Japan was larger than the combined economies of China, South Korea, India, Southeast Asia, Australia and New Zealand.

But by 2015 China was already as large as all these economies combined, and a “power shift” indeed took place, said Takashi Shiraishi of Japan External Trade Organization. n “Neo-con hawks” threatened by peace? The “neo-conservative war-mongering hawks,” representing the military-industrial complex, are threatened not much because China has become a superpower, but more so because China seems to still keep its cool relatively, despite all sorts of heated provocations and near skirmishes.

Expectedly, war hawks want to perpetuate the outdated system of “geopolitics,” perpetual “Cold War” and “regime changes” or power grabs as the war industry benefits from continuous wars and revolutions.

This reminds us of British Prime Minister Lord Palmerston of the British empire, who once said “there are no permanent friends, but permanent interests” and that there should be “permanent wars and permanent revolutions.” These ideas on permanent war were pursued by British intelligence Parvus (real name Alexander Gelfhand), who influenced Vladimir Lenin and later Leon Trotsky, who advocated for “permanent revolutions.”

But it is this culture of continuous wars, particularly in the Middle East, that has cost $7 trillion for over a decade during the Bush-Obama administrations, President Donald J. Trump said, whose position to talk peace and do business with arch enemies Russia and China is also threatening the hawks, thus the campaign to vilify and possibly remove him by linking him to Russiagate. n Waging wars in the mind.

The worst war waging is a propaganda war of ideas (battle of minds of intellectuals), whose ideas once translated into policies could spell boom or doom, prosperity or poverty, fortune or destruction.

One thinker, who justifies continuous conflicts, is Samuel Huntington, author of The Clash of Civilizations, particularly the conflict between Muslims versus Christians, Jews versus Muslims, and among Muslims (Sunni versus Shiites).

Another is Harvard Prof. Graham Allison’s book, Destined For War: America, China and Thucydides’s Trap, which I wrote about two years ago at the height of conflicts with China.

Allison’s thesis is scary as it posits the “Thucydides Trap” idea that the rise of a power brings hubris or arrogance, and fear and loss of honor of old powers, that make war inevitable, similar to the stupid 28year Peloponnesian wars between Athens and Sparta that led to the Greek civilization’s downfall. Allison’s thesis was debunked by academicians Yale Prof. Donald Kagan and Harvard Prof. Ernst Badian, who claimed “there was no such thing as the Thucydides Trap.”

Francis Fukuyama’s book, The End

of History and the Last Man, argues there are no more new ideas that could emerge, as he endorses the current liberal democracy and freemarket capitalism as the be-all and end-all system for all.

Fukuyama, who writes voluminous tomes of work, is a brilliant scholar, but his End of History sweeping statement, triggered the beginning of his end as he was barraged with strong counterarguments from brilliant economists. China’s case is one such counter-model. n Risk is history? The danger of rooting for either traditional antagonists like US and China or Russia is we may be drawn into a potential nuclear war that can occur due to senseless blunders out of ignorance, or reckless aggression, or mere hubris or loss of pride and patience on any party, including ourselves as go-betweens.

The situation is fraught with danger that one false move can lead to nuclear war that could annihilate the entire humankind in an hour or two. The risks are not in the future, nor are the risks already history, but are still very much present.

In fact, détente for a Mutually Assured Destruction with superpowers as an acceptable deterrence to war is no real deterrent as it is like talking peace on the table with powder kegs under.

Tianxia shows future of peace?

This brings us to the only alternative to war and geopolitical conflicts— China’s Belt and Road Initiative (BRI) and Xi Jinping’s “Win-Win Development Agenda.”

Moreover, if 140 countries have joined or are interested in China’s BRI, why can’t we do the same. It is also worth learning one of the ancient Chinese philosophies providing the theoretical underpinnings to China’s BRI—Tianxia, as popularized by Prof. Zhao Tingyang, China’s most influential contemporary philosopher and author of Tianxia System: An Introduction to the Philosophy of World Institutions.

Tianxia means “all under heaven” coexisting harmoniously. He said Tianxia was developed 3,000 years ago under the Zhou Dynasty, China’s longest dynasty. It is a version of today’s “inclusivity” concept, as it puts all, even negative elements, under one tent. It is the “art of coexisting through transforming hostility into hospitality—a clear alternative to Hitler’s German legal theorist Carl Schmitt’s politics of “Us versus Them,” or Hans Morgenthau’s “realist” struggle for power and Samuel Huntington’s “clash of civilizations.”

Tianxia involves a trinity of realms: 1) Earth under the Sky or “all under heaven;” 2) General will of all peoples (concept of common good) involving heart more than mind; 3) Universal system responsible for world order. Tianxia is not attained, unless all three realms coincide. n Go wow with Boao. There is no choice, but to go wow with China’s BRI thrust as reiterated at Boao, by Xi Jinping, who rejected the idea of hegemons, pushed for world prosperity, a common destiny for all, and promised specific reforms easing trade war potentials with China. The Boao Forum is significant as it was formed starting with a proposal in 1998 by former President Fidel V. Ramos along with other Asian leaders.

A

nother technological development happening in the insurance industry is the manner by which insurance agents or financial advisors engage the client in the sales process.

Pioneering in this innovation is Philam Life through the introduction of its Interactive Point of Sales (iPoS) system using a tablet, or in their case, the iPad. It is the first of its kind in the Philippines, though not in the world.

This is the future of insurance marketing. Soon, all life insurance sales, specifically field sales, will be done in this manner. Using this system, all steps are consummated with the help of the user-friendly iPad. The tablet has, in fact, been described as the “mobile sales consoles.” In the competitive world of insurance sales, it also means speed, and data are collected in real time.

From product introduction, sales illustrations, contract perfection,

up to the payment of premiums, all are done using the iPoS in the tablet. Soon, all mobile gadgets will be available for insurance sales. iPoS is a state of the art technology that gives the financial advisor a revolutionary way of engaging customers and ensures that every client is served consistently and with a high quality financial planning experience. iPoS is, in fact, a mobile application, a software that professionalizes the entire sales

Albayalde vs jueteng Florante S. Solmerin

FACT IS MIGHT!

‘V

icious cycle.” This is what the next Philippine National Police (PNP) Chief, National Capital Regional Police Office (NCRPO) Director Oscar D. Albayalde must eradicate.

That’s also the sad picture behind the government’s campaign against jueteng and other forms of illegal gambling in the country.

Some corrupt government officials, especially the unscrupulous members of the PNP, have embraced the poison of payola from illegal games.

Proof? The police has yet to capture any operator of jueteng and other illegal gambling.

President Duterte’s determination to eliminate corruption is apparent, but he must also focus on the problems posed by illegal gambling.

True, he has issued Executive Order (EO) 13 (All-out war versus illegal gambling), but it was not enough to stop the wicked ways of illegal gambling protectors, which encourages

corruption when the grease money gets passed around.

According to the Philippine Charity Sweepstakes Office (PCSO) General Manager Alexander F. Balutan, the PNP’s campaign is “anemic” as it refrains from using hands of steel to implement EO 13.

However, we cannot solely blame everything to PNP Chief Director General Ronald “Bato” M. dela Rosa because we know how resolute he is in terms of his loyal service and duties. If we are to remember, Bato gave an “ultimatum” against the police commanders who refuse to stop jueteng in their respective areas, or they will be relieved from their posts. The ultimatum was issued a few days after the President

process. With this system, agents are compelled to comply with the step-by-step process and deter taking shortcuts. With the enhanced visual aspect of the software, the client easily understands not only what is being sold but the entire process, as well. It is an effective tool in promoting financial literacy.

It enhances the over-all experience of the policyholder.

It also does away with papers and digitizes the entire transaction, including the signing of documents.

According to Kevin Adhia, vice president of Freedom Health, “paper takes longer because someone has to mail it in, scan it, key it in and extract the data.” More important, the data collected are stored in a secure Philam Life database with AIA’s (Philam’s mother company) data center and can be easily retrieved when needed. Needless to say, AIA’s data center uses strong security protocols.

The revolutionary features of the system include the electronic signature, the electronic filing of forms, and the electronic payment of premiums. Payment of

There are times when the problem lies not on the leader, but on those who have been in the field for a long time. Corrupt policemen will do what it takes to maintain the crooked system. This is what Albayalde must eliminate. This is possible if he uses an iron hand in dealing with corrupt police officers. He’s strict, according to the Davao City police, and they didn’t want him to replace Gen. Bato. However, the President chose him for this virtue. signed EO 13 and ordered the PNP to stop jueteng operations and to support and protect the Small Town Lottery (STL) of PCSO. But, sadly, nothing happened.

Bato’s directive to hasten the operation to eradicate jueteng, notwithstanding, the fight against this numbers game will not succeed without the cooperation of his subordinates. There are times when the problem lies not on the leader, but on those who have been in the field for a long time. Corrupt policemen will do what it takes to maintain the crooked system.

This is what Albayalde must eliminate. This is possible if uses an iron hand in dealing with

Let Taiwan participate in 2018 WHA MAIL

The enjoyment of good health is one of the universal human rights of every human being without distinction of race, religion, political belief and economic or social condition. It is morally wrong for any country or organization to deprive the 23 million Taiwanese people of their fundamental health rights to participate in 2018 World Health Assembly (WHA) and to share international health information as well as the prevention of disease and epidemics.

This year marks the 15th anniversary of the SARS outbreak.

Fifteen years ago, as a result of the cruel deprivation of Taiwan’s fundamental health rights imposed

by Beijing, Taiwan lost many lives to SARS and greatly suffered. Although Taiwan is back on its feet and has developed an ever-stronger disease prevention system, Taiwan is still being prevented from participating in the WHA on political

grounds and cannot make contributions toward the uplift of international health and medical services.

Virus infection knows no borders.

Only when every member of the international community is included in this collective fight against diseases will the negative effects of the next potential pandemic outbreak be minimized.

Taiwan, similar to the Philippines, is one of the key health providers for many developing countries and various Pacific nations, and Taiwan is also one of the most important links of global disease prevention network.

Taiwan not only built many hospitals and clinics for the developing countries such as Malawi and Solomon Island, etc., but also routinely sent various medical missions and volunteer doctors to other countries.

Located at a key position in East Asia, Taiwan shares environmental similarities for communicable disease outbreaks with neighboring countries and is frequently visited by international travelers. This makes Taiwan vulnerable to cross-border transmission and cross-transmission of communicable disease pathogens, which could lead to their genetic recombination or mutation, and give rise to new infectious agents.

Unfortunately, as Taiwan is unable to attend the WHA and is excluded from full participation in related World Health Organization (WHO)

technical meetings, mechanisms and activities, this creates serious gaps in the global health-security system and threatens people’s right to health.

In this era of increased globalization in which infectious diseases spread across boundaries, Taiwan has the urgent and practical need to become an important and indispensable partner in the fight of the global diseases.

Moreover, Taiwan has the ability to make substantial contributions to the global efforts on disease prevention and control, as it has established a comprehensive disease prevention system and organized numerous training workshops aimed at building capacity to prevent Ebola, MERS, dengue fever and Zika in the Asia Pacific and Southeast Asia, thereby facilitating collective efforts to strengthen global health security.

In addition, Taiwan was the first country in Asia to implement a national health-insurance program, which boasts a coverage rate of 99.9 percent. Medical expenditures in Taiwan account for a mere 6.3 percent of GDP. Taiwan is ready and willing to share its experiences with members of the WHO and other countries.

Last but not least, Taiwan’s participation will enhance the global health system and serve as a good role model for the universal health coverage.

premiums is safely done with the use of the credit or debit cards. The know-your-customer requirement is also made convenient, doing away with the scanning or photocopying of identification cards as identifications can be easily captured using the iPad’s camera.

In terms of product presentation, the videos and clear photos ensures that the client is able to immediately grasp what is being sold. The roster of products is also automated making it convenient for both the agent and the client. Indeed, for the policyholder, everything will be “clickable.”

The use, though, of tablets seems to be more appropriate right now to life insurers. According to Mark Breading of the US-based advisory firm SMA, “iPad apps are right now a lot more important for the life side of the business for the distribution channel for producers than they are on the P&C side.”

Lawyer Dennis B. Funa is the current insurance commissioner. Funa was appointed by President Duterte as the new insurance commissioner in December 2016. E-mail: dennisfuna@yahoo.com.

corrupt police officers. He’s strict, according to the Davao City police, and they didn’t want him to replace Bato. However, the President chose him for this virtue.

Based on reports, Albayalde is listed as one of the corrupt officials in PNP that accepted jueteng payola.

The accusation came from an STL player from Metro Manila, but they had no concrete evidence to support their claims against the general.

Balutan is confident that Albayalde will do his best to end jueteng and other illegal games in our country. He is also expected to support and protect the STL of the PCSO. If Albayalde can give a hundred percent support to STL, the PNP’s share in the free-medical services will increase. In line with this, the earnings that may be allocated on the charity fund will also be much greater, which can be used to help unfortunate Filipinos in need of financial assistance for medicine and hospitalization.

Albayalde (PMA “Sinagtala” Class 1986) is a plebo of Balutan (PMA “Matikas” Class 1983) in the Philippine Military Academy.

Good luck Gen. Albayalde, Sir! E-mail: fetad@yahoo.com.

This is why in January this year, the United States House of Representatives has passed a bill to direct the US secretary of State to help Taiwan participate in the WHA. It is envisaged that through Taiwan’s participation in the WHA and the WHO, it can share its experience with other countries, including the Philippines, make timely reporting and acquire information on diseases, and play a constructive role in global and in regional health protection. This would create a win-win scenario for Taiwan, the Philippines, the WHO and the world community.

Taiwan and the Philippines are the closest neighbors. There are approximately 150,000 Filipinos working in Taiwan, and millions of Filipinos traveling through Taiwan. Last year there were around 300,000 Filipinos visiting Taiwan.

Given the bilateral close relations, for our common interests and protection of people’s health, I hereby humbly urge the Philippine government, Congress, health organizations and general public to support Taiwan for its participation in the WHA in May 2018.

Dr. Gary Song-Huann Lin Representative of Taiwan/ ROC to the Philippines Taipei Economic and Cultural Office in the Philippines Makati City

2nd Front Page BusinessMirror

A12 Wednesday, April 11, 2018

ERC resolves over100 pending cases during 60-day TRO period 162 T

By Lenie Lectura

@llectura

he Energy Regulatory Commission (ERC) made good use of the 60-day temporary restraining order (TRO) issued by the Court of Appeals (CA) on the suspension order against four ERC commissioners, acting on more than a hundred pending cases during the period.

The number of pending petitions for power supply agreements before the ERC

“We have exceeded 100 cases resolved because they have been processed and ripe for resolution by the commission,” ERC Chair-

man Agnes VST Devanadera said.

Last month, she added, the agency was targeting to release 80 to 90 rulings on pending cases. It turned out the agency has successfully exceeded its target.

She did not say if the applications of the Manila Electric Co. (Meralco) are included in the 100 cases that were acted upon by the commission, saying an announcement on the rulings made by the ERC would be out soon.

In February the appellate court issued a TRO against the suspension See “ERC,” A2

www.businessmirror.com.ph

DUTERTE BANKS ON WARMING TIES WITH BEIJING TO REPAIR WAR-TORN MARAWI CITY

C

hina will have a chance to showcase warmer ties with the Philippines if it wins a contract to rebuild a city ravaged by Islamic State-inspired terrorists last year, a Cabinet member said.

The contract for rebuilding Marawi, the country’s only Muslim-majority city, is expected to be finalized by the end of May, as the two nations seek to improve

relations strained by a territorial dispute in the South China Sea. President Duterte’s administration initially chose a group, led by China State Construction Engineering Corp. (CSCEC), to help in the P72-billion ($1.4-billion) effort to rehabilitate the city. Among the five groups that submitted unsolicited bids, four are Chinese and one is Malaysian.

See “Duterte,” A2

Senate’s shabu-smuggling probe to bear reforms that will end corruption at boc Senate Majority Leader Vicente C. Sotto III told the BusinessM irror he agreed with the notion that the concerns raised by the USTR could be substantially addressed, “if the BOC will buckle down and follow the suggestions.”

For his part, Senate President Pro Tempore Ralph G. Recto said he would rather await the Senate’s action on the Blue Ribbon panel report on BOC corruption in relation to the shabu smuggling.

“Let’s wait for the recommendations” in the Blue Ribbon report to be included on the Senate plenary’s order of business so appropriate action can be done, i.e., whether a bill is needed for some of the proposals,” Recto said in a text message.

At the same time, Senate President Aquilino L. Pimentel III confirmed the inclusion of the Blue Ribbon inquiry report in the chamber’s agenda when sessions resume. “Yes, that was the agreement before we adjourned,” Pimentel told the BusinessMirror last Sunday.

Sotto, who is tasked with preparing the order of business as Committee on Rules chairman, also told the BusinessMirror, “Yes, it will be on the agenda.”

‘Corruption and irregularities’ In its 2018 report, the USTR had said: “Reports of corruption and irregularities in customs processing persist, including undue and costly delays, irregularities in the valuation process, 100 percent inspection and testing of some products, and Customs officials seeking the payment of unrecorded facilitation fees.”

The USTR had already cited much of the same concerns in its past two years’ reports, indicating that from its perspective, the promised reforms had yet to kick in. Still, it took note of the Philippines’s passage of the Customs and Tariff Modernization Act (CTMA), which is envisioned to computerize customs operations nationwide in order to make operations more efficient and transparent.

From the monthslong Blue Ribbon report led by Gordon in the wake of the P6.4-billion shabu-smuggling case in May 2017, it appears, however, that human intervention could still derail the good impact of computerization if rogue officers and employees are put in charge of key positions.

The Blue Ribbon inquiry—which had another senior senator, former PNP chief Panfilo M. Lacson Sr., tangling at one point with then-Customs Commissioner Nicanor Faeldon—was spurred by the shabu smuggling. Nonetheless, senators deemed it best to take a deep and comprehensive look at overall corruption at Customs, one that made it possible for such a huge drug stash from China to pass through Customs Green Lane where no inspection is needed.

‘Tara’ system

“How did it pass through the Bureau of Customs swiftly?” Gordon had raised

that question in the Blue Ribbon report, as the nation was stunned by the drug smuggling. The explanation: “There is a systemic and systematic corruption at the BOC, facilitated by a tara system.

The committee discovered how the tara system makes it easier for the drugs to enter.

The tara system and green lane were used to fast-track the entry of drugs, with the utilization of Harmonized System (HS) codes and “disposable consignees.”

Mincing no words, the Blue Ribbon report said, “the tara system is killing us: it deprives the government of the correct amount of Customs revenues, it, likewise, facilitates the entry of illicit drugs.... It is tragic that the corruption of the bureaucracy in the Bureau of Customs exacerbated by the longtime tara system facilitated and allowed the corrupt from smuggling to big-time drug traffic.”

Alleged customs fixer Mark Taguba II, who had presented himself as a whistle-blower but was subsequently recommended for prosecution on drugrelated charges, had revealed his tara list to senators in an Executive Session on July 31, 2017.

Taguba’s aim in fueling that tara system, said the Blue Ribbon, “was to facilitate the entry of his clients’ containers without issuing an alert order.”

The release of the drugs shipment was further hastened because Taguba utilized other persons, said the report.

The tara system facilitated not only the smuggling of products, “but more tragically illegal drugs. How did they do it?” asked the report. It explained further what the senators unearthed: “Player/s, such as Mark Taguba, employ disposable consignees, such as Eirene Mae Tatad of EMT Trading, to facilitate the entry of their shipment.

Milo Maestrecampo, who heads the BOC’s Import Assessment Service (IAS), gives the player/s, which is in the case, Taguba, the HS code, in exchange for money, which is the tara. Most crucial, therefore, in the speedy release of the shipment/s was the payment of ‘tara’ to BOC officials, particularly, [Milo] Maestrecampo who supplied player/s with the HS Codes,” said the report.

“In order to get connections and hasten transactions, Taguba continually looks for influential personalities and transfers affiliations from one group to another to acquire an edge in releasing his mga parating.

The tara system was already successful in transferring misdeclared cargo, and, worse, the entry of drugs, stressed the Blue Ribbon report. So effective was tara that even after the discovery of the shipment of drugs and the suspension of the license of EMT Trading (which Taguba had one coaccused reportedly set up), EMT Trading was still able to have its shipments released, beyond May and up to June, added the report.

Thus, one of the Blue Ribbon’s major

cool spot A visitor in Munting Paraiso in Dauin, Dumaguete, enjoys the infinity pool that overlooks the Mindanao sea, a favorite spot for both local tourists and foreign visitors during the summer. The Philippine Atmospheric, Geophysical and Astronomical Services Administration weather bureau is set to declare the start of the summer season this week. NONIE REYES

recommendations after wrapping up the inquiry is a stop to the tara system and the overhaul of the bureau. The report also called for thTe dismantling of the “Command Center [ComCen]” that Faeldon had “illegally” set up, as he had no authority from the secretary of finance to do so. Faeldon, a former Navy officer involved in coup plots, had justified the ComCen as necessary to allow his office to look at all transactions in order to curb corruption. But as the Blue Ribbon probe indicated, the opposite happened.

The Blue Ribbon also found out that the HS codes were provided by the office of Faeldon’s trusted deputy Milo Maestrocampo’s office to Taguba, who, in turn, endorsed it to licensed customs broker Teejay Marcellana, the man dubbed “indispensable” to the importation, “for without his role, the container would not have been able to leave the port.”

Besides the BOC overhaul, the committee sought a study on “the feasibility of conducting Pre-Shipment Inspection Reports from the port of origin, which shall be furnished to the port of destination prior to its embarkation, including the BOC’s daily monitoring of total containers and collections per day in relation to its annual target. Thus, monitoring should start from the port of origin to the port of destination.”

The panel said Administrative Order 243-A, Series of 2009, should be amended by the President, “such that all imported goods, whether containerized or not, and irrespective of value and personal effects, whether reexported from the Philippines from any neighboring country, shall be liable to mandatory preshipment inspection.

No goods shall be imported into the country unless accompanied by a Clean Report of Findings and an Import Duty

Report issued in respect of such goods by a duly accredited inspecting officer or company.”

The Blue Ribbon report suggested legislation to set up a Customs and Tax Academy “to train professional Customs personnel into a culture of integrity, honesty and purpose, in order to have continuity.” Those employed may continue “to enjoy their tenure only when they continue to perform well, i.e., meeting revenue targets; conversely, those who underperform or who are implicated in corruption can be removed immediately without a protracted process,” the panel added.

Other Blue Ribbon recommendations : ■ That the majority of deputy commissioners be career officers of the bureaucracy; ■ The formation of a public-private partnership to help monitor, on monthly basis, BOC’s compliance with its target; ■ Full implementation of the attrition law, which stalled in 2008; ■ Filing of criminal charges against all ComCen officers and other personalities, as specified in the report; ■ Periodic review of the performance of licensed brokers, as well as summary processes for license suspension or revocation.

■ Decentralization of the issuance of alert order. The power may be given to specific officials but an increase of collection or not, due to the execution of alert orders, must be quickly reported; regular reports of alert orders issued, and their status, must be submitted to the secretary of finance and a proposed congressional oversight committee.

Gordon looks beyond report Outside of the Blue Ribbon report, Gordon is pitching other key reforms to

spur economic activity and encourage trade and investments, partly by using existing “superior” infrastructure or increasing their connectivity.

He also said the delays at the ports, which exact a heavy toll on the economy, can be“solved by routing some shipments to Subic or Batangas”or other strategically located ports with moderate traffic. That strategy was resorted to in late-2015 and in 2016, when the congestion in Manila’s ports reached crisis proportions.

Meanwhile, as senators chew on the Blue Ribbon findings, Gordon has turned his attention to the long-term task of helping lay the groundwork for more productivity, trade and investments.

He recently conducted a hearing at Clark Freeport for his pet bill, the Regional Infrastructure and Investment Act, which aims “not just to decongest” crowded economic hubs to allow them to rationalize their activities, but also to “maximize the value of key infrastructure” that are already in place elsewhere: mainly, by putting in place a system for their seamless integration.

Gordon cited as example the promise presented by the existing infrastructure in Central and Western Luzon, where there are already superior road networks in place and industrial zones have been operating for decades.

Imagine, he said, what growth and progress is possible if the government would simply maximize the value of the North Luzon Expressway, Subic-ClarkTarlac Expressway, Tarlac-Pangasinan-La Union Expressway networks in order to spur activity in several industrial zones (Subic, Mariveles, Clark), as well as tourism growth hubs.

He lamented the inaction on a longpending proposal to revitalize the international airport at Subic Freeport,

Continued from a1

where Americans had built a worldclass runway. Neglect of Subic had been one of the reasons for the pullout of American logistics giant Federal Express, which once operated there.

“It’s a sacrilege, because we spend on infrastructure but we don’t maximize it,” Gordon lamented.

Gordon was a multiterm Olongapo City mayor who shot to prominence when he was tasked to oversee Subic’s transformation into a civilian facility, as a free port— from the ashes of Pinatubo’s 1991 eruption, and right after the United States pulled out its largest naval base outside the mainland when the Philippine Senate voted to end the bases treaty.

He later became tourism secretary, initiating the highly successful “WOW Philippines” campaign from which future templates would be based.

It’s this background that had the senator itching to help draw up the vision—as a legislator this time—for seamless integration between industrial and tourism hubs that build on existing infrastructure and on the key projects lined up under the Duterte administration’s “Build, Build, Build” centerpiece program.

Besides the major upgrade planned at Clark, a new international airport has been proposed in Bulacan by businessman Ramon S. Ang’s group; and other investors are pushing Sangley Point, another former US facility in Cavite province.

“With the railroad [Manila to Clark] that we’re planning and the seaports,” the country can attain such “seamless integration” of economic activities, according to Gordon.

There’s no time to lose, he stressed, noting how long it took the Philippines—over two decades—to double its container volume between the mid1990s, (when he visited Shanghai and the Philippines only handled 2 million containers), to today, when that figure is up to 4.5 million containers.

In contrast, a former backwater like Shanghai continues to dominate as the top port in Asia, followed by Singapore and Shenzhen. Asked what the figures meant, Gordon replied: “That shows how unproductive, how corrupt and how slow we are.” He added that reforms, this time around, cannot wait.

Sen. Francis G. Escudero said the continuing corruption at the BOC could be substantially addressed by reforms ensuing from the Senate inquiry into the P6.4-b shabu-smuggling case.

“The systematic, accountability and procedural aspects perhaps, yes,” Escudero said. “However, it will still boil down to the honesty and integrity of the people who will implement it; that is crucial.”

Sen. Juan Edgardo M. Angara, meanwhile, pressed authorities concerned to “speed up the issuance of Implementing Rules for the Customs Modernization law passed a few years ago [and] to push for greater automation, as well.”