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n Friday, April 27, 2018 Vol. 13 No. 195

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undreds of commercial and residential structures and institutional buildings along Boracay’s main roads are facing demolition as Task Force Boracay starts the rehabilitation of the Philippines’s top tourist destination.

DOLE eyes welfare benefits for jobless Pinoys

By Samuel P. Medenilla @sam_medenilla

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OOKING for a job in the country is usually a monthlong gamble.

This was revealed by the Philippine Statistics Authority (PSA) in the agency’s data from 2010 to 2015, which showed job seekers would usually spend from a month (4.6 weeks) or more (5.3 weeks) to find a job. After that, applicants would either have gotten hired or would have already given up.

Fresh graduates are expec ted to continue relying on their parents and guardians during this period.

Family breadwinners are not so lucky: they would have to dip their hands in their savings or, worse, take on debt to spend for daily needs until they land a job.

This becomes an ordeal if the sole source of the family’s income becomes a victim of man-made crises and natural calamities.

In 2013, to note, Supertyphoon Yolanda (international code name Haiyan) became one of the deadliest natural disasters to hit the country.

See “Dole,” A12

A total of 679 commercial, resident ia l a nd inst it ut iona l structures were found by the Depa r t ment of Env i ronment and Natural Resources to have encroached within the 12-meter road-easement rule. A DENR official said the owners of these structures would be asked to institute corrective measures or do “self-demolition.”

Of the figure, 393 are commercial, while the rest are classified either as commercial/residential, residential, and a few institutional buildings, such as churches and schools.

Task Force Boracay will undertake massive clearing and road-widening activities on the island’s three barangays—Manoc-Manoc, Balabag and Yapak—to partly reclaim the roads from illegally built structures to ease traffic congestion.

The violations on both sides of the road are mostly “petty,” with fences, signages, gates encroaching portions of the roads. But these are aggravating the already problematic traffic situation on an island visited by tens of thousands of local and foreign tourists all-year round.

DENR Undersecretary Jonas R. Leones said a road rehabilitation and widening project will be undertaken, and that four of the “missing” wetlands will be reclaimed to address the perennial flooding problem on the island.

“Wetlands are very important because they are catch basins that

PESO exchange rates n US 52.2870

prevent flooding. So we need to recover the wetlands and improve road conditions,” said Leones, the designated spokesman of Environment Secretary Roy A. Cimatu.

The clearing of the roads on the island is part of Task Force Boracay’s priority action plan.

Small hotels and resorts, restaurants, fast food and eateries, grocery stories, wholesale and retail stores, schools and churches will be affected by the road-clearing operation. The Boracay Water Services Inc. and Boracay Tubi, the two private water service pro-

Leones: “There will be no sacred cows. If they committed a violation, then we will have to file necessary charges and impose penalty or fines for every violation.”

viders on the island, were also on the list.

In Barangay Manoc-Manoc, among the violators is a Catholic church whose fence encroached a portion of the barangay road.

A pumping station and a lift station of Boracay Water were also included in the list of violators. Crown Regency-Boracay’s billboard and entrance signage in Barangay Manoc-Manoc will also be removed.

In Barangay Balabag, among those identified as violators are the Boracay Holiday Resort owned by one Lazarina Tirol-Molo, 7b Fiesta One Stop Souvenir, Azalea Hotel Residence Boracay, Malay Rural Health Office and the Lagoon Resort.

Many of those notified of their

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‘679 structures in Boracay violated road-easement rule’

By Jonathan L. Mayuga

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SAN MIGUEL’S BULACAN AIRPORT GREEN-LIGHTED BY NEDA BOARD

By Cai U. Ordinario

@cuo_bm

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he National Economic and Development Authority (Neda) Board, chaired by President Duterte, has finally approved the unsolicited proposal of San Miguel Corp. to build an airport in Bulacan.

The long-awaited approval, however, was “conditional.” A final examination of the concession agreement needs to be undertaken before the P735.63-billion airport project gets the green light.

Sources from the Neda told the BusinessMirror that a reasonable rate of return along with “other parameters” will need to be examined by the government.

“After [the] approving body sets [a] reasonable rate of return and other government parameters, negotiations between the government sponsor and unsolicited proponent ensue toward Swiss Challenge. Part of that would be finalization of the draft concession agreement,” the sources said.

The Bulacan International Airport project involves the construction, operation and maintenance of the airport with an area of approximately 2,500 hectares in Bulakan, Bulacan.

The project involves airport development, such as a passenger terminal See “Bulacan airport,” A2

Continued on A2

Govt orders contractors to regularize employees

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workers destroy structures of a house affected by a road-widening project, as the government implements the temporary closure of the country’s most famous beach resort island of Boracay on April 26. Many workers in the island are now jobless as Boracay, famed for its white-sand beaches, closes for up to six months to recover from overcrowding and development. AP

ONTRACTORS with pending compliance order to regularize their workers will no longer be allowed to renew their registration at the Department of Labor and Employment (DOLE).

In a new advisory, Labor Secretary Silvestre H. Bello III said they will now strictly implement a “regularize first, register later” rule for contractors engaged in illegal labor-only contracting (LOC).

“Application for renewal of registration of contractor with issued compliance order that has become final and executory shall be denied,” Bello said in Labor Advisory 6, Series of 2018, which he issued on April 24.

“[The] application shall only be processed upon presentation of proof of compliance findings therein or order of dismissal of the case,” he added.

Exempted from this rule are contractors with compliance order, but was able to file a “timely and valid” appeal of their case at the Office of the Secretary of Labor.

Bello said these contractors will still be allowed to register at the DOLE’s regional office.

However, once the Office of the Secretary of Labor decides to make the compliance order final and executory, the DOLE’s regional office will initiate the cancellation

n japan 0.4779 n UK 72.8515 n HK 6.6637 n CHINA 8.2641 n singapore 39.3668 n australia 39.5447 n EU 63.5967 n SAUDI arabia 13.9429

See “Govt,” A2

Source: BSP (26 April 2018 )

BMReports BusinessMirror

A2 Friday, April 27, 2018

‘679 structures in Boracay violated road-easement rule’ Continued from A1

violations have voluntarily demolished their structures, but still, a lot of violators continue to defy the task force’s plea to institute corrective measures.

‘No sacred cows’

Leones told the BusinessMirror that there will be no sacred cows in the on-going crackdown on violators in Boracay Island. “Violators will be slapped with fines or penalties.”

This after Cimatu issued a stern warning against defiant businessmen and property owners who continue to ignore the DENR’s warning.

He noted that it has been two months since the DENR, a member of the task force, had issued

DOLE. . .

Continued from A12

The DOLE Bureau of Local Employment (BLE) Director explained that a UI is different from separation pay. According to her, those who would avail themselves of UI would be required to regularly show proof of their efforts that they are actively searching for a new job.

As early as 2009, the DOLE’s Institute of Labor Studies (ILS), with the assistance of the International Labor Organization, has already started considering using UI to minimize the risk of unemployed workers from dropping out of the labor market.

In his 18-page report, entitled “Exploring the Possibilities of a Philippine Unemployment Insurance Scheme,” Benjamin M. Dalumpines, ILS research associate, sur veyed the unemployment insurance models used by China, Korea, Taiwan, Thailand and Vietnam to develop a possible Philippine version of the program.

He proposed a model, wherein employers, employees and the government will provide funds for the UI with universal coverage to be handled by the Social Security System (SSS).

Dalumpines said the UI will need to go through legislation and actuarial valuation to ensure the program’s sustainability.

Setting conditions

DURING the previous administration, the DOLE started holding consultations for the proposed UI. In a policy brief in 2011, the Employers Confederation of the Philippines said it is amendable in contributing for the UI but only on two conditions. The ILS quoted the Ecop as citing that the conditions involve using the UI to replace their obligation to pay severance pay and only if the government will relax strict labor law to make it more “flexible” for them to dismiss employees.

Labor groups opposed the Ecop proposal of using the UI a substitute for severance pay.

The groups also said acquiescence to the DOLE proposal requires meeting certain

EASTERLIES AFFECTING THE COUNTRY as of 4:00 pm - April 26, 2018

notices of violations, for which the former Armed Forces chief of staff vowed “to hold them responsible and make them pay” for their violations.

Leones said the DENR will not be selective in enforcing what needs to be done to address the many environmental problems besetting the country’s top tourist destination in Malay, Aklan Province.

“There will be no sacred cows. If they committed a violation, then we will have to file necessary charges and impose penalty or fines for every violation,” he said.

Of the environmental violations found by the DENR, the most serious is the illegal discharge of untreated wastewater, which is prohibited under the Clean Water Act. Under the law, fines for vio-

lating the Clean Water Act range from P10,000 to P200,000 per day, depending on the gravity of the violation. Imposing fines or penalties for violation of environmental laws is determined by the Pollution Adjudication Board.

According to latest DENR figures, a total of 958 forestland a nd wet l a nd occupa nts have been issued show-cause orders, and about 30 percent or 300 of them have been issued notices to vacate for failing to justify their presence in the supposed “no-build ” zones.

A total of 115 firms and individuals with properties within the 25+5 shoreline-easement rule were also issued notices to vacate the premises.

The inspection of every resort

on the island is still ongoing to determine which among them are discharging untreated wastewater.

Leones said the task force intends, at the minimum, to fix three major problems while the island is closed to tourists.

“First, we want to fix the sewer lines to prevent the discharge of untreated wastewater directly into the beach and other water bodies. We really want to remove the cesspool tag as ordered by the President. Second, address the worsening solid-waste management problem and prevent air, water and soil pollution, and the illegal construction of business establishments, including informal settler families in forestland, wetlands and along the roads on the island,” he said.

conditions, including allowing them to participate in managing the UI funds. Likewise, the labor groups said they would agree to having a UI only if it will contain a provision on training, it is wage-related and duration will be “adequate,” age and physical condition may also determine level and duration of benefits, incentives will be given to those who will not be able to exhaust the duration of the benefits and the benefit will be granted to workers regardless of the reason for their dismissal.

number of workers to be affected by the fallout from the General System of Preference of the Philippines abroad, the total pyrotechnics ban, a crackdown on immigrants in the US and the Public Utility Vehicle modernization program.

Other issues used in the estimates are the number of workers affected with the mining closure, the Saudinization program in the Kingdom of Saudi Arabia and the government’s campaign against contractualization.

The amount could either be shelled out solely by the government or through contributions by employers and employees.

During its consultations with DOLE in 2011, the SSS raised concern over the possibility of including the UI to its services. That time, the SSS said doing so would further shorten the life of its funds if it is implemented without preconditions.

To make the UI feasible, the SSS suggested raising the contribution rates of its members and putting up a separate fund for the program from its current social-security fund used for its existing services.

Also, the SSS noted the government should be ready to augment the UI fund in case it will register any deficit so it could remain sustainable.

Former DOLE Undersecretary Rene E. Ofreneo also made a similar conclusion on the proposed UI. Ofreneo, University of the Philippines labor expert, said it might be too exorbitant of a program to help reduce the country’s unemployment in some sector. He said the program would not cover new entrants in the labor force or those in the informal sector.

“I am not against unemployment insurance,” Ofreneo said. “In fact, I think that is a good a program, but the government should prioritize a more holistic approach in addressing the country’s unemployment by first focusing on job generation.”

has benefited around 700 people—about half of the 1,489 displaced HEI personnel registered

by BLE.

Pros, cons

FEDERATION of Free Workers (FFW) Vice President Julius Cainglet described the UI as the “missing pillar” in the social-protection framework of the Philippines.

“FFW has long been advocating for unemployment insurance.... [UI] can indeed help workers transition from an old job to a new job,” Cainglet said. “It would have helped workers in Boracay or those in the mining industry when mining permits were revoked.”

However, while the DOLE supported the UI, its attached agencies—the Philippine Overseas Employment Administration and the Overseas Workers Welfare Administration—expressed reservations on the program’s feasibility.

The National Economic and Development Authority and the Government Insurance Service System said the program may no longer be necessary.

And when the DOLE circulated its proposal, it drew opposition to the agency the labor department is eyeing as the fund’s administrator: the SSS. Many government agencies are hesitant in throwing their support for the universal UI due to its inherent problems, most prominent of which is the astounding amount of funding that will be needed for its implementation.

Funding challenge

BASED on DOLE’s unofficial estimates on the possible displacements from recent issues, the implementation of a UI would require between P3.1 billion to P10.3 billion for 2.4 million workers.

The issues used in the estimates include the

Test phase

AT the moment, only workers in the public sector enjoy unemployment insurance through the GSIS. However, this only applies for those who were involuntarily displaced as a result of the abolition or reorganization of their office.

They will be entitled to monthly cash payments equivalent to 50 percent of their average monthly compensation from two to six months depending on their length of their service.

In 2016 the DOLE decided to apply the concept of UI to the private sector through its DOLE Adjustment Measure Program (AMP) for higher-education institution (HEI) workers, who were retrenched because of the implementation of the Department of Education’s K to 12 program.

Under the AMP, the DOLE provided not only provided employment facilitation and livelihood opportunities, but also a monthly financial support to the displaced HEI personnel.

In its AMP web site, BLE said the given amount is “equivalent to P10,000, 75 percent of their last monthly salary, or the prevailing salary of HEI personnel, whichever is the highest.” Its duration would range from three months to six months.

The Dole said, since its launch, the AMP

Initial success

CITING their initial observations for the AMP, Tutay noted the program was a success in bringing back the displaced workers back to the labor market.

“As you can observe, there are no complaints coming from the workers who were displaced because most of them are still able to pay for theri daily needs,” Tutay said.

As of December last year, 159 AMP beneficiaries have already graduated from the program and are now employed, have part-time work or are self-employed.

The AMP is set to undergo evaluation this year to measure its effectiveness for its two-year implementation.

Tutay said the outcome of the assessment will be used toward crafting a nationwide UI. “Everything is now in place. We now have a system for monitoring job displacement and for keeping the profile and stipend for our beneficiaries,” Tutay said.

Top agenda

UNIVERSAL insurance is one of the priority laborrelated legislative agenda under the Philippine Development Plan of 2017 to 2022 to enhance the country’s human capital by reducing their economic risks.

Senator Richard J. Gordon has already filed bill seeking to amend the Social Security Act of 1997 to include provisions on unemployment benefits. If passed into law, the bill, which remains pending at the Upper House, is also expected to raise the funds of SSS by increasing the monthly contribution cap of its members from P16,000 to P30,000 in exchange for more benefits.

The incumbent executives of SSS have endorsed the bill last year despite its provisions for a UI amid SSS’s dwindling funds caused by its latest pension hike.

In support for the said legislation, the ILS is now conducting multiple ongoing initiatives on UI. Patrick P. Patriwirawan Jr. of the ILS said among their target goals this year is the creation of a technical working group on job displacement/UI, the conduct of a national/regional dialogue on the launch and implementation of a UI and the completion of a report on the launch and implementation of a UI in the Philippines by December.

Patriwirawan said his new report, “Introducing a DOLE Integrated Unemployment Benefit Program,” is also part of the initiative to include UI in DOLE’s existing programs for the unemployed.

“The policy change being introduced will cater to a wider pool of beneficiaries, which will include the new entrants, the long-term unemployed, the voluntary unemployed, the involuntary unemployed, such as the case of end-of-contract workers and the displaced workers, including unemployed OFWs [overseas Filipino workers],” Patriwirawan, officer in charge of the ILS Labor and Social Relations Research Division, said in his report.

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Iglesia Ni Cristo to hold walk vs poverty, for Guinness record

Part of the crowd that joined the 2014 Worldwide Walk that benefitted victims of Supertyphoon Yolanda. Aerial photo taken near the Cultural Center of the Philippines, Manila.

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WO years after setting its Guinness World Record for the biggest simultaneous charity walk, International religious organization Iglesia Ni Cristo (INC) will attempt to beat the feat by holding the second round of the walkathon.

INC will hold its second recordbreaking simultaneous walkathon next month to fight poverty.

In a bid to beat its own feat at the Guinness World Record, INC will hold its Second Worldwide Walk (SWW) on May 6, 2018, at the iconic Roxas Boulevard from 4 a.m. onward.

The event will be simultaneously held at 358 sites around the globe in 44 countries, 33 territories and across 18 time zones.

Proceeds of the SWW will be used by INC for its food and medical-assistance programs for poor communities. Manila City Mayor Joseph E. Estrada was among those who confirmed to be participating in the event.

The First Worldwide Walk (FWW) was held in 2014 for the vic-

tims of the Supertyphoon Yolanda (international code name Haiyan) with 519,221 participants from 129 sites across the world, situated in 16 countries in a single day.

Revenue from the FWW was used to finance the INC’s first resettlement and eco-farming community in Leyte, Philippines.

The joint effort of INC members across the globe is one of many international campaigns of the INC’s socio-civic programs aimed to strengthen the bond between the congregations of the Church Of Christ and the communities in which they serve.

The INC also continues to support five self-sustaining resettlement communities in the Philippines; along with 17 eco-farming sites, like the one recently established in Ladybrand, South Africa.

INC is one of the biggest Philippine-based religious groups, boasting of 7,000 local congregations and missions grouped into 142 ecclesiastical districts in 143 countries and territories.

Bulacan airport. . .

building, with airside and landside facilities and an 8.4-kilometer airport toll road. It will be able to accommodate 100 million passengers per annum by its opening year.

Apart from the airport, the Duterte administration also approved seven other new projects worth P875 billion, as well as cost and loan adjustments for several projects in its sixth Neda Board meeting on Wednesday.

The list of new projects, apart from Bulacan airport, includes the P50.031billion Subic-Clark Railway Project; P39.2-billion Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects; P27.37-billion Pasig-Marikina River and Manggahan Floodway Bridges Construction Project; and P11.37-billion Bridge Construction Acceleration Project for Socioeconomic Development.

Govt. . .

Continued from A1

process of their licenses.

The application of registration of a contractor whose registration is cancelled shall be denied pursuant to Section 26 of Department Order 174, Series of 2017, according to Bello.

The DOLE implemented the issuance a week after Malacañang ordered the agency on April 17 to conduct an inventory of contractors engaged in LOC. The

Continued from A1

The Neda Board also approved the P5.61-billion Clark International Airport Expansion Project-Operations and Maintenance PPP Concession; P4.78-billion Rural AgroEnterprise Partnership for Inclusive Development and Growth Project; and P1.02-billion Davao Food Complex Project.

“We are pleased to see more infrastructure projects in the pipeline. As we roll them out, the government shall keep working toward developing the country’s infrastructure to ensure easing of congestion in Metro Manila and spreading growth to the regions,” said Socioeconomic Planning Secretary Ernesto M. Pernia during the sixth Neda Board meeting at the Bangko Sentral ng Pilipinas on April 25.

DOLE was g iven 30 d ays by the Palace to comply with the President’s order.

In an interview, DOLE Undersecretary Joel B. Maglunsod told the BusinessMirror on April 26 that they have yet to consolidate the data of erring contractors.

“We still have to come up with that figure. But we will be able to submit that on May 10,” Maglunsod said.

The DOLE’s Bureau of Worker Condition was able to list 4,707 contractors with valid registrations as of end-March. Samuel P. Medenilla

The Nation BusinessMirror

www.businessmirror.com.ph

Editor: Vittorio V. Vitug • Friday, April 27, 2018 A3

Total OFW ban to Kuwait gains senators’ support

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By Butch Fernandez

@butchfBM

tung by an order to expel the Philippine envoy to Kuwait, senators on Thursday backed calls for the Philippine government to impose a total ban on sending overseas Filipino workers (OFWs) to the tiny Middle East kingdom until adequate reforms are taken to protect OFWs there.

Senators supported the deployment ban following the expulsion of Philippine Ambassador Rene Villa in the wake of the controversy over the embassy-led rescue of distressed OFWs a few days ago.

‘Unfortunate’

Senate Foreign Relations Committee Chairman Sen. Loren B. Legarda, also found it “unfortunate” the expulsion of the Philippine Ambassador to Kuwait in the

wake of the controversy.

“The decision of the Kuwaiti government to expel Ambassador Renato Villa is unfortunate, especially since, according to the Department of Foreign Affairs, there had already been recent talks to move the PHL-Kuwait bilateral relations forward,” Legarda said.

She stated it was “also important to underscore that the protection of overseas Filipinos constitutes one of the pillars of our foreign policy.”

Strained

“Yes,” Senate Majority Leader Vicente C. Sotto III said when asked on Thursday if senators would support a clamor to suspend OFW deployment to Kuwait following the Kuwaiti government order for Villa to pack up, the latest development in the two countries’ strained relations, which both had tried to repair with a new labor agreement that their leaders were set to sign soon, until Kuwait complained over the recent rescue of OFWs in distress.

Videos of the rescue went viral, prompting Kuwait to complain, saying the embassy did not coordinate with Kuwaiti police and breached the host country’s sovereignty.

Reacting to the order to expel Villa, Sotto said, “Ayaw nila sa atin, ayaw din natin sa kanila [If they don’t like us, we also don’t like them].”

Despite accepting the apology offered by Foreign Secretary Alan Peter S. Cayetano over the videotaped rescue—and the Kuwaiti ambassador being received by President Duterte in Davao—Kuwait issued on Wednesday the expulsion order on Villa.

Villa and the embassy staff had

Ombudsman clears PNOC-EC execs of grave misconduct raps

By Lenie Lectura

@llectura

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op officials of the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) were cleared by the Office of Ombudsman of grave misconduct in connection with a joint business venture in international petroleum trade.

In a 17-page decision received by the PNOC on April 23, the Ombudsman dismissed the complaint filed by Bernardo Lopez, saying the latter “has not quantified, demonstrated and proven to the point of moral certainty the existence of undue injury.”

“His claim that the MOU [memorandum of understanding] will cause undue injury to the government is only speculative,” the Ombudsman stated.

The PNOC-EC, led by its President Pedro Aquino Jr. and board members, were charged in connection with the board’s passage of a resolution in August 2015, authorizing Aquino to enter into a MOU with Pionaire. The authorization was subsequently followed by the signing of the MOU. The complainant alleged that the respondents violated Republic Act (R A) 10149, when they approved and entered into the MOU because Pionaire was not authorized to do business in the Philippines; undercapitalized; and registered in

Hong Kong only after the MOU signing.

The Ombudsman said that even if the allegations were found true, these “do not prove that unwarranted benefits, advantage or preference was given to the company.”

The Ombudsman further stated that the MOU was approved by the board, and that “the decision of the board is a business judgment, a corporate exercise, which, even the Office of Government Corporate Counsel revognize. “No member of the board has been proven to have any direct interest on the MOU,” the Ombudsman added.

Moreover, the complainant has not specified the unwarranted benefit or advantage that Pionaire has gained from the MOU. Also, the Ombudsman said there was no unwarranted preference given to Pionaire since PNOC-EC’s decision to sign a MOU with the former, is likewise, a business strategy.

“The charge for violation of Section 3 of RA 3019 fails because there was no evidence presented showing that the MOU was manifestly and grossly disadvantageous to the government…. The MOU does not place PNOC-EC at a disadvantage,” the Ombudsman said.

“The administrative charge for grave misconduct against public respondents, being anchored on criminal charges, must, likewise, fail,” it added.

Charter body eyes ban on political turncoatism

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he consultative committee (Con-com) tasked to review the 1987 Constitution is eyeing the adoption of a new article with provisions against party switching, or turncoatism, to institutionalize and strengthen political parties.

Con-com member Dean Julio C. Teehankee, subcommittee chairman on leveling the political playing field, said they have already agreed in principle on the subcommittee level to adopt the proposed provisions.

Teehankee said the Philippines has a long history of party-switching, noting that between 70 percent to 75 percent of politicians have switched parties since 1987.

Under the 1987 Constitution, there are no existing provisions on turncoatism.

The proposed provisions, which are yet to be voted by Con-com in its en banc session next week, include prohibitions for candidates and party officials from changing parties two years before and two years after an election and for members of political party elected to public office from changing parties during their term.

Teehankee, likewise, underscored the need to strengthen political parties.

Political parties are also prohibited under the proposed provision from accepting “transferees” within the prohibited periods, and that violation is a ground for cancellation of registration.

Violators of the provision shall lose the post to which they have been elected, barred from appointment to any post, barred from running in the next election and return any party funds they spent for campaign.

On political parties, there is a one-sentence provision, particularly on Section 6 of Article IX-C Commission on Elections (Comelec) under the current constitution, which reads, “A free and open party system shall be allowed to evolve according to the free choice of the people, subject to the provisions of this Article.”

Teehankee said they are proposing that the state, through the Comelec, shall ensure that registered political parties have clear democratic program and platform.

Bernadette D. Nicolas

been proactively monitoring cases of OFWs in distress in recent weeks, following the shocking murder of OFW Joanna Demafelis who was found dead in a freezer of her Kuwaiti employer. The Kuwaiti government then promised to render justice to Demafelis, following Duterte’s declaration he would ban deployment to Kuwait unless that country can guarantee their safety.

Labor officials from both sides were busy crafting a labor agreement—the signing of which would have marked the normalization of Manila’s deployment policy— when the rescue of more OFWs in distress triggered an angry reaction from Kuwait.

Needed assurance

Sen. Emmanuel Joel J. Villanueva, chairman of the Senate Committee on Labor, Employment and Human Resources Development, confirmed the panel’s stance supporting the deployment ban in the absence of firm assurance of protection for OFWs. “We support the total deployment ban of OFWs to Kuwait until we are given assurance that they will be provided adequate protec-

tion and assistance while working for their employers abroad,” the senator told BusinessMirror on Thursday in response to a text query.

At the same time, Villanueva asserted the need for the Philippine government to reiterate to Kuwait that “abuse, maltreatment and violence have no place in every OFWs workplace.”

Video upload

A migrant advocate group, meanwhile, called on the government to investigate the release online of the controversial videorecorded rescue operation of the Philippine embassy in Kuwait, which further strained the country’s diplomatic relation with the Kuwaiti government.

In a strongly worded statement, Migrante-Philippines Chairman Arman Hernando said authorities should hold accountable the people behind the uploading of the video for compromising the welfare of the 250,000 OFWs in Kuwait.

“They should reveal who are the masterminds and partakers of this stupidity and make them fully accountable,” Hernando added.

Optimistic

Malacañang, meanwhile, said it remains optimistic that the signing of memorandum of understanding for the protection of Filipino workers between the two countries is “all systems go.”

Presidential Spokesman Harry L. Roque Jr. said in a news briefing they are still confident that the signing of the new agreement will push through, which, he said, is expected to be signed after Ramadan.

Diplomatic note

The DFA has summoned Kuwaiti Ambassador Musaed Saleh Ahmad Althwaikh, apparently to ask about the sudden expulsion of Villa, but was informed by the Kuwait Embassy in Manila that he has been recalled to his capital for consultations.

The DFA has served a diplomatic note to the Embassy of Kuwait conveying its strong surprise and great displeasure over the declaration of Villa as persona non grata; the continued detention of four Filipinos hired by the Philippine Embassy; and the issuance of arrest warrants against three diplomatic personnel.

With Samuel P. Medenilla and Bernadette D. Nicolas and Recto Mercene

Economy

A4 Friday, April 27, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Envoy: Skilled, unskilled OFWs wanted in Russia

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By Recto Mercene

mand in various fields “like nurses, health workers, engineers and so on.”

He added that, currently, there are about 8,000 migrant workers in Russia, and 100 Filipino engineers are assigned in Sakhalin Island.

Meanwhile, recruitment consultant Manny Geslani said the prospect of sending more OFWs to Moscow may still require more effort.

“Russia is still ‘a work in progress,” he said, noting that deployment may not start soon as the Philippine government has to iron out agreements with the Russian Ministry of Labor or Immigration on the entry of OFWs. Geslani added the Middle East is still the better option for jobs rather than Russia or China.

“Saudi Arabia, Kuwait, the UAE, Bahrain, are the still the most viable options for our OFWs for overseas jobs opportunities since the economies of these countries con-

@rectomercene

ussian Ambassador to the Philippines Igor Khovaev has told an exclusive BusinessMirror forum on Tuesday that Russia is looking forward to employing more skilled and unskilled overseas Filipino workers (OFWs).

“Yes, we will accept Filipino workers, but first, we must build a solid, legal basis [for their employment] so that the workers’ rights and legitimate interests are protected. The workers musts not suffer and their rights must be fully protected,” the envoy said.

Khovaev added there’s a demand for additional Filipino workers in the Russian economy because “they [Filipinos] are hardworking [and] they are most welcome.”

Khovaev, however, could not say how many workers could be absorbed at the moment, but said there is a de-

tinue to experience high growth, especially with crude-oil prices rising to the $70 per barrel during the past months,” Geslani said.

Despite the slowdown in infrastructure projects in Saudi Arabia, the Gulf country remains the top destination of OFWs in skilled and unskilled categories, he added.

“Qatar is increasing it’s expatriates work force for more construction projects geared for the World Cup in 2022, while the UAE remains the financial center of the Arab world and is becoming one of the top tourist spots in the world,” Geslani said.

He added the demand for Filipino

Yes, we will accept Filipino workers, but first, we must build a solid, legal basis [for their employment] so that the workers’ rights and legitimate interests are protected. The workers musts not suffer and their rights must be fully protected.”—Khovaev

Sweden ready U.P., AdMu bets fail to make it to Top 10 in 2017 Bar exams to assist PHL infra buildup, airport security T

By Joel R. San Juan

S

wedish companies have expressed interest to share sustainable solutions to the Duterte administration’s infrastructure buildup thrust under the “Build, Build, Build,” (BBB), program, particularly in setting up bus-rapid transit (BRT) system and airport security.

During a recent meeting with Finance Secretary Carlos G. Dominguez IIII, Swedish Ambassador to the Philippines Harald Fries said Sweden-based companies like the Volvo Group and Saab can lend their expertise to the government and take part in the BBB program.

“The BBB program generates a lot of interest among Swedish businesses,” Fries said during the meeting.

The Volvo Group manufactures trucks, buses, construction equipment and industrial engines, while the Saab Group specializes in defense and security systems.

“For infrastructure, we sell sustainable solutions. We have many decades of successful work in this area in Sweden. The Swedish infrastructure minister has invited Transportation Secretary Arthur P. Tugade to Sweden to study how we do it,” he added.

Also present during the meeting was Ulf Wennblom, country manager for the Philippines of Business Sweden.

Wennblom pointed out that Sweden has been “in close contact” with the Department of Transportation (DOTr) under Tugade to come up with efficient alternative solutions, such as the provision of passenger buses on Epifanio de los Santos Avenue (Edsa) and on how to help ease woes of commuters riding the Metro Rail Transit Line 3 (MRT 3) system.

He added that Sweden has also provided financial and engineering support to the DOTr to help implement these alternative solutions, “and we also want to take that forward and build an efficient line on Edsa by integrating rail, buses, and other means of transport to have a complete transport system throughout Metro Manila.”

In response, Dominguez told Swedish officials that the Philippine government under President Duterte wants a holistic approach in implementing its infrastructure modernization program, in which Sweden can help by providing engineering solutions.

The finance chief cited proposals to improve the Ninoy Aquino International Airport or construct a new one near Metro Manila, aside from the Clark airport, which requires not only completing these projects but also extensive planning on the road and rail networks that need to be built to ensure seamless travel to and from the airport site. Rea Cu

@jrsanjuan1573

HE Supreme Court (SC) on Thursday a nnounced that a total of 1,724, or 25.5 percent, of the 6,748 law graduates who took the 2017 Bar examinations passed.

Associate Justice Lucas Bersamin, chairman of the 2017 SC Committee on the Bar exams, bared the results following the conduct of a special en banc session.

The number of law graduates who took last year’s Bar exams is the highest so far, according to the Court.

However, the number of those who passed is comparatively lower than the 3,747, or 59.06 percent, out of 6,344 examinees who passed the 2016 Bar examinations.

Mark John H. Simondo, a law graduate from the University of Saint La Salle in Bacolod City topped the 2017 Bar exams with an average of 91.05 percent.

Bar examinees from the University of the Philippines (UP) and Ateneo de Manila University (ADMU), the country’s top law schools, failed to make it in the top 10.

Christianne Mae Balili of the University of San Carlos in Cebu ranked second, with 90.80 percent; Camille B. Remoroza, of the Ateneo de Davao University, 90.70 percent (third); IvanneD’laureil I. Hisoler, University of San Carlos, 89.55 percent (fourth); Monica Anne Yap, San Beda College-Manila, 89.45 percent (fifth); Lorenzo Luigi Gayya, University of Santo Tomas (UST), 89.10 percent (sixth); Rheland S. Servacio, University of San Carlos, 89.00 percent (seventh); Krizza Fe Alcantara-Bagni, Saint Mary’s University; and AlgieKwillon Mariacos, San Beda College Manila are both in the eigth

place with 88.90 percent; Klinton Torralba, UST, 88.65 percent (ninth) and Emma Ruby Aguilar, UST, 88.40 percent (10th).

However, for the first time the SC recognized not only the top 10 Bar passers but also those who made in the top 20.

Lyan David Juanico and Lougenia Cariño, both of San Beda College-Manila, placed 11th and12th;ArmanJosephGuzman,ofUST,placed 13th; Jewelle Ann Lou Santos, of AdMU, placed 14th; while Stephanie Claros, of University of San Jose-Recoletos in Cebu; Rhea Doll Gonzalo, of Xavier University in Cagayan de Oro City; and Nadia Christine Mendiguarin, of Saint Louis University in Baguio City, were tied at 15th place.

The other topnotcher—from 16th to 20th places, respectively—were Eileen Carla Carpio, of San Beda University-Manila; Ella Mae Mendoza, of University of Cebu; Aecaya Christine Calero, of UST; Pretz Vernie Vinluan, of University of the Philippines; and Roniel Resurrection, of Jose Rizal University.

Meanwhile, Bersamin also announced that the oath taking of the successful Bar candidates will be held on June 1, 2018, Friday at 2:30 p.m. at the Philippine International Convention Center.

The Bar Examinations are given annually in the course of one month, spread over four Sundays at a designated venue under the supervision of the SC. It is the only licensure examinations not administered by the Professional Regulatory Commission.

The SC designates an incumbent gustice to chair a committee consisting of eight examiners, one for each bar subject.

Under Rule 138, Section 9 of the Rules of Court, the coverage of the Bar examina-

tions includes the following subjects: Political Law and Public International Law (15 percent), Labor and Social Legislation (10 percent), Civil Law (15 percent), Taxation (10 percent), Mercantile Law (15 percent), Criminal Law (10 percent), Remedial Law (20 percent) and Legal and Judicial Ethics (5 percent ). The general passing average is 75 percent under Rule 138, Section 14.

Under Rule 138, Section 12, the chairman of the annual Bar examinations is given the discretion to choose the eight bar examiners, each of whom is considered as an expert in that particular field and who, during the entire duration of the Bar examinations, would be bound by strict confidentiality.

In an interview over ANC, Simondo said that while he graduated with honors during his highschool years and graduated magna cum laude during his college years, he still did not expect to top the Bar exams since “law school is different.”

Simondo added he decided to take up law to avoid the possibility of being an overseas worker.

“My parents were pressuring me to go abroad. I felt that the Philippines is where I should be. I needed a job that would justify my stay here,” he said.

“I looked at medicine, accountancy and law.

I ruled out medicine because I know I wouldn’t be good in the hospital, and [I looked at] accountancy and law, eventually, I decided to take up law,” he added.

Simondo, however, declined to comment on the issue involving Chief Justice Maria Lourdes A. Sereno, who is facing possible impeachment trial before the Senate and a quo warranto petition aimed at removing her from her post.

Govt, Grab told: Resolve passengers’ complaint

By Jovee Marie N. dela Cruz

A

@joveemarie

lawmaker on Thursday urged the government and Grab Philippines to create a permanent solution to address mounting complaints from passengers.

Rep. Luis Raymund F. Villafuerte of the Second District of Camarines Sur, in a news statement, expressed dismay over the move

by Grab Philippines to employ its destinationmasking feature in trip bookings to only 25 percent of its driver-partners, calling this a “half-baked” scheme to solve the problem.

“Why it was limiting its move to no longer show in advance trip destinations to only 25 percent of its drivers when its previous rival, Uber, was able to implement this feature in its app to cover all of its drivers,” he said.

“This is what happens when we have a monopoly. The sole and dominant player will always come up grudgingly with half-baked solutions to appease its customers, knowing fully well that they have no choice but to patronize its lousy service,” Villafuerte added.

He said Grab’s excuse of allowing their drivers to see trip destinations in advance as a means to ensure their safety was a lame one.

“Uber was able to implement the destination-masking feature on all its drivers. How come Grab can’t do the same?” Villafuerte said.

Villafuerte also said Grab’s limited implementation of its destination-masking feature would be unfair to the drivers covered by it. “To be fair to all its drivers, Grab should implement the feature to cover all

This is what happens when we have a monopoly. The sole and dominant player will always come up grudgingly with half-baked solutions to appease its customers, knowing fully well that they have no choice but to patronize its lousy service.”—Villafuerte

of them,” he said.

Recently, the No. 1 ride-sharing player in the country, Grab, has been hounded by allegations of hidden and high charges following the shut down of its rival Uber Philippines. This, after Grab decided to merge its operations with Uber.

With this, Rep. Robert Ace S. Barbers of the Second District of Surigao del Norte, chairman of the House Committee on Dangerous Drugs, asked concerned government authorities to file charges against at least 500 partner-drivers of Grab Philippines for alleged cancellation of passengers’ bookings and other violations.

Barbers said mere suspension is not enough, as this would only result to further cancellations.

“Suspending these 500 Grab drivers won’t be enough. Charge them in court for shortchanging passengers and causing so much stress and inconvenience to them,” Barbers added.

Villafuerte, meanwhile, renewed his call for the Land Transportation Franchising and

Regulatory Board (LTFRB) to speed up the processing of the applications of four other transportation network operators to encourage competition and force Grab to improve its service.

According to reports, four new transportation network companies (TNCs)—Lag Go, Owto, Hype, Hirna and Pira—have applied for accreditation before the LTFRB. So far, only the accreditation of Hype Transport Systems has been approved by the LTFRB. Another potential TNC, Hirna, is also exploring the possibility of joining the ride-hailing industry.

TNCs like MiCab, Hero and Arcade City are also mulling over the possibility of joining the ride-hailing industry, according to reports. Arcade City was reported earlier as planning to launch its ride-hailing app despite a cease-anddesist order from the LTFRB. “Instead of issuing cease-and-desist orders, why doesn’t the LTFRB instead encourage other TNCs to fill the void left by Uber?”

Villafuerte asked.

workers in the Middle East remains high despite the deployment ban to Kuwait, which is expected to experience continued high growth.

As this developed, the Department of Foreign Affairs (DFA) said the action taken by the Kuwaiti government to send home Ambassador Renato O. Villa is deeply disturbing.

Villa has been given one week to return to Manila, a step the DFA said was consistent with the assurance given earlier by Kuwaiti Ambassador Musaed Saleh Ahmand Althwaikh.

Foreign Secretary Alan Peter S. Cayetano on Tuesday said he will ask Ambassador Saleh to explain why the Kuwaiti government reneged on the agreement reached with him to work together to move bilateral relations between the Philippines and Kuwait forward.

Police retirees urge PNP chief to halt illegal pension deductions

‘W

E earnestly pray that Philippine National Police Director Oscar Albayalde will safeguard the welfare of PNP retirees by ordering the PNP to immediately stop the unlawful practice of causing automatic deductions from our monthly pensions for the purpose of collecting pension loan payments on behalf of certain privately owned lending entities.”

This was the urgent plea that police retirees are addressing to the new PNP chief, even as they welcome his assumption to office this week.

The retirees said the automatic deductions from their monthly pensions are being effected by the PNP through its Automatic Pension Deduction Scheme and are made in favor of PNP-accredited multipurpose cooperatives (MPCs) and savings and loans associations (SLAs).

While the PNP continues with its automatic deductions, the retirees said that such practice of automatically deducting from pension proceeds to collect payment for pension loans has been declared by the Department of Justice as illegal.

In June 2017 the DOJ released an opinion clearly stating that the governing charter of SLAs, Republic Act 8367, does not authorize the PNP to deduct from retiree pensions.

The PNP has become a publicly funded collection agency for private companies, a scenario that was never contemplated by the law.

In response to increasing complaints, former PNP chief Ronald M. dela Rosa has already ordered the immediate termination of automatic deductions in order to avoid any suspicion of impropriety or illegality on the part of the PNP. “When former PNP chief dela Rosa assailed the automatic deduction from pensions, we hoped that the PNP would carry out his order to protect numerous retirees who have fallen victim to automatic deductions,” said a PNP retiree, who requested anonymity. “Despite his order, however, the deductions are still continuing to this day,” he bewailed.

Currently, six of the nine MPCs catering to PNP active service personnel and retirees are being investigated by the PNP Directorate for Comptrollership and the PNP Finance Service. Many other PNP retirees have complained against certain SLAs for the rampant misuse of automatic deduction. The PNP has been urged to look into these complaints against SLAs, as well.

“This flagrant abuse of the PNP’s system for automatic deductions has gone on for too long. It has placed us and our families in serious financial distress and ignores our urgent clamor for it to stop,” another anonymous PNP retiree said. “We pray that new PNP chief Albayalde will put this problem at the top of his priority list,” he said.

The World BusinessMirror

www.businessmirror.com.ph

Friday, April 27, 2018

A5

For the poor, the old, the disabled

US govt proposes rent-increase law

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ASHINGTON—The Trump administration has proposed legislation that could triple rents on the poorest tenants in federally subsidized housing as part of a push to redefine housing assistance as a temporary benefit instead of the permanent source of shelter it has become for millions of poor people.

The legislation, spurred by Trump’s conservative budget director, Mick Mulvaney, and drafted by aides to Ben Carson, the secretary of housing and urban development (HUD), would also allow local governments to impose work requirements on tenants in public housing deemed fit for work.

The plan would also increase rents for elderly and disabled people after six years, agency officials said.

But the new rules would hit the poorest residents hardest, with minimum monthly rents in public housing developments and for recipients of Section 8 vouchers rising to $150 a month from $50.

The increases would affect about 712,000 families over the next several years, HUD officials said.

Rent hikes would gradually be phased in for tenants based on their income and other provisions that could effectively limit the amount of time some tenants would be allowed to remain in government-funded housing.

“Every year, it takes more money, m i l l ions of dol l a rs more, to serve the same number of households,” Carson told reporters on Wednesday in a conference call. “It’s clear from a budget perspective and a human point of view that the current system is unsustainable.”

T he propos a l , gea red at

streamlining the agency and cutting the deficit, was intended to start the conversation and should not be regarded as final, Carson said.

Housing advocates and cong ressiona l Democrats immediately condemned it. “ W hat pretends to be a hand up is really a foot in the back,” said Shamus Roller, the executive director of the National Housing Law Project.

On Wednesday even as Carson was promoting the plan, department officials acknowledged that it would probably be superseded by a somewhat scaled-back set of rent increase and work-requirement proposals House Republicans plan to unveil next month.

A nd the new plan stands little chance of being passed in the Senate, where moderate Republicans like Sen. Susan Collins of Maine are likely to reject it.

T he proposed cuts would also appear to run counter to Ca rson’s behind-t he -scenes efforts to prevent the sweeping reductions proposed in Trump’s first budget.

Carson told f r iends t his year that he would quit if the president did not restore proposed cuts to programs aiding the disabled and the elderly proposed by Mulvaney, director of the Office of Management and Budget and the most powerful advocate for small

gover nment inside Tr ump’s governing circle.

Mulvaney has encouraged the new HUD rules, as well as similar work rules being enforced in Medicaid and food assistance programs.

T hey are intended to shift t he debate over safet y net programs sharply to the right by redef i n i ng “we l fa re” to encompass programs beyond direct cash assistance, like housing subsidies, that have long been regarded as quasientitlements, several administration officials said.

Trump, aides said, refers to nearly every program that provides benefits to poor people as welfare, a term he regards as derogator y. Histor ica l ly, welfare has been defined as direct cash assistance to the poor, programs that have been consistently shrinking since bipartisan welfare overhaul in the 1990s.

Advocates for the poor say that the rent increases, which seem small to people living above the poverty line, will create great hardships for families struggling to get by in areas where jobs are scarce and barriers to higher income are steep.

“It is part of a larger ass au lt on t he e nt i re so c i a l safet y net—proposing to take away limited benefits for health care, food and housing from struggling families just months after giving massive tax cuts to millionaires and billionaires is the height of cruel hypocrisy,” said Diane Yentel, president and chief executive of the National Low Income Housing Coalition, a Washington-based advocacy group. “ T his proposal would inf lict unimag inable hardsh ips on A mer ic a n s l iv i ng life on the brink of financial instability and significantly increase t he r isk of homelessness and hunger among c hi ld ren a nd at-r isk popul at ion s,” s a id R e p. Jose ph Crowley, Democrat-New York, who ser ves as chair man of the House Democratic caucus.

New York Times News Service

China may cut car import duty by half

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hina is considering cutting import duty on passenger cars by about half, according to people with direct knowledge of the matter, a move that’s set to give a lift particularly to luxury-car makers, such as BMW AG and Toyota Motor Corp.’s Lexus unit.

The State Council or China’s Cabinet, is weighing proposals to reduce the levy on imported cars to 10 percent or 15 percent, said the people, who asked not to be identified as the information isn’t public. The current rate is 25 percent. An announcement on the decision could be made as soon as next month, they said.

China’s finance ministry didn’t immediately respond to a fax seeking comment.

A lower rate will benefit carmakers—including BMW, Daimler AG and Toyota—as their imported models would become more competitive against locally manufactured vehicles.

Last week China announced it’ll permit foreign automakers to own more than 50 percent of local ventures, removing a two-decade restriction and giving a boost to global companies seeking to capture a greater share of the world’s largest car market.

Earlier this month President X i Jinping repeated the nation’s commitment to reduce import tariffs on vehicles this year, without disclosing the cut’s magnitude.

Xi’s comments were made as the United States and China intensified a rhetoric that threatened an all-out trade war between the two largest economies. While cars imported from the US, such as Tesla Inc. models, will also benefit, they may still face an additional hindrance.

As part of the trade spat, China has threatened to slap an additional 25-percent import duty on cars made in the US, which would come on top of any other tariffs.

Tesla CEO Elon Musk responded to Xi’s announcement for the lowered overall tariffs at the time by saying the move was a “very important action

by China.”

Foreign automakers have been asking for decades for a lower import duty as that would help them increase their presence in the local market without having to manufacture each model in the world’s biggest passengervehicle market.

High-end autos, in particular, will feel the effects of a tariff cut, as less of their production has moved locally.

For example, Toyota’s Lexus would benefit as the only premium Japanese marque that doesn’t manufacture in China or hasn’t announced plans to do so.

China imported 1.22 million vehicles last year, or about 4.2 percent of the country’s total sales of about 28.9 million automobiles.

Bloomberg News

After kisses, France’s Macron critiques Trump policies

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ASHINGTON—One day after President Emmanuel Macron of France and President Donald J. Trump showered each other with praise, the French president spoke more critically of his host’s foreign policy, trade and environmental decisions in a speech to Congress that amounted to an implicit rebuke of Trump’s “America First” approach.

Macron, who traveled to Washington this week hoping to persuade the US president not to walk away from the Iran nuclear deal, reiterated his argument for preserving the deal even as he said he and Trump had decided to pursue “a more comprehensive deal” to restrain Tehran.

The French president used his speech in the House chamber to urge Trump not to shrink from the leadership role the United States had played in forging the pact that Trump on Tuesday called “insane” and “ridiculous”—in the first place.

“We signed it,” Macron said of the nuclear deal with Iran, raising a finger for emphasis, “at the initiative of the United States. We signed it—both the United States and France.

That is why we cannot say we should get rid of it like that.”

Macron acknowledged that the deal had not addressed crucial concerns, including future nuclear activities in Iran, the use of ballistic missiles and the country’s destabilizing activities in the region.

“But we should not abandon it without having something substantial, and more substantial, instead,” he added. “What we decided, together with your president, is that we can work on a more comprehensive deal addressing all these concerns.”

Later, in a news conference before wrapping up his three-day visit to the United States—the first formal state visit of the Trump era—Macron told reporters that while he could not be certain, he expected that Trump would disregard his entreaties and withdraw from the nuclear deal after all, given that scrapping it was a campaign promise.

On Capitol Hill, Macron was greeted warmly with a three-minute standing ovation, and he drew several more ovations throughout his

House Speaker Paul Ryan (RepublicanWisconsin) gestures, while speaking with Vice President Mike Pence behind French President Emmanuel Macron during a joint meeting of Congress in the House Chamber of the US Capitol in Washington on April 25.

Eric Thayer/The New York Times

speech as he outlined his vision of global affairs and the alliance between the United States and France, in nearly flawless English.

He opened with a humorous nod to the much-discussed embraces he and Trump shared at the White House on Tuesday, comparing their interactions to those between the French philosopher Voltaire and Benjamin Franklin when they met in Paris in 1778.

“They embraced each other by hugging one another in their arms, and kissing each other’s cheeks,” Macron said, pausing for effect. “It can remind you of something.”

He spoke about the “unbreakable bonds” between the United States and France and their common values of tolerance, liberty and human rights. But in substance, Macron’s address illustrated the degree to which the warm personal rapport between the two presidents contrasts with the stark divides between them on vital questions of policy.

M a c ro n at t a c ke d n at i o n a l i s m a n d argued that it was up to the United States to preserve the international order it had helped to create.

“We have to shape our common answers to the global threats that we are facing,” Macron said, calling for a new, “strong multilateralism.”

“The United States is the one who invented

this multilateralism,” he went on. “You are the one now who has to help to preserve and reinvent it.”

Macron implicitly denounced Trump’s decision to impose steep tariffs on steel and aluminum, saying that the solution to the challenges of global trade was not “massive deregulation and extreme nationalism.”

“Commercial war is not the proper answer,” Macron said. “At the end of the day, it will destroy jobs, increase prices and the middle class will have to pay for it.”

Problems should be solved, he said, by negotiating at the World Trade Organization, an institution that Trump recently called “a disaster” that enforces global trade rules.

“We wrote these rules,” Macron said. “We should follow them.”

He also railed against inaction in the face of global climate change, using what has come to be his catchphrase for why the Paris climate accord—from which Trump has withdrawn— must be preserved.

“Let us face it: There is no Planet B,” Macron said. “I am sure one day the United States will come back and join the Paris agreement.”

He played down his dispute with Trump on the climate pac t as “a shor t-term disagreement” that should not prevent the United States and France from working to confront climate change challenges.

Borrowing a phrase from Trump, he said, “Let us work together in order to make our planet great again.”

Asked about what one student called the “mass migration” to Europe from the Middle East and Africa, and a corresponding increase in terrorist attacks and assaults—a linkage Trump often makes—Macron pushed back.

“I don’t believe these phenomena are directly linked to this current migration,” he said, to applause from the audience.

Speaking specifically about Muslims, whom Trump once proposed barring from the United States, Macron said: “The best answer is not just to reject these people. Not true. The proper answer is just to ask everybody in your country to respect the law of the country.”

New York Times News Service

www.businessmirror.com.ph

The World BusinessMirror

Friday, April 27, 2018

A7

What to watch when North’s Kim crosses into S. Korea

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hen Kim Jong Un crosses the border dividing the two Koreas to shake hands with southern counterpart Moon Jae-in on Friday, his footsteps will be laden with symbolism.

K im’s decision to meet on Moon’s side of the military demarcation line—making him the first North Korean leader to set foot in South Korea—ref lects new confidence in his country’s bargaining power.

He’s showing that he feels secure enough to leave his isolated capital after developing a nuclear arsenal capable of threatening Moon’s protectors in Washington, as well as Seoul. “ This is major,” said David Kang, director of the Korean Studies Institute at the University of Southern California. “He is losing all the optics that others accuse him of—wanting to pretend that he is at the center of the world and that whoever is visiting is a dignitary coming to kowtow.”

The venue—at the “Truce Village” of Panmunjom where the armistice was signed—is only one change from the previous interKorean summits in 2000 and 2007 that were held in Pyongyang.

This meeting is intended to

facilitate negotiations over Kim’s nuclear-weapons program, rather than reward their results.

Kim is expected to cross the border around 9:30 a.m., Seoul time, when he’ll be welcomed by Moon and an honor guard, South Korea said on Thursday.

The pair are expected to begin their summit around 10:30 a.m. and announce any agreements in the afternoon before jointly attending a banquet.

The event will set up a historic meeting between the North Korean leader and US President Donald J. Trump some time by early-June.

The unprecedented encounter, which observers say could either finally resolve the 68-year-old Korean War or create conditions for a new one, has infused every gesture and remark between Kim and Moon with gravity.

In recent weeks, Kim, whose government has often derided the South Koreans as United States “vassals,” has emphasized reconciliation and flexibility.

Leading the way

South Koreans hold a banner showing the pictures of South Korean President Moon Jae-in (left) and North Korean leader Kim Jong Un to welcome the planned summit on Friday between South and North Koreas near the presidential Blue House in Seoul, South Korea, on April 26.

Seoul says North Korean leader Kim Jong Un and South Korean President Moon-Jae-in will plant a tree together and inspect an honor guard after Kim walks across the border for the leaders’ historic summit. The letters read “ Peace, A New Start.” AP/Lee Jin-man

Last Fr iday he extended his f reeze on nuc lea r-weapons testing as par t of a shift toward greater emphasis on the economy.

T he moves have raised expectations that the two sides could

announce some breakthrough, such as declaring an end to their enduring war. That could open the door for formal peace talks and a security guarantee from the US—a crucial step to convincing Kim to disarm.

This is major. He [Kim Jong Un] is losing all the optics that others accuse him of—wanting to pretend that he is at the center of the world and that whoever is visiting is a dignitary coming to kowtow.”—Kang

“We can’t imagine any scenario where the Nor th Koreans are even going to contemplate g iving their nuclear weapons without a peace treat y and w ithout secur it y g uarantees,” said Suzanne DiMag g io, director and senior fellow at New America in New York, who facilitated talks in Oslo that led to US citizen Otto War mbier’s release from Nor th Korea. “ T he inter-Korean dia log ue is obv iously leading the way on the direction of how the US -Nor th Korean dia log ue w il l go.”

Moon, the son of North Korean refugees, has matched Kim’s flair for symbolism. The South Korean leader has prepared a banquet for Kim featuring a menu rich with Korean history, including dishes from the hometowns of past South Korean presidents, noodles from Pyongyang and references to Kim’s boarding-school days in Switzerland.

Friday’s summit meeting will take place in a room with a wide painting of Mount Kumgang—a tourist complex at the corner of the eastern coast and the border with South Korea.

Then-President Lee Myungbak immediately suspended tours there after a South Korean tourist was fatally shot by a North Korean soldier for entering a restricted zone in July 2008.

Moon is a proponent of the “ Su nsh i ne Pol ic y ” of for mer

President K im Dae-jung, who broke with the hard-line policies of previous South Korean leaders and met with then-North Korean leader Kim Jong Il. Moon served as chief of staff to Kim Dae-jung’s successor, President Roh Moo-hyun, who secured a landmark agreement in 2007 that included an agreement to start peace talks.

Should K im cross the border on foot on Friday, it would evoke Roh ’s own symbolic walk across the frontier 11 years ago. That would set the tone for a summ it , where e ver y t h i ng f rom welcoming ceremony to seating arrangements to guest lists will be careful scrutinized for layered meaning.

In 2000 the North Koreans’ guests to a farewell luncheon were symbolically important leaders with no practical role in interKorean relations.

In contrast, t heir 20 07 g uests inc luded the pr ime minister a nd t he defense minister—bot h of whom were involved i n i mplement i ng t he resu lt ing dec l a rat ion.

Getting the symbolism right will be a top priority for Moon, who’s hoping to avoid the failures of past efforts to secure peace and end North Korea’s nuclearweapons program.

The two sides will meet at an oval table, 2,018 millimeters long, in a nod to what some hope will be an historic year. Bloomberg News

A8 Friday, April 27, 2018

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Editor: Dennis D. Estopace • Friday, April 27, 2018

A9

Govt data bares CAR fastest-growing region

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By Cai U. Ordinario

@cuo_bm

HE Cordillera Administrative Region (CAR) was the fastestgrowing region nationwide in 2017, according to the Philippine Statistics Authority (PSA).

The PSA disclosed the CAR posted a Gross Regional Domestic Product (GRDP) of 12.1 percent in 2017 from 2.3 percent in 2016. CAR was the third-slowest growing region in 2016.

Out of the country’s 17 regions, only nine regions posted higher growth compared to their 2016 performance.

Also notable was the performance of the Autonomous Region in Muslim Mindanao (ARMM) which grew 7.3 percent in 2017, from a growth of only 0.4 percent the previous year.

ARMM was the slowestgrowing region in 2016, but became the fifth fastestgrowing region in 2017.

Regions that completed the top 5 also included Davao region, which grew 10.9 percent and ranked second followed by Western Visayas at third with a GRDP of 8.4 percent, and Soccsksargen at fourth with a growth of 8.2 percent.

Meanwhile, the slowestgrowing region was Eastern Visayas with a GRDP growth of only 1.8 percent. The region was the fastest-growing region in 2016 with a growth

of 12 percent.

Other regions that posted slower growth included Central Luzon which grew by 9.3 percent in 2017 from 9.5 percent; NCR or Metro Manila, 6.1 percent from 7.4 percent; and Northern Mindanao, 5.9 percent from 7.5 percent.

The list also includes Ilocos region, which grew 5.8 percent in 2017 from 8.5 percent; Central Visayas, 5.1 percent from 8.6 percent; Bicol region, 5.1 percent from 5.5 percent; and Zamboanga Peninsula, 2.3 percent from 4.6 percent.

Imperial Manila

DESPITE posting a slower GRDP growth in 2017, Metro Manila continued to account for the largest share in the country’s GDP at 36.4 percent.

It was followed by Calabarzon with a share of 16.8 percent and Central Luzon with a share of 9.7 percent.

Calabarzon is comprised of five provinces (Cavite, Laguna, Batangas, Rizal and Quezon), while Central Luzon has seven: Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales.

Solon reveals shoddy rehab of Zamboanga after 2013 hostilities

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By Jovee Marie N. Dela Cruz

HE chairman of the House Committee on Housing and Urban De ve lopment on T hu rs day revealed that substandard materials were used in the construction of housing units for Zamboanga siege victims.

Rep. Alfredo Benitez of the Third District of Negros Occidental the panel chairman, said there were evidence indicating that the housing and facilities built for the Zamboanga siege victims were made of substandard materials and inferior engineering.

In March Benitez said his committee sent an inspection team to Zamboanga to conduct an initial investigation on the reported substandard housing units.

“Our team obser ved cracks and holes in several housing units that they inspected in various resettlement sites. There were also several homes do not have electricity and water connection,” Benitez said. “Some residents also complain of undersize septic tanks resulting in foul odor and poor sanitation.”

Under the Zamboanga City Roadmap to Recovery and Rehabilitation, the lawmaker said the government allocated P1.5 billion for the construction of 6,343 housing units.

“Nothing more can convince us that people left homeless as a result of the 2013 Zamboanga siege have

@joveemarie

become victims twice,” the lawmaker added. “We became victims ourselves.”

Benitez, Rep. Celso Lobregat of the First District of Zamboanga City and Zamboanga City Mayor Beng Climaco fel l into murk y creek in Sitio Hongkong, Barangay Rio Hondo, after the wooden footbridge they were stepping on collapsed, while conducting inspection tour of housing and community facilities built by government for the Zamboanga siege victims.

Moreover, Benitez said residents of the housing project built by contractors of the National Housing Authority (NHA) are assured of immediate action on their complaints about the substandard housing units.

The lower chamber has launched a legislative inquiry into the construction of housing projects for families rendered homeless following man-made and natural disasters.

Last year the housing committee also validated that substandard materials were used in the construction of housing units in Eastern Samar for victims of Supertyphoon Yolanda.

Benitez said only 49.84 percent or 190,413 houses out of the target 382,082 units for typhoon victims were completed by NHA in 2016.

He added of the total houses completed and ready for distribution, only 76,004 are actually occupied.

Metro Manila also had the highest real per capita GDP nationwide at P244,453 in 2017.

The average real per capita GDP of the Philippines increased by 5 percent to P82,592 in 2017, or from P78,676 in 2016. “[The] NCR posted the highest per capita GRDP at P244,453 in

2017, which is 5 percent higher than in 2016 and nearly three times the national average,” the PSA said.

Aside from NCR, the Calabarzon region and the CAR posted real per capita GRDP higher than the national average at P99,328 and P83,044, respectively.

In April the PSA reported that the

country’s GDP in the fourth quarter of 2017 was revised downward from 6.6 percent to 6.5 percent.

However, the annual growth rate of GDP for 2017 was maintained at 6.7 percent.

Major contr ibutors to t he downward revision were trade and repair of motor vehicles, mo-

torcycles, personal and household goods, financial intermediation and other services.

Relatedly, Gross National Income and “Net Primary Income from the Rest of the World” were revised to 6.1 percent and 3.7 percent from 6.2 percent and 4.1 percent, respectively.

A10 Friday, April 27, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Press freedom and press trust

R

eporters Without Borders (RWB)—an international non-governmental organization that promotes and defends freedom of the press—released its 2018 World Press Freedom Index. The group reports that the Index “reflects growing animosity toward journalists. Hostility toward the media, openly encouraged by political leaders, and the efforts of authoritarian regimes to export their vision of journalism pose a threat to democracies.”

As if on cue, and to validate that conclusion, the House of Representatives Press and Public Affairs Bureau (PPAB) released its “institutional codified rules for media coverage.”

The House media office stated that there was “a need to give more teeth to the House’s efforts of ensuring a systematic and orderly media coverage that will be beneficial to both the House and the media, and ultimately to the citizenry.” Further, the PPAB said the press card of a House-accredited reporter may be revoked “if the bearer besmirches the reputation of the House of Representatives, its officials or members.”

The index from RWB does not carry complete credibility with us as it is a survey of “the degree of freedom available to journalists in 180 countries determined by pooling the responses of experts to a questionnaire devised

by RWB.” Also taken into account is quantitative data like journalist killings and imprisonment.

But “the questionnaire is targeted at the media professionals, lawyers and sociologists.” In other words, a large portion of the results is based on the opinions of journalists themselves.

The threat and actual physical harm to journalists is a clear and present danger for which there is absolutely no excuse, and governments—including here in the Philippines—are in effect accomplices to those crimes. However, much of the freedom that RWB discusses concerns concentration of media ownership in a few hands, protection of sources and access by foreign journalists to a particular nation.

Japan scores behind such nations as El Salvador—“The media are among the victims of the widespread violence in El Salvador, one of the world’s most dangerous countries.” Japan scores badly (lowest of the G-7 countries) because “the system of “kisha clubs” (reporters’ clubs) continues to discriminate against freelancers and foreign reporters. Journalists find it hard put to fully play their role as democracy’s watchdog because of the influence of tradition and business interests.”

There is an elephant in the room—in fact two elephants—in this discussion. The first is that RWB and the industry itself refuses to address the issue that the press and media is not trusted by the public as it used to be. That creates the other elephant that there is low public support for the press and media on “press freedom.”

Global “public trust in traditional media has fallen to an all-time low” according to Richard Edelman, chief executive of the world’s largest public relations consultancy, which publishes the annual Edelman Trust Barometer.

Trust in media decreased from 51 percent to 43 percent, an all-time low, with the sharpest falls in Ireland, Australia, Canada and Colombia, according to the 2016 results.

Here are two headlines about the same news story. From Agence FrancePresse (third largest news agency in the world): “Philippines to Deport Australian Nun who angered Duterte.” From The Jakarta Post newspaper: “Philipines Expels Australian Nun for Political Activities.” Are both “true?” Maybe, but they are not equally unbiased.

Prominent US television personality Mika Brezinzski speaking of President Donald J. Trump spinning government data said: “He [Trump] could have undermined the messaging so much that he can actually control exactly what people think. And that, that is our job.” That is part of the freedom of the press.

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Art Amansec

All About Social Security

M

ay 1, 2018, or Labor Day is just around the corner, hence, it is timely to examine the current and hot issues affecting the workers’ sector. One such issue concerns the matter of endos, contractuals and contractualized employees.

Endos, contractuals and contractualized employees do not enjoy full security of tenure rights as guaranteed by the Constitution and the Labor Code.

We will understand more about these kinds of employees by citing examples. Endos refer to those usually employed in department stores and shopping malls. They sign employment contracts with their employer for a duration of five months or less.

After their brief tenure, they are automatically laid off and are again rehired under the same terms for a similar cycle. They also belong to the category of temporary employees.

They do not enjoy the rights usually enjoyed by regular employees, particularly the rights to a separation pay, 13th month pay and retirement pay.

It is useless for them to organize or join labor unions because of the temporary nature of their employment.

Employers find authority to hire endos in Article 280 of the Labor Code, which allows employers to hire employees on a project basis. To the endo employers, the project pertains to their five-months engagement.

Unlike endos, contractuals can enjoy a lengthier tenure of employment; say six months or more, a year, two years or three years. Their contractual employments end after their short terms expire. They do not enjoy full security of tenure rights.

Their security of tenure is good only for the duration of their contracts.

Like endos, they do not enjoy the right to a separation pay and retirement pay. Because of the temporary nature of their employment, it is also useless for them to organize or join a labor union.

It takes time to organize a labor union or reap the benefits of its collective bargaining agreement (CBA)

A nation of masochists?

Val A. Villanueva

Businesswise

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

Online Editor Social Media Editor

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

Of ‘endos,’ contractuals and contractualized employees

Conclusion

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he Duterte government’s flagship project “Build, Build, Build” could increase current Philippine national government debt of approximately $123 billion to $290 billion, excluding interest.

About $167 billion is expected be spent on this ambitious project.

With high rates of interest from China, the new debt could swell to over a trillion US dollars in 10 years.

It is not farfetched that at 10-percent interest the new debt could go as high as $452 billion. My belief is that this could significantly raise the country’s debt-to-GDP ratio to 197 percent, a very alarming figure.

Since current national government debt would also accumulate interest over that time, such scenario would further put a heavy debt burden shackling the Philippines into virtual debt bondage.

If surveys are to be believed, majority of the Filipinos are still very much satisfied with the present dispensation despite its glaring missteps.

When done properly, according to Bob Herrera-Lim, managing director for Southeast Asia of Teneo Holdings, surveys become relatively reliable snapshots of public opinion. Therein lies the catch, he cautioned, because scientific and reliable surveys must first have a truly random sample.

Explained Herrera-Lim: “It is random sampling which allows companies to check that their products are safe even though they make millions of them without having to check each

with the employer. Negotiation of the CBA alone could be quite lengthy.

Also like endos, employers employing contractuals find authority in Article 280 of the Labor Code, which allows employers to hire employees on a project basis. To the contractual employers, the project pertains to their six months, one, two or three years engagement.

Contractualized employees are different from endos and contractuals. While endos and contractuals have only one employer, contractualized employees have two, the real employer and the fictitious employer.

Employers employing contractualized employees find authority from Articles 106 up to 109 of the Labor Code, which allow the real employer to hire employees through a fictitious employer. The best examples of contractualized employees are security guards. The principal or the real employer hires the security guards through the security agency. The principal and the security agency sign a service agreement indicating that the security agency is the employer of the security guards and they are just temporarily assigned to guard the premises of the principal. By this scheme, the security guards cannot join the labor union existing in the workplace of the real employer and avail themselves of the benefits under their collective bargaining agreement.

As far as security agencies that provide security services are

concerned, contractualization may be justified and accepted. Security guards who need special training in handling firearms and security provision are not really part of the core business of most employers, like those in manufacturing or callcenter businesses. What the labor unions are angry about is the fact that many employers have abused the contractualization system. They have put part of their work force under the system even if they perform the core functions in the employer’s business. These employers, by doing so, have succeeded in avoiding paying their employees the same rates paid to their regular employees and in avoiding unionization in their plant or workplace.

It is then easy to perceive why the labor unions are vehemently against contractualization. Contractualization has diminished their membership and concomitantly their political power. On the other hand, due to contractualization, business in the country has flourished with the lessening on costs of operation and the noninterference of labor unions in their business affairs and prerogatives to run their business the way they want to. In fact, contractualization has been considered and identified by analysts as one of the reasons behind the seemingly unstoppable growth of the Philippine economy.

The Social Security System, the See “Amansec,” A11

and every one. So, a survey of voters randomly calling mobile numbers is not random, because not all voters have cell phones, with the result that the opinions of people without mobile devices will not be included.”

He said that the second important consideration to the use of a truly random sample is the question being asked. “In some situations, people will be less candid; thus the need to have a well-phrased question and properly trained interviewer. Without both, the credibility of a survey can decline quickly, which is why Internet polls are normally unreliable, even misleading. It is often beyond the abilities of the laymen, even the well-educated ones, to reasonably assess whether a survey has been done scientifically.”

In other countries, Herrera-Lim pointed out, “Well-trained journalists and statisticians often take a look at a pollster’s methodology and his or her history in getting things right to get a sense as to whether they are reliable. Also, journalists have to do a better job of explaining the margin of sampling error, or the nonresponse bias. The ultimate test of any survey is voting day.”

So, are you better off today than you were two years ago? If the coun-

try’s economy were to be our gauge, the resounding answer is “No!” But why would economic growth matter?

Weak economic growth signifies that the economy is doing poorly, which often means falling incomes, lower consumption and job cuts. The impact on the lives of businessmen, middle managers and minimumwage workers alike are severe: large falls in wages, restricted access to credit, and a growing number of unemployed people.

So, are you truly better off now?

Are you among the survey respondents who said they were very much satisfied with their lives now? Or could you be one of those who have never been part of any survey sample, and think otherwise? Perhaps, you too would have answered positively had you been surveyed, not because you are actually enjoying the economic gains that the present administration has been claiming to have achieved in the past two years, but because you count yourself as perennially optimistic.

I dread to think that we have become a nation of self-defeatists or masochists.

For comments and suggestions, e-mail me at mvala.v@gmail.com

Opinion BusinessMirror

www.businessmirror.com.ph

Taiwan’s National Health Insurance: A Model for Universal Health Coverage

Writing about the art of travel

By Dr. Chen Shih-Chung

Minister of Health and Welfare Republic of China (Taiwan)

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he World Health Organization (WHO) has for years urged member-states to take action to achieve universal health coverage by 2030. Although not a WHO member, Taiwan has offered universal health coverage to our island’s 23 million citizens since 1995.

Taiwan launched the National Health Insurance (NHI) initiative by integrating medical programs from existing insurance systems for laborers, farmers and government employees, which covered only half the population. This has since been expanded to provide equal coverage to all citizens from birth, regardless of age, financial status or employment status. Furthermore, all foreigners who legally work or reside in Taiwan are also afforded the same coverage.

The NHI is a public program run by the government based on a single-payer model. Life expectancy in Taiwan has subsequently increased to levels seen in key OECD (Organisation for Economic Co-operation and Development) countries, with women living on average to 83.4 years old, and men to 76.8. Yet, health-care costs are far lower in Taiwan than in most highly developed countries in Europe and North America, at $1,430 per capita per year, representing just 6.3 percent of GDP in 2016. Administrative costs run at less than 1 percent of the total and public satisfaction remains high, at 85.8 percent in 2017.

Taiwan’s health system has undergone several reforms over the last 20 plus years to ensure its sustainability given shifts in the socioeconomic landscape. Implementing the Global Budget Payment on top of Fee-For-Service reimbursement method effectively reduced annual medical expenditure growth from 12 percent to 5 percent since 2003.

And the way premiums are collected has also changed from being purely payroll-based, to including supplementary premiums based on capital gains, which has created a surplus into the National Health Insurance Fund.

In addition, the NHI’s information system has migrated to the cloud, making it much easier for hospitals, clinics and doctors to access medical information. We encourage hospitals to upload computed tomography (CT) and magnetic resonance imaging (MRI) scans so they can be retrieved for follow-up consultations. A personalized cloud-based service called My Health Bank also enables patients to check their medical records at any time.

The government has adopted a wide range of measures to reduce health inequalities affecting disadvantaged groups. We have premium subsidies for low-income and nearpoor households, as well as the unemployed. We have also improved the

Amansec. . .

continued from A10

sole and behemoth social insurance provider in the country with 35 million or so member-employees and billions in assets, does not employ endos or contractuals. What it employs are contractualized employees but limited to security guards, elevator and maintenance personnel.

Unlike other big corporations, it has not contractualized a huge chunk of its employment force. It does not intend to either. In fact, what is on the drawing board is the absorption of its contractualized employees as part of its regular work force.

SSS employees, through their labor union, Access, headed by its president, Amorsolo Competente, has an existing Collective Negotiation Agreement with management that boasts of substantial benefits to SSS employees. Industrial peace prevails in the SSS because of the responsible and active leaders of Access and management’s keen understanding of, and concern about, their needs.

provision of services in areas with limited health-care resources, and implemented an Integrated Delivery System (IDS) in remote areas to strengthen its medical capacities and qualities. We also raised subsidies on preventive health-care services for indigenous populations.

In a globalized world, it is impossible for countries to overcome all their health-care challenges on their own.

It is only through interdisciplinary and international cooperation that we can build a global health system that consistently and cost-effectively meets the health-care needs of the world’s citizens, and bring to fruition the WHO’s ultimate goal of health for all.

Taiwan has a great deal of experience in building and maintaining a universal health-insurance system, from service-provider management to financing and coping with socioeconomic change. More to the point, we believe that Taiwan’s health-care system can serve as a model for other countries. Taiwan has a constructive role to play in creating a robust global health network, and the best way to share our experience with other countries is through participation in the World Health Assembly (WHA) and the WHO. It is regrettable that political obstruction led to Taiwan being denied an invitation to the 70th WHA as an observer last year. The WHO not only failed to abide by its Constitution, but also ignored widespread calls for Taiwan’s inclusion coming from many nations and international medical groups all around the world. Yet despite this, Taiwan remains committed to helping enhance regional and global disease prevention networks, and assisting other countries in overcoming their health-care challenges.

Against this backdrop, Taiwan seeks to participate in the 71st WHA this year in a professional and pragmatic way, as part of global efforts to realize the WHO’s vision of a seamless global disease-prevention network.

This also goes in line with UN Sustainable Development Goal 3, which is to ensure healthy lives and promote well-being for all at all ages by 2030.

We, therefore, urge the WHO and related parties to acknowledge Taiwan’s long-standing contributions to promoting human health worldwide, recognize the significance and legitimacy of Taiwan’s involvement as an observer in this year’s WHA. Because we believe that to achieve health for all, Taiwan can help.

MAIL

I read with interest the article entitled “Puerto Princesa Underground River: A call for new branding and prestige,” and I feel that the readers of the BusinessMirror deserve the right to know the full picture behind this innacurate and wholly biased opinion piece.

As the organization under whose authority the campaigns to elect the man-made New 7 Wonders of the World, the New 7 Wonders of Nature and the New7Wonders Cities were elected, we take great pride in honoring the over 600 million votes cast worldwide that together, freely and democratically, choose all these New7Wonders.

The opinion piece attempts to

Friday, April 27, 2018 A11

Tito Genova Valiente

annotations

“Reading the world is like writing, and both are like traveling.”—Kim Fortuny

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his is an old book, even as it was published in 2003, this book about a writer talking about the writing of Elizabeth Bishop, the poet.

The book had remained untouched for a long time, lost as it was in the disorderly personal file and unseen given my vision then before my eye operation. It is interesting for me, at most, that after I had regained my good vision I would reclaim this book about traveling, about leaving one’s home to see the world outside.

The book carries the title, Elizabeth Bishop. The Art of Travel. The book, however, is not Bishop, the poet talking about the art of travel, but about Kim Fortuny, a literary scholar, deconstructing the ideas of the poet about travel by way of her poetry and prose.

For a poet seen by many as apolitical, Elizabeth Bishop’s writing is explored for its political engagement.

Fortuny explains how Bishop differed from the “many of her contemporaries and predecessors in the field of travel literature because she approached the subject fully conscious of her position as a colonial writer.”

The book is with me now. Unlike Bishop described by Fortuny as possessing this “unpremeditated or reluctant positioning vis-à-vis her foreign subject,” I have this book with me because I planned to write about this trip.

I am now in a relatively progressive town in Camarines Norte. I took the plane and landed in Naga and from there took a cab to this town, passing through a national park.

There are good memories about this park: many years ago, this forest was a forest. The buses were not airconditioned then. When we passed through the park, the canopies of the huge trees cast grand shadows over the road. The air would turn cool and, on some months, packed with pleasant chill. Lest I sound presumptuous, I like to think I was, without my knowing it, following the path of Bishop who was conscious of the colonial gaze she was employing, and never denied it.

On one of those trips, I looked out of the window of the bus trudging up the curved highway and caught the sight of two children. One was a boy aged 6 or 7; in his arms was a baby, his sister or brother, perhaps?

The boy could be older but, because of malnutrition or undernutrition, he was tiny and thin. Where were their parents?

Children in rural areas or in forested places are usually given tasks that are unimaginable to parents or children in urban areas or in families that are economically comfortable

and, maybe, possessing surplus.

Talking about the economic aspects of children living in the forest, I feel I have ruined my prose. What am I doing by commenting about these children and, for that matter, on child labor? Am I seeking outside help? Do I have plans to go back to that clearing in the forest to rescue them?

My prose—with the mention of scenes of poverty—is attempting to save me. The prose is talking: this writer is a good person and he is writing the world of poor children because he cannot ignore it.

It has been years from that quick time in the forest. The bus had left the area that day and I arrived in my destination. I believe I forgot about the children as soon as I stepped into the comfort of the home that day.

I am here again in that town at the end of the forest, a great area of it reduced to grassland. I am writing about my travel this time. On the way to my destination, I was thinking of a place, a hotel to stay in. This is not a foreign travel but I might as well be a foreigner questioning the lack of hotels, the absence of the kind of aesthetics that I preferred in a hotel.

I was raising issues that, perhaps, are not even imagined in this town.

I arrived at the hotel finally selected by the organization that invited me. It looked good enough.

The registration happened quickly and, soon, I was being led to a row of rooms with tiny, lovely verandas outside. The hotel staff who insisted on carrying my small luggage walked on and on, passing by what looked like rooms worthy at least of the label, “Deluxe.” He walked on and on till we reached another area. The small verandas had disappeared and there was just this door.

He opened it and a sorry excuse for a bed begged to be considered. The

next few minutes were blurred. I am being melodramatic of course.

I was complaining about the accommodation. I proceeded to the restaurant, hoping that food could assuage my irritation. I ordered for Caesar’s Salad and when it arrived, I was looking at tough lettuce, tender croutons, hard, hard carrot strips, bacon strips stripped of any sign of fat, sliced olives as old as the Redeemer who once prayed in a garden planted to the same fruits.

This is not my day, I told myself. Outside the restaurant, in a dank aquarium, floated half-dead big fishes from the deep sea, some shells and some crustaceans. I don’t eat them. While contemplating the sorrow for that moment, the staff who carried my bags, appeared and asked if I would be willing to add a few hundred and they could move me to another room. I agreed. In a few minutes, I was in a room that was dull but clean. But that was not the heart of the moment. Just outside my door, a wide sea opened with uneven surfs rushing to the shore, the reefs breaking the waves, the wind endlessly shattering the day.

Back to the book, Fortuny has looked into Bishop’s poem. “Questions of Travel,” where, according to Fortuny, she questions the speaker’s motives for foreign travel. Here are those lines: Should we have stayed at home and thought of here?/ Where should we be today? Then it continues: Is it lack of imagination that makes us come/to imagined places, not just stay at home?”

After I finish this essay, written in my dull but clean room, I will step out and be stunned by the surfs, the lighthouse condemned, it seems, to beam from afar, and regard my lack of imagination.

E-mail: titovaliente@yahoo.com.

The EU is PHL’s first net foreign direct investor, second export market, third source of tourist visitors and fourth source of OFW remittances Edgardo J. Angara

L

ast year the Philippines exported to the European Union (EU) up to P486 billion ($9.3 billion) worth of goods. That volume makes the EU the second-largest market for Philippine-made office and telecommunications equipment, machinery and food products.

The 41-percent jump from P325 billion ($6.2 billion) exported in 2015 reflected the special zero-tariff

privileges on up to 6,200 Philippine products the EU granted to the Philippines under the EU’s Generalized

Scheme of Preferences Plus (GSP+).

Farmers and fisherfolk, especially those from Mindanao, are reaping the most from the GSP+ benefits on account of its fish, fruits and other agricultural exports.

In investment, according to the Bangko Sentral ng Pilipinas, net foreign direct investment flows from the EU amounted to $1.683 billion in 2017. This is significantly greater than the $469.6 million from the United States, the $56.3 million from Japan and $28.8 million from China.

In overseas Filipino workers remittances, the Filipino expatriates in the EU sent back home up to $3.396 billion to their families.

In tourism, Europeans comprise

the third-largest group of foreign visitors to the country, next to Americans, Koreans, Chinese and Japanese. In fact, EU tourists to the Philippines are among the fastest to grow in numbers—from 376,440 in 2013 to 583,211 last year, representing a 55-percent five-year increase.

Only Chinese tourists are coming to the Philippines with greater speed.

Clearly, the EU is a vital partner of the Philippines in terms of trade, investment, remittances and tourism. Hence we need more awareness about the EU more than the surface media coverage.

E-mail: angara.ed@gmail.com| Facebook and Twitter: @edangara

Our view of Puerto Princesa Underground River: A people’s wonder, not an elitist reserve

compare our New7Wonders Foundation (a self-funded foundation that does not drain government purses, in fact, we generate economic value for our participants) with United Nations Educational, Scientific and Cultural Organisation (a Paris-based bureaucracy that only exists through massive public subsidies, and, in fact, does so in such an inefficient way that some governments, notably even the US since Obama’s presidency, have stopped funding it all together). Actually, if we compare the voted 21 New7Wonders sites with the 1,000 Unesco selected world heritage sites, in our view the work we do and the work Unesco does is entirely complementary. But let us not fall into the trap of thinking that having a United Nation tag means an organization is pure and perfect, something President Duterte also understands very

well. Of course, some UN bodies are exemplary in their work, such as United Nations International Children’s Fund, such as Food and Agriculture Organization, such as UN High commissioner for Refugees and the main UN itself. Unfortunately, the Unesco, especially in the past decade or so, has not moved on with the world. It remains an unreformed post-World War II relic with a semicolonial vision of the planet, secretly choosing heritage sites to protect and police through an opaque conclave of so-called experts (in reality a cabal of bureaucratic lobbyists, oiling themselves and an enriching machinery set up for the few not the many). Contrast this with New7Wonders, a 21stcentury empowering and popular freedom platform, letting people choose what they believe are the Wonders. And according to at least four independent studies, also cre-

ating incredible economic, tourism, marketing value for the participating and winning locations—value that creates jobs, that brings educational and social development opportunities, and most of all interchange and greater understanding between peoples.

The Philippines has two voted New7Wonders, Puerto Princesa Underground River and Vigan, proud world achievements of a people and nation that I have grown to admire and respect over the years.

Yes, there are the challenges that come with success, but surely it is better to positively and constructively overcome those challenges with the intelligent solutions that are already known, rather than belittle this achievement, rather than asking Pinoys and Pinays to again sit back down and do as you are told. With New7Wonders all our voters have the right to stand,

to shout and to be heard.

Finally, for all those who think our mission as New7Wonders is done, I am happy to say that we continue to work with all the Wonders to identify and share opportunities. And we still believe in the right for people to be heard, as witnessed by our new global voting campaign to choose the 7 Symbols of Peace—I invite all readers to visit www.7symbolsofpeace.com, and suggest and vote for your chosen Symbol of Peace. Maybe your own President Duterte, who has cast a new mould in the world of politics, could become one of these Symbols of Peace? As always, we at New7Wonders do not have a say in who are our winners, but you do—vote now.

Jean-Paul de la Fuente Director New7Wonders Foundation Zurich, Switzerland

2nd Front Page BusinessMirror

A12 Friday, April 27, 2018

www.businessmirror.com.ph

Booking cancellations in Boracay hit ₧100M

By Ma. Stella F. Arnaldo

B

@akosistellaBM Special to the BusinessMirror

OOKING cancellations in Boracay Island have reached an initial P100 million due to its six-month closure, which began on Thursday, April 26.

This was the revelation of Hotel Sales and Marketing Association International Inc. (HSMA) President Christine Ann U. Ibarreta in an interview with the BusinessMirror. “That’s just for two months,” she said, basing on reports of their association members who have properties on the popular resort island. She said she assumed “the figure would be higher with other resorts included,” and for the entire six months the island will be closed.

“The problem is, those who have canceled are

transferring to other destinations abroad, not here in the Philippines,” she pointed out, “because Cebu, Bohol, etc. are full, as well.” Ibarreta explained many foreign tourists make their bookings six months to a year before their actual travel to the Philippines, thus the other equally popular local destinations have already been booked beforehand.

As this developed, economist John Paolo R. Rivera of the Andrew L. Tan Center for Tourism laid the Boracay environmental mess squarely on the doorsteps of

the government for promoting the island without considering its carrying capacity.

Speaking during the HSMA’s general membership meeting at The Bayleaf Hotel in Intramuros, Rivera said, “We promoted it. So naturally, people came. But did you consider Boracay’s carrying capacity? Someone didn’t do his homework.”

He suggested that Boracay go for higher-spending tourists and that the government limit the number of arrivals, much like Bhutan, once the carrying capacity is determined. “Make Boracay expensive,” he proposed; this way, the stress on the island’s environment will be reduced and result in “sustainable tourism.”

He said while the number of visitor arrivals is an important number in determining tourism success, it was better to prioritize higher expenditures or income earned from tourists instead.

The Department of Environment and Natural Resources is currently conducting a study to determine

Economist John Paolo R. Rivera, associate director of the Dr. Andrew L. Tan Center for Tourism, Asian Institute of Management, proposes limiting the number of tourists in Boracay Island, during the general membership meeting of the Hotel Sales and Marketing Association International Inc. This will help keep the destination’s environmental integrity and foster sustainable tourism, he avers. Ma. stella F. Arnaldo

the carrying capacity of Boracay. It was expected to release the results of this study last week. The Department of Tourism had earlier determined that Boracay had breached its carrying capacity in 2009, when tourist arrivals then hit 650,000.

In a separate interview, Teody E. Espallardo, director of Sales and Marketing of Alta Briza Resort in Boracay, said his 108-room resort is recording revenue losses of some P8 million a month due to the closure of Boracay. “We had high blockings until next year,” he said, noting that his guests were Chinese and Koreans who had chartered flights to Kalibo for their stay. “So we had to refund them,” he lamented on the sidelines of HSMA GMM. For her part, Carmela H. Bocanegra, vice president for sales and marketing at Chroma Hospitality, operator of Crimson Hotels and Resorts, there were opportunity losses incurred because their Boracay resort had just soft-opened in March.

“Until now, we still have guests checking out of the resort,” one of who is a British celebrity that she declined to name to keep his privacy. “But we were jump-starting [as we opened in March], and business had been good so far, so it was just unfortunate that Boracay had to be closed,” she said.

While Bocanegra was unable to give the exact amount of revenue losses from the six-month closure of the island, she admitted, “there were a lot of cancellations. We have encouraged them to rebook.” She underscored though, “confidence in Boracay is still very high; weddings in 2019 is good for us.”

Yet, most of their guests who opted to rebook their vacations have pushed these to next year, “as no one is really sure if the island will, indeed, reopen after six months.”

Meanwhile, HSMA’s Ibarreta announced the “Great Room Sale” to be held on May 30 and 31 at the Glorietta 3 Activity Center, Makati City, which will offer travel junkies “discounts of up to 60 percent to 70 percent on hotel and resort rooms, plus a free upgrade to the next room category or suite.”

Participating establishments are: Ace Suites, Astoria Hotels and Resort, Azalea Hotels and Residences, Bayleaf Hotels, Best Western Hotel, Bluewater Resorts, Conrad Hotels, Golden Phoenix, Island Cove, Seda Hotels, and many more. Entrance to the event is free.

HSMA is the Philippines’s premier organization of hotels and resorts, which provides hotel sales and marketing professionals with tools, insights and expertise to continually grow their brand and remain relevant in the dynamic tourism industry. Established in 1979 at an informal gathering of directors of sales and marketing of top Metro Manila hotels, the group counts over 120 hotels and resorts in the country as member-partners.

DOLE. . .

Continued from A1

The storm devastated many parts of the Visayas and initially affected over 25,000 workers. The closure of Boracay Island from visitors yesterday (April 26) is also expected to affect over 36,000 employees.

Some of these displacements are temporary. In the case of Boracay Island, that means only six months, which is the prescribed period of closure for the island resort’s environmental rehabilitation is completed. For others, however, the closure means their joblessness is permanent.

Both incidents and other similar cases have left the local government, Department of Labor and Employment (DOLE) and other government agencies scrambling for the best way to provide alternative jobs and livelihood to displaced workers.

Based on its standard operating procedures, the government is required to provide emergency employment, livelihood programs and skills training to workers in disaster-stricken areas until things return to normal.

However, due to limited funding, only a few selected displaced workers are usually accommodated in each program.

Addressing the gap

EVEN with government intervention to provide employment facilitation services to displaced workers, it would still usually take some time before they could be hired again. This need has prompted the DOLE to revive a proposal to provide welfare benefits to displaced workers in the private sector, particularly a nationwide unemployment insurance (UI).

The DOLE’s Dominique R. Tutay explained a UI is basically financial aid given to employees who were “involuntarily displaced” to help them find new job opportunities.

“This will help them pay for their daily needs until they could get a new job,” Tutay told the BusinessMirror in an interview.

See “Dole,” A2