Businessmirror december 19, 2016

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Monday, December 19, 2016 Vol. 12 No. 68

‘Regional trade pacts more beneficial to PHL’

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fter President Duterte thumbed down the US-led TransPacific Partnership (TPP), the Department of Trade and Industry (DTI) said the Philippines will rely more on Asean and the China-led Regional Comprehensive Economic Partnership (RCEP) for trade and investments.

inside

women who give Sharing firsthand information

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EAR Lord, as we continue to wonder on the spirit realm, many people argue that we cannot know anything about “a place of blissful tranquility called Heaven” because no eyewitness has come from there to tell us about it. That line of reasoning, however, is incorrect. Jesus Christ existed in heaven. He said so quite openly to the religious leaders in the first century: “I have come down from heaven to do, not my own will, but the will of him who sent me.” So, Jesus was sharing firsthand information when he told his apostles. “In the house of my Father are many dwelling places”(John 6:38; 14:2). Jesus’s Father is God our Father. Amen.

LIVING WISDOM FOR EVERY DAY, REV. B. KELLY, C.P. SHARED BY LUISA M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life

Monday, December 19, 2016

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Women who give TOTA PULCHRA

Yes, mining is ‘PPP-able’ PPP Lead

@misscharlize

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ROSELIE SANTIAGO LICUP in Eddie Baddeo ALLEN CABS

Bulakeño held its 28th anniversary fund-raising party, called The Royal Ascot Ball, at the Rizal Ballroom at the Shangri-La Makati. In a message, the club’s “Ama ng Bulakan”, former ambassador Bienvenido Tantoco Sr., said: “Class’ is defined as stylish excellence, decency, graciousness, respectability and nobility. All these adjectives describe the heart of Club Bulakeño, which at its heart is all about giving and sharing. Club Bulakeño is a class act.”

The money raised by the group supports Bulacan State University scholars; the restoration of ancestral houses; donations of books and magazines to schools, a van, flat TVs, ultrasound machine and generator, 15 houses for Gawad-Kalinga Village in Angat, and relief goods to flood victims in Malolos,

MARC JACOBS’ RESORT 2017 COLLECTION BRIGHT neon colors, graphic animal prints and military influences are the cornerstone of the Marc Jacobs Resort 2017 collection.

Starting with a base color pallete of black and white, the muted color accents from the fall collection have been amped up, now with fluorescent pinks and blues.

Prints have a key role, with bold animal prints patched together with geometric stripes and checks. Heavy embellishment and embroidery, two classic Marc Jacobs elements, are featured on acid washed denim jackets, leather coats and iconic sweatshirts featuring a sequin MTV logo. Paradise-themed details, including rainbows, flamingos, stars and palm trees are seen in both pave charms and patches on military-inspired coats.

Sheer tulle a-line skirts are shown in bright pink and yellow patchwork, as well as in a white corseted cocktail dress embroidered with sequin flowers and bows. A playful take on volume continues from fall, now seen in ruffled sleeves on black and white prairie dresses and the oversized shoulders of animalprinted fur coats.

Ornate platform sandals, studded cowboy boots and knee-high boots in python, metallic leather and leopard print compliment the strong ready-to-wear offering. Handbags continue to be a focus, with printed patchwork shoulder bags with metal hardware chains and embellished backpacks providing the perfect finish to the Marc Jacobs Resort 2017 look.

Marc Jacobs can be found at Central Square in Bonifacio High Street Central, Greenbelt 5 and Shangri-La East Wing.

By Claudeth Mocon-Ciriaco

MILAGROS BERBOSO IMSON in Renee Salud and her own jewelry design HENRY FERRER

Baliuag and Hagonoy.

At the Ascot Ball, Club Bulakeño honored two of its exceptional members: Meycauayan Mayor Henry Villarica for Public Service and Milagros Berboso Imson for Business Entrepreneurship-Jewellery.

Milagros is the owner, proprietess and designer of KitSilver Jewellery based in Meycauayan City, Bulacan. Her citation reads: “Her successful business produces innovative and unique designs of jewelry, which she has kept and maintained in her home city, thus providing livelihood to the skilled jewelry workers in Meycauayan while continuing the city’s legacy as a bastion in the jewelry industry.”

She may be lowkey but Milagros’ exquisite works have adorned the superstar likes of Marian Rivera

and Mariah Carey. She herself fancies designers Eddie Baddeo and Renee Salud. At the Ascot Ball, she wore a black and white Salud confection with a fascinator, completing her look with a neckpiece and a gold clutch, both her own creations.

A proud probinsyana, Milagros’s mission is to help her kababayans have a decent way of earning a living.

“I have a livelihood program in my neighborhood.

I train anyone who wants to learn about jewelrymaking. It saddens me that our industry is losing skilled workers who choose to go to the Middle East for higher income. But with my workshops and trainings, the skills that participants acquire will give them the option to stay in the country,” the awardwinning, world-class jewelry designer said. ■

Correspondent

Train across flower fields threatens Chanel No. 5 perfume CHANEL warned on Friday that a planned train line through the prized flower fields near the southern French perfume-making area of Grasse will threaten the production of its famous Chanel No. 5 scent.

France’s SNCF rail network plans to build a controversial new highspeed route—and viaduct—to ease traffic congestion between Le Muy and Cannes along the busy French Riviera, one of Europe’s most visited areas.

In a statement, SNCF said the region is home to three of France’s biggest cities and simply “cannot afford to remain isolated in an increasingly interconnected European area.” But the perfume-maker is causing a stink.

Chanel issued a statement on Friday arguing that the train plans would comprise the production of their best-known scents.

“The construction of a viaduct and the regular passage of high-speed trains above the flower fields would force Chanel to stop supporting its artisanal activities in the region,” the

Life

BOTTLES of Chanel No. 5 perfume are displayed at the Metropolitan Museum of Art’s Costume Institute exhibit in New York. AP

statement read, referring to Grasse, one of the world’s most famous perfume-making sites.

Chanel No. 5—created in 1921 and made world-famous by blond bombshell Marilyn Monroe—relies on extracts of “Grasse” jasmine and May rose that are cultivated in and around Grasse. The scent is said to have remained unchanged for decades.

Chanel has been supporting a campaign to put Grasse’s perfume-

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making area on United Nations Educational, Scientific and Cultural Organization’s protected heritage list, and it successfully lobbied in 2009 to end a project to create a refuse center near the flower gardens in Pegomas and the Siagne Valley.

The luxury fashion house is lobbying French authorities to support an alternative route, using an old goods station in Cannes that’s owned by the SNCF. AP

westbrook dishes out career-high 22 assists

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BusinessMirror

Infantino defends use of video replays

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OKOHAMA, Japan—Fifa President Gianni Infantino has defended the use of video replays despite a shaky debut for the new system at the Club World Cup. The replay system allows referees to halt play to review footage of “game-changing decisions”, but its introduction has had a mixed reaction from players and coaches at the tournament, including Real Madrid star Cristiano Ronaldo.

“The results are extremely positive,” Infantino said. “Of course there are learnings, of course there are a few topics that we have to look into and discuss in more detail, but the result is extremely positive. Why? Because the referee has been able to take the right decision and justice and transparency have been brought to the game.”

Following Thursday’s match between Real Madrid and Club America, several players were skeptical about the system.

The system was used for the first time on Wednesday, when Kashima Antlers were awarded a penalty kick that led to the first goal in a 3-0 win

over Atletico Nacional.

Kashima midfielder Gaku Shibasaki sent in a free kick in the 31st minute, and teammate Daigo Nishi was then fouled inside the box by Atletico Nacional forward Orlando Berrio.

After receiving information about a missed incident from video assistant referee Danny Makkelie, Hungarian referee Viktor Kassai drew an imaginary square with his hands to indicate that he would conduct a review of the footage via a monitor on the sidelines. Kassai then pointed to the penalty spot, ruling from the replay that Nishi was tripped inside the penalty area by Berrio.

Shoma Doi took the penalty and scored Kashima’s first goal but there was some confusion as Nishi appeared to be offside.

“In the first game with Kashima, the referee didn’t see the situation and the video assistant referee saw a clear tackle so he interfered,” said Marco van Basten, the former Dutch international who is Fifa’s chief officer of technical development. “The referee watched

| Monday, deCeMber 19, 2016 mirror_sports@yahoo.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

the television and said ‘OK, you are right and I give a penalty.’ So in the end it took a few seconds too much but it was the right decision.”

In Thursday’s semifinal, Ronaldo scored an injury-time goal to help Madrid beat Club America, 2-0, and earn a spot in the final.

But after Ronaldo scored, referee Enrique Caceres appeared to ask for confirmation from his video assistant referee that there was no offside.

The Paraguayan official then decided that the goal stood without appearing to view a video himself.

“The television doesn’t work, huh?” Ronaldo was overheard saying with a laugh as he left the field.

Fifa officials attributed the confusion on the Ronaldo goal to a problem of communication between the officials.

“When Ronaldo scored the second goal it was a clear situation and there was no offside,” van Basten said. “So in the end it was good and the right decision was made. Only the communication between the video assistant referee and the referee was not optimum.” AP

HOPKINS, 51, BOWS OUT IN 8 RDS AGAINST SMITH

PUTIN AT PLAY

Russian President Vladimir Putin plays with an official match ball for the 2017 Fifa Confederations Cup received from Fifa President Gianni Infantino, after their meeting in the Kremlin in Moscow on Friday. Infantino is in Russia to take part in the draw for the Confederations Cup Russia 2017 in Kazan on November 26 next year. AP

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NGLEWOOD, California—Joe Smith Jr. stopped Bernard Hopkins 53 seconds into the eighth round of their World Boxing Council international light-heavyweight title fight last Saturday night.

Smith used a six-punch combination to send Hopkins through the ropes and on to the floor, effectively ending the 51-year-old’s 28-year boxing career.

Hopkins had 20 seconds to return to the ring but was unable to stand without pain and the injury incurred forced a technical knockout. Smith successfully defended his title.

Hopkins (56-8-2) was looking to wrap up his career with one last showing of defensive-minded boxing in front of an enthusiastic, star-studded crowd at the Forum. Instead, he finished in the same manner he started, with a loss.

Wearing his old Executioner shorts as a throwback to his earlier fighting days, Hopkins looked his age early as Smith (23-1, 19 KOs) was the aggressor to start. Hopkins regained some footing in the fifth and sixth rounds but Smith gained momentum and took it with him through the eighth, when he pummeled Hopkins in a corner and sent him through the ropes.

In his prime, Hopkins won a record 20 consecutive middleweight title fights. He became the oldest-ever champion when he defended his light-heavyweight belt at 49. However, Hopkins hadn’t fought in more than two years, losing to Sergey Kovalev on November 8, 2014, in his last bout.

Oleksandr Usyk (11-0), a 2016 Olympic heavyweight gold medalist out of Ukraine, successfully defended his World Boxing Organization cruiserweight title with a knockout of Thabiso Mchunu (17-3) with a knockout in the ninth round, his 10th. AP

IT’S the end of Bernard Hopkins’s 28year career.

By Cliff Brunt

The Associated Press

KLAHOMA CITY—Russell Westbrook had a career-high 22 assists in his 50th career triple-double to lead the Oklahoma City Thunder to a 114-101 victory over the Phoenix Suns in the National Basketball Association (NBA) on Saturday.

“My teammates did a great job of spacing, catching and finishing, making some shots,” he said. “My job is to be able to find those guys. The ball is in my hands a lot.”

Westbrook also scored 26 points and grabbed 11 rebounds in his 13th triple-double of the season. He had gone three games without one, yet the league’s leading scorer continues to average double figures in points, rebounds and assists.

Westbrook set up his teammates for much of the night, but he also showed why he averages more than 30 points per game. He scored 17 points on five-for-nine shooting in the third quarter to help the Thunder push their lead out to 20 points.

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RUSSEL WESTBROOK claims 50th career triple-double as the Thunder top the Suns. AP

WESTBROOK DISHES OUT CAREER-HIGH 22 ASSISTS

“As the game goes on, I read and kind of see what’s open,” he said. “And I can go back to different things that I see that’s open and try to find ways to be assertive and when not to be. That’s just something I’ve learned over the years.”

Steven Adams had 19 points and seven rebounds and Enes Kanter added 12 points for Oklahoma City, which had dropped two in a row. Thunder guard Victor Oladipo, the team’s No. 2 scorer for the season, missed his third straight game with a right wrist sprain.

Devin Booker scored 31 points for the Suns, who have lost six of eight.

The Thunder led 54-39 at halftime. Westbrook had 12 assists before the break, a Thunder record for a half.

Phoenix’s first-half scoring total matched the lowest allowed by the Thunder in a half all season.

It took Westbrook a while to get to double figures in points—he finally got there on a free throw with 8:41 left in the third quarter. He was stuck on nine rebounds when he went to the bench with 2:35 left in the third.

He reentered the game with 8:44 to play and he got his 10th rebound almost immediately upon his return.

“He is putting up phenomenal numbers,” Suns center

Tyson Chandler said. “I think it really just comes down to heart, passion and will. Every second, he is going full speed, giving 100 percent. He is just putting his will into the game.”

LeBron James, meanwhile, scored 16 of his 26 points in the fourth quarter, Kyrie Irving matched a career high with 12 assists, Kevin Love scored 27 with 17 rebounds and Cleveland finally put away Los Angeles in the fourth quarter, beating the young Lakers, 119-108, on Saturday night.

The Cavs were back at full strength after Coach Tyronn Lue left James, Love and Irving behind earlier this week for a game in Memphis, a decision that sparked some criticism as fans were denied a chance to see the three stars and Cleveland lost.

Irving, who complained of tired legs before a game last week, looked more like himself in his first game since December 10, finishing with 21 points as the Cavs improved to 19-6.

“It was just a needed rest for me,” said Irving, who didn’t get a break after Cleveland won the NBA title in June because he played for the US Olympic team. “For me, it’s just about being smart and not running into that

wall completely. I’m able to push through anything and my mind commands my body at the same time, it’s still about being smart.”

James, Irving and Love combined for 74 points, 30 rebounds and 25 assists.

James took over in the fourth and needs just two points to move past Moses Malone (27,409) for eighth place on the career scoring list.

Nick Young made eight three-pointers and scored a season-high 32 for the Lakers, who were a headache for the defending NBA champions all night. The Lakers were still within 110-105 when James hit a three-pointer in transition as the Cavs closed with a 10-3 run.

“Even though we lost, I liked the way we played and what we did,” said Julius Randle, who added 16 points.

“They’re a championship team, and we were right there with them until the end.”

In Atlanta Marvin Williams and Marco Belinelli each scored 19 points as Charlotte snapped a four-game losing streak by beating the Hawks, 107-99.

Kemba Walker had 18 points and 10 assists for Charlotte, which grabbed control with a big second

quarter. Cody Zeller finished with 16 points and 11 rebounds.

Tim Hardaway Jr. had 21 points for Atlanta and Paul Millsap scored 14 of his 20 points in the third quarter.

Dwight Howard grabbed a season-high 23 rebounds, three shy of his career best.

The Hawks have lost five of six at home and 12 of 16 overall, a freefall since starting the season 9-2 and tying for the Eastern Conference lead.

In Michigan Paul George scored 26 points and Jeff Teague added 19, helping Indiana to the 105-90 road win.

The Pacers had six players score in double figures and shot 48 percent from the field while stopping a two-game slide. Glenn Robinson III had 12 points and 12 rebounds, and Thaddeus Young also scored 12 points on six-for-eight shooting.

Kentavious Caldwell-Pope had 20 points for Detroit and Reggie Jackson finished with 19 points and 10 assists. Tobias Harris added 13 points and Andre Drummond grabbed 15 rebounds.

The Pistons shot 38 percent from the field in their third loss in four games.

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Part One

EX remains the elephant in the bedroom for many Filipino households.

And for health officials, avoiding the topic is alarming, amid the growing number of young Filipinos infected by the human immunodeficiency virus (HIV) or afflicted by the Acquired Immunodeficiency Syndrome (Aids).

During the World Aids Day commemoration on December 1, Health Secretary Paulyn Jean Rosell-Ubial admitted there are a growing number of persons in the country struggling with HIV/Aids, based on the statistics gathered by the Department of Health (DOH).

“We cannot deny that [statistics],” Ubial said, as she and the World Health Organization (WHO) were one in calling on parents to help educate children on safe sex.

The HIV/Aids and Anti-Retroviral Therapy Registry of the Philippines Continued on A2

PESO exchange rates n US 49.9220

Alberto C. Agra

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an mining be pursued through public-private partnerships (PPP)? What laws permit mining PPPs? Who can be the government implementing agencies? Are the build-operatetransfer (BOT) law and joint-venture guidelines issued by the National Economic and Development Authority (JV Guidelines) relevant?

Mining is principally governed by the Philippine Mining Act and the Small-Scale Mining Act. Mining entails the extraction or removal of minerals or all naturally occurring inorganic substance in solid, gas, liquid, or any intermediate state.

See “Trade pacts,” A2

PHL sex stance in focus as AIDS cases rise

MISS CHARLIZE

ODAY’S version of the “women who lunch” has evolved into the “women who give”. Still high-powered with impressive business portfolios, they are also visible in the party circuit, especially society soirees that raise funds for the less fortunate. These women share their blessings, and do so generously, at extravagant events big on giving.

At the 2016 Manila’s Best Dressed (MBD) Ball at The Manila Hotel, a special tribute by his clients in the form of a fashion parade of red couture dresses was held in honor of recently departed designer Goulee Gorospe. This was followed by an endless stream of this year’s best-dressed awardees clad in their finest gowns by their favorite designers.

One standout awardee is the sophisticated Roselie Santiago Licup, owner of Yasubei Bar and Restaurant. She is this year’s MBD academe ambassador, recognized for her contributions to the scholarship programs of the MBD group. This year’s funds, however, are earmarked for the government’s “war on drugs”.

To date, six of Roselie’s scholars have graduated from the Romblon State University. Since 1986, she has been involved with the Responsible Human Society, which helps the indigent children of Candelaria, Quezon, by way of fun-filled activities usually held during the Christmas season. She is also one of the sponsors of the 10th Journey Society, a nonstock, nonprofit organization helping special children.

She may be deeply involved in her restaurant’s operations and philanthropy work, but Roselie also relishes dressing up for formal affairs. “I love clothes that fit well and are made with great attention to detail. Of course, a good outfit has to be comfortable.

I don’t prefer a particular style because styles keep on evolving and changing. I think that’s what makes fashion really interesting. Designers just keep on inventing and reinventing styles and the wearer always has a lot of options to choose from,” she muses.

At the event, Roselie wore a Baddeo denim gown, perfect for an empowered woman with sense, style and substance. It’s a corset top with see-through scooped neckline intricately embellished with Swarovski crystals and a semibias skirt embroidered with heavy appliqués in pink, yellow gold and magenta traced with rhinestones, sequins, Swarovskis and aligned with gold trimmings.

Meanwhile, the sociocivic organization Club

Trade Secretary Ramon M. Lopez said over the weekend that the Asean market and the proposed regional trade pact stand to provide the Philippines a “bigger advantage”.

“The government wants to build on what we have in the region, the Asean and the RCEP, which are more beneficial for us.

BMReports

ALL ACCESS: THE MEN OF THE MMFF D3

BusinessMirror

LOPEZ: “The RCEP accounts for more than 50 percent of our trade.”

A Filipino health worker shows condoms that are given for free to the public by the Department of Health on December 8. A human-rights watchdog said the Philippines is facing one of the fastest-growing epidemics of HIV in the Asia Pacific, fueled by government policies that restrict intervention, including access to condoms by men who have sex with men. AP

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Continued on A15

GDP growth in Q4 to hit 6.9%–Neda

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By Cai U. Ordinario

@cuo_bm

he country’s GDP growth in the fourth quarter could be slower at 6.9 percent, due to external risks and the anemic economic growth of the country’s major trading partners, the National Economic and Development Authority (Neda) said.

Socioeconomic Planning Secretary Ernesto M. Pernia recently told reporters that the slowdown in the growth of the US and China will affect Philippine The GDP growth of the GDP in the October-toPhilippines in the third December period. “[Growth] maybe at quarter 6.9 percent because the first three quarters is [7 percent]. [This] will be based on the same drivers [such as strong consumption],” said Pernia, who is also the director general of the Neda.

Earlier, Pernia said the country would see a significant uptick in consumption spending in the fourth quarter, particularly during the holidays. This will be fueled mainly by overseas Filipino worker remittances to their families.

Remittances account for 10 percent of the country’s

7.1%

See “GDP,” A16

n japan 0.4226 n UK 62.0481 n HK 6.4333 n CHINA 7.1853 n singapore 34.5888 n australia 36.7126 n EU 51.9988 n SAUDI arabia 13.3139

Source: BSP (16 December 2016 )

A2 Monday, December 19, 2016

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PHL sex stance in focus as AIDS cases rise Continued from A1

(HARP) showed that from January to October this year, 7,756 new HIV/AIDS cases were reported. This figure brings the total number of reported cases to 38,114 from 1984 to 2016.

More than half of the affected individuals recorded this year (19,578) belong to the 25-year-old to 34-year-old age group, while 28 percent (10,279) were aged 15 years old to 24 years old.

The National Capital Region (NCR) has the most number of reported cases at 1,275 (41 percent).

Region 4A follows the NCR with 294 (9 percent) cases, Region 7 with 277 (9 percent) and Region 11 with 181 (6 percent). About 617 cases, or 20 percent of the reported cases, represented the other regions.

Birds, bees

THE first case of HIV infection in the Philippines was reported in 1984, a HARP report said. From January 1984 to February 2016, there has been 31,911 HIV Ab sero-positive cases reported to the HARP, according to the DOH.

Trade pacts. . .

Continued from A1

The RCEP accounts for more than 50 percent of our trade,” Lopez told the BusinessMirror. Lopez made the statement after President Duterte rejected the TPP, saying the trade pact could restrict Filipinos’ access to affordable medicine.

“I am glad that [President-elect Donald] Trump said he will throw

According to health officials’ report, 92 percent (29,425) of the reported cases for the past 32 years involved males.

“From January 1984 to February 2016, MSM [males who have sex with males] was the predominant [23,828, or 81 percent] mode of transmission among males, followed by male-female sex [3,931, or 13 percent] and sharing of infected needles [1,325, or 4 percent].”

To address the problem about the rising number of HIV/AIDS cases involving the youth, Ubial said the information campaign must go down to the household and community level.

“As soon as the child asks you a question, be honest, say it outright, [don’t] talk about the bees and the birds,” she said.

“You talk to the child as if you’re discussing any topic under the sun.

Be factual, huwag nang paligoy-ligoy at ’wag na yung analogy,” Ubial said.

“I think that has been proven in other many countries that that’s the way to inform the youth.”

While the DOH promotes abstinence among youths, the reality that risky practice, such as unpro-

tected sex is prevalent cannot be escaped and must be addressed.

“One of the things that we did not want to happen is an increase in suicide rate. Or an increase in the threshold or an increase in hiding...because of positive results,” Ubial explained.

AS one of the preventive measures to fight HIV/AIDS, the DOH plans to distribute condoms in school.

The Department of Education (DepEd) however, is not keen to the idea.

“While the [DepEd] recognizes the need to promptly address the surging spread of HIV/AIDS among the youth, the [DepEd] will have to hold thorough and careful discussions with the [DOH] regarding the health agency’s plan to distribute condoms in schools next year,” Education Secretary Leonor MagtolisBriones said.

She added that through the series of discourse, the DepEd will want to “identify and study whether this move to arrest the epidemic is appropriate to cover schools and learning institutions and, if not,

what are other measures that we can explore without compromising, first, the parents’ right and responsibility to educate their children against the dangers of engaging in premarital sex.”

Second, Briones noted the State’s mandate to protect minors from any form of abuse.

The DepEd will also have to look into how and why, despite progressive mindset in other countries, this approach is not implemented by all, according to the former National Treasurer.

“The DepEd, for its part, continues to uphold the values rooted in the country’s culture and how these remain relevant amid the changing times, and to enrich sex education within the frameworks of human rights, safety and well-being of learners through age-appropriate and developmental reproductive health education as early as Grade 1,” Briones said.

For her part, United Nations Aids (Unaids) Country Coordinator Teresita Marie Bagasao said there is a need to address the realities on HIV/Aids.

“Sex is happening and we can-

not deny it. Therefore, rather than hide behind those figures, we need to address the realities, as well as the negative consequences of unprotected sex, which would include HIV infection,” Bagasao said.

World Health Organization (WHO) Representative Gundo Weiler echoed Bagasao’s sentiments by saying, “It is important to redouble our efforts in supporting the communities [in] their prevention efforts and to their right to protect themselves.”

UN Secretary-General Ban Kimoon has issue a strong call to “recommit, together, to realizing our vision of a world free of AIDS.” Although there is something to take pride to 35 years since the emergence of Aids, Ban said that the international community should continue to focus and achieve the goal to end the epidemic by 2030.

in the garbage can the TPP. This will create a lot of problems for us here in Asia,” Duterte said during his pre-departure news briefing last week.

“This is because we are promoting generics. The Philippines is a poor nation and we can buy the medicines at cost in India and Pakistan, yet if you’re a member of the TPP you still have to go to the branded ones from multinational corporations, which are very ex-

pensive,” he added.

This concern was already raised by the DTI in 2014, when the previous administration had proclaimed its interest to join the US-led TPP. In a previous interview, Trade Undersecretary Ceferino S. Rodolfo said there are provisions in the TPP agreement which allow the patenting of new processes in productmaking, including medicine.

These provisions contrast those in the Philippine Intellectual Prop-

erty Code, which prevent the same processes from being patented for the purpose of promoting new drugs and making these accessible to the poor. Asked if the Philippines is completely ruling out membership in the TPP, Lopez said, “It’s not yet ratified by the US, let’s be silent on that.”

The TPP has been a bone of contention in the recent US Presidential elections, with both President-elect Donald Trump and Democratic can-

didate Hillary Clinton expressing aversion to the trade deal.

The trade agreement has yet to be ratified by the US Congress.

The Aquino administration had expressed full support for joining the TPP, saying the trade pact would expand the Philippines’s access to the markets of its 12-member bloc, which accounts for 30 percent of global trade.

A study conducted under the United States Agency for Interna-

Condoms, schools

ABC

RADIO Veritas President Anton Pascual said that instead of condoms, it is better to introduce the “ABC” to fight HIV/AIDS. The Catholic priest said the ABC stands for: “[A] Abstinence from sex outside marriage, [B] being faithful

to one another when married and C, conversion of heart to the value of love and sacredness of sex as a gift of God in marriage.”

The “ABC,” according to Pascual, was proven effective in Africa wherein one male or female dies every 10 seconds, despite the 2.3 billion condoms that were distributed from 1998.

The Catholic Bishops’ Conference of the Philippines-Episcopal Commission on Health Care (CBCPECHC) has expressed alarm over the increasing number of cases of HIV/AIDs infections.

Fr. Dan Cancino, a physician and the executive secretary of CBCPECHC, even dubbed it as “Youth epidemic” and called out all sectors to join together and help fight to stop the spread of HIV in the country.

Cancico also appealed to the government, non-governmental organizations, private sector and the Church to unite to fight against HIV and to end the AIDS epidemic to save the future generation.

He cited that among the reasons HIV is acquired is because of premarital sex and lack of knowledge about the dreaded disease.

tional Development TRADE Project noted that TPP countries account for 41 percent of Philippine total trade in 2014.

The Philippines is currently negotiating with other Asean countries for the RCEP. Lopez said options have been “narrowed” in terms of a common set services and goods to be included in the trade pact when Asean Trade Ministers met to discuss RCEP in November.

To be continued

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Monday, December 19, 2016 A3

PAL launches Cebu-SG flights T

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Department of Tourism (DOT) lauded the recent launch of direct flights between Cebu and Singapore by Philippine Airlines (PAL).

The new route was formally launched on December 16 with Tourism Secretary Wanda Corazon T. Teo leading the sendoff ceremony for the maiden f light to the Lion City at the Mactan-Cebu International Airport (MCIA). PAL President and Chief Operating Officer Jaime J. Bautista and other airline and airport officials joined Teo for the ceremony.

“The lifeblood of Philippine tourism is connectivity. We are an archipelago and most of the tourists can reach us only by air,” Teo said at the launch of the new route. “That is why I consider initiatives like this as critical to the continuing development of our tourism market. We are opening more gateways and with it, wider access for visitors.”

T he fol low ing day, a f u l ly booked PAL PR518 left Singapore’s Changi International Air-

port for MCIA at 2:45 a.m., with mostly Filipinos onboard, who were going home for the Christmas holiday. The flight followed President Duterte’s departure for Manila after his two-day state visit to the city state, according to a news statement from the DOT. For his part, Philippine Ambassador to Singapore Antonio Morales expressed hope that the new route “will entice Singaporean citizens and permanent residents to visit the Philippines,” as he described Duterte as an “effective tourism ambassador” with a strong following and appeal to many Singaporeans, including the city’s expatriate community.

The four-times weekly service (Monday, Wednesday, Friday and Sunday) via PR517 departs Cebu at 10 p.m. and arrives in Singapore at 1:45 a.m. the following day.

The return service via PR518 also flies four times a week (Monday,

Tuesday, Thursday and Saturday), leaving Singapore at 2:45 a.m. and landing in Cebu at 6:40 a.m., according to PAL. This is in addition to PAL’s regular Manila-to-Singapore route, which flies four times, daily.

Data from the DOT showed visitor arrivals from Singapore dipped by almost 2 percent to 133,431 from January to September 2016. Singapore tourists accounted for only 3 percent of tota l v isitor ar r iva ls for the period.

“Cebu is a premier city of the Visayas. Its continuing fame as a destination is unquestioned,” Teo said. “We now have the chance to make this not only a main tourist attraction—but also a major hub from which travelers can hop to as many destinations in the Visayas as possible.”

She also expressed confidence that the new Cebu-Singapore route would jump-start more local and international routes f ly ing out of second a r y a nd tertiary hubs of PAL. Aside from the Cebu-Singapore flights, PAL also launched this year a Cebu-Los Angeles direct flight, Cebu-Caticlan and CebuClark (via Caticlan). By the first quarter of 2017, PAL will also be flying from Clark to Davao and Cagayan, and to Incheon, South Korea.

In a separate news statement,

This December 16 photo shows passengers of Philippine Airlines Flight PR518, which left the Mactan-Cebu International Airport (MCIA) for Singapore’s Changi International Airport. According to Tourism Secretary Wanda Corazon T. Teo, the flight provides the chance to make Cebu “not only a main tourist attraction—but also a major hub from which travelers can hop to as many destinations in the Visayas as possible.” Photo courtesy Department of Tourism

PAL’s Bautista said “the Cebu hub allows passengers from other parts of the Visayas and Mindanao to hop to the Queen City of the South and fly direct to Singapore without having to fly to Manila.

Passengers will also get to experience our trademark service with the Heart of the Filipino, on top of the modern amenities of our 199-seater A321s.”

Aside from PAL, other carriers

that fly between Cebu and Singapore are Air Asia, Silk Air, Cebu Pacific and Tiger Airways. PAL’s new route brings the total number of flights from the MCIA to Changi to 31.

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Editor: Max V. de Leon • Monday, December 19, 2016 A5

Indonesian C-130 plane crashes, killing 13

J

AKARTA, Indonesia—An Indonesian military Hercules C-130 transport plane crashed on Sunday in the easternmost province of Papua, killing all 13 people onboard.

Air force chief of staff Agus Supriatna told MetroTV the plane was carrying 12 tons of food supplies and cement from Timika to Wamena, a distance of about 200 kilometers (125 miles), when it crashed just minutes before its scheduled landing.

He said bad weather was suspected to be the cause of the crash. The plane was carrying three pilots and 10 other personnel.

TV footage showed rescuers and locals had reached the wreckage of the plane and were bringing out the victims.

The plane took off from Timika at 5:35 a.m. and crashed about four minutes before it was scheduled to land in Wamena, the capital of the mountainous district of Jayawijaya.

It was the third serious air accident in Indonesia in less than a month. On November 24 a Bell 412 EP helicopter from the Indonesian army crashed in the Indonesian part of Borneo island, killing three. A week later a police plane with 13 people aboard crashed into the sea on the way to the island of Batam, near Singapore.

Indonesia, a sprawling archipelago of more than 250 million people, has been plagued by transportation accidents in recent years, from plane and train crashes to ferry sinkings.

The military, which suffers from low funding, has also regularly suffered airplane and helicopter crashes.

In July last year, an air force Hercules crashed into a neighborhood of Medan, Indonesia’s third largest city, killing more than 140 people, including military personnel, family members traveling with them and people on the ground. AP

Indonesian police officers carry a body bag containing the plane parts and personal belongings of the passengers of a police plane that is believed to have crashed in the waters off the southeast coast of Sumatra, at Telaga Punggur port in Batam, Indonesia, on December 4. Indonesian rescuers on Sunday recovered body parts in the sea, where a police plane with 13 people aboard is believed to have crashed the previous day. AP

A6

Banking&Finance BusinessMirror

Monday, December 19, 2016 • Editor: Jun B. Vallecera

news@businessmirror.com.ph

BIR collections up 15% to ₧157.3B in Nov

T

By Rea Cu

@ReaCuBM

he Bureau of Internal Revenue (BIR) posted a 15.34-percent increase in revenue collections in November to P157.3 billion, against P136.37 billion during the same month last year.

In a report to Finance Secretary Carlos G. Dominguez III, the BIR said: “The collection increase was attributed mainly to the agency’s streamlined processes that have improved efficiency in monitoring and collecting taxes, particularly the reduction of documentary requirements for one-time transactions [ONETT] and monitoring of process workflow of the agency’s offices.”

The agency’s total collections from

January to November has reached P1.454 trillion, which is P127.41 billion higher than collections during the same period last year. This shows a 9.6-percent increase in its year-to-year collection, according to the BIR report.

In earlier reports, the BIR and the Philippine Charity Sweepstakes Office (PCSO) is set to iron out details of the latter’s settlement of its payment deficiency on

Documentary Stamp Taxes (DST) from 2006 to 2014.

In August 2016 the PCSO remitted to BIR P1.34 billion as part of its payment for the 2008 deficiency in DST on its Small Town Lottery (STL) operations.

The national government, through the BIR, is expected to raise an additional P3.8 billion from PCSO’s settlement of P2.8 billion by December 31, 2016, and P1 billion on June 30, 2017.

PCSO Chairman Jose Jorge E. Corpuz and General Manager Alexander Balutan will discuss on Monday with Internal Revenue Commissioner Caesar R. Dulay the details of the settlement of PCSO’s deficiency documentary stamp taxes for the period 2006-2014.

“The BIR-approved tax settlement is part of the agency’s good housekeeping and intended to support President Duterte’s socioeconomic agenda for the poorest of the poor and the marginalized,” Corpuz said.

SSS seeks measures to extend fund’s life T

he Social Security System (SSS) is currently seeking remedial measures that will help extend the fund’s life after its commitment to give P2,000 pension hike for memberpensioners.

SSS President and CEO Emmanuel F. Dooc said the state-run pension fund is eyeing to increase the ceiling on its salary contribution, in the coming years, explaining that a small cap only generates a small amount from contributions as opposed to when the amount of salary is higher.

“Yes, [the SSS can sustain] but we will be introducing remedial measures,” Dooc told financial reporters in a recent interview.

Citing as example, an 11-percent contribution from a salary of P16,000 is the current ceiling for the SSS salary contribution, which only generates a small amount for the fund as opposed to that of the Government Service Insurance System (GSIS) where there is no cap for salary contributions.

“For example, for the GSIS there is no cap on the salary, so if you earn P50,000 it will be 11 percent of P50,000. For the SSS, there is a cap, which is a maximum of only P16,000. So only 11 percent of P16,000 is the contribution,” he said.

Dooc added the proposed increased cap on salary contributions will start from P20,000 to

P25,000, and then to P30,000 as the maximum ceiling, over the years.

“From P16,000 it will go up to P20,000, maximum is P30,000. So P20,000, P25,000, P30,000. If you are earning P14,000, contributions will not add up, but if your pay is above P16,000 it will add up. And then hopefully we can increase the contribution sum,” Dooc said.

The proposed increases on the salary contributions for the state-run pension fund will need approval from the President before it is implemented. And the SSS has already submitted a proposal regarding the salary cap on contributions both at the Senate through Sen. Richard J. Gordon and at the House of Representatives through Speaker Pantaleon D. Alvarez. Rea Cu

Case clippings

By Justice S J Ranada Jr.

RAPE–failure of victim to shout for help Fact that rape victim did not shout for help does not diminish her credibility.

There is no standard form of reaction, much more a minor, when confronted with a horrifying experience such as a sexual assault. The actions of children who have undergone traumatic experience should not be judged by the norms of behavior expected from adults. People react differently to emotional stress and rape victims are no different.

People v Villalon 09 Nov 2016

GR 215198 Peralta, J.

BSP seen adjusting this year’s foreign exchange assumption

By Bianca Cuaresma @BcuaresmaBM

T

he Bangko Sentral ng Pilipinas (BSP) is set to adjust its foreign-exchange assumption for this year as the local currency recently plummeted out of the target range following political and economic developments.

Diwa C. Guinigundo, BSP deputy governor for the Monetary Stability Sector, said the direction of the forex assumption adjustments is likely to move toward the more prudent side.

“The revised forex assumption will be announced by the DBCC [Development Budget Coordination Committee] on Tuesday. Given the year to date average of the peso against the US dollar, we have to be more conservative than the past assumption on exchange rate,” Guinigundo told reporters.

The current government projection is for the peso to trade within P45 to P48 to a dollar under the economic assessments made in the middle of this year.

However, toward the end of 2016, the peso—along with other regional currencies—plummeted to its lowest since the tail end of the global financial crisis as markets are rattled by local and international developments during the year.

The local currency ended the previous week at P49.20 to a dollar, with a total traded volume of $347.2 million. In November the peso neared the P50 territory and has hit several eight-year lows.

Earlier, central bank officials assured the public that the weaker peso seen to-

ward the end of the year will not derail the overall inflation path.

BSP Managing Director for the Monetary Policy Sub-Sector Francisco Dakila Jr. said, despite the peso’s recent weakness, its impact to the country’s inflation has gone down through the years.

“What we’ve seen is the pass-through from the peso to inflation has gone down considerably through the years with inflation targeting,” Dakila said.

“So the central bank does not have to really worry about the implications of recent developments on the peso on achievement of the inflation target range. The prospect is that for both 2017 to 2018, inflation will revert close to the inflation target band,” he added.

Dakila also said the depreciating peso has “countervailing effects” that would benefit the local economy.

“It actually supports the exports sector. Second, we do have sizeable number of families that are dependent on dollar remittances. That will be a support to consumption of [overseas Filipino] families,” he said.

In the most recent data from the central bank, the BSP said the weaker value of the peso pushed Filipino migrant workers to send fewer dollars in October this year, with the month’s total remittance flows retreating for the third month this year.

Money sent home by overseas Filipino workers declined by three percent in October this year to hit $2.1 million, coming down from the $2.38 million posted in September.

Perspectives

Global tax risks bring increased challenges

I

t seems that every year industry experts say the taxation of the insurance industry is going through unprecedented change. Whether the change is unprecedented can be debated, but there can be no doubt that change is accelerating in this digital age and presenting new tax risk management challenges. Insurance companies must not only manage the current tax risk, but anticipate legislative changes, tax audits, new financial disclosure requirements, reputational concerns, documentation and data management risks.

Identifying tax risk and managing it is of increasing importance to all business professionals, including those outside the traditional tax function. The board, senior management, shareholders, customers, regulators and governing bodies are all trying to understand what an insurance group’s tax risks are and how such risks are being managed. There is clearly an opportunity to improve coordination and collaboration among the various constituents of an organization with respect to defining, managing and communicating tax risk information.

With the backdrop of requirements for greater controls and disclosures, insurance companies face increasing challenges in managing their global tax risks and reporting requirements.

The tax risks include failure to comply with tax laws, transactions generating unintended tax consequences, inaccurate financial reporting and related disclosures, and tax authorities changing their approach with increased risks for multiple taxation of items from various jurisdictions. Furthermore, with increased regulatory requirements, insurance companies need to accurately model their taxes under a variety of scenarios.

In response to these developments and to better understand a company’s

global tax position, the Organisation for Economic Co-operation and Development (OECD) undertook a major study on Base Erosion and Profit Shifting (BEPS) designed to give taxing authorities the tools to combat inappropriate tax planning strategies and increase the transparency of groups’ global tax affairs.

Base erosion and profit shifting

The OECD BEPS reports highlight many of the challenges that insurance companies face in managing their global taxes. The BEPS reports include actions on controlled foreign corporation rules, interest deductions, treaty benefits, permanent establishments, transfer pricing and mandatory disclosures.

Insurance companies are already having to comply with new requirements such as country by country reporting, diverted profits tax rules in the UK and interest deduction limitations in a variety of countries.

The BEPS reports particularly highlight the challenges presented by the digital economy, noting that both it and its business models present some key features that are potentially relevant from a tax perspective, these include mobility, reliance on data, network effects, the spread of multisided business models, a tendency toward monopoly or oligopoly and volatility. These have some relevance to the insurance industry, but additional issues, such as capital risk, and their impact on profit allocations, create unique issues for the insurance industry.

The BEPS reports note that while the digital economy models do not generate unique BEPS issues, some of its features exacerbate risks.

In this chapter we seek to explain some of these risks that present challenges for an insurance company con-

ducting business in the digital age.

Permanent establishment

Under pre-BEPS rules, an insurance company that did not have an office or other fixed place of business in a country was not considered to have a taxable presence in that country unless it had agents that concluded contracts there.

Thus, a company could have agents selling insurance in a country, as long as the insurance contracts were not concluded there. With the Internet, it is not difficult to sell insurance in one country and submit the application to a company in another country for approval and issuance.

Now a company must consider if an agent “habitually plays the principal role leading to the conclusion of contracts that are routinely concluded without material modification”. This new standard is both broader and more subjective than the former standard, potentially increasing the number of tax jurisdictions in which taxpayers are potentially exposed to taxation.

Also a foreign insurance company can no longer rely on the independent agent exception to conclude that an agent’s activities do not give rise to a permanent establishment in the agent’s jurisdiction, where the agent acts exclusively or almost exclusively on behalf of one or more enterprises to which it is closely related.

Under BEPS, an agent is considered to be closely related to the foreign insurance company on behalf of which it is acting, if, based on the facts and circumstances, one has control of the other, or both are under common control. In addition, a person will be considered to be closely related to an enterprise if they are under common ownership control of greater than 50 percent.

This narrowing of the independent agency exemption could create new per-

manent establishments for insurance companies. For example, a company reinsuring business from a related company in a different country will need to determine if the related company could be a dependent agent. The risk is that in certain circumstances merely reinsuring business from a foreign affiliate could give the reinsurer a new permanent establishment.

Transfer pricing

Cross-border insurance must appropriately allocate taxable profits between countries. Unfortunately, the determination of what is “appropriate” is changing. BEPS includes revised guidelines intended to ensure that the allocation of taxable profits is based on the contribution that the individual companies make to a transaction.

Companies must look at the actual risks assumed, the functions performed and whether a transaction would be commercially rational if performed between unrelated companies. The BEPS reports include some helpful language regarding insurance business, but nonetheless brings new uncertainty to the appropriate transfer pricing of cross border insurance and reinsurance transactions.

Further guidance is expected on what arm’s length means for financial transactions, including reinsurance transactions.

Country-by-country reporting

Beginning in 2017, insurance companies will be required to report by country where they have income and pay taxes and where they have employees. This has the potential of highlighting situations where a group has large amounts of income in countries with relatively few employees. BEPS transfer pricing focuses on where people are adding value. This may be quite different from how highly regulated and capital intensive busi-

nesses like insurance and reinsurance earn income. The insurance industry has made this point with the OECD, but the country-by-country (CBYC) reporting rules were not modified to reflect their concerns. This could create tax risk if countries change their approach to taxing insurance companies based upon key factors in the CBYC report, such as location of their employees, as opposed to the traditional approach of taxing insurance companies based upon location of the capital and insurance risk.

Another concern is that the regulatory requirements for where employees sit within a group may not conform with the BEPS view of where profits should be attributed.

Controlled foreign company

The BEPS reports note the risk that taxpayers with a controlling interest in a foreign subsidiary could reduce the tax base of their country of residence and, in some cases, other countries by shifting income into a controlled foreign company (CFC). The reports note three ways in which insurance income earned by a CFC could be a concern: CFCs that are overcapitalized, reinsurance assumed from a cedant outside the CFC’s jurisdiction and related party insurance income.

The article was taken from KPMG’s publication entitled Global tax risks bring increased challenges. © 2016 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

For more information on KPMG in the Philippines, you may visit www.kpmg. com.ph.

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Banking&Finance BusinessMirror

Monday, December 19, 2016

A7

Venezuela extends use of 100-bolivar bill until January 2 following protests

C

ARACAS, Venezuela—Venezuela’s government on Saturday extended the use of its 100-bolivar bill until January 2, after its decision to pull the banknote out of circulation left the country largely without cash, and sparked protests and looting.

President Nicolas Maduro said the decision to put Venezuela’s most widely used note back in use came after the promised higher-denomination replacement bills were still unavailable because three planes transporting them were “victims of sabotage.” He did not give details of the alleged sabotage.

The “new logistics” of rolling out the banknotes, including the 500-bolivar bill, meant that their launch would have to wait, Maduro said in a televised address.

Venezuela is plagued by the world’s highest inflation, and Maduro made the surprise announcement that the 100-bolivar bill would be replaced a week ago. The note had been the country’s largest denomination but its value against the US dollar

has dropped to about 2 cents, down from 10 cents at the start of the year.

All week, Venezuelans waited in long lines to deposit their soonto-be-worthless 100-bolivar notes in banks. When the bill went out of circulation on Friday and the replacement bills had not yet arrived at banks or automated teller machines, people were forced to rely on credit cards or bank transfers, or to try to make purchases with bundles of hard-to-find smaller bills often worth less than a penny each.

Anger at having to deal with an economy even more paralyzed than usual exploded in social unrest.

“Our children are going hungry,” Lucrecia Morales said in Caracas.

“We are parents who earn money with the sweat off our brows. And

now they say it is worthless? We need a solution.”

Authorities said there were protests and looting on Friday and early Saturday in at least six cities, including Maracaibo, where the police put down looting near a bank building, and the eastern state of Bolivar, where mobs sacked several businesses. Young men waved their 100-bolivar bills in the air and chanted “they’re useless,” then turned and ran as the police fired tear-gas canisters. Dozens of people were arrested.

In Caracas people banged on pots and cursed the government’s apparent lack of planning. There was no cash to be seen changing hands on the street or inside shops.

On Saturday hundreds of government supporters and ruling party members dressed in red shirts marched in Caracas to back Maduro and protest the “economic war” against Venezuela.

In addition to putting the old currency back in circulation, Maduro said he would extend the closure of the border with Colombia and Brazil until January 2, 2017. He has said the move aims to thwart “mafias” who hoard bolivars, leading critics to mock the notion that gangsters would choose to keep their wealth in the world’s fastest-devaluing cur-

Members of the Venezuelan Militia sing the national anthem during a pro-government rally in Caracas, Venezuela, on Saturday. Venezuela’s President Nicolas Maduro takes part in the rally as the country to give a tribute to the hero Simon Bolivar, meanwhile, the country is on edge over his so-far failed plan to introduce larger-denominated bills to fight soaring inflation. AP Photo/Fernando Llano

rency. Only foot traffic for family visits will be allowed, he said. Despite the closure, dozens of Venezuelans knocked down barricades set up on

the bridge between Urena, Venezuela and Cucuta, Colombia to cross over and buy food. The currency chaos comes as the oil-rich nation strug-

gles with a contracting economy and empty store shelves. Venezuela has maintained strict currency controls since 2003. AP

A8

The World

Monday, December 19, 2016 • Editor: Lyn Resurreccion

BusinessMirror

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Trump’s pick for budget chief has urged big spending cuts

W

Rep. Mick Mulvaney (right), Republican-South Carolina, leaves Trump Tower in New York. AP

ASHINGTON—Republican Rep. Mick Mulvaney, President-elect Donald J. Trump’s choice as his budget director, is a fierce deficit hawk with a record of pushing deep spending cuts across the federal government to balance the budget.

The 49-year-old from South Carolina, just reelected to a fourth term, is a cofounder of the hard-right House Freedom Caucus that pushed former Speaker John Boehner, RepublicanOhio, from power.

As director of the White House Office of Management and Budget (OMB), Mulvaney would be responsible for Trump’s budget submissions to Congress. Those budgets are likely to address Trump’s campaign promises to repeal the Affordable Care Act, cut taxes broadly and boost spending on public works and other projects.

If confirmed by the Senate, Mulvaney would lead an office that coordinates federal regulations, putting him in charge of repeals

of Obama administration rules.

Trump has been critical of several of President Barack Obama’s executive orders, from those involving climate change and reining in Wall Street to protecting the children of immigrants who are in the United States illegally.

Strongly anti-establishment, Mulvaney has supported cuts beyond what House Republican leaders preferred and has refused to back deals to raise the government’s borrowing limit, more recently causing heartburn for current Speaker Paul Ryan, Republic-Wisconsin.

The nomination probably will soothe fiscal conservatives but could put Mulvaney at odds with Trump, who has pledged additional spending

$20T The estimated current debt of the US

for transportation, military and veterans’ health care without offering little details on how to pay for it.

Trump has previously suggested that the government should take on new debt for many of the spending projects because interest rates are so low.

In a statement, Trump commended Mulvaney’s strong voice in Congress who will get America’s fiscal house in order.

“Right now we are nearly $20 trillion in debt, but Mick is a very high-energy leader with deep convictions for how to responsibly manage our nation’s finances and save our country from drowning in red ink,” Trump said.

Mulvaney said he looked forward to working with Congress to create policies that will be “friendly to American workers and businesses.”

“The Trump administration will restore budgetary and fiscal sanity back in Washington after eight years of an out-of-control, tax and spend financial agenda,” he said.

House Democratic leader Nancy Pelosi of California called Mulvaney a “radical” who consistently voted to cut Medicare benefits. She noted that he was supporter of a government shutdown in 2013 and 2015 over spending that Republicans opposed for the health-care law and Planned Parenthood.

“We cannot have an OMB director who sees inflicting pain on working families as leverage for his radical agenda,” Pelosi said.

Mulvaney was elected in the 2010 tea party wave. He defeated Democratic Rep. John Spratt, who had been chairman of the House Budget Committee, by branding him as a big-spending liberal.

Mulvaney quickly came to oppose Boehner’s leadership before Boehner was pushed out in 2015. In 2013 Mulvaney declined to support Boehner’s reelection to the post. That year Mulvaney unsuccessfully pushed for amendments to reduce Pentagon funding and proposed broad acrossthe-board federal cuts, including for the military. He was an early backer of Trump during the presidential campaign, noting that the Republican billionaire had tapped into a populist sentiment dissatisfied with Washington.

“If you want to know, members of Congress, why you have Donald Trump, go look in the mirror, because we’ve overpromised and underdelivered for so long,” Mulvaney said in February.

Actually balancing the federal budget requires deeper spending cuts than the GOP-controlled Congress can probably deliver on, especially if Trump prevails on revenue-losing tax cuts and a big infrastructure package next year.

On Saturday Ryan praised Mulvaney as the “absolute right choice” for budget director. A law graduate from the University of North Carolina at Chapel Hill, Mulvaney started a small homebuilding company and owned and operated his own restaurant before entering politics.

Other congressmen to take on the budget post include David Stockman, Republican-Michigan, President Ronald Reagan’s first OMB director, and Leon Panetta, who ran the budget office during President Bill Clinton’s first term. Rob Portman, now a senator from Ohio, was one of President George W. Bush’s budget directors. AP

Pope Francis (right) celebrates his 80th birthday sharing a breakfast with homeless people before celebrating Mass with cardinals at the Vatican on Saturday. AP

Eats with homeless, gets 70,000 e-mails

Pope celebrates 80th birthday

V

ATICAN CITY—Pope Francis celebrated an active, if low key, 80th birthday on Saturday, sharing breakfast with eight homeless people before celebrating Mass with cardinals as greetings poured in from around the world.

The pontiff received more than 70,000 e-mail messages wishing him a happy birthday, as well as telephone calls and telegrams from world leaders and religious figures.

His predecessor, 89-year-old Emeritus Pope Benedict XVI, sent a “very affectionate” written greeting that the Vatican said was “particularly appreciated,” followed by a personal call in the afternoon and three small gifts that bore “very personal and significant meaning for both.”

The Vatican did not otherwise divulge the nature of the gifts.

At breakfast, Francis chatted individually with each of the homeless guests—four Italians, two Romanians, a Moldovan and a Peruvian— at the Vatican hotel where he resides, and shared Argentinian cakes with them before heading to Mass.

The guests offered the pope a bouquet of sunflowers. They were invited from among those staying around Saint Peter’s Square and at nearby showers for the homeless established by the pope’s almsgiver. The pope also sent enough birthday cakes for 1,500 people to kitchens serving the poor and homeless in Rome.

Speaking to the cardinals, Francis contemplated the aging process.

“For some days now, I have had in mind a word that seems ugly: Old age, a thought that frightens,” he said.

But then he recalled his own words during his first papal greeting in 2013, when he said: “Old age is the thirst for knowledge.”

He added: “I hope it will be the same for me.”

Saturday is a working day at the

Vatican and Francis kept up his usual pace. He met with Malta’s president and held an audience with members of the Nomadelfia community, a secular group whose lifestyle emulates early Christians, who sang “Happy Birthday” to the pontiff.

The pope experienced the day “with great joy. He was particularly happy by the presence of many children and youths at the audience with the Nomadelfia community,” the Vatican said. Greetings arrived from all corners of the globe, both personal messages and succinct tweets with the hashtag #Pontifex80.

US President Barack Obama said Francis “has inspired people around the world with his message of compassion, hope and peace,” while Italian President Sergio Mattarella recalled that the pope has called on Europeans to show solidarity with the less fortunate, in particular “migrants and all those who live at society’s margins.”

Russian President Vladimir Putin sent Francis a telegram and followed it up with a phone call in which he “remarked on the big contribution he has personally made to strengthen ties between Russia and the Vatican, which moved to a significantly new level in the recent years,” the Kremlin said. The Kremlin said Putin and the pope “exchanged opinions” on the plight of Christians caught in armed conflicts around the world and the importance of an interfaith dialogue.

Earlier this year, Francis met with Russian Patriarch Kirill in the first meeting of the head of the Roman Catholic Church and the leader of the world’s largest Orthodox Christian flock.

The patriarch’s office said on Saturday that Kirill had sent a congratulatory message to Francis and lauded him for improving ties between the Russian Church and the Vatican. AP

With Ivanka Trump, the role of US first daughter may get a major makeover

D

ES MOINES, Iowa—With Ivanka Trump, the typically minor role of a first daughter could get a major makeover.

She was a key player in her father’s winning campaign, and people are closely watching the next moves by President-elect Donald J. Trump’s 35-year-old daughter.

She’s attended her father’s transition meetings with high-profile figures, including the Japanese prime minister and technology leaders, and has indicated her interest in working on policy issues, such as child care.

The Trump Organization executive vice president also owns her own company that sells clothes and jewelry. While three of Donald Trump’s adult children are viewed as close advisers, he often highlights Ivanka and has made clear that he’d love to have her with him when he moves into the White House.

It’s not clear whether that would be in a formal position. But Trump adviser Kellyanne Conway suggested this past week that there may be an exception to antinepotism laws for Ivanka Trump and her husband Jared Kushner, who runs a real estate and construction business.

Previous first daughters have played a social role in the White House. During Harry Truman’s presidency, when his wife Bess was home in Missouri, their daughter Margaret would play hostess. But it would be “unprecedented” for Ivanka Trump to serve as a close adviser, said Katherine Jellison, who heads the history department at Ohio University.

“If there was ever a first daughter who played such a close advisory role to her dad, she really kept it under cover,” Jellison said.

What we know so far about Ivanka Trump:

Business

With the Trump family, everything comes back to the vast family business empire.

Ivanka Trump, one of Donald Trump’s three children with his first wife Ivana, is an executive vice president of the business along with brothers Donald Jr., 38, and Eric, 32.

Just how the president-elect will handle his business interests remains unclear. Trump has said he will turn management over to his sons and executives.

Ivanka Trump has her own business to consider, as well. She recently

been removed from the web site on Friday. Asked about the change, the Trump team provided a statement from Eric Trump: “The only people who lost are the children of Saint Jude,” he said.

White House

Ivanka Trump speaks beside her father, then-Republican presidential candidate Donald J. Trump (left), and vice-presidential nominee Indiana Gov. Mike Pence during a campaign rally in Manchester, New Hampshire, on November 7. AP

drew criticism after her company promoted a $10,800 bracelet she wore during a 60 Minutes interview on CBS. The spokesman for the company later apologized.

Since then, Ivanka Trump has sought to put some distance between herself and her fashion business. A letter posted on her web site said she would separate her social-media accounts from her company’s.

But questions continue to come up. Earlier this month, a “Coffee with Ivanka Trump” was listed on a charity fund-raising web site. Offered by the Eric Trump Foundation, it was to raise money for Saint Jude Children’s Research Hospital. The auction—reported on by The New York Times—drew high bids, but also raised ethics questions.

The auction appeared to have

Trump’s team says no official decision has been made about Ivanka Trump’s role, and she was not made available for an interview for this story. But the president-elect has made his wishes known.

“I think we’ll have to see how the laws read. I would love to be able to have them involved,” Trump said on Fox News of Ivanka Trump and her husband.

Congress passed an antinepotism law in 1967 that prohibits the president from appointing a family member to work in an office or agency the president oversees. But Conway said on MSNBC’s Morning Joe that the law has “an exception if you want to work in the West Wing, because the president is able to appoint his own staff.”

Still, Richard Painter, chief White House ethics lawyer under President George W. Bush, said: “I don’t believe that this statue

exempts the White House.” He said Conway’s interpretation would be reasonable policy because it would bring family members under conflict of interest rules, but added “I’m just not convinced that’s what the statute says.”

Policy platform

While much about Ivanka Trump’s future role is murky, her policy interests are quite clear.

Throughout the campaign she highlighted her interest in issues like child care, pay equity and maternity leave. Her father mentioned those issues rarely.

Ivanka Trump met with a group of Republican congresswomen on these issues in September. Since the election, she has reached out to members of Congress to continue the conversation, according to Sarah Chamberlain, the president and CEO of Republican Main Street Partnership, who said she has not heard from the future first daughter.

Republican consultant Katie Packer, who opposed Donald Trump, said she was welcoming “the spotlight that Ivanka Trump is going to put on these issues.” AP

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news@businessmirror.com.ph

Monday, December 19, 2016 A9

China must curb speculation amid bubble, top official says

265 The percentage of GDP of the outstanding credit at year-end

proposed using finance, land, taxation, investment and other instruments “to establish a fundamental and long-term system to curb real-estate bubbles and market volatilities,” according to a report Saturday from the official Xinhua News Agency.

Polic y-ma kers are shifting their focus to risk management after economic growth this year proved resilient, with President Xi Jinping saying they are on track to meet objectives.

Threats to maintaining rapid expansion still loom ahead of a crucial party congress late next year, including potential trade tensions with Trump and the Federal Reserve projecting a steeper path for interest rates that may add pressure on the yuan.

The easing cycle by the People’s Bank of China since late 2014 has been accompanied by a buildup in borrowing. Outstanding credit at year-end is on pace to be about 265 percent of GDP, up from 247 percent at the end of 2015, according to a recent report by Tom Orlik, chief Asia economist for Bloomberg Intel-

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China housing. Bloomberg News

hina must do more to deflate a property bubble that expanded this year by “strictly” controlling speculation, while also stepping up the fight to rein in excessive corporate borrowing, a top economic official said a day after leaders announced plans for next year. “ We need to give a higher priority to preventing and controlling financial risks,” Yang

Weimin, deputy director of the Office of the Central Leading Group on Finance and Economic

Affairs, said on Saturday at a forum in Beijing. “We need to defuse a f lurry of risks, contain asset bubbles and improve oversight to ensure there won’t be a systemic financial risk.”

Yang spoke a day after China’s top policy-makers said they plan prudent and neutral monetary policy next year to sustain a steady expansion with breathing room for reforms.

Preventing and controlling financial risk to avoid asset bubbles will be a priority, officials said in a statement on Friday after the three-day Central Economic Work Conference.

“Houses are built to be inhabited, not for speculation,” the postmeeting statement said. It

Trump’s Cabinet selections signal a bold shift after Obama

W

ASHINGTON—Propelled by populist energy, President-elect Donald J. Trump’s candidacy broke longstanding conventions and his incoming Cabinet embodies a sharp turn from the outgoing Obama administration.

Trump, a Republican who pledged major changes after eight years of a Democratic White House, has assembled nominees for a Cabinet that includes many business executives who have never served in government, and military leaders are in line to oversee defense and homeland security.

In one case, Trump has named someone who once called for dismantling the agency he’d lead.

A change of political parties at the White House almost always brings policy adjustments. But Trump’s Cabinet expects to carry the outsider flair of his campaign, a role reversal compared with more conventional teams under Presidents George W. Bush and Barack Obama that were heavy on former lawmakers, governors and veterans of past administrations.

A look at the expected shift in the federal government:

James Mattis retired from the Marine Corps as a four-star general in 2013 and had been a battlefield commander most of that time. Compare that with current Defense Secretary Ash Carter, who worked for years at the Pentagon and in academia, but never served in uniform.

To take the defense secretary job, Mattis needs Congress to pass a law allowing him to serve. Current law requires a Pentagon chief to be out of the military for at least seven years to uphold the commitment to civilian control of the military. The law was last waived for George Marshall in 1950. Trump has praised Mattis' effectiveness at “thank you” rallies around the country and has promised a massive buildup of the country’s defense capabilities.

State department

Treasury department

Trump’s decision to nominate Exxon Mobil CEO Rex Tillerson as Secretary of State means the department could be run by a lifelong oil executive with deep ties to Russia and no government experience.

OutgoingSecretaryofStateJohnKerry,aformer senator who was chairman of the Senate Foreign Relations Committee, spent much of his tenure

seeking agreements to fight climate change, restrain Iran’s nuclear program and pressure foreign adversaries through financial penalties.

But if Tillerson wins Senate confirmation, he would have a big say over whether the Trump administration withdraws from the Paris climate treaty and the Iran nuclear pact, along with the future of US relations with Russia.

Defense department

Obama’s Treasury Department was in crisis mode from the moment he took office, dealing with massive job losses and the meltdown of the housing market. Eight years later, Trump has nominated Steven Mnuchin to lead the department, turning to a former Goldman Sachs executive who invested in a bank that foreclosed on thousands

of homeowners after the housing crisis.

Democrats are expected to press Mnuchin on his role in IndyMac, which was rebranded OneWest, and the deal that left the Federal Deposit Insurance Corp. responsible for taking as much as 80 percent of the losses on former IndyMac assets. Mnuchin has promised “the most significant middle-income tax cut” since President Ronald Reagan.

Energy department

Former Texas Gov. Rick Perry once famously struggled to name three federal departments he would eliminate if elected president, muttering “oops” during a 2011 presidential debate. In one of ironies of the Trump transition, Perry is now preparing to run one of those agencies, the Energy Department, after more than 14 years as governor.

Perry presided over his state’s vast oil and gas industries and leading wind energy sector. He is currently on the boards of two petroleum companies seeking approval for the Dakota Access Pipeline project. He would be a break from predecessors such as Steven Chu, a Nobel Prize-winning physicist, and Ernest Moniz, a nuclear physicist from the Massachusetts Institute of Technology.

Justice department

Alabama Sen. Jeff Sessions, Trump’s pick for attorney general, has supported tough immigration enforcement policies and said the Justice Department’s civil rights division should not be used as “a sword to assert inappropriate claims that have the effect of promoting political agendas.” AP

ligence in Beijing.

Credit taps are still flowing freely. The broadest measure of new lending jumped last month by the most since March, boosted by borrowing for home loans and a resurgence of shadow-banking activity. The main categories of shadow finance—bankers’ acceptances, entrusted loans and trust loans—all increased signif ica nt ly whi le longer-ter m household loans accounted for more than two-thirds of total new yuan loans.

Yang, who helped draft Friday’s statement, sits on the Communist Party’s elite financial and economic panel led by Xi that is shaping policies to help support growth. The director of the panel’s general office is Liu He, one of Xi’s top advisers.

Maintaining stability doesn’t mean inaction, Yang said at an event sponsored by the China Center for International Economic Exchanges. He said the economy’s structure is improving and that cutting overcapacity will extend to more industries in addition to steel and coal.

Ning Jizhe, chief of the National Bureau of Statistics, told the forum that this year’s targets for reducing excess steel and coal capacity have been met. In coastal regions, new industries and business models make up a big share of the economy, said Ning, who’s also deputy chairman of the National Development and Reform Commission, China’s top economic-planning body. Bloomberg News

The World

A10 Monday, December 19, 2016 • Editor: Lyn Resurreccion

BusinessMirror

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Trump: US should let China keep the drone

W

ASHINGTON—Presidentelect Donald J. Trump said on Saturday on Twitter the United States should let China keep the US Navy’s unmanned underwater glider that it seized in the South China Sea. “We should tell China that we don’t want the drone they stole back.

Let them keep it!” Trump tweeted a few hours after the US military announced it had reached an understanding with China for the return of the underwater glider.

According to the Pentagon, the drone was seized on Thursday while collecting unclassified scientific data in the South China Sea, which China claims virtually in its entirety.

The US demanded the drone back, calling it an “unlawful seizure” in international waters.

China said its military seized the underwater glider to ensure the safe navigation of passing ships but would give it back.

It was not immediately known what effect, if any, the presidentelect’s tweet would have on the agreement with the Chinese.

The evening tweet was the second time the president-elect injected himself into the controversy through Twitter on Saturday.

Misspelling “unprecedented,” he tweeted on Saturday morning: “China steals United States Navy research drone in international waters—rips it out of water and takes it to China in unpresidented act.” He later reissued the tweet, correcting the spelling.

Trump’s evening tweet may extend one of the most serious incidents between the American and the Chinese militaries in years.

The Pentagon said the drone was being operated by civilian contractors to conduct oceanic research.

Chinese Defense Ministr y Spokesman Yang Yujun issued a statement late on Saturday saying a Chinese navy lifeboat discovered an unknown device in the South China Sea on Thursday.

“In order to prevent this device from posing a danger to the safe navigation of passing ships and personnel, the Chinese lifeboat adopted a professional and responsible attitude in investigating and verifying the device,” Yang said.

The statement said that, after verifying that the device was an American unmanned submerged device, “China decided to transfer it to the US through appropriate means.”

The US said that, “through direct engagement with Chinese authorities, we have secured an understanding that the Chinese will return” the unmanned underwater vehicle, according to a statement from Peter Cook, spokesman for US Defense Secretary Ash Carter.

But Trump, after holding a rally to thank supporters for his election, took to Twitter to criticize the deal.

The US said China’s “unlawful seizure” came in international waters. Yet, China pointedly accused the US of long sending ships “in China’s presence” to conduct “military surveying”.

In this combination of three 2016 file photos shows Taiwan’s President Tsai Ing-wen (left) speaking at a ceremony at the Gen. Andres Rodriguez school in Asuncion, Paraguay, on June 29; US Presidentelect Donald J. Trump (center) talking with President Barack Obama at White House in Washington on November 10; and China’s President Xi Jinping arriving at La Moneda presidential palace in Santiago, Chile, on November 22. AP

“China is resolutely opposed to this and requests the US stop such activities,” it said. “China will continue to maintain vigilance against the relevant US activities and will take necessary measures to deal with them.”

Earlier on Saturday, China’s foreign ministry said the country’s military was in contact with its American counterparts on “appropriately handling” the incident, though it offered no details on what discussions were under way.

The drone was seized while collecting unclassified scientific data about 92 kilometers northwest of Subic Bay near the Philippines in the South China Sea, which China claims virtually in its entirety, Navy Capt.

Jeff Davis, a Pentagon spokesman, said on Friday.

“It is ours. It’s clearly marked as ours. We would like it back, and we would like this not to happen

again,” Davis told reporters. He said the drone costs about $150,000 and is largely commercial, off-theshelf technology.

The USNS Bowditch, which is not a combat ship, was stopped in international waters on Thursday afternoon and recovering two of the gliders when the Chinese ship approached, Davis said. The two vessels were within about 450 meters of each other. He said the USNS Bowditch carries some small arms, but that no shots were fired.

According to the Pentagon, as the Chinese ship left with the drone, which is about 3 meters long, its only radio response to the US vessel was, “We are returning to normal operations.”

Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies, said the seizure of the glider occurred inside the exclusive economic zone of the

Forced to leave, Aleppo evacuees tell of their pain

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EIRUT—Death in Aleppo was personal for Modar Sheikho. He lost his sister to government bombing early in the revolt. His brother was killed last month. And as they looked for a place to bury him, another air strike killed his father.

Still, Shekho held out in the besieged city as long as he could.

When he finally was forced to evacuate on Friday, he made a video-bidding farewell to the city.

“We were asking for our freedom. This is what we get,” he said against a backdrop of bombed-out buildings and thousands of people waiting for buses to take them away from Aleppo. But even in his first hours of exile, the 28-year-old nurse longed to return.

“My soul is torn out more with each step away from Aleppo,” he whispered in an audio message to The Associated Press (AP), not wanting to wake other evacuees in their temporary home in a village west of the ancient city.

He and thousands of others held tight to their crumbling enclave despite a grueling four years of war. Bit by bit over three weeks, the government offensive chipped away at their last refuge.

Their realm of destroyed buildings and crater-filled roads in eastern Aleppo shrank from 17 square miles to just one over a few weeks as forces loyal to President Bashar al-Assad swept through, neighborhood by neighborhood.

The promise of boarding buses to safety was a relief. But for many, like Sheikho, losing Aleppo was inconceivable.

Of the more than half-dozen residents and activists that AP has maintained regular contact with in recent months, only one said he felt disillusioned with the rebellion.

A boy from eastern Aleppo stands in a pickup truck with his family as they arrive in western rural Aleppo, Syria, as part of an evacuation deal. As the last holdouts leave the rebel-held enclave in Aleppo, they speak of their love for the city despite witnessing so much destruction and death.

Bit by bit over three weeks, the government offensive chipped away at their last refuge. AP

“This revolution is one of the biggest failures in the world,” said 21-year-old Ahmed, who has not left the enclave yet and refused to give his family name out of fear of reprisal. “If God saves me from this, I will go to Turkey and start a new life, away from the criminal regime and the deceiving rebels.”

Most seemed haunted by the city’s struggle, saying they can’t let go of their dream to create a Syria without Assad. They said they would continue their antigovernment activities somehow from wherever they end up.

One gynecologist who had refused to leave her patients said her husband forced her to flee to a government-controlled area for safety.

The woman, who identified herself only as Farida to protect her family, earlier had sent her daughter out with thousands of other evacuees.

Farida said she could not stand living for even two days in the

government-controlled sector and fled to the countryside, where the rebels are in control.

“Despite how hard it was under siege and bombardment, I was at peace with myself,” she said.

Farida’s husband, also a doctor, followed. But she is still angry at him for forcing her to leave, adding: “I can’t continue my life with him.”

“I can’t feel any joy when my colleagues are getting slaughtered,” she said in text messages.

She hopes to be reunited one day with her daughter.

Sheikho left on the first day of the evacuation, which was monitored by the Red Cross. He and thousands of other holdouts boarded green government buses with portraits of Assad in the windshield and were taken to rebel-controlled areas.

“It is very painful that I separate from my city of 28 years,” Sheikho said. “I hope it is quickly liberated so I can return to it.”

Besides seeing his city crumble, Sheikho watched his family shattered by more than five years of civil war.

On the first day of the government’s big ground offensive three weeks ago, Sheikho and his family sought a new home to avoid intense bombing.

Like many others, his family was caught on the road by the bombardment, and his brother was killed on the spot.

He and his father had to search for a cemetery because Aleppo was running out of burial space. In the process, his father—a prominent professor of Arabic—also was killed.

Four years earlier, an air strike killed his sister outside the hospital where she worked as a nurse.

After mourning his father and brother, Sheikho had told the AP: “We are all on the road to death. May God accept them as martyrs.”

Before he boarded the bus, he roamed the few streets of Aleppo still open to him for one last time—but he couldn’t visit the graves of his relatives because the government had seized the neighborhood where they are buried.

“I hope they forgive us” for losing Aleppo, Sheikho said.

He said he plans to be reunited with his wife, who left as the fighting intensified, and also wants to see his English teachers again.

Most likely, he will settle in a town on the Orontes River in Idlib province where rebels are in control.

Many predict that Idlib may be the next front in a government offensive.

Asked what he expected in his new life, he said: “It is the unknown future filled with painful memories.” AP

Philippines, not China, and appeared to be a violation of international law.

China delineates its South China Sea claims with a roughly drawn sea border known as the “nine-dash line” that runs along the west coast of the Philippines.

However, it hasn’t explicitly said whether it considers those waters as sovereign territory, and says it doesn’t disrupt the passage of other nations’ shipping through the area.

The US doesn’t take a position on sovereignty claims, but insists on freedom of navigation, including the right of its naval vessels to conduct training and other operations in the sea.

Davis said the incident could be the first time in recent history that China has taken a US naval vessel.

Some observers have called it the most significant dispute between the sides’ militaries since the April 2001 midair collision between a US Navy

surveillance aircraft and a Chinese fighter jet about 110 kilometers from China’s Hainan island that led to the death of a Chinese pilot.

Relations already were tense between the US and China following Trump’s decision to talk by phone with Taiwanese President Tsai Ingwen on December 2. He later said he did not feel “bound by a one-China policy” regarding the status of Taiwan, unless the US could gain trade or other benefits from China.

China considers the self-governing island its own territory to be recovered by force if it deems necessary.

There also have been increased tensions over Beijing’s ongoing military buildup in the South China Sea, mainly the development and militarization of man-made shoals and islands aimed at extending China’s reach in the strategically vital area, through which about $5 trillion in global trade passes annually. AP

Biden, mourners pay tribute to John Glenn, American hero

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OLUMBUS, Ohio—The nation’s vice president and a retired Marine Corps general were among the dignitaries, family members and other mourners who choked up on Saturday during a memorial tribute to the late space hero John Glenn.

Roughly 2,500 people gathered at Mershon Auditorium on the Ohio State University campus for “a celebration of life” for the former fighter pilot, history-making astronaut and longtime Democratic US senator from small-town Ohio. He was remembered not only for bravery, but for his thoughtful consideration for others, his integrity and his patriotic optimism.

“I think John defined what it meant to be an American, what we were about, just by how we acted,” said Vice President Joe Biden, a former colleague of Glenn’s in the US Senate. “It was always about the promise. We were a country of possibility, opportunity, always a belief in tomorrow.”

Retired USMC Gen. John Dailey said Glenn was “never in it for himself,” but always acted for the nation’s greater good.

Like many others, he recalled Glenn’s humility and basic kindness.

“We had John for 95 great years and it still wasn’t enough,” Dailey said.

Glenn died on December 8 at age 95.

He was the first American to orbit the Earth in 1962, and then in 1998 became the oldest person in space at 77.

Thousands of people, including Democratic US Secretary of State John Kerry, visited the Ohio Statehouse on Friday as Glenn lay in honor. A solemn funeral procession through the center of the capital city carried his casket past more mourners willing to withstand cold and ice.

Ethel Kennedy, widow of close Glenn ally Robert F. Kennedy, and their son Robert F. Kennedy Jr., were among the mourners present, along with Ohio political leaders, including Gov. John Kasich and former Govs. Ted Strickland and Richard Celeste.

The service was preceded by recordings of hymns, arias and popular songs.

Some—including Nat King Cole’s “Smile” and Susan Boyle’s version of “Impossible Dream”—nodded to Glenn’s trademark optimism. Others, including “You Are My Sunshine”, ‘’Moon River” and Shirley Jones singing “Goodnight, My Someone”—recalled Glenn’s long love affair with wife, Annie, who survives him.

Their marriage was cited frequently as a source of Glenn’s strength and an inspiration to those who have known and watched the couple for 73 years.

US Sen. Sherrod Brown, a fellow Democrat who first met Glenn when he was a teenage Eagle Scout, called Glenn “an FDR Democrat” who believed in the power of government and the importance of public service—through his military and space career and his tenure in the Senate.

“He was a work horse, never a show horse,” Brown said. “He labored over the details of nonproliferation and environmental cleanup of nuclear disposal sites, grunt work to some, but John was content to spend his time not on collecting instant headlines but achieving lasting results that would leave the world better than he had found it.”

Brown’s wife journalist Connie Schultz, recalled his tenderness when their grandson was curious about how astronauts urinate in space. She saw it as example for the nation.

“If American icon John Glenn could take the time to treat a child with such respect, surely we can find the time to listen to one another,” she said.

National Aeronautics and Space (Nasa) Administrator Charles Bolden Jr. said the US space program remains indebted to Glenn.

“It was courage, grace and humility John displayed throughout his life that lifted him above the stars,” Bolden said.

“As the current head of Nasa, I can say unequivocally that we are standing on John Glenn’s shoulders as we pursue a human journey to Mars, a journey that would not be possible without his bravery and selfless dedication.” AP

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Monday, December 19, 2016

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UK faces strike-hit Christmas by post, train and air workers

Passengers queue up for an express train to Gatwick Airport, running a reduced service as a result of a train strike, in Victoria rail station inLondon, on December 13. A 48-hour strike starting on Tuesday morning has crippled rail services in southern England, as a long-running dispute continues to cause misery for hundreds of thousands of commuters in and out of London. AP/Matt Dunham

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ONDON—The United Kingdom faces a Christmas of discontent as labor unions threaten to disrupt airports, rail services and mail deliveries.

The Unite union and aviation services company Swissport announced negotiation plans on Saturday intended to avert a December 23 walkout by 1,500 baggage handlers, check-in staff and other workers at 18 regional airports from Belfast to Bournemouth.

Unite General Secretary Len McCluskey said he hoped “fairness will prevail” in Tuesday’s talks.

Swissport retorted that it had made several pay-rise offers to Unite-represented staff since April 2015, but “a minority of trade union members are acting in a cynical fashion to disrupt the travel plans of the public and attempt to

hold employers to ransom.”

At British Airways, a fourth of the airline’s cabin-crew members are planning a two-day strike starting on Christmas, December 25.

British Airways condemned Unite’s timing and vowed to ensure that all customers reached their holiday destinations.

“This calculated and heartless action is completely unnecessary and we are determined that it will fail,” the airline said in a statement.

McCluskey countered that the airline “needs to come to the table with a positive offer.”

Rolling strikes by two unions at Southern Railway already have

18 The number of regional airports, from Belfast to Bournemouth, where a walkout is set to start on December 23

disrupted much of England’s train services this month, with worker protests over cutbacks in overtime scheduled to go on until January 14.

To top things off, the UK Communication Workers Union plans a Post Office strike starting on Mond ay t h roug h C h r i st m a s Eve. AP

Obama to Trump: Consider costs of any Taiwan change

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resident Barack Obama cautioned his successor, Don a ld Tr u mp, aga i nst abandoning US policy on Taiwan, warning that the relationship with China is important to the US economically and strategically and the reaction in Beijing could be “very significant.”

“For China, the issue of Taiwan is as important as anything on their docket. The idea of One-China is at the heart of their conception as a nation,” Obama said at his last year-end news conference at the White House. “If you’re going to upend this understanding, you have to have thought through what the consequences are.”

Trump accepted a congratulatory 10-minute phone call from Taiwan president Tsai Ing-wen earlier this month, abandoning decades of political protocol that

limited direct contact between the US president and the island’s leader.

The Chinese regard Taiwan as a renegade province, and under the “One-China” policy, the US acknowledges Taiwan and the mainland are part of the same China, and Beijing is the seat of government.

“The Taiwanese have agreed to that; as long as they’re able to continue to function with some degree of autonomy, they won’t charge forward and declare independence,” Obama said.

“That status quo, although not completely satisfactory to all the parties involved, has kept the peace and allowed the Taiwanese to be a pretty successful economy and a people who have a high degree of self-determination.”

After the call, Trump suggested in an interview on Fox News that the One-China policy could be

used as a bargaining chip in trade talks with the Chinese.

“I don’t know why we have to be bound by a One-China policy unless we make a deal with China have to do with other things, including trade,” Trump said.

Obama declined to directly criticize Trump for taking the call from the Taiwanese president.

“I think all of our foreign policy should be subject to fresh eyes,” he said. “It should be not just the prerogative but the obligation of a new president to examine everything and determine what makes sense and what doesn’t.”

But Obama said he had advised Trump to move cautiously in foreign policy until his entire team is in place in the government and has been “ fully br iefed ” on US inter nationa l relationships. Bloomberg News

Science Monday

A12 Monday, December 19, 2016

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

Most innovative products recognized by industry

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ea-tums. Gracilaria. Sea Grapes Powder. Crispy Sprouted Mongo. These are only some of the 20 innovative food products developed from local raw materials in the Department of Science and TechnologyFood Innovation Centers (DOST–FICs) in every region in the country.

The products vied for the highly coveted Most Innovative Products and Industry Choice Awards in a simple awarding ceremony led by Industrial Technology Development Institute (ITDI) Director Dr. Maria Patricia V. Azanza.

The DOST initiated the establishment of FICs nationwide as support to micro, small and medium enterprises (MSMEs) to help them move up the value chain and improve their productivity to help them keep up with global market trends.

T he FICs ser ve as hub for food-product development and innovation in the regions nat ionw id e. T he fo o d - pro du c t concepts are transformed from locally abundant raw materials using the DOST-developed foodprocessing equipment—water retor t, vac uu m f r yer, f reeze dryer and spray dryer.

The ITDI led in developing the competence of FIC managers and technical personnel in product development and innovation, and equipment operation and maintenance through trainings.

T h is inc luded impor t a nt as pects of food processing, such as food safet y, pack ag ing and nutrition labeling, and product costing and marketing.

“After equipping and building the competence of our FIC personnel, we would now assess and choose the most innovative of their developed food prototypes,” Azanza said in her opening message. Before the awarding ceremony, a preliminary screening was conducted in September where five food products per

equipment were selected.

T he chosen products were judged based on innovativeness (new product, mod if ication); market viability (why consumers will buy, competitive price); consumer acceptability (taste, aroma, healthy); and soundness of process (considered food contaminants and adulterants, lower production cost).

Overall, DOST-FIC Cagayan Valley came out as the run-away winner, bagging two of the top awards, two of the second best and one of the Industry Choice awardees. The region also had the most number of qualifying products, seven in all, that bagged P100,000 cash prize.

Science Undersecretar y Dr. Rowena Cristina Guevara, for Research and Development, led the DOST officials who graced the awarding ceremony. Also present was Executive Director Dr. Carlos Primo David of Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD).

Guevara said, “Commercializing these products poses the biggest challenge now and our judges who mostly come from the industry sector can surely help.” She also congratulated all the awardees and encouraged them to keep on creating and developing more products that Filipinos can claim their own and be proud of.

The judges from the industry and academe were David of PCIEERD; Chancellor Dr. Ma. Veritas Luna of Center for Culinary Arts; Division Dean Dr. Ligaya

Most Innovative Product Freeze Dryer—Gracilaria

T. Braganza of Facility of Food Science and Technology, Hospitality and Tourism ManagementPhilippine Women’s University; President Alberto Cariso Jr. of Philippine Association of Food Technologists Inc.; Vice President and General Manager Rex Agarrado of Canned Meat-Century Pacific Inc.; Regina Francisco, director for operation, EchoStore; and Hannah Margaret Rabaja, FoodDrug Regulation officer II-Food and Drug Administration.

Top products

Awarded with a cash prize of P100,000 each, the following were named as the Most Innovative Products per equipment category:

Tea-Tums (water retort, National Capital Region [NCR], Diliman, Quezon City)

Tea-tums is a flavorful readyto-drink blend of lemongrass and calamansi extracts infused with turmeric and ginger. It can be marketed as a health drink.

It was pasteurized to the optimum time and temperature to ensure the quality of the drink throughout storage.

Graciliaria (freeze dryer, Cagayan Valley, Tuguegarao)

Gracilaria is a seaweed that is abundant in Cagayan and claimed to be free from heavy metals, such as lead and mercury. It can be processed as seaweed chips.

Target consumers for the product are lactating mothers, restaurants, the health-conscious and households, and the f lavoring umami industry, among others.

Most Innovative Product Spray Dryer—Sea Grapes Powder

manufacturing feasibility and competitive price.

Finalists

Most Innovative Product Vacuum Fryer—Crispy Sprouted Monggo

Sea Grapes Powder (spray dryer, Zamboanga Peninsula)

Sea-grapes powder is a lightgreen powder produced by spraydrying the extract of sea grapes, or lato, with maltodextrin as carrier material.

It has a natural salty, peppery taste. As an intermediate product, sea-grapes powder can be used as condiment or fortificant or flavoring in gourmet foods and food products, like chips, fries, noodles and fruit drinks.

Crispy Sprouted Mongo (Vacuum fryer, Cagayan Valley, Tuguegarao)

Crispy-sprouted mongo is vacuum-fried blanched togue that has approximately 72 percent less moisture. It is seasoned with garlic powder and salt, and packed in PET bottle. The product is light-weight and shelf-stable.

Sprouted mongo has higher nutrient content than ordinary mongo. Hence, the product can be served as a healthy snack that can provide the needed protein of

growing schoolchildren, increase the immune system of lactating and pregnant women, and can even be an energy source for everyone.

Runners-up

Besides the top innovative products, the runners-up or second best products were, likewise, recognized, based on the same equipment category.

Each of the four runners-up were given P50,000 cash prize.

They are Uved, (water retort, Cagayan Valley, Tuguegarao); Arius, (freeze dryer, Cagayan Valley, Tuguegarao); Bukolyte (spray dryer, Davao region, Davao); and Crunchy Mayahini (vacuum fryer, Eastern Visayas, Tacloban).

Two produc t s emerged a s Judges’ Choices from the four Most Innovative Products. With P25,000 cash prize each, the winners were Cagayan Valley’s Crispy Sprouted Mongo and Zamboanga Peninsula’s Sea Grapes Powder.

The products stood out based on their newness in the market, potential consumer appeal, rational

A total of 20 finalists vied for the awards. Five products competed per equipment category. They are water-retort products: Inasal Sauce, Mongo Filling, Uved (Cagayan Valley); Sardine Roll (Zamboanga Peninsula); Tea-Tums (NCR); Freeze dried products: Arius, Blue Pea, Gracilaria (Cagayan Valley); Durian Kisses, Roselle (Cagayan Valley); Spray dried products: Young Coconut, Pomelo Pectin (Davao reg ion); K amias (NCR); L ato (Davao Peninsula); Lemongrass (Northern Mindanao); Vacuum fried products: Barinday (Eastern Visayas); Instant Sinabawang Isda, Marang (Norther n Mindanao); Mi xed Chips (Davao region); and Crispy Sprouted Monggo (Cagayan Valley).

The eight operating regional FICs par ticipated in the event, na mely, C agaya n Va l ley, C agayan State Universit y- Car ig C a mpus; NCR , Un iversit y of the Philippines-Diliman; Mimaropa, Mindoro State College of Agriculture and Technolog y; We s t e r n V i s ay a s , G u i m a r a s State Col lege-Mosqueda Campus; Easter n Viasyas, Easter n Visayas State Universit y; Zamboaanga Peninsu la, Zamboanga State Col lege of Mar ine Science and Technolog y; Northern Mindanao, Mindanao University of Science and Technolog y; and Davao reg ion, Philippine Women’s Col lege of Davao.

S&T Media Service

Ancient human ancestor a tall dude, his footprints show UNEP, ACB and China hold Access and Benefit Sharing meet

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earn by doing. Innovate by learning.

This has been the approach of the Asean Centre for Biodiversity in implementing the UNEP [United Nations Environment Programme]-China Trust Fund project on ABS [Access and Benefit Sharing],” said Anthony Foronda, Asean Centre for Biodiversity (ACB) Programme specialist on ABS. Foronda made the statement during the side event at the 13th Meeting of the Conference of Parties to the Convention on Biological Diversity (CBD COP13) at the Moon Palace Arena, Cancun, Mexico, last week.

“This side event is an oppor tune time for the countries to share their respective ABS project activities and the challenges they encountered in the implementation process,” Foronda added.

The meeting was organized by the UNEP, in cooperation with the ACB and China, the Sharing of Knowledge and Experience among Asean Countries and China in the Implementation of the Nagoya Protocol on ABS, showcased achievements of the ABS Regional Project.

It was graced by Dr. Balakrishna Pisupati, head of Biodiversity, Land and Governance Programme, Environmental Law and Conventions Division, UNEP, Nairobi; ACB Executive Director Atty. Roberto Oliva; Clarissa Arida, director of the ACB Programme Development and Implementation; Dr. Inthavy Akkharath, CBD focal point and acting secretary-general, National Mekong Committee, Ministry of Natural Resources and Environment, Lao PDR; Win Naing Thaw, director, Nature and Wildlife Conservation Division, Forest Department, Ministry of Natural Resources and Environmental Conservation, Myanmar; Dr. Nguyen Thanh Vinh, deputy director,

Biodiversity Conservation Agency, Vietnam; Marcal Gusmao, ABS focal point for Timor Leste, National University of East Timor; Dr. Xu Jing, Minzu, researcher, Chinese Research Academy of Environmental Services, China; Anthony Foronda, ABS Programme specialist of ACB; Makiko Yashiro, programme officer, Ecosystems Division, Asia and Pacific Office, UN Environment; and Atty. Elpidio Peria, ABS project consultant.

“We are fortunate that there is the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization to the Convention on Biological Diversity, or simply known as the Nagoya Protocol on ABS, that was crafted to provide greater legal certainty and transparency for both providers and users of genetic resources, by creating a framework that promotes the use of genetic resources and associated traditional knowledge while strengthening the opportunities for fair and equitable sharing of benefits from their use,” Oliva said.

The ABS project provides technical support to selected countries—Laos, Myanmar and Vietnam—in developing national ABS regulatory and institutional frameworks for select Asean memberstates and piloting initiatives to implement the Nagoya Protocol on ABS. It has a strong focus on promoting regional cooperation, knowledge sharing and learning on ABS within Asean member-states and China.

This side event provided opportunities for exchanging views on potential areas and opportunities for future collaboration within Asean, as well as for promoting the South-South cooperation between Asean and China on ABS.

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E W YOR K— He sto o d a majestic 5 -foot-5, w e i g h e d a r o u n d 10 0 pounds and maybe had a harem.

That’s what scientists figure from the footprints he left behind some 3.7 million year ago.

He’s e v ident ly t he t a l lest known member of the prehuman species best known for the fossil skeleton nicknamed “Lucy”, reaching a stature no other member of our family tree matched for another 1.5 million years, the researchers say.

The 13 footprints are impressions left in volcanic ash that later hardened into rock, excavated last year in northern Tanzania in Africa. Their comparatively large size, averaging a bit over 26 centimeters, suggest they were made by a male member of the species known as Australopithecus afarensis.

The prints were found at a site called Laetoli, which is famous for another set of smaller footprints left by other A. afarensis individuals. Those made headlines in the 1970s as the earliest clear evidence of upright walking by our ancestors. The newly discovered prints are only about 150 meters away.

Researchers named the new creature S1, for the first discovery made at the “S’’ site. From the footprints, they calculated that he stood about 5-foot-5 (roughly 165 centimeters) and weighed around 100 pounds (about 45 kilograms).

They figured that he loomed at least 8 inches (more than 20 centimeters) above the individuals

This undated photo in December shows preliminary digging and cleaning operations at the Laetoli site in northern Tanzania, where 14 footprints from a human ancestor, believed to be Australopithecus afarensis, were found. Findings were described in a report released on December 1 by the journal eLife. Sofia Menconero via AP

who made the other tracks, and stood maybe 3 inches (7 centimeters) taller than a large A. afarensis specimen previously found in Ethiopia. Lucy, also from Ethiopia, was much shorter at about 3.5 feet (107 centimeters).

The findings are described in a report released on Wednesday by the journal eLife. Authors include Giorgio Manzi of Sapienza University in Rome, Marco Cherin of the University of Perugia in Italy, and others.

Nobody knows the ages or sexes of any of the track-makers, although the size of the latest footprints suggest they were made by a male. It’s quite possible that the new discovery means A.

afarensis males were a lot bigger than females, with more of a difference than what is seen in modern humans, the researchers say.

That’s not a new idea, but it’s still under debate.

The large male-female disparity suggests A. afarensis may have had a gorilla-like social arrangement of one dominant male with a group of females and their offspring, the researchers said.

But not everybody agrees with their analysis of S1’s height.

Their estimate is suspect, says anthropologist William Jungers, a research associate at the Association Vahatra in Madagascar who wrote a commentary on the study. That’s because scientists

haven’t recovered enough of an A. afarensis foot to reliably calculate height from footprints, he said in an e-mail.

Philip Reno, an assistant anthropology professor at Penn State who didn’t participate in the new work, said he believed the height estimate was in the right ballpark.

But he’s not convinced that S1 was really taller than the large Ethiopian A. afarensis.

So rather than setting a record, “I think it confirms about the size we thought the big specimens were,” Reno said.

Manzi and Cherin said they can’t be sure S1 was taller than the Ethiopian specimen. “We only suggest,” they wrote in an e-mail. AP

Green Monday BusinessMirror

BusinessMirror

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

Monday, December 19, 2016 A13

Riverbank rainforestation in Davao earns recognition Signing of the memorandum of agreement between Globe and Hineleban on rainforestation program. Signatories are Hineleban President Edgar Bullecer, ( seated second from left) and Globe SVP for Corporate Communications Yoly Crisanto, (seated second from right). Witnesses are Globe Program Coordinator Neil Konrad Binayao (left) and Globe Corporate Social Responsibility Manager Rofil Sheldon Magto (right), together with seven tribe leaders of Bukidnon and Lanao del Sur.

Globe Telecom, iPhone 7 customers help in Mindanao ‘rainforestation’

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eading telecommunications company Globe Telecom, together with its thousands of iPhone 7 customers, collaborated with Hineleban Foundation Inc. on the rainforestation of six mountain ranges of Mindanao as part of the company’s commitment to sustainable development and good corporate citizenship.

At the same time, Globe signed a memorandum of agreement (MOA) with Hineleban for a five-year rainforestation program composed of three key components, namely, reforestation, food security and sustainable-livelihood development in Bukidnon and Lanao del Sur provinces.

The foundation is a nonprofit organization, which advocates environmental conservation and livelihood development by preserving and restoring mountain rainforests and watersheds, as well as providing livelihood opportunities for indigenous people in Bukidnon and Lanao del Sur. Customers who received the new iPhone 7 under the Globe MyLifestylePlan were able to participate in various cause-oriented programs, including environment protection and conservation through the Globe of Good bundle, which allowed the company to make a donation on their behalf to partner groups, one of which is Hineleban.

“We believe everyone should lead a sustainable lifestyle, one which protects and preserves our natural resources so future generations can enjoy our country’s rich heritage,” said Yoly Crisanto, Globe senior vice president for Corporate Communications.

“Globe has already established a name for its innovations in mobile and connectivity but it is equally important for the company to give back. We have to make our practices sustainable to keep providing top-notch products and services to the customers who trust us. At the same time, we’re inviting them to be part of our efforts.”

Bukidnon, known as the “heart of Mindanao”, has some primary forests left but over 44,000 hectares of forest areas are already degraded. To date, Hineleban operates its rainforestation efforts in three project sites in Bukidnon and two project sites in Lanao del Sur to address the problem. Combined, it covers 1,054 hectares and supports 10 municipalities.

Hineleban works on the restoration of the environment and sustainable livelihood for the lumads and the Bangsamoro through transformational business partnerships.

It has also signed a “Sacred Customary Compact” with seven tribes in Bukidnon, duly recognizing the role of the latter as custodians of the forest.

Globe Telecom’s partnership with Hineleban is part of its climate action program, which advocates for the protection and preservation of the natural resources for the succeeding generations.

Globe protects the environment in all areas of its operation, manages its industrial waste and carbon footprint, develops products and services with minimal environmental impact, and identifies areas of reduction through alternative energy resources. It also implements its e-waste recycling program, which promotes the proper disposal of mobile phones and other electronic wastes.

At the same time, the telecom company engages everyone to live a sustainable lifestyle—from donating old mobile phones for recycling, joining reforestation activities or simply opting for paperless billing as a collective effort to a significant contribution toward a greener future.

Customers who wish to support Globe’s reforestation efforts, may request tree codes by texting TREE to 2158-8733. This is an SMSbased donation that automatically reflects in the customers’ postpaid bill at a cost of P100 per tree.

2GO, TDFI partner for seagrass planting

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d h e r i n g to i t s a d vo c a c y o f environmental conservation and sustainable development, 2GO Group Inc., the leading shipping, logistics and seatransportation provider in the Philippines, has recently partnered with nonprofit company Tuason Development Foundation Inc. (TDFI) for a series of seagrass planting in Mindanao aimed at improving the marine biodiversity of the region.

“Part of 2GO’s CSR [corporate social responsibility] is to negate our carbon footprint being the No.1 shipping, logistics and sea-transportation provider in the Philippines. Thus, the preservation and improvement of marine life by planting more seagrass is a first step in this long-term project to protect the marine ecosystem,” 2GO Travel Senior Vice President Stephen Tagud said.

Tagud noted that 2GO has chosen seagrass planting as part of the company’s advocacy because of its huge impact and long-lasting benefits to marine conservation.

In particular, 2GO and TDFI will conduct seagrass planting in the Davao Gulf.

Recent studies have shown the importance of seagrass in preserving marinebiodiversity, especially in tropical areas where seagrass beds typically serve as a natural bridge between the mangrove forest along the shores and the coral reef in deeper waters off-shore. This is especially true for a country like the Philippines, which boasts of one of the world’s longest coastlines at over 36,000 kilometers.

A seagrass has, likewise, been described as the “lungs of the sea” because a mere

square meter of seagrass can already generate 10 liters of oxygen, and a healthy seagrass meadow of around 4,000 square meters can easily support 40,000 fish and 50 million small invertebrates.

In addition, the seagrass occupy less than 0.2 percent of the seafloor, where it captures over 10 percent of the organic carbon in the ocean—thus helping reduce greenhouse gases.

A paper by Miguel D. Fortes from the Marine Institute of the University of the Philippines, meanwhile, explained that “seagrasses are sensitive to both biological and physical fluctuations, making them useful indicators of changes not easily observable in either coral reef or mangrove forest. As an ecosystem, its unique ecological functions provide numerous benefits to coastal dwellers.”

Fortes said this fact is unknown to the coastal communities when, in fact, marine life relies on seagrass, such as shrimps, sea urchins, various fishes and sea turtles.

Seagrass beds also trap and hold sediment, thus controlling coastal erosion, while, at the same time, absorbing nutrients and releasing it via respiration and photosynthesis. By absorbing these nutrients, seagrass also filter and purify the waters around it. “ We can’t stress enough the importance of seagrass in preserving marine life health.

Our challenge now is to preserve and grow more seagrass. We hope that this project will help bring focus on the need for seagrass planting as an important measure to ensure long-term marine sustainability,” Tagud added.

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By Manuel T. Cayon | Mindanao Bureau Chief

AVAO CITY—A riverbankreforestation project in the northern hinterland here was recognized as the best communityrainforestation initiative.

The reforestation project in the section of the Panigan-Tamugan River in the Talomo-Lipadas watershed in Baguio district was started and nurtured by a member of the barangay police.

The Interface Development Interventions (Idis) and the environmental organization Foundation for the Philippine Environment (FPE) said they recognized the regreening project on the banks of the Tamugan River, led by barangay police Jessie Josue, “for having the most number of healthy native and fruit trees flourishing beside the river.”

“We thank Idis for organizing us to join this rainforestation project. We did not think we would be successful in this, particularly because at the beginning of this project, there were only a few of us who believed in this initiative,” the Idis quoted Josue as saying when he received the award recently.

T he recognition was given

du r i ng t he t wo -yea r a ssess ment of the project at the Pamulaan Center in the University of Sout heaster n Phi l ippines, Mintal Campus.

The project was implemented

by Idis and funded by the FPE in a program intended “to increase forest cover and area through the establishment of riverbank forests along the Panigan-Tamugan rivers in Baguio district.”

The two rivers would be tapped soon as the main source of the potable water for Davao City residents. The Idis said five barangays joined in the program.

These were Tambobong, Tamugan, Gumalang, Wines and Tawantawan. The rainforestation program would allow only native dipterocarps and fruit trees to approximate the development of a primary growth tropical forest.

In Barangay Tambobong, 8 hectares of riverbanks along the Tamugan River were planted with

A row of malibago wildlings flourishes along the bank of Tamugan River. Rainforestation refers to the planting of trees native to the area in order to approximate the structure and species composition of a tropical forest. Idis photo

anitap, malibago, balogo, bakan and balete trees.

Fruit trees, like guyabano, rambutan, lanzones and cacao, were also planted to provide additional income for the project partners.

Idis Executive Director A n n Fuer tes s a id t he ef for t s o f t h e c o m mu n it i e s s h o u l d be com mended . “ Des pite t he e x t r e m e a n d e r r at i c c o n d i t ion s brou g ht a b out b y c l i mate c ha nge, whic h dest royed a sig n i f ic a nt por t ion of t he s apl i ngs, t hese com mu n it ies perse vered to en su re t he su r v iv a l of t hese n at ive t rees,” Fuer tes s a id . For its winning efforts, Idis and FPE gave a sack

of organically grown rice and additional livelihood assistance to the community participants in Barangay Tambobong.

“We are very proud of this project,” Josue said. “We may be few, like pieces of tingting [ribs of coconut leaves]. But when we came together, we became the walis tingting [broomstick], able to sweep large areas.”

“This rainforestation project may have come to an end, but we will look forward to continuing our regreening efforts. Because every native tree maturing to its potential, is another step to ensuring the green future of our watersheds,” he said.

Celebrate a low-carbon Christmas with WWF’s green holiday tips C

hristmas is the season of generosity, but it doesn’t mean we should go on endless shopping sprees and host furious binge parties every night.

The World Wide Fund for Nature (WWF) estimates that humanity is currently using the resources of 1.6 planets, meaning many of its resources are no longer naturally replenished. With the global population expected to breach 9 billion by 2050, we need to learn to minimize our consumption today.

So this holiday season, let less be more. Celebrate a green or eco-fr iend ly Chr istmas by rec ycling décor, opting for energ y-efficient lights and heeding these 10 quick tips to help minimize humanit y’s holiday carbon foot pr int. A fter a l l, a f u n, si mple a nd mea n i ng f u l per iod of ref lection is our best g ift to the Ear th.

Christmas décors at the BusinessMirror. Claudeth Mocon-Ciriaco

n Buy local products and support homemade crafts: Flown or

n Use LED Christmas lights with timers: Energy-efficient LED

shipped in from distant locales, it takes more resources for imported goods to reach our homes and offices. Patronizing local products cuts carbon emissions while boosting the local economy.

Support native handicrafts, particularly if the raw materials are sustainably sourced, like twigs, leaves and pine cones.

n Bring eco-bags when shopping for gifts: An estimated 1

trillion plastic bags are used worldwide each year and most end up in landfills. This means over a million plastic bags are used every second—and most are used only once. Please don’t add to the waste by switching to eco-friendly canvas or recycled bags.

the party’s getting too cold, you can increase your air conditioner’s thermostat by 1 degree Celsius. This will leave you feeling comfortable while cutting down the energy bill by as much as 10 percent. The ideal temperature range for homes and of f ices ranges from 24˚C to 26˚C. n Recycle last year’s wrapping paper for this year’s gifts: Print-

ed paper wrappers comprise one of the largest Christmas wastes.

Use last year’s wrappers for this year’s gifts. Old boxes, ribbons and strings can also be repurposed to minimize waste.

n Reuse old props for this year’s parties: Bring out old

(light-emitting diode) Christmas lights are up to 90 percent more efficient than regular tungsten bulbs. They’re far safer and last longer too! Remember to plug them into automated timers to ensure they’ll turn themselves off after you go to bed, saving power and ensuring that in terms of your carbon footprint, you won’t be naughty but nice.

Make your own personalized Christmas cards: About 2 billion n

Christmas cards are wasted every December. Why not craft your own cards from recycled books, magazines or packaging? A little creativity with some crayons, paintbrushes or colored pens can ease out your inner artist. It will mean more to your special someone, too.

n Use recycled décor: With some tinkering and a touch of creativity, your old jars, gifts and gizmos can be converted into nifty Christmas decorations. This is not just cheaper—you’ll even ensure that each homey gift piece is unique! n

Buy only what you’ll use:

Hosting this year’s Christmas party? Politely ask your guests to minimize leftovers and get only the food they can consume. Every year, 1.3 billion tons of food is wasted. Buy just the right amount of sturdy plastic cups and bring out a marker to assign cups. Minimize waste and your waistline this holiday season! n Set that thermostat a bit higher: Your office doesn’t have

to be like the North Pole. W hen

decor and leftover tr immings for this season’s celebrations.

In need of refreshing? A litt le glitter and paint can go a long way. W hy not ask your buddies to donate a few things for the par t y. T his a l lows ever ybody to par ticipate and spread the Chr istmas spir it!

n Observe proper cleanup after partying: Before staging

your next party, ensure there are enough bins and trash bags that are clearly marked with the right labels for proper disposal.

Try forming a “green team” and announce to everyone that this is an Earth-friendly Christmas party where their love for the planet will be appreciated.

R e m e m b e r, e v e r y o n e h a s a dut y to t he e nv i ron me nt .

T hese 10 quick tips can lessen your impact on the planet. Get more t ips on reduc i ng you r carbon foot pr int. Don’t forget to join the #W W FChr istmasPanda contest.

Have a Merry Green Christmas!

A14 Monday, December 19, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Presidential approval ratings: So what?

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he latest Social Weather Station’s (SWS) “Presidential Satisfaction” survey created the normal amount of hyperventilating on both sides of the “Duterte Divide” of supports and detractors. SWS reported a “net satisfaction” rating for the President of plus 63. SWS may be the only polling firm in the world that uses a net satisfaction rating system.

However, the SWS “net satisfaction” method tends to distort the reality. A 60 percent satisfied/40 percent dissatisfied and net of plus 20 percent hides the fact that 50 percent more respondents approve than disapprove.

After the previous SWS survey in September, The Diplomat magazine author Prashanth Parameswaran wrote 3,400 words—about seven times longer than this editorial—that 1) SWS results are somewhat flawed, 2) President Duterte’s “approval” is about the same as that of his predecessors, and 3) The rating will probably go lower—as it has done with all other presidents—as time goes by.

But, at least, Duterte has provided Parameswaran with material since he has written 16 articles on the President since the inauguration in June. One was titled “How Much Will Duterte Wreck US-Philippines Military Alliance?”, which may show a slight amount of bias at least with the headline writer.

SWS asked: “Please tell me how satisfied or dissatisfied you are in the performance of Rodrigo Duterte as President of the Philippines?” The results were 77 percent satisfied, 10 percent undecided and 13 percent dissatisfied.

While the methodology and results of the SWS survey may be all intellectual fun and games for the pundits, the global picture of these presidential/prime minister job approvals show many countries have a “love or hate” attitude.

The US is slightly different. Barack Obama’s approval rating has averaged 48 percent since he began and the average for US presidents since 1938 is 53 percent.

Japan’s Shinzō Abe is polling at 60-percent approval. Canada’s Prime Minister Trudeau is still polling about 55 percent and Australia’s Turnbull is about the same. Germany’s Angela Merkel holds a 45-percent approval rating even as her political party is losing election after election.

However, nearly 90 percent of the French disapprove of their president. A recent survey showed only 19 percent of Greeks view Prime Minister Alexis Tsipras favorably.

Hong Long’s Leung Chun-ying has seen his approval plummet with only 38 percent. Mexican President Enrique Peña Nieto’s approval rating is down to 25 percent. President Michel Temer of Brazil is polling only 13 percent, saying he is doing “good” or better at his job.

The global “Ratings winner” has to be Russia’s Vladimir Putin with— according to Levada-Center the leading sociological organizations in Moscow—84 percent approval. The global loser is impeached South Korean President Park Geun-hye at a recent 4 percent. President Duterte has one of the highest approval ratings of all elected leaders.

Trending is always most important. But the lesson from these polls may be that those in the 50/50 percent range could see a great positive or negative move with changes in policy. Those at the bottom should be asking how they could have made such a mess of their office. The leaders at the top should probably continue with what they have been doing but with the caution that in this day and age, the public is serious about leadership performance.

The significance of ‘simbang gabi’ Atty. Jose Ferdinand M. Rojas II

RISING SUN

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few nights ago, the faithful started the annual Christmas tradition of going to simbang gabi, or night masses. The nightly celebrations are held from the 16th to the 24th of December and are also known as Misa de Aguinaldo, which refers to the gift given at Christmas time. Misa de Gallo (Mass of the Rooster) is the Mass celebrated at midnight on Christmas Eve. Whenever we attend Simbang Gabi and make the sacrifice of waking up very early in the morning, we could look at the gesture as our aguinaldo, or gift to Christ, as a form of gratitude to Him for giving us His only son. Jesus Christ’s birth, which is the centerpiece of the entire Christmas tradition, is the ultimate gift

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community and as Filipinos. Some years ago during martial law, the curfew hour restriction led to the rescheduling of the predawn masses to the evening hours. Today, the Filipino faithful are able to attend the masses and are thereby encouraged to participate and understand its deeper meaning.

As Catholics we are invited to be one with the Church in its intentions for holding the nine-day tradition and to encounter God in the solemn celebrations. Let us continue the practice and celebrate the birth of Jesus Christ as we offer our thanks for this ultimate gift and for all the aguinaldos that we have received in our lives.

Finally, let us pray for peace in our country, in our families, and in our hearts. May the faithful among us always be steadfast in their principles and unwavering in faith.

Warm Christmas greetings to all of my BusinessMirror readers!

Tech upgrades just aren’t that great anymore Megan McArdle

Since 2005

BusinessMirror A broader look at today’s business

that all of us have received.

The beginnings of simbang gabi in the Philippines can be traced back to 1668, when religious missionaries brought the practice to our country.

There are a few versions of the story of its origin, but one of them is that the priests from the Spanish period agreed to hold the predawn Masses

so that farmers could hear Mass before they set off to work in the fields.

Traditionally, simbang gabi is celebrated in honor of the Blessed Virgin Mary. Pope Sixtus V, however, added the following intentions: (1) glorification and exaltation of the Holy Mother Church; (2) propagation of the Holy Catholic Faith; and (3) preservation of the newly baptized natives in the True Faith.

Today in the Philippines, the simbang gabi is celebrated “for the perseverance of the Filipino nation in the faith and the preservation of our holy religion in this part of the world.” It is good to reflect on this intention at this time of challenges and disagreements. And as we attend the early morning masses, let us ask God to help heal our nation and bless the hearts of our leaders.

Let us remember too that being able to celebrate our faith by going to simbang gabi is a privilege, a gift that is granted to us as a religious

BLOOMBERG VIEW

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his week, after four and a half years of faithful service, I finally replaced my old laptop. I will not bore you with the litany of troubles that led to this decision. The only interesting thing about my decision to replace my old 15-inch Macbook Pro is what I chose to replace it with: a nearly identical Macbook, about four years newer. But not quite the newest model. For the first time in my life, I decided to sit out an upgrade cycle and buy the older model, now being sold at a discount like day-old bread.

I won’t say that the discount played no role in my decision. But in previous years, I’d have swallowed hard and handed over the money, because I am, in the laptop world, a hardcore power user. I game on my laptop. I frequently have a dozen or so applications open, two or three of which are browsers with many tabs open. Faster processors, more memory—these things are sufficiently valuable that I’m willing to pay for them, because they make me more productive.

The trouble is, the upgrade cycle is no longer delivering those things.

The processors in the latest model were marginally faster than in the previous one, but you couldn’t add memory, which I needed more. Instead, Apple is focusing on things I care a lot less about, like making the laptop thin—even though that meant losing USB and SD card ports that I still use, and losing a lot of “play” from the keyboard. As a friend pointed out to me, Apple has become obsessed with thinness

to the point of anorexia.

But my decision is not primarily evidence of Apple making poor design decisions. Instead, it’s a lesson in the limits of the form—and the way that’s affecting upgrade cycles, and very probably, Apple’s future revenue.

For decades, we’ve been talking about “Moore’s Law”—the rule of thumb that the number of transistors on a chip doubles every 18 months. More transistors mean more processing power. And in my early years as a computer user, that mattered a great deal. Each new generation of computer delivered a massive improvement in performance— more hard drive, more memory, faster processor. Those things meant that the software that ran on those computers rapidly developed more bells and whistles that took advantage of all that new power. People who used that software found themselves forced to upgrade, because trying to run it on an old system was unbearably slow.

But we’re starting to hit the limits of Moore’s Law. As Peter Bright of Ars Technica recently wrote: “Constrained by heat, clock speeds have largely stood still, and the performance of each individual processor core has increased only incrementally. What we see, instead, are multiple processor cores within a single chip. This increases the overall theoretical performance of a processor, but it can be difficult to actually exploit this improvement in software.”

Improvements on both laptops and phones are increasingly coming from more marginal features: sharper displays, solid-state drives, better cameras, different sets of ports. In contrast, more computing power is a general-purpose improvement that provides a lot of different benefits to different kinds of users—and can force users to upgrade, as their old devices become unusably slow. Nicer accessories or thinner form factors do not necessarily trigger a stampede to the Apple store.

And we’re seeing this in upgrade cycles. My four and a half years is actually on the low side for replacing a computer; the average now is nearly six years, which of course means that a substantial number of users are waiting longer than that.

For replacing mobile devices, too, consumers are waiting longer, in part because phone companies are no longer subsidizing the phones to get you to invest in a contract, but also, I suspect, because devices are just not getting better as fast as they once were. We used to upgrade our phones every two years because the new operating systems ran on old phones as if they’d been given high doses of valium. Now we’ll

wait until the batteries won’t hold a charge—and if it were possible to replace the batteries, we might wait even longer than that, because I’m not willing to pay hundreds of dollars to get a better camera while losing my headphone jack.

And that may be the biggest reason that upgrades are slowing down. The old improvements in processing power meant that upgrades were pure upside. The new improvements outside of processing power often require tradeoffs. The latest iPhone design is thinner and more waterproof than older models.

But to get there, Apple had to lose a headphone jack that people were pretty fond of.

This hardly means that technology companies are going to go out of business. But it may well slow revenue, and in turn, slow innovation. Investing in a big overhaul every year or so makes sense when consumers were reliably swapping out their gadgets at the two-year mark; that gives you a very big market over which to defray the cost of all that R&D. As the market for each new model shrinks, companies may make each new overhaul less flashy, or alternatively, stretch out the cycles so that they’re introducing big improvements only around the time that consumers are ready to replace their last model. As Apple did with the Macbook Pro. In other words, personal computing is completing the shift from an early-innovation market, which sees massive changes in form and power every few years, to a mature market in which people treat products like cars: Gee, that feature is nice, but I can probably wait a few more years to have it.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Stereotypes are poisoning Yes, mining is ‘PPP-able’ American politics

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By William R. Easterly | Bloomberg View

was born in West Virginia and spent all of 10 days there as an infant before my family moved to Ohio. Perhaps, that’s a license for me to say why Appalachians are poor, drink too much and voted for Donald J. Trump. The best-selling and widely praised Hillbilly Elegy: A Memoir of a Family and Culture in Crisis by J.D. Vance, proceeds along those lines. But I shouldn’t single out that book: Sloppy analysis of collections of people—coastal elites, flyover America, Muslims, immigrants, people without college degrees, you name it—as become routine. And it’s killing our politics.

Three laws guide this bogus analysis of groups. First, define the group by the outcome you are trying to explain.

Second, invoke a stereotype and exaggerate it. Third, endow the group with innate permanent properties, akin to racial characteristics. Together, these errors establish a kind of collective guilt, blaming an entire ill-defined group for the failings of its individuals, even if the offenders are a tiny minority.

This is both divisive and false—and all the more toxic because of its flavor of intellectual propriety.

Let’s take each of these laws in turn.

Vance (who’s actually a third-generation Appalachian immigrant to Middletown, in western Ohio) tells how his grandparents smashed up a pharmacy and threatened a clerk who’d told his son not to play with a toy on display: “If you say another word to my son, I will break your fucking neck.” Hence, the definition: “Destroying store merchandise and threatening a sales clerk were normal to Mamaw and Papaw. That’s what Scots-Irish Appalachians do when people mess with your kid.”

When Appalachians move to western Ohio, Vance notes, “hillbilly values spread widely along with hillbilly people.” How do you know they’re still hillbillies? Because they wreck pharmacies. Defining Appalachians as those who are poor, uneducated and violent, we find that Appalachian culture causes poverty, lack of education and violence.

Ayaan Hirsi Ali wrote a memoir in 2006—Infidel—that was roughly the Muslim equivalent of Hillbilly Elegy. I respect Ali for her intelligence and courage, but question her group analysis. She defines “genuine” or “devout” Muslims by whether they support terrorism: “Every devout Muslim who aspired to practice genuine Islam—the Muslim Brotherhood Islam, the Islam of the Medina Quran schools—even if they didn’t actively support the [9/11] attacks, they must at least have approved of them....

It was about belief.”

Sadly, training in economics offers little protection against this kind of circular reasoning. Sir Paul Collier, a distinguished scholar, devoted his widely praised book on The Bottom Billion to another group defined by outcome and not much else. In a later work, Exodus, he extended his inquiry to groups of migrants from poor to rich countries, influencing debates about immigration in both the US and the UK. One insight was that “the countries now at the bottom are distinctive not just in being the poorest but also in having failed to grow.” That’s true, but it yields no more information than the initial misleading aggregation: It’s like saying, “Those at the bottom are distinctive not just in being at the bottom but also in being at the bottom.” When you order the world’s 7 billion people from richest to poorest, there will always be exactly a billion people in the bottom billion.

The second law of pseudoanalysis of groups says, reinforce stereotypes. In the case of Appalachia, these have a long history—“Deliverance” and all that. Recent fires in the Smoky Mountains aroused suspicions about the “moonshine stills of the poor, ignorant hillbillies.” This takes the badly defined group fully into the realm of caricature. (Note that when Appalachians complain about such accounts, Vance and other analysts see a flawed culture that “makes it hard for Appalachians to look at themselves honestly.”)

Group stereotypes typically have a kernel of truth, reflecting some trait which is overrepresented—but the likelihood of the trait’s occurring is then greatly exaggerated. Consider the elderly Floridian. Florida’s proportion of elderly people is indeed above the national average, but not as much as you think—17 percent are 65 or older, compared to a national average of 13 percent. Another stereotype is the heartless conservative.

In surveys, conservatives are more likely than liberals to say they don’t care about

the weak and vulnerable—but most conservatives say they do care. Poverty is higher among Appalachians than the national average, but not by much— Kentucky has a poverty rate of 18.5 percent and West Virginia 17.9 percent, compared to a national average of 14.7 percent. The typical Appalachian isn’t poor (and doesn’t trash pharmacies).

Muslims are overrepresented among the tiny number of terrorists worldwide, which leads many to wildly overestimate how likely Muslims are to be terrorists or jihadist fighters. (More than 99.99 percent aren’t.) We also stereotype terrorists as mainly attacking Americans or Western Europeans, whereas Western Europe and the US actually accounted for less than 3 percent of deaths from terrorism worldwide between 2001 and 2015. Muslim terrorists mainly attack Muslims.

“The Bottom Billion” said of its subject that the group’s “reality is the 14th century: civil war, plague and ignorance.” Over the previous four decades, 100th of 1 percent of Africans had died annually in wars. Exodus said, “Nigerians radically, deeply, do not trust each other” and “Nigerian immigrants to other societies tend to be untrusting and opportunistic.” Survey data show Nigeria to be close to the world median on measures of trust—or about as trusting as France. (Neither the original study nor the survey data say anything about “opportunism”.)

In the US we “coastal elites” are likely to condemn stereotypes when they involve immigrants, nonwhites, or religious minorities. But we’re more accepting of stereotypes that portray Southern, Midwestern, uneducated, working class whites as stupid, racist and homophobic. (You wonder why so many rejected our advice on how to vote?) On the other hand, if you’re thinking, “Speak for yourself”—you’re right! “Coastal elite” is another stereotype. We don’t all disdain Appalachia or flyover America.

The crucial point is that all these stereotypes purport to be findings. In fact, they’re the opposite: a refusal to see vast individual variation within groups.

The third and most dangerous law of pseudoanalysis of groups is to treat each stereotyped collection as a race or its near equivalent, a permanently embedded culture. The idea is that all group members have a biological or innate propensity to behave a certain way. Studies suggest instead upsurges of bad or extreme behavior by some members of such groups for historical, changeable, circumstantial reasons. There’s no evidence for innate, permanent traits.

We understand this for some groups, but not for others. We understand Floridians don’t have a biological tendency to be elderly, and that Florida wound up with more old people for reasons of history and climate. But many antiracist liberals see Appalachians as akin to an inferior race innately prone to racism.

When it comes to Muslims, there’s a receptive audience for Ayaan Hirsi Ali’s message about the 9/11 attacks: “This is based in belief. This is Islam.”

In the late 19th and early 20th centuries, terrorists were likely to be Eastern European or Russian. In the 1970s they were Irish Catholics and Protestants. In the 1980s and 1990s, Peru’s Shining Path and Sri Lanka’s Tamil Liberation Tigers weren’t Muslim.

Collier sees migrants as carriers of the persistently dysfunctional cultures they absorbed in their countries of origin. Yet, US immigration laws once discriminated against Catholics and Jews from Eastern and Southern Europe. Asian migrants used to inspire vicious xenophobia in the US; now they’re seen as model immigrants. More recent, some have started to notice that African immigrants in the US are highly educated (41 percent have college degrees, higher than any other immigrant or native racial group, except for Asians).

By Alberto Agra

PPP Lead Continued from A1

Are mineral agreements (MAs) PPPs?

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pplying the broad concept of a public-private partnership (PPP), i.e., an agreement between government and the private-sector proponent (PSP) or contractor for infrastructure and/or social services, MAs are considered PPPs. Under those two laws, mineral production-sharing, coproduction or jointventure agreements are PPPs. A mineral production-sharing agreement is an agreement where government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. A coproduction agreement is an agreement between government and the contractor wherein government shall provide inputs to the mining operations other than the

mineral resource. A JV agreement is an agreement where a JV company is organized by government and the contractor with both parties having equity shares.

Who are the public proponents?

ON the part of government, various administrative agencies, at three levels of the bureaucracy, can enter into PPPs on mining. The Department of

Monday, December 19, 2016 A15

On the part of government, various administrative agencies, at three levels of the bureaucracy, can enter into PPPs on mining. The DENR, government corporations or instrumentalities, like the Philippine Mining Development Corp., Natural Resources Development Corp. and the North Davao Mining Corp., and LGUs can enter into PPPs on mining.

Environment and Natural Resources (DENR), government corporations or instrumentalities, like the Philippine Mining Development Corp., Natural Resources Development Corp. and the North Davao Mining Corp., and local government units (LGUs) can enter into PPPs on mining. These agencies can collaborate with PSPs through mining or PPP agreements and/or regulate through the issuances of permits.

Are the BOT law and the Neda JV guidelines applicable?

For these public proponents, mining, arguably, is an infrastructure or development project that is “normally financed and operated by the public sector.” The build-operate-transfer

Moving toward improved financials Razzel Ann Vergara

DEBIT CREDIT

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remember getting mixed emotions when I was excited about finishing college and looking forward to building a career, but also scared of plunging into the world of grown-ups and competing with many other qualified candidates for a job.

That time, our family was experiencing a financial crisis adding to the pressure of immediately finding a means to earn. I was invited to several job interviews but these did not bear fruit, not because I was not good enough but because of my failing to get to the venue. After being late the first time, and with that experience—leaving the house three hours ahead of time scheduled then bumping me into different persons just to get on the bus; I never attempted to try once more. That was very awful for me because in the province, there’s no such thing like that. Therefore, I went back to the province and landed a job in the Provincial Accounting Office.

The salary offered was pretty small but it is alright with me. I’m staying with my family and do not need to worry about traffic and hurting myself every day just to get to work. But during my stay in the province, I feel that I’m not learning anything related to my being accountant. My work is for an office clerk. Luckily, I was referred by our provincial accountant and being offered a job in the city as bookkeeper of a construction company with a much higher salary, and considering the fact that I had in myself a huge responsibility, I accepted.

Since I was in the city, it opened

me to different opportunities. It gave me the time to attend to seminars of the Philippine Institute of Certified Public Accountants for my continuing professional development. It helped me to stay up to date on the newest accounting standards, regulations and laws, and kept me abreast of what is happening in the industry. As a result, I never had to worry about falling behind in knowledge or practice.

Now that I was working and independent from my family, I felt like such a grown-up young lady managing my own finances. Every payday, I would divide the money I get according to the things that needs to be paid, give my parents their share (even at times not required) and save some for emergency purposes. I became strict with myself when it comes to managing my finances. I started investing and saving in the bank. I also had the opportunity to treat myself once in a while. I remembered every single expense I incurred, even more so because I was finally financially capable.

However, as time passed by and as we earn more; we get exposed to comforts and luxuries and sometimes get spoiled by these. After years of being so tight with money, you will feel kind of liberating to indulge a little.

Insurance is an important tool for protection against different risks that can have a negative impact on your financial situation. The premiums you pay can greatly affect your monthly budget. Seek the help of a financial adviser in assessing your insurance policies so that you will not be paying too much for coverage.

When little turns to a lot, trouble comes in. Therefore, as early as we can, we should try to discipline ourselves when it comes to finances.

I would like to share some of my personal financial management system for young professionals like me. n Track your monthly expenses It is important to know how much you spend in a month whether in food, clothing, housing or entertainment. This will be useful in knowing how you spend your income and will enable you to develop a budget. n Develop a budget and be faithful to it Prepare a realistic budget according to your monthly expenses identified previously. Follow this budget and continuously track your expenses. The cycle goes on. n Make sure to allocate some amount for savings Savings will be used as emergency fund for unforeseen expenses. Always remember that sale in malls is not an emergency. n Pay bills on time to avoid penalties Prepare a schedule of when each bill is due to make sure that you don’t miss deadlines. This will avoid additional cost on your part. n Make sure to transact with legitimate financial institutions Open a checking or savings account only in Philippine Deposit Insurance Corp.-insured banks.

(BOT) law, arguably again, may be utilized even if the two special mining laws do not make express mention of the variants under the BOT law. It must also be noted that mining is not one of the projects enumerated under the BOT law and its rules.

The public proponents, except the DENR, may enter into JVs under the JV guidelines. A JV is expressly permitted under the Philippine Mining Act and the Small-Scale Mining Act. A JV can be undertaken for mining since it is an “investment activity”.

How will government select the PSP?

If under the BOT law, the PSP may be selected either through competitive selection or challenge. Under the JV guidelines, the PSP can only be chosen through competitive public bidding, not through an unsolicited proposal. However, this restriction does not extend to LGUs since the JV guidelines excludes LGUs. The PPP ordinances of LGUs shall be the governing laws for the selection of the PSP. So, friends, mining, subject to regulatory approvals and requirements, is “PPP-able”.

Before investing, make your own research about the institution you will be dealing first. n Assess your insurance policies Insurance is an important tool for protection against different risks that can have a negative impact on your financial situation.

The premiums you pay can greatly affect your monthly budget. Seek the help of a financial adviser in assessing your insurance policies so that you will not be paying too much for coverage. n Be mindful when using credit cards If your debts grow faster than you can pay, it is a sign that you should pay off all your debts and stop using your credit cards. You should not be living beyond your means. n Take advantage of free money If offered a retirement or health contribution plan by your employer, make sure to pay the contributions.

Remember that maximizing your contributions diminishes your taxable income.

Financial planning is often overlooked and ignored. Implementing your own personal financial management will help improve your financial situation. Planning takes you from where you are right now to what you would like to be in the future. Begin planning today and ensure your financial future.

Razzel Ann Vergara is a graduate of BSA at Polytechnic University of the Philippines-Lopez, Quezon, Batch 2014. Passed the CPA Licensure Examination on October 2014 and currently connected with Vinhar Construction and Marketing.

This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

Social media and the importance of teaching history

By Clarita C. Salvador, PhD

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he proliferation of fake news sites, especially in social media, will have an adverse impact on our historical records if we are not so careful. As news reports become part of a nation’s history, people must not give fake news a chance to alter what really happened.

History is very essential to us because it records the past, which could help shape the present and the future of a nation. Without historians, for example, we would not know much about our ancestors, heroes, past leaders and what they have done for the country, including their mistakes.

Teaching history to students is

Teaching history to students is very important in shaping our own identity as Filipinos. By learning from the works of Jose Rizal, the heroics of Andres Bonifacio, the bravery of other Filipino heroes and the battles they won, we are given a good glimpse of the past.

very important in shaping our own identity as Filipinos. By learning from the works of Jose Rizal, the heroics of Andres Bonifacio, the bravery of other Filipino heroes and the battles they won, we are given a good glimpse of the past. By also learning why some Filipinos became traitors to their own country, we get a chance to guide our children in making good

decisions so they will learn not to commit those kinds of mistakes.

There are issues that pundits say should not be a concern of teachers or students. A most recent example is the burial of the late-President Ferdinand E. Marcos at the Libingan ng mga Bayani. Telling our university students not to attend rallies for or against the burial of Marcos because “they don’t know the issue and they were not born yet during the martial law years” is not wise. Students should be encouraged to voice out their own opinion.

Certainly, the Marcos burial at the Libingan ng mga Bayani is a controversial issue. But to discourage the youth from participating in the debate is wrong. We should encourage them to

air their own opinion, whether Marcos deserves a hero’s burial.

This is why the subject of history or araling panlipunan must be retained in our elementary and high-school curriculum. The issue of conducting debates on whether to retain or remove this important subject is a no brainer. Instead, we should focus on helping our primary and secondary history teachers so they can teach well about our past. That’s the best way to pass valuable knowledge to the next generation. It pays to remember that people with no sense of history have no strong identify. Without our identity, we are nothing as a nation.

The author is Principal 2 at Camalaniugan Central School in Cagayan province

2nd Front Page BusinessMirror

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ocal steel makers are again appealing for swift action from Customs Commissioner Nicanor E. Faeldon, as they aired their apprehension over the delays in the destruction and release of some 69 containers of substandard steel angle bars that were seized and auctioned off by the Bureau of Customs (BOC) in the past two months.

The Philippine Iron and Steel Institute (Pisi) said these steel shipments, with approximate weight of 1,545 metric tons (MT), were seized due to misdeclaration.

“These angle bars were also denied the necessary Import Commodity Clearance [ICC] after they were found to be substandard, meaning they pose danger to the lives and properties of the public if they are not destroyed according to the law and then sold in the market as commercial length steel angle bars,” Pisi President Roberto M. Cola said.

VPharma, Luchu Enterprises, All Top Trading and RMCE Metal won the bidding authorized by BOC-Port of Manila’s Jennifer Lagbas and BOC-Manila International Container Port’s (MICPs) Meliton Pascual for these contraband that were consigned to Archer Blaze Marketing, Skylink Import-Export Inc., Thunder Birds Trading, Scarab Trading, Aluace Corp., Venvi Agro Ind’l Ventures, Dai-Ichi Electronics and Procycle Industrial Inc. The Department of Trade and Industry’s (DTI) DAO 5:2008, or “The New Rules and Regulations Concerning the Issuance of ICC under the Product Certification Mark Scheme of the Bureau of Product Standards [BPS],” clearly stated in Section 9.2 that “all import shipment denied the requisite Import Commodity Clearance shall not be disposed of in the domestic market in any manner. These shall be destroyed under the supervision of BPS or DTI Regional/Provincial office or reexported by the importer to the country of origin.” Up to now, however, the destruction of these angle bars is yet to happen, triggering fears that these substandard steel bars could land in the domestic market uncut in time for the start of the construction season in March.

This apprehension is not without basis, as before this, two shipments from Thunder Birds Trading consisting of 25 containers and three containers from GTB Industrial Network Inc. were auctioned off by the BOC-POM and MICP, respectively, but were not destructed under the watch of BOC District Collector Mario Mendoza, Cola pointed out.

“This is why the steel industry is calling the attention of Faeldon, Lagbas and Pascual, to make sure this illicit practice of winning bidders and some corrupt BOC officials will not continue.

“Allowing substandard imported angle bars to be sold in the market does not only harm the economy, it also endangers the lives of Filipinos—something President Duterte abhors so much,” Cola said.

Uber’s Mideast rival valued at $1 billion on Saudi STC deal

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overnmen - con trolled Saudi Telecom Co. (STC) will invest $100 million in Middle Eastbased ride-hailing app Careem Networks FZ, giving the fouryear-old company a valuation of about $1 billion.

The board of STC, as the Saudi company is known, approved the purchase of a 10-percent stake in Dubai-based Careem on December 15, according to a statement on the Saudi Stock Exchange on Sunday. STC will fund the deal from internal resources. The company is already an investor in Careem through its venture capital arm, STC Ventures, according to Careem’s web site.

Careem has been working with Credit Suisse Group AG to raise as much as $500 million, people familiar with the matter said in September, adding that the company could be valued at more than $1 billion after the funding. Careem raised $60 million last year from investors including buyout firm Abraaj Group to expand in the Middle East, Africa and Asia.

The investment is “in line with the company strategy to

invest in the innovative digital world,” STC said in the statement. Saudi Arabia’s Public Investment Fund, which also holds a 70-percent stake in STC, invested $3.5 billion in San Francisco-based Uber in June.

Investors in Careem’s earlier funding rounds include Dubaibased Wamda Capital and Saudi Arabia’s Al Tayyar Travel Group.

More money is flowing into Middle Eastern technology startups as investors look to profit from the region’s high economic growth and smartphone penetration rates. Online marketplace Souq. com was one of the first companies in the region to reach unicorn status—a technology start-up valued at $1 billion—with a fundraising round last year, people familiar told Bloomberg in March. Amazon.com Inc. is in talks to buy the online retailer, people familiar with the matter told Bloomberg in November.

Careem, which started in 2012, operates 47 cities in Turkey, Pakistan and across the Middle East and North Africa, according to the STC statement.

Bloomberg News

Govt urged to hike tariff on rice imports

FILE PHOTO

STEEL MAKERS SEEK HELP OF B.O.C. CHIEF L

www.businessmirror.com.ph

Monday, December 19, 2016

By Jovee Marie N. dela Cruz

T he for mer president, who backed the proposed lifting of the rice QR, said the revenues collected from taxes and customs duties can be used to assist rice farmers.

“I am for lifting [the QR]. I think lifting would be more sound. But we have to raise taxes and custom duties and then they can earmark the increase in tax collection to the promotion of rice industry,” Arroyo told the BusinessMirror.

Earlier, an official of the National Economic and Development Authority (Neda) said the agency would recommend to the President a tariff ranging from 40 percent to 50 percent for rice imports once the QR is lifted.

While some economic managers have been vocal about scrapping the rice import quota, the Cabinet and the President have yet to agree on whether the government would finally go for lifting the QR. Rep. Josephine Y. Ramirez-Sato of the Lone District of Occidental Mindoro, a vice chairman of the

House Committee on Economic Affairs, said the government’s economic managers should make up its mind whether it would seek an extension of the rice import quota.

Also, Sato said amending Republic Act (RA) 8178, which retained the QR on rice, must be a priority of the current administration if it plans to extend the nontariff trade barrier as it will expire on June 30, 2017.

However, a measure amending RA 8178 has yet to be filed in the 17th Congress.

Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur said in a statement that the Duterte administration should help palay farmers boost their yields and cut production cost first before scrapping rice-import quotas.

If the QR is finally lifted, Villafuerte said, “palay farmers will be at the losing end” because their produce cannot compete with cheaper rice imports.

“Is there any guarantee that the entry of cheap rice imports

would lower the price of rice in the market? The government should provide safety nets to our farmers by, among others, helping them cut production, as well as distribution, costs and other postharvest expenses,” he added.

One way to help farmers, Villafuerte said, is to abolish irrigation fees and restructure the unpaid ones to make it easier for farmers to pay off their debts, while keeping the high tariffs on rice imports.

Sato agreed with Villafuerte, saying the extension of the rice-import quota is “a must” for farmers.

The government must also step up its efforts to roll out a program to help rice farmers, considering that the rice QR would expire in six months, she said.

“If they are going to seek an extension of the rice-import quota, I suggest they do it now. If not, they should come up with a concrete plan and put in place programs that will shield our farmers from cheap, imported rice flooding the market with the lifting of the rice-import quota,” Sato said.

The lawmaker said the government should deviate from the business-as-usual mode and put in place more safety nets for farmers, particularly those with small landholdings.

She said direct support to farmers in the form of seedlings and fertilizer subsidies; free irrigation; capacity-building programs and training to improve production, packaging of rice products; and access to emerging market chains are essential.

The government, she said, should also construct more postharvest fa-

GDP . . .

GDP growth.

“Drivers are public spending, exports are picking up, consumption is still strong, especially the coming holidays. On the supply side, agriculture is expected to improve because of the rains, manufacturing is also picking up,” Pernia earlier said.

Pernia also said the LegislativeExecutive Development Advisory Council (Ledac) will meet on Janu-

ary 11 to discuss various bills that the Duterte administration wants to prioritize.

“We are going to look at priority bills. There’s a long list of priority bills. There’s a lot,” he added.

The Ledac provides policy advice to the President and integrates the legislative agenda of the administration with the national development plan, among other functions.

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@joveemarie

he government should raise taxes and customs duties if it really wants to lift the quantitative restriction (QR) on rice, which is set to expire next year, Deputy Speaker Gloria MacapagalArroyo of Pampanga said.

Continued from A1

GDP. The Philippines’s GDP remains consumption-driven with 70 percent being accounted for by private and public spending.

In the third quarter, household consumption accounted for five percentage points of the 7.1-percent

cilities, which include dryers, milling and storage “We should ensure better yield and increase farmers’ incomes,” Sato added.

According to her, governments from where the Philippines import their rice provide subsidy to their farmers, enabling them to produce quality rice at cheaper cost.

W hile consumers would generally benefit from cheaper rice imports, she said local farmers would not be able to compete against their counterparts in neighboring countries because of the high cost of production.

Destruction caused by flood and typhoons, she added, aggravates the situation of small farmers with limited capital.

Sato said she is worried that the lifting of the QR on rice would force farmers to shift to planting other crops, or worse, give up farming.

“The unrestricted or unregulated importation of rice would not only affect farmers, but would also slow down agricultural production, affecting the country’s economic growth,” she said.

“By now, the Department of Agriculture [DA] should have a plan; put more safety nets that would shield our farmers from this looming crisis,” Sato added. Sato said the DA should come up with ways to make the business of rice farming more profitable.

Upon the Philippines’s accession to the World Trade Organization (WTO), the country was allowed to impose the QR on rice for 10 years.

When it expired in 2004, the Philippines was able to extend it until 2012. Manila obtained another extension in 2014.

The Neda is the principal secretariat of the Ledac.

The Neda organizes the council meetings by determining the agenda, as well as inviting the participants to the meeting.

The secretariat is responsible for preparing the agenda folder and the discussion flow for the President and for distributing materials during the meeting.