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A broader look at today’s business

n Sunday, January 24, 2016 Vol. 11 No. 108

P25.00 nationwide | 3 sections 16 pages | 7 days a week

Congestion worsens at Naia; 4 terminals at bursting point C

week ahead

ECONOMIC DATA PREVIEW Peso

n Previous week: The local currency hit a downslide during the week over worries on economic developments in other economies. The local currency started the week at 47.65 to a dollar to depreciate by two centavos on the following trading day at 47.67 to a dollar. The largest decline was seen on Wednesday, causing the peso to depreciate to 47.89 to a dollar. The lowest point of the peso was on Thursday at 47.94 to a dollar. The peso ended the week at 47.805 to a dollar. n Week ahead: While the Bangko Sentral said volatilities are likely to persist in the local financial markets due to turbulent developments in the international markets, BSP Governor Amando M. Tetangco Jr. said the country has the tools to ride out these headwinds. In addition, the BSP also said the peso weakness is seen to be “very temporary,” owing to other factors affecting the economy.

GDP

n Previous quarter: The country’s economic growth rebounded to 6 percent in the third quarter of the year. Among the three major economic sectors, services gave the highest contribution to the GDP growth in the third quarter with 4.2 percentage points. This was followed by industry, with 1.8 percentage points, while agriculture contributed a mere 0.03 percentage points. n Fourth quarter of 2015: Economists forecast a cooling of the country’s GDP in the last three months of the year— making the ambitious growth target significantly out of reach for the year. Earlier in the week, Moody’s Analytics said the country’s growth is set to hit 5.9 percent in the fourth quarter of the year. This is slightly lower than the 6-percent growth posted in the third quarter of the year. If fulfilled, the country’s full-year GDP growth will likely average at 5.7 percent in 2015, lower than the 6.1-percent average in 2014. Bianca Cuaresma

By Lorenz S. Marasigan

ONGESTION at the Ninoy Aquino International Airport (Naia) worsened in 2015— with its four terminals reaching past their maximum rated capacity for the first time—as more and more international and domestic flights were launched throughout the year, despite the lack of capacity-building projects for the air hub.

36.68M Number of passengers the Ninoy Aquino International Airport handled last year

Data collected by the Manila International Airport Authority (Miaa) showed that the airport handled 36.68 million passengers last year, 7 percent higher than the 34.09 million passengers the year before. Broken down, the airport handled 19.51 million domestic passengers last year—around 2 million more than the 17.17 million it served in 2014. International passenger count was almost flat. See “Congestion,” A2

Growth in near term seen by central bank

By Bianca Cuaresma

HE country’s local growth momentum remains positive in the near term, despite prospects of a slowdown in emerging markets in the region, as early indicators show sustained strong economic activity and optimism from the country’s companies, the Bangko Sentral said. In its most recent inflation report, the central bank said prospects for domestic demand remain intact, according to the early economic sectors the central bank is monitoring. This means that the country is set to stand out from the general weakness projected for the region. In particular, the BSP said

PESO exchange rates n US 47.8680

Son of Cambodian leader has ambition

trends in higher-frequency demand indicators point to a positive growth momentum in the near term, with vehicle sales sustaining their double-digit growth on account of continued marketing efforts and financing programs. The composite purchasing managers’ index, meanwhile, remained above the 50-point expansion threshold. The BSP added that business and consumer confidence sustained an optimistic outlook, supporting the view that underlying domestic demand remains firm due to sustained credit growth and notable improvements in employment conditions. The painted picture for the local economy is contrasting to the central bank’s global economic prospects—which were softened on See “Growth,” A2

A S H I N G T O N —T h e youngest son of Cambodia’s prime minister has an easy smile and conciliatory air. Hun Many’s genteel manner contrasts with the ruthlessness that has characterized his father’s 30

years in power, but that does not mean he is not ambitious. The 33-year-old lawmaker told The Associated Press that he also wants to become the Southeast Asian nation’s leader one day. But Continued on A2

Hun Many, son of Cambodian Prime Minister Hun Sen, speaks during an interview in Washington on Thursday. The 33-year-old lawmaker said he also wants to become the Southeast Asian nation’s leader one day. AP/Manuel Balce Ceneta

BSP sees peso weakness ‘very temporary’

HE Bangko Sentral is optimistic that the weakness of the peso will be “very temporary,” and will not affect inflation in the short run. At the sidelines of the briefing on the central bank’s fourth-quarter inflation report, Francisco G. Dakila Jr., BSP managing director for the Monetary Policy Subsector, said the weakness of the peso is not seen to last and spill over to the prices of consumer goods in the country. Data from the PDS Group showed that the peso neared 48 to a US dollar during the weak, owing largely to concerns on global developments, such as oil, and the lingering concerns over the general slowdown in most of the economies in the world. The local currency largely depreci-

ated during the week, hitting its weakest point on Thursday at 47.94 to a dollar. The peso, meanwhile, ended the week with a sigh of relief, as markets moved to appreciate the local currency, ending the week at 47.805 to a dollar. And even if the peso depreciates, Dakila said the economy is still seen to benefit from the weaker value of the local currency. “There are countervailing impacts on the economy, because weakness of the peso will also benefit the recipients of overseas workers’ remittances…will have a positive impact on the purchasing capacity or power of OFW [overseas Filipino workers] families so that’s also going to be supportive of consumption,” Dakila said. Remittances continue to be one of the

top pillars of the Philippine economy due to their ability to keep the country’s dollar stock afloat, despite external volatilities and ramped up consumer spending in the domestic side. As such, concerns were raised when remittances started to post volatile growth rates in 2015. Latest data from the central bank showed that the total growth rate of cash sent by Filipino migrant workers recovered in November 2015, but data show that the actual inflow of remittances in dollar value remained weak, even when OFWs are supposed to be sending more money during the time to fund family expenses for the holiday season. If the peso is set to weaken, the weakness in the volume of remittances expressed in dollars can be offset when exchanged to peso terms. Bianca Cuaresma

n japan 0.4064 n UK 68.1018 n HK 6.1250 n CHINA 7.2751 n singapore 33.4250 n australia 33.3250 n EU 52.0804 n SAUDI arabia 12.7546

Source: BSP (22 January 2016 )

NewsSunday BusinessMirror

A2 Sunday, January 24, 2016

Single Asean visa eyed to boost regional tourism By Ma. Stella F. Arnaldo | Special to the BusinessMirror

HE Association of Southeast Asian Nations (Asean) is close to implementing a single Asean visa that will allow any visitor to use a single document to travel to any memberstate in the region. This is one of the key points agreed upon by the Asean tourism ministers and executives during the Asean Tourism Forum (ATF) in Manila from January 18 to 22. The Asean single visa is a way to further promote the region as a single tourist destination and boost its visitor arrivals to 123 million by 2020, and 152 million by 2025. Last year there were 102 million visitor arrivals in Asean. “One example in the offing that will make travel to and within the region more fluid, is the single Asean visa; that’s very important and we’re getting on our way finally. Some countries, in fact, within Asean already accept each other’s visa. [This is a single visa] for everyone. If you get a visa to Singapore, that is a valid visa in the Philippines.” He added that the new regional visa has the support of all the Asean members; “it’s just that we’re all at various stages of preparedness. So in principle, everyone agrees that it will actually come to pass.” He also said the Philippines has been at the forefront of cham-

pioning the single Asean visa. The single Asean visa is much like the Schengen visa protocol implemented in the European Community, but there are no mechanics yet for former’s implementation. The Department of Tourism chief explained that the difficulty in drawing up the mechanics “are technical, not political. For instance, ‘how do we match our data system to yours?’” It was noted during the news briefing that each member-nation has a different way of counting their visitor arrivals. But Tourism Secretary Ramon R. Jimenez Jr. expressed optimism that the plan will still come to fruition “within the first five years of the [Asean Tourism Strategic] Plan [ATSP],” or by 2021. The tourism ministers and executives unveiled the ATSP on Friday at a news briefing, which was preceded by the awarding of the first Asean Homestay Standard certificates and the Asean Green Hotel Standard Awards. Reading from the joint statement of the ministers, Jimenez

said these Homestay Awards, given out to 31 homestay organizations and providers across the region, will “enhance local quality of life to generate income, support local culture, arts and crafts business, encourage restoration of local and historic sites, and foster nature conservation efforts.” Under the ATSP, the targets of the region include: n GDP contribution of Asean tourism could increase from 12 percent to 15 percent; n Tourism’s share of total employment could increase from 3.7 percent to 7 percent; n Per capital spending by international tourists could increase from $877 to $1,500; n Increase the average length of stay of international tourist arrivals from 6.3 nights to 8 nights; n The number of accommodation units could increase from 0.51 units per 100 head of population in Asean to 0.60 units per 100 head of population; n The number of awardees for the Asean tourism standards could increase from 86 to 300; and n The number of communitybased tourism value chain project interventions could increase from 43 to over 300. Friday also saw the signing of a historic accord between the Asean and Japan, Korea and China (Asean + 3), seeking to promote more travel within the region. With the theme “One Community for Sustainability,” the ATF 2016 was attended by 457 buyers and 1,000 exhibitors with 467 booths, as well as 83 international and 100 local mediamen.

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Congestion… Last year saw local carriers expand their connections to Legazpi City, Albay; Port Moresby, Papua New Guinea; Auckland, New Zealand; Doha, Qatar; and Fukuoka, Japan. Turkish Airlines and Ethiopian Airlines also started their Manila to Istanbul and Addis Ababa flights, respectively. This brings the total number of airlines operating at the Naia to 40 with more than 90 destinations worldwide. The airport has a 30-million annual passenger capacity. It means that the airport can function optimally at that point. It also has a maximum capacity of 35 million passengers per year, which means that 2015 saw the air-transport facility barging past its highest point. The volume of passengers last year, however, was a bit lower than the prediction made by the Japan International Cooperation Agency (Jica) that the airport will handle 37.78 million passengers in 2015. This news comes as a welcome development to the government, as this means that tourism revenues also saw a spike in 2015. But such an event also means that Naia will have to increase its capacity to accommodate the predicted increase in passenger volume this year, which, in turn, will result in a more congested airport in Manila. “Airport developments in the previous year served as the foundation for the steady increase of passengers,” Miaa General Manager Jose Angel A. Honrado said, listing his office’s projects last year. Among others, flight operations were enhanced with the reactivation of Runway 31 for departures which allowed flight movements to take place concurrently on both runways. “The extension of Taxiway N [November] further decongested the taxiway—particularly at the intersection of the runways— and facilitated a more flexible handling of international operations,” he added. The rehabilitation project of Terminal 1 also widened passenger movement areas with the redesigning of the terminal interiors. “The Miaa gives its commitment to be a key player in sustainably welcoming tourists to the country. We continue to build on

Continued from a1

developments from last year, as management brings in more projects this year for the benefit of passengers,” Honrado said. Some projects in store for the year include the upgrading of the air-conditioning systems at Terminals 2 and 3, as well as the introduction of transportation network companies to the airport. The government is bent on adopting whatever the Jica will recommend as a solution to the airport mess in Manila. This involves the construction of a billion-dollar airport 20 minutes away from Naia. Transportation Secretary Joseph Emilio A. Abaya said he has received a prefeasibility study from Jica that lists the possible locations of the new airport. The study pinpointed two Cavite-based locations, called Sangley 1A and 1B. As to the official location that will be endorsed by Jica, the transport chief can only speculate. However, whichever the site will be the Department of Transportation and Communications will forward it to the National Economic and Development Authority (Neda) Board. Sangley 1A is in the same site as the Navy Station in Cavite. The other one is near the central part of Manila Bay, between the military base and a reclaimed area. The first option will cost both the government and a private sector partner less than the second choice. The first one only costs $10 billion to build, while the other one is pegged at around $13 billion. The future airport will boast of four runways, which can handle 700,000 aircraft movements per year, and will have a rated capacity of 130 million passengers annually. The deal is expected to be implemented under the government’s key infrastructure program, mixed with funding from official development assistance. Commercial operations of the new air hub should start by 2025. The Department of Tourism targets of generating $4.6 billion in tourism revenues, attracting 6 million tourists, and creating 3 million jobs by 2016. Such figures will allow the tourism industry to contribute 6.35 percent to the GDP.

Growth… Continued from a1

CAHYADI: “Public investment is growing twice as fast as the average pace seen in the last 10 years...we reckon that fullyear investment growth would still come in a strong 8.8 percent.”

the anticipation of the slowdown in emerging-market economies. “The subdued economic outlook for emerging markets dampened global growth prospects to which a number of central banks responded by easing their monetary-policy settings to support domestic economic activity and stave off deflationary pressures,” the central bank said. The Philippine Statistics Authority is set to release the fourthquarter GDP report on Tuesday. In a special commentary on the Philippines’s growth prospects, Singapore-based DBS Bank economist Gundy Cahyadi said recent data is encouraging for the country, at which he forecast a growth of 5.7 percent in the fourth quarter of the year. This puts the average growth of the country for the entire 2015 at 5.7 percent. For this year, Cahyadi is also optimistic that the country’s growth will recover, bucking the trend in emerging markets, as recent data remain encouraging for the Philippines. “Nonfood consumption continues to lead overall consumption growth. The anticipated fall in crops production may weigh on spending in the rural areas in early 2016. But this is likely to be more than offset by robust foreign remittance flows,” Cahyadi said. “Note also the positive spillover impact from the political campaigns ahead of the elections. Public investment is growing twice as fast as the average pace seen in the last 10 years. Even after penciling some easing in early 2016, presumably amid the election, we reckon that full-year investment growth would still come in a strong 8.8 percent,” he added.

Son of Cambodian leader has ambition Continued from a1

he says he should be judged by his performance, not his family name. “Yes, I was born as his son, but it doesn’t mean I don’t have to perform, I don’t have to deliver,” he said in an interview during a visit to Washington last week. “It is not about judging me as Hun Many or [as] the son of the prime minister, but more on what I do. And I leave that to the public and the Cambodian people.” Hun Many expressed deep admiration for Prime Minister Hun Sen and his achievements, bringing stability and a measure of prosperity to impoverished Cambodia, but put a little distance between himself and some of his father’s threatening rhetoric. He sounded far less confrontational than his father toward the political opposition, which has faced growing intimidation in recent months. Last October two opposition lawmakers were savagely beaten outside parliament by members of a pro-government mob. Opposition leader Sam Rainsy, who has long had acrimonious relations with Hun Sen, is living in exile again to avoid arrest in what critics say are politically motivated legal cases.

Yes, I was born as his son, but it doesn’t mean I don’t have to perform, I don’t have to deliver.”—Hun Many

Hun Many described the lawmakers who were beaten by the mob as his friends. He said the attack against them was “unacceptable,” although he declined to identify who were the alleged perpetrators, saying that was a matter for the courts. He also said that he expected Rainsy would be allowed to contest the 2018 elections despite his legal woes, but didn’t explain how. Hun Sen last month declared he would “rather cut off my right hand than sign a pardon for Rainsy.” Hun Sen took power in 1985 at the head of a Vietnamese-backed government in the aftermath of the genocidal Khmer Rouge regime that was responsible for the deaths of an estimated 1.7 million Cambodians. He has used a combination of guile and brute force to crush his political rivals during his long career, including a violent coup in 1997. There is little question about his continued dominance, and Hun Many said his father will lead the ruling Cambodian People’s Party into the next elections in 2018.

But declining support for the party at the last, flawed national vote three years ago has fueled speculation about who might eventually succeed him. Attention has focused on his three sons, who all hold senior positions. The eldest son, Hun Manet, 38, who was educated at West Point, leads Cambodia’s counterterrorism department and was long perceived to be most likely to follow in his father’s footsteps. Second son, Hun Manith, 34, was promoted to become head of military intelligence in September. But Hun Many, who leads a Cambodian youth movement linked to the ruling party, is another emerging possibility. He has acquired a higher profile since becoming the nation’s secondyoungest lawmaker in 2013. He has spent about half of his life outside the country, living and studying in France, Australia and the US, where he got a masters degree from the National Defense University in Washington. AP

NewsSunday

www.businessmirror.com.ph • Editor: Dionisio L. Pelayo

BusinessMirror

Marcos laments: One year after, no one convicted for Mamasapano Massacre yet

EARLY one year after the socalled Mamasapano Massacre of 44 Special Action Force (SAF) commandos by Moro rebels and outlaws on January 25, 2015, Sen. Ferdinand R. Marcos Jr. protested that none of the suspects have yet been convicted for the crime. Marcos griped that “even with clear evidence backed by videos” that recorded the mass killing of SAF commandos, the perpetrators said to be members of the Moro Islamic Liberation Front and the Bangsamoro Islamic Freedom Fighter have yet to be haled to court. Marcos suggested granting official citation to all the members of the SAF, who took part in the fatal mission, that also bagged a wanted international terroristbomber Zulkifli bin Hir, alias Marwan. Meanwhile, President Aquino has approved the awarding of the Medal of Valor to two officers of the 44 SAF commandos who were killed in the Mamasapano encounter. Director General Ricardo Marquez, National Police chief, said the medals would be handed over by President Aquino to the families of the officers during the National Police’s 25th foundation anniversary at Camp Rafael Crame, Quezon City, on Monday. “On Monday we are going to celebrate the 25th National Police anniversary and, at the same time, commemorate the heroism of SAF 44. Incidentally, that is also the day the SAF 44 dedicated their lives

Sunday, January 24, 2016 A3

DOE starts review of power plants’ maintenance schedules

By Lenie Lectura

HE Department of Energy (DOE) has started reviewing the power plants that are scheduled for maintenance shutdowns this year to make sure that the country has enough power supply throughout the year.

MARCOS

for peace in our country,” Marquez said. Marquez added that the President approved only on Thursday the awarding of the highest honor to Senior Insp. Gednat G. Tabdi and Police Officer (PO2) Romeo Cempron for their role in the Mamasapano operation. Tabdi was the leader of Team 1 of the 84th Special Action Company (SAC). Even when he was already wounded, Tabdi still led his team to accomplish its mission. Cempron, on the other hand, was the lead gunner of the main body of the 55th SAC. When his fellow commandos were already dying, he sacrificed himself as a human shield in order for survivor PO2 Christopher Lalan to move to safety. Butch Fernandez with PNA

“We are conducting another review. It’s a constant review, actually. We need to be sure that supply won’t be affected by the scheduled shutdown of these power plants,” Energy Secretary Zenaida Monsada said in an interview. Eight power plants in Luzon with a combined capacity of 4,547.8 megawatts (MW) are scheduled to go offline this year. The majority of these facilities will shutdown in the July-to-December period. This means power supply—at least in the areas being served by the Manila Electric Co. (Meralco)—could prove tight in the second half of the year. Meralco distributes electricity mainly in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna, Quezon and Pampanga. As of September last year, Meralco has 5.7 million customers. Based on the latest 2016 plant outages schedule provided by Meralco, more than 700 MW of capacity from three power facilities in Batangas are on scheduled outages in August. These are the 190-MW Ilijan combined-cycle power plant 2; the 330-MW Calaca coal-fired thermal power plant 1; and the Santa Rita combined-

cycle natural-gas plant Module 20, with a generating capacity of 255.7 MW. For September almost 600 MW of powergenerating capacity coming from Santa Rita Module 30 (265.5 MW) and Calaca 1 would be shaved off from the grid. The 647-MW Sual 1 Power Station in Pangasinan will also be out in October and November this year. Lawrence Fernandez, utility economics of Meralco, said these are among the plants with which the distribution-utility company has contracts. He said Meralco has no information yet on forced outages. “We are adjusting some of the forecast, especially the supply side, to make sure we have enough supply for election,” Energy Executive Director Irma Exconde commented. Exconde said the department would also need to review its forecast on the impact of El Niño to the hydro power plants, especially in Mindanao. The agency is also keenly looking at the supply situation “in the second quarter. That’s where the demand is high,” Exconde said. Aside from the scheduled maintenance

shutdown of power plants, the DOE is also strictly monitoring the power plants eyed for completion this year. Exconde said it is also important that the target commercial operation of these new power plants are followed. Based on DOE data, a total of 2,445 MW of new power-generating capacity would be distributed across the entire power grid. Of the total 1,135 MW will come from the new power plants that are scheduled for commercial operation this year. For the Visayas and Mindanao, at least 555 MW and 755 MW of new capacity, respectively, are expected to come online. In Luzon the new power facilities includes 300 MW from Southwest Luzon Power Generation Corp.; 135 MW from South Luzon Thermal Energy Corp.; 150 MW from SMC Consolidated Power Corp.; 100 MW from First Gen Corp.’s (FGC) Avion power plant; and another 450 MW from FGC’s San Gabriel power plant. There are around 555 MW committed power projects for completion in the Visayas this year, which includes the 150 MW of Panay Energy Development Corp., Palm Concepcion Power Corp.’s 270 MW and the 135.5 MW solar power plant of Soleq. Some 755 MW of capacity, meanwhile, is expected to come online for Mindanao this year, including 200 MW from Sarangani Energy Corp.; 150 MW from San Miguel Corp.; and 405 MW from Filinvest Development Corp.

SundayV

Busine

A4 Sunday, January 24, 2016 • Editor: Angel R. Calso

editorial

Once more: Attaining our goals

or some time now, we have been repeating the old mantra of adopting a plan for the acceleration of the growth and development of our economy. On the penultimate day of the year that just passed, we wrote: Let us lay out the vision of a Philippines that we want for ourselves, where prosperity and inclusiveness prevail; a vision we can bring into realization within our lifetime.

We said that beginning 2016, we can plan on increasing our GDP by 7.5 percent per year and our population by no more than 1.5 percent per year. This will mean doubling our GDP per capita in 12 years; increasing it from $2,760 in 2014 to $5,500 in 2026. Now, as it turns out, our neighbor Vietnam has gone beyond envisioning a future for itself. It is currently adopting a carefully crafted down-to-earth five-year plan that will lift its GDP per capita of $2,171 in 2015 to $3,200 to $3,500 by 2020. We have no difficulty anticipating that Vietnam will realize its goals. Sadly, however, we discover that we cannot make a similar anticipation with respect to the Philippines. Why is that so? We will not make this issue as an occasion for Philippine bashing, but a few observations on why success of plans cannot be assumed for the Philippines, while it can be taken for granted for Vietnam, seem in order. We start from the general acknowledgment that under the leadership of their government, the Vietnamese people work hard for the betterment not just of themselves but of their country. We see this in their record of development since their expulsion of the imperialists in 1975; slowly but steadily improving their livelihoods, strengthening their economy and their country. In the Philippines the capitalist ethic with all its ugliest forms, without its redeeming features, seems to have taken hold—with the great business entities focusing on the strengthening of their competitive predominance, whatever corporate social responsibility says. With respect to the government, here is where the dog is buried. High-ranking government officials seem dedicated only to their self-aggrandizement, basically their enrichment while in public office. On plan implementation, no government makes any commitment to the achievement of targets; no department pledges to contribute its share of the required effort; no leaders of commissions ever give a guarantee of fidelity to commitments. As a result, all excuses for failure are accepted. No rewards given; no punishments meted out. Even without Vietnam’s model of plan implementation, we can successfully pursue our plans for accelerated development. How can we do it? Answer: Go back to first principles—understand our goals, and do our best to reach them. If these principles appear to be simple, it is because they are. Pursuing them simply means our officials and leaders doing their regular and normal duties efficiently and on time; eschewing indolence, buck-passing, red tape and, above all, graft and corruption. Let us lay down clear and simple plans for the growth and development of our economy, and work hard to attain them.

WB says 96.1% of cigarette packs in PHL bore mandatory tax stamps

he World Bank has reported that more than nine of every 10 cigarette packs sold in the country already bear the mandatory tax stamps required under the Internal Revenue Stamps Integrated System (IRSIS) of the Bureau of Internal Revenue (BIR) on tobacco products. In its latest report posted on the Department of Finance (DOF) web site, World Bank data showed that over 96.1 percent of the cigarette packs in retail outlets comply with the IRSIS, which the BIR began to implement in April last year. At the end of this month, the World Bank is expected to come out with a full joint report with the DOF on the successful implementation of the “sin” tax reform law. In all 13 brands monitored by the BIR last November 29 in various outlets, at least 90 percent bore such stamps. These included brands LA, Boss and Plaza, with 100-percent compliance, while the 10 others—Hope, Mark, Marlboro, Mighty, Winston, More, Camel, Champion, Fortune and Philip Morris—had over 90 -percent stamps on their cigarette packs.

Database

By Cecilio T. Arillo

Gospel

Sunday, January 24, 2016

In the provinces, the BIR noted 100-percent Irsis compliance in Bulacan, Pampanga and Pangasinan; 93.5 percent in Quezon province; 90.2 percent in Negros Oriental; 85.7 percent in Laguna; and 66.7 percent in Cebu and Nueva Vizcaya. Because of tight BIR monitoring, Metro Manila represented the higher percentage compliance at 99.8 percent, the World Bank report said. The BIR, early this year, started its strict surveillance and monitoring on cigarette manufacturers by requiring them to install their own CCTVs in their factories and through the IRSIS. Mighty Corp., a wholly-owned Filipino cigarette maker operating for the past 70 years, was the first to install a closed-circuit monitoring system—from production to withdrawal of finish products—in compliance with the BIR’s requirements. BIR Commissioner Kim S. JacintoHenares earlier said the World Bank’s preliminary report indicated that, as far as the implementation of the IRSIS on cigarettes was concerned, “there’s always room for improvement, and we should always be on guard.” The BIR chief had nonetheless also acknowledged that there remained unscrupulous entities that

nasmuch as many have undertaken to compile a narrative of the things which have been accomplished among us, just as they were delivered to us by those who from the beginning were eyewitnesses and ministers of the word, it seemed good to Me also, having followed all things closely for some time past, to write an orderly account for you, most excellent The-oph’ilus, that you may know the truth concerning the things of which you have been informed. And Jesus returned in the power of the Spirit into Galilee, and a report concerning Him went out through all the surrounding country. And He taught in their synagogues, being glorified by all. And He came to Nazareth, where He had been brought up; and He went to the synagogue, as

do not follow the law. The BIR has relentlessly campaigned against untaxed cigarettes, confiscating more than 42,000 packs of locally made and imported cigarettes in Batangas without tax stamps. The previous raids also resulted in the seizure of illegal products in Nueva Ecija, Cavite, Cebu and Zamboanga del Sur last June. “The BIR, through its authorized representatives, shall conduct onthe-spot surveillance of cigarette products either in the place of production, storage facilities, or in the domestic market, as the case may be, through the use of mobile verification devices issued for the purpose of ensuring compliance with the IRSIS,” a ranking revenue official said Revenue officials said excise-tax collections from sin products continued to rise as a result of tax rates adjustments under Republic Act 10351, or the sin-tax reform law. In essence, the new restructured excise-tax system resulted in higher cigarette prices and, thus, discouraged smoking, while, at the same time, collecting more revenues for health care. To reach the writer, e-mail cecilio.arillo@ gmail.com.

His custom was, on the Sabbath day. And He stood up to read; and there was given to Him the book of the prophet Isaiah. He opened the book and found the place where it was written, “The Spirit of the Lord is upon Me, because He has anointed Me to preach good news to the poor. He has sent Me to proclaim release to the captives and recovering of sight to the blind, to set at liberty those who are oppressed, to proclaim the acceptable year of the Lord.” And He closed the book, and gave it back to the attendant, and sat down; and the eyes of all in the synagogue were fixed on Him. And He began to say to them, “Today this scripture has been fulfilled in your hearing.” — Luke 1:1-4; 4:14-21

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, January 24, 2016 A5

What a sheet of paper

LL this time, we thought that the Commission on Audit (COA) investigates the propriety of public money that is spent—and possibly misspent, but never of money that is not spent, because money that is not spent cannot be misspent.

Free Fire

By Teddy Locsin Jr.

The nonexpenditure of money lies entirely within the unquestionable discretion of the executive that proposed it, the legislature that appropriated it and, again, of the executive that spends it—or does not. But a COA audit report chastises Transportation Secretary Joseph Emilio A. Abaya for not spending money at all on a toilet-upgrading program for train stations, ports and airports to the terrible tune of P351 million, which was not spent— and, therefore, not misspent. This is ridiculous. The body to complain should be the crapping public, which must sit on toilet seats—if any—that the rest of the public drenched with their piss. It is the public that should complain but only to Congress; and it is Congress, not the COA, that should complain of this failure to spend, but only to the Department of Budget, which

may not have released the sum, and last to Abaya, who may have had good reason not to spend it. One, is that no amount of expenditure will toilet train the public— be it American, Filipino, Chinese, British, Mexican or Stanford University, where I encountered a toilet so stuffed to the brim with crap, it couldn’t be flushed down at all. Only the Japanese are neat in discharging their waste in public toilets. If the COA will chastise for money that was not misspent because it wasn’t spent, then it must praise money that is spent, unless the money was misspent or, worse yet, overspent on a world-class parking building. It is as simple as that. But, being an election year, everybody is running for something, especially for a share of media attention, kasi kulang sila sa pansin. What a sheet— of paper, of course.

Putin’s reputation turns radioactive

By Marc Champion | Bloomberg View

T isn’t often that a judge in one country accuses the president of another—a superpower, no less—of participating in murder. On Thursday, however, the chairman of a lengthy UK inquiry into the 2006 poisoning of a former Russian intelligence operative, Alexander Litvinenko, did just that. The words that Sir Robert Owen used to conclude his report are so extraordinary, they’re worth quoting: Taking full account of all the evidence and analysis available to me, I find that the Federal Security Service (FSB) operation to kill Mr. Litvinenko was probably approved by Mr. Patrushev and also by President Putin. Owen was referring, of course, to Russian President Vladimir Putin, as well as to Nikolai Patrushev, then head of the FSB and now secretary of the Russian security council. The judge also said he was

“sure” Litvinenko was killed by the radioactive polonium-210 isotope found in his body, and that this was administered by two ex-FSB colleagues he met for tea in London’s ritzy Mayfair district. Litvinenko’s murder is one of the most publicly investigated in history, so much of what’s in the report isn’t new. But to have a recently retired British High Court judge say he is “sure” (for which read “beyond a reasonable doubt”) about the guilt of Andrei Lugovoi and Dmitry Kovtun is a sobering moment for the UK—and should be just as serious for Russia. Since the murder, Putin has personally honored Lugovoi, who has been turned into a national hero and senior member of the Russian parliament. Just as widely accepted outside Russia is the finding that the two men were working on the orders of the FSB. But to say the hit was “probably” ordered by Putin takes quite a leap. It’s a finding that Owen based on testimony from witnesses he acknowledges to have been biased, and from the historian Robert Service,

about the way in which Russia’s hierarchy works. There are two things to say on this. The first is that Owen seems to have been more willing than he should to believe everything told him by Litvinenko’s shady circle of ex-FSB friends. He relies, in part, on their accounts to establish the Kremlin’s motive for murder. These include a book about a series of 1999 apartment bombings around Russia that triggered the second Chechen War and helped propel Putin to the presidency. Litvinenko and his friends maintain these weren’t carried out by Chechen terrorists, as generally believed, but by the FSB. Much remains unexplained about those bombings, but the case has hardly been proved to a level that could be used in any court of law. Even so, Owen says: On the evidence I heard, the book was more than a political tract—it was the product of careful research. Professor Service’s view was that the two men had “credibly investigated” the

issue and, although their contentions about it had not been “proved 100 percent,” he considered they were more likely than not to be accurate. He said, “The Felshtinsky and Litvinenko book piled up the evidence pointing a very damaging finger at the FSB and its involvement in those explosions.” The second thing to say is that most people outside Russia will, like the judge, conclude in their gut that Putin approved Litvinenko’s assassination. It has come to fit their expectations of what Russia and its leader do. Already, Russia has dismissed the findings as politically motivated and warned of “serious consequences” to its relations with the UK. Yet, the only way Putin will persuade the rest of the world to accept his word over Owen’s is to send Lugovoi and Kovtun to face trial in the UK. Nothing else will do—and nothing is less likely to happen. Equally, although UK Home Secretary Theresa May told parliament on Thursday that Russia would face a tough response, it won’t. May at

first resisted holding an independent inquiry, precisely because it would highlight the UK’s inability to punish Russia for committing murder in the streets of London. Putin shouldn’t be too smug, though. The story of the last years has been one of his steady descent from a leader welcomed and even feted around the world, to one whose hand is shaken only reluctantly. The belief is that he is a man who orders assassinations in supposedly friendly nations, sends troops to invade supposedly fraternal neighbors and denies everything when those troops shoot down a passenger airliner. These concerns probably won’t hurt Putin domestically. Yet, they are forcing him ever further into the defensive crouch of an ordinary dictator, one who may be popular for now, but will never be able to afford the risk of genuine elections because of the retribution he might face on losing office. It is a sad story, considering the possibilities Putin had—and for a while seemed to grasp—when he came to power 16 years ago.

suburbanites—Bergen County in New Jersey, Fairfax County in Virginia, Westchester County in New York, San Mateo County in California—are classified as urban because of their high-population density; while jobs in big Sun Belt cities, such as Atlanta, Houston and Phoenix, are classified as suburban, because those cities are in less-densely populated counties. This can’t be helped—Kolko’s method of divvying up counties seems like the most sensible one available—but it may result in some undercounting of urban job growth because, for example, struggling New York suburbs get counted as urban, while growing Houston doesn’t. Another question Kolko raises that none of the data can really answer yet is whether the momentum

shift since 2007 represents a secular change or is mainly evidence of the cyclical aftermath of a housing bubble. A large share of job growth from 2000 to 2007 was driven by a house-building boom concentrated in suburbs and exurbs. Since that boom went bust, those counties have been nursing an economic hangover, but most will presumably get over it eventually. The list of job-growth champions in my first chart offers some support for this view. Colorado and Texas didn’t go through the same real-estate bubble and bust that many states did, and their suburbs have kept adding lots of jobs. The boom in employment in New York City’s outer boroughs—all of which, except Staten Island, are, by US standards, quite urban— seems like another phenomenon entirely. High real-estate prices in Manhattan have been helping drive population growth in Brooklyn and Queens, in particular, since the early 1990s. But all the employment figures in this column are based on where the jobs are, not where the workers live. Which job categories drove the growth in Brooklyn? Not manufacturing—despite all the borough’s makers of artisanal this or that, the sector actually shed 3,791 jobs between June 2007 and June 2015. And it can’t be urban farming, because agricultural employment doesn’t show up in the county payroll data.

Want a job? Go to Brooklyn By Justin Fox | Bloomberg View

Since writing this column on Thursday, I have learned something that casts New York City’s employment numbers in a new light and makes Brooklyn’s growth look a little less impressive. At the beginning of 2015, about 170,000 local-government jobs disappeared from Manhattan and were divided among the other four boroughs. What appears to have happened is that New York City’s public-school system and some other local agencies began to report employment by where people worked rather than where the main office was. Without this sudden local-government boost, Brooklyn’s job growth would be in sixth place among US counties of 250,000 people or more. Among counties of 1 million people or more, Brooklyn remains No. 1.

HE new job engine of the US is, get this, Brooklyn. Yes, it is widely known that the most populous of New York City’s boroughs has been undergoing an economic renaissance. But it’s still something of a shock to learn that Kings County, a.k.a. Brooklyn, population 2.6 million, has seen faster job growth since 2007 than any other county of significant size in the nation. The Bronx, Queens and Staten Island aren’t doing badly either. So when it comes to creating jobs during the current economic recovery, the leaders have been suburbs of Houston, Dallas and Denver, Austin, Texas, and its suburbs, San Francisco and…the outer boroughs of New York City. New York County, also known as Manhattan, was nowhere near the leader list, with only a 0.07-percent annualized job growth since 2007. Manhattan still accounts for more jobs than the

other four boroughs combined (2.3 million to 1.7 million), but almost all of New York City’s much-vaunted recent employment growth has been occurring a bridge, tunnel or ferry away. I got all this wonderful data from Jed Kolko, a veteran real-estate economist who was trying to answer the question of whether job growth in the US really has shifted from suburbs to cities. He was reacting, in part, to a study released last year by the Portland, Oregon, think tank City Observatory that showed what seemed to be a sea change after 2007. City Observatory got these numbers by examining individual census blocks in metropolitan areas, and grouping them as in the city center if they were within a 3-mile radius of the center of the central business district of the biggest city in the metropolitan area. Employment data on these census blocks was only available on a consistent basis from 2002 through 2011, hence the limited time frame. Kolko wanted to get both a longer view and a more up-todate one, so he looked instead at county-level jobs data, which is available through the middle of 2015 and all the way back to 1981. He wrote a fascinating blog post about what he found (and a follow-up on wages). Kolko’s data clearly shows a shift in momentum related to the one that City Observatory found. The

urban counties saw slight job losses (a -0.04-percent annualized growth rate) from 2000 to 2007, and modest gains (0.44 percent, annualized) from 2007 to 2015, while job growth slowed in suburban counties. But the rate of job growth was still higher in the suburban counties than the urban ones. There are issues with this county data, some of which City Observatory’s Joe Cortright raised in a post responding to Kolko. The main one is that Kolko’s division of counties into urban, higher density and lower density doesn’t match City Observatory’s city center-versusperiphery divide, or with common understanding of what’s a city and what’s a suburb. East Coast and West Coast counties whose residents think of themselves as

A6 Sunday, January 24, 2016

NewsSunday BusinessMirror

‘Malacañang promised too much to MILF’

By Manuel T. Cayon | Mindanao Bureau Chief

AVAO CITY—Malacañang is to blame for “promising too much” to the Moro Islamic Liberation Front (MILF) should the failure of Congress to enact the Bangsamoro basic law (BBL) become the effective recruitment cause for followers of the Islamic State (IS), which claims to have gathered a small following from the mostly young population of the Moro land, a social scientist said.

“The BBL would now become the rallying point for those who don’t really believe that the government could carry out its promise on bringing peace to Mindanao, even as the armed movement among them has agreed to try the peace process,” said Aries A. Arugay, executive director of the Institute for Strategic and Development Studies, and who also teaches political science at the Diliman campus of the University of the Philippines. “Now that President Aquino is nearing the end of his term, many congressmen would probably just sit down as a new president takes over the problem of a more discontented, and probably more angry Moro population,” he said. For advocates of war against the government, “this should be a very

strong argument to tell those who believe in the peace process that they were all wrong all along for towing the line of Malacañang.” “The failure to pass the BBL would be the best recruiter for the Isis [Islamic State of Iraq and Syria],” he added. Arugay said the Aquino administration could never force representatives from Luzon to take a serious look at the problem in Mindanao because of their own concern with their respective constituencies, which has repeatedly resulted in the failure to have a quorum to decide on the BBL. Although the leaderships of both chambers of Congress have announced that the BBL was still up for approval, legislators, particularly members of the House of Representatives, continue to be ab-

sent from sessions. The government Office of the Presidential Adviser on the Peace Process (Opapp) has also said that it was not giving up. “Even if we experience difficult challenges in pursuing the passage of the BBL, both parties will pursue this peace process,” said Al Julkipli, a member of the legal team of the government peace panel. “No one is giving up. Both parties are still working toward achieving the objectives of the peace process, which is to pass a meaningful BBL that [will] address the two main problems [of keeping security and improving governance] in Mindanao,” Julkipli said. “If these two problems would be significantly addressed, we believe the entire Philippines would ultimately benefit. That is why we are still continuously coordinating and lobbying with the legislators. We are always ready to provide our support and technical assistance in defense of and in explaining the contents of the BBL in its original form.” Last year the Opapp also raised

similar appeal to Congress, to pass the BBL or risk heightening extremism among a section of the Filipino Muslims in Mindanao. Julkipli was in the provincial capitol of Lanao del Sur in Marawi last week and told a multisectoral audience that “the BBL could still be passed by Congress, despite the limited time remaining before it adjourns for the election campaign.” The Opapp also said that Centrist Democratic Party Rep. Rufus B. Rodriguez of Cagayan de Oro, has announced that the House had set the voting on the bill on January 27. Rodriguez is the chairman of the House Ad-Hoc Committee on the BBL. “We have set the voting on Wednesday. As long as we have a quorum, the voting will push through,” Opapp quoted Rodriguez as saying. Julkipli added that regardless of what happens to the BBL, “[w]e should remain calm. We should approach this in the most active and most passionate way, in the most peaceful way that we can.”

No one is giving up. Both parties are still working toward achieving the objectives of the peace process, which is to pass a meaningful BBL that [will] address the two main problems [of keeping security and improving governance] in Mindanao.”—Julkipli

Barangay chairman will soon administer oaths

HE House of Representatives recently adopted a Senate-approved measure empowering 42,000 barangay chairmen to administer the oath of office to any government official, including the President of the republic. The lawmakers unanimously voted to adopt the Senate Bill 2693. It will be now transmitted to the Palace for President Aquino’s signature. Under the bill the following officers also have the authority to administer oaths: vice president; members and secretaries of both

42,000

Barangay chairmen to administer the oath of office to any government official Houses of Congress; members of the judiciary; secretaries of departments; provincial governors and lieutenant governors; city mayors; municipal mayors; bureau directors; regional direc-

tors; clerks of courts; registrars of deeds, other civilian officers in the government whose appointments are vested in the president and are subject to confirmation by the Commission on Appointments; all other constitutional officers and notaries public. Liberal Party Rep. Salvio Fortuno of Camarines Sur said the bill will give elected officials an appropriate choice on who among the public officials would administer one’s oath of office. “This is in recognition of the very important role of the barangay chairmen in the political struc-

ture of gover nment,”Fortuno said. The measure seeks to amend Section 41 of the Administrative Code of 1987, as amended, by clearly providing that barangay chairmen will now be clothed with the authority to administer the oath of office of public officials. “While this measure will break the long standing tradition where the president takes his oath before the Chief Justice, it will also give due recognition to the untiring support extended by the punong barangays to the President,” he said. Jovee Marie N. dela Cruz

www.businessmirror.com.ph

House panel OKs taxi passengers’ rights bill

HE House Committee on Transportation endorsed for plenary approval last week a measure establishing taxi passengers’ rights. Libera l Par t y Rep. Cesar Sarmiento of Catanduanes, chairman of the House Committee on Transportation, said the bill providing the taxi passengers’ rights aims to protect the commuting public, foreign or national, tourist or local, from the discourteous and unprofessional conduct of some taxi drivers. Under the bill the taxi passengers shall have the right to direct the route, or expect the most economical route, except where such route will endanger the lives of the occupants or will cause damage to the taxi; and pay the rate exactly as posted in the meter, subject to other government-sanctioned fees. It said that taxi passengers shall have the right to be given the exact amount of change; be issued a printed official receipt in accordance with the requirement of the Internal Revenue Code and applicable regulations issued by the Bureau of Internal Revenue; refuse multiple hiring; a quite or silent atmosphere throughout the trip upon request and decide on the orientation of air-conditioning and lighting systems inside the taxi. The bill mandates that the driver should dress properly. In the case of taxi companies, their drivers shall wear complete uniform and have company identification cards. In addition to the above requirements, the Land Transportation Franchising and Regulatory Board (LTFRB) shall issue an official identification card to all taxi drivers containing the driver’s name and picture and the taxi operator’s information and contact numbers. Any sanctioned ID must be prominently displayed inside the taxi within view of the passengers. The measure said the license number of the taxi and emergency numbers for assistance by the National Police and other concerned agencies should be prominently displayed on the side door or in any other conspicuous place within the taxi. Also, the bill provides that a

taxi equipped with a liquefied petroleum gas (LPG) or compressed natural gas (CNG) fuel system must display a current Motor Vehicle Inspection Report issued by the Land Transportation Office. A sticker marked “LPG” or “CNG” issued by the LTFRB must be posted on every taxi equipped with an LPG or CNG fuel system, positioned in a clearly visible location as close as practicable to the front and rear registration plates. The bill said that every taxi operator shall ensure that each unit of taxi operating under his or her name is equipped with a functioning automatic door-lock system. The central lock system of every taxi must be disabled to allow the passenger to open the doors at any time without the interference from the driver, with the exception of the rear left door of the taxi which the driver may set on child-lock mode. The bill added that the taxi passengers’ rights as enumerated in the act, as well as remedies the procedures available to the passengers as promulgated by the LTFRB, shall prominently be displayed inside the taxicab. The measure said a taxi passenger who is aggrieved for violation of any of the rights enumerated may file a complaint against the driver or operator of the taxi with the LTFRB, which shall conduct the investigation or seven working days after the adjudication under the rules that it may provide. In addition to the penalties imposed by any applicable existing law or regulation, the bill said a fine of P1,000 and suspension of driver’s license for a period of seven calendar days for first offense, a fine of P3,000 and suspension of driver’s license for a period of six months; for second offense and a fine of P5,000 and suspension of driver’s license for a period of one year. With respect to the operator who acts in violation of the applicable provisions of the same section, the same amount of fine shall be imposed, the measure said. For violation of the other provision of this act, the measure said a fine ranging from P1,000 to P5,000 shall be imposed for every violation at the discretion of the LTFRB. Jovee Marie N. dela Cruz

Delegates get guide, virtual Shell holds oil-spill response drill help in IEC 2016 app

ELEGATES to the International Eucharistic Congress (IEC), scheduled from January 24 to 31, get a handy guide to the biggest ecclesiastical gathering in Cebu with the InnoPub-powered IEC 2016 mobile app, made available for free by Smart Communications Inc., in partnership with the Archdiocese of Cebu. “We are pleased to introduce to the pilgrims and participants to the 51st IEC this digital communications angel to safely guide and respond to the needs of all who are here during these days of the congress. For this reason, we thank our communications partners PLDT, Smart and InnoPub Media for helping make your stay in Cebu pleasant and safe,” said Msgr. Joseph Tan, Cebu Archdiocesan spokesman and 51st IEC media liaison officer. “Smart is happy to support the Archdiocese of Cebu in helping enhance the experience of the IEC delegates while they are in Cebu. Aside from IEC-related information, the IEC app also includes a directory of important contact numbers, as well as listings of restaurants, hotels and other destinations in the province that they can visit,” Smart Public Affairs Group Head Ramon Isberto said. IEC overview, updates and live streaming IEC 2016 app, which can be downloaded for free via Google

Play Store, provides a background on the congress as an international gathering that aims to reestablish awareness on the central role of the Eucharist in the life and mission of the Catholic Church. The mobile guide has sections devoted to the theological and pastoral reflections scheduled all throughout the conference week in January and event speakers, as well as carry day-today updates of the different activities.

FFICIALS from the Shell Tabangao Refinery and Osec Arat (Oil Spill Expertise Center–Asia, Russia and Australasia Team) recently led a multiagency oilspill response drill that involved 75 key authorities from both the government and the private sector in Batangas City. T he e xerc i se w a s he ld to test the response capability of Shell and its partner agencies in using local and regional resources in mitigating a Tier-2 incident that could affect the waters and shoreline of Batangas City. “We want to test how well we work together on the common operating platform, which is the Incident Command System [ICS],” said Jodi Nypuik, Osec Regional Response manager. ICS is a standardized on-site management system designed to enable effective, efficient incident management by integrating a combination of facilities, equipment, personnel, procedures and communications operating within a common organizational structure. “We commend Shell for initiating this kind of activity. It is crucial that we integrate ICS process in a government setup with that of a private entity to ensure a cost-effective res-

SHELL Tabangao Refinery Incident Command System works closely with partner agencies to come up with a sound accident action plan in response to a given scenario by using the Unified Command System.

ponse,” City Disaster Risk Reduction and Management Office (CDRRMO) Chief Rod de la Roca said. The drill was spread over two days, focusing on exercise introduction, ICS 300 setup and scenario briefing on the first day. The actual emergency-response exercise for a simulated oil spill was held on the second day. Participants from the govern-

ment included officers from Coast Guard, Bureau of Fire Protection, CDRRMO, City Environment and Natural Resources Office, City Planning and Development Office and representatives from the shoreline communities of Batangas City. Waterborne Industry Spill Equipment-Philippines cooperative, a collaborative effort of the oil industry

players for Tier-2 response, also rendered its expertise during the exercise. Shell has had no oil spill in the 52 years of its refinery operations in Tabangao. The company ensures preparedness for oil-spill incidents through Osec—a global center of expertise that develops oil-spill mitigation plans, relevant trainings and exercises, among others.

Sports BusinessMirror

Sunday, January 24, 2016 A7

Top assistant Lue takes over

CAVS FIRE BLATT I

NDEPENDENCE, Ohio—Even after wins, and there were a bunch of them, the Cavaliers didn’t celebrate. Everything was too easy for them, way too easy. Loaded with talent, they’re lacking chemistry and cohesion. A championship roster without championship heart. David Blatt took the fall. The second-year coach, who guided the Cavs to the National Basketball Association (NBA) Finals in 2015 and had them sitting atop the Eastern Conference standings this season, was shockingly fired on Friday by General Manager David Griffin. Griffin didn’t think the NBA titlechasing Cavaliers were handling prosperity, expectations or acting like a championship team under Blatt, who was 83-40 in less than two seasons. Griffin saw a team going in the wrong direction. “Sometimes you can win games in this league in the regular season and get worse,” Griffin said at a hastily arranged news conference at the team’s practice facility. “We were regressing over a period of time. I’m in our locker room a lot, and I knew that there’s just a disconnect there right now. “I know that sounds crazy when we’re sitting with a 30-11 record. I understand that. But we were 30-11 with a schedule that was reasonably easy. And I’m judging a lot more than wins and losses.” Griffin said he did not consult superstar LeBron James or any players before making the move to dismiss Blatt, who was surprised to learn he had been dismissed after going 8340 in two seasons. Griffin also met with owner Dan Gilbert, who supported the move. “Over the course of my business career I have learned that sometimes the hardest thing to do is also the right thing to do,” Gilbert said. “Our ownership group supports David Griffin’s decision.” Blatt will be replaced by top assistant Tyronn Lue, who was hired as the team’s associate head coach shortly after he came

to Cleveland. Lue will make his debut on Saturday night when the Cavs host the Chicago Bulls. Griffin stressed that Lue is not an interim coach and said the team is discussing a contract with him. “He has the pulse of our team,” he said. Blatt’s firing stunned Dallas Coach Rick Carlisle, president of National Basketball Coaches Association. “It’s just a real shocker,” Carlisle said. “[Blatt is] one of the greatest coaches in European history. The ironic thing about all this is that he adjusted and adapted to the NBA game in my opinion, much quicker than any of us ever could have adjusted and adapted to the European game. He did a tremendous job just from a strategic standpoint. If you look at his record, this is bizarre.” As social-media networks hummed with speculation and opinion about James’s role the team’s inner workings, Griffin said he made the decision with the basketball staff—not the star. “I had a conversation with ownership where I got their approval to make this move. I’m not taking a poll. My job is to lead the franchise and to lead an organization where it needs to go,” Griffin said. “That’s what I’m tasked with doing and that’s what I did. I didn’t ask anybody’s opinion on the team. I’m in the locker room. I’ve done this a long time and I know what it’s supposed to feel like. I didn’t need to ask questions.” Blatt’s dismissal came one day after the coach was defensive before and after the Cavs beat the Los Angeles Clippers. Blatt had been bothered by criticism his team received after a 34-point loss to the defending champion Golden State Warriors earlier this week. A person close to James said that the four-time NBA Most Valuable Player was told

of Blatt’s firing about one hour before reports of the move surfaced. The person spoke on condition of anonymity because of the sensitivity of the situation. Blatt seemed to be adjusting to the NBA game following his well-documented struggles in 2015—James’s first season back in Cleveland. One of the most successful coaches in European history,

Cleveland Cavaliers give David Blatt the pink slip after less than two seasons. AP

NBA RESULTS Charlotte 120, Orlando 116, OT Utah 108, Brooklyn 86 Boston 110, Chicago 101 L.A. Clippers 116, New York 88 Houston 102, Milwaukee 98 Toronto 101, Miami 81 Oklahoma City 109, Dallas 106 Golden State 122, Indiana 110 San Antonio 108, L.A. Lakers 95

Blatt was feeling good about the way his team was performing amid overwhelming expectations. However, there was a discord he couldn’t seem to fix. The relationship between James and Blatt was a running saga last season as the Cavs got off to a disappointing 19-20 start. However, the two worked through their differences and won the Eastern Conference title. Despite injuries to NBA All-Stars Kevin Love and Kyrie Irving, the Cavs took the Warriors to six games in the NBA Finals before losing the title. Following Thursday night’s win over the Clippers, Blatt shared a moment with James at his locker. The pair shook hands and smiled at each other, without any hint that a coaching change could be forthcoming. Moments earlier, Blatt was on the defensive, given the Golden State blowout. He argued that although the Cavs were prohibitive favorites to return to the finals, they deserved more credit than they were getting. “It’s about my team,” Blatt said. “It’s about my guys and I don’t like it. I don’t like it at all. My guys are out there fighting for the Cavaliers and doing the best job they can in a tough NBA—very tough— especially because this is a team that night after night has a target on its back. Blatt is the third Cleveland coach to be fired in the past four seasons. AP

San Miguel Beer’s Jay-R Reyes (left) and Vic Manuel of Alaska jockey for position. PBA IMAGE

BEERMEN TRY TO STAY ALIVE

AN Miguel Beer Head Coach Leo Austria knows his Beermen are on a difficult situation at this stage. They are a loss away of handing the Philippine Cup trophy to Alaska, which holds a 3-0 advantage when they clash on Sunday in Game Four of the best-of-seven championship series at the PhilSports Arena in Pasig City. But they will just keep on competing even if June Mar Fajardo remains on the sideline due to a left knee injury. San Miguel and the Aces meet at 5 p.m. with the latter eyeing their 15 Philippine Basketball Association (PBA) title and avenging their finals loss to the same team last season. “This is definitely a tough challenge for us,” Austria told BusinessMirror on the eve of their Game Four encounter. “I just told them to treat the game with more urgency. I always keep on motivating the players but they are not showing it up to know,” he added. Fajardo, who is expected to receive his third straight, and fourth overall, Best Player of the Conference (BPC) trophy prior Game Four, might be in uniform for Sunday’s match according to Austria. His knee support was also fitted during the team’s practice on Saturday but Austria insisted that even if Fajardo requested to play, he will not oblige. “Naging player din tayo. Alam ko kung ang player kapag nawala ng 10 days because of injury, most likely mahihirapan siyang makabalik agad,” Austria said. “And I don’t want to risk his (Fajardo)

Jr. NBA/Jr. WNBA lines up clinics nationwide

BULLPUPS DOMINATE TIGER CUBS

ATIONAL University (NU) moved three wins of an outright Finals berth with an 82-58 blasting of University of Santo Tomas (UST) in the University Athletic Association of the Philippines (UAAP) Season 78 juniors basketball tournament at the Filoil Flying V Arena on Saturday. The Bullpups, who are already assured of a postseason slot, led by as much as 31 points to extend their unbeaten run to 11 games. John Lloyd Clemente had 14 points, while Justine Baltazar chipped in 13 points and 12 rebounds for NU. De La Salle-Zobel assured itself of a playoff for a semifinals spot with an 85-74 win over University of the Philippines (UP) Integrated School, while defending champion Ateneo overcame a slow start to beat University of the East, 96-58, to seize solo third.

Far Eastern University-Diliman tied Adamson University in fourth place with a 60-55 victory. The Junior Archers, who were led by Aljun Melecio’s 22 points, improved their record to 9-2, still holding a two-game lead over the Blue Eaglets (7-4) in the race for the second twice-to-beat slot in the Final Four. Jolo Mendoza fired 25 points as Ateneo broke away from a slim four-point lead in the second half to rebound from last Wednesday’s loss to De La Salle-Zobel. Jun Gabane shot 18 points, while Kenji Roman had a double-double effort of 12 points and 15 boards as the Baby Tamaraws joined the Baby Falcons at 6-5, bolstering their semis hopes. The Tiger Cubs are virtually out of the running with a 3-8 slate in sixth spot, while the Junior Maroons (2-9) and the Junior Warriors remain at the bottom of the standings.

NAGAI, BJORKLUND SHARE PLO HONORS

IKO Nagai and Rowena Bjorklund turned in a pair of strong finishes to dominate their respective divisions in the Philippine Ladies Open Golf Championship presented by Champion Infinity at the Midlands in Tagaytay on Friday. Nagai, who took control with an 88 in the first round but reeled back with a 92 on Thursday, saved her best for last, firing an 84 to turn back erstwhile leader Stella Barnes for the Class A crown, while Bjorklund closed out with a second 90 to run away with the Class B diadem. The Japanese shotmaker pooled a 264 to post a five-shot romp over Barnes, who faltered with a 92 after an impressive 85 for a 269, while Marilyn Reyes rallied with an 88 to snatch third place at 272 in the 54-hole championship organized and conducted by the Women’s Golf Association of the Philippines. Catalina Neish and Soon Hak Jung shot identical 93s to finish tied for fourth at 279, while Hee Sun Kim ended up sixth at 280 after a 98 and Karen Buenaventura fought back with an 88 for a 281. Bjorklund, on the other hand, outclassed the Class B field, pooling a 283 for a whopping 16-point win over Sun Ok Park, who shot a second 97 for a 299, while Melody Trovag placed third with a 311 after a 99 and Maricel Galisim ended up fourth with

a 319 after a 108 in the event backed by Filinvest Alabang Inc., Metro Pacific, Shell, Philippine Daily Inquirer, Taishan Insurance Brokers Inc., MEC, Jewelmer, G&W Clubshares Inc. and Vermogen. Nagai and Bjorklund, thus, joined amateur ace Princess Superal in the podium finish after the former US Girls’ Junior champion held off Yuka Saso and The Country Club (TCC) teammate Pauline del Rosario to snare the Open championship. Superal squandered an overnight four-shot lead, but cashed in on her rivals’ miscue on the final hole to capture the crown with a 214 after a 73, her fifth straight after closing out the 2015 season with four victories abroad then opening this year’s campaign with an emphatic victory in the Hong Kong Ladies Amateur Open two weeks ago. Saso bogeyed the final hole and settled for a 70, missing forcing a playoff at 215, while del Rosario ended up with a 72 and finished tied for third with TCC teammate Mikha Fortuna, who also matched par 72, at 217 in the event supported by Tagaytay Highlands Ladies Chapter, Alabang Ladies Golf Chapter, Canlubang Ladies Chapter, Forest Hills Ladies Circle, Manila Golf Ladies Chapter, URC-C2, Midlands Golf Club, Rockport and Impact Golf magazine.

career. He’s not only the future of San Miguel and PBA. He’s also the future of Philippine basketball,” he added. Alaska is not only one win away of winning its first All-Filipino crown since 2000 but the franchise is about to handle the Beermen their worst beating in the finals. According to the PBA records, San Miguel has never been swept not only in the finals but also in the semis. And if the Beermen do not get their acts together, they are headed on that disastrous feat. But Head Coach Alex Compton knows sweeping San Miguel won’t be easy and they need to bring their energy to win again. “I expect Game Four to be a tough, grind it out game. Obviously we will try and come with intense defensive pressure and energy for 48 minutes. That’s just what we do,” Compton said. “We will need to really sustain that pressure and energy, as both teams are tired from the trip to Lucena and don’t have much time to recover. But if we can be energetic and sharp, I think we can have a great game,” he added. Arwind Santos has been a disappointment for San Miguel in the series, averaging just over seven points per game for a player who is expected to take charge after Fajardo was downed by a knee injury. Vic Manuel is giving the Aces a superb performance in the first three games of the series and was in fact named the Best Player of the Game by the television panel. Joel Orellana

College of Saint Benilde’s Janine Navarro (center) scores against the defense of Nikka Mariel Dalisay (8) and Joyce Sta. Rita of San Sebastian College. Stephanie Tumampos

CSB ONE WIN AWAY FROM HISTORY C

OLLEGE of Saint Benilde (CSB) is one win away of writing its Cinderella story in the National Collegiate Athletic Association (NCAA) women’s volleyball. Facing the thrice-to-beat San Sebastian College (SBC) in the finals, the Lady Blazer pushed the Lady Stags to their downfall after winning two in a row, including the 25-23, 21-25, 25-22, 25-16 win on Friday at the FilOil Flying V Arena in San Juan City, to inch closer for their first-ever NCAA crown. And for CSB Head Coach Macky Carino, it’s now time to make history and claim the throne. “I told them that it’s about time to make history,” Carino said. “A history that we will be the first team to overcome a thrice-to-beat disadvantage [in NCAA volleyball] and at the same, time to be the first team to bring an indoor volleyball championship to CSB.” The Lady Blazers have yet to win an indoor volleyball title in women’s and men’s division since joining the NCAA in 1998.

“Little by little we’re making it happen. We’re just a win away so hopefully, we can retain our performance from the first two games,” he added. The table has been turned as CSB now holds the twice-to-beat advantage with SBC needing to win two games to avoid the biggest collapse in NCAA volleyball. Janine Navarro, Ranya Musa and Jeanette Panaga provided the spark for CSB’s victory after all three players combined for 48 points with 16 hits each. Skipper Djanel Cheng was also stellar in pacing her spikers with 21 excellent sets. The Lady Blazers and the Lady Stags displayed a marquee showdown in the opening set making the score tied at 21-apiece, but CSB slipped away and drew the first blood through Musa’s two consecutive kills. SBC, however, equalized the match after a convincing victory in the second set. SBC continued to sizzle in the third with a 16-8 spread, but the Lady Blazers stormed back and tied the set at 21. Navarro gave CSB a 23-21 breather, while Musa scored another clutch attack bringing

them in the set point, 24-22, then Navarro sealed the 2-1 match advantage after a set winning service ace. In the last set, it was very clear that the momentum had shifted to Taft-based squad’s side as the trio of Panaga, Navarro and Musa kept on hitting the big blows to build a 21-15 cushion then scored four of the next six points to complete their second finals victory in four sets. The Lady Stags, on the other hand, must win twice to win the championship after squandering two games of their thrice-to-beat incentive. Reigning Most Valuable Player Gretchel Soltones once again carried the loads with 27 points in a losing effort. Despite being just a win away from reaching the feat, Carino will not be complacent as he hopes that his wards will retain the hunger and even do better to finally bring home the first indoor volleyball championship in CSB as they go for the kill on Tuesday. Lance Agcaoili

HE 2016 Jr. National Basketball Association (NBA)/Jr. Women’s NBA (WNBA) returns to the country for the ninth consecutive year with free-for-all basketball clinics that kicked off on Saturday and will run through April 24. The league’s global youth basketball program—presented by Alaska—will be held nationwide for kids aged 10 to 14 and will have stops in Bukidnon, Butuan, Cagayan de Oro, Dagupan, Davao, Iloilo, Puerto Prinsesa, and first-time spots in Batangas, Catanduanes and Cavite. Select players from these clinics will have an opportunity to showcase their skills in tryouts during the Regional Selection Camps in Baguio (February 20 and 21), Davao (February 27 and 28), Cebu (March 5 and 6) and Metro Manila (April 9 and 10). Top 50 boys and 24 girls from these regional clinics will advance to the National Training Camp in Manila from April 22 to 24. “The number of coaches we have are great. The kids are excited, and we hope that we can smash records,” National Basketball Association Philippines Managing Director Carlo Singson said. The Jr. NBA/Jr. WNBA teaches fundamental skills in basketball, as well as the core values of the game at the grassroots level. “This will be the biggest program yet for Jr. NBA/Jr. WNBA for the Philippines. We have created something new for the players. The coaches will be hands-on in spreading the cause of our program,” Singson added. More than 36,000 players and 2,700 coaches have participated in the program since its inaugural staging in 2007 with many of their products now playing in several leagues in amateur and professional ranks. Ramon Rafael Bonilla

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194 days

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AUGUST 5, 2016

Federer reaches another milestone

300 SLAM WINS M

ELBOURNE, Australia—The countless records and accolades accumulated over a long and illustrious career don’t, in any way, diminish Roger Federer’s satisfaction when he sets yet another benchmark. Federer became the first man to win 300 Grand Slam singles matches when he beat Grigor Dimitrov, a player formerly dubbed “baby Fed” for the likeness of their styles, in the third round of the Australian Open on Friday. The 34-year-old Federer already tops many “most of” lists in men’s tennis—from the number of major titles won (17) to the number of consecutive Grand Slam tournaments contested (65). Yet, he still gets a thrill from the numbers. “It’s very exciting, I must tell you,” Federer told the crowd following his 6-4, 3-6, 6-1, 6-4 victory over Dimitrov. He compared the latest milestone to his 1,000th win in tour-level matches, which he sealed 12 months ago in Brisbane. “It was a big deal for me.” Federer is now 67 wins ahead of No. 2 and long-retired Jimmy Connors in terms of Grand Slam singles wins, so the mark is safe for a while. “It’s not something I ever aimed for, but when it happens, it’s very special,” he said. “You look deeper into it, where it’s all happened and how. So it’s very nice.” Federer’s next aim is to break a Grand Slam title drought that dates back to Wimbledon 2012. He reached two major finals in 2015, losing them both to Novak Djokovic, who has replaced him as the most dominant man in the draw. He could meet

Djokovic in the semifinals. Djokovic took care of the man who ended Federer’s run in the third round here last year, the Swiss star’s worst run at the Australian Open since 2001. The No. 1-ranked Djokovic needed only 25 minutes to win the first set against No. 28-seeded Andreas Seppi but had a tougher time in the next two, saving two set points in the tiebreaker before winning 6-1, 7-5, 7-6 (6). The five-time Australian Open champion was playing at the same time as Serena Williams, a six-time Australian Open winner, so he shuffled over to Margaret Court Arena. He noted how he liked the renovation— the No. 2 stadium has had a roof installed since his last outing there. “I played a quality player who took out Federer last year here and who has been on the tour for many years,” Djokovic said. “It was a great test. It was a physical match. I’m just glad I got through.” After extending a streak of making the fourth round or better at every major since a third-round exit at the 2009 French Open, Djokovic will play No. 14 Gilles Simon in the Round of 16. Federer will play David Goffin. Williams raced to a 6-1, 6-1 win in 45 minutes over 18-year-old Russian Daria Kasatkina on Rod Laver Arena to set up a fourth-round match with Margarita Gasparyan, whom she beat early at Wimbledon last year. If the fourth-round results go on rankings, she’ll meet No. 5 Maria Sharapova in a quarterfinal match that will feature both of last year’s finalists. While Williams’s form has been good, it hasn’t drawn quite the same

attention as her bright yellow crop top and pleated mini skirt. “I just wanted to push the envelope again, just bring pop culture to tennis, kind of make it really fun,” she said. “It’s definitely not built for warmth, but it’s built for speed.” Sharapova had a milestone victory when she beat Lauren Davis 6-1, 6-7 (5), 6-0 to record her 600th win at tour level, becoming the 17th and only fourth active women’s player to reach the mark. “I think it’s a proud number,” the 2008 champion and four-time Australian Open finalist said. She next plays No. 12 Belinda Bencic. No. 4 Agnieszka Radwanska advanced to a fourth-rounder against Anna-Lena Friedsam, who beat Roberta Vinci—the Italian player who ended Williams’s bid for a calendar-year Grand Slam in 2015. Also progressing were No. 10 Carla Suarez Navarro and Russian-born Australian Daria Gavrilova, who held off No. 28 Kristina Mladenovic 6-4, 4-6, 11-9. The home crowd couldn’t quite lift No. 29 Nick Kyrgios, who was distracted by the noise and upset with the umpire in his latenight, four-set loss to No. 6 Tomas Berdych, a two-time semifinalist. No. 12 Marin Cilic also lost, but Kei Nishikori—whom Cilic beat in the 2014 US Open final—advanced over No. 26-seeded Guillermo Garcia-Lopez and will next play 2008 Australian Open finalist Jo-Wilfried Tsonga. AP

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Sunday, January 24, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph

Prince Ali confident of Fifa victory

ELLINGTON, New Zealand—Prince Ali of Jordan is confident he can win the International Football Federation (Fifa) presidential election and turn around what he says is a critical situation facing football’s governing body. Prince Ali, who is one of five candidates for the presidency vacated by Sepp Blatter, told reporters in New Zealand on Friday he believes he will win on February 26 in Zurich and that he is the one person who can turn the organization around. The 40-year-old Jordanian lost to Blatter by 133 votes to 73 in a presidential election last May, before Blatter was banned for eight years. Prince Ali said, “I am fully confident I will win this if things are conducted properly. Across the world the weight has been lifted off of people’s shoulders. People want to be proud of being part of this organization again and, without going into specifics on numbers, I’m building on what [votes] had last time around.” Football New Zealand supported his candidacy last May and his visit on Friday was part of a worldwide tour to solicit support. “Fifa is in a critical situation right now and we need to fix that,” Prince Ali said. “We have one chance coming in February. I believe we have wasted a year and we need to get it right. Fifa’s reputation has suffered dramatically and that has affected everything. There is a real desire to get things back on track. “We have a lot of good people in football around the world, but you have to have a leadership that understands what needs to be done. I believe [I’m] the only one who can really come in and do this.” His priorities would be to restore Fifa to its role as a “service organization” for players and fans and to implement a two-term limit for presidents and executive committee members. “We have to come back to good practices to make it a modern organization which is relevant for the time we live, and to restore faith for all our stakeholders,” he said. “At the end of the day, Fifa is the umbrella for football across the globe and it would be a shame to let things go on the way they are. That is why I’m running as a candidate, to fix this up. “A president of Fifa needs to be somebody who rolls up his sleeves, goes on the ground and works directly with national associations. I know I will. That’s the point, I’m my own man and I’m doing things exactly as they should be and hopefully when I win and I get that mandate that will be the impetus to really drive things the way they should be.” Prince Ali was determined to establish a culture of full transparency within Fifa. “In terms of all aspects of the organization, whether it is our financial situation, salaries, the World Cup bids, we need to be really open because that is what the world deserves for Swiss Roger Federer celebrates after defeating Nikoloz Basilashvili of Georgia for the most popular sport,” he said. AP his record 300th Grand Slam wins. AP

AZARENKA DOWNS JAPANESE RIVAL M

ELBOURNE, Australia—Two-time Australian Open champion Victoria Azarenka walked on to Rod Laver Arena knowing that the No. 2- and No. 3-ranked players were already out of the tournament and that the draw appeared to be opening up in her favor. She blinked at first, when Japanese qualifier Naomi Osaka broke her at love in the first game of their third-round match, before recovering responded quickly with a 6-1, 6-1 win in 56 minutes. The 14th-seeded Azarenka, back in form after two injury-interrupted seasons, has dropped just five games in three matches at Melbourne Park after warming up with a title at the Brisbane International. Azarenka had 24 winners to only four for Osaka, who was making her Grand Slam main draw debut. “She’s a little unpredictable and she surprised me with her game,” said Azarenka, who signed off with a now-customary “dab” and discussion on dancing and music. She will next play No. 48-ranked Barbora Strycova, who upset third-seeded Garbine Muguruza 6-3, 6-2. Milos Raonic dedicated his third-round victory, a 6-2, 6-3, 6-4 win over Viktor Troicki on Margaret Court Arena, to victims of a shooting in a remote community in Saskatchewan, Canada, which left four people dead and at least two injured. The 25-year-old Canadian, his voice sounding emotional at times, told the crowd: “Today, before I stepped out on court, it was a difficult day back home.” “I want to take a moment and give thoughts to that community. Today’s victory was for that community, and a quick recovery and all of Canada, and I’m sure the world is behind you.” Raonic faces a tough fourth-rounder against Stan Wawrinka, the 2014 Australian and 2015 French Open champion, who advanced with a 6-2, 6-3, 7-6 (3) victory over Lukas Rosol.

Victoria Azarenka of Belarus hits a backhand return to Naomi Osaka of Japan. AP

No. 10-seeded John Isner fired 44 aces as he advanced with a 6-7 (8), 7-6 (5), 6-2, 6-4 win over Fernando Lopez. In the women’s draw, Azarenka is one of three Australian Open champions remaining— six-time winner Serena Williams and 2008 winner Maria Sharapova are on the other half and could meet in the quarterfinals. Muguruza’s rapid rise to the No. 3 ranking sharpened the focus on her run in Australia, attention which only increased after No. 2-ranked Simona Halep and No. 8 Venus Williams lost in the first round. It didn’t help Muguruza, though, with her loss to Strycova extending a disappointing follow-up in majors since a breakthrough run to last year’s Wimbledon final. She lost in the second round at the US Open and her third-round exit here was worse than her two previous trips to Melbourne Park, where she reached the fourth round. “Clearly not my best, for sure. I think today is a very bad day, you know, at the office,” she said. “I just couldn’t find the court, my shots. Yeah. Didn’t really find my game.”

Her loss left No. 7 Angelique Kerber as the highest-ranked player in the bottom half of the women’s draw. Kerber beat Madison Brengle, 6-1, 6-3, to move into a fourth-round match against fellow German Annika Beck and a potential quarterfinal with Azarenka. Strycova has only been past the third round once before in 38 Grand Slams, and that was when she reached the quarterfinals of Wimbledon in 2014. Knowing her next rival was likely to be the growing favorite, Azarenka, Strycova decided to stay in the moment. “I will enjoy myself first because I beat No. 3 in the world,” she said. Johanna Konta, who beat Venus Williams last Tuesday, became the first British woman to reach the fourth round at the Australian Open since Jo Durie in 1987, giving the Brits and Aussies something to celebrate. Konta, who was born in Sydney and became a British citizen in 2012, beat Denisa Allertova 6-2, 6-2 and will next play No. 21-seeded Ekaterina Makarova, a semifinalist here last year, who had a 6-3, 6-2 win over No. 9 Karolina Pliskova. AP