Manny Pacquiao lost his World Boxing Organization welterweight world title to Jeff Horn in a stunning, unanimous points decision in a Sunday afternoon bout billed as the Battle of Brisbane, in front of more than 51,000 people. C3
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PHL won’t miss growth target this year–officials 6.8% T P
Dissecting PPP contracts #2: Preambulatory clauses
By Cai U. Ordinario
@cuo_bm
he Duterte administration’s economic team has expressed confidence that the country’s GDP would expand by as much as 7.5 percent this year, despite the World Bank’s announcement that it has cut its growth forecast for the Philippines.
National Economic and velopment Authority (Neda) dersecretary for Planning Policy Rosemarie G. Edillon the BusinessMirror that
DeUnand told the
Philippines remains on track to hitting its growth target. Edillon made the pronouncement after the World Bank last Saturday said in a statement that
The World Bank’s latest growth forecast for the Philippines
it has trimmed its growth estimate for Philippine GDP to 6.8 percent in 2017, from its April estimate of 6.9 percent on the back of “weak” government spending. “The target growth rate is still 6.5 percent to 7.5 percent. So, the 6.8 percent is within target. On underspending, all agencies are required to come up with a catch-up plan,” she said. See “Growth target,” A2
PPP Lead Alberto C. Agra
ardon the fancy word. Preambulatory clauses is just another term for whereas clauses. Simply, it is the introduction or preliminary statement to the main contract. This columnist first encountered this term in his legal forms class sometime in 1987 while he was in law school.
Like the Preamble in the Constitution, this cluster of clauses in a public-private partnership (PPP) contract defines the rationale or context, sets the background and provides the why of the arrangement. Even if, by themselves, the clauses do not create rights and obligations, they are important and relevant when interpreting provisions of the contract. Continued on A15
MERALCO BLAMES WEAK BM Reports PESO, POWER OUTAGES FOR HIKE IN JULY BILLING Pasig City, women grapple By Lenie Lectura
G
@llectura
ENER ATION charge, a big chunk of an electric bill, is expected to go up this month. According to the Manila Electric Co. (Meralco), there are two factors that are expected to push generation charge up for the supply month of June. These are the Wholesale Electricity Spot Market (WESM) price and the depreciation of the peso. “In the June supply month, we e x per ienced e vent s t h at placed upward pressure on generation costs,” said Joe Zaldarriaga, Meralco spokesman. Zaldarriaga said the 600-megawatt (MW) Unit 2 of the Sual power plant went on forced outage beginning June 14, coinciding with the absence of Santa Rita Module 40 (250 MW), which was on scheduled maintenance. “This 850-MW reduction in supply may have affected spot-market prices. For another, the peso depreciated in recent days to more than 50 to the dollar, versus 49.765 in May,” Zaldarriaga explained. “Both factors may have pushed up generation costs that may affect the July generation charge.”
850 N
Setup of new ecozones awaits govt OK By Catherine N. Pillas @c_pillas29
with milk-formula debacle S Part One
Last month generation charge reflected in the consumers’ electric bills stood at P3.8586. This was lower by P1.0253 per kilowatthour (kWh), from P4.8839 per kWh in May. The decline in generation charge largely contributed to a lower June overall rate by P1.43 per kWh to P8.17 per kWh. At P8.17 per kWh, the June overall rate is the second lowest since December 2009. Contributing to the decrease in generation charge for the month of May, which is reflected in the June electricity bills, are the P0.59per-kWh decrease in the cost of power sourced from independent power producers (IPPs), the
IPPLES and income. These are just two considerations for mothers in Pasig City on whether to feed their children with mother’s milk or milk formula. For Mariecon Lontoc, Jenne Pauline Sison and Allyza Travino, having inverted nipples is a condition they have to manage along with the family’s resources. Lontoc, a full-time homemaker, uses milk formula for her daughter’s daily dietary requirement. Sison, who works the graveyard shift as a technical support staff for a business-process outsourcing firm, does too for her two children. “Kahit mahirap mag trabaho sa gabi, kailangan ko talagang gawin ito kasi magastos ’yung gatas ng mga anak ko, eh wala naman akong choice kasi nga walang lumalabas na gatas sa akin [Though it’s really difficult to work the night shift, I still have to do it because milk formulas are expensive and I have no choice since I cannot produce milk],” she told
Continued on A2
Continued on A2
The total megawatt reduction in the June supply that may have affected spot-market prices
PESO exchange rates n US 50.4660
This June 16, 2015, file photo shows a mother breastfeeding her child while using an electric breast pump at a center in Makati City during the launch of a government program encouraging mothers to feed their infants with breast milk. Two years later, local governments, like Pasig City, are reporting a lower number of women practice breastfeeding despite incentives. ALYSA SALEN
ome 46 applications for new ecozones have yet to be approved by Executive Secretary Salvador C. Medialdea, according to the chief of the Philippine Economic Zone Authority (Peza). Peza Director General Charito B. Plaza said Medialdea’s recommendation is needed before the President could issue a proclamation for the new ecozones where investors could build their operations. Under the Special Economic Zone Act of 1995, proposed ecozones that have hurdled the Peza board level still has to wait for a presidential proclamation before it could be set up. According to the implenting rules and regulation, the issuance of the presidential proclamation is also the operative act that enables economic-zone developers and locator enterprises to qualify for incentives. “My frustration is the President is so aggressive, in inviting investors, that’s why his state visits always have a business forum component. But now that they want to put up their industries, they cannot because of the proclamations,” Plaza said. According to Peza’s data, of the See “Ecozones,” A2
n japan 0.4500 n UK 65.6462 n HK 6.4655 n CHINA 7.4378 n singapore 36.5935 n australia 38.7680 n EU 57.7432 n SAUDI arabia 13.4580
Source: BSP (30 June 2017 )
BMReports BusinessMirror
A2 Monday, July 3, 2017
www.businessmirror.com.ph
Pasig City, women grapple with milk-formula debacle Continued from A1
the BusinessMirror. Sison is t ha n k f u l for t he additional income from lease of a two-story apartment her husband manages. Travino, who works for her mother’s company, uses a Nestlé S.A. brand of milk formula and 800 gram can of which costs more or less P1,100. But for Ion Faye Lagunzad, mother of a 2-year old son, it was her failing health that prompted her to adopt milk formula. “Nung unang anim na buwan, nag-breastfeed ako kasi ni-required iyon ng doctor,” Lagunzad told the BusinessMir ror. “Pero nung tumagal, itinigil ko na din kasi nahihirapan ako lalo na kapag inaatake ako ng hika” [I breastfed in the first six months based on my doctor’s advice. But I stopped because of
Growth target. . .
World Bank lead economist for the Philippines Birgit Hansl said in a statement that it is imperative for the government to support its infrastructure program to boost the economy. Based on data released by the Department of Budget and Management (DBM) in May, public spending on infrastructure declined by 2.5 percent to P142.1 billion in the first quarter of 2017. “ T he gover nment ’s abi l it y to rea lize its infrastr ucturespending agenda will determine if the Philippines can achieve the growth target of 6.5 percent to 7.5 percent for 2017,” Hansl said. In May Neda Undersecretary for Investment Programming Rolando G. Tungpalan said the Duterte administration committed to spend around 6.8 percent of GDP for infrastructure annually. This will enable the government to increase public spending to 5.32
my respiratory illness].”
Sumilang village
Pasig City’s Barangay Sumilang, where Lontoc, Sison and Lagunzad live, has a total population of 5,375, latest government data showed. According to the 2016 data of Barangay Sumilang Health Center, there were 71 mothers who breastfed their young and 39 infants who were exclusively breastfed for six months. “’Yung ibang nanay kasi na pumupunta dito hindi nagtatagal sa pagbreastfeed,” Edith Benito, health center coordinator, told the BusinessMirror. “Minsan, malalaman na lang namin na tumigil na pala sa pag-breastfeed tapos gumamit na din ng milk formula [Some mothers are inconsistent in their breastfeeding; we would be belatedly informed some of them have
Continued from A1
percent of GDP in 2017 and 7.45 percent of GDP by 2022. This is equivalent to P8.44 trillion worth of infrastructure spending in the medium term. This has never been done in the country since infrastructure spending averaged only 2.9 percent of GDP from 2010 to 2016. “The planned infrastructure program is meant to achieve our growth potential, sustain high economic growth that would generate gainful employment and reduce inequality and poverty,” Tungpalan said. T he World Bank, however, said it still expects Philippine private consumption and export earnings to be robust this year. Consumption is forecast to grow 5.6 percent in 2017 and 6.1 percent in 2018. This is, however, slower than the 7.2 percent in 2016. Growth of private consumption is expected to be fueled b y t he i nc re a se i n overse a s
already stopped and switched to milk formulas].” Data from the local government of Pasig City showed that in 2016 only 34.6 percent, or 6,750 mothers, practiced breastfeeding. This is less than half of the city health office’s target of 19,528. Pasig City is home to 755,300. Benito said the numbers are small despite the incentives they give to encourage mothers to practice breastfeeding. According to her, barangay health centers give mothers free multivitamins and free consultations with physicians and health personnel. They will also benefit from a feeding program, Benito said. In general, mothers can save their money instead of buying milk formulas and there will be an intimate bonding for mothers and infants, according to her.
Support
Filipino worker remittances in the medium term. “Remittances increased by 8 percent in the first quarter of 2017, compared to 3 percent in the first quarter of 2016,” the World Bank said. In the first quarter of 2017, Philippine economy grew by 6.4 percent. Neda Secretary Ernesto M. Pernia said this maintains the country’s position as among the fastest-growing economies in the Asean. Pernia said the country’s GDP growth in the January-to-March period was faster than that of Vietnam and Indonesia, which both grew by only 5.1 percent and Thailand’s 3.3 percent. The Philippine Statistics Authority said this was driven by the growth of manufacturing, trade and other services sector in the January-to-March period. Manufacturing expanded by 7.5 percent in the first quarter on the back of the strong growth of the food manufacturing sector at 9.8 percent.
‘Not overheating’
ACCORDING to Jenily Capalaran, registered nutritionist and dietician, the Pasig City Health Office conducts different activities to encourage breastfeeding. Included in these activities are the setting up of breastfeeding stations in workplaces, communities and schools. Some of these stations are at the City Hall (Room 8 on the fifth f loor and at the Gender and Development Office), at health centers in a l l barangay in Pasig and in select schools, like Rosario Elementar y School and Pasig Elementary School. Capalaran added an additional effort is the establishment of Nutrition Clusters, which is a group composed of local government employees and staff from nongovernmental groups and interna-
The Department of Finance (DOF) said the Philippines is far from “overheating” as the real GDP growth of 6.4 percent recorded in the first quarter is within the government’s target range. When asked about the recent credit rating issued by international credit watcher, Moody’s Investors Service, Finance Secretary Carlos G. Dominguez III also said inflation has been on the downtrend. Last week Moody’s maintained the “Baa2” long-term issuer and senior unsecured debt rating for the Philippines. However, Moody’s said it could still raise its rating should the government succeed in defusing signs of “prospective overheating” in the economy and financial system. “Well, there is ample evidence that the economy is far from overheating. No. 1, the growth is only at 6.4 percent, slightly below our target of 6.5-percent to 7.5-percent range. Inflation is declining with 3.1 percent in May, from 3.4 percent in April [2017]. And core
tional humanitarian agencies. She explained the Nutrition Cluster takes the lead in nutrition management during emergencies and disasters. Documents Capalaran provided show the Nutrition Cluster aims to ensure that the nutritional status of affected population, especially the most vulnerable groups, will not worsen or deteriorate due to the impact of emergency and disasters. This is accomplished, the documents said, through linking with other clusters and “establishing capacities at all levels”. Other initiatives the city hopes would encourage breastfeeding was the establishment of an Infant and Young Child Feeding Technical Working Group (IYCFTWG) to manage and implement all the training related to IYCF
inflation is declining from 3 percent in April to 2.9 percent in May,” Dominguez told reporters. He noted that investments grew faster at 7.9 percent than household consumption, which expanded by 5.8 percent. “Actually [consumption] is only 5 percent if we include government.” He a lso sa id rea l- estate rates in the Philippines is the second lowest among Asean countries, the country has a strong balance of payments, and that the budget deficit is only at 1.4 percent of GDP. “So, I don’t think there is really much danger in overheating,” Dominguez said. According to Finance Undersecretary Gil S. Beltran, the concerns raised by Moody’s in recent meetings were more related to the leadership of US President Donald J. Trump than domestic policies. Beltran said the DOF has also discussed with Moody’s the country’s trade performance and the tax-reform program. With a report from Rea Cu
a nd t he rec r u it ment of new breastfeeding support groups. Capalaran said the Pasig City local government also offers individual and group counseling for lactating mothers, as well as free lactation massage. We also undertake home visitations, hold advocacy fora and film showing, she said. However, the Pasig City Health Office still encountered challenges while implementing the program. “Despite all the efforts to encourage mothers for exclusive breastfeeding, there’s still a low turnout in the number of mothers who practice breastfeeding,” Capalaran told the BusinessMirror. “Television and media advertisement play a big challenge that hinders implementation of exclusive breastfeeding.” Kaye Escaño To be continued
Meralco blames weak peso, power outages for hike in July billing Continued from A1
P1.25-per-kWh decrease in power sourced from the WESM and the P0.04-per-kWh decrease in power-supply agreements (PSAs) prices. There was a reduction in IPP and PSA costs because of higher plant dispatch, continuous peso appreciation and the completion of the staggered recovery of liquid fuel cost that was incurred during the Malampaya maintenance shutdown from January 28 to February 16. The share of IPPs and PSAs purchases to Meralco’s total requirements are 40.7 percent and 45.6 percent, respectively, Meralco had reported. Additionally, a decrease in the cost of power supplied through the WESM is due to fewer plant outages despite higher power demand in Luzon. The share of the WESM stood at 13.7 percent.
Ecozones. . . Continued from A1
46 pending proclamations now awaiting the attention of Medialdea, only six were carried over from the Aquino administration. Since President Duterte’s assumed office, only 16 economic zones have been proclaimed. Some locators are opting to locate in the 371 existing Peza-registered economic zones, including four public ones, but most are keen on locating in new zones. “I keep asking our investors to just hold on, we’re following up with Malacañang. If these don’t get approved soon, they may transfer to other countries,” Plaza said. While none have pulled out yet, she warned that there is one locator firm that has been given only three more months by his principal to secure the approval. The investor may pull the plug on a P1.3-billion manufacturing project in Cebu if the approval is not secured soon. From January to May 2017 the Peza hauled in P107.749 billion in investment pledges, a 98.14-percent leap from the same period in 2016. Direct employment in the Peza zones as of April 2017 is at 1.3 million workers, a 5.7-percent improvement from the same period last year. Ex ports, similarly, rose to $16.466 billion in January to April 2017, a 13.57-percent increase over the $14.497 billion gotten in the comparable period last year.
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Senate to reopen multibillion peso pork-barrel scam probe By Butch Fernandez
S
@butchfBM
enators are poised to reopen their multibillionpeso pork-barrel scam inquiry, even as the Senate chief prober opted to wait for the results of a separate Department of Justice (DOJ) investigation into the multibillion-peso fund scam. Asked if he plans to move for the reopening of the Senate inquiry into the pork-barrel scandal when Congress reconvenes on July 24, Sen. Francis Escudero said it will depend on the DOJ findings. “Our action will be anchored on the DOJ’s move to prosecute those involved in the fund scam based on the investigation conducted by Justice Secretary Vitaliano N. Aguirre II,” Escudero said, “that’s why we decided to wait for the result [of the DOJ investigation].” Escudero indicated he is also waiting for the filing of appropriate Senate resolutions by fellow senators seeking reinvestigation of reported misuse of the lawmakers’ annually released multimillion allocations under the Priority Development Assistance Fund and the Disbursement Acceleration Program. The senator, however, sidestepped queries the probe could be tainted by politics. “Well, hihintayin ko ’yung resolusyon kung isasama ba talaga nila lahat, kakampi man o hindi dahil karamihan ng dating LP [Liberal Party] ay nasa PDP na,” Escudero said, referring to the now ruling Pilipino Democratic Party led by President Duterte. “So, tingnan natin kung pati ba sila’y maisasama o hindi o absuwelto na naman sila dito.” According to Escudero, what he found noteworthy is that the initial pork-barrel scam probe was still barely halfway. “Ang mas mahalaga’t importante sa akin, kalahati pa lang ang naiimbestigahan at nasasampahan ng kaso, humigit kumulang na P6 billion ang hindi pa naiimbestigahan at nasasampahan ng kaso na non-Napoles non-governmental organizations. Siguro naman kung ganoon kabigat at kahalaga sa atin ’yung P6 billion ni Napoles, ’yung nananatiling bilyon na nonNapoles dapat kasing halaga at kasing bigat din sana at sigasig ang imbestigasyon ng DOJ at Commission on Audit,” Escudero pointed out.
PHL-Indonesia maritime patrol kicks off Tuesday By Rene Acosta
T
@reneacostaBM
he annual coordinated patrol involving Filipino and Indonesian Navy personnel will begin on Tuesday in a ceremony at the Naval Station Felix Apolinario in Panacan, Davao City, the military announced last Sunday.
Armed Forces Eastern Mindanao Command Spokesman Major Ezra Balagtey said the Indonesian forces will arrive on Monday at the Sasa Wharf, Davao City, for the kick-off ceremony. “The coordinated patrol will formally commence with a send-off ceremony on July 6, 2017, at Sasa Wharf in Davao City. It is intended to strengthen the security of the Davao Gulf and the common boundary of the two countries in the southern part of the Philippine Archipelago, particularly along the Celebes Sea, and enhance the interoperability of the two countries in maritime patrol,” Balagtey said. A medical mission will be conducted by military medical personnel aboard the patrolling vessels during a stopover at Balut Island in Sarangani on July 7.
Balagtey said the coordinated patrol will culminate on July 12 in Manado, Indonesia. The Philippine-Indonesia joint patrol takes place as the US and Philippine Navies completed over the weekend a coordinated patrol in the Sulu Sea. During the operation, personnel from the Littoral Combat Ship USS Coronado (LCS 4) and the Del Pilar Class Frigate BRP Ramon Alcaraz (PF 16) worked together to detect and deter threats to maritime security. “These patrols will enhance regional peace and stability,” said Rear Adm. Don Gabrielson, commander of the Task Force 73. “Our at-sea operations with the Philippine Navy demonstrate our commitment to the alliance and deter piracy and illegal activities,” he added. As part of the operation, a group of Philippine Navy sailors embarked on USS Coronado to coordinate communications and movements between the two ships. The Philippine sailors also exchanged best practices with their US counterparts in visit, board, search and seizure (VBSS) techniques and information sharing. The patrol strengthened maritime security cooperation between the US and Philippine navies and enhanced both navies’ ability to respond to piracy and transnational criminal activity at sea. It further demonstrated US commitment to the security of the Philippines and enduring US interest in promoting stability and prosperity in the Indo-AsiaPacific region. Prior to the coordinated patrol, USS Coronado completed the Maritime Training Activity “Sama Sama” with the Philippine Navy in the vicinity of Cebu. The exercise provided opportunities for the Philippine Navy to sharpen tactical skills in maritime security operations that were employed during the coordinated patrol.
Monday, July 3, 2017 A3
Imee willing to cooperate; laments continued detention of Ilocos Six By Joel R. San Juan
I
@jrsanjuan1573
locos Norte Gov. Imee Marcos said she will cooperate with the House Committee on Good Government and Public Accountability on its probe into the local government’s purchase of motor vehicles amounting to P66.45 million, which was sourced from its share of tobacco excise taxes. Marcos, however, lamented the continued detention of six provincial government employees who were cited in contempt for allegedly refusing to answer questions by lawmakers conducting the inquiry. “I have expressed my willingness to cooperate with the Committee on Good Government on the faith that the committee would conduct its current inquiry in accordance with the letter and spirit of Section 21, Article VI of the Constitution—that the inquiry is in aid of legislation and that the rights of persons appearing therein are protected,” she said in a statement released through her lawyer, former Solicitor General Estelito Mendoza. Marcos said she has sent two letters to the committee where she requested to be clarified over the invitation of the House for her to attend the probe as a resource person. “Even as those letters did not merit any response from the committee, my commitment to cooperate on Constitutional grounds has not changed,” she said. Speaker Pantaleon D. Alvarez earlier signed a subpoena against Marcos to compel her to attend the July 25 resumption of the congressional probe. Rep. Johnny Pimentel of Surigao del Sur, chairman of the House committee, said Marcos’s failure to attend the probe on the scheduled committee hearing this month will be enough ground for her to be cited in contempt. Marcos insisted that Constitutional rights of persons invited to attend House inquiries must be respected. She said the judiciary, and not Congress, is the rightful body to prosecute, as she lamented the fate of the provincial employees, collectively known as Ilocos Six, who have been illegally detained for more than a month now.
Economy
A4 Monday, July 3, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon
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PSA: Farmers, fishermen remain poorest in PHL
F
By Cai U. Ordinario
@cuo_bm
armers and fishermen and children of low-income families are still the poorest of the country’s basic sectors, according to the latest report of the Philippine Statistics Authority (PSA).
PSA data showed that poverty was around 34.3 percent among farmers; about 34 percent among fishermen; and some 31.4 percent of children from low-income households in 2015. The data was based on the 2015 Family Income and Expenditure Survey (FIES) conducted by the PSA every three years. “These sectors consistently registered as the three sectors with the highest poverty incidence in 2006, 2009 and 2012,” the PSA said. However, compared to previous FIES rounds, poverty rates across all sectors were declining. Poverty rates among farmers declined to its current level from 38.5 percent, while estimates among fishermen declined from 41.2 percent in 2006. The FIES data in 2006, 2009 and 2012 revealed that fishermen were the poorest sector. The latest PSA data showed the country’s fishermen are now second to farmers in terms of poverty incidence. Among children of low-income families, poverty was pegged at around 35 percent in 2006, 2009 and 2012. It was only in 2015 when it posted a poverty rate of below 35 percent. The PSA also said five of the nine basic sectors posted higher
poverty incidence rates than the general population. Apart from the top 3 poorest sectors, rounding up the five sectors that had higher poverty rates than the national average were self-employed and unpaid family workers or informal workers and women. Poverty rates among informal sector workers declined to 25 percent in 2015, from 29 percent in 2012. It was at 30.6 percent in 2006. Despite the country’s impressive record in gender equality, some 22.5 percent of Filipino women are considered poor. This is lower than the 25.6 percent recorded in 2012 and 25.9 percent in 2006. The poverty rate among Filipinos nationwide averaged 21.6 percent in 2015. This was a significant decline from 25.2 percent in 2012. The PSA data also revealed that poverty incidence among employed Filipinos was higher than the unemployed in 2015. Data showed that poverty incidence among employed Filipinos from poor families were higher at 18 percent compared to the unemployed at 16.4 percent in 2015. In 2014 Ateneo de Manila University economist Leonardo
Lanzona Jr. said this may be due to the very low pay received by employed Filipinos. “It may be noted, however, that the difference between the poverty incidence among employed and unemployed has declined through the years,” the PSA said. Ending poverty is the aim of the United Nations Sustainable Development Goals (SDGs), or
the Global Goals adopted by countries, including the Philippines, in September 2015. SDG 1 aims to end poverty in all its forms by eradicating extreme poverty for all people worldwide by 2030. People living on less than $1.25 a day are considered extremely poor. The goal also aims to reduce by at least half the proportion of
men, women and children of all ages living in poverty in all its dimensions by 2030. The SDGs are composed of 17 goals that also seek to promote universal health, education for all and lifelong learning, achieve gender equality, sustainable water management, ensure sustainable energy for all, decent work for all, resilient infrastructure and reduce
income inequality between and among countries. The goals also include create sustainable cities, ensure sustainable consumption and production, take action against climate change, conserve and sustainably use oceans and marine resources, reduce biodiversity loss, achieve peaceful and inclusive societies and revitalize global partnership for development.
Lawmaker bats for OK of bill creating coco trust fund Hiking IRA to prepare LGUs for federalism, solon says
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he chairman of the House Committee on Appropriations last Sunday called for the immediate approval of a measure creating the Coconut Industry Trust Fund. National Unity Party Rep. Karlo Alexei Nograles of Davao, the panel chairman, said the approval of this measure is needed to finally address certain legal infirmities as declared by the Supreme Court (SC) that prevented its use. Nograles said the substitute measure has already been forwarded to the House Rules Committee for plenary debate as soon as possible, even after President Duterte delivers his State of the Nation Address (SONA) on July 24. “This is a very timely and vital measure that would sustain the development of the country’s coconut industry and ensure the welfare of Filipino coconut farmers. After all, it was the coconut farmers who shouldered the burden of the coconut levy. Therefore, they must now reap the benefits from this fund,” Nograles said. House Bill (HB) 5745 was approved by the appropriations panel as the substitute bill to the original several house bills that seek to utilize the coconut-levy fund. Also, the lawmaker said this should end insinuations that the Duterte administration is not keeping
its commitment to return the cocolevy fund to the coconut farmers. The measure seeks to create a Coconut Industry Trust Fund and amend Republic Act 6260, or the Coconut Investment Act, which created the coconut-levy fund. If passed into law, the lawmaker said, it would constitute the cocolevy funds and assets into a Coconut Industry Trust Fund and provide the administrative structure that will manage the trust funds and ensure that its use will benefit the coconut industry and the coco farmers. “The said coco levy should be used to benefit the coconut industry and the coconut farmers and not to be used for any other purposes as ruled by the SC,” Nograles noted. As one of the authors of the measure, Nograles said based on SC ruling in “Cocofed, et al v. Republic of the Philippines (GR 177857-58)” it dec lared that the coco-levy funds and assets, wh ic h con si st s pr i m a r i ly of the 753,848,312 shares of San Miguel Corp. and their accumulated dividends, are owned by the government in trust for the coconut farmers.” However, Nograles said the High Court raised the need to have an administrative mechanism to ensure that the coco-levy funds are managed prudently and properly as intended by law.
“ The SC is basically saying that, okay, the coconut-levy fund should be used exclusively for the benefit of all the coconut fields and the development of the coconut industry, but there should be a clear mechanism by which this fund would be used prudently and properly,” Nograles said. He added that the High Court's ruling also did not provide specific guidelines for the management and use of the coco-levy funds and this is the reason Congress must pass a law that would address this loophole. For his part, Party-list Rep. Jose Panganiban Jr. of Anac-IP, House Committee on Agriculture and Food chairman and one of the authors of the bill, said the SC has declared in 2012 that the coconutlevy fund is government-owned to be used solely for the benefit of coconut farmers and for the development of coconut industry. Panganiban, citing the Bureau of Treasury, said “The total amount of the coconut-levy fund is P62.5 billion in cash, deposited in a special account in the general fund, which is not earning interest because it cannot be invested,” adding that it needs a law so it could it be used. The other amount of P13.09 billion is held in escrow and earning interest, he said. Jovee Marie N. dela Cruz
By Jovee Marie N. dela Cruz @joveemarie
A
member of the House Committee on Ways and Means is pushing for a measure gradually increasing the Internal Revenue Allotment (IRA) share of local government units (LGUs) to prepare them for an eventual shift toward a federal form of government. In his House Bill (HB) 5900, Rep. Ramon V. A. Rocamora of Siquijor said increasing the funds that go to LGUs is an “indispensable step” toward pushing for greater local autonomy and an eventual shift towards federalism. Under the bill, the government would increase from the present 40 percent gradually toward a 60 percent share of LGUs in the internal revenue taxes—50 percent in the first year, 55 percent in the second and 60 percent on the third year onward. “It is important that we pave the way toward greater local government empowerment by engendering fiscal responsibility. Our provincial, city, municipalities and baranggay governments are the first line of government that the public interacts with. We have to provide them the support so they can properly deliver social services and spur local development,” Rocamora said. The lawmaker said one of the key elements of a successful shift to a federal form of government is the pres-
ence of strong LGUs that are ready to take on more responsibilities. “By getting more funding, there is little risk of creating havoc in services delivery. Without this phase of preparation, there is a big potential that local government are suddenly caught unprepared and ill-equipped,” he added. Rocamora pointed out the need for ensuring that LGUs take on more funds to offset the persistent under spending by national government agencies. “It is highly irresponsible when we see huge savings in national agencies while at the same time far-flung municipalities or barangays do not have adequate access to water, do not have cemented roads or lack school buildings,” Rocamora said.
Municipal waters
Rocamora’s bill also introduces an “innovative idea of” computing IRA allotment to LGUs by factoring municipal waters. Under the Local Government Code, land area determines the share of an LGU by 25 percent. “I think it is a very reasonable solution. Land area is a factor in the amount of IRA allotment for obvious reasons that LGUs with bigger area will incur bigger costs in delivering social services than smaller LGUs with small areas where the service provider are closer in distance to their constituents,” he said.
“However, the same argument can be made for LGUs with large municipal waters because LGUs also have to regulate their waters, and in the case of LGUs with island-barangays, they have to provide services for their constituents living in those islands. Note, too, that fishermen and coastal municipalities face bigger development challenges,” Rocamora added. Currently, the lawmaker said the biggest concern for the public and local officials on the issue of federalism is whether it will improve services and the general outlook of communities. “I don’t think we will succeed in that unless we prepare and empower them through an increase in funding and support,” Rocamora said. Earlier Nacionalista Party Rep. Luis Raymund Villafuerte of Camarines Sur has also filed HB 4697, increasing the share and guaranteeing the automatic retention and release of the IRA of LGUs to beef up their financial backbone in time for the shift to federalism. Under the bill, the share of each LGU would automatically be released and retained by it, without need of any further action, directly to the provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis within five days after the end of each quarter. It would also not be subject to any lien or holdback that may be imposed by the national government for whatever purpose.
Evasco orders HUDCC to help women, children in Marawi By Elijah Felice E. Rosales @alyasjah
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ey shelter agencies have been instructed by Cabinet Secretary Leoncio B. Evasco to use their gender and development funds in assisting women and children in evacuation centers affected by the conflict in Marawi City, Lanao del Sur. The Office of the Cabinet Secretary said in a statement released last
Sunday that Evasco in mid-June met with the officials of agencies under the Housing and Urban Development Coordinating Council (HUDCC) to discuss the recovery, reconstruction and rehabilitation of Marawi City. With damages yet to be assessed, the housing leaders concluded it will take time to rebuild the houses and structures in Marawi City. They decided, for the meantime, to provide humanitarian assistance to the dis-
placed persons in evacuation centers. “To achieve this, the funds allocated for the gender and development from each [housing] agency will be mobilized to address the particular needs of women affected by the conflict,” the statement read. Under Republic Act 9710, or the Magna Carta of Women, government agencies are mandated to allocate at least 5 percent of their total budget for gender and development programs.
However, the housing leaders noted there was difficulty spending the said allocation. Evasco, upon learning this, issued a marching order to key shelter agencies to pour their gender and development funds, both present and outstanding from previous years, into the needs of women in evacuation centers. The health and social welfare departments will most likely receive the funds, as they are in charge of the
immediate operations, such as medical response, evacuation and logistical support, to the victims of the conflict in Marawi City. “Options, such as providing hygiene kits and psychosocial supportservices, are being considered,” the statement read. Aside from his capacity as cabinet secretary, Evasco also sits as chairman of the HUDCC. Agencies under the HUDCC are the National Housing Agen-
cy, Social Housing Finance Corp., Home Development Mutual Fund, Housing and Land Use Regulatory Board and the National Home Mortgage Corp. Last Tuesday President Duterte said the government is doing everything to hasten the flushing out of Maute Group terrorists in Marawi City. In anticipation of the end of the conflict, Duterte added he has directed relevant government agencies to begin drawing up the rehabilitation plan.
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Editor: Efleda P. Campos • Monday, July 3, 2017 A5
DA donates P11-M agri equipment to 2 Davao provinces By Manuel T. Cayon | Mindanao Bureau Chief
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AVAO CITY— The Department of Agriculture (DA) turned over P11 million worth of machineries to two Davao provinces as gifts on their foundation day last week.
The DA sent mostly farm implements to help farmers in Davao del Norte and Davao del Sur boost rice production and cut down on their post-harvest losses due to crude equipment and lack of handling and storage facilities. The two provinces were commemorating their respective foundation day on July 1 and the DA gave P6 million worth of farm machineries to Davao del Norte and P5.2 million to Davao del Sur. Agricultrue Director Ricardo Oñate Jr. and Davao del Norte Gov. Anthony del Rosario witnessed the turnover of pump and engine set, hand tractor with implements, combine harvesters with transport trailer, rice threshers, floating tillers, plastic crates and hauling truck to the 34 farmercooperatives and associations. One beneficiary group, the Rehoboth Association in Panabo City, received a hauling truck worth P1.4 million. Lolita Pinoon, chairman of the association, said they were engaged in cacao production and marketing. Davao del Sur received eight hand tractors worth P109,800 each, given to eight irrigators’ associations (IAs), eight floating tiller worth P83,500 each to another eight IAs and two opensource pumps worth P64,937 each to two IAs. A rice thresher worth P109,537 was also turned over to the municipality of Padada; one combined harvester worth P1.2 milion was given to Magsaysay Farmers Cooperative; and two hauling trucks worth P1.4 million each were given to Pambansang Mananalon, Mag-uuma, Magbabaul, Magsasaka ng Pilipinas of Padada and the Balutakay Coffee Farmers Association in Bansalan. Agriculture Secretary Emmanuel F. Piñol earlier batted for mechanization of the farm production. “Since the absence of rice harvesters and efficient rice-processing facilities account for at least 20 percent of the postharvest losses,” the DA information
ERC renews permits of three power co-ops by 5 more years By Lenie Lectura
@llectura
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HE Energy Regulatory Commission (ERC) recently renewed the permits of Mindoro Grid Corp. (MGC-Igacos), AP Renewables Inc. (Apri) and Oriental Mindoro Electric Cooperative Inc. (Ormeco) for five more years. The certificates of compliance (COCs) of MGC-Igacos was extended to May 14, 2022; Apri until November 6, 2021; and Ormeco until May 23, 2022. The ERC’s renewal of the COCs indicates the concerned generation companies and distribution-utility continuance with their respective commercial operations for the next five years and strict compliance with financial, environmental and technical standards. COCs are issued by the ERC in favor of a person or entity to operate a power plant or other facilities used in generation of electricity pursuant to Section 6 of Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (Epira), and Section 4 of the Implementing Rules and Regulations (IRR) of the Epira. “The ERC’s renewal of the respective COCs of MGC-Igacos, Apri and Ormeco will aid in ensuring a stable and reliable power supply in the country,” ERC Officer in Charge Alfredo J. Non said. The renewal and issuance of the COCs of MGC-Igacos, Apri, and Ormeco was previously deferred in view of the preventive suspension of ERC Chairman and CEO Jose Vicente B. Salazar issued by the Office of President in May. The MGC-Igacos, located at Igacos, Davao del Norte, operates diesel-generating units with an aggregate capacity of 7.56 megawatt. Apri operates the Makban Binary Geothermal Power Plant with a capacity of 7 MW, and is located in Santo Tomas, Batangas. Ormeco operates diesel-generating units with a capacity of 2.175 MW and is located in San Teodoro, Oriental Mindoro.
Globe Telecom to roll out fiber facilities in Cebu, Mandaue
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LOBE Telecom Inc. has partnered with the city governments of Cebu and Manduae to roll out fiber facilities in the two cities. The collaboration with the two local government units (LGUs) paved the way for the deployment of 18 Globe-at-Home Fibre sites in Cebu. Works in Mandaue are currently under way. The company is strengthening its partnership with the LGUs, “recognizing that local officials’ support is essential in realizing its goal of enhancing connectivity to boost economic development in the country”. Aside from its fixed-line facilities, Globe is also working to improve its mobile network. Katrina Mina
office here said. In Koronadal, South Cotabato, an agricultural cooperative lauded the DA’s move to hold the further importation of rice, saying the recent bumper harvest
would help farmers in this province get better return for their products. “This government is on the right track,” said John Dormitorio, general manager of the Binhian
ng Timog Kutabato Multipurpose Agricultural Cooperative’s. He said the timely distribution of assistance from the DA will help them sustain their production.
A6
Agriculture/Commodities
Monday, July 3, 2017 • Editor: Jennifer A. Ng
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Governments must invest heavily in agri–Piñol By Jasper Emmanuel Y. Arcalas
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@jearcalas
he Philippines called on members of the UN Food and Agriculture Organization (FAO), particularly those vulnerable to the ill effects of climate change, to increase their investments in agriculture and food production. In an interview with FAO ahead of its 40th biennial conference, Agriculture Secretary Emmanuel F. Piñol said governments should intensify their investments in their respective farm sectors amid the threat of climate change to food production. The FAO conference will kick off on Monday, and will run until July 8. “You can take away all the other basic services, but not food. In my view, I believe if there is anything governments should invest in more heavily, it should be in agriculture and food production,” added Piñol, who is the current chair of the 40th session of the supreme governing body of the FAO. “Also during the conversation I had with him [FAO Director General José Graziano da Silva], I emphasized my position that, right now, [the] government should spend more in agriculture. Invest
more in agriculture than in other things because the reality right now is very evident that countries [that] did not invest much in agriculture are suffering,” he said. Piñol also urged governments to ensure that they have sufficient buffer stock in times of calamities. “Countries [that] are affected by climate change, especially mine, should make sure that there is enough buffer stock of food in a locality and food depot or storage areas should be established in critical regions,” he added. “If there is no buffer stock of food in a locality [that] is vulnerable to climate change, the problem of bringing food during disaster would be a major headache. This was proven when Supertyphoon Haiyan hit. It took the government three weeks to bring food to affected areas,” Piñol said. During his conversation with
A corn field in Iowa submerged in flood water Bloomberg
da Silva, he added the FAO has pledged to assist the government in rehabilitating conf lict-torn areas in Mindanao, particularly those that rely heavily on agriculture. “The Director General assured me and our government that [the] FAO will come in and support our government in the rehabilitation of the conflict areas of the country, specifically where there is an ongoing battle between our gov-
ernment and ISIS [Islamic State of Iraq and Syria] extremists, which literally devastated agricultural areas,” Piñol said. “I really appreciate this support for my country, for the Philippines. And I assured him I will immediately relay to my president, President Duterte the offer of FAO,” he added. Earlier, Piñol said in a Facebook post that he would urge members of the FAO to help countries
considered vulnerable to climate change achieve food security by giving them access to advanced farm technology. “In the country statement, which I will deliver during the conference, the Philippines will emphasize the importance of a concerted effort among nations to ensure food security amid the challenges of climate change,” Piñol said. “The Philippines will also call for greater cooperation among the
advanced food-producing countries and the emerging food-production areas, like the Philippines, in the areas of technology transfer and sharing of best practices,” he added. The FAO conference this year will review the current state of food and agriculture, with a focus on the ill effects of climate change on agriculture and food security. This is the first time that the Philippines will spearhead the biennial conference.
‘Dairy producers lost money due Mexico bans gillnet fishing in endangered porpoise’s habitat M to canceled import permits’
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ocal dairy manufacturers incurred millions of pesos in losses after the Department of Agriculture (DA) decided to revoke their import permits last year, according to a study released by the Philippine Institute of Development Studies (Pids). In a discussion paper, titled “Scoping Study on Reducing Unnecessary Regulatory Burdens in the Philippine Food Manufacturing Industry”, Pids consultants from Nexus Agribusiness Solutions said the DA’s decision served as a stumbling block to the milk-processing industry last year. “The cancelation of all agricultural import permits by the DA in response to smuggling is a major constraint to the milk-processing industry. [The] representative from Alaska estimated that around $12 million worth of raw materials cannot enter the country’s premise because of the cancellation of permits,” the paper read. “This amount can be directly translated as cost of delayed marketing opportunity and opportunity losses. It is good that Alaska has stock of raw materials for the succeeding one to two months, but without the approval of import permits, this will surely affect the availability of milk products in the country,” it added. The paper noted the same scenario applied to other big milk-manufacturing companies in the country. Last November the DA canceled all import permits and put in place new rules for securing sanitary and phytosanitary clearances to combat smuggling. The Pids study also called for a review of the current milk-manufacturing standards and regulations that are now considered outdated. Crafting a newer and updated standards and regulation would aid businesses to comply with not only local, but also international market demand, it added. “Milk-processing industries also stressed the need to review regulations and update it with current standards. For example, some of the bases for product standards [e.g., sodium content, additives, etc.] were created in the 1980s and 1970s,” the paper read. “It would also be of great help if the government can publish a com-
pilation of the regulatory policies per subsector. The milk subsector has a compendium of regulatory policies but this was initiated by the industries itself and needs to be updated as well,” it added. The government should also “draw the line” between the regulatory functions of the National Dairy Authority (NDA) and Food and Drug Authority (FDA) in implementing the provisions of the Food Safe Act. “With regard to the implementation of the Food Safety Act, there is still no clear delineation between the regulatory function of NDA and FDA. According to the NDA representative, the NDA covers activities from milk production to post-handling activities. However, there are still grey areas particularly on the regulatory functions that the NDA and FDA need to provide in 72 the posthandling activities of milk,” the study read. “Although there are already initiatives from the NDA to develop dairy regulations and standards, the latter issue has not been resolved and is still in need of consultations not only with the stakeholders but, more important, with FDA,” it added. Big dairy-industry players, such as Alaska, do not deem compliance costs to regulatory requirements as a significant constraint to business operations as they have sufficient funds to cover them, according to the study. “Regulatory requirements mandated either by both local and international bodies are strictly followed by these companies in order to protect both their brand and the welfare of its consumers. As such, a regulatory cost was not much of an issue for these companies,” the paper read. “Regulatory costs, relative to other expenses of the companies, entail only minimal impact to the operation cost and will not pose significant effect on the prices of milk products. Representative from Alaska mentioned that they have not increased prices of milk for the last two years,” the paper added. The same view on compliance costs could be seen in small-scale milk-processing industries. However, for players, like the Kooperatibang Manggagatas Integrated
Cooperative (KKMI), regulatory procedures could still be improved by decreasing the number of days needed to process the requirements. “KKMI representative said that regulatory requirements are needed not only to ensure food safety, but also to allow them to continue business with their clients,” the paper read. “When asked if there are suggestions to improve the regulatory procedure, the participants mentioned that there is really a need for these requirements but the problem is the number of days it takes to secure and permits. For example, processing of their CPR [Certificate of Product Registration] took longer than what is prescribed in the FDA procedural guidelines,” it added. Some of the regulatory requirements needed to comply by KKMI include: barangay permit, fire-safety inspection certificate, sanitary permit, certificate of annual inspection, business and/or mayor’s permit, certificate of good standing, license to operate and certificate of production registration. These regulatory requirements vary in processing time, with some taking only an hour, while others requiring three months at most. The cost for each requirement ranges from P500 to P15,000. “According to the respondents, regulatory costs are already embedded in the existing pricing scheme. However, these regulatory costs have very minimal impact on prices such that it cannot vary the prices,” the paper read. “It is the changes in the prices in the raw materials that could significantly contribute to changes in the prices. Also, it was stressed by the participant that regulatory cost only entails minimal expenses relative to other operational costs,” it added. For big dairy-industry stakeholders, like Alaska, they are required to comply with additional requirements, such as: Certificate of Trademark for its products from Department of Trade and Industry; Clearance from the Philippine National Police and Philippine Drug Enforcement Agency for precursor chemicals used as raw materials for milk processing; and Halal certification. Jasper Emmanuel Y. Arcalas
EX ICO CIT Y—Mexico enacted a permanent ban on gillnet fishing in the northern Gulf of California last Friday in a bid to protect the critically endangered porpoise known as the vaquita marina. The measure, which makes permanent a temporary ban in place since April 2015, is the first step toward fulfilling an agreement reached this month by President Enrique Pena Nieto and the foundations of actor Leonardo DiCaprio and telecom billionaire Carlos Slim to try to save the vaquita. The diminutive vaquita is the world’s smallest and most en-
dangered marine mammal, with only about two-dozen remaining in their habitat in the upper Gulf. Their numbers have been greatly reduced in recent decades by the illegal use of gillnets, which are primarily used to catch the totoaba fish but can ensnare and kill vaquitas, as well. The World Wildlife Fund issued a statement supporting the ban. “This is a fantastic and encouraging step forward in the path to saving the vaquita, provided the ban is fully enforced and accompanied by fishing alternatives for local communities,” acting CEO Jorge Rickards was
Quest for food security
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read the study of the Organisation for Economic Co-operation and Development (OECD), titled “Interrelations between Public Policies, Migration and Development in the Philippines”, with interest, but also with surprise. How can the OECD study urge government to entice overseas Filipino workers (OFWs) to invest their hard-earned money in agriculture/agriculture ventures? While I agree that OFWs should use their remittances for investments (rather than sending all the money to their families), I feel that investments in agriculture make only sense if the risks and the opportunities (with success stories) are clearly outlined. It must be considered that the big trend in private investments is being poured into businesses with captive markets. Business conglomerates are investing into tollways, power plants or power distribution, water utilities, airports, seaports, real estate including casinos, telecommunication, hospitals and schools. Not into agriculture (with the exception of the Villars). But should OFWs? The OECD states: “The main challenge for the Philippine government is, therefore, to make the agricultural sector more attractive to investors and to move from a standpoint where food security is not only about purchasing power but also about investment and production.” I agree with that. But let’s start this process with companies/investors already active in the Philippines and with foreign investors interested in creating supply chains from farm-to-food production to market. Filipino migrant workers do not invest in agriculture-related businesses yet as they deem the sector risky and unprofitable. Additionally,
Henry J. Schumacher
europe Beat how can we encourage OFWs to invest in agriculture when the availability of land titles remains a huge problem? But I agree that the Philippine government should take the OECD study seriously and look at the reasons that make ensuring food security so complex. Addressing the problem of hunger and malnourishment in an economy such as the Philippines requires improvements in the productivity of the agriculture sector, particularly smallholder farms. The consequence of all this is for farmers to produce more, process more, market more and earn more to wipe out rural poverty, which breeds the rural to urban migration and rural to overseas migration. We need economic empowerment of the countryside. The empowerment of the countryside includes: n Access to finance—many agribusinesses are small and financially weak, requiring business development support, collateral substitutes, and other credit enhancements to improve their risk profile. In this context, a more comprehensive approach to crop insurance, which can help mitigate the numerous environmental risks (e.g., typhoons and droughts) that many smallholder farmers face on a perennial basis, is needed. Crop insurance, microinsur-
quoted as saying. Despite authorities’ oft-expressed commitment to saving the vaquita, enforcement has not been entirely effective. The swim bladder of the totoaba is prized in China and can sell for huge sums, offering a powerful financial incentive for fishermen to pursue that catch at the vaquita’s expense. The newly permanent measure provides for monitoring in the region, especially for fishing vessels and landing sites. It will be illegal to transport gillnets into the area, and fishermen will be required to report any lost gear to avoid harming the delicate ecosystem. AP
ance and microfinance have to work together. n Freeing-up the land market—the property-rights regime contains major deficiencies and greatly undermines the investment climate. The business of agricultural production relies heavily on exploiting and developing land for human needs. Indicative of inefficiencies in the land market, a staggering 11 million parcels of untitled properties litter a country of 24 million parcels. Landuse planning, zoning and overall management are weak, undermining property development and associated tax collection vital to public investments. n Infrastructure investments—priorities include farm-tomarket roads, postharvest processing facilities, irrigation, food terminals, cold storage and food processing factories. The lack of postharvest facilities cries out for more private-sector investment as part of efforts to manage overall supply chains. Farm-tomarket roads provide much-needed linkages. n Rationalization of extension services—with low productivity, the business of agricultural production would benefit from adopting new and innovative technologies. Even with advances in research and development, the latest research and information on improved agricultural practices (including intercropping) have not reached farmers sufficiently. In conclusion, before marketing investments into agriculture to OFWs, bold measures are needed to open up markets, unleash capital, address land reforms, improve infrastructure and rationalize extension services. Comments are welcome; contact me at Schumacher@mca.com.ph.
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GOING FOR MASTER’S OR DOCTORATE DEGREE
WHICH DEGREE IS BETTER?
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By Leony R. Garcia
OME students wouldn’t simply settle for their bachelor’s degree—the one they get from college. They would find ways to pursue advanced education by earning a master’s degree or doctorate degree. Today’s millennials know this well: advanced study will give them a competitive edge and makes them more marketable in their job fields. In many fields, having a postgraduate degree will put you ahead of the pack. From a practical standpoint, the advanced degree can open up vocational doors a bachelor’s degree alone would not necessarily open. Some employers will see your dedication and qualifications and may choose to hire you over an equally qualified but lesseducated job seeker. While the initial cost of grad
school can be quite expensive, obtaining a master’s or doctorate degree can give you a jump start into a higher wage. Because you have an advanced degree, your employer will know that they will have to pay you more. Another benefit of pursuing an advanced degree is an expanded base of knowledge, intellect and practical applications. When you attend grad school, you become an
expert in your field and this also makes you more marketable. There are several types of degrees you can earn in graduate school, the most common are the master’s degree (MA or MS) and doctorate degree (Ph.D., Ed.D. and others). These degrees vary in level, time to completion, and more.
MASTER’S DEGREES
A MASTER’S degree generally takes two, sometimes three, years to complete (after earning a bachelor’s degree). All master’s programs entail coursework and exams, and, depending on field, an internship or other applied experience (for example, in some fields of psychology). Some programs require a written thesis, others offer an option between a thesis and comprehensive exam. The value of the master’s degree varies by field. In some areas such as business, a master’s is the unstated norm and necessary for advancement. Other fields do not require advanced degrees for career advancement. In some cases, a master’s degree may hold advantages
over a doctoral degree. For example, a m aster’s degree in social work (MSW), may be more cost-effective than a doctoral degree given the time and funds required to earn the degree and the pay differential.
PH.D./DOCTORATE DEGREES
A DOCTORAL degree is a more advanced degree, but it takes more time (often a great deal more time). Depending on the program, a Ph.D. could take four to eight years to complete. Typically, a Ph.D. program entails two to three years of coursework and a dissertation, which is an independent research project designed to uncover new knowledge in your field and be of publishable quality. Some fields, like applied psychology, also require an internship of one year or more. Most doctorate programs offer various forms of financial aid, from assistantantships to scholarships to loans. The availability and forms of aid vary by discipline (e.g., those in which faculty conduct research sponsored by large grants are more likely to hire students in exchange for
tuition) and by institution. Students in some doctoral programs earn master’s degrees along the way.
WHICH DEGREE IS BETTER?
It depends on your interests, field, motivation, and career goals. Read more about your field and consult faculty advisors to learn more about which option will fit your career goals. Master’s degrees and Ph.D. degrees certainly differ, with advantages and disadvantages to each. Only yourself know which is the right degree for you. Take your time and ask questions, then carefully weigh what you learn about each degree, its opportunities, as well as your own needs, interests, and competencies.
WHAT CAN BE GAINED FROM ADVANCED EDUCATION
Besides being able to add the appropriate designation after your name, there are solid academic, career-related, and personal and interpersonal skill sets that are acquired through doctoral-level education. Here are some of the most prevalent skills that
can be expected from a graduate. Academic skills: Aptitude for Research, Critical and Creative Thinking, Academic Presentation, Teaching, Intellectual Strength, Focus, Tenacity, Stamina and Discipline Career-Related skills: Management and Organization, Communication, Research, Service, Problem Solving, Presentation Personal and interpersonal skills: Personal Effectiveness, Time Management, Project Management, Stress/ Anxiety Management, Leadership and Team Building, Persuasion, Consensus-Building. Simply stated, by earning a doctoral degree you’ll be joining an elite population. You’ll have the opportunity to achieve goals in your chosen field that may not be available to others. And whether you choose to be an author; an educator; or an innovator adding additional knowledge, training and research to your field; you’ll be considered an expert. For a list of universities and colleges offering Doctorate courses in Metro Manila, visit www.finduniversity.ph/universities/r=nationalcapital-region/doctoral-programs/.
OF
ATION
ror Special Feature
www.businessmirror.com.ph | Monday, July 3, 2017 A9
Incentivizing educational achievement
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By Leony R. Garcia
HOULD we pay students for good grades or give them rewards for topping the board exam? Every year, as soon as the results of board exams or licensure tests are out, we hear of various stories of students receiving cars, cash rewards or having a grand vacay for topping said exams. Recently, a newly Civil Engineer grad received a cool Php 1M cash from his alma mater for landing top 8 in the Professional Regulation Commission’s (PRC) licensing exam. Meanwhile, it has become a tradition for this provincial state university to award their alumni who top the board exam with a brand new car. The oldest university in the Philippines, on the other hand, treated their law school bar passers
with a grand vacation in the country’s top tourist destination in the Visayan region. Passing a bar exam or a licensure test is a big feat in itself but being on the top 10 is simply amazing. Awarding students for a job well done is not something new in a country like the Philippines which put premium to education. This reward system has been the subject of debates in the past. According to www.parent.co, psychological studies going back as far
as the early 1970s have found that rewards programs often result in less engaged students. The studies show that students who receive rewards are being trained to do the minimum amount needed to get the reward – not developing an intrinsic love of learning that ultimately makes them more successful academically and as an adult. The website also suggests to reward the child verbally by saying how the effort and studying paid off and how he or she is proud of the student. Further, it said the parent may suggest a celebration, like going to a special restaurant for a meal -- not as a reward but just an acknowledgment and celebration of a goal achieved.
Incentive ideas for academic achievement
ONE of the biggest challenges educators face is student motivation. This issue affects all levels of education from kindergarten to colleges. Concordia University-Portland shares ideas to reward academic achievement that can be applied in almost any setting. Start with loss. One tool that utilizes this information is a board in which students lose tokens for each incident of bad behavior or
STUDY ABROAD PROGRAM
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EARNING is a lifelong endeavor. Whether driven by constant pursuit to rise above the competition in the corporate world or for personal advancement, continuing education has proven to have several benefits. It is recognized as a worthy investment in one’s future that could open up a whole new world of opportunities. And studying abroad can be one of the most beneficial experiences one can have if you are up for the challenge and ready to go out of your comfort zone. Here are the top 5 reasons that may drive you to take the big leap. nGlobalize yourself. Studying abroad is more than just academic advancement in a foreign country. This is an opportunity to expose yourself to the world. Get immersed in a new culture, different places and people out of the comforts of your home. This is your chance to build your global network. In doing so, you will uncover unique traits, define your individuality and unleash a better version of you. nChallenge yourself. Simply living in a new and unfamiliar place can be overwhelming. You have your homesickness to deal with amidst the lifestyle change that you need to adapt to. But here’s the thought, if you sum up all of these seemingly small feats now, and you overcome it, wouldn’t you feel victorious? These realistic challenges once accomplished will make you a wise
individual and even give you the strength and maturity to face the rest of the challenges head on when you go back home. nDiscover a new career path. The experiences you can gain from studying abroad can impact change in your life. There is that great chance that you will discover new interests that can ultimately change your career path. May it be a decision to work overseas or bring back home your countless learnings, you have more to gain. And if you want to maintain an edge in a competitive workforce, higher education overseas is the way to go. nHone your language skills. One of the many benefits of studying abroad is learning a new language. And it is even beyond the technical learning, it comes with actual and real experience to practice what you learn. It grants you the opportunity to completely immerse your-
self and be competent at it. nAdvance your career opportunities. When you finish your study abroad program you will come home with a new perspective – a remarkable educational background, an impressive language skills, and the high spirit to impart the global learnings you gained. All of these make you very attractive in the eyes of Top 50 Corporations in the country. An international education can be one of the most rewarding experience one can gain. There are too many options to choose from. But if you are in search of holistic experience where you can study, live and work, then consider Australia in your checklist. Education Centre of Australia (ECA) is a fully accredited education provider with campuses in Australia’s key cities: Sydney, Brisbane and Melbourne. Its campuses offer a wide-range of programs from technical skills education to bachelors and master’s degree. Among its top courses are Master in Business and Project Management, Master of Enterprise Resource Planning Management, Master in Business Administration, Diploma in Accounting and Bachelor of Information Technology. To know more about their Study-Live-Work programs, visit their official Facebook page at https://www.facebook.com/ECAGlobalPH/.
failure to complete an assignment. For older students, removing privileges may be more compelling. Of course, to avoid constantly being in the role of punisher, it’s important to initially include privileges that may later be eliminated, such as free seating or listening to an iPod during work times. By having faith in students early, teachers encourage them to rise to expectations. Think small. Teachers and parents are often tempted to over reward. For young children, something as simple as a sticker or change in seating may be enough motivation. Some elementary schools have had success with tickets handed out randomly for exceptional behavior. Consider intrinsic motivation. It’s easy to fixate on the rewards of finishing school work: good grades, teacher and parental pride, and eventually a bright future. However, because of a difference in home life or personality, many students are not driven by extrinsic motivation. An adaptable educator may redirect to intrinsic motivation. Students naturally work hard in their areas of interests, so it helps to tie subjects to a fun topic, or relate problem areas to subjects a student excels in. Offer options. One way to en-
courage productivity is to allow students to choose how to complete their assignments. Without changing the length requirements or topic, give multiple options: create a website, give an oral presentation, or write a paper. Students still learn the information, plus they grow in independence, selfconfidence and creativity. Act quickly. Students doing well must be both praised and rewarded immediately. Because according to the scholars, “all motivating power of the incentives vanishes when rewards are handed out with a delay.” One of the best ways to encourage academic achievement is to create an environment in which achievement is valued. Though individual rewards are valuable, a goal that the whole class must reach together promotes internal support and positive peer pressure. Possible group rewards for stretches of good behavior or high class averages (depending on the grade level) include: an open book final, a field trip, class outside, a movie or party day. By choosing activities with relevance or educational value (like a cultural party or trip to a museum), teachers can promote the idea that learning is ultimately its own reward.
Disneyland of learning
WITH or without incentives, education should be a "Disneyland of learning." Both students and educators should enjoy "living, learning, and laughing” in learning institutions, according to Richard Gerver, the world-renowned motivational and business speaker. Gerver spoke before participants of the Philippine Higher Education Presidents’ Summit organized by Philippine Business for Education (PBEd) which this writer attended in 2014. A former school principal, Gerver was talking from his own experience. He transformed The Grange School – one of the worst performing schools in Great Britain – to a top performing school within two years. His secret? By “creating an environment that is so magical that kids are prepared to do the hard stuff for those moments of magic,” Gerver recalled telling his staff back in 2001. "Education should be a celebration of how people’s lives could be. It is a tool of empowerment. The job of educators is to raise their aspirations and sense of value – a profound sense of what they could be and where they could go,” he said.
The World BusinessMirror
A10 Monday, July 3, 2017 • Editor: Lyn Resurreccion
Uncertainty sweeping India as its new sales tax rolls out
country’s economy before the longterm benefits kick in.
Early slowdown
C
A commercial area in India Bloomberg
onfusion and uncertainty swept through India’s $2-trillion economy as businesses and consumers alike attempted to navigate a new nationwide sales tax that replaced a spiderweb of more than a dozen state and territory taxes and levies. The new goods and services tax (GST), formally ushered in at a latenight session of parliament overnight last Friday, unifies 29 states and 1.28 billion people into a single market for the first time. It’s expected to expand India’s narrow tax base and increase government revenues and will count as the most important economic reform of Prime Minister Narendra Modi’s three-year-old administration. The government expects the unified tax structure to improve the ease of doing business in India and boost foreign investment. “This will lead to increased compliance and give us an opportunity to make tax rates more reasonable, apart from leading to higher collections and providing strength to the economy,” Finance Minister Arun Jaitley told a packed indoor stadium
$2T
The volume of India’s economy comprising accountants in New Delhi last Saturday. “It is my belief that there will be some pain when there is a change and one where technology is involved.”
Treading carefully
On the first day of its implementation, many shops were closed and consumers stayed away in droves, deterred by the change in prices and uncertainty over how the tax would work. Car dealerships across the
country were taking time to adjust to the new regime, with some saying they had not received revised prices under the GST and could not record any sales billings. “We are not selling cars now because we are yet to get revised pricing details from Maruti,” said M. Mukhopadhyay, the CEO of Auto Hi-Tech Pvt Ltd., which sells cars from auto giant Maruti Suzuki India Ltd. “We are telling customers that there will be a price difference, but if they are willing to book a car now, then we are taking bookings.” A Maruti Suzuki spokesman said last Saturday the company had since communicated the revised prices to dealers. “It’s like the day after demonetization,” said Praveen Arora, 35, who runs AVM Computer at Nehru Place in the capital New Delhi, referring to the government’s sudden decision in November last year to withdraw 86 percent of the country’s currency from circulation. “People are confused. And the way the rates of IT [information-technology] products have been raised, it’s hit sales very hard—people are expecting to be billed at the old rates.” Businesses are also put off by the GST’s complicated structure, which includes four tax slabs ranging from 5 percent to 28 percent, as well as numerous exemptions. And it’s not clear what sort of damage the nationwide roll out will inflict on the
In the Mughal-era Chandi Chowk market in Delhi, spice wholesaler Sanjay Khandelwal had not processed a single sale last Saturday, even though tax rates on his spices remain the same and he’s enrolled in the GST Network. Retail buyers are worried, he said, because they’re unsure about the new system and there’s talk of police checking the trucks of merchants who have bought from wholesalers like him. “Today the shop is empty,” the 32-year-old said. “Our customers are scared of being harassed by the police.” At one of the oldest shops in Delhi’s upmarket Connaught Place business district, Baluja’s Shoes owner Vijay Mehta is weighing the short-term impact on his business. “It’s easier for someone like me with three accountants to help, but the smaller traders are definitely going to have a tough time,” Mehta said. The liquor industry was expecting short-term negative impact as it’s not captured by the GST and won’t receive input credits, said Roshini Sanah Jaiswal of Jagatjit Industries Ltd. “The fact that certain industries have been left out of the GST is also going to be a major implementation issue,” Jaiswal said. “Hopefully, over the period of time the Modi government will have a uniform GST policy.” Meanwhile, at Max Cinemas in Mumbai, Shabu Bhargavan, 32, was shocked to be provided with a small, white scrap of paper with his seating details scribbled in blue pen when he went to book tickets for a film. The server’s been down since June 30 while the system is upgraded for the new tax, reception staff told him, so all ticketing was being done by hand.
Growth potential
Despite the initial hiccups, the economy stands to benefit over the long term as efficiency gains and higher government revenues translate into stronger growth potential, Kotak Institutional Equities wrote in a note on June 27. “We would be cautious on economic growth for next one to two quarters,” the note reads. “The GST rate structure will be neutral to marginally disinflationary for CPI [consumer price index]. We estimate CPI inflation to be lower by around 20 bps on an average due to GST rates.”
US cyber warrior begins Nato job as Trump pressures alliance
U
.S. President Donald J. Trump will have less scope to bash the North Atlantic Treaty Organization (Nato) now that an American is at the helm of the alliance’s technology and cyber-security arm. Kevin Scheid, a veteran of the US Department of Defense, became head on July 1 of the Nato Communications and Information (NCI) Agency, which runs the electronic networks of the 29-nation alliance. NCI Agency spends about €1 billion ($1.1 billion) a year to ensure Nato’s technological backbone is up to the tasks of fighting terrorism, protecting European airspace, conducting maritime operations and withstanding cyber attacks. “Not only do we think about the future and trying to develop the capabilities that the command needs and the nations need, and develop those capabilities, but at the same time we have to make sure that the existing networks are up and running and secure,” Scheid, who is serving a three-year term as general manager of NCI Agency, said in an interview in Brussels. This “gets NCI Agency deeply involved in the area of cyber security”. Trump has shaken seven decades of
American foreign policy by questioning the relevance of US-led Nato, which he called “obsolete” during his presidential campaign. Since entering the White House in January, Trump has dropped that label while pressing allies in Europe to foot more of the common defense bill and Nato as a whole to play a bigger role in fighting terrorism.
State attacks
NCI Agency, with a staff of more than 2,000, was formed in 2012 from the merger of five Nato units. The group contracts out to industries to bolster the alliance’s land, sea, air and cyber capabilities and will be seeking bids for €3.2 billion in orders for satellite communications, air and missile defenses, cyber security and advanced software. Cyber security has also moved to the top of Nato’s agenda, with Secretary-General Jens Stoltenberg saying attacks on the alliance’s electronic infrastructure spiked 60 percent last year to an average of 500 a month. Most of the incidents were state-sponsored, according to Nato. The worldwide cyber threat was highlighted last week when an attack that started
in Ukraine hit businesses, port operators and government systems in the US, South America, Asia and elsewhere in Europe. Among Scheid’s most immediate tasks is to ensure that Nato’s new headquarters in the Belgian capital has properly protected information-technology systems. Construction of the €1.1-billion glass-and-steel structure, which Scheid called “one of the world’s most complex and largest security systems”, is virtually completed while IT work continues. “What has been challenging about the new Nato headquarters is the complexity of a smart building,” he said. “It’s a network surrounded by glass, steel and some cement.” Nato intends to start moving 4,500 staff members to the site, located across the street from the current headquarters, later this year. Scheid said the new building is “more complex than what was estimated early on.” At a May 25 meeting where the alliance’s leaders inaugurated the complex, Trump, after hectoring fellow leaders to increase military spending, said: “I never asked once what the new Nato headquarters cost. I refused to do that. But it is beautiful.” Bloomberg News
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Trump’s attack on media brings crowd to its feet
W
ASHINGTON—President Donald J. Trump began his holiday weekend getaway with another denunciation of the news media, using a celebration of US veterans and freedom at a Saturday evening rally to thunder that he would not allow the “fake” media to stop his agenda. Speaking to raucous supporters at a faith rally at the Kennedy Center for the Performing Arts in Washington, Trump brought the crowd to its feet by condemning news organizations. “The fake media is trying to silence us,” Trump told the crowd at the concert hall, after returning to Washington briefly from his weekend getaway at his golf club in New Jersey. “But we will not let them. Because the people know the truth. The fake media tried to stop us from going to the White House. But I’m president and they’re not.” Trump praised US veterans and promised to defend religious liberty in America. Earlier in the day, the president posted on Twitter about the fake media and accused secretaries of state from around the country of trying to hide something from a panel investigating widespread voter fraud that experts say never happened. In a Twitter message last Saturday morning, Trump said, “Numerous states are refusing to give information to the very distinguished VOTER FRAUD PANEL. What are they trying to hide?” Trump set up the Presidential Advisory Commission on Voter Integrity to find evidence for his debunked claim that millions of votes were cast illegally in the 2016 presidential election. Last Wednesday the group sent a letter to all 50 secretaries of state asking for personal data about the nation’s 200 million voters. The response from many of the state-voting officials was a resounding “no”. In Mississippi the secretary of state, Delbert Hosemann, a Republican, said, “My reply would be: They can go jump in the Gulf of Mexico.” Trump’s tweet suggests that he is not happy with those responses, but it is unclear what he can do about them. The commission chairman told news organizations last Friday that it was up to each state to decide what information to share with the panel. The president started his Saturday tweet storm on a positive note, offering a “Happy Canada Day” to the people of that country and to his “new-found friend” Justin Trudeau, the prime minister. But his tone quickly turned negative. He continued his attack on Joe
Scarborough and Mika Brzezinski, the hosts of MSNBC’s Morning Joe, two days after saying on Twitter that Brzezinski had been “bleeding badly from a face-lift” during a social event last year. Last Saturday he added, “Crazy Joe Scarborough and dumb as a rock Mika are not bad people, but their low-rated show is dominated by their NBC bosses. Too bad!” Taking note of MSNBC’s decision to end the new show hosted by Greta Van Susteren, the former Fox News anchor, Trump asserted that she “was let go by her out of control bosses at @NBC & @Comcast because she refused to go along w/ ‘Trump hate!’” In fact, Susteren’s show, For the Record, had struggled with very low ratings since she arrived at the network about six months ago. Trump also continued his blistering criticism of CNN. The president wrote: “I am extremely pleased to see that @CNN has finally been exposed as #FakeNews and garbage journalism. It’s about time!” The president may have been referring to the latest hidden camera video produced by James O’Keefe, the right-wing activist. The video appears to show a producer for CNN’s “New Day” program calling Trump “a clown” and “crazy,” among other things. The producer also appears to say US voters are “stupid.” O’Keefe’s previous videos have been found to be selectively edited and designed to disparage his subjects. A spokesman for CNN declined to comment. Trump and his family are spending several days at his Trump National Golf Club in Bedminster, New Jersey. He returned to Washington briefly to deliver remarks at the “Celebrate Freedom” rally on behalf of veterans. At the concert hall, Trump stood in front of a large American flag and soaked up the adoration of a crowd of largely evangelical supporters who roared their approval of his promise to defend religious liberty, fight entrenched interests, win battles against terrorists and say “Merry Christmas” again. “Above all else, we know this. In America, we don’t worship government. We worship God,” Trump said, bringing the crowd to its feet again. Trump told the story of an 89-year old soldier who fought in the Battle of the Bulge in World War II and was at the event. And he introduced a soldier who had been hurt in his fifth deployment overseas. “Your legacy like our gratitude will live forever,” he said. New York Times News Service
briefs
➜ Samsung to sell recycled Note 7 phone in South Korea at $611
SEOUL, South Korea—Samsung Electronics said last Sunday its recalled Galaxy Note 7 phones will be recycled and sold starting this week in South Korea. The Galaxy Note FE phone, using unused parts in the recalled Note 7 smartphones, will go on sale in South Korea on Friday at 700,000 won ($611), about three quarters of its original price. The company said the supply will be limited to 400,000 units. Overseas sales plans will be determined later, it said in a statement. Samsung said the Note FE has “perfect safety”. AP
➜ Israel’s ex-PM Olmert released from prison
JERUSALEM—Former Israeli Prime Minister Ehud Olmert was released from prison early last Sunday days after a parole board granted him early release from his 27-month corruption sentence. Prison Service Spokesman Assaf Librati said Olmert, 71, was whisked away by Israel’s security service after his release and driven home after serving 16 months. He said the terms of Olmert’s early release stipulate that for the next few months the former prime minister has to do volunteer work, must appear before police twice a month and cannot give interviews to the media or leave the country. He added that President Reuven Rivlin could relieve him of the parole restrictions. AP
➜ Damascus car bombs rock capital, multiple casualties
BEIRUT—Syrian state TV says a series of car bomb explosions have rocked the capital, resulting in multiple casualties. It says a suicide car bomber struck near Tahreer Square in central Damascus early last Sunday, and that two other bombs went off after security forces chased other attackers. It was not immediately clear if the two explosions were caused by suicide bombers or detonated by security forces. Such attacks have been rare in Damascus, the seat of power for President Bashar al-Assad. AP
➜ Taliban kill 13 local militiamen in ambush
KABUL, Afghanistan—Afghan officials say the Taliban have attacked a local militia, killing 13 pro-government fighters. Munir Ahmad Farhad, spokesman for the governor of the northern Balkh province, says the local forces were on their way to take part in a security operation when they were ambushed in the Chemtal district. The men were part of a local militia established under the authority of the Interior Ministry to defend the area from insurgents. The Taliban, who have increased their attacks since the start of their annual spring offensive in April, claimed responsibility for the ambush. AP
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4 Visayan fisherfolk bag Ocean Heroes awards
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our Tañon Strait fisherfolk advocated for the conservation, coastal law enforcement and sustainable fisheries in the Visayas. Their selfless efforts did not go unnoticed. They were honored as Ocean Heroes during the recent ceremony held in Bacolod City.
The 2017 Ocean Heroes are Virgilio Aviso, Renato Buenviaje, Jocelyn Moya-Hekrdle and Mariano Sarcol. They stood out from dozens of candidates for their commitment to protect the Tañon Strait, a 161-kilometer strip dividing the provinces of Cebu and Negros Island. Recognition was also given to Tañon Strait marine-protected areas (MPAs), which are managed through strong local government and community collaboration. The MPAs are now providing a wide range of environmental, social and economic benefits for coastal communities. The strait is one of the largest and most productive MPAs in the country, hosting 63 percent of the country’s coral species and 14 types of whales and dolphins, while providing food and livelihood for 42 cities and municipalities in Cebu, Negros Oriental and Negros Occidental.
“Our Ocean Heroes inspire so many, including our enforcement agencies, with their vigor and courage in protecting the Tañon Strait. May their determination and dedication spread, as we work together to protect and conserve our rich, yet fragile, marine resources,” Oceana Philippines Vice President lawyer Gloria Estenzo Ramos said. The awards were integrated with the recognition given to the exemplary stakeholders and partners of the province of Negros Occidental, during the culminating activity of the celebration of the 25th year of the establishment of its Provincial Environment Management Office under the leadership of lawyer Wilmon Penalosa last weekend in Bacolod City. Gov. Alfredo Maranon led the public officials and participants in the momentous occasion.
Aviso
BuenavIaje
Moya-HeKRdle
Sarcol
Launched in 2016 the Ocean Heroes Awards is a partnership among Oceana Philippines, the Department of Environment and Natural Resources and the Bureau of Fisheries and Aquatic Resources to honor courageous community leaders to ensure the sustainable management of the marine ecosystems of the Tañon Strait. Its first batch of winners were Norlan Pagal, Oliver Dayupay,
Veda Raunillo and Roberto Quigay. This year’s Ocean Heroes Awards expanded with partnerships of the provincial governments of Cebu, Negros Occidental and Negros Oriental, Tañon Strait Protected Area Office and Rare Philippines. The inclusion of a new category for “Best-managed Marine Protected Area” inside the protected seascape was spearheaded by the Provincial Agriculture Office, Rare Philippines and the province of Negros Oriental.
practical conservation measures and proper fishing practices. Through his leadership, the residents are taking ownership and pride in practicing responsible stewardship over the marine resources. n Renato Buenviaje, 55, from Escalante City in Negros Occidental, has served as a fish warden for over a decade. He also led a large mangrove-rehabilitation program in his community while ensuring the establishment of the local fisheries council to oversee the rehabilitation of MPAs and other marine habitats. n Jocelyn Moya-Hekrdle, 51, from Toboso in Negros Occidental, led the establishment of environmental associations and spearheaded activities on marine conservation to protect the marine resources and habitats
in and around her home community. She is active in promoting fisheries law enforcement in the Tañon Strait. n Mariano Sarcol, 60, from the coastal municipality of Barili in Cebu, was recognized for his advocacy in establishing MPAs, protecting municipal waters against the encroachment of illegal commercial fishers, plus continuously enforcing fishery laws. “I just want to ensure a steady and sustainable supply of wild fish and shellfish. By reducing illegal fishing, I can ensure that our coastal communities will always have food,” he shared. Oceana works around the globe to promote sustainable fisheries and science-based coastal-resource management.
Ocean Heroes 2017
n Virgilio Aviso, 65, from Amlan in Negros Oriental, led a focused coastal and marine awareness and value-changing campaign for his community, encouraging fellow fishers and their families to adopt
Study on Olango wildlife sanctuary recommends policies on conservation
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study conducted by the School of Environmental Science and Management (Sesam) of the University of the Philippines Los Baños (UPLB) uncovers the impact of urbanization on the Olango Island Wildlife Sanctuary, Cebu. The Olango Island Wildlife Sanctuary (OIWS) located in Metro Cebu, a 5,800-hectare of low-lying areas of intertidal sandflats, mangroves, seagrass beds, coral reefs and islets, was proclaimed a wildlife sanctuary under Proclamation 903 in 1992. However, urbanization, specifically coastal development, population pressure and the availability of livelihood and employment have posed a risk in the conservation of the protected landscape. To determine these risks and recommend policies regarding urbanization adjacent to OIWS, Dr. Rico Ancog, assistant professor at Sesam-UPLB, conducted the study, “Urbanization adjacent to a wetland of international importance: The case of Olango Island Wildlife Sanctuary, Metro Cebu, Philippines.”
The study surveyed land-cover change through the comparison of remotely sensed land cover map, available land-use maps, historical population data and householdlevel information. From 1970 to 2010 an increasing trend in urbanization in the coastal areas of Cebu Main Island adjacent to OIWS was attributed to an increase in population. T he same study, however, showed that total population increase was lower from 2000 to 2010. This was attributed to the policy restrictions imposed by the proclamation of OIWS. In terms of livelihood, residents within the 10-kilometer radius of OIWS source their income from fishing. Those living farther away from the vicinity of the protected area source their income as factory workers in the urban and industrial areas. The urbanization in Metro Cebu caused issues and problems related to fishing in coastal communities in Cebu. These issues include decreasing fish stocks, illegal fishing practices and presence of solid wastes in the fishing areas.
To address the ongoing urbanization in Metro Cebu, the study recommended improved land-use planning that takes into consideration the alignment of regional, local and site-specific concerns of OIWS as a wetland of international importance. Moreover, the study recommended to further strengthen the conservation framework of OIWS to address the environmental issues of Metro Cebu’s urbanization. It also recommended to include adjacent marginalized fishing communities of OIWS in the decisionmaking process to provide them an opportunity to improve the management of wetlands while addressing the pressures of urbanization at a regional scale. The authors of the study, Dr. Ancog and Clarissa Ruzol, won the Dr. Elvira O. Tan Award in the Natural Resources and Environment Category during the the Department of Science and Technology-Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development’s sixth anniversary celebration on Wednesday. S&T Media Service
PLDT Group bats for Uber earth-friendly travel options
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typical road vehicle emits six to nine tons of greenhouse gases a year, according to the US Department of Energy. Road transportation’s large contribution to global warming has led to urgent calls for individuals and companies to minimize their travel-related carbon footprint. The PLDT Group—comprised of PLDT, its wireless subsidiary Smart Communications and digital-innovations unit Voyager Innovations— has found more ways to do that through a partnership with ride-sharing company Uber. As an alternative to buying additional vehicles, the group has begun offering Uber rides to its employees. Those required by their functions to
leave the office often, like sales personnel, are given an Uber for Business account, which they can use for official trips. This is linked to a central payment account where their fares are automatically charged. This means the employees do not need to shell out personal money and file paperwork for reimbursement. Moreover, an Uber dashboard enables the PLDT Group to see commonly used routes, and plan how to maximize future trips. Uber for Business is currently on a pilot run among PLDT, Smart, and Voyager employees, and will eventually be rolled out to a larger base. The PLDT Group is the country’s first and biggest conglomerate to use Uber’s digital solutions
to improve fleet management. The Uber partnership is one of the group’s many efforts to enable Filipinos, its workforce included, to benefit from digital technologies like never before. “By outsourcing transportation services on a per-need basis, we accomplish a lot of things— we minimize our carbon footprint while cutting our expenses on fuel, maintenance, insurance and parking. Meanwhile, our employees enjoy stress-free mobility. They don’t need to drive and spend precious time looking for parking spaces. They can focus their energy on delivering awesome experiences to our customers,” PLDT and Smart Chief Revenue Officer Eric R. Alberto said.
Biodiversity Monday BusinessMirror
Asean Champions of Biodiversity Media Category 2014
Monday, July 3, 2017 A13
Editor: Lyn Resurreccion • www.businessmirror.com.ph
A man on a motorized boat passes through a flock of migratory birds preying on fish in Naujan Lake. Alain Pascua
NAUJAN LAKE NATIONAL PARK
Oriental Mindoro’s ‘mine of gold’ T
By Jonathan L. Mayuga
@jonlmayuga
he Naujan Lake National Park (NLNP), a key biodiversity area (KBA) in the Philippines, is home to many species of plant and animal wildlife. The Naujan Lake in Oriental Mindoro province and its surrounding watershed is home to unique species of fish, birds, mammals, reptiles and amphibians, making it one of the most important nature-conservation sites in the Philippines. Director Theresa Mundita S. Lim of the Department of Environment and Natural Resource’s (DENR) Biodiversity Management Bureau (BMB) said in a phone interview last weekend the NLNP is one of the country’s important wetlands, and its protection and conservation is important to the survival of many species of migratory water birds, particularly wild ducks. On March 27, 1956, recognizing its rich biological diversity, President Ramon Magsaysay signed Presidential Proclamation 282, making the NLNP among the first protected areas in the Philippines long before Republic Act 7586, or the National Integrated Protected Areas System (Nipas) Act of 1992, became a law. The NLNP covers a total of 21,655 hectares, including the lake, which has a total of 8,125 hectares surface area. It is shared by a total of 24 barangays in the towns of Naujan, Victoria, Socorro and Pola in Oriental Mindoro.
‘Mine of gold’
Naujan, the town from which the Naujan Lake was named after, used to be called “Nauhang”. The term was coined even before the arrival of foreigners on the island of Mindoro. To the Spaniards, Naujan is the island of Mina de Oro, or “mine of gold”, while to some Chinese scholars it is Ma-I (country north of Borneo) and Min-to-lang (important port along the coast), according to a profile of NLNP prepared by the DENR-BMB. According to local legends, Naujan got the name from the words “nauhaw si Juan”, or literally “Juan was thirsty.” While the description “mine of gold” refers to the yellow metal, the lake, its watershed and the bounty of the entire ecosystem can also be considered as economically
important, like gold, as it provides of sources of food, water and livelihood for centuries.
Unique wetland
The country’s fifth-largest lake, the Naujan Lake has a surface area of 8,125 hectares, rising 20 meters above sea level with a maximum depth of 45 meters. The DENR-BMB reported that its watershed, which covers about 30,000 hectares, is drained by the Macatoc, Borbocolon, Malayas, Malabo, Maambog, Malbog and Cusay Creek in the East, by Bambang, Tigbao and Tagbakin Creek in the West, Subaan and Singulan River in the South. Because of its Type III climatic condition, which has no pronounced maximum rain period and with a short dry season lasting from two to three months, the lake provides adequate water ideal for agriculture. On the other hand, the water of the lake drains via its lone outlet, the Butas River flowing toward Tablas Strait with an outlet at Barangay Lumang-bayan in Naujan at the north of the NLNP. Underscoring the importance of maintaining wetland ecosystems healthy, Lim said that, besides providing water for domestic use and irrigation, and food, like freshwater fish, lakes are also important in providing communities with natural defense against climate change’s worst impacts. “Wetlands, like lakes, marshes and, most especially, peats, help prevent flashfloods and can mitigate climate-change effects, like sea-level rise and flood brought about by storm surge,” Lim told the BusinessMirror over the phone.
Biogeographic zone
The NLNP is one of the major biogeographic zones of the Philippines. Experts describe it as a unique wetland because it harbors numerous unique flora and fauna in various habitats—from terrestrial, freshwater and coastal to marine ecosystem. It hosts several island endemic species that are found only in Mindoro and nowhere else in the world. Besides its land cover, the type of water in the lake—a permanent
freshwater, which is very rare—is one of the peculiar characteristics of NLNP. Another prominent land cover in NLNP is marshland, which measures about 585 hectares, or 3 percent of NLNP and a portion of it is peatland. In such habitat, all 16 species of migratory birds recorded in the park are found, including the threatened Philippine duck.
Ramsar site
Being an impor tant stag ing g rou nd for m ig rator y bi rd s, the NLNP has been declared a Wetland of International Importance under the Ramsar Convention on November 12, 1999. There are seven listed Ramsar sites in the Philippines. The other six Ramsar sites are the Las Piñas-Parañaque Critical Habitat and Ecotourism Area along Manila Bay; the Puerto Princesa Subterrenean River National Park in Puerto Princesa City, Palawan; Tubbataha Reefs Natural Park also in Palawan; Olongapo Island Wildlife Sanctuary in Olongapo City; Agusan Marsh Wildlife Sanctuary in Agusan provinces; and the Negros Occidental Coastal Wetlands Conservation Area in Negros Occidental. The NLNP is also recognized as an Anatidae Site of the East Asian-Australasian Flyway Network mainly because of the huge number of migratory birds, particularly wild ducks, visiting the lake during migration season.
Ecosystem functions
Like most inland wetlands, which inc lude r iver systems, la kes, marshes and peats, Naujan Lake performs important ecosystem services, including serving fisheries, irrigation, transportation and water for domestic uses. W hile only 15 percent of the total area of the park is classified as forestland, its vegetation is impressive. It is covered with a mixture of forests, shrubs and grassland with 443 indigenous and 74 exotic species, many of which are threatened or potentially endangered. T he s w a mps a nd m a rshes within the NLNP, which include peat land, also perform valuable ecological functions, including serving as silt and pollution traps, while the presence of varied wildlife and the lake’s aesthetic and recreational value adds to its potential for ecotourism.
Biodiversity
According to the DENR-BMB, terrestrial and aquatic wildlife thrive in the NLNP.
A total of 105 species of birds, 21 species of mammals and 33 species of reptiles and amphibians were recorded in the NLNP. These include the endemic and threatened Philippine duck and the globally significant population of tufted ducks, as well as other migratory water birds, such as terns, herons, egrets, bitterns and stilts. Endemic and threatened birds, such as the Mindoro imperial pigeon, Mindoro bleeding-heart pigeon, black-hooded coucal and Mindoro hornbill, are also found in the area. The endemic Philippine freshwater crocodile was also discovered in the NLNP.
Native, migratory fish
The Naujan Lake is known for having good number of native fish, including the endemic goby fish, or biya. According to the DENR-BMB, a total of 30 fish species have been recorded in the lake. Also, 11 migratory fish species have been recorded in Naujan Lake in 2011, making it an important breeding ground, nursing and feeding ground, for migratory fish, as well. Meanwhile, 18 of the fish species recorded in NLNP are species of economic importance. Two of these species are classified as globally threatened, the pait (vulnerable) and common sawfish, also known as barakan or pakangan (critically endangered) in Bicol on the Red List of Threatened Species of the International Union for Conservation of Nature (IUCN). The majority of the fish species recorded in Naujan Lake were migratory species living primarily in marine environment but frequently visit freshwater ecosystems through the Butas River and stay, but return to the sea when they become sexually mature. According to the Information Sheet on Ramsar Wetlands provided by the DENR-BMB, some species just enter freshwater in pursuit of possible prey, and leave afterward. “In this process, Butas River serves as corridor connecting a marine environment and the freshwater ecosystem of Naujan Lake. Also, it is the only outlet of the lake toward the sea,” the information sheet stated. M o r e o v e r, a t l e a s t t h r e e elasmobranch species, such as sharks and rays, have been recorded in Naujan Lake and Butas River. These incude two nearthreatened species—the bu l l shark and black-tip reef shark. Salmons are known to migrate from the ocean to breed in freshwater, traveling against raging rivers to reach the lakes.
In the Philippines certain fish species, like the ludong—or lobbed river mullet breeds or “President’s fish”—also migrate to feed, if not breed, in rivers and lakes. It also breeds in the ocean. T h i s f i sh spec ies m ig rate through rivers, particularly in Cagayan River, and lakes during certain stage of its life cycle before they become mature to breed in the ocean. The talakitok, a marine-water fish, breeds in brackish water, usually the mouth of a river. When it finds it way to Taal Lake through the Pansipit River, they grow and become maliputo, Lim said.
Off-limits to aquaculture
Ricardo Natividad, a forester and the protected area superintendent of the NLNP, said the Naujan Lake is under a strict management regime. He told the BusinessMirror in a phone interview last weekend that, unlike other lakes in the country, the Protected Area Management Board (PAMB) wants to keep the lake healthy, even against invasive alien fish species, like tilapia and bangus (milkfish). “There are no fish cages in Naujan Lake. Fish-cage operation is prohibited because we don’t want tilapia and bangus affecting our native fishes in the lake,” Natividad said in Filipino. He said because of this, they are able to maintain a healthy population of native fish in the lake. “Unlike in Laguna de Bay and Taal Lake, we do not allow aquaculture because it will threaten the population of native fish,” Natividad said. Shrimps and crabs can also be found in Naujan Lake, along with native fish, like gourami, mudfish, white goby and common carp. Bangus and tilapia have been known to occur in Naujan Lake but the population is not alarming, unlike in areas where fish-cage operation is allowed. “We also strictly prohibit the release of exotic fish in the lake because we don’t want to have a problem like Laguna de Bay and Taal Lake,” he said.
Healthy but threatened
Joy Navarro, Ecosystem Management Specialist of the DENRBMB’s Caves, Wetlands and Other Ecosystems Division, said over last weekend in a phone interview the Naujan Lake is relatively healthy, with native fish species still thriving in the area. She told the BusinessMirror this is mainly because of the strong management regime put in place by the PAMB and implemented by the Office of the Protected Area Superintendent.
“Many migratory birds stay at the Naujan Lake because they found the area to have a healthy environment. Wild ducks, for instance, go there because there are plenty of food to feed on,” Natividad said. However, she said like most lakes, the Naujan Lakes remain vulnerable to various threats. A serious threat to the lake is the increasing population of people living around it. Natividad said most of the people living in the area are farmers, and the use of pesticide and fertilizers are sure to find their way to the lake. She said there are reports that fish catch in the area is dwindling, prompting some residents to clamor to the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) to introduce tilapia in the lake. “We are opposing this because it will surely have adverse impact to native fish species,” Navarro said, citing the case of the Laguna de Bay and Taal Lake, where native fish species are threatened by tilapia and other invasive alien fish species. According to Navarro, the people living around Naujan Lake need livelihood support to reduce their overdependence on the lake’s bounty.
Management plan
Recognizing the importance of protecting and conser ving t he Nauja n L a ke, t he Mi ndoro Biodiversity Conser vation Foundation Inc. and the DENR Occidental Mindoro, Oriental Mindoro, Ma r induque, Romblon and Pa lawan jointly facilitated the development of a 10 -year management plan for the entire NLNP. The Naujan Lake National Park Management Plan 2014-2024’s vision for NLNP carries four major elements: (a) peaceful and abundant lake and its environs; (b) effective management system in place; (c) biological diversity is given importance; and (d) communities enjoy a sustainable and progressive way of life. Among its objectives is to ensure that the NLNP’s aquatic and terrestrial resources and environment are conserved to provide long-term benefits from sustainable use of natural resources and ecosystem services to communities and other stakeholders. The plan, including strategies, are now in place. The next step is to implement it and make sure that the lake and its bounty, like a real “mine of gold” will continue to provide for people and wildlife alike.
A14 Monday, July 3, 2017 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
Why the peso is down
W
E live in a time when it seems to be difficult to get beyond the headlines to the details that genuinely matter. If you went to the supermarket this past Friday and the price of pork pigue was P180 per kilo and today it is P220, what would you call that? You might say that pork is more expensive today than last Friday, but what does that mean? It means that the price (value) of pork denominated in pesos is higher. Conversely, and also accurate, is that pesos are worth less as measured in pork than before. Therefore, pork is “stronger” and the peso is “weaker” in terms of the pork/peso exchange rate.
There are many reasons for the fluctuations of the pork/peso rate as there are for the peso/dollar rate. But you do not see any headlines like “Peso weakens anew against pork” as you do with the dollar. Of course, the currency-exchange rate affects many more factors in the economy than the price of pork. But is the concern about the peso/dollar rate justified? Does it tell us anything that is economically important? In 2013 the exchange rate was 40.65 to 1 dollar. The US dollar index was at 79.23 against a basket of currencies. The dollar index has appreciated to the current 95.39 even as the peso depreciated to the current 50.50. The dollar has gained 20 percent against the global currencies; the peso has lost 24 percent in value against the US dollar. Why has the peso depreciated more against the US dollar than other currencies? One major and overriding influence on currency-exchange rates is interest rates. The US Federal Reserve has raised rates twice this year. In anticipation of that, the dollar index moved to a high of 103 in January. The Bangko Sentral ng Pilipinas has said repeatedly it is not going to raise local interest rates, making it less desirable to own pesos and deposit in local banks. Look at where the Philippine rates are in comparison to our neighbors. The Philippine base rate is 3 percent. Indonesia is at 4.75 percent, and Vietnam at 6.5 percent. So, if you want to park your money someplace, the Philippines is not at the top of the list. However, since January 2017, the peso has lost only 2 percent (from 49.52 to 50.50) against the US dollar compared to 6 percent against the yen and almost 9 percent to the Australian dollar. But the biggest loss has been against the euro: 11 percent. Money is flowing out of the Philippines and it is not because of negative sentiment. It is because of increasing imports. The trade deficit is the main culprit, reaching a record $25 billion in 2016 as imports rose by 14 percent while exports dropped 4.7 percent, Development Bank of Singapore noted. Total consumer spending is up 14 percent in the past two years and much of that spending is on imported raw materials like crude oil and finished goods. While April imports were flat year-on-year, both February and March posted 20-percent increases, with January up 9 percent. Money coming in boosts the value of the peso. Money going out lowers that value. Depending on the foreigners for the health of the economy is wrong. It is our job—not theirs—to “Buy the Philippines” and “Invest in the Philippines”.
Two rules for wealth Atty. Jose Ferdinand M. Rojas II
RISING SUN
T
here are many Filipinos who spend the majority of their lives working hard, either in the country or abroad. Yet, at the end of their lives, when they could no longer work, they sometimes end in near-poverty and they have nothing to show for all the years of hard toil. I have been reading recently about what financial experts call the “lifestyle creep”. It is when one increases his or her standard of living to match an increase in income. It manifests as the decision to buy an upscale home in an expensive subdivision after receiving a huge income increase, or it could be spending millions on a fancy
Choose your battles Atty. Lorna Patajo-Kapunan
legally speaking
Since 2005
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car after earning a windfall. Along with that expensive home comes a huge real-estate tax, expensive utility bills, bigger maintenance costs, et cetera. At the end of one’s life, when a person loses his job and finishes off his savings, he might be forced to sell these properties for cheap to be able
T
here are three branches of the government—Legislative, Executive and Judiciary. Each department of the government has exclusive cognizance of the matters within its jurisdiction and is supreme within its own sphere. But it does not follow from the fact that the three powers are to be kept separate and distinct that the Constitution intended them to be absolutely unrestrained and independent of each other. The Constitution has provided for an elaborate system of checks and balances to secure coordination in the workings of the various departments of the government.
Basically, the Legislative branch is generally limited to the enactment of laws. The Executive branch implements the laws and the Judicial branch interprets the laws. The call for “inquiry in aid of legislation” can only be used wherein it is indispensable to the lawmaking process. The power of both houses of Congress to conduct inquiries in aid of legislation is not absolute or unlimited as Section 21 of Article VI of the Constitution circumscribes the exercise. The investigation must be “in aid of legislation” in accordance with the published rules of procedure and that “the rights of persons appearing in or affected by such inquiries shall be respected”. It follows then that the rights of persons under the Bill of Rights must be respected, including the right to due process and the right not to be compelled to testify against one’s self (Bengzon v. Senate Blue Ribbon Committee, et al. GR 89914). There is nothing complicated about these two basic principles of separation of powers and checks and balances. And yet, no less than the Supreme
Court has to remind the House of Representatives that it is infringing on the independence of the Judiciary and the separation of powers when it issued a show cause order against three Court of Appeals (CA) magistrates who ordered the release on bail of six officials of the provincial government of Ilocos Norte. These six officials (now known as the “Ilocos Six”)—Pedro Agcaoili (Provincial Planning and Development Office chairman); Josephine Calajate (provincial treasurer); Eden Battulayan (Provincial Treasurer’s office staff); Encarnacion Gaor (Provincial Treasurer’s office staff ) and Evangeline Tabulog (provincial budget officer)—have been detained since May 29, at the Batasang Pambansa in Quezon City for their alleged refusal to shed light on the alleged misuse of P66.45 million in tobacco levy funds to buy vehicles without public bidding under the Watch of Ilocos Norte Gov. Imee R. Marcos. The House Committee on Good Government and Public Accountability cited for contempt these Ilocos Six for snubbing twice the committee’s
to pay for an expensive medical procedure, or to simply pay for regular expenses. What is left at the end of a long life spent working could be some money from social security and not much else. Then one might wonder whether all those meals at expensive restaurants and the holidays in exotic foreign shores were all worth it. Financial experts strongly advise against living from paycheck to paycheck, which means spending all of what one makes. When the salary is small, the expenses are small; but as soon as it increases, the expenses also increase—this is a huge mistake. The billionaire Warren Buffet lives in the same modest house that he bought many years ago for a little more than $30,000. In the same way, financial experts believe that keeping the same house and car even if one’s income increases is a very wise financial move. In a nutshell, live below your means so you can save
more money that you can invest. A study revealed that 83 percent of self-made millionaires bought modest homes and lived in them for the rest of their lives. They also bought good used cars, ate home-cooked meals, and bought reasonably priced clothing. They are experts at delaying self-gratification, which means that they won’t give in to their wants so they can have something for the future. They all lived lifestyles that allowed them to build their wealth. When you spend your money, it’s gone. So think twice before paying for anything. Ask yourself if you really need it. And if the answer is no, be ready to delay the acquisition of it. If you are able to turn this self-examination and delayed self-gratification into a habit, then you are a step closer to financial independence. Let us take it from Buffet: Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.
previous hearings despite subpoenas served on them on May 15, and for refusing to answer questions of the committee. This led to the filing by the detained Ilocos Six of a Petition for Habeas Corpus in the CA to question the propriety of their detention on the basis of their assertion that in refusing the answer questions of the House Committee, they invoked their constitutional right against self-incrimination. The CA, acting on the petition that is clearly within its jurisdiction, ordered the immediate release of the Ilocos Six. The CA, through its process server attempted to serve the release order to the House leadership three times. The House sergeant-at-arms, retired Lt. Gen. Roland M. Detabali, defied the CA order three times upon the instructions of Speaker Pantaleon D. Alvarez. Instead, in a move that shocked the entire legal profession, the House of Representatives ordered the three Justices of the CA who issued the release order to explain why they themselves should not be cited in contempt for ordering the release of the Ilocos Six. A contempt citation by the House may lead to the detention of CA Justices Stephen Cruz, Edwin Sorongon and Nina Antonio Valenzuela of the CA’s Special Fourth Division. Supreme Court Chief Justice Maria Lourdes P.A. Sereno and CA Presiding Justice Andres Reyes Jr. urged the House Committee on Good Government and Public Accountability to reconsider its showcause order to the three CA Justices. The House Committee, composed of 30 members, mostly lawyers, issued the contempt citation unanimously. It rejected the plea of Marcos to release the Ilocos Six or her recognizance and ignored the position of former Solicitor General Estelito P. Mendoza that the continued detention of the Ilocos
Six “under pitiable conditions” at the House of Representatives “constitutes torture under the anti-torture law.” The 50,000 strong Integrated Bar of the Philippines (IBP), of which all lawyers are mandated by the Constitution to be members, echoed the call of Sereno and Reyes to recall the showcause order to the three CA Justices and instead avail themselves of the remedies available under the Rule of Law, such as filing a Petition for Certiorari under Rule 65 of the Rules of Court if the House believes that there was grave abuse of discretion by the three CA Justices. The IBP said the House should respect the authority of the CA to act and rule on the petition for habeas corpus, the same way the contempt and detention power of the House must, likewise, be respected. Indeed, the determination of whether the right of the Ilocos Six against self-incrimination was properly involved is a justiciable issue that is well within the authority of the judiciary to determine. The CA did not interfere with nor encroach on the power of the House when it acted favorably on the habeas corpus petition. That is what the “checks and balances” is all about. If we are still a nation believing in the Rule of Law, Alvarez, (himself a lawyer) should not foment discord but instead exercise sobriety, to avoid the conflict between the Judiciary and the House from escalating. At a time when our countrymen (civilian and military) are engaged in a war against violent extremism in Mindanao, it is senseless, nonproductive and even unpatriotic to attack the integrity of our institutions. Alvarez is quoted as saying he wants to abolish the CA. With due respect, House Speaker Pantaleon Alvarez should choose his battles!!!
Opinion BusinessMirror
opinion@businessmirror.com.ph
Monday, July 3, 2017 A15
Worried about China? Dissecting PPP contracts #2: Preambulatory clauses Try the view from Beijing By Alberto Agra
PPP Lead
Ricardo Saludo
DIPLOMASIA
J
ust imagine: What if the Islamic State (IS) were not crumbling under Iraqi and Syrian attacks, backed by Western and Russian warplanes, but have established a caliphate with the most powerful military in the Middle East? And what if IS then moved most of its navy to the region, to support Islamic separatists in Mindanao? What would the Philippines do? Would it be justified in building up naval forces, deploying them in surrounding waters, and constructing airfields with antiaircraft and antiship missiles on the high seas, including disputed waters, shoals and islets? Now, instead of an imaginary IS strategy, think of the United States “Pivot To Asia” plan, announced five years ago, to move 60 percent of US naval assets, including nuclear-armed vessels, submarines, aircraft and missiles, to East Asia. These forces could then more quickly deploy and engage hostiles if there are threats and conflicts in the region, including possible war over Taiwan, South Korea, Japan and the Philippines—all under Washington’s security umbrella. Maybe even Vietnam. What would China do? Would it be justified in building up naval forces, deploying them in surrounding waters, and constructing airfields with antiaircraft and antiship missiles on the high seas, including disputed waters, shoals and islets?
The China-bully syndrome
The blind spot, or rather the dark cavern, in most Western articles and analyses of regional security is the failure to take full account of China’s security needs. The prevailing narrative tells of this giant dragon intimidating all Asia, with America as the white knight protecting distressed damsels all around. So, when Washington’s Center for Strategic and International Studies (CSIS) came out last week with another of its Maritime Transparency Initiative reports on military-capable Chinese facilities on reclaimed islands in the South China Sea, a chorus of alarm promptly rose among regional media and security wonks. The overarching view, it seems, is that China has no legitimate security reason to deploy forces on the high seas. Hence, runways, missile bays, marine docks and other military-capable facilities are there just to cow neighboring countries, threatening shipping and even fishermen. Last week CSIS particularly warned the Philippines about antenna arrays facing Palawan, First Thomas Shoal and Reed Bank (Ayungin Shoal and Recto Bank to Filipinos). Once operational, the system can monitor maritime movements in those territories held by the country. There were also recent fears among Western analysts over Chinese rockets on Fiery Cross Reef, which got Beijingwary figures in Manila also fretting. It turned out the rockets were meant to deter frogmen, which Vietnam deployed
in China-held islands in the Paracels. That may well be what the antenna arrays are also supposed to counter, along with other possible intruders, which may well come from the Philippines, given US Navy rotations in the country under the Enhanced Defense Cooperation Agreement. In sum, even as China’s neighbors have reason to fret over its military deployment in the South China Sea, in assessing Chinese actions, a full, impartial analysis should also consider what threats Beijing and its People’s Liberation Army (PLA) must guard against.
What worries the PLA
Even excluding American forces outside Asia, whose firepower and technological prowess far exceed the PLA’s, the Seventh Fleet and other US military units in the region already pack an immensely devastating punch. That’s the assessment of no less than the US Army-funded RAND thinktank. Its August 2016 report, “War With China: Thinking Through the Unthinkable”, sponsored by the US Undersecretary for the Army, stated: “Both [the US and China] have large concentrations of military forces operating in close proximity. If an incident occurred or a crisis overheated, both have an incentive to strike enemy forces before being struck by them.” The report authors, David Gompert, Astrid Cevallos and Cristina Garafola, added: “Sensors, weapon guidance, digital networking and other information technologies used to target opposing forces have advanced to the point where both US and Chinese military forces seriously threaten each other. This creates the means, as well as the incentive to strike enemy forces before they strike one’s own.” Among the biggest PLA worries are hundreds of nuclear-capable cruise missiles, which can hit most of China and all its surrounding waters, launched by ships, subs and planes in the Philippines. No wonder the RAND report cites “aircraft carriers and regional air bases” as prime PLA targets. All shipping is vulnerable, including tankers carrying four-fifths of Beijing’s oil imports passing through the South China Sea. And the US will target them if it follows by one strategy urged by the RAND report, “Cutting off Chinese access to seaborne supplies of oil and liquefied natural gas.” So, next time you read some Western expert warning about Chinese military moves, spare a thought for the PLA analysts kept awake by American aircraft carriers, nuclear subs and fighter squadrons bristling with missiles, pivoting to Asia.
The millennial CPAs Joel L. Tan-Torres
DEBIT CREDIT
O
N June 29 the 3,389 newest batch of Certified Public Accountants (CPAs) joined the accountancy profession as the first group of new accountants who took their oath in rites held at the Philippine International Convention Center (PICC). Thereafter, the other groups of new CPAs will be taking their respective oaths in various venues, including in Cebu City, Davao City, Baguio, Aklan, Cagayan de Oro City, Tacloban, General Santos City, Legazpi City, Tagum City, Iloilo City and Malaybalay. These CPAs belong to the millennial generation. In my message to the CPAs in PICC, I advised these millennial CPAs (MCPAs) to be prepared to interact effectively with the much-older generation of senior accountants who will be hiring them or dealing with them if they engage in business. On the other hand, we, the Baby Boomers and Generation X’ers should also know the behavior and
ways of the MCPAs. Since we belong to different generations, we should all appreciate each other’s diversity and cope with these accordingly. The MCPAs bring into the workplace certain attributes that would do wonders to the profession and the organization that they will work in. Most MCPAs are technology-savvy, craving for diversity and novelty,
Continued from A1
P
PP preambulatory clauses may cover the following matters: (1) Mandate of the agency. The preambulatory clauses follow the statement of the parties. However, this statement does not mention the authority or mandate of the government agency in pursuing PPP as a development strategy or in implementing a particular PPP engagement. Stakeholders reading the contract would better appreciate the project by knowing the agency. (2) The need for the project. Part of the background of executing a PPP contract is why the parties entered into such a partnership for a specified project or activity. The need would typically be couched as a gap, inadequacy or failure, such as lack of access to water or power. An exhaustive discussion of this need
is not embedded in the PPP contract but is contained in the study for the project. (3) Applicable law or regulation. Another important contextual provision is the statement pertaining to the relevant PPP law. Depending on the PPP modality, it will either mention the
Conversations Siegfred Bueno Mison, Esq.
THE PATRIOT
I
n law school, conversations between the professor and his students come in the form of regular recitations. Whenever my students engage me in these kinds of conversation, I learn from them as much as they learn from me. During my niece’s graduation from Stanford Online High School (OHS), the guest speaker, Dr. Charles Junkerman, relayed his thoughts on the effectiveness of real conversations in an online setting. After all, students of OHS converse in a virtual room where presence is achieved via the Internet. He said real conversations have three components: attention, accommodation and cooperation. According to Junkerman, attention is more important than physical presence in conversations. I have attended quite a few meetings where participants are physically present but are mentally absent because their attention is elsewhere, usually distracted by phone calls and text messages. I, too, am sometimes guilty of excessive multitasking under the guise of efficiency and speed. When I worked in a US tech company, I remember one of my superiors chairing a meeting where he required all the participants to leave their mobile phones in the corner of the room. While he understood that 24/7 access is expected from all of us, he demanded our undivided attention to optimize the benefits of the meeting. In Latin, attention means to be present. Since giving attention means staying engaged,
desiring regular feedback, are outcome-driven and looking for meaning in a job. All of these attributes will go a long way in organizations that are forward-looking and focused on outcomes and clear vision of the future. The MCPAs also are known to look for instant gratification, prefer control over their own schedule, and aspire for work and life balance. A workplace that is too regimented, structured and traditional will cause conflict and tension for the millennials exposed to this environment. The MCPAs have a wide range of career options in front of them. Aside from the traditional choice of working in an auditing firm, the new CPA can also consider the options available in government, commerce and industry, academe and entrepreneurship. The choice of field of work is also diverse. More and more new CPAs are going into the non-audit areas, including business advisory, taxation, internal audit and others. As the MCPAs begin their career, I hope that most will be able to find fulfilment in terms of their life and work aspirations. For a number of our
we should stay focused and simply listen whenever we are in a conversation. Another critical ingredient in real conversations is accommodation—the responsibility to accommodate whatever is spoken. We may not like what the other person says, but we should learn to respect the speaker, as well as the message. For meetings, however, the more difficult task for the moderator is ensuring that the conversation does not digress to topics that are not part of the agenda. I had the privilege of attending board meetings of our condominium association chaired by the late General Rocky Ileto. Owing to his years of experience in the Army and in the defense department, General Ileto knew exactly when to speak, interrupt and to allow others to speak. He made sure that our meetings ended on time,
MCPAs, their first place or choice of work will not necessarily be the work where they will end up in. While some MCPAs will be hopping from one place of work to another, it is important that the MCPAs are able to continuously learn in the course of their career journey. As for us who are your elder or more senior colleagues in the profession, we should strive to deal better with the discipline, disruptions and diversity that the MCPAs will bring into the community or workplace. Let us all be one in pursuing what is best for our beloved accountancy profession.
Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He was the former commissioner of the Bureau of Internal Revenue from 2009 to 2010. 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.
build-operate-and-transfer law, the 2013 Joint Venture Guidelines, the Government Procurement Reform Act, Corporation Code, Civil Code, special laws or local ordinances. Each law has different modalities, requirements, obligations and procedures. (4) Prior processes. The signing of the PPP contract between the government and private-sector proponent (PSP) did not happen overnight. The PPP contract is a culmination of a selection process and does not even end with the signing. The prior process-clause briefly sets out the manner by which the PSP-signatory was chosen. It is either competitive selection/ bidding/solicitation, competitive challenge/unsolicited proposal or limited negotiations. (5) Public consultation organized. Part of the prior processes, which can be highlighted in the preambulatory clauses, would be the conduct of consultations with stakeholders, civil-society organizations and affected sectors. The conduct
of a willingness-to-accept-and-pay survey may also be mentioned. (6) Approva ls obtained . Regulatory approvals for a PPP arrangement are either secured before or after the PPP contract. Depending on the relevant law and modality, prior local council approval or authorization, board action and approval of the National Economic and Development Authority are some of the presigning requirements. (7) Counsel’s opinion rendered. Having the agency’s lawyer —Department of Justice, Office of the Solicitor General, Office of the Government Corporate Counsel and local legal officers—pass upon the legality of all contractual provisions prior to the signing of the same is a legal prerequisite for most PPP modalities. So what does the preambulatory or whereas clauses actually tell us? It tells us the story behind the contract. With these, we will appreciate more the terms and conditions of the PPP agreement.
realizing that other members of the board had equally important things to do. Meetings, thus, are two-way conversations; both the speaker and the listener ought to accommodate each other and respect the value of the time spent in the conversation. Face-to-face meetings are just as important as online conversations if both speakers and listeners genuinely stay engaged while respecting each other. Finally, Junkerman said cooperation in conversations matter since the latter is never a debate. It is an interaction between people, which ought to end with reluctance. Nobody wins in a conversation. Citing Ralph Waldo Emerson, he says conversation is a series of intoxications that give us an exhilarating feeling as they take us beyond ourselves. Every time ideas flow spontaneously, we become bigger than who we were prior to such conversation. American philosopher Mortimer Adler said, “Love without conversation is impossible.” In recent weeks, my friend FM has yearned for conversations with his loved ones. Acting on the advice of his friends, he started writing to them by e-mail, but not pressing the “Send” button. FM says real conversations are also possible by dumping your innermost thoughts and prayers to anyone (or anything), without expecting any reply. On his iPad, FM even started writing prayers of praise and thanksgiving to God! Author Neale Donald Walsch started out the same way, too, when he wrote a sequence of books, Conversations with God, which was on the
New York Times Best-Sellers List for 137 weeks. Knowing that God created us to love, conversations are one of the best ways to show love, as well as learn from each other. Author Mark Haddon said, “Reading is a conversation. All books talk. But a good book listens, as well.” My eldest daughter, Regina Victoria, has been an avid reader since grade school. While she occasionally converses with some of her friends during her spare time, I see her totally engaged and absolutely engrossed whenever she has a book in hand. She can carry a dialogue and, perhaps, win a debate, but I see her finest moments with a book. Early on, I also noticed that she is happiest when immersed in conversations with the underprivileged and lessfortunate children. In my case, I have been fortunate to have time to read inspirational books, first and foremost of which is the Bible. In her book, Jesus is Calling, Sarah Young said Jesus’ nature is “to communicate though not always in words” as He speaks to us by way of “glorious sunsets across the sky” and in the “faces and voices of loved ones”. Perhaps, that’s the reason I enjoy looking at sunsets. So, the next time we converse by talking, reading, or writing either to God, colleagues at work, friends, or loved ones, whether face to face or via text messaging or online, let’s do it with attention, accommodation and cooperation. It is the best and should be the only way to truly converse. For questions and comments, please e-mail me at sbmison@gmail.com.
Labor Code provisions not applicable to employees of Bureau of Customs I write in response to your article published by Recto Mercene on June 14, entitled “PTA A opposes plan to charge Customs OT fees from airlines”. Kindly note the following observations: 1. It must be emphasized that the draft Customs Administrative Order (CAO) is not yet final and is still subject to public consultation, wherein the affected stakeholders are given the opportunity to submit their comments and recommendations; 2. The draft CAO finds strong legal basis in Section 1211 of the Custom Modernization and Tariff Act (CMTA), which specifically provides that unloading of cargo from a vessel or aircraft from a foreign port during official nonworking hours shall be allowed subject to payment of service fees by shipping lines, airlines, or other interested parties at rates prescribed by the commissioner. In effect, Section 1211 will repeal the CAO 07-2011 mandating observance of
the 24/7 shifting schedule. It is axiomatic that a mere Administrative Order cannot take precedence over a substantive law such as the CMTA; and 3. The provisions of the Labor Code is not applicable to the employees of the Bureau of Customs but the civil service law’s rules and regulations. Under the said law, government personnel are required to render not more than 40 hours a week, in excess of which shall be subject to payment of overtime services. The rendition of services beyond the required hours under civil service law would be tantamount to involuntary servitude, which is proscribed by our own Constitution, considered as the paramount law of the land from which all other laws must emanate. I hope this clarifies our position on the published article. Should you require further clarification, you may contact us through althea.acas@customs.gov.ph, cc cmta.irr.pmo@customs.gov.ph. Althea E. Acas Project Manager CMTA-IRR Project Management Office Bureau of Customs