Businessmirror july 10, 2018

INDUSTRY ALLIANCE TO GOVT: CHECK BASIS OF S.S.B., DON’T CHANGE LABELS

By Elijah Felice E. Rosales @alyasjah

I

F the government is really concerned about public health, it should review the excise taxes slapped by the Tax Reform for Acceleration and Inclusion (TRAIN) on sugar-sweetened beverages instead of changing SSB labels, local manufacturers argued on Monday.

The Federation of Philippine Industries (FPI) took offense at the streak of regulatory measures the government is imposing on sugar-based products, particularly SSBs. In a statement, the group said it finds “unfortunate”

A customer in a convenience store checks out assorted fruit drinks on display. The Federation of Philippine Industries weighed in on the debate over the government’s move to require label changes for sugar-sweetened beverages. Local manufacturers argue that, if the government is really concerned about public health, it should review excise taxes under the TRAIN law instead of putting health warnings on their drinks. NONIE REYES

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the labeling plan on sweetened drinks that beverage makers will have to shoulder six months after they were compelled to bear excise taxes under the TRAIN. “We cannot help but observe that the government is singling out sugar yet again with this planned move. Sugar is an important ingredient in food and beverages, with many in the manufacturing sectors relying on it, and it does not deserve to be put in a bad light by measures such as this,” the FPI said.

The group is responding to President Duterte’s proposed policy, acted on by the Department of Trade and Industry, to put health

See “Industry,” A2

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A broader look at today’s business n Tuesday, July 10, 2018 Vol. 13 No. 269

Palace insists: Duterte exiting with new Charter P

By Bernadette D. Nicolas @BNicolasBM & Jovee Marie N. dela Cruz @joveemarie

RESIDENT Duterte will step down as early as 2019 once a new Constitution is ratified in a plebiscite and a transition leader is elected, Presidential Spokesman Harry L. Roque Jr. said on Monday, in an apparent bid to ease anxiety over the silence of the Constitutional Committee’s (Con-com) draft on the incumbent’s term limits.

Roque made this announcement after Duterte said in a Cabinet meeting on Monday that he met with the Con-com and asked them to revise the transitory provision

according to his wish that a transitory leader be elected by the people.

Under the Transitory Provisions of the new Charter, the Federal Transition Commission—which

Con-com proposed to be headed by the President—is tasked to organize and reorganize and fully establish the federal government and the governments of the feder-

ated regions in accordance with the Constitution, among others.

“He [the President] announced that he wants to have a provision that a transition leader be elected and that he is willing to step down once the new Constitution is approved,” Roque told reporters, adding that the Cabinet members were shocked and saddened because this is the first time that Duterte formally voiced out that he wanted to cut his term short until 2019.

Asked why the President made such a request, Roque said Duterte sought to dispel suspicion over his alleged ill motives in pushing for Charter change, and that the President said it so himself—he is already “tired.”

See “Palace,” A2

By Rea Cu

@ReaCuBM

HE national government has programmed its total gross borrowings for 2019 at P1.19 trillion, which is higher than the programmed P986 billion set for this year, on the back of the adjusted deficit ceiling of 3.2 percent, according to the Bureau of the Treasury (BTr).

National Treasurer Rosalia V. de Leon told financial reporters on Monday that the government has set its programmed gross borrowings for 2019 at P1.19 trillion, with external borrowings accounting for P297.2 billion of the total and domestic borrowings at P891.7 billion for the year.

“It’s P1.19 trillion [next year] because [we have a] higher deficit [amounting to] P673 billion. And then we have some maturities also,” de Leon said.

She explained that the higher gross

borrowings for next year is in line with the adjusted budget deficit of 3.2 percent for the same year as reported by the Development Budget Coordination Committee (DBCC) earlier in July, to further maintain the progress of the Duterte administration’s infrastructure buildup program, or “Build, Build, Build” (BBB).

De Leon also pointed out that the 75:25 borrowing mix ratio is not set in stone, as the government is taking a cue from market conditions, looking out for opportunities in terms of issuances favorable to the government.

“For next year, so it all depends on how the market, both external and domestic, plays out. If we can... tap more going into next year, then we can go into that 75:25 [mix]; } otherwise we’ll have to see if there will also be good opportunities for doing more external financing—new See “Borrowings,” A2

PESO exchange rates n US 53.4120

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Infra projects start paying dividends Manny B. Villar

THE ENTREPRENEUR

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he country’s massive infrastructure program has started paying dividends to the economy this early. The construction boom that is very evident in Metro Manila and the provinces is generating thousands of jobs and raising the wages of workers in the sector.

I have seen from firsthand experience the increased demand for construction workers as a result of the numerous government and private-sector projects. Property companies, for one, now find it difficult to hire construction workers because of the strong demand.

Government-initiated projects and private-sector companies are competing for workers.

Continued on A6

Govt sets 2019 gross borrowings at P1.19T

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warnings on SSBs. The measure has since then developed, and the DTI has recommended a “softer” approach: that manufacturers be required to indicate the sugar content in the front-of-pack labeling, instead of health warnings.

The FPI said, however, that it will be better if the government does away completely with the labeling plan and focus on the review of the TRAIN, as lawmakers and concerned groups have urged.

It is of the view that, for the buying public to reduce consumption of SSBs, the tax regime has to be changed—the higher the sugar content, the higher the duty.

Rules for aid to displaced Boracay workers eased

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

T ALL ALONE Energy Regulatory Commission chief Agnes VST Devanadera addresses employees on Monday morning after the flag raising. Noticeably vacant is the front seat where her four commissioners—ordered suspended anew by Malacanang Palace—usually sit. The four executives are being accused of gross neglect of duty in allegedly tolerating the mishandling of consumers’ deposits by distributor utility Meralco. CONTRIBUTED PHOTO

HE Department of Labor and Employment (DOLE) will be simplifying requirements so that more displaced workers in Boracay Island will receive emergency assistance from the government.

“Don’t ask them anymore for a marriage contract, because there are many there who have three spouses,” Labor Secretary Silvestre H. Bello III said in jest in a news conference on Sunday. “An ID [identification] card and certification of employment should suffice. In fact, you don’t even need to require See “Boracay,” A2

n japan 0.4837 n UK 71.1661 n HK 6.8060 n CHINA 8.0332 n singapore 39.3633 n australia 39.6905 n EU 62.7271 n SAUDI arabia 14.2420

Source: BSP (9 July 2018 )

News

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A2 Tuesday, July 10, 2018

Marcos seeks sanctions on revisors for ‘Pansol outing’

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By Joel R. San Juan

a recount of votes covering three pilot provinces—Camarines Sur, Iloilo and Negros Oriental—with a total of 5,418 clustered precincts.

After the recount of these three provinces, the PET will decide whether to include 27 other provinces where Marcos is also seeking a recount, protesting the results.

The provinces cover 132,446 precincts in 39,221 clustered precincts. Marcos told the PET that “it is highly plausible” that Robredo’s camp has infiltrated the PET personnel “in order to manipulate, influence and/or control the revision proceedings and maneuver the revision results in her favor.”

“Protestant Marcos cannot help but wonder if the ongoing judicial recount and revision proceeding is compromised, given that the ‘Pansol outing’ was attended by a number of PET personnel who appear to be in cahoots with the protestee’s camp,” the motion said.

Garcia told the PET that their camp learned of the outing that took through the Facebook account of PET Head Revisor Maria Katrina Rosales when she posted the photos of the Pansol outing on June 24.

He said among the photos posted were the 24 PET personnel together with Abuyuan.

Also seen partying with the group were Reycard Castro (PET Chief Tabulator), Hazel Magsipoc, Mohammad Disomangcop, Jennifer Pablo, Michaer Rebosura, Christine Enriquez, Noriesel Lalamunan, Irene Canada, Princess Bonetivo, Rosales, Hannah Pauline Medrano (all PET Head Revisors), Julius Tumalad (PET Alternate Head Revisor),

Ellaine Francisco (PET Appraiser) Keno Moraleda (PET Head Ballot Custodian), as well as Martin Santos, Edwin Roque, Bryan Puntero, Elijah Mikaelson, Mel Darien Buensalido and Rogene Agudelo (all PET Ballot Box Custodians).

He added that on July 2, Rosales, in an “apparent move to rectify her mistake of publicly posting the incriminating photos of their ‘Pansol outing,’”deleted the photos from her Facebook account.

“Fraternizing with the party revisor for the protestee is obviously prohibited by this Honorable Tribunal since this act is proscribed not only by the Code of Conduct for Court Personnel but also by the Canon of Judicial Ethics,” Garcia said.

He noted that Section 1, Canon V of the Code of Conduct for Court Personnel expressly provides that all provisions of law, Civil Service rules, and issuances of the Supreme Court governing or regulating the conduct of public officers and employees applicable to the Judiciary are deemed incorporated into the Code of Conduct for Court Personnel.

Garcia said the action of the PET personnel constitutes improper and unethical behavior which immeasurably affects not only the integrity of the ongoing election protest but, more important, the honor and dignity of the Judiciary as an institution. “Consequently, it is imperative for this Honorable Tribunal to immediately investigate this incident and impose the appropriate sanctions on these PET personnel, the protestee and her party revisor,” he stressed.

A part y-list lawmaker representing indigenous peoples (IP), meanwhile, lauded

the Con-com’s decision providing seats in the Legislative department for IPs under the federal form of government.

ANAC-IP Rep. Jose Panganiban, Jr. made a statement after Con-Com, which reviewed the 1987 Constitution, recognized the welfare and rights of IPs, particularly the provision mandating that seats be reserved for IPs in the Legislative department under Article VII of the draft Charter.

“The provision in the new Charter setting aside seats in the Legislative department for IPs is good news, as IPs are underrepresented,” he said.

Article VII-Legislative Department, Section 5(d) of the draft Charter states that “for three consecutive terms following the ratification of this Constitution, one half of the seats set aside for parties voted under the proportional representation system shall be reserved for labor, peasant, urban poor, indigenous peoples and fisherfolk groups, provided that they organize themselves as parties or coalitions of parties. The other half of the total seats allocated for proportional representation shall be open to

all other political parties or coalitions thereof.”

The 22-member Con-Com that formally convened in February this year unanimously approved the draft Constitution last week.

Meanwhile, Panganiban urged the government and Congress to the adopt the proposal requiring representatives from the marginalized sector, IPs and environmental advocates in the Commission on Human Rights. The proposals were not included in the Con-com’s approved draft.

Panganiban also vowed to hold consultative meetings with indigenous peoples groups and legal experts to determine whether specific provisions in the draft Constitution should be strengthened or added.

“Aside from the regional consultations that the Con-com will hold, we plan to conduct separate consultations with our constituency,” said Panganiban.

“This will be crucial in ensuring that the expectations of IPs are aligned with the whole process of changing the Constitution, and will serve as our guide as we convene the constituent assembly,” he added.

sistance]. So Director Cañete ease the requirements so the people can receive assistance.”

He emphasized that with simplified procedures, “DOLE should not take more than one day to [release the financial assistance].

In case of doubt—I’m addressing this to DOLE—call the employer of the applicant.”

President Duterte ordered the closure of Boracay for six months starting April 26, ostensibly to give way to government’s rehabilitation program for the popular island destination.

The Labor chief also ordered his Region 6 officials to extend the emergency workers’ assistance in the form of cash, instead of requiring the workers to get a “cash card.”

The assistance is about P4,200, or half of the documented monthly minimum wage on the island.

“They [DOLE officials] are afraid to be robbed,” explained Bello, “but I told them no one will rob them in Boracay. So today, we brought cash.

With a cash card, the displaced workers still have to go to the bank.”

Bel lo said he w i l l issue a

department order to “simplify the requirements and accelerate the [aid] releases.”

Bello was scheduled to release cash assistance to some displaced workers on Sunday afternoon with Special Assistance to the President Christopher Lawrence “Bong” Go. The Malacañang official has been going around the country in a bid to shore up his image for an anticipated run in the Senate in 2019.

The DOLE official also said his agency is supposed to give emergency employment for some 5,000 formal and informal workers but, so far, only 2,500 workers have had jobs. “Please help [Environment] Secretary [Roy A.] Cimatu. I heard there is an illegally constructed building that will have to be demolished; that should need some 2,000 workers,” Bello said.

In response to a question from the media, Cimatu, for his part, said it would be difficult for all wetlands in Boracay to be recovered in time for its reopening on October 26.

“There are many things that still have to be done there, such as

draining and purifying the water in the wetlands,” he said.

Cimatu added the only one way to clean wetlands 3 and 6 is “to remove the illegal settlers.” At the same time, he announced that business leaders have offered to help through the DENR’s Adopta-Wetland project. Wetland 1 has been adopted by Cebu Pacific [JG Summit/Gokongwei Group] while Wetland 2 by Energy Development Corp. [Lopez Group]. Wetlands 3, 4 and 6 have been adopted by San Miguel Corp., Aboitiz Group and the Lucio Tan Group, respectively. He failed to announce who adopted Wetland 5 and the rest of the wetlands.

During the first Senate hearing on Boracay Island on March 2, Cimatu had announced that three of 12 Boracay wetlands had already disappeared. He added that private businessmen already occupied four of the nine remaining wetlands.

Wetlands are an important environment resource as these act as catch basins and prevent f lood ing du r ing heav y ra ins and thunderstorms.

@jrsanjuan1573

HE camp of former Sen. Ferdinand “Bongbong” R. Marcos Jr. on Monday asked the Supreme Court, sitting as Presidential Electoral Tribunal (PET), to investigate and impose sanctions on several of its personnel who were seen partying with the revisor of Vice President Maria Leonor G. Robredo at a resort in Pansol, Laguna, on June 22.

In a 10-page manifestation filed through his lawyer George Garcia, Marcos expressed grave concern and sought an immediate investigation of the involved PET personnel for possible violation of the Code of Conduct for Court Personnel, as well as the camp of Robredo, particularly her recount supervisor identified as Osmundo “Ritchie” Abuyuan “Protestant Marcos is obviously dismayed and tremendously demoralized by this incident. He is stunned that there appears to be a conspiracy between the camp of the protestee, represented by Abuyan, and these PET personnel,” the motion read.

Marcos has filed an election protest against Robredo for allegedly cheating her way to the VP post in the 2016 automated elections.

Robredo won the vice presidential race with 14,418,817 votes, while Marcos got a total of 14,155,344— or a margin of 263,473.

Palace. . .

Continued from A1

“He said he was very tired, he’s old and maybe electing a transition leader would enable a younger leader to take over,” Roque said in a mix of English and Filipino.

He also said that there might be a term overlap between Duterte and the newly elected transitional leader.

Con-com review

In a statement, Con-com Spokesman Conrado I. Generoso said the Con-com will review and revise the transitory provisions according to the President’s instructions.

Con-com Chairman and retired Chief Justice Reynato S. Puno said he expects the plebiscite to happen in mid-2019 if Congress can finish studying their proposed draft Federal Constitution.

Roque said the President will also be asking the congressional leaders if they can adopt the same transitory provision.

Boracay. . .

Continued from A1

them to have an ID if they have an employment certification.”

The Labor chief instructed officials of DOLE Region 6 led by Director Johnson G. Cañete to simplify its procedures after being informed only 18 percent of the targeted displaced workers to be extended emergency assistance had registered and received any aid.

“Our President gave half a billion pesos [P500 million] as assistance for displaced or dislocated workers on the island. We were expecting 19,000, but only 3,500 registered, received [aid]. I was worried because the President might inquire why only a few availed of the assistance,” Bello said in Filipino. “But I received text messages that there were a lot of requirements being asked of them [displaced workers], like the cedula, marriage contract, NBI clearance… It should be, if they are from Boracay, and they were displaced [because of the closure], that should [qualify them for as-

Robredo lawyer: All camps were invited

Meanwhile, Robredo’s camp issued a statement belittling the accusations made by the Marcos camp.

Robredo’s lawyer Romulo Macalintal insisted that there was nothing irregular with the said event considering that all revisors from the Marcos and Robredo camps were invited by the PET head revisors.

“In fact, we are wondering why they are even asking for an investigation when they sent food to the said event,” Macalintal said.

Macalintal said the PET head revisors should even be commended for the event as this would ease the tension during the revision proceedings as reported in the press.

“The PET should not be disturbed of its more important functions than be bothered by this trivial incident,” Macalintal said.

Recount in 3 provinces

The PET is currently conducting Although the President cannot compel Congress to honor his wish, Roque thinks Duterte’s congressional allies will honor a clear statement from the President.

Reelection after 2022?

Controversy has arisen on whether the President will be allowed to seek reelection under the new Charter.

The Con-com earlier issued a statement ,saying there is no provision banning the President from being reelected once the shift to federal system takes place, as it would be “discriminatory” and “undemocratic.”

However, on Friday the President first asked Con-com and the Congress to include a provision that will make him stop being president during transition.

The proposed Federal Constitution by Concom is expected to be endorsed by the President in his State of the Nation Address on July 23.

Role for IPs welcomed

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Borrowings. . .

Continued from A1

external, meaning to say it’s not just our commercial borrowings but even the ODA [official development assistance]; we can increase our program loans,” de Leon explained.

Earlier in the month, the DBCC had adjusted the country’s borrowing mix for next year to a 75:25 ratio, still favoring domestic lenders, coming from a 65:35 borrowing mix this year.

The deficit ceiling programmed by the DBCC for 2018 is at 3 percent.

Finance Secretary Carlos G. Dominguez III pointed out that the larger programmed share of domestic borrowings for 2019 will enable the Philippine economy to better hedge against foreign-exchange risks, while the increase in the deficit from 3 percent to 3.2 percent was explained as being in line with the acceleration of government’s investments in its social services program, among others.

“We want to accelerate the BBB program and we are accelerating investments in education and social services including health, so this is why we are going to propose to the President an increase of .2 percent of the 3-percent deficit we projected,” Dominguez said.

In nominal terms, external borrowings for 2018 translates to P346 billion while programmed domestic borrowings is at the P640-billion level, under the 65:35 borrowing mix ratio.

Industry. . .

Continued from A1

Tax the sugar, not the volume

“We renew our suggestion to the government to instead adopt a content-based taxation scheme versus a volumetric approach, which is the current nature of the SSB, instead of making new measures about labeling,” the FPI said. They refer to criticism aired during deliberations on the SSB in the TRAIN, that the new tax was not actually curbing sugar intake because it was not based on the sugar content of beverages but their volume.

“Again, the volumetric tax is essentially a tax on water, rather than sugar. If we really want to address health concerns, a content-based taxation scheme is what the government should consider instead of new regulatory measures,” it added.

“Content-based taxation levies higher tax rates on beverages that have higher sugar content versus those that have lower sugar content. It will encourage companies to produce and/ or reformulate drinks with less sugar—thus, fulfilling the law’s supposed mandate as a health measure,” the group argued.

For the FPI, the status quo of having nutrition information on SSB labels is enough. It pointed out the current scheme even involves the Food and Drug Administration in the process, and this, for the group, shows beverage makers are compliant with existing regulations. “[The] FPI and its member-companies have always been committed to transparency, and this extends to providing clear nutrition information in the packaging of our products for our consumers. As such, we, at FPI, support labeling on goods that adheres to high standards of transparency and factuality. Rest assured that we comply with all of

Govt. . .

Continued from A8

Año said that the scheme as “pronounced by Malacañang and backed by the Department of National Defense” would make the peace process more participatory and responsive to the specific needs and situation of local communities and will have more impact on people on the ground.”

“In light of the Left’s pronouncement that they would rather oust the President than talk peace, we have no choice but to push for localized peace talks because decisions

The total gross borrowings programmed for 2019 represents an expansion of 20.6 percent compared to the programmed total borrowings for this year of P986 billion.

In May this year, Deputy Treasurer Sharon P. Almanza told financial reporters that commercial borrowings programmed for 2018 is at the $4.2-billion level, with ODA at $2.5 billion.

The Philippine government earlier bared plans to issue samurai bonds worth $1 billion by the third or fourth quarter of 2018, as part of its financing exercise for the year.

In March the three-year Panda bond issued by the government fetched a coupon rate of 5.00 percent, a tight spread of 35 basis points above benchmark rates, and is worth 1.46 billion in renminbi (RMB).

In January this year, the Philippine government also successfully offered $2 billion new 10-year global bonds, with the bonds priced on a par with a coupon of 3.00 percent, tighter than the initial pricing guidance of 3.300 percent area.

The government is looking to issue another Panda bond and global bond, with the issue dates still being decided by the government.

“So we are going to the samurai [bond market] and then we will start the process for the Panda [bond] because it will take some time. And we are also looking at sukuk [bonds]—there are still some regulatory challenge—and then we are also looking at the euro market,” she added.

the government’s existing regulatory requirements on nutrition and content labeling. Companies follow a thorough and rigorous approval process, which involves government oversight,” the FPI said.

In pushing for the labeling requirement, the group also accused the DTI of failing its mandate of developing and protecting local industries.

“If this planned labeling measure succeeds in moving forward, then the DTI will have failed in its mandate of promoting equitable trade environment and the welfare of industries—something that we, as an organization and as concerned industry players, wish to avoid. As such, the FPI is eager to work with the government in coming up with fair and equitable solutions to this proposed problematic measure,” the FPI said.

Biz groups object

The FPI joined the country’s top business leaders in thumbing down the labeling measure on SSBs. George T. Barcelon, chairman of the Philippine Chamber of Commerce and Industry, has said the move is too much a government intrusion on private business.

He also said he will not be surprised if the government targets next products high on monosodium glutamate if the labeling requirement is rolled out.

For his part, Sergio R. OrtizLuis Jr., president of the Philippine Exporters Confederation Inc., said the proposal is useless and will mean extra expenses on the part of manufacturers.

The proposed labeling requirement will be the second cross beverage makers will have to carry this year. Drinks containing caloric and noncaloric sweetener were slapped with a P6-per-liter tax under the TRAIN, while beverages with high-fructose corn syrup were imposed with a P12per-liter duty. and agreements will be more genuine and enforceable,” he said.

The secretary also said that the localized talks would address the concerns raised by some members of Congress that “leftist leaders, especially those in exile abroad do not necessarily represent the demands and concerns of the rebels in the country.”

Sison objected to the holding of local negotiations, saying that those who would be squaring off with the government over the negotiating table are not legitimate rebels and do not represent as a whole the issues and concerns of the NDFP. Rene Acosta

The Nation BusinessMirror

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Editor: Vittorio V. Vitug • Tuesday, July 10, 2018 A3

DILG crafts LGU guidelines for localized talks with Reds

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By Jonathan L. Mayuga

@jonlmayuga

he Department of the Interior and Local Government (DILG) is now crafting guidelines for local government units (LGUs) with local rebel groups in their respective jurisdiction.

This, as the DILG said it will push for localized peace talks between the LGUs and ground units of the National Democratic FrontNew People’s Army (NDF-NPA) should peace talks with the Communist Party of the Philippines (CPP) do not push through.

LGUs, according to the DILG, can initiate localized peace talks, as long as it will not yield local governance to communist rebels.

In a news statement issued on Monday, DILG Officer in Charge Secretary Eduardo M. Año said the

approach pronounced by Malacañang and backed by the Department of National Defense would make the peace process more participatory, responsive to the specific needs and situation of local communities and will have more impact on people on the ground.

“In light of the Left’s pronouncement that they would rather oust the President than talk peace, we have no choice but to push for localized peace talks because decisions and agreements will be more genuine and enforceable,” Año said.

This, he added, would also address the concern raised by some members of Congress that leftist leaders, especially those in exile abroad do not necessarily represent the demands and concerns of the rebels in the country.

T he DILG chief, nonetheless, stressed that in pursuing localized peace talks, LGUs should not concede any aspect of governance to the communists.

“A working group is now crafting the guidelines for LGUs in the conduct of localized peace talks. As soon as these are finalized, LGUs can already take the lead in engaging with local rebels in their respective areas for the sake of peace and development in the communities,” Año said.

Under the soon-to-be-released guidelines, Regional Peace and Order Councils and Regional Development Councils will be the main platforms for peace initiatives to be immediately undertaken.

W hile localized peace process shall be ongoing, previously signed peace documents will be reviewed,

including draft proposals for Comprehensive Agreement on Social and Economic Refor ms, Inter im Peace Agreement and End of Hostilities and Disposition of Forces in order to evaluate their relevance and significance.

“We are not giving up on peace.

We will pursue every avenue that we can utilize. However, it will not be peace at all costs. Only sincere peace talks—whether national or on the local level—can produce real and lasting peace,” the DILG chief stressed.

President Duterte earlier set forth conditions for the resumption of peace talks with the rebels, including the conduct of peace talks in the country, no collection of revolutionary tax, a stop in hostilities, NPA fighters to be confined to their camps and no coalition government.

The more than four decades of insurgency with the communistled rebels have resulted in deaths of tens of thousands from both sides, including noncombatants and unarmed civilians.

Quarantine officials seize fresh fruits from China and Thailand

By Recto Mercene @rectomercene

A

Mirror on the floor

A shallow pool of rainwater collected on the pavement of a Pasay City mall provides a mirror-image reflection of passersby. The possibility of monsoon rains induced by Typhoon Gardo has prompted most schools in the metropolis and outlying areas to suspend classes. Alysa Salen

PNP finds ‘good lead’ to solve Nueva Ecija mayor’s gun slay

By Rene Acosta @reneacostaBM & Joel R. San Juan @jrsanjuan1573

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ational Police chief Director General Oscar D. Albayalde on Monday said probers are now following a “good lead” that could probably solve the killing of Mayor Ferdinand Bote of General Tinio, Nueva Ecija.

“In Nueva Ecija, we have good leads already and in one week to until early next week, we will have charges because we have [a] lead that is being pursued by the Criminal Investigation and Detection Group,” the PNP chief said in a news briefing.

Albayalde ruled out politics as the motive behind the killing of Bote, who was ambushed on Tuesday last week by motorcycle-riding men while he was leaving the compound of the National Irrigation Administration in Cabanatuan City, Nueva Ecija.

“Of all indications, it appears that politics was not the motive. As I have said, we have good leads already. By this week until next week it would be clear,” Albayalde said.

The PNP chief ruled out any pattern in the killings of Bote, Tanauan City, Batangas, Mayor Antonio Halili and Trece Martires City, Cavite, Vice Mayor Alexander Cruz Lubigan, who were all attacked in a period of one week.

Halili was shot and killed by a marksman while he was attending a flag cer-

emony on Monday last week, while Lubigan was ambushed by gunmen aboard a sport-utility vehicle in front of a hospital in his city on Saturday. His driverbodyguard was also killed in the attack.

Albayalde said the killings were “coincidental,” as investigators were looking at different motives.

“These incidents may be coincidental. We have seen different motives here. The one in Tanauan is different and so in Nueva Ecija. So we have not seen any relationship between what happened in Batangas, Cavite and Nueva Ecija,” he said.

As to speculations that the killings of the local executives may be related to a plot to destabilize the Duterte administration, the PNP chief said they were not seeing this now, although he welcomed any probe to look into this possibility.

Justice Secretary Menardo I. Guevarra has already ordered the National Bureau of Investigation (NBI) to look into the attacks on the possibility that these may be related to a plan to destabilize the Duterte administration.

Guevarra, in a text message to reporters, said all possible angles are being considered by the NBI in its ongoing investigation, including possible destabilization plot.

Guevarra also noted that based on the initial investigation by the NBI, the killings of Mayors Halili and Bote and

Trece Martires City, Cavite, Vice Mayor Alex Lubigan last week were unrelated.

“Yes, among possible angles, but so far initial findings show that the incidents seem unrelated,” Guevarra said when asked whether destabilization plot is being considered as possible angles in the killing of the three local executives.

Guevarra earlier tapped the NBI to check if the three killings had a pattern and sought immediate results from the bureau.

Police had said that Halili’s murder could be related to illegal-drug trade, while the killings of Bote and Lubigan might have political motivations.

Halili was shot dead while leading a flag-raising ceremony on July 2, while Bote was killed inside his vehicle by still unidentified gunmen the next day.

Lubigan, on the other hand, was gunned down in front of a Korean hospital on Saturday afternoon.

Lubigan and his driver Romulo Guillemer died on the spot while his security aide Romulo Edrinal is still in critical condition.

“We are [also] not casting off the alleged destabilization [angle], we have our own intelligence operatives to look into that information, but as of this time, we are not getting information that will lead to that information or confirm that alleged destabilization plot,” Albayalde said.

irport plant quarantine officials seized on Monday more than 50 kilograms of fresh fruits from Jinjang, China and Thailand that were not issued with health and sanitary permit from the ports of origin.

Quarantine officer Bart Mesolania said the confiscated plums, Fuji apple, mangoes and mong beans were carried by passengers who failed to present the required documents.

Mesolania stressed the country strictly prohibits the entry of fresh fruits and vegetables, which might carry with them “foreign pests.”

“These pests could infect our vegetable and fruit industry, which might be difficult to control because these pests could be resistant to local pesticides,” he said.

Mesolania said the country requires that all incoming plant products and planting materials should be declared to Customs officers and plant quarantine for inspection and clearance.

“No one is allowed to bring items into the country without plant quarantine clearance issued by the director of the Bureau of Plant Industry,” he added.

Other prohibited items are living plants, seeding, seedless nuts for planting, bulbs/tubers, fresh fruits and vegetables, grains, beans, spices herbs, fruits and dried mushroom, cutflower, mushroom cultures and other commodity capable of harboring plant pest.

Mesolania added that any plant or planting material needs a clearance or permit, as many countries have various existing rules and regulations pertaining to the entry of these items.

“The Bureau of Plant Industry is doing a video shoot at the four airport terminals as additional information materials for the local and foreign travelers bringing in or out of the country prohibited plants, fruits and seeds,” he said.

A4 Tuesday, July 10, 2018 • Editor: Vittorio V. Vitug

Economy BusinessMirror

DA criminalizes possession of ‘destructive’ fishing gear

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he government has strengthened its war against destructive fishing methods, as the Department of Agriculture (DA) recently approved an order that outlaws the mere possession of Danish seine fishing gear, locally known as hulbot-hulbot or buli-buli.

Agriculture Secretary Emmanuel F. Piñol signed on July 5 Fisheries Administrative Order 246-1, which updates FAO 246, authorizing the ban of seine fishing in Philippine waters.

The new FAO 246-1 now includes a provision that declares the mere possession of Danish seine or modified Danish seine as a prima facie evidence for violation of FAO 246, according to the Bureau of Fisheries and Aquatic Resources (BFAR).

The use of Danish seines and modified Danish seines, which are usually utilized by commercial fishing vessels, had been proven to destroy marine habitats and was hence banned by the government in 2013 through FAO 246, according to the BFAR. “Danish seines and modified Danish seines are considered active gears consisting of a conical net with a pair of wings, the ends of which are connected to a rope embedded with buri, plastic strips, sinkers or other similar materials to serve as scaring or herding device hauled through a mechanical winch or by manpower,” it said.

“This new provision will not only

intensify our campaign against illegalfishing activities, but will also provide more clarity to our courts and law enforcers in the apprehension and prosecution of hulbot­-hulbot operators,” BFAR National Director Eduardo Gongona said.

A prima facie evidence denotes that a person may be presumed to have committed an illegal act by mere possession of a prohibited item as an evidence, according to the BFAR. The BFAR said the amendment made to FAO 246 was endorsed by National Fisheries and Aquatic Resources Management Council (NFARMC)

to Piñol following “a clamor from the Alliance of Provinces for the Protection of the Visayan Sea and other stakeholders to strengthen the implementation” of the said order.

The NFARMC is chaired by the Undersecretary for Fisheries and concurrent BFAR National Director Gongona. The amended FAO will take effect 15 days after its official publication, according to the BFAR. The amendment was supported by the Pangingisda Natin Gawing Tama (Panagat) network, an alliance of civil-society fisheries organizations, which include as members Greenpeace Southeast-Asia, Oceana Philippines and the World Wide Fund for Nature, among others.

“Panagat also commended BFAR Director Gongona, a retired commodore of the Philippine Coast Guard [PCG], for working with PCG stations in the nonissuance of departure clearances to commercial fishing vessels using Danish saeines and modified Danish seines,” the BFAR said.

Gloria Estenzo-Ramos, vice president of Oceana Philippines, said the signing of FAO 246-1 shows the

This is a much welcome development. We are happy to see there is now strong political will to fight illegal fishing and stop destructive gears, such as hulbothulbot, from devastating further our overfished fishing grounds.”—Ramos

“strong” political will of the government to curb illegal fishing in the Philippine waters and revitalize the country’s fisheries production.

“This is a much welcome development. We are happy to see there is now strong political will to fight illegal fishing and stop destructive gears, such as hulbot-hulbot, from devastating further our overfished fishing grounds,” Ramos told the BusinessMirror.

Furthermore, Ramos urged the government to intensify the promulgation and enforcement of the laws against illegal, unreported and unregulated fishing in the country to ensure that fisheries production “bounce back to abundance.”

“Related to this, and for fisheries to bounce back to abundance, the rules on vessel monitoring, commercial fishing registration and fisheries management area have to be promulgated, as well, with strong enforcement of our laws to implement the nationwide ban on commercial fishing in our municipal waters,” she said.

“We need healthy, vibrant and resilient oceans to feed our people, amid the climate challenge haunting us,” she added.

Under Republic Act 10654 or commonly known as the Amended Fisheries Code, violators of FAO could be fined from P100,000 to as much as P5 million “depending on the socioeconomic impact and seriousness of the violation, volume and value of the fisheries product, damage to the environment due to the violation, and the habituality of the offender.” Jasper

Emmanuel Y. Arcalas with Jenn Kiana Louise N. Cardeno and Monique Danielle A. Fernando

www.businessmirror.com.ph

Labor rights provisions ‘omitted’ in draft Constitution, group says

By Samuel P. Medenilla

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a bor group Federation of Free Workers (FFW ) branded on Monday as “anti-labor” the draft Char ter of the Consu ltative Committee (Con-com) for a l leged ly scrapping prov isions of the cur rent Constitution protecting the r ights of workers.

In a news statement, FFW President Sonny Matula said a draft copy they obtained last week “categorically omitted ” the guarantee to the workers’ rights to self-organization, collective bargaining and negotiation and peaceful concerted activities, including the right to stage a labor strike If implemented, he said, the Charter will expose workers to more abuses from unscrupulous employers.

“We cannot wholeheartedly endorse the proposed constitutional draft of former Chief Justice Renato Puno’s 22man committee, as its social justice provisions [Article XVI] [were] removed or categorically omitted,” Matula said.

Last week a supposed draft of the Charter went viral on social media. The Con-com, however, promptly denied that the posted copy was the latest version of the document.

Con-com was only able to submit the initial draft to President Duterte on Monday.

Duterte is pushing for Charter change to realize his campaign promise of changing the country’s

PHL braces for impact of US-China trade war

By Bernadette D. Nicolas @BNicolasBM

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alacañang on Monday said the Philippines is bracing for the possible impact of a full-blown US-China trade war, which started last Friday.

Presidential Spokesman Harry L. Roque Jr. said that the government, through Department of Trade and Industry (DTI) and Department of Finance (DOF), is studying the conflict “very thoroughly,” particularly the identification of vulnerable areas, notably the country’s exports.

Roque said the government is also assessing if some of the country’s biggest exports to both the US and China would be affected.

“Take note that the tariff will be for goods originating from China and the United States. Now, there are some products we export to China, which in turn are further reexported [elsewhere],” he said.

“So in that sense, there will be some effect on us. But we are of course studying and preparing for eventualities and we are hoping of

course that the trade regime under the WTO [World Trade Organization] will be made to prevail. Because all these tariff war actually is subject to arbitration before the WTO dispute settlement procedure,” Roque said.

The Palace issued the statement after the DTI said that a prolonged trade war can slow down global economies and eventually affect even small players like the Philippines.

But Trade Secretary Ramon M. Lopez also said the products that were included in the tariff increases have little or no impact to the country, particularly washing machines, solar panels, steel and aluminum.

Because there is no major impact on the Philippines, Lopez also said, the country may stand to benefit if other affected manufacturers in countries affected will shift their production base to the Philippines to avoid facing higher tariff rates.

On Friday US imposed a 25-percent tariff on $34 billion of imports from China, while the Asian superpower imposed $34 billion in retaliatory tariffs on American soybeans, cars and other products.

@llectura

O

il firms announced on Monday an upward adjustment in the prices of petroleum products to take effect on Tuesday morning.

Phoenix Petroleum, PTT Philippines, PetroGazz, Flying V said in separate advisories that gasoline prices will increase by P0.40 per liter and diesel by P0.35 per liter effective 6 a.m.

Pilipinas Shell will also implement the same price adjustment. It also announced a price hike in kerosene

by P0.70 per liter.

Other oil firms have yet to announce their price adjustments, but are expected to follow suit.

This is the second consecutive oil price hike this month. On July 3 oil firms raised gasoline prices by P0.65 per liter and diesel by P0.55 per liter.

The Department of Energ y (DOE) earlier said it will mandate oil firms to unbundle or itemized their costs being passed on at the pumps.

The proposed policy enables the unbundling of the base prices of petroleum products, gasoline,

“I don’t think they would neglect to provide these provision especially the security of tenure [SOT] because those are very important [for workers].”

—Bello

form of government from a unitary into federal.

In an interview on Monday, Labor Secretary Silvestre H. Bello III said he has also yet to see the draft of the Charter, but he said it is unlikely Con-com will remove its protective measures for workers.

“I don’t think they would neglect to provide these provision especially the security of tenure [SOT], because those are very important [for workers],” Bello said.

Bello said a member of the charter body, likewise, assured him the SOT will still be retained.

The labor official, however, stressed he will push for the restoration of the provisions of the 1987 Constitution protecting the rights of workers in case the Con-com had indeed opt to remove them.

Bello said they are closely monitoring the provisions of the draft Charter, especially its impact to workers and the labor department.

P23.3-B expressway connector project on track–Metro Pacific

By Lorenz S. Marasigan @lorenzmarasigan

M

Power check

A lineman from the Manila Electric Co. checks power cables in San Andres, Manila. The power distribution firm announced on Friday that electricity rates will increase by P0.3136 per kilowatt-hour this month in its franchise areas on the account of higher generation charge. That translates to an additional P63 more in the monthly power bill for households consuming no more than 200 kWh. NONIE REYES

Oil companies raise fuel pump price for second time this month

By Lenie Lectura

@sam_medenilla

automotive and industrial diesel, kerosene, jet fuel, bunker fuel oil and household and automotive liquefied petroleum gas (LPG).

This is the first time that the DOE will require oil companies to make public the breakdown of the costs that go into the pricing of fuel.

The objective of the proposed circular is to mandate industry players to explain to consumers the cost components of the petroleum products.

The DOE was expected to issue the circular last month. However, consultations with the oil firms

are still ongoing.

Meanwhi le, the DOE pub lished on Monday a joint administrative Order (JAO) that directs all LPG participants to observe the minimum safety standards in the transportation and distribution of LPG in cylinders.

The DOE is the agency that will issue the standards compliance certificate to all LPG industry participants.

The Department of the Interior and Local Government, meanwhile, will issue a memorandum circular to all local chief executives enjoining them to direct LPG

participants within their jurisdiction to comply. It will also suspend or revoke licenses and permits of violators.

The Bureau of Fire Protection, meanwhile, shall issue fire-safety clearance for approved delivery vehicle used for the transport of LPG in bulk and in cylinder.

The Land Transportation Office will apprehend drivers that violate any provision of the JAO. The Metropolitan Manila Development Authority, meanwhile, will conduct a flag-down operations and inspection of LPG delivery vehicles.

etro Pacific Investments Corp. is mobilizing initial civil works for the P23.3billion Connector Road, in time for the full-blast construction of the said highway in the first half of 2019.

Rodrigo E. Franco, who sits as president at Metro Pacific Tollways Corp., said the company aims to start building the link road for the North and South Luzon Expressways (NlexSlex) within the first three months next year.

He noted, however, that his group is implementing advance works for the said thoroughfare section.

“We would want to be able to mobilize construction toward the fourth quarter and full-blast construction is for the first quarter of 2019,” Franco said in an interview in Cebu last week.

He noted that right-of-way acquisition and delivery are “moving.”

“The government’s deadline is to deliver the first section in the second quarter of next year,” he said. “So were working within the timetable.”

The Connector Road is envisioned to be an 8-kilometer (km), four-lane elevated toll road that will connect the Nlex and Slex.

It will extend the southward portion of Nlex from the end of Segment 10 in C-3 Road Caloocan City to PUP Santa Mesa, Manila and connecting to the Skyway Stage 3, and mostly traversing the PNR rail track.

The project, which has a price tag of P23.3 billion, includes two interchanges at C-3 Road, Caloocan and España, Manila.

Franco earlier said his group is keen on tapping the bond market to fund the P16 billion in construction costs for the Connector Road.

The Connector Road will be operated by Nlex Corp.

www.businessmirror.com.ph

The World BusinessMirror

Editor: Angel R. Calso • Tuesday, July 10, 2018 A5

Chinese exporters scramble to cope with US tariff hikes

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EIJING—Chinese exporters were scrambling on Monday to cope with a plunge in US sales while China’s state press shrugged off the impact of Washington’s tariff hikes in a spiraling technology dispute.

The overall blow from Friday’s tariff hikes to the world’s secondlargest economy should be limited, according to private-sector analysts. But President Donald J. Trump’s measures targeting Chinese medical, construction and factory equipment hit exporters that say price-conscious American customers have stopped buying.

The general manager of medical device exporter that depends on the United States for 15 percent to 20 percent of sales said he plans to fly there this week to negotiate with customers who stopped ordering its syringes and other equipment.

Wuxi Yushou Medical Devices Co. Ltd., with a work force of 500, stands to lose 30 million to 40 million yuan ($4.5 million to $6 million) in annual revenue, according to the manager, Miao Liping.

Without new orders, “I will suspend making the products,” said Miao. “It is not easy for us to compete with low-end products in other countries.”

Other exporters of goods from

kitchen appliances and lighting to toys and tools have reported similar drops in US orders.

The state press tried to downplay the impact on China, emphasizing what Beijing says will be the bigger blow to American consumers who will pay more for Chinese goods.

China can find other suppliers for soybeans and other American goods hit by its own retaliatory tariffs, state media said.

“Added tariffs basically have no effect on companies,” the chairman of one of China’s biggest chemical companies, state-owned Sinochem Group, Ning Gaoning, told the web site aweb.com.

Despite official bravado, the conflict adds to mounting economic challenges for Beijing.

Growth already was cooling after regulators tightened controls last year on bank lending to cool surging debt. That spooked investors, who have driven the main stock market index down 21 percent from its January 24 peak.

Trump raised tariffs on $34 bil-

A woman pulling a two-wheel trolley loaded with goods touches a bull statue on display outside a retail and wholesale clothing mall in Beijing on Monday. The trade war that erupted on Friday between the US and China carries a major risk of escalation that could weaken investment, depress spending, unsettle financial markets and slow the global economy. AP Photo/Andy Wong

lion of Chinese goods in response to complaints Beijing steals or pressures foreign companies to hand over technology.

More broadly, American officials worry Chinese government plans such as “Made in China 2025,” which calls for creating competitors in robots, biotech, artificial intelligence and other fields, might

erode US technology leadership and prosperity.

Beijing retaliated to the US move by hiking tariffs on American goods, including soybeans, whiskey and electric cars. Regulators appeared to be trying to minimize the cost to China by picking goods available from Brazil, Russia, Southeast Asia or other suppliers.

“It won’t be difficult for Chinese companies to find replacements for US goods,” said Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, quoted by the newspaper Global Times.

Alternative suppliers such as Europe, Australia and Brazil “will be likely winners,” Rajiv Biswas of

IHS Markit said in a report.

The United States buys about 20 percent of China’s exports, but trade has shrunk as a share of the Chinese economy.

Still, the impact could spread as Chinese factory demand for components from Japan, South Korea, Taiwan and Southeast Asia slumps.

That could cut next year’s AsiaPacific economic growth by up to 1 percentage point, according to Biswas.

Meanwhile, China’s entirely state-controlled media have been ordered to avoid “aggressive language” in describing Trump, the South China Morning Post newspaper in Hong Kong reported, citing unidentified sources.

It said that might be intended to avoid antagonizing the American leader and hindering negotiations.

Other exporters, including makers of solar panels, already were stepping up marketing in Asian and other markets. They are trying to make up for the loss of US and European sales following higher tariffs imposed over complaints they sell at improperly low prices.

Solar exporter Jiangsu Akcome Science & Technology Co. makes about 15 percent of its sales to the United States, while Japan and South Korea are 25 percent to 30 percent, its general manager, Hu Jingnang, told the newspaper Wuxi Daily.

“The ability to increase global resource allocation can effectively offset foreign trade risks,” Hu was quoted as saying. AP

Death toll exceeds 100 as Japan In blow to May, UK’s top Brexit official quits govt counts damage from record rain L

T

he death toll from the historic rainfall in western Japan reached 110 on Monday as rescuers stepped up efforts to clear areas hit by flooding and landslides. Some plants halted by the floods started to resume operations as the affected regions began the process of recovery.

Nearly 80 people remain unaccounted for, according to national broadcaster NHK, and thousands still remain in evacuation centers after record downpours triggered devastation in wide parts of the region, mainly in Hiroshima and Okayama prefectures.

Authorities, who described the downpour as “historic,” have lifted the heavy rain and flood warnings which were been in place since Thursday, and weather in most affected regions is expected to improve.

Toyota Motor Corp., Daihatsu Motor Co. and Mitsubishi Motors Corp. resumed normal operations at plants in after fully or partially shutting down over the past few

THE impact of Japan floods could be greater than June’s Osaka quake.

days. Work remains halted at the factories of Mazda Motor Corp., Panasonic Corp. and Mitsubishi Heavy Industries Ltd. Power and water in wide parts of Hiroshima and Okayama has yet to be re-

Bloomberg

stored, and many of the factories still shut cited the water supply, as well as difficulties faced by employees in getting to work.

As of 3 p.m. Japan time, the death toll stood at 110, NHK said.

The broadcaster also reported that Prime Minister Shinzo Abe canceled a planned trip to Belgium, France, Saudi Arabia and Egypt from Wednesday to cope with the disaster. Bloomberg News

4 rescued from Thai cave in risky operation; 9 remain inside

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AE SAI, Thailand—Expert divers on Sunday rescued four of 12 boys from a flooded cave in northern Thailand where they were trapped with their soccer coach for more than two weeks, as a dangerous and complicated operation unfolded amid heavy rain and the threat of rising water underground.

Eight boys and the coach remained inside the Tham Luang Nang Non cave as authorities paused the international effort to replenish air tanks along the treacherous exit route.

Extracting everyone could take up to four days, but the initial success raised hopes that could be done.

“The operation went much better than expected,” said Chiang Rai acting Gov. Narongsak Osatanakorn, who is overseeing the mission.

He told reporters the four rescued boys were taken to the hospital in the town of Chiang Rai, the provincial capital, for evaluation and the next phase of the operation will resume after about 10 to 20 hours.

The names of the rescued boys were not released.

His announcement, at a news conference more than an hour after helicopters and ambulances were seen rushing from the cave area, drew cheers and applause.

Narongsak had dubbed Sunday to be “D-day” as the complicated effort was launched in the morning.

He said 13 foreign divers and five Thai navy SEALs were taking part in the key leg of the rescue: taking the boys from where they have been sheltering and through dark, tight and twisting passageways filled with muddy water and

strong currents.

Two divers were to accompany each of the boys, all of whom have been learning to dive only since July 2, when the first searchers found them.

Cave-rescue experts consider an underwater escape to be a last resort, especially with people untrained in diving.

The death on Friday of a former Thai navy SEAL, Saman Gunan, underscored the risks. The diver, the first fatality of the rescue effort, was working in a volunteer capacity and died on a mission to place oxygen canisters along the route.

But Narongsak said earlier that recent mild weather and falling water levels had created optimal conditions for an underwater evacuation.

Those conditions won’t last if the rain resumes, he said.

After the four boys were removed from the cave, heavy rain started falling.

The potential for rising water and the dwindling oxygen levels added to the urgency of getting the team out. Efforts to pump water out of the cave have been set back by heavy downpours.

Narongsak said on Saturday that experts told him new rain could shrink the unflooded space where the boys are sheltering to just 10 square meters (108 square feet).

The next phase of the operation would start sometime Monday after rescue teams replenish the supply of oxygen tanks along the route.

On Sunday night, Thai navy SEALs posted a celebratory note on their Facebook page, saying: “Have sweet dreams everyone. Good night.

Hooyah.” AP

ONDON — Britain’s most senior official in charge of negotiating the country’s exit from the European Union (EU) resigned Sunday, accusing Prime Minister Theresa May of undermining Brexit with her plan to keep close trade ties with the bloc.

Brexit Secretary David Davis quit just two days after May announced she had finally united her quarrelsome government behind a plan for a divorce deal with the EU. In a blow to the beleaguered prime minister, Davis told May in a letter that the government’s proposals for close trade and customs ties “will leave us in at best a weak negotiating position, and possibly an inescapable one.”

Davis’s late-night resignation undermined May’s already fragile government, which has lost several ministers in the past year over sexual-misconduct allegations and other scandals. Davis was a strong pro-Brexit voice in a Cabinet divided between supporters of a clean break with the bloc and those who want to keep close ties with Britain’s biggest trading partner.

May’s office said a replacement for Davis would be announced Monday.

His departure could embolden Brexit-supporting Conservative lawmakers—who have long considered May too prone to compromise with the EU—to challenge her leadership.

The staunchly pro-Brexit Conservative lawmaker Andrea Jenkyns tweeted: “Fantastic news. Well done David Davis for having the principal and guts to resign.”

Jenkyns said Steve Baker, a junior minister in the Brexit department, had also quit. There was no immediate comment from Baker.

Less than nine months remain until Britain leaves the bloc on March 29, 2019, and the EU has warned Britain repeatedly that time is running out to seal a divorce deal.

On Friday Davis and the rest of May’s fractious Cabinet finally agreed on a plan for future trade ties with the EU. May is due to brief lawmakers

In this June 6, 2018, file photo, Britain’s Secretary of State for Exiting the European Union (EU) David Davis delivers a speech in London, on Britain’s vision for the future security relationship with the EU. British media outlets say the most senior official in charge of negotiating Britain’s exit from the European Union has quit Prime Minister Theresa May’s government. The Press Association news agency, the BBC and others say Davis resigned on Sunday, 48 hours after May announced that her divided government had at last agreed on a plan for ties with the EU after the United Kingdom leaves next year. Leon Neal/Pool Photo via AP

Monday on the plan hammered out during a 12-hour meeting at Chequers, the prime minister’s country retreat. It seeks to keep the United Kingdom. and the EU in a free-trade zone for goods, and commits Britain to maintaining the same rules as the bloc for goods and agricultural products.

Some Brexit-supporting lawmakers are angry at the proposals, saying they will keep Britain tethered to the bloc and unable to change its rules to strike new trade deals around the world.

In his resignation letter, Davis said the ‘common rule book’ policy hands control of large swathes of our economy to the EU and is certainly not returning control of our laws in any real sense.” He said he was worried the government’s negotiating approach would “lead to further demands for concessions” from Brussels.

“It seems to me that the national interest requires a secretary of state in my department that is an enthusiastic believer in your approach, and not merely a reluctant conscript,” he wrote. AP

A6 Tuesday, July 10, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Ending jobs vs ending contractualization

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ore than a year before President Duterte issued Executive Order 52 prohibiting illegal contracting and subcontracting on May 1, Labor Day, this paper had featured a study released by the Philippine Institute for Development Studies (PIDS) in December 2016, which said the government’s plan to end contractualization could lead to layoffs and greater inequality in the country.

In the study, titled “Beware of the End Contractualization! Battle Cry,” PIDS research fellows Vicente B. Paqueo and Aniceto C. Orbeta Jr. said ending contractualization would be more expensive for companies than the government estimated. Hiring more permanent employees would increase the cost of firms by about 30 percent to 40 percent, higher than the government’s estimate of around 10 percent.

“The dilemma is that, on the one hand, limiting government action to tightening enforcement might not be enough to eliminate endo practice, as promised by President Duterte. On the other hand, aggressive threats of government harassment, huge penalties, business closures, as well as prohibition of all forms of TECs [temporary employment contracts] to close ‘loopholes’ could lead to unintended adverse consequences like reduction in job opportunities and inclusive growth,” Paqueo and Orbeta said.

Now, just a little over two months after the President banned contractualization, Rep. Ariel Casilao of Anakpawis party-list claims at least 200,000 workers have already been fired, based on data gathered by the labor group Kilusang Mayo Uno (KMU). He said several of the country’s biggest companies have chosen to terminate their contractual workers instead of regularize them in accordance with the President’s EO and the labor law provision that those whose jobs are directly related to the business of a company cannot serve as a contractual employee for more than six months.

One of those cited is the case of telecommunications giant Philippine Long Distance Telephone (PLDT) Inc., which recently shed some 7,000 contract workers.

The Department of Labor and Employment (DOLE) insists PLDT must regularize these 7,000 contractuals, but PLDT counters that the onus is on the DOLE, while denying it terminated the employment of its workers.

“The DOLE has ordered 38 service contract providers of PLDT, including our call center and business-process service, to cease and desist from providing services to PLDT,” the telco said in a statement. “PLDT did not terminate these service contracts.”

From June 2016 up to June 2018, a total of 182,915 contractual workers have been regularized following the labor department’s campaign against illegal work contracting and subcontracting. The DOLE has ordered the regularization of another 76,000 workers from top local companies, which they found to be engaged in illegal laboronly contracting. We are talking of just another 76,000 workers out of an estimated 1.3 million contractual employees in the Philippines, and with the PLDT case, just around 7,000 workers out of 76,000—but already the government finds a big fight on its hands; already there is much bickering, finger-pointing, talks of impeding business and halting all but the most essential operations of a very essential telecommunications service provider.

This alone illustrates why it is so hard to ban—with a shotgun approach and apparently without benefit of a better-thought-out strategy—all forms of contractualization and enforce workers’ right to security of tenure, even if it is guaranteed not just by any law but by the Constitution itself.

Security of tenure has become elusive and ambiguous in many workplaces today, not just here but in other countries all over the world. Service contracting has become a major driver of economic growth in the Philippines and other countries, with more companies engaging in contracting and subcontracting.

Almost any kind of service or operation is being contracted out nowadays. For many businesses and even for many governments, it has become an accepted practice that is part of reducing operational costs. Many of what were once regular jobs have become contractual.

IBON Foundation estimates that 4 out of 10 (43.5 percent) rank-and-file workers in establishments with 20 or more employees are now hired under various contractual or non-regular employment schemes. Even business process outsourcing, where the Philippines is a global industry leader, could be considered a form of contractualization. Big corporations routinely outsource and offshore their back-office operations overseas to countries like the Philippines to reduce costs.

It also bears noting that the so-called gig economy has steadily grown in many countries, including the Philippines, signaling an increasing resort to a more flexible arrangement that both the business and the workers deem suits them well.

Maintaining the balance between the need for labor flexibility and ensuring fulltime employment is a tightrope act. Perhaps the labor department can manage a more rational, calibrated strategy that would allow it to better enforce workers’ rights while at the same time not adversely affect the overall business environment and shed the very jobs it wants workers to keep.

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BusinessMirror A broader look at today’s business

Infra projects start paying dividends Manny B. Villar

THE Entrepreneur Continued from A1

C

onstruction workers, thus, are now paid higher than minimum-wage earners because of the scarcity of manpower supply. A construction or property company must now pay a premium in the daily salary if it wants to hire a worker.

You will not be able to hire a construction worker if you do not pay him a premium over the minimum wage.

President Rodrigo Duterte’s “Build, Build, Build” infrastructure program has started to shift to higher gear and “unfortunately” joined the private construction boom. Property companies are now starting to build housing and office space projects whose reservation sales were made two years or a year ago. All these add up to the construction boom, along with the roads, bridges, airports and seaports lined up by the government.

I believe these massive construction activities have stabilized the country’s unemployment situation.

Government figures seem to back this up. The unemployment rate,

according to the latest figures of the Philippine Statistics Authority (PSA), eased to 5.5 percent in April from 5.7 percent in the same month a year ago, as more people found jobs during the period.

The government statistics agency said the April figure was the lowest jobless rate for all the April rounds of the Labor Force Survey in the past decade.

The National Economic and Development Authority conceded that the infrastructure buildup in both the public and private sectors helped boost the number of employed Filipinos in April.

In the doldrums?

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I

n a speech at the National Information and Communications 2018 Summit, President Duterte used the word “doldrums” to describe current economic activity, particularly in the provincial areas.

“Now, the economy is in the doldrums, actually [it is] now,” and “I said in Manila, they’re starting the megaprojects well. I supposed that they would be doing it on time. But in the provinces, it’s a doldrums thing.”

Those were the quotes used in most news accounts.

Immediately—like vultures ready to forage on dead carcasses— “experts” and pundits weighed in on the accuracy of the point that the President was making or trying to make.

The doldrums is used to describe the area in the Pacific and Atlantic Oceans between the latitudes of 5 degrees south and 5 degrees north around the equator. Since this zone is where two trade winds meet, meteorologists call it the Intertropical Convergence Zone. And the “trade

winds” came from the area of the sea where the winds blow the strongest in one direction, carrying the sailing ships that first started globalization.

But in the doldrums there is almost a constant low-pressure area around the equator where the winds are calm. The doldrums are noted for calm periods when the winds stop blowing and disappear, trapping sailing ships for days or weeks. In more modern usage, the doldrums is a period of inactivity or stagnation.

English critic—and opium addict —Samuel Taylor Coleridge in his The Rime of the Ancient Mariner written in 1798, described it this way: “Day after day, day after day, We stuck, nor breath nor motion; As idle as a painted ship Upon a painted ocean.”

But Coleridge was a poet and a philosopher, not a seaman. His poem

The PSA’s Labor Force Survey showed that the employment rate increased to 94.5 percent—or equivalent to 40.9 million Filipinos—from 94.3 percent in April 2017 (40.2 million Filipinos). Net employment generation, meanwhile, reached 625,000, reversing the loss recorded in April 2017.

Economic Planning Undersecretary Jose Miguel de la Rosa earlier said employment rose “partly due to increased infrastructure spending as the Department of Public Works and Highways’s road projects and rehabilitation of public-school facilities are already under way nationwide.”

The sector registered a strong employment growth rate of 8.1 percent or 605,000 workers, raising its total employment share to 19.7 percent, the largest in the past decade. The construction subsector is the biggest contributor to employment, generating 468,000 jobs during the period.

The Philippines, said de la Rosa, is “now seeing the contribution of the Build, Build, Build campaign in terms of job generation,” adding “we can expect the demand for workers in the sector to grow further as more projects break ground.”

The contribution of the construction sector is also evident in

the gross domestic product figures for the first quarter of 2018. The economy expanded in the first three months of the year, partly because of increased government spending on infrastructure.

Finance Secretary Carlos G. Dominguez III said an even more aggressive spending under the Build, Build, Build program and other poverty-reduction initiatives would enable the Duterte administration to hit its target of a GDP expansion of 7 percent or better and reduce poverty incidence to 14 percent over the medium term.

The government’s unprecedented investments in physical and human infrastructure, according to him, would supercharge the economy, attract more investments, create a lot more jobs, especially for the workforce, and liberate millions of Filipinos from poverty.

The current construction boom, especially the 75 big-ticket infrastructure projects of the government costing around $170 billion, will hopefully reverse regional underdevelopment and income inequality, and generate more jobs through the creation of growth corridors across the Philippines.

Duterte’s statement that department secretaries will now be held responsible for any delay or slippage in government projects under their jurisdiction is much more important than talking about the “doldrums.” If the Philippine economy is in the doldrums, there’s a solution: More work and less talk.

ors used the term “horse” to describe how much more they had to work— like horses—in the doldrums. Boats were put over the side and sailors rowed the ship maybe for days until they found the blowing winds.

Is the Philippine economy in a period of “inactivity or stagnation”?

Of course not. Is there a need to put more emphasis on economic activities in provincial areas? Of course, just like it has been needed for the past three decades. Does economic activity depend on the government?

The answer to that question depends on whether you get your paycheck from the bank account of the “Republic of the Philippines” or from the private sector.

However, money has been taken from the private sector to fund government projects. Duterte’s statement that department secretaries will now be held responsible for any delay or slippage in government projects under their jurisdiction is much more important than talking about the “doldrums.”

If the Philippine economy is in the doldrums, there’s a solution: More work and less talk.

probably took inspiration from talking with two close friends, one who accompanied explorer James Cook as the astronomer on Cook’s flagship on a voyage to the Antarctic Circle.

Sailors of the time called this area and farther north and south of the equator the “horse latitudes.” This may have come from the translation of the Spanish “Mares Seas.”

Ships transporting horses to the New World that were stuck in the doldrums or in the unpredictable winds of this area, would often throw some horses overboard to reduce water consumption.

However, the common sailors’ definition of the doldrums or horse latitudes may give a better meaning to the President’s statement.

Coleridge’s description makes more sense if you are high on opium. Sail-

For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

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Opinion

Can DOT chief clean up her agency?

Industrial microbes could feed cattle, pigs and chicken with less environmental damage

BusinessMirror

Ernesto M. Hilario

Cecilio T. Arillo

database

ABOUT TOWN

N

ewly installed Tourism Secretary Bernadette Fatima Romulo Puyat needs all the help she can get from the Duterte administration—and the people under her—in the gargantuan task of eliminating the contagion of graft and corruption in her own turf.

The tourism chief started her term on a high note when she immediately suspended all projects of the Tourism Promotions Board, including the P80-million Buhay Carinderia project of resigned TPB chief Cesar Montano, which reportedly did not undergo public bidding.

She also asked the Commission on Audit (COA) to investigate all the projects of the Department of Tourism (DOT) after announcing in a highly emotional interview that she discovered hundreds of millions of pesos in public funds wantonly spent during the time of her predecessor.

As a case in point, in its 2017 audit report, the COA found that the National Parks Development Committee (NPDC), an attached agency of the DOT whose mandate is to take care of the Rizal and Paco Parks, made questionable expenses worth P7 million.

The COA report said the NPDC chief spent P562,200 for tailoring services to design and produce the uniforms of NPDC officers and employees without government-required documents, such as terms of reference, request for quotation, abstract of canvass and official receipts to support the purchase.

The NPDC allocated P890,000 for the uniform/clothing allowance for its personnel in its 2017 budget.

The COA also questioned P3.7 million in payments to performing artists for several events, P476,000 professional fees for a private lawyer who was hired without the approval of the solicitor general and written consent of the COA, P2.2 million for the purchase of several equipment and excessive travel expenses.

The COA 2017 report also noted a P10-million decline in the NPDC revenues and recommended that the NPDC should review its policies, rules and regulations on revenue generation for the two parks. In response, the NPDC agreed to create a committee to assess its revenue stream and formulate a business model to improve its income profile.

But then, there were reports of concessionaires in Luneta being forcibly removed by the NPDC, including the NPDC Employees Association Canteen where several employees who refused to budge complained that they got locked in the canteen by NPDC security guards allegedly under orders from the NPDC head.

The NPDC chief also reportedly threatened to close down the Luneta parking lot of the Philippine Amusement and Gaming Corp., National Library, Seafarers’ Center, Philippine National Bank and Jollibee. However, the establishments have existing contracts and local permits to operate in Luneta.

There is information though that this could be an attempt to replace the existing establishments with favored ones.

In a recent media forum, Secretary Romulo Puyat was asked if heads will

soon roll in the NPDC, to which she only responded with a smile.

Our humble advice, though, to the good secretary, given indications that the current state of affairs at NPDC could give her more king-sized headaches, is for her to take decisive action, or else any delay may fuel unfavorable public perception especially with her declared commitment to fight graft and corruption in the DOT.

Will BBL 2 pass muster?

Don’t look now, but civil-society groups in Mindanao are aparently dissatisfied with the new Bangsamoro basic law (BBL) now up for deliberation by a bicameral conference committee.

They are calling on Congress to see to it that the final version of the proposed law would dovetail with what was agreed upon in the Comprehensive Agreement on the Bangsamoro.

“We note sadly that both houses of Congress, should they persist in their revisions, will fail to replace the weak autonomous government with a strong autonomous government,” they said, as they appealed to the lawmakers to consider restoring the deleted or transferred power of the Bangsamoro autonomous government. They highlighted a number of key points in their appeal to Congress: One, to restore the original provision of the BBL on inland waters, which should be placed under the exclusive power of the Bangsamoro.

Two, to restore the original provisions of House Bill 6475 on the power of the Bangsamoro government to regulate power generation, transmission and distribution that would be operated exclusively in the Bangsamoro and not to be connected to the national transmission grid.

Three, to restore the original provision of the bill on the share in the national taxes collected in the Bangsamoro.

Four, to restore the original provision of the bill on the core territory of Bangsamoro, particularly on the six towns of Lanao del Norte, so that it would no longer require the consent of the whole province.

And five, to reconsider the wisdom of building strong autonomy for the Bangsamoro as the only key to achieve national peace and solidarity.

The groups said strong autonomy should not be viewed as threat to national sovereignty but as the “most decent and noble gesture” to allow a sovereign people to live as a “self-governing entity” within the sovereignty of the Philippine state.

From where we sit, these are valid concerns, and Congress should heed their views as failure to do so could spark unrest and instability in our southern shores.

E-mail: ernhil@yahoo.com.

T

ODAY, producing feeds for pigs, cattle and chicken can immensely impact global climate and the environment. In the future, animal-feed production will likely shift from croplands to large-scale industrial facilities, as this could bring both financial and environmental benefits. Replacing 2 percent of feed with protein-rich microbes could decrease agricultural greenhouse-gas emissions, global cropland area and nitrogen losses by over 5 percent.

A new study at the Potsdam Institute for Climate Impact Research (PIK) shared to Database estimated the economic and environmental potential of feeding microbial protein to pigs, cattle and chicken on a global scale. Protein-rich microbes, produced in large-scale industrial facilities, are seen replacing traditional crop-based feed.

The PIK scientists found that, by replacing only 2 percent of livestock feed with protein-rich microbes results in more than 5 percent reduction of agricultural greenhouse-gas emissions, global cropland area and global nitrogen losses.

Chicken, pigs and cattle munch away about half of the protein feed cultivated on global croplands, said Benjamin Leon Bodirsky, author of the PIK study. He said that, without drastic changes to the agro-food system, the rising food and animalfeed demand that comes with our meat-based diets will lead to continuous deforestation, biodiversity loss, nutrient pollution and climateimpacting emissions.

“However, a new technology has

emerged that might avoid these negative environmental impacts: Microbes can be cultivated with energy, nitrogen and carbon in industrial facilities to produce protein powders, which are then fed to animals instead of soybeans. Cultivating feed protein in labs instead of using croplands might be able to mitigate some environmental and climatic impacts of feed production. And our study expects that microbial protein will emerge even without policy support, as it is indeed economically profitable,” Bodirsky added.

Environmental impact

The PIK study is based on computer simulations that assess the economic potential and environmental impact of microbial protein production until the middle of the century. The simulations showed that, globally, between 175 to 307 million tons of microbial protein could replace conventional concentrate feeds like soybeans.

“So by replacing just roughly 2 percent of the livestock feeds, pressure on deforestation, agricultural

Bloomberg Opinion

T

he start of trade hostilities between the United States and China accentuates an important underlying theme in China’s own economy and the way it affects the world. A big tussle is taking place within China that the leveling of tariffs by Washington and Beijing can only aggravate. That struggle is the effort by China to slow credit significantly: Enough to squeeze the shadow banking industry and rein in debt at state-run firms, but not so much that it causes a slump in overall growth.

Getting the balance right is tricky.

Few countries manage to pull off soft landings, and trade conflict makes the task even trickier. China’s size means its domestic choices ricochet beyond its shores. If ever there was a test of China’s readiness and willingness to be a global economic leader and not just a big economy, this is it.

There are signs that China is worried by the risk of too great a slowdown and is starting to tweak its monetary policy. The People’s Bank of China declined to follow the Federal Reserve’s increase in interest rates last month, contrary to the predictions of many economists. Then on June 24, the PBOC said it would lower the

greenhouse-gas emissions and nitrogen losses from cropland could be decreased by more than 5 percent—namely 6 percent for global cropland area, 7 percent for agricultural greenhouse-gas emissions and 8 percent for global nitrogen losses,” the study said.

“In practice, breeding microbes like bacteria, yeast, fungi or algae could substitute protein-rich crops like soybeans and cereals. This method was originally developed during the cold war for space travel and uses energy, carbon and nitrogen fertilizers to grow protein-rich microbes in the lab,” explained Ilje Pikaar from the University of Queensland in Australia.

For PIK’s new study, the researchers considered five different ways to breed microbes: By using natural gas or hydrogen, feed production could be completely decoupled from cultivating cropland. This landless production avoids any pollution due to agricultural production, but it also comes with a huge energy demand.

Other processes that make use of photosynthesis by upgrading sugar, biogas or syngas from agricultural origin to high-value protein result in lower environmental benefits; some even increase nitrogen pollution and greenhouse-gas emissions.

Microbial protein alone is not enough

Feeding microbial protein would not affect livestock productivity,” stressed PIK author Isabelle Weindl.

“In contrast, it could even have positive effects on animal growth performance or milk production.” But even though the technology is economically profitable, the adoption of this new technology might still face constraints, such as habitual factors in farm management, risk-aversion

Trump can’t play Putin’s game in Syria

By Eli Lake | Bloomberg Opinion

I

n some alternate universe, it may make sense for the president of the United States to meet with his Russian counterpart to negotiate an end to the fighting in Syria.

It would be a universe in which the American president weren’t constantly denigrating European allies, and the Russian president weren’t habitually lying about his country’s various predations.

Both sides are being vague about what’s on the agenda for next week’s summit in Helsinki between Donald J. Trump and Vladimir Putin. But the prospect of greater US-Russian cooperation on Syria is already a topic of discussion. As National Security Adviser John Bolton told CBS last week: “There are possibilities for doing a larger negotiation on helping to get Iranian forces out of Syria and back into Iran, which would be a significant step forward.” Russian Foreign Minister Sergei Lavrov, meanwhile, said a complete Iranian withdrawal from Syria was not realistic.

If this sounds familiar, it should.

This kind of bargain was discussed during the Obama administration;

former Secretary of State John Kerry spent his last year in office following Lavrov all over the world in an attempt to create a US-Russian framework for resolving the Syrian civil war. He failed.

And when Trump came into office in 2017, two former administration aides tell me, he initially sought a US-Russian deal to combat Islamic State. In his brief tenure as national security adviser, Michael Flynn pursued such a deal.

But a strategic deal, as opposed to smaller regional cease-fires in Syria, was dropped following former Secretary of State Rex Tillerson’s visit to Moscow in April 2017. It was a testy visit that soured Tillerson and other top officials on the chances for a broader agreement. Now that Tillerson is gone (along with Flynn’s replacement, H.R. McMaster), Trump is liberated and wants to get to know Putin better—and gauge his willingness to help isolate Iran.

This is a pointless and dangerous gambit. First, by announcing his intention to pull US forces out of the country “very soon,” Trump has already given away much of his leverage within Syria.

Ideally, Trump would want to

Trade war muddles China’s battle to curb debt

By Daniel Moss

Tuesday, July 10, 2018 A7

amount of cash some lenders must hold as reserves.

For the better part of two years, China has been tapping the brakes on its $12-trillion economy. While GDP grew almost 7 percent last year, the expansion is forecast to slow to about 6 percent over the next couple of years. That’s still solid, but because China is the world’s largest manufacturer and biggest exporter, and because it accounts for more than a third of global economic growth, the slackening matters. It’s showing up in weaker euro-zone growth and a slide in South Korean exports. All before the first shots were fired on Friday

by US President Donald J. Trump, to

which China has responded.

The trade war will be another factor weighing on China as its expansion slows. Industrial production and retail sales fell short of forecasts in May, while investment in fixed assets like factories, roads, power plants and the like had its worst start to the year since data began to be published in 1999.

The meshing of the domestic and international challenges was perfectly illustrated by the cut in reserve requirements. While it was announced on June 24, the reduction was timed to take effect on July 5, the eve of Trump’s imposition of the first $34 billion in tariffs on imports from

toward new technologies, or lack of market access. ”However, pricing environmental damages in the agricultural sector could make this technology even more economically competitive,” Weindl said.

“Our findings clearly highlight that the switch to microbial protein alone will not be enough for sustainably transforming our agriculture,” said PIK coauthor Alexander Popp, adding that, to reduce the environmental impact of the food supply chain, major structural changes in the agro-food system are required, as well as changes in human dietary patterns toward more vegetables.

“For our environment and the climate, as well as our own health, it might actually be another considerable option to reduce or even skip the livestock ingredient in the food-supply chain. After further advances in technology, microbial protein could also become a direct part of the human diet—using space food for people’s own nutrition,” Popp said.

The other PIK scientists involved the new study are Silvio Matassa, Florian Humpenöder, Korneel Rabaey, Nico Boon, Michele Bruschi, Zhiguo Yuan, Hannah van Zanten, Mario Herrero and Willy Verstraete.

The PIK is one of the leading research institutions addressing relevant questions in the fields of global change, climate impacts and sustainable development. Natural and social scientists work closely together to generate interdisciplinary insights that provide a sound basis for decision-making for society, businesses and politics. PIK is a member of the Leibniz Association based in Berlin, Germany.

To reach the writer, e-mail cecilio.arillo@ gmail.com.

establish a phased plan with Putin, where the US would make some withdrawals following Iranian withdrawals from Syria. But Trump has already made it clear that prior US objectives for Syria, such as the removal of dictator Bashar al-Assad, are no longer US objectives. The United States has also declined to make commitments to give money for Syrian reconstruction.

Without any leverage, Trump will have to rely even more on Putin’s word, which is worthless. Putin to this day denies any Russian government role in interfering in the 2016 US election. Just last month, Putin went on Austrian television and lied about his government’s role in shooting down a Malaysian airliner over Ukraine. Why would anyone trust Putin to keep his word to help remove Iran and its proxies from Syria?

And this gets to the most dangerous possible outcome of the upcoming summit. The one thing that Kerry never did was attempt to trade concessions on Syria for concessions on Crimea, the Ukrainian territory that Russia invaded and annexed in 2014. There was a good reason for this: Even if one argues that the future of Ukraine is not a high

priority for the US, it’s a disastrous precedent to allow one nation to change the boundaries of another through force, particularly one that signed an agreement with the United States, United Kingdom and Russia to preserve its territorial integrity in exchange for relinquishing its cold war-era nuclear weapons.

Yet, Bolton and other US officials will not say whether Trump will continue his current policy of imposing sanctions on Russia for its annexation of Crimea and interference in Ukraine. Their reticence suggests Trump is at least willing to discuss cooperation on Syria in exchange for abandoning Ukraine.

Borys Potapenko, a UkrainianAmerican activist and an occasional intermediary between Kiev and Washington, met last week with US officials and has adjusted his expectations accordingly. “The best we can hope for is that the two leaders are content with establishing a better personal relationship,” he said. Officials assured him that there was no change to US policy on Ukraine, he said, but also told him that the final decision rests with the president.

That’s what worries him—and should worry the rest of us as well.

China. The sequencing links the step to trade without explicitly saying so.

T he easing was designed to achieve two things. Five hundred billion yuan ($75 billion) was unlocked for big banks to facilitate debt-forequity swaps, which can reduce debt and help spruce up balance sheets.

Another 200 billion was freed for smaller lenders to help small businesses. The PBOC was at pains to emphasize that this wasn’t a vanillaflavored loosening of policy.

The central bank said it will “keep implementing prudent and neutral monetary policy, and create a favorable monetary and financial environment for high-quality development

and supply-side reform.” Translation: We aren’t reversing course [yet], but we are alert to the risks and want to take out a bit of insurance. There’s little prospect China will roll back on its tough overall line, given that President Xi Jinping has cited financial risks as a “critical battle,” according to Hayden Briscoe of UBS Asset Management.

China is right to tackle debt. Although China’s economy can seem like a juggernaut, few things would threaten economic and, therefore, political stability as much as a banking crisis. An all-out trade war would increase the cost of credit tightening.

That’s quite a needle to thread.

2nd Front Page BusinessMirror

A8 Tuesday, July 10, 2018

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Congress leaders vow BBL draft will be ‘constitutional’

T

HE leadership of the 17th Congress on Monday vowed to submit to President Duterte for signature a “constitutional” Bangsamoro Basic Law (BBL) before the Chief Executive delivers his third State of the Nation Address (Sona) on July 23.

This after members of the Senate and House of Representatives started their weeklong bicameral conference meetings to reconcile the differences between the two chambers’ versions of the proposed BBL. House Majority Leader Rodolfo C. Fariñas Sr. of Ilocos Norte assured the public that the members of bicameral committee are guided by the 1987 Constitution in resolving the contentious provisions of the measure.

“We have to ensure that everything we do and everything we do here will be compliant to the Constitution because surely this will be challenged,” he said.

“It is our task to see to it that whatever we agree on and come up [with] here will have to pass the test of constitutionality,” he added.

For his part, Senate Majority Leader Juan Miguel F. Zubiri said the Constitution should set both the latitude and delimitations of what can be incorporated in the proposed BBL. “Within the limits sets by the Constitution and other laws, we will give the wider latitude in reconciling the two versions of the bill to achieve self-governance and real autonomy in the Bangsamoro,” Zubiri said.

Zubiri said the BBL should be acceptable not only to the whole nation but, more important, to the people of Bangsamoro.

“Our bicam today is beyond historical. Filipinos, not only in Bangsamoro or Muslim Mindanao but throughout the country, are watching us. They are waiting with bated breath as to the final outcome of this Bangsamoro Basic Law,” the senator said.

He said the long objective of the law is to bring lasting and dignified peace and development to Muslim Mindanao or the Bangsamoro, “thus it is also an instrument of peace and development in the Bangsamoro.”

Zubiri described the BBL as an enhanced version of the existing Organic Act for the Autonomous Region in Muslim Mindanao (ARMM).

“We’ve reached a consensus that whatever was in the ARMM Law, Republic Act 9054, we will retain and hopefully enhance. In other words, we do not want an ARMM minus, what we want is an ARMM plus,” he added.

He said members of the panel have decided to finish and agree first on the acceptable provisions of BBL, and defer decisions on contentious provisions, such as territo-

rial jurisdiction of the envisioned Bangsamoro region, wealth sharing, territorial waters and inland bodies of water at a later time of weeklong meetings.

No to watered-down version

Meanwhile, Bangsamoro Transition Commission (BTC) Chairman Ghazali Jaafar said that they will not accept a watered-down BBL. “If their [version of BBL is] less than ARMM, we [will] consider it watered down,” Jaafar said.

Earlier, House Deputy Speaker Rolando G. Andaya Jr. of Camarines Sur urged the lower chamber to seriously look into constitutional issues on some provisions of its version of the BBL. In particular, he noted that Section 1 of Article 12 of HB 6475, on Fiscal Autonomy of the Bangsamoro, is unconstitutional according to existing jurisprudence.

It states: “ The Bangsamoro enjoys the maximum form of fiscal autonomy with the end view of attaining economic self-sufficiency and genuine development.

It shall be entitled to all fund sources enumerated herein, and shall have the power to create its sources of revenues as provided in this law.”

It continues: “It shall prepare its budget and shall allocate funds in accordance with an annual appropriations law passed by the Bangsamoro Parliament.

The form, content and manner of preparation of the budget shall be prescribed by law enacted by the Bangsamoro Parliament.”

According to Andaya, fiscal autonomy is granted by the Constitution and cannot be superseded by

a law passed even by Congress.

Timeline

Mor eov er, Fariñas has expressed confidence that the bicameral committee can produce the best version of the BBL which is acceptable to all.

He said the Senate and House can ratify the proposed law when Congress opens its third regular session on the morning of July 23, and immediately submit it to the President for his signature before his third Sona, afternoon of the same day.

“The agreement was, if we can... do away with all the disagreeing provisions and come up with a version acceptable to both panels... we will present it to our chambers for ratification when we open our third regular session on Monday, July 23,” Fariñas said.

“If we have the ratification, we submit it to the President so the President can sign it into law in the afternoon of that same day when he delivers his third State of the Nation Address,” he added.

Under House Bill 6475, the Bangsamoro territory shall remain a part of the Philippines. The bill seeks to abolish the ARMM and creates the Autonomous Region of Bangsamoro.

The HB 6475 is principally authored by Speaker Pantaleon D. Alvarez. It is the same as the BBL version submitted by the BTC to Congress.

The measure delineates the core territory of the Bangsamoro to be composed of: 1) the present geographical area of the ARMM; 2) the municipalities of Baloi, Munai, Nunungan, Pantar, Tagolan and Tangkal in the province of Lanao del Norte and all other barangays in the municipalities of Kabacan, Carmen, Aleosan, Pigkawayan, Pikit and Midsayap that voted for inclusion in the ARMM during the 2001 plebiscite; and 3) the cities of Cotabatao and Isabela.

The bill retains the central government’s power and control over defense and external security.

It also provides that the defense of the Bangsamoro shall be the responsibility of the Central Government. The Central Government shall create a Bangsamoro Military Command of the Armed Forces of the Philippines for the Bangsamoro, which shall be organized, maintained and utilized in accordance with national laws.

The measure creates a Bangsamoro Police for law enforcement and maintenance of peace and order in the Bangsamoro, but it shall be part of the Philippine National Police.

Under the bill, only one plebiscite will be held between 90 and 120 days upon the effectivity of the BBL and the block grant to the region will be 5 percent of the national revenue. Jovee Marie N. dela Cruz

CLEARING THE AIR? President Duterte and Catholic Bishops’ Conference of the Philippines President Davao Archbishop Romulo Valles met, as scheduled, at Malacañan Palace on Monday, amid rising anxiety that Duterte’s recent controversial remarks against the Church, biblical teachings and even God, may be alienating many Filipinos, the majority of them Catholics and Christians. The Palace said Duterte and Valles agreed to a moratorium on statements about the Church after their meeting. According to Special Assistant to the President Christopher Lawrence T. Go, the one-on-one meeting lasted for 30 minutes, starting at 4 p.m. MALACAÑANG PHOTO

SENATORS SEEK PROBE OF ‘TECHNICAL STOPS’

BY CHINA MILITARY PLANES

M

INORITY senators pressed for a Senate inquir y into the reported “successive technical stops” of Chinese military aircraft at the Davao international airport facilities, to verify possible violations of the 1987 Constitution prohibiting the presence of foreign troops in the country, except under a treaty duly ratified by the Senate.

The senators added the probe would also ascertain “whether the approval or acquiescence of the President alone to the presence of foreign military aircraft, troops or naval vessels within the Philippine territory is enough to permit or allow their presence.”

“The successive occurrence of Chinese military planes making technical stops in Davao City raises the question of whether the Constitution’s proscription against the presence of foreign troops in the country is being violated by the Duterte administration,” six senators from the minority bloc asserted in filing Senate Resolution 779 on Monday.

The five-page resolution, listing Senate Minority Leader Franklin M. Drilon and Senators Leila M. de Lima, Paolo Benigno A. Aquino IV, Risa Hontiveros, Francis N. Pangilinan and Antonio F. Trillanes IV as coauthors, is expected to be referred to the appropriate Senate committees for joint hearings when Congress reconvenes on July 23.

Resolution 779 indicated that among those expected to be summoned for questioning at the upcoming Senate inquiry are officials of the Department of National Defense (DND)and the Armed Forces of the Philippines (AFP). The senators signaled they are keen to verify if such arrangement with the Chinese government is covered by any treaty or any legally binding agreement.

The authors of the resolution said the Philippines has “no existing

treaty” with the People’s Republic of China allowing the use of Philippine military and civilian facilities

by Chinese military aircraft.

They added that the circumstances surrounding the Chinese military aircraft’s successive landings in Davao triggered speculations that “the use by the Chinese military of Davao City’s airport facilities is a personal favor granted

by President [Duterte] to China.”

The senators recalled initial reports that a Chinese military plane was allowed to land at the Davao City International Airport last June 8 “purportedly to refuel” after it was “received, processed and cleared” by the concerned Philippine government agencies “according to Presidential Special Assistant Christopher Go.” Another Chinese aircraft was allowed to land and refuel in Davao City on June 24. The senators noted that this second landing prompted President Duterte’s spokesman Harry L. Roque Jr. to assure the public the necessary protocols were followed in the latest “technical stop” of the Chinese plane.

Citing unnamed sources, Trillanes said he was informed that “it was not the first time that a Chinese plane landed in Davao City, raising questions whether protocols were followed and whether there is an apparent attempt to hide the incident from the public.”

The Minority senators said an independent inquiry into these incidents was necessary, given China’s aggressive island-building and militarization in the West Philippine Sea, as well as domination and control over Scarborough Shoal.

The want the inquiry to “clarify the role of the DND and the AFP in approving, monitoring and overseeing the transit, passage, presence and use of the Philippine facilities by foreign military aircraft.”

Butch Fernandez

with Kezhia Maglasang

‘Govt not closing door to communist rebels’

T

HE gover nment is not closing its doors to negotiations with the National Democratic Front of the Philippines (NDFP), despite the word war between the President and communist leader Jose Maria Sison, Presidential Adviser on the Peace Process Jesus Dureza said.

Dureza was reacting to communist party founder Sison’s statement that the NDFP may just have to wait for President Duterte’s successor to resume the talks. Sison also opposed the holding of localized peace negotiations.

While the talks appeared to

have fizzled out again, both the government and the NDFP—of which Sison is chief political consultant—have yet to make official pronouncements that they are already scuttling the negotiations.

“We have not closed the doors to peace. Hence, efforts to pursue peace through negotiations are still possible. As I said, the doors are still wide open for both sides to work on,” said Dureza in a statement released by his office on Sunday afternoon.

“When that precise time comes, we at OPAPP [Office of the Presidential Adviser on the Peace Pro-

cess] will again seek the President’s guidance as we proceed to do our mandated task to bring just and sustainable peace in the land—a dream of every Filipino, and that of President Duterte,” he added.

Meanwhile, Interior Officer in Charge Secretary Eduardo M. Año said the government will push through with the localized talks with the “ground units of the National Democratic Front-New People’s Army [NDF-NPA] should peace talks with the Communist Party of the Philippines [CPP]” not continue.

See “Govt,” A2