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BRITAIN’S MAY: WE WILL RISE TO THE CHALLENGE

Queen Elizabeth II welcomes Theresa May at the start of an audience in Buckingham Palace in London, where she invited the former Home secretary to become prime minister and form a new government on Wednesday. (Above) Outgoing Prime Minister David Cameron speaks to the press outside 10 Downing Street in London, as his wife Samantha and their children Nancy, Elwen (right) and Florence look on. Dominic Lipinski, Kirsty Wigglesworth/AP

ew British Prime Minister Theresa May vowed on Wednesday to steer her country through the uncertainty and turbulence of its split from the European Union, declaring, “Because we are Great Britain, we will rise to the challenge.” Related stories on A6 and A7. But there were few illusions about the size of the task confronting May See “Britain’s May,” A2

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Friday, July 15, 2016 Vol. 11 No. 279

LAND-RECLAMATION PROJECTS, LIKE MINING, FACE STRICT SCRUTINY

Lopez also tightening screws on reclamations

By Jonathan Mayuga

@jonlmayuga

ust like mining and coal-fired power projects, land-reclamation ventures will also have to go through the eye of a needle under the watch of Environment Secretary Regina Paz L. Lopez.

INSIDE

Rains are here— inevitably, obviously

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MASINLOC TOWN FINDS HOPE IN PCA RULING VS CHINA

The number of massive landreclamation projects in the pipeline

In an interview with the BusinessMirror, Lopez said she will consult with experts and environmental groups about development projects that involve urban expansion through Continued on A2

This July 12 photo shows high-school students in a demonstration urging the exit of Chinese forces from the contested Scarborough Shoal, which locals call Bajo de Masinloc. HENRY EMPEÑO By Henry Empeño | Correspondent & David Cagahastian

motoring

ASINLOC, Zambales—Fishermen in this town are raring to return to their traditional fishing grounds at the contested Scarborough Shoal, following an international court’s ruling against China’s claims on the West Philippine Sea (South China Sea). People in this fishing town near Scarborough, a rich fishing ground some 224 nautical miles from the coast of Zambales, rejoiced on Tuesday, after learning of the ruling by the Permanent Court of Arbitration (PCA) on the maritime dispute at the West Philippine Sea. “We literally jumped for joy when we saw on television that the Philippines won a favorable ruling,” according to Christian Felix, 24, one of the residents of Santa Lucia, a seaside strip populated by many families relying on fishing for income. “Makakabawi na [We can already make up for previous losses],” John-John Español chimed in. According to Español, almost everyone in the town is happy, because fishermen would be able to go back to the Scarborough and fish again.

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Telcos ‘confident’ of securing TRO against review of buyout

LET’S TALK OPEN

M a z d a Skyactiv-D: Breaking barriers

sports

thanking bsp stakeholders Amando M. Tetangco Jr., chairman of the Monetary Board and governor of the Bangko Sentral ng Pilipinas (BSP), delivers his keynote address at the 2016 Awards Ceremony and Appreciation Lunch for BSP Stakeholders in Manila. ROY DOMINGO

By Tamara Natividad

Special to the BusinessMirror

T c1

he two telecommunications giant in the Philippines said they believe they have a strong case against the Philippine Competition Commission (PCC), and called on the agency to “respect its own rules.” PLDT Inc. and Globe Telecom Inc. expressed confidence that they will win their separate injunction cases against

PESO exchange rates n US 47.2480

the PCC, as they have followed the rules laid out by the antitrust body concerning mergers and acquisitions. “I’m hopeful that we will win our case. Our case is meritorious,” Ray C. Espinosa, who heads the regulatory affairs and policies office at PLDT, said in an interview. “But we have to wait for the action of the Court of Appeals. We hope they will act on the urgency of the matter.”

See “Telcos,” A12

There was nothing wrong with the deal. The PCC is wrong to subject it to a review.” —Espinosa

Bilateral talks

THE hope by fishermen of Masinloc is shared by Malacañang, as Budget Secretary Benjamin G. Diokno said President Duterte is amenable to starting the bilateral talks with China following the favorable verdict from the United Nations PCA this week. Mr. Duterte considers the Philippines to be in a better position in the proposed bilateral talks with the arbitration court’s decision in favor of the Philippines, according to top government officials. “What he said was that we’ll start the bilateral talks, and now we’re starting from a better position,” Diokno said in an ambush interview. According to Justice Secretary Vitaliano N. Aguirre II, among the officials who were present at the Cabinet meeting were Supreme Court Associate Justice Antonio T. Carpio and former Solicitor General Florin T. Hilbay, who were both instrumental in putting the Philippines’s case together. Continued on A4

n japan 0.4522 n UK 62.1264 n HK 6.0918 n CHINA 7.0644 n singapore 35.0973 n australia 35.9321 n EU 52.4075 n SAUDI arabia 12.5995

Source: BSP (14 July 2016 )

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Lopez also tightening screws on reclamations Continued from A1

massive land reclamation. “The PRA [Philippine Reclamation Authority] gave me a presentation on Tuesday. During the presentation, they told me that they don’t do anything without addressing environmental issues. But maybe I should talk to the other side also,” she said, referring to those who oppose land reclamation. Lopez had started to tighten the screws on mining companies. Aside from a mining audit, Lopez had ordered a moratorium on the approval of new mining projects and wants the Philippine Mining Act amended to increase the government’s and communities’ share in mining profits. She also expressed her disapproval to the open-pit mining method, which is the preferred method of large-scale mining companies. Massive land-reclamation projects are being strongly opposed by some quarters, particularly environmental groups, because—like mining—they cause massive environmental destruction. Aside from destroying coastal and marine ecosystems, land-reclamation projects, they say, also cause people, particularly fishermen, to suffer. The PRA is an attached agency of the

Britain’s May. . . Continued from A1

as she seeks to navigate a complex new relationship with continental Europe and foster unity in a society whose deep rifts were laid bare by last month’s Brexit referendum. It was a day of the pomp-filled choreography that characterizes both solemn and joyous British formal events—and one punctuated by moments of unguarded emotion, especially on the part of departing leader David Cameron. May also quickly got down to business, naming some key members of her new Cabinet—including prominent Leave campaigner and former

Department of Environment and Natural Resources (DENR) that regulates land-reclamation projects. As chief of the DENR, Lopez would also be making hard decisions on land reclamation that would eventually fall into her lap. The PRA only flashes the green light for any land-reclamation project upon the approval or clearance from concerned government agencies, particularly the DENR’s Environmental Management Bureau, which issues the environmental compliance certificate, as well as the DENR’s Biodiversity Management Bureau and the Bureau of Fisheries and Aquatic Resources of the Department of Agriculture. There are currently eight massive landreclamation projects in the pipeline, some of which are being evaluated by the PRA, while others are awaiting final approval either by the Office of the President or the National Economic Development Authority. Most of these land-reclamation projects are public-private partnership ventures involving vast tracts of coastal and marine areas, and would, most likely, happen within the next 10 years upon final approval. In Cebu alone, a growth center in Central Philippines, land reclamation has been happening, threatening the integrity of marine ecosystem in the province, including the Tanon Strait Protected Seascape,

London Mayor Boris Johnson as the new foreign secretary. Earlier events carried the air of national spectacle. Cameron ceremonially tendered his resignation to Queen Elizabeth II, less than three weeks after the electorate defied his wishes and voted to abandon the European Union (EU). Aerial cameras followed his last journey by motorcade from the prime minister’s residence to the flag-topped bulk of Buckingham Palace. Immediately following Cameron’s pr ivate aud ience w it h the Queen, May, 59, the second woman to serve as British prime minister, was summoned for the traditional transition-of-power

a major fishing ground and an important migratory pathway of marine wildlife, like whale sharks, locally called butanding; dolphins; and turtles, or pawikan. Oceana Philippines, an international ocean-conservation advocacy group, has appealed to President Duterte to stop the “illegal” land-reclamation projects in the province. According to Lopez, she will consult experts and environmental groups to get inputs before coming up with a policy pronouncement on land reclamation. “I really have to find out why they don’t like it [land reclamation], and then find out what the environmental [groups have to say]. I am not really yet through with all the facts. But I was assured by the PRA that they follow environmental rules. Let me find out,” she said. Clemente Bautista, national coordinator of the Kalikasan-People’s Network for the Environment (Kalikasan-PNE), said Lopez can consult several groups that could help her on the issue of land reclamation. These include the People’s Network for the Integrity of Coastal Habitat and Ecosystems, or People’s NICHE; Save Laguna Lake Movement; and Save Manila Bay Network. “ These groups have consistently and successfully protected our coastal ar-

meeting in which she was formally invited to form a government. The palace swiftly released an image of her curtsying to Elizabeth— with a trademark black handbag draped over the monarch’s arm as the two clasped hands, both smiling broadly. The deal was sealed. And in a neatly timed vehicular switch that took place during her royal audience, May left the palace in her new wheels: the prime minister’s silver Jaguar. The new leader’s first order of business was to begin assembling her Cabinet, which was to include a Brexit minister tasked with overseeing the separation from the 28-member EU. May also was

eas, particularly Manila Bay and Laguna Bay, where the biggest reclamation projects are located,” Bautista said in an inter view. “We are more than willing to help the DENR Secretary and the Duterte administration in [crafting] their policies and programs, as long as it work toward the protection of our water resources and ecosystems while respecting the rights of our people and communities,” Bautista said. Kalikasan-PNE believes that there is no need to reclaim coastal and lakeshore areas, noting that the country has more idle lands to develop if the intention is to establish mass housing, or new sites for commercial and industrial use. “Reclamation is double-edge environmental tragedy. First, you need to devastate mountains or land areas to get landfill and reclamation materials and, second, devastate water ecosystem by filling them with soil,” Bautista said. For its part, the militant Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya-Pilipinas) is urging Lopez to include the rural people, including the fishermen and farmers, in her planned public consultations on land and coastal reclamation. Sought for reaction, Pamalakaya, through Salvador France, its vice chair-

expected to bolster female representation and include both Brexit backers and opponents. May, who promised to abide by the referendum results, had lent low-key support to then-boss Cameron during the campaign, but is viewed as sympathetic to the Euroskeptic camp. The new prime minister has a reputation for both unflappability and being a tough negotiator, and analysts said those qualities would be sorely tested in coming months. “A lot of it will depend on who she chooses in her Cabinet,” said Michelle Egan, a fellow with the Woodrow Wilson Center’s Global Europe program. “She’s in a tough spot, a really difficult position.”

man, said farmers and fishermen are the front-line casualties of land reclamation. The rural people are always at the receiving end of negative effects of environmental degradation. “Land- and coastal-based reclamations jeopardize not only the environment, but primarily the lives of the fishers and farmers,” France added. He said land-reclamation projects always lead to displacement of fishers and farmers from their main source of livelihood. “It fuels demolition of fishing and farming communities to give way to moneymaking businesses at the expense of rural people’s tranquil lives,” France said. According to France, productive fishing and farming zones are turned into moneymaking hub by businesses pushing for land reclamation, benefiting only the rich. “We want a propeople and genuine environmental protection that will promote sustainable livelihood and development to the people,” he said. The group reminded Lopez to prohibit not only wanton large-scale mining operations, but also other activities that destroy the environment and the lives of the people. Kalikasan-PNE and Pamalakaya have been backing Lopez’s environmental advocacy, particularly her tough stance against coal and mining.

The first of those appointments, in addition to Johnson, who, as one of the most visible public faces of the winning side, had been expected to garner a prominent post, included Philip Hammond, who had been the foreign secretary and a Remain backer, and was named chancellor of the exchequer, or finance minister—a key post amid postBrexit economic turmoil. Lawmaker David Davis of the Leave camp was named the minister for the EU exit. In addition to presiding over a drawn-out and messy prospective split from Europe, May also will have to contend with separatist rumblings from Scotland,

which voted in favor of staying in the EU, and may seek to bolt the United Kingdom if Brexit comes to fruition. In her first remarks as prime minister, May told an assembled throng outside 10 Downing Street that she would strive to protect the “precious, precious bond” between England, Scotland, Wales and Northern Ireland. And May—speaking in almost Bernie Sanders-esque terms— vowed to address the economic and class inequalities that came so clearly to the fore during the referendum campaign. Prosperity, she said, should not rest with “the privileged few.” “If you’re one of those families —if you’re just managing—I want to address you directly,” she said, peering resolutely into the cameras. “I know sometimes life can be a struggle.” Even with upheaval the new norm in British politics, this week’s events unfolded with unaccustomed speed. May was named head of the governing Conservative Party on Monday after a welter of rivals fell away, setting the stage for her to assume the prime minister’s post. Cameron then declared his readiness to depart 10 Downing Street, the prime minister’s residence, in a scant 48 hours. Thus unburdened, he appeared almost jovial, caught on microphones humming a jaunty tune. The leadership contest had been expected to last through the summer, but the accelerated timetable, and the swift closing of party ranks behind May was spurred in part by a craving for stability that could stem the already painful economic fallout of the prospective divorce from Europe. May is an experienced Cabinet minister, but largely untested in the realms of foreign relations and finance—which will be the overriding concerns, as Britain comes under pressure from Europe to avoid foot-dragging. The exit process will not begin until the new leader invokes what is known as Article 50 of the Treaty of Lisbon, the triggering mechanism for a member-state to depart the EU. As for departures, Cameron’s final hours in office were remarkably free of rancor after the polarizing referendum and its bitter aftermath. In a final parliamentary appearance earlier on Wednesday—a regular weekly session, known as the Prime Minister’s Questions, which often takes on the character of a blood sport—Cameron received a warm send-off from lawmakers, taking a determinedly lighthearted tone. LA Times/TNS

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DOT chief set to reactivate interagency tourism council By Ma. Stella F. Arnaldo

@Pulitika2010 Special to the BusinessMirror

HE Department of Tourism (DOT) will be convening the interagency Tourism Coordinating Council (TCC) immediately to address urgent issues confronting the country’s tourism industry. In a press statement, Tourism Secretary Wanda Corazon T. Teo said there is increased concern for tourism security and inadequate infrastructure in many tourism destinations, which need to be addressed by the TCC. She said these concerns were expressed during a recent industry reception for tourism leaders and the new DOT officials. The tourism secretary heads the TCC, which was established under the Tourism Act of 2009 (Republic Act 9593) “to serve as a coordinating body for na-

tional tour ism development effort.” Its members include the secretaries of other regular line agencies, like the Departments of Transportation and Communications, Public Works and Highways, Foreign Affairs, Environment and Natural Resources, Interior and Local Government, Labor and Employment, Education, along with the heads of the Philippine National Police (PNP), attached agencies of the DOT, Bureau of Immigration, National Historical Institute, National Commission for

Culture and the Arts, and Philippine Amusement and Gaming Corp. Other members of the TCC include executive directors of the league of local government units and representatives from the Tourism Congress, accredited nongovernmental organizations and peoples’ organizations involved in ecotourism, and indigenous peoples’ federation. Teo, a tourism industry veteran, noted that the TCC has not convened for a year and a half despite rising alarm over the kidnapping of foreigners, as well as worries over poor access roads and the lack of direct flights to tourist destinations. The DOT secretary said, during a recent Cabinet meeting, PNP Chief Director General Ronald dela Rosa assured that police personnel will be visible in tourist areas and tourist police units will be beefed up. She added that Transportation Secretary Arthur P. Tugade, likewise, guaranteed improvements of airport facilities all over the country. “Secretary Tugade said airport renovations are already ongoing

and new routes, as well as direct flights to Manila and Clark from abroad, [will be added]. They are also resolving the shortage of yellow taxicabs [at the passenger terminals],” Teo said. Public Works Secretary Mark A. Villar has also promised to improve and build more “airport-toparadise roads” in the country’s tourist destinations. The tourism secretary said she, likewise, reached out to Environment Secretary Regina Paz Lopez to enhance closer cooperation between the two agencies, especially in matters of protecting the environment in tourism destinations. During an open forum between Teo’s team and tourism industry leaders, the latter raised several issues with her, such as traffic congestion, destruction of historical sites, the massive number of street people and “colorum” tour guides and taxi services. “We cannot sweep these issues under the rug. It is the mandate of the Tourism Coordinating Council to resolve such issues,” Teo stressed.

Friday, July 15, 2016 A3

Hot money registered strong inflows in June By Bianca Cuaresma @BcuaresmaBM

hort-term investments made by international market players in the Philippines sustained their net-inflow position at the end of June, showing renewed continued confidence after the change in the country’s administration, data from the central bank showed. The Bangko Sentral ng Pilipinas (BSP) reported on Thursday that foreign portfolio investment (FPI) transactions for June yielded overall net inflows of $451 million, a “significant improvement” from the $73-million net inflows a month ago. The June 2016 level of inflows is a turnaround from the $522-million net outflows posted a year ago. FPIs are more popularly known as hot or speculative money because they are easily pulled in and out of the local platforms in the slight change of global and local sentiment. The positive development pushed the FPI net inflows of the country in the first half of the year to $594 million, lower than the $738-million net inflows seen in the same six-month period last year.

The net inflow in the entire January to June this year commenced, as the total inflows in the first six months of the year of $8.51 billion was more than enough to offset the $7.9-billion total outflow during the period. The BSP attributed the inflows to the large inflows in shares of a universal bank, as well as the sustained interest in peso-denominated government securities. About 83.8 percent of investments registered in June were in Philippine Stock Exchange-listed securities. These were mainly pertaining to holding firms; food, beverage and tobacco firms; property companies; banks; and telecommunication companies. Meanwhile, the 15.7-percent balance was in peso government securities and the 0.5 percent were invested in other peso debt instrument and peso time deposits. The United Kingdom, Singapore, the United States, Luxembourg and Hong Kong were the top 5 investorcountries for the month, with combined share of 80.8 percent. The US continued to be the main destination of outflows, receiving 84.2 percent of the total.

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Govt to pour money for more roads, cut spend on BuB, CCT By David Cagahastian @davecaga

HE Duterte administration is proposing to spend P890.9 billion in infrastructure projects for 2017, the Department of Budget and Management (DBM) said on July 14. Budget Secretary Benjamin E. Diokno said the increase in infrastructure spending for 2017 will come from some items prepared by the previous administration, which were slashed by the DBM’s ongoing review of the 2017 budget. The P890.9 billion in proposed infrastructure spending is higher than 5 percent of the GDP, which the previous administration estimated to be equivalent to P836 billion for this year. Data from the DBM showed that spending on infrastructure has increased over the last five years. It recorded infrastructure spending already at P760 billion for this year, from P165 billion in 2010. Registered disbursements on infrastructure and other capital outlays last year was at P436 billion, which was said to have contributed to the 13-percent growth in total national government disbursements. Among the items Diokno said would have decreased allocation in the administration’s version of its budget proposal to Congress is the so-called Bottom-up Budgeting (BuB) projects. The BuB projects were touted by the previous administra-

tion as its way of allowing grassroots communities to participate in the budget-making process. Diokno said only projects intended for four th-class, fifthc l a ss a nd si x t h- c l a ss mu n ic ipalities would be retained under the 2017 budget proposal. BuB projects proposed by cities and higher-class municipalities would be excluded because of the “political ” nature of the budget allocations, Diokno explained. The Duterte administration will propose a P3.0018-trillion national budget for 2017, or 11.6 percent higher than this year’s approved budget.

More roads

DIOKNO said the infrastructure projects eyed by the Duterte administration are mostly projects that will improve transportation, such as improvements on the road network. There would be a moratorium on constructing new buildings for government offices, he added. “We’re putting all new buildings on hold. For me, in terms of seniority, roads are more senior than nice offices,” Diokno said, referring to the priority put by the government on roads rather than on new offices. He said the government plans to establish a government center in just one place to make it easier for government agencies to coordinate with each other. “I have in mind one government center where, if you want an interagency meeting, you can just

step out of your office and walk,” Diokno said. “That could help ease the traffic.”

Antipoverty programs

THE Duterte administration would also keep the Conditional Cash-Transfer (CCT) Program of the Aquino administration. Diokno said the DBM proposes to keep the funding of the CCT Program at around the same level as allocated for the program this year. The proposed funding of P54.9 billion for the said program, however, is about P10 billion lower than the average of P64 billion allocated by the Aquino administration. Diokno said the Duterte administration would also reduce the “wastage” in the implementation of the conditional transfer program. He added the government will plug leaks resulting from the inaccurate targeting of beneficiaries. “The [CCT] program will be retained at the present level, but we’ll reduce the wastage, because there are some who don’t deserve to be in that list, and there are some who should be in that list but are not there.”

No pork

DIOKNO confirmed there were requests by congressmen to the various departments of the government for funding for their pet projects in their districts. However, he said such practice is not akin to the previous practice of allocating pork-barrel funds for legislators. With Rea Cu

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Duterte administration to speed up PPP projects

By Rea Cu

@ReaCuBM

INANCE Secretary Carlos G. Dominguez III announced there would be no “hiatus” in projects under the public-private partnership (PPP) scheme that are already in the pipeline. In a forum, Dominguez told businessmen the government under President Duterte would not commit the mistake done by the past administration, which was suspending vital public infrastructure programs for two years as it reviewed all projects pending that time. “We’re going ahead with all of them,” Dominguez told the businessmen. “We will just assume that the previous administration did the right thing, and then we will push ahead, so there will be no hiatus in time for the PPP projects that are

already in the pipeline.” The chief of the Department of Finance (DOF) added the Duterte administration would not review again all the projects already in the pipeline to hasten the implementation of these projects. Dominguez said what is being reviewed is the average time it takes to start a PPP project. The DOF chief said it takes an average of 29 months for proponents to actually start a project. What we want is to reduce it to at least 20 months to accelerate the develop-

ments of infrastructure projects, he said, adding the review is being done by the DOF, the Department of Budget and Management and the National Economic and Development Authority (Neda). “Definitely, we’ve been discussing with the Neda, which is in charge of the PPP Center, as well as with the budget department that this process has to be speeded up and brought down to probably below 20 months.” Dominguez added the government has also lined up more infrastructure projects to keep in line with Mr. Duterte’s key priority, which is to ramp up infrastructure spending outside of Metro Manila. “We have lined up quite a number of [infrastructure] projects or implementations, either through PPP or through government budget methods,” the finance secretary said. “We’re going to review the process of the approvals, and cutting down the red tape for getting all the approvals for all these projects.”

Masinloc town finds hope in PCA ruling vs China

This July 13 photo shows a crew of deep-sea fishing vessels preparing their nets and other fishing gears at a boatyard in the fishing community of Matalvis in Masinloc, Zambales. Henry Empeño

continued from a1 An official statement from Mr. Duterte, however, which would reflect the Philippines’s foreign policy on the issue on the territorial dispute in the South China Sea, is not yet forthcoming.

Cause celebré

THE cause of celebration for the ruling by the people of Masinloc is the relief they expect to arrive. Lar-Jay Barrera, Clarisse Mahinay and Freddie Abastilas, all students at the Taltal National High School here, said the ruling was a big relief for town residents, even for those who do not fish for a living. Barrera said fish prices went up after the Chinese took over Scarborough. Likewise, the supply scarcity did not leave them much variety of fish to choose from in the market. “Panay na lang bangus o tilapia [Almost every day, the choice is only between milkfish or tilapia],” he said. Mahinay, whose 50-year-old father still fishes to put food on their table, said the ruling has given local fishers fresh hope after being economically displaced when the Chinese Coast Guard cordoned off the Scarborough in September 2012 and began shooing away Filipinos from their traditional fishing grounds. As Masinloqueños, we are glad that our fishermen would again be able to fish there and earn better, Nelson Mayola, town councilor, said. “Wala nang takot ang mga mangingisda ngayon dahil panalo tayo sa laban. Wala nang panganib [There is no more reason for local fishermen to be threatened because we won the case. There is no more danger],” Mahinay said.

Fresh challenges

LEONARDO Cuaresma, chairman

of the Federation of Fisherfolk Associations in Masinloc, pointed new challenges with the ruling. Cuaresma said the celebration over the favorable ruling was somewhat dampened by the reality that enforcing the ruling would be another matter altogether. And for local fishermen, this would be another struggle to contend with, he added. “May saya kaming nararamdaman, pero may totoong lungkot [We feel happy over the ruling, but beneath this, we feel sadness],” Cuaresma said. “Sa ngayon ay pinagbabawalan pa namin ang aming mga kasama na lumaot, dahil hindi sigurado ang lagay ngayon kung nasa peligro pa ba o hindi na” [Right now we are asking our fellow fishermen not to venture out into the shoal because we cannot yet be sure of their safety].” Cuaresma added the Philippine government may be forced to consider the proposed bilateral talks with China, which reportedly said would not honor the tribunal ruling. “Wala tayong kahandaan na labanan ang Tsina, kaya kailangang maresolba ito ng mapayapa [We are not capable of fighting it over with China, so the issue must be resolved peacefully],” Cuaresma said. “But first, we should unite to ask the Chinese to respect the ruling.”

Little patience

LOCALS contend that the PCA ruling had validated their claim, formalized five years ago. Masinloc, which is one of the oldest municipalities in Zambales, has formally claimed territorial jurisdiction over Scarborough in March 2011, more than a year before the standoff that resulted in China’s effective control of the shoal. The claim is backed by a resolu-

tion by the town council. Masinloc Vice Mayor Daddy Enciso asked fishermen to extend more patience. “My advice for them is to be [more] patient. Huwag po tayong padalusdalos [Let us not be hasty],” Enciso said. “We were able to wait in the last three years that the Chinese had controlled the shoal, so why can’t we wait a bit more now—for the time when all is clear?” Enciso added that he considers the fishing problem at Bajo de Masinloc as secondary. “What’s important there are the natural resources in the area.” Enciso said the Philippines should be open to a shared development of the West Philippine Sea, for international investors to explore and develop the resources therein. “There is no question that Scarborough Shoal is ours. But the bottom line is we cannot develop it on our own,” Enciso said. “We need the help of other countries.” However, in a TV interview on Thursday, Supreme Court Associate Justice Antonio Carpio was quoted as saying the Philippine Constitution prohibits a joint development on the disputed areas.

Five days

IN a statement on Wednesday, Communications Secretary Martin M. Andanar said it would take at least five days for the Office of the Solicitor General to interpret the decision of the UN’s arbitration court. The court said in a statement following the promulgation of the 500-page decision that it favors the Philippines’s argument against China’s nine-dash line. The court also upheld the Philippines’s right to an exclusive economic zone in those areas claimed by China.

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AseanFriday BusinessMirror

Editor: Max V. de Leon • Friday, July 15, 2016 A5

Singapore growth improves on services rebound

ingapore’s economy grew at a faster pace in the second quarter following a rebound in the services industry, a recovery that may be difficult to sustain as risks to global growth climb.

GDP expanded an annualized 0.8 percent from the first quarter, according to an advance estimate by the Ministry of Trade and Industry (MTI) on Thursday. That compares with a median forecast of 0.9 percent in a Bloomberg survey of nine economists and a 0.2-percent expansion in the first three months of the year. Trade-dependent Singapore is vulnerable to swings in global demand, as the world still grapples with the United Kingdom’s decision to leave the European Union. That raises question marks on whether last quarter’s improvement in the services industry—a sector that makes up about 69 percent of GDP—can be repeated. “It’s a hollow relief,” said Vishnu Varathan, an economist at Mizuho Bank Ltd. in

0.8%

The Singapore’s annualized GDP growth from the first quarter

Singapore. “Brexit risks are not reflected in the pick up.” The government is forecasting growth of 1 percent to 3 percent this year. The quarterly advance estimate for GDP is based on only two months of data and the figures are

Manila Water plans to supply industrial parks in Asean

anila Water Co. plans to provide water to industrial parks and offer sanitation services in Southeast Asian countries, as it expands to meet a target of doubling earnings in five years. Manila Water has the expertise for industrial needs, as it operates two of the largest industrial parks in the Philippines, Perry Rivera, COO for the company’s new business operations, said in an interview in Singapore. “We want to replicate in other Asean countries,” he said, referring to the Association of Southeast Asian Nations. Entering markets outside the Philippines would help company President Gerardo Ablaza meet its goal to double earnings by 2020 from 2015, when net income rose 2 percent to P5.96 billion ($126 million). The company, one of two main water suppliers in the greater Manila region, has

branched out to other parts of the Philippines through six subsidiaries, which are all profitable, Rivera said on July 13. Manila Water fell 1.1 percent to P27.2 at the midday break in Manila trading, paring its gain this year to 13 percent. The Philippine Stock Exchange index has advanced 15 percent in the period. Outside the Philippines, Manila Water distributes water in the Cu Chi district of Ho Chi Minh city. The company is also conducting pilot projects in Yangon, Myanmar and Bandung in Indonesia, Rivera said. “While initially the capital cities of Asean countries are attractive, they are also the most difficult to manage,” the executive said. “It is best to look at second-tier markets, prove you can make a difference and from there, you can look at other opportunities.” Bloomberg News

IS a rising threat in region

neffectual attacks by the Islamic State (IS) group’s followers in Southeast Asia have shown them to be fragmented and lacking in the expertise that has produced devastating death tolls elsewhere in the world. But terrorism experts say the threat from the militants, spread across predominantly Muslim Indonesia, Malaysia and the southern Philippines, should not be underestimated and they could be transformed into a more dangerous force by training and leadership. There are plenty of signs radicals in the region have been animated by IS leader Abu Bakar al Baghdadi’s call for attacks and the group’s ambition to create Southeast Asian provinces of the IS caliphate even as it loses territory in Syria and Iraq. A grenade blast at a bar outside Kuala Lumpur, Malaysia, in June was acknowledged by the police as the first IS attack in the country, where more than 150 people have been detained for involvement with the militant group since 2014. It injured eight people but caused no deaths. Subsequent arrests of people linked to the attack included two police officers. A suicide bombing directed against the police last week in the Indonesian city of Solo killed only the bomber, who the police said was a friend of Bahrun Naim, one of the hundreds of Indonesians with IS in Syria and who has been linked to other plots in Indonesia. Both attacks occurred during the holy month of Ramadan but attracted little notice at a time when a wave of militant violence in several countries, including the US, Turkey and Bangladesh, killed about 350 people. “The IS threat has increased across the region but from a relatively low base,”said Sidney Jones, director of the Institute for Policy Analysis of Conflict. “We are seeing more connections. The likelihood of communications across national boundaries is higher,” she said. “We need to be open to the possibility that both the method and the professionalism of attacks could increase.” So far, the success for IS in Southeast Asia has been the power of its slick propaganda and online savvy to recruit predominantly young followers much more quickly than the face-to-face contact that older militant groups relied on. A professionally produced IS news site, alfatihin.com, using the Malay language understood throughout Malaysia and Indonesia began publishing in May in an apparent attempt to broaden

the group’s reach. The power of the group to inspire lone-wolf style attacks, such as Orlando or San Bernadino, where the perpetrators have no known connections to other radicals is also a potential threat for the region. “Radical movements are benefiting from information technology,” said Brig. Gen. Hamidin, director of prevention at Indonesia’s counterterrorism agency. Traditional recruitment through indoctrination at Islamic study groups that can be easily detected and monitored by authorities has been replaced by instant messaging and social media, said Hamidin, who goes by one name. “This is the problem we are currently facing.” IS has also attracted the support of long-established networks of fighters. Abu Sayyaf, a group in the southern Philippines that professes radical Islamic ideology, but which is better known for banditry and kidnappings, has declared allegiance to the IS. So, too, have the militants who follow Santoso, Indonesia’s most wanted radical, who is under siege from government forces in his jungle hideout on Sulawesi. But the attacks IS has inspired in Southeast Asia have had less impact because of the inexperience of the recruits combined with the vigilance of security forces in Malaysia and Indonesia. Plus, many of the hardened Indonesian militants who were part of the al-Qaeda linked Jemaah Islamiyah network behind the 2002 Bali bombings and other attacks are in prison or opposed to IS ideology and tactics. Even the January 14 suicide bombing and gun attack by IS followers in the Indonesian capital Jakarta that killed eight people, including the four attackers, was regarded as amateur by experts and in militant circles. The June grenade attack near Kuala Lumpur was an example of the low level of IS capability in Malaysia but also a sign it is training to make a bigger impact in the future, said Badrul Hisham Ismail, an analyst with Iman Research, a Malaysian group that studies religion and society. “The threat level has risen because IS has shifted focus to build an Islamic state in this region,” he said. IS recruitment has become more aggressive and some Malaysian militants have joined Abu Sayyaf in the southern Philippines, Badrul Hisham said. AP

revised when more information is available. The services industry— which includes sectors such as retail trade, transportation and storage, and finance—expanded an annualized 0.5 percent in the second quarter, compared with a 4.8-percent contraction in the previous three months. Growth in manufacturing weakened to

0.3 percent from 18.4 percent. “Within the retail trade sector, growth was supported by strong motor vehicle sales,” MTI said in a statement. Manufacturing was supported by growth in biomedical and electronics output, it said. Compared with a year earlier, the economy expanded 2.2 percent in the second quarter, in

line with the median estimate of 17 economists surveyed by Bloomberg. The Monetary Authority of Singapore (MAS)—which uses the exchange rate as its main tool—eased its policy stance in April by announcing it won’t seek currency appreciation. The central bank may make a further adjustment in

October, according to Australia & New Zealand Banking Group Ltd. “There is still a risk of MAS easing,” said Khoon Goh, head of Asia research at ANZ in Singapore. That may entail the central bank recentering the undisclosed band within which it allows the Singapore dollar to fluctuate, he said. Bloomberg News

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A6 Friday, July 15, 2016 • news@businessmirror.com.ph

May draws line under Ca

s Theresa May left Buckingham Palace as United Kingdom’s new prime minister, her most-watched act will be naming a Brexit Czar.

Staff clap as new Prime Minister Theresa May, followed by her husband Philip John, arrives at 10 Downing Street in London after meeting Queen Elizabeth II and accepting her invitation to become prime minister and form a new government on Wednesday. Stefan Rousseau/PA Wire/Abaca Press/TNS

Extricating the UK from the European Union (EU) will require finesse and force, and whoever gets the job will need to be unswervingly loyal to the new leader and also have been a backer of the Leave campaign. The formation of a new Brexit department with a secretary of state at its helm will be one of May’s first announcements, her office said late on Tuesday. “It will require somebody who has an ability to hold lots of information, who can be on point, somebody who’s got a quick mind, an iron will, a certain charm when they’re negotiating,” Ruth Davidson, leader of the Scottish Conservatives, told reporters in Westminster. “And somebody who enjoys the full, utter and complete trust of the next prime minister.” Finding the right person to manage Britain’s difficult divorce from the 28-nation bloc while calming volatile markets and a still-stunned electorate is 59-year-old May’s most important task. The decision to call the EU referendum cost her predecessor, David Cameron, his job.

Brexiteers only

The appointment of a Brexit chief narrows the pool of candidates left for chancellor of the exchequer, Britain’s finance chief. While bookmakers’ favorite for that job is Foreign Secretary Philip Hammond— who made a speech to bankers last night—The Times of London reported on Wednesday that Energy Secretary Amber Rudd was the most likely choice. May had promised that whoever she picks for the Brexit post will have been a bona fide supporter of

The percentage of pound’s fall in the past three weeks

leaving, which rules out candidates, such as Business Secretary Sajid Javid and the current chancellor, George Osborne. One of the hardest parts of the job will be selling whatever deal is reached to those within the Conservative Party who, unlike May, campaigned for the UK to leave. May announced her team to negotiate Britain’s withdrawal from the European Union and promised to build a more socially just country as she became the UK’s new prime minister. May took over from Cameron less than three weeks after Britons voted to leave the EU. She promised a “bold new positive role” for Britain abroad and less “burning injustice” at home, drawing lessons from last month’s bitter referendum and making a pitch for the center-ground of politics where UK elections are traditionally won. Among her first actions, May fired Osborne, the chief strategist of Cameron’s administration and the architect of his flagship austerity policies, as finance minister. She replaced him with Philip Hammond, the former foreign secretary. Prominent conservatives who campaigned to get Britain out of the EU were given the task of seeing the

New British Prime Minister Theresa May and her husband Philip May smile as they stand on the steps of 10 Downing Street in London on Wednesday. David Cameron stepped down after six years as prime minister. AP/Kirsty Wigglesworth

Meet the new UK ministers: Brexit campaigners

rime Minister Theresa May handed responsibility for extricating Britain from the European Union (EU) to those who campaigned to leave, appointing Boris Johnson as foreign secretary and David Davis as Brexit chief. Philip Hammond replaces George Osborne as chancellor of the exchequer, tasked with making Britain “a country that works not for a privileged few but for every one of us.” These are the people who got the top jobs:

gas. He has experience of negotiating with EU counterparts from his time in the foreign office and will need to work closely with Brexit czar Davis. Like May, he’s viewed as a Euroskeptic who ultimately decided to campaign for “Remain” in the referendum. Before the 2010 election, he had been due to become chief secretary to the Treasury, the No. 2 job in the department, but that was scotched when the Conservatives failed to win an outright majority.

Chancellor of the Exchequer: Philip Hammond

Foreign Secretary: Boris Johnson

Hammond, 60, served in David Cameron’s Cabinet since the Conservatives returned to power in 2010, first as transport secretary, then in charge of defense, and for the past two years as foreign secretary. In a speech this week to bankers, he said he’d fight to maintain access to the single market and said he’d work with the City to get the best deal. In the mold of Alistair Darling in the previous Labour administration, he has a reputation for being reassuringly dull and is known sarcastically by broadcasters as “box office Phil,” because his interviews rarely yield stories. Hammond has a background in business, working in property, construction and oil and

Most famous for his appearances on a comedy TV show before becoming London mayor in 2008, Johnson’s popularity with rank-andfile Conservatives is cemented every year with his performances as the star turn at the party’s annual conference. Johnson, 52, more than anyone shaped British cynicism toward the EU during the 1990s through his work as a reporter in Brussels for the Daily Telegraph newspaper. Writing stories about bureaucracy and petty regulations, some of which he cheerfully admitted stretched credibility. He returned to the House of Commons last year as he neared the end of eight years as mayor and was a leading cheerleader for Brexit during the referendum campaign. He dramatically withdrew from the race to be

prime minister after losing the backing of his fellow chief Brexiter, Michael Gove. As a child he wanted to be “World King,” but his forays into international relations have not always been successful. Despite having Turkish heritage, he stoked fears of Turkey joining the EU during the referendum campaign and said the EU’s attempt to unite Europe was following in the footsteps of Adolf Hitler.

Brexit Secretary: David Davis

A Euroskeptic who’s been away from frontline politics since 2008, Davis has served as a minister of state for Europe and Conservative Party chairman. In an article for the Conservative Home web site this week, Davis said, “Brexit gives us many tools to deal with the very serious economic challenges that the country will face in the coming decades.” He said Brexit will “deliver the circumstances that allow us to pursue an unfettered high growth strategy.” Once seen as a future leader, he lost out to David Cameron in the race for the top job in 2005. He’s represented the Conservatives in opposition for home affairs, covering issues such as national security, prisons and immigration. In 2008 he unexpectedly resigned as a lawmaker in order to force a special election over what he said was an erosion of civil liberties.

He won that election but has remained away from the spotlight ever since.

Home Secretary: Amber Rudd

Rudd, 52, was Cameron’s Energy and Climate Change Secretary and came to national prominence during the referendum campaign when, as representative of the “Remain” camp in a TV debate, she made a forceful attack on Johnson in which she claimed he was only campaigning to leave because he wanted to be premier. “He is the life and soul of the party,” she said. “But he is not the man you want driving you home at the end of the evening.” They will now be Cabinet colleagues.As energy secretary she represented Britain at climate change talks, gaining experience of international horse-trading that will prepare her for negotiations she will have on immigration. Before becoming a lawmaker, she worked in investment banking for JPMorgan and then in venture capital. She’s also been an aide to former Chancellor George Osborne. Her life before politics also included spells running a head-hunting firm and as a financial journalist. She also worked in the crew as “aristocracy coordinator” for the 1994 British hit movie Four Weddings and a Funeral, starring Hugh Grant. Her brother, Roland Rudd, is cofounder of public-relations firm Finsbury. Bloomberg News

Johnson an undip

oris Johnson, who led the successful campaign to get Britain out of the European Union (EU), was appointed foreign secretary by new Prime Minister Theresa May, two weeks after she mocked his negotiating skills. Johnson, who’s left a trail of gaffes when talking about foreign affairs, is a surprise choice as Britain’s chief diplomat. Earlier this year he accused US President Barack Obama of disliking Britain’s imperial legacy because of his “part-Kenyan” ancestry. During the referendum campaign, he compared the EU to one of Adolf Hitler’s projects. But he’ll be taking control of a ministry with diminished powers: May has appointed a separate minister to take charge of negotiating the Brexit, and created a new department for international trade. “If you’re thinking about giving someone a job they can burn up in and yet not do any damage to the government’s electoral fortunes, that’s the one,” Tim Bale, professor of politics at Queen Mary, University of London, said in a telephone interview. “His role will now be glorified trade promotion and PR.” It is the first job in government for Johnson, who finished his second term as London mayor earlier this year. After David Cameron quit as prime minister, Johnson’s campaign to succeed him ended on the same day as it began when he lost the backing of his principal supporter, Michael Gove.

Johnson Bloomberg News

“We have a massive opp to make a great success o with Europe and the world, after his appointment. “I’m play a part in that.” For Johnson, who was fence-mending may have He once compared Hillary Party’s presumptive candid sadistic nurse in a mental h “everything I came into pol An editorial when John the Spectator magazine George W Bush as a “cros

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Friday, July 15, 2016 A7

ameron era

David Cameron leaves 10 Downing Street in London with wife Samantha and children Nancy, 12; Elwyn 10; and Florence, 5; for Buckingham Palace for an audience with Queen Elizabeth II to formally resign as prime minister on Wednesday. Stefan Rousseau/PA Wire/Zuma Press/TNS

Britain’s Prime Minister David Cameron waves as he rides his car and leaves 10 Downing Street in London on Wednesday. Cameron later formally resigned during a meeting with Queen Elizabeth II at Buckingham Palace, then Theresa May, the home secretary, took over. AP/Frank Augstein

David Cameron speaks on Downing Street, in front of his family and the press, before Theresa May replaces him as prime minister on Wednesday. David Mirzoeff/i-Images/Zuma Press/TNS

job through, starting with former London Mayor Boris Johnson, who was named foreign secretary, in the day’s most surprising move. Working with Johnson will be David Davis, who was assigned the task of overseeing Brexit negotiations, and Liam Fox, who will have to negotiate new trade deals. “The domestic-facing portfolios are Remain and the outward facing ones are Leave,” Steven Fielding, a professor of political history at the University of Nottingham, said by phone. “If the Brexit negotiations don’t go as people would like, then it’s the Leave people who’ll take the blame.”

Recession predicted

Britain’s second woman prime minister after Margaret Thatcher, May swept to power in the wake of last month’s referendum. Cameron

quit after the failure of his Remain campaign, and May’s rivals for the top job proceeded to knife each other or drop out, leaving her as the sole candidate. She must now manage Britain’s exit from EU, and possibly a recession, too. The looming Brexit has sent a chill through markets and the global business community. The pound has fallen 11 percent in the past three weeks, consumer sentiment has plunged the most since 1994 and companies from Vodafone Group Plc. to JPMorgan Chase and Co. say they are considering moving jobs abroad. Within hours of taking office, May spoke with some of the EU leaders who’ll be her most important interlocutors in the coming months. German Chancellor Angela Merkel called to wish her luck, while French President François Hollande reminded

the new prime minister that he wants to see Brexit happen quickly. At the other end of the line, May “emphasized her commitment to delivering the will of the British people to leave the European Union,” her office said. “The Prime Minister explained that we would need some time to prepare for these negotiations and spoke of her hope that these could be conducted in a constructive and positive spirit.” In a sign of how Brexit will dominate the government’s priorities, the Foreign Office will be overseen by Johnson, the most prominent of the so-called Brexiteers, while Davis and Fox will both head new departments that will play key roles.

Dipped in blood

“It doesn’t get her out of the responsibility for whatever happens with Brexit, but she’s at least dipped their

hands in the blood,” said Tim Bale, professor of politics at Queen Mary, University of London. “Whatever deal she gets is a deal they’ll be associated with.” Davis, a former minister of state for Europe in the 1990s, will now be “secretary of state for exiting the European Union.” He will help May in deciding when to start the two-year process of withdrawal, and how to reconcile her desire to retain access to the EU’s single market with public pressure to curb immigration. Fox, another prominent Euroskeptic, will be secretary of state for international trade. According to a person familiar with May’s appointments, Osborne was told he was no longer wanted. He had angered many Conservative lawmakers with the extent of his campaigning against Brexit.

May doesn’t have to go to the polls until 2020, though she could opt to do so earlier, with the opposition Labour Party paralyzed by an internal fight between leader Jeremy Corbyn and his lawmakers. As she addressed the country from Downing Street, the main focus of her speech wasn’t Brexit or the economy—at least, not directly. Instead, she addressed Britons who feel their lives have been made insecure by globalization, and who are increasingly angry with the political class—a group that encompasses many from the Leave-voting majority.

Life is harder

“If you’re from an ordinary workingclass family, life is much harder than many people in Westminster realize,” May said. “You have a job, but you don’t always have job security.

You have your own home but you worry about paying the mortgage. If you are one of those families, if you’re just managing, I want to address you directly. I know you are working around the clock, I know you’re doing your best and I know that sometimes life can be a struggle.” The daughter of a clergyman, she’s able to talk about privilege in a way that Cameron, a stockbroker’s son and Old Etonian, never could. “When it comes to taxes, we will prioritize not the wealthy, but you,” May said, again signaling a departure from Cameron’s government, which cut taxes on inheritance. “We won’t entrench the advantages of the fortunate few. We will do everything we can to help anybody, whatever your background, to go as far as your talents will take you.” Bloomberg News

plomatic pick as top diplomat The world according to Boris

portunity in this country of our new relationship ,” Johnson told Sky News m excited to be asked to

s born in New York, the to start in Washington. Clinton, the Democratic date for president, to “a hospital” and said she is litics to oppose.” nson was in charge of e described President ss-eyed Texan warmon-

ger” who “epitomises the arrogance of American foreign policy.” The US is “always going to be able to work with the British no matter who is occupying the role of foreign secretary,” State Department Spokesman Mark Toner told reporters in Washington. The relationship between the US and the UK “goes beyond personalities,” he said. “We look forward to engaging with Boris Johnson.” Johnson also has bridges to build beyond the US and EU. He referred to Africans as “picaninnies” with “watermelon smiles” in a newspaper column in 2002, apologizing six years later. He’s also compared Russian President Vladimir Putin to “Dobby the house elf” in the Harry Potter films and called him “a ruthless and manipulative tyrant.”

‘Likely rival’

When she launched her own Tory leadership campaign, May made fun of Johnson’s negotiations with Germany when he was a mayor. “I seem to remember the last time he did a deal with the Germans, he came back with three nearly new water cannons,” she said. May, as home secretary, refused to let him use them. Johnson was most famous for his appearances on a comedy TV show before becoming London mayor in 2008, and his popularity with rank-and-file Conservatives is cemented every year with his performances as the star turn at the

party’s annual conference. His support among Tory Party members—he was favorite to be prime minister before Gove torpedoed his bid for the party leadership—meant May had to give him a job. It was in her interests to do so anyway, said Steven Fielding, professor of politics at the University of Nottingham. If Johnson remained outside government, “people could point and say it’d be better under him,” Fielding said. “She’s protected herself from a likely rival. He’s implicated and neutralized at the same time.”

‘Trump with thesaurus’

Johnson, more than anyone, shaped British cynicism toward the EU during the 1990s through his work as a reporter in Brussels for the Daily Telegraph newspaper, writing stories about bureaucracy and petty regulations—some of which he cheerfully admitted were untrue. Sacked from the Times newspaper as a cub reporter for making up a quote, and fired as a Conservative spokesman for lying over an extramarital affair in 2004, Johnson has a colorful past, which might have fatally damaged other politicians. But his use of humor and Latin quotations to get out of sticky situations has endeared him to voters. During the referendum campaign, former Deputy Prime Minister Nick Clegg described him as “Donald Trump with a thesaurus.” Bloomberg News

ritish Prime Minister Theresa May appointed as her Foreign Secretary Boris Johnson, a man renowned for the occasional slip of the tongue, or as the Latinloving Etonian might say, lapsus linguae. Under him, the chances of a diplomatic incident are high. The former mayor of London, Johnson has aired his views on a vast array of topics from his sexual exploits— “I’ve slept with far fewer than 1,000”—to his support of David Cameron—“purely out of self-interest.” We plucked his greatest misfires on foreign policy to give a flavor of what is to come. n On Vladimir Putin: Johnson compared the Russian president to a character straight out of the Harry Potter books, in a 2015 column for The Telegraph newspaper about working with Russia to remove Syrian President Bashar al-Assad. “Despite looking a bit like Dobby the house elf, he is a ruthless and manipulative tyrant.” n On Hillary Clinton: Writing in the Daily Telegraph in 2007, Johnson questioned whether he could back her candidacy. Clinton, who today is the presumptive Democratic presidential nominee, was at the time seen as a favorite to win the 2008 US presidential election. “She’s got dyed blonde hair and pouty lips, and a steely blue stare, like a sadistic nurse in a mental hospital; and as I snap out

of my trance I slap my forehead in astonishment. How can I possibly want Hillary? I mean, she represents, on the face of it, everything I came into politics to oppose: not just a general desire to raise taxes and nationalize things, but an all-round purselipped political correctness.” n On Turkey’s Erdogan: In May Johnson won a €1000 ($1,310) prize for writing a sexually explicit limerick about Recep Tayyip Erdogan. He wrote it after Erdogan tried to prosecute a German comedian for a skit about the Turkish premier. n On Barack Obama: At the height of his campaign to quit the European Union, Johnson penned an article for the Sun newspaper ahead of President Barack Obama’s visit to the UK. He chose to take a swipe at the US leader, who had urged British voters to vote to stay in the bloc. In the course of the piece, Johnson asked why a bust of Winston Churchill had been moved from the Oval Office. He speculated that it might have had something to do with his roots: “Some said it was a snub to Britain. Some said it was a symbol of the partKenyan president’s ancestral dislike of the British empire—of which Churchill had been such a fervent defender.” In response, Obama said that, as the first African-American president, he thought it

appropriate to put a bust of Martin Luther King Jr. in the Oval Office and that Churchill, whom he loves, was moved into the Treaty Room, where he “sees it every day.” n On terrorism: Four days after a deadly 2005 suicide bombing at the HaSharon Mall in Netanya, Israel, Johnson shared his thoughts about the Koran and “the problem of Islamic terror” in a column for The Spectator magazine: “To any non-Muslim reader of the Koran, Islamophobia—fear of Islam—seems a natural reaction, and, indeed, exactly what that text is intended to provoke. Judged purely on its scripture—to say nothing of what is preached in the mosques—it is the most viciously sectarian of all religions in its heartlessness toward unbelievers.” n On the EU: Johnson addressed the Centre for Policy Studies in London as part of its 2013 annual Margaret Thatcher Lecture. In a speech titled “What Would Maggie do Today?” Johnson explained economic inequality was useful because it encouraged people to work harder. In building his case, Johnson spoke candidly about his feelings on the EU “First, they make us pay in our taxes for Greek olive groves, many of which probably don’t exist. Then they say we can’t dip our bread in olive oil in restaurants. Bloomberg News

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Friday, July 15, 2016

Australian PM under pressure to revise agenda

ANBERRA, Australia—Australia’s prime minister came under pressure from his own lawmakers on Thursday to revise his economic agenda after his weakened coalition scraped through one of the nation’s closest ever elections. Prime Minister Malcolm Turnbull’s center-right Liberal Party lost at least 14 lawmakers, including some of Turnbull’s key moderate supporters, in knife-edge polls on July 2, which left the coalition with a majority of only one or two seats in the House of Representatives were parties form government. Some mail-in votes are still being counted. Some government lawmakers blame the surprise swing against the government, partly on plans to increase taxes on the pension funds of wealthy Australians. Such public criticism of official policy from government lawmakers is rare and proof that the election victory has not healed deep rifts in the administration’s ranks. Liberal Party Senator Eric Abetz, who was demoted from cabinet when Turnbull became prime minister less than a year ago, said Turnbull must consider changing the pension-fund tax plans and other policies when government lawmakers meet on Monday. “When you’ve just had such a big kick up the pants as we’ve just had as a coalition...I think it is worthwhile to ask the question: Why did we hemorrhage...so many votes ...is there a lesson to be learnt and would the Australian people actually want us to recalibrate some of those policies?” Abetz told Australian Broadcasting Corp. Turnbull said his narrow election win gave his government a mandate to implement all the policies he had campaigned on. “We took a very clear set of policies to the election, we campaigned on it very clearly and that’s what we’ll be presenting” to the Parliament, Turnbull said on Wednesday. But Abetz questioned that mandate. “A lot of our colleagues see the election result as the barest of victories, if we can call it a victory,” Abetz said. “Having just fallen over the line, I think it might be wise for the leadership team to listen to some of us backbenchers.” Chris Back, another Liberal Party senator, agreed that aspects of the pension fund tax policy “seemed to be unfair” and changes should be debated within government ranks next week. Turnbull, a moderate in the government, replaced the polarizing and socially conservative Prime Minister Tony Abbott in an internal government showdown last September. Turnbull immediately fired some of Abbott’s more rightwing ministers, including Abetz. Turnbull is under internal pressure to promote Abbott to his new Cabinet to be announced next week. AP

briefs

Vietnam protests China’s activities in South China Sea HANOI, Vietnam—Vietnam has protested China’s recent activities in the disputed South China Sea saying they seriously violate Vietnamese sovereignty. Chinese state media reported that two Chinese civilian aircraft on Wednesday landed successfully on two newly built airstrips on Mischief and Subi reefs and that China has completed four lighthouses and is launching the fifth on reefs in the region. Vietnam Foreign Ministry Spokesman Le Hai Binh told reporters that those actions have seriously violated Vietnam’s sovereignty and are unlawful. AP

Austrian court sentences 2 Islamists to prison terms

VIENNA—An Austrian court has found a Serbian-born Islamic preacher guilty of recruiting men to fight for the extremist Islamic State (IS) group and related crimes and sentenced him to 20 years in prison. The verdict and sentence were pronounced shortly before midnight on Wednesday in the southern city of Graz. A second man was convicted of belonging to a terrorist organization on grounds of his membership in IS and sentenced to a 10year prison term. The 35-year-old preacher was identified only as Mirsad O. and his alias of Abu Tejma in accordance with Austrian privacy laws. AP

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Iran unhappy with econ windfall

ASHINGTON—One year after major world powers reached a historic nuclear deal with Iran, that country has largely kept up its end of the bargain, but Tehran has complained it has not experienced the financial boost it hoped to receive.

After years of negotiations, Iran accepted restrictions on and monitoring of its nuclear program— which the world feared was an attempt to make a bomb, despite Iranian assertions to the contrary— in exchange for the lifting of crippling sanctions. Iran moved swiftly to dismantle its nuclear program after the deal was signed on July 14, 2015, to speed sanctions relief, which would not come until the International Atomic Energy Agency (IAEA) certified Tehran had fully complied with the requirements. Those also included reducing its stockpile of enriched uranium from 12,000 kilograms to 300 kg, filling the core of its Arak heavy-water reactor with cement, removing nuclear material from its Fordow facility and dismantling two-thirds of its 19,000 centrifuges from Natanz. Opponents of the landmark deal—reached between Tehran and the United States, China, France, Germany, Russia and the United Kingdom—asserted that Iran was sure to cheat given its past illicit nuclear activity. But IAEA monitors have found the country so far has complied, including shipping the bulk of its enriched uranium to Russia. Kelsey Davenport, director for nonproliferation policy at the Arms Control Association, which supported the deal, said that given the technical complexity of what was required, it is a major accomplishment that Iran has stuck to its obligations.

$17.6B The amount of the deal Boeing made with Iran Air to sell 80 passenger jets

“The most significant element of the Iran deal to date, in my opinion, is how smoothly the agreement has been implemented,” Davenport said. “Since implementation day in January, Iran has adhered to all of the restrictions under the agreement, sanctions have been lifted, and while Iran isn’t seeing economic windfall it originally anticipated, businesses are demonstrating interest in going back into Iran.” That windfall, estimated in the tens of billions of dollars, has been slow to come because although nuclear-related sanctions have been lifted under the deal, the majority of the US financial punishments remain in place. Washington also sanctions Tehran for human rights violations, ballistic missile activity and continued support for terrorism. The airline sector is one of the few US industries that opened to Iran following the agreement, with Boeing announcing in June a $17.6-billion deal to sell 80 passenger jets to Iran Air. Congress moved to block the sale last week on the grounds the

Supreme Leader Ayatollah Ali Khamenei attends a meeting with Iranian officials in Tehran, Iran, on June 14. Iran’s top leader says that if the next US president tears up the nuclear deal, Iran will “light it on fire.” Khamenei’s remarks on Tuesday appeared to be aimed at presumptive Republican nominee Donald Trump, who has criticized the deal and vowed to renegotiate it. Office of the Iranian Supreme Leader via AP

aircraft could be used by Iranian armed forces, and lawmakers have threatened to stop a deal by the French company Airbus to sell Iran planes because they contain American parts. But President Barack Obama threatened to veto the bill to block the Boeing sale. Sanctions prohibit Iran from using US dollars, and many international banks remain wary of doing business there for fear of running afoul of other sanctions that could restrict their access to the more lucrative American market. There is also a risk that the country could still violate the deal, triggering a snapback of economic sanctions that would force businesses out of the country. Secretary of State John F. Kerry has worked to address such concerns among the deal’s European signatories. Those countries are eager to see their businesses have access the Iranian market. Iranian Ayatollah Ali Khamenei accused the US of creating “Iranophobia” to scare off international businesses.

But Mark Dubowitz, who opposed the deal and is executive director of the Foundation for Defense of Democracies, said that Iranian dissatisfaction with the pace of economic recovery doesn’t violate the agreement. He said that when the deal was being negotiated, Iranians asked for tangible guarantees that foreign financial institutions would reenter the Iranian market and GDP would increase. “The administration said ‘absolutely not. We’re not guaranteeing you economic outcomes. What we are guaranteeing you is that we will lift or suspend hundreds of US sanctions and European sanctions,’” Dubowitz said. “So now for Iran to come back and effectively say to the administration, ‘We’re just not happy with the economic relief that we got. We want you to guarantee economic outcomes,’ is for Iran to return back to the position of continuing to negotiate points that were supposedly well settled.” The deal has also provided more subtle diplomatic benefits for the US in a volatile Middle East,

analysts note. While the US and Iran still do not have formal diplomatic relations, Kerry and Iranian Foreign Minister Javad Zarif developed a close working relationship during the negotiations and remain in regular contact. In January, when a Navy vessel carrying US sailors errantly wandered into Iranian waters and the crew was taken into custody, Kerry’s personal call to Zarif secured the sailors’ release, defusing an encounter that previously could have become an international incident. Some also credit the personal rapport with securing the release of several Americans held in Iran, including Christian pastor Saeed Abedini of Idaho and Washington Post reporter Jason Rezaian. Despite this unofficial diplomatic thaw, opponents of the nuclear deal say Iran’s continued ballistic missile activity and support for Hezbollah and Syrian President Bashar Assad are evidence Tehran does not intend to become more moderate in the wake of the international agreement, even if it does stick to the nuclear provisions. And with only six months left of the Obama administration, the deal’s continued success largely depends upon the attention it receives from the next president, Davenport said. Republican presidential candidate Donald Trump has said he would renegotiate the deal, while Democratic candidate Hillary Clinton, who was involved with the initial nuclear diplomacy with Iran while secretary of state, would keep it in place. Iran may also change leadership, with moderate President Hassan Rouhani up for reelection next year. “The next [US] president will need to ensure that the Iran deal remains a priority,” Davenport said. “We certainly wouldn’t want to end up in position where over time Iran moves into a grey zone, violating elements of the deal slightly here and there, and then has moved in position where it could be moved to pursue nuclear weapons in the future.” TNS

Congress passes aviation bill to close airport security gaps

ASHINGTON—Congress passed an aviation bill on Wednesday that attempts to close gaps in airport security and shorten screening lines, but leaves thornier issues unresolved. The bill also extends the Federal Aviation Administration’s (FAA) programs for 14 months at current funding levels. It was approved in the Senate by a vote of 89 to 4. The House had passed the measure earlier in the week and it now goes to President Barack Obama, who must sign the bill by Friday when the FAA’s current operating authority expires to avoid a partial agency shutdown. Responding to attacks by violent extremists associated with the Islamic State (IS) group on airports in Brussels and Istanbul, the bill includes an array of provisions aimed at protecting “soft targets” outside security perimeters. Other provisions designed to address potential “insider threats” would toughen vetting of airport workers and other employees with access to secure areas, expand random employee inspections and require reviews of perimeter security. Investigators suspect a bomb had been smuggled aboard a Russian Metrojet airliner that disintegrated over Egypt last year. The measure is the most significant airport security bill to pass Congress in a decade, and its provisions “speak directly to some of the gaps that we perceive to exist in our aviation system in this country,” said Sen. John Thune, Republican-San Diego, chairman of the Senate Commerce, Science and Transportation Committee. But it also is notable for what it doesn’t contain: A plan to re-

Passengers push their carry-on belongings onto an automated conveyer belt at a newly designed passenger screening lane unveiled at HartsfieldJackson Atlanta International Airport in Atlanta. AP/David Goldman

move air-traffic control operations from the FAA and put them under the control of a private, nonprofit corporation run primarily by segments of the aviation industry. Rep. Bill Shuster, RepublicanPennsylvania, chairman of the House Transportation and Infrastructure Committee, and the airline industry had made privatizing air traffic control a top priority. But they ran into opposition from other powerful committee chairmen who don’t want to cede oversight responsibility for a large share of the nation’s aviation system to a private corporation. Other segments of the aviation industry also

objected to the plan, saying they feared the corporation would be dominated by airline interests. Airlines say privatization is needed because the FAA’s culture is too slow and inflexible to complete the air-traffic system’s transition from old radar technology to satellites. The modernization has dragged on for more than a decade and fallen short of promised financial benefits and reduced congestion. Shuster hasn’t given up on the plan and may revive it next year when Congress will face a new deadline to extend FAA’s authority. The bill authorizes a doubling of Transportation Security Adminis-

tration (TSA) teams that stop and search suspicious passengers in airport public areas that are outside the security perimeter, often using bomb-sniffing dogs. A “dog’s nose” is one of the “most effective tools” the government can deploy to secure airports, said Sen. Bill Nelson, Democrat-Florida. It also authorizes TSA to donate unneeded security equipment to foreign airports with direct flights to the United States, and directs TSA to reconfigure security systems at three to six airports, an initial step to increase efficiency and reduce vulnerabilities in terminals. The bill also seeks to expand en-

rollment in TSA’s PreCheck program for low-risk travelers, and requires TSA to ensure PreCheck screening lanes are open during high-volume travel times. And it authorizes a trial program to develop and test more efficient passenger and luggage screening systems. The bill also includes several consumer protections. Airlines would have to refund checked bag fees to passengers whose luggage is lost or is delayed 12 hours or more, for domestic flights, or 15 hours or more, for overseas flights. They’ll have to ensure that children 13 years of age or younger are seated next to an adult or older child traveling with them. At the behest of Southwest Airlines, lawmakers allowed discretion to exempt airlines, such as those that don’t offer assigned seating but do provide adjacent seating for families through other means. The bill would test programs to handle the hazards of drone flights near airports and other critical infrastructure and to research traffic management for drone flights similar to what the FAA does for manned aircraft. One provision would require drone manufacturers to inform consumers of rules and safety guidelines for their use, while another would begin interagency discussions to let drones assist in firefighting operations. Another provision would impose a $20,000 fine for anyone who “knowingly or recklessly” flies a drone near emergency responders. Authorities recorded 20 incidents in which drones flew too close to wildfires last year, with more than half hindering firefighting efforts. It has happened again at least nine times, so far, this year. AP

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Editor: Lyn Resurreccion • Friday, July 15, 2016

Baby is first in Texas born with defect related to Zika virus, officials say

ALLAS—A baby has been born with a Zikarelated birth defect, officials in Harris County said on Wednesday. The baby’s mother was infected with the Zika virus in Latin America and passed the virus to the baby in the womb. The child is the first in Texas to be born with a birth defect linked to Zika. Zika is the first mosquito-spread virus known to cause birth defects. The baby in Harris County has microcephaly, a condition characterized by an abnormally small brain and skull. Some babies with the birth defect have a normal IQ and go on to live normal lives. Others are severely disabled and can suffer learning difficulties and seizures. The largest outbreak of Zika virus began last spring and has spread to more than 50 countries in Latin America and the Caribbean. More than a million people have been infected in Brazil alone. In April the Centers for Disease Control and Prevention (CDC) announced that Zika causes birth defects when pregnant women are infected. Besides microcephaly, Zika has been linked to eye problems, joint disorders and seizures in babies. Infection during the first trimester of pregnancy could be more dangerous than later stages, some experts say. As of July 13 59 people have tested positive for Zika in Texas, according to the Department of State Health Services; three are pregnant women. All were

A vacuum tube holds a blood-fed strain of Aedes aegypti mosquito in place under a microscope in a research lab insectary in the Hanson Biomedical Sciences Building at the university in Madison, Wisconsin. Researchers at the University of Wisconsin-Madison have infected pregnant monkeys with the Zika virus to learn how it harms developing fetuses. Jeff Miller/UW-Madison via AP

Trump seeks $10 million in damages from ex-aide

ASHINGTON—In a highly unusual campaign dispute, Donald Trump is seeking $10 million in damages from his former political consultant Sam Nunberg, arguing Nunberg violated the nondisclosure agreement nearly every Trump employee is required to sign. Trump alleges Nunberg leaked confidential information to reporters. Nunberg, in a court filing obtained by The Associated Press (AP), contends Trump is trying to silence him “in a misguided attempt to cover up media coverage of an apparent affair” between two senior campaign staffers. Trump’s decision to take legal action against a fired staffer in the midst of a presidential race is part of the businessman’s pattern of aggressively protecting the secrecy of his campaign, companies and family. The AP reported last month that nearly every Trump employee— both in the campaign and his businesses—must sign legally binding nondisclosure agreements prohibiting them from releasing any confidential or disparaging information about the real estate mogul, his family or his companies. Nunberg’s filing comes at a crucial political moment for Trump. He’s on the verge of picking his running mate and is preparing for next week’s Republican convention, one of his highest profile opportunities to reach voters and ease the concerns of GOP leaders who are concerned about his unconventional candidacy. In the court filings, Nunberg denied disparaging Trump and accused the presumptive GOP nominee of attempting to “bully” him into silence after Nunberg decided to publicly support Texas Sen. Ted Cruz’s presidential bid. “Mr. Trump’s actions in starting a $10-million arbitration, seeking to silence Mr. Nunberg and have the proceedings sealed are a cautionary tale of what the American people face if Mr. Trump is elected president,” said Andrew Miltenberg, Nunberg’s attorney. Miltenberg said Trump’s attorney argued for the documents to be sealed in a hearing on Wednesday morning. Trump attorney Alan Garten repeatedly declined to refer to Nunberg by name, but described him as “a person who has a history of making untrue, outlandish and outrageous allegations.” Nunberg was a consultant to Trump’s presidential campaign but was fired in August because of racist posts he wrote on Facebook. Nunberg has been highly critical of Trump’s former campaign manager Corey Lewandowski, both professionally and personally. In a recent GQ Magazine interview, he said he would suck the “blood of out of [Lewandowski’s] skull by the time

I’m done with him.” In the court filings, Nunberg said Trump filed a $10-million arbitration claim against him and falsely accused him of being a source of a New York Post story from mid-May that recounted a public quarrel between Lewandowski and campaign spokeswoman Hope Hicks. Lewandowski was fired from the campaign in June after months of tension with other senior Trump advisers. Nunberg denied being the source of the article, but in court papers referred to the quarrel as being part of an “apparent affair.” Garten told the AP that Nunberg’s allegations about Hicks and Lewandowski are “categorically untrue.” Reached by phone, Lewandowski said he was “not familiar with the court case” and would not comment on Nunberg’s allegations. Hicks did not respond to detailed requests to respond to the allegations sent via email and text, as well as a voicemail. Lewandowski helped Trump upset 16 primary rivals, a stunning feat for the political novice and a campaign manager with little presidential campaign experience. But Lewandowski clashed with other campaign staffers and was viewed by GOP leaders as unprepared to oversee a general election campaign. Since Lewandowski’s firing, Trump’s campaign has shown flashes of operating more professionally, with the candidate giving more prepared speeches in addition to his freewheeling rallies. Nunberg filed the court documents in an attempt to block private arbitration proceedings initiated by Trump in May. In addition to asserting a right to discuss the campaign on free speech grounds, Nunberg’s lawsuit also argued that the campaign’s arbitration claim was invalid because it was brought by an exploratory group Trump formed for his 2012 campaign, “which has nothing to do with the Trump Campaign’s activities in the 2016 presidential campaign cycle.” “The Trump Campaign was not in existence prior to or at the time of the agreement, and Mr. Nunberg did not agree or intend that it apply to any future entity such as the Trump Campaign,” Nunberg’s complaint said. Nunberg says in court papers that Trump improperly used the entity, “Trump 2012 PCA,” while the billionaire “toyed” with a presidential run in 2012. Nunberg also accuses the entity of conducting business illegally in the state of New York. In a separate affidavit, Nunberg’s mother, Rebecca Citron Nunberg, said the entity bringing the claim against her son is not registered in the state of New York, depriving it of its ability to pursue legal claims against him. AP

infected while traveling in Latin America except for one Dallas resident who became infected through unprotected sex. In Dallas County 14 people have been diagnosed with Zika. “It’s heartbreaking. This underscores the damage Zika can have on unborn babies,” said Dr. John Hellerstedt, Texas Department of State Health Services commissioner. Last month officials said that 10 pregnant women in Dallas County had “possible infection” with the virus. About 1 in 5 people infected with Zika suffers symptoms that are typically mild and include fever, rash and red eyes. The virus is spread through mosquito bites and sex. Although it stays in the blood for a relatively short time—less than a week—the virus has been found to persist in semen for weeks after a man has recovered from the infection. Women who live in or have traveled to an area with Zika are advised to wait eight weeks before attempting to get pregnant. Men who have had symptoms of Zika should wait six months before trying to start a family, according to the World Health Organization. The CDC is collecting information about pregnant women diagnosed with Zika and is tracking the health of their babies. Pregnant women who have traveled to areas with a Zika outbreak are advised to discuss testing with their health care provider. TNS

Japan’s Emperor Akihito said to seek abdication

apan’s Emperor Akihito, the first to serve from the outset in a purely ceremonial role, signaled his wish to step down in a matter of years, national broadcaster NHK reported. The emperor, 82, has reigned for 28 years, after succeeding his father, Hirohito, in 1989. He would be succeeded by his eldest son, Crown Prince Naruhito, who is 56. NHK on Wednesday cited unidentified people at the Imperial Household Agency and said the Crown Prince and other family members accepted Akihito’s wishes. The NHK report said Akihito has told palace officials that he doesn’t wish to cling to his title with drastically reduced responsibility or by arranging a substitute. Kyodo News agency carried a similar report quoting government officials. Later on Wednesday night, Kyodo said Imperial Household Agency official Shinichiro Yamamoto denied the report, adding that the emperor has avoided commenting because the postwar Constitution bans imperial involvement in politics. He said there has been no formal announcement. Akihito’s reign is called the Heisei era—whose name translates as “achieving peace”—in the Japanese calendar. While Japan also uses the Western calendar, years are traditionally counted from the start of the reign of each emperor. This year is Heisei 28. Serving in a strictly symbolic role as prescribed by the US-imposed Constitution, and the first to marry a commoner, Akihito has been credited with helping modernize Japan’s monarchy. His reign began as the nation was at the zenith of its economic power and just a year before its “bubble economy” burst, ushering in decades of economic stagnation.

Raising stature

“This would be huge because Akihito is enormously popular with the public; he is a voice of reconciliation and looks at dealing with the lingering grievances from World War II as his father’s unfinished business,” said Jeff Kingston, director of Asian studies at Temple University in Japan. “He has done more than all of Japan’s politicians put together in

The number of years Emperor Akihito has reigned

terms of raising Japan’s stature in the region—he is known as the people’s Emperor.” Kingston said it was likely the decision was driven by the Emperor’s advancing age and deteriorating health. Akihito underwent almost four hours of surgery for a successful heart bypass in 2012, and was hospitalized for pneumonia the previous year. The Crown Prince served as regent while his father was recovering. The Emperor also had prostate surgery in 2003.

Imperial traditions

While abdication is unheard of in modern Japanese history, Akihito has broken with other imperial traditions. He was the first emperor to marry a commoner, and Empress Michiko was the first who didn’t use a wet nurse for their three children. Akihito also surprised the nation in 2013 when he chose to be cremated upon his death, with his remains placed in a mausoleum smaller than those of his predecessors, with Michiko’s remains alongside—a plan that will break the imperial family’s burial custom that lasted for 400 years.

Busy schedule

Despite his age, the emperor has maintained a busy schedule and attended ceremonies, greeted foreign dignitaries and traveled overseas and around Japan, such as visiting towns to comfort residents following deadly earthquakes. Akihito has also attempted to soothe some of the wounds from World War II, traveling to China

Japan’s Emperor Akihito (right) and Crown Prince Naruhito walk at Haneda international airport in Tokyo. Japan’s public television said on Wednesday Akihito has expressed intention to retire while still alive. The NHK says the Emperor has conveyed his hopes to relinquish his title to Crown Prince Naruhito within the next few years. It was not known if there was any timeline for his intended retirement, or whether there was related to his recent health conditions. AP/Eugene Hoshiko

early in his reign and visiting major battlefields. He visited the western Pacific nation of Palau last year, and the Philippines, one of Asian victims of Japan’s wartime aggression, earlier this year. In visits across Asia and beyond, Akihito addressed the issue of the past aggression Japan’s military carried out in his father’s name. In 1990 he apologized for Japan’s colonization of Korea from 1910 to 1945. Two years later, during the first visit by a Japanese monarch to China, he acknowledged that Japan had “inflicted great suffering” on its neighbor in the first half of the century.

No rules on living succession

The Imperial law does not specify rules about a living succession, including what happens to his postretirement status. Kyodo quoted unidentified government sources that a succession while he is alive requires a revision to the law. The last succession from a living emperor was about 200 years ago. According to the traditional count, Akihito is 125th in a line of emperors that began with Jimmu in 660 B.C. Historical records suggest the throne dates to at least the fifth century, making it the oldest surviving hereditary monarchy.

‘Deep remorse’

Prior to Japan’s defeat, emperors, including Hirohito, had been traditionally regarded as living deities, directly descended from the sun goddess Amaterasu. The nation’s people were considered their subjects. In a speech last year to mark the 70th anniversary of the end

of World War II, Emperor Akihito expressed “deep remorse” over his country’s actions in the conflict. The remarks—his first such expression of regret since coming to the throne in 1989—contrasted with those of Prime Minister Shinzo Abe, who said in a statement at the time that Japan shouldn’t be expected to continually apologize. “It’s not an economic issue but the Emperor is very widely respected,” Robert Feldman, chief economist at Morgan Stanley MUFG Securities Co. in Tokyo, said on Bloomberg TV. “In Japan the notion of the Emperor as a symbol of the state is very important. From an economic point of view, it’s very important for social cohesion.” Japan’s currency was little changed after the news, trading at 104.63 per dollar as of 8:29 p.m. in Tokyo. The yen has climbed almost 15 percent this year, escalating the challenges for Akihito’s nation, which tumbled into stagnation and deflation in the early years of his reign. Emperor Kokaku, who gave up the throne in 1817, was the last emperor to abdicate, NHK said. There is no provision in the Imperial Household Law for such a move, and a legal change is likely to be required, according to the public broadcaster. His successor, Naruhito, is married to a former diplomat, Crown Princess Masako, who is still recovering from a stress-induced mental condition, and has one child, Princess Aiko. Naruhito’s successor would be the son of his younger brother, as women cannot succeed to the throne. Bloomberg News and AP

A10 Friday, July 15, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

China is not like the rest of us

hink about this upside-down world. China is a small country on some isolated peninsula, and North Korea is nuclear-armed, cash rich, with a 1.2 billion population that wants to control the South “Korean” Sea.

In the real world, the leader of China is called president, but Xi Jinping was not elected by nor does he answer directly to the people. China’s government is no less an authoritarian dictatorship than North Korea, Eritrea, or Iran. We, as in other “free societies,” address issues like “pork barrel” from the standpoint of what is right or wrong and best for the people. In governments like China, corruption is issue that threatens the power of the ruling party. Xi and the Communist Party of China care about the risk to power if the people are angry about corruption. Behind every government decision is the protection of personal and the Communist Party’s power. The decision of the Permanent Court of Arbitration to uphold the Philippine claims in the regional waters is unquestionably a victory—both a moral and legal victory. While the issue of enforcement is difficult, that is not important, either, because international law sanctions short of war are weak anyway. However, the dangerously naïve viewpoint is found in headlines, such as “China told: World is watching you.” Where is the threat to the power of the Chinese communist party? Is it from Filipinos protesting in front of the Chinese embassy—or even from US Secretary of State John F. Kerry—or from average Chinese citizens who have been told for generations that the rest of the world wants to keep China down? British Prime Minister David Cameron just resigned after he backed the losing side in the “Brexit” vote. Does anyone in his or her right mind think that Chinese leader Xi Jinping is going to tell the Chinese people that the government was wrong—in the world’s legal system—about the South China Sea being Chinese territory? This is not simply—as some people have said—about the Chinese government saving face. This is about total credibility, and even survival of the Chinese government. Some are quoting Deng Xiaoping’s speech before the United Nations in 1974 saying, “If one day China should...turn into a superpower...subject others to her bullying...the people of the world should...expose it, oppose it and work together with the Chinese people to overthrow it.” What a joke to repeat those words today. In 1974 the Chinese economy was No. 122 out of 136 nations measured. Deng said then exactly what both the world and his people wanted to hear. Today it is Xi saying, “China’s territorial sovereignty and maritime interests in the waters would not, under any circumstances, be affected by the verdict.” And from Xi’s personal position, any sign of weakness will be seen widely in China as national humiliation and will provide a legitimate opening to attack him.

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oter registration for the 2016 barangay and Sangguniang Kabataan (SK) elections starts today, the 15th of July, and will run until the end of the month, on the 30th. In that time, the Commission on Elections (Comelec) is expecting some 6 million people to sign up. This number includes both those who are registering as first-time voters, that is people 18 years and older; and those who are signing up to be members of the Katipunan ng Kabataan (KK), so they can vote for the SK elections. The latter group includes those aged 15 and up.

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As you can tell, there is an overlap between these two electorates: the KK, on the one hand, and the socalled regular voters, on the other. The KK is composed of individuals aged 15 up to 30, so from 18 up to 30, individuals can vote in both the “regular” barangay elections and the SK polls. And, as if that weren’t confusing enough, the SK Reform Act of 2015 also provides that not

everyone in the KK can actually run for SK office. Only those who are within the bracket of 18 to 24 are allowed to put up their names as candidates. As to the exact reasoning behind those age brackets, I cannot say. That was Congress that did that, following its own reasoning. However, the brackets do make sense. Considering the crucial role the

Considering the crucial role the KK has to fulfill in the barangay, the use of the standard definition of “youth” greatly increases the KK base, thereby making it an even more significant force in the community. By roping in youth who are at the peak of their creativity and idealism, the KK can leverage their zeal and vigor to the improvement of young lives in their neighborhoods. KK has to fulfill in the barangay, the use of the standard definition of “youth” greatly increases the KK base, thereby making it an even more significant force in the community. By roping in youth who are at the peak of their creativity and idealism, the KK can leverage their zeal and vigor to the improvement of young lives in their neighborhoods. As for the SK age bracket, it seems to me also logical to set the entry level, as it were, to 18, which is also the minimum age for entering into contracts. Setting the maximum

to 24, on the other hand, achieves both the training aspect of SK and acknowledges that, any older than that and perhaps it would be more seemly for the candidate to be tussling with the other grown-ups. This will be the first implementation of the SK Reform Act. As written, the law promises to correct much of what was considered faulty in the old system. But then again, there can be a wide gap to bridge between what’s on paper and how things unfold in real life. Hopefully, the reality of the new SK can live up to the fine ideals that inspired it. On a final note, the Comelec is encouraging the public to take advantage of the downloadable voterregistration forms that they can fillout at home, before they even head to the Comelec to register. Accomplishing the forms ahead of time will cut down on the queueing time for everyone trying to to get registered or reactivated in time for the 2016 barangay and SK elections. James Arthur B. Jimenez is director of the Commission on Elections’s Education and Information Department.

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Friday, July 15, 2016 A11

Drug abuse as an epidemic Leonardo A. Lanzona Jr.

EAGLE WATCH

hile making persistent pronouncements about the need to eliminate drug pushers and users, President Duterte, in one surprising speech, branded the members of the terrorist group Abu Sayyaf as being noncriminals. What then makes certain activities criminal and others as defensible acts of desperation? Several social scientists, in fact, view certain illegal activities, such as using prohibited drugs and unlawfully possessed guns, which eventually lead to violence, not as crime but as an epidemic. Hence, these acts are not criminal but should be seen as health problems. By definition, epidemics occur when diseases affect particular communities disproportionately, multiply through exposure and can spill over into new areas after reaching a certain threshold. In this case, the drug problem is an epidemic for at least two reasons. First, and most basic level, it’s an epidemic in terms of its unequal effect on the population. Based on the 2014 survey data of the Dangerous Drugs Board (DDB), men, 30 years of age, single and unemployed but with college education are affected at a rate much higher than other men and women. They come from below middle-income class levels (with an average monthly family income of P15,423) and reside mainly in the urban area, particularly Metro Manila. Second, the level of violence among that population is at an epidemic level. Based on DDB data, there had been an increasing admission of drug use over the years. In 2014 alone, a 34-percent increase in drugdependence admissions was recorded from the previous year. This is a significant improvement from the 19-percent increase in admissions noted in 2013. Furthermore, the drug problem moves in epidemic-like patterns across the regions. In the course of the current administration’s war on drugs, more than 4,000 users and peddlers of drugs surrendered in Tagum City, Davao; 1,592 across the Bicol region; and 762 in Taytay, Rizal. Called the “Duterte effect,” several hundreds have also come out in faraway places, like Palawan, Isabela and Western Visayas. These recently published numbers seem to point out that drug abuse spreads like HIV infection: One is more likely to “catch” the disease if one engages in risky behaviors with someone who might be infected. And it’s not just friends who affect their likelihood of getting exposed to the disease, but also the friends’ friends. This is similar to the transmission of HIV, where past sexual partners of one person affect the current partners, even if they are unknown to the latter. The spread of drug abuse is achieved through networks defined in terms links between and across individuals. Treating drug abuse as an epidemic has a number of implications. First, drug activities are not simple market transactions involving supply-and-demand functions. These are commodities that, under full information, people do not want and need, but receive and consume it anyway for some (possibly illogical) reason. There are patterns of transmission that go beyond aggregate factors, such as education, age, gender and income. On an individual level, social networks—the people one hangs out with—can predict a given person’s likelihood of being addicted and even killed. In this social-network approach, the analogies about an “epidemic” of diseases must be considered seriously, applying what we know from public health and epidemiology to understand, quite literally, who gets hurt and how to localize the problem. We can use that information not only to understand drug

In the course of the current administration’s war on drugs, more than 4,000 users and peddlers of drugs surrendered in Tagum City, Davao; 1,592 across the Bicol region; and 762 in Taytay, Rizal. Called the “Duterte effect,” several hundreds have also come out in faraway places, like Palawan, Isabela and Western Visayas. problem better, but to leverage it for intervention and prevention. Effectively, the local information can be used to increase the immunity of persons across varied regions from this “disease.” Second, when this problem is depicted in the media and by the government, it’s often in terms of bad actors, good actors and the innocent people in between. The network approach requires a redefinition of the offenders and co-offenders to victims. This is where science and policy need to come into conversation with each other, because the majority of victims are young men often with criminal records, and for a long time, the policy toward those people has been to treat them as offenders, not victims. If the goal is to reduce criminality, then the policy is not to drive the number of victims down. Criminality remains if this drug-war policy thwarts mostly the victims, not the social and political sources of the problem. New and younger victims will only emerge, as communities remain vulnerable to such threats. This requires different solutions in the form employment opportunities and services. Finally, in the short term, the goal is to isolate the social sources of the disease, not just the actors involved in the activity. A major part of this approach is to better understand the victims of drug violence, so they don’t just get lumped into categories. The methods used in different areas of science seek to understand how particular individuals may or may not be in harm’s way. The idea is to understand who within a community is at the most elevated level of risk today. These may include both drug pushers and users who have no access to community services and systems. The long-term solution, in terms of addressing the inequities in drug abuse—not just the absolute number of crimes, but the differences among regions—requires fixing communities. Period. Studies have shown that, when a youth is exposed to higher levels of drugs and commits a drug-related crime, he loses time for school or work experience. But what mitigates this is having a mentally healthy mother who will care for him. Having health care for mothers and improving family welfare can go a long way. The kinds of support systems needed have to do with monitoring and supporting communities from a public-health standpoint. When a community experiences a drug problem or violence, there should be systems in place that can be put into effect. As a former mayor, President Duterte should appreciate the importance of community development. Leonardo Lanzona Jr. is professor of economics at the Ateneo de Manila University and a senior fellow of Eagle Watch, the school’s macroeconomic research and forecasting unit.

Truth is just: An ancient pageant Tito Genova Valiente

annotations

othing is new or original, as they say, after the Greeks. It is to the Greeks I turn now that truth in many events is being claimed.

Are they indeed drug users? They surrender and are killed? Is it just? I am that person once more in the story of one of the greatest preSocratics, those philosophers who preceded Socrates, and Plato and Aristotle. He was Parmenides. While the other philosophers wrote their teachings in the form of treatises, Parmenides used the poetic forms and presented stories. With Parmenides, we travel to Heaven in search for truth. Like all the other philosophers of that

period, truth is considered sacred and can be sourced only among the gods. The search for truth is always a journey. There is a chariot to take us to that Path of Night and Day, the infinite. Parmenides believes that truth is eternal. It always was, is and will be, as with Being. A goddess, in the story, welcomes us. The goddess represents the beauty in the search for truth. The goddess stands at the door. We look for the key to that door, which will open to truth. Justice holds the key.

Chimpanzees Teddy Locsin Jr.

Free fire

ROM Abraham Lincoln, President Duterte drew this inspiring expression: “You cannot strengthen the weak by weakening the strong; you cannot help the poor by discouraging the rich; you cannot help the wage earner by pulling down the wage payer; you cannot further brotherhood by inciting class hatred among men.” When he said that, one imagined telco executives and reckless mining magnates, to borrow the words of Joker P. Arroyo, “jumping like chimpanzees.” But did Lincoln really say you cannot strengthen the weak by weakening the strong, when the weak are weakened by the strong? If so, why

did he wage a civil war to help the blacks against their white masters? Did Lincoln really say you cannot help the poor by discouraging the rich who got rich by making people poor; and keeping them that way by overcharging for dropped calls and turtle-slow Internet, which people have no choice but to pay or be cut

In the story, the search for truth may be arduous. It can be a quixotic enterprise. Yet, modern society learns much from this ancient thinker. To claim that you know the truth behind many questions is to say you have gone through a long process. You have talked to the divine because you have transcended many things. Parmenides would be grimacing now at how we bandy truths about other people. A list of corrupt people has been prepared and being in that list could mean, under the present dispensation, two things: one has been judged and, second, one has been found guilty and should be killed. Every day, more people are killed. There are sectors voicing already their protest. There are those who believe this is just. Along the way, another act is gathering support: the death penalty. Kill the erring person. The assumption is that the person apprehended is the guilty person, and the truth has been apprehended. Is revenge just? For that is what

the death sentence stands for: a person has killed one person and, therefore, he should also be killed. The search for truth is older than any civilization. That search has paved the way for societies to reckon with the nature of the human groups. Thus, in the mind of a thinker like Parmenides, to look for truth is a quest in itself. To find the way to the truth is to scale the heights and raise one’s mind above the throng, far above the crowd that is goading for the kill. When one has emptied the land, or the neighborhood of those we have labeled criminals, we are left standing with our society holding still the key to truth. Justice has been served, we are convinced. Justice is not a woman with her eyes covered as she holds a weighing scale: Justice is a person with eyes open telling us that truth is just. We dangle the key not knowing what to do with truth.

off from human intercourse. The operative word here is “intercourse.” Read Yanis Varoufakis’s latest book, And the Weak Suffer What They Must?, where he demonstrates that the strength of the strong is drawn from their oppression of the weak, and the wealth of the rich comes from their exploitation of the poor. There is no other way for the strong to become and stay strong, and the rich to get rich and richer—which is why it is in the interest of both to screw the weak and poor only up to that point beyond which they cease to contribute strength and wealth to the strong and rich. You should not kill the emaciated if golden goose. And yet, Mr. Duterte says in this and in another quotation are contained all his economic, financial and political policies. The solution to the riddle, the reconciliation of the seeming contradiction is the first and pre-

eminent quotation. This one from Franklin Delano Roosevelt—or was it Teddy Roosevelt, his cousin, the trust buster: “The test of government is not whether we add more to the abundance of those who have much; it is whether we provide for those who have little.” Especially when those who have much got it from those who have little; so that, in order to provide for those who have little, you must take a little back from those who have taken too much from those who have too little. It is worse when we are talking about mining, where those who have much take it from our patrimony— to wit, what will not grow back and cannot be replaced: nonrenewable natural resources. So stop jumping like chimpanzees over President Duterte’s words. Instead hold still, you are about to get a haircut all over, starting with your armpits.

Saving the world’s newest nation

he world’s youngest nation is already its fourth-largest source of refugees. It’s a dubious distinction that South Sudan, spiraling deeper into ethnic civil war, is unlikely to shed anytime soon. In the meantime, however, is there anything the so-called international community can do to set its newest member on a better path? The most recent outbreak of violence wasn’t exactly a surprise. President Salva Kiir and First Vice President Riek Machar—and their respective factions—were implicated in ethnic atrocities in the decades before South Sudan’s independence and have been sparring ever

since. The power-sharing arrangement forced on them last August did little to resolve underlying tensions. One other complicating factor: The collapse in oil prices has deprived South Sudan—which boasts subSaharan Africa’s third-largest reserves, after Nigeria and Angola—of badly needed revenue. The economy shrank by more than 5 percent last year and inflation has hit nearly 300 percent; meanwhile, Kiir’s government has been spending money it doesn’t have on attack helicopters and patronage politics. For all that, there is a role for rest of the world to play. To begin with, United Nations members can pro-

vide UN peacekeeping forces already there with the additional hardware, forces and leadership needed to protect the nearly 350,000 civilians who have sought shelter in various UN and other humanitarian encampments. The Security Council should also heed UN Secretary-General Ban Ki-moon’s call for an arms embargo. And with nearly 5 million South Sudanese facing starvation and more than 2 million displaced, donors must pledge and deliver more humanitarian assistance. The other way to prevent more killing, of course, is to make those responsible pay the consequences. A UN report has blamed senior officials

E-mail: titovaliente@yahoo.com.

in both the government and opposition for war crimes and called for the wider use of targeted sanctions. Yet, any expansion needs to be done with a focus on deterrence. The African Union, which has long complained about the International Criminal Court, should follow through on its proposal for an Africa-based court to hold those perpetrators to account. Democracy and prosperity, let alone stability, are sadly still a long way off for South Sudan, which just last week marked its fifth birthday. Bringing them closer depends first on protecting the lives of those who are its best hope: the people without the guns. Bloomberg View

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Sobrepeña: MRTDevCo has already paid everything owed to government Telcos. . .

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At the heart of this legal tussle is the controversial acquisition of the two telco giants of San Miguel Corp.’s telco assets for P69.1 billion. To recall, the competition commission sought for the review of the deal. But the two companies were firm on their stance that the deal does not have to be reviewed, as they followed the rules laid out by the antitrust body itself. The deal was sealed a day before the implementing rules and regulations for the competition law was released, hence, according to officials of the duopoly, the acquisition will only be bound by transitory rules. Under the competition bureau’s transitory rules, a deal is “deemed approved” after a notice has been filed before the regulator. “There was nothing wrong with the deal. The PCC is wrong to subject it to a review. The transaction was above board, based on the rules in play when we sealed it,” Espinosa said. He added: “We are entitled to the full benefits already of the circular. Why will we give it up? A right is a right. And the lesson that you have

to understand is that if you believe in the rule of law and that government is a government of laws you should never ever think of giving up your right, because that is wrong.” Globe Chief Commercial Officer Alberto M. de Larrazabal told the Businessm irror: “We believe that we have followed all of the interim regulations that are governing this transaction as promulgated by them and therefore it has been deemed approved.” The acquisition, however, may have dire implications on competition around telecommunications industry, an arena that, for the longest time, has been dominated by the two giants and lacked challenge from new players. Mary Grace Mirandilla-Santos, and independent telecom and information and communications technologies (ICT) policy researcher, said in her latest commentary that in such court cases that could last years before reaching a conclusion, chances are the victor would be the party, which has the most financial capacity to sustain legal procedures for a long period of time. “As these legal battles can drag on for years, even up to a decade, the parties with the deepest pockets and the best lawyers always win, no matter the court’s decision,” Santos said.

By Rosabell C. Toledo | Special to the BusinessMirror

VER wonder why some food stalls on Metro Rail Transit (MRT) stations have closed shop?

A document from the Department of Transportation and Communications (DOTC) pins the blame on Metro Rail Development Corp. (MRTDevCo), which allegedly has an outstanding P2.5-billion debt to the government. T he DOTC claims that MRTDevCo, led by businessman Robert John L. Sobrepeña, has unpaid advertising debt. According to a notice issued by the DOTC, the debt forced the DOTC to hold back issuing permit to MRTDevCo’s advertising manager, Media Puzzle Inc. Hence, the closed food stalls in most stations of the train line. But according to Sobrepeña, his

₧2.5B The alleged debt owed by MRTDevCo to the government

company owes no debt to the government. “We have paid everything we needed to pay,” Sobrepeña told the BusinessMirror in a phone interview. “The government does not have any accounts receivable from us anymore.” He explained that, by virtue of

the build-transfer-lease (BLT) agreement entered into by the government and private firm Metro Rail Transit Corp. (MRTC) in 1997, the right to develop air space above all 13 stations of the MRT was exclusively granted to MRTDevCo. “As per the agreement, if we should choose not to act upon the right to develop [the] said airspace, which is what happened, the rights to it automatically revert back to the government. Now, the right has been forfeited to them,” Sobrepeña said. “So the transport department should not have been accruing any accounts receivable from us anymore.” The deed of assignment of development rights gave MRTDevCo the right to exercise development rights; the right to develop commercial premises in the train depot and stations; and the exclusive rights to all nonrail-related revenues—including profits generated from advertising spaces and food stalls inside train stations. “That’s how it has always been.

NCC wants to include all LGUs in next competitiveness survey By Catherine N. Pillas

@c_pillas29

he National Competitiveness Council (NCC) said on Thursday it is targeting to cover all local government units (LGUs) in its next survey of competitive cities and municipalities in the country. NCC Private Sector Cochairman Guillermo M. Luz made the pronouncement during the Fourth Annual Regional Competitiveness Summit, where the results of the 2016 Cities and Municipalities Competitiveness Index (CMCI) were presented. “The grand plan for the fifth year [of this program] next year is 100-percent coverage [of municipalities and cities]. We’re on track, but the remaining 15 percent is the toughest,” Luz said. A total of 1,389 LGUs participated in the regional competitiveness summit. “The difficult ones are in Autonomous Region in Muslim Mindanao, as well as other LGUs far in proximity, making it difficult to gather information,” Luz said. Topping the list of overall most competitive highly urbanized cities (HUC) is Quezon City, followed by Makati City and the city of Manila. Meanwhile, Naga City secured its position as the overall “Most Competitive Component City.” San Fernando City and Legazpi City in Albay ranked second and third, respectively. On the overall Most Competitive First- and Second-class Municipalities category, Cainta in Rizal topped the list, while its neighbor Taytay moved one notch to second place. Last year’s overall top municipality, General Trias in Cavite, slipped to third place. Infanta, Quezon, emerged as the overall most competitive, Third- to Sixth-class Municipality. Baler in Aurora and Calamba in Misamis Occidental placed second and third, respectively. NCC also cited the most competitive provinces, led by the Rizal province, which placed sixth in 2015, followed by Cavite, which also jumped from ninth spot in the previous year. South Cotabato moved one notch to third place in this year’s rankings. Under the “Economic Dynamism Pillar for HUC,” Makati City was named as the best performer,

followed by Pasig City and Quezon City. For the “Component Cities,” Naga City, Camarines Sur, ranked first, while Imus City and Biñan City trailed in second and third places, respectively. For First- and Second-class Municipalities, General Trias, Cavite, topped the Component Cities category, with Cainta, Rizal, in second place and Santa Maria, Bulacan, in third place. For Third- to Sixthclass Municipalities, Jimenez, Misamis Occidental, ranked first, followed by Manito, Albay, and Nasipit, Agusan del Norte. On the “Government Efficiency Pillar for HUC,” the city of Manila was deemed the most competitive, with Quezon City as second and Iloilo City as third. Under the “Infrastructure Pillar for HUC,” Quezon City was regarded as the best performer, followed by Makati City and Pasig City. For Component Cities, Naga City ranked first, while Bacoor City, Cavite, and Legazpi City, Albay, placed second and third places, respectively. Aside from these citations, NCC recognized the most improved LGUs from each category: Taguig City for HUC; Ormoc, Leyte, for Component Cities; Pagbilao, Quezon, for First- and Second-class Municipalities; and Barugo, Leyte, for Thirdto Sixth-class Municipalities. This year’s CMCI has the largest number of participants, with 1,389 LGUs, 144 of which are cities and 1,245 are municipalities. This equals to about 85 percent of total LGUs in the Philippines. When CMCI started in 2013, only 285, or 17 percent, of LGUs in the country joined the survey. CMCI measures an LGU’s competitiveness based on the three pillars: economic dynamism, government efficiency and infrastructure. Aside from the awarding, the NCC also launched the 2016 CMCI web site, which contains the detailed information on a particular LGU. The CMCI data may be used by businesses and the government as a tool for policy-making, planning, governance, budget management and investment promotion. Stakeholders, coming from the national government agencies, business chambers, development partners, diplomatic community and academe, have joined this annual event.

The revenue from those ad and lease spaces all goes to the private sector,” Transportation Undersecretary for Rail Noel Eli B. Kintanar told the BusinessMirror in an interview. “None of it goes to the train’s development and operations.” Kintanar added: “So even if those ad spaces end up all empty and unsold, the government is not actually losing anything, because profit from those spaces is not to be ours in the first place.” Kintanar refused to comment further, saying he is still studying the matter. Transportation Secretary Arthur P. Tugade, who just assumed post earlier this month, said his team will look into the prospect of buying out the train line’s owners “seriously.” “Whether it will be good for the government to buy into equity or simply return the operation or infrastructure, we are studying it,” he said. Tugade noted, however, such plan is at the lower end of his priority list for the train system.

Construction materials in NCR were cheaper last month–PSA By Cai U. Ordinario @cuo_bm

he slower hike in the retail prices of painting materials and related compounds pulled down the average cost of construction materials in Metro Manila, according to the Philippine Statistics Authority (PSA). Data released by the PSA on Thursday showed the Construction Materials Retail Price Index (CMRPI) in the National Capital Region (NCR) slowed to 1.4 percent in June. This was lower than the 1.5 percent posted in May 2016, but was higher than the 0.1 percent posted in the same period in 2015. “The CMRPI is a variant of the General Retail Price Index that measures the changes in the average retail prices of construction materials,” the PSA said. The annual increases in the retail prices of painting materials and related compounds slowed to 1.3 percent. Slower retail price increases were recorded in the plumbing materials index, 1.1 percent; electrical materials index, 0.6 percent; and tinsmithry materials index, 0.5 percent. However, higher annual rates were observed in the indices of carpentry materials at 2.1 percent; masonry materials, 3.5 percent; and miscellaneous construction materials, 2 percent. On a monthly basis, meanwhile, the CMRPI in the NCR moved up at a slower pace of 0.3 percent last month. In May the increase was 0.5 percent. Increases in the indices of carpentry materials eased to 0.4 percent; and masonry materials, 0.5 percent. “Plywood, lawanit, common wire nails, hinges, safety switch, cement, gravel, sand, concrete hollow blocks, paints, GI sheets and steel bars were priced higher during the month. Lower prices were observed in paint thinner and selected PVC pipes,” PSA said. The PSA said higher monthly growth of 0.7 percent was noted in the indices of tinsmithry materials and miscellaneous construction materials. Also, the indices of electrical materials, painting materials and related compounds and plumbing materials recorded a growth rate of 0.1 percent. The market basket for Retail Price Index of Selected Construction Materials is composed of 102 commodities and classified into seven major groups. These commodities are carpentry materials; electrical materials; masonry materials; painting materials and related compounds; plumbing materials; tinsmithry materials; and miscellaneous construction materials.