Businessmirror june 04, 2016

“There are good ways of controlling migration, and there are bad ways. It would be madness to try to do that by trashing our economy and pulling out of the single market.”—British Prime Minister David Cameron, on the repercussions for immigration, security and the economy of quitting the 28-nation bloc. AP

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“He has the gall to say prisoners of war like John McCain aren’t heroes.

He says he has foreign-policy experience because he ran the Miss Universe pageant.”—Hillary Clinton, assailing Donald Trump as a potential president who would lead America toward war and economic crisis. She portrayed her own foreign policy as optimistic, inclusive and diplomatic, born from long experience in public life. AP

“I had friends wishing I wouldn’t support him. I had friends wishing I would. I really didn’t feel any pressure, other than my goal is to make sure that we’re unified so that we’re at full strength in the fall, so we can win the election.”—House Speaker Paul Ryan, after endorsing Donald Trump’s bid for presidency on Thursday, bringing an end to the extraordinary public split between the GOP’s presumptive White House nominee and the nation’s top Republican in office. AP

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Saturday, June 4, 2016 Vol. 11 No. 238

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AFP MODERNIZATION VIA HIGHER DEFENSE BUDGET CLAIMED AS AQUINO LEGACY

P-Noy may tout military might in June 12 rites

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INSIDE

BusinessMirror

World The

Communications Secretar y Herminio B. Coloma Jr. said there are suggestions for another show of the country’s new military equipment, particularly the new FA-50 fighter jets and the newly acquired vessels of the Philippine Navy.

B2-1 | Saturday, June 4, 2016 • Editor: Lyn Resurreccion

DUCKS swim on the overflowing embankments of Paris on Wednesday.

Paris City Hall closed roads along the shore of the Seine from the southwest edge of the city to the neighborhood around the Eiffel Tower as the water level has risen 4.3 meters higher than usual. AP/THIBAULT CAMUS

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HANCELLOR of the Exchequer George Osborne say hundreds of thousands of jobs may be lost in the service sector, the main driver of Britain’s economy, if the country leaves the European Union (EU), as polls suggest the government’s warnings of the impact on growth of a so-called Brexit, or Britain’s exit from the EU, are not convincing voters.

Service companies, Britain’s biggest employers with a work force of 25 million, could be forced to cut 400,000 jobs over the next two years, Osborne was set to say in a speech on Friday on England’s south coast. He will accuse the “Leave” campaign of failing to accurately portray the impact on unemployment of an exit from the bloc.

“It would be simply dishonest to go on claiming that people’s jobs won’t be lost by a vote to leave the EU,” Osborne will say, according to prepared remarks released by the official “Remain” campaign group.

“The Leave campaign should come clean with the British people. This isn’t about numbers on a spreadsheet, but working people’s jobs and aspirations. It’s not a price worth paying. “ With just under three weeks to go until the June 23 referendum, campaigning is getting increasingly acrimonious, and both camps have been accused of smears and overstating the facts. While the Remain camp has relied on reports from the Treasury, the Bank of England, the International Monetary Fund and the Organization for Economic Co-operation and Development portraying the economic consequences of an exit, the Leave campaign has switched its focus to immigration and the government’s failure to curb it.

Living standards

TWO ICM polls, carried out both online and by telephone, put Leave ahead this week, suggesting its

25M The number of Britain’s work force in the services sector

strategy may be working.

Meanwhile, in a sign that the government’s economic message hasn’t cut through, an Ipsos Mori poll on voter attitudes found 58 percent of respondents saying they don’t think leaving the EU would affect their own standard of living.

A survey of academics, pollsters and journalists by the Political Studies Association found that while 87 percent thought the result of the referendum would be a Remain vote, their average rating of the chance of a Brexit was 38 percent, much higher than betting and prediction markets.

The Number Cruncher Politics web site is calculating a Brexit probability of 21.7 percent.

On Thursday night, in his first appearance in a television show dedicated to the referendum, Prime Minister David Cameron repeatedly emphasized the risk to jobs. In his closing address to the audience, he pressed the point.

“When we wake up in the morning, and look our children and grandchildren in the eye, and we think who we’re responsible for in our pay packet, let us not roll a dice on their future,” he said.

‘Economic self-harm’

CAMERON defended himself against accusations of scaremongering and “waffling” from the studio audience, saying it was his duty as prime minister to warn the country against “an act of economic selfharm.”

Earlier on Thursday, German Chancellor Angela Merkel made her strongest intervention in the debate so far, warning that the UK would be isolated and lose influence if it leaves the EU. “One nation alone will never be able to achieve such good results,” she told a news conference in Berlin.

When Osborne speaks on Friday, he’ll warn that most service industries rely on cross-border trade and supply chains, making them particularly vulnerable to an exit from the EU. The services industry accounts for almost half of Britain’s exports to the EU.

‘Convince no one’

“THIS latest attempt to do down the British economy by the chancellor will convince no one,” Vote Leave’s chairman, Labour Party lawmaker Gisela Stuart, said in a statement.

“The reality is not even the European Commission can find significant evidence that the EU has benefited the UK’s service exporters, but it has benefited the giant multinational companies which spend millions lobbying Brussels each year.”

Heads of companies, including HSBC Holdings Plc. Chairman Douglas Flint and CEO Stuart Gulliver, BT Group Plc. CEO Gavin Patterson, Compass Group Plc. Chairman Paul Walsh and CEO Richard Cousins, issued a joint statement on Friday supporting the Remain campaign.

“As the leaders of some of Britain’s biggest service businesses we believe that a vote to leave the EU would damage the UK’s thriving service sector and put jobs at risk,” they said. “We want to ensure that Britain remains a leader in this vital field, and that is why we support the UK remaining in the EU on June 23.”

The government is also likely to face questions about a report on Friday from Parliament’s Home Affairs Committee, which says its failure to deport foreign criminals is harming confidence in the EU. Bloomberg News

Louvre, Orsay museums close as Seine overflows

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ARIS—The rising waters of the Seine overflowed riverbanks, roads and rail tracks across Paris on Thursday, forcing authorities at the Louvre to do something they have not done in generations: hurriedly move precious artworks to higher ground.

Water levels at the famous river that winds through the French capital are expected to peak on Friday sometime about noon. Paris police upgraded their flood warning on Thursday to “orange”— the second-highest level—for areas near the Seine, which means they believe the floods could have “a significant impact” on buildings and people.

The Louvre Museum announced it would be closed on Friday to remove artworks from rooms threatened by the rising waters, preventatively shifting them upstairs.

Its most famous painting, Leonardo da Vinci’s Mona Lisa, is staying put on an upper floor.

The Orsay museum, on the left bank of the Seine, will also be closed on Friday to prepare for potential flooding.

A spokesman at the Louvre said the museum had not taken such precautions in its modern history—since its 1993 renovation. Some underground storerooms created during the renovation are particularly vulnerable to flood risks.

She spoke on condition of anonymity in line with the museum’s policy.

The Louvre did move art to higher floors in the flood that devastated Paris in 1910, but authorities were still checking to see if similar actions had been taken from then to 1993.

About 200,000 artworks are located

in flood-risk areas, mostly in storerooms.

European rivers have burst their banks this week from Paris to the southern German state of Bavaria, killing six people, trapping thousands and forcing everything from subway lines to castles to museums to shut down.

Tourist boat cruises in Paris have been canceled and roads in and around the French capital are under water. A suburban train line that runs alongside the Seine in central Paris, serving popular tourist sites like the Eiffel Tower, the Invalides plaza and the Orsay museum, was shut down.

Days of heavy rains have caused exceptional delays to the French Open tennis tournament and may force it into a third week.

France’s meteorological service said on Thursday that severe flood watches remained in effect in one Paris-area region: Seine-et-Marne.

Nine more regions in central France, including Paris, were facing flood warnings, as well.

Fara Pelarek, 44-year-old Australian tourist visiting Paris, said she was “very surprised” to see the Seine so high.

“I remember walking down below [before] and it was very easy,” she said. “In a way, it’s kind of nature taking over.”

For the second day, emergency workers evacuated residents in Nemours, 80 kilometers south of Paris, the hardest-hit site in France.

Areas along the Loing River, a tributary of the Seine, were facing water levels unseen since the 1910 floods. The situation improved somewhat late on Thursday, yet about 21,000 homes were still

@davecaga

resident Aquino is contemplating on showcasing all the Philippines’s new military assets in the Independence Day rites on June 12 as one of his administration’s legacies.

BREXIT PUTS 400,000 JOBS AT RISK IN U.K.

Brexit puts 400,000 jobs at risk in UK

By David Cagahastian

without electricity.

In the Loire valley in central France, the renowned castles of Chambord and Azay-le-Rideau were closed because of floods in their parks.

Those killed amid the deluge include an 86-year-old woman who died in her flooded home in Souppes-sur-Loing, southeast of Paris.

In southern Germany five people were killed as floods swept on Wednesday through the towns of Simbach am Inn and Triftern near the Austrian border.

French President François Hollande said a “natural disaster” will be formally declared next week for areas most affected by the flooding—and a separate fund will help villages and small towns deal with the damages.

In Berlin, German Chancellor Angela Merkel, meanwhile, promised continued help for flooded areas, telling reporters on Thursday that she “mourns for those for whom the help has come too late, who lost their lives.”

The floodwaters in Bavaria receded somewhat and disaster relief crews were helping to clear the wreckage, but there were warnings of more storms.

Belgium endured a fourth day of heavy rain, with flooding reported in several areas. After widespread flooding hit northern Antwerp and the west of Flanders early in the week, waters kept rising in eastern areas around Limburg and Liege. Several neighborhoods have had to be evacuated as cellars flooded and streets were submerged.

A major train line linking Limburg to the Belgian capital of Brussels was temporarily suspended on Thursday. AP

“There are suggestions to showcase all the military assets, much like during the People Power celebration, but this time including the new sea vessels,” Coloma said. During the 30th anniversary of the Edsa People Power Revolution in February, the Philippine Air Force’s

₧25B The budget allocated for the AFP modernization program this year

(PAF) two brand-new FA-50 fighter jets made a flyby of Epifanio de los Santos Avenue. The two fighter jets are part of the 12 aircraft bought from South Korea, which will be delivered in batches until next year. Coloma said the suggested See “P-Noy,” A2

Solid US job gain in May could set stage for summer Fed hike

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walk off the job. The striking employees, now back to work, won’t be counted as employed during May—a fact that could depress the job gain.

The strike could also lower other figures in the jobs report, such as average hourly pay. As a result, the Fed might find it hard to derive a clear picture of the job market from Friday’s data.

Still, the report will be scrutinized for evidence that the economy has accelerated after a slump early this year.

The government has estimated that the economy grew at just a 0.8-percent annual rate in the January-to-March quarter. More recent figures indicate that growth has since strengthened. But the Fed may want additional data to ensure that the improvement is sustained.

Investors collectively estimate only a 21-percent chance that the Fed will raise rates on June 15, according to futures trading on the Chicago Mercantile Exchange. The likelihood rises to 60 percent for the Fed’s July meeting. Both

ASHINGTON—Friday’s US jobs report for May will provide a crucial piece of data for the Federal Reserve (the Fed) to weigh in deciding whether to raise interest rates later this month.

Economists have estimated that employers added 160,000 jobs for a second straight month, according to data provider FactSet. That would be a solid gain, though below the average increase of 232,000 for the past year. The unemployment rate is expected to remain at a low 5 percent.

Many analysts think the Fed will refrain from raising its key short-term rate when it meets in two weeks before increasing rates at its subsequent meeting in late July. It might take a much biggerthan-expected job gain in May—well above 200,000—to nudge the Fed toward a rate hike this month.

Last month’s hiring figure may have been distorted by a strike at Verizon, which caused about 40,000 workers to

figures are a marked shift from a month ago, when June and July were seen as much less likely.

But most economic reports since then have been encouraging: Consumer spending surged in April. Americans ramped up purchases of autos and other big-ticket items, like appliances.

Home sales and construction have also increased. Sales of new homes reached an eight-year high in April.

Even manufacturing, which has suffered from weak growth overseas and a strong dollar that has depressed exports, is showing signs of stabilizing.

Factory activity expanded in May for a third straight month, according to a survey of purchasing managers.

In December, after months of economic improvement, the Fed raised its benchmark short-term rate after pegging it near zero for seven years.

In March, officials indicated that they expected just two additional increases this year. AP

world

B2-1

ryan endorses, will vote for trump

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Cecilio T. Arillo

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The World BusinessMirror

B2-2 Saturday, June 4, 2016

Ryan endorses, will vote for Trump

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ILWAUKEE—After a month of meetings and phone conversations, House Speaker Paul Ryan went to his hometown newspaper to declare what many saw was inevitable.

Ryan, Republican-Wisconsin, endorsed presumptive Republican nominee Donald Trump on Thursday, saying he would vote for the New York mogul in the fall.

“It’s no secret that he and I have our differences,” Ryan wrote in an opinion piece submitted to the Janesville Gazette. “I won’t pretend otherwise. And when I feel the need to, I’ll continue to speak my mind. But the reality is, on the issues that make up our agenda, we have more common ground than disagreement.”

Those close to Ryan said the Janesville Republican and 2012 GOP vice-presidential nominee reached the decision earlier this week. He spoke most recently to Trump some time last week.

Trump’s courting of Ryan has gone on for weeks as he sought to unite the Republican Party.

“He was always going to do it on his timeline,” said a source close to Ryan. “He’s a Wisconsin guy. He wanted to make the announcement in the Janesville paper.”

After reports of Ryan’s endorsement, Trump tweeted: “So great to have the endorsement and support of Paul Ryan. We will both be working very hard to Make America Great Again!”

In style and substance, Ryan and Trump are polar opposites.

Ryan has emerged as an intellectual force in conservative circles, while Trump brashly stormed through the Republican primaries, collecting enough delegates to secure the party’s nomination.

In doing so, Trump appeared at odds with party principles on entitlements and national security. He also made immigration a central focus of the race, while Ryan had spent years tr y ing to secure a compromise on the complex issue.

Ryan campaign Spokesman Zack Roday said the column is an endorsement of Trump.

In his role as House speaker, Ryan has emerged as a key bridge between the party’s establishment and more conservative wing. He also wields enormous power, helping shape his party’s agenda.

In early May, Ryan told CNN he wasn’t “ready” to back Trump.

Four days later, he told the Milwaukee Journal Sentinel said he was willing to step down as chairman of the GOP convention if Trump asked.

In his opinion piece, Ryan wrote of the importance of House Republicans putting together an agenda to unite the party as well as the country. House Republicans will be rolling out that agenda beginning next week.

“One person who we know

House speaker Paul Ryan, Republican-Wisconsin, pauses during an interview with The Associated Press on Thursday in Janesville, Wisconsin. Ryan endorsed Donald Trump on Thursday, ending an extraordinary public split between the GoP’s presumptive presidential nominee and the nation’s highest-ranking Republican office holder. AP/Andy MAnis

won’t support it is Hillary Clinton,” Ryan said of the likely Democratic presidential nominee.

Ryan wrote: “Donald Trump

and I have talked at great length about things, such as the proper role of the executive and fundamental principles, such as the

Clinton: Electing Trump would be ‘historic mistake’

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AN DIEGO—Previewing a rancorous fall campaign, Hillary Clinton assailed Donald Trump on Thursday as a potential president who would lead America toward war and economic crisis. She portrayed her own foreign policy as optimistic, inclusive and diplomatic, born from long experience in public life.

There was nothing diplomatic in her remarks, a clear indication of how she’ll take Trump on.

Electing him, she said, would be “a historic mistake.”

During a speech in San Diego, which was billed as a foreign-policy address, the Democratic former secretary of state unloaded on her likely Republican election opponent, counting down reasons he is not qualified—from his aggressive Twitter attacks to his emotional outbursts.

“He is not just unprepared; he is temperamentally unfit,” she told supporters in a ballroom.

“We cannot let him roll the dice with America.” She said a Trump presidency could spark nuclear conf licts overseas and ignite economic catastrophe at home.

“There’s no risk of people losing their lives if you blow up a golf-course deal, but it doesn’t work like that in world affairs,” Clinton said of the celebrity businessman. “The stakes in global statecraft are infinitely higher and more complex than in the world of luxury hotels.”

She mocked Trump’s Twitter blasts and predicted he was preparing more as she spoke. As if on cue, he tweeted after she finished: “Bad performance by Crooked Hillary Clinton! Reading poorly from the telepromter! She doesn’t even look presidential!”

Hours later, the presumptive Republican nominee called the speech “a Donald Trump hit job.”

“That was a phony speech,” Trump said at a rally on Thursday

night in San Jose, California. He accused Clinton of misrepresenting his foreign-policy views and revived a nickname he once reserved for former rival Ted Cruz.

“She made up my foreign policy,” Trump said. “She’s Lyin’ Hillary.”

He joked that it was “ hard to stay awake” during Clinton’s speech and said she would make a lot of money if she delivered speeches to insomniacs. He also denounced Clinton’s suggestion that he was “temperamentally unfit” to be commander in chief.

“My temperament is so much tougher, so much better than hers,” Trump said.

Earlier, Trump got an endorsement he’d been seeking—from Republican House Speaker Paul Ryan, who had resisted even after the businessman clinched the GOP nomination.

Clinton’s robust assault on Trump was widely carried on television, a change for the leading

Democratic candidate who’s frequently struggled to break through coverage of Trump.

She is ramping up her criticism of the presumptive Republican nominee and trying to quell concerns within her own party that she isn’t ready to rumble with the famously combative Trump. She offered a number of aggressive new attack lines, at times baiting Trump to respond by calling him “thin skinned.”

She hit Trump for his reality television past, for his snarky Twitter feed, for his hotel experience. She ran down a list of people he has insulted, including the pope.

A nd she assailed Tr ump over ma ny st atements, cr it ic i zing h im for seek ing to ba n Musl ims f rom enter ing t he cou nt r y, for t a l k ing about leav ing Nor t h At l a nt ic Treat y Organ i z at ion a nd for sug gest i ng Japa n cou ld one d ay acqu ire nuc lea r weapons. AP

Muhammad Ali hospitalized for respiratory prob

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OxING great Muhammad Ali is hospitalized in the Phoenix area with what two people familiar with his condition say may be more serious problems than his previous hospital stays.

The people told The Associated Press (AP) on Thursday that Ali is fighting respiratory issues, which are complicated by the Parkinson’s that he was diagnosed with in the 1980s. The two spoke separately in describing Ali’s condition that they say is concerning to family members.

T he people declined to be identified because they were not speaking on behalf of the family.

A spokesman for Ali sent out a news release earlier on Thursday saying the former heavyweight

champion is being treated at an unidentified hospital for a respiratory issue. Spokesman Bob Gunnell said that the 74-year-old was in fair condition, and that a brief hospital stay was expected.

Ali’s longtime Parkinson’s doctor declined to comment when reached by the AP on Thursday night. “I can’t really say much more than what’s in the papers,” said Dr. Abraham Lieberman of the Barrow Neurological Institute in Phoenix.

Ali has been hospitalized several times in recent years, most recently in early 2015, when he was treated for a severe urinary tract infection, initially diagnosed as pneumonia.

Ali has looked increasingly frail in public appearances in

recent years, including on April 9 when he wore sunglasses and was hunched over at the annual Celebrity Fight Night dinner in Phoenix, which raises funds for treatment of Parkinson’s.

His last formal public appearance before that was in October 2015, when he appeared at the Sports Illustrated Tribute to Muhammad Ali at The Muhammad Ali Center in his hometown of Louisville, Kentucky, along with former opponents George Foreman and Larry Holmes.

Ali has suffered from Parkinson’s for three decades, most famously trembling badly, while lighting the Olympic torch in 1996 in Atlanta. Despite the disease he kept up a busy appearance schedule until recently, though he has

Why oil prices and power rates keep on rising

not communicated verbally in public for years.

Doctors say the Parkinson’s was likely caused by the thousands of punches Ali took during his career, where he traveled the world meeting opponents in big fights.

An iconic figure who was, at one point, arguably the most recognized person in the world, Ali has lived quietly in the Phoenix area with his fourth wife, Lonnie, who he married in 1986.

News of his hospitalization brought well wishes from boxers and others on Twitter, including Sugar Ray Leonard, who modeled his career after Ali. “Prayers & blessings to my idol, my friend, & without question, the Greatest of All Time @MuhammadAli ! #GOAT,” Leonard wrote. AP

protection of life. The list of potential Supreme Court nominees he released after our first meeting was very encouraging.”

Ryan said the main focus of the talks revolved around the House policy agenda in such areas as health care, national security and the economy. “We’ve talked about the common ground this agenda can represent,” Ryan said in his Janesville column. “We’ve discussed how the House can be a driver of policy ideas. We’ve talked about how important these reforms are to saving our country.

And we’ve talked about how, by focusing on issues that unite Republicans, we can work together to heal the fissures developed through the primary.

“Through these conversations, I feel confident he would help us turn the ideas in this agenda into laws to help improve people’s lives.

That’s why I’ll be voting for him this fall.”

In an interview with The Associated Press, Ryan said Trump didn’t offer any deals in exchange for the endorsement. Ryan said the two still have their differences but he wanted to reach the right “comfort level” before endorsing Trump.

“It is my hope the campaign improves its tone as we go forward and it’s all a campaign that we can be proud of,” Ryan said.

Democratic National Committee Chairman Debbie Wasserman Schultz blasted Ryan’s move.

“When he initially refused to endorse Trump four weeks ago, Paul Ryan said it was time to set aside bullying and belittlement,” she said in a statement.

“But with his tepid, half-hearted endorsement on [Thursday], Ryan has backed away from his own criticisms of Trump’s dangerous, divisive campaign, bowed down, kissed the ring, and conceded that Trump is the leader of the Republican Party.” TNS

Japanese boy survives abandonment in forest

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OKyO—nearly a week after he was abandoned in the forest by his parents, the boy did not shed a tear when he was found safe on Friday.

The soldier who discovered him by chance in a military hut gave him two rice balls, which 7-year-old yamato Tanooka ate ravenously. He looked a bit worn out but was genki, the military said, using a Japanese word describing healthy children.

The boy’s safe return was welcomed in a nation riveted by his disappearance and undergoing intense soul-searching about how it raises and disciplines its children. yamato’s story, as pieced together from comments from the military and police, was admirable in resourcefulness and resilience.

His parents, trying to teach him a lesson for misbehaving and throwing rocks, made him get out of the car last saturday on the northernmost main island of Hokkaido in a forest reputedly ridden with bears. They couldn’t find him when they returned several minutes later.

Ap p a re nt l y wa l ki n g fo r s e ve ra l kilometers, the boy found the empty hut in a military drill area and entered a door that had been left open. it had no heat or power and no food, but yamato huddled between mattresses on the floor and drank water from the solitary faucet outside the hut for several days, local media reported.

A massive manhunt, including 180 people and search dogs, had found no trace of him.

The soldier who found him had not been part of the frenzied search effort, but soon the boy identified himself as yamato Tanooka.

Appearing outside the hospital where the boy was flown in by helicopter, his father apologized, bowing deeply, thanked everyone for the rescue and vowed to do a better job as his dad.

“We have raised him with love all along,” said the father, Takayuki Tanooka, fighting tears. “i really didn’t think it would come to that. We went too far.”

Military officials expressed admiration for the boy’s perseverance, as the building where he was found was far from where he had disappeared and involved a rigorous

uphill climb. The boy was dehydrated and had minor scratches on his arms and feet, but no serious health risks were found, a doctor who examined him said on nationally televised news.

Asked what he had told his son after he was found, the father said, “i told him i was so sorry for causing him such pain.”

The nation welcomed the boy’s safe return.

Old photos of yamato, wearing a cowboy hat here, holding up two fingers in a peace sign there, his bangs falling over a proud smile, were flashed across again and again on TV. daijiro Hashimoto, a former governor appearing on a talk show on TV Asahi, wondered how the boy had endured the loneliness, especially at night, and suggested that perhaps he had imagined he was on some adventure and was hiding in a secret camp.

“He had to keep a very positive attitude,” Hashimoto said, reflecting widespread sentiment here. “He is fantastic. He didn’t know how long it might take, and when he would ever be saved.”

The boy’s disappearance and the debate set off by the parents’ decision resonated in an aging nation with a dearth of children, where child-raising is expensive and often requires financial sacrifice.

Japanese culture also is not seen as promoting individual rights of children, but rather to view children almost as family property. Abandonment and child abuse are far more common in Japan than the stereotype of the doting parent and stay-at-home mom would suggest. yamato’s parents are not officially under any police investigation for their actions. A child-welfare expert said abandonment of a child should be treated seriously.

Tamae Arai, who heads a Tokyo ward’s family-support operations, said, though she does not know the specifics of this case, an investigation would be likely in a similar case to ensure a child is protected.

“Beating and kicking are not the only forms of child abuse. There is also neglect. Of course, we are all thrilled he was found, but it is important to note that there could be a serious problem here,” she said. AP

world

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STREET VIEW Pangako, a mural by Anjo Bolarda on Bonifacio High Street, Bonifacio Global City, is part of the recently held ArtBGC Festival, a weeklong mural festival organized by the Bonifacio Arts Foundation, which featured local and international artists. nonie reyes

WHAT THE BIBLE SAYS Dear God, You said, God will wipe out every tear from their eyes, and death will be no more, neither will mourning nor outcry, nor pain be anymore. The former things have passed away. Revelation 21: 3, 4. Good God, how meaningful and satisfying work. No more sickness nor suffering of any kind. A happy, unending life with family and friends. We treasure and believe all these promises, O God, please continue to inspire us know, love and serve you, all the best we can. Amen!

How We View the Future Leaflet , Shared by Luisa M. LacsonLacson

Robust growth drives up power demand

By Lenie Lectura

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@llectura

the economy’s robust growth in the first quarter, which likely topped 2015’s fourth-quarter growth of 6.5 percent, helped boost demand for electricity in May, according to the Manila Electric Co. (Meralco).

Power sales in Meralco franchise areas grew 9.5 percent in May owing to strong demand recorded across all sectors, the company said. “ T he May MTD [month-to-date] stood at 9.5 percent, while the estimat-

PESO exchange rates n US 46.5630

ed YTD [year-to-date] will be around 12.1 percent,” said Alfredo S. Panlilio, Meralco senior vice president and head of customer retail services and corporate communications. Last week Meralco said sales in the first four months of 2016 “were very strong.”

“We’re going to end the first four months at 12.1-percent growth in sales,” Panlilio earlier said. He said power demand is being driven by a strong economy: “New hotels are coming up; the new cement plant of Eagle cement has been on stream. There are new

businesses coming up. Tiger Resorts is coming in the last quarter of the year.

There are a lot of new customers coming in, big and small, that might still push growth.”

In the months ahead, however, sales growth may be dampened by lower demand coming from the residential segment, which was the most significant contributor to the increase in energy sales in the first quarter of the year.

The lower demand could be a result of cooler temperature.

ERE is an interesting series of articles for the incoming Duterte administration, particularly for Alfonso G. Cusi, the energy secretarydesignate, who, many people may not remember now, played a relatively successful role in the Arroyo regime running the premier Ninoy Aquino International Airport and its multibillionpeso complex.

That the gravely damaged energy sector—arguably the favorite playground for white-collar plunderers and grafters for the past 30 years and, in effect, continued to bedevil the consuming public and the economy—no doubt needs some radical changes.

Some of the stark details in this series were extracted from the book A Country Imperiled— Tragic Lessons of a Distorted History (pp. 199 to 234), written by this author and published in 2011 by Amazon in the US, one of the world ’s largest bookmakers.

Continued on 4

See “Growth,” A2

n japan 0.4278 n UK 67.1764 n HK 5.9927 n CHINA 7.0742 n singapore 33.8566 n australia 33.6604 n EU 51.9317 n SAUDI arabia 12.4165

Source: BSP (3 June 2016 )

BMReports BusinessMirror

A2 Saturday, June 4, 2016

UK to challenge any China move to restrict South China Sea access

T

By Recto Mercene

@rectomercene

he United Kingdom will leverage its clout as a member of the UN Security Council to launch its own protest against the plan of China to establish an airdefense identification zone (Adiz) over the newly reclaimed islands in the South China Sea (West Philippine Sea).

“We are very clear on this when our foreign affairs secretary came here, he said that as far as the UK is concerned, it was a red flag, meaning that it was unacceptable to the UK, any kind of restrictions, like freedom of navigation by air or sea,” Ambassador Ahmad Asif said.

Asked what he meant by red flag, Asif said: “As a member of the UN Security Council, we have the leverage to launch our own protests and our views. It means simply not complying with any request to make ourselves identified because it’s not requested by international law.”

Asif was reacting to China’s plan to establish an Adiz in the South China Sea, which was exposed by the South China Morning Post (SCMP) days ago.

The Post said: “China is preparing an air-defense identification zone in the South China Sea, two years after it announced a similar one in the East China Sea, according to sources close to the People’s Liberation Army and a defense report.”

According to the Hong Kong-based newspaper, the source of the story said: “The timing of any declaration would— depend on security conditions in the region, particularly the United States’s military presence and diplomatic ties with neighboring countries.”

“If the US military keeps making provocative moves to challenge China’s sovereignty in the region, it will give Beijing a good opportunity to declare an Adiz in the South China Sea,” the Post said, quoting its source.

The US provocative moves China was referring to were the several fly-bys of

As a member of the UN Security Council, we have the leverage to launch our own protests and our views.”—Asif US reconnaissance planes over the contested islands in the last two years.

This includes the innocent passage of US warships within 12 miles of reclaimed lands to demonstrate US’s resolve to ignore the new boundaries being set up by Beijing in the resourcerich waters, where some $5 trillion worth of global trade passes through.

The Post’s revelation came ahead of the Shangri-La Dialogue in Singapore, a security forum attended by defense officials from various nations, including Admiral Sun­Jianguo and US Secretary of Defense Ash Carter. Disputes in the South China Sea are expected to head the agenda of the three-day event, which started on June 3.

Asif outlined some of the reasons China might or might not want to implement an ADIZ over the South China Sea. “No doubt, given this well-timed report from the SCMP, US and Chinese officials will privately and publicly discuss this issue at the upcoming Strategic and Economic Dialogue in Singapore, at the 2016 Shangri-La

Dialogue. If China is truly planning on implementing an Adiz in the South China Sea, the decision may have already been made, simply awaiting an announcement. If that announcement should come—perhaps later this summer or later this year—we won’t be able to say we didn’t see it coming.

If the announcement never comes, perhaps, everyone can focus on the more important question of reducing tensions in the South China Sea.” The US was unequivocal on the matter: “Washington will not accept a Chinese Adiz over the South China Sea.” This was the warning aired by US Defense Secretary Ashton B. Carter when he spoke about the issue during his visit here in December 2013, a few weeks after the East China Sea Adiz had been declared.

“Today, I raised our deep concerns about China’s announcement of an East China Sea air-defense identification zone. I told the foreign secretary that the United States does not recognize that zone and does not accept it.

The zone should not be implemented, and China should refrain from taking similar unilateral actions elsewhere in the region and, particularly, over the South China Sea.” China set up its first Adiz in the East China Sea in November 2013 to cover the Diaoyu Islands, which Japan calls the Senkakus. Both countries claim the uninhabited outcrops, but Tokyo controls them. The Adiz triggered a backlash from Japan, South Korea and the US.

Growth. . .

Continued from A1

“With the onset of the rainy season, there might be an impact on sales because of the cool weather, but it is too early to say how it will end up by yearend,” Panlilio said.

From January to March this year, energy sales volume stood at 9,077 gigawat hours (GWh), 12 percent higher than last year’s 8,092 GWh. This is the highest volume posted since July 2010.

A report in Canada-based Kanwa Defense Review said Beijing had defined the area of the Adiz in the South China Sea, and the timing of the announcement would be a political decision.

The report said the new Adiz would be based on the exclusive economic zone (EEZ) of Woody Island and China’s seven new artificial islands in Spratly, or 200 nautical miles from the islands’ baseline. “China’s new Adiz will overlap with the EEZs of Vietnam, the Philippines and Malaysia, which are also planning their own Adiz—with US backing—if China ­announced it,” Kanwa editor in ­chief Andrei Chang said.

A Shanghai-based military commentator said the seven artificial islands in the Spratly chain had laid the foundations for China to establish its Adiz in the South China Sea. In this connection, China’s defense minister, in a written response to the SCMP on the zone, said: “It was the right of a sovereign state to designate an Adiz.”

“Regarding when to declare such a zone, it will depend on whether China is facing security threats from the air, and what the level of the airsafety threat is,” the statement said.

But Beijing-based naval expert Li Jie said there are signs that regional tension would ease once President-elect Rodrigo R. Duterte has taken his oath as president.

President Xi Jinping sent a congratulatory message to Duterte on Monday, saying China hoped “the two sides can work together to bring bilateral relations back on a healthy track.”

Last week Meralco announced it would borrow between P10 billion and P15 billion to partly fund its capital expenditure (capex) for Regulatory Years (RY) 2016 and 2017.

“With our capex approved, while we have cash, there is a need definitely for us to borrow,” Meralco CFO Betty Siy-Yap said. The Energy Regulatory Commission recently approved Meralco’s RY 2016 capex at P15.47 billion, lower than the P17 billion it applied for.

For RY 2017, Meralco applied for a P15.2billion capex program.

news@businessmirror.com.ph

DTI-Region 3 Supports Action of its Official on the Imported Deformed Steel Bars

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EPARTMENT of Trade and Industry (DTI)-3 Regional Director Judith P. Angeles denies the allegations of the Philippine Iron and Steel Institute (Pisi) accusing DTI-Provincial Director Leonila T. Baluyut for graft charges before the Office of the Ombudsman.

The said allegations, according to Angeles, are baseless, malicious and incriminating in nature.

Angeles further said that Baluyut had acted within the mandate and bounds of the law, rules and regulations being implemented by the DTI. “I can’t see any irregularity in the performance of duty of Baluyut as far as the issuance of the provisional/conditional import commodity clearance to the applicant Mannage Resources Trading Corp. [MRTC]. Baluyut’s actions from the receipt of the application for import commodity clearance to its issuance is sanctioned by the provisions on the laws on import commodity clearance.”

As to the allegations that DTI-Zambales Provincial Office did not subject to thorough tests and industry-accepted safety standards the said imported deformed steel bars, Angeles said this is without merit. Clearly, the testing of these products shall be conducted by an independent testing center, as in this case the Metals Industry Research and Development Center (MIRDC) of the Department of Science and Technology (DOST ).

“Further, considering that the Test Report issued by SGS-CSTC [Standards Technical Services Co. Ltd.] and MIRDC showing compliance with the requirements of the standards, the Bureau of Philippine Standards [BPS] endorsed the same to DTI-Zambales Provincial Office for the issuance of the import commodity clearance. Evaluation of the Test Report is enshrined to BPS and not to DTI-Zambales Provincial Office”, Angeles added.

Angeles reiterated that Pisi’s unsubstantiated and defamatory accusations against Baluyut is hereby condemned to the highest level by DTI-Region 3 family. Pisi actuations against Baluyut is a trial by publicity and she welcomes the filing of the said graft charges in order to prove Baluyut’s innocence and the regularity in the performance of her official duty as DTI provincial director in a proper forum. As of this writing, Baluyut has not received any copy of the Complaint against her as published by Pisi.

P-Noy. . .

Continued from A1

showcase of military assets for the Independence Day rites could feature the newly acquired vessels of the Philippine Navy, particularly the Philippines’s first strategic sea-lift vessel named BRP Tarlac earlier this week. Mr. Aquino considers the modernization of the Armed Forces of the Philippines (AFP) as part of his legacy as President, as it was during his term that the world saw an aggressive reclamation and construction projects by China in the disputed South China Sea, backed up by Chinese military buildup in the area.

The Philippines has ruled out going to war over the disputed territories, and has opted to institute an arbitration case against China, but the previous lack of military equipment made it difficult to assert sovereignty and economic rights even over areas indisputably within Philippine territory.

The assertiveness of China over the disputed territories in the South China Sea has prompted many Asian countries, including the Philippines, to ramp up military spending, and international observers believe that by 2020, total military spending in the Asia-Pacific region will be on a par with that of North America. Independent research organization Stockholm International Peace Research Institute said in a study that Philippine military spending for 2015 amounted to 1.3 percent of GDP and constituted 6.6 percent of total government spending for that year.

During the commissioning ceremonies for BRP Tarlac this week, Mr. Aquino summarized the improvements in the capabilities of the AFP. The BRP Tarlac, a strategic sea-lift vessel, is one of two such vessels acquired from Indonesia and has a standard load capacity of 7,200 tons, which is the biggest among all Philippine military vessels. It has a wide range of uses, from transporting soldiers to evacuating refugees, and may house up to three helicopters to serve as a mobile headquarters for military and civic missions.

“Since July 2010 until this May, for the AFP Modernization and Capability Upgrade Program, we have released a total of P60.14 billion. This is almost double the funds allocated for the same purpose during the past three administrations,” Mr. Aquino said. “During the said period, we have finished 68 projects, compared to 45 projects completed during the past three administrations,” he added.

According to the Department of Budget and Management, aside from the 12 FA-50 fighter jets, the Aquino administration had acquired two Hamilton-class cutters and eight Bell 412 Combat Utility Helicopters.

Another Hamilton-class cutter is expected to be delivered from the United States soon. Two brand-new frigates have already been acquired from India, and two more antisubmarine warfare-capable helicopters from Italy. The Philippines has also acquired from the US the RV Melville, the Philippines’s first oceanographic vessel which has been named BRP Gregorio Velasquez and will help develop the government’s antisubmarine-warfare capability and gather marine scientific data. For the 2016 budget, the government had allocated P25 billion for the AFP Modernization Program, on top of the P62.78-billion allocation to maintain military assets of the army, navy and air force.

news@businessmirror.com.ph

briefs Puerto Princesa to open 6 new ecotourism sites PUERTO PRINCESA CITY—Six new ecotourism tour sites will be opened in Sitio Sabang, Barangay Cabayugan, the home of the Puerto Princesa Underground River (PPUR).

PPUR Supt. Elizabeth Maclang said they are now processing the permits and documents, such as the sites’ Strategic Environmental Plan (SEP) Clearance, and guidelines that the communities need to follow to be able to operate and maintain these sites.

These ecotourism sites are Lion’s Cave near PPUR, which will be made into a museum; Isla Phenomena; Mount Bloomfield; Sabang Falls; Daylight Hole; and Wonder Cave in Barangay Tagabinet. Maclang said on Thursday that, although they are in for the long haul in obtaining the required documents and permits to open the sites, they are doing everything to comply with opening deadline before the end of the year.

The sites will be part, she said, of the Community-Based Sustainable Tourism (CBST), whose management is handled by members of the communities where the ecotour sites are located. It can be recalled that just recently, the Hundred Caves in Barangay Tagabinet was launched as an ecotour site through the City Tourism Office (CTO) with the support of Pilipinas Shell Foundation Inc. (PSFI) and other private-sector members.

CBST is a special brand of tourism based on small travel enterprises that are managed and owned by local and indigenous peoples. PNA

PHL to benefit from Taiwan’s New Southbound Policy The Philippines is seen to benefit from the New Southbound Policy of Taiwan, Taipei Economic and Cultural Office (Teco) Representative to the Philippines Gary Song-Huann Lin said on Thursday.

At the sidelines of the launching of the third Taiwan Excellence here, Lin said the Philippines is a priority country for Taiwan in its New Southbound Policy being pushed by the new leadership of Taiwanese President Tsai Ing-Wen. Lin mentioned that with the Southbound Policy, Taiwan aims to strengthen cooperation with the Philippines in areas of trade, investments, economic relation, agriculture, information and communications technology, education and fishing agreement culture, among many others.

He added that more Taiwanese firms are eyeing the Philippines for investments and business partnerships.

Among the recent investments of Taipei-based firms in the Philippines include the expansion of New Kinpo Group, Cathay Life’s purchase of a 20-percent stake in Rizal Commercial Banking Corp., and the joint venture of Taiwanese and Philippine operators of 7-Eleven convenience store. The Teco envoy added that Taiwan remains interested in an economic cooperation Agreement with the Philippine government.

Moreover, Lin mentioned that Taiwan and the Philippines are gaining benefits from an amended air-service agreement. He noted that the agreement has boosted number of flights between Taiwan and the Philippines by four times. Currently, there are 50 flights per week between the two countries. PNA

Zambo City allots P40.8M for road-widening projects ZAMBOANGA CITY—The local government has allotted P40.8 million for widening of roads in a bid to ease the flow of vehicular traffic, especially within the city proper. Dr. Elmeir Jade Apolinario, OIC-city administrator, said among the roads to be widened are the intersections at the Santa Cruz Commercial Complex and Barangay Lunzuran, as well as the Governor Camins Avenue.

Apolinario said the widening of the intersection at the Santa Cruz Commercial Complex will cost P10.1 million.

The intersection serves as the main entry point of vehicles into the city proper coming from the east coast.

Apolinario, who is also the city disaster risk-reduction and management officer, said the widening of the intersection will include concreting of the 3,347-square-meter road in the amount of P7.4 million, sidewalk (579.16 sq m) P694,992 and a 252.31sq-m fence at P2 million. PNA

Economy BusinessMirror

Editors: Vittorio V. Vitug and Max V. de Leon • Saturday, June 4, 2016 A3

Foreign, local investments in Q1 to create 59K+ jobs–PSA data

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By Cai U. Ordinario

@caiordinario

he total approved foreign and Filipino investments in the first quarter of 2016 is estimated to generate nearly 60,000 new jobs, according to the Philippine Statistics Authority (PSA).

PSA data showed that the P99.5 billion worth of total approved investments in the first quarter will generate approximately 59,324 new jobs.

This represents an increase of 31.3 percent from the 45,197 potential jobs estimated to be generated in the same period last year, but was significantly lower than the 169,075 new jobs expected to be generated from approved investments in the fourth quarter of 2015.

“Approved foreign [and Filipino] investments represent investment commitments and pledges by foreigners [and locals] regardless of the percentage of ownership of the ordinary shares, which may be realized in the near future,” the PSA said.

₧99.5B

The amount of total approved foreign and local investments in the first quarter of the year

The data on approved investments were obtained from pledges received by the country’s seven investment-promotion agencies (IPAs).

The IPAs are the Board of Investments (BOI), Clark Development Corp. (CDC), Philippine Economic Zone Authority (Peza), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport Area of Bataan (Afab), BOI-Autonomous Region in Muslim Mindanao (BOIARMM) and the Cagayan Economic Zone Authority (Ceza).

Of the projected employment during the quarter, 65.1 percent would come from the Peza, with 38,636 prospective jobs.

Investments approved by the BOI would supply 21.6 percent, or 12,841 jobs, while investments under the

Afab, BOI-ARMM, CDC and the Ceza would jointly share 9.3 percent, or 5,499 prospective jobs.

Ventures approved by the BOIARMM are seen to generate 2,000 potential jobs, increasing by around three times compared to previous year’s 553 jobs.

Similarly, prospective employ-

ment from SBMA-approved projects grew by elevenfold, reaching 2,348 jobs during the quarter.

Projected employment from investments approved by the Peza and the Afab grew by 70.5 percent and 75 percent, respectively.

Meanwhile, projected employment from investments approved by the BOI, CDC and the Ceza declined by 29.3 percent, 12.6 percent and 50 percent, respectively.

In terms of industry, 28.8 percent, or 17,085, of these new jobs will be in manufacturing, while 27.6 percent, or 16,354 jobs, will be in administrative and support-service activities.

Real-estate activities, meanwhile, would bring in 10,084 new jobs, or 17 percent of the total expected jobs.

The total approved foreign and Filipino investments in the first

quarter grew 3.1 percent, from P96.5 billion registered in the first quarter of 2015. The PSA said pledges from Filipino nationals stood at P73.5 billion, which accounted for 73.9 percent of the total approved investments during the quarter.

“Investment pledges by Filipino nationals in the first quarter of 2016 dipped by 1.6 percent to P73.5 billion, from P74.7 billion in the first quarter of 2015,” the PSA added. The data was based on the 75th quarterly statistics report on foreign investments (FI) in the Philippines.

Approved FI represents the amount of proposed contribution or share of foreigners to various potential projects in the country as approved and registered by the IPAs. This consists of equity, loans and reinvested earnings.

ERC to Meralco: Support reforms in power sector

By Lenie Lectura

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Undertaker A worker manually excavates a portion of a road in Quezon to give way to the installation of flood drainage pipes with the onset of the rainy season. Alysa Salen

Mindanao LGUs condemn NGCP tower bombings

V

arious cities in Mindanao have unanimously declared their support for a resolution of the Sangguniang Panlalawigan of Misamis Oriental, condemning the spate of National Grid Corp. of the Philippines (NGCP) tower bombings, and urging the government to employ measures to ensure adequate power supply.

Representatives of the Sangguniang Panlungsod of the cities of Dapitan, Oroquieta, Zamboanga, Cotabato and Malaybalay issued resolutions acknowledging the detrimental effect of tower bombings, particularly that of Tower 25 in Ramain, Lanao del Sur, which isolated the Agus hydroplants from the grid, to the already-vulnerable socioeconomic and peace-andorder situation of Mindanao.

“NGCP welcomes the support of our partner local government units [LGUs] to ensure the safety of our lines. We are confident that this is only the beginning of a strong partnership

between NGCP and the government and its agencies in finally putting a stop to tower bombings, and allow the safe and reliable delivery of power to the people of Mindanao,” NGCP said.

Resolution 09-2016 was issued by the Sangguniang Panlalawigan ng Misamis Oriental, entitled “A Resolution Strongly Condemning the Bombings of the Power Transmission Towers of the National Grid Corp. of the Philippines in Mindanao and Urging the National Government to Take Urgent Action to Include the Declaration of A State of Emergency in the Affected Areas” and “Strongly Urging the Commission on Elections and the national government to take immediate action and employ proactive and significant measures to prevent the destruction and the collapse of the Mindanao power grid in light of the recent bombings of the transmission towers of the NGCP in order to secure the availability and continuous supply of electricity....”

Copies of the resolutions were forwarded to the offices of the President, Vice President, Senate President, Speaker of the House of Representatives, chairmen of the Committee on Energy of the Senate and the House of Representatives, Department of Energy, Armed Forces of the Philippines, Philippine National Police and the Commission on Elections. NGCP is a privately owned corporation in charge of operating, maintaining and developing the country’s power grid.

It transmits high-voltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations and related assets.

The consortium, which holds the 25-year concession contract to operate the country’s power-transmission network, is comprised of Monte Oro Grid Resources Corp., led by Henry Sy Jr.; Calaca High Power Corp., led by Robert Coyiuto Jr.; and the State Grid Corp. of China as technical partner. Lenie Lectura

@llectura

he Energy Regulatory Commission (ERC) on Friday said the Manila Electric Co. (Meralco) should support reforms in the power sector.

The regulator was reacting to Meralco’s petition for declaration relief filed before the Regional Trial Court (RTC) in Pasig City Branch 157 last week.

Meralco is asking the court to issue a temporary restraining order (TRO), and subsequently a writ of preliminary injunction (WPI), enjoining the Department of Energy (DOE) from enforcing a circular, and enjoining the implementation of ERC resolutions.

The circular and resolutions on the implementation of the Retail Competition and Open Access (RCOA) basically prohibit distribution utilities (DUs) like Meralco from participating in the competitive retail-electricity market as a supplier.

ERC Chairman Jose Vicente Salazar said he finds no strong reason “for Meralco to block a mechanism that would be good for the retail customer base in its present service area.”

RCOA marks a major milestone in the country’s bid to make electricity rates more affordable to end-users, he added.

“RCOA is designed to change the current situation, where customers do not have the choice as to who will supply their power requirements and are dependent on utilities designated purely on the basis of geographical territory,” Salazar stressed. “This is why they are technically termed ‘captive customers.’”

Under RCOA, customers with monthly average peak demand of at least 1 megawatt (MW), dubbed as contestable customer (CC) by the ERC, are now able to choose the supplier of their choice for their energy requirement. These suppliers, or retail electricity supplier (RES), will directly negotiate and contract on a wholesale level with power-generation companies so they can sell electricity to contestable customers at competitive rates. These rates will be reflected in the generation-charge portion of the bill, which typically comprises at least 50 percent of the monthly electricity bill.

MPower, Meralco’s local RES, accounts for about 50 percent of the market share of the contestable market within its franchise, or 18 percent of the national total.

Salazar said RCOA is a big step toward “putting the power of choice of electricity supplier in the hands of the customers.”

“Through RCOA, more ‘captive customers’ will be able to graduate into the so-called contestable market, where all retail-electricity suppliers compete,” Salazar added.

“I am confident that Meralco will see that RCOA is good both for its customers and its business,” he added.

Salazar pointed out that the direction of the power sector is to spur competition to bring down the power rates.

“The power sector has already taken big steps in this direction, particularly with the implementation of the Competitive Selection Process [CSP],” he said.

The CSP requires all distribution utilities to conduct an open and competitive process in selecting the power-generating company from whom they are to purchase their supply for the captive markets.

Salazar expressed hope that “Meralco will rethink its current position against RCOA.” “We can no longer set back gains of the power sector—it can only move forward and the direction is clearly that of competition,” he said.

A4 Saturday, June 4, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Everybody loves Asean

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he Association of Southeast Asian Nations (Asean) is the most unlikely and, yet potentially, the strongest of all confederations of this type in history. Some 625 million people in 10 countries, speaking 10 national languages, following every major global religion, divided by mountains, rivers and vast tracks of ocean, but united for a common purpose: to create “A Community of Opportunities.”

This whole “Asean” experiment sounds like a bad advertising campaign for an even worse product. When leaders of individual nations talk about trade initiatives in the region and particularly “Asean integration,” they all sound like the “big dog” already plotting to grab the meaty bone and run away. Vietnam and the Philippines are fighting China over territorial claims, but also each other. Malaysia interferes in the Philippines’s southern region, and yet wants more access to the Filipino consumer.

However, at the end of the day, Asean members know in this dangerous world of geopolitics and geoeconomics, “We must all hang together or, assuredly, we shall all hang separately.” Because of the potential in the region and its nations, everybody loves Asean, which is both a benefit and a curse.

Taiwan has just elected as its president Tsai Ing-wen, who is strongly “anti-China.” On her first full day in office, she created a new relationship with Japan to bilaterally resolve maritime disputes, including fishing rights in “disputed areas.” Her goal is to lessen Taiwan’s economic dependence on China. During her first week, she set up an office to coordinate her “New Go South” initiative, intending to boost economic ties with the countries of Asean.

Last month Russian President Vladimir Putin hosted a multilateral summit recognizing the 20th anniversary of Asean-Russia Dialogue Partnership, held for the first time on Russian soil. While Russia is a close ally of China, Putin knows that he cannot afford to let China have the Asean region to itself. In addition, Russia cannot fully support China’s territorial position, and still expect to build a strategic partnership with Asean.

The US needs Asean to counterbalance China’s regional influence. The Trans-Pacific Partnership is critical for the US to more easily penetrate the Asean market. Further, China’s Asian Infrastructure Investment Bank is a direct challenge to America’s financial power in the region.

The problem of China on one side and the US on the other, each pulling for the loyalty of the Asean nations, is a threat to the alliance. And this is an opportunity of the Philippines.

Despite the sometimes contentious relationship the Philippines has had with both the US previously and China currently, no other Asean nation (except, perhaps, Singapore) has had the long and deep ties that the Philippines has with both the “superpowers.” The Duterte administration needs to step up the Philippines’s engagement and leadership in Asean far beyond hosting an annual meeting.

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John Mangun

OUTSIDE THE BOX

A

lthough without any genuine scientific proof, it was assumed that the universe was pretty much stable and steady.

The religious analogy might be along the lines of “As it was in the beginning, is now, and forever will be.” The one critical point of this cosmological theory was that matter had to be continuously created to keep the universe from sort of collapsing on itself.

Then in 1965, the discovery of cosmic microwave background radiation blew away the “Steady State” idea to “In the beginning, there was a Big Bang.” The simplistic key to the deal here is that the stuff in the universe sometimes had to explode, while other stars had to cool and die.

Unfortunately, too many people think that economics follow the Steady State theory when, in fact, it is all Big Bang.

The Philippines has had good times in the past 10 years. The

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Arroyo administration reduced foreign borrowing to the point where when the global financial crisis hit and no borrowing was available, the government could tap the domestic market and stay alive. Regardless of the opinion that the call-center business boom was due to The Godfather, that, too, was a bit of dumb luck. In 2008, when the industry suddenly exploded, it was because companies, particularly in the US, were looking for any means to reduce costs, and customer service

was the easiest place to start.

Decisions from boardrooms in the US to outsource to the Philippines came down to “If there are not too many fire-breathing dinosaurs roaming around, the Philippines looks great!” I know. I was there.

The Philippine economy was not dependent on exports to the West, when suddenly consumers were living in their cars after having been evicted from their homes for not paying their mortgages. We were not dependent on tourism dollars like Italy, which saw revenues drop 17 percent from 2007 to 2010.

But to use another silly analogy, economies are not fortified stone castles built on a hill. They are more like a house of cards. Just ask the US or China about the permanence of a strong and growing economy. Even Singapore has been drifting in and out of quarters of no-growth these past years.

The secret of a good economy is like that of a house of cards; a stable foundation. A nation needs strong and consistent economic fundamentals. But when building a house of

cards or an economy, you must be ready and able to make adjustments.

There is an attitude in the Philippines right now that everything has been going along nicely, so there is no reason to make any changes.

Possibly, any changes could be disastrous. The economy is doing fine... for now. But current government policies in the West, China, Japan and other economies like India are going to change, because they are not doing well no matter what you read in the headlines.

The Duterte administration is going to have to be ready to make adjustments quickly, and I believe that they will. I have confidence in the economic team coming in. However, one reason that the last years have been good is that the global government economic policies have been Steady State and I think we are nearing a Big Bang.

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

Why oil prices and power rates keep on rising nancial strength and capacity to tap possible sources of power, particularly in nuclear-power development.

Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos

Online Editor Social Media Editor

Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager

Economic Big Bang

Cecilio T. Arillo

database Continued from A1 To answer the question why oil prices and electricity rates keep on rising, let us first take a look at the country’s energy situation for 12 years, a specific period covered by President Marcos’s total energy plan for the country made successful by the right combination of regulated policies that protected the consuming public and saw the steady, lowcost supply of oil and cheap electricity.

In that period (1973-1985), the Marcos government, based on indisputable government records, had succeeded in reducing the country’s dependence on Middle East oil from 92 percent in 1973 to 71 percent in 1980, and further to 57 percent in 1984. By 1985, the Philippines was the world’s second-largest user of geothermal power, next to California, resulting further to a 44percent reduction of the country’s dependence on imported oil worth billions of pesos.

To attain its ultimate objective of total electrification of the country, the Marcos government had as its arm the National Power Corp. (NPC). Established in 1936

by President Manuel L. Quezon under Commonwealth Act 120, NPC reached a significant landmark in

its corporate existence with the enactment of Republic Act 6395 in the second term of the Marcos regime in 1971, giving birth to a revised charter for NPC. Marcos, recognizing the power industry as the backbone of economic progress, issued Presidential Decree (PD) 40 that paved the way for the setting up of island grids with generating facilities and cooperatives for the distribution of power, mainly in the country’s rural areas.

In 1972 Marcos authorized NPC “to own and operate, as a single integrated system, all generating facilities supplying electric power to the entire area embraced by any grid set up by NPC.” Targeted to be integrated in this system were all Manila Electric Co. (Meralco) generating units. After a long series of selling negotiations by the Lopez family, a contract was finally signed, and the government purchased Meralco’s power-generating units at P1.1 billion. The acquisition of Meralco’s thermal plants was in line with NPC’s plan to centralize all generating capacities in Luzon as part of the so-called Luzon grid.

In another breakthrough move, Marcos increased the capitalization of NPC to P50 billion in 1978 through PD 1360, thus it catapulted NPC’s fi-

A sleeping giant

AS a response to the 1973 global oil crisis, President Marcos was determined to build a nuclear power plant that shall supply the country’s energy demands and further decrease our dependence on imported oil. Thus, the construction of the Bataan Nuclear Power Plant (BNPP) began in 1976.

When the BNPP was finished in 1984 with its cost totaling to $2.3 billion, it was one of the most state-of-the-art nuclear-power station in the world. The BNPP was designed to withstand an intensity-8 earthquake in the Richter scale, making it sturdier and safer than the Fukushima power plant in Japan, which in 2011 survived an intensity-7 earthquake before the subsequent tsunami hit.

If the plant had operated, it would have produced 621 megawatts of electricity, enough to power at least 10 percent of the present power requirements for the Luzon grid. It would have addressed our looming energy crisis. It could have ushered the country into nuclear power, and brought our economy at greater heights.

However, this facility, sitting on a 369-hectare property in Morong, Bataan, remains idle from the time of its completion in 1984 until today.

It is a “sleeping giant,” reduced into an artifact for tourists to see, buried in years of misguided priorities and baseless fear.

Down the drain The so-called People Power Revolution in 1986 overthrew Marcos. With the BNPP standing as a Marcos regime relic, the unfounded allegations of overprice in BNPP construction and the 1986 Chernobyl disaster as a horror story, the succeeding administration of President Corazon Cojuangco Aquino decided to leave the giant sleeping. Yet, because of President Aquino’s rigid mandate to “honor all debts,” the Philippines spent P120 billion in principal and interest charges for the BNPP, which never produced a single kilowatt of electricity.

Four months after the Edsa Revolution, exactly on June 19, 1986, President Cory Aquino’s government, likewise, deliberately abolished the Ministry of Energy and placed the multibillion-peso Philippine National Oil Co., a successful Philippine firm featured successively in Fortune’s 500 Best Corporations, under the administrative supervision of the Office of the President.

As a consequence, the long-term total energy plan for the country went down the drain after the Aquino regime corrupted, dissipated and privatized its multibillion-peso money-making corporations and subsidiaries, including NPC and the highly profitable Petron that served as a buffer against foreign oil production and distribution monopoly. Petron then controlled 40 percent of the country’s fuel-distribution network.

To be continued

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

Opinion BusinessMirror

opinion@businessmirror.com.ph

Saturday, June 4, 2016 A5

Iloilo City ready and able 14th Marian exhibit opens at SM North Edsa to do business globally Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Jemain Tinio Diaz de Rivera

Forward Moving

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N its glory days, Iloilo City was called the Queen City of the South. It was the last Spanish-colonial capital of the Philippines.

Today, you will see remnants of its splendid past amid its bustling environment and new highways.

The city is dotted with beautiful old churches, such as Molo, Jaro and Iglesia de San Jose de Placer. Last year I enjoyed a peaceful stroll downtown viewing the old colonial buildings along Calle Real, documenting architectural details.

When it showered, we feasted on a local specialty of La Paz Batchoy—a noodle soup made from shrimp, chicken, pork, vegetables and chicharon. Fresh seafood grilled and served along the beach is a common experience. On weekends a popular gateway activity is skimboarding and swimming.

Some go there for vacation. Others, however, fall in love with the place and choose to relocate to Iloilo to invest, work and enjoy life. The Information and Communications Technology Office of the Department of Science and Technology (DOST-ICTO) noted that Iloilo City has around 20,000 full-time employees in the information technology and business-process management (IT-BPM) industry. nnn Today Iloilo City is a hub for trade, commerce, finance, technology, medical tourism, real estate, tourism, education and IT-BPM in the Western Visayas region. The local government provides incentives to businesses in certain investment areas, such as income-tax holidays and free issuances of permits and licenses. Under the leadership of reelected city Mayor Jed Patrick E. Mabilog, hopes are high that local government units and industry partnerships will continue and expand. nnn The IT-BPM industry spurred employment. Industry locators find Iloilo attractive because of the high literacy rate and the number of graduates per year.

Being the center of education in Western Visayas, the city and the province of Iloilo has a total of 10 major universities, such as the Central Philippine University, University of the Philippines Visayas, West Visayas State University, Iloilo Science and Technology University, University of San Agustin, University of Iloilo, St. Paul University Iloilo and John B. Lacson Foundation Maritime University.

Iloilo is home to numerous private colleges and schools. The Department of Education-Division of Iloilo City covers 88 private schools and 52 public schools. nnn The DOST-ICTO and IT and Business Process Association Philippines, elevated Iloilo City from Top 10 Next Wave Cities to one of the New Centers of

Excellence. Iloilo is able to host IT-BPM companies on the basis of availability of talent and relevant infrastructure, and is competitive with Bacolod City, Davao City, Metro Cebu, Metro Clark, and Metro Manila in terms of providing good investment opportunities.

It has a number of IT and global service centers. Among them are the Iloilo Ayala Techno Hub, Amigo Plaza Mall, SM City Iloilo estates and Plazuela de Iloilo, which houses IT-BPM companies. Other industry centers are in Iloilo International Business Park at the Sta. Barbara Heights and Iloilo Business Park, both

by Megaworld Corp. and the Iloilo City Center by the Gaisano Group. nnn The city’s urban planning and infrastructure includes the Iloilo International Airport, which is the fourth busiest in the Philippines. It opened to commercial traffic on June 14, 2007. The new airport inherited its International Air Transport Association and International Civil Aviation Organization Aiport codes from its predecessor. nnn The Iloilo Convention Center is a stateof-the-art venue in the Iloilo Business Park in Mandurriao. Its construction was completed last year in time for the Asia-Pacific Economic Cooperation 2015. It was designed by Ilonggo Arch. William Coscolluela, and inspired by Iloilo’s Dinagyang and Paraw Regatta festivals. nnn For sports and recreation, you will find Iloilo Sports Complex, a major sports venue with a 10,000 capacity stadium, a rubberized track oval, a football field, a soccer field, an Olympic-sized swimming pool, volleyball courts, basketball courts, tennis courts, badminton courts and gymnasium. nnn For power and energy, a 72-megawatts diesel-fuel power plant operated by Panay Power Corp. and a 164-MW coal power plant operated by Panay Energy Development Corp. provides power generation for the city. There are plans for a third coal-fired power-generation facility. The newest generator will help supply additional power for Panay, Guimaras and Negros islands. nnn With an educated population, proper infrastructure and local government support, Iloilo City is now globally competitive and hopefully willing and able to plan with industry for the year 2022.

E-mail: jemain_diaz_de_rivera@yahoo.com.

The French press: Squeezed by labor strife, glum economy and wars

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rance (and anyone who travels there) is subject to a typically French duel between its Socialist government, which depends on the unions to remain in office, and the unions themselves. They are expressing themselves, as is their wont, through strikes, notably transport strikes.

This is not new, but that fact does not diminish the misery for the French population, subject to cuts in service in various essential areas. The discomfort produced by the strikes comes on top of the increased security measures imposed—understandably—by the French government in the wake of the terrorist attacks Paris has suffered.

The issues that are producing the strife include, notably, a government move to raise the pension eligibility age and to modify France’s 35-hour-perweek working week. The government’s professed desire is to make France’s production more competitive, in the process lowering its 10-percent unemployment rate. The unions’ leadership is absolutely obliged to try to preserve juicy conditions for its workers. All

French workers benefit from what the 8 percent in unions are able to achieve.

An end result of the conflict is that, as the French population comes to feel increasingly harassed by the denials of service, it blames the government, lowering the already sub-20-percent popularity ratings of President François Hollande and his prime minister, Manuel Valls. Elections are scheduled for next April; the Socialists will be in no hurry to move them up.

In the meantime, the French government is also being squeezed hard, apart from by the sagging economy, by its various overseas military commitments, besides the draw on its forces for security needs at home. It continues to maintain its interests in Africa by judicious postings of troops to the Central African Republic, Djibouti, Mali and elsewhere. The boots on the ground and the aircraft involved in these deployments are expensive. Since the French president does not need legislative approval of these forays, he is faced with less accountability, but the political vulnerability they constitute remains. TNS

“The Virgin Mary, cause of our joy, always brings us back to joy in the Lord, who comes to free us from so many interior and exterior slaveries.”—Pope Francis.

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he 14th Marian exhibit of the Church-run Radio Veritas will be held at SM North Edsa, Quezon City from June 6 to 20.

As Radio Veritas continuously propagates the devotion to Our Blessed Mother, the station will hold the Mary and the Saints in the Year of the Eucharist and the Family exhibit that will feature canonically crowned and popular venerated images of Mary from various parts of the country, as well as images of the saints with devotion to and writings

about the Eucharist and the family, such as Saint Therese, Saint Padre Pio and many others.

We encourage the Catholic faithful to visit and support the Marian exhibit and foster devotion to Mary Blessed Virgin, Mother of God and Mother of Church, because she is the path toward salvation and peace.

A formal opening and blessing of

the exhibit will be held on June 6, at 2 p.m. The exhibit is free and open to the public during mall hours from 10 a.m. to 10 p.m. For inquiries, please call Ms. Renee Jose or Mr. Rey Isabela at (02) 925-7932 to 39 local 129.

The Catholic Bishop’s Conference of the Philippines (CBCP) has set 2016 as the year of the Eucharist and Family as part of the nine-year preparation period for the celebration of the 500th Anniversary of the arrival of Christianity in the Philippines in 2021.Since 2013, the CBCP called us to focus on each of the Nine Pastoral Priorities of the Church in the Philippines for the New Evangelization.

Early this year, the International Eucharistic Congress, with the theme “Christ in You, Our Hope of Glory,” was successfully held in the Philippines, which gathered 15,000 delegates from all over the world.

The event was a gathering aimed at promoting awareness of the central place of the Eucharist in the life and

mission of the Catholic Church.

Last month Mary and the Saint Popes in the Year of Mercy exhibit was held at StarMall Las Pinas where popular images of Mary and the Papal symbols, images, as well as first and second class relics of the saint popes, were featured.

Radio Veritas 846, the No. 1 faith-based AM radio in the Philippines, is owned and operated by the Archdiocese of Manila.

Established in 1969, the Ramon Magsaysay recipient Catholic radio station continues to be the leading social communications ministry for truth and evangelization in the country today.

To know more about Caritas Manila, visit www. caritasmanila.org.ph. For your donations, please call our DonorCare lines 563-9311, 564-0205, 09997943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@gmail.com.

We’re still not sure what causes big recessions

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By Noah Smith | Bloomberg View

here is an important, but quiet debate in the economics profession about what leads to big recessions: wealth or debt.

Almost everyone agrees, at this point, that the Great Recession of 2007-2009 was caused by the financial system. But that leaves the question of what, exactly, happens in a financial system that leads an economy to crash. Formal economic models of financial shocks are not very realistic. They usually assume the harm comes from disruption to the banking system, which acts like a supply bottleneck that chokes off economic activity. But the Great Recession and similar episodes look very much like demand shocks, with low inflation and lots of spare capacity.

So economists are asking what kind of financial disasters have the biggest impact on demand. Roughly, the two answers are wealth effects and debt overhangs. The wealth-effects school holds that when asset bubbles pop, people suddenly feel poorer. This causes them to cut spending, which sends demand crashing. The debtoverhang school believes that people have sudden shifts in their willingness to take on debt—when they go into balance-sheet repair mode, they stop spending.

The argument between these two schools, fortunately, hasn’t been very politicized (yet). But it does have important policy implications. If wealth effects are the big culprit, then taming asset bubbles becomes the central task for recession prevention. If it’s debt that does it, the key is to stop households from borrowing so much.

The main evidence for the importance of debt overhangs comes from the observation that bubbles that involve lots of borrowing seem to cause more damage when they burst. This has been confirmed—as much as historical patterns can really be confirmed—by economists Oscar Jorda, Moritz Schularick and Alan Taylor. That would explain why the recession, following the 2000 stock-market crash, was so much milder than the carnage after 2008—though both involved similar-sized losses of paper wealth, the latter included much more borrowing. Paul Krugman, for example, embraces this reading of history. It’s also the idea of the balance-sheet recession, popularized by Nomura economist Richard Koo. Othersbegtodiffer.CenterforEconomic and Policy Research founder

Dean Baker says the collapse in wealth was much more important than the run-up in debt. He attributes the difference between 2000 and 2008 to the fact that the latter crash was a hit to middle-class wealth, while the former affected mostly the fortunes of the rich (who are less likely to cut back spending after suffering losses).

What does the academic literature have to say on the question of wealth versus debt? One of the most famous papers, by economists Atif Mian, Kamalesh Rao and Amir Sufi, found in 2013 that the fall in housing wealth had a big negative impact on consumption. But it also found that the effects of falling wealth were stronger for more indebted households.

The paper’s authors are, therefore, on the fence in the debate. They say that debt is dangerous—it enables greater speculation in boom times, which pushes prices up too much, only to fall later. They also say debt does a poor job of insuring against risk, and can lead to costly and inefficient legal processes like foreclosure.

But they stop short of endorsing the idea of balance-sheet recessions.

Other economists who have followed up on Mian et al., however, have come down more firmly on Baker’s side. For example, Greg Kaplan, Kurt Mitman and Giovanni Violante redid Mian et al.’s analysis using publicly available data. They focused

China is forgetting the keys to success

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By Michael Schuman | Bloomberg View

hina is arguably the valedictorian of Asia’s MBA program.

When Deng Xiaoping ditched the radical economics of Mao and steered China into the global economy beginning in the early 1980s, he borrowed liberally from programs and policies that had earlier ignited rapid growth in Japan, South Korea, Taiwan, Hong Kong and Singapore. The student quickly outshone the teachers, riding an export-led, investment-heavy strategy to years of double-digit growth.

Now, however, China’s President Xi Jinping appears to have misplaced his textbooks. Rather than continuing to heed the experiences of Asia’s tiger economies, he’s ignoring critical lessons at his—and China’s—peril.

Probably the key truism to emerge from the region’s postwar boom is that, if countries are to grow quickly, development must subsume all other priorities. Former South Korean President Park Chung-hee, who launched his country’s economic ascent, put it best when he wrote: “In human life, economics precedes politics or culture.”

What separated East Asia’s highgrowth economies from the rest of the developing world back in the 1960s and 1970s was their leaders’ single-minded—almost maniacal— commitment to raising incomes and building industries. Park would often sit in his office in Seoul’s presidential palace with a notepad, doing his own calculations with economic data.

True, these early leaders also had little time for the niceties of representative democracy. But at least, the policy-making process was shielded from political debates and hassles, giving experts the freedom to carry out reforms. By contrast, those countries that mixed other agendas into the process ultimately ran aground. Malaysia’s attempt to reengineer the nation’s social structure by promoting the economic interests of the Malay community helped strand the economy in a middle-income trap.

Xi has pushed economic reform too far down his to-do list. Instead, he’s devoted much of his attention and energy to an anticorruption campaign, a drive for ideological purity within the Communist Party, greater control over social media and civil society, and squabbling with neighbors over territorial issues. Rather than separating economic and political agendas, he appears to have placed the former

at the service of the latter.

A corollary of this is that leaders need to trust their technocrats. Even the strongest of strongmen, from Korea’s Park to Indonesia’s Suharto, relied on experienced, talented economists and other experts to devise and direct economic policy. In Indonesia Suharto eagerly took notes while his “Berkeley Mafia” of UStrained economic advisors lectured on sound policy. Singapore’s Lee Kuan Yew was blessed with a crack team of professional policy wonks, most notably Goh Keng Swee, one of the economy’s main architects. During Japan’s go-go years, the economy was effectively run by talented bureaucrats, not by elected politicians.

Technocrats certainly populate all rungs of the Chinese leadership and central bank; Premier Li Keqiang himself has a PhD in economics. But Xi has grasped more and more authority over policy-making in his own hands, effectively sidelining his deputy. The experts seem to have been reduced to writing papers laying out worthy reform proposals, only some of which are eventually heeded.

After a certain point, money can’t cover up for other mistakes. Much like China is doing today, policymakers in Japan flooded their economy with cash in the late 1980s in an attempt to avoid structural reform; the strategy only further inflated the bubble that led to the country’s

on areas where house prices declined more and checked to see if consumption fell more in those places. This team looked mainly at changes from 2006—before the epic housing collapse—to 2009, the trough of the recession.

Kaplan et al. found big wealth effects on consumption. Basically, when housing prices fall, people spend a lot less. But they didn’t find that housing leverage in 2006 had a measurable effect on consumption. And unlike Mian et al., they didn’t find that it exacerbated the wealth effect. Essentially, Kaplan et al. come down solidly on the side of the wealth-effects hypothesis, and against the idea of the balance-sheet recession.

So how can we reconcile the historical finding that debt exacerbates bubbles with the microeconomic evidence that the wealth effect was the biggest factor? One possibility is that Baker is right, and that housing bubbles—which generally involve more debt—simply hit the middle class harder than stock bubbles. If that’s the case, it means that much of our recent focus on household leverage might be misplaced. The real task for policy-makers might be not to restrain people from borrowing, but to keep their wealth from dropping precipitously. Preventing asset markets from bubbles and busts might, therefore, be our top policy priority to prevent a repeat of 2008.

years of stagnation. Nor have other Asian countries been all that successful in employing state-directed money to spur innovation, as Xi is attempting. The effort by Japan to “target” certain industries for development with special government support had as many failures as successes, while many of the most competitive Japanese industries, from video games to robotics, were never the beneficiary of state coddling.

This raises, perhaps, the most important lesson of all: Eventually, governments have to get out of the way. South Korea tumbled into a financial crisis in 1997 in part due to continued state manipulation of the financial sector; the gradual government pullback that followed has helped spur an explosion of entrepreneurship and innovation. In Japan, on the other hand, where bureaucrats have resisted letting go their grip on the economy, a lack of deregulation continues to crimp the economy’s potential.

Even though Xi has pledged to undertake a sweeping liberalization program, progress has been slow, especially in the reform of critical areas, such as the financial sector and capital flows. Even more, Xi has made it clear that the government intends to retain the “commanding heights” of the economy, merging and bolstering state enterprises, for instance, rather than letting them die a natural death.

News

BusinessMirror

A6 Saturday, June 4, 2016 • Editor: Dionisio L. Pelayo

news@businessmirror.com.ph

Duterte not yet off the hook for rape joke

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By Jonathan L. Mayuga @jonlmayuga

RESIDENT-ELECT Rodrigo R. Duterte, who will soon be sworn in as the country’s 16th president, may still face administrative sanction for his rape joke that caused public uproar during the presidential campaign.

receipt of the authority from the OP, we should be able to determine whether there is probable cause to warrant the conduct of formal administrative proceedings,” he said.

If there is no probable cause, Sarmiento said the DILG will recommend to the OP the motu proprio dismissal of the case.

On the other hand, if probable cause exists, the DILG shall set the case for preliminary conference and formal administrative proceedings in which both parties will be asked if they prefer a formal investigation or submission of the case for resolution based on the evidence on record.

However, Sarmiento said “if warranted, the DILG may recommend to the OP the imposition of a preventive suspension on the respondent.”

He said a formal investigation shall be conducted within the 90day reglementary period with the consent of both parties wherein they will be given a chance to present their evidence.

The complaint against Duterte stemmed from a complaint filed by a women’s after his remarks about Jacqueline Hamill, the Australian lay minister, who was raped and killed during a hostage situation in the Davao Penal Colony in 1989.

In a statement, Local Government Secretary Mel Senen Sarmiento said the Department of the Interior and Local Government (DILG) will request the Commission on Human Rights (CHR) for a copy of the complaint and endorse the CHR Resolution to the Office of the President (OP) pursuant to Section 61 of the Local Government Code.

Under the law, the OP is the disciplining authority in all administrative complaints against elective local officials.

The CHR earlier found Duterte guilty of violating the Magna Carta for Women in connection with the rape-joke complaint filed against the tough-talking Davao City mayor.

The CHR, however, is leaving the

matter to the Civil Service Commission and the DILG to consider taking measures against Duterte for his alleged offense.

Sarmiento said Administrative Order 23, series of 1992, specifically states that a verified administrative complaint against local officials shall be acted upon by the President through the executive secretary as the “disciplining authority.”

Similarly, Sarmiento said Section 61 of the Local Government Code also states that verified administrative complaints against “any elective official of a province, a highly urbanized city, an independent component city or component city shall be filed before the Office of the President.”

TV anchorman, leftist, 2 retired generals join Duterte’s Cabinet

Ombudsman files charges vs former Butuan mayor, 8 others

By Lilian C. Mellejor Philippines News Agency

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AVAO CITY—A television news anchorman, a leader of the progressive Left and two retired generals are joining the would-be Cabinet of Presidentelect Rodrigo R. Duterte.

Duterte introduced on Thursday night’s news conference ABC 5 television anchorman Martin Andanar as the secretary of the Presidential Communications Operations Office; former Party-List Rep. Joel Maglunsod of Anakpawis as undersecretary in the Department of Labor and Employment (Dole); former Davao region police commander Edgar C. Galvante for the Land Transportation Office (LTO); former Army brigade Cmdr. in Davao and Task Force Davao commander Rodolfo P. del Rosario as undersecretary of the Department of National Defense for Retirees Affairs, whose last stint in government was being the head of the National Disaster Risk Reduction Management Council.

Duterte also named his executive assistant Christopher Lawrence Go as his presidential special assistant and chief of the Presidential Management Staff.

He added lawyer Salvador Panelo will remain as presidential spokesman amid some criticisms for his appointment.

“Panelo is good. He can be abrasive in his language sometimes,” Duterte told reporters on Thursday night news conference at the Presidential Guest House at the Department of Public Works and Highways depot in Panacan.

Andanar, Maglunsod, del Rosario, Galvante and Go are the newest addition to the Duterte would-be Cabinet.

Duterte said he is waiting for someone who has been living in the United States to come home to formally introduce him to head another department.

“So we are fine in [the] government,” pointing to Maglunsod sitting beside the two retired generals that he jokingly introduced a member of the New People’s Army.

Duterte disclosed that he offered retired Navy officer Wilfredo Wong a post, but he was saddened when the offer was declined. He said he had really wanted Wong to join his Cabinet. PNA

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HE Ombudsman recently filed charges before the Sandiganbayan against former Butuan mayor and eight other officials for their alleged involvement in the fertilizer-fund scam.

Ombudsman Conchita CarpioMorales filed against former Butuan Mayor Leonides Theresa Plaza, Vice Mayor Angelo Calo, city agriculturist Salvador Satorre, Treasurer Adulfo Llagas, Assistant Treasurer Arthur Castro, general services officer Rodolfo Evanoso, accountant Bebiano Calo, budget officer Danilo Furia and supply officer Melita Loida Galbo for alleged violation of Sections 3(e) and 3(g) of the Antigraft and Corrupt Practices Act. In 2004 the Ombudsman said Butuan City received P5 million as part of its allocation for the implementation of the Farm Inputs and Farm Implements Program of the Department of Agriculture.

“To implement the project, Plaza signed a purchase request dated April 14, 2004, covering the procurement of 3,333 bottles of liquid organic fertilizer costing P1,500 per liter. One week later on April 22, 2004, Plaza et. al. awarded the project to Feshan Philippines Inc. On the same date, Feshan was paid its

DUTERTE

Sarmiento issued the statement to explain the guidelines in handling complaints lodged against local chiefs executive.

Despite the public uproar for the rape joke, Duterte won via overwhelming a wide margin against his closest rival, administration bet Manuel A. Roxas II, a former interior secretary himself, garnering over 16 million votes.

Sarmiento said only when the OP gives the DILG the “authority to investigate,” as well as the entire records of the case for appropriate action, will the department conduct preliminary investigation of the case. “ Within 20 days f rom the

first installment of P3.1 million, with the remaining balance of P1.7million paid on May 31,” she added.

The Ombudsman said the Commission on Audit (COA) found that fertilizers of the same quality cost only P125 per liter.

“Upon audit, the Commission on Audit issued a notice of disallowance observing that local officials committed blatant procurement violations, such as the unlawful resort to direct contracting without complying with the requirements of Republic Act [RA] 9184, or the Government Procurement Reform Act; reference to specific brand names; and overpricing as suitable substitutes selling at lower prices were available in the local market,” she added.

Fraud

MORALES has also ordered the filing of charges against Bohol Island State University (BISU) President Elpidio Magante, Director Lorenzo Sarigumba, Dean Ambrosio Orillos and instructor Alan Jaum for alleged violation of RA 9184 and falsification of public documents (Article 171, Revised Penal Code) before the Sandiganbayan. “They face trial for splitting procurement

Calleja writes 30

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EGAZPI CI T Y—Veteran newspaperman Danilo O. Calleja died of heart attack on Tuesday. He was 63.

Calleja graduated with a degree in marine engineering from Feati University.

He began his writing career in 1983 in some local newspapers, such as Bicol News Today, Bicol Chronicle and Bicolandia News.

Calleja was also one of the pioneer correspondents of the Philippine Daily Inquirer (PDI) and worked for that newspaper from 1986 to 1998.

After his stint at PDI, he became the public information officer of the late Gov. Juan G. Frivaldo of Sorsogon.

The hardworking journalist also became the station manager of a local radio station.

He started working as stringer of the Philippines News Agency (PNA), a Web-based news wire service of the government from 2000 up to the time he died.

While he was a PNA stringer, he was also a correspondent of the BusinessMirror.

Calleja also served as an editor of The Windows magazine, the official publication of this city’s local government.

He is survived by his wife Nimfa, and children Redan Angelo, Danilo Jr., Donna Maileen and Carla Abegail.

His remains lie at the family residence on Balaguer Street, Poblacion, Daraga, Albay.

Interment is on June 6 at the Castilla Cemetery in Castilla, Sorsogon. PNA

projects and unlawfully resorting to shopping to buy a mini-dump truck costing P402,800 in 2009,” she said.

In a complaint filed by the COA, Morales said the university officials were shown to have split the procurement into two projects to avoid the requirement of public bidding.

“Shopping was illegally resorted to by splitting of contracts for the purpose of evading or circumventing the requirements of RA 9184. [T]he two purported sets of transactions allegedly intended for assembling mini-dump truck were only scheme for the acquisition of one unit mini-dump truck,” she said.

The Ombudsman also found Magante et al. guilty of grave misconduct and imposed upon them the penalty of dismissal along with its accessory penalties of cancellation of eligibility, forfeiture of retirement benefits, perpetual disqualification from holding public office and prohibition on taking the civil service examination.

She also directed the BISU Board of Regents and the Commission on Higher Education to immediately implement the administrative sanctions. Jovee Marie N. dela Cruz

Next DAR secretary told: Distribute remaining CARP balance, ‘Luisitas’

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GRARIAN-reform advocates on Friday urged incoming Agrarian Secretary Rafael V. Mariano to fast-track the distribution of the Comprehensive Agrarian Reform Program (CARP) balance, and revoke what it calls the “killer” administrative order issued by his incumbent Secretary Virgilio R. de los Reyes.

In a statement, Jose Rodito Angeles, president of Task Force Mapalad (TFM), said that, aside from a review, reversals and protection of tenure of farmers already issued with certificates of land ownership award (Cloas), Mariano could prioritize the immediate distribution to farmers of over half-a-million hectares of landholdings nationwide.

The figure is the balance that will be left and passed on to the Duterte administration, TFM said.

Still undistributed, according to TFM, are vast tracts of land that include almost 5,400 landholdings covering close to 60,000 hectares that are already issued with CARP notices of coverage, but whose notices of coverage (NOCs) were later invalidated by the Department of Agrarian Reform (DAR).

“While we await for a passage of a more progressive and comprehensive agrarianreform legislation, the new DAR leadership can maximize the provisions in Republic Act 9700, or the CARP extension with reform [CARPer] law, to proceed and fast-track the acquisition and distribution of these landholdings, the bulk of which are found in Negros,” Angeles said.

TFM said that, while CARPer, indeed, has many imperfections, some provisions in the law could still be used “to protect and expand peasants’ gains.”

Angeles said to fast-track the distribution of landholdings, Mariano could revoke killer administrative orders that had slowed down or hindered CARP implementation, such Administrative Orders (AOs) 7 and 9

issued by de los Reyes.

The two AOs, according to Angeles, have become the basis for big landholders to hold on to haciendas even if these had a lready been covered

by CARP. Also, the AOs have delayed the DA R’s acquisition and distribution of landholdings to farmers, resulting in the agency’s underdelivery of its CARP targets.

TFM said, under Mariano, whom it describes as a fearless farmer and farmer-leader can also overturn earlier decisions that questionably invalidated the issuance of NOCs in landholdings that are already in their first stages of coverage.

According to TFM, the bulk of the CARP balance is found in Negros Occidental. As of December 2015, over 94,000 hectares of haciendas in the province, or nearly 20 percent of the nationwide balance, are still in the hands of landlords.

“There are many ‘Luisitas’ in Negros—big landholdings that remain undistributed by CARP and still under the control of haciendero families, such as the Cojuangcos, Arroyos, Aranetas, Locsins, Benedictos, Yulos, Gustilos, Ledesmas, Lopezes and Jalandonis. It is where the core of injustice and inequity are taking place up to now,” Angeles said.

“We hope that the DAR, this time under Ka Paeng, will have the political will to priotize the immediate distribution to farmers of vast agricultural landholdings in Negros,” Angeles said. Jonathan L. Mayuga

Paje urges continued fight vs illegal wildlife trade

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HERE should be no letup in the fight against illegal wildlife trade.

This was the message of Environment Secretary Ramon J.P. Paje as he leads the local celebration of the World Environment Day (WED) for the sixth and final time on June 5. This year’s theme is “Go Wild for Life, Combat Biodiversity Loss.”

It will be a fitting end to Paje’s six-year term as secretary of environment, which under his watch has made remarkable strides in the campaign against poaching and illicit trade of wildlife species.

“This is an advocacy that we hold close to our heart,” said Paje, who is scheduled to step down from office on June 30 to give way to the next administration.

Since 2010, the Department of Environment and Natural Resources has been successful in seizing elephant tusks, marine and forest turtles, Palawan pangolins and other endangered animals from poachers and illegal wildlife traders.

Paje said the fight against illegal wildlife trade must continue, noting that the “extinction of species is irreversible and losses are permanent.”

The DENR has been implementing programs to conserve threatened species, such as the Philippine Eagle (Pithecophaga jefferyi), Philippine tarsier (Carlito syrichta),

marine turtles, Philippine tamaraw (Bubalus mindorensis) and Philippine crocodile (Crocodylus mindorensis).

These conservation efforts have increased the population of tamaraw to 405 in 2015, from 382 in the previous year, and the Philippine cockatoo (Cacatua haematuropygia) to 535 in 2015, from 239 in 2010.

Sightings of the majestic Philippine Eagle also increased from 39 to 47.

Between 2010 and 2015, at least 70 new wildlife species were also discovered, which include birds, reptiles, amphibians and rodents. To combat ivory smuggling and other illegal wildlife trade and support the international community in these causes, the Philippines made a historical breakthrough in 2013 when it became the first non-elephant range country and the pioneer in Asia to destroy more than 4 tons of illegal elephant ivory and created a task force called Philippine Operations Group on Ivory Since then, 12 countries have followed this bold step. These are the United States, China, France, Chad, Belgium, Hong Kong, Kenya, Ethiopia, Mozambique, Congo, United Arab Emirates and Thailand.

“It was not easy, but we stood up because we know it was the right thing to do. We were able to convey our strong message to

the world that the Philippines condemns the killing of elephants for ivory harvest and we do not tolerate illegal ivory trade,” Paje added.

The DENR also intensified its enforcement of wildlife laws, which led to the filing of 75 cases and eight convictions.

“We recognize the help of vigilant citizens and organizations which have led to the arrest, prosecution and conviction of the culprits behind this despicable act,” Paje said.

Despite these achievements, Paje added that more needs to be done to combat illegal wildlife trade.

“Driven by high profits, illegal wildlife trade continues. Thus, we must continue, expand and intensify efforts to curb this illicit business, including the importation to the country of invasive species,” Paje pointed out. The environment chief, likewise, rallied the public to continue supporting the government’s campaign against illegal wildlife trade.

WED is a part of the effort of the United Nations Environmental Program to create worldwide awareness and action for the environment. It was first celebrated in 1973 in the US and since then has been hosted by different cities of the world.

Today it is widely celebrated in more than 100 countries. PNA

Sports BusinessMirror

mirror_sports@yahoo.com.ph | sports@businessmirror.com.ph

SPORTS PLUS

PHL DRIBBLERS GO 0-2 THE Philippines bowed to defending champion New Zealand, 11-21, and lost to Brazil, 14-20, to start its Fiba 3x3 Under-18 World Championship campaign on a sour note on Thursday in Astana, Kazakhstan.

The Philippines, ranked 13th in the tournament, fell to 0-2 won-lost in Group D and saw its chances of advancing further in the tournament turn bleak.

Joshua Sinclair topscored for the Philippines with 14 points, while National University teammates John Lloyd Clemente, Kyle Tan and Theo Flores added five, four and two points, respectively, against the Kiwis.

The Filipinos had to rely on their outside shooting against the tall frontline of New Zealand, bannered by 6-foot-9 Kentucky freshman standout Tai Wynyard, who led all scorers with 20 points.

Against Brazil, the Philippines fell to a 3-12 deficit midway the 10-minute match and never recovered.

The Philippines will face powerhouse Spain and Hungary. Only the top 2 teams from each group will advance to the knockout stage. Ramon Rafael Bonilla

GIN KINGS GRACE 3X3 THE Barangay Ginebra San Miguel Gin Kings will attend the Barangay Ginebra San Miguel 3-on-3 National Championships on Sunday at the SM North Edsa Sky Dome, Quezon City.

Participants from the 16 teams and fans can mingle with the Gin Kings in the event that starts at 10 a.m. and ends with the 5 p.m. awarding ceremony.

Admission is free.

Ginebra San Miguel Inc. (GSMI), maker of the world’s No. 1 selling gin Ginebra San Miguel, hopes the Gin Kings’ presence will inspire the participants to excel and be a step closer to reaching their full basketball potential.

GSMI provides opportunities to athletes through grassroots basketball initiatives that sustain their passion for the game and also teach the importance of teamwork and sportsmanship.

Teams from Bulacan, Laguna, Tarlac, Pasig, Quezon Province, Las Piñas, Pampanga, Cavite, Cebu, Quezon City, Rizal, Pasay, Mandaluyong, Davao, Bacolod and Pangasinan will vie for the champion’s cash prize of P50,000. The runner-up will receive P20,000.

TAMS GORE GENERALS

By Rick Olivares

excites me about this EAC game is the possibility of facing La Salle. Gusto ko maramdaman na nila [FEU] ‘yung La Salle habang maaga pa. Sabi nila malakas.

Malalaman mo lang kung ganong kalakas ang kalaban until you face them.”

The Tamaraws held EAC to one point in the second period, a tournament all-time low.

From a 15-17 first period deficit, FEU dropped a 13-1 bomb ignited by Ken Tuffin.

F

AR Eastern University (FEU) Head Coach Nash Racela hopes his Tamaraws would beat Emilio Aguinaldo College (EAC) in their Filoil Flying V Premier Cup match on Friday.

Racela got his wish—a 73-52 win at the Filoil Flying V Centre in San Juan—for his team’s fourth straight victory that saw them nail the fourth seed of Group A. The reward? Possibly a quarterfinals matchup that could set them up with undefeated De La Salle on Tuesday. The Green Archers are lording it over the competition with a 6-0 won-lost record.

“Everyone has been saying La Salle is good,” Racela said. “After our practice yesterday [Thursday], I told my players what

GLOBE FINALS PROMO

GLOBE Telecom, the official wireless and broadband services partner of the National Basketball Association (NBA) in the Philippines, introduces a streamlined registration process that enables sports fans to watch and experience the NBA on their mobile devices.

Globe customers subscribing to any NBA service offerings (NBA499 for a 30-day premium access, NBA299 for seven days, and NBA50 for a 24-hour access) will experience the new and improved registration method to access NBA content on their mobile phones without the need to input PIN codes.

In time for the NBA Finals, the new registration procedure from Globe begins with customers selecting an NBA service offering and texting the keyword (“NBA499”, “NBA299”, “NBA50”) to 8888.

Once completed, users will receive a text message containing a link that will direct them to the NBA App to access NBA LEAGUE PASS. Once authenticated, fans can immediately get started viewing the games on their devices.

All new Globe Postpaid customers subscribed to GoSURF299 and up automatically get a free 30-day access to the NBA LEAGUE PASS where they can watch the games live and check the scores of the NBA Finals.

“Globe is committed to providing the best possible mobile experience so that our customers can access content seamlessly on their devices. By working closely with the NBA, we have developed a simpler and effortless registration process, free of inputting or retyping tedious PIN codes. This way, one can easily access NBA games and content anytime,” Globe Senior Advisor for Consumer Business Dan Horan said.

The Generals shot an atrocious 0-of-15 from the field with their solitary point coming from center Laminou Hamadou’s split free throws.

FEU continued its frenetic pace and smothering defense in the second half, where they led by as many as 19 points on a lay-up by rookie Joseph Nunag, 61-42.

On the defensive end, the 52 points EAC scored was the second lowest in the summer competition. The previous low was 46 points, also set by EAC in a 71-46 loss to the College of Saint Benilde on May 26. Saint Benilde also shared the dubious low-scoring

record for futility in a 59-46 setback to San Sebastian on May 7.

In his best game of the tournament, FEU shooting guard Monbert Arong scored 20 points, many of them on daring drives against EAC’s 6-foot-9 Hamadou.

Steve Holmqvist added 19 for the

defending University Athletic Association of the Philippines champions.

Hamadou proved to be the bright spot once more for EAC, which absorbed its sixth loss in seven outings, while FEU arrested its threegame slide with three straight wins to go 4-3.

In juniors action, San Beda defeated Adamson University, 71-65.

This Sunday Ateneo and the San Beda jockey for the second seed of Group B when they face each other at 11:15 a.m. National University and Arellano University, with identical 5-1 slates, also battle for the top seed at 1:30 p.m. Adamson University and University of the East (UE) clash in a family affair they have dubbed the “Pumaren Cup” for the right to advance to the next stage of the competition at 3:15 p.m.

Adamson University is coached by Franz Pumaren, while UE features older brother Derrick calling the shots alongside the youngest of the male brood, Dindo, by his side. In the main match at 5 p.m., De La Salle battles Letran.

Tickets to the Filoil Flying V Premier Cup can be purchased at the gate of the Filoil Flying V Centre in San Juan and through Ticketnet.

TRI WARRIORS TAKE ON SUBIC M

POCARI FACES LAOAG

POCARI Sweat tries to keep its run going as it seeks its third straight victory against a resurgent Team Laoag on Saturday in the Shakey’s V-League Season 13 Open Conference at The Arena in San Juan.

The Lady Warriors hurdled their first two matches in contrasting fashions, sweeping the University of the Philippines Lady Maroons, 25-18, 25-14, 25-22, in last week’s opener. They turned back the National University Lady Bulldogs, 34-32, 17-25, 23-25, 25-17, 15-11, in a thrilling duel between two of the Shakey’s-sponsored league’s fancied teams on Wednesday.

“We hope to sustain our momentum and win as many games as we can,” said Rommel Abella, taking over the coaching reins for the newcomers vice Thai Tai Bundit.

Starring former De La Salle star Michelle Gumabao, Elaine Kasilag, Myla Pablo, Siemens Dadang, Lutgarda Malaluan, setter Gyselle Sy and libero Melissa Gohing, the Lady Warriors set out as the slight favorites against the Power Smashers, who tote a 1-1 card, in the 6:30 p.m. main game in the fourth playdate of the season-opening conference of the league backed by Mikasa and Accel.

Air Force and Baguio collide at 4 p.m. in another explosive twin-bill aired live over ABS-CBN Sports + Action Channel 23, according to the organizing Sports Vision.

In the Spikers’ Turf, Cignal and Air Force clash for the solo lead at 1 p.m. Lance Agacaoili

Saturday, June 4, 2016 A7

FAR Eastern University’s Joe Allen Trinidad (4) and Emilio Aguinaldo College’s Enjerico John Diego go after the loose ball. ALYSA SALEN

ORE than 700 local and foreign tri warriors will answer the gun for the second Regent 5150 Triathlon—the local version of the world’s largest Olympic distance triathlon series—on Sunday in Subic Bay. Australian defending men’s champion Sam Betten and his compatriot, 2015 women’s runner-up Dimity-Lee Duke, will lead a crack field of professionals raring to showcase their first-rate skills in the 1.5-kilometer swim, 40km bike and 10-km run race.

Filipino elite bets, age-groupers and relay competitors will also race for honors and personal bests in the event produced and organized by Sunrise Events Inc., in partnership with Regent Foods—the country’s leading snack-manufacturing company, for triathletes who love to do short distance but challenging races in a world-class production setup.

Out to challenge Betten are compatriot Mitch Robins and Slovak Michal Bucek, while Subic regular Duke and fellow Aussie Michelle Duffield will dispute the women’s tiara left by

the now retired Belinda Granger.

Sunrise President Wilfred Steven Uytengsu said the Regent 5150 Triathlon aims to “encourage more people to adopt a healthy lifestyle and embrace multisport training and racing.”

“While we recognize that people may have an Ironman or Ironman 70.3 event as a ‘bucket list’ item, we also realize that you need to start somewhere and this event does exactly that. The distance is still challenging for the novice triathlete and we hope to encourage many individuals to start with this distance,” Uytengsu said.

Spicing up this year’s action is the inaugural staging of the Sunrise Sprint, the newest short-distance race series featuring action in a 750-meter open-water swim, 20-km bike ride and 5-km run course.

Also known as S2, this race is fit for beginners wanting to immerse themselves into triathlon, for enthusiasts who want to race without having to worry about long periods of training or for the tri warrior who has been off the circuit and is raring to make a comeback.

‘Pacquiao needs to assess Senate workload’

By Lance Pugmire Los Angeles Times

M

anny Pacquiao’s promoter, Bob Arum, said he’s had “a number of conversations” with the record eightdivision world champion and newly elected Philippine senator about his fighting future, and the road map for now is to measure the demands of public service.

Pacquiao, 37, announced his retirement from boxing on April 9 after defeating former two-division champion Timothy Bradley Jr. by unanimous decision at MGM Grand in Las Vegas.

Just more than a month later, Pacquiao won election to the Senate with 11 other countrymen, and the workload of those politicians in Manila is far heavier than the duties previously required of Pacquiao in the role of congressman, which he had held since 2010.

Yet, after looking sharp in his comeback from a shoulder injury that preceded his record-selling loss to unbeaten Floyd Mayweather Jr. last year, the lure of a Mayweather rematch or another major fight against someone such as Saul “Canelo” Alvarez tugs.

National men’s team faces Iran in ‘Gilas Road to Glory’

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HE men’s national basketball team takes on Iran in a tuneup match for the International Basketball Federation Qualifying Tournament (OQT) on Wednesday at the Smart Araneta Coliseum.

The Philippines-Iran game is part of the Gilas Road to Glory program which prepares the national team for the all-important OQT in July where the No. 1 team will join the winners in the five other OQTs for the Rio de Janeiro Olympics.

Tickets for the Gilas Road to Glory: Philippines versus Iran are now on sale through Ticketnet outlets.

The final lineup for Gilas Pilipinas will also be revealed in the Gilas Road to Glory Final 12 Show on June 26 from 6:30 to 7:30 p.m. live on TV5.

Another tune up game to watch out for in the Gilas Road to Glory is Philippines vs. Turkey on July 1 at 7 p.m. at the SM Mall of Asia Arena.

Turkey is one of the teams coming to Manila for the OQT, together with France, Canada, Senegal and New Zealand. The Turkish team is in Group A and will clash with Canada opening day on July 5 and Senegal on July 7.

Gilas Road to Glory is a call for the country’s support for Gilas Pilipinas in its tune up games for the OQT. Tickets are available at Ticketnet outlets and for ticket inquiries contact 911-5555 or check www.ticketnet.com.ph.

Live action will be aired on TV5 and updates at Sports5.ph.LABAN PILIPINAS!

“My counsel to Manny is to take some weeks and see the commitment of a senator, and how much time it will take and whether it leaves time for him to train for a fight,” Arum said. “If the answer is that it’s too time-consuming and overwhelming, that solves the problem.

“If no, he can find time to train, and he wants to, then the question is, ‘Do you want to fight?’ If the answer is yes, then I’ll make him a fight.”

Although Arum recently settled a federal lawsuit against Mayweather’s powerful manager, Al Haymon, that could help ease

rematch negotiations that were so difficult last time, Arum speculated that Mayweather, 39, wants to stay retired with his 49-0 record.

“I have been informed by reliable sources on that side that Mayweather has no desire to fight anybody,” Arum said.

Although Pacquiao trainer Freddie Roach said he thought it “interesting” that Mayweather has twice visited Roach’s Wild Card Boxing Club in Hollywood during the last month, Arum said, “Mayweather is a genius at promotion and publicity. He doesn’t want to give up the limelight, and doing things like that keep him in the limelight...in my opinion.”

LASCUñA WINS IN EAGLE RIDGE

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ony Lascuña picked up another victory on the International Container Terminal Services Inc. Philippine Golf Tour, outgunning Orlan Sumcad and Zanieboy Gialon in the early going before thwarting a hot-charging Japanese Ryoma Miki in the closing holes to capture the Eagle Ridge Invitational crown on a closing 69 at the Aoki course in General Trias, Cavite, on Friday.

Just one up over Sumcad and two ahead of Gialon at the start of the final round, Lascuña flashed vintage form at the front to take full control with a 34 but needed to hit a pair of clutch birdies to fend off Miki, who charged back from five down to tie Lascuña at 14-under with an eagle on No. 16.

But the veteran Davaoeño shotmaker birdied the par-5 hole two flights later to regain a onestroke lead, putted from the fringe on the par-3 17th for another birdie and a two-shot cushion before fumbling with a three-putt mishap on the final hole to settle for a pair of 34s and a oneshot victory on a 15-under 273 total.

“I wasn’t aware that somebody was making a charge until someone told me before I teed off on No. 16. So I did the next best thing—go for a birdie,” said Lascuña, after scoring a follow-up to his runaway triumph at Luisita Championship, where he beat Korean Park Jun-hyeok by four, in April.

Two flights ahead of the championship group, Miki, a rookie pro from Saitama, took the challenger’s role when Sumcad and Gialon faltered with over-par cards at the front, rattling off five birdies in a six-hole stretch to move within two.

The 25-year-old shotmaker then gunned another birdie on the 11th, flubbed a couple of chances in the next four before eagling No. 16.

But he settled for pars in the last two for a tournament-best 64 for a 274, snatching the runner-up purse of P260,000, still his best finish in five tournaments in the circuit.

Ginebra signs up Crawford

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By Joel Orellana

ARANGAY Ginebra San Miguel is bringing in Drew Crawford, son of veteran National Basketball Association (NBA) referee Dan Crawford, as its import in the Philippine Basketball Association (PBA) Governors’ Cup. Head Coach Tim Cone said the 25-year-old product of Northwestern Wildcats, who is listed at 6-foot-5, could be a “good fit” for the team, which is trying to snap a long title drought.

“I think he will be a fit for the team. He reminds me of Othyus [Jeffers] and I saw him play in the [NBA] D-League,” Cone said.

The Kings initially targeted Jeffers for the season-ending tournament but the team fell short in the Commissioner’s Cup, absorbing a 2-0 sweep from eventual champion Rain or Shine.

Crawford will be coming off a stint in the Israel Basketball Premiere League.

“We’re hoping he arrives in the next few days,” said Cone, as the team resumed practice on Thursday without 7-foot center Greg Slaughter [injury] and Joe Devance, who is still in the United States attending to a personal matter. Japeth Aguilar and LA Tenorio also did not join Ginebra’s practice. They are loaned to the Gilas Pilipinas training pool.

Crawford went undrafted in 2014 and played for Erie Bayhawks, where he averaged 16 points, six rebounds and 1.8 assists before bringing his act to Israel and played for the club team Bnei Herzliya.

Blackwater also signed a new import for the Governors’ Cup, tapping former Meralco import Eric Dawson. The Bolts are bringing in Allen Durham, who suited up for Barako Bull in the 2013-2014 season.

Marqus Blakely will suit up anew for Star, while Arizona Reid is returning to reinforce defending champion San Miguel Beer.

NCR CHAMPIONS

Members of Team University of Santo Tomas, headed by Most Valuable Player and Best Opposite Attacker Ejiya Laure (back row, second from left), display their medals and trophy after ruling the 14th Shakey’s Girls’ Volleyball League National Capital Region leg beating National University, 28-26, 2522, 25-19, at the Saint Marie Eugenie Sports Complex in Antipolo recently.

Sports BusinessMirror

By Janie Mccauley AKLAND, California—Stephen Curry realizes every last man on the bench can mean so much to winning a championship.

As he and Klay Thompson endured rare off nights that even featured Curry tossing his mouthpiece in frustration, the National Basketball Association (NBA) Most Valuable Player’s supporting cast made all the timely shots and all the difference for the defending champions in Game One of the NBA Finals.

Draymond Green had 16 points, 11 rebounds and seven assists, Shaun Livingston scored a personal postseason best of 20 and Golden State’s bench came up big, as the Warriors beat LeBron James and the Cleveland Cavaliers, 104-89, on Thursday night to move three wins from a repeat title.

Curry and Thompson? They totaled—gasp!—20 points between them on eight-for-27 shooting, each knocking down a late three-pointer.

“You don’t win championships without the entire squad coming in and making an impact on games,” Curry said.

“That’s why we’re here.”

Golden State’s bench outscored the Cavs’ reserves 4510 in the opener of this finals rematch, which the Warriors reached even with Curry missing six games with injuries in the postseason.

Game Two is on Sunday night back at Oracle Arena, and James knows Cleveland must adjust immediately.

“When you get outscored 45-10 on the bench and give up 25 points off 17 turnovers, no matter what someone does or doesn’t do, it’s going to be hard to win, especially on the road,” James said. “Don’t matter what you do with Steph and Klay, don’t matter what you do with Draymond.”

In a series with so much star power on both sides, this was a night for Livingston and fellow reserves Leandro Barbosa and André Iguodala. Barbosa returned from a minor back injury to shoot five-for-five, while 2015 Finals MVP Iguodala had 12 points, seven rebounds, six assists and some stingy defense on James.

“We play a lot of people, and we feel like we have a lot of talent on the bench that can come in and score when we need it,” Coach Steve Kerr said. “So it’s a great sign, obviously, that we can win in the finals without those two guys having big games, but it’s not really that surprising to

WARRIORS

IN GAME 1

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The Associated Press

us. This has been our team the last couple of years.” It made for a strong start while surrounded by the yellow “Strength in Numbers” shirts that hung on seats throughout the arena.

“That’s our motto. That’s what we believe in,”Livingston said.

“We pick each other up. We believe in each other and we just fight.”

James kicked off his sixth straight finals with 23 points, 12 rebounds and nine assists, but cold-shooting Cleveland went 38.1 percent from the floor. Kyrie Irving, lost to a knee injury in Game One last year, scored 26 points, 11 on free throws.

Iguodala showed he can handle any role—if Kerr decides to start him or bring him off the bench. Iguodala didn’t let an aggravating, hard hit to the groin by Matthew Dellavedova derail his focus for the final quarter.

Kerr stuck with regular starter Harrison Barnes, and he delivered 13 points. Curry had 11 points, six assists and five rebounds, while Thompson scored nine points.

“I thought our guys did a great job of locking into those guys,” Cavs Coach Tyronn Lue said. “Their bench played well. So we’ve got to go back to the drawing board and try to figure out how to take those guys out of the game.”

Kevin Love made an impressive finals debut with 17 points and 13 rebounds after missing last year’s run with a dislocated shoulder that required surgery. His basket with 3:57 left in the third put the Cavs ahead before Green’s dunk moments later.

With 34.1 seconds left in the third, Iguodala took issue with Dellavedova’s swat into his groin that after review was ruled a personal foul and no flagrant. Iguodala knocked down a three-pointer less than eight seconds later and Golden State took a 74-68 lead into the final 12 minutes.

Livingston, whose remarkable comeback from a potentially career-ending left-knee injury nine years ago has so inspired Kerr and many others, made a key follow shot late in the third on the way to his first 20-point performance in the postseason.

James has scored 20 or more points in a career-best 25 straight playoff games, topping his previous mark of 24 in a row from May 12, 2008 to April 25, 2010.

DRAYMOND GREEN (right) and Shaun Livingston rise to the occasion. AP

A8 | S

aturday, June 4, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana

‘Not a good ingredient to win’

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AKLAND, California—LeBron James sat down on the bench in the fourth quarter as the game slipped away, threw his hands up and grimaced in frustration.

His Cleveland Cavaliers had done everything right against the Splash Brothers. And yet, everything still went so wrong as this highly anticipated National Basketball Association (NBA) Finals rematch kicked off.

The Cavaliers shot 38 percent and couldn’t find a way to stop the Golden State Warriors’ supporting cast in a 104-89 loss on Thursday night.

Curry and Thompson combined for just 20 points on eight-for-27 shooting, but the Warriors’ bench outscored Cleveland’s reserves 45-10 and the Cavaliers coughed up 17 turnovers that led to 25 points for the defending champions.

“Don’t matter what you do with Steph and Klay, don’t matter what you do with Draymond [Green],” James said.

“Give up 45 points off the bench and 25 points off turnovers on the road, it’s not a good ingredient to win.”

Playing in his sixth straight NBA Finals, James delivered with 23 points, 12 rebounds and nine assists.

Kevin Love was strong as well in his finals debut with 17 points and 13 boards.

Curry and Thompson were four-for-13 from three-point range and the two-time Most Valuable Player turned the ball over five times, but the Cavs succumbed to a tide they never saw coming.

“For the most part I’m pleased with what we did defensively against Steph and Klay,” Cleveland Coach Tyronn Lue said. “Their bench did a good job for them.”

Game Two is on Sunday in Oakland.

Kyrie Irving scored 26 points, but shot just seven-of-22. Tristan Thompson had 10 points and 12 rebounds for the Cavs, who are trying to end a professional sports championship drought in Cleveland that extends back five decades.

If they can’t beat the Warriors when their biggest stars aren’t raining three-pointers, the finals rematch that everyone wanted could be over a lot sooner than most predicted. AP