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PHL oceans in trouble: Overfishing, pollution, climate change ail our seas By Dennis Estopace

Part Three

nonoy lacza

HE Philippines is known to have the most number of protected areas among Southeast Asian countries with its National Integrated Protected Areas System (Nipas) Act in place. Continued on A2

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A broader look at today’s business n

Wednesday, June 21, 2017 Vol. 12 No. 251

Govt wants 5 tax packages OK’d before midterm polls

By Rea Cu @ReaCuBM & Jovee Marie N. dela Cruz @joveemarie

he 17th Congress will have its hands full, as the Duterte administration seeks to have all five tranches of the tax-reform package enacted before the midterm elections in 2019.

This was disclosed by Finance Undersecretary Karl Kendrick T. Chua at the BM Coffee Club forum on Tuesday with the ALC Media Group and Action for Economic Re-

forms at the Sandari Batulao office in Makati City. Chua said they are confident that the first package of the Comprehensive Tax Reform Program

The additional revenues that the DOF is targeting to generate from the five tax packages annually

(CTRP), or the Tax Reform for A c c e l e r at i o n a n d I n c lu s i o n (TRAIN), will be approved by Congress and signed by the President by October, giving them enough time to work on the accompanying implementing rules and regulations for actual implementation by January 1, 2018. See “Govt,” A2

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See “GSMI,” A2

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Those with less give more Teddy Locsin Jr.

free fire Philippine statement delivered by Ambassador Teddy Locsin at the United Nations’s “Sending Money Home: Migrants and the Sustainable Development Goals Global Forum on Remittances, Investment and Development 2017” on June 16, 2017.

ood morning. During negotiations for the 2030 Agenda, we fought strongly for the recognition of the contribution of migrants to inclusive growth and sustainable development and, frankly and flat out to our consumption-driven economy after we de-industrialized. Remittances account for 9.8 percent of our GDP. It was two digits not too long ago. Continued on A11

Strong dollar saps peso strength T

By Joel R. San Juan

HE Court of Appeals (CA) has reversed and set aside the decision issued by the Intellectual Property Office of the Philippines (IPOPHL) directing Ginebra San Miguel Inc. (GSMI) to drop its claim for the word “Ginebra” in its trademark application for Ginebra San Miguel Since 1834 for gin products. But while it was allowed to keep Ginebra in its trademark, GSMI was ordered to give up “Since 1834”. In a 16-page decision penned by Associate Justice Myra GarciaFernandez, the CA’s Special First Division partially granted the petition for review filed by GSMI of the September 24, 2013, decision of the Office of the Director General (ODG)-IPOPHL. T he r u l i ng den ied GSMI ’s trademark application for Ginebra San Miguel Since 1834, saying the word Ginebra is a generic term and that the terms Ginebra and Since 1834 are incapable of functioning as trademarks.

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GSMI gets CA nod on use of mark ‘Ginebra’

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TAX REFORMS Karl Kendrick T. Chua, chief economist and undersecretary of the Department of Finance, gives his insights on the tax reforms the Duterte administration wants to roll out during the Businessmirror Coffee Club forum. NONIE REYES

DPWH to form task forces for ROW acquisition

ASTER and more efficient rightof-way (ROW ) acquisition and delivery will be the “trademark” of the Department of Public Works and Highways in the Duterte administration, as the agency sees its importance in having a smooth implementation of infrastructure projects across the country. Public Works Secretary Mark A. Villar assured contractors that the government is working on speeding up the delivery of needed easement for

PESO exchange rates n US 49.8590

infrastructure-development projects, especially big-ticket ones. “At the government side, we are fasttracking all projects—that will be the trademark of the Duterte administration, all infrastructure projects will be moving at a fast pace,” he said. Acquisition and delivery of ROW is one of the common causes of delay for public-private partnership (PPP) projects. “Faster acquisition of the right-of-way will lead to a faster delivery of the project,” Villar explained.

Easement and site acquisition is a PPP strategy, where the government acquires land or land rights for a specific project. “We’ve prepared a new system for ROW acquisition; each project will have their own task force. We’ll have a faster acquisition process and turnover of ROW to concessionaires,” Villar explained. The task force will be composed of DPWH officials, legal aides and representatives from the private sector.

Inna Christine Cabel

he local currency on Tuesday simply withered in the face of a strong dollar and capped the day’s trade 19 centavos weaker to 50.10 for each greenback, the PDS Group said. Data show the peso pushing past the 50-per-dollar threshold anew as the dollar strengthened on US Federal Reserve (the Fed) comment that economic expansion in the world’s largest economy, and its impact on inflation, has a “long way to go”. Previous to this, the local currency capped Monday’s trading at 49.91 per dollar. Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said the currency movements during the day were a reaction to statements from the Fed of a resurgent US economy looking to moderate the buildup of price pressures with potential rate hikes down the line. “It’s [the peso] reacting to external developments [and a] statement from a Fed official overnight,” he added. Earlier, Federal Reserve Bank of New York President and CEO William Dudley said rising inflation in the US, along with higher wages, makes conditions ripe for another round of interest-rate hikes. “All regional currencies have responded the same way. We are just

moving along with the regional currencies right now,” Tetangco said. He added the BSP will not “go against the fundamental trend”, and would like to minimize the volatility and sharp fluctuations. Total traded volume at the PDS shows a spike to $1.156 billion, from only $572.6 million the previous day. Also in its latest readings, Standard & Poor’s (S&P) Global Ratings said uncertainty in the global environment, including the normalization of the US interest rates, could worsen the depletion happening to the country’s current account. S&P, however, added the country’s growth story remains strong enough to weather the ebb and flow of capital, and that the $292-billion Philippine economy remains “solid for now”. “Strong domestic demand will continue to drive a solid GDP expansion at around 6.5 percent annually in the next two years,” S&P said. Other risks to the economy the ratings agency cited include political headwinds represented by the ongoing clashes between Islamist radicals and government troops in Mindanao, and tension between Qatar and its neighbors in the Middle East that puts pressure on remittance flows to the country. Bianca Cuaresma

n japan 0.4471 n UK 63.5204 n HK 6.3923 n CHINA 7.3091 n singapore 35.9578 n australia 37.8629 n EU 55.5878 n SAUDI arabia 13.2961

Source: BSP (20 June 2017 )

BMReports BusinessMirror

A2 Wednesday, June 21, 2017

PHL oceans in trouble: Overfishing, pollution, climate change ail our seas Continued from A1

The country has 240 protected areas (PAs), 70 of which are considered mar ine protected areas (MPAs). Strictly speaking, however, it only has a total of 30 National MPAs, which are described as “predominantly marine-areas”, said Theresa Mundita S. Lim, Depa r t ment of Env ironment and Natural Resources-Biodiversit y M a n a gement Bu reau (DENR-BMB) director. Aside from national MPAs, there are 1,751 local MPAs, which include fish sanctuaries managed by local government units (LGUs). The MPAs are often marine key biodiversity areas (MKBAs) set aside for conservation. These areas are declared “no-take” zones as they are habitats of unique or threatened marine wildlife and are home to marine keystone species, the conservation and protection of which are important to allow faster recovery of degraded ocean environment. Oceana Philippines Vice President Gloria Estenzo-Ramos said their organization focuses on the Tañon Strait, a protected seascape between the islands of Cebu and Negros Island. The strait, which is about 161 kilometers long, connects the Visayan Sea in the north to the Bohol Sea in the south. Ramos said Oceana is advocating for a complete ban on commercial fishing in the area. She added Oceana’s experience in Tañon “in protecting our oceans, can be a model that we can replicate in other areas.”

Wrong track

WILFREDO Licuanan, a professor and fellow at the De La Salle University, observed that most efforts of both the government and

Govt. . .

Continued from A1

Chua said that, since the Senate Ways and Means Committee is only to start its official deliberations on the first package of the CTRP on July 24, it is unlikely that the passage of the TRAIN will still meet the original July target. “The reality is it will not happen, because the Senate, you know the House approved it on third and final reading on May 31, and the Senate will officially take it on July 24. But the Senate already had nine hearings. So we expect this to move fast. So the target is to have the Senate and the bicam [bicameral committee] and the President sign by October, so we have time to prepare the IRR [implementing rules and regulations] for publication. I

the private sector-partners focus on managing fisheries and conservation through the establishment of MPAs, more than rehabilitation and recovery of the country’s coral reefs. Licuanan said current efforts are insufficient possibly because government and private-sector initiatives are on the wrong track. “Unfortunately, the situation is not improving as can be inferred from the decline of coral reefs over the last 40 years,” he added. “The latter indicates our efforts are not enough. For example, not enough of our waters are in MPAs.” He said what the state of reefs clearly shows is that acting together as a society, not as sectors, is needed to help address the situation. “There is an urgent need for us to come together for a frank dialogue on the next steps,” Licuanan added. He said there is a need forstakeholders to realize that solutions are not technical and are not in the hands of experts or specific sectors. Vince Cinches, ocean campaigner of Greenpeace, said the state of the Philippine oceans is not getting any better. A couple of years ago, he added, at least 1 percent of the country’s coral is still in excellent condition. Unfortunately, he said, recent studies revealed this is no longer true, citing Licuanan’s latest report. “A lot of our initiatives, unfortunately, are wrong,” Cinches added. “There is a need to rethink our strategy.” For the past 14 years, he said, the decline is astounding because most efforts to restore marine and coastal ecosystems are wrong.

Taking action

VINCENT Hilomen, project manager of the DENR-BMB Marine Key Biodiversity Areas (MKBA), said think it is almost certain that we will have this tax reform implemented on January 1. The President certified it already, so everyone is taking it with a sense of urgency,” Chua said. Before adjourning in May, the lower chamber approved House Bill 5636, or TRAIN, which seeks to lower personal income-tax rates, expand the value-added tax base, adjust excise taxes on petroleum and automobiles, impose excise tax on sugar-sweetened beverages and ease the rates of estate and donor’s taxes. The bill, which was certified as urgent by the Palace, is now pending before the Senate Ways and Means Committee, headed by Sen. Juan Edgardo M. Angara. The DOF, Chua said, will be submitting the CTRP’s second package—focused on decreasing corporate tax rates from 30 percent to 25 percent, while rationalizing

the Philippines expressed “voluntary commitments” to pursue Sustainable Development Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development. Hilomen summarized these commitments into three main thematic areas, namely, governance, socioeconomic and ecological. For governance, the commitments include the enactment of the Expanded Nipas Act by 2024 and that LGUs have complied with the rule of having 15 percent of municipal waters declared marine reserves under the fisheries code, with penalties for noncompliance. The Philippines also committed to establish by 2020 competency standards for management of PAs. Unde r t he so c io e conom ic commitments, the Philippines targets hav ing a sustainable financing scheme by 2020 for the management of MPAs in pilot coastal communities using biodiversity-friendly enterprise and promotion of comanagement agreements and increased generated income from sustainable fishing for coastal communities. The Philippines’s ecological commitments include that, by 2020, marine pollution in coastal areas is significantly reduced; 10 percent of municipal waters are under effective zone management and 2 percent are managed by organized fishing communities. Also by 2020, MPA networks are established in key marine biodiversity areas and around a 17,000-hectare portion of the Benham Bank and 2 million of the 25 million hectares of the entire Philippine Rise is declared as an MPA.

Budget woes

FOR years the Philippines, mainly through the DENR, is working to fiscal incentives—by October. “[We will review] fiscal incentives because some of them have been there for 40 to 50 years, when, in fact, we’re not sure if these sectors or industries are contributing to the economy,” Chua added. The remaining three tranches will be submitted in the fourth quarter of the year or early 2018. “The tax packages 2 to 5, we are working on them as we speak. We want all the tax reforms to be approved before 2019 because that is election year, and we want to not have any leaks; so 2019,” he said. “We will use the remainder of next year to finish all the hearings so that by December 2018, we have the whole program and five packages ready.” The DOF said the government needs an additional P2.2 trillion in capital spending up to 2022 for the Duterte ad-

address the multifaceted problems that besiege the country’s troubled oceans with the help of various private-sector and nongover n ment a l org a n i z at ion s (NGOs) as partners. DENR Undersecretary for the Environment and International Environment Affairs Jonas R. Leones said the Philippines has various programs aimed at protecting and conserving the ocean. Much of the programs, however, are focused on the rehabilitation of degraded mangrove forests and the establishment of more MPAs under the Nipas. Last year P500 million was allocated for coral-reef rehabilitation. The money was expected to boost efforts to protect and conserve the country’s marine and coastal ecosystem. The budget allocation was expected to jump-start a program that focuses on coral rehabilitation, which for years, have received no allocation despite the degradation of the country’s network of coral reefs. Earlier, Director Theresa Mundita S. Lim said such budget will go a long way in terms of rehabilitating the country’s degraded corals. She said the budget will be a big boost in terms of on-ground assessment of corals to determine the kind of intervention needed to allow faster coral-reef recovery. This year’s current budget for coral-reef rehabilitation is approximately P600 million. Leones said the DENR will be batting for a bigger budget next year for coral rehabilitation. “We started with P500 million. This year we have another P600 million. It will eventually increase,” he told the BusinessMirror. “Like the NGP [National Greening Program], the budget allocation started small. Then it eventually increases.” To be concluded

ministration’s infrastructure, education, health and social-welfare programs. The funding will be raised through sustainable borrowings, budget reforms, taxand customs-administration reform and tax-policy reform. The DOF’s goal, Chua said, is to generate P366 billion annually from the five tax-reform packages. “Package 1 covers around half of what we need, because Packages 2 to 5 have lesser revenue; they are more about fixing inherent problems. So the estimate we have for Package 1, the DOF estimate, is around P157 billion per year. House version that was passed is P133 billion. So our challenge is to make sure the Senate listens and pass the DOF version. Packages 2 to 5 will contribute the balance, which we will present in the coming months through December,” Chua said. Package 3 of the DOF’s proposed CTRP tackles property taxation, with the goal of lowering the rate of donor’s and estate taxes, as well as the rate of transaction taxes on land. The offsetting measures include the rationalization of valuation of properties, meaning, increasing valuation closer to market prices. The fourth package of the CTRP covers capital income taxation, which aims to reduce the taxes imposed on interest income earned on peso deposit and investments from 20 percent to 10 percent. Its offsetting measures include the harmonization of capital income-tax rates for dollar deposits and investments, dividends, equity and fixed income rates to 10 percent. It also includes increasing tax on stocks traded in the stock market from 0.5 percent to 1 percent on gross selling price. The fifth package is composed mainly of offsetting measures, from taxing fatty foods, luxury items, mining operations, lottery and casinos, revisiting the taxes on tobacco and alcohol, and creating a carbon tax. “We are banking on the popularity of the President [for all these measures to be passed], that is important, and also a broad-based support from stakeholders. They both need to support each other,” he said.

www.businessmirror.com.ph

Batangas Ventures enters agreement with ALN Group

atangas Ventures Properties & Management Corp. has entered into an agreement with the ALN Group of Companies, a pioneer franchisee of the Jollibee Group, for the latter to lease the prime property within the Batangas City Grand Terminal, a multipurpose transport terminal that will soon be a top destination for travelers, on Diversion Road, Alangilan, Batangas City. The agreement was formalized during a contract-signing ceremony held at the Batangas Ventures office in Makati City on June 20. Shown in the photo during the contract signing are (seated, from left) Numeriano B. Rodrin, executive vice president of Batangas Ventures; D. Edgard A. Cabangon, chairman of the board; Andrew Ng, chief executive officer of ALN Group; Atty. Vismarck Uy, vice president for Legal Department; and Bryan Lester Yu, vice president for Operations. Also present during the event were (standing, from left) Marvin C. Timbol, vice president for Finance of Batangas Ventures; Benjamin V. Ramos, president; William Mallari; and Jose Antonio Rivera, vice president for Marketing.

Port Authority biddings go on live streaming

he Philippine Ports Authority (PPA) has started to live stream a l l its bidd ing processes to boost the integrity and transparency of the agency’s procurement process. The PPA on Tuesday aired live the bidding for the proposed Abra de Ilog port project that involves the construction of a reinforced concrete Pier, construction of a roll-on, roll-off ramp and construction of access trestle. The project has a duration of about 360 days or one year. PPA General Manager Jay Daniel R. Santiago explained that the measure is aimed to stamp out corruption in small- and big- ticket procurement projects in the agency. “In order to maintain the integrity and credibility of the bidding process, the PPA is going live for every bidding process the agency is conducting,” Santiago stressed. “The public can simply log on to our web site, www.ppa.com.ph and click Bidding Live Streaming to v iew, spec if ic a l ly t he opening of bids, and help us re-

GSMI. . .

Continued from A1

In its appeal before the CA, GSMI argued that Ginebra has already acquired primary significance as a trademark in the minds of the consuming public, so it cannot be treated as a generic mark. It added that, granting without admitting that Ginbera was a generic mark, it has become distinctive and has over time acquired secondary meaning by virtue of its extensive, continued and exclusive uses since 1834. In ruling in favor of GSMI, the CA noted that another division of the CA had already ruled on May 11, 2015, in favor of GSMI on a similar case pertaining to its trademark application for the mark Ginebra San Miguel Flavored Gin Label Design. In t h at c a se, t he ODG -IPOPHL upheld the findings of the Bureau of Trademarks (BOT) director that Ginebra is gener ic and must be disclaimed. However, the Former Twelfth Division reversed and set aside the decision of the ODG-IPOPHL and ruled in favor of GSMI. “Settled is the rule that a final judgment or decree on the merits by a court of competent jurisdiction is conclusive of the rights of the parties of their privies in all

duce, if not eliminate, irregular acts during the entire process,” Santiago stressed. It may be recalled that a year ago, the new PPA administration committed to make the agency transparent and accessible to the public as much as possible, in accordance with the new work culture being installed by the Duterte administration. This year the total budget capital expenditure of the agency is pegged at P7.42 billion compared to the P3.5 billion in 2016 to implement several port projects that include the modernization of Mindanao and Visayas ports, like Iloilo, General Santos, Cagayan de Oro and Zamboanga; improvement of all passenger terminal buildings; repair and maintenance projects; and the implementation of 14 other projects. “We believe that involving the public’s eyes during the bidding process is a deterrent to questionable awarding of bids considering the magnitude of the projects,” Santiago added. later suits on points and matters determined in the former suit,” the CA stressed. It explained that the continuous and exclusive use of the term Ginebra since 1834 has become distinctive of its goods and business. “Petitioner need not disclaim the mark Ginebra as it had acquired a right to appropriate the mark since the same has become distinctive of petitioner’s goods and business after the lapse of almost two centuries,” the CA noted. However, with regard to the mark Since 1834, the CA held that the ODG-IPOPHL did not err in upholding the ruling of the BOT director that it must be disclaimed because it does not serve the function of a trademark. “The Court agrees with the ODG-IPOPHL that the term Since 1834 does not distinctively point to the origin or ownership of the goods. Petitioner cannot appropriate for itself the term Since 1834 because it merely signifies the period or year when the goods were first used,” the decision read. It added that all other manufacturers or producers with goods or services originating in the same year have equal rights to use the term Since 1834. Concurring with the ruling were Associate Justices Priscilla Baltazar-Padilla and Marie Christine Azcarraga-Jacob.

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Marawi as Daesh hub? No way, Palace says

ALACAÑANG on Tuesday dismissed the possibility of Marawi City becoming the Islamist State’s (Daesh) central hub in Southeast Asia, saying it fully trusts the military in finishing the job in the conflict-ridden city. Presidential Spokesman Ernesto C. Abella said the administration is relying its back on the security forces in securing Marawi City from Maute Group bandits. “At this stage, I suppose we’ll have to take the position that it’s unlikely for Marawi City to become a new hub for IS [Islamic State] fighters,” Abella said. Abella was responding to the concern of some US senators who warned that Marawi City could be the Daesh’s “caliphate” in the region, as fighting in the city has been going on for a month now. Republican Sen. Joni Ernst of Iowa said the US needs to step in the problem in order to contain the situation. “I don’t know that the IS are directing operations there [Southeast Asia], but they are certainly trying to get fighters into that region,” Ernst was quoted as saying.

“We need to address the situation. It should not get out of control,” Ernst added. However, Abella said Philippine armed forces are enough and ready to foil further attacks from the Maute Group. “The Philippine military has already preempted the Maute Group from establishing a wilaya or province in Marawi City,” Abella added. “So the role of the US in relation to the IS [problem in Marawi City] is to provide technical assistance as prescribed by the Constitution, and we will abide by that,” Abella said He added that whatever the US is providing in the war in Marawi City will remain as it is, limited to only intelligence and logistical assistance. Fighting continues in the southern third of the Philippines for a month now, as Islamist militants of the Maute Group are still striking against military and police forces. The conflict has left 249 people dead already, and the military has halted from setting a deadline after failing to finish the job in previous attempts. Elijah Felice E. Rosales

Ched rolls out assistance to medical students, Typhoon Yolanda victims By Elijah Felice E. Rosales @alyasjah

TOTAL of 110,000 students are expected to benefit from the Commission on Higher Education’s (Ched) tuition-assistance program for medical students in eight state universities and colleges and victims of Typhoon Yolanda, a senior Ched official said on Tuesday. In a news briefing, Ched Commissioner Prospero E. de Vera said the commission will provide an additional P5,000 of financial assistance to public- and private-school students enrolled in Yolanda-affected areas. “This appropriation of about P540 million is residual money coming from Yolanda funds not utilized in 2016,” de Vera added. “The Office of the President instructed the Ched to expedite the use of this money,” de Vera said. The financial assistance will be distributed at P5,000 each to an estimated 108,000 students in the Visayas. De Vera added the Ched has began sending notices to public and private universities in Yolanda-affected areas, so that the onetime aid will be made available to the beneficiaries the soonest possible time. “The students can use it to pay for their miscellaneous fees, to pay for their books, among others. It’s a one-time cash assistance long overdue because this is Yolandarelated, but we’re making sure that the release will be expedited,” de Vera said. In addition, the Ched is also drafting, through a technical-working group, a framework for the return-service agreement for medical students availing themselves of the government’s financial assistance. The Ched rolled out on Tuesday

a P317-million tuition-assistance program for students of eight medical state universities and colleges— Mariano Marcos State University, University of Northern Philippines, Cagayan State University, Bicol University, University of the Philippines-Manila, West Visayas State University, Mindanao State University and University of the Philippines School of Health Science. The program, students of the said schools will be granted tuition-free education. Around 2,000 students are listed by the Ched as beneficiaries of the financial aid. On the other hand, the students must return service to the country for public service upon graduation. “For every year that they enjoy the tuition assistance, they have to stay in the country for a year. It’s a one-to-one service agreement,” de Vera said. De Vera added the beneficiaries can opt to do their service in various capacities, which include residency in government tertiary hospitals and service at provincial hospitals and barrios. Failure to comply with the return-service agreement will result in the beneficiary reimbursing all the government aid he or she received throughout his or her tertiary studies. “The medical students’ tuition assistance has no income requirement. So as long as you are enrolled in a medical school, you can apply for it,” de Vera said. Meanwhile, de Vera added the Ched is eyeing the waiver of the requirements for students from Marawi City, Lanao del Sur, applying to transfer in a Metro Manila-based school. According to de Vera, this will ease the burden on the part of the student and will assist him or her to continue on with his or her studies in spite of being displaced.

Editor: Dionisio L. Pelayo • Wednesday, June 21, 2017 A3

Filipina domestic worker beats murder case in UAE

By Recto L. Mercene

@rectomercene

FILIPINO woman who was accused of killing her employee in the United Arab Emirates (UAE) escaped punishment when the Court of Appeals in Al Ain declared her “innocent without diyyah”, or payment of blood money.

The Philippine Embassy in Abu Dhabi confirmed that Jennifer Dalquez was declared innocent at a hearing on June 19. Dalquez, 30, was charged with murder for allegedly killing her employer, a certain Mr. Alaryani. Through her counsel, Dalquez argued that she was defending herself from Alaryani’s attempt to rape her when the incident occurred on December 7, 2014. Nonetheless, she was sentenced to five years’ imprisonment less the number of days she spent in jail, for stealing a mobile phone. The Court of First Instance of Al Ain meted out the death sentence on Dalquez on May 20, 2015. Her case was appealed to the Court of Appeals. “The Department [of Foreign Affairs (DFA)] has extended all assistance to Ms. Jennifer Dalquez, including provision of a lawyer, since her case was heard by the Court of First Instance in March 2015,” the DFA said in a statement. Her parents went to visit her in Al Ain in October 2015 and in March 2017, through the assistance of the DFA. In April women’s group Gabriela called on President Duterte to save Dalquez from death row during his visit to the Middle East.

Gabriela filed a House resolution earlier this year calling on the President to seek executive clemency for Dalquez.

Migrante elated

THE migrant workers’ group Migrante International expressed elation and relief over Dalquez’s acquittal, which came more than two years after the seriously injured Dalquez was arrested after fending off the attack by her knifewielding assailant. Mig ra nte Inter nat iona l, through Spokesman Arman Hernando, said the group “is very happy to receive news that Jennifer Dalquez has been acquitted from the crime of murder and, thus, saved from death row”. However, the acquittal may still be appealed before the UAE Supreme Court, meaning Dalquez will not be released automatically due to the verdict of the appellate court. Hernando added: “We have talked to Jennifer’s parents, and they confirmed that they were contacted by the DFA, which relayed to them the good news. We also thank the DFA for having graciously imparted directly to us the positive update.” The past administration actually tried to prevent the Dalquez family

from talking with Migrante and other non-governmental organizations supporting migrant workers, but Jennifer’s mother, Rajima, sought their help after claiming that the DFA did not help Jennifer. The National Council of Churches in the Philippines (NCCP), with ministers from the United Methodist Church and the United Church of Christ in the Philippines and priests from the Iglesia Fillipina Independiente providing support, called on the faithful to pray that Dalquez be acquitted and spared from execution. NCCP’s Churches Witnessing with Migrants has been actively providing assistance to imprisoned and harassed overseas Filipino workers and their families. “We take the side of the vulnerable. Dalquez’s move was an act of self-defense. May her death sentence be commuted,” the NCCP said. Migrante said that owing to Dalquez’s acquittal, she would not be compelled to pay blood money to the relatives of the deceased. However, she is still expected to serve five years in prison, but not on death row. “Once again, our collective prayers, active intervention and resounding clamor for justice have prevailed,” Migrante stressed. “On behalf of the Dalquez family, we thank all supporters, migrants advocates and humanrights defenders in the ‘Save Jennifer Dalquez’ campaign. We stand resolute to continue with the fight to save all Filipinos on death row,” it added. An overseas worker since 2011, Dalquez worked abroad to overcome poverty, since her husband could barely support her and her two children in General Santos City. She flew to the UAE in December 2011 to work as a house maid,

leaving her two children to her mother’s care. Three months later, Dalquez said her employer tried to rape her, but she was able to escape and asked the wife of her tormentor to allow her to go home, to which she obliged. However, she was offered a job as a cashier at a restaurant and took the offer, but left in 2013 to work as an assistant for a doctor she had met. Dalquez did odd jobs, cleaning houses as a sideline, to earn more money before leaving the UAE for good in January 2015. On December 7, 2014, she was asked to clean an Emirati policeman’s house, but the offer was apparently a ruse, as the employer tried to rape her at knifepoint, sustaining serious wounds as she grappled with him for the knife, which she used in defending herself. In an audio tape secured by Migrante and presented to Duterte, Dalquez narrated the assault: “Napatay ko po ang aking among pulis dahil tinangka niya po akong gahasain at patayin. Sinunog po niya ako. Pinalo, sinuntok, at sinara niya po ang pintuan palabas at doon niya po ako pinalo ng bote sa mukha sa bandang taas ng mata. Noong tinangka niya po akong saksakin, nakaiwas po ako at sa awa ng Diyos ay naagaw ko ang kutsilyo sa kaniya. Tatlong beses po kaming nagrambulan simula sa sala patungo sa loob ng kwarto niya. Sigaw po ako nang sigaw ng tulong, ngunit wala pong nakarinig sa akin. Ilang beses kaming nagagawan ng kutsilyo, kahit anong iwas ko palayo sa kaniya, hinahabol niya pa din ako para patayin. Nitong huli, doon ko na po siya nasaksak sa lungs niya, hindi ko po sinasadya iyon. No choice lang po ako. Alang-alang sa buhay ko na makalabas nang buhay sa bahay niya, dinepensahan ko lang po ang sarili ko. Ang dami kong sugat at ang dami ko rin dugo sa ulo po at mukha, kamay, katawan…” With Marvyn N. Benaning

Military Bishop Leopoldo Tumulak dies at 72

ISHOP LEOPOLDO TUMULAK of the Military Ordinariate of the Philippines died on June 17. He was 72. Tumulak, who had led the diocese since 2005, passed away at 1:26 p.m. at the Cardinal Santos Medical Center in San Juan City, the Catholic Bishops’ Conference of the Philippines (CBCP) said. He has been in and out of the hospital after he was diagnosed with pancreatic cancer early this year. As military ordinariate, he served as an ecclesiastical pastor, serving all military and police personnel, their dependents and civilian employees. At the time of his death, he was also serving as chairman of the Episcopal Commission on Prison Pastoral Care (ECPPC) of the CBCP. “It is a sad day for the jail and prison ministry because we lost not only a chairman in our commission, but one who truly is a father to us all,” said Rodolfo Diamante, ECPPC executive secretary. Diamante added the bishop “has reflected the image of a compassionate God who really cares about his people”. “Up to his last minute he wanted to spend his remaining days with his flock and spent quality time with them. His life of service will be etched in our hearts. We will never forget him,” he said. Tumulak also served as the first chairman of the bishops’ Commission for the Cultural Heritage of the Church from 1996 to 2005. In 2000 Pope John Paul II appointed him as a consultor to the Vatican’s Pontifical Commission for the Cultural Heritage of the Church, a position he held until 2005. A native of Santander in Cebu province, Tumulak was ordained priest in March 1971. In January 1987 he was appointed as the auxiliary bishop of Cebu, where he served for five years or until 1992, when he was named the bishop of Tagbilaran. The Military Ordinariate has about 130 priests, 126 of

whom are diocesan clergy, while four are religious. The Military Ordinariate, through Lt. Col. Harley B. Flores, chancellor of the Armed Forces Chaplain Service, released the following schedule of Tumulak’s wake and interment. His wake was initially held at the Shrine of Saint Therese of the Child Jesus in Pasay City starting on June 19. On June 21, at 2 p.m., his body will be

transferred from the Shrine of Saint Therese to Saint Ignatius Cathedral in Camp Gen. Emilio Aguinaldo, Quezon City. Arrival honors will be held at 3 p.m. and a concelebrated Mass will be presided by Brig. Gen. Tirso A. Dolina, the chief chaplain, at 6 p.m. A necrological service will follow. On June 22, at 9 a.m., a funeral Mass will be held at the Saint Ignatius Cathedral, followed by departure honors and burial ceremony.

Armed to the teeth private security guards deployed at airport By Recto L. Mercene @rectomercene

HE Manila International Airport Authority (Miaa) started fielding on June 15 a private security agency, whose guards are armed with rifles and shotguns, to augment the National Police’s Aviation Security Group (Avsegroup), many of whose members are gunless.

Miaa General Manager Ed Moreal said Lanting and Advance Security agencies are highly visible in the four Manila International Airport (Mia) passenger terminals to deter potential troublemakers. “The airport is not under any threat, but the sight of armed security men is good for the passenger’s peace of mind,” he added. The Mia called in the two security

agencies following the attack on Marawi City on May 23 and the attack on Resorts World by Jessie Javier Carlos on June 2, which killed 38 persons, including himself. Meanwhile, reports said about 200 policemen from the Avsegroup are gunless, because they have not been issued firearms by the National Police. However, their mere presence at

the four terminals of the Ninoy Aquino International Airport, augmented by bomb-sniffing dogs, makes the local and foreign travelers feel safe. Although devoid of guns, the policemen, who asked not to be named, said they put their lives on the line, “to serve and protect the community, particularly local and foreign travelers”. They added they were in a vul-

nerable position, unable to defend themselves and the community against armed attacks by individual or criminal groups. To pretend they are not “helpless”, some of the policemen fill their empty holsters with towels. “We all know that with the current war on illegal drugs, we put our lives in great danger, but we survived through the year being

gunless policemen,” an Avsegroup trooper said. Presently, the National Police is short on guns and, according to the 2015 Commission on Audit report, out of 147,041 only 124,738 have been issued firearms. A total of 623 policemen were using donated handguns, while 3,654 have no record of having been issued service firearms.

Economy

A4 Wednesday, June 21, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

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PTAA still optimistic on PHL tourism growth despite martial law in Mindanao

By Recto Mercene

@rectomercene

he Philippine Travel Agencies Association (PTAA) is confident the country’s tourism industry will regain its growth path once President Duterte decides to lift martial law in Mindanao.

At the same time, the group also called for a stakeholders’ meeting to discuss the various issues currently affecting the industry. PTAA President Marlene D. Jante said perception is the biggest concern right now, especially for those who have not been to the country yet. “The mere mention of the words martial law can easily scare tourists away. But we understand and support the government in its actions in Mindanao. The problem in Marawi must be contained. But we know, as travel agents, that most of Mindanao and the rest of the coun-

try are safe destinations for tourists to enjoy,” Jante said. “The country has seen worst situations in the past and, every time, our tourism industry has bounced back. We in the PTAA believe that the series of incidents over the past several weeks are just temporary setbacks,” she added. Jante said the martial-law declaration is only expected to last 60 days since its proclamation on May 23, and that both the government and the private sector should come together to craft a short-term plan for the tourism industry covering

the rest of the year and 2018. This, as she expects that there will be a decline in tourist arrivals and receipts in May and in the current month, even as the country posted a healthy 12-percent growth in arrivals for the first quarter of the year as compared to the same period in 2016. “This is the reason our association is currently conducting an internal survey among members. We want to see how the recent developments have impacted their respective businesses. This will be a good gauge on how the industry is performing,” she said. Jante added they will be asking all their members to provide data over the past two months and assess how the travel advisories all the way to the time the Marawi siege erupted have affected their operations. She said the data gathered and subsequent analysis will then be forwarded to the Department of Tourism (DOT), like the compiled inputs from its members it quickly submitted on the thennew “Experience the Philippines”

The country has seen worst situations in the past and, every time, our tourism industry has bounced back. We in the PTAA believe that the series of incidents over the past several weeks are just temporary setbacks.”—Jante

campaign, which was later on criticized for being copied. “There has always been a high level of communication and discussion between the PTAA and the DOT. We are more than glad to provide our inputs to them on anything related to the country’s tourism,” Jante said. In April the United States, Canada, the United Kingdom, Australia, France and New Zealand issued separate travel advisories advising their citizens not to travel to Central Visayas because of the existence of serious threat of kidnappings. After a month, the US, Canada, the UK and Australia issued a second travel advisory, as they advised their citizens against traveling to Palawan because of potential terror-

ist activities. Then there were the Marawi and Resorts World Manila incidents along with the flak the DOT received for its new tourism campaign. “We do not want to add further to what has happened with the new tourism campaign because, to us, that is an issue that can be easily resolved. What we want is for every stakeholder in the industry to come together and chart a united path for the country’s tourism industry,” she said. Jante remains confident that if everyone in the industry works together, the 6.50 million in tourist arrivals and 73.30 million domestic travelers targets by the government for the year remain achievable. The PTAA, established in 1979, is the country’s biggest tourism association. With more than 500 members nationwide, it is the leading partner of the government in promoting the tourism industry.

DOTr launches OFG for PUV modernization

ignaling the lift of the 13year moratorium on the franchises of new public-utility vehicles (PUVs), the long-delayed modernization program for public transport was launched on Tuesday, with government officials vowing to assist drivers and operators in the planned three-year initiative. Transportation Secretary Arthur P. Tugade, along with other government officials, signed the Omnibus Franchising Guidelines, which requires local government units to develop their own Local Public Transport Route Plan. The local transport plan will be based on the current and projected travel patterns in their respective areas, and shall be used by the Land Transportation Franchising and Regulatory Board (LTFRB) as basis for issuing franchise. PUV drivers and operators, meanwhile, have been vocal in expressing disapproval in the modernization program, suggesting that their vehicles could undergo rebuilding instead. “Unfortunately, what they are suggesting is not a holistic rehabilitation. We want a modern jeepney that has a convenience and safety features, drivability and maneuverability for the drivers and passengers. We will not allow rebuilding,” Transportation Assistant Secretary Mark Richmund M. de Leon said. According to LTFRB Chairman Martin B. Delgra III, there will be a special loan program that would provide operators low equity, low interest rates and longer payment periods. Charlotte Furigay

Duterte set to approve ₧285-billion NSRP south line project–lawmaker

resident Duterte is set to officially approve by the end of this month the P285-billion South line of the NorthSouth Railway Project (NSRP) that will provide reliable rail system between Bicol and Manila. After several hitches in the past, and reportedly stricken out of the Department of Transportation’s publicprivate partnership (PPP) list due to funding and investment problems, Albay Rep. Joey S. Salceda said the project will finally push through under the Duterte administration. Salceda said the project will start this year, this time under a different procurement method, since it “remains a priority investment project of the national government” and a vitally urgent infrastructure for Southern Luzon. It was reclassified under the direct expenditure scheme, which means the national government and Congress “would find ways to look for the needed financing to implement it”, said Salceda, senior vice chairman of the House Ways and Means Committee. The project, which will be completed by 2021 within the term of Duterte, involves new sets of railway tracks from Tutuban to Legazpi City in Albay, then to Matnog in Sorsogon, crossing the Southern Tagalog region and mainland Bicol. He said Japan and China have both recently pledged commitments to the project. “As I have been advised, the TutubanLos Baños line would be financed [and therefore implemented] by Japan and the Los Baños-Matnog would be financed by China. This is a critical and central project of President Duterte,” said Salceda, who recently had consultation meetings with Socioeconomic Planning Secretary Ernesto M. Pernia, Budget Secretary Benjamin E. Diokno and National Economic and Development Authority (Neda) Deputy Director General Rolando G. Tungpalan. The NSRP south line was one of three railway projects approved by the NedaInvestment Coordination Committee (ICC) during the joint technical Board and Cabinet Committee meeting on June 1. It was approved in 2015 by the Bicol

30%

Expected tourism boost for the Bicol region upon completion of the NSRP Regional Development Council, which Salceda chaired, and endorsed to the Neda Interagency Coordinating Committee for PPP. It was approved by the Neda Board on February 16, 2015. Salceda said the South Railway Line, when completed, will vastly improve connectivity and efficiency among urban centers and regional growth hubs and, thus, enhance productivity in the industry, services and agriculture sectors, and will further boost Bicol’s tourism by as much as 30 percent, which forms part of the predicted 24 percent economic returns it will bring to the countryside when fully operationalized. The lawmaker, one of the most ardent proponents of the project, said the NSRP South Line completes Albay’s multimodal transport model—air, sea, road and rails—and, is expected to unlock the huge potentials of Bicol, particularly Albay, Bicol’s regional center and hub. It is also expected to cut by half the present 12-hour Manila-Legazpi travel time and, at the same time, provide commuters a comfortable and reliable transport system. Its proposed P1,300 fare per passenger is deemed reasonable enough. “The project will, likewise, expand trade and open more investment opportunities that will make Bicol’s agricultural and processed products more competitive in the markets of Divisoria, and in bringing in needed inputs to our industries, and basic commodities to our households. Tourism will receive the biggest boost from it, hiking tourist flow—domestic tourism by 30 percent and foreign arrivals by 10 percent—since a train ride from Manila to Legazpi is an attraction by itself,” Salceda added. PNA

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Editor: Jennifer A. Ng • Wednesday, June 21, 2017

Govt urged to hike budget for veggie production By Jasper Emmanuel Y. Arcalas

@jearcalas

he Duterte administration should allocate more funds for its high-value crops (HVC) program to boost local vegetable production and reduce the country’s dependency on imports, an executive of East-West Seed (EWS) said on Tuesday. EWS General Manager Mary Ann Sayoc said the Department of Agriculture (DA) should “calibrate and balance” the allocation for its commodity programs to boost the productivity of vegetable growers. “We think that the DA should also pay more attention to highvalue crops development. Because, right now, the focus is on rice and livestock and there’s very little budget for high-value commercial crops,” Sayoc said in a news briefing in Bonifacio Global City, Taguig. “So there’s a lot to develop. What we are looking at is more on improving the value chain, the efficiency of the value chain,” Sayoc added. Citing the report of the Euromonitor International on the situation of fresh fruits and vegetables in the Asia Pacific, Sayoc said the Philippines failed to grab a bigger share of the $2-billion vegetable market in the region. Sayoc added the Philippines’s share of the AsiaPacific vegetable market stands at $240 million, lagging behind Japan, Vietnam and Indonesia. “There is a lot of potential in the Philippine vegetable sector. Annually the country’s vegetable production is increasing by almost 2 percent and the growth of area being dedicated to planting vegetables is at 1.7 percent,” she said. “The country’s annual growth rate for vegetable production is close to 2 percent, not enough to meet even the local demand for vegetables. That is why we still need to import more than $3 million worth of vegetables, which could be supplied by our local farmers,” Sayoc added. The EWS official noted that the inadequate supply of fresh produce is also seen as one of the reasons Filipinos are among the lowest consumers of vegetables in the Asia-Pacific region on a per-capita level. Citing latest government data, Sayoc said the country’s vegetable consumption per capita is at 44 kilograms per year, only half of the World Health Organization’s rec-

ommended annual consumption of 73 kg for a healthy diet. “The Philippines consumes less than half the amount of vegetables that Vietnam does. Over 30 percent off the Philippine population is overweight and malnourished,” Sayoc said. “Therefore, an increase in the availability, affordability and consumption of nutrient-dense vegetables is one way to combat malnutrition,” she added. Sayoc cited the decline in Filipinos going into agriculture as a major factor behind the insufficient supply of locally produced vegetables. “Due to the rising demand for vegetables in the country, the field of agribusiness is expected to grow. However, the current generation shies away from the field because it is perceived as difficult and unrewarding,” she said. “The reason for this perception is that Filipino farmers predominantly plant rice and sugarcane, which yield less income when compared to vegetables,” she added. Sayoc a lso noted that the cost of growing vegetables is also higher compared to the country’s Asean counterparts, resulting in more expensive produce and lower consumption. “We are trying to encourage more farmers to plant more vegetables. But we Filipinos are not used to eating vegetables,” she said. “We produce vegetables that are more expensive than those in other Asean countries. Right now I would estimate that our production cost is 30 percent to 40 percent higher,” Sayoc added. EWS is an integrated vegetable seed company and one of the 10 largest seed companies in the world. In 2016 it was ranked No. 1 in the “Global Index for Vegetable Seed Companies” by Access to Seeds, an independent organization funded by the Bill and Melinda Gates Foundation.

Farmers in Nueva Ecija gather vegetables that will be sold to various markets in Metro Manila. Millions of Filipinos continue to rely on farming to earn and put food on their table. FILE PHOTO

PhilRice: Pinoys must eat brown rice to avoid diabetes, other health issues A mid the fuss on whether to ban “unlimited rice” in the country or not, the Department of Agriculture (DA) on Tuesday urged Filipinos to consume brown rice rather than the well-milled variety if they want to remain healthy. The DA, through its attached agency the Philippine Rice Research Institute (PhilRice), said studies abroad have affirmed that eating too much rice has ill effects on human health. Citing a study by the Harvard School of Public Health, the PhilRice said in a statement that excessive rice intake may adversely affect glucose metabolism and insulin production of the body that could result in diabetes. “That is the main reason we are promoting brown or unpolished rice, as it has lower glycemic

index, which means that it takes longer before it is converted to blood sugar. It also has higher satiety so you tend to eat less. Those are the reasons it is better for diabetics compared with white rice,” said Myriam Layaoen, PhilRice’s “Be Riceponsible” campaign director. The Har vard study showed that a carbohydrate content of one bowl of rice is equivalent to more than twice of a can of soft drink, according to the PhilRice. The agency added that each plate of white rice eaten in a day raises the risk of diabetes by 11 percent. Layaoen said the attached agency of the DA’s Be Riceponsible campaign aims to influence policy directions and involve farmercooperatives to make brown rice more accessible and affordable to consumers.

US cattle ranchers sue to return country-of-origin labeling

POK A NE, Washing ton— Ranchers on Monday sued the US Department of Agriculture (USDA), seeking to force meat to again be labeled if it’s produced in other countries and imported to the United States. The lawsuit, filed in federal court in Spokane, seeks to overturn a March 2016 decision by the USDA to revoke regulations requiring imported meat products to be labeled with their country of origin. That change allowed imported meat to be sold as US products, the lawsuit said. “Consumers understandably want to know where their food comes from,” said David Muraskin of Washington, D.C., an attorney for Public Justice, which filed the lawsuit. “With this suit, we’re fighting policies that put multinational corporations ahead of domestic producers and shroud the origins of our food supply in secrecy.” Between 2009 and 2016, the USDA required country-of-origin labeling on meat. The lawsuit said the change violated the nation’s Meat Inspection Act, which required that

Chandan Khanna /AFP/Getty Images/Bloomberg

slaughtered meat from other countries be clearly marked. The Department of Agriculture on Monday declined to comment on a matter that is in litigation. The lawsuit was brought by the Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America, the nation’s largest group of independent cattle producers, and the Cattle Producers

of Washington. Bill Bullard of United Stockgrowers said the labeling is essential to allow Americans to support US ranchers. “Empowering consumers to buy American beef with country-of-origin labels will strengthen America’s economy,” Bullard said. Multinational corporations use the lack of clear labels “to import

more beef from more foreign countries, including countries with questionable food-safety practices,” he said. The lawsuit asks the court to vacate USDA’s current regulations, which allow corporations that import beef and pork and other products into the United States to label that meat “Product of USA”. Beth Terrell, another attorney for Public Justice, which is a nonprofit legal group, noted that President Donald J. Trump initially expressed support for country-of-origin labeling, but he has since backed off. “Both consumer advocates and domestic producers were disheartened by President Trump’s reversal,” Terrell said. More than 800 million pounds of foreign beef is imported into the United States each year, Public Justice said. Without country-of-origin labeling, “domestic ranchers and farmers tend to receive lower prices for their meat because multinational companies can import meat and misleadingly present it as homegrown,” Public Justice said in a news release. AP

“We are tapping local governments to issue ordinances and resolutions that will support the advocacy. Meanwhile, we also talk to farmer groups to produce brown rice and sell it at reasonable price,” she said. “We also partner with food establishments throughout the country to encourage their participation,” Layaoen added. She said brown rice is just an ordinary rice, but unpolished during milling, with a milling recovery rate that is 10 percent higher than the ordinary ones. PhilRice Executive Director Sailila Abdula said the agency would continue to improve the rice ecosystem, particularly making brown rice affordable to consumers, through research and development.

“We are not just looking at production but also at the other side of rice security, which is consumption. We welcome any support toward achieving rice competitiveness, especially from our colleagues in the government. The good news should start from us,” Abdula said. “We are one in curtailing rice wastage because we believe that every grain our farmers produce means life to a Filipino, and could help in ensuring enough supply of rice for the country,” he added. The Be R iceponsible campaign is the DA’s nationwide initiative to promote responsible rice consumption by reducing rice wastage in households and eating healthier forms of rice, such as brown rice, according to the PhilRice. Jasper Emmanuel Y. Arcalas

Tesda partners with agri dept in putting up farm schools in PHL

he Technical Education and Skills Development Authorit y (Tesda) has partnered with the Department of Agriculture (DA) for the establishment of farm schools across the country. The two agencies have partnered for the establishment of Agricultural Training Institute (ATI) Farm in School in the Mimaropa region. “There are currently other farm schools in the Philippines under Tesda and the DA’s supervision,” Tesda noted. It added that Tesda Director General Guiling Mamondiong has directed all Tesda regional and provincial directors nationwide to promote farm schools in their areas to increase the number of enrollees. Meanwhile, Tesda shared that the groundbreaking ceremony of the ATI Dormitory in Naujan, Oriental Mindoro, recently was attended by Sen. Cynthia A. Villar. “ The senator highlighted

that food security is among the major issues that need to be addressed. Thus, she has worked with Tesda to promote training institutions for farmers,” the agency said. According to Tesda, Villar noted that farm schools not only serve as a venue for farmers to learn the various techniques in production, but will also enable them to learn how to manage their farms more effectively. The farm schools under the supervision of Tesda and the DA were based on the Farm Field Schools developed by the UN Food Agriculture Organization. “Farm schools aim to help farmers become more competitive, and also to enable them to take advantage of the market opportunities,” Tesda noted. Likewise, Mamondiong said the agency hoped that the agency’s farm schools would increase awareness on fishing and farming, and eventually help farmers earn more. PNA

The World BusinessMirror

Wednesday, June 21, 2017

EU wins in 1st Brexit talks as UK retreats on timing T he UK lost its first battle with the European Union over the timetable for Brexit talks, as the bloc’s chief negotiator warned that the consequences of leaving will be “substantial”.

On day one of the negotiations, Prime Minister Theresa May’s government gave in to EU demands to discuss the terms of its divorce— including the exit fee—before any consideration can begin on the future trade deal Britain wants with Europe’s common market. T he EU ’s chief negotiator, Michel Barnier, bluntly warned that such an accord would not be fleshed out until after the UK leaves in less than two years. It was a clear rebuff to May’s stated ambition of wrapping up a new free-trade agreement quickly. “I’m not in a frame of mind to make concessions,” Barnier told reporters at the end of the first day of talks in Brussels. “The UK

has decided to leave the EU. It’s not the other way around.” This uncompromising stance is “not about punishment” or “revenge”, but simply a consequence of the UK’s decision to exit, he said. “The consequences are substantial”.

Clock ticks

T he d iscussions bet ween UK Brexit Secretar y Dav id Dav is and Barnier marked the end of the beginning of what both sides expect to be a complicated and confrontational process to unwind more than four decades of membership. The clock is ticking down to midnight on March 29, 2019, when the UK will leave the

EU, with or without a deal. Almost a year after British voters took the decision to leave the bloc, Davis took a team of officials to open the negotiations with Barnier in the European Commission’s Berlaymont building on Monday. He pushed back against speculation that the UK might seek to soften Brexit by trying to remain in the EU’s single market and tariff-free customs union. “We need to bring back to Britain control of our laws and control of our borders,” he said. Just a month ago, Davis had predicted “the row of the summer” would erupt over how to structure the talks on Brexit. He wanted parallel discussion, covering both the future trade deal and the terms of Britain’s departure—including a demand for an exit payment of as much as €100 billion ($112 billion). Britain is “very conscious of how they will use that time sequence to pressure us, and we’ll avoid that at every turn”, Davis told ITV on May 14. By Monday, he’d given up the fight.

Fair deal

Davis said Britain hadn’t backed down. When the EU “decides we have made enough progress— their words—both sets of dialogs will continue, including free trade,” he added. The UK and EU hope the first phase of talks focusing on the exit terms will conclude by October, allowing trade negotiations to begin. Both sides were keen to emphasize their desire to work positively and to reach a fair deal that will foster friendly relations once Britain leaves. T he i r e a rly pr ior it y w i l l b e to reassure the estimated 4.5 million European and British nationals liv ing in each others’ countries that they won’t be forced to leave their homes or find new jobs after Brexit. May, bruised by an election this month that cost her Conservatives their parliamentary majority, will make her case for a quick agreement on residency for EU nationals and employment rights at a summit of European leaders in the Belgian capital later this week. She will then publish a detailed outline of her offer on Monday, Davis said.

Diplomatic pleasantries

Solving the vexed question of keeping the peace and an open border between the UK province of Northern Ireland and the Irish Republic will also be an urgent priority in the talks, Barnier and Davis agreed. The two negotiators already know each other well. They both served as Europe ministers—

for France and Britain, respectively—at the same time during the 1990s. They tried to present a cordial and friendly image to the world at their first session. Both are keen hikers, and they exchanged presents ref lecting their shared interest. Dav is gave Bar nier an or ig ina l, French-lang uage account of an ex pedition to the Himalayas, while Barnier reciprocated w ith a traditiona l wa lk ing stick from his home reg ion of Savoie. A fter a pr ivate one-onone meeting, the pair went to lunch with four senior officials, dining on Belg ian asparag us, red mu l let and mer ing ue ca ke w ith strawber r ies. Despite the diplomatic pleasa nt r ies, t he sca le of t he challenge quick ly became c lea r, as bot h men open ly ack nowledged t he r isk t hat t he t a l k s cou ld b e come d a nger ou sly overheated. “ I w i l l do a l l I ca n to put emot ion to one side,” Bar nier said. “ T here w il l be no host i l it y on my side.” T he negot iat ions opened against a backdrop of turmoil in the UK, after May’s decision to call an early vote to strengthen her position went spectacularly wrong, and she was lambasted for her response to a horrific fire at a London tower block of social housing. May’s Tories are now stuck in power-sha r ing t a l k s w it h Northern Ireland ’s Democratic Unionist Party, while she’s under pressure from some ministers to seek a softer Brexit. Bloomberg News

Trump blames ‘brutal’ N. Korea for student’s death

r e s i d e n t D onald J. Trump on Monday denounced the death of Otto Warmbier, saying the University of Virginia student who spent more than a year imprisoned in North Korea suffered at the hands of a “brutal regime”. “At least he got home to his parents,” the president said during an event with technology CEOs at the White House, speaking just hours after Warmbier died. He was sentenced to 15 years of hard labor in March 2016 for trying to steal a political banner, and was medically evacuated to Ohio last week. The 22-year-old student’s death risks escalating tensions as the US looks to halt North Korea’s push to secure a nuclear-armed missile capable of reaching North America. While Trump has warned that “all options” are on the table, so far he’s focused on pressuring China—North Korea’s main ally and benefactor—while looking to get on the same page with a more dovish administration in South Korea. Public outrage in the US over the captivity and death of a college student may now change his calculus. Secretary of State Rex Tillerson said the US holds North Korea accountable for Warmbier’s “unjust imprisonment” and demanded the release of three other American citizens still in detention.

‘Extremely difficult’

“This makes it extremely difficult for the US to move forward to make any overture toward North Korea absent the release of the three other prisoners,” said Ralph Cossa, president of the Pacific Forum CSIS in Honolulu. “The public opinion will be played upon by those in power, and will prevent any kind of flexible response.” In addition to the American prisoners, North Korean authorities have detained six South Koreans and one Canadian citizen, according to the Unification Ministry in Seoul. President Moon Jae-in, who took

power last month, condemned North Korea for its treatment of Warmbier and said he would push for the return of South Korean prisoners as well. Prior to the incident, tensions had risen between Moon and the US over the deployment of a missile shield that took place under his predecessor. Earlier this month, Moon temporarily halted the installation of remaining components of the Terminal High Altitude Are a D e fe n s e s y s te m , p e n d i n g a n environmental impact assessment. Moon is scheduled to visit the White House later this month. Warmbier had reportedly been in a coma since March 2016. Doctors described his condition as a state of “unresponsive wakefulness” and said he suffered a “severe neurological injury” of unknown cause while in North Korean custody.

Trump involved

I n a statement issued shor tly after his public remarks, Trump said that he extended his “deepest condolences” to the Warmbier family. “Otto’s fate deepens my Administration’s determination to prevent such tragedies from befalling innocent people at the hands of regimes that do not respect the rule of law or basic human decency,” Trump said. “The United States once again condemns the brutality of the North Korean regime, as we mourn its latest victim.” Warmbier, who was visiting North Korea as part of a student tour, was released some 17 months after he was first detained. His return was celebrated by the Trump administration as evidence of successful diplomacy. The White House has described the president as personally involved in securing his release. In a statement, the Warmbier family thanked the medical team that treated their son and those who had offered their thoughts and prayers. Bloomberg News

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briefs Russia threatens after U.S. downs Syrian warplane BEIRUT—Russia is retaliating following the US military’s shooting down of a Syrian warplane. Moscow is threatening aircraft from the US-led coalition in Syrian-controlled airspace and has suspended a hotline intended to avoid collisions. The US says it downed the Syrian jet last Sunday after it dropped bombs near US-backed Syrian Democratic Forces conducting operations against the Islamic State group. AP

U.K. charges Barclays on Qatar fund-raising LONDON—Britain’s Serious Fraud Office has charged Barclays Plc. and four former executives with conspiracy to commit fraud when they sought investment from Qatar in 2008. The bank former Chief Executive John Varley, former Investment Banking Chief Roger Jenkins, Thomas Kalaris, who headed the bank’s wealth-management division, and Roger Boath, head of the European financial institutions group, were all charged with conspiracy to commit fraud by false representation in relation to a first round of investment in June 2008. Barclays, Varley and Jenkins were charged with another count in regard to a second capital raising in October 2008. Barclays, Varley and Jenkins were also charged with providing unlawful financial assistance. AP

Macron’s govt expected to quickly pass big laws PARIS—France’s new President Emmanuel Macron has vowed to quickly implement security, anticorruption and labor measures he considers as priorities. They are expected to easily pass parliament during a special session in July, now that the government has a wide majority at the National Assembly. The French government is going to seek an extension of the state of emergency from July 15, its current expiration date, until November 1. France’s government has presented a draft law on cleaning up political ethics after years of corruption scandals. The most sensitive of Macron’s reforms is a set of measures that would ease hiring and firing with the aim to bring down the unemployment rate—now just below 10 percent. Unions fear it would destroy workers’ protection instead. The measures will have to be ratified by parliament. AP

China tour agency says it won’t take more U.S. tourists to North Korea BEIJING—The organizers of a trip to North Korea by an American college student who died after being released from prison in a coma say they will no longer take US citizens to the country. Young Pioneer Tours said on Tuesday on its Facebook page that the death of 22-year-old Otto Warmbier shows that the risk American tourists face in visiting North Korea “has become too high”. Warmbier died in Ohio on Monday, days after being released by North Korea. The tour operator said that it was denied any opportunity to meet with Warmbier after his detention, and that the way it was handled was “appalling”. AP

Australia to restrict gas exports due to domestic shortage CANBERRA, Australia—Australian government says it will restrict gas exports from next year to contain soaring energy prices in the domestic market. Australia is about to overtake Qatar as the world’s largest exporter of liquefied natural gas. But most Australians face escalating power bills, because state governments have restricted further gas exploration, and no new coalfired power stations are being built to replace aging generators that will soon be decommissioned. Prime Minister Malcolm Turnbull said on Tuesday the government would not tolerate customers in Japan paying less for Australian gas than some Australian businesses were charged. AP

ExportUnlimited BusinessMirror

Editor: Efleda P. Campos • Wednesday, June 21, 2017

DTI-Citem targets $22-M export deals in Taiwan food market

IXTEEN top Philippine food manufacturers will headline the Philippine delegation that will showcase their products at Food Taipei, the Taipei International Food Show to be held from June 21 to 24, at the Taipei Nangang Exhibition Center.

Organized by the Taiwan External Trade Development Council (Taitra) and considered as one of Asia’s leading food shows, the show will coincide with five events and over 1,500 exhibiting companies. The Food Philippines exhibition is part of the efforts of the Department of Trade and Industry, through the Center for International Trade Expositions and Missions (DTI-Citem), to strengthen the position of the Philippines as a leading source of premium, natural, healthy and ready-to-eat processed food and beverages in the Taiwan food market. Exhibitors will be representing the Philippines’s premium products,

such as coconut, banana, cacao, tuna and other healthy food products. Tagged as one of Asia’s “Four Tigers”, Taiwan has a vibrant economy and is considered one of the richest in Asia. “Our aim is to increase the market share of Philippine food exports to Taiwan by achieving at least $22 million worth of export sales. For the longest time, Taiwan has been increasingly reliant on food and agricultural imports due to the country’s limited arable land and agricultural production. This factor enhances the market opportunities for the Philippines, to penetrate the Taiwan food market,” Citem Executive Director

Clayton Tugonon said. The exhibitor team is composed of manufacturers and exporters of products from the southern regions, focusing on a mix of fresh and processed healthy and natural products, halal, ready-to-eat food and industrial ingredients. Exhibitors include Raw Brown Sugar Milling Co. Inc. for organic muscovado sugar; ProSource International Inc. for virgin coconut oil (VCO), nectar and amino; Pasciolco Agri-Ventures for VCO, coco sugar, coco jam and coco-sap vinegar; Malagos Agri-Ventures Corp. for unsweetened chocolate, roastedcacao nibs and dark chocolate; Fitrite Inc. for fruit juices, noodles, mixes and bagoong; Year Luck Food and Industrial Corp. for soft-serve ice cream powder and ice-cream cones, waffles and wafers. Also participating are Tropicana Food Products Inc. with their VCO; CJ Uniworld Corp. for banana chips; Celebes Canning Corp. for canned, pouched and frozen tuna; DMI Medical Supply’s Food Division for the MX3 food supplement, MX3 coffee and MX3 tea, which uses xanthone from mangosteen;

and JNRM Corp. with native premixed delicacies and flavor syrups. JNRM Corp. will bring their premixed products of Philippine homegrown delicacies, such as kutsinta, bibingka, espasol, ube halaya, sapinsapin and maja blanca. The DTI-Citem also partnered with the DTI-Export Marketing Bureau (DTI-EMB) to feature in the Taiwan food fair the export-ready products of companies under the Regional Interactive Platform for Philippine Exporters (Ripples) Plus Program. Participating under the Ripples Plus Program are Mama Tina Pasta with their noodles, pasta and canned meat; Green Life Coconut Products Philippines Inc. with their coconut butter, organic coconut cider vinegar and organic coconut spirit; Team Asia Corp. with their coconut oil, VCO and other coconut-related products; and Weambard International Traders Inc. with their canned fruit products in light syrup, mango slices, mango bits with nata de coco bits, banana (whole saba) mango puree with sago and young coconut (buko) strings. The Department of Science and Technology-Industrial Tech-

nology Development Institute (DOST-ITDI) will also exhibit the products, made using the Philippines’s state-of-the-art food technologies and equipment. The food-and-drinks sector is the fifth-largest industry in Taiwan and one of the market’s fastest-growing sectors. Attendees are expected to range from local supermarkets, hypermarkets and convenience stores, as these increase the range of imported foods to meet demand. The Food Taipei 2017 visitor profile includes importers, wholesalers, distributors, hotel owners and representatives, restaurant and bakery owners and online retailers from China, Japan, Hong Kong, Malaysia, the US and Singapore. Philippine products to be exported to Taiwan must adhere to the requirements specified by Taiwan’s Food Safety and Sanitation Act, a new and improved food-safety system. Products entering Taiwan must comply with their requirements for quality and package labeling. The retail sector and consumer food-service industry in Taiwan continue to emerge as lucrative

markets for Philippine products, due to Taiwan’s busy lifestyle. Substantiating this is the rapidly expanding foodservice industry, forecast to reach sales of $21.6 billion by 2017 (A AFC, 2014). The Taiwan food industry poses an attractive destination for the high-quality products of Philippine manufacturers, suppliers and exporters. FoodPhilippines is a branding initiative of Citem, the DTI’s export promotion arm. It unifies the efforts of the government to promote the Philippines as a source of quality food products in the global market. The FoodPhilippines Pavilion will be located at Nangang Exhibition Hall and TWTC Hall 1 of the Taipei Nangang Exhibition Center, Taipei, Taiwan. This participation in the Food Taipei 2017 is organized by the DTI, through the Citem, in cooperation with its EMB, DOST-ITDI, the Manila Economic and Cultural Office and the Philippine Trade and Investment Center in Taiwan. This participation is one of DTI’s major efforts to intensify the promotion of Philippine specialty food products in overseas trade shows.

MARKET DEVELOPMENT UPDATE DTI promotes IT-BPM to Sodec, Japan Exploring vast potentials of Indian market

NDIA, long considered a sleeping economic giant, is now undoubtedly cementing its position as among the world’s major economies. As of the fourth quarter of 2016, it enjoyed the distinction of being the world’s fastestgrowing major economy, with growth rates averaging over 7 percent. Undoubtedly, India has become an attractive export market with balance of trade skewing sharply to the advantage of its major partners. The Philippines, also one of the world’s consistently fastest-growing economies, lags behind other countries that trade with India. India is ranked as the Philippines’s 20th trading partner with balance of trade sharply in India’s favor, at 75 percent to 25 percent. This only means trade opportunities for India and the Philippines are vast and for the taking. Fourteen of the top Indian companies are based in the Philippines as their secondary location and globalservice delivery hub, next only to India. These Indian multinational companies are strategically colocated in the Philippines to take advantage of the country’s footprint in major markets. Globally recognized brands in the IT and BPM services sector, such as Tata Consultancy Services, Mahindra Tech, Infosys, among others, have led the way for other smaller Indian IT and business-process outsourcing companies to locate in the Philippines following their highly successful colocation strategies in the country to add value to their global-service value chains. Without much government intervention, the Philippines has also become a fast-emerging destination for Indian students looking to study abroad, specifically those pursuing medicine, health sciences, aeronautics, Engineering and other related fields. Recently, two India-based auto-manufacturing companies also invested in assembly plants in the Philippines. The Philippine Trade and Investment Center (PTIC) in New Delhi identified and works toward several high-priority focus sectors and strategies for trade and investment promotion in India. First among these priority strategies is to encourage second-tier Indian IT-BPM companies to locate in the Philippines as the secondary globaldelivery hub and to bring them to the Philippines’s Next Wave Cities. Second, PTIC New Delhi hopes to help the national government to develop India as a major market for Philippine electronics and semiconductor exports, as India’s 1.3 billion population, constant modernization and market trends open new and important opportunities for the Philippines to supply top-quality electronics and semi-

By Michael Alfred V. Ignacio Philippine Trade and Investment Center, New Delhi

conductors to the Indian subcontinent, particularly in consumer electronics and components for automobiles, appliances, gadgets and machinery. The Philippine electronics and semiconductors industry is one of the Philippines’s most lucrative industries capable of supplying products that are globally competitive and sought after. Third, PTIC recommends for a national strategy to develop the Philippine education sector, as a powerhouse destination for more Indian students wishing to study abroad to choose the Philippines, which has a very high potential to be another major GDP contributor to the Philippine economy. Other high-potential opportunities lie in the Philippines’s high-value and high-innovation products, such as highend furniture and home accessories. Mumbai, India’s business and financial capital, is home to 45,000 millionaires and 28 billionaires, which makes India a very lucrative target market indeed. India’s $34-billion automotive and components industry offers lucrative potential, especially to the growing attractiveness of the Philippine market and ready access to the 622 million people in the Asean single market. India’s auto-industry players and international players based in India are also excellent sources of investments. India offers expansive opportunities for the creative-services sector. Our artistry, design and innovation are highly sought after and can find best-fit markets in sectors such as Bollywood, the world’s largest film industry. India has set its eyes firmly on the future. To date, the government has launched highly ambitious strategic programs, such as Make in India, Digital India, 100 Smart Cities and 10,000 Startups. In the last quarter of 2016, India took the sudden, but strategic, move of demonetizing its large currencies. Although it resulted in temporary setbacks in terms of consumer spending and demand, the benefits are seen to far outweigh the disadvantages in the mid to longer term. As a result, much of India’s consumer public—particularly in the urban areas moved toward digitalization, opening e-wallets and driving informal economic activities into the formal economy, resulting in higher revenues for the government’s coffers to fund infrastructure development and other national capacity-building projects.

In retail, India is Amazon’s fastestgrowing market worldwide, in addition to its own major conglomerates putting up their own e-commerce portals, which are changing the way Indians buy their needs and wants. These e-commerce platforms can also very well serve as an efficient gateway for Philippine products to penetrate the Indian market. India’s trade and fiscal policies also point toward high-level engagements with other major trading partners. In particular interest is its Act East policy, which is the India’s priority government directive to directly engage the Asean region in terms of trade and commercial relations. The Philippines lags behind many of its Asean neighbors in terms of commercial relations with India. The recently ratified Asean-India Free Trade Agreement (FTA) is also seen to open the floodgates for significant increase in trade and investments between India and the fast-growing Southeast Asian region countries. This year, as the Philippines hosts the Asean, comes the unique opportunity to lead engagements with India. With the gradual, but steady decline in import duties, bilateral trade is seen to increase dramatically in the next five to seven years. It is important for the Philippines not to be left behind by other countries when these tariff barriers are eliminated as a result of the FTA. India also actively works with its dialogue partners to further the goals of RCEP (Regional Comprehensive Economic Partnership), where the Philippines is an active dialogue partner along with the Asean. A few Philippine conglomerates set its sights on opportunities in India, such as Del Monte Philippines, through a joint venture with conglomerate Bharti. Liwayway Marketing Corp. has also established a significant manufacturing base and market in three of India’s major states. With these pioneers, it is hoped that more Philippine companies will follow suit. One major challenge is the lack of awareness and interest by the business communities of both countries on massive trade potential. Another challenge is the lack of direct flights between the two countries, an initiative that we hope the private sector will soon remedy. For the past year, we have seen increased interest from Indian investors, particularly in the IT-BPM sectors, startups, automotive sector and participation in PPP projects. As opportunities expand, we project increased trade and exchange of investments between the two countries to continue on their uptrend swing. We hope that more and more Philippine businesses seriously consider the enormous opportunities the Indian market offers. For more information on the PTIC in New Delhi, check out our web site at investphilippinesindia.org and follow us on your favorite social media platforms: www. facebook.com/investphilippinesindia / www. twitter.com/phbizindia.

By Gliceria N. Cademia

Trade and Industry Development Specialist DTI-EMB Services Division

HE Department of Trade and Industry’s Export Marketing Bureau (DTI-EMB) and the Philippine Trade and Investment Centre (PTIC) Tokyo in partnership with the Philippine Software Industry Association (PSIA), and the Department of nformation Communication and Technology (DICT) held an Outbound Business Matching Mission (OBMM) for the information technolo- THE delegation from the Philippines composed of private business and officials from the gy-business-process manage- Department of Trade and Industry’s Export Marketing Bureau (DTI-EMB) during the Software ment (IT-BPM) sector and its Development Expo 2017 at the Tokyo Big Sight, Tokyo, Japan. In the picture are Agnes Perpetua participation to the Software Legaspi, assistant director of DTI-EMB; Maria Teresa Loring of DTI-EMB; Information and Development Expo (Sodec) Communications Undersecretary Monchito B. Ibrahim; Eduardo MR Menez, Philippine deputy 2017 at the Tokyo Big Sight, To- chief of Mission to Japan; Commercial Counsellor Ma. Bernardita A. Mathay of Philippine Trade kyo, Japan, from May 9 to 12. and Investment Center in Tokyo; Akihito Ishita, senior vice president of TMJ BPO; Fred Chua of A major component of Magellan Solutions; Tae Abion of the Philippine Software Industry Association (PSIA) Japan the Bureau’s OBMM is the Market; Natalie Hunter, executive director of PSIA; Emmylou Delfin of the DICT; Paulo Cheong conduct of the business-to- of Personiv; Shingo Tsubui, CEO of Intelligent Business Solutions; Jonathan De Luzuriaga, PSIA business (B2B) matching with president; and Eddie Razon of DTSI Group. Japanese counterparts. The mission aims for market exposure to the The business-matching activity for the mission annual software-development event in Japan’s largthis year featured a more substantive, more focused est software-trade show, held every May in Tokyo. template with expanded and diverse client profiles Japan is the third-largest IT market in the world through the engagement of Resorz, a third-party ad($173 billion), after the US ($661 billion) and China vertising and events-management company in Japan. ($179 billion). Prearranged B2B for the Philippine companies suitFor 2017 all segments of the Philippine IT-BPM ably matched serious potential clients/companies, industry were invited to join the business-matching resulting to the conclusion of business deals. mission in Tokyo. One of the major activities that Participating Philippine companies were enensured the success of the participation in this misgaged in prearranged business meetings ranging sion is the organization of prearranged one-on-one from three to six counterpart companies each durbusiness matching meetings handled by the EMB in ing the B2B sessions. Based on the evaluation of the cooperation with the Philippine Trade and Investparticipants, the overall conduct of the component ment Corp. in Tokyo headed by Commercial Counactivities of the OBMM was excellent. selor Ma. Bernadita A. Mathay. Last year’s mission The seminar and networking event participated with the new B2B strategy through a commissioned in by 124 Japanese counterparts held in Bright Core expert/consultant by EMB proved to be very effecHall in Osaki, Tokyo, Japan, on May 9, was successful. tive, as it reached more focused institutional clients The Philippine participants were able to connect with and decision makers; hence, the same template was the attendees, of which 16 companies had separate maintained for this year. follow-up business meetings after the event. Trade The industry headed by the PSIA got a very envisitors went to the Philippine booth at the Tokyo Big couraging response from companies whose number Sight where further business talks were conducted. increased to 20 from last year’s 16 companies. For this year the Philippine Pavilion had eight A great number of managers in information syscompanies exhibiting from May 10 to 12, and situtems and software development visit Sodec every ated in a very good location as last year and strategiyear to conduct business discussions face to face cally positioned to capture the traffic of visitors in with exhibitors. This year’s IT week was particiall sides with its circular open design and colorful pated in by 1,551 exhibitors from 122 countries theme “More fun in the Philippines”. Improvement and attended by 87,725 professional visitors and in this year’s layout was the installation of a large TV decision makers. monitor showing the Philippine companies’ services. In Sodec 2017, the Philippine pavilion had the same A wider space was given for the B2B meeting areas. size of 10.6x4.6 square meters as last year. The booth Due to the positive results of the OBMM to Japan was jointly sponsored by the DICT and the PSIA. for Sodec, the Philippine delegation already booked “Go Global, Go Digital, Co- Create with the Philipfor the Philippine pavilion for Sodec 2018 in advance, pines” was this year’s Philippine tagline at Sodec 2017. with the PSIA president and the DICT representative The business matching led by EMB Director signing the reservation contract. In addition, new Senen M. Perlada was represented this year by the company participants who have not yet participated head of mission, Assistant Director Agnes Legaspi, in the exhibition and B2B manifested their possible and was successfully conducted between and among participation next year. 20 Philippine companies and 22 Japanese coun During the mission period, official meetings conterparts. The B2B had substantial gains with the cluded by EMB included meeting with the Ambasinitial reported figure of $4.7 million from deals sador, debriefing with the PSIA and the DICT and a under negotiation. dinner meeting with the PTIC Tokyo.

A10 Wednesday, June 21, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

PHL must comply with its commitments

he Philippines has committed to the World Trade Organization (WTO) to subject rice to ordinary customs duties not later than June 30 this year. Manila made this commitment when it sought to have the waiver for the special treatment on rice extended once more. Following extensive negotiations and the grant of concessions to interested trade partners, the WTO General Council approved in July 2014 Manila’s request to continue imposing the nontariff barrier until 2017. Upon its accession to the WTO in 1995, the Philippines was allowed to delay the conversion of its quantitative restriction (QR) on rice into tariff for 10 years so the government could prepare farmers for competition. Despite its existence for a decade, the government had practically admitted that it failed to put in place the necessary measures to make rice farmers competitive when it sought to have the waiver extended. In seeking another extension, the government told the WTO that 2.4 million rice farmers, who account for more than a third of the country’s labor force, would be affected if the QR would be converted into a specific tariff rate. The QR on rice had allowed the government to limit the entry of imported rice, especially from neighboring Southeast Asian countries that can produce rice more efficiently. In securing the second extension for the waiver, Manila had agreed to allow the entry of 805,200 metric tons (MT) of rice under the so-called minimum access volume (MAV) scheme. MAV allows the private sector to import rice at a tariff of 35 percent, lower than the 50-percent out-MAV duty. The Duterte administration was keen on extending the waiver, but government officials admitted that it is no longer feasible due to lack of time. The government had already given the WTO the heads up that it would not be able to comply with its commitment to subject rice to ordinary customs duties come July 1, as Congress has not yet amended Republic Act (RA) 8178, or the Agricultural Tarrification Act of 1996. Under RA 8178, rice is the only agricultural commodity with QR and the law did not specify a termination date for it. Various bills seeking to amend the QR on rice have been filed at the House of Representatives, but a Senate version has yet to be crafted. Congress and the Executive branch can no longer afford to drag their feet on this. Trade partners, including Australia, Thailand, the United States and Vietnam, are pressuring the Philippines to comply with its commitment to tariffy rice starting July 1. While Duterte had earlier signed an executive order extending the concessions made by the country to secure the waiver, a ranking DA official admitted that the “gesture of goodwill” is no guarantee that trade partners won’t sue Manila. The President must now certify bills amending RA 8178 as urgent so the Philippines could comply with its international commitments as soon as possible. Further delays would only harm the country, and unless the Duterte administration is prepared to bear the cost, it should act soon and urge Congress to amend RA 8178 when it resumes session next month. Since 2005

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Who are the ISIS? Edgardo J. Angara

early a month has passed since terrorists attacked Marawi City, once a bucolic lakeside green city and home to an emblematic state university to spread knowledge understanding among Mindanaoans. But the coming of ISIS destroyed that image of Marawi. ISIS (which stands for the Islamic State of Iraq and Syria) is a jihadist group that seeks to establish a global Islamic State or a caliphate, where it invites Muslims from all over the world to come and practice an extremist doctrine of Islam. The group gained prominence in 2014, when it conquered large swaths in Iraq and Syria. The ISIS used social media adroitly to circulate videos of gruesome beheadings and wanton destruction of World Heritage sites. They have since launched high-profile suicide attacks in France (Paris and Nice), Germany (Berlin), Turkey (Istanbul), the UK (London) and, recently, Iran (Tehran). Their beginnings can be traced to the 2003 US invasion of Iraq, where Sunni Muslims took up arms to fight the invading allies. But theirs wasn’t a struggle against foreign occupation. Deep sectarian conflicts were at play. Sunni Muslims, comprising a significant minority in Iraq, were historically oppressed by the Shia-

dominated Iraqi government, a replay of the historic feud between Islam’s major denominations—Sunni and Shia. ISIS started off as al-Qaeda in Iraq (AQI), pledging allegiance to Osama bin Laden’s jihad against “infidels” around the world. Bin Laden adhered to a fundamentalist strain of Islam called Wahhabism, widely practiced in Saudi Arabia. In fact, the US carriers that destroyed the World Trade Center during 9/11 were piloted by bin Laden’s men. Wahhabism was founded in the 1700s by Mohammed Ibn Abd al-Wahhab who advocated for the “purification” of Islam through a strict and rigid adherence to the scriptures, as practiced by the Prophet Mohammed and his followers in Medina. Many strains of Wahhabist thought can be seen in ISIS’s actions today, such as the destruction of false idols; the belief in only one, true interpretation of Islam; and the

Their beginnings can be traced to the 2003 US invasion of Iraq, where Sunni Muslims took up arms to fight the invading allies. But theirs wasn’t a struggle against foreign occupation. Deep sectarian conflicts were at play. Sunni Muslims, comprising a significant minority in Iraq, were historically oppressed by the Shia-dominated Iraqi government, a replay of the historic feud between Islam’s major denominations—Sunni and Shia. unbending rule that those who do not conform be punished. Some argue that Wahhabism, and in turn Saudi Arabia, should not be blamed for the propagation of Islamist extremism. Mohammed Alyahya, of the Atlantic Council, wrote in a 2016 New York Times article that blaming Wahhabism and Saudi Arabia for Islamist radicalism is a “dangerous red herring” and a single-cause explanation that “distracts from the complex, political, economic and psychological reasons people join terrorist groups.” Alyahya noted that most Islamist militants have nothing to do with Saudi Wahhabism. In fact, many of those who join radical groups like ISIS were disenfranchised by their communities, even prior to their radicalization. This suggests that ISIS’s allure to Muslims around the world, including the Philippines, goes

How Asia can take the lead on climate

ver since the US announced its withdrawal from the Paris Agreement, China and India have been hailed for firmly recommitting to the global emissions pact. The praise is fair: It’s good that two of the world’s three biggest greenhouse-gas emitters have renewed their promise to act. But if they really hope to lead on climate, they’ll have to be more ambitious. Both countries were climate laggards until recently, prone to blaming the West for rising concentrations of greenhouse gases. Now they’re genuinely trying to cut their emissions. Earlier this year, China pledged to invest more than $360 billion in green-energy projects through 2020, and it has canceled plans to build more than 100 new coal-fired power plants. India says that renewables will account for more than half of its installed electricity capacity by 2027. T hese a nd ot he r i nvest ments could reduce global carbon emissions by as much as 2 billion to

3 billion tons below recent projections—more than making up for the US withdrawal. Yet, slippage is all too possible. Prices for solar power in India may rise from recent record lows, and coal might get cheaper. China still has many more coal projects in the works than it needs, and it’s paying for others abroad. Data on emissions in both countries is still questionable. There are doubts about how well their grids can accommodate renewable energy and whether governments are willing to enforce more stringent rules. Also, in the post-Paris glow of

praise, they may be tempted to relax. On present trends, India could meet its none-too-demanding limits for carbon emissions without doing much at all. China may already have reached its target of seeing emissions peak before 2030. Both ought to try harder. They should set more demanding targets, putting pressure on others to do the same. They should look beyond renewables. Climate aside, India would reap huge gains from stricter energyefficiency standards in industry, construction and transportation. China should renew its fading efforts to cut overcapacity in dirty sectors, such as steel and coal. Investment in better power grids is essential. In some western Chinese provinces, roughly 40 percent of wind power is wasted because it can’t be sent where it’s needed. India’s debtridden utilities will need government help for this; relief from political

beyond religious lines. Audrey Kurth Cronin, director of the International Security Program at George Mason University, noted in a 2015 Foreign Affairs article that ISIS’s core message is about raw power and revenge. She said: “The group attracts followers yearning for not only religious righteousness but also adventure, personal power, and a sense of self and community. And, of course, some people just want to kill—and ISIS welcomes them, too. The group’s brutal violence attracts attention, demonstrates dominance and draws people to action.… In short, ISIS offers short-term, primitive gratification. It does not radicalize people in ways that can be countered by appeals to logic.” In recent years, ISIS has been losing ground in Syria and Iraq, owing to the actions of US-led coalition forces and Russia’s bombings. Some suggest that these defeats in the Middle Eastern theater is what prompted their calls to jihadis around the world to fight here in Southeast Asia, symbolized by the selection of Abu Sayyaf leader Isnilon Hapilon as ISIS emir. While military action is necessary and is reportedly winning against the ISIS-linked terrorists in Marawi, the long-term solution needs to be founded along ideological lines, socioeconomic initiatives and firm political direction. And a more dynamic and vigorous, interfaith dialogue.

E-mail: angara.ed@gmail.com| Facebook & Twitter: @edangara

pressure to set electricity rates too low also wouldn’t hurt. Allowing interstate trading of electricity would let Indian solar and wind farms sell their power more widely. India could cut its dependence on coal by building more naturalgas terminals and pipelines. Up to now, price controls have discouraged such investment. China should cut its support for coal-fired power plants abroad, and ensure that its numerous “Belt and Road” projects are environmentally sound. It isn’t all down to China and India. Japan and Europe also need to do more. And US cities, states and businesses have pledged to deliver on the promises President Donald J. Trump has abandoned. (Mike Bloomberg, founder and majority owner of Bloomberg Lp., submitted their statement to the United Nations.) But Asia’s giants, if they choose, can lead the way. Bloomberg View

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DOTr’s PUV modernization Those with less give more is reasonable, if laws enforced strictly Teddy Locsin Jr. Free fire

Michael Makabenta Alunan

on the contrary

overnment’s public-utility vehicle (PUV) modernization program, as launched recently, is reasonable and is welcomed by commuters and by most transport groups, provided all relevant laws are enforced strictly and the rampant “nonappearance” emission tests are stopped.

Its objectives of making vehicles “safer, more convenient, more comfortable and environment-friendly” are laudable and must be supported with target implementation within three years, starting next year. Devil is in the details? The Clean Air Act of 1999, which is on its 17th anniversary on June 23, also had good intentions, but many of its provisions remain unimplemented, while supporting programs are not enforced properly, thus the absence of serious pressures on motorists to comply. It is no wonder vehicle emissions have increased, despite 17 years of the law. In fact, the share of vehicle emissions of total air pollution in Metro Manila has increased from 70 percent over two decades ago, to 88 percent, and finally, to about 92 percent to 93 percent as of 2015, mainly because smokestack factories have moved to the countryside, while sales of four-wheeled vehicles are now hitting 400,000 units a year, majority of which end up in the metropolis. Lax enforcement mainly happens in two areas. One is the local government’s road apprehension of smoke belchers, which is often “implemented with apprehension” as mostly drivers and operators, not knowing of any solution, find it instinctively convenient to maintain regular bribes than pay the penalties of not more than P2,000 for first offense, P2,000 to less than P4,000 for second offense and P4,000 to P6,000 or suspension of vehicle registration for the third offense. Another problem area is the alleged rampant “nonappearance” of the supposed mandatory emission testing with the Private Emission Testing Centers (PETCs). Here, one merely pays a fee without appearing for actual testing, and still get an “Emission Clearance Certificate”, indicating his or her vehicle passed emission standards. Worst, it has a validity of a few months, which may be likened to a doctor giving a medical certificate, assuring one won’t have colds for the next three months, when he or she can catch colds the following day, depending on immunity levels and exposure to pollutive elements. “Molar support” needed? The Department of Transportation (DOTr), therefore, along with other agencies and the local government units (LGUs), must figuratively put more teeth where their mouth is, or convert their words into action. Although the main problem here is not with DOTr, but with the PETCs and the Anti-Smoke Belching Units of the LGUs. Actually, the problem emanates from the transport sector itself, which offers to “come across” as their instinctive strategy for survival in the law of the concrete jungle. For them, it pays to maintain retainer fees or bribes rather than be penalized and face the risk of total suspension of vehicle registration, which can end their livelihood. n Education is more important. It is not healthy to be blaming any sector or entity, but what is important is for government agencies to get their act together, for one, and consult and partner with people’s organizations (transport sector), non-governmental organizations, academe, LGUs, etc., as provided under Section 35 of the Clean Air Act on Linkage Mechanisms. Section 35 is put into action through the Metro Manila Airshed

Governing Board under Environmental Management Bureau-National Capital Region Director Vizminda Osorio, who has facilitated the consolidation of a work-in-progress education program, which implements one of the most vital missing link for Section 46 and Section 11. Section 46 on penalties requires that apart from penalties on smoke belchers, violators must undergo seminars on emission control. Section 11 on “Air Quality Control Techniques” mandates government to make available all information on maintenance, best practices and technologies on pollution control. n Research and maintenance are vital too. Another unimplemented provision is Section 15 on Pollution Research, which includes applied research on technological options. Also, unimplemented fully is Section 21-D, mandating DOTr to implement an “inspection” and a “maintenance” program. So far, it has the Motor Vehicle Inspection Service, but lacks a “Vehicle Maintenance”, which is more important. An example is the Metro Rail Transit, which conks out weekly only because it was not maintained properly for two years. Similarly, a person without maintenance of balanced diet, exercise, sunshine and sleep will later experience multiple ailments. Likewise, a brand new vehicle without maintenance can be pollutive in a few weeks time. Vehicle Maintenance centers can be set up as supplemental livelihood to make up for the costs and loan expenses the sector will incur with modernization. n Reasonable if able to reason. Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide or Piston seems unreasonable when it went on strike for the sake of opposing, without offering alternatives. This is in contrast to groups, like Cubao-Rosario Operators and Drivers Association headed by Ramil Padrigo, and the National Jeepney Federation for Environmental Sustainable Transport by Ronald Baroidan, which are forming cooperatives, experimenting pollutioncontrol technologies and searching for body designs, for compliance but avoiding total-vehicle replacement. On an electric jeepney being too expensive at P1.6 million, resulting in amortizations on principal alone at P1,700 a day for a threeyear payment, or P1,000+ for five years, which Transportation Assistant Secretary Elvie Medina reacted at a news conference as inaccurate, although computations are simply deduced from official pronouncements. Land Transportation Franchising Regulatory Board Chairman lawyer Martin B. Delgra III was reasonable and cool enough to argue “these things can be a work in progress as we can seek payment schedules of five to seven years”. Banks, other than Land Bank, can also come in, and options are not limited to electric, as there are other alternatives, Delgra said, adding that on gadgets, like closed-circuit television, global positioning system, Wi-fi, etc., are ideal targets, but will not to be implemented strictly, particularly for jeepneys. What is important is to start and adjust in the process to what is tenable, Delgra concluded, appearing reasonable if you are able to reason. E-mail: mikealunan@yahoo.com

Continued from A1

hat statistic doesn’t begin to show the enormous part remittances play in Philippine progress and prosperity. Remittances shielded the Philippine economy in the 1997 Asian Crisis and the Global Crisis of 2008.

With the 2030 Agenda, migration—once a marginal issue—is now among those at the forefront of the global development agenda. It behooves countries, therefore, to do something for remittances other than free riding on it. Proclaiming migrant workers as our unsung heroes is not enough. On top of which lawyers said that it violates the constitution sanctity of the family, because migrant work breaks up the family. The World Bank says the global average cost of sending remittances has remained at 7.45

percent. For the average $200 remitted by a migrant worker, she or he pays a transaction cost of $14.90. And that hardly paints an accurate picture in human terms. Averages do not do justice to the injustices endured by migrant workers. In many cases, remittances to families back home end up not in school tuition but in the drug trade, as pushers prey on unguided children of migrant workers, for not all are lucky to have a Mary Grace as a parent. That is why our government is committed to stamp out the drug trade.

Wednesday, June 21, 2017 A11

In 2016 10 million overseas Filipinos remitted $29.9 billion. The average transaction cost of that is $2.23 billion. That, to quote a very famous President, is Huge. I mean Huge. Target 10.c calls for the reduction to less than 3 percent of the transaction costs of migrant remittances, as well as the elimination of remittance corridors with costs higher than 5 percent. We are a long way from this target. And yet, hard put as they are, our migrant workers share. Our Diaspora to Development Initiative or D2D brings together agencies, overseas Filipino organizations and the private sector to identify and work on development projects. Through an organization called “In the Service of Fellow Filipinos” overseas Filipinos donated $62.2 million dollars for rehabilitation and reconstruction and other community projects. Those who have less always give more. Too often, overseas Filipinos return with little, if any, savings. Our medium-term development plan prioritizes skills upgrading, entrepreneurship training and credit access to meet their needs. We value our migrant workers over and above the money they send back to family and country. That is our bayanihan spirit:

PDIC: All UDB funds are accounted for MAIL

This refers to the On The Contrary column of Mr. Michael Makabenta Alunan, entitled Chilling Signals from Philippine Deposit Insurance Corp. (PDIC), which appeared in BusinessMirror on April 5. Allow us to inform you that the receivership and liquidation (R/L) of the closed Unitrust Development Bank (UDB) were conducted above board, in compliance with the orders of the courts and consistent with the standard policies and procedures of the PDIC in the R/L of closed banks. The validity of the closure, R/L of UDB, was upheld with finality by the Supreme Court (SC) in its resolution dated July 29, 2015, in GR 217899, after the petition filed by Francis Yuseco Jr. (Yuseco), was dismissed. Entry of Judgment was entered in the Books of Entries of Judgments on November 5, 2015. Thereafter, Yuseco filed a motion to reopen case but was denied by the SC in its resolution dated September 28, 2016, affirming further that the petition had already attained finality, copy attached. Allow us to go through the facts that form part of the court records: 1. Under Republic Act (RA) 7653, or the New Central Bank Act, only the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has the mandate to order bank closures and to designate the PDIC as receiver of the closed bank. Pursuant thereto, the Monetary Board, in its Resolution 19 dated January 4, 2002, prohibited UDB from doing business in the Philippines and placed the bank under PDIC receivership. 2. PDIC exerted all efforts to pursue the rehabilitation of UDB by tapping strategic third-party investors (STPIs), who were required to comply with standard requirements for rehabilitation, cognizant that this is a more advantageous alternative to liquidation insofar as the interests of the bank’s creditors and uninsured depositors are concerned. The process of rehabilitating UDB was carried out consistent with standard procedures. The Yuseco Group and three other banks signified interest to rehabilitate UDB. For the record, all these STPIs failed to comply with the requirements for UDB’s rehabilitation. The PDIC board of directors extended the deadline for the submission of the final determination if UDB may still be rehabilitated, in order to afford more time for STPIs to comply with the requirements. The grant of

extension is warranted whenever there is a rehabilitation proposal submitted to the PDIC. Unfortunately, the only STPI that signified interest to the rehabilitation also failed to comply with the requirements. 3. The Monetary Board issued Resolution 64 dated January 20, 2005, directing the liquidation of the bank after determination that it cannot resume business with safety to its depositors, creditors and the general public. 4. In accordance with Section 30 of RA 7653, PDIC filed on April 25, 2005, a petition for assistance in the liquidation (PAL) of the closed UDB with the regional trial court (RTC), Branch 59 of Makati City (reraffled to RTC Branch 137, Makati City, after Judge Winlove Dumayas issued a resolution on February 16, 2015, voluntarily inhibiting himself from hearing the case). PDIC’s Receivership Report was attached to the PAL, filed with the court and is a public document, contrary to allegations that after 15 years, no official report has been made on UDB’s case; and that PDIC has refused to open up those records. The PAL is a proceeding in rem that requires public notification, hence, published in a newspaper of general circulation. In this case, the court order dated July 6, 2005, was published on August 18 and 25, 2005. Thus, all interested parties and claimants were deemed notified of the proceedings. 5. The judicious and expeditious liquidation of the remaining assets of UDB will benefit and protect the interests of the bank’s creditors and uninsured depositors, through the settlement of their claims. Merely two years after the PAL was filed, PDIC was ready to partially settle the uninsured portions of the deposits pertaining to the UDB depositors, which the liquidation court approved in March 2007. The Yuseco Group, however, moved for reconsideration of the approval, which was denied in July 2011. Due to the pendency of the motion for reconsideration, only a handful of depositors claimed payments. 6. In 2012 PDIC was ready to pay the entire principal claims and surplus dividends to depositors and creditors. Due to several dilatory motions, it was only when the liquidation court (RTC Makati City Branch 59) issued the resolution dated October 1, 2014, that PDIC was authorized to effect the payment of the remaining balances of the claims of depositors and creditors against the assets of UDB. To date, all payments were accounted for and reported to the court, the latest of which was contained in the Supplemental Manifestation and Omnibus Motion filed with the RTC in Makati City Branch 137, on April 21. Based on the foregoing facts, PDIC categorically denies all the baseless allegations and malicious imputations of corruption, the truth of the matter being: PDIC, as receiver of UDB, was tasked to determine within the period of receivership whether the bank

can still be rehabilitated with safety to the depositors, the general public and the community. To present a fair estimated recoverable or realizable value of the assets, if sold or assigned as payment to creditors, PDIC adjusted the assets and liabilities to be settled by UDB. While UDB showed capital of P153.39 million in its Consolidated Statement of Condition, as of closure date on January 4, 2002, UDB’s financial health was far from stable. Further evaluation showed that after factors, such as appraised value of the assets, collectability of receivables, additional and/or unaccounted liabilities and the minimum capital requirement of P325 million for a thrift bank in Metro Manila at that time were considered, UDB’s capital was deficient by P270.11 million to be allowed to rehabilitate and resume business with safety to the depositors, the general public and the community. UDB’s closure, R/L were declared valid by no less than the SC. No closed bank funds were disbursed to PDIC personnel. PDIC, as the Statutory Receiver and Liquidator of UDB, has the authority under Section 12 of RA 3591, as amended, implemented through standard policies and guidelines for all closed banks, to charge fees and expenses against the assets of UDB, relative to liquidation, including salaries of personnel responsible for the liquidation of said bank. The R/L fees and expenses were advanced by PDIC and reimbursed from the bank’s funds and resources only upon approval by the liquidation court. As of end 2016 R/L fees and expenses charged against UDB totaled to about P41.18 million and were incurred over a period of 14 years from the time of the bank’s closure in January 2002, or an average of P2.94 million per year. PDIC, as deposit insurer, is mandated to protect the Deposit Insurance Fund, the funding source for payment of deposit insurance. Hence, as a creditor of the closed bank, it is entitled, under the PDIC Charter, to claim for subrogated deposits equivalent to the total amount of deposit insurance paid to the UDB depositors, as well as surplus dividends. The Supplemental Manifestation and Omnibus Motion filed on April 21, 2017, reported total payments to PDIC in the amount of P194.43 million by way of subrogated deposits, both in liquidating and surplus dividends. A total of P0.15 million was, likewise, paid to PDIC for claims for UDB’s unpaid deposit insurance assessment at the time of closure. Under Presidential Decree 679, otherwise known as the Unclaimed Balances Act, deposits, credits and balances which remain unclaimed for more than 10 years are escheated in favor of the national government through the Bureau of the Treasury (BTr). As of 2014 a total of 7,897 accounts in the amount of P67.65 million representing depositors who failed to

The Filipino impulse to share the burdens of community and the blessings of such prosperity as they achieve, for happiness increases with sharing. Having money is not enough. We have financial-literacy programs to put remittances to productive use. The Remittance for Development Council is an advisory and policymaking body that provides an enabling environment for that purpose. Other than that, we like government to keep out of their way. The Philippines calls its migrant workers partners in development. They are more. They have been the drivers of the progress we have achieved. Even so, they are partners in achieving the Sustainable Development Goals to which we committed toward poverty eradication. And always, there is the hope that one day, through the progress to which they so greatly contribute, Filipinos will not have to leave family and home to make enough to be happy with family back home. Allow me to close by congratulating the International Fund for Agricultural Development and its partners for this meaningful celebration of the International Day of Remittances.

file their claims, depositors whose payments are unclaimed, as well as surplus dividends for these claims were reported to the BTr. To date, P12.06 million have been declared escheated to the national government, while escheat proceedings for the remaining unclaimed deposits are still pending with the court. The mandate of PDIC, as liquidator, is to efficiently manage closed banks based on standard procedures to help ensure that recoveries of creditors of their claims are maximized. As of December 2016 PDIC paid the liquidating and surplus dividends due to the depositors and creditors of UDB amounting to P324.32 million, in addition to the total amount of P67.65 million escheated or for escheat to the national government. The total amount of P41.14 million remains unclaimed. Funds and properties equivalent to the unclaimed amount have either been earlier consigned or shall be consigned with the court as reported in the Supplemental Manifestation and Omnibus Motion. Yuseco filed separate complaints against PDIC officers before the Ombudsman for alleged graft and corruption, which were dismissed, and disbarment case versus the PDIC and the BSP lawyers, which was, likewise, dismissed by the Integrated Bar of the Philippines Board of Governors for lack of merit. Only referral for syndicated estafa filed with the National Bureau of Investigation remains unresolved. Notwithstanding all efforts to delay the liquidation of UDB, PDIC was able to distribute the bank’s funds and assets to depositors and creditors as directed by the liquidation court. At the cost of being repetitive, PDIC reiterates that all these facts are verifiable from court records and that all the funds and assets of UDB, which were distributed to the depositors and creditors, are all accounted for. In pursuit of PDIC’s public policy objectives of protecting the interests of depositors and helping maintain financial stability, PDIC consistently carries out its mandate in accordance with law and within the bounds set by pertinent rules, regulations and court orders. While the freedom of the press is one of the cherished hallmarks of our democracy that engages everyone to strive to protect and respect, the same freedom must be balanced with responsibility and guided by conscience and careful thought through investigation, verification and solid research to avoid public misinformation. In the spirit of fair and responsible journalism, PDIC will highly appreciate having this letter printed in its entirety to set the record straight and enlighten the public. Thank you very much for your usual support, time and attention.

Jose G. Villaret Jr. Vice President Corporate Affairs Group