Businessmirror june 23, 2016

“Republicans say, ‘Hey look, we tried.’ And all the time, their cheerleaders, the bosses at the NRA, are cheering them.”—Senate Minority Leader Harry Reid, Democrat-Nevada, after a divided Senate blocked rival election-year plans to curb guns. AP

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“Firing your campaign manager in June is never a good thing. The campaign will have to show dramatic changes immediately on everything, from fund-raising and organizing to candidate performance and discipline, in order to demonstrate there’s been a course correction. Otherwise it’s just cosmetics.”—Republican operative Kevin Madden, after Donald Trump abruptly fired campaign manager Corey Lewandowski. AP

“I let you know, I’m in Orlando, and I did the shootings.”—Orlando gunman Omar Mateen, to a 911 operator a half hour into the bloody rampage at the Pulse nightclub, according to transcripts released by the Federal Bureau of Investigation. AP

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Thursday, June 23, 2016 Vol. 11 No. 257

INCOMING transporT chief SEEKS legal measure to unlock traffic Gordian knot

Tugade eyes 30-yr transport road map By Cai U. Ordinario & Catherine N. Pillas

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INSIDE

The dignity of free will

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WHO IS GOD? GOOD NEWS BROCHURE, SHARED BY LOUIE M. LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

Life

MOMMY NO LIMIT: WHAT IS YOUR WORK ETHIC? D4

BusinessMirror

Thursday, June 23, 2016

In a discussion with the BusinessMirror on Wednesday, former Clark Development Corp. President Arthur P. Tugade said the road map will span five administrations. Tugade said this is different from

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Poland by train: Tracking a complicated history

TWO men and a pigeon examine timetables at the station in connection point for the train to

Wroclaw. ALAN SOLOMON/CHICAGO TRIBUNE/TNS

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BY ALAN SOLOMON Chicago Tribune

HE topic, self-assigned, was easy enough: “Training Through Poland.” The story came hard. The trip took days, the writing months. It certainly was timely. Eurail, beloved of backpackers for generations, had only recently extended its Global Pass to include Poland (www. eurail.com; www.raileurope.com). Wroclaw had been proclaimed a European Capital of Culture (along with San Sebastian, Spain) for 2016 and would be in celebration mode. I’d never been to the country, though part of my family had emigrated to the United States around 1900 from Podkamien, one of those border towns that, at any given moment, might be part of Poland or Austria-Hungary or Russia or Ukraine. No one knows how many Poles were slaughtered by Ukrainians in the 1944 Podkamien massacre—the Germans had disposed of the remnant Jews earlier— but it doesn’t matter, because this is a travel story. The first scene in Schindler’s List shows Sabbath candles burning low. One expires, sending a plume of white smoke into the air, smoke that director Steven Spielberg artfully blends into the smoke from a locomotive waiting for passengers at the station in Krakow...a station that, decades after the war, is still there. The history of Poland is complicated, too complicated to fully explain in a brief story like this one. For centuries, it was linked to Lithuania; then it wasn’t. By 1795, there was no Poland at all, its lands grabbed by Austria, Prussia and Russia—and it essentially remained a shadow nation until 1918, when Poland was restored at Versailles. The Germans changed everything in 1939. Krakow survived the war physically whole, or

mostly. The Germans considered the city German and chose it as the capital over Warsaw. They scrammed, with no time to destroy the city, a few days before the Russians moved in. “One bomb was dropped into the Royal Cathedral,” says Jerzy Korta, a guide. “Fortunately, it didn’t explode.” Krakow’s historic center is lovely. Its market square is Europe’s largest. Parts of the city’s 14thcentury wall remain, and horse-drawn carriages clop along the square’s perimeter. But the old town is a walking place, with its cathedral and Wawel Castle and cafés and vendors selling irresistible obwarzanki, the local pretzels. Oskar Schindler’s enamelware factory is a short taxi ride from the square. It is a museum now, and in every way it is stunning. There’s a sparkling new (2006) main train station in Krakow containing a McDonald’s and other good things. The old one, the station from the Spielberg movie, still stands alongside it. In 1939 the Germans renamed the station the Hauptbahnhof Krakau; they renamed Oswiecim, one of the towns served by the station, Auschwitz. I won’t go into numbers here, because this is a travel story. The train ride to Oswiecim today takes about 80 minutes from the new Krakow station. From there, it’s a long walk or a short cab ride to the camp, a little farther to Birkenau. Both are museums. Admission is free. Essential. The train to Wroclaw from Krakow takes less than five hours. Rather than return to Krakow from Oswiecim then transfer, we traveled 45 minutes by charter bus to Katowice, then hopped a three-hour train to Wroclaw. The train was awful. It was a warm day, there was no air conditioning, and opening the vents above the corridor windows provided little relief. But the 160-year-old station? Like a squat Disney castle. Wroclaw, like the rest of Poland, is—of course—

complicated. It was Wroclaw, then Prezzla, then— from 1741 and now under Prussian rule—Breslau. So for 200 years, it was a German city. After the end of World War II, the totally German Breslau and surrounding territory became part of Poland (again, complicated), and the name Wroclaw was restored. Ethnic cleansing came quickly: In less than a week, the city and surrounding area was emptied of Germans. Poles, primarily from the east (where they were cleansed from territory ceded unhappily by Poland to Ukraine), took their place. Others were pushed out, as well. “The last expulsion of Jews from this city,” says Chris Baldwin, a Brit who has spent three years in Wroclaw preparing for Cultural Capital programming (Information: www.poland.travel/en-us), “was in 1967.” The war destroyed 80 percent of Wroclaw. “The bricks of this city,” says Baldwin, “were taken from here to rebuild Warsaw.” The center is once again gorgeous, a city of bridges (135 now) and churches and waterways, a magnificent town hall (it’s the original) and a fine market square rivaling Krakow’s. And dwarfs. They began as dwarfs furtively painted on walls to mock the ruling Communists. Then, the Communists gone, they switched to small bronze sculptures. “Outside a bar,” says guide Magdalena Babiszewska, “there’s a dwarf eating pierogi. Now there are more than 300 dwarfs, because they are reproducing very quickly.” This was the best of trains, this train to Warsaw, sleek and quiet and comfortable. This time, the air conditioning worked. When our train slowed as it approached a station, classical music played softly: always it was Nocturne in E Flat, by Frederic Chopin, a son of Poland. His life story—again, like so many stories in Poland—is complicated. When the occupying Germans left in 1944, they left rubble. And with no Marshall Plan for the Eastern Bloc, recovery was slow. Things are speeding up in Warsaw since the country’s 2004 entry into the European Union. “You can see here, all of our buses, all of our trains, all of our trams are brand new,” says Anna Biesiadecka, a local guide. “The train you came in on was a brand-new one.” Warsaw’s Old Town—the part of the city that tourists invariably visit and photograph, and where locals dine and sip and marry and linger—is, even more so than Wroclaw’s, a reproduction. “The Royal Castle,” Biesiadecka says, “is 100 percent reconstruction.” The reconstruction wasn’t completed until 1997. The Jewish ghetto—there was no ghetto at all until the Nazis rounded up the city’s Jews and crammed them all into a walled district—is no more. The Germans destroyed most of what and who were left after the 1943 ghetto uprising. More death and destruction at the hands of the Nazis followed the 1944 Warsaw Uprising. No numbers. Travel story. But there are museums and monuments here celebrating heroic and iconic Poles and tracing a thousand years of Jewish presence in Poland. One of the rooms in the Museum of the History of Polish Jews is devoted to—trains. Within the room, a representation of a train station. There is no smoke. ■

@c_pillas29

ITH the complexity of Filipinos’ transportation woes, the incoming transportation secretary said he will move for a 30-year legislated road map to end traffic jams and improve mobility nationwide.

poland by train: Tracking a complicated history EAR Lord, does widespread suffering mean that God the Father does not care about us? We must not doubt the merciful Father. Some people claim that God makes us suffer to test us, but this is not true (James 1:13). God has granted man the dignity of free will. Do we not appreciate our freedom to choose to serve God? (Joshua 24:15) But many choose to do bad things to others, so suffering abounds. It saddens our God the Father to see such injustice. What is our role then? We ask the Holy Spirit to strengthen us and inspire us do things in God’s will and keep ourselves in the state of grace always. Amen.

@cuo_bm

Experience ‘real value’ at Remington Hotel PEOPLE travel either for business or for pleasure. Although there are differences in what these types of travelers look for in lodging options, there are factors that universally attract individuals to pick a place to spend the night or three in. Remington Hotel in Resorts World Manila (RWM, www.rwmanila.com) checks most of the boxes smart travelers expect from a reputable hotel brand. It is situated in an ideal location, has access to a bevy of lifestyle options, offers reasonable rates, and—most important—guarantees uncompromising comfort and security. In other words, it serves superb accommodation at real value. Nestled within the integrated resort complex that is RWM, Remington Hotel’s proximity to major destinations within the city makes it convenient for tourists or business travelers alike. It sits right across the Ninoy Aquino International Airport Terminal 3, and a short ride away from the other terminals, which the hotel readily offers shuttle services to and from absolutely free. Getting around is also a breeze as the hotel is located just a few minutes from the Makati Central Business District, as well as other commercial centers. Famous landmarks and tourist destinations, such as the Cultural Center of the Philippines, Rizal Park and the walled city of Intramuros, are also just a short ride away. Meanwhile, guests who prefer to stay closer to the hotel and spend some R&R need not look far as the hotel, likewise, fits the bill of a perfect “staycation” spot. Just outside the door is RWM’s Newport Mall, which offers 24/7 entertainment, leisure and shopping choices all under one roof. Bunking in is also a good idea, as the hotel itself houses its own Entertainment Center complete with posh gaming spaces, hip bar and lounge areas, diverse dining options, as well as swanky spots to feed those nocturnal needs. While these attractions are certainly welcome, the hotel’s heart lies on providing unmatched comfort to each guest. With 712 Standard and Premier Rooms, Remington Hotel provides simple yet stylish spaces for the weary, be it a short layover or long-term lodging. Not only are stays convenient, but the ease with which guests can book rooms is also an added value, with the hotel fully utilizing an online reservation system through the RWM web site, as well as its user-friendly mobile companion app. Last but by no means the least are the individuals who make the hotel run. Serving guests with genuine Filipino hospitality, Remington Hotel’s team of dedicated professionals shows careful attention to detail that adds that extra mile of service, security, and comfort for everyone who steps through its doors.

other transport road maps, because he is proposing that it be legislated by Congress. This will ensure that the plan will be carried out by succeeding administrations, said President-elect Ro-

drigo R. Duterte’s appointee at the Department of Transportation and Communications (DOTC). “Kung sakaling magtatagal ako sa DOTC hanggang four years—on my fourth year [or] on my sixth year— I hope that during that time, I will be able to formulate a 30-year road map that will address the full development, not only of Metro Manila or Mega Manila, but also all provinces in the country,” Tugade said. He explained that the road map will contain all modes of transportation, such as railways and water transport. Tugade said the road map will be accompanied by a “sinking fund,” where a portion of government revenues can be pooled to create the fund. Continued on A6 and a7

Phil-Aussie relations rock at 70 AS part of its yearlong festivities marking seven decades of bilateral ties with the Philippines, the Australian Embassy held a Social Media Day during the launch of the Celebrate Australia: Say G’Day exhibition at The Block at SM City North Edsa. The event, hosted by Magic 89.9 DJ Nikko Ramos, rocked with the presence of Australian DJ Callum David, who played music while students and bloggers took photos of the exhibit. The energy of the younger crowd and the use of technology reinforced how dynamic and vibrant Philippine and Australian relations continue to be over the years. The highlight of the event was a

contest wherein participants posted their most creative photos online using the hashtag #First70Years. There were different categories, including Best Dressed, Most Creative ‘Take Me to Australia’ Photo, Best Groufie and Best Aussie Photobooth. Australian Ambassador Amanda Gorley also selected the Ambassador’s Choice winning online photo. Mallgoers also had the rare opportunity to learn more about Australia and its relations with the Philippines in the exhibit. A weekend fair featuring leading and emerging Australian brands in the Philippines was also held.

AUSTRALIAN Ambassador to the CALLUM DAVID, a well-known Australian Philippines Amanda Gorely (left) with DJ, delight the audience on the Social SM Senior Vice President for Marketing Media Day. Communications Group Millie Dizon at the Social Media Day of Celebrate Australia: Say G’Day at SM City North Edsa.

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AUSTRALIAN students New Colombo Plan fellows Liam Jewell (left) and Lisa Butson

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right penalty, wrong delivery

P25.00 nationwide | 4 sections 28 pages | 7 days a week

Tourism advocates make up Teo’s team By Ma. Stella F. Arnaldo

@Pulitika2010 Special to the BusinessMirror

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SHAKE-UP could be in the offing at the Department of Tourism (DOT), with incoming Tourism Secretary Wanda Corazon Tulfo Teo reportedly bringing in her own team to occupy several current and newly created posts at the agency. This follows after Teo met with incumbent Tourism Secretary Ramon R. Jimenez Jr. over breakfast on June 16 at the Sofitel Philippine Plaza, where Jimenez assured her of the competence and efficiency of the team he is leaving behind. Government sources said the following people will be brought in by Teo on July 1, the first day of the Duterte administration: lawyer Falconi V. Millar, who will take over the position of undersecretary for administration and special concerns; Ma. Lourdes F. Japson, assistant undersecretary for administration and social affairs; Czarina Zara Loyola, director for public affairs and advocacy; Ma. Luisa Diploma, director for special concerns; Katherine de Castro, undersecretary for tourism advocacy and public affairs; Alma Rita Jimenez, undersecretary for tourism development planning; Eden Josephine David, assistant secretary for tourism regulations, coordination and resource generation; Shalimar Tamano, assistant secretary for tourism advocacy; and Marinella Miranda, executive assistant 4 (Office of the Secretary). Most members of Teo’s team have long been tourism advocates, with some being her colleagues at the National Association of Independent Travel Agencies Philippines Inc. (Naitas), where she is president, and the Tourism Congress of the Philippines. For instance, Millar is legal counsel of Naitas. He will be taking over from Ma. Theresa I. Martinez, who is retiring. Japson is Naitas auditor and owns Strikers Travel Services; de Castro hosts a popular travel show on a major broadcasting network, and is daughter of former Vice President Noli de Castro; David is the currently chief tourism officer at the DOT Davao regional office; and Tamano is currently DOT director for special concerns. See “Tourism,” A2

U.S. ASKS CHINA, RIVALS TO BE CALM WHEN SEA RULING ISSUED

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D. EDGARD A. Cabangon, chairman of the Aliw Media Group; Arthur P. Tugade, incoming transportation secretary; and BusinessMirror Publisher T. Anthony C. Cabangon during the BusinessMirror’s Coffee Club discussion. NONIE REYES

SPORTS

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Port operators hit BOC’s premature CMTA hearing L

health&fitness

By VG Cabuag

@villygc

isted port operators Asian Terminals Inc. (ATI) and International Container Terminal Services Inc. (ICTSI) have denounced the Bureau of Customs (BOC) for its haphazard and unreasonable speed in scheduling a public hearing on the implementing rules of the Cus-

PESO exchange rates n US 46.3680

toms Modernization and Tariff Act (CMTA), a law that covers how the two major port players operate in the country. In separate letters submitted on June 10 to the BOC, the agency tasked to implement the law, the port operators questioned what they called abbreviated public hearing and a very short period allowed for

stakeholders to come up with their position papers on the draft implementing rules and regulations (IRR). ATI and ICTSI are the two international freight-handling firms at the Port of Manila, the country’s main port and where the BOC generates the bulk of its collection. ATI, controlled by DP World and See “Port operators,” A2

he United States called on China and other rival claimants on Wednesday to exercise restraint when an international tribunal issues a landmark ruling on the South China Sea disputes that Beijing has chosen to ignore. A senior US State Department official, who spoke on condition of anonymity to Asian journalists through a teleconference, said the upcoming decision by the arbitration panel in The Hague may offer “a great deal of clarity” on the disputes and help the claimants forge an arrangement to avoid potential confrontations. She said the decision, expected within weeks, could also serve as a jumping-off point to diplomatic talks. “ We would certainly call on all governments to exercise restraint and to use this postarbitration period as an opportunity to restart those diplomatic discussions,” she said. China has said it would not recognize any arbitration decision despite calls by several Asian and Western governments for it to respect interna-

tional law. Some fear Beijing may take a harder stance and take provocative actions if it comes under pressure from outside, including by the United States, to comply with an adversarial ruling. In a harsh attack on US policies in Asia, the flagship newspaper of China’s ruling Communist Party on Wednesday accused Washington of seeking to turn the South China Sea “into a powder keg,” and warned it not to underestimate China’s determination to defend its territorial claims. The People’s Daily cited recent combined exercises by two Navy aircraft-carrier strike groups off the coast of the Philippines as a sign of US hegemony and said Washington has made a mistake in seeking to intimidate China. In making displays of military power aimed at China, the US has “picked the wrong counterpart,”said the editorial, the contents of which are usually vetted by high-ranking party officials. US military activity, including freedom of navigation cruises near China’s manmade islands and exercises with allies, is contributing to the militarization of the region, the editorial said. AP

n japan 0.4427 n UK 67.9245 n HK 5.9759 n CHINA 7.0361 n singapore 34.5334 n australia 34.5163 n EU 52.1362 n SAUDI arabia 12.3645

Source: BSP (22 June 2016 )

BMReports BusinessMirror

A2 Thursday, June 23, 2016

Port operators. . . businessman Eusebio H. Tanco, said the conduct of the hearing was “premature, irregular and hasty.” In its letter, ATI said it was active in the deliberations of the CMTA when it was being heard in the two chambers of Congress. It has, however, two versions in its possession, one each for the Senate and the House of Representatives, and the merged version was only published in the Official Gazette on June 6 and 7. “It is, therefore, unfair, oppressive and violative of the stakeholders’ constitutional right for the BOC to demand that stakeholders participate this early in a proceeding for the drafting of the implementing rules or review the implementing rules that was already drafted by the BOC,” Andrew Hoad, ATI executive vice president, said in the company’s letter. “At the very least, therefore, ATI and the other stakeholders are entitled to that 15-day notice period before the law becomes finally effective, which is its full opportunity to be informed, to review the new law as signed and assess its impact on its business and activities,” he said. Hoad said the CMTA should take effect only on June 14 and “not earlier than that, assuming it was published upon approval of the President on May 30, 2016.” ICTSI, controlled by billionaire Enrique Razon Jr., said it only received on June 6 the notice of public hearing earlier scheduled on June 9 and 10. The BOC, however, decided to cut short the twoday hearing and decided to hold it only on June 10. But it still re-

Continued from A1

quired all stakeholders—which also included shipping lines, brokers and forwarders—to submit their respective position papers on June 8, or the same day that a copy of the draft IRR of the CMTA was given to them. “We strongly recommend that the next public hearing be conducted at least three weeks from today [June 10] and that the stakeholders, including our company, be granted the same period of time to submit our comments on the draft IRR,” ICTSI Regional Legal Manager for Asia Pacific Lirene Mora-Suarez said in the letter. “With all due respect to the Bureau [of Customs], should our request be denied, please consider this letter as our formal protest in the haphazard and unreasonable speed by which this present Bureau of Custom’s administration is trying to pass and issue the CMTA’s IRR, notwithstanding the change in administration in 20 days,” she said. The BOC continued with its public hearing, though it became a consultation meeting with other stakeholders as the agency decided to hold breakout sessions with the sectors, instead of a plenary meeting with all other groups. The port operators did not pa r t ic ipate, t hough AT I a nd ICTSI representatives remained during the hearing. Its lawyers promised, instead, to hand their stand to the BOC. ICTSI and ATI has been keen on the CMTA’s IRR after the BOC, through its various customs memorandum order (CMO) released last year through this year, has given

the operator of the Manila North Harbor, the Manila North Harbour Port Inc. (MNHPI), to operate as an authorized customs facility (ACF). The said status, in effect, allows foreign vessels to dock at the port and turn it into an international port. The BOC gave its MNHPI the status in December last year. The agency’s moves, according to insiders, are linked to the CMTA, since the law gives it such powers, which it had during the World War era, but has relinquished to another agency, the Philippine Ports Authority (PPA), when various laws were passed starting in 1974. CMO 12-2016, issued on June 2, quoted RA 10668, or the Cabotage law, or an “Act Allowing Foreign Vessels to Transport and CoLoad Foreign Cargoes for Domestic Trans-shipment and for Other Purposes,” as its reasons for giving MNHPI such ACF status. The CMTA also gave the BOC those powers, as stated in the Authorized Economic Operators chapter of the law. MNHPI, meanwhile, has expressed to the PPA this month its readiness to provide services to foreign vessels and cargoes. The BOC memo has naturally gotten the ire of the PPA, a stateowned agency that, for decades, has been devising schemes to spur development in the country’s port system. Part of that scheme was to give exclusive contract to an operator for, say, 25 years, renewable for another 25 years, in exchange for investments. That enticed operators, like ICTSI and ATI, to pour in investments and add more when it hit a certain volume of cargo, since it has enough time to recoup its investments. The

PPA has that control over the bigger ports in the country, but the BOC’s recent moves hope to virtually reclaim that power that it gave up more than 40 years ago. The PPA said in its letter to outgoing Customs Commissioner Alberto D. Lina that his issuances may open MNHPI to possible violation of its terminal contract with the agency should it decide to handle foreign cargoes. “MNHPI’s contract was the result of the competitive public bidding in 2009, where the terms of the bid parameters limit the cargohandling operations to domestic cargoes only,” the PPA said in its June 9 letter to the BOC, signed by the agency’s officer in charge, Raul T. Santos. “We wish to respectfully inform the commissioner that the Manila North Harbor has always been known, and was treated as such, as a domestic port since the operations of the said port was transferred to the PPA in 1976,” it said. The PPA then released its own Memorandum Order 08-2016, dated June 21, that counters the BOC’s memorandum order on Manila North Harbor and restricts MNHPI from accepting foreign cargoes. “In view of this contractual limitation, MNHPI is prohibited from providing terminal services to foreign vessels at Manila North Harbor. Accordingly, foreign vessels cannot proceed to Manila North Harbor for purposes of anchorage and/or docking at its berths and unloading of their cargoes, among others,” according to the memo, a copy of which was obtained by the BusinessMirror. The said memo, also signed by Santos, takes effect immediately.

Tourism. . .

www.businessmirror.com.ph

Continued from A1

Alma Jimenez is former president of the Tourism Congress and currently chairs the Management Association of the Philippines Trade, Tourism and Industry Committee. She is also president and CEO of Health Solutions Corp. She will be taking over the post of Benito Bengzon Jr., the only career executive service officer (Ceso) at the DOT. It is not known where Bengzon will be assigned next. Jimenez himself didn’t bring anyone to the agency when he took over from Albert Lim in 2011, except for a close-in aide and a head executive assistant. A day after the announcement of Teo as his replacement, Jimenez described the incoming tourism chief as “a very nice lady.” He told reporters that he knew Teo personally, but was not about to give any advice to her if not asked. Asked, however, what his message would be to the incoming DOT chief, Jimenez said: “My message is definitely improve what you see needs improvement, and don’t fix what ain’t broke.” Government sources described last week’s breakfast meeting between Jimenez and Teo as “very cordial and positive.” The meeting took an hour-anda-half and started with an exchange of pleasantries. The DOT chief briefed Teo on where the tourism industry currently is and how it became a major driver of the economy. Teo was especially “thankful to Secretary Jimenez for his support of Naitas.” Naitas is an independent association of travel agencies whose activities and projects Jimenez has helped fund, the sources said.

He has also been known to attend Naitas’s events and even Christmas parties, they added. The incumbent DOT chief said he was “leaving a good and competent team behind,” and expressed regret only that “he could not further push the development of new tourism products and services.” Jimenez wished for Teo to take that on, i.e., encourage the creation of tourism souvenirs that will benefit local communities, even those that do not directly host tourism destinations. Jimenez has always pushed the idea of “tourism as a business” and wanted to spread the fruits of tourism growth to benefit the masses of poor Filipinos living in the countryside. From the brief meeting, the BusinessMirror’s sources said Teo was inclined to continue Jimenez’s programs and projects, such as the highly successful Madrid Fusión Manila and the “It’s More Fun in the Philippines” brand campaign. A more in-depth briefing for Teo and her team began on Wednesday afternoon at the DOT and will last until today. Meanwhile, other government sources said Teo, like other Cabinet secretaries, are allowed to create positions not in the current plantilla of their respective agencies. These positions, however, have to be first approved by the President, so they can be funded by the Department of Budget and Management. Many of the positions of undersecretary and assistant secretary at the DOT are currently occupied only in an “acting capacity,” as the officials are not Ceso-certified.

BMReports BusinessMirror

news@businessmirror.com.ph

Farm-gate prices slowly recovering

Thursday, June 23, 2016 A3

Hog raisers in PHL seen earning more as devastating El Niño ends T By Mary Grace C. Padin

@_enren

he end of the latest El Niño cycle bodes well for hog raisers, as their income could improve in the next three months, according to the Pork Producers Federation of the Philippines Inc. (ProPork).

Edwin Chen, president of ProPork, said pork prices are slowly recovering with the onset of the rainy season. Chen said the intense heat and lack of water brought about by El Niño retarded the growth of hogs. This, he said, resulted in lower hog prices. “Although El Niño did not kill the hogs, it slowed down the growth rate of the animals in the first half of the year. But, with the onset of the rainy season, in three months the growth of hogs will normalize,” he told the BusinessMirror. Agriculture Undersecretary for Livestock Jose C. Reaño said the farm-gate price of hogs, particularly in Metro Manila, has gone up to as much as P105 per kilogram, from P90 per kg three months ago. Reaño said if prices continue to stabilize, the farm-gate price of pork may reach P110 per kg in the coming months. Because of this, he said hog raisers can expect to gain as much as P1,000 per head, from P500 per head recorded in previous months.

La Niña’s impact

While the onset of the rainy season could result in bigger hogs, Chen said the excessive rain brought about by La Niña could create logistical constraints, which could result in lower pork sales. “It depends on the severity of the La Niña episode. If there will be too much rainfall, floods may occur,” he said. Chen said floods would delay the delivery of hogs to wet markets in Metro Manila. It may also discourage consumers from going to wet markets to buy fresh meat. “Demand for pork may slow down. There will be a buildup in the inventory of hogs in the farm. By then, prices could possibly drop,” he added. However, Reaño said this is just a “slight inconvenience.” “It’s just a [logistical] problem. Besides, you can’t stop people from eating.” In fact, Reano said La Niña will be advantageous to the sector, as hogs grow faster in cooler weather. Meanwhile, both Chen and Reaño said they are optimistic the hog subsector will continue to grow this year. “I think the livestock sector will also grow positively this year. People will be encouraged to go into hog raising because of the good price,” Chen said. Reano, for his part, said he is confident the Department of Agriculture (DA) will be able to achieve its growth target of 5 percent for the livestock sector this year. In the first half of the year, he said the DA was able to hit its target of growing the livestock sector by 4 percent year-on-year. According to the latest report of the Philippine Statistics Authority, the hog industry grew by 5.47 percent in the first three months of 2016. The PSA said this enabled the whole livestock sector to grow by 4.66 percent in the first quarter.

People will be encouraged to go into hog raising because of the good price.”—Chen

Lopez decries ‘pathetic’ record of PHL mining

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he Philippines will have an antimining crusader running the environment department, after President-elect Rodrigo R. Duterte’s choice accepted the post this week. Shares of resources companies plunged a second day. Regina Lopez, 61, managing director of ABS-CBN’s Lingkod Kapamilya Foundation Inc., said on Tuesday she accepts the offer to head the environment and natural resources department. The Philippine Stock Exchange’s mining and oil index fell 7.3 percent on Wednesday, the steepest drop in 10 months, after closing 4.1 percent lower in the previous session. “The reason I don’t like mining is, the poor suffers so that the foreigners and already very rich people benefit,” Lopez told the ABS-CBN News Channel late Tuesday. Small miners, big resource companies and coal plants harm the environment, endanger the livelihood of farmers and fishermen, and are potential health hazards, she said. Outgoing President Aquino banned new mining permits during his six-year term, and investors hoped that the Duterte administration would revive the industry in a country with mineral reserves estimated at $1.4 trillion. “Any kind of mining here puts our farmers and fishermen at risk; for whom, for what, is this worth it?” Lopez asked. “We’ve been doing it for a hundred years and usually, you do something and you know if it’s good by track record. Well, mining has a pathetic track record. Wherever there’s mining, the people are poor.” Bloomberg News

BMReports A4 Thursday, June 23, 2016

BusinessMirror

Closer DAR, DOJ tie-up gains support

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By Jonathan L. Mayuga

@jonlmayuga

Department of Agrarian Reform (DAR) official on Wednesday expressed support behind the plan of incoming DAR chief Rafael V. Mariano to closely coordinate with the judiciary to expedite the resolution of agrarian-related cases. Agrarian Reform Undersecretary for Legal Affairs lawyer Luis Meinrado C. Pañgulayan told the BusinessMirror in an interview that there is a need to settle the issue between the DAR, an agency that exercises quasijudicial function on agrarian cases; and the prosecution office, which handles the litigation of the criminal aspects of agrarian disputes. “That is a good initiative on the part of the incoming secretary. Talagang there is a need to coordinate with all the agencies, specifically [the] DOJ,” said Pañgulayan, who also heads the DAR’s Agrarian Legal Services (ALS). Closer coordination between the DAR and the Department of Justice (DOJ), he added, should work both ways to fast-track the resolution of these cases. Pañgulayan mentioned that there are cases filed in regular courts up to the Court of Appeals that are supposed to be under the jurisdiction of the DAR. And there are also cases that, he said, are supposed to be under the jurisdiction of regular courts which are not being acted upon. “On one hand, there are cases involving agrarian disputes na nasa korte. Dapat ibalik ’yan sa DAR, because [the] DAR exercises exclusive original jurisdiction. The DAR exercises quasijudicial functions. So any and all matters related to the CARP [Comprehensive Agrarian Reform Program], ’pag nasa korte ’yan, dapat ibalik sa DAR. On the other hand, may mga kaso naman na nasa kanila [regular courts] na hindi nila binibigyan pa ng pagpo-proseso,” he said. Pañgulayan explained that there are criminal aspects of violations of agrarian laws, and mentioned that illegal conversions and obstruction in the implementation of the CARP and CARP Extension with Reforms (CARPer) are the most common. In an earlier interview, Mariano said some of the cases filed against agrarianreform beneficiaries are agrarian-related, but were “criminalized” to harass farmers. He wants these cases, among which are trespassing and qualified theft, filed against farmers who are harvesting crops from a CARP-covered land to be turned over or referred to the DAR. On the other hand, Pañgulayan said illegal conversion cases committed by landowners is a crime and, as such, must be prosecuted in regular courts. “There is such a crime as illegal conversion under our laws. Dapat umakyat ’yan sa piskal, ma-proseso at umakyat sa korte for prosecution.” Illegal conversion, he added, “is a crime against the People of the Philippines [that should], therefore, be filed by government prosecutors and elevated to regular courts.” Pañgulayan pointed out that the crime of illegal conversion is committed when an agricultural land that is supposed to be covered by the CARP is converted into residential, industrial and commercial, sans the approval of the DAR. On the other hand, obstruction happens when a person or persons committed acts that prevent the DAR from implementing the CARP. “If somebody obstructs the implementation of the program. It is a crime,” he said. “Dapat maging malinaw sa DAR at DOJ na ’pag agrarian dispute, ibigay sa DAR. ’Pag illegal conversion at obstruction, ibigay sa korte,” Pañgulayan said, adding that there are elements that define whether a case is agrarian-related or a crime. “If it involves the right of the farmers, if it involves parcel of land, if it involves relationship between land owners and beneficiaries,

If involves the right of the farmers, if it involves parcel of land, it involves relationship between land owners and beneficiaries, these are clearly agrarianrelated. There are elements when it is agrarian related.” —Pañgulayan these are clearly agrarian-related. There are elements when it is agrarian-related. Dapat bigyan pansin ito para magkaroon ng maliwanag na pagbibigay ng definition,” he said. Pañgulayan said the DAR and the DOJ should be able to determine if a case is subject to the jurisdiction of the DAR, and when it is subject to the jurisdiction of the regular courts. “There are decisions on agrarianrelated cases. There are also SC [Supreme Court] decisions on this, too. Dapat lang linawin,” Pañgulayan added. Under the Aquino administration, he said there are initiatives on the part of the DAR and the DOJ to resolve the problem, and these initiatives can be finalized and realized under the leadership of the incoming DAR chief. “In the past, there [was] DOJ and DAR coordination. There [was a] task force on illegal conversions [in every] province. This [setup] should be revitalized [and be] given [with additional powers]...” he added. Pañgulayan agreed with Mariano that are there are some cases being filed by land owners against agrarian-reform beneficiaries that are supposed to fall under the jurisdiction of the DAR. “These things can be resolved through closed coordination between the DAR and the DOJ. May pag-uusap between DOJ and DAR to conduct focused group discussions and hold of a national workshop,” he said. According to Pañgulayan, the DAR-DOJ initiative to hasten resolution of agrarian cases is a continuing effort. “Siguro nasa preliminary stage. Dapat [in the] first quarter of 2016 itong national conference, but it did not push through. Nasa prelimary stage pa lang ’yan. Mas maganda na imungkahi ito sa bagong kalihim. Sa mga pulong ng legal sector, naiparating na natin ’yan,” he said. Pañgulayan also said there is a need to take a closer look at existing aricultural venture agreements (AVAs) stock distribution options (SDOs). “Dapat ito mabigyan ng pansin. Maraming AVA at SDOs na maaring argabyado ang mga magsasaka. But this is to be resolved by PARC [Presidential Agrarian Reform Council],” he said, as he, likewise, supported Mariano’s plan to recommend to the incoming president the convening of the council. Under the law, the President of the Philippines sits as chairman of the PARC, with the DAR chief as vice chairman. He said existing SDOs and AVAs involves vast tracts of lands. “I am not making a general statement. May mga AVA at SDO na nag wo-work but if there is a problem, PARC can move to revoke it,” he said.

Asean BusinessMirror

Editor: Max V. de Leon • Thursday, June 23, 2016 A5

Suu Kyi courts Thai Junta in state visit

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ung San Suu Kyi leaves democratically led Myanmar this week for military-ruled Thailand on an official visit that highlights the changing fortunes of the Southeast Asian neighbors. Myanmar, now governed by Suu Kyi’s National League for Democracy after elections last year, is emerging from a halfcentury of military rule, while Thailand, Myanmar’s second-largest trading partner after China with total trade last year valued at $8.1 billion, is struggling to find a path back to civilian rule after the army seized power more than two years ago. “The state visit will bring into relief an interesting reversal of political circumstances between the neighboring countries but will be largely pragmatic in tone,” said Herve Lemahieu, a research associate at the International Institute for Strategic Studies in London. He said he expects talks to focus on trade, investment and migrant labor.

Suu Kyi is expected to sign accords on labor and border crossings during her three-day trip. She is scheduled to pay a visit to a town hosting some of the millions of migrants from Myanmar who work in Thailand, as she did to a hero’s welcome on a visit in 2012, her first travel outside Myanmar in 24 years. Both countries are facing a constitutional conundrum, with Suu Kyi’s party campaigning to push the army out of politics and the generals in Thailand seeking voter approval in an August referendum for a draft document that would give them more power. For now Myanmar appears to have reached a working compromise between the army and civilians, while Thailand hasn’t.

Clean business, good governance, open government partnership Asean-EU Perspective

HENRY J. SCHUMACHER

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orruption has grown into a major global problem, impeding competition, skewing level playing fields and destroying innovation. For companies, bribery and corruption are incompatible with good governance and harmful to value creation, both at a macroeconomic level and at a micro level with individual businesses. In Asia, where corruption is a major challenge, tackling corruption has assumed new vigor, driven by calls from business and civil society for governments to tackle it seriously. Globally, governments in both advanced and emerging markets are stepping up efforts to combat corruption and moving rapidly toward proactive enforcement of anticorruption laws (not in the Philippines yet). Such efforts include updating and introducing new rules and legislation to combat. New rules are evolving into more demanding standards for companies with stricter interpretations of corruption, right down to the operation levels. More stringent standards mean the definition of bribery is not restricted to just interactions with government officials, but also—rightly so—covers all manner of commercial bribery within the private sector. Important is also for people and politicians to understand that rooting out corruption requires following the evidence no matter where it leads. It could also mean punishing friends and allies, since it is not confined to any sector of society. Beyond a prudent regulatory framework and effective enforcement, public expectations are on the rise for companies to assume proactive roles in tackling and preventing corruption. Seen as the supply side of corruption, companies can clearly make a significant change by saying no to bribery. Movements, like the Integrity Initiative in the Philippines, urge companies to adopt clean business, sign the Integrity Pledge and take serious action against corruption. For companies, particularly the boards that set policy and perform oversight, there are three things they and their boards must do: n The board must recognize that clean business is a choice. It is a choice that companies can and must make to set a clear tone from the top about how the company is going to conduct its business. n The board must be regularly updated on anticorruption policy and local regulations, as well as steps being undertaken to comply with requirements of the anticorruption policy. The company should regularly review the Code of Conduct along with procurement and supply chain policies. n The board must be aware of the ever-increasing expectations by company stakeholders and investors for the company to have a clear stance on bribery and corruption. In Asean disclosure of a company’s anticorruption policy and procedures is incorporated as criteria in the assessment of listed companies’ compliance with corporate governance standards, under the Asean corporate governance scorecard aimed at promoting Asean listed companies as an asset class. Therefore, companies cannot be complacent about antibribery and anticorruption measures just because they think they themselves are clean. They do need to demonstrate to the public that they have in place anticorruption policies and adequate internal procedures backed by regular updating, monitoring and reporting. The Integrity Initiative Inc. organized a Forum on Open Government Partnership (OGP) last week; here are the highlights of this forum: n The OGP is a multilateral initiative that aims to secure concrete commitments from governments to promote transparency, empower citizens, fight corruption and harness new technologies to strengthen governance. It was formally launched on September 20, 2011, by eight countries (including the Philippines) and has now grown to 69 countries, as well as hundreds of civil-society organizations. n OGP’s vision is that more governments become sustainably more transparent, more accountable and more responsive to their own citizens, with the ultimate goal of improving the quality of governance, as well as the quality of services that citizens receive. n In the spirit of multistakeholder collaboration, OGP is overseen by a Steering Committee of governments and civil-society organizations. In the Philippines the OPG Steering Committee is chaired by Budget Secretary Florencio B. Abad; the Integrity Initiative Inc. is a member of the committee. n The inclusion of the Integrity Initiative Program in the Third Country Action Plan of the Philippines to the OGP comes with a high price: The plan includes a commitment by the Integrity Initiative to get 10,000 signatories by 2017, and a commitment by government to establish a public-sector framework that will promote the II validation and certification system. Have I convinced you that Integrity starts with I, meaning you? If you have not joined the Integrity Initiative Inc. yet and wish to sign the Integrity Pledge, contact Schumacher@eccp. com . Help us by reaching the 10,000 signatories fast.

TheBroa

Business

A6 Thursday, June 23, 2016

INCOMING transporT chief SEEKS legal measure to unlock traffic Gord

Tugade eyes 30-yr t By Cai U. Ordinario

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@cuo_bm

& Catherine Marie N. Pillas

@c_pillas29

Continued from A1

ugade said these revenues can come from onetime transactions, such as the sale of government land and other similar big-ticket public financial undertakings. “Hopefully, we can formulate a 30-year road map to achieve this dream, this hope of having a beautiful country. What does that mean? Why 30 years? The term of a president is six years, so after five presidents, we hope there will be substantive development.” Priorities

WHILE the details of the road map will have to wait, Tugade said there are more pressing concerns the Duterte administration needs to prioritize, such as traffic in urban areas like Metro Manila. One of the marching orders is to decongest Metro Manila’s worsening traffic situation, according to Tugade. He added he is expected to come up with a plan to resolve the Metro Railway Transit (MRT) problem. Likewise, he said he will pursue the retirement of 15-year-old public-utility jeepneys. To test the ills plaguing the MRT, Tugade said he put on a hat, wore sunglasses and, in short pants, rode the Light Railway Train (LRT) in a station he can’t remember. “Hindi ako nagmamaneho, kaya mahina ako sa direksiyon,” the incoming transport chief said. “Hindi ako marunong mag-drive, so pumunta ako one weekend dyan, sumakay ako. Nung natapos ho, anong sabi ko? ‘Diyos ko’ [I don’t drive so I’m not good at finding directions. But one weekend I went to and rode the LRT. After I exited, I was only able to say: ‘My God’].” Tugade asked for understanding for not repeating this foray into the urban center’s railway network. He said he also went to one of the country’s airports and entered the comfort room. “Ang sabi ko nung pumasok ako: Diyos ko [When I entered the comfort room I said: My God].”

Airport

TUGADE said the incoming President’s concerns also include congestion in the country’s airports. Airport authorities have admitted the Ninoy Aquino International Airport (Naia) has reached its limit in terms of capacity. To address some of the congestion, Tugade said he intends to move the general aviation section of the Naia to Sangley airport in Cavite. He estimates this will free up some 18 percent to 20 percent of the capacity of the Naia. Tugade said he has already met with concerned parties and they are open to relocating, as long as the government can assure them that they will be given a good location. He estimates the transfer will take around eight months to a year to implement. “I know there is flooding in Sangley, I know it needs connectivity. Of course, we also want to decongest Naia,” Tugade said. “Shouldn’t this require us to give them good relocation? I will do that [for them].”

Private sector

ON a personal capacity, Tugade said he is open to allow the private sector to build airports. He said the only condition is for the private sector to undertake the project on their own without asking the government for guarantees or funds to build the airport.

Reports have confirmed that conglomerate San Miguel Corp. (SMC) plans to pitch its proposal to create a P10-billion airport in a reclaimed location on Manila Bay to the incoming Duterte administration. The proposal was initially pitched to the Aquino administration two years ago. However, SMC’s proposal was shot down by the Cabinet. “Whether there is a Ramon Ang proposal to construct an airport or a Cabangon-Chua proposal, [I say] go ahead, be my guest. That’s my personal opinion,” Tugade said. “We all know these policies need to be approved by Neda [National Economic and Development Auhority], the President and the Cabinet.” He said the incoming administration will honor the public-private partnership (PPP) contracts that the Aquino and previous administrations have entered into and executed. He said these will be treated with a “presumption of regularity and continuity.” However, Tugade said the PPP guidelines and policies will be reviewed. He also said the exact details of the review are still being finalized. Earlier, incoming Neda Director General Ernesto Pernia said the Duterte administration is not keen on abolishing the PPP Center, despite efforts to legislate the PPP Act failed under the outgoing Congress.

Extended hours

APART from new airports, Tugade said the Department of Transportation and Communications (DOTC) will also study projects that aim to extend airport hours from its current 10 p.m. closing time. However, this can only be done if the airport has a working radar and quality night-landing equipment. The government already has a project that aims to address this, the New Communications, Navigation, and Surveillance/Air Traffic Management (CNS/ATM) Systems Development project. However, the CNS/ATM has been identified by the Neda in its 2014 Official Development Assistance (ODA) Portfolio Review as a “problematic” ODA project. Nonetheless, there has been some improvement. The Neda said the project posted a decrease in backlog of $205.62 million to $30.71 million in calendar year 2013, from $236.33 million in CY 2012. “We are already looking at the radar and night-landing equipment,” Tugade said. “If your airport has nightflying capabilities, you will have more use [of the airport] after 11 o’clock to 3 o’clock in the morning.”

Railways

TUGADE believes railways will help alleviate the traffic situation in Metro Manila. He reiterated the earlier pronouncement of Duterte to focus on three primary railways: the Bicol Express line, Mindanao Rail System

and the Manila-Clark railway. The operation of the famed Bicol Express is currently suspended, while the feasibility of the Mindanao Railway Project was started by the Neda in 2014. Neda documents revealed that about P400 million will go to crafting feasibility studies for the Strategic Railway Development Plan and the Cagayan de Oro-Iligan Corridor from Linamon to Jasaan. The amount is also expected to be spent for a prefeasibility study for the Tagum-Davao-Digos Corridor and the technical assessment for Iligan-Pagadian City-Zamboanga. The Manila-Clark railway, meanwhile, will include a 22-kilometer stretch that connects Clark and Subic in Pampanga. This will allow the government to create a Central Luzon hub that allows both ports to benefit from each other’s strengths. “We are going to combine the two critical components of a hub, the train and the airport. If we can create a Central Luzon hub with an airport, a pier, an SCTEx [SubicClark-Tarlac Expressway] and the businessmen are there and are given incentives, wouldn’t that be considered development?” Tugade told the BusinessMirror.

MRT

On the issue of the MRT Line 3, LRT 1 and the future MRT 7 interim station, Tugade said he has spoken to proponents and hopes to have a concrete plan on how to move forward as soon as he steps in office. “I hope I can get the parties to agree in the first 100 days. We can tackle the issues in terms of policies and agreements, in the first 100 days,” Tugade said, revealing he has spoken to both Metro Pacific Investments Corp. and Ayala Corp. (the joint venture of Light Rail Manila Corp.), and other parties involved in the dispute for the common station. On the dispute on maintenance and operation contract woes of MRT 3, between the government and the private proponent, namely, MRT Holdings Corp. of Robert J. Sobrepeña, Tugade said they have initiated a dialogue with the businessman’s camp, as well. The transport head stressed that immediate response, however, should be the granting of emergency powers on which the resolution of other attendant transport problems is hinged.

Incoming Transportation Secretary Arthur P. Tugade (center), with (from left) Ricky M. Alegre, BusinessMirror VP for Corporate Affairs; D. Edgard A. Cabangon, chairman of the Aliw Media Group; T. Anthony C. Cabangon, BusinessMirror publisher; and Benjamin V. Ramos, BusinessMirror president, during the BusinessMirror Coffee Club discussion. NONIE REYES

Seaports

ACCORDING to Tugade, the next administration would also like to add more seaports. Tugade said this is the reality of an archipelago like the Philippines. He said, however, more immediate change will come to airports and seaports nationwide in the first 100 days or four months of the Duterte administration. He said all airports and seaports will have free wireless-fidelity connection before the end of the year.

Tugade, as new transportation secretary, is expected to come up with a plan to resolve the Metro Railway Transit problem. ed davad

aderLook

sMirror

www.businessmirror.com.ph | Thursday, June 23, 2016

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dian knot

transport road map “Our lives and families have been ruined by traffic. We are now the laughingstock of our neighbors. They do not want to invest here. If that is not a crisis, I do not know what is.” —Incoming Transportation Secretary Arthur P. Tugade Retiring jeeps

TUGADE said he plans to pursue the move of the Land Transportation and Franchising Regulatory Board to get 15-year-old public utility jeepneys (PUVs) off the road and to comply with environment regulations. “In the first 100 days, we will issue and implement certain rules regarding the phaseout,” Tugade remarked, referring to PUV groups and operators. “I will not be remiss in my responsibilities and talk to stakeholders.” Private subdivisions can also be opened to traffic, he reiterated. To ease doing business with the Land Transportation Office, Tugade said he plans to stop the importation of license plates and third-party bidding of licenses to avoid delays. “If the existing rules and policies will allow me to do so, I don’t want to import car plates, and see the possibility of them being made in the country,” he said. “I don’t want to bid out the making of licenses either. We can ask the assistance of the National Printing Office or some such agency.” Tugade added he also plans to extend the validity of the licenses from three years to five years, and make the renewal process easier.” This includes improving the Pasig River Ferry Service, which may see more stations, pending evaluation on the density of passengers, and security of access. However, Tugade said he sees this mode of transportation on the DOTC’s agenda on its fourth or fifth year.

New team

TUGADE said he is still finalizing the list of undersecretaries in his department. He said he only lacks two more to complete his roster and he already had new heads for the Naia and the Maritime Industry Authority. He said some of the candidates he wanted to tap refused the position for various reasons apart from salaries. Tugade added that while some of his choices may be criticized for having “conflict of interest,” he is not that concerned. His priority, Tugade said, is expertise and integrity. He added that if a candidate is found to be knowledgeable about his or her position and can be trusted by the public, that person will be appointed. Tugade said this has always been his position, even when he was still at the Clark Development Corp. He said he is only being true to himself, which is something he wants the public to do when dealing with him. “We are here together to dialogue and understand each other that you are not here to kill me and that I see you not as an enemy but rather as a partner in development and growth,” Tugade said. The presumptive transportation head said he now understands his predecessor Secretary Joseph Emilio A. Abaya. “In fairness to Secretary Abaya, I know the emotional hurt he has been exposed to in the last several months or years. Inaasikaso nila kami sa tran-

sition. They were so transparent and natututo kami sa kanila.” Tugade regards Abaya as “a gentleman and an officer.” “If you are emotionally active then mag-turnover ka, di ba mahirap ’yun? They accommodate my schedule, they answer everything we ask. On that regard, saludo ako sa kanila.”

Emergency powers

TUGADE explained the issue of congestion has wreaked havoc on the bottom lines of carriers and made the country an unattractive destination for foreign direct investments. But before these can be addressed, Tugade said Congress must grant the President emergency powers. He said the emergency powers will enable him as transport secretary to effect speedy and meaningful action. He explained that one of the effective uses of emergency powers is to address right-of-way (ROW) concerns. This will be important in decongesting the airport since the incoming administration is open to constructing another runway for the Naia. Building a new runway on top of adding another terminal in Sangley for general aviation will further improve the capacity of the country’s primary gateway, according to Tugade. The Aquino administration earlier junked this proposal of a third runway, saying building a new terminal will instead be more economical and will be faster to construct. The plan to build a new runway will require ROW acquisition on the part of the government, which usually takes a lot of time and resources. In exercising emergency powers, however, Tugade clarified the issue of favoring direct procurement, saying the procurement method would depend on a case-tocase basis. “The extent of the emergency powers would depend on Congress. They will have an oversight committee as well,” Tugade said. “But I never said that direct procurement will be the only method. It depends on the situation.” According to Tugade, he believes the emergency power would address “legal issues or restraining orders or injunctions.” “Ang mga pag-aangkat ng bidded projects, matutulungan natin ’yan mapadali, without sacrificing quality and efficiency of service, ’pag meron tayong emergency powers to address traffic and transportation problems.” Tugade explained the initial plan for the emergency powers is two years. However, he said it can be removed if the “traffic crisis” is arrested earlier. But if the traffic situation remains unresolved, even before the maximum of two years is over, the Duterte government can go back to Congress to extend the Presidentelect’s emergency powers. “Like I said, our lives and families have been ruined by traffic. We are now the laughingstock of our neighbors,” Tugade said. “They do not want to invest here. If that is not a crisis, I do not know what is.”

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The World BusinessMirror

Thursday, June 23, 2016

www.businessmirror.com.ph

Last California plant to close as nuclear power struggles

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In this photo taken on February 7, a Mahan Air passenger plane takes off from Mehrabad Airport in Tehran, Iran. AP

Boeing says it signs historic sales agreement with Iran Air

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UBAI, United Arab Emirates— Boeing Co. said on Tuesday it signed an agreement with Iran Air “expressing the airline’s intent” to buy its aircraft, setting up the biggest business deal between the Islamic Republic and America since the 1979 US Embassy takeover in Tehran—if it goes through.

Already, one Iranian official has said the deal could involve 100 aircraft, while another has suggested Iranian airlines may purchase airplanes worth $25 billion from Chicago-based Boeing, welcome news to workers on its massive assembly plants around Seattle. However, the long-standing e n m it y b et we e n t he Un ite d States and Iran, as well as other sanctions and even presidential politics, still could complicate any agreement—even after last year’s nuclear deal. And even if the agreement is finalized, aircraft orders are often announced at list prices, meaning the actual price tag would likely be lower as airlines typically get steep discounts.

US authorization

BOEING issued a statement to The Associated Press saying that it signed the Iran Air agreement “under authorizations from the US government, following a determination that Iran had met its obligations under the nuclear accord reached last summer.” “Boeing will continue to follow the lead of the US government with regards to working with Iran’s airlines, and any and all contracts with Iran’s airlines will be contingent upon US government approval,” it said. Boeing’s statement offered no further details. Fakher Daghestani, a Dubai-based spokesman for the manufacturer, declined to elaborate. State Department Spokesman John K irby sa id, “ T he St ate Depa r t ment welcomes Boeing’s announcement of this deal with Iran Air, which involves the type of permissible business activity envisioned in the Joint Comprehensive Plan of Action [JCPOA]. Boeing has been in close contact with the State Department regarding this deal. We committed, as you know, to license sales of civil-passenger aircraft and will continue to implement this in all of our JCPOA

$25B The amount of possible deals estimated by Iran’s Transportation Minister Abbas Akhoundi involving the Islamic Republic and Boeing

commitments.” He added that, “The JCPOA provides an opening for civil-aviation companies, including American companies, to pursue legitimate commerce with Iran, and we note reports of progress in the aviation sector, which is good—for both the economy and for public safety.” Asked to react to Boeing’s assertion that the company had signed the Iran Air agreement under authorizations from the US government, the Treasur y Department said it does not comment on specific entities in such business scenarios.

Buying binge

IRAN Air, the country’s national carrier, said on Monday it wanted to buy new Boeing 737s and 777s. The 737s are single aisle jets, typically used for flights of up to five hours. The 777 is a larger plane that can carry passengers for 12 hours or more. Earlier Tuesday, Iran’s Transportation Minister Abbas Akhoundi said possible deals between the Islamic Republic and Boeing could be worth as much as $25 billion, on a par with the country’s earlier agreement with its European rival, Airbus. That deal was for 118 new planes. Iran also has ordered 20 airplanes from French-Italian aircraft manufacturer, ATR. “The initial talks were held and I can say Boeing is negotiating with the US officials and possibly the

amount of our purchase is equal to Airbus,” Akhoundi said. The overall size of the proposed Boeing sale to Iran, however, remains unclear. Ali Abedzadeh, the head of Iran’s Civil Aviation Organization, was quoted on Sunday by the state-run IR AN newspaper as saying the sale would involve 100 Boeing aircraft, something the manufacturer has declined to discuss. If the deal goes through, he said the first Boeing plane could arrive in Iran in October.

Inflating likelihood

SOME analysts were skeptical that Iran will ever take delivery of so many jets. “A $25-billion deal delivered by unicorns—flying unicorns,” said Richard Aboulafia, an analyst with the Teal Group Corp. “Some planes may or may not be delivered, but everyone has a huge interest in inflating the likelihood of this happening. Airbus and Boeing are desperate for a growth story and the Iranians love commercial opportunities for political leverage.” Abou lafia said the market faces too much competition from Etihad, Emirates and Qatar—the rapidly growing airlines directly across the Persian Gulf from Iran. Iran Air, whose web site lists 43 airplanes in its fleet, has direct flights to 35 international destinations, including London. The European Union eased its restrictions on Iran Air last week.

Most service

IN the past 12 months, global airlines have scheduled 150,000 flights to and from Iran, with 22.7 million available seats, according to schedule tracking service Diio Mi. It is unclear how many of those seats were actually filled. By comparison, during that same period, there were 250,000 flights to and from Poland, a country with a similar GDP but roughly half the size of the population, with 34 million available seats. The world’s largest aviation market, the US, had nearly 10 million scheduled flights. Iranian airlines have some 60 Boeing airplanes in service, but most were purchased before the 1979 Islamic Revolution that ousted Shah Mohammad Reza Pahlavi and brought Islamists to power. Out of Iran’s 250 commercial planes, 162 are f lying, while the rest are grounded due to lack of spare parts, A khoundi said on Tuesday. Par ts and ser v icing remained nearly impossible to get while the world sanctioned Iran over its contested nuclear

program. The Iranian airline with the most service was Iran Air, with 4.4 million of those seats; followed by Iran Aseman Airlines, with 3.1 million; ATA Airlines and Mahan Air, with 2.1 million each, and Qeshm Airlines, with 1.8 million. The largest non-Iranian airline to serve the country was Turkish Airlines, with 1.3 million seats, followed by Emirates Airline, with 1.1 million seats.

Desperately needed

BOEING has been cautious about entering Iran’s market, as other sanctions remain in place against Tehran. American officials had said as recently as last weekend that the sale would need clearance from the US Treasury. It’s unclear what changed in the last few days. It is likely Boeing may run the sale through an overseas subsidiary and use a currency other than US dollars in order to avoid running afoul of American laws. Ben Moores, an aerospace analyst with IHS, said the deal likely would need to involve leasing aircraft, as well, because Iran desperately needed airplanes now. He also suggested Boeing may be willing to deeply discount some of its older model 737 aircraft—meaning the $25-billion figure might be based on retail prices. “No one’s going to pay list price,” he said. “I don’t think it will be anywhere near the $25 billion— that’s a huge order.”

Job cuts

AT the end of May, Boeing had a total of 5,762 unfilled jet orders. While exact details were not available, this deal with Iran Air would add about 100 addition planes to that backlog assuming that figure is the list price. However, many of those orders are for the latest generation of jets that aren’t yet rolling off assembly lines. Boeing has been trying to get orders for its current models to help bridge the production gap to keep its plants open. A spokesman for the union, which represents Boeing engineers and other professionals in Washington, state says they continue to see job cuts despite sales announcements, like the deal with Iran Air. Forty-seven members of SPEEA stands for Society of Professional Engineering Employees in Aerospace, the professional aerospace union, received layoff notices just last week, according to Spokesman Bill Dugovich. He said the Iran Air deal is not likely to change that. “They factor in all these things. These deals don’t come out of the blue,” Dugovich said. AP

OOFTOP solar panels and churning wind turbines are hastening the demise of US nuclear-power plants and the safety fears and high-operating costs they bring. The latest example is California’s Diablo Canyon twinreactor facility. California’s largest utility and environmental groups announced a deal on Tuesday to shutter the last nuclear-power plant in the state. The move comes as the operators of the country’s aging nuclear facilities confront rising repair bills at a time when sources of clean, safer energy cost less. Competition from a glut of natural gas and surging solar and wind production also has dampened enthusiasm in Europe for nuclear power. So did the 2011 disaster in Fukushima, Japan, when an earthquake and tsunami led to meltdowns and radioactive releases at a nuclear plant. But China is among the countries still building nuclear-power plants, and a US industry group says nuclear remains a vital power source despite the California deal. The 31-year-old Diablo Canyon plant between Los Angeles and San Francisco will shut down by 2025, decades after its location near seismic faults on ocean bluffs helped spa rk t he a nt inuc lea r- power movement. Pacific Gas & Electric Co. (PG&E) announced plans for the facility in the 1960s.

Far cry

CONSERVATIONISTS said the success of the Diablo Canyon deal could show the way forward for the country’s 60 other commercially operating nuclear plants, most of them more than 30 years old. They said it demonstrates the choice was not between nuclear power and climate-changing fossil fuels. “For years, we heard you can’t fight climate change without nuclear power. That’s wrong, of course,” said Rhea Suh, president of the Natural Resources Defense Council, one of the environmental groups that negotiated the accord with PG&E. “We’re clearly on our way.” The agreement will mean the end of nuclear power generated within the nation’s most populous state, an energy source once considered essential to meeting its growing needs. Southern California still receives some of its electricity from a nuclear plant across the border in Arizona, but it’s a far cry from the days when backers envisioned a nuclearpower plant along every 50 miles of the California coast. With more efficient energy use and an emphasis on renewable

energy in California, “there’s just not going to be enough need to have to run your nuclear plant,” PG&E President Tony Earley told reporters on Tuesday.

More questions

THE utility will save more money closing Diablo Canyon than running it through 2044 as planned, Earley said. The plant supplies 9 percent of the state’s power. Env ironmenta l ists have pressed the Nuclear Regulatory Commission to close Diablo, given its proximity to seismic faults in the earthquake-prone state. One fault runs 650 yards from the plant’s twin reactors. PG&E has long said the plant is safe from the largest potential earthquake in the region. But new research has led to more questions about nearby faults, their shaking potential and how the company evaluates them. “The terrific news is that risk will cease in 2025,” said Daniel Hirsch, director of the Program on Environmental and Nuclear Policy at the University of California, Santa Cruz. “The troubling news is that the risk will continue until 2025.” The agreement still requires approval from state agencies. Earley and the environmental groups said neither the state nor federal governments were involved. Gov. Jerry Brown did not issue a comment.

Costly delays

A national nuclear-power industry group said the circumstances that produced Tuesday’s deal are unique to California, where Brown has pushed to move away from fossil fuels, with their climate-changing emissions. For the rest of the country, “nuclear energy is a vital part of a balanced energy portfolio,” the Nuclear Energy Institute said in a statement. Plans to build new nuclear facilities in the US South have faced costly delays, while proposals for others elsewhere in the country have been scratched. Southern California Edison’s San Onofre nuclear plant, between San Diego and Los Angeles, shut down in 2013 after a $670-million equipment swap failed. The same year, Duke Energy announced it would close the Crystal River Nuclear Plant in Florida after a botched repair job left it facing potentially billions of dollars in additional work. Ca lifor nia a lready has banned construction of new facilities until the federal government finds a permanent disposal site for radioactive waste. AP

Obama to sign toxic chemical rules; 1st overhaul in 40 years

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ASHINGTON—President Barack Obama will sign into law the first overhaul of toxic chemical rules in 40 years while hailing a rare moment of cooperation between Republicans and Democrats. Lawmakers, from both parties, planned to join Obama on Wednesday for the ceremony, along with Environmental Protection Agency (EPA) Administrator Gina McCarthy, environmental advocates and industry groups that backed the legislation. White House Press Secretary Josh Earnest said the bill, which passed with broad bipartisan support, was an outlier in a political climate in which the two parties agree on little. “Any time you see Democrats and Republicans come together on a piece of legislation, it does reflect a measure of compromise, which means that there may be some people who will criticize it because it’s not perfect,” Earnest said.

In addition to updating rules for tens of thousands of everyday chemicals used in household cleaners, clothing and furniture, the bill also sets safety standards for dangerous chemicals, like formaldehyde, asbestos and styrene. The goal is to standardize on the national level what is currently a jumble of state rules governing the $800-billion-per-year industry. Congress spent more than three years working on the bill, which rewrites the 1976 Toxic Substances Control Act and aims to “bring chemical regulation into the 21st century,” according to the American Chemistry Council, which backed the overhaul. The bill passed the Senate on a voice vote, reflecting an unusual degree of consensus for legislation that gives the EPA new authority to assess the safety of new and existing chemicals. In recent years, many Republicans have worked to pull funding for the EPA or eliminate it entirely. AP

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Japan election campaign kicks off, Abe pushes economic plan

A person rides a bicycle on an empty street with Japanese characters labeling lane destinations in Tokyo, Japan, on June 17. Campaign for seats in Japan’s parliament kicked off on June 22, as Prime Minister Shinzo Abe’s ruling party races for the realization of his economic plan. AP/Eugene Hoshiko

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380

As more than 380 candidates took to the streets across the nation, pleading for votes from vans outside train stations and shopping arcades, Abe opened the campaign with a pledge to proceed with his “Abenomics” plan to revive the economy and pull the country out of a slump. “The biggest topic of this election is economic policies,” Abe told a crowd in Kumamoto, a southern

to have Japan take a bigger globalsecurity role and has warned of his party’s ultimate goal of wanting to rewrite Japan’s pacifist constitution to reflect the new security policy. “We will stop the reckless Abe politics and change its course,” Katsuya Okada, head of the main opposition Democratic Party, said in a speech in Kofu in central Japan. “We will bring in a new wind into Japanese politics.” It is the first nationwide election since the voting age was lowered to 18 from 20, a step aimed at encouraging younger generations to vote.

OKYO—Japan’s parliamentary election campaign kicked off on Wednesday, as Prime Minister Shinzo Abe’s ruling party seeks a mandate for his economic policies amid opposition criticism that the lives of the ordinary people are not improving. city struck by deadly earthquakes in April. “This is an election in which we decide whether to return to that dark doldrums or not.” Up for grabs in the July 10 vote are 121 seats, or half of the seats in Parliament’s less powerful upper house. The probusiness ruling party is hoping for a show of support for Abe’s economic program, while the opposition is criticizing his efforts

The total number of candidates participating in Japan’s parliamentary election

Old-style loyalties are generally crucial in Japanese elections, so the addition of 2 million younger voters—about 2 percent of the total voter population if they all turn out— will be closely watched, although campaign platforms largely catering to Japan’s aging population are turning away young voters and experts say the impact of the expanded voting age will be minimal. Opposition groups want to keep the ruling bloc from gaining ground in the upper house, where they have a majority but are short of the twothirds mark. Abe’s ruling coalition holds a twothirds majority in the more powerful lower house—the benchmark needed for approval in both houses to hold a national referendum on changing the constitution. The splintered opposition sorely disappointed the public over what was widely seen as its fumbling response to the 2011 quake, tsunami and nuclear disaster in northeastern Japan when it was in power. AP

Putin heads to China to cement relations, but obstacles remain

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OSCOW—With President Vladimir Putin heading to China this weekend, officials in both countries extoll a blossoming “strategic partnership” between the two former communist rivals. But despite Moscow’s push to strengthen ties with Beijing amid a bitter strain in relations with the West, Russia-China trade has shrunk sharply and a slew of ambitious projects have remained largely on paper. Observers attribute the slow progress to Beijing’s hard-nosed bargaining position and the Kremlin’s deep-seated suspicions about the growing power of its mighty partner. A shared desire to counter perceived US global domination and strong personal ties between Putin and Chinese leader Xi Jinping, who are to meet on Saturday in Beijing, appear to be the main driving forces behind Russia-China cooperation. The renewed push to bolster relations with China came after the United States and the European Union imposed an array of crippling sanctions on Russia over its annexation of the Crimean Peninsula in March 2014, cutting its access to world financial markets and blocking the transfer of modern technologies. Moscow was also purged from the Group of Eight leading industrialized nations. In a bid to show the West that the ties with China could offer a viable alternative, Putin visited Beijing in May 2014, presiding over the signing of numerous deals, including a mammoth 30-year natural gas contract worth $400 billion. A later deal saw a branch of Chinese

state-owned energy company CNPC buying a stake in a project to build a giant liquefied natural gas plant on the Yamal Peninsula in the Arctic. Last December, Chinese company Sinopec bought a stake in the Russia’s Sibur energy company. China also promised to offer multibillion-dollar loans to help build a highspeed rail link between Moscow and the Volga River city of Kazan. Other ambitious deals have been expected, but most of them have floundered amid Russia’s economic uncertainty.

Prospective corridor

A KEY factor behind Russia-China trade dropping from nearly $100 billion a year in 2014 to just over $60 billion last year has been the sharp devaluation of the Russian currency under the double impact of low global oil prices and Western sanctions. With energy resources accounting for twothirds of Russian exports to China, trade volumes have shrunk as oil prices fell. The devaluation of the ruble has spooked Chinese investors, and low energy prices made some prospective energy projects unfeasible. Plans to tap new oil and gas fields in Siberia and build more China-bound pipelines, which require massive investment, have stalled. Chinese companies and banks also have been cautious about developing their business in Russia, fearing that it could adversely affect their operations elsewhere due to the spiraling Russia-West tensions and Western sanctions. Plans for Chinese companies to invest in the giant Vankor oil and gas fields in

eastern Siberia have bogged down over pricing disputes, Russia’s hopes of using China as an alternative to European financial markets have failed and a prospective transport corridor between China and the European Union has remained mired in uncertainty. Beijing’s ambitious Silk Road Economic Belt project, intended to encourage infrastructure development in formerly Soviet Central Asia, which Russia sees as its home turf, has caused unease in Moscow. China has promised to coordinate the project with the Russia-dominated Eurasian Economic Union, but clearly has put an emphasis on bilateral deals with Kazakhstan and other members of the bloc. “Moscow can’t preserve its economic domination in Central Asia,” Alexander Gabuyev of the Carnegie Moscow Center wrote in a commentary. At a recent Russia-China forum in Moscow, officials hailed an “unprecedented” closeness, but businessmen and experts pointed at numerous problems. Russian tycoon Viktor Vekselberg deplored what he described as a “catastrophically low” level of Russia-China cooperation in the high-tech sector, saying that Chinese companies have shown little interest in investing in Russian industries.

Common interests

WHILE ambitious hopes for closer economic cooperation haven’t materialized, Russia and China have bolstered their military ties, which have included joint war games and contacts on missile defense. Russian weapons exports to China, which

peaked in the 1990s and fell dramatically in the following decade, have received a new boost recently. “We have common interests, especially now, when the United States has put pressure on both Russia and China,” said Li Fenglin, a former Chinese ambassador to Moscow who heads a government-sponsored think tank. He urged Moscow to cooperate more closely with Beijing, noting that some in Russia still fear China and seek to counterbalance its influence. Some Russian military and political insiders view China’s growing power with unease, fearing that the giant eastern neighbor could one day try to dictate its terms. The prospect of potential Chinese expansion long has worried residents of Russia’s sparsely populated far eastern regions, where many growled about the Kremlin’s decision to surrender significant slices of land along the 4,200-kilometer border to China in a 2005 demarcation deal. Reflecting such fears, Russia’s state television recently aired a program hosted by famous film director Nikita Mikhalkov, which included a video describing a hypothetical Chinese invasion. The video ended with China quickly overrunning all of Russia’s Far East and Siberia and drawing a new border along the Urals, the mountain range that traditionally serves as the boundary between Europe and Asia. Many in Russia also have been appalled by Chinese farmers leasing Russia’s agricultural lands, seeing them as both a vanguard of potential expansion and an environmental scourge because of aggressive use of toxic fertilizers. AP

Editor: Lyn Resurreccion • Thursday, June 23, 2016

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IAPA: Threats to journalists, media raise concern in Bolivia

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A PAZ, Bolivia—The Inter American Press Association (IAPA) on Tuesday condemned recent comments by Bolivian government officials seen as threats against journalists and attempts to publicly discredit the media in the South American nation. Claudio Paolillo, the chairman of the IAPA’s Committee on Freedom of the Press and Information, said in a statement that the comments mirror old practices of trying to intimidate and dissuade journalists from reporting on issues of public interest. “We deeply condemn the fact that the government is always seeking to stigmatize the press, labeling it a ‘cartel,’ as if it were a gang of delinquents, thus, justifying criminal charges, which are completely out of line with what the Press Law currently in effect in the country stipulates and with the inter-American principles on press

freedom,” Paolillo said. Bolivian Vice President Alvaro Garcia has described members of the opposition and some journalists as belonging to a “media-political mafia.” He also accused them of a “conspiracy” against President Evo Morales and threatened to apply “the laws to all these liars.” Garcia made the comment in reference to journalists and media that had published information about an influence-peddling scandal involving Morales’s former lover, Gabriela Zapata. She has been arrested and charged with illegal enrichment, laundering of unjust gains and influence trafficking as part of a probe by the government’s anticorruption agency into a Chinese company that has won more than $500 million worth of contracts with the state. The Miami-based IAPA said Garcia specifically mentioned the Fides News Agency and the newspapers El Deber, Pagina Siete and Erbol. AP

South Korea military: North fired two suspected midrange ballistic missiles

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EOUL, South Korea—In a remarkable show of persistence, North Korea on Wednesday fired two suspected powerful new Musudan midrange ballistic missiles, US and South Korean military officials said, its fifth and sixth such attempts since April. Five of those launches failed, many exploding in midair or crashing, and the sixth flew only about 400 kilometers, South Korea’s Joint Chiefs of Staff said, an improvement but still well short of the missile’s potential 3,500-km range and not long enough to be classified as intermediate. Despite the repeated failures, the North’s determination in testing the Musudan worries Washington and its allies, Tokyo and Seoul, because the missile’s range puts much of Asia and the Pacific, including US military bases there, within reach. Each new test—apparently linked to a command from North Korean leader Kim Jong Un—also likely provides valuable insights to the North’s scientists and military officials as they push toward their goal of a nuclear and missile program that can threaten the US mainland. Pyongyang earlier this year conducted a nuclear test, its fourth, and launched a long-range rocket that outsiders say was a cover for a test of banned missile technology. A statement from South Korea’s Joint Chiefs of Staff said a suspected first Musudan launch from the east coast city of Wonsan failed early Wednesday morning. It didn’t elaborate. But Japan’s Defense Ministry said the missile fragmented and pieces fell into waters off the Korean Peninsula’s east coast. Later Wednesday, the JCS said the North fired another suspected Musudan, which flew about 400 km. Seoul didn’t immediately classify this launch as either a success or failure, but the reported distance is well short of past tests of other midrange missiles. A US official also said the first launch appeared to be another failure, adding that the US was assessing exactly what had happened. The official wasn’t authorized to comment publicly and requested anonymity. Another American official said the first launch was a suspected Musudan but initial indications were that it failed in flight over the Sea of Japan, which the Koreas call the East Sea. The US Strategic Command in Hawaii said its systems detected and tracked two suspected North Korean Musudan missiles that fell into the Sea of Japan. It said in a statement that they didn’t pose a threat to North America. In April North Korea attempted unsuccessfully to launch three suspected Musudan missiles, but all exploded in midair or crashed, accord-

ing to South Korean defense officials. Earlier this month, North Korea had another suspected Musudan failure, South Korean officials said. Before April’s launches, North Korea had never flight-tested a Musudan missile, although one was displayed during a military parade in 2010 in Pyongyang, its capital. The launches appear to stem from Kim Jong Un’s order in March for more nuclear and ballistic missile tests. The order was an apparent response to springtime US-South Korean military drills, which North Korea views as an invasion rehearsal. Since the end of those military drills, Pyongyang has repeatedly called for the resumption of talks with Seoul, even as it pursues new missile development, but the South has rejected the overtures. Seoul wants the North to first take steps toward nuclear disarmament. Pyongyang says its rivals must negotiate with it as an established nuclear power, something Washington and Seoul refuse to do. The string of recent launch attempts shows the North is pushing hard to upgrade its missile capability in defiance of US-led international pressure. The North was slapped with the strongest UN sanctions in two decades after its nuclear test and longrange rocket launch earlier this year. “These provocations only serve to increase the international community’s resolve to counter (North Korea’s) prohibited activities, including through implementing existing UN Security Council sanctions,” State Department Spokesman John Kirby said in a statement. “We intend to raise our concerns at the UN to bolster international resolve in holding [North Korea] accountable for these provocative actions.” South Korea’s Unification Ministry called the launches a “clear provocation” that violated UN Security Council resolutions banning any ballistic activities by North Korea. In Tokyo Prime Minister Shinzo Abe was also critical, saying “We find it utterly unforgivable.” North Korea has recently claimed a series of breakthroughs in its push to build a long-range nuclear missile that can strike the American mainland. But South Korean officials have said the North doesn’t possess such a weapon yet. The North, however, has already deployed a variety of missiles that can reach most targets in South Korea and Japan, including American military bases in the countries. The Korean Peninsula remains in a technical state of war because the 1950-1953 Korean War ended with an armistice, not a peace treaty. About 28,500 US soldiers are stationed in South Korea to deter possible aggression from North Korea; tens of thousands more are stationed in Japan. AP

A10 Thursday, June 23, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Cracking the long whip against illegal recruiters

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ncoming Labor Secretary Silvestre H. Bello III must have heard enough of the sad stories of countless victims of illegal recruitment for him to declare that these leeches sucking the blood of Filipinos seeking employment abroad would be hunted down with bounties on their head. For his courage to take the bull by the horns, we can’t wait for him to assume his post. It took all these years before a Cabinet-level official was able to recognize the seriousness of the problem. But, as the old saw goes, better late than never. We don’t discount the efforts of past Labor officials to curb illegal recruitment. They have initiated a series of campaigns to warn job seekers to be vigilant and not to be hasty in accepting job offers abroad. Sadly, the government’s information-dissemination campaign miserably failed. Illegal recruitment continued to flourish. Despite repeated warnings, people with big dreams willingly parted with their hard-earned money for promised overseas jobs that are nonexistent. As the stories of the hapless victims of illegal recruitment reveal, lack of knowledge seemed to be the main factor that prompted them to deal with labor scammers. As most victims don’t know the legal procedures involved in applying for jobs abroad, they end up being scammed. Labor officials must know that massive information dissemination is an effective means to prevent illegal recruitment, which has spread its tentacles around the archipelago. Unfortunately, when the National Bureau of Investigation (NBI) entered the picture, warning the public against illegal recruiters by issuing tips to help prospective overseas Filipino workers from being duped, not enough effort was made to disseminate such useful information. For the benefit of the public, here’s what the NBI Anti-Illegal Recruitment Division issued: n Do not apply at recruitment agencies not licensed by the Philippine Overseas Employment Administration; n Do not deal with licensed agencies without job orders; n Do not deal with any person who is not an authorized representative of a licensed agency; n Do not transact business outside the registered address of the agency; If recruitment is conducted in the province, check if the agency has provincialrecruitment authority; n Do not pay more than the allowed placement fees. It should be equivalent to one month’s salary, exclusive of documentation and processing costs; n Do not pay any placement fees unless you have a valid employment contract and an official receipt; n Do not be enticed by ads or brochures requiring payment of processing fees through a post-office box; n Do not deal with training centers and travel agencies that promise overseas employment; n Do not accept a tourist visa; and do not deal with fixers. When jobseekers fall victim to illegal recruitment, they become vulnerable to human trafficking. Worse, they could be used as “drug mules” by syndicates in smuggling illegal drugs. The dangers that await these unsuspecting victims are overwhelming, irreparable and even tragic. That’s why Bello’s plan to put up a reward system for the heads of illegal recruiters is a most-welcome development. It’s about time somebody cracks the whip against illegal recruitment.

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Time to change the Philippines’s economic policies Bank of China, then the largest bank in China. That was when the per-capita GDP of that country was smaller than the Philippines. He told me that then President Jiang Zemin had only one economic goal—food self-sufficiency. Anything else was not a priority. W hen that goal was nearly achieved, China moved to building its manufacturing base. Perhaps the closest we can come to a genuine unique economic policy implemented in the last six years is the Comprehensive Automotive Resurgence Strategy (CARS) Program. This was implemented in 2015 to “attract new investments, stimulate demand and effectively implement industry regulations that will revitalize the Philippine automotive industry and develop the country as a regional automotive-manufacturing hub.” That is an economic policy. All else is just tweaking existing policies. But the incoming administration of President-elect Rodrigo R. Duterte is going to have to make economic policy changes and not simple adjustments. This must begin with comprehensive tax reform. You cannot have a 21st-century economy

with a 20th-century tax scheme. The Aquino administration did make one significant economic policy decision and that was to stop the mining industry. This is not a sector that can continue to be ignored. Like mining or not, to say that the Philippines is incapable of writing and enforcing regulations to allow a multibillion-dollar business to operate is unacceptable. Building infrastructure is also not economic policy even through the Public-Private Partnership Program. However, rationalizing the sewer of rules and regulations that businesses must swim through from the barangay to the national agency level is a critical economic policy. This is not merely “red tape.” It is the foundation of doing business in the Philippines. There are other economic concerns, such as investment incentives and foreign investment structure. But after six relatively lazy years, it is time for government to go work and do some heavy economic lifting. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

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We played basketball together on the Faculty Team against law students during the UE sportsfest. He was the Karl Malone, popularly known as “The Mailman,” of the UE Faculty Team. Just like Malone, Wilard was a good low-post player, who scored inside and outside. Team members fed him the ball and he delivered the points!

What is interesting is that Dean Riano’s life story was not exactly how he planned it to be. Soon after becoming a lawyer, he moved to the United States, together with his wife and daughter. This decision was dictated largely by his medical condition, which required him to get regular checkup abroad. At the same time, the dean also felt that working abroad would provide a better financial future for his family. For the most part, earning in dollars (or any other foreign currency) and spending in Philippine peso is what attracts our countrymen to leave the Philippines and work abroad. So Wilard left the country to find better opportunities in the Land of the Free and Home of the Brave. He started out as a paralegal

fest. He was the Karl Malone, popularly known as “The Mailman,” of the UE Faculty Team. Just like Malone, Wilard was a good lowpost player, who scored inside and outside. Team members fed him the ball and he delivered the points! During his term as dean at San Sebastian College of Law, Dean Riano was also considered as the Mailman, as he “delivered” lawschool enrollees from a mere 500 students a year, to 1,000 students per semester. Also, while SSC law dean, he “delivered” the first ever Bar topnotchers in the history of the school, the last of which was the first placer during the 2008 Bar exams. W hat most people do not know is that Wilard was “delivered” to the teaching profession by virtue of a stroke, a medical condition that has plagued his family. Both his parents died in their

early fifties due to stroke. His predisposition to this family medical history was exacerbated by the fact that he was a heavy smoker. When the expected did happen and Wi lard suf fered a stroke, he promised himself to start living healthy for the sake of his wife Anita and his only child Ma. Nina Lourdes. Thus, after all the medical procedures were done, including an angioplasty, Wilard decided to return to the Philippines to try out something less stressful than his job in the US. This decision turned out to be the correct one, as one can see from the accomplishments on his résumé. As his professional credentials would indicate, the delivery of Dean Riano from the jaws of death was beneficial not only for himself and his family. During his second lease on life, Wilard shared his gifts of leadership and teaching with people he came in contact with. His students and coworkers, whom he mentored through the years, fondly call him Tatang. I refer to him as the Mailman. The promise of our Lord in Isaiah 66:9 is, “I will not cause pain without allowing something new to be born. If I cause you the pain, I will not stop you from giving birth to your new nation.” After his stroke, Dean Riano was “delivered” to be the Mailman for others.

John Mangun

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OUTSIDE THE BOX

ne of the persistent myths about the Philippine government is that there has not been any economic policy continuity from one administration to the next. Despite all the whining and complaining about the administration of President Gloria Macapagal-Arroyo, you would be hard pressed to find any major economic-policy changes between that administration and that of President Aquino.

The complete independence of the Bangko Sentral ng Pilipinas (BSP) was maintained and that is good. Allowing the BSP to do its job without political interference is an economic policy. The Pantawid Pamilyang Pilipino Program of assistance to poor families was expanded under the Aquino administration, and that may have positive longer-term benefits. But that can only loosely be considered an economic policy. President Aquino did sign the “sin tax” law, which increased revenues for the government and any

taxation scheme is part of the government economic policy. However, this was actually only a continuation of putting the government financial house in order and on a more sound foundation that was started under Arroyo. An authentic economic policy is when a nation makes significant structural changes as to how the economy operates, such as in taxation, or makes the same type of change to its economic output thrust. In the early 1990s I hosted a senior e xecut ive f rom t he Far mer’s

The Mailman Siegfred Bueno Mison, Esq.

THE PATRIOT

awyers and law students, especially those coming from law schools at the University Belt, would know Dean Wilard Riano. He is the dean of the University of the East (UE) College of Law, and previously served as the dean of San Sebastian (SSC) College of Law for 11 years. He is a well-respected Bar reviewer in Commercial, Remedial and Civil Law in astoundingly 13 Bar review centers nationwide. He has published eight books to date. and an investigator for a Californiabased law firm. Financially, he was secure. Professionally, he was not challenged. So after 10 years, Wilard returned to the Philippines and immediately applied for the position of professor at the UE College of Law. A year after I became a lawyer, I also applied to teach in UE and this is where our paths crossed. It was our shared passion for teaching and love for our country that started our conversations. Prof. Wilard and I shared stories about life in the US, law-school reforms, Bar examinations and even sports. We played basketball together on the Faculty Team against law students during the UE sports-

Opinion BusinessMirror

opinion@businessmirror.com.ph

Quo vadis, mining industry? Val A. Villanueva

Businesswise

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t will be interesting to see how staunch antimining advocate Gina Lopez follows through with her reassuring words that she’s open to a dialogue with stakeholders of the mining industry, now that she’s accepted President-elect Rodrigo R. Duterte’s offer for her to lead the Department of Environment and Natural Resources (DENR).

Her rather conciliatory statement appeared to be not enough for investors in the mining sector, as the 17-stock mining and oil sectoral index nosedived on Wednesday—the day after her acceptance of “the challenge”—despite the whole market experiencing modest gains. The index, which comprises heavily of miners, gave away 488.55 points, or 4.09 percent, to close at 11,451.84—the only index among six that bid the day good-bye in the red. Nonetheless, the Philippine Stock Exchange index expanded by 1.33 percent, while the all-shares index rose 0.79 percent. Philex Mining Corp. shares stumbled 12.17 percent to end at P8.01 per share, and those of its subsidiary, Philex Petroleum Corp.—which explores and produces crude oil, natural gas and coal—tripped by 10.94 percent to end at P4.07 each. Philex Mining is one of the three Philippine subsidiaries of Manuel V. Pangilinan’s Hong Kong-based First Pacific Co. Ltd. Pangilinan, the top honcho of both Philex Mining and Philex Petroleum, tweeted: “Crash in Ph Mining stocks this morning. There go the coal plants too. Can’t look.” Lopez is seen in the industry as its staunchest enemy who uses her family’s ABS-CBN TV network to harass large-scale mining operators in the country. It wasn’t too long ago when she engaged Pangilinan in a heated tussle during a mining forum in one of the Metro’s five-star hotels. Sometime last year, and with ABSCBN’s TV crew in tow, she brought in around 300 antimining activists to disrupt a mining consultation in Lobo, Batangas, which Egerton Gold was conducting for the townsfolk. A mining executive, who refused to be identified, told BusinessWise: “This could be a cliché, but it is just like appointing Dracula to the blood bank. I really don’t know how the vetting procedure went, except for the fact that Gina is a staunch Durterte supporter.” Her aggressive and abrasive style irked many stakeholders in the industry who believe that she could not just draw the line between responsible and irresponsible mining. The mining executive said: “Hers in an uncompromising stand where there is no middle ground.” The industry’s big-time players, indeed, struggle to differentiate and distance themselves from smallscale illegal miners who feel they are accountable only to themselves. Time and again, large-scale miners immerse themselves in the dissemination to the public about the best practices in responsible mining, with emphasis on rehabilitating the environment and improving the lot of the community where they operate. Illegal miners, on the other hand, wantonly pillage the environment in collusion with local executives who, BusinesWise sources intimate, receive a share of their “loot.” Industry sources added: “This is the main reason these executives are for a total mining ban. Unfortunately, the ban is only for large-scale miners. Despite the ban, being contrary to the spirit of the country’s laws, large-scale miners still get the raw end of the deal.” Despite it being the world’s most regulated and most taxed industry, the country’s mining industry finds the government’s help, if and when needed, disappointing, if not utterly dismal. Mining firms are left to

The Philippine Mining Act has enough teeth to ensure that these mining companies toe the line. But too often, provisions of this law become inferior to the ones enacted by anti-mining LGUs, thus, frustrating the industry’s effort to maximize the economic benefits the country could get from the industry. fend for themselves in cases where they are harassed and given the circuitous rounds by local government units (LGUs), in which they operate or explore for minerals. The Philippine Mining Act has enough teeth to ensure that these mining companies toe the line. But too often, provisions of this law become inferior to the ones enacted by antimining LGUs, thus, frustrating the industry’s effort to maximize the economic benefits the country could get from the industry. The industry is already heavily invested in building infrastructure and taking care of the indigenous people in its respective mining areas. Lopez refuses to accept that modern-mining practices mitigate environmental destruction and that it could be the government’s partner to fuel economic growth. The Chamber of Mines of the Philippines (COMP) has repeatedly assured the government and the public that large-scale miners would continue to advocate responsible mining to benefit not just host communities, but the entire country. COMP Executive Vice President Nelia Halcion said its members were prepared to fulfill the mining industry’s crucial role of helping sustain a strong economic growth and spreading this to the countryside. The country has the world’s second-largest gold reserves. The queue of foreign investors, who wish to tap its vast mineral reserves, is getting longer, with each one eager to extract gold and other precious metals that lie beneath the ground. At the moment, mining contributes a miniscule percentage to the Philippine economy. Access to the $1.4-trillion mining sector, which is rich also in copper and nickel, has been elusive, mired since the 1980s in irrelevant local laws, environmental battles and land-rights issues. In my previous column, I have stated that mining matters in the world we live in. Almost everything that we use—household appliances, computers, farm implements, transport vehicles, mobile phones, beauty and hygiene items, medicines, fertilizers, etc.—is a mineral product, or relies upon minerals and metals for production and distribution. In order to maintain the lifestyle and security that a modern society enjoys, the mining industry must, therefore, be given the opportunity to continue on a course of healthy production and exploration into the future. Mining activists conveniently forget that mining has been, is and will continue to be a significant contributor to the country’s economic growth. In my talks with captains of the mining industry, they are still hopeful that Lopez would realize that she’s now the chief of a regulatory body, which is expected to be neutral. Until after Lopez makes known her plans for the industry, the future of mining precariously hangs in the balance. For comments and suggestions, e-mail me at mvala.v@gmail.com

Thursday, June 23, 2016 A11

Wholehearted discipleship Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

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ne is full of confidence that in the abounding joy of the Lord’s presence, the path to life will be shown to anyone who sets the Lord ever before him (Psalm 16:1-2, 5, 7-8, 9-10, 11). Following Jesus may entail hardships and rejection, but never will the committed disciple be without the strength of the grace and blessing of Jesus (Luke 9:51-62).

Fullness of joys in the Lord’s presence IN the psalm’s lyrical expression of trust in God, the believer proclaims God as his refuge and protection in life, his Lord in their covenant. This specific relationship with the Lord is captured by the two images employed. One is that God is his “inheritance,” the allotted portion of land originally distributed among the tribes of Israel in the Promised Land, the primordial inheritance that gives identity and sustenance to everyone. The second image is that of the cup that gives joy, the cup passed around in the assembly from which all drink, the cup of intimacy with God. And the psalmist is assured of his inheritance and his joy-filled future because it is the Lord no less who holds it fast and secure. It is the Lord who guides and

counsels the psalmist. His entire being is filled with confidence and gladness in God: in his heart, his inner depths, he is instructed by God, even at night when irrational feelings well up inside him, and also in his body, his fragile and corruptible flesh, he rests secure in God and feels profound joy. He is sure that God will not abandon him to death and corruption, to sheol, or the netherworld, where the dead is relegated. The psalmist’s trust is unshakeable; God is steadfast. God is the one to teach him the path to life. And in the presence of God is fullness of joy; at His right hand under His powerful protection there is forever delight.

Following jesus wholeheartedly

The antagonism the Samaritans showed Jesus and His group went

To follow Jesus and to want to be with Jesus demands a radical and wholehearted discipleship. A wholehearted commitment to Jesus means being prepared to pay the price of self-denial for the purpose of self-dedication to Him. In the words of the psalmist, “I set the Lord ever before me,” and his confidence in the Lord is unshakeable: “You will show me the path to life, fullness of joys in your presence, the delights at your right hand forever.”

back to the return of the Jews from the Babylonian exile. The Jews rejected the people of the Samaria district as impure who had intermarried with foreigners. Kept from helping rebuild the temple in Jerusalem, the Samaritans built their own temple, which was later destroyed by the Jews. Doing their own worship on Mount Gerizim, the Samaritans in retaliation refused hospitality to pilgrims who would be on their way to Jerusalem. Jesus refused to engage in such hostility and inter-religious conflict, as His disciples suggested they do. To follow Jesus is to be with one who could take and live with rejection and hostility and difficulties.

To the man who offered to go with Him everywhere, He made clear that following Him would entail the readiness to forego having a home of one’s own where one belongs; one can only go everywhere and anywhere, if one is not tied down to an earthly home. To the other two individuals who would also be His disciples, but only after they have first put in order their own personal immediate affairs, Jesus maintained that even religious customs and family ties cannot take precedence over following Him. Alálaong bagá, to follow Jesus and to want to be with Jesus demands a radical and wholehearted discipleship. A wholehearted commitment to Jesus means being prepared to pay the price of self-denial for the purpose of self-dedication to Him. In the words of the psalmist, “I set the Lord ever before me,” and his confidence in the Lord is unshakeable: “You will show me the path to life, fullness of joys in your presence, the delights at your right hand forever.” Christian discipleship, on the premise of having found in Jesus love and salvation, joy and purpose, is our response to God’s grace, our radical commitment to the Lord, not in any part time, fragmented manner but wholeheartedly. Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on dwIZ 882, or by audio-streaming on www.dwiz882.com.

Proposed amendments to the Corporation Code of the Philippines Atty. Filamer D. Miguel

Tax law for business

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atas Pambansa Bilang 68, otherwise known as the Corporation Code of the Philippines, was enacted and approved on May 1, 1980. While most of its provisions continue to be a good law, it has antiquated provisions, which are no longer on a par with or compatible with the changing times. In order to be abreast with the developments of the modern world, several attempts at amending the Corporation Code have been made. Of the proposed amendments, Senate Bill (SB) 2194, sponsored by Sen. Sonny M. Angara of the 16th Congress, is the most comprehensive. Notwithstanding its notable intention, SB 2194 was unfortunately not passed into a law. With the incoming administration of President-elect Rodrigo R. Duterte, another promising bill amending the Corporation Code is intended to be refiled in July by its sponsor, Sen. Paolo Benigno “Bam” Aquino IV. It is basically a reiteration of SB 2194 incorporating additional revisions. Among the salient provisions of Senator Bam’s proposed bill is the

introduction of new classifications of corporation, its conversion or revival, new minimum capital requirements and new term. As proposed, the new categories of corporations are as follows: n One person corporation—a corporation with only one stockholder (director or trustee) who is either a natural or juridical person. n Small corporation—a corporation with stockholders (incorporators) not exceeding three and its total assets do not exceed P15 million. n Regular stock corporation— a corporation with more than three but not exceeding 15 incorporators and its assets exceed P15 million.

Nobel Prize for physick Teddy Locsin Jr.

Free fire

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am sick and tired of us being called Third World, or a merely developing nation, just because of the mass poverty and the corrupt governments that afflict us. You may call us poor, but that is only because we are; but being poor was no obstacle to achieving the scientific breakthrough for which the richest countries have pined.

Let me explain. If time is light because events travel with light, and light travels the fastest, as Einstein said—adding that space is gravity whose force can bend light and, therefore, time along with it—then the aftermath of the recent election has proved Einstein right. Filipinos, at least some of them, can travel faster than light and time, and they can bend over so far backward that they can kiss the new ass in the Palace as if they never licked another

one in the past. And they come out and say with a straight face pa, “We were always for Duterte.” Mindanao planters, who formally introduced Binay as the next president, never did so; and today boldly claim they were always and only for Duterte. More famously, the Liberal Party (LP) nominee by the reversal of time was never Mar but Duterte all along, and the head of the LP—the Speaker of the House—was never really Liberal but PDP-Laban at

With the incoming administration of President-elect Rodrigo R. Duterte, another promising bill amending the Corporation Code is intended to be refiled in July by its sponsor, Sen. Paolo Benigno “Bam” Aquino IV. It is basically a reiteration of SB No. 2194 incorporating additional revisions. A regular stock corporation may be converted into a one person corporation and vice versa. One person corporation is the only exception where a president/CEO may concurrently hold the position of a treasurer/CFO. Unlike in the old Corporation Code, the new SB proposes that a corporation shall have a perpetual term unless, otherwise, stated in the Articles of Incorporation. A term exceeding 25 years shall be subject to a periodic review of the Securities and Exchange Commission (SEC). Further, this bill proposes that for a stock corporation, the new minimum capital requirement is at least P1 million. However, for corporations issuing no par value, the minimum capital requirement is only P200,000.

The Nobel Prize in physics for “time-travel and event reversal” must be awarded for the first time, not to a living individual, but to an entire time traveling people; starting with PNoy who said in a phone convo with Duterte that he was available to help him build on the gains of Daang Matuwid, which was roundly rejected in the last election. heart from the start. This is impossible. I was one of the founders of the party, along with Mitra, Guingona and Pimentel right after Ninoy’s assassination. We met in the garden of Mitra’s house. I do not recall Sonny being there. But yes…yes! We have proved Einstein and Bohr were right about relativity and quantum…or rather quanto physics—meaning…. How much? With our hands out. All that without putting up a Hadron Collider, which

Moreover, this new SB proposes that attendance in meeting could be done not only in person or by proxy, but also by remote communication, such as videoconferencing or teleconferencing. It also recognizes that voting may be done in absentia, aside from doing it in person or by proxy. It has, likewise, introduced more comprehensive methods of dissolution, lengthier list of offenses and stiffer penalties, wider jurisdiction and powers of the SEC and voluminous new reportorial requirements to be complied with. While this new SB is promising, it also has room for improvements. It is with hope that this will be one of the priority bills of the new administration to be enacted into law. The author is a senior associate of Du-Baladad and Associates Law Offices, a member-firm of World Tax Services Alliance. The article is for general information only and is not intended, nor should be construed, as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at filamer.miguel@bdblaw.com.ph.

would cost hundreds of billions of dollars that some of us can pocket. My gum, everybody was always for Duterte. Even I—I who voted for my niece Grace Poe and for Gringo because he let me gas up in Camp Aguinaldo for free when I was a law student. But I recall only one notable personality who actually said she was for Duterte way before the elections—and that was Gina Lopez. And yet nobody was ever for Binay, let alone Mar. Amazing. The Nobel Prize in physics for “time-travel and event reversal” must be awarded for the first time not to a living individual, but to an entire time traveling people; starting with P-Noy who said in a phone convo with Duterte that he was available to help him build on the gains of daang matuwid, which was roundly rejected in the last elections. Amazing. Sit tight. We are going into warp speed. And (making the Vulcan sign but with thumb and index finger making a circle for moolah) may the space-time bug bite you.

2nd Front Page BusinessMirror

A12 Thursday, June 23, 2016

Coalition unveils 16-point ‘eco challenge’ list for Duterte

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coalition of environmental groups on Wednesday released 16 environmental demands comprising the so-called Eco-Challenge for Change for the incoming administration of President-elect Rodrigo R. Duterte to implement as soon as he takes over the Malacañan Palace.

“Now is the time for Duterte to prove his progressive pronouncements. The people are expecting a lot from him as a ‘maverick’ president and break the interest of the oligarchs. He [Duterte] should hear the people’s clamor for genuine change and reverse current antipeople and antienvironment policies of the Aquino administration. The Eco-Challenge for Change will be a litmus test if the Duterte administration is, indeed, an eco-friendly leadership,” Clemente Bautista, national coordinator of Kalikasan-People’s Network for Environment (Kalikasan-PNE), said. A product of consultative meetings between leaders and representatives of more than 30 environmental groups, the list was released to the media at a news

conference in Quezon City on Wednesday. Bautista said each of the participating organizations submitted their list of demands collated and enumerated according to “what is the most common and important” to protect the environment. “We will develop later a list of medium- and long-term demands for the Duterte administration [to implement],” he told the BusinessMirror. “The Eco-Challenge for Change will closely monitor and keep in check the incoming Duterte administration if it will truly serve the interest of the Filipino grassroots communities, and will work for the protection of our environment and natural resources,” Bautista added. Topping the list is the ban on toxic

wastes, such as the call to ban chemical aerial spraying and the return of the Canadian toxic waste “illegally dumped” to the Philippines; the ratification of the Basel Ban Amendment and Minamata Convention on Mercury, and the formulation of a national policy on electronic waste. The groups also called for a moratorium on the construction and expansion of coal-fired power plants, cancellation of the 25 approved coal power-plant projects currently in the pipeline and the implementation of a national energy policy review toward a just renewableenergy pathway. The coalition also called on Duterte to stop large-scale, illegal and destructive mining in environmentally critical and agricultural areas, suspend all erring mining companies and indemnify victims affected by disastrous mining projects. Large-scale mining is a top priority of the group, as they see it as among the No. 1 cause of forest destruction and water pollution in the country, Bautista said. “Various communities have long suffered the ferocious impacts of mining. As a staunch antimining advocate [in] his term as mayor of Davao City, Duterte is expected to replicate this on

a national scale. He and the DENR [Department of Environment and Natural Resources] should immediately respond to the call of barricading communities in Nueva Vizcaya and in Santa Cruz, Zambales, to immediately suspend OceanaGold, Acoje Mines and other mining companies operating in their communities,” he added. Among the signatories of the demand list include the Advocates of Science and Technology for the People (Agham); Agham Youth; Alyansa ng Nagkakaisang Novo Vizcayano para sa Kalikasan; Amianan Salakniban, Ban Toxics; Bukluran Para sa Inang Kalikasan; Caraga Watch, Center for Environmental Concern-Philippines; Cordillera People’s Alliance; Ilocos Network for the Environment; Green Action PH; Greenpeace Philippines; KalikasanPNE; Kalikasan-PNE Southern Tagalog; Katinnulong Daguiti Umili iti Aminan Inc., Oceana Philippines; Panalipdan Southern Mindanao Region;PARTS Mindanao; Pusod Inc.; Samahang Pangkarapatan ng Katutubong Magsasaka at Manggagawa, Save the Valley, Save the People-Cagayan Valley, Sibol ng Agham at Teknolohiya; Univesity of the Philippines-Saribuhay and Small Hands. Jonathan L. Mayuga

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‘REGULAR LEDAC MEET WILL HELP NEXT ADMIN hit ECONOMIC GOALS’

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he administration of President-elect Rodrigo R. Duterte should convene the Legislative-Executive Advisory Council (Ledac) regularly to identify crucial measures needed to help the government meet its socioeconomic goals. Outgoing Speaker Feliciano R. Belmonte Jr. said in a recent interview that convening the Ledac is “important” to identify the next administration’s economic and legislative agenda. “We should convene [Ledac] very often, so that we could be more in tune with [Duterte] and his economic managers’ thinking,” Belmonte said. During the Aquino administration’s entire six-year term, only two Ledac meetings were convened. Republic Act 7640, or the Ledac law, states the council should meet, at the least, on a quarterly basis. Lawmakers and members of the Executive branch draw up a list of priority measures in Congress during the Ledac meetings. The council is chaired by the President. Also participating in the Ledac meetings are the Vice President, the Senate President, the House Speaker, seven Cabinet members, three senators, three House members and one representative each from the local governments, the youth and the private sector. Earlier, incoming House Speaker and Partido Demokratiko Pilipino-Lakas ng Bayan Rep. Pantaleon D. Alvarez of Davao del Norte said he would ask Duterte to convene the Ledac to identify the 17th Congress’s and his legislative agenda. Alvarez said the council is mandated to determine and recommend socioeconomic development goals, and to integrate legislative agenda with the national development plan. He said the Ledac is needed for the early passage of the priority measures of the next administration and the 17th Congress. “We also need the Ledac meetings for a smooth relationship between the Legislative and Executive [branches of the government],” Alvarez said. Jovee Marie N. dela Cruz