Businessmirror march 01, 2018

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Thursday, March 1, 2018 Vol. 13 No. 141

Airlines given 6 months to move flights to Clark 5 million T

By Jovee Marie N. dela Cruz

The number of passengers that would be displaced if airlines are forced to transfer some flights to Clark, according to Cebu Pacific

However, Cebu Pacific said the plan would lead to the cancellation of thousands of f lights, aside from displacing millions of passengers.

In a news conference, Speaker

F

OR more than three hours on Wednesday, trading of shares of the Philippine Stock Exchange Inc. (PSE) was suspended by the Securities and Exchange Commission (SEC), as it accused the exchange of issuing “misleading statements” on the PSE’s move to bring down brokers’ ownership and satisfy regulatory requirements.

PSE shares were halted at 10:19 a.m. after opening at P244.40. It resumed trading at 1:30 p.m.

See “Trade,” A2

Migration and development: When will the turning point come?

Rene E. Ofreneo

I

laborem exercens

n the 1970s two East Asian countries became major “exporters” of manpower, mainly construction workers, to the petrodollar-rich Middle East.

These are the Philippines and South Korea.

₧245 @villygc

P25.00 nationwide | 6 sections 46 pages | 7 days a week

Continued on A2

Trade in PSE shares halted by regulator

By VG Cabuag

business news source of the year

@joveemarie

he leadership of the House of Representatives on Wednesday has extended to six months— from the original 45 days—the deadline for airlines to transfer some of their flights to Clark International Airport (CIA) to decongest the Ninoy Aquino International Airport (Naia).

The stock price of the Philippine Stock Exchange Inc. on the day trading of its shares was ordered temporarily stopped by the Securities and Exchange Commission

2016 ejap journalism awards

Continued on A11

6-month plan includes halt to all building construction in Boracay

By Ma. Stella F. Arnaldo

LEONES: “Personally, I believe that a moratorium is not enough. In other countries, stopping the operation for a period to fix the problem is needed.”

@akosistellaBM Special to the BusinessMirror

SURF’S UP! Bagasbas Beach in Daet, Camarines Norte, is one of the top surfing destinations in the Philippines. It is known for its long and wide stretch of fine, gray and powdery sand, and big waves that roll in from the Pacific Ocean. This makes the beach an ideal spot for surfers of any level. It is known to provide barrel waves that can be experienced between July and November and, sometimes, all the way to January. George Tapan/SOURCE: http:// www.pinoyadventurista.com/2012/10/bagasbas-surfing.html

Data protection officers hottest item in technology

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n 2018, companies across the world are scrambling to comply with the data-privacy laws that are shooting up everywhere. Europe is joining the bandwagon in May, representing the biggest shake-up of personal data-privacy rules since the birth of the Internet.

PESO exchange rates n US 52.0340

A nd t he Phi l ippines is no e xce pt ion: t he Dat a P r iv ac y Act (DPA) was signed into law in 2012 and is now strictly implemented by the National Privacy Commission (NPC).

While Philippine companies have, to some extent, complied

with the rules in naming a data protection officer (DPO) to the NPC, Henry J. Schumacher, president of the European Innovation, Technology and Science Center (EITSC), feels that “most of the DPOs are not fully familiar with Continued on A12

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HREATENED by a possible closure of the island, as well as administrative sanctions against local government officials, the Malay municipal government will be suspending all building construction on Boracay Island from March to December this year.

This activity was contained in the six-month action plan presented by the Malay government, headed by Mayor Ciceron Cawaling, to island stakeholders during a meeting at the EcoVillage Convention Center on Tuesday.

T his developed as Interior Assistant Secretar y for Plans

and Progams Epimaco V. Densing III told ANC’s Beyond Politics on Tuesday that the task force on Boracay is leaning toward recommending to President Duterte a closure of the island for 60 days. “[Interior] Secretary [Eduardo M.] Año agrees on a closure. [Tourism] Secretar y [Wanda Corazon T.] Teo was also supportive Continued on A12

n japan 0.4847 n UK 72.3689 n HK 6.6480 n CHINA 8.2371 n singapore 39.3036 n australia 40.5085 n EU 63.6376 n SAUDI arabia 13.8750

Source: BSP (28 February 2018 )

BMReports BusinessMirror

A2 Thursday, March 1, 2018

Airlines given 6 months to move flights to Clark Continued from A1

Pantaleon D. Alvarez said the sixmonth period is the recommendation of the Manila International Airport Authority (Miaa) to complete terminal rationalization at Manila’s airport.

The rationalization plan seeks to transfer some domestic flights to the CIA. Under the plan, Terminals 1 and 3 would be used for international flights, while Terminals 2 and 4 would be allocated to domestic flights.

With this, Miaa General Manager Ed V. Monreal said all of Philippine Airlines’s (PAL) international flights to Terminal 1 will be removed. Etihad Airways, Japan Airlines, Thai Airways and Saudia Airlines, however, will continue to operate in Terminal 1.

Terminal 2 would be for domestic flights of PAL, PAL Express and Cebu Pacific. The international flights of 27 foreign carriers would be transferred to Terminal 3.

Monreal said Terminal 4 would still be used by Air Asia, Cebgo, Sky Jet and Air Swift.

Trade. . .

Continued from A1

“The suspension was just made so that the public could accurately digest the actual changes in the SRO [stock rights offer],” Marita Limlingan, president of Regina Capital and Development Corp., told the BusinessMirror.

Limlingan was referring to the 11.5-million stock rights offering by the PSE that the exchange claims would dilute the brokers’ ownership down to 20 percent.

The latter act is what the SEC requires the PSE to undertake so that it can secure the regulator’s approval of its acquisition of PDS Holdings Inc., the parent company of the Philippine Dealing & Exchange Corp. (PDEx) and the Philippine Depository and Trust Co. (PDTC) and is considered an “Exchange Controller.”

The PDEx is the dealing exchange for fixed-income securities, while

“That’s the recommendation of airport authorities. So from 45 days [I agreed to extend it to six months], because they have reasonable assessment,” Alvarez said.

Earlier, Alvarez told Miaa and airlines to take appropriate steps to decongest passenger and air traffic in Manila’s airport, or they will face possible graft charges for failing to protect the public’s welfare.

According to Alvarez, it is only in the Philippines where mixed use of airports is allowed, where airports designed for domestic traffic also handle international flights, while airports designed for international flights also take in domestic flights.

If necessary, the Speaker said, airport authorities should divert flights to other airports, such as CIA, to ease the congestion at Naia.

The Speaker also warned airlines to comply with government rules or face possible cancellation of their franchises.

During the House Committee on Transportation hearing, Cebgo President Alexander Lao, however,

opposed the rationalization plan, saying: “All of the gains of the Philippines in stimulating air travel will disappear in one stroke.”

Cebu Pacific, in its position paper submitted to House Committee on Transportation, said that, while it supporting the government’s efforts in seeking solutions to improve the experience of passengers who use the Naia, many operational and asset efficiencies cannot be realized with split terminals.

“Segregation of international and domestic operations has a major adverse effect on Miaa’s ability to act in a hub capacity and deliver seamless passenger transfer capability, impacting domestic travelers, tourists and OFWs [overseas Filipino worker],” Cebu Pacific said.

“The proposed terminal reassignment does not solve the overall capacity challenges in Miaa and, indeed, adds additional pressures to the already-limited facilities and infrastructure, requiring a significant cut to all airlines services that will be required to be implemented equitably,” it added. According to

Cebu Pacific, CIA is not an alternative airport for Manila, with its distance and being a separate catchment area. The capacity of the CIA is only 2.7 million per annum, which means more than 5 million passengers would be displaced.

“Our proposal that would see the construction of a new concourse within the existing Terminal 3 area and be designated as Terminal 3 Domestic, but will leverage the common infrastructure, terminal and ramp areas of the current Terminal 3 [and which will later become Terminal 3 International]. We estimate this will increase total Terminal 3 capacity from 14 million to 28 million,” the airline said.

It also assured the public and the gover nment that cer tain steps are now being implemented to ensure that passengers inconvenience is minimized.

Meanwhile, PAL Head of Operations Ismael Gozon said the company supports the objective of terminal rationalization and the intended timelines set by airport authorities.

PDTC acts as depository and registry for participants for both fixed income and equity securities, the SEC explained.

The Securities and Regulation Code (SRC) strengthened SEC regulatory functions over all entities dealing in securities, such as the PSE, the PDEx and Capital Market Integrity Corp., as well as market professionals like brokers and dealers, among others.

During the drafting of the SRC, the legislature observed that control over the PSE by a group of small brokers with vested interest in maintaining the status quo resulted in abuses to the detriment of the public.

“To avoid this situation and to protect public interest, Congress included in the SRC a provision which limits industry ownership to 20 percent and individual ownership to 5 percent,” the SEC has said in its explanation of the PSE’s move to acquire PDS Holdings.

Hence, the SEC required the PSE to

bring down brokers’ ownership to 20 percent from the current 23 percent.

The SEC, however, said the stock rights offer alone will not dilute the brokers’ ownership and that both it and the PSE still need to do more, including revoking the status of inactive brokers. The PSE, however, said it “strongly disagrees” with a SEC statement describing its disclosures as “inaccurate” and “misleading.”

“The PSE has been in constant communication with the SEC to satisfy the requirements of the Commission [SEC] by issuing a clarification, which [the] PSE believes was sufficient,” it said in a statement.

“The company [PSE] has already revoked the status of, and have declared vacant the trading rights of, inactive trading participants, who are also shareholders, constituting about 2.34 percent of the total outstanding capital stock,” the PSE said in a separate disclosure.

The SEC, on the other hand, is

currently completing the process of revoking the registration of these shareholders if they will not amend their primary purposes to that of a nonbroker business, the PSE added.

With the issuance of the 11.5 million common shares under the SRO, brokers’ shareholdings will go down to 22.05 percent. This, however, still includes the shares owned by brokers whose trading rights have been revoked by the PSE and who are currently undergoing administrative procedures with the SEC. “After the SEC completes its process, the broker shareholdings further go down to below 20 percent,” the PSE said. “The company is confident that with the offer fully underwritten and the procedures already being implemented by the company and the SEC, this will be fully achieved.”

Shares of the PSE closed at P245, or P1 higher than its previous close.

About 3,730 shares valued at 930,814 were traded on Wednesday.

Impact

www.businessmirror.com.ph

Cha-cha. . .

Continued from A12

and investment regime will bring,” the statement read.

In its statement, the JFC said, “restrictions on foreign investment make the economy less competitive by imposing constraints to growth that result in lower investments, fewer jobs, poor infrastructure, and noninclusive development.”

Aguilar said the economic reforms subcommittee is targeting to submit its report and recommendations to the consultative committee en banc before March 25.

On Tuesday the consultative committee voted in favor of a presidential form of federal government.

Boracay. . .

Continued from A12

dismantle illegally built structures.

He said the 30-meter easement rule from the shorelines is the least of the concern of the special Boracay task force led by Cimatu. “We are more concerned about the expansion of big hotels, because it will take time and will be costly.”

He said that, initially, the DENR is looking at spending P10 million for the massive mobilization of DENR personnel in Boracay alone.

“Because we have no demolition crew, we have to outsource it. But we are hoping that the hotel and big resort owners will cooperate and do the demolition voluntarily. Otherwise, we will have to shut down their establishment,” he said.

A ccord i ng to L e ones, t he DENR’s resort-to-resort inspection is still ongoing and closure of resorts that fail to institute corrective measures, particularly the discharge of wastewater, is inevitable.

The official said the task force is weighing various options in its effort to address the problem. “Personally, I believe that a moratorium is not enough. In other countries, stopping the operation for a period to fix the problem is needed.”

The Boracay task force, he added, is evaluating various recommendations, including declaring the entire island under a state-

Sanofi. . .

Continued from A12

He stressed that the certificate of product registration for Dengvaxia is for prescription basis only and not for mass vaccination, stressing that there was hasty mass vaccination based on the Formulary Executive Council.

But Sanofi said: “We learnt of the different product profile of the dengue vaccine for those with or without a previous dengue infection in November 2017, and Sanofi Pasteur has shared the new data in full transparency with national health authorities in countries where the vaccine is approved or where it is being considered for regulatory approval.”

‘No clear link yet’

Health Secretary Francisco T. Duque III said the current DOH task force, the only legitimate medical body that would investigate the Dengvaxia cases, said there is no clear evidence yet linking the deaths of children to Dengvaxia as examined by the PGH team.

Dr. Juliet Sio-Aguilar of the DOH-UP PGHestablished dengue task force—composed of 10 specialists and pathologists, who examined the 14 cases that were referred to the DOH, all of which underwent tedious and meticulous study—stated that based on their findings, there is no medical evidence linking the deaths to Dengvaxia.

In fact, nine of the fatalities were known to have died from other causes, not related to dengue. The three other cases were inconclusive.

The DOH investigative task force was requesting for tissue samples from the Public Attorney’s Office (PAO), but this had been rejected. The PAO was tasked by the DOJ to legally assist the parents of the alleged victims of Dengvaxia. The PAO had insisted on its own findings that Dengvaxia was the main cause of the other 36 patients

The federal-presidential system adopts the current setup of a national government with three branches: Executive, Legislative and Judiciary.

However, in a federal setup, the country will be divided into federal states with their own legislature and local governments.

This system is being followed in the United States.

“We pattern this structure of government from the United States, which has a federal form of government. This structure, characterized by separation of powers, characterized by check and balances, is the best federal government in the world,” former Chief Justice and Con-com Chairman Reynato S. Puno said. ment of calamity to speed up the ongoing rehabilitation.

“Once a state of calamity is in effect, the rehabilitation will be faster,” he said.

Leones said that, from now on, the DENR’s Environmental Management Bureau (EMB) will ensure that every establishment built on the island, especially those near the shorelines, will compl y w it h e nv i ron me nt a l laws, particularly on the discharge of wastewater, as prescribed by the Clean Water Act. Aside from Boracay, the DENR has started the crackdown against similar violators in other wellknown resorts, such as El Nido in Palawan and Puerto Galera in Oriental Mindoro.

Meanwhi le, the Phi lippine Chamber of Commerce and Industry (PCCI), through its Environment, Climate Change and Urban Development Committee led by Director in Charge Jose P. Leviste Jr., has expressed support to the initiatives of the DENR to clean up Boracay and other tourism destinations to ensure that all business establishments comply with environmental laws.

“There is no better time than now to prevent the steady degradation of our ecotourism destinations, and to preserve them as long-term assets to be enjoyed by Filipino and foreign tourists,” Leviste said. “Short-term thinking by violators in travel resorts are damaging the islands’ reputations as a tropical paradise.”

With Jonathan l. Mayuga

it had autopsied. It was unclear whether the DOJ order allowed the PAO to conduct medical proceeding on the victims. PAO Chief Persida R. Acosta also showed the distribution of doses administered by the two previous and current secretaries.

Rep. Jorge Banal of the Third District of Quezon City noted that what the PAO has been doing to erode the reputation of the DOH-PGH Investigative Task Force is not helping the investigations move forward in a positive manner leading the public to believe that all vaccinations are dangerous. This position was supported by former Secretary Janette Garin and Duque, who both called for unity in the course of the investigations and the quest for truth.

Duque moves DOH officials

Effective next week, the DOH will implement changes in its senior leadership. Duque explained that the changes were made in light of investigations concerning high-ranking officials of the agency.

Under these changes, certain undersecretaries, assistant secretaries and directors will be reassigned to other offices.

“I am reassigning cer tain undersecretaries, assistant secretaries and directors of the DOH to preserve the integrity of ongoing investigations and to prevent any potential undue influence on their findings,” Duque said.

Last week, two senior officials at the Food and Drug Administration were reassigned upon the recommendation of its director general.

“I respect the recommendation of the director general to support any efforts in ensuring that ongoing investigations remain fair and transparent and immune to undue influence,” Duque added.

The DOH assures the public that it is not taking allegations of impropriety lightly. Duque is a longtime advocate of good governance and is keen on bringing transformational leadership to the department. Claudeth Mocon-Ciriaco

The Nation BusinessMirror

news@businessmirror.com.ph

PNP ‘cleansing’ axes 398 cops in 26 months

By Rene Acosta

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@reneacostaBM

he Philippine National Police (PNP) under the leadership of Director General Ronald M. de la Rosa has already dismissed from the service a total of 398 policemen during the past 26 months and has penalized 1,614 others due to various offenses.

PNP Spokesman Chief Supt. John Bulalacao said that of the number of dismissed personnel, 167 were fired due to drug-related offenses as the PNP continue to implement its topto-bottom internal cleansing in the 180,000-strong organization.

Bulalacao said that based on the records of the PNP Directorate for Personnel and Records Management (DPRM), aside from those axed, an additional 1, 614 were meted with administrative penalties from 2016 to 2018 under the PNP Comprehensive Internal Disciplinary Mechanism.

Dela Rosa ordered the DPRM to immediately implement his dismissal order against the 398 erring policemen as he reiterated his uncompromising stand against misconduct and breach of discipline in the ranks.

“As the father of the organization, my heart bleeds when I sign dismissal orders for delinquent policemen. It’s a tough decision, but it had to be done for the sake of the organization,” dela Rosa said.

Among those dismissed, 151 were found positive for illegal-drugs use, while 16 more were involved in drugrelated activities.

Also, 91 were dismissed for absence without official leave; 10 for kidnapping; 22 for murder; three for rape; six for homicide; two for parricide; and three for illegal arrest or detention.

Additionally, 23 were also dismissed for their involvement in robbery extortion; one for graft and malversation and 70 for grave misconduct that arose from immorality, dishonesty, estafa and violation of Batas Pambansa 22.

On the other hand, the disciplinary sanctions for the 1,216 policemen ranged from demotion to suspension, reprimand, restriction and even salary forfeiture.

Bulalacao said that since 2016, there were 14,515 administrative cases that were investigated, wherein 8,422 cases were resolved.

Currently, at least 6,093 administrative cases were still awaiting resolutions.

Editor: Vittorio V. Vitug • Thursday, March 1, 2018 A3

Sereno deplores ‘extra-constitutional’ pressure to force her to leave CJ post

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By Joel R. San Juan

@jrsanjuan1573

HE camp of Chief Justice Maria Lourdes A. Sereno on Wednesday condemned what it called a “coordinated extra-constitutional” efforts to pressure the chief magistrate to quit her post, even before an impeachment case is brought before the Senate by the House of Representatives for trial.

Sereno’s spokesmen, lawyers Jojo Lacanilao and Josa Deinla maintained that the Chief Justice will not quit her post, despite alleged pressure from her fellow magistrates to do so.

Lacanilao said it would be unconstitutional for the Supreme Court (SC) to force her to resign because only the Chief Justice can decide on that.

“Resignation is a personal decision; it cannot be an institutional decision of the Supreme Court,” Lacanilao said, referring to reports that some justices confronted Sereno during their en banc session on Tuesday and advised her to just vacate her post.

Lacanila said Sereno is looking forward to have the impeachment case brought to the Senate for trial where she will have the chance to prove that all the allegations against her were baseless and unfounded.

On Tuesday, Sereno informed Deputy Clerk of Court Atty. Anna-Li Papa Gombio that she was taking an indefinite leave of absence from the High Court starting March 1.

Meanwhile, Sereno said that she will use her leave of absence to prepare for her legal defense in the looming trial in the Senate where she intends to fight the impeachment case fair and square, not only for herself but for the entire judiciary.

“I need to prepare to fight the accusations against me fairly and squarely, with honor, dignity and grace,” Sereno said in her keynote address at the 25th National Convention of the Regional Trial Court Clerks of Court Association of the Philippines (RCAP) held at the historic Manila Hotel.

“It makes me proud to fight for you,” Sereno told court employees attending the RCAP event, which was her last public engagement before her leave starts on Thursday, March 1.

The country’s top magistrate assured court workers that the judiciary will continue to fulfill its mission of upholding the rule of law and delivering justice to every Filipino, despite her leave of absence.

“I want to give you the assurance that, while I will be taking a

Image maker A craftsman puts finishing touches on the image of the Blessed Virgin Mary at his sidewalk stall in Barangay Pag-asa,

Quezon City. The price of the images vary—from P5,000 to a pricier P15,000—depending what material a particular statue is made of. NONOY LACZA

leave of absence, the ship of state of the judiciary remains on course,” Sereno stated.

Lacanilao added that Sereno has not lost her faith in the impeachment process, which culminates in a decision by the Senate, sitting as an impeachment court, to either acquit or convict her.

“We want to emphasize that Chief Justice Sereno has no intention to resign at all from her post as Chief Justice,” Lacanilao said, insisting that Sereno had not done anything wrong or illegal to warrant her removal from office.

He assured, though, that Sereno would step down immediately if she

will be found guilty by the Senate.

“There is no body or institution outside of the Senate that can force the Chief Justice to resign. Nobody can decide that other than the Senate,” Lacanilao said.

The 1987 Constitution explicitly states that an impeachable official can only be removed from office by impeachment, the sole power to impeach an official belongs to the House of Representatives, and the sole court for impeachment trials is the Senate.

Any attempt to remove the Chief Justice that does not fall under these parameters is “patently unconstitutional,” Lacanilao added.

Deinla said there appears to be a

“desperate and coordinated” effort to remove the Chief Justice through extraconstitutional means.

She cited what she called “unrelenting attacks and use of every legal trick imaginable,” such as the attempt to force Sereno to resign, the call for the Office of the Solicitor General to initiate a quo warranto petition against her, the filing of a complaint with the Ombudsman, and the harassment of court officials whose only fault was to speak the truth.

“These are just indications of desperate and coordinated attempts not only to remove the Chief Justice, but also to mock the rule of law,” Deinla said.

₧8.5-M skin-whitening products seized at Naia

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irport Customs authorities on Wednesday impounded some P8.65 million worth of glutathione skin-whitening products previously misdeclared as “personal effects.”

Customs District Collector Vincent Philip Maronilla said the

shipment of 48 cartons of the beauty products arrived in separate flights from Bangkok, Thailand, on February 13. Maronilla said the two shipments, weighing 927 kilograms and 1,120 kilograms, respectively, arrived, and he immediately issued an alert order against the cargo for

alleged misdeclaration.He also identified the consignee as James Malinao Halasan of Kamuning, Quezon City, while the Customs broker who facilitated the release of the cargo was identified as Isagani Cortez.

Although no arrests were made, Customs officials have sent a letter

summoning Halasan and Cortez to appear before the Customs bureau “to clarify matters.”

Maronilla said another of Halasan’s shipment was placed on hold by airport Customs authorities. The shipment was also declared personal effects, but was later discovered to be

beauty products.

Customs Commissioner Isidro S. Lapeña, who went to the Ninoy Aquino International Airport (Naia) to inspect the shipments, said that the consignee may have violated the Tariff and Customs Code of the Philippines. Recto Mercene

Terrorist tag on ISIS, Maute Group lauded Labor-recruitment expert Geslani confirms

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he inclusion of the Islamic State of Iraq and Syria (ISIS) and its local affiliate Maute Group in the list of terrorist organizations by the United States will make it harder for the two groups to carry out their terror activities in the country, especially in Mindanao, the Department of National Defense (DND) said on Wednesday.

“The inclusion of the Maute Group and ISIS-Philippines in the US list of foreign terrorist organizations is an affirmation of what Philippine authorities already know—that the Maute Group and the Dawlah-Islamiya are terrorist groups that need to be dealt with decisively using the full force of the law,” DND Spokesman Arsenio R. Andolong said.

“As such, they will be denied access to the US financial system and will face sanctions as may be deemed appropriate, making it more difficult for them to conduct their activities in the Philippines and abroad,” he added.

The US State Department has included the ISIS-Philippines and Maute Group among the seven Islamic State groups that it tagged as terrorist organization, thus, enlisting international collaboration in dealing with the groups. The US list confirmed the existence of ISIS members in the Philippines, other than their local counterparts who are members of the Maute Group.

Both groups carried out the five-monthlong siege of Marawi City in Lanao del Sur

that ravaged the Moro’s center of Islamic faith in the country.

Meanwhile, National Capital Region Police Office chief Director Oscar Albayalde on Wednesday said that the red-alert status imposed in Metro Manila since the bombing in Davao City remains still due to terrorism threats.

“We did not scale it down after the bombing in Davao because, of course, we always recognize that the threat of terrorism is always there,” Albayalde said.

“The threat of terrorism will no longer disappear. So what we take care of is Metro Manila, because this is the seat of the government. Anything [that] happens here will become controversial,” he stated.

Albayalde admitted that Metro Manila is always considered as a possible safe haven by terrorists because of the presence of “Muslim enclaves” in the capital which they usually used as lairs or hideouts in order “to cover up for themselves.”

“But the support and cooperation that we are getting from the leaders of our brother Muslims, especially in Quezon City, Maharlika and Quiapo area are also good,” he said.

Albayalde added the red-alert status in Metro Manila was not meant to scare the public, but a reminder for policemen in the capital to be always on their toes.

“We could not afford to relax here, it is not to scare the public, but it is for us to be always ready,” he said. Rene Acosta

rampant ‘sale’ of domestics in Saudi Arabia

By Recto Mercene @rectomercene

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labor-recruitment expert has confirmed the rampant “sale” of Filipino household service workers (HSW) in Saudi Arabia, with each domestic worker being sold and exchanged from one employer to the next like an ordinary commodity.

The sale mostly takes place in the city of Riyadh, where “sellers” take advantage of the 100-day probation period before maids of various nationalities are transferred to various employers by the sponsor, or a Middle East national who manages to get control of a worker’s working permit called iqama, according to recruitment consultant Manny Geslani.

“The maids have completely no control of where they are going to be sold or transferred by their sponsors,” he said.

According to prevailing laws, the transfer of a Filipina HSWs should be with the consent of the Philippine Overseas Labor Office (Polo).

Geslani said the Polo officer should be able to monitor the HWS’s whereabouts, which is also a responsibility of the foreign recruitment agency (FRA).

“It is the FRA that deployed the HSW to the original sponsor. The transfer of an HSW to a different employer without the approval of the Polo officer is considered a violation of

the Philippine-Saudi Special labor agreement and also a violation of Philippine Overseas Employment Administration [POEA] regulations,” he added.

This was the case of HSW Hydee Caro, who arrived in Manila on April 18, 2017, from Buraydah, Saudi Arabia, purchasing her own ticket to go back to the Philippines.

This was after she worked for 11 months in Riyadh and sold thrice to different households.

“There was an unforgettable incident when I was nearly gang raped by a group of nationals there,” Caro recalled her incident before Geslani, adding that the horror of the incident was still vivid in her mind.

Caro has filed a complaint with the POEA against her local recruitment agency, whom she identified as First Personnel Services Inc., for failing to monitor her situation and taking steps to ensure her safety in her job site in Buraydah, Saudi Arabia.

The POEA has scheduled conciliatory meetings with Caro and her agency to determine the nature of the FRA’s violation, and the amount of compensation due to her, as stipulated in her two-year contract.

Caro said she applied with First Personnel Services Inc. in Ermita last year and was deployed immediately to Al-Robaegh in Buraydah, Saudi Arabia.

The employer reportedly failed to give

her food and was subsisting on frozen peas.

When she complained, her employer brought her to the police station and accused her of stealing valuables.

After spending four days in jail at the police station, Caro was released to a certain Abdulaziz who reportedly paid her previous employer 22,000 riyals.

After two months, however, she said she was sold to another Saudi household, a certain Naif, who made numerous sexual advances to her.

Caro strongly resisted, even threating the man with a knife. However, when she could no longer stand the numerous sexual advances, she reported the incident to Naif’s wife.

But, instead of getting mad at her husband, Caro said the wife called on her brothers to take her out into the desert. But Caro locked the bathroom door until the Saudi police arrived to take her into custody.

One of policemen punched Caro’s chest and dragged her by the arm to a police car.

She spent another four days in jail while her records were checked, which revealed that Abdulaziz was still her legal employer.

After staying for a week at Abdulaziz’s house, Caro was again turned over to another household last November where she worked for three months. This time the household was satisfied with her performance and allowed her to return home.

Economy

A4 Thursday, March 1, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Budget-reform bill now up for House plenary approval

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

he House Committee on Appropriations has recently endorsed for plenary approval a measure seeking to improve the budget process by enforcing greater accountability, strengthening the power of the purse of Congress, and increasing budget transparency and participation.

Committee Chairman Rep. Karlo Alexei B. Nograles of the First District of Davao City, principal author of the bill, said the consolidated bill, which substituted 13 measures, will strengthen accountability and integrity in the use of public resources by ensuring transparency, fiscal responsibility, results-orientation, efficiency and effectiveness.

“The annual budget is the most important legislation that should be timely enacted by the government.

It is through this tool that the government delivers basic services and provides public goods to the people.

In order to fortify the budget process, there is a need to introduce budget reforms that will enforce greater accountability in public financial management,” he said.

“The passage of this bill will ultimately improve the ability of government to deliver direct, immediate and substantial services to the people, especially the poor, as well as strengthen government’s accountability to the people for its use of public funds. It will, likewise, establish a comprehensive legal framework on the allocation, use and accounting of public funds,” Nograles added.

Lofty perch

Linemen from the National Grid Corp. of the Philippines promptly conduct a maintenance check on power lines to ensure the reliability of electricity supply in the Luzon grid. NONIE REYES

Despite the best intention of the measure, Minority Leader Rep. Danilo E. Suarez of the Third District of Quezon said a reorganization of agencies is needed to address the issue of underperforming government departments.

“The 2019 deliberations of national budget will be ‘stormy.’ [For] the part of the minority, we will move for a reorganization of [underperforming] government…[agencies].

We will [also] call the attention of …Cabinet secretaries who[se performance is below] par,” Suarez said.

With the ratification of the budgetreform bill, Budget Secretary Benjamin E. Diokno said he is expecting

further improvement in government spending, as the government is now ready to transition to annual cashbased budgeting from multiyear obligation budgeting, which, he said, is one of the main features of the bill.

“Moving forward, we expect further improvement in government spending as the bureaucracy shifts to annual cash-based budgeting starting fiscal year 2019,” he said.

Diokno added the annual cashbased budgeting, as opposed to multiyear obligations-based budgeting, limits incurring obligations and disbursing payments for goods, delivered and services rendered, inspected and accepted within the fiscal year.

The bill has been listed as one of the priority measures of the Legislative-Executive Development Advisory Council. The provisions of the bill shall apply to the management of revenue, expenditure, financing arrangements and assets and liabilities of national government agencies, government-owned and -controlled corporations, and local government units. The bill mandates Congress to monitor and review government performance against the requirements of appropriations and related laws, and hold government agencies accountable for their financial and nonfinancial performance.

It also empowers the President of the Philippine to approve the following: statement of fiscal policy; medium-term fiscal strategy for submission to Congress; and changes in the functional, operational and organizational structure within and among the departments of Budget and Management (DBM), of Finance and the National Economic and Development Authority, as may be necessary.

It mandates the DBM not to approve any request for release of allotments for items of appropriation covered in the negative list or modification in the allotment nor recommend the use of savings by the President until such time the noncompliant agency has submitted the reports required under the Act. The bill allows the Commission on Audit (COA) to suspend and/or disallow any expenditure charged against augmentation using savings and any expenditure due to modification in the allotment which were made within the period succeeding the reporting period when the agency failed to comply with the reporting requirements under the act.

Likewise, the measure holds accountable public officials who fail to report on the income and funds retained at the end of a reporting period. It seeks to void all disbursements against such income or funds in subsequent reporting period when the agency failed to comply with the reporting requirements under the act. The Congress, through its appropriate oversight committee, may motu proprio or upon the request of COA or DBM compel the head of the noncompliant agency, under pain of contempt, to produce the required report or reports and to explain failure of submission of such report or reports.

www.businessmirror.com.ph

PCC okays Joyson’s buy of Takata assets

By Elijah Felice E. Rosales @alyasjah

T

he countr y’s a nt itr ust regulator has given its nod to China-based Ningbo Joyson Electronic Corp.’s proposed acquisition of assets of a Japanese airbag maker that went bankrupt last year.

In a two-page decision, the Philippine Competition Commission (PCC) adopted a resolution “that it will take no further action with respect to the transaction” of Joyson Electronics’s purchase of assets of Takata. With the PCC’s approval, nearly all assets of Takata will be wholly owned by Joyson Electronics.

In its ruling, the PCC deemed the transaction competitive and will maintain competition in the market of automotive-safety systems.

“In view of the recommendation from the Mergers and Acquisitions Office, and on the basis of information obtained from the parties and other sources to date, the proposed acquisition by Ningbo Joyson Electronic Corp. of assets of Takata Corp. is not likely to result in a substantial lessening of competition in the relevant market since there are no product overlaps between the

parties in the domestic market,” the decision read.

The China-based firm reached an agreement with Takata Corp. last year in a move to save the assets of the latter after it filed for bankruptcy in the United States and Japan.

Key Safety Systems Holdings Inc.—a subsidiary of Joyson Electronics and which closed the deal with Takata Corp.—vowed to retain almost all of the Japanese firm’s workers and committed to continue the operations of all its manufacturing facilities.

Takata Corp. has a subsidiary in the country operating in Biñan, Laguna, that manufactures fabric and cushion and seatbelt webbing for export to other affiliates under Takata Corp.

The firm that was popular for its airbag inflator was involved in the largest product recall in the US automotive industry.

A number of the firm’s airbag inflators have been linked to at least 17 deaths and more than 180 injuries worldwide. As time passes by, the ammonium nitrate compound inside the airbags can become volatile, and with prolonged exposure to heat, may cause the safety device to explode.

Four EV charging stations for PUVs set for Q1 opening

By Lenie Lectura @llectura

T

he ABB electronics group has announced that four electric-vehicle (EV)charging stations for modern public-utility vehicles (PUVs) will be operational within the first quarter of the year.

The first three charging stations will be deployed in Shell gasoline stations—one on C. Raymundo Avenue, Pasig City; one at 5 E Rodriguez Avenue, Bagumbayan Libis, Quezon City; (Shell C5 Eastwood Northbound) and another at the SM Mall of Asia, Seaside Boulevard, Pasay City.

The fourth location is still being undergoing discussions. The entire initiative is expected to save over 350 million liters of oil per year, or 3 percent of total imported crude.

ABB has partnered with local e-mobility start-up firm QEV Philippines, the joint venture between Filipino and Spanish business partners Endika Aboitiz and Enrique Banuelos.

As QEV Philippines’s technology partner, ABB will support the

venture’s mission to provide greener mobility solutions with its fastcharging technology for all current and next-generation vehicles.

Both companies see this partnership as an important step in improving air quality and reducing carbon emissions on Manila’s congested roads.

“Together with ABB, QEV is in full support of the Philippine government’s PUV modernization program. Our vision to convert some 20,000 jeepneys into cleaner EVs will help operators reduce energy and maintenance costs,” QEV Philippines General Manager Audrey Penaranda said. ABB plans to put up 200 EV charging stations over the next three years in support of the modernization program for PUVs in the Philippines.

“ABB is delighted to be involved in bringing game-changing technologies to the transportation landscape of the Philippines. This is an important step in moving away from fossil fuel-dependent vehicles to cleaner, more sustainable options,” ABB Global Business for Electric Vehicle Charging Head Frank Mühlon said.

Vapers caution DOH: Stop sowing fear on e-cigarettes

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hilippine vapers welcomed the release of a new US expert report which concluded that “although ecigarettes are not without risk, compared to combustible tobacco cigarettes, they contain fewer toxicants; can deliver nicotine in a similar manner and might be useful as a cessation aid in smokers who use e-cigarettes exclusively.”

The expert review from the National Academies of Sciences, Engineering, and Medicine (Nasem) stated that, “ecigarettes appear to pose less risk to an individual than combustible tobacco cigarettes.” It also found that more frequent use of e-cigarettes increases the likelihood of smoking cessation.

“Scientific findings from independent experts continue to emerge, all affirming that e-cigarettes are a less harmful alternative to tobacco and a viable smoking cessation tool,” said Tom Pinlac, president of The Vapers Philippines.

“The Department of Health [DOH] should follow the lead of the UK and US health agencies, and take a serious and objective look at the emerging evidence and expert consensus on e-cigarettes. It should be wary of critics and naysayers who, lacking any scientific data to back

up their irresponsible statements, resort to fear-mongering and black propaganda,” Pinlac added.

He also cited recently released US Food and Drug Administration (FDA) 2018 Strategic Policy Roadmap, which expressed its commitment to “take a fresh look” at electronic nicotine delivery systems which include e-cigarettes, “that can deliver satisfying levels of nicotine to adults who want access to it without burning tobacco.”

“We have always looked at the US for guidance when it comes to health positions and the latest Nasem report on e-cigarettes being a cessation aid in smokers is a welcome development,” said Joey Dulay, president of Philippine E-Cigarettes Industry Association.

“This latest independent expert report supports previous studies that show how e-cigarettes, when used as a smoking cessation tool, can reduce smoking-related harms. Its findings are also aligned with the US FDA’s nicotine strategy, a key element of which involves adult smokers switching to lower-risk products,” said Edward Gatchalian, owner of an e-liquid manufacturing company HS Liquids Inc.

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Thursday, March 1, 2018

A5

Infra projects seen attracting sugarcane workers

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By Jasper Emmanuel Y. Arcalas

@jearcalas

he Sugar Regulatory Administration (SRA) on Wednesday said sugarcane workers could take up construction jobs as the government steps up spending for big-ticket infrastructure projects under the “Build, Build, Build” program.

“Some planters are having a hard time harvesting because the cane cutters in almost all milling districts are affected by the Build, Build, Build,” SRA Administrator Hermenegildo Serafica told reporters in an interview.

“Cane cutters will most likely take on construction jobs under the Build, Build, Build program because of higher pay. That is why [the SRA] is gearing toward farm mechanization,” Serafica added.

He based his pronouncements

Australia, New Zealand decision on Golden Rice sets tone for GM food approval

I

n December 2017, the Food Standards Australia New Zealand (FSANZ) issued a directive allowing the commercial sale of food derived from genetically modified (GM) rice line known as GR2E. FSANZ said food derived from GR2E is considered to be safe for human consumption.

It also requires manufacturers to label their products as “genetically modified,” in line with Australia and New Zealand’s guidelines on food labeling and to give consumers an informed choice.

So how does that a decision made in Canberra and Wellington affects us?

It’s because GR2E—a rice variety that was genetically modified to produce beta-carotene in the endosperm of the rice grain—is the same variety that we know as “Golden Rice.” The field testing of this variety has garnered so much controversy that I think most people have forgotten that it was developed to solve a public health problem and has instead focused on the fact that it’s genetically modified.

GM food is such a huge baggage that I think most consumers believe that it’s not safe. This, even if GM corn is already widely cultivated in the Philippines, although as far as I know this GM corn is used primarily consumed as an animal feed.

Unlike GM corn, Golden Rice is meant for human consumption. It has been genetically modified to produce the vitamin A precursor beta-carotene, which gives the rice its golden color.

Golden Rice is meant to be a fortified food, especially in a developing country like the Philippines where rice is a staple food and vitamin A deficiency has killed thousands of children under the age of 5.

But it’s not Golden Rice’s nutritional value that attracted public interest but rather the stiff opposition against it. In 2013 the media reported about the hundreds of farmers and environmentalists who stormed a field site in Camarines Norte to uproot the Golden Rice being tested by the International Rice Research Institute (IRRI) and the Department of Agriculture. The activists said they attacked the field site because Golden Rice threatens human health, local biodiversity and farmers’ livelihoods.

Prime Sarmiento

prime commodities Last year a group of Philippine legislators have filed a bill directing the House of Representatives’s Committee on Agriculture and Food to conduct an inquiry to determine Golden Rice’s impact on health, environment and farmers’ rights.

The IRRI and the Philippine Rice Research Institute (PhilRice) have also applied to the Bureau of Plant Industr y for a biosafety permit for the direct use in food, feed or for processing of Golden Rice.

The application was submitted in February 2017, but a year later, the IRRI and PhilRice are still waiting for BPI’s approval. That it’s taking local agricultural officials quite a while can be frustrating to those who advocate for Golden Rice’s cultivation.

This is why FSANZ’s straightforward approval process is expected to serve as a role model not only to local policy-makers, but also to health and agriculture officials in other countries, such as the United States and Canada where the IRRI also has a pending application for Golden Rice.

According to Dr. Benigno Peczon, president of t he Coa l it ion for Agricultural Modernization of the Philippines, FSANZ “made a landmark decision, based on scientific data provided by IRRI.” Peczon said FSANZ’s approval process, which ensures that the product meets public health and safety concerns, “provides a model for decision-making in all countries which see an advantage in using GR2E rice.”

“This would be of interest in places where the probability of blindness for lack of vitamin A is significant, particularly in places which perceive the advantage in preventive measures,” he told the BusinessMirror.

Indeed, FSANZ’s decision that was issued last December was accompanied

by a comprehensive report that explains the reasons behind its decision, noted on the issues raised by other agencies, non-governmental organizations and individuals, and the process it followed to determine the safety of food derived from Golden Rice. FSANZ also conducted a nutrition-risk assessment—including a nutrition hazard assessment that considered potential adverse effects associated with beta-carotene intake; and a dietary intake assessment for beta-carotene that assumes all rice (including brown and milled rice, rice bran and rice bran oil that are consumed as is or in processed foods and mixed dishes) consumed in Australia and New Zealand are replaced with GR2E products.

But not everyone is convinced with FSANZ’s decision. The Munichbased Institute for Independent Impact Assessment of Biotechnology (Testbiotech), for one, questioned why FSANZ’s didn’t conduct a toxicology assessment.

“Accord ing to the IR R I, the consumption of this rice is especially beneficial to young children, as well as lactating and pregnant women.

Nonetheless, it is self-evident that food products with no history of safe use must be subjected to the highest standards of risk assessment before the most vulnerable groups of the population are exposed to it.

However, no toxicological studies were performed with the rice. Many more in-depth toxicological studies would be necessary before any conclusion can be drawn on food safety,” Testbiotech said.

So the FSANZ’s decision might be final, but still warrants further discussion. I’m on the fence when it comes to GM food and, as far as I’m concerned, the jury is still out as to whether GM crops contribute to sustainable farming and dining.

But this debate is something I welcome. In fact, while I have no formal background on environmental/health sciences, I support the current debate on Golden Rice as the arguments are based on science and not on emotions or hysteria. It’s verifiable data that will in the end decide on food and environmental safety and not pandering to populist but misguided views.

‘Boring’ gold overshadowed by new-age commodity producers

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old producers are doing everything they’re supposed to be doing—squeezing more profit out of mines, penny-pinching on projects and resisting the kind of big deals that got them into trouble when prices fell.

While that’s satisfying their large institutional shareholders, it’s not enough to lure more general investors drawn to flashier electric-vehicle commodities, as well as to stocks riding the marijuana and cryptocurrency booms.

Large producers, such as Barrick Gold Corp. and Goldcorp Inc., surged in 2016 as they emerged from a multiyear downturn. Since then, they’ve largely decoupled from bullion, which has continued to rise, and are trading at the cheapest versus the Dow Jones Industrial Average in more than a year. Investors seeking gold exposure are preferring exchange-traded funds, all at a time when money is pouring into lithium and cobalt companies that have plugged into the rechargeable-battery rush.

That’s the message from the BMO metals and mining conference, where 1,400 bankers, miners and investors have gathered over four days of meetings hoping to find opportunities.

“Right now, gold has been so boring and asleep that nobody cares,” David Harquail, CEO of precious-metal royalty and streaming company FrancoNevada Corp. and chairman of the World Gold Council, said in an inter-

on the SRA’s observation that there was a delay in the harvest and planting of sugarcane across the

view from the conference in Florida.

“It’s the first time, even my schedule isn’t filled.”

The odd mid-sized deal aside, participants say interest in gold mergers and acquisitions remains lackluster, with large players still not ready to do big deals, even as their reserve life shrinks, and capital still tight for small explorers and developers.

Asked why gold companies aren’t capturing more of gold’s move higher, Harquail referred to the lack of commodity-specific funds in the space. “There’s really no preciousmetal funds of size left because the performance has been so poor,” he said. “The only place that has real

money is the generalist funds.”

Cannabis and cryptos

The dearth of M&A is indicative of lack of growth presented by gold companies, said Pierre Lassonde, the chairman of Franco-Nevada. He thinks this will persist for another 12 to 18 months, at which point investors will demand growth.

But for now, the gold price has “gone nowhere” over the last five years, and there are plenty of other flashier commodities attracting generalist interest.

“While you’ve had the cryptocurrencies, you’ve had cannabis, you’ve had all kinds of industry exploding and the gold price flat, it’s like watching paint dry. Why would anyone get excited?” Bloomberg News

Mindanao, aside from the contraction in harvest area, heavy rains continue to affect farms there,” he added.

Serafica said SRA officials will make a “special trip” to Mindanao to determine the problems confronting sugarcane farmers.

The latest data from the SRA showed that, as of February 11, the country’s total raw sugar production has reached 1.037 MMT, 5.17 percent lower than the 1.093 MMT recorded in the same period last year.

LGUs, DA should partner to better steer, row extension service–Dar A s only one of every four farmers benefit from the country’s agricultural programs, local government units (LGUs) need to partner with the Department of Agriculture (DA) and other concerned agencies to deliver a more efficient farm extension service.

Since the devolution of agriculture extension services to LGUs in 1991, under Republic Act 7160, or the Local Government Act, it has not contributed much in improving farm productivity and farmers’ incomes, and much less reduced rural poverty, former Agriculture Secretary William D. Dar said.

“While there are a few LGUs that have successfully trained their agriculture personnel, and partnered with the DA and state universities and colleges (SUCs), millions of farmers and fishers still employ traditional farming and fishing practices reflective of poor LGU agricultural extension service,” said Dar, who currently serves as founding president of InangLupa Movement Inc., an agri-based volunteer organization of agriculture experts, advocates and hobbyists.

“LGUs should forge a strong partnership with the DA and SUCs in their localities and adopt the ‘steering and rowing’ approach, with the DA doing the steering and the LGUs, SUCs and other partneragencies doing the rowing,” said Dar, who served for an unprecedented 15-year term as director general of the India-based International Crops Research Institute for the Semi-Arid Tropics (Icrisat), from 1999 to 2014.

“The DA will serve as the ‘steerer,’ as it can see the bigger picture, has the expertise and R&D [research and development] arm, the knowledge of the world markets and, more important, has the ‘purse,’” Dar said.

“Forging partnerships via the ‘steering and rowing’ approach is key to uplifting millions of small farmers and fisherfolk from poverty. This was proven by Icrisat, during my stewardship,” added Dar, who also serves one of the mentors under the Kapatid Agri Mentor Me Program (KAMMP), where young and old farmers are mentored by successful agribusiness entrepreneurs.

KAMMP is a collaboration between Go Negosyo founder Joey Concepcion, presidential adviser for entrepreneurship, and the DA under Secretary Emannuel F. Piñol.

Reach more farmers Bloomberg

country. “Definitely, this is going to be a trend.”

The SRA has already slashed its output projection in the current crop year ending August 31 to 2.27 million metric tons from 2.38 MMT. “We did some adjustments already. Because there was so much rain, and this has affected sugarcane, harvesting and the production of mills slowed down,” Serafica said.

“I still hope and pray our production could still recover. But, for

Citing a 2016 General Appropriations Act report, Dar said only the first 1.5 million beneficiaries were adequately served by the government’s agricultural programs, short of the targeted beneficiaries at 5.5 million.

“With a strong partnership with [the] DA, SUCs, NGO [non-governmental organizations] and the private sector, the LGUs will be able to retool their agricultural officers and technicians and, subsequently, reach and serve 4 million more farmers,” Dar said.

He added the DA and SUCs can assist the LGUs in implementing national agricultural programs, including R&D projects, in their respective communities.

Currently, Dar said the LGU

extension system does not involve small farmers in the R&D and technology-commercialization process, and, ironically, researchers and scientists do not spend enough time in the field and cooperate with extension workers.

Effect of devolution

Ten years after the devolution, Dr. Cielo Magno, an assistant professor at the University of the Philippines School of Economics, conducted a study in 2001, saying “the devolution of agriculture extension services to LGUs from 1991 turned out largely to be a mess.”

In her paper, “The Devolution of Agricultural and Health Services,” published in 2001, Magno added that the devolution resulted in the displacement of farm-extension personnel previously employed by the DA, and a number of them were assigned to perform non agri-related tasks, like clerks, traffic officers, environmental officers, market administrators and other unrelated positions.

Others even suffered harassment and indignities as they were on good terms with local chief executives, she added.

Magno said that, although some LGUs were able to source local and foreign assistance to employ efficient programs of delivering services, the majority of LGUs remain dependent on the internal revenue allotment and lack initiative to source and mobilize their own funds needed to address their responsibilities.

Create ‘agripreneurs’

“We have to move on and should not blame the LGUs. Instead, we should build strong, mutual and lasting partnerships, aimed at transform-

ing small farmers, rural women and the youth into ‘agripreneurs,’” Dar noted.

He said the DA—through its regional field offices, bureaus and line and attached agencies—and the SUCs—should help LGUs train and retool agriculture and fishery officers and technicians nationwide.

“This can be formalized through a memorandum of agreement among the DA, Department of the Interior and Local Government and the Commission on Higher Education,” Dar suggested.

Initially, he said the DA can tap experts from its bureaus and agencies to form a core of personnel to help LGUs conceptualize and implement agricultural programs. They can be assigned at the provincial level and the provincial agriculture office. Currently, the DA maintains a regional field office and a coordinating office at the provincial level, but none at the municipal level.

Dar suggested the DA and LGUs may adopt the IMOD framework to set goals in delivering agricultural extension services to small farmers and fishers.

Imod stands for Inclusive Market-Oriented Development that builds on four principles— markets motivate growth; innovation accelerates growth; inclusiveness ensures that the poor benefit; and resiliency sustains growth. Imod enables small farmers and fishers to benefit from the fruits of their labor.

“Finally, it is equally important in empowering and capacitating LGUs to arm them with appropriate policies and programs, enabling them to accelerate the transfer of technology, establish enterprises, create more wealth, and reduce poverty,” Dar said.

A6

TheBroa

Business

Thursday, March 1, 2018

RUGGED ANTIQU RUSH FOR THE A

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By Roger Pe

HEN the word Antique is mentioned, what do you think comes to people’s minds? Most likely, one of these will show on the list: Evelio Javier, Arturo Pacificador, a far-flung province languishing in obscurity, a place some people never even bother to visit.

EXTREME sports, rugged adventure, enjoy them all in Antique.

FROM north to south, Antique’s west coast is all blue. Nogas island is in the background.

People unfamiliar with the place would often associate the province with the definition of “antique” meaning “ancient” or “old-fashioned”. But for those who value ancient things, the word would mean precious, valuable and priceless.

You’ll probably even hear worse than that. But dig deeper and go beyond your outdated impression to find a fabulous destination.

The Datus

IF you are still at a loss, you may want to ask why the 10 Bornean datus (rulers) landed in Antique.

Datus Puti, Sumakwel, Dumangsil, Bangkaya, Paliburong and the rest of them must have been so enchanted they stayed awhile and eventually settled, right in the heart of the community, which would eventually become the capital town.

According to local folks, the Malay datus met the Ati chieftain Datu Marikudo and his wife Maniwantiwan and offered the chieftain a salakot (wide-brimmed hat believed to be made of pure gold), which included a golden necklace, earrings, bracelets and trinkets they wore when they fled Borneo.

Among other gifts were pearls and fine clothes as a display of respect and to buy the land from them to live. Datu Marikudo responded to the datus’ generosity by giving the Malays the lowlands.

The Ati tribes moved to the mountains as they are sacred to them.

The island of Panay was then divided into three sakup: Hantik, Aklan and Irong-Irong. Aklan became the present-day Aklan and Capiz, Irong-Irong became Iloilo, and Hantik (also called Hamtik or Hamtic) became Antique. Hantik was named for the large black ants found on the island. Datu Sumakwel founded the town of Malandog, considered to be the first Malay settlement in the country.

Spanish rulers

DURING the Spanish colonial period, the coastal province was vul-

nerable to attacks by Moro raiders.

Under the direction of the Spanish friars, a series of watchtowers, like the Old Watchtower in Libertad and Estaca Hill in Bugasong, was built to guard Antique.

Fast forward, the province of Antique is a paradise province, teeming with fish from the Sulu Sea, bountiful with fruits and vegetables from its rich fertile lands. Here, livestock and poultry grow abundantly.

It is endowed by nature with gold, copper, chromite, limestone deposits and gemstones. Recently, an indication of oil deposits has been found in one of its islands. Its waterfalls, rivers, caves, white sandy beaches and other natural attractions are just as spectacular as those in the most hyped of destinations in the Philippines.

But why is Antique still the most overlooked of all Panay island provinces?

For one, Antique is isolated from the rest because of its rugged mountain ranges. The geographical circumstance that also created a language and culture uniquely its own added to its distance from the mainstream, more pronounced neighbors.

Emerging Antique

SITUATED on the western part of the island, the nearest Antique town to bustling Iloilo City is approximately 90 km away. A trip to the capital town would take at least two hours by bus or a rented van.

Oftentimes called “the land where mountains meet the sea”, the description continues to pose a challenging reality to its inhabitants.

The province has a total land area of 252,200 hectares, about 73 percent of which is upland and 27 percent lowland. This explains why one has to pass through rugged terrain to reach it. The climate favors the growth of palay, making the province a major rice producer in the region.

Through the years, the province has not figured prominently on the tourism radar. It has always been Boracay, Iloilo, Bacolod and

AFTER river rafting and kayaking, take a dip into a relaxing hot bath at Calawag Mountain Resort.

the province of Negros that get top-of-mind awareness and larger chunk of visitors.

Seemingly, Antique has been relegated to the background, like a younger sibling, a bit coy and scared to be introduced to the public. But the world actually is waiting, wanting to embrace a gem that is slowly coming out of its cocoon and is emerging.

Ruggedly beautiful

MY first time in Antique was in the late ’70s.

I was a freshman copywriter in advertising, working for a multinational advertising agency. We had to attend a regional raffle draw for a detergent brand promotion.

To get to the capital town, we boarded a plane to Bacolod, took a ferry to Iloilo (to coordinate with local radio stations) and then traveled many kilometers to a place I have long forgotten.

I still remember Antique’s rugged terrain, vast rice fields, ravines and its signature dish that I still like today called “KBL”. We did not stay in a hotel—there was none— but in a pension house fronting a school where we enjoyed watching a three-man volleyball game.

Antique has come a long way.

Today, the capital town is bustling with new businesses. Elsewhere in the province sprout infrastructure projects and businesses: resorts, hotels, bridges, concrete farm-to-market roads, renewable energy sources that aim to better the quality of life of Antiqueños.

All points

WHEN an international river kayaking competition was held in Antique in 1997, Antiqueños marched from all points of the province and gathered in Tigbiao town to fully support it. The event was nothing but festive.

LAUNCH OF 2018 Tibiao River Festival with Antique Gov. Rhodora Cadiao, Makati Representative and 2019 SEA Games Chief of Mission Monsour del Rosario, Tibiao Mayor Gil Bandoja and Philippine Sports Commission Chief of Staff Dino Badilla.

Joy was written on the faces of everyone. People from all walks of life, young and old, from the government and private sectors, all headed north, up in the mountains where the sparkling waters of Tigbiao River were to delight them.

The atmosphere was reminiscent of the days when the province opened its hearts and homes to the 10 datus eons ago.

And like the datus they adopted as sons, Antiqueños are brave warriors. They are also people known to always show solidarity for the common good, a trait that dates back long before the Spaniards came to the Philippines.

More than that, it is the hospitality that speaks well of them, gracious hosts, giving it all, even way beyond expectations.

Big bang

THE big event that opened with a big bang and ended with the same magnitude in 1997 created bigger excitement ahead, a vehicle to spur more tourism activities in the dreary town.

But to the words of Flord Calawag, director of the 2018 Tigbiao

River Festival, the next few years were “kaluluoy” (pitiful). The event was never sustained and almost died with nary a whimper in a matter of two years.

Aggravated by lack of planning, tourism was in limbo, a frustrating fact when numerous attractions abound and are just waiting to be discovered, developed and announced to the world.

All of that seems water under the bridge now. Antiqueños’ sad sentiments are beginning to recede from their collective consciousness. Today, one can feel the excitement once again. The province, which used to average only 36,000 visitors annually, registered 1.3 million domestic visitors last year, leapfrogging from the bottom to No. 2 ranking in the entire Western Visayas region.

No less than the energetic Gov. Rhodora Cadiao confirmed it with pride when she graced the opening of this year’s River Festival, which featured extreme river-tub rafting competition participated in by tourists and trained athletes from all over the Philippines.

ANTIQUE has the clearest river in the Philippines, the Bug

Tibiao River

DUBBED as the eco-adventure capital of Panay Island, the town of Tibiao in Antique is a haven for thrill seekers and nature lovers.

The town’s most popular attraction is Tibiao River, gentle at some point but menacing as it cascades among rocks and boulders.

The river snakes around the mountains of Antique and considered one of the best whitewater rivers in the country and a favorite venue for local and international rafters.

Located in Barangay Tuno and just a 15-minute ride from the highway of Barangay Importante, the river’s mouth sits on the slopes of Mount Madja-as, the highest point on Panay Island. Its waters

aderLook

sMirror

www.businessmirror.com.ph | Thursday, March 1, 2018

UE: ADRENALINE ADVENTURER treme River Tubing Competition opened with four event categories: trained tubers, male tourists, female tourists and LGBT tourists.

Airport improvement

WHEN the upgraded San Jose airport is finished, visitors to Antique won’t have to pass by Iloilo and Caticlan airports to reach the town.

The renovation of the Evelio Javier Airport is undergoing, and resumption of commercial flights between Manila and Antique is expected within two years.

The project involves lengthening of the runway to accommodate bigger planes, expansion of passenger terminal buildings and installation of runway lights for evening flights. Commercial flights to Antique began in April 2003 but stopped on June 30, 2006. The airport temporarily opened when President Rodrigo Duterte opened the annual Palarong Pambansa on April 23, 2017.

Marketable destination

WESTERN Visayas Tourism Regional Director Helen Catalbas said Antique is young when it comes to being a preferred destination.

“Antique is for rugged travelers who want to experience extreme adventure like what Tibiao River offers,” Catalbas said. “It has rugged terrain fit for those who seek something different than the usual sun, sea and surf.”

She told the BusinessMirror Antique is a promising destination because it has successfully hosted the Palarong Pambansa, the National State Colleges and Universities Athletic Association meets and other national and international kayaking competitions.

Because of these successes, “we are positioning the province as a sports tourism destination.”

Catalbas added that in order to market well, people must experience their own backyard well, know its locale well, from the municipal down to barangay level.

“It must be marketable to its own residents, so to speak.”

According to Catalbas, infrastructure is the biggest challenge Antique faces today.

Other challenges include the Boracay sewage problem and planning congestion, as well as one city being referred to as the “most shabulized.” “[But] We do not really worry about it. If we work hard, things will change and we will keep the industry afloat [despite the] name-calling,” she said. “The attractions of this region are not the politicians.”

Not stopping

gang River.

then roar down magnificent hills and valleys, with a length of about 23 kilometers of navigable water.

The river has crystal-clear waters that make rafting and kayaking hard to resist.

Thus says Calawag, who, with his brother, owns and operates a mountain resort.

The eponymous resort offers visitors many recreational outdoor activities.

For those who prefer kayaking, the first course is Grade 1 or “basic kayaking”, which introduces first timers to paddling a kayak. Grade 2 is for those who want to experience higher levels of skills while navigating rapids and around boulders.

Grades 3 and 4 are for profession-

als who want to navigate against strong currents, big boulders and learn difficult maneuvers.

Calawag, once a provincial tourism officer, said the river activities were designed to revive the festive atmosphere brought by the International River Kayaking Cup in 1997.

2018 Festival

CALAWAG’S resorts and others like the Blue Wave Travelers’ Inn, Kayak Inn and La Escapo Lodge are working in partnership with the Department of Tourism, the Department of Environment Natural Resources, the Provincial Government of Antique, the Local Government Unit of Tibiao and University of Antique Tario-Lim Memorial Campus.

These institutions joined hands to make the festival generate word-of-mouth awareness and create buzz nationwide.

According to Calawag, this year’s festival was aimed at training people in Barangay Tuno on water safety and rescue operations.

There’s also training on extreme river-tubing techniques, a showcase of the culinary, natural, cultural and historical heritage of Tibiao, as well as the promotion of the town for its huge tourism potentials.

The First Karay-a Food Cooking Challenge (open to all staff of resorts and restaurants in Tibiao) and tree-planting at the river bank of Tibiao were also held.

The First Tibiao National Ex-

CATALBAS, however, emphasized the government should not market destinations that are not ready.

“We do not want disappointed visitors,” she said. “We should do our own product development first, and that refers to accessibility and accommodation.”

Nevertheless, Catalbas is optimistic that Western Visayas would reach its tourist arrival target of 6.1 million this year despite the challenges the region is facing.

She said it is achievable as individual provinces are not stopping their own promotion efforts.

Catalbas noted these goals could also be achieved as Cadiao’s program is much aligned with that of the Department of Tourism’s implementation and comprehensive plan.

The province is starting on the right foot, according to her.

She describes the governor as “the only rose among the thorns: very unlike some governors who do their own way because of their own interests.”

HOW TO GET TO ANTIQUE

• Accessible from north by Roll-On, Roll-Off (RORO) from Manila via Caticlan.

• From Kalibo, Aklan, buses ply the route to Pandan and San Jose de Buenavista.

• Buses and vans to and from Iloilo take two main roads: the mountain and the coastal road networks.

• There are two major seaports in the province, the Lipata seaport in Culasi and San Jose.

• Tricycles are numerous in all towns of Antique, while buses and jeepneys provide service for inter-town travel.

KAYAKING AND RAFTING ITCHING to test the waters? Here’s a little background to know more about the sports: • Rafting is a recreational outdoor activity using an inflatable raft to navigate a river or another body of water. This is often done on whitewater or different degrees of rough water and, generally, represents a new and challenging fix for participants.

• Kayaking is an activity using a low-to-thewater canoe in which the paddler sits facing forward, legs in front, using a small boat called a kayak and a double-bladed oar.

“[And] as chairman of Western Visayas Regional Development Council, I could say that she has a better grasp of the picture,” she added.

Catalbas said the concepts of “farm and faith” have significant roles in making tourism in general grow big in Western Visayas.

“Agriculture tourism, for instance, does not mean flowers and vegetables alone,” she said. “It means feeding tourists with our own produce, food grown and harvested locally, not imported from abroad or other regions.”

As has been written in many articles and blogs, Antique province is quite special because of its natural beauty and diversity.

Wonder of Visayas

ANTIQUE is not Iloilo. Antique is not Boracay. Nor is it a combination of what Western Visayas has to offer.

Antique is Antique and it is unique.

One reason Antique should be on your bucket list this summer is the Binirayan Festival, which has the permanent theme: “Retracing Roots, Celebrating Culture and Greatness”.

Binirayan is a 29-day festival when all towns in the province compete in the capital to commemorate the arrival of the 10 Bornean datus.

Another reason to go to Antique is the Mararison Sandbar, in Culasi.

If you hate crowded beaches, Mararison is the reason for you to come to Antique. Here you can experience a peaceful island life and be amazed by an abundance of pitcher plant gardens in the town, easily accessible, either from Iloilo or Boracay.

One of the Philippines’ most beautiful sandbars, a must-visit spot in Antique, is Seco Island, Tibiao.

Start your trip at break of dawn.

Out in the sea, you might be able to spot dolphins that frequently follow boats headed to this stunningly beautiful beach paradise.

There are no sophisticated resorts in this remote sandbar, but you can look forward to an expansive white-sand beach and turquoise waters.

More sites

ANOTHER reason to go to Antique is the Bugtong Bato Falls. A multitiered waterfalls, Bugtong Bato

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flows directly to Tibiao River. It has a natural pool formed by cascading waters, a favorite place for locals who love river-rafting adventure and chasing the rapids.

Also in Tibiao is the Kawa Hot Bath and Fish Spa. After swimming in Tibiao River’s invigorating waters, take a relaxing hot bath in a giant wok. The water is heated by fire underneath and is often infused with various herbal aromatics.

Although one would feel like being cooked alive in a giant kawa (caldron), soaking in the bath and spa is one of the most relaxing and enjoyable activities worth checking out in Antique. These are located right beside the riverbank; the gentle stream lulls a person into relaxation. After that, there’s Kayak Inn where you can find basic rooms and huts alongside with these giant baths.

The Antique Rice Terraces, San Remegio, offer a competition to Benguet. Antique’s rice terraces are a 600-hectare wonder located in the remote barangay of General Fullon, San Remigio. Getting there takes at least 3 to 5 hours on foot from the nearest village.

Churches, gems

THERE are a number of Spanish colonial heritage sites in San Remigio that are worth visiting. These include the old municipal hall, the Patnongon Church and convent ruins.

San Remigio also has Rafflesia, the world’s biggest flower. It only goes to show that Borneo, Indonesia and Malaysia are not the only places where you can find this extraordinary plant. It also thrives in Antique and Iloilo.

The Rafflesia blooming site in Barangay Aningalan is very easy to reach, thanks to recently paved roads. The hike from the road takes less than five minutes.

Also located in San Remigio is the Igbaclag Cave and Stone Castle.

The town is known as the “summer capital of Antique” because the weather is cool all-year round. San Remigio has a lot of potentials to be Panay’s next big thing in tourism. You can also find gem stores in San Remigio and Sibalom that sell gemstone crafts.

And more sites

OTHER reasons to have Antique as a destination this summer include the Igpasungaw Falls, Sebaste.

The trek to this multilevel curtain falls takes around 30 minutes to 1 hour along an easy trail. Keep an eye out for the rare Amorphophallus, a carnivorous plant known for having the tallest flower bloom in the world.

There’s also Bugang River, a haven for those who love nature. This site has been awarded numerous times as the greenest and cleanest river in the Philippines where the Naranjo Water Park is located.

The latter offers a new dining and adventure destination if you are on your way to Malumpati Spring.

Another gastronomic adventure goal is the Mamammia Italian and Filipino Restaurant. Unpretentious, this seaside joint is where you can enjoy one of the best pizza and pasta dishes in Antique.

For souvenirs, there is the Bagtason Weavers, Bugasong. Highquality products, vibrant multicolored shawls and scarves are among the items handwoven here. The weavers sell beautiful textiles made in traditional patadyong fashion.

With Antique’s amazing rugged beauty and DOT’s all-out support to promote its attractions to the world, the country hopes to achieve its tourist arrival target this year.

Banking&Finance

A8 Thursday, March 1, 2018 • Editor: Jun B. Vallecera

BusinessMirror

www.businessmirror.com.ph

Govt infra spending up 15% in 2017 as total disbursements hit ₧2.824T

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By Rea Cu

@ReaCuBM

he Department of Budget and Management (DBM) on Wednesday reported the full year disbursements of the national government (NG) in 2017 amounting to P2.824 trillion, up 10.8 percent from 2016’s P2.549 trillion, with spending on infrastructure increasing by 15.4 percent for the year.

DBM data showed total disbursements for 2017 was 2.9 percent below the P2.909-trillion programmed disbursements for the year.

Infrastructure spending last year amounted to P568.8 billion, up 15.4 percent from 2016’s P493 billion. The figure exceeded by 3.5 percent the programmed P549.4-billion infra spending for the year.

The growth was attributed to the Department of Public Works and Highways (DPWH), citing the prompt and regular submission of progress billings from contractors; faster and simplified process of approval of plans and programs; and strict implementation of project planning, monitoring and scheduling as among the factors that

pushed higher-than-programmed disbursements.

“The upward trend in capital outlays is proof of the rollout of the Duterte administration’s ambitious infrastructure program,” the DBM said.

Personnel services reached P808.4 billion or 11.8-percent increase compared to 2016’s P723.2 billion. Other expense items that contributed to the growth of 2017 spending include: subsidy contributions to government-owned and -controlled corporations amounting to P131.1 billion, which posted a growth of 27 percent from P103.2 billion in 2016; and the allocations and capital transfers to local government units amounting to P530.1 billion or 14.5 percent higher than the previous year’s P462.9 billion.

“Underspending, defined as the deviation of actual from programmed disbursements, has been cut down to 2 percent if interest payments [IP] were excluded and 3 percent if IP were included,” Budget Secretary Benjamin E. Diokno said.

Diok no added t hat l ine agencies of the government are in position for t he landmark shif t f rom mu ltiyear

obligations-based to annual cash-based budgeting in fiscal year 2019.

In January the DBM began conducting executive briefings with the national government agencies, including the departments of Health, Transportation, Education Agrarian Reform and the DPWH. These came on top of the briefings conducted last July and August 2017 to introduce the Budget Reform Bill and annual cash-based appropriations.

In 2017 the DBM implemented the oneyear validity of appropriations instead of the usual two years to push the agencies to speed up the execution of projects and prepare them for the transition to annual cash-based budgeting in FY 2019.

The shift to annual cash-based budgeting is a major component of the Budget Reform Bill being pushed by the DBM, with the bill aiming to modernize the NG’s budget process, eliminate underspending, and institutionalize many of the reforms introduced and currently being implemented by the Executive branch.

Shifting to annual cash-based budgeting is expected to speedup the government’s budget utilization and promote

disciplined management of the budget.

Also, as it shows disbursements rather than obligations or commitments, a cashbased budget tends to reflect more accurately the annual outputs and actions of the government.

In January the DBM already released 78.8 percent or P2.97 trillion of the P3.78 trillion of the 2018 national budget.

Furthermore, the recently released full-year data for FY 2017 showed a continuation in the decline in underspending, posting an underspending rate of 2.4 percent, if IPs are excluded from the computation to account only for productive spending.

In previous years, the underspending rate was as high as 13.3 percent in 2014, and 12.8 percent in 2015. This was significantly decreased to 3.6 percent in 2016, when the Duterte administration took over.

“Moving forward, we expect further improvement in government spending as the bureaucracy shifts to annual cash-based budgeting starting fiscal year 2019,” he added.

Inflation could reach as high Domestic liquidity up 12.8% as 4.8 percent in February to ₧10.6 trillion in Jan–BSP T he spike in prices of consumer goods could have neared the 5-percent territory in February this year, as higher food and utility prices continue to hound the economy.

In a statement on Wednesday, the Bangko Sentral ng Pilipinas (BSP) said February inflation could settle at 4 percent to 4.8 percent, all but assuring the public that the price growth will accelerate above the annual target for the month.

The government keeps a 2-percent to 4-percent target range on average for 2018 inflation.

Failure to keep inflation within the target by the end of the year will warrant a public explanation by the Central Bank to Malacañang.

The BSP Department of Economic Research said the high inflation projection for the month is due to higher electricity and food prices seen in February.

The full pass-through of the higher excise taxes on petroleum products and sugar-sweetened beverages could have also aggravated the upward price pressures for the month.

Should BSP’s inflation forecast be realized, the economy on February will be seeing the highest acceleration of consumer prices since 2014.

Apart from the 4-percent inflation in January this year, inflation last touched the 4-percent territory in 2014, when it averaged at 4.1 percent. It’s peak then—at 4.9 percent in July

and August 2014—warranted a corresponding monetary policy action to regain control of the inflation movement.

However, analysts seem to read the BSP’s most recent guidance as a “dovish” stance— or one that prefers a relatively low interest rate regime.

In its last monetary policy in February, the monetary board still did not budge on its policy rates despite its 4.3-percent inflation projection for the entire 2018, which means the BSP has already accepted inflation would likely miss the target for the year.

BSP Governor Nestor A. Espenilla Jr. said the Monetary Board’s decision is based on its assessment that, while latest baseline forecasts show higher inflation outturns for 2018, the inflation path is expected to moderate and settle within the inflation-target range of 2 percent to 4 percent in 2019.

BSP officials also said that, at present, second-round effects from the tax-reform implementation “appear to be well contained.”

Certain sectors have been ailing due to the high inflation rate in the country, particularly the manufacturing sector, which said the high growth of prices and the weak peso does not bode well for the sector’s production costs and growth in general.

The BSP will be having its next monetarypolicy review on March 22. Bianca Cuaresma

By Bianca Cuaresma @BcuaresmaBM

T

he money circulating in the local cash stream grew faster at the beginning of the year, but the Bangko Sentral ng Pilipinas (BSP) said the acceleration is still consistent with the prevailing outlook for local price growth.

The BSP on Wednesday reported preliminary data of domestic liquidity— broadly measured as M3—to have hit P10.6 trillion in January this year. The recorded growth represented a 12.8-percent jump from its comparable level in 2017, faster than the previous month’s 11.9-percent growth.

While a growing cash supply in an economy is known to be beneficial for its expansion, as liquidity fuels productive sectors to increase the nation’s capacity to grow, an excessively fast cash supply growth could be worrisome as it may stoke inflationary pressures on the country’s real economy and may indicate overheating.

Earlier, analysts have raised concern

about the early signs of an overheating economy, as evidenced by high cash-supply growth in the system. Domestic liquidity peaked at around 15 percent in mid-2017.

At this level, the BSP said the growth in M3 is “consistent with the BSP’s prevailing outlook for inflation and economic activity.”

“Nevertheless, the BSP will continue to closely monitor monetary conditions to ensure that domestic liquidity levels remain in line with the BSP’s price and financial stability objectives,” the BSP said.

Bank lending growth—one of the main drivers of the cash-supply movement in the economy— was contrastingly slower in January, reports from the BSP said.

The outstanding loans of commercial banks expanded at a slower rate of 19.1 percent in January from the revised 19.4 percent in December.

Loans for production activities— which comprised 88.4 percent of banks’ total loan portfolio, net of RRP—grew by 18.1 percent in January, slower compared to the revised 18.6-percent growth in December 2017.

Associations and reunions

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A gasoline boy fills up the tank of a customer at a gas station along Osmena Highway in Manila. Higher excise taxes on petroleum products may have aggravated the upward price pressures in February. ALYSA SALEN

Case clippings

By Justice S J Ranada Jr.

PLEADINGS–Conclusion of law Labelling an obligation to have prescribed, without specifying the circumstances behind it, is a mere conclusion of law. The fact that a mortgagee had not instituted any action within 10 years after the loan was contracted, is insufficient to hold that prescription had set in. Even if the mortgagee’s denial is not considered a specific denial, only the fact that the mortgagee had not commenced any action, would be deemed admitted.

Mercene v. GSIS 10 Jan. 2018

GR 192971 Martires, J

ilipinos like to organize or attend gatherings—whether of families, friends, classmates, or office colleagues—to meet and greet, update one another and celebrate. This fiesta culture is one of the influences of Spain that has taken root in the Philippines. So it’s not surprising that many associations also thrive in the country. There is even a joke that if you put four Filipinos to meet in one room to form an association, there could be at least six associations that may come out of it.

One form of gathering also common with Filipinos is the class reunion.

Wikipedia describes a class reunion as a meeting of former classmates, often organized at, or near their former school by class members and is scheduled near an anniversary of their graduation. Those attending the reunion reminisce about their student days and bring each other up to date on what has happened since they last met.

I recently attended one such class reunion in my hometown in Liliw, Laguna. It was to celebrate the 50th anniversary of our high-school graduation and 54 years of our elementary class. It was called a “grand reunion” as this was a combined gathering of classmates in high school and elementary days. It could

Association World Octavio Peralta have been as well billed as a “grandparents reunion.” It was, of course, a blast since I have not met most of the 90 or so attendees in the last 50 years.

Associations do have “reunions,” too.

In most cases, it’s held yearly in the form of annual meetings or conventions. Such is the case for my organization, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).

Since ADFIAP has members in 39 countries and we meet at least once a year, our annual meeting is a reunion of sorts; not only do the CEOs and senior officers of our member-institutions participate, they also bring along some members of their families.

Our annual meeting usually goes for three days. The first day is allotted for board, committee and general assembly meetings, as well as the “delegatemeets-delegate” meeting culminated

The BSP said the movement in production loans was driven primarily by increased lending to the following sectors: Real-estate activities at 18 percent; electricity, gas, steam and air-conditioning supply at 24.8 percent; wholesale and retail trade, repair of motor vehicles and motorcycles at 13.2 percent; manufacturing at 11.9 percent; information and communication at 52.6 percent; and financial and insurance activities at 15 percent.

Bank lending to other sectors also increased during the month, except in agriculture, forestry and fishing, which declined by 11.6 percent, and administrative and support services activities, which was down 43.2 percent.

Growth in loans for household consumption also slowed down to 20.3 percent in January from the revised 20.8 percent in December 2107.

The BSP attributed the slower increase to the low growth of motor-vehicle loans, salary-based general purpose loans, and other types of household loans, which offset the faster expansion in credit-card loans during the period.

by a welcome dinner. The second day is for the conference proper on topics that are current and relevant to our members, capped with a closing dinner and a country cultural presentation. The third day is a relaxed fellowship cum tour day.

There is a separate program for accompanying persons which are usually guided tours. All of these events are hosted by our members in the country destination.

The program provides our members a variety of activities and cultural immersion, which is appreciated by the attendees and which, based on our experience, is a unique benefit that our members enjoy. While not all associations may be able to undertake such annual reunion, the idea is to make your events and activities appealing, worthwhile, and a “family gathering.”

The column contributor, Octavio “Bobby” Peralta, is concurrently the secretarygeneral of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and CEO of the Philippine Council of Associations and Association Executives. PCAAE enjoys the support of ADFIAP, the Tourism Promotions Board and the Philippine International Convention Center.

E-mail: obp@adfiap.org.

The Regions BusinessMirror

www.businessmirror.com.ph

Editor: Efleda P. Campos • Thursday, March 1, 2018

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​ ustralia rolls out new 9-year education A program in ARMM with ₧3.6-B donation

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By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

AVAO CITY—The Australian government is implementing this year another education program in the Autonomous Region in Muslim Mindanao (ARMM) for children in their early grade levels to upgrade the learning competencies of schoolchildren in the region. ​ A fresh P3.6 billion was infused to the Education Pathways to Peace in Mindanao (Pathways), a program funded by the Australian government, coming after it successfully

implemented two previous programs, the 10-year Basic Education Assistance in Mindanao project launched in 2002 and the Basic Education Assistance for Muslim

Mindanao implemented from 2012 to 2017.

Pathways is a nine-year program designed to improve the delivery of basic education and contribute to peace-building in the ARMM, the program communication dispatch said.

Education Secretary Rasol Mitmug Jr. of the ARMM said Pathways would work on improving the science, math and English language, the core areas of competencies the program would like to strengthen among children enrolled in kindergarten and grades 1 to 3.

“The emphasis is on the K to 3 levels, noting the significance of quality basic education as the foundation for lifelong learning. We believe if we equip our grade-schoolers, they’ll be better prepared for intermediate, secondary and tertiary education, as well as technical and

vocational training,” he said.

Pathways would be tested first in some schools and classrooms, as it also tests the result of its training of teachers, the approaches and methodologies to apply. It would be scaled up to all the schools after the piloting of the program.

He said Pathways would support the Philippine government’s effort to strengthen its core education services “with a focus on institutional strengthening; curriculum, learning and delivery; teacher management and teaching quality; and policy, planning and data management.”

“With support from Pathways, DepEd [Department of Education]ARMM will be investing heavily in evidence-based programs and approaches in our effort to improve the delivery of basic education in this part of the country,” he said.

Pathways was launched here in March last year by Australian Foreign Minister Julie Bishop MP, together with Secretary Ernesto M. Pernia of the National Economic Development Authority, Secretary Jesus Dureza of the Office of the Presidential Adviser on the Peace Process and ARMM Regional Executive Secretary Laisa Alamia.

Mat Kimberley, Australian Embassy deputy head of mission and who attended the launching of the program here, said Pathways would build on the gains of Australia’s previous programs in the ARMM, as it would also “closely engage education stakeholders, and promote innovation in education.”

“Australia is committed to our partnership with the Philippines, a seven-decade-long bilateral relationship that has gone from strength to strength. Australia re-

mains the Philippines’s largest development partner in the education sector,” he said.

The program communication said Pathways would be implemented by a consortium of “Palladium, a global leader in the design, development, and delivery of positive impact; the Australian Council for Educational Research, a world leader in educational measurement and support for educational improvement in developing countries; and Orient Integrated Development Consultants Inc. (OIDCI), a Philippines-based community development organization with over 30 years of experience in governance and institutional development.

The communication dispatch said the OIDCI “has extensive experience in Mindanao, including with Bangsamoro communities.”

Greenpeace ship visits Tacloban PHL, Japan ink deal on Bulacan road project for stories of Yolanda survivors T T

By Rea Cu

By Elmer V. Recuerdo Correspondent

ACLOBAN CITY—The Rainbow Warrior, Greenpeace’s most iconic ship, docked on Wednesday morning to this welcoming city, the most devastated city in the country during the onslaught of Supertyphoon Yolanda more than four years ago.

The Tacloban leg is the ship’s last stop in the country, part of its Southeast Asia ship tour.

But it’s visit here is not for any celebration, but to hear stories of the people who lost their families, friends, property and livelihood to the strongest typhoon to hit a populated area in modern history.

“The Rainbow Warrior is in Tacloban to weave together stories of climate-impacted communities and bring it to the world. It gives us that space s to share our stories of disaster, survival and loss. But we also want to highlight how we here in Tacloban hold on to that hope and eventually rise above what happened here,” said international climatejustice campaigner Joanna Sustento, who lost five members of her family including both parents to Yolanda.

“We will also highlight the disaster that happened right after the disaster. These are the injustices that happened right after Yolanda. I do not believe there were only more than 6,000 who died here,” she added.

Sustento herself has two family members who were never found. She and her brother underwent a DNA testing but, after almost five years, the result has still not been released.

“We want to give justice to people who went missing and were never found. I know many people are craving for that closure, who simply want to know their family members are already dead and that they have been buried in some mass graves,” Sustento said.

The Rainbow Warrior is in the region to support communities in pressuring governments and corporations to take immediate action on climate change. Community members are drawing attention to the fact that human rights continue to be threatened by the impacts.

On March 1 the people of Eastern Visayas, along with Greenpeace Southeast Asia–Philippines, will launch the LIVErary—a human library—where storytellers and experts will share their knowledge and experiences on themes of loss and hope, pain and perspectives, as well as justice and injustice in the context of climate change.

“The LIVErary will be collecting and connecting peoples’ stories, as well as surfacing stories yet untold, of the impacts of the climate crisis on our rights as human beings. Remembering and sharing are key elements of justice and healing. They contribute to social memory, build on and strengthen the social and cultural fabric and raise questions of accountability and responsibility, of what is fair and right and what is unjust,” Sustento said.

Community representatives from other countries, who are also fighting to reclaim rights threatened by climate change, are also participating in the LIVErary. They

include Ingrid Skjoldvær, former chairman of Nature and Youth, an organization that, along with Greenpeace Nordic, has sued the Norwegian government for allowing new oil drilling in the Arctic; George Nacewa of the Pacific Climate Warriors in Fiji; and Kelsey Juliana, one of the youth plaintiffs who filed a constitutional-climate lawsuit against the United States government.

“Responsible countries leave their oil in the ground. Norway claims to be a climate hero, but continues to drill in the Arctic. This violates our constitutional right to a safe environment and is deeply unfair to those already affected by climate change and future generations,” added Skjoldvær, former chairman of Nature and Youth, and another book in the LIVErary.

A permanent symbol of remembrance will be unveiled in Tacloban during the Rainbow Warrior’s visit. The Memorial Gift, a 2-meterhigh installation made from scrap metal salvaged in the aftermath of Yolanda, is in the style of a crinkled paper boat to signify how strength (metal) can come from vulnerability (paper). The sculpture was created by AG Saño, a local artist, survivor of Yolanda and a petitioner in the Commission on Human Rights of the Philippines Inquiry into the Responsibility of the Carbon Majors for Human Rights Violations or Threats of Violations Resulting from the Impacts of Climate Change.

The national inquiry was triggered by a petition filed at the Commission in 2015 by representatives of communities across the Philippines.

@ReaCuBM

HE Philippines and Japan signed a ¥9.399-billion (P19.387-million) loan agreement on Wednesday for the construction of the third phase of the Arterial Road Bypass Project designed to ease traffic congestion in Bulacan.

On behalf of the Philippines, Finance Secretary Carlos G. Dominguez III signed the project-loan agreement amounting to approximately $89 million or P4.25 billion. Signing for Japan was Susumu Ito, chief representative of the Japan International Cooperation Agency (Jica), on Wednesday.

The Philippines will provide a counterpart funding of P1 billion or around ¥1.476 billion, equivalent to $15 million, for the project, which has a total cost of ¥10.87 billion equivalent to about P5.26 billion or approximately $104 million. “[This is], in a word, an economically worthwhile investment. It symbolizes the economic calculation, immediacy of impact and long-term multiplier effects that we wish to see in all the ‘Build Build Build’ projects,” Dominguez said after signing the agreement with Ito at the National Economic and Development Authority (Neda) main office in Ortigas Center, Pasig City.

On behalf of the Philippine government, Dominguez thanked Jica for its continued funding support for the construction of the road bypass, as well as the flagship infrastructure projects of the Duterte administration, and assured it of the “efficiency in the use of the loans and urgency in the implementation of the projects.”

The Arterial Road Bypass, also known

as the Plaridel Bypass, is a 24.61-kilometer arterial road that will link the North Luzon Expressway (Nlex) in Balagtas, Bulacan, with the Philippine-Japan Friendship Highway, also called Maharlika Highway, in San Rafael, Bulacan.

The agreement for phase 3 of the project provides for interest-rates of 1.5 percent per annum for non-consulting services and 0.01 percent per annum for consulting services, with a repayment period of 20 years and a 10-year grace period.

Phase 1 of the Arterial Bypass Road Project, costing ¥6.3 billion or $55.6 million, and Phase 2 worth ¥4.591 billion or $40.9 million, were both financed with official development assistance (ODA) loans from Japan signed in 2004 and 2012, respectively.

The project’s first component was completed in November 2012, while Phase 2 is nearing completion and is expected to be inaugurated in May this year. Phase 3 of the project involves upgrading and expanding the existing bypass road from two lanes to a four-lane carriageway national road. “We are grateful for the generosity of the Japanese people through Jica and the Japanese government, as well as the strong support you have extended to us at this key juncture in our own economic emergence,” he added.

The finance chief said the government chose to use ODA for the project, instead of the public-private partnership (PPP) method, since the latter takes a bit of time to complete, around 320 months, among others. “The original PPP project was supposed to be P10 billion, and by doing it ourselves, we will probably be spending P5.2 billion. Apparently, it’s going to work out for us financially,” he said.

Quezon artists mount exhibit

By John C. Bello Correspondent

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UCENA CITY—As part of the celebration of February as “Buwan ng Sining” (Month for the Arts), 24 members of Quezon Artists Guild (QAG) have mounted an exhibit of their artworks, which kicked off on February 19 and runs up to March 3.

Dubbed Ani ng Sining, the exhibit—showcasing 65 pieces of various artwork by young and veteran artists—is being presented by the provincial government of Quezon and Konseho ng Herencia ng Lucena.

Led by Vladimir Nieto of Lucena City, who is also the president of Konseho ng Herencia ng Lucena, Noel Bueza of Lucban, and Frank Caña of Calauag, the exhibit is held at the groundfloor lobby of the provincial capitol building here and is visited daily by students, arts enthusiasts and potential buyers.

Bueza, a multimedia artist who acts as president of QAG, said they have about 50 members all over the province, but only 24 have joined the present exhibit and only three are fulltime artists.

Bueza has several artworks in the exhibit, which included a wood and metal sculpture entitled Harimanok and fetches P120,000; and pen and ink paintings of the late president Manuel

Luis Quezon and the provincial capitol building, among others. He said many of their QAG members are hobbyists, but other members include young students, teachers, businessmen and even a policeman.

Caña who has retired from the world of advertising (he spent 13 years in J. Romero and Associates advertising agency in Makati) as a design and art director, decided to quit in 2010 to do full-time work as a painter. His artworks in the exhibit include the abstract Kaleidoscope and semiabstract Barong-barong which is a more detailed rendition of a simple nipa. Both are done in oil pastel.

Nieto made two contributions in the exhibit, titled Magtataho and Magtatain, also done in oil pastel, while Aann Reynales, a very promising young artist from Lopez, displayed her artistic rendition of an Ayta child titled Bihug and a mother and child, painting, titled Ang Pieta sa Kalsada ng Lopez, inspired by a real tandem of mother-andchild beggars always sitting on a roadside in her hometown.

Other artists in the exhibit are Avie Lafuente of Tayabas City, Austin Llena of Quezon, Buhay Mendoza and Joel Reglos of Calauag, Yana Nieto of Lucena City, August Tazon of Dolores, Roma Valdez of Sariaya, Mel Valencia, Lhane Arenque, Japeth Buñag and Apolinario Folloso of Lopez, Tristan Bamba of Mauban, Christian de Castro of Tiaong, Rigor Esguerra and Sherwin Gonzales of Baler and Mario Madridejos, Renato Palad, Rez Cada, Percival Canuel and Ayelah Deveza, all of Lucban town, considered as the art capital of Quezon province. Other young but versatile artists of Quezon are Maria Pureza Escaño of Sariaya and Erick Dator of Lucban, who both have made a name for themselves as artists in the national and in the international scenes, but are not members of QAG.

FLOWER HARVEST A crew member of a greenhouse at a cut-flower farm in La Trinidad, Benguet, packs a bunch of white Malaysian mums according to wholesale orders.

SUZANNE JUNE G. PERANTE

A10 Thursday, March 1, 2018 • Editor: Angel R. Calso

Opinion

BusinessMirror

www.businessmirror.com.ph

editorial

How to undermine PHL leadership

T

he US Intelligence Community—a group of 17 agencies, including the Central Intelligence Agency—recently identified in a report the perceived threats to US national security in Southeast Asia. The group’s “Worldwide Threat Assessment,” released on February 13, included President Duterte under the heading “regional threats.”

Part of the report said: “In the Philippines, President Duterte will continue to wage his signature campaign against drugs, corruption and crime. Duterte has suggested he could suspend the Constitution, declare a ‘revolutionary government’ and impose nationwide martial law. His declaration of martial law in Mindanao, responding to the ISIS-inspired siege of Marawi City, has been extended through the end of 2018.”

The report also identified the following regional threats in Southeast Asia: n Cambodian leader Hun Sen, who “will repress democratic institutions and civil society, manipulate government and judicial institutions, and use patronage and political violence to guarantee his rule beyond the 2018 national election.” n The Rohingya crisis that “will threaten Burma’s fledgling democracy, increase the risk of violent extremism and provide openings for Beijing to expand its influence.” n The pledge of Thailand’s leaders to hold elections late this year, even as the new constitution “will institutionalize the military’s influence.”

Daniel Coats, US director of national intelligence, said the report covers threats to US national security. The output of the US intelligence agencies, he added, is needed “to protect American lives and America’s interests anywhere in the world.”

Malacañang was not pleased and castigated the US intelligence agencies for calling the President a regional threat in Southeast Asia. In a statement, Presidential Spokesman Harry L. Roque Jr. said the US Intelligence Community’s assessment is myopic and speculative at best. Although the Chief Executive previously said he has to act like a dictator, Roque claimed Duterte “is no autocrat” and has no “autocratic tendencies.” He said the Chief Executive adheres to the rule of law and remains loyal to the Constitution.

Roque reacted to the report, saying there is no revolutionary government or nationwide martial law, which US intelligence officials are saying that the President might declare or impose. He also defended the Duterte administration’s use of social media to promote government messages and accomplishments, after the US Intelligence Community cited a 2016 Freedom House report that said the Philippines is among 30 countries “whose governments used social media to spread government views, to drive agendas and to counter criticism of the government online.”

Roque countered: “I don’t know of any government in the free world that does not use the Internet and social media to promote its agenda. This is very true especially in the case of the US. This latest intelligence assessment is a classic case in point.”

Roque clarified that “an autocracy is not prevalent [in the Philippines], as they would like everyone to believe. Our media are still able to broadcast and print what they want—fake news included. Our Judiciary and the courts are functioning as usual. Our legislature remains independent and basic services are still being delivered.”

“We like to be friends with the United States,” Roque said, “but with declaration such as this, it is very difficult to be friendly with the US. This is something that we’re taking very seriously. It’s coming from the US Intelligence Community. It’s not even coming from the State Department. It’s something that the President will take seriously, as well.”

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Warning: Do this!

John Mangun

OUTSIDE THE BOX

‘I

F symptoms persist, see a doctor.” “Read instructions before using. If you cannot read these instructions, do not use.” “Do not put any person in this washing machine”.

Almost everything comes with a warning label these days because, apparently, comedian George Carlin was right: “Think of how stupid the average person is, and realize half of them are stupider than that.” “Caution: Coffee is hot. Avoid pouring on crotch area.”

Unfortunately, there does not seem to be a warning label for stock market investing. Most investors usually do not get any farther than some inspirational wisdom, such as from Warren Buffett: “I buy on the assumption that they could close the market the next day and not reopen it for five years.” Interestingly, everyone that uses his quote always

excludes the first sentence of what he wrote: “I never attempt to make money on the stock market.” Buffett never invested in stocks; he only bought companies.

Most of the rules for stock investing are about as valuable in real life as what was on the business card of Genghis Khan found at the bottom of one of the mountains built from the skulls of his dead enemies. “Hate the sin but love the sinner.”

Here are my suggestions for stock investing warning labels.

“If you are going to ‘buy and hold’ then buy and hold.” You hear this mantra over and over about staying in for the long term and proponents

give example after example of where this strategy is effective. Here is the reality.

Almost every investment strategy works if you follow it. The truth is that every time the Dow Jones Industrial Average has dropped by more than 10 percent, huge net outflows for retail—read the “little guy”—investors has happened. By definition a 10-percent decline is a “correction,” not a “bear market.” Remember that Mike Tyson quote about being punched in the face? Winners stick to the plan no matter how difficult.

Every investor knows deep in his heart that taking a small loss is better than taking a large loss. But the only way you can do that is by cutting a losing position. So remember, “Warning: Paper losses are real losses. Your portfolio is only worth what you can sell it for.” Understand that your loser may not come back. And even if it does, a stock that is down 50 percent has to put a 100-percent gain just to get back to even.

The other side of this is, “Paper profit is your money. Treat it with respect.” Letting a profitable position “run” does not mean letting it run into a loss. Further, if you find

P100 on the ground, go buy Lotto tickets. Why not? But if you receive a salary increase that you worked for, are you going to use the added income to play the Lotto?

“Warning: A good company is not necessarily a good stock.” The only thing worse than buying a good company with a bad stock is finding out the love of your life is actually your cousin. Some great companies are terrible stock investments. Some terrible companies have great stocks over a short term. Try not to confuse the two. While fundamental analysis will identify great companies, it does not take into account market and investor sentiment. Stock prices do not go higher unless investors buy.

And frequently, investors do not buy the stock of “great companies.” Go with the flow.

Finally, “You cannot fight the market.” You must control your stock investments. Do not let the market control your portfolio. Otherwise, you might as well buy Lotto tickets.

Please e-mail questions and comments to mangun@gmail.com. Visit my web site at www. mangunonmarkets.com. Follow me on Twitter @mangunonmarkets.

Shift in VAT treatment through the successful implementation of the VAT refund system Atty. Rodel C. Unciano

Tax Law for Business

A

mong the long list of transactions enumerated as subject to the zero-percent value-added tax (VAT) rate under the Tax Reformation for Acceleration and Inclusion law, there are about five items that may eventually become subject to the 12-percent VAT rate. The law did not state the specific commencement date for the shift. The change in the vatability of the transactions is dependent upon the fulfillment of certain conditions provided under the law.

T he f ive transactions are as follows: 1. Sale of raw materials or packaging materials to a nonresident buyer for delivery to a resident local export-oriented enterprise.

2. Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed 70 percent of total annual production.

3. Those considered export sales under Executive Order 226, otherwise known as the Omnibus Investment Code of 1987, and other special laws.

4. Processing, manufacturing or repacking goods for other persons doing business outside the Philippines.

5. Services performed by subcontractors and/or contractors in processing, converting or manufacturing goods for an enterprise whose export sales exceed 70 percent of total annual production.

As of today, the above transactions remain subject to VAT zeropercent rate. However, these transactions shall become subject to the 12-percent VAT rate upon satisfaction of the following twin conditions:

1. The successful establishment and implementation of an enhanced VAT refund system that grants refunds of creditable input tax within 90 days from the filing of the VAT refund application with the Bureau of Internal Revenue (BIR).

2. A ll pending VAT refund claims as of December 31, 2017, shall be fully paid in cash by December 31, 2019.

Under the law, the first requisite is well-defined. As the law is worded, the implementation of the enhanced VAT refund system is considered successful once all applications filed from January 1 shall be processed and decided within 90 days from the filling of the VAT refund application. This means, therefore, that failure of the BIR to process and decide within the 90-day period at least one VAT refund claim filed from January 1, 2018, will already mean unsuccessful implementation. The law does not distinguish whether the decision is a denial or approval of the claim.

As to the second requisite, there are certain questions that the law seemingly could not answer with preciseness. The condition requires that all pending VAT refund claims as of December 31, 2017, shall be fully

paid in cash by December 31, 2019.

Does this mean that denial of at least one VAT refund claim pending as of December 31, 2017, is already a breach on the requisite? As the law is worded, the answer seems to be in the affirmative.

Also, how do we know that the twin requisites have been satisfied?

Once the requisites are complied, would there be automatic application of the 12-percent VAT rate without a need for administrative declaration that the requisites have been satisfied? Or would there be a need for another piece of legislation confirming the compliance of the requisites set forth in the law? These are not clearly addressed in the law. What is clear for now is that the zero-percent VAT rate for all the five transactions stated above remain as of today.

The author is a senior associate of Du-Baladad and Associates Law Offices (BDB Law), a memberfirm of WTS Global.

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 rodel.unciano@ bdblaw.com.ph or call 403-2001 local 140.

Opinion

BusinessMirror

www.businessmirror.com.ph

Thursday, March 1, 2018 A11

People yearn for Marcos The cleansing of the temple in deregulated times Msgr. Sabino A. Vengco Jr.

Cecilio T. Arillo

database

W

HEN President Ferdinand E. Marcos sounded the alarm bells over the communist threat after the Plaza Miranda bombing of August 21, 1971, and the landing in Isabela province of automatic rifles and other war materiel smuggled from Red China in July 1972, his critics discredited him, saying that he was merely fabricating excuses to turn the country into a garrison state.

He was called a tyrant when he suspended the privilege of the writ of habeas corpus following the Plaza Miranda bombing and then declared martial law on September 21, 1972, following the arms smuggling and the subsequent wave of bombings and assassinations.

To many who suffered detention or injuries largely for engaging in subversive acts inordinately described the martial-law period, ending nine years later in January 1981, as the most brutal in Philippine history. To memorialize their contention, they organized in September 1999 the Conference on the Legacies of the Marcos Dictatorship, with American impetus (from the Legacies of Authoritarianism Project started by the University of WisconsinMadison in 1998).

The apparent aim of this project was to portray President Marcos, from the perspective of the victims of martial law, as a dictator whose example must never again be followed. However, leafing through the conference report that came out in book form, what was found were a litany of allegations but a serious shortage of evidence.

The report evoked a feeling that individuals who hated Marcos for a certain reason, the American participants included, were making him a convenient scapegoat at a time when he could no longer defend himself.

For a long time, this version of Philippine history where Marcos and his family were villains and his political opponents were heroes is the only and jealously guarded interpretation of the Marcos era that spanned almost two generations.

To digress from their version of history invites a warning against historical revisionism. These selfstyled historians desperately wanted the people to swallow only their version, hook, line and sinker.

Filipinos who have experienced the martial-law period up close would swear that life was better then than now. They remembered lawless anarchy to which democracy was reduced from the late1960s onward, until the declaration of martial law disrupted it only briefly by the suspension of the privilege of the writ of habeas corpus from August 21, 1971, to January 12, 1972, bringing a sense of pleasant relief.

Describing the period, American historian Lewis Gleeck Jr. agreed with US Embassy political counselor Francis Underhill that “the Philippines needs a strong man to get the country organized and moving again.”

He noted: “Significant evidence of the strength of the authoritarian tradition was that the introduction of martial law was accepted with relief by most of the public, and that it proved overwhelmingly popular in the beginning. Filipinos were fed up with the chaos produced by “surplundering” congressmen, corrupted media, venalities in the bureaucracy and crime in the streets. An approving majority applauded his abolition of Congress and even the muzzling of the press.”

But his critics continued to demonize Marcos for his lengthy exercise of emergency powers for which President Quezon was similarly decried, for having used emergency powers until the end of 1941. Marcos’s political rival, Sen. Benigno

Filipinos who have experienced the martial-law period up close would swear that life was better then than now. They remembered lawless anarchy to which democracy was reduced from the late-1960s onward, until the declaration of martial law disrupted it only briefly by the suspension of the privilege of the writ of habeas corpus from August 21, 1971, to January 12, 1972, bringing a sense of pleasant relief.

“Ninoy” Aquino Jr., echoed the communists’ summation of the Marcos presidency when he declared in 1977: “Mr. Marcos declared martial law to perpetuate himself in power. He deliberately abetted chaos for seven years so that, at the end of his constitutionally allowable term, he could justify the imposition of martial rule to cover up his mismanagement.”

That was Aquino’s opinion, the bias of which was understandable since he was Marcos’s nemesis, but the theory was implausible. The historical fact is that Marcos neither invented nor abetted the communist and separatist insurgencies; rather it was Ninoy who morally aided both insurgencies and materially supported the communist movement, as well. These insurgencies were the major reasons for the imposition of martial law.

Had Marcos been obsessed with keeping himself in power at all costs, he could have turned the Philippines into a garrison state. Instead, he allowed the civilian government to continue functioning under a new Constitution.

He could have called off the holding of elections without consulting the people. Instead, he held elections, plebiscites and referenda 15 times during martial law and welcomed the participation of the opposition, foreign observers and the media. He also enfranchised the youth to the electoral process.

He could have fortified himself in Malacañang Palace and ignored the needs of his people. Instead, he proceeded to give them roads, electricity, potable water, public health facilities, Medicare, schools, land reform, irrigation, minimum wages, industrialization, socialized housing, Kadiwa rolling stores with low-priced goods, price controls on basic commodities, ceilings on rental increases, a mechanism to stabilize fuel prices and a lot more, not the least of them public order.

Marcos presided over not only an orderly government but he also worked hard to make the Republic strong, internally and internationally. To help contain the communist and separatist insurgencies, he also opened, with First Lady Imelda Romualdez Marcos, diplomatic and trade relations with Red China on June 9, 1975, the Soviet Union on June 2, 1976, and member-states of the Eastern Bloc in Europe starting in 1973, with East Germany, Hungary, Czechoslovakia and Bulgaria and countries in the Middle East.

Memories of these make people yearn, in these deregulated times, for the more orderly rule of Marcos.

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

Alálaong Bagá

F

or Saint John (2:13-25), the cleansing of the temple in Jerusalem by Jesus was such a fundamental statement; it deserved to be located theologically at the beginning of his public ministry, unlike the other evangelists who placed the event chronologically concluding Jesus’ public activity. It was a dramatic announcement that Israel’s messianic expectations have been fulfilled.

Zeal for the Father’s house The works on the magnificent temple of Jerusalem with its marble and gold started by Herod the Great in 19 BC were already in their 46th year when the confrontation between Jesus and the temple authorities took place. The outer temple area surrounded by a colonnade had been turned to a frenetic marketplace: animals intended for sacrifice—oxen, sheep and doves— were for sale; money-changers were busy converting to the only accepted temple currency the various foreign currencies brought in by pilgrims to pay their temple tax. The bargaining and haggling, and the diddling and bilking going on in the temple area

must have filled the air.

The temple of Jerusalem was at the center of the religious life of Israel. It was God’s dwelling place in the midst of His chosen people, a sign of election and protection. But it must also be a sign of man’s fidelity to God’s covenant. The prophet Jeremiah decried the contradiction of the people stealing, murdering, committing adultery and perjury, and going after strange gods, and yet coming to stand before Yahweh in His temple: “Only if you thoroughly reform your ways and your deeds...will I remain with you in this place...Has this house which bears my name become in your eyes a den of thieves?” (7:5.7.11). For

Malachi (3:1-3), the inauguration of the messianic times would see the Lord’s sudden coming to the temple: “But who can stand when he appears? For he is like the refiner’s fire, or like the fuller’s lye.

He will sit refining and purifying, and he will purify the sons of Levi.”

Zechariah (14:21), too, prophesied, “On that day, there shall no longer be any merchant in the house of the Lord of hosts.”

Destroy this temple, I will raise it up

The bold action of Jesus in throwing the merchants and animals out of the temple precincts claimed the fulfillment of the prophets’ words.

Greed and hypocrisy have no place in “my Father’s house,” Jesus said as He commanded them out. Used 27 times in John’s gospel, “my Father’s house” means, likewise, the kingdom of eternal life (14:2); this relationship between the temple and heaven in eternity makes the commercialism and materialism in the temple more abominable.

His disciples later thought that “Zeal for your house consumes me” (Psalm 69:10) aptly described Jesus as he cleansed the temple made marketplace.

But, in relation to Jesus, the temple points yet to another dimension as God’s dwelling place with the

people. Challenged by the Jews, who were asking for a sign that would validate His action, Jesus dared them, “Destroy this temple, and in three days I will raise it up.” The temple of His body, where God is present to humankind, and where man can be one with God, is now the only sign for anyone. No other sign can surpass the Paschal Mystery of the death and the resurrection of the Son of God. His enemies would actually try to destroy the temple that is Jesus with the wood of the cross, but it was raised up in the glory of the resurrection. The glorified humanity of the risen Christ can die and be desecrated no more, an eternal temple of perfect worship to God. Alálaong bagá, Jesus replaced the temple of Jerusalem and its liturgy with Himself. In His glorified humanity, we have the definitive and primordial sacrament of our salvation. In baptism, we have been sanctified as temples of the Holy Spirit. Then as now, any desecration of God’s temple courts purification.

As ever, the temple consecrated to God must be a living sign of the divine presence as well as of our fidelity to God. Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

Migration and development: When will the turning point come?

Dr. Rene E. Ofreneo

LABOREM EXERCENS Continued from A1

H

owever, in the 1990s, the migration paths for the two countries began to diverge. South Korea became a net labor-receiving country. It reached a turning point in migration called by development economists as “migration hump”, which is attained when a labor-sending country is able to post a higher level of development, thus reducing the incentives for would-be migrants to leave their home country. In 1981 at the height of the Korean exodus, there were over 150,000 Korean workers in the Middle East. By 1990 Korea’s work force in the Gulf area dramatically shrank to 8,000.

The “migration transition” that South Korea experienced in the 1990s was similar to what happened earlier to another East Asian country, Japan. In the 1960s, Japan became a “miracle economy” and had lost the appetite to send out workers overseas, to get jobs and earn foreign exchange that Japan was unable to create then at home.

In contrast, the Philippines, which was declared by the World Bank as the second-most promising country in Asia in the 1960s (next to Japan), became more and more dependent on migration because the industrial transformation the National Economic and Development Authority and the World Bank said would happen under an exportoriented industrial (EOI) strategy did not materialize. To make the EOI strategy work, the Neda and the World Bank crafted a structural adjustment program (SAP) that demanded the wholesale liberalization and deregulation of the trade and investment sectors of the economy, complemented by a program of privatization.

But the EOI-SAP program did not deliver the promised transformation. Instead, the country suffered from deindustrialization and de-agricultural development during the EOI-SAP decades of the 1980s to 2000s. It was the services sector that zoomed up in these decades, fueled largely by overseas Filipino workers’ family spending and, lately, by the growth of the call center-BPO industry, an industry that was not in the EOI-SAP equation of the 1980s. Today, the Philippine economy would collapse if majority of the 11 million OFWs would suddenly return to their home country, and the faucets for the almost $2.5-billion monthly

remittances would be turned off.

In 1995, in the wake of the national revulsion against the execution of Flor Contemplacion in Singapore, Congress rushed the passage of the “Magna Carta for Migrant Workers,” or Republic Act 8042 (Migrant Workers and Overseas Filipinos Act of 1995). This law states that the State does not promote overseas work as an instrument to sustain economic growth; it favors instead the phasing out of overseas migration work “as the local economy expands” (Section 2-c, RA 8042). This reaffirms the old government stand on migration as a stop-gap measure, a “temporary” program, while the EOI-SAP program had not taken off. Incidentally, the Gangayco Commission, which investigated the Contemplacion case and which drafted RA 8042, also recommended the reorientation of the overseas deployment program away from semiskilled and “vulnerable” jobs, such as domestic work.

And yet, today, given the limited job opportunities at home, the Philippine government has not only turned a blind eye on these Gangayco recommendations but has also spurred the labor and foreign affairs departments to monitor and exploit all overseas market openings.

But back to the EOI-SAP program.

Why did it not work?

Under the EOI-SAP program, the Philippines has become one of the most open economies in Asia and in the world. Such openness is supposed to be one of the basic technocratic prerequisites for the success of an EOI development strategy, or what the first Neda Director General, Gerardo Sicat, explicitly dubbed as the “labor-intensive, export-oriented” development program. It was Sicat’s Neda, backed up by a string of

Can the Duterte administration alter the development scenario for the Philippines? Can it reduce the nation’s dependence on migration?

Can it resurrect the forgotten national dream of a turning point in migration? Can the Philippines, like South Korea and Japan, become a net labor-receiving country at the end of his term?

International Monetary Fund-World Bank loans, which tried to engineer an industrial policy shift for the Philippines—from the old importsubstituting industrial policy regime toward the EOI program. A number of EOI-friendly measures were adopted by the martial-law government, such as the enactment of laws encouraging foreign investments, etc. These measures were reinforced in the 1980s and 1990s with a package of SAP measures liberalizing the trade and investment regimes.

The EOI policy shift gave birth in the 1970s to “nontraditional” export items, such as sewn garments and toys and assembled leather products and electronics. The problem is that garments, toys and leather products (shoes) were success stories only up to the early-1990s. In the case of electronics, this registered phenomenal growth in the 1990s but it has ceased to expand in the last two decades, due to migration of investors to China and now Vietnam.

The bigger problem is that the import-substituting industrial, or ISI, sector, bred in the 1950s up to the 1970s, suffered and declined in the SAP decades of the l980s to the present. These include textile, pulp and paper, wood-based, steel, rubber and tire, shoe, tile, battery, pharmaceutical, cement, plastic, petrochemical, etc. Growth in the export sector, accounted mainly by electronics, is not enough to offset losses in the crumbling home-oriented industries, which have been neglected under SAP. Thus, one ironic outcome of SAP is the deindustrialization or hollowing out of the economy and the continuing decline of manufacturing jobs.

The Philippine industrial experience is the opposite of the South Korean experience. While it also pursued export orientation in the 1970s onward, South Korea, like Japan in the post-World War II period, protected and supported both the domestic and export sectors, invested heavily on the continuous technological upgrading of a number of heavy industries (for example, steel and ship building), promoted industrial deepening and interindustry

linkaging and adopted restrictive trade and investment measures, such as a ban on the importation of nonessentials and goods that could be produced by their own domestic producers. A good South Korean success story on technological upgrading and industrial deepening is the case of Samsung, which was originally a component producer for Sanyo in 1969. Samsung was able to scale the value chain, graduating from assembly work to original equipment manufacture, original brand manufacture to product development and application and so on. Today, Samsung is much bigger than Sanyo.

In contrast, the Philippines, which was an electronics assembler 40 years ago, is still in the assembly work. Thus, the enclave nature of the export sector has remained, and so are the limited linkages with the domestic economy.

To sum up, therefore, the Philippines failed to achieve industrial transformation after four decades or so of SAP, a program which was supposed to hasten industrial growth.

The former president of the Philippine Institute of Development Studies, Dr. Josef T. Yap, wrote in 2003 that mainstream economics, in place for more than a quarter of a century, has not only failed to achieve industrial transformation but has also induced a jobless growth pattern for the country. As discussed earlier, one explanation is the collapse of many local industries under the EOI program of unilateral liberalization, aggravated by the government’s failure to nurture them and provide a fair and level playing field for these industries. Another is the failure of the export sector itself to expand and infuse dynamism in the economy. In the case of export garments, there is failure of the country to sustain and protect its position, which was largely quota-driven, in the global market.

Thus, after more than two decades after the passage of RA 8042, or the migrant workers law, the industrial turning point has been receding like a distant star in a dark, cloudy night.

Can the Duterte administration alter the development scenario for the Philippines? Can it reduce the nation’s dependence on migration?

Can it resurrect the forgotten national dream of a turning point in migration? Can the Philippines, like South Korea and Japan, become a net labor-receiving country at the end of his term, through what the Department of Trade and Industry is advertising today—a “manufacturing resurgence?”

2nd Front Page BusinessMirror

A12 Thursday, March 1, 2018

Economic Cha-cha next on the agenda of Duterte Con-com A

By Bernadette D. Nicolas

@BNicolasBM

fter settling the issue on the most suitable system of government for the country, members of President Duterte’s consultative committee (Con-com) will now focus on the amendments needed to further liberalize the economy using inputs from business chambers and advocacy groups.

Arthur N. Aguilar, chairman of the economic reforms and fiscal administration subcommittee, told the BusinessMirror that the economic provisions in the 1987 Constitution are “restrictive.” “[The Constitution] is viewed as protectionist. So we really have to look at it today and where

our country will be decades from now,” said Aguilar, who is an accountant and an economist. “We have to prepare the country for the future and the rule now is globalization. The Philippines is a signatory to various [trade] treaties and all of these require a liberalized economy.”

We really have to look at the Constitution today and where our country will be decades from now.”—Aguilar

Aguilar said members of the Con-com are currently collecting position papers from various business groups, professional orga n i z at ion s a nd econom ic advocacy groups.

The Joint Foreign Chambers of the Philippines, the Makati Business Club (MBC), the Financial Executives Institute of the Philippines (Finex) and the Management Association of the Philippines (MAP) have already submitted their position papers to the committee.

Finex, MBC and MAP said in their joint statement that there is a need to amend the Constitution to make it “more adaptable and responsive to current social and economic realities.”

“We believe this is a necessary action in helping us realize

the aspiration of a more inclusive and sustainable growth,” the statement read.

The group called for easing foreign-investment restrictions, as this “may also be critical” in meeting their commitments to the Asean economic community and strengthening trade ties with other countries.

“The Philippines has enjoyed enhanced growth prospects and is on the radar screen of the international investment community— and these will be further improved by higher foreign investments coupled with improved environment in doing business in the country.

It will be unfortunate if the Philippines fails to take advantage of this golden opportunity and realize the potentials that a liberalized trade See “Cha-cha,” A2

Sanofi denies concealing data on Dengvaxia

F

rench pharmaceutical giant Sanofi Pasteur has denied concealing safety issues related to its controversial dengue vaccine Dengvaxia.

Sanofi Pasteur issued a statement “to address the inaccurate information regarding the transparency of data and findings related to Dengvaxia. All our vaccines undergo extensive clinical investigations, and their efficacy, safety and public health impact is continuously followed up post license.”

“For the dengue vaccine, from the time of the sale, until November 2017, we had no information or data with regard to the serostatus of the vaccinees showing a different product profile in the population of 9 years old and above,” company added.

During the House Committee on Good Government and Public Accountability hearing on Dengvaxia, Dr. Anthony Leachon accused Sanofi of concealing information.

“You have here a problem of concealment of data, particularly of safety.…This is a great sin to the Filipino nation, considering that this was a program of the government,”said Leachon, who was part of the then dengue expert panel of the Department of Health (DOH) that strongly opposed the mass vaccination of Dengvaxia.

We learnt of the different product profile of the dengue vaccine for those with or without a previous dengue infection in November 2017, and Sanofi Pasteur has shared the new data in full transparency.”

—Sanofi See “Sanofi,” A2

www.businessmirror.com.ph

COMPLETION OF MAJOR ROAD PROJECTS TO EASE TRAFFIC CONGESTION

By Cai U. Ordinario

M

@cuo_bm

etro Manila residents will get some reprieve from traffic jams toward the end of the year following the completion of major road projects, the National Economic and Development Authority (Neda) said on Wednesday.

Among the road projects that may be completed this year are bypass roads like C-3 and Harbor Link Road, which provide a direct link between the Port Area and the North Luzon Expressway.

“I think later this year or next year there will be palpable relief among commuters and motorists,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters in a news briefing on Wednesday.

Public Works Secretary Mark A. Villar also disclosed that 12 additional bridges crossing Pasig River will be constructed starting this year.

Villar said Filipino commuters and motorists can expect the overall traffic situation to improve because the Duterte administration considers solving traffic congestion as its top priority. “The President has a plan, and it is being implemented to significantly reduce traffic not just in Metro Manila but across the country,” Villar said.

“The plan is in place and, in the succeeding years, people should expect major improvements in the traffic situation.”

$4.83 billion The amount of official development assistance obtained by the Philippines from Japan as of September 2017

The efforts of the national government to implement more projects include the approval of at least two more Japanesefunded projects this year. These include the P134-billion Philippine National Railway South Commuter Line (Tutuban to Los Baños) and the P230-billion Manila Metro Line 9 (Mega Manila Subway Project-Phase 1), according to Pernia.

The Neda chief also said the Japanese government is still the Philippines’s largest source of official development assistance, with a share of 38.57 percent, or $4.83 billion, as of September 2017. Japan’s ODA loans make up 45.88 percent, or $4.688 billion, of the Philippine government’s total loans portfolio.

In 2017 alone, the Neda Board has approved five major infrastructure projects to be implemented with Japanese support, with a total investment cost of about P700 billion.

These include the Arterial Road Bypass Project Phase III, as well as three major railway projects and a flood-management project. Several more projects will be processed this year.

Data protection officers hottest item in technology Continued from a1

In this photo on Facebook by Boracay Island resident Freida Dario-Santiago, stakeholders throng the Eco-Village Convention Center on Tuesday, where the Malay government of Mayor Ciceron Cawaling presented a six-month action plan to rehabilitate the island. Among its plans include a suspension of building construction on the island.

the policies and processes to avoid costly data breaches.”

That’s the reason the EITSC has started to create teams to assist companies to train DPOs and introduce software that will lead to showing compliance gaps and ways to solve them.

“It has to be understood,” said Schumacher, “that the DPA gives Filipinos and citizens around the globe more control over their online information and applies to all firms that do business. This is especially important for Philippine companies that do business or intend to do

business with Europe.”

Finding DPOs is not easy, here and around the globe. More than 28,000 will be needed in Europe and the US, and as many as 75,000 worldwide as a result of data-privacy laws, the International Association of Privacy Professionals estimates.

Schumacher added “the need for DPOs is expected to be high in any data-rich industry, such as technology, business-process management, digital marketing, finance, health care, hospitality and retail, to name a few.”

6-month plan includes halt to all building construction in Boracay Continued from A1

[of a closure]. [Environment] Secretary [Roy A.] Cimatu still has questions, and is playing Devil’s Advocate, asking ‘what ifs’? ” Densing said.

Densing underscored that the closure of Boracay would be “temporary,” adding that it is not the first time a major destination had to be closed down to allow it to regenerate. He pointed to the closure of Koh Tachai off the Phuket coast, in 2016, as a template for Boracay’s closure. The Thai government closed the island, as well as three other islands in 2016 to rehabilitate it. These were only reopened in 2017. He also noted that Mount Apo was temporarily closed from 2016 to 2017 to allow it to regenerate. The area had been closed to trekkers after a fire razed portions of the mountain in April 2016.

“How long it [Boracay] will be

closed is up to the President,” he said. If a closure is decided, the DILG official said Teo asked for lead time so the Department of Tourism (DOT) could advise tour operators and travel agencies to “reroute” tourists to other destinations.

He also said plans are being drawn up to involve the Department of Social Welfare and Development and the Department of Trade and Industry to extend “bridge financing while the island is closed.” The funds, however, will only be given to the small business owners and poor residents who rely on tourism for sustenance.

Meanwhile, the Malay government’s six-month action plan, a copy of which was obtained by the BusinessMirror, showed it will pursue the crafting of a tourism master plan by architect Jun Palafox and associates, which is projected to be completed by July 2018. It will also conduct an “inventory of landowners and

structures on Boracay Island,” which will take place between March and September 2018.

In addition, the LGU will “intensify the ID system as a means of in-migration control by ID coding.” According to the LGU, Boracay has a total land area of 1,064 hectares, with a current population of 56,444.

However, with an estimated 18,082 tourists a day (assuming a three-day/two-night stay), including some 17,330 registered foreign and local workers and about 11,300 unregistered workers, the total number of people on the island reaches 103,143 daily. The DOT has said the “carrying capacity” of the island is for only 50,000.

The LGU also plans to revive the materials-recovery facilities in each of its three barangays, the privation of garbage-collection operators and “the privatization of new cell construction and operations of a sanitary landfill.” All these are

projected to be completed within six months. There is no sanitary landfill on Boracay island; after trash is collected, these are dumped in a central MRF, then shipped to mainland Malay, which has a sanitary landfill.

The Mayor’s office is also planning to demolish illegal structures, file cases against violators and close businesses, which have no business permits. Other projects include the phaseout of tricycle units, implementation of a new traffic plan and continuous apprehension of illegal vehicles. The traffic jam in central Boracay has been a subject of complaints, not only by local residents and business owners, but by tourists, as well. Even a typical 15-minute ride from end-to-end of the island, will likely take more than 30 minutes, due to the burgeoning number of vehicles and the rising population.

Año has said administrative sanctions would be filed against

local and national government officials who had abetted the violations of environmental and easement rules by resorts and other establishments on the popular resort island.

‘Not too late to save Boracay’

DENR Undersecretary for Policy, Planning, International Affairs and Foreign-Assisted Projects Jonas R. Leones told the BusinessMirror that there will be no letup in the crackdown against erring resort owners in Boracay to ensure President Duterte’s six-month deadline to fix the environmental problems on the island will be met.

Leones, Cimatu’s spokesman, said it’s not too late to save Boracay, but it will require the cooperation of all the stakeholders on the island known for its white-sand beaches and pristine waters.

He said the DENR and the DOT will allow establishments to See “Boracay,” A2