Businessmirror march 12, 2018

media partner of the year

United nations

2015 environmental Media Award leadership award 2008

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

n

Monday, March 12, 2018 Vol. 13 No. 152

‘BBB’ seen raising wages, benefits of Pinoy workers

F

By Samuel P. Medenilla

@sam_medenilla

illing up the huge manpower requirement of the government’s big-ticket infrastructure projects that will be implemented under the “Build, Build, Build” (BBB) program could increase the salary and benefits of one of the lowest paid workers in the Philippines.

By Bernadette D. Nicolas

F

@BNicolasBM

rom 9 a.m. to 4 p.m., Mond ays to T hu rsd ays, t he 20 members of President Duterte’s consultative committee (Con-com) gather at the Philippine International Convention Center for two or three closed-door subcommittee meetings. Depending on the agenda, they also work extra hours just to finish the voluminous tasks at hand. Continued on A16

business news source of the year

P25.00 nationwide | 5 sections 32 pages | 7 days a week

What can be negotiated in a competitive challenge process

₧11,000 to ₧13,999 Alberto C. Agra

The monthly salary of nearly half of 3 million construction workers in the country, according to the Philippine Statistics Authority Based on the latest data from the Philippine Statistics Authority (PSA), around 46 percent of the over 3 million construction workers in the country are paid only between P11,000 and P13,999 per month. Continued on A2

Con-com on pace to meet July deadline Puno: “I banished from my mind the personal implications of whatever will be the provision on political dynasty will be, so, if Congress has a different view, so what? Let it be.”

2016 ejap journalism awards

ead

L AlbertoPPP C. Agra Conclusion

R

elevant Laws and Regulations. The governing law and applicable regulations cannot be the subject of a contract. Therefore, the implementing agency (IA) and private-sector proponent (PSP) cannot agree to dispense with the relevant regulatory approvals needed for a project, like the environmental compliance certificate from the Department of Environment and Natural Resources, the rate of return for a build-operate-transfer (BOT) law modality from the National Economic and Development Authority (Neda)-Investment Coordination Committee or the appropriate franchise. Continued on 15

The lessons to be learned from Corona’s 2012 trial By Butch Fernandez @butchfBM

Saguisag: “I long for the day when justices were read, not seen nor heard, [like] today, arguably reducing their Mount Olympus image to a current vestige of Smokey Mountain…”

U

SHIP SHAPE A ship sits at a dry-dock station at Subic Bay, a former ship-repair facility of the Spanish Navy and subsequently the US Navy before it was decommissioned in 1992. The dry dock is operated by the Subic Drydock Corp., a locator at the Subic Bay Freeport Zone, which aims to be a provider of world-class ship repair, overhauling, installation, fabrication, port general services and new buildings, and be one of the leaders in ship repair and the shipbuilding industry. NONIE REYES

nless the Supreme Court beats lawmakers to it and rules favorably for Solicitor General Jose C. Calida’s quo warranto petition seeking Chief Justice Maria Lourdes A. Sereno’s quick ouster, the two chambers of Congress—as mandated by the Constitution— will proceed with the impeachment Continued on A16

ERC to rule on up to 90 pending cases before April 12 By Lenie Lectura @llectura

T

he Energy Regulatory Commission (ERC) is targeting to release 80 to 90 rulings on pending cases, including applications of power producers, before the lapse of the 60-day temporary

PESO exchange rates n US 52.0160

restraining order (TRO) on the suspension of its commissioners on April 12. Ti me ly approva l of power agreements, according to ERC C h a i r m a n A g nes V S T De v an a d e r a , w i l l av e r t p o s s i b l e power outages, especially these summer months.

Devanadera said they have raised the agency’s target approvals, from 61 to anywhere between “80 to 90.” The 60-day TRO was issued by the Court of Appeals (CA) to halt the suspension order of the Office of the Ombudsman against four commissioners of the ERC released

in December 2017. “There are a lot more [rulings] that will come out very soon. We may issue 80 or 90 total in April,” Devanadera said. Advocacy group Laban Konsyumer Inc. President Victorio A. Dimagiba, in an interview, said the commissioners should

use the 60-day reprieve to fulfill their mandate of enhancing consumer welfare. “Thus, they are given an extra time to show the Ombudsman erred in meting them a one-year suspension in the eyes of the electricity consumers,” he said. Continued on A2

n japan 0.4896 n UK 71.8757 n HK 6.6332 n CHINA 8.2072 n singapore 39.4988 n australia 40.5153 n EU 64.0525 n SAUDI arabia 13.8702

Source: BSP (9 March 2018 )

A2 Monday, March 12, 2018

BMReports BusinessMirror

‘BBB’ seen raising wages, benefits of Pinoy workers Continued from A1

The rest are paid monthly wages ranging from below P5,000 to over P26,000. “There is now a proposal to raise the [daily] wages of construction workers who will join the BBB projects by P800. Our group supports such proposal,” Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) Spokesman Alan Tanjusay told the BusinessM irror in an interview. The ALU-TUCP issued the statement after most of its 6,000 members, who are construction workers, were able to negotiate for better working conditions in their collective bargaining agreement (CBA) amid the prevailing labor shortage in the construction industry. Construction workers, according to the group, are one of the lowest paid workers in the country. Aside from the ALU-TUCP, the Department of Trade and Industry is also advocating for an increase of P200 to P300 in the daily wages of construction workers to discourage them from working abroad.

‘Labor-driven market’ Former Labor Undersecretary and University of the Philippines economist Rene E. Ofreneo said workers could usually dictate pay terms that would be favorable to them until the labor shortage is addressed. In terms of higher wages, Ofreneo

said it would initially favor workers who are highly skilled as they are fewer. “But if the shortage would continue, the natural pressure to increase wages will eventually benefit ordinary construction workers.” While the additional pay will be beneficial for construction workers, Ateneo Center for Economic Research and Development (Acerd) Director Alvin P. Ang said it could raise the prices of basic goods and services. “Any increase [in spending] whether related to TRAIN [Tax Reform for Acceleration and Inclusion] or not will eventually impact inflation,”Ang told the BusinessMirror via SMS. Matthew Roxas, the operational manager of a Metro Manila-based construction firm said the pay hike could also undermine the competitiveness of many construction firms. Roxas disclosed that his company is one of those having a difficult time hiring additional construction workers to meet the demand of their growing number of clients. He said, however, that the firm is not keen on giving higher wages to new applicants as a way of addressing their manpower woes. “ The moment you increase the salary of the workers, you would also have to increase you operation cost so you might not even get any more projects,” Roxas said.

Shortage to worsen The Department of Labor and Employment (DOLE) admitted the labor shortage in the construction industry “will get worse before it gets better,” particularly when the government starts the implementation of more big-ticket infrastructure projects under its BBB program. DOLE’s Bureau of Local Employment Director Dominique R. Tutay said educational institutions and the Technical Education and Skills Development Authority still cannot keep pace with the manpower demands of construction firms. Tutay said the country produces between 80,000 to 150,000 new construction workers each year. Earlier, BBB program chairman Anna Mae Y. Lamentillo told the BusinessMirror that the government’s infrastructure program will need at least 2 million construction workers for this year alone. Tutay said the DOLE is now in the process of identifying the positions that will be offered via the “Jobs, Jobs, Jobs” program—the mass hiring initiative of the government for the BBB that will be launched in May. “That is why we need train more construction workers as soon as possible,” Tutay said. She said this could mean better work opportunities for construction workers in the next 10 years, when most of the 75 BBB projects are expected to be completed. Tanjusay said the DOLE welcomes ad-

The lessons to be learned from Corona’s 2012 trial Though he is no longer a senator, Saguisag shared his view with the BusinessMirror. The law professor and known champion of due process expressed the wish that the Senate impeachment court—should it be eventually convened for Sereno—would not summon any Supreme Court justice, as what happened in the House justice committee hearings, where six incumbent associate justices and two previous ones testified. “I long for the day,” Saguisag said, “when justices were read, not seen nor heard, [like] today, arguably reducing their Mount Olympus image to a current vestige of Smokey Mountain [which may be unkind and unfair, not altogether like the perception that the Court of Appeals is a Palengke, not fair to the many justices who prove true to their oaths and to the people, not to any appointing power],” The former senator also voiced hope that “the Senate will discourage the CJ [Sereno] from handling her own case.” Saguisag thinks his namesake, Corona,

Con-com. . . Continued from A16

“Well, it’s quite simple if the powers of the government will be given to the local government units, the provinces, the cities, municipalities, then the progress would spread out, not only in Metro Manila, but in this constituent units that should follow as a matter of course,” he added. Framers of the 1987 Constitution previously said that shift to federalism is not the solution to the country’s problems, and instead suggested to just amend the 1991

ditional jobs from the BBB as long as the government the workers that will participate in the program will enjoy basic labor and safety standards. “We hope there will be no contractuals [under the BBB] and all companies and contractors will comply with the highest labor and occupational safety and health standards to avoid accidents that could lead to death, debility and diseases,” Tanjusay said.

Beyond ‘BBB’ Ofreneo, however, said the government should already have a long-term economic plan after the BBB to ensure that its benefit to the economy will be “sustainable.” “There were so many roads, ports and bridges that were built during the construction boom in the 1970s. But [no such] projects were rolled out in the 1990s, leading to the neglect of the industry and agriculture sectors,” he said. “This is why it is important to have a development framework and development strategy is important. It is not enough to just build, build, build. We need a bigger development vision,” Ofreneo added. Tutay said the completion of BBB projects would help the Duterte administration achieve its long-term plans. “The BBB is critical since it will serve as the window for more investors to come into the country.”

Continued from a16

“committed suicide by taking the witness stand to defend himself, at war with the apothegm that a lawyer who defends himself has a fool for a client.” Meanwhile, the prosecutors from the House have a key lesson or two to learn from the Corona case, Saguisag added. “The House Impeachment hotshots should not forget another basic lesson either, never ask a question the answer to which you don’t already know.” He recalls that “blunder” was “committed by the prosecutors in the case of Rene [Corona] in asking Ombudsman Chit [Conchita Morales] Carpio on Rene’s dollar accounts.” Saguisag, likewise, expressed the view that as lawmakers, “the Senate should not compel the violation of the physicianpatient privilege,” apparently alluding to the move of the House justice committee to compel appearance of the psychiatrists commissioned by the Judicial and Bar Council to conduct assessments on then chief justice aspirants, including Sereno.

That physician-patient privilege, according to Saguisag, was “mangled by the House in a bid to remove a public school and Ateneo alum, before she went to the finest law school in Diliman and graduating as valedictorian, before getting her master’s in Michigan. How many insane lawyers can match her academic credentials?” In Saguisag’s view, the Senate trial should be held by all means, as one “could only be ‘quo-warrantized’ within a year after the cause of action arose.” He cited the Rules of Court, Rule 66, Section 11, for this, in weighing in against the quo warranto petition that Calida filed last week asking the SC en banc to declare Sereno unqualified for the post of chief justice when she was appointed to it. However, having been appointed in 2012, she could no longer be subject of a quo warranto petition in 2018, Saguisag stressed. “Let the show begin,”Saguisag added. “The CJ is even now a winner who can only fall into the arms of our people if she loses the numbers game because the President is hell-bent on

controlling the entire government.” “Had she [Sereno] followed what the President wanted and did not assert judicial independence, she wouldn’t be where she is today, a potential martyr for the cause of such autonomy,” Saguisag noted. Last week Calida created a stir, not just with his quo warranto filing that was seen as an infringement of the constitutional mandate of Congress in impeachment, but also for his remark that he wanted Sereno ousted by her own court as an “act of kindness.” He said he wanted to spare her the ignominy that befell her predecessor “at the hands of politicians who judged him unfairly.” Did Calida really draw that lesson from the 2012 Corona trial? When asked by BusinessMirror, today’s senators refused to be drawn into reacting on whether the solicitor general was effectively also prejudging the ability of the current crop to give Sereno a fair trial. In a word, their message was simply: let’s wait and see, or abangan, as the nation does, with bated breath.

Local Government Code (LGC), which states that local government units are given the power to create their own sources of revenues and levy taxes, fees and charges, subject to guidelines and limitations as Congress may provide. The LGC also mandates an equitable share in the proceeds of the national wealth for the local governments. Asked on why the country can’t just amend the Code to fix the problem, Puno said: “That is precisely the issue. If you do that, you are saying that you perpetuate the unitary system.” On Monday, the committee is set to vote on the provisions on banning political dynasties, and the president and vice president being

elected as a team. They have also yet to formally vote on the academic requirements of senators and on how many senators will be voted per region. Asked on whether the provisions on political dynasty would be supported by Congress and the President, Puno said he is only focused on what is good for the people. “I banished from my mind the personal implications of whatever will be the provision on political dynasty will be, so if Congress has a different view, so what? Let it be,” he said. He also noted that if the President agrees with the recommendations of the committee, everything is well and good since it is his

committee, anyway. “If he does not, that is his prerogative.” Following the recent landmark decisions, the Con-com is still waiting for the President’s appointments of five more people to the committee to help the members review the 1987 Constitution. Puno, however, assured the public that if a certain sector is not represented in the committee, that does not mean the interest of that particular sector would be neglected. But he admitted that they have asked the President to appoint more women, indigenous people and experts on economic and fiscal policies, international law and foreign relations. Puno said they need more people from the economic sector, as they need to review the economic restrictions of the present Charter. “We need the views of economic experts and we need the views of fiscal experts when we allocate, for instance, the power to tax on the part of federal government and the constituent units. They are the experts on the field and they should be the most knowledgeable on the impact of how we cut the power to tax. How the allocation of the taxing power should be and its result on the economic sustainability of these units if they are given the status of states,” he said. As soon as the structure of the Executive, Legislative and Judiciary in the federal government is done, the committee will go to the next stage, which is the determination of how many states or regions, and then, the allocation of powers of the federal government and the state and regional government. “For instance, if we give the power to impose a certain tax to the constituent units, the states and the regions, what will be the impact of this power to tax on the part of the units? How much will this help them be sustainable? How much will it help them to guarantee that now they are states they can deliver the basic services to the people,” he said.

www.businessmirror.com.ph

ERC to rule on up to 90 pending cases before April 12 Continued from a1

Devanadera earlier warned of a debilitating impact of the suspension order, saying this will render the operations of the agency in severe paralysis. As a collegial body, the presence of at least three ERC commissioners is needed to constitute a quorum to enable the commission to adopt any ruling, order, resolution or decision in the exercise of its quasi-judicial and quasi-legislative functions. Aboitiz Power Corp. President Antonio Moraza, when sought for comment, said the agency is a very important and necessary component of the power industry. “We need the institution to operate and perform its many functions daily. Its structure is that it is a collegial body, where three commissioners are required to have a quorum and at least two to make decisions. So an ERC without commissioners will cease to function.” The CA agreed. In its February order, it said it had to “look at the big picture and consider the interest of the public, the irreparable injury that it may suffer if a TRO is not issued.” “This is because, as pointed out earlier, petitioners are public officials performing important duties and functions pertaining to the power sector. We hasten to add that what we give importance to, and is of utmost concern, is not the petitioners themselves but their office, and the public service that would be and currently is being jeopardized by reason of their present predicament.” There are 162 petitions for approval of power-supply agreements pending at the agency. Of these, 132 cases involve electric cooperatives and 30 involve private distribution (PSAs) utilities (DUs). The total value of these pending applications for ERC approval is P1.6 trillion. “This P1.588 trillion—not just millions, but trillions—include investments from both local and foreign entities. Without ERC action, the projects cannot proceed. The investors may get discouraged,” Devenadera had said.

Back to work

When the TRO was issued, the commissioners immediately resumed work. During its regular commission meeting held on February 13 and 27, the ERC approved the grant of Provisional Authorities to Operate (PAOs) and the issuance of Certificates of Compliance (COCs) to 15 generation companies (gencos). The COCs are required to commercially operate a power plant or other facilities used in the generation of electricity pursuant to Section 6 of Republic Act RA 9136, or the Electric Power Industry Reform Act of 2001 (Epira) and Section 4 of the Implementing Rules and Regulations (IRR) of the Epira. On the other hand, pending the issuance of the COC, the PAO may be issued by the ERC to enable a genco to operate its generation facility. The PAO shall be issued in the form of a notification to the genco and shall be valid for a period of six months from issuance thereof. The six-month validity period shall be included in the five-year term of the COC. Devanadera said it is imperative for a genco to secure a COC or a PAO from the ERC prior to its commercial operation. The ERC, she stressed, recognizes the need for the immediate issuance of the COCs and PAOs to gencos to ensure a reliable and sustainable power supply, especially that there is an upsurge in power demand during the summer months. “With the approvals of PAOs and COCs to gencos, power supply will be augmented, as additional power will be injected into the grid. This will keep a stable power supply, especially during the coming summer months, when the demand for electricity is expected to increase drastically. That’s why we, at the ERC, are acting with dispatch to avert load shedding or brownouts,” Devanadera said.

‘Courtesy’

The ERC, according to the Ombudsman, favored the Manila Electric Co. (Meralco) by excluding the power

distributor from the competitive selection process (CSP), which requires distribution utilities and power generation companies to subject their power supply agreements (PSAs) to price challenges. This did not sit well with consumer groups and other sectors. Lawmakers conducted an inquiry into the alleged midnight deals for Meralco. The agency denied this. The ERC extended the validity of the CSP policy mainly because it wanted to address the valid concerns raised by the DUs and gencos. “The extension of the CSP implementation was not intended to benefit any electric power industry participant, but to give time to those who have already completed their PSAs but failed to submit the same to the ERC prior to the effectivity of the CSP,” the agency said. When asked if Meralco’s PSA applications will be included in the rulings that will be issued soon, Devenadera could not commit. “The entire process involves evaluation, which has been ongoing. Now, there are other factors. With respect to the probe by Congress, if there is already a resolution on the probe then that will be considered, as well. It’s a courtesy, which is expected from national agencies though it is not dependent on our evaluation,” the ERC chief explained. The agency’s spokesman, lawyer Rexie Digal, said in a separate interview that the processing of petitions, including Meralco’s seven PSA applications, did not stop because of the suspension order. “As to whether it will be resolved during the TRO period, it will depend on whether the evaluation and procedures for said applications are completed,” Digal said, adding that the commission vowed to act on applications requiring immediate resolution.

‘Unfair’

Meralco’s PSAs applications cover a total of 3,551 megawatts (MW) with various gencos. These are with Redondo Peninsula Energy Inc., St. Raphael Power Generation Corp., Atimonan One Energy Inc., Central Luzon Premiere Power Corp., Mariveles Power Generation Corp. of the San Miguel Group and Global Luzon Energy Development Corp. of Global Business Power Corp. Meralco President Oscar Reyes said these PSAs were entered into as early as April 2016. These underwent all the necessary due process, including documentation and public hearings. “We can’t stress enough that these are very critical plants that will assure energy security. We don’t think there is any valid reason for further delay,” Reyes said. The delay in the approval of these applications and the consequent delay in the financial close and subsequently the commercial-operations date of the power projects will adversely affect the utility firm’s ability to meet demand growth in its franchise and overall energy security in the Philippines. “Their approval with urgency is needed, even as the passage of time since their filing in 2016 has already caused significant increases in the engineering, procurement and construction [EPC] costs and financing costs of these new power plants,” Reyes added. The Meralco official pointed out that if the total costs of the projects were to balloon, then the financing cost would increase, as well. “It would be most unfair to Meralco customers.” “Costs have been increasing. We negotiated very competitive EPC costs. We negotiated competitive costs and also financing terms. I don’t think we can repeat it.” He could not stress enough the importance of the PSAs. These, Reyes said, are meant to meet additional electricity demand. “We don’t want to create any sort of fears or concerns, but I think you just have to look at reality if you keep on delaying projects. Demand is not stopping. For now, all Meralco could do is to “continue to make our case and appeal for timely action and decision.” “Our option is to continue to hope,” Reyes said.

www.businessmirror.com.ph

The Nation BusinessMirror

AFP chief, Asean counterparts want peace in South China Sea

A

RMED Forces of the Philippines (AFP) Chief of Staff Gen. Rey Leonardo Guerrero strongly agreed with his nine other Association of Southeast Asian Nations counterparts on the “importance of maintaining and promoting peace and security in the South China Sea.” In the joint statement issued after the Asean chiefs of Defense Forces Informal Meeting (ACDFIM) held on March 8 in Singapore, all top military heads also recognized the need for cautious actions in the disputed region. “Reaffirming the importance of maintaining and promoting peace, security, stability, safety and freedom of navigation inand overflight above the South China Sea, as well as the need to enhance mutual trust and confidence, exercise self-restraint in the conduct of activities and avoid actions that may complicate the situation,” the AFP said in a statement last Sunday. It also added the importance of pursuing a peaceful resolution of disputes in accordance with international law. Now on its 15th iteration, ACDFIM serves as the biggest avenue for interaction among heads of militaries from Asean member-states where regional issues, such as terrorism, sea disputes, and disaster preparedness and response,

among others are discussed. The heads of defense forces also noted the framework “Resilience, Response, Recovery” as a means to build up regional capability to deter and prevent terrorist attacks, as well as in coordinating “Asean’s responses to address ongoing threats and recover from any terrorist attacks.” In terms of humanitarian assistance and disaster response (HADR), the military chiefs agreed to work on the “operationalization of mechanisms to enhance Asean responses to natural disasters, such as the Asean Military Ready Group [AMRG] on HADR based on principles of sovereignty and consensusbased decision-making.” The AMRG aims to prepare an Asean quick response team for immediate coordinated deployment to Asean countries and areas affected by disasters. Prior to ACDFIM, the Asean Military Intelligence Informal Meeting and the Asean Military Operations Informal Meeting were also held on March 6. The results of these meetings serve as a pretext for discussions in the ACDFIM. The AFP earlier reiterated its commitment to regional military to military cooperation and to building stronger partnerships in order to deal with common issues that need cooperative actions more effectively. PNA

Editor: Vittorio V. Vitug • Monday, March 12, 2018 A3

SC protest to ramp up ‘Sereno resign’ calls

T

By Joel R. San Juan

@jrsanjuan1573

HE pressure for Maria Lourdes A. Sereno to step down as Chief Justice of the Supreme Court (SC) is expected to intensify, as groups of judges, lawyers and court employees vowed to join protests calling for the chief magistrate’s resignation even before the impeachment trial against her begins. Groups lending their voices for the call include the Philippine Judges Association, SC Employees Association, SC Assembly of Lawyer Employees, Sandiganbayan Employees Association and the Philippine Association of Court Employees. These groups said they will issue a one-page joint statement urging Sereno to resign. The statement will be read during the flag-raising ceremonies in the SC and appellate and lower courts nationwide this morning (Monday). Court employees are expected to hold another Red Monday protest to show their support for Sereno’s ouster, the joint statement said. “We, the entire force of the Judiciary, which includes judges, officials and court employees under your leadership, are pleading you, our beloved Chief Justice Maria Lourdes A. Sere-

no, to do the timely and necessary sacrifice for the institution that you gave so much time and love in these past years,” read the statement written in Filipino. “We call on you, for the sake of our people, to step down from your position as Chief Justice.” The groups said the allegations against Sereno in the impeachment proceedings “have put the entire Judiciary in disrepute, thereby affecting the honor and integrity of its justices, judges, officials and rankand-file personnel.” They also noted how the issues surrounding Sereno have caused tension among the 15-man High Tribunal. “Court officials have been pitted against each other resulting in a distressing atmosphere. This is aggravated by the fact that the Court en banc has taken cognizance of the petition

for quo warranto and ordered her to file her comment thereto, instead of dismissing it outright.” The joint statement said the SC “can no longer endure a prolonged environment of this kind.” “Its officials and personnel, truly dedicated and conscientious public servants, cannot go through another set of hearings and go against each other again at the Senate,” they explained The groups are urging Sereno to “not allow history to judge you as the first woman Chief Justice, and the youngest at that, to be removed from office.” Judges and court employees nationwide are expected to wear red in today’s flag raising to show their support for Sereno’s resignation. Sereno has repeatedly turned down calls for her to resign, pleading that she should be allowed to defend herself during the impeachment trial before the Senate. Sereno was earlier forced by her fellow magistrates to go on indefinite leave pending her impeachment trial to insulate the Judiciary against the impeachment proceedings against her in Congress, which is a political process. The SC has also acted on the quo warranto petition filed by Solicitor General Jose C. Calida last week, seeking ouster of Sereno from her post due to invalid appointment as chief justice in 2012. It ordered her to answer the petition in 10 days before deciding whether to give due course. Sereno is being accused of culpable violation of the Constitution, corruption, other high crimes and betrayal of public trust in the impeachment com-

plaint filed by lawyer Lorenzo Gadon. Gadon claimed that Sereno did not declare in her statement of assets, liabilities and net worth (SALN) the “exorbitant lawyer’s fees” of $745,000 (about P37 million). The impeachment complainant said the issue of SALN declaration is the strongest case presented against Sereno. Gadon also alleged that Sereno committed corruption when she, among other things, used public funds to: finance her extravagant and lavish lifestyle by ordering the purchase of a brand-new luxurious Toyota Land Cruiser 2017 model as her personal vehicle, amounting to more than P5 million, and stay in opulent hotels when attending conferences in the country and abroad. As to the alleged acts constituting high crimes, Gadon accused Sereno, among other things, of obstruction of justice by ordering the Muntinlupa judges not to issue warrants of arrest against Sen. Leila M. de Lima in connection with her drug cases and failure to report her high attorney’s fees and pay the appropriate taxes therefor, among others. On betrayal of public trust, the complaint alleged that, among other things, Sereno: hired an informationtechnology consultant with an excessive compensation without public bidding; sent a strongly worded but misplaced reply to President Duterte on the judges linked to drugs thereby inviting a head-on collision between the presidency and the Judiciary; and prevented the CA justices to undertake a courtesy call on Duterte.

Economy

A4 Monday, March 12, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

www.businessmirror.com.ph

Expedite review of unsolicited bids for Naia rehab, govt told

E

By Lorenz S. Marasigan

@lorenzmarasigan

MPHASIZING the government’s ability to fast-track the approvals process for unsolicited proposals, the consortium of the country’s seven largest conglomerates called on the government to immediately address offers to expedite the upgrade of the Ninoy Aquino International Airport (Naia). Naia Consortium Spokesman Jose Emmanuel F. Reverente noted that, under the implementing rules and regulations of the build-operate-transfer law, the government is allowed to hasten the approval of unsolicited proposals, such as the P350-billion offer of the group to rehabilitate and upgrade the Naia, the country’s “strategic national asset.” “The present approval process takes time, months to more than a year,” he said. “The government can expedite the approvals allowed under existing rules. That will be the best scenario.” Due to its nature, unsolicited proposals are required under law to go through several approvals processes, including a review from the implementing agency, and an evaluation from the several bodies of the National Economic and Development Authority (Neda). Under current rules, unsolicited proposals are also required to undergo a Swiss challenge, which essentially allows other groups to outbid the original proponent of the project. The original proponent, however, has the option to submit a counteroffer to win the challenge. The winner of the challenge will be determined after the Neda Board, currently chaired by President Duterte, evaluates the challenger’s offer, and the original proponent’s counteroffer. Hence, the process could go for as quick as six months to over a year, and as long as almost a decade, as in the experiences in the past. “Some steps in the process have

prescribed time periods, while some steps have no prescribed time periods in order to provide flexibility to government if the proposals require a longer time for a thorough evaluation,” he said. For Reverente, the government may opt not to maximize the prescribed time period for each process in order to hasten the project’s implementation. “There is so much riding on Naia’s upgrade, and this is one reason the seven conglomerates came together for this,” Reverente said. Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. make up the Naia Consortium. Naia Consortium’s P350-billion proposal involves expanding and interconnecting the existing terminals of the Naia, upgrading airside facilities, and the development of commercial facilities. Divided into two phases, the group’s proposal aims to increase the capacity of Naia to about 100 million passengers per year. It also plans to construct a people mover that will link Naia’s terminals to existing transport systems in Metro Manila. Actual work will take 24 more months for the first wave of immediate expansion. Further expansions are planned to meet projected passenger demand moving forward. “Once we complete our shortterm expansion and upgrading

plans, passenger convenience will be immediately felt. There will be more space for everybody, and that is just the first step,” Reverente said. More expansion will follow to meet the expected growth in tourism, business and the economy. In 2017 the four Naia terminals, designed to handle only 31 million, accommodated 42 million, he added. “By 2019 the projection is we will have 47 million passengers. And the Naia terminals will still have the same 31-million passenger capacity. So it is urgent for the country to get this project going because doing nothing as a result of a long approval process will set all of us back,” he said. He added: “But if we can have our first wave completed by, say, 2020, tourism can become so much stronger that it can be a third economic pillar after the BPO [business-process outsourcing] and OFW [overseas Filipino workers] remittances.” This is the first unsolicited offer that the government received from the private sector. Megawide Construction Corp. and partner GMR Infrastructures Ltd. separately submitted a shorter, more affordable offer, proposing to improve the capacity of the Naia in 18 years for only $3 billion. The multibillion-dollar offer is divided into several phases, of which the first six years of the operations would focus on the expansion of the existing terminals, the optimisation of the current runways and the capacity expansion of the whole airport complex. Immediately upon takeover, the group proposes to construct fulllength parallel taxiways for both runways, an additional rapid-exit taxiways for the primary runway, the extension of a second runway, and the provision of maximum aircraft stands. These solutions will increase airfield capacity to 950 to 1000 aircraft movements per day, a 35-percent increase on the current 730 aircraft movements daily. Within the first two years, the group will rehabilitate and expand the existing terminals.

DOF seeks Congress nod for other CTRP packages By Rea Cu

T

@ReaCuBM

he Department of Finance (DOF) is targeting to secure Congress’s approval for the remaining packages of its Comprehensive Tax Reform Program (CTRP) by the end of the year. During the Philippine Economic Briefing forum in Davao City last Friday, DOF Assistant Secretary Ma. Teresa S. Habitan bared that the DOF is eyeing for “Package 2 plus” to be ratified in Congress by December along with Package 3 and Package 4 of the CTRP. “And we count on your support on the succeeding packages to be heard by Congress this year,” Habitan told businessmen during her presentation at the forum. Package 2 plus includes measures tackling the increase in excise taxes on sin products, namely, tobacco and alcoholic products, mining, coal and casino operations. T he pro p o s a l to i nc re a s e excise tax rates on sin products like tobacco and alcoholic beverages is being targeted for Congress ratification by June 2018, while the the comprehensive mining tax and that of the removal of the value-added tax for coal and casino operations is being eyed for December. Package 2 of the CTRP, which aims to lower corporate incometax rates from 30 percent to 25 per-

cent, as well as harmonizing fiscal incentives, was submitted to Congress in January. Package 1B of the first package of the CTRP, which is now the Tax Reform for Acceleration and Inclusion (TRAIN) law, is being eyed for passage by the end of this month. “The Philippines grants the most generous tax incentives by giving them forever the GIE [gross income earned]. All other countries in the Asean impose a ceiling. This just proves that we have to revisit the way we do our incentives law,” Habitan said. Under the TRAIN, which was signed into law by President Duterte in December 2017, the lowering of personal income-tax rates was implemented including a number of offsetting measures, such as increasing taxes on fuel, expanding the taxpayer base and limiting VAT exemptions, among others. Under Package 1A, the increase in coal excise tax, which was originally proposed to be included in the DOF’s fifth package of the CTRP, was raised from the current P10 per metric ton to P50 per MT in the first year of implementation, P100 in the second year and P150 in the succeeding years. And the increase in tobacco excise tax rates was also included, from the current P30 per pack, it will be raised to P32.5 in the first half of this year and to P35 starting from

July 2018 to December 2019. Finance Secretary Carlos G. Dominguez III earlier bared that Package 1B tackles tax administration measures, as well as tax amnesty provisions and lifting of the bank-secrecy law. Package 3 of the DOF’s proposed CTRP tackles property taxation, with the goal of lowering the rate of donor’s and estate taxes, as well as the rate of transaction taxes on land. The offsetting measures include the rationalization of valuation of properties, or increasing valuation closer to market prices. The fourth package covers capital income taxation, which aims to reduce the taxes imposed on interest income earned on peso deposit and investments from 20 percent to 10 percent. Its offsetting measures include the harmonization of capital income-tax rates for dollar deposits and investments, dividends, equity and fixed income rates to 10 percent. It also includes increasing tax on stocks traded in the stock market from 0.5 percent to 1 percent on gross selling price. D OF Unde r s e c re t a r y K a rl Kendrick T. Chua bared last year that the DOF wants all tax-reform packages approved before 2019, which is an election year. Packages 3 and 4 of the CTRP have yet to be submitted to Congress.

A Worker collects, carts at the dilapidated Ninoy Aquino International Airport. Dondi Tawatao/Getty Images/

Strengths, weaknesses and opportunities

T

he British Council recently profiled the creative industries of the Philippines and came up with two very interesting segments: the SWOT (strengths, weaknesses, opportunities and threats) analysis for this exciting sector with so much potential. I have picked up some ideas that I would like to share with you:

What are the strengths? Talent:

The availability of a large, skilled, creative and educated work force, with close familiarity with Western culture andproficiencyintheEnglishlanguage. Their talent and passion for creativity is internationally recognized, and creates an “assurance” or a trademark of good performance (in the case of performance arts), superior quality and design. Some hubs and clusters are generating value, energy and exchange; and emergentcreativedistrictsinarea,such as Makati, Quezon City and Cebu, are offering a mix of fine grain and historical and industrial buildings that, with the right enabling conditions, could be very attractive to creative businesses.

Coordination and leadership:

Clear commitment to partnership and reform from key government departments and agencies and a shared commitment to improving baseline mapping, piloting targeted research and development activities, and building effective governance structures and investment models as witnessed in leading creative economies globally.

The weaknesses? Costs:

High production costs—e.g., utility costs, licensing and equipment, professional fees and travel across a distributed geographic area. High market entry costs for certain types of creative activity—e.g., film and some elements of gaming­—the gap from ideation to development and distribution is very large without significant investment. Distribution issues—e.g., copyright infringement, poor Internet connectivity beyond the main cities and the diseconomy of congestion/ poor public transport.

Underdeveloped collaboration:

The creative industries sit across several government departments and agencies without clear ownership and a lack overall of policy literacy. There is also a disconnect in governance and development between arts and cultural sectors and the commercial creative industries, even though there are multiple interdependencies in the ways businesses and organizations operate across shared value chains. It is encouraging to see, though, that both the government and the private sector are making strong efforts to get their act together, as demonstrated during the recent Arangkada Philippines Roundtable on Creative Industries. Weak local and/or foreign market collaboration. Creative originators and manufacturers have struggled to collaborate and establish business relations with other relevant local and international companies.

Weak national brand/positioning:

The Philippines lacks a consistent

ment of a national dedicated creative economy program/policy.

People (education and skills):

creative philippines By Henry Schumacher and focused country brand and culture, and the creative industries do not feature strongly in tourism, inward investment or even soft power activities. A strong creative brand underpinned by genuine sectordevelopment activities, can be positively impactful on inward investment, tourism, talent attraction and retention. Let’s hope that “Creative Philippines” will be adopted!

Investment:

IN part, an outcome of a lack of good quality data, the investment landscape for the creative industries is fragmented, with little coordination between grant-giving bodies and negligible coherence between grants, microfinance, debt and equity programs. Low levels of investment readiness and investor readiness are compounded by the imperfections of these supply-side aspects. After we have looked at some strengths and weaknesses of this emerging industry, let’s focus on the opportunities the sector has. The good news is that the sector leaders are determined to make this sector big, demonstrated by one of outcomes of the Arangkada Philippines Roundtable. The Design Center’s recent Creative Industries Road Map sets out a vision that works well and could be adopted for future strategic development purposes: “A major creative hub in the AsiaPacific, with strong and thriving creative industries supported by a pool of world-renowned Filipino talent, imbued with the passion to innovate goods and services that showcase the best of the Philippines, using new and emerging technologies.”

Growing market:

Rising per-capita incomes, advances in modern technology, and increasing international demand for creative goods and services are catalysts of growth of The Philippine Creative Industries. The increase in real per-capita income worldwide and a growing middle class in the Philippines is a significant contributor to growth. Digitalization is also enabling the development of new markets. Given the large pool of graduates from nursing, computer science, marketing, accounting, legal and medical fields, there is a huge possibility for the Philippines to penetrate and step up to the knowledge-intensive, higher value-added segment of the businessprocess outsourcing industry, in particular animation, game development and information-technology-enabled creative services.

Leadership:

The Creative Industries can be positioned as a higher priority sector by the Neda, with the eventual establish-

With a coordinated approach to creative education and skills across the country it should be possible to develop a set of creative entrepreneurship and management activities with higher education institutions; and mobilizing professional development and skills activities for existing creative businesses and cultural organizations. Priority areas could include: Intellectual property (IP) literacy—building confidence and capacity to monetize IP, collaborate and move toward more effective value retention (e.g., licensing rather than selling film content to broadcasters). Entrepreneurship and management—focused on the “millennials”—younger entrepreneurs specializing in the short format (e.g., gaming, APPs), contemporary designer-makers, theater producers, etc.—i.e., the talent that is under-nurtured and at risk of leaving the Philippines. Technical skills that retain traditional crafts and approaches to visual and performing arts while opening them up to new influences —with a focus on contemporary markets and export. Audience development: a national program of championing and celebrating diverse cultural programming—supporting smaller organizations to produce new work and reach new audiences.

Investment and support:

With a growing cohort of creativeentrepreneurs,theopportunity exists to develop a more effective support environment. This should include a program of specialist business support for creative micros and small and medium enterprises (e.g., pilot activities in the cities); B2B network activities; and targeted investment-readinesssupport.Thisshould include a focus on nurturing appetite for sector investment from the commercial banks (e.g. looking at options for IP as collateral); scoping research and development investment; the effectiveness of tax incentives and tariffs; and on growing business angel appetite in the creative industries.

Place:

The creative industries can play a transformational role in the quality and competitiveness of cities and regions across the Philippines. There are opportunities to nurture significant cluster developments across the country. This should include a strategic development push where there is already appetite­— e.g., Cebu. But it should also focus on Greater Manila as a regionally, even globally significant cluster. There is no doubt in my mind, that the Arangkada Philippines Roundtable set the stage to make Creative Philippines happen, taking the SWOT analysis and the opportunities highlighted in the Report of the British Council into consideration. Comments are welcome. Contact me at Schumacher@eitsc.com.

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Editor: Jennifer A. Ng • Monday, March 12, 2018

A5

PHL rice stocks fall to 5-month low By Jasper Emmanuel Y. Arcalas

P

@jearcalas

hilippine rice inventory as of February 1 fell to its lowest in five months due mainly to the depletion of the National Food Authority’s (NFA) stockpile, according to the latest data from the Philippine Statistics Authority (PSA).

Data from the PSA showed that the country’s rice stocks declined by nearly 22 percent to 1.795 million metric tons (MMT), from 2.296 MMT recorded in February 2017. The rice inventory during the period was the lowest since September 2017, when it reached 1.422 MMT, PSA data showed. The PSA said the total rice inventory as of February 1 was sufficient for 53 days. The NFA’s rice stockpile as of February 1 plunged to its lowest level in two decades. It also declined by 86.8 percent to 61,400 MT, from the previous year’s 465,260 MT. Data from the PSA showed that nearly 89 percent of the food agency’s buffer stock was comprised of imported rice. “Year-on-year, rice stocks inventory level dropped in the households, commercial warehouses and NFA depositories by 5 percent, 5.74 percent and 86.8 percent, respectively,” the

PSA said in its monthly report titled, “Rice and Corn Stocks Inventory,” published recently. “With reference to the previous month’s rice stocks inventory level, a decrease of 17.93 percent was observed in the households, 24.58 percent in commercial warehouses and 42.54 percent in NFA depositories,” it added. Of the total rice inventory as of February 1, about 60.58 percent were from households, 36 percent were held by commercial warehouses and 3.42 percent were in NFA depositories, according to the PSA. The total volume of rice held by households during the period reached 1.087 MMT, while those in the commercial warehouses amounted to 646,560 MT. The government periodically monitors rice inventory to determine whether it would need to im-

port the staple to boost local stocks. During the period, PSA data also showed that total corn-stock inventory stood at 410,300 MT, 6.65 percent lower than the last year’s record of 439,570 MT. The corn-stock inventory as of February 1 declined by more than half from the 951,600 MT recorded in January. The PSA said the bulk of cornstock inventory in February, or 81.84 percent, was in commercial warehouses, while households accounted for 18.06 percent. NFA depositories accounted for a mere 0.10 percent. Corn stocks in commercial warehouses amounted to 335,820 MT, 74,120 MT in households and 390 MT in NFA warehouses. “Corn stocks both in the households and NFA depositories decreased in comparison to their levels in the previous year. Stocks dropped by 51.27 percent in the households and 83.56 percent in NFA depositories. However, an increase of 17.79 percent was recorded in commercial warehouses,” the report read. “Compared with the previous month, corn-stocks inventory level in all sectors decreased. Stocks dropped by 1.16 percent in the households, 61.67 percent in commercial warehouses and 9.07 percent in NFA depositories,” it added. The PSA sources its data for the rice inventory held by household from its monthly Palay and Corn Stocks Survey, which covers

US Agriculture Secretary: Trump tariffs not as bad as feared

F

A RGO, Nor t h Da kota— Agricultural Secretary Sonny Perdue said last Friday that while he’s as anxious as farmers are about President Donald J. Trump’s new tariffs, the move doesn’t look as bad as he originally thought. Perdue said during a trip to meet with representatives of North Dakota’s agricultural sector that Trump’s decision to enact a 25-percent tariff on imported steel and a 10-percent levy on aluminum looks better in the final version than it did when first announced. He joked with farmers in Iowa earlier this week that one option for farmers who fear a trade war may be to pray. “I was very concerned last week with the surprise announcement on the steel and aluminum tariffs, as most people in the White House were,” Perdue said during a news conference at North Dakota State University. “But we hope to turn it into a positive. This president has the unique ability to turn some things that we think are initially negative into positives.” Perdue says the f ina l version looked much better because Canada and Mexico were excluded, which he believes could spark discussions on improving the North American Free Trade Agreement (Nafta). He said he will be on edge until Nafta is recertified and re-

farming and nonfarming households nationwide. The survey, which is done in the first four days of the month, covers all provinces except Batanes. Meanwhile, the data on commercial stocks are sourced from registered grains businessmen through the Commercial Stocks Survey, conducted by the NFA, the results of which are submitted to PSA. NFA stocks are monitored from their warehouses/depositories, according to the PSA.

‘Aggressive palay buying’

To beef up its stockpile, the NFA said over the weekend that it is ready to compete with private traders for local palay during the summer crop harvest from March to May. NFA Administrator Jason Aquino said in a statement that the food agency will focus all its logistics, funds and personnel on aggressive palay buying as harvest starts to peak in some areas. As early as January, palay procurement funds had already been remitted to areas expected to start harvesting earlier than the others. These include Iloilo, Aklan, Bukidnon, La Union, Bulacan, Pampanga, Bataan, Batangas, San Jose and Mamburao in Mindoro Occidental, Sultan Kudarat, and other areas in Mindanao. The agency attached to the Office of the President said it plans to deploy mobile procurement teams in far-flung areas to buy paddy directly

authorized and the United States addresses trade issues with its key importers. Agriculture producers receive 20 cents out of every dollar from exports. Perdue heard from about 20 farm representatives last Friday, most of whom didn’t pass the microphone until saying something about trade. Mark Martinson, a durum wheat farmer in northeastern North Dakota, said the US cannot risk losing “China, Indonesia, all those markets.” In addition to Trump backing off on Canada and Mexico, Perdue was relieved the president

indicated he was willing to work with Europe and other US allies on improving trade. Canada and Mexico are two of the largest suppliers of agricultural products to the United States, according to Commerce Department figures. In 2016 the US imported $22 billion in agriculture products from Canada and exported $23 billion; the US imported $23 billion from Mexico and exported $18 billion. The European Union, meanwhile, said it is putting together a list of agricultural products it plans to target for tariffs as retaliation to the United States. AP

organizations an additional P0.30 per kilogram is given as cooperative development incentive fee. Effectively, the NFA said its palay buying price ranges from P17.70 per kg to P18.00 per kg. During year-round Ugnayan meetings with farmers and local government officials, NFA reminds them that in selling palay to NFA, an individual farmer only needs to secure a passbook to prove that he is a legitimate farmer. The passbook is given free of charge. Also, the NFA said a farmer needs to submit an information sheet with identification picture, and certification from the barangay captain, municipal agriculturist, municipal agrarian officer or national irrigation administration where his farm is located. For farmer organizations, a master passbook must be secured by submitting their certificate of registration, assembly resolution and master list of members. But even without a passbook, a farmer can still sell his produce to the NFA up to 200 bags for the first time. Farmers may also deliver more than their marketable surplus provided there is a certification on the volume of their harvest from the municipal agriculture officer. For 2018, NFA targets to buy 6 million bags of palay, equivalent to 300,000 MT, to boost the government’s buffer stock and rice distribution requirements.

Government grants land titles to 997 Zamboanga farmers

T

Perdue (AP Photo/Susan Walsh, File)

from farmers. They are instructed to buy even freshly harvested or wet palay based on the respective drying capacities of each NFA provincial and regional office. Almost all NFA provincial offices and half of its buying stations across the country have mechanical driers and solar drying facilities. All NFA buying stations will also be opened and utilized during the whole harvest period. Procurement personnel shall be required to render overtime work if necessary, Aquino said. “Historically when harvest peaks, ex-farm prices go down, though minimal, during the summer crop because this is the season when farmers produce better quality palay than during the wet crop so traders also buy aggressively,” Aquino said. “Farm-gate prices may go down as rice from the private sector’s minimum access volume imports start to be released in the market. When that happens, the NFA shall seize the opportunity to also aggressively buy local harvest,” he added. Aquino said the NFA has made it easier for famers to sell their palay to the agency by simplifying its procedures and payment scheme. In less risky areas, NFA will pay palay deliveries in cash on the same day. NFA buys palay at P17 per kilogram (kg) clean and dry with an additional P0.20 per kg drying incentive and P0.20-P0.50 per kilogram delivery incentive. For farmer

he Department of Agrarian Reform (DAR) announced it recently issued certificate of land ownership award (CLOAs) to 997 landless farmers. The CLOAs were handed over to the beneficiaries as proof of land ownership during a simple ceremony at the Cultural and Sports Center in Dapitan City, Zamboanga, on March 9. The distributed lands covered some 1,595 hectares in the provinces of Zamboanga del Norte, Zamboanga Sibugay and Zamboanga del Sur. Agrarian Reform Secretar y John Castriciones, together with other DAR top officials, also turned over various rural infrastructure and livelihood projects worth P404 million. “The CLOAs are just the first step toward more support from the government. We will follow President Duterte’s national goal of improving the economic lives of our farmers by pouring various support services to farm communities,” Castriciones said in a statement. “My marching order from our

President is to help our poor farmers and to fight for their rights,” he added. The projects are expected to benefit at least 10,000 farmers, including around 23,000 households in the Zamboanga Peninsula. Also turned over were 13 farmto-market roads, two communal irrigation systems, and one 28.8 linear meter bridge. “These infrastructure projects would greatly help our farmers, especially the roads and bridge which would ease farmers’ travel from farm to the market centers. The two irrigation systems would boost their farm yield,” he said. DAR Regional Director Julita Ragandang said that under the DAR Partnership Development Projects, the department will construct processing centers for handicrafts like abaca mat-weaving centers and community-managed potable water supply, sanitation and hygiene (CPWASH). “These processing centers is where the farmers who are mostly women, conduct their livelihood projects of mat-weaving and make handicrafts out of abaca to sell

for additional family income,” Ragandang said. “ The CPWASH will be constructed to provide potable water to remote farming communities,” she added. Other top DAR officials present during the CLOA distribution and turn-over of projects include DAR undersecretaries Luis Pangulayan of Legal Affairs Office, Karlo Bello of Field Operations Office, Rosalina Bistoyong of Support Services, David Erro of Policy and Planning Office, Bernie Cruz of Special Concerns Office and Public Assistance and Media Relations Service Director Leomides R. Villareal. Land Registration Authority Administrator Renato Bermejo was also present during the distribution ceremony. T he loca l officia ls present during the event include Dapitan City Mayor Rosalina Jalosjos and representatives from the departments of the Interior and Local Government, Environment and Natural Resources, and the National Irrigation Administration. Jonathan L. Mayuga

Banking&Finance BusinessMirror

A6 Monday, March 12, 2018 • Editor: Jun B. Vallecera

Govt debt payments in 2017 reached ₧680.466B–BTr By Rea Cu

@ReaCuBM

T

he national government has made debt payments amounting to P680.466 billion for 2017, with amortization payments outpacing interest payments by 19.1 percent, data from the Bureau of the Treasury (BTr) showed.

Based on BTr data, the P680.466 billion disbursement for debt payment for 2017 is 13.8 percent lower than the P789.965 billion appropriated for debt servicing in 2016. Broken down, amortization payments for the year amounted to P369.926 billion, which contracted by 23.8 percent, from P485.511 billion in amortization payments in 2016. Interest payments

for the year reached P310.541 billion, up 1.9 percent, from P304.454 billion year-on-year. Domestic amor tization pay ments amounted to P229.392 billion, down 26.4 percent, from P311.875 billion in 2016; while amortization payments made to offshore entities amounted to P140.534 billion, which also declined by 19 percent, from P173.636 billion year-on-year.

For interest payments made to local institutions, the government disbursed P210.476 billion, up 2.4 percent, from P205.426 bil lion the prev ious year; while those made to offshore accounts totaled P100.065 billion, which rose 1 percent, from P99.028 billion in 2016. Earlier, the Duterte administration’s economic managers said that an 80:20 borrowing mix will be implemented for 2018, with 80 percent of the borrowings coming from local institutions and 20 percent from foreign entities. From the government’s programmed g ross bor row ings of P888.1 bi l l ion for 2018, P711.8 billion will be domest ic a l ly sou rced a nd P176. 3 bi llion will be borrowed from external sources. For 2017 the government’s total gross borrowings amounted to P901.672 billion, surging 77.84 percent, from P507.02 billion in 2016. Gross domestic borrowings amounted to P733.569 billion, while total external borrowings reached P168.103 billion.

www.businessmirror.com.ph

ADB investments in Mindanao reflect its commitment to country’s inclusive growth

PHL women entrepreneurs in Mastercard top 10 index By Cai U. Ordinario @cuo_bm

T

he Philippines is the only middleincome country in the top 10 of the Mastercard Index of Women Entrepreneurs in 2018. The Results of the Mastercard Index of Women Entrepreneurs (Miwe) showed that the Philippines ranked ninth out of 57 countries, with a score of 68 points in the index. The country, however, is the second Southeast Asian nation in the top 10, since Singapore ranked fifth overall, with a score of 69.2 points. “The Index results suggest that women entrepreneurs appear to thrive better in wealthy and more developed economies, such as New Zealand, Sweden, Canada, the United States and Singapore, where the component scores for women’s advancement, women’s knowledge assets and financial access, and supporting entrepreneurial conditions are higher,” the report stated. “There are some exceptions to the trend, with lower-middle income markets Philippines and Vietnam surprising with higher-than-expected Miwe scores of 68 and 65.5, and rankings of nineth and 18th, respectively,” it added. However, the Philippines’s overall ranking and score was slightly lower than its performance in the Miwe in 2017. Data showed the country’s ranking slipped by two notches, from last year’s seventh place, while its score slipped by 1 percent, from 68.5. The decline was mainly due to the twonotch retreat of the Philippines in the Supporting Entrepreneurial Conditions and in Knowledge Assets & Financial Access component of the Miwe. T he Phi l ippines sl ipped t hree notches in the Supporting Entrepreneurial Conditions component of the

Miwe to 36th in 2018, from 33rd in 2017, while it slipped two notches in t he K nowledge A sset s & Fi n a nc i a l Access component to 12th in 2018 from 10th in 2017. “Entrepreneurship is seen as a ticket to opportunity for women, as shown in markets like Philippines [68, nineth], Botswana [66.5, 14th], Thailand [65.8, 15th], Poland [65.4, 19th] and Costa Rica [65, 20th],” Mastercard said. “Although supporting conditions for entrepreneurs in these markets are not as conducive, they have a strong representation of female business leaders, professionals and technical workers, a vibrant local entrepreneurship landscape, and high regard for the status of successful entrepreneurs,” it added. Overall, the Index indicates that budding and established women entrepreneurs around the world continue to progress despite gender-related cultural biases that can create significant roadblocks hindering them from advancing their businesses. The Index tracks the progress and

achievement of women entrepreneurs and business owners across 57 markets spanning five geog raphic reg ions— A si a Pac i f ic, Eu rope, L at i n A mer ica, the Middle East and Africa and North America. “Women entrepreneurs have made remarkable strides as business owners around the world, even as they work to achieve their full potential. We believe that, by drawing attention to their efforts, we can further support and empower women in their drive to run successful businesses and lead richer, more fulfilling lives,” said Martina Hund-Mejean, CFO, Mastercard. The Index indicates developed markets with strong enabling conditions are not immune to cultural bias against female entrepreneurship. In New Zealand, results revealed that the society is less receptive toward female entrepreneurs. Despite these circumstances, women business owners in New Zealand have risen above the challenge, pulling their market to the top—and for the second year running.

Case clippings

By Justice S J Ranada Jr. EXPROPRIATION–Computation of legal interest In expropriation cases, legal interest shall run not from the date of filing of the complaint but from the date of the issuance of the writ of possession, since it is from this date that the fact of the deprivation of the property can be established. The interest rate should be 12 percent per annum from the date of the taking, and 6 percent from July 1, 2013, until fully paid, per BSP-MB Circular 799. Republic v. Macabagdal 10 Jan. 2018

GR 227215 Perlas-Bernabe, J

The Laguindingan Airport tower. At least P14.6 billion will be spent for the airport’s modernization. FILE PHOTO

T

he Asian Development Bank (ADB) said the investments it made in Mindanao reflect the bank’s commitment to remain as key partner of the Philippines in achieving its inclusive growth agenda. In a news conference in Davao last Friday, Woochong Um, secretary to the ADB Board of Governors, said: “Over the years, ADB has been involved and committed in helping Mindanao grow and prosper. And we are here to continue our assistance to this important region. Rest assured, ADB stands ready and able to help the Philippines in the coming years.” Finance Secretary Carlos G. Dominguez III, who chairs the ADB Board of Governors this year, pointed out that the Philippines is suitably positioned to host this year’s ADB Annual Meeting as its agenda of greater financial inclusion in the Asia-Pacific region is in line with the Duterte administration’s vision of high and inclusive growth. He added that five of the Duterte administration’s f lagship infrastructure projects already approved by the National Economic and Development Authority Board, which is chaired by President Duterte, are in Mindanao. These include the P5.4-billion Malitubog-Maridagao Irrigation Project Phase 2 in North Cotabato and Maguindanao, which is expected to service 10,000 hectares of land in 56 conflict-affected areas; the P4.86-billion Panguil Bay Bridge project that will connect Tangub City in Misamis Occidental and Tubod, Lanao del Norte, for completion in 2021; the expansion and improvement project of Davao International Airport worth

P40.57 billion; as well as improvements in the Laguindingan Airport worth P14.6billion, both for completion in 2025; and the 102-kilometer Mindanao Railway Project Phase 1, Segment 1 worth P35.26 billion that will connect Tagum, Davao City and Digos. In 2017 ADB approved $1.08 billion worth of loans to the Philippines, a record high. One of the projects approved was the $380-million Improving Growth Corridors in Mindanao Road Sector Project. About 3,000 delegates from all over the world will attend the high-profile event from May 3 to 6 in Manila. It carries the theme “Linking People and Economies for Inclusive Development.” The country’s hosting of the ADB Annual Meeting is timely, as the government has lined up massive infrastructure projects in Mindanao. “These projects demonstrate the administration’s commitment to move Mindanao from the margins, making it a center for agriculture and industry,” Dominguez said. Among the issues to be discussed during the 51st meeting are globalization, jobs in Asia, financial technology, private-sector mobilization in terms of funding infrastructure, building resilience to climate change, expanding opportunities for women entrepreneurs and tapping technology to maximize the skills of aging populations and utilizing it as an effective tool to make development inclusive. Dominguez said the institution will focus on how to “make progress more evenly felt throughout the entire membership of the ADB.” Rea Cu

Perspectives Changing taste buds and healthy priorities: Will leisure look to health and wellness for growth?

I

t’s no secret that consumer tastes and preferences are changing. This becomes particularly prevalent at the start of the year when the “new year, new me” mentality kicks in, and consumers’ focus turns to achieving their New Year’s resolutions. However, what was once a January resolution to eat well, keep fit and stay healthy has extended to a lifestyle choice for many consumers across generations. Some 55 percent of Americans say that they lived a healthier lifestyle in 2017 compared to 2016, and 45 percent say that they made significant changes to improve their health. The global wellness industry was a $3.7-trillion market in 2015, and is still

gaining tremendous momentum today. This is due to a convergence of factors, including the size of the aging baby boomer population, longer life spans, greater access to information by consumers, higher discretionary spending on wellness products and experiences that help consumers to feel good. Millennials are now the largest segment of the population with a heightened focus on living in the present, and are using their purchasing power on experiences that they can share, v i a so c i a l - me d i a pl at for m s, w it h their networks. With health and wellness increasingly in the spotlight for many consumers, it is important to consider how these

preferences and desires for a healthier lifestyle influence their decisions to eat out (or not), travel and, ultimately, create brand preference and loyalty.

Is M&A the new R&D?

Large consumer packaged goods (CPG) companies are seeking new product streams to stay relevant, shifting their portfolios toward a greater focus on health and wellness due to the demand for healthy and organic products. This is forcing them to reshape their portfolios to expand into this fast-growing segment and create new brands that meet the “authentic” criteria desired by consumers. Innovation, on the other hand, is a slower process; in addition to com-

ing up with new products, these large conglomerates are speeding things up through merger and acquisition (M&A) activities. The United States casual-dining sector has had high M&A activity for the past few years due to its potential for high returns, and it is predicted that this trend will continue throughout 2018. Additionally, international buyers have been lured into this space because it is less exposed to disruption, particularly in the United Kingdom and other countries, where organic growth is harder to come by—M&A can drive inorganic growth instead. Consolidation and restructuring could continue as a key theme for the next few years as the

growth hubs shift to the US and China. The article “Changing taste buds and healthy priorities: Will leisure look to health and wellness for g rowth? ” by Rob Ernst, KPMG in the US, was taken from the publication, entitled Leisure Perspectives. © 2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines For more information on KPMG in the Philippines, you may visit www.kpmg. com.ph.

AseanMonday BusinessMirror

www.businessmirror.com.ph

Monday, March 12, 2018 A7

Rohingya in ‘no man’s land’ insist they will stay

A

LONG the BangladeshMyanmar border—From their home, a tent hastily erected in a grassy field, the young Muslim Rohingya couple can see the village they left behind last year, fleeing attacks by Buddhist mobs and Myanmar security forces.

They arrived in a “no man’s land”—one of the small, ill-defined areas that exist at the cloudiest edges of the borderlands, places that seem to be neither Myanmar nor Bangladesh. While nearly every other Rohingya refugee who crossed the border has sought protection in the immense camps a few miles deeper into Bangladesh, these people say they will go no farther. “My ancestors’ graves are there,” said Abdul Naser, gesturing toward his village, less than 100 meters away. “Sometimes, I walk close to the barbed wire fence and touch my land, and I cry in the dark.” But a few weeks ago, things changed. Myanmar deployed more soldiers to the border, some of whom began coming to within 10 meters of the refugees’ homes. They shout insults at the Rohingya, and they throw empty whiskey bottles, the refugees say. They have set up speakers that blare announcements, insisting people go farther into Bangladesh. Because to Myanmar, no man’s land doesn’t exist at all. “We cannot accept the term no man’s land because that is our land,” said Nyan Myint Kyaw, Myanmar’s deputy commander of the border police.

Shifting rivers may have washed away some border markers, he says, and fences may not have been erected everywhere. But he insists the 6,000, or so Rohingya who think they live between the two countries are actually living inside Myanmar. It is easy to get confused on the border, where many areas are not marked at all and where it’s sometimes unclear if a fence marks someone’s personal land, or if it demarcates the frontier. Making things more complicated, Myanmar places its border fences 45 meters from the actual boundary line. While Myanmar insists all the hazy territory is their land, its security forces—as well as Bangladesh security forces—are also very careful to avoid entering places seen as a no man’s land, presumably fearing accidental clashes and diplomatic trouble. Myanmar says the additional soldiers were deployed to stop possible cross-border attacks by Rohingya militants, though no such attacks are known to have occurred. When Bangladesh protested the deployments, Myanmar dismissed their complaints. “This is not like we are trying to

Rohingya Muslims living in “no man’s land” collect water donated by Bangladesh Red Crescent members, near Cox’s Bazar’s Tombru area, on September 4, 2017. Some 6,000 Rohingya Muslim refugees, who fled attacks in Myanmar last year, live at the edges of the border with Bangladesh. AP/Bernat Armangue

My ancestors’ graves are there. Sometimes, I walk close to the barbed-wire fence and touch my land, and I cry in the dark.”—Naser invade Bangladesh,” Myanmar Spokesman Zaw Htay said in early-March. “These are only actions taken against the terrorist groups.” The Rohingya have long lived at the ragged fringes of life in Myanmar, denied citizenship and many of the most basic rights. They are derided as “Bengalis,” and many in Myanmar believe they are illegal migrants from Bangladesh. Muslims in an overwhelmingly Buddhist nation, most live in poverty in

Myanmar’s Rakhine state, next to Bangladesh. The most recent problems began in August, when Rohingya insurgents launched a series of unprecedented attacks on Myanmar security posts. Myanmar responded with overwhelming force, burning Muslim villages with the help of Buddhist mobs, raping women, looting homes and carrying out massacres. Some 700,000 Rohingya fled the attacks into Bangladesh. Aid groups

Heavy competition rocks Thailand’s elephant polo Hua Hin but now in the capital, Bangkok—they have raised almost $950,000 for projects benefiting Thailand’s elephants, “including housing for the mahouts and families, shelters for the elephants and a mobile blood centrifuge and elephant ambu-

Polo players behind mahouts sit astride each elephants as they vie for the ball during the King’s Cup Elephant Polo tournament in Bangkok, Thailand, on March 8. The annual elephant polo charity event raises funds for projects that better the lives of Thailand’s wild and domesticated elephant population. AP/Sakchai Lalit

T

he action was hot and heavy—especially heavy—as competition began last Thursday in Thailand’s King’s Cup Elephant Polo tournament, a quirky charity event whose proceeds benefit the beasts who are the games’ stars. The game deviates from standard polo in several aspects, besides the mounts weighing upward of 2,200 kilograms. Two people—the player and a mahout, or trainer, sit astride each elephant. The mallets are about 2 meters long, and women are allowed to use both hands to wield them.

Elephants are the de facto national animal of Thailand, and for a time even adorned the country’s flag. But in the past few decades, they have fallen on hard times, as deforestation has deprived them of a habitat where they can roam wild and led to massive unemployment in logging, the sector where tamed elephants could once earn an honest living. The tournament’s organizer, a Thaiowned international hotel chain, say that since the games began in 2001— originally in the seaside resort city of

Malaysia disagrees with IMF over currency mgt

M

alaysia, which defied the advice of the International Monetary Fund (IMF) during the Asian financial crisis two decades ago, is again disagreeing with the agency over how to manage its currency. This time, it’s about a crackdown in the offshore trading market. In its annual Article 4 report on Malaysia, the IMF said the measures contributed to capital outflows, while authorities say they succeeded in curbing volatility and improving the efficiency of the onshore market. The government disagreed with recommendations from IMF staff to phase out the measures. “We continue to have strong concern on the Fund’s inflexibility to be receptive and open to new approaches and policy

instruments needed to maintain stability and promote financial market development,” Juda Agung, an IMF executive director representing Malaysia along with other Southeast Asian countries, said in the report. “Our authorities are also deeply concerned with staff’s lack of understanding of the domestic context which can diminish the Fund’s role as trusted adviser,” he said. A statement from IMF directors accompanying the report was more balanced, with some of them calling for the measures to be phased out, while a few said there should be more support for the government’s approach. Overall, the directors commended Malaysia for its fiscal and monetary policies, which have helped to underpin the economy’s strong performance since last year. Bloomberg News

lance for the Thai Elephant Conservation Center.” The playing beasts can count on a special treat after each match, sugar cane or a nutritious mix of molasses and rock salt in rice balls, to replace depleted vitamins and minerals. AP

say more than 6,700 people were killed. The United Nations refugee agency has appealed for protection for the borderland Rohingya.

The agency “is concerned about the safety of a group of vulnerable Rohingya women, men and children from Myanmar, who have been living in a so-called no man’s land,” the agency said in a statement. “People who have fled violence in their country must be granted safety and protection.” But is the no man’s land inside Myanmar? Even the Rohingya say some of it probably is, though there are plenty of places where even border guards aren’t sure where to find the dividing line. A Rohingya community leader says most of the 6,000 in the borderlands are from nearby villages. “They do not want to leave the place or enter Bangladesh, hoping that they will go back one day and it will be easier to move from here,” Dil Mohammed said. The young Rohingya couple agreed with him. They want to keep their village in sight. Or at least what’s left of it. “My trees are still there,” said Naser’s wife, 20-year-old Ruksana Begum. “It’s spring now. I can see the green leaves of my mango trees. They have burned our homes, but my trees are still growing.” AP

A8

The World

Monday, March 12, 2018 • Editor: Lyn Resurreccion

BusinessMirror

www.businessmirror.com.ph

With snap ‘yes,’ Trump rolls dice on N. Korea

W

ASHINGTON—Summoned to the Oval Office on the spur of the moment, the South Korean envoy found himself face-to-face with President Donald J. Trump one afternoon last week at what he thought might be a hinge moment in history. Chung Eui-yong had come to the White House bearing an invitation. But he opened with flattery, which diplomats have discovered is a key to approaching the volatile American leader. “We could come this far, thanks to a great degree to President Trump,” Chung said. “We highly appreciate this fact.” Then he got to the point: The United States, South Korea and their allies should not repeat their “past mistakes,” but South Korea believed that North Korea’s mercurial leader, Kim Jong Un, was “frank and sincere” when he said he wanted to talk with the Americans about giving up his nuclear program. Kim, he added, had told the South Koreans that if Trump would join him in an unprecedented summit meeting, the two could produce a historic breakthrough. Trump accepted on the spot, stunning not only Chung and the other high-level South Koreans who were with him, but also the phalanx of US officials who were gathered in the Oval Office. The officials thought the president would take more time to discuss such a decision with them first.

Defense Secretary Jim Mattis and Lt. Gen. H.R. McMaster, the president’s national security adviser, both expressed caution. If you go ahead with this, they told Trump, there will be risks and downsides. Trump brushed them off. I get it, I get it, he said. Where others see flashing yellow lights and slow down, Trump speeds up. And just like that, in the course of 45 minutes in the Oval Office, Trump threw aside caution and dispensed with decades of convention to embark on a daring, highwire diplomatic gambit aimed at resolving one of the world’s most intractable standoffs. The path to a possible meeting led through a thicket of hostility and feints. Throughout his first year in office, Trump ratcheted up economic sanctions while rattling his nuclear saber at “Little Rocket Man” and threatening to “totally destroy North Korea.” Kim could match the president he called “the mentally deranged US dotard” bombast for bombast. In a New Year’s Day speech, he said he had “a nuclear button

Syrian troops cut major roads in suburbs of Damascus

B

EIRUT—Syrian government forces succeeded last Saturday in their deepest push yet into the eastern suburbs of the capital Damascus, cutting off a major highway that made it hard to move between three parts of the rebelheld area, and inflicting a major blow to opposition fighters who have vowed not to surrender. Syrian state media and an opposition monitoring group said government forces have laid siege on the rebel-held town of Harasta, cutting it off from the rest of the suburbs known as eastern Ghouta. Britain-based Syrian Observatory for Human Rights said government forces have also cut off the main highway that links northern Ghouta with its southern parts, isolating the town of Douma, the largest in the area. The government-controlled Syrian Central Military Media (SCMM) said troops captured the Kilani gas station on the main highway linking Douma with Harasta and those two areas with the rest of eastern Ghouta. Residents will have to rely on unpaved roads to move in eastern Ghouta but that is difficult because of the intensity of shelling and airstrikes, activists said. “The regime has cut Ghouta into three parts by cutting the main roads linking them,” the observatory’s chief Rami Abdurrahman said. The government and its Russian backers, determined to wrest eastern Ghouta from rebel control after seven years of war, recently intensified the shelling and bombardment to clear the way for its troops to advance on the ground. Nearly 1,000 people have been killed in the past three weeks of relentless bombardment. SCMM said troops last Saturday reached the center of the town of Misraba, adding that opposition fighters are crumbling amid the offensive. Syrian state TV aired live

footage from inside the town and said that troops are less than a kilometer from troops on the western side. Reaching them would physically cut northern parts of eastern Ghouta from its southern parts. “The Syrian Arab Army soldiers marching from three sides could meet soon,” said Rabih Dibi, a reporter with state-run Ikhbariyah TV in his report from Misraba. TV footage later showed dozens of men, women and children crowded in an underground basement in Misraba after troops captured the area. The TV station said authorities would move the nearly 60 people to a safe location where they will be given shelter and food. “Once you came in we felt well,” said one of the women in the basement. Another man said there were 15 families in the basement who have been hiding for days. Ikhbariyah reported that government forces and their allies captured farms outside the village of Aftris and are now marching toward the village. It added that troops are also moving toward the town of Jisreen on the southern edge of eastern Ghouta. The observatory reported that troops are advancing under the cover of attacks by warplanes and helicopter gunships and confirmed that government forces captured large parts of Misraba. “The bombing is so intense. Warplanes haven’t left the skies for 24 hours,” opposition activist Anas al-Dimashqi told The Associated Press via text messages from the rebel-held town of Kfar Batna. “The advance is the result of a scorched earth policy.” Syria’s deputy foreign minister Faisal Mekdad denied, in a news conference held in Damascus opposition charges, that government forces used poison gas in their attacks on eastern Ghouta. AP

on the desk” that could launch missiles capable of reaching the United States. Trump responded with a tweet saying that, “I too have a Nuclear Button, but it is a much bigger & more powerful one than his.” But South Korea’s president, Moon Jae-in, focused on the other part of Kim’s speech, when he declared that he would send athletes to the Winter Olympics, which would be held the next month in South Korea. A flurry of negotiations ensued at Panmunjom, the “truce village” inside the Korean Demilitarized Zone, that, by the standards of inter-Korean talks, went unusually well. With the Olympics over, it was time for Moon to make his move. This past week, he sent two trusted aides on a two-day trip to Pyongyang: Chung, his national security adviser, and Suh Hoon, his National Intelligence Service director. Black limousines took the South Koreans to Azalea Hall in the ruling Workers’ Party headquarters, Kim’s workplace. They found Kim and his sister waiting to greet them with broad smiles. Chung and Suh were the first South Koreans to set foot inside the party headquarters since the Korean War. Chung had barely launched into his talking points when Kim said “I know” and “I understand you.” Then he laid out his proposal: talks with the United States on denuclearizing his countr y; a suspension of nuclear and missile tests during the talks; and his understanding that the United States and South Korea must proceed with annual joint military exercises. After returning to Seoul last

A photo provided by the South Korean Presidential Office of Chung Eui-yong, South Korea’s national security adviser, taken during his meeting with President Donald J. Trump in the Oval Office of the White House in Washington on March 8. During the meeting, Trump threw aside caution and agreed to meet with North Korea’s Kim Jong Un in a daring and risky diplomatic gambit to end a nuclear standoff. South Korean Presidential Office via The New York Times

We could come this far, thanks to a great degree to President Trump. We highly appreciate this fact.”–Chung Tuesday, the South Korean officials briefed Moon and then South Korean reporters. After his news conference, Chung called McMaster and told him that he was carr ying a message from Kim to Trump. Only several people at the Blue House knew that the message included a proposal for a meeting with Trump. Chung flew to Washington and met with McMaster at the White House last Thursday for half an hour, while Suh met separately with Gina Haspel, the deputy Ce nt r a l I nte l l i ge nce A ge nc y director. The four then got together and

were soon joined by other US officials, including Pence; Mattis; Dan Coats, the national intelligence director; Gen. Joseph F. Dunford Jr., the Joint Chiefs of Staff chairman; and John F. Kelly, the White House chief of staff. The South Koreans were not supposed to meet with Trump until last Friday, but when he heard they were in the building, he called them to the Oval Office. K i m’s i nv it at io n t o me e t was not a complete surprise to Trump’s team. A US official said they had learned about it from intelligence agencies last Thursday morning, so before the arrival of the South Koreans, Trump talked

by phone with Secretary of State Rex Tillerson, who was traveling in Africa, about the prospect. What he did not tell Tillerson was that he was going to accept the invitation. Not only did Trump surprise the South Koreans with his immediate yes, but he also suggested that they make the announcement at the White House. Trump’s quick decision caught many off guard, including US allies, as well as Tillerson. Trump called Prime Minister Shinzo Abe of Japan, who has worked assiduously to cultivate a close relationship with Trump but was left out of the loop. The fact that the announcement came on the same day that Trump slapped tariffs on imported steel that would hurt Japan added to the sting. Trump did not reach President Xi Jinping of China until the next morning. China has backed Trump on North Korea, generating goodwill between Trump and Xi. But China refused in February to go along with a US plan to interdict oil tankers bound for North Korea on the high seas, demonstrating that there were limits to how far China would go in punishing Kim, given the risk of a North Korean collapse on its borders. For now, Trump is juggling all these dynamics and preparing for a meeting with the most hermetic leader in the world. To his advisers, Trump has said he is impressed that Kim at such a young age has outmaneuvered almost everyone inside and outside his country, but he has added that the North Korean leader is a wild card, who cannot be predicted. New York Times News Service

Japan marks 7th year of tsunami that killed 18,000

T

OKYO—They bowed their heads, hands clasped or palms firmly pressed together. They stood in grassy areas or roadsides overlooking the choppy sea. In Japan’s capital, they lit candles and offered flowers. Some dabbed at tears. Japanese marked the seventh anniversary last Sunday of a tsunami that took more than 18,000 lives on the northeast coast and triggered a nuclear disaster that turned nearby communities into ghost towns. Residents along the coast gathered outdoors to remember the tragedy as sirens wailed at 2:46 p.m., the moment the 9.0-margnitude offshore earthquake that set off the tsunami struck on March 11, 2011. The tsunami overwhelmed sea walls and washed away buildings, cars and entire neighborhoods as it swept inland. It knocked out power at the seaside Fukushima Dai-ichi nuclear-power plant, causing partial meltdowns in three reactors. Prime Minister Shinzo Abe said at an official ceremony in Tokyo that reconstruction is making steady progress, but more than 70,000 people are still displaced and many have no prospect of returning to their homes.

A man prays to mourn for victims of the March 11, 2011, earthquake and tsunami prior to a special memorial event in Tokyo on March 11. AP/Eugene Hoshiko

Prince Akishino, the second son of Japanese Emperor Akihito, expressed hope that the tsunami would raise awareness and help prevent or mitigate damage from future natural disasters. “It is my earnest hope...that we

hand down the knowledge to future generations in order to protect many people from the dangers of disasters,” he said. Separately, several hundred people observed a moment of silence and made offerings at an

altar set up in Hibiya Park in central Tokyo. Cleaning up the still-radioactive Fukushima nuclear plant site remains a daunting challenge that is expected to take 30 years to 40 years. AP

France, India pledge to push forward nuke-power project

T

he leaders of France and India reiterated their intention to start work by the end of this year on what could become the world’s largest nuclear-power plant, advancing talks that have continued for nearly a decade. French President Emmanuel Macron and Indian Prime Minister Narendra Modi urged Electricite de France (EDF) SA and India’s monopoly atomicenergy producer, Nuclear Power Corp., to accelerate discussions on a contract and start work at the site in Jaitapur,

in Maharashtra state, by December. “Once installed, the Jaitapur project will be the largest nuclear-power plant in the world, with a total capacity of 9.6 gigawatts,” according to a joint statement issued last Saturday by the governments during Macron’s visit to India. International equipment makers have been hesitant to move forward with projects in India because the nation’s nuclear liability law exposes reactor suppliers to claims for damages during an accident. That complicates

India’s plans to expand its nuclearpower capacity more than ninefold by 2032. In the statement, the two leaders “welcomed the understanding shared by the two parties on the enforcement of India’s rules and regulations on Civil Liability for Nuclear Damages applicable to the Jaitapur project.” French state-run reactor maker Areva SA signed an initial agreement in 2009 with nuclear-power for the Jaitapur project following a civil nuclear cooperation accord between the

governments. After Areva’s restructuring, EDF in 2016 signed an initial pact with the Indian atomic energy producer to supply six reactors at Jaitapur, a small town on India’s western coast known for its mango and coconut orchards. EDF will undertake all the studies and component purchases for the first two reactors. For the remaining four, some of those activities could be assigned to local companies, according to an e-mailed statement from the French supplier. Bloomberg News

The World BusinessMirror

www.businessmirror.com.ph

Europe’s aviation industry braces for Brexit; CEOs divided on fallout

A

t an aviation summit in Brussels last week, Europe’s main airlines put on a display of unity over the challenges ahead. But the industry’s CEOs were divided when it came to the biggest issue of all: Brexit. The United Kingdom’s scheduled departure from the European Union (EU) in March 2019 has provoked widely varying reactions from carriers in the 28-nation bloc. At one extreme are dire flight-cancellation warnings by Ryanair Holdings Plc. CEO Michael O’Leary, and at the other is nonchalance by his counterpart at British Airways owner IAG SA, fellow Irishman Willie Walsh. The airline industry differs from others, such as energy and chemicals where, from London to Lisbon, companies uniformly say that the UK’s departure is a major headache. The dissonance suggests that some carriers sense the possibility of a Brexit accord that would prevent hassles for tens of millions air travelers while ushering Britain, home of Europe’s busiest airport, out of the European single aviation market. “It’s about jockeying for position in the market and potentially gaining an advantage over competitors as the future relationship between the UK and the EU is worked out,” said Michael Tscherny, who advises companies on European policies including aviation at GPlus Europe in Brussels. “On the basic question of whether flights will stop the day after Brexit, nobody has an interest in planes not flying between the UK and the rest of Europe.”

Aviation rules NO industry in the Brexit process has a more direct link to citizens than aviation, which carries 1 billion travelers a year within the EU. The UK plays an outsized role, accounting for a quarter of the total, making it the third-biggest aviation market behind the United States and China. This economic reality confronts the Brexit negotiators, who must untwine the United Kingdom from decades of European aviation rules that have expanded traffic and ownership rights and streamlined certification and safety procedures. Letting this regulatory framework lapse in the UK without a substitute arrangement would end EU flight rights for Britain and vice versa the day after Brexit. “I am determined to avoid that particularly absurd consequence of Brexit,” EU President Donald Tusk said in Luxembourg on March 7, when the United Kingdom’s partners in the bloc produced a blueprint for future economic ties with Britain. “To do so, we must start discussions on this issue as soon as possible.” Back in Brussels the day before,

O’Leary of Ryanair said a stalemate in the Brexit negotiations points to serious disruptions for airlines. He cited two particular challenges: keeping planes flying between the UK and the EU and preventing the bloc’s 49-percent limit on foreign ownership of carriers from affecting operators in Europe, including IAG, which also owns Aer Lingus in Ireland and Spain-based Iberia and Vueling.

China official: Trade war would bring world ‘disaster’

‘Over the cliff’ “WE see no progress toward a solution that will address either the flight rights or the ownership rules,” O’Leary, a staunch opponent of Brexit, said in an interview. “The first industry over the cliff will be flights. And I think maybe that’s the way you bring about the crisis that gets everybody in Britain to say ‘well, maybe let’s look at this again.”’ He spoke during a CEO conference organized by Airlines for Europe, the main EU industry lobby group, which campaigns on issues like aviation taxes and air-traffic control but has no position on Brexit. The opening lineup of chief executives at the event—also on stage were Carsten Spohr of Deutsche Lufthansa AG, Jean-Marc Janaillac of Air France-KLM Group and Johan Lundgren of EasyJet Plc.—presented a common front on such matters as airport fees (too high) and security checks on travelers (too burdensome) while steering clear of the elephant in the room that is Brexit.

Level playing field They were less coy about that uncertainty when approached afterward. “There’s a common interest,” IAG’s Walsh said. “I am completely relaxed. I am confident that we’ll be able to comply with whatever regulations are put in place.” Janaillac said letting UK-based carriers fly in the EU after Brexit must be conditional on subjecting them to the same range of European aviation legislation applied to operators based in the bloc. “Seems fair, same rights means same obligations: the rules toward consumers, the rules toward safety,” he said. “We must have a level playing field.” The European Commission, the Brexit negotiator for the UK’s 27 EU partners, says Britain faces three options for longterm aviation relations with the bloc and, based on the British government’s red lines, the most likely result would offer no more access than the US has. Lufthansa’s Spohr said the industry is at the mercy of politicians on both sides of the English Channel. “Brexit is a very complicated topic,” he said. “Aviation is a central negotiating element for the countries concerned.” Bloomberg News

Monday, March 12, 2018 A9

A Chinese worker performs welding work on steel rods using a steel drill at a construction site in Beijing. China says it “firmly opposes” US President Donald J. Trump’s tariff increase for imported steel and aluminum, but gave no indication whether Beijing might impose its own measures in response. A government statement issued on March 9 accused Trump of damaging the global trading system. AP/Ng Han Guan

C

hina’s Trade Minister Zhong Shan warned that a trade war with the United States would bring disaster to the global economy, but said his nation won’t start one and that talks with the Trump administration continue. “There is no winner in a trade war,” Zhong said at a news conference in Beijing last Sunday. “A trade war will only bring disaster to China, US and the global economy. China doesn’t want a trade war, and will not start a trade war. But we can handle any challenge, and will firmly defend the interests of our nation and our people.” Zhong added that the US trade deficit with China is overestimated by about 20 percent, citing research by a panel tasked with investigating the discrepancy between the two nations’ accounts of their trade balance. The deficit could be reduced by 35 percent if the United States eased export controls on high-technology products to China, he said, citing

unspecified US research. Trade tensions between the world’s two biggest economies intensified last week as President Donald J. Trump signed orders for stiff tariffs on steel and aluminum and indicated more actions are potentially on the way. The US administration asked China for a plan to cut the annual US trade deficit with the nation by $100 billion, a White House official said last Friday. As China’s exports surged in February its monthly surplus with the US widened from a year earlier to $20.96 billion, according to data from the customs bureau. The US trade shortfall in goods with China surged 8.1 percent during

the first year of Trump’s presidency, reaching a record $375 billion, according to Commerce Department data released last month. The main channel of dialogue on trade between the two nations, the Comprehensive Economic Dialogue, has been put on hold over US frustration over a lack of progress. But Zhong said communications have not been completely broken off. “We are still in talks, and we are sure that both sides will keep talking for the next step,” he said.

Trump ‘clarity’ on tariff not what EU was looking for

Hours after European Union (EU) trade chief Cecilia Malmstrom said she had “no immediate clarity” on whether the bloc will be let off the hook from planned US tariffs, Trump laid down his conditions and repeated a threat if they’re not met. “The European Union, wonderful

countries who treat the US very badly on trade, are complaining about the tariffs on Steel & Aluminum,” he wrote on Twitter. “If they drop their horrific barriers & tariffs on US products going in, we will likewise drop ours. Big Deficit. If not, we Tax Cars etc. FAIR!” Trump’s response came after Malmstrom on Twitter described what she called “frank” but fruitless talks with US Trade Representative Robert Lighthizer in Brussels last Saturday. There was still “no immediate clarity on the exact US procedure on exemption,” Malmstrom, the 28-nation bloc’s trade commissioner, said after the meeting that also included Japanese Trade Minister Hiroshige Seko. “As a close security and trade partner of the US, the EU must be excluded from the announced measures,” she said. Canada, Mexico and Australia have secured exemptions from the tariffs of 25 percent on imported steel and 10 percent on aluminum announced by Trump, though Canada’s and Mexico’s were conditioned on progress renegotiating the North American Free Trade Agreement. Australian Prime Minister Malcolm Turnbull heralded his nation’s exemption last Saturday morning following a phone call with Trump, which he described as “a very good and productive discussion.” Trump has called the tariffs a matter of national security while threatening to tax European car imports and impose “reciprocal taxes” on countries that charge higher duties on US goods than the United States now charges on their products. Malmstrom, Lighthizer and Reko are set to meet on the margins of the Organisation for Economic Cooperation and Development ministerial meeting in Paris next week to further discuss the issue, according to a joint statement after the talks. Bloomberg News

There is no winner in a trade war. A trade war will only bring disaster to China, US and the global economy.”— Zhong

Iran weighs changes as econ problems pile up Canada, Mexico stick to Nafta plan after Trump’s tariff reprieve T

W

hile Donald J. Trump ’s tariff gambit spared his North American Free Trade Agreement (Nafta) partners for now, Canada and Mexico are pledging it won’t make them budge at the bargaining table. Trump last Thursday indefinitely exempted the two countries from steel and aluminum tariffs, “at least at this time.” Canadian Finance Minister Bill Morneau said last Friday that “actually bodes well” for talks to update the 1994 Nafta, and Trump said he had a feeling there’ll be a deal on Nafta. Canada and Mexico, though, gave no signal that they’d bow to Trump’s bargaining chip. Canadian Foreign Minister Chrystia Freeland called Nafta and the tariffs “quite distinct issues” and said “our negotiating positions are absolutely unchanged.” In a written statement, Mexico’s Economy Ministry said: “The negotiation process for the modernization of Nafta follows its normal course.” The seventh round of Nafta talks ended last Monday, with some progress on minor issues, and a United

States willingness to “ compromise.” Negotiations began last August, missed a December target and look set to continue through another soft deadline this month. Canada and Mexico pushed back staunchly against steel and aluminum tariffs, with Canada in particular saying it’d be inconceivable to slap them on a close military ally under justification of a national security risk. Trump nonetheless threatened to impose tariffs after all if a deal to update Nafta falls through, and called on Mexico and Canada to do more to stop trans-shipment of steel and aluminum through their countries and into the US. The exemption isn’t a big positive for Canada, said Doug Porter, chief economist at BMO Capital Markets. “It’s a bit like the schoolyard bully, saying he won’t beat you up today, so long as you agree to a deal to hand over your lunch money tomorrow,” he said in a research note last Friday. Morneau, speaking in New York, said the government is “already very focused” on making sure Canada

isn’t being used as a staging ground to circumvent US tariffs and would redouble efforts. “It’s not a problem today, but we’re going to have belts and suspenders on this issue,” he said. Mexico too pledged to continue to “search for a long-term solution” on steel oversupply. The Canadian finance minister— who said he spoke with Treasury Secretary Steven Mnuchin three times in the past week in pushing for an exemption—was asked whether tariffs amount to a sword of Damocles, hanging over Nafta. “We don’t see it that way at all,” he replied. Instead, the tariff exemption indicates “as we think about Nafta, we recognize our interdependent relationship and can work together to get to a conclusion that works for both of our two economies.” No date has been announced for the next round of talks. US Trade Representative Robert Lighthizer has said nothing was firm, while the Canadian and Mexican ministers publicly capped the last round by saying they’re looking forward to April talks in Washington. Bloomberg News

EHRAN, Iran—Labor strikes. Nationwide protests. Bank failures. In recent months, Iran has been beset by economic problems, despite the promises surrounding the 2015 nuclear deal it struck with world powers. Its clerically overseen government is starting to take notice. Politicians now offer the idea of possible government referendums or early elections. Even Supreme Leader Ayatollah Ali Khamenei acknowledged the depths of the problems ahead of the 40th anniversary of Iran’s Islamic Revolution. “Progress has been made in various sectors in the real sense of the word; however, we admit that in the area of ‘justice’, we are lagging behind,” Khamenei said in February, according to an official transcript. “We should apologize to Allah the Exalted and to our dear people.” Whether change can come, however, is in question. Iran today largely remains a state-run economy. It has tried to privatize some of its industries, but critics say they have been handed over to a wealthy elite that looted them and ran them into the ground. One major strike now grips the Iran National Steel Industrial Group in Ahvaz, in the country’s southwest, where hundreds of workers say they haven’t been paid in three months. Authorities say some demonstrators have been arrested during the strike. More than 3.2 million Iranians are

jobless, government spokesman Mohammad-Bagher Nobakht has said. The unemployment rate is over 11 percent. Banks remain hobbled by billions of dollars in bad loans, some from the era of nuclear sanctions and others tainted with fraud. The collapse last year of the Caspian Credit Institute, which promised depositors the kinds of returns rarely seen outside of Ponzi schemes, showed the economic desperation faced by many in Iran. Meanwhile, much of the economy is in the grip of Iran’s security services. The country’s powerful Revolutionary Guard paramilitary force, which answers only to Khamenei and runs Iran’s ballistic missile program, controls 15 to 30 percent of the economy, analysts say. Under President Hassan Rouhani, a relatively moderate cleric whose government reached the atomic accord, there has been a push toward ending military control of some businesses. However, the Guard is unlikely to give up its power easily. Some suggest hardliners and the Guard may welcome the economic turmoil in Iran as it weakens Rouhani’s position. His popularity has slipped since winning a landslide reelection in May 2017, in part over the country’s economic woes. Analysts believe a hard-line protest in late-December likely lit the fuse for the nationwide demonstrations that swept across some 75 cities. While initially focused on the economy, they quickly

turned antigovernment. At least 25 people were killed in clashes surrounding the demonstrations, while nearly 5,000 reportedly were arrested. In the time since, Rouhani has suggested holding a referendum, without specifying what exactly would be voted on. “If factions have differences, there is no need to fight, bring it to the ballot,” Rouhani said in a speech on February 11. “Do whatever the people say.” Such words don’t come lightly. There have been only two referendums since the Islamic Revolution. A 1979 referendum installed Iran’s Islamic republic. A 1989 constitutional referendum eliminated the post of prime minister, created Iran’s Supreme National Security Council and made other changes. A letter signed by 15 prominent Iranians published a day after Rouhani’s speech called for a referendum on whether Iran should become a secular parliamentary democracy. The letter was signed by Iranians living inside the country and abroad, including Nobel Prize laureate Shirin Ebadi. “The sum of the experiences of the last 40 years show the impossibility of reforming the Islamic Republic, since by hiding behind divine concepts...the regime has become the principal obstacle to progress and salvation of the Iranian nation,” read the letter, which was posted online. AP

The Regions

A10 Monday, March 12, 2018 • Editor: Efleda P. Campos

BusinessMirror

www.businessmirror.com.ph

Pangasinan residents slam DENR over land-value spike

A

By Orly Guirao | Correspondent

LCALA, Pangasinan—Hundreds of families of this rice- and corn-producing town are up in arms against the Department of Environment and Natural Resources (DENR) for the sudden spike in the prices of government agricultural and residential lands the agency is awarding to the public. Townsfolk of this town have been qualified by the DENR under the Insular Government Property Sales Application to acquire lands within a vast tract of public land, known as “Pindangan Estate.” They decried the new price schedules issued recently by the agency is “confiscatory and defeats the government’s policy and program on land distribution and human settlement.” Some 400 hectares of the public estate are due to be bid out to the qualified awardees, mostly landless farmers, in July this year. The complaining stakeholders said the DENR raised exorbitantly the value of the lands by more than 500 percent just within a period of two years. They added agricultural lots appraised at P3.20 per square meter

(sq m) in 2016 are now valued at more than P100 per sq m. Valuation for residential lots appears to be irregular and inconsistent, as those located innermost from access roads were appraised 20 percent higher than those along or near the main roads. It was learned the new appraisal value of the lands was recommended by Celso Salazar, community environment and natural resources officer based in Dagupan City. Salazar’s recommendation was approved by the DENR Pangasinan provincial office and concurred to by the DENR central office. The town’s older people said the Pindangan Estate was originally owned by a certain Doña Cristina Gonzales, daughter of a Spanish landowner named Ernesto

Gonzales, who had the vast tract of land planted to tobacco and sugar cane during the period from the late Spanish era to the Commonwea lt h yea rs of t he American regime. While waiting for the tobacco plants to grow, the farmers hired by the Gonzales family engaged in dried-fishing venture from fish harvest in Mangabul, a big inland body of water in the nearby town of Bayambang. It was from the dried-fishing enterprise of the tobacco growers that the Hacienda Gonzales became known as Pindangan Estate. The old folks said the Gonzales estate was foreclosed by the bank sometime after World War II, prompting tenants of the Gonzales family to lord it over the property. There was a time, the old folks said, when the frenzied scramble for parcels of the estate triggered bloody clashes among the tenants. Influential political leaders, instead of pacifying the warring families, induced their political wards to join the scramble for land occupancy, thus worsening the situation. Scores died in the intermittent clashes. The government under the Marcos regime tried, but failed to resolve the crisis. The stakeholders qualified by the DENR to bid claimed there was never an ordinance adopted by the local legislative council or a new policy by the local assessor’s office increasing the value of the lands for taxation purposes.

​​ anadian puts up biggest office, C coworking space in Davao City

D

AVAO CITY—A first-time Canadian investor established Mindanao’s biggest office and coworking space here, with 70 percent of its allotted spaces in the top 2 floors of the city’s newest office building already occupied. Asaad Qureshi, president and CEO of Skynora Premium Offices, opened his business-process outsourcing (BPO) seat-leasing office at the fourth floor of Robinson’s Cybergate Delta building along Bajada Avenue here. T he compa ny ’s sh a red or coworking office spaces are in the top floor, whose occupancy would depend on the volume of demand for free spaces for start-ups, freelancers

PNP head orders cops to protect women, family

K

ALIBO, Aklan—No less than National Police (PNP) Chief Director General Ronald “Bato” M. dela Rosa has given orders to all the police officers in the country to protect women. SPO2 Michael Pontoy of the Aklan Provincial Police Office said the Men Opposed to Violence Everywhere (MOVE) PNP chapter received the instruction from dela Rosa in time for the celebration this March of Women’s Month. Pontoy ser ves as the assistant secretar y of the nationa l MOV E-PNP. He is representing the Wester n Visayas reg ion. MOVE-PNP is currently headed by Police Supt. Eric Dampal of the PRO Region 11. “General Bato told us that since the male population dominated all government agencies, including the PNP, we as police officers should served as icons of family, highlighting our advocacy to protect women,” Pontoy said. Jun N. Aguirre

and students. Before the company would officially start its operations on Monday, Gleen Mayer Bagani, marketing and leasing manager, said 70 percent of its office spaces for lease have been taken up, including its space allotted for the BPOs. Bagani said the rest, or 30 percent of the unoccupied spaces, would now depend on how the market responds to the available space for rent. Qureshi said several other BPOs have been inquiring on possible expansion of their operations from Manila to Davao, but he said the company would still evaluate first how soon it would embark on expanding its office-leasing business. “The good thing here is there

is less competition, at least for office-space leasing, but the demand would be definitely expected to expand,” he said. Davao City, he added, has become the next option after Metro Manila and Cebu, “but the safe environment here has made me decide, for example, to start my business here.” The Davao City Investment Promotion Center here said the city saw the increase in the number of businesses as signficant, now reaching 40,000, with total aggregate capitalization of P270 billion. The number of businesses was 18 percent higher compared to 2016, and it would be expected to increase by not less than 6 percent this year. Manuel T. Cayon

PRDP-Mindanao plans to prioritize infra projects

T

HE Department of Agriculture’s Philippine Rural Development Project (DAPRDP) is conducting a nationwide information caravan to fast-track information dissemination on infrastructure development priority scheme with local government units (LGUs). The prioritization scheme is a tool designed for the project to rationalize the selection of best subprojects from a long list of proposals from LGUs under the Intensive Building Up of Infrastructure and Logistics Development, or IBUILD component. “With the additional PRDP financing of P8.4 billion from the World Bank, we need to identify projects that will provide the highest social and economic benefits with technical and economic viability,” PRDP Mindanao Director Ricardo M. Oñate Jr. said. For Mindanao cluster, Region 10 recently completed the rounds in its five provinces—Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental and Misamis Oriental. The other five regions—Regions 9, 11, 12,13 and Autonomous Regions in Muslim Mindanao—are

scheduled to roll out on the second week of March. “This prioritization scheme will increase diversity in our IBUILD projects, where our focus will not only be more on farm-to-market roads [FMRs], but development of other infrastructure,” Oñate said. The activity includes presentation of the prioritization-scheme framework, different prioritization criteria and scoring system. Priority is given to projects that will reach 117 points with a maximum of 233 points, while automatic priority worth 300 points is given to an LGU with no prior involvement in PRDP; LGU having already submitted IBUILD proposals but yet to attain approval of any proposed subproject; and LGU with approved IREAP subproject, but no IBUILD subproject. A bonus of 10 points is also given for climate-resiliency plan. DA 10 Regional Director Carlene C. Collado, during the info caravan in Bukidnon, encouraged all the participants from municipal and provincial LGUs to work on their proposals in order to implement more projects in rural areas of Northern Mindanao. Joy M. Montecalvo

DRIED-FISH ENTERPRISE

A vendor at a flea market in Santiago City, Isabela, sells trays of dried fish from the Pacific coast of the province. Isabela’s four coastal towns—Maconacon, Divilacan, Palanan and Dinapigue—supply most of the fish in the province. LEONARDO PERANTE II

DPWH needs ₧10 billion to reconstruct Marawi T

HE Department of Public Works and Highways (DPWH) is now in the process of looking for funding to finance a P10-billion master plan for the rehabilitation and reconstruction of Marawi City. In a roundtable discussion with the BusinessMirror last Thursday, Public Works Secretary Mark A. Villar said the government has approached the Asian Development Bank (ADB) and the Japanese government. Villar added the Chinese government also expressed interest in financing, particularly the projects needed to complete the master plan. “In terms of access to funding, the Philippines’s good fiscal position allows the country to have access to funds,” Villar said. “Funding institutions offer a 10year grace period with a 1.5-percent interest rate and a 30-year repayment. The terms given to us allow

us to access reasonable financing and high returns for infrastructure projects,” he added. Villar said Chinese financing could be obtained through the government or the Chinese-led Asian Infrastructure Investment Bank (AIIB). He said China can also offer grants similar to the financing it extended to the Philippines for the construction of two bridges that will cross the Pasig River. Based on data from the National Economic and Development Authority (Neda), Chinese financing can be obtained through concessional loans and preferential buyer’s credit loans, which are both tied loans. The OECD said aid is “tied” when restrictions are placed on goods and services that may be purchased, including from the donor country and/or another narrowly specified group of countries. Concessional loans from China

have an interest rate of 2 percent, while preferential buyer’s credit loans have an interest rate of 3 percent. Both loans have a repayment period of 20 years, as well as a five-year grace period. The Chinese government charges a 0.3-percent commitment fee and 0.3-percent management fee. Areas for assistance for Chinese loans are in agriculture and fishery, infrastructure and public works, mining, energy, information and communications technology (ICT), processing and manufacturing, tourism, engineering services, and forestry. Japan offers four kinds of loans to the Philippines -- Yen Loan Package (YLP); YLP Preferential Terms; Stand-by Emergency Credit for Urgent Recovery (SECURE); and Special Term for Economic Partnership (STEP). The YLP, YLP Preferential, and the SECURE loans are all untied loans while the STEP is a tied loan. Cai U. Ordinario

Calapan marks 20th cityhood day

T

HE city of Calapan, the bustling provincial capital of Oriental Mindoro, marks an important milestone as it celebrates its 20th cityhood anniversary and Kalap Festival, from March 2 to 21. With the theme “20 Taon ng Lungsod: K aunlaran, K alinga at Malasakit para sa Lahat,” the three-week observance will highlight the economic gains the city has achieved over the past two decades. Mayor Arnan Panaligan said Calapan has experienced significant improvements in commerce and industry, infrastructure, social services and governance since attaining cityhood. Calapan was converted into a component city on March 21, 1998, when the townsfolk ratified Republic Act 8475 authored by Rep. Renato Leviste and signed by President Fidel V. Ramos. To date, it is the first and only city in the two Mindoro provinces. Last year it bagged third place in the eGov Awardee for Excellence in Information and Communications Technology for Local Government Units, compet-

ing with much bigger and richer highly urbanized cities. Its ranking in the Cities and Municipalities Competitiveness Index of the National Competitiveness Council of the Philippines rose significantly in 2016 to 2017, earning it the recognition of being one of the Three Most Improved Cities in Competitiveness. It was also named No. 2 Most Competitive Component City in Resilience for its outstanding programs in climate-change adaptation and disaster-risk reduction and preparedness. Panaligan said Calapan’s high competitiveness ranking validates the city’s rapid growth, vibrant economy and best practices in local governance. He noted the city also envisions to be the premier center of investments and agro-industry in the Mimaropa Region. In 2014 Calapan was elevated to the Philippine Chamber of Commerce and Industry’s Hall of Fame for being the country’s most business-friendly city three times. Earlier in 2010, it was reclassified into a second-class city due to its innovations in public service,

moder nization prog rams, increased revenue collection and overall economic performance. A highlight of the festivities is the Kalap Festival street-dance parade on March 20, which portrays the city’s historic events, the achievements of Calapeños, and how the people excelled despite their trials. Celebrations cu lminate on Marc h 21 w it h t he A raw ng Lungsod Grand Parade, the 2018 Natatanging Calapeño Award Gala Night and the Kalap Fest Street Party series featuring TM Repablikan. Tourism is a growing industry with the opening of inland resorts and new hotels, which will cater to visitors doing business and visiting natural attractions, such as Caluangan Lake, Baco and Silonay Islets, Bulusan Nature Park and Cave, and the Silonay Mangrove Conservation Area and Ecotourism. The capital of the undivided Mindoro province since 1836, Calapan is a vital tourism road link to the Strong Republic Nautical Highway which cuts through the Visayas and Mindanao.

The Regions BusinessMirror

www.businessmirror.com.ph

Monday, March 12, 2018 A11

P100B in Duterte’s megabuild program seen to be implemented in Mindanao

D

By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

AVAO CITY—Five multibillionpeso projects funded under the Duterte administration’s ambitious “Build, Build, Build” program would be implemented in Mindanao in its bid to widen the inclusion of the poor to the ongoing projects and to directly open opportunities after the projects are completed. Finance Secretar y Carlos G. Dominguez III told the Philippine Economic Briefing here the megabuild projects in Mindanao are the P5.4-billion Malitubog-Maridagao (Mal-Mar) Irrigation Project Phase 2 in North Cotabato and Maguindanao, the P4.86-billion Panguil Bay bridge project that would connect Tangub City in Misamis Occidental and Tubod in Lanao del Norte; expansion and improvement projects in the Davao International Airport worth P40.57 billion and Laguindingan Airport costing P14.6 billion; and the 102-kilometer Mindanao Railway Project Phase 1, Segment 1 worth P35.26 billion that would connect the cities of Davao, Tagum and Digos. The Mal-Mar project was started in the 1990s, but it remained unfinished due to periodic attacks on construction workers and destruction of construction materials by fighters of the Moro National Liberation and later by the Moro Islamic Liberation Front. The irrigation project would irrigate almost 10,000 hectares of land in 56 conflict-affected areas, Dominguez said. The Paguil Bay bridge was estimated to be finished by 2021, while the two airport projects are eyed for completion by 2025.

Dominguez said the projects for Mindanao were meant “to bring isolated communities to the mainstream markets and urban centers.” “These projects demonstrate this administration’s commitment to move Mindanao from the margins to make it a center for agriculture and industry,” he told reporters in a news briefing shortly before the Philippine Economic Briefing. Of the funding requirement, Dominguez cited the role of the Asian Development Bank (ADB) of having “been generously assisting us in funding important infrastructure projects that would spur economic development in this island.” “In fact, we just recently signed in January this year the $380-million loan from the ADB that will help improve 280 kilometers of national roads and bridges in the Zamboanga Peninsula and TawiTawi,” he added. “This project aims to expand economic opportunities in areas, such as agribusiness, ecotourism and logistics, as well as improve access to markets, jobs, education, and health facilities,” he added. Another infrastructure project in the pipeline to be funded by the ADB “is the $70-million Davao Public Transport Modernization Project

designed to improve public transport infrastructure and services in Davao City.” Ivan C. Cortez, city planning officer, told the BusinessMirror earlier the feasibility study of the bus- transport system was being finalized in terms of which items needed specific funding and would be submitted next month to the regional National Economic Development Authority for evaluation. He said local drivers organizations have not posted any resistance to the replacement of the jeepneys as they await the details of the city’s plan to absorb the 7,000 drivers and operators into the new transport system. Woochung Um, ADB board secretary, said the performance of the Philippines’s attempt to achieve wider inclusion of the poor to the benefits of the improving economy would be dangled by the ADB as an inspiration to other Asian economies it is helping. He added the ADB would be closely monitoring and assisting in the administration’s bid for wider financial inclusion, as Dominguez said the priority on this aspect would place the Philippines “in a better position to host” the annual meeting of the ADB. The last time the country hosted it was in May 2012, Um said. He added wider financial inclusion would be the main focus of the annual ADB meeting hosted by the Philippines. Dominguez is chairman of the ADB Board of Governors this year, as he also reiterated that “Mindanao would be among the primary beneficiaries of this shared goal of inclusive growth” Um said a successful and inspiring performance of the Philippines would mean “more countries to get interested to invest in your country.” “We know we are going to see great progress, in Mindanao in particular, with the help of ADB,” Dominguez said. He added “it is only fitting that discussions in this year’s annual meeting of the Bank, which will revolve on the theme “Linking People and Economies for Inclusive Development,” will be held here in the Philippines.”

“The Philippines is suitably positioned to lead these discussions on greater economic inclusion. The country has posted one of the highest growth rates in the region,” Dominguez said. “Because of the reforms we have put in place, the investment community in a recent survey identified the country as the best place to invest in. We are proud of that achievement.” The Department of Finance said Dominguez was referring to the global survey naming the Philippines as the world’s “best country to invest in.” The survey, conducted by the US News and World Report, in partnership with the Wharton School of Business and Y&R’s BAV Group, covered 6,000 business decision-makers and used statistics from the World Bank. Over 3,000 delegates are expected to attend the meeting in Manila for the 51st ADB Annual Meeting scheduled from May 3 to 6 this year. They include the finance ministers and central bank governors of the ADB member-countries, bankers, representatives from the private sector, civil society, academe, multilateral institutions and the media. Among the issues to be discussed during the 51st meeting are globalization, jobs in Asia, financial technology, private-sector mobilization in terms of funding infrastructure, building resilience to climate change, expanding opportunities for women entrepreneurs and tapping technology to maximize the skills of aging populations and utilizing it as an effective tool to make development inclusive. Dominguez said the institution will focus on how to “make progress more evenly felt throughout the entire membership of the ADB.” Influential thinkers in the fields of international economics, history and digital technology are also set to speak on global economic trends that will shape the world’s future during a forum to be hosted by the Philippines on May 4, as part of the series of events leading up to the 51st annual meeting of he ADB.

Defend Ilocos: Activists are not terrorists DOF names more infra By Jonathan L. Mayuga

T

@jonlmayuga

HE environmental group Ilocos Network for the Environment (Defend Ilocos) last Sunday condemned the inclusion of its regional coordinator, Sherwin de Vera and other individuals, whose names were included in the Department of Justice’s (DOJ) list of terrorists for supposedly being members of the Communist Party of the Philippines (CPP) and its armed wing, New People’s Army (NPA). De Vera was arrested in December 2017 by virtue of a warrant of arrest for alleged rebellion. He is currently out on bail. Defend Ilocos said in a statement the allegation against de Vera was not terrorism nor association with the CPP-NPA, but “because of his involvement in the defense of the environment and human rights.” “We are deeply concerned for his safety and the safety of other individuals as the petition looks like a tokhang list where any group, especially the Philippine National Police and Armed Forces of the Philippines, can just choose a name and arrest them, or worse, carry out an extrajudicial killing,” Defend Ilocos said. “We believe that the inclusion of de Vera, as well as the other development workers, activists and human-rights advocates in the list, is a clear case of harassment meant to discourage the critics of the Duterte administration. We firmly believe this is part of the government crackdown against the people who have the courage to question the anti-people policies of this administration,” the group said. Enlisting “dissenters,” the group added, is an act of cowardice of the Duterte administration and is “meant to discredit the people who are doing actual work in communities and delivering services to

the people who receive little or no support from the government.” “Ever since its creation, Defend Ilocos has been at the forefront of pursuing environmental justice for the people and communities of the Ilocos region. Our current work involves facing the many environmental and human-rights issues connected with large-scale and destructive mining, corporate energy projects [dams, coal power plant, solar/wind farms] and tourism programs in the region,” the groups said. “Despite the harassment, we stand strong with Sherwin in the pursuit of environmental justice and human rights. We firmly state that Sherwin is not a terrorist and the government should stop all forms of human-rights violations against him and the Filipino people,” the group said. The group called on the government of the Philippines and the National Democratic Front of the Philippines to seek a common ground and to resume the peace talks. In a statement, de Vera said the allegation that he is a terrorist is “malicious and baseless.” “My work as an environmentalist and human- rights advocate is not connected in any way with the CPP-NPA. I am ready to answer and prove that this allegation is false at the proper time and forum,” he said. De Vera added being on the “terror” list placed him, including his family, on dangerous grounds. “The peril is obvious with the results from Duterte’s tokhang list and his call for the killing of suspected rebels in exchange for monetary reward. It also puts us on the cross-hairs of Duterte’s army of online trolls that propagates hate and violence against those critical of his rule,” he said.

projects in Mindanao

T

HE Department of Finance (DOF) announced the various infrastructure projects currently being worked on in the Mindanao area. These are apart from the five infrastructure projects approved by the National Economic and Development Authority (Neda) for Mindanao area to improve economic production and transform the island into a major hub of agriculture and industry. Finance Secretary Carlos G. Dominguez III reported during an economic briefing in Davao City last Friday the ongoing projects the government is currently implementing in Mindanao, apart from the five infrastructure projects planned to be implemented in the area this year. “We also have ongoing big-ticket infra projects in Mindanao ready for completion,” Dominguez said during the Philippine Economic Briefing held at the SMX Convention Center in Davao City last Friday. The Davao City Coastal Road is an 18.5-kilometer public works project to help relieve traffic congestion in the city. Construction for the project began last year and will be completed in 2022. It has a project cost of P19.8 billion. The Mindanao Logistics Infrastructure Network involves the improvement of 2,567 kilometers of roads across Northern Mindanao, Davao, Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat, Sarangani at General Santos City) and the Caraga regions. This network of roads will cost P98.15 billion when completed around 2019. The project was started in 2015. “There are other strategic projects currently under study by our economic experts. Over the next five years, the Duterte administration expects to invest P8 trillion in new infrastructure,” he added. The projects being implemented by the government was explained to help stimulate the country’s economic growth in the short term, and support the development of a competitive economy over the long term. “Of course, all government agencies are involved in the rehabilitation of Marawi City. A Bangon Marawi Comprehensive Recovery and Rehabilitation Plan is now in the final stage of formulation,” he said. Dominguez added Mindanao will be the “centerpiece” of the Philippines’ unfolding growth narrative, with a slew of big-ticket infrastructure projects ready for rollout soon to improve economic production and transform the island into a major hub of agriculture and industry. Rea Cu

Green Monday BusinessMirror

A12 Monday, March 12, 2018

www.businessmirror.com.ph • Editor: Lyn Resurreccion

Report: Economic equality key to solving climate change

E

conomies need to reduce inequality and promote sustainable development for the world to avert the perils of runaway global warming, according to a new research. The risk of missing emission targets increased dramatically under economic scenarios that emphasize high inequality and growth powered by fossil fuels, according to research published last Monday by a team of scientists in the peer-reviewed Nature Climate Change journal. “Climate change is far from the only issue we as a society are concerned about,” said Joeri Rogelj, the paper’s lead author and a research scholar at the International Institute for Applied Systems Analysis (Iiasa) outside of Vienna. “We have to understand how these many goals can be achieved simultaneously. With this study, we show the enormous value of pursuing sustainable development for ambitious climate goals in line with the Paris Agreement,” he said. The paper bridges two of the most intractable challenges facing policymakers across the globe. Scientists predict higher frequencies of floods, famines and super storms unless the world keeps tem-

perature rises well below 2 degrees Celsius (3.6 degrees Fahrenheit) this century. At the same time, growing income inequality has been robbing advanced economies of dynamism needed to boost their resilience to change. The Iiasa researchers modeled six different scenarios in order to determine conditions that would limit warming to 1.5°C, according to the paper. “Our assessment shows particularly the enormous value of pursuing sustainable development for reaching extreme low climate-change targets,” said Keywan Riahi, a coauthor of the paper. “On the other hand, fragmentation and pronounced inequalities will likely come hand in hand with low levels of innovation and productivity, and, thus, may push the 1.5°C target out of reach.” Greenhouse-gas emissions should peak before 2030, after which they’ll “decline rapidly” with a combination of phasing out of in-

Solving microfiber pollution, a laundry room at a time

P

ORTLAND, Maine—The fight to keep tiny pollutants from reaching the dinner plate might start in the laundry room. Innovators are coming up with tools to keep tiny pieces of thread that are discharged with washingmachine effluent from reaching marine life. “Microfibers” are too small to be caught in conventional filters, so they eventually pass through sewage plants, wash out to waterways and can be eaten or absorbed by marine animals, some later served up as seafood. So far there are at least four products—with names, such as Guppyfriend and Cora Ball—aimed at curbing microfibers. The developers are taking the war on pollution to a microscopic level after the fight against microbeads—tiny plastic beads found in some beauty products that were banned nationally in 2015. “Blaming industry or government won’t solve the problems,” said Alexander Nolte, cofounder of Guppyfriend, a polyamide washing bag designed to prevent tiny threads from escaping. “Buy less and better; wash less and better.” The issue has become an increasing focus of environmental scientists seeking to find out just how harmful microfibers are to coastal ecosystems, oceans and marine life and whether they affect human health. One study from 2011, led by Australian ecotoxicologist Mark Browne, found that microfibers made up 85 percent of man-caused shoreline debris. Exactly how much microfiber pollution exists in the environment is a subject of research and debate. The United Nations has identified microfiber pollution as a key outgrowth of the 300 million tons of plastic produced annually. And a 2016 study in the journal Environmental Science and Technology found that more than a gram of microfibers is released every time syn-

The Cora Ball, a product developed by a nonprofit group called Rozalia Project, seeks to cut down on small threads that enter waterways when people do laundry. The group says the ball could cut down on this kind of pollution by more than 25 percent. Megan Bender/Cora Ball via AP

thetic jackets are washed and that as much as 40 percent of those microfibers eventually enter waterways. While there’s no question microfibers are escaping into the environment, it’s unclear how harmful they are, said Chelsea Rochman, an ecology professor at the University of Toronto who plans a study at the end of the year. One of the questions, she added, is whether the problem is the fibers themselves or dyes in them, and whether natural microfibers, such as wool and cotton, are less harmful than plastic microfibers. The microfiber trappers take various forms. Guppyfriend, the laundry bag, is sold by clothing company Patagonia for $29.75. Cora Ball retails at $29.99 and is a multicolored ball designed to bounce around the washing machine, trapping microfibers in appendages that resemble coral. Lint LUV-R costs $140 or more and is a filter that attaches to a laundry water discharge hose. While the US Census has found more than 85 percent of US households have a washing machine, the items are new to the market and not familiar to most consumers. About 50,000 households use the Guppyfriend bag, Nolte said, and it might be the best known of the bunch. AP

Fossil fuel-fired cars release carbon dioxide that contribute to global warming.

Bloomberg

Our assessment shows particularly the enormous value of pursuing sustainable development for reaching extreme low climate-change targets.”—Riahi dustry and energy related carbon dioxide (CO2), combined with an “upscaling” carbon capture and CO2 removal, according to the report. An estimated 37 billion metric tons of CO2 was released last year, 2 percent more than 2016, according to the researchers in the Global Carbon Project. “Bioenergy and other renewable-

energy technologies, such as wind, solar and hydro, scale up drastically over the coming decades in successful scenarios, making up at least 60 percent of electricity generation by the middle of the century,” according to the researchers. “Traditional coal use falls to less than 20 percent of its current levels by 2040, and oil is phased out by 2060.” Bloomberg News

Monarch butterfly numbers off for 2nd year in Mexico

M

EXICO CITY—The number of monarch butterflies wintering in Mexican forests declined for a second consecutive year, a government official said last Monday. Alejandro del Mazo, Mexico’s commissioner for protected areas, said the monarchs clumped in trees covering about 2.48 hectares this winter. That was down about 14.7 percent from the 2.91 hectares the previous winter. The monarch butterflies’ migration is measured by the area they cover in pine and fir forests west of Mexico City. Millions of the butterflies make the 5,500-kilometer migration from the United States and Canada each year. Jorge Rickards, director of the World Wildlife Fund in Mexico, which participated in the annual study, said a particularly busy hurricane season across the insects’ migration route could have been a factor. “These climate phenomena without a doubt have an impact on the migration,” Rickards said. He also mentioned a March 2016 wind storm and cold snap that devastated the core of the butterfly reserve. Monarch expert Lincoln Brower, a biology professor at Sweet Briar College in Virginia, who coauthored a report about the 2016 storm, pointed to the effects of that storm’s felling of thousands of trees. The salvage logging permitted by the government to remove the downed trees to reduce the risk of forest fires continued to damage the fragile ecosystem, he said. In a September 2017 article in American Entomologist, Brower wrote

that “forest thinning reduces the microclimatic buffering provided by the forest canopy during the winter season, thus, increasing the mortality risk to the overwintering monarchs.” The monarch butterflies wintering in Mexico have been in decline, since the winter of 1996 to 1997 when they covered about 18 hectares of forest. There have been several rebound years, but each has generally been less than the preceding upswing. Increased use of herbicides in the United States have hurt the prevalence of milkweed, which monarch caterpillars feed on, risking their survival. Homero Aridjis, an environmental activist who has worked to protect the butterflies’ winter habitat, said the government has supplied insufficient data to allow independent scientists to analyze the colonies. He said new ways to measure the butterfly population are necessary. Del Mazo said last Monday that the government is awaiting data from a laser-scanning technology known as Lidar. On the positive side, Rickards noted that illegal logging in the Mexico reserve was nearly eliminated last year with the help of gendarmes who patrol the area. He said 0.65 hectare was lost to illegal logging last year, compared to 12 hectares the prior year. “On one hand, Mexico has done its work as far as controlling logging, but on the other hand Mexico is not free of the global phenomena implied by climate change, and we have to be ready to confront and take measures to be able to adapt to this reality,” Rickards said. AP

A supercolony of penguins found near Antarctica

A

new colony of Adélie penguins has been discovered near Antarctica, substantially increasing the known populations of the knee-high creatures. “It’s always good news when you find new penguins,” said P. Dee Boersma, director of the Center for Ecosystem Sentinels at the University of Washington, who was not involved in the new study. “The trends have not been good for so many of these species.” Previous censuses of penguins had come close to these animals, living on the Danger Islands just off the end of the “thumb” of Antarctica, below South America. But satellite images of the islands revealed the pinkish-red stain of penguin guano, suggesting larger colonies than expected, said Heather Lynch, one of the five primary investigators on the new study, published last Friday in Scientific Reports. After several years of preparation, a team of researchers traveled in 2015 to the Danger Islands near the Weddell Sea to do a more precise count on the nine-island archipelago. Using a drone doctored to work in the extreme climate of the region, the researchers were able to get a precise estimate of the numbers of breeding pairs of Adélie penguins in the region: about 750,000, or 1.5 million individuals. “The drone imagery is of a quality that just blows everything else away,” said Lynch, a quantitative ecologist at Stony Brook University. “You can see each penguin on the landscape.” Lynch said researchers had already known about a population on Heroina Island, at the northeast end of the Danger Islands chain. Now they’ve found that sizable populations live on other islands near Heroina. “These new colonies totally change our appreciation of the Danger Islands as a penguin hot spot,” she added. The greater numbers will help ensure that conservation efforts focus on keeping them safe, she said.

Adélie penguins feed on shrimp-like krill, which give their guano a distinctive pinkish color observable from satellites. Satellite images and a drone discovered a supercolony of about 1.5 million Adélie penguins living in the Danger Islands near Antarctica. Stony Brook University, Louisiana State University, Rachael Herman via The New York Times

“This area falls between two marine-protected areas that are being planned right now,” she said. And until this discovery, the Danger Islands “wasn’t considered a high priority for protection.” Boersma, who also is a cochairman of the Penguin Specialist Group for the International Union for Conservation of Nature, agreed that finding penguins in some of the more remote spots on Earth is crucial. Now, she said, researchers need to watch them over time to track how they’re faring. “We expect many of these species are going to be severely harmed and some already have,” Boersma said, noting that half the known population of Magellanic penguin chicks were wiped out in one storm. Continued government funding for satellites and other technology to track the animals is essential, she added. One of the surprises of the study, Lynch said, was that the Danger Islands penguins don’t nest in a circular pattern, as would

be expected, to provide the best protection from predators. Instead, they seem to be faithful to individual nesting spots, prizing habit over safety, she added. The Adélie are not recent migrants to the Danger Islands. Photos taken in 1957 by seaplane show colony boundaries in virtually the same locations—now that researchers know what they’re looking for. The discovery of so many new animals has raised questions about how they’re finding enough food. “What it is about the ocean right in that region that makes it so productive, is something we’d like to figure out,” Lynch said. The penguins feed mostly on shrimp-like krill, giving their guano a distinctive pinkish color that can be more easily seen from a satellite. The black and white animals tend to blend into the rocks and are harder to spot, she said. There were plenty of challenges working in one of the coldest places on the planet, said Hanumant Singh, another study coauthor.

The batteries for the drones kept freezing and losing their power, until the researchers began keeping them warm inside their jackets, said Singh, a professor in the Department of Electrical and Computer Engineering at Northeastern University in Boston. “If you warm them, they’ll keep flying,” he said. They also had to manipulate the drones to operate at such southern latitude, where the change in the Earth’s magnetic field close to the poles makes navigation more difficult, said Singh, who is also an associate scientist at the Woods Hole Oceanographic Institution, in Woods Hole, Massachusetts. The global Adélie penguin population now numbers about 4 million pairs and has nearly doubled over the past four decades, for unknown reasons, Lynch said. But the population along the Western Antarctic Peninsula—one of the most rapidly warming places on the planet—has dropped substantially in recent years, she added. New York Times News Service

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Monday, March 12, 2018 A13

Saving the island’s biodiversity is saving Boracay By Jonathan L. Mayuga

I

@jonlmayuga

t’s all hands on deck to save the ailing Boracay, an island paradise in the Western Visayas region.

Boracay is the country’s top tourist destination and known is for its white sand beaches and pristine waters. The island in municipality of Malay, Aklan province, has obviously exceeded its carrying capacity as it continues to draw local and foreign tourists from all over the world. Besides water pollution, which has affected water quality in some of the beaches, Boracay is also facing a serious threat because of the buildings that mushroom in timberlands, wetlands and beachfront. This resulted in the degradation of important ecosystems that otherwise would ensure sustainable ecotourism in the island paradise. Actually, there is more to the white-sand beaches and pristine waters in Boracay which most tourists, and even local communities, failed to appreciate. Biodiversity experts are now on a mission to save Boracay’s biological diversity and restore the valuable ecosystem services to which it owes much of its ecotourism values, Director Theresa Mundita S. Lim of the Department of Environment and Natural Resources’s (DENR) Biodiversity Management Bureau (BMB) said.

Boracay’s forest

The remaining forest over limestone, beach forests and mangroves on Boracay are uniquely distributed across the island in barangays Yapak, Balabag and Manoc-Manoc, according to the DENR-BMB head in a telephone interview on February 27. The largest remaining patch of limestone forest is found in the northern section of the island in Barangay Yapak. It represents the largest remaining limestone forest in the Negros-Panay Faunal region. In Barangay Manoc-Manoc, on the eastern side of the island, a huge concentration of mangrove belonging to four different species can be found. Sonneratia alba, or perepat or mangrove apple, the most adapted mangrove species on the island based on its distribution in the mangrove forest, is the dominant species on the island.

High-value biodiversity sites

The country’s top biodiversity official said Boracay Island has high-value biodiversity sites.

The only colony of flying foxes on Panay Island roosts in the limestone forest of Yapak. Flying fox colony comprise of three species—critically endangered golden-crowned flying fox, large flying fox and the common island flying fox. Boracay is home to the puka shell, a unique shell to which one of the famous beaches was named after—the Puka Shell Beach. It is adjoining the limestone forest of Barangay Yapak, which is relatively pristine and home to the green sea or marine turtles.

Boracay caves

Boracay also has several caves, which experts say, are special ecosystems within an ecosystem. According to the DENR-BMB, the only colony of flying foxes on Panay Island roosts in the limestone forest of Yapak. Three of the five caves on Boracay Island were already classified. Lapu-Lapu’s Paradise Cave in Barangay Balabag is a Class 1 cave; the Ilig-Ilagan Cave in Sitio Ilig-Ilagan in Barangay Yapak is Class 2; and Crystal Cave also in Sitio Ilig-Ilagan in Barangay Yapak is Class 3. According to the DENR-BMB's Cave Classification Manual, Class 1 caves are those with delicate and fragile geological formations, threatened species, archeological and paleontological values, and in extremely hazardous conditions. Among its allowable uses are mapping, photography, educational and scientific purposes. Class 2 caves have portions, that have hazardous conditions and contain sensitive geological, archeological, cultural, historical and biological values or high-quality ecosystem. Hazardous caves are “off limits” and only experienced cavers or guided educational tours or visits are allowed. Class 3 caves are generally safe. They have no known threatened species, archeological, natural history, cultural and historical values. They may be used for economic purposes, such as gathering of guano and edible birds nest collection. All of Boracay’s classified caves are target for Management Effectiveness under Presidential Development Plan 2017-2022. The Balabag caves in barangays Balabag, Yapak and the dark side of

Local and foreign tourists enjoy the world-famous Boracay beach in June 2017. Lyn Resurreccion

Paradise Cave in Barangay Balabag remain unclassified. Each of the classified caves on Boracay Island have unique features. The Bat Cave is home to the Karstarma philippinarum, a new species of karst-dwelling crab, besides being the dwelling of the four different species of bats that can be found on the island. The Bat Cave has abundant stalactites and draperies bats, birds, reptiles, crabs, cricket, spider, pseudo scorpions and ants; connects to the sea; pool connected to the sea The Crystal and the dark side of Paradise Cave are also home to bats, crickets, spiders and pseudo scorpions.

Wetland ecosystems

There used to be nine identified wetland areas within the forestland areas of Boracay Island. However, lately, four of the wetlands were “nowhere to be found” at shown by latest satellite images. Hotels, resorts and informal settlers have encroached on the wetlands. Early this month, Environment Secretary Roy A. Cimatu vowed to recover the “missing” wetlands. The wetlands are in the forestland areas in barangays Yapak, Balabag and Manoc-Manoc. According to the DENR, the wetlands on Boracay Island are composed of a complex of marshland, mangrove swamp and lagoon. These wetlands provide important ecosystem functions. Besides being catch basins, they also prevent flooding. The destruction of the wetlands—

which were backfilled for building construction—is being eyed as the reason for flooding that is now being experienced in some parts of Boracay.

Coastal and marine biodiversity

According to the DENR, Boracay is blessed with rich coastal and marine ecosystem—corals, seagrass and mangrove. Based on its topographic map, coral reef fringes the entire island of Boracay. Seagrass on the other hand, was only observed in Balabag East, Manoc-Manoc East and Balusbos. It has nine locally managed marine parks or marine-protected areas, which doubles as the designated scuba diving sites. “Within these marine parks, fishing, collection of corals and other marine products, dropping of anchors, dispensing of motor oil and other pollutants, belching and vandalizing, and scraping of corals are prohibited, while snorkeling and diving are allowed,” Lim said.

Issues and threats

Lim said among the issues that need to be addressed on the island are threats to primary roosting sites of flying foxes which are within the 80-hectare property of the Boracay Property Holdings Inc. (BPHI).

She bared that the master development plan of BPHI covers its 17-hectare property in the Barangay Yapak in Malay. The DENR Western Visayas region has earlier proposed the declaration of the flying fox roosting sites, including the adjoining inland and coastal areas, as Critical Habitat. The initiative, however, did not materialize due to the refusal of the landowners and developers. Instead a memorandum of understanding was entered into by DENR-Western Visayas, BPHI and LGU-Malay. Moreover, the flying fox habitat has been declared as “No Flying Zone” for helicopters. Lim noted that strict prohibition of cutting natural grown trees without prior clearance or permit and observance of 200-meter buffer zone from the flying fox roosting site were integrated in the Sangguniang Bayan Resolution. In March 2008 the DENR in Western Visayas noted that the destruction of the wetlands on Boracay Island is one of the major causes of flooding in the area.

Illegal reclamation

In a February 2008 report, a wetland area in Sitio Mangayad, Barangay Manoc-Manoc, which used to be

Boracay’s biodiversity has clearly been impacted by unsustainable development.”—Lim

connected to the Dead Forest, was reported to be illegally reclaimed by the Boracay Crown Regency Hotel and Convention Center without a valid environmental compliance certificate. A cease and desist order was issued against the property developer, but a civil case was filed by J. Kings and Sons Co. Inc. against a concerned DENR personnel on February 29, 2008. Besides the destruction of wetland ecosystems, the indiscriminate dumping of household wastes in nearby wetlands flowing into Darkside of Paradise Cave, poaching of bats in Bat Cave and Crystal Cave, and the degradation of speleothems (blackening) due to irresponsible human activities in Crystal Caves were reported by the DENR Western Visayas. The DENR earlier reported the occurrence of algal blooms due to eutrophication (excessive richness of nutrients in the body of water due to runoff from the land, which causes the death of animal life from lack of oxygen) from improper sewer disposal and other organic refuse, something Boracay is now beginning to be associated with. Lim said there is also a need to address the illegal collection and overharvesting of puka shells in the area. She noted that the shells have very important ecosystem function, and its extinction may cause ecological imbalance and affect the network of coastal and marine ecosystems.

Way forward

The official said the DENR-BMB team is still conducting a comprehensive assessment in the area and will come up with various recommendations to save its unique biodiversity and ecosystems. “Boracay’s biodiversity has clearly been impacted by unsustainable development. This is already evident in the decline of the population of species in the area, the loss of ecosystem services from healthy wetland ecosystems, the loss of marine habitats and biological resources; the damages in the unique ecological features on the island, like caves and rock formations,” Lim said. “What we need to assess now is: Are these damages or destruction irreversible or can we still do something to restore them? At this time, I think we need to be hopeful,” she added. According to Lim, while the DENRBMB may no longer be able to restore the biodiversity of Boracay to its original state, various stakeholders can all work together to bring it as approximately close as possible “to the point where the island can still provide ecosystem functioning required for limited developmental activities and sustain the native life system which made Boracay, Boracay.”

Tanay Mountaineers wins Smart youth award Scientists urge stronger govt protection of sardines

A

Rizal-based organization that helps protect vulnerable Philippine species recently received a special award from Smart Communications at the 15th Tayo (Ten Accomplished Youth Organizations) Awards ceremony. The Tanay Mountaineers was given the Smart Communities Youth Award for its efforts to protect the cloud rat, which is endemic to the Philippines. The group worked with the local government to pass a resolution making the cloud rat the flagship species of the town. The Tanay Mountaineers also encouraged the production of souvenir items featuring the animal to raise awareness on the need to protect it. Its efforts helped achieve four things—the protection of its hometown’s biodiversity, the promotion of the municipality as a tourist destination, the generation of additional revenue streams for the community and the education of residents on the importance of biodiversity protection

F

Smart Public Affairs Head Ramon Isberto hands the award to a representative of Tanay Mountaineers.

Before presenting the award and a cash prize to Tanay Mountaineers, Smart Public Affairs Head Ramon Isberto said that, like Smart, the group has forged strong partnerships with government and community stakeholders in pursuit of its goal. The Tanay Mountaineers was one of 10 organizations cited at

the Tayo Awards ceremony, which was organized by the Tayo Awards Foundation Inc. in partnership with the National Youth Commission and the Office of Sen. Paolo Benigno A. Aquino IV. The awards program recognizes and supports the outstanding contributions of youth organizations in the country.

isheries scientists are urging the government to craft a national management framework to address the overfishing of sardines. Dr. Wilfredo Campos, a scientist from the University of the Philippines in the Visayas, said existing data shows a decline in fish stocks due to heavy-fishing pressure and environmental changes. “Sardines are being overfished and existing policy measures are not enough to protect them, especially spawning fish,” Campos said in a news release issued by Oceana Philippines. The studies show that sardines are getting smaller, and spawn and mature early. Campos said catching sardines would be more sustainable if they are allowed to mature for at least two years, so they can reproduce more. “To keep up with being caught too quickly, they biologically adapt by maturing early to compensate for their population loss. They remain small, and spawn less compared to ideal, mature sardines,” Campos said. Sardine fisheries are a main economic driver in the Philippines, netting 344,730,201 kilograms worth P7.43 billion in 2015, which provides food and livelihood for millions of Filipinos. Sardines are also crucial in the food chain, eaten by high-value fish, such as tuna, mackerel and scad, plus larger predators like sharks and dolphins. A recent study made by the Social Weather

Stations also showed that 71 percent of typical Filipino families eat seafood, especially sardines, at least five times a month—proving that seafood is a significant source of animal protein diet, Oceanna said. However, they also observed that the fish they eat are getting smaller and more expensive. In 2012 the Bureau of Fisheries and Aquatic Resources (BFAR) ordered a closed season for sardines in major fishing grounds—including the Visayan Sea and the Zamboanga Peninsula—to ensure they will be protected during spawning months from November to March. However, it is also important to protect sardines after the spawning season. Dr. Jose Ingles, an advisor to the Environmental Defense Fund in the Philippines, said after the closed season there’s often a “race to fish” for sardines, where commercial fishers end up catching the juveniles, which are expected to spawn next season. “There should be other additional measures to protect the little fish that were produced during the spawning season. These include setting catch limits and reducing fishing efforts which will help protect the juvenile sardines, especially during the race to fish season,” Ingles added in the Oceanna news release. He also emphasized that that these measures must be urgently implemented in fishing grounds that are already overfished. Additional measures, such as setting catch lim-

its and reducing fishing effort, can protect juvenile sardines, especially during the race-to-fish season. Ingles noted that these measures must be urgently implemented in fishing grounds that are already overfished. “We need a participatory and science-based management framework for sardines. This will serve as a holistic guide in implementing the policies that will focus on the biological and socioeconomic aspects of sardine management,” Ingles added. Jimely Flores, senior marine scientist of Oceana Philippines, viewed the management framework for sardines as a necessary guide in the implementation of policies that are based on science and research, including data from the National Stock Assessment Program of BFAR. “We have called on BFAR to reconvene the technical working group, and together with our scientists, craft the much-needed management framework for sardines,” Flores said. According to Flores, the management framework should include timely and transparent scientific data for policy support, and a review process for implementation. “We need to work together in sustainably managing our sardines through science-based policies. This way, we can ensure that there will be sardines, a small but important fish, forever,” Flores said. Oceana is the largest international advocacy organization dedicated solely to ocean conservation.

A14 Monday, March 12, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

It’s only business

T

here is a minor underlying theme that runs through the novel and movie The Godfather by Mario Puzo. It is best found in the scene when the most trusted crime syndicate “capo” (captain) Salvatore Tessio is confronted for his betrayal of the family. Tessio says to the family’s lawyer Tom Hagen, “Tell Mike it was only business. I always liked him.” He then asks Hagen to intervene with the Godfather by asking, “Can you get me off the hook, Tom? For old times’ sake?” The implication is that decisions made and actions taken are based on cold and objective reasons that carry only intellectual weight. “It’s only business.” Yet, when the results and consequences of that behavior go wrong, an appeal is made to emotions. The contrast between the two is found in the Filipino idiom: Walang personalan, trabaho lang or “Nothing personal, it’s only business.” We find many instances of this idea in the Philippines. The media headline on January 20, 2012, in regard to the late Chief Justice Renato C. Corona impeachment trial: “Prosekusyon kay Corona: Trabaho lang, walang personalan.” “Guingona faces off with Jinggoy: Walang personalan” was the headline in February 2014, as the Senate Blue Ribbon Committee Chairman Teofisto Guingona III told Sen. Jinggoy Estrada that he was not trying to prejudice the outcome of the hearing on the alleged pork-barrel scam. Alluding to what House Speaker Pantaleon D. Alvarez said in August 2016, we read, “Alvarez kay de Lima: Walang personalan, trabaho lang.” On his political party affiliation, Senate President Pro Tempore Ralph G. Recto “defends membership in majority: Trabaho lang, walang personalan” in February 2017. Late last year in November, even the Philippine Commission on Human Rights Chairman Chito Gascon used the same argument as the headline told us, “CHR chief sa Pangulo: Walang Personalan, Trabaho Lang.” If we assume for the moment that in all of these instances personal differences, emotions, and even grievances have no impact on the actions of the players, then it is clearly cases of “hate the sin and love the sinner.” At least that is what we are led to believe. Yet, it is also “business” to kill all your rivals—as in the “The Godfather”—because it is good for your business. Walang personalan implies that compassion, sympathy, and even mercy should not be a part of the decision-making process. The “only business” concept makes clear that an emotional response to a situation is not necessarily desirable. But let’s be realistic. It is always personal even with the claim that “it’s only business.” Look at the rhetoric from both the general public and public officials on any issue. The logical discussion of a topic in rebuttal to those holding a particular view nearly always ends with an unspoken—and sometimes plainly said—“and they’re evil for thinking that way.” At least it would be more honest to sa0y, “I don’t like your ideas and I don’t like you either.” Maybe if we did not hide behind the dishonest and hypocritical wall of walang personalan, trabaho lang, we might have a more productive conversation. Sometimes, trying to show that we are diplomatic and sensible makes us less so. As an aside to this truthfulness of feelings, perhaps it might be better for everyone if personal bias especially in the press and media were put right on the table in the open.

Three reasons to visit ‘Saturday Group Gold’ Atty. Jose Ferdinand M. Rojas II

RISING SUN

I

N my last column I wrote about the 50th anniversary exhibit of the Saturday Group of Artists at the Main Gallery of the Cultural Center of the Philippines. It opened on March 3 and will run until May 6, 2018. In celebration of the group’s 50 years in the art and culture scene, the Saturday Group opened Saturday Group Gold: Celebrating 50 Years in Art, curated by Ricky Francisco, to showcase an exhibition of around 60 paintings by its current and founding members, as well as some of the group’s archival materials that will reveal its rich history and experience in the field of the arts.

There are many reasons why art lovers must see the show, but here I am listing down three that might hopefully inspire or motivate some to visit.

Online sexual exploitation of children Atty. Lorna Patajo-Kapunan

Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder Publisher

T. Anthony C. Cabangon

Editor in Chief

Jun B. Vallecera

Managing Editor Associate Editor News Editor

Max V. de Leon Jennifer A. Ng Vittorio V. Vitug

Senior Editors

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

Online Editor Social Media Editor

Ruben M. Cruz Jr. Angel R. Calso

Creative Director Chief Photographer

Eduardo A. Davad Nonilon G. Reyes

Chairman of the Board & Ombudsman President VP-Finance VP Advertising Sales Advertising Sales Manager Group Circulation Manager VP HR and Admin

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan Loida S. Virtudazo

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

www.businessmirror.com.ph

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MEMBER OF

1. Here you will see the best of the Saturday Group’s trademark Nude and Interaction paintings that were created through the years, alongside works in the

abstract and figurative traditions that have evolved into the whimsical in recent times. Incidentally, the bookshop-gallery (Solidaridad) of National Artist for Literature F. Sionil Jose served as the venue for the first Philippine exhibition devoted to Nudes in 1968, and then for the artworks devoted to Interactive Paintings in 1971. One year prior, in 1970, the first scholarship was awarded to one of the group’s nude models. 2. When you visit the exhibit, you’d get to meet the 258 artists who have been part of the Saturday Group, as well as the 31 members who are currently active. Featured are the works of artists from the very first meetup at Taza de Oro in Malate in 1968, and those created by the current crop of members who are meeting in the group’s newest home at the Saturday Group Gallery in Shangri-La mall Edsa (2017). It is not common knowledge that

legally speaking

A

N increasing number of cases involving the online sexual exploitation of children (Osec) was recently uncovered by the International Justice Mission (IJM) Philippines.

Exploiting children as young as three months old, perpetrators of online sexual exploitation produce illicit photographs, pornographic videos and customer-directed live sex shows for customers residing overseas. These customer-criminals are active in directing the abuse perpetrated on the young children. This crime is spreading as more and more people gain access to the Internet. The Philippines will require a coordinated strategy that centers on a strong justice system response to confront this new crime. Atty. Jill Angeline R. Te, JLM special counsel for Legal Intervention (Manila Field Office) brought to my attention some matters worth highlighting about Osec: “The usual setting is that the perpetrator/facilitator [supply side] are the parents/relatives of the children. The demand side, on the other hand, usually constitutes of foreigners from different countries [the United States, Australia, etc.] In many instances, what begins as transmission of explicit photos then develops to transmission of videos, holding of live shows where the children are forced to comply with the foreigner’s requests real time, and eventually the foreigners then make

plans to personally come to the Philippines to meet with the children for in-person abuse.” “Many factors lead to the proliferation of Osec, such as affordable prepaid Internet access, increasing accessibility of money transfer agencies [this is how the foreigners pay the perpetrators/facilitators], and the affordability of gadgets that allow for the execution of Osec.” “The relationship of the victims to the perpetrators commonly presents problems for prosecution, as it is difficult for the victims to testify against their parents/relatives. Aside from the issues surrounding prosecution of Osec, the restoration of the victims is also a huge concern as Osec victims are usually very young and it usually takes years for the children to recover from the trauma caused by the abuse.” A report on the IJM supported Osec operations as of October 2017 showed 68 rescue operations, 246 victims rescued, 109 suspects arrested and 20 per petrators convicted. “About 86 of victims rescued from online sexual exploitation are minors, making this a staggering humanitarian issue and problem for the Philippine Law enforcement. In

2014 the Department of Justice received 1,000 cybertip reports each month. In the first four months of 2015, these referrals doubled to more than 2,000. In IJM’s 68 cases from 2011 to October 1, 2017, IJM helped rescue 246 victims of Osec. Over half [52 percent] of these victims were in their pre-teens, the youngest of these was a two-month old baby girl,” according to Samson Inocencio Jr., national director, IJM Philippines. There are sufficient laws intended to protect our children from sexual exploitation. We have: n Republic Act (RA) 9775— Anti-Child Pornography Act of 2009; n RA 10175—Cybercrime Prevention Act of 2012; n RA 7610—Special Protection of Children Against Abuse, Exploitation and Discrimination Act; and n RA 9208 as amended by RA 10364 —Expanded Anti-Trafficking in Persons Act of 2012. But these laws are inutile in the face of the glaring issue of poverty, which forces parents/families to prostitute, traffic and sexually exploit their own children. IJM wants to build and mainstream the idea that “ending poverty requires the end of violence. The end of violence requires functioning justice systems especially for poor communities.” “Eliminating Osec is a matter of life and death for Filipino children,” said Evelyn Pingul, director of IJM Communications. One of the Osec survivors was thinking before she was rescued, “I want to die.” This child who was wishing for death is just one of thousands who are being violently abused and traumatized within the confines of their own homes, even their own family. Instead of being embraced in the

National Artist for Literature Cirilo F. Bautista is also a painter and has, in fact, been a part of the Saturday Group. Other National Artists for the Visual Arts who are also members or have become members at some point in time include the following (in order of conferment): Carlos Francisco, 1973; Vicente Manansala, 1981; Cesar Legaspi, 1990; HR Ocampo, 1991; Arturo Luz, 1997; Ang Kiukok, 2001; Jose Joya, 2003; Benedicto Cabrera, 2006; and Federico Aguilar Alcuaz, 2009. 3. From the exhibit, visitors could learn about how the Saturday Group professionalized the art, as can be seen from the Saturday Balita, which ran from 1996 to 2001. Also being shown is a looping video on the group’s advocacies like educational outreach programs that presented opportunities to expand the artist’s reach. These are more than enough reason to drop by and see the show live.

warmth of safety and love, the pain and horror of Osec is their every day reality (Kalayaan Newsletter, Issue 32, November 2017). Cassie (not her real name) was 12 years old when she was tricked into following a family friend 800 miles from her home to Manila. Instead of getting a good education and better life, Cassie was trapped in the center of an Osec racket. For nearly five years Cassie and several others—including a 2-year-old—were subject to horrific abuse in front of a webcam. The man who had promised her a brighter future instead profited from customers all around the world as they paid to view sexual abuse and violence streamed online. “I used to always tell myself that they can hurt me...but my dream, they cannot get that,” Cassie said. IJM helped the Philippine authorities to pinpoint Cassie’s location and rescue her and the others. The man who facilitated the exploitation for so many years is now standing trial. Cassie is safe today. She lives in an aftercare home and meets regularly with her IJM social worker, making plans to reach her dreams. (Kalayaan, Newsletter, ibid). I laud IJM Philippines and their partner non-governmental organizations and civil-society organization in elevating the fight against Osec to a national concern. Legislation is in place. There is no need for further legislative inquiry. What we need is political will of our leaders and the cooperation of our whole justice system. Sexual exploiters of children must be arrested, prosecuted and jailed. More so, if they are parents/relatives of these children-victims. “No child should ever have to wish for death.”

Opinion BusinessMirror

www.businessmirror.com.ph

Developing the future accountant

What can be negotiated in a competitive challenge process By Alberto Agra

PPP Lead

Joel L. Tan-Torres

DEBIT CREDIT

I

n the recent months, so many radical but necessary initiatives have arisen in the way the future accountants of the land will be developed. These include major changes in the accountancy education and learning system and the qualification or licensure of the Certified Public Accounts (CPAs). By now, the more than 500 accounting schools in the Philippines are evaluating how to move forward with the promulgation of Commission on Higher Education (CHED) Memorandum Orders (CMO) 27 to 30, Series of 2017, by the CHED in collaboration with the Board of Accountancy (BOA). These CMOs prescribed the Philippine Accounting Education Framework and the Program Standards and Guidelines for four accountancy programs, namely: n BS in Accountancy (revised); n BS in Accounting Information System; n BS in Internal Audit; and n BS in Management Accounting. The main issues being deliberated by the accounting schools are: Which among (if not all) of the accountancy programs will they offer beginning school year 2018-2019 and beyond; how can they develop the various requirements for the new programs; will there be sufficient interest in the programs from enrolees and the industry; what will be the qualification process for the new programs; and many others. The BOA and the National Association of CPAs in Education have been in the forefront of responding to the concerns and requirements of the schools. At the same time, the Board of Accountancy is now refining the CPA Licensure Examination framework. The BOA has started to review the Syllabi and Table of Specifications for the six subjects covered in the licensure examination. The direction of the review is to: 1. Focus more on the outcome learning orientation or approach. 2. Refine but not to overhaul. 3. Provide better management of preparation and selection of questions. 4. Prescribe emphasis on certain topics that are common to all the six examination subjects, including current updates on globalization, digital and information technology;

It is to be noted that there are initiatives occurring in other parts of the world similar to the directions of BOA. The professional accounting bodies and authorities in the United States, Canada, Australia, the United Kingdom, Singapore and other countries are focused on developing the accountants of the future. The Philippines and the BOA are not far behind in this endeavor. governance and ethics; regulatory requirements and considerations; effective business communication; and, practical business application. 5. Provide for integration of learning across all examination subjects. These considerations came about as response to the requirements of the ecosystem where the CPAs interact and the expectations and demands of industry. These review is expected to be completed in the next few months and effective in time for the CPA examinations scheduled in October 2018. It is to be noted that there are initiatives occurring in other parts of the world similar to the directions of BOA. The professional accounting bodies and authorities in the United States, Canada, Australia, the United Kingdom, Singapore and other countries are focused on developing the accountants of the future. The Philippines and the BOA are not far behind in this endeavor. Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a CPA who placed No. 1 in the May 1979 CPA Board Examinations. He was the former Commissioner of the Bureau of Internal Revenue from 2009 to 2010. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

Monday, March 12, 2018 A15

Continued from A1

G

overnment Support. The IA, during negotiations, cannot commit to support or contribute to the project what it cannot do so under relevant laws and regulations. Thus, the IA cannot agree to an insertion of a direct government guarantee, subsidy or equity for any of the BOT law-modalities. Mandate of the Agency. Another aspect that could not be negotiated upon between the parties is the mandate of the IA. The authority of the IA is governed by its charter and cannot be expanded by agreement. Thus, a tourism agency

cannot venture into a water-supply project unless empowered to do so under its enabling law or if a waterpublic corporation is included in the project. Track Record of PSP. A PSP cannot be entrusted with a PPP

project that it has no track record on or expertise over. The parties cannot simply agree on this. However, there could be remedy. For example, the PSP for a bridge project, which now includes a waterdistribution project as a result of the inclusion of this component during the negotiations, can tie up with another PSP, which has the technical capability. Competitive Procedure. For modalities under the BOT law and JVs, the BOT law and Neda JV Guidelines must be followed. The parties cannot agree to do away with the required publication and challenge of an unsolicited proposal. Modality. On the bases that the BOT law and Neda JV Guidelines are silent on the matter, that there is no explicit legal prohibition and that the IA has broad discretion, the parties can change the proposed modality. This could

The hellish boss from heaven Siegfred Bueno Mison, Esq.

THE PATRIOT

A

fter graduating from college, my friend Diana worked as a secretary/executive assistant. Her boss was infamous for being strict and intimidating, practically terrorizing her and the rest of her colleagues at work. Nonetheless, she still had the audacity to write him a letter on his birthday, the contents of which she recently shared with me. Allow me to share some excerpts of her letter, with some very minor edits:

“Why do we feel like we are in battle when you are around? Like we should always be on guard. You say: We should never be complacent, to calculate risks, and strategize. Why do we feel it is a graded recitation whenever we talk to you? You say: We should always study general information, history, etymology, logic, politics, synonyms, state capitals and currencies. And the best part is, the more we hide, the more likely we are to catch your attention. Why do we feel like we are in court whenever we are in your presence? You say: we always have to justify our actions and cite reasons or bases. You seriously ask if we have exhausted all our efforts. Whenever we cannot find the answers, we teasingly reply: we have the right to remain silent.” Diana’s boss was a leader in the very sense of the word. His imposing and towering physique could instill

fear in his students in law school or opposing counsels in court without uttering a word. His language, although not crude or vulgar, could make his subordinates cry—and I have been witness to such an incident. Some people see him as a tough drill sergeant. Others regard him as a mad stickler for punctuality. Others think he’s heartless. But Diana has justified her boss’ demeanor in a way that only a prayerful secretary can—using Jesus as a model for servant leadership. She saw him—a former soldier who required complete staff work and a law-school professor who demanded logical reasoning and critical thinking—as someone who was simply following powerful lessons from the Bible. Owing to his military background, Diana’s boss often demanded a plan, together with appropriate timelines to monitor progress or the

lack of it, as well as focal persons per task to ensure accountability and delineation of responsibilities. He worked as if there’s no end to office hours. As best as she could, Diana reminded her boss to pause and pray. In the Bible, Proverbs 16:9 tells us, “In their hearts, humans plan their course, but the Lord establishes their steps.” Alas, the boss often acted as if the entire organization rests on his shoulders. And worse, he failed to dedicate his plans to the Lord. As an educator, the boss was into all kinds of knowledge, trivial ones included. According to Diana, the boss expects everyone around him to know more than usual and to continue acquiring knowledge. In the Bible, Psalm 119:66 tells us, “Teach me knowledge and good judgment, for I trust your commands.” Those around him learned all kinds of information except for one important topic. He was not a student of The Word. Being a lawyer, the boss wanted his subordinates to find the rationale behind every rule and the justification for every action. Dumbfounded most of the time, Diana and her coworkers sought guidance from other lawyers in the office. But they too had no answers. Diana truly believes science and logic cannot always explain certain events at work and in life. As a devout Catholic, Diana hears mass regularly, prays the rosary daily and does novenas if only to find out the reasons that her boss wanted her to know. She trusts that God is always in control. Alas, the boss thought otherwise, at

K to 12 graduates ready to work, but local companies hesitant to hire

Trump’s North Korea gamble

By Mary Jane C. de la Rosa

t’s infinitely better that North Korea and the United States exchange words rather than missiles. Yet, President Donald J. Trump’s decision to meet Kim Jong Un strikes me as a dangerous gamble and a bad idea. I’m afraid that North Korea may be playing Trump, and that, in turn, Trump may be playing us. I fear that Trump is being played because at the outset, apparently in exchange for nothing clear-cut, he has agreed to give North Korea what it has long craved: the respect and legitimacy that comes from the North Korean leader standing as an equal beside the American president. And I worry that we in the media and the public are being played because this is a way for Trump to change the subject from a Russia investigation and a porn actress to himself as Great Peacemaker. To be clear, I’m all for negotiations. Ever since I began covering North Korea in the 1980s, I’ve favored direct talks between the US and North Korea, and I’ve called on Trump to send emissaries to meet Kim Jong Un. But direct talks should be conducted by seasoned diplomats, offering an eventual summit meeting only as a carrot at the end of the process— and only if the summit serves some

M

ore than 1 million senior high-school students around the country are expected to graduate this March and, according to the Department of Education (DepEd), they are now job-ready because of the work- immersion program in our K to 12 curriculum. The big question is, are local companies, corporations and small and medium enterprises ready to absorb them? According to the Philippine Business for Education (PBEd), there is still a need to encourage more businesses to be open to hiring K to 12 graduates. PBEd President Chito Salazar said that, while a large numbers of entrylevel jobs can be filled with K to 12 graduates, many companies are still hesitant to hire our senior-high school graduates. This is bad news to the thousands of high-school graduates who are planning to take on a job due to financial difficulties, particularly those who cannot afford to enter college. PBEd Chairman Ramon del Rosario Jr., however, said industry

groups that are “better organized” are already “moving forward in a more aggressive way” in terms of considering K to 12 graduates in their hiring processes. For this reason, DepEd made an appeal to employers nationwide to consider hiring the first batch of graduates who want to join the labor force, since the K to 12 program has equipped the students with the values, knowledge and skills that the industries need. Based on DepEd Order 30, series of 2017, or the Guidelines for Work Immersion, students are required a minimum of 80 hours of work immersion. The agency also pointed out that, under the law, someone below 18 but older than 15 years old must spend a maximum of 40 hours per week and no more than 8 hours per day during work immersion. This and more are the reasons our first batch of senior high-school graduates must be accepted if they choose to work. This will enable them to help their families or save for their tuition fees once they decide to go into higher learning or college. The author is Teacher 3 at C. Verzosa Elementary School in Baggao, Cagayan.

By Nicholas Kristof New York Times News Service

I

purpose higher than changing the headlines in the US and legitimizing Kim’s regime abroad. A face-to-face should advance the interests of two countries, not just two leaders. There’s a misperception that the North Koreans’ offer of a direct meeting is a grand concession. Not at all. It’s something they’ve been seeking for decades, but past presidents refused. So, a summit constitutes a huge gift to Kim, and it’s puzzling that our Great Dealmaker should give up so much right off the bat. Frankly, another fear about a TrumpKim summit is that our president will shun advice from aides and will impetuously agree over dinner to some harebrained scheme to get a deal. (“Withdraw US troops from South Korea and Okinawa? No problem, if you’ll build a wall for me.”) Indeed, it seems he jumped on the idea without consulting important aides, who were left scrambling to praise the kind of talks that the administration previously had condemned. Still, it’s genuinely encouraging that Kim doesn’t object to the United States resuming military exercises and that he seems willing to suspend missile and nuclear tests. Those are real concessions, although he apparently is not suspending production of nuclear materials or missiles; we should insist on that as well. If Kim will halt testing, maybe

there’s a grand bargain to be achieved. It would involve North Korea giving up its nuclear program in exchange for the US ending sanctions and normalizing relations, with some commitments from North Korea on human rights, as well. This would be a tremendous achievement that would make the world safer, but verification would be a huge challenge and would require short-notice inspection visits to military sites. Most experts are extremely skeptical that Kim will agree to a bargain in which he verifiably gives up nuclear weapons. The White House says Kim has committed to denuclearize, but that may be on unacceptable terms that North Korea has previously proposed: You Americans end your alliance with South Korea and pull your troops, and we’ll proceed with denuclearization (presumably on a nonverifiable basis). And while the White House says the US made no concessions, the summit is itself the concession. Does Trump get credit for pushing the North Koreans to make concessions such as the suspension of testing? I think he probably does, in two respects. First, Trump raised the economic pressure on North Korea with additional sanctions and extra support from China, and the pain was visible when I visited North Korea last September. Kim has made rising living standards

be permitted if no relevant law is violated, pertinent procedures are observed and the terms are favorable to the IA and the public. During negotiations, an unsolicited proposal for a BOT arrangement may be modified to a build-transfer-operate, a BOT to a JV or JV to a straight lease. Contractual Provisions. The stipulated contractual terms and obligations in the unsolicited proposal and the draft PPP contract are not final. These are proposals subject to agreement and competition, provided none of the terms are violative of any law or contrary to public policy. This is an implied limitation on all contracts as all laws are read into them. The negotiating parties, therefore, can shorten or lengthen the contract period, determine the degree of involvement of government, limit or expand step-in rights provisions, among others.

least during their times together. Despite the tough-love treatment, to Diana and most of her colleagues who worked under him, their boss was like a second father to them. She ended her letter saying, “Why do we feel that, beyond that big voice and penetrating eyes is a person who is soft, gentle and kind? We know that every frustration you expressed in anger is your way of telling us that we can do better, your way of challenging us to do more and your way of showing us that you care.” Yes, the boss cared to the point of exhausting his energies to challenge Diana and about seven other secretaries, all within a span of four years. Knowing that he will not be her boss forever, I think Diana’s boss tried his best to leave her with a lasting legacy —a better Diana! Success is better seen in people than in monuments. Much as he did not want the organization to fail, he wanted others to take charge and take over. I am not sure if the boss accomplished this mission. What I know is that Diana, through her little gestures of support and lots of prayers, was successful in turning her boss into a better leader. Being a boss should never be about power the way kings wielded it before; it should be about service in the same way shepherds attended to their flock. Over time, I think Diana’s boss earned her respect and admiration by simply caring for her and, more important, praying to Him. For questions and comments, please e-mail me at sbmison@gmail.com.

a hallmark of his leadership, and sanctions have threatened that pillar of his legitimacy. Second, Trump’s talk about military strikes may or may not have rattled North Korea, but it certainly horrified South Korea. The upshot was South Korea’s deft diplomatic outreach to North Korea, leading to the North Korean promise to suspend testing. So give Trump’s approach some credit. Likewise, it’s very healthy that he’s pivoted from his previous position that “talking is not the answer.” He’s right this time, that talking may actually be part of the answer — even if a summit is the wrong way to begin. One reason for skepticism is that nobody has ever made money betting on North Korean moderation or denuclearization. And a summit raises the stakes, so a failure could trigger angry new escalations on each side, leaving us worse off than where we were when we started. Perhaps I’m wrong: A “North Korea expert” is an oxymoron, and traditional diplomacy in the past certainly hasn’t succeeded. For all the uncertainties, we do have a two-month reprieve from the threat of nuclear war. One can now envision a path forward for the US and North Korea— even if it means we also worry that the path dead ends at a precipice. At least, for the time being, we can look forward to talks instead of tanks.

2nd Front Page BusinessMirror

A16 Monday, March 12, 2018

DOT to ease tourism burden of Boracay By Ma. Stella F. Arnaldo

W

@akosistellaBM Special to the BusinessMirror

ATERFALLS, piña embroidery, the Ati-atihan festival. These are some of the other places and features tourists can see when visiting the rest of the province of Aklan. Tourism Secretary Wanda Corazon T. Teo told the BusinessMirror that her agency is now developing more tourism products in the province to ease the pressure off Boracay Island, the popular island resort in the municipality of Malay. “ I ’ve a sked ou r reg ion a l of f ice to coord inate w it h t he A kl a n prov i nc i a l tou r i sm of f ice to come up w it h ne w dest i n at ion s a nd produc t s for tou r ists to v isit, so t hey aren’t just a l l foc u sed on B orac ay,” she sa id , add i ng t h at t he c a r r yi ng c apac it y of t he i sl a nd h a s long been breac hed , a nd it ’s “ i mpor t a nt to s pread out t he tou r i st s a nd get t hem to see ot her dest i n at ion s.” She is also eyeing the development of Caticlan itself as a tourism area to attract hotels to build there instead of Boracay. “This way, the accommodations, restaurants and other commercial establishments can be concentrated on Caticlan and if people want to visit Boracay, they can go on day tours,” she noted. The tourism chief said she will ask the Tourism Infrastructure and Enter prise Zone Authority to study the possibility of turning Caticlan into a tourism enterprise zone. As a TEZ, it will be entitled to tax incentives to encourage hotels to build there instead of on Boracay. T he Tieza is t he inf rast r ucture arm of the Department of Tourism (DOT). The DOT estimates that the carr ying capacity of Boracay, dubbed one of the best islands in the world for its long, powdery, white-sand beach, was breached in 2009, when visitor arrivals then reached some 650,000. Last year visitor arrivals on the island reached 2 million. Even lawyer Helen Catalbas, DOT regional director for Western Visayas, underscored that there are other places in the region that tourists can go to. “Boracay is not Western Visayas, and vice versa.

2009

The year when Boracay’s carrying capacity was breached, after visitor arrivals reached some 650,000 degradation of Boracay. Since March 7, the local government of Malay has been enforcing the demolition orders of the DENR issued to Boracay establishments violating easement

vincial tourism office, among its major sights and activities include the Ati-atihan festival in K alibo, which happens on the feast day of the Santo Niño in third week of January, Jawili Falls and Beach in Tangalan, pottery making in Lezo, Hinugtan Beach in Buruanga and the Aklan Sampaguita Gardens in New Washington. The DOT chief underscored that Aklan is also the source of valuable piña cloth, and the workshops and stores of its weavers and craftswomen make a worthwhile visit. In 2017 total visitor arrivals in Western Visayas reached 5.85 million, exceeding the DOT ’s

AKLAN is the home of piña weavers and women engaged in arts and crafts. Tourists can visit workshops on how to strip fibers from piña (pineapple) and on piña weaving and embroidery. Image courtesy Aklan Provincial Tourism OfficE

We have a lot of other places to offer visitors to the region.” President Duterte has tasked Environment s Secretary Roy A. Cimatu and Officer in Charge of the Department of the Interior and Local Government Eduardo M. A ño to clean up a nd re h abi l it ate B orac ay b y August this year. Both agencies are currently cracking down on violators of easement and env ironmental regulations, and drawing up a charge sheet of local government officials and officials in national government agencies who may have contributed to the environmental

regulations and helping others self-demolish their spaces on the main white beachfront. While no final decision has yet been made on whether or not the island will be put under a state of calamity, and whether or not it will be closed for two months as Año has been pushing, the DOT has stopped promoting Boracay in travel and tour exhibitions overseas. Teo said the DOT will now promote other destinations in Aklan and the nearby provinces of Antique, Iloilo, Capiz and Negros Occidental, which comprise Panay Island. According to the Aklan pro-

target of 5.52 million for that year. Of the total, 4.64 million were domestic travelers, while the rest were foreign tourists, according to data from the DOT. These visitors generated some P128 billion in tourist receipts in 2017, up 12.7 percent, from receipts in 2016. While Aklan, specifically Boracay, received the largest chunk of visitors to the region, other provinces benefited, as well: Iloilo City in Iloilo attracted 1.08 million; Guimaras, Iloilo, 128,256; Bacolod City in Negros Occidental, 831,687; Capiz, 229,195; and Antique, 162,925.

Con-com on pace to meet July deadline On Fridays the members could not even say TGIF (Thank God, it’s Friday) yet, as this is when they prepare materials and proposals and read a lot of many other materials, research and studies submitted to the committee. Committee en banc sessions, where landmark decisions on the draft Constitution are being made by committee members usually by voting, are scheduled for the whole day every Monday until 6 or 7 p.m. If there are items up for en banc decisions, an additional en banc session within the week may be scheduled. Unlike the subcommittee meetings, the en banc sessions are open for coverage by the media. Such is the workload the Con-com—the first of its kind since a constitutional convention drafted the 1987 Charter that is now up for revision—has, as it tries to meet the July 19 deadline set by Duterte for the submission of the final copy of the federal constitution. In an exclusive interview with the BusinessMirror, former Chief Justice Reynato S. Puno, the Con-com chairman, said he is hopeful

that they can finish the job within the timeline. And, at the rate they are going, Puno said it is possible to beat the deadline, including the regional consultations. Regional and provincial consultations will be held from April 23 to June 8. The committee will be divided into teams so they can simultaneously hold consultations in different key provinces and cities per region. But, before the regional consultations, Puno said they should already have the first draft of the project. “The regional consultations you know, will take place after we have already the first draft of the project, but that does not mean we have not been taking the public pulse, does not mean we are not doing any consultation. The committee from the beginning has been open to all suggestions and, in fact, there have been submissions of position papers, and some subcommittees have also asked other experts, especially economic and fiscal experts, to attend our

sessions, and the consultations take place,” he said. The committee is currently in the drafting phase, which started last February 19 and is set to end on April 19. After the public presentation and consultation phase, the committee will undergo consolidation or approval phase from June 20 to July 5. This phase will require the members to review and consolidate the revisions arising from public consultations. The en banc meetings in this phase will focus on the approval of revisions and the final draft to be submitted to the President on July 19, days before the Chief Executive’s State of the Nation Address scheduled on July 23. The Con-com’s target date of first submission to the President is on July 9. On its second en banc session last February 27, the committee members made their first major decision to adopt a federalpresidential form of government, citing reasons of familiarity with the presidential system versus the two other options, which

Continued from a1

are the hybrid or semi-presidential and the parliamentary system. The federal-presidential system adopts the current setup of national government with three branches: Executive, Legislative and Judiciary. But in a federal setup, the country will be grouped into federal states. This is also the same system being followed in the United States. Puno also believes that federalism is really the way to go for the Philippines, and he is hoping that the shift to federalism will have a “gargantuan” effect on the political, social and economic life of the people. “The unitary system of government has been with us since the 1935 Constitution and even earlier, and we know our experience with the unitary government, and I like to think that the country can achieve a better progress if we shift from unitary government to federal form of government,”he said, adding that federalism can help spur economic growth. See “Con-com,” A2

www.businessmirror.com.ph

The lessons to be learned from Corona’s 2012 trial Continued from A1

process: the House of Representatives in plenary expectedly getting a vote from the administration’s supermajority to transmit the articles of impeachment to the Senate, and the upper chamber convening as an impeachment court. If these will happen before lawmakers go on recess by midMarch, the nation will likely see a reprise of January to May 2012 events, when the Senate—as an impeachment court—tried then-Chief Justice Renato Corona and convicted him, by a 20-3 vote, for failing to file a truthful Statement of Assets Liabilities and Net Worth (SALN). In the Sereno case, the SALN law has again become one of the centers of attention, because her accuser, law yer Larr y Gadon, told the House justice committee that she failed to file SALNs for certain years when she was yet working as a professor at the University of the Philippines. The justice committee overwhelmingly voted on March 8 to confirm there was probable cause in the complaint, thus, endorsing the same to plenary, which will tackle the committee report once it is submitted. Beyond the SALN and other issues raised against Sereno, however, there are lessons to be drawn from these two chief justices and their impeachment cases. And the current batch of senators are only too aware of these, as they prepare for their roles as impeachment judges, should the articles of impeachment get transmitted to their chamber. “Impeachment being political, legal, subjective and partisan,” this 2018 episode should, in the view of Sen. Gregorio B. Honasan II, “avoid trial by publicity,” or a “premature verdict based on incomplete inaccurate information.” In an interview with the BusinessMirror, Honasan added that the protagonists in the impeachment proceedings should “avoid forum shopping, the violation of the sub judice rule by all parties, which might sway public opinion, or prejudice, muddle, distort, cloud issues in the hearts and minds of the primary audience—the Filipino People.” Above all, the “accused public official, the impeachment court, the prosecutors and the defense must maintain high moral, legal and political ground before, during and after the trial, for the sake of the institutions involved, and publ ic interest,” Honasan added. Sen. Juan Miguel F. Zubiri puts the burden of scrutiny on the SALN, as it was the main issue that rendered Corona “ jobless—as former Sen. Rene Saguisag put it—and which could now be a potent weapon against his successor Sereno. Zubiri clarified he was not part of the Corona trial, as he “resigned my post August 3, 2011, while the impeachment rolled off on December 12, 2011.” Still, he followed the Corona case closely from the time the trial at the Senate opened in Januar y 2012, till the time the 23 senators—led by thenSenate President Juan Ponce Enrile—voted on May 29, 2012, to convict Corona. Zubiri thinks the lessons from the cases of the two chief justices are for all public officials to heed the SALN law, or Republic Act 6713, which Saguisag authored. “First, the SALN is a simple document that, in its simplicity, could knock you down. Any changes to your SALN should be recorded, and one should not wait for the last day of the year to be so recorded,” Zubiri pointed out.

Second, Zubiri asserts that all public officials must be “honest, honest, honest and attach all documents to support transactions covered by the SALN.” Definitely, he stressed, “a messenger whose earnings are only his government pay envelope will generally have a vastly different SALN filing from one of a Chief Justice with various investments and property transfers or bequeaths even just to his immediate family.” Zubiri thinks all those involved in this impeachment case must “study for it,” especially non-lawyers, who, he said, “must brush up with the rules of the impeachment court.” In the current Senate, the lawyers are: Francis G. Escudero, Richard J. Gordon, Leila M. de Lima, Juan Edgardo M. Angara, Franklin M. Drilon, Francis N. Pangilinan and Senate President Aquilino L. Pimentel III, who was a Bar topnotcher. De Lima is in detention on drug-related charges, but has signaled she will ask the court to allow her to attend the impeachment trial, when it gets underway. Escudero explains the key l essons are not on the part of the Senate “but, rather, on the part of the respondent... specifically, that an impeachment trial is both a judicial/legal and political process and not solely a legal nor political process.” “It is sui generis, or a class of its own, and cannot be simply likened to a judicial process,” Escudero told BusinessMirror in a separate interview. Indeed, the 2012 Corona trial had been marked for the several occasions when the legal eagles from both sides clashed on issues in uncharted territory, such as, whether the bank-secrecy law trumped public interest in determining whether their chief magistrate was honest in declaring his wealth. W hile Enr ile, as presiding judge in the Corona impeachment trial, was deemed a brilliant law yer, he faced off with a worthy adversar y: Corona’s chief law yer, the former Justice Secretar y Serafin Cuevas. Senate Majority Leader Vicente C. Sotto III, replying to the BusinessMirror’s question on the lessons drawn, said that, while two chief justices are involved in the 2012 and 2018 cases, there are “different strokes for different folks.” Thus, he said, senator-judges would do well to thoroughly review the rules of impeachment court. “Prepare, prepare, prepare” is also the mantra of neophyte Sen. Emmanuel Joel J. Villanueva, even as the Senate has been reported to be making all the physical and logistical preparations for a trial, with Pimentel declaring “we are ready, willing and able” to conduct the Sereno trial should it be elevated to their chamber. “Right now, we can only prepare and study the procedures, precedents—including that of the previous Corona impeachment— and make sure we will be ready to scrutinize the articles of impeachment, the facts and the arguments of both sides,” Villanueva said. “Rest assured that I will perform my constitutional duty according to the dictates of reason, the law and my conscience.” Villanueva, however, begged off from further comment, noting that the “articles of impeachment is still with the HOR [House of Representatives] and we cannot assume that it will be transmitted to the Senate.” If that happens, he added, “I will be acting as a member of the jury, and we have to be impartial with everything the impeachment court will tackle.” Continued on A2