Businessmirror march 14, 2018

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Wednesday, March 14, 2018 Vol. 13 No. 154

Investments seen taking a hit from second tax bill T

By Bianca Cuaresma

@BcuaresmaBM

he country’s rapidly growing foreign direct investment (FDI) inflows—which soared to an alltime high in 2017—could hit a snag this year, as the second tranche of the Duterte administration’s tax-reform agenda is seen to force investors to take a wait-andsee approach on the Philippines anew, an international think tank said.

We believe it will likely weigh on the country’s competitiveness, and create uncertainty for investors in the nearterm.”—BMI Research

Fitch Group subsidiary BMI Research said the second package of the tax-reform program will make the Philippines less competitive in terms of investments against its regional peers.

Continued on A2

PCC STEADILY STRENGTHENING COMPETITION REGIME WITH EVERY DECISION–BALISACAN

By Bernadette D. Nicolas

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PESO exchange rates n US 52.0080

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

The bedrock is decency Teddy Locsin Jr.

free fire

A

FTER hours long discussion—way past 10 in the evening— with the Philippine Delegation from Manila and Geneva last Sunday on what is called the Zero Plus Draft of the Compact for Safe, Orderly and Regular Migration, the United Nations Permanent Mission’s Minister Angela Ponce hammered it all down into a gem of a statement, well within the three-minute limit for speakers, to be delivered by Reynaldo A. Catapang, foreign assistant secretary for migrant workers affairs, who would be the first to deliver a statement following the rightwing Hungarian foreign minister’s sure to be contrarian statement.

Embattled CJ Sereno keeps an eye on ‘rogues in robes’

@BNicolasBM

Continued on A12

business news source of the year

Continued on A11

he country’s antitrust agency may be young, but it has already impressed experienced competition authorities abroad and World Bank experts with the progress that it has made in The estimated number a short period of time. of M&As approved by the Still, Philippine Competi- Philippine Competition tion Commission (PCC) ChairCommission to date man Arsenio M. Balisacan told the BusinessMirror every decision they make on business transactions, particularly mergers and acquisitions (M&As), is important in strengthening the competition regime in the country—much like how the Supreme Court is setting jurisprudence with its every decision.

“That is what we are trying to achieve, that over time, the cases we have will enhance the rules, build our rules of the game and would serve as guidance for the business community to grow their public,” Balisacan said.

Established only in February 2016, the PCC’s goal is to prevent businesses from entering into anticompetitive agreements, abusing market dominance or entering into anticompetitive M&As. Balisacan said that, with each decision, they are trying to set the standard for other companies to follow when it comes to competition law.

So, on February 19, the PCC made history after it imposed a fine on a non-notification case for the first time.

2016 ejap journalism awards

By Joel R. San Juan

N

EYE IN THE SKY United States Ambassador to the Philippines Sung Kim (third from left) and Defense Secretary Delfin N. Lorenzana (third from right) are briefed on the features of the ScanEagle Unmanned Aerial Vehicles during its turnover on March 13 at Villamor Air Base, Pasay City. Six drones were acquired by the Philippine Air Force from the US for $13.76 million and will be used for counterterrorism, security operations, maritime patrol and disaster-response operations, especially in assessing extent of damage caused by disasters and calamities, and locating victims and survivors. AP

@jrsanjuan1573

ow f a c i n g i mp e a c h ment, Chief Justice Maria Lourdes A. Sereno also demonstrated her resolve to discipline erring justices, judges and other members of the Judiciary.

Based on the Supreme Court’s (SC) records, a total of 25 judges from various courts around the country were sanctioned by the SC due to different infractions from January to June 2017.

Out of the 25 judges, one was dismissed from the service; 10

11

The number of Court of Appeals associate justices charged with administrative cases were fined, three were suspended and one was reprimanded. There were 11 Court of Appeals (CA) associate justices charged with administrative cases, six of them See “CJ Sereno,” A2

Despite controversies, ‘Laboracay’ is still a go…so far

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

O

NE of t he big gest events on Boracay Island usually held over the May 1, Labor Day holiday, appears to be pushing

through despite the controversies hounding the island.

Dubbed “Laboracay,” the five-day event is marked by parties in several resorts, performances by international DJs and local celebrities, lots of drinking and hooking up.

It attracts revelers as young as teen-

agers and has been compared to spring break parties of Americans on holiday from school.

According to the Department of Tourism (DOT), over 70,000 tourists were recorded to have visited Boracay from April 25 to May 1 last year, up 28 percent from the previous year’s

visitors. Of the total visitors last year, some 52,000 were Filipinos, while the rest were foreigners.

The data, likewise, indicated that while the number of foreign tourists in the island remained constant at some 18,000 for 2016 and 2017, the surge in Continued on A12

n japan 0.4888 n UK 72.3223 n HK 6.6335 n CHINA 8.2187 n singapore 39.6252 n australia 40.9407 n EU 64.1571 n SAUDI arabia 13.8677

Source: BSP (13 March 2018 )

A2 Wednesday, March 14, 2018

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Investments seen taking a hit from second tax bill Continued from A1

The think tank made the assumption based on its scrutiny of the bill submitted by the Department of Finance to the House of Representatives.

“While the proposed tax reforms in the second package would streamline the complex tax system, we believe it will likely weigh on the country’s competitiveness, and create uncertainty for investors in the near-term,” BMI Research said.

BMI Research discussed the particulars of the proposed second tranche of the tax-reform bill, including the government’s plans to gradually lower the corporate income-tax rate from 30 percent to no less than 25 percent, while

modif y ing ta x incentives for companies to make these “performance-based, targeted, timebound and transparent.”

Current Philippine laws grant an attractive package of incentives, including income-tax holiday for a maximum of eight years, followed by a perpetual 5-percent tax on gross income earned, and zero value-added tax on local purchases and up to 30 percent of local sales, among others.

The new tax-reform proposal now calls for an overhaul and streamlining of these incentives, including a limit on Philippine Economic Zone Authority incentives to a maximum of 10 years and to increase the 5-percent tax on gross income earned to 15 per-

cent tax on net income.

“Despite the proposed corporate income-tax cut, we note that tax rates in the Philippines will still be one of the highest and least competitive in the region, and the repealing of tax incentives to investors will likely make it worse.

This comes at a time when other countries in the region are trying to offer more tax incentives in order to attract foreign direct investment [FDI],” BMI Research said.

“Although the quid pro quo approach may be fiscally prudent, it creates more uncertainty for businesses. We believe that this could weigh on investment over the nearterm, as investors adopt a wait-andsee approach,” it added.

The Philippines, after being a

laggard in FDI, registered an alltime high FDI inflow in 2017, the Bangko Sentral ng Pilipinas (BSP) reported just this week.

The BSP said FDIs in 2017 hit a total of $10.05 billion for the whole year, 21.4 percent higher than the $8.28 billion seen in 2016.

“Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects. All major FDI components registered increases during the year,” the BSP reported.

FDI are the nonresidents’ investment to the Philippines in search for longer-term y ield.

These are usually more coveted than the foreign portfolio invest-

ments as they are longer-lasting and job-generating.

‘Give it a chance’

Philippine Chamber of Commerce and Industry (PCCI) Honorary Chairman and Treasure Sergio R. Ortiz-Luis Jr. told the BusinessMirror that, while the current version of the bill presents issues, the streamlining of tax rules for corporations will be beneficial for the economy overall.

Ortiz-Luis, also the president of the Philippine Exporters Confederation, said while foreign investors may seem to get a direct hit from the rationalization of incentives, at the end of the day, global players will still look at the country’s potential for growth and will eventually

Pcc steadily strengthening competition regime with every decision–Balisacan Continued from A12

With easy cases like this, Balisacan is hoping to adopt internal guidelines for the early termination of nonproblematic mergers and acquisitions.

New thresholds

ON March 5 the commission has recalibrated for the first time the thresholds for compulsory notification of M& A deals it will review since the PCA was enacted with the P1-billion default threshold.

This was immediately welcomed by the business sector, as the move allowed companies more elbow room in transacting with each other.

The PCC adjusted the new

thresholds to P5 billion for the Size of Person and P2 billion for the Size of Transaction. The Size of Person refers to the value of assets or revenues of the Ultimate Parent Entity of at least one of the parties, while Size of Transaction refers to the value of assets or revenues of the acquired entity.

The revised thresholds will apply to M&A transactions with definitive agreements executed after the effectivity of the memorandum circular, which is 15 days after its publication.

The threshold hike was considered by the PCC when it received comments that its threshold was too low and which could also mean additional delays for companies engaged in M&A transactions while

“overburdening” the competition agency.

Interestingly, the Philippines is one of the last Asean memberstates to pass a competition law, but it only took months to establish PCC from the enactment of PCA.

Puno wants stronger PCC

C onsu ltati v e c o m m it t e e Chairman and former Chief Justice Reynato S. Puno said they have also asked Balisacan for their suggestion on how they can strengthen the competition policy in drafting the federal constitution. The final draft of the proposed Charter is set to be presented to President Duterte on July 19, days before the State of the Nation Address on July 23.

“We have seen the need how to

regulate these monopolies, duopolies and oligopolies, and so we thought that this commission should be able to inform us how we can tighten the provision against monopolies,” Puno said.

Asked if the competition policy is weak, Puno said: “The law only came last year, so we want to really strengthen the constitutional provisions against monopolies,” he said.

As Balisacan said, the commission is still a work in progress.

He admitted that he is lobbying with the government to give them more resources, and also an increase in manpower, especially since the PCC is increasingly becoming known. He also wanted the salaries of the staff to be as competitive as those with the

private sector, especially since they are lawyers and economists.

“I think that we have done much, but the challenges are still a lot. But, truly, the good measure of success would be when the business community already has awareness and appreciation of the value of a competition regime, that they, in fact, see that an effective competition regime is for their benefit, and I said for their benefit because, as I said, competition policy is part and parcel of the entire government policy arsenal for long-term development, so if we succeed in sustaining growth for the long haul, the economy would be able to expand substantially and continuously so that their businesses will grow,” Balisacan said.

place their money on those that are geared for strong growth.

T he gover nment targets a growth of anywhere between 7 percent and 8 percent for the local economy for 2018, potentially making the Philippines one of the fastest-growing economies in the world.

The PCCI official also said they are in talks with local economic managers and have been in several consultations regarding the propositions in the second tranche of the tax-reform agenda. The first package of the Tax Reform for Acceleration and Inclusion—which was focused largely on lowering personal-income taxes and adding excise taxes on certain commodities—has been in effect since January.

CJ Sereno. . .

Continued from A1

have already been dismissed.

The data also showed that, for the same period, a total of 113 administrative cases were filed against justices and judges. A total of 120 cases, some of which have been filed prior to 2017, were already decided. Out of the 120 cases decided, 99 were dismissed, eight admonished, benefits of two judges were forfeited, one was dismissed from the service, 10 were reprimanded and three were suspended.

In 2016 a total of 45 erring judges were sanctioned by the Court, four of them were removed from the service, nine judges were suspended and four others were reprimanded.

The campaign to cleanse the Judiciary also covers practicing lawyers and employees.

Based on the records, two lawyers have been disbarred from January to June 2017; 15 have been suspended from the practice of law; eight have been suspended from the practice of law and notarial practice; four have been suspended from notarial practice; three have been reprimanded; five have been admonished and sternly warned; 16 lawyers were fined; and three were ordered arrested and detained.

In 2016 the Court disbarred 16 lawyers and suspended 76 others from the practice of law after finding them guilty of various administrative offenses.

Also last year, a total of 10 lawyers were suspended from both the practice of law and notarial practice, while four were suspended from notarial practice.

There were also 18 lawyers who were reprimanded by the Court last year, while 113 were fined and five others ordered arrested or detained. One lawyer was censured, and one was fined and reprimanded.

From January to August 15, 2017, 16 SC employees were reprimanded with warning for committing several administrative offenses; 12 were suspended with warning; two were immediately terminated of casual employment; and two were dropped from the rolls due to absence without leave.

A total of 263 lower court personnel were charged with administrative complaints last year, with 204 being sanctioned by the Court.

A total of 16 court employees were dismissed last year; four were admonished; the benefits of seven court employees were ordered forfeited; 51 were fined; 116 reprimanded; and 15 others suspended.

It can be recalled that, in her speech during the Oath Taking Ceremonies of the Successful 2016 Bar Examinees last May 22, Chief Justice Maria Lourdes A. Sereno reminded members of the Bar to “uphold the rule of law with integrity and professionalism, and to exercise the privilege of being members of the Bar, not with self-interest foremost but with unswerving dedication to the interests of the nation, the people and the public good.”

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Seguerra quits National Youth Commission post

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residential Spokesman Harry L. Roque Jr. has confirmed the resignation of National Youth Commission Chairman Aiza Seguerra.

Asked on the reason for Seguerra’s resignation, Roque said he is yet to talk to the former child actress.

The President appointed Seguerra in 2016, serving a three-year term.

Seguerra, in her Facebook post, said she met with President Duterte on March 5 to tender her resignation and tell him personally her reason, noting that the President was very understanding and very supportive of her decision.

“He [Mr. Duterte] was like a father.

He listened, understood and boosted my morale. I told him how much I valued his trust and how this experience made me appreciate public service and our public servants,” she said.

Seguerra also thanked the commission and everyone she have worked with for the past year and a half.

“Thank you for believing in me and for making my chairmanship, as short as it may have been, one of the most unforgettable experiences of my life,” she said.

Seguerra also addressed the Filipino youth, saying that she learned a lot from them.

“You are the heart of the society and you must be heard. In this very divisive society, I hope you will lead the country in finding commonalities that will bring us all together. Be kind, always.” she said.

Bernadette D. Nicolas

Editor: Vittorio V. Vitug • Wednesday, March 14, 2018 A3

Subpoena power vested to PNP chief, police officials raises leftist paranoia

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By Samuel P. Medenilla

@sam_medenilla

N official of left-leaning labor center Kilusang Mayo Uno (KMU) on Tuesday said the group is bracing for a surge in the number of illegal arrests after a new law vested the chief of the Philippine National Police (PNP) and select police officials subpoena powers.

In a news statement issued on Tuesday, KMU Chairman Elmer Labog said he fears that the passage Republic Act (RA) 10973 will only pave the way for arbitrary, unjust arrests and detention of administration critics.

“Duterte’s RA 10973 is an escalation of his attacks on labor and human rights, essentially giving the government permission to circumvent due process and conduct mass arrests of his political dissenters and critics,” Labog said.

The labor leader also slammed the announcement of the PNP that it will no longer issue “internal guidelines in the issuance of subpoenas.”

“The PNP’s refusal to set guidelines clearly shows that they are planning to abuse their subpoena powers,” Labog added.

KMU staged a protest in Quezon City on Monday to push for the junking of RA 10973 and for the release of one of its union organizers, Marklen Maojo Maga.

The labor center claimed Maga was illegally arrested by authorities last month in connection with a murder case in Agusan in 2017.

Maga is a son-in-law of Rafael Baylosis, one of the peace process consultants of the National Democratic Front, who was, likewise, detained last month.

Baylosis is currently among the 600 persons allegedly affiliated with communist groups, and whom the Department of Justice (DOJ) would like to be branded as terrorists.

KMU decried the DOJ’s so-called bogus “terror list” as another desper-

Vanishing rice variety

A lone warehouse man arranges sacks of what is left of National Food Authority (NFA) rice at a government warehouse in Quezon City. As stocks of NFA rice continue to deplete by the day, the government is targeting to buy 6 million sacks of palay, or unmilled rice, this year to boost its rice buffer stock and distribution, despite failure to secure an increase in government’s buying price. Administrator Jason Aquino said the NFA is preparing for an aggressive palay-buying spree this summer harvest season from March to May. NONIE REYES

ate attempt of the Duterte administration to silence its critics.

“The family and friends of Raffy and Maojo, along with scores of human-rights defend-

ers, denounce the infamous terror list. They strongly believe that the Duterte regime will harp this in the pursuit of his much-drooled authoritarian rule,” the KMU said.

Economy

A4 Wednesday, March 14, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

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Group asks SC to nullify CA order to lift suspension of 4 ERC execs

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By Joel R. San Juan

@jrsanjuan1573

PETITION was filed before the Supreme Court (SC) on Tuesday to declare as null and void the 60day temporary restraining order (TRO) that the Court of Appeals (CA) issued on February 9, enjoining the Office of the Ombudsman from implementing the oneyear suspension it imposed against four commissioners of the Energy Regulatory Commission (ERC).

In a 17-page petition, the Alyansa Para sa Bagong Pilipinas Inc. (APBPI) also sought the Court’s immediate issuance of a TRO or a status quo ante order to prevent the CA’s Ninth Division from implementing its order pending final resolution of the petition

The CA, in its February 9, 2018, resolution, said it issued the resolution in order not to impair public service considering that since the suspension of the four commissioners by the Ombudsman last December 11 the Palace has not acted to replace them.

ERC commissioners Alfredo Non, Gloria Victoria Yap-Taruc, Josefina Patricia Asirit and Geronimo Sta. Ana were ordered suspended by the Ombudsman last September 29 for one year after they were found guilty of conduct prejudicial to the best interest of the service, aggravated by simple misconduct and simple neglect of duty for allegedly exempting Meralco and other firms from the competitive selection process (CSP), which mandates that all power-supply agreements (PSAs) be covered by public bidding.

Last December 28 they filed an appeal before the CA, assailing the Ombudsman’s suspension order against them and sought the issuance of an injunctive relief.

In its petition, APBPI claimed that the CA committed grave abuse of discretion amounting to lack or excess of jurisdiction in issuing the 60-day suspension order.

The group also argued that the CA has no discretion to stay a decision of the Ombudsman and that the TRO is an encroachment on the rule-making

powers of the Ombudsman under the Constitution, which grants the the authority to promulgate its own rules of procedure.

The group cited the court’s ruling in Ombudsman v. Samaniego, where it was held that “the appealable decisions of the Office of the Ombudsman are immediately executory pending appeal and may not be stayed by the filing of an appeal or the issuance of an injunctive writ.”

“The Ombudsman’s decision in imposing the penalty of suspension for one year is immediately executory

pending appeal. It cannot be stayed by the mere filing of an appeal to the CA,” the petitioner said.

“In this case, the public respondent committed or acted with grave abuse of discretion in issuing the assailed resolution granting a TRO against an appealable decision of the Office of the Ombudsman, when jurisprudence is clear on the matter and the principle as to the nature of such Ombudsman decision is already settled. The assailed order was issued with grave abuse of discretion and was patently erroneous,” the group added.

The Ombudsman’s decision in imposing the penalty of suspension for one year [against the four ERC commissioners] is immediately executory pending appeal.

It cannot be stayed by the mere filing of an appeal to the CA.”­—APBPI

PPA to remit 30-year high dividend to Natl Treasury

By Lorenz S. Marasigan

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@lorenzmarasigan

HANKS to the strong performance of ports all over the Philippines, the Philippine Ports Authority (PPA) will remit over P3 billion in dividends to the government for 2017, the highest contribution to the national coffers in more than three decades.

PPA General Manager Jay Daniel R. Santiago said the agency was able to post record-breaking figures due to the reforms implemented by the administration, namely, the reduction of documentary requirements, faster turnaround time of trucks and vessels in ports and modernization of strategic ports “The continuing review of other processes involving port operations, compliance with the Quality Manage-

ment Standards and adoption of world’s best practices in port operations will definitely boost PPA’s financial standing in the next couple of years,” he added.

The port regulator is mandated to remit more or less 50 percent of its annual net income to the national government after it was granted fiscal autonomy during the term of the late President Corazon C. Aquino. It booked roughly P6 billion in profits last year.

Compared to the 2016 dividend it remitted to the government last year, the 2017 figure is higher by 54 percent from P1.956 billion due to the strong performance of Manila’s ports, composed of the Manila International Container Terminal, operated by International Container Terminal Services Inc., the Manila South Harbor, run by Asian Terminals Inc., and the North Port, managed by Manila North Harbour Port Inc. “complemented by the PPA’s 24 other Port Management Offices, which, likewise, posted favorable performances in the past year.”

“With the higher dividend, we can guarantee that the national government can easily implement its anti-poverty measures, particularly in the areas of infrastructure spending and healthcare benefits,” Santiago added.

In the last couple of years, the PPA has been a regular member of the so-called “Billionaires Club” of Government Owned and Controlled Corporations (GOCCs) contributing billions of pesos in dividends.

BIR official: Removal of 20% tax on lottery winning may require congressional approval

By Ashley Manabat | Correspondent

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ITY OF SAN FERNANDO—Only an act of Congress can exempt Philippine Charity Sweepstakes Office (PCSO) winning lottery prizes to be exempted from the 20-percent tax.

This was the statement issued by Marivic Gaban of the Bureau of Internal Revenue (BIR) on Monday.

The implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) has slapped lottery prize winnings of the PCSO with a 20-percent tax.

With the TRAIN law’s implementation, there is no recourse but to request Congress to file amendments to Republic Act 1169, or the Charter of the PCSO, if it wants its lottery winning prizes to be exempted from the 20-percent tax, Gaban said.

The TRAIN law requires a 20-percent tax on all PCSO lottery games prizes if the amount of the winning is above the amount of P10,000.

Under the National Internal Revenue Code, lotto winnings and all PCSO prizes are tax-exempt.

Upon the invitation of PCSO General Manager Alexander F. Balutan, the BIR sent Gaban to meet with officials of the charity agency last Friday to brief them on the effect of the TRAIN law.

Earlier, Balutan expressed concern over the new tax obligation of winning bettors that might discourage the gaming public to patronize the various lottery games of PCSO, such as Lotto, Keno (Lotto Express), Small Town Lottery and Sweepstakes.

“We have to get the expert opinion of the BIR so we can explain this to the gaming public,” Balutan said.

“But according to our lawmakers, that’s still a windfall. If you win P100 million and have to give back P20 million to the government, you’d still be happy with it,” Balutan added.

He said he is optimistic that despite the new law, PCSO will continue to earn more revenues and efficiently deliver services to the public.

The CA, in its assailed resolution, explained that grave and irreparable injury can be committed if the TRO is not issued in favor of the petitioner-commissioners.

The case stemmed from the decision of the ERC to reset the deadline for compliance with the CSP from November 6, 2015, to April 30, 2016, thus, exempting the PSA from undergoing transparent and public bidding ordained in the CSP. The Ombudsman said the ERC commissioners exercised “gross inexcusable negligence” in delaying CSP’s implementation since the process was put in place to make the PSAs’ cost more reasonable.

It also ruled that the ERC commissioners “cannot feign ignorance” when Meralco took advantage of the resetting of the effectivity date of the CSP. “Hence, accommodating companies’ request to be exempted from CSP was a deviation from respondents’ duty to promote public interest through the CSP requirement,” the Ombudsman said.

ICC-Cabcom says P71.35-billion new projects await Duterte’s approval

By Cai U. Ordinario

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@cuo_bm

he interagency Investment Coordination CommitteeCabinet Committee (ICC-Cabcom) has recently approved P71.35 billion worth of projects, according to the National Economic and Development Authority (Neda).

In a news statement issued on Tueday, the Neda said the amount covered three projects, two of which are part of the 75 flagship projects of the Duterte administration.

The lion’s share of the approved total project cost amounting to P39.2 billion will be spent for the Ambal-Simuay River and Rio Grande de Mindanao River Flood Control Projects.

The Mindanao flood-control projects will involve the construction of flood management infrastructure, such as dikes and floodgates, along the Ambal-Simuay and Rio Grande de Mindanao.

These rivers are part of the Mindanao River Basin, the second-largest river basin in the country.

The other big-ticket project approved was the construction of the remaining 10 priority bridges crossing PasigMarikina River and Manggahan Floodway, which cost P27.37 billion.

These bridges aim to improve road transport network capacity and efficiency in Metro Manila by adding fix links and alternate routes.

The approval of the construction of the first two bridges—the Binondo-Intramuros and Estrella-Pantaleon Bridges—with a total cost of P5.98 billion was earlier confirmed by the Neda Board on September 12, 2017. The first two bridges will be funded by a grant from the Chinese government.

The ICC-Cabcom also approved the Rural Agro-Enterprise Partnership for Inclusive Development and Growth (Rapid Growth) project of the Department of Trade and Industry.

The P4.78 billion worth Rapid Growth project, which is geared toward improving productivity of micro, small and medium enterprises and making them competitive in the local and global markets.

The project aims to support 78,000 farming households by increasing on-farm and off-farm activities and generating employment opportunities in rural areas.

In the same meeting held at the Bangko Sentral ng Pilipinas, the ICC-Cabcom also approved the increase in cost and the change in scope of the Integrated Marine Environment Monitoring System Phase 2 (Philo 2) Project of the Department of Agriculture -Bureau of Fisheries and Aquatic Resources (DA-BFAR).

This involves the improvement and expansion of the first phase of the project, particularly its vessel-monitoring system (VMS) and integration of various databases, including fishing-vessel registry, ocean and weather data, stock assessment data, and records of illegal unreported and unregulated fishing.

The ICC-Cabcom likewise, approved the BFAR’s request to change the scope of the project in order to purchase additional VMS transceivers to cover more commercial fishing vessels, and to utilize both satellite and terrestrial technologies, among others.

The ICC-Cabcom also approved the change in scope and cost for the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay. The project aims to maximize drainage efficiency, minimize flood damages to properties, and improve trading and market activities in the municipalities of Macabebe, Masantol, Minalin and Santo Tomas in the province of Pampanga.

The ICC-Cabcom also approved the restructuring of the Integrated National Resource Management Project of the Department of Environment and Natural Resources.

The committee is chaired by Finance Secretary Carlos G. Dominguez III and cochaired by Socioeconomic Planning Secretary Ernesto M. Pernia.

These ICC-approved projects will be elevated to the Neda Board, chaired by President Duterte, for confirmation.

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Editor: Jennifer A. Ng • Wednesday, March 14, 2018

‘Exempt rice seeds from procurement law’

By Jasper Emmanuel Y. Arcalas

T

@jearcalas

he Department of Agriculture (DA) is seeking to exempt its procurement of rice seeds from public bidding to ensure that farmers would get only “good quality and appropriate” seeds.

A g r icu lture Secretar y Emmanuel F. Piñol sa id he has sought the guidance of President Duterte on how the DA could skirt the usual government procurement process wherein the lowest bidder wins.

“We at the DA wish to ask for your guidance regarding the lowest bid rule for the procurement of palay seeds to ensure that the supplier with good quality and appropriate seed supply wins the contract,” Piñol said in a letter addressed to Duterte, which he posted on his Facebook page on Tuesday.

“It must be noted that palay is a site-specific crop. Thus, one particular type or variety of seed may grow productively in one region but not in another,” he added.

The DA chief sent the letter to Duterte on February 7, before he left for Papua New Guinea.

Piñol said “experiences from previous administrations have seen frustrated farmers reporting failed crops after being provided by the DA with seeds procured via

the lowest bid rule.”

“This request for guidance is urgent, Mr. President, since we are starting our procurement process for our rice seeds for this planting season,” he added.

In the same Facebook post, Piñol said Duterte has responded to his letter and has instructed the DA “to let the farmers indicate their preference in a manifesto so that the agency will have the basis in skirting the usual procurement process.”

“Following the guidance from the President, Director Roy Abaya of DA Region 3 which covers Central Luzon, asked the farmers in his area to come up with a manifesto declaring their chosen hybrid rice seeds,” he said. “ Yesterd ay, D i re c tor A ba ya reported that the Regional De ve lopment Cou nc i l [R DC] passed a resolution approving the proposal of DA Region 3 to exempt the procurement of rice seeds from the ‘lowest bidder’ scheme,” he added.

Piñol said other DA regional offices would now follow suit to “ justify the exemption of the rice seeds procurement from the usual bidding process.”

Farmers in top rice-producing provinces in the country are currently harvesting their crop.

Planting for the wet season crop would begin in May.

In its latest “Rice and Corn Situation and Outlook,” the Philippine Statistics Authority (PSA) projected that paddy output in the first quarter would rise by 5.65 percent to 4.67 million metric tons (MMT).

The PSA based its forecast on standing crop.

Based on farmers’ planting intentions, the PSA said paddy

production in the April-to-June period will be affected by the earlier decision to plant during the fourth quarter of 2017.

Unmilled rice production in 2017 reached 19.28 MMT, 9.36 percent above the 2016 output of 17.63 MMT due to the expansion in harvest area and hike in yield per hectare.

PHL slaps temporary ban on Dutch poultry products

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he government has imposed a temporary ban on importing poultry meat, day-old chicks, eggs and domestic and wild birds from a municipality in the Netherlands.

The Department of Agriculture (DA) said it made the decision after the Dutch Ministry of Economic Affairs confirmed to the World Organisation for Animal Health (OIE) the outbreak of the

highly pathogenic avian influenza (HPAI) in Olderkerk in Grootegast, Groningen, which affected birds. The Dutch agency reported to the OIE on February 27. “[The ban is being imposed] to prevent the entry of HPAI virus to protect the health of the public and the local poultry population,” Agriculture Secretary Emmanuel F. Piñol said in Memorandum Order 7, a copy of which was obtained

by reporters on Tuesday.

With the ban in place, the Philippine government has suspended the processing, evaluation of the application, and issuance of sanitary and phytosanitary import clearance of domestic and wild birds and poultry products from Grootegast, Groningen, the Netherlands.

The DA warned that it will confiscate all shipments of the

banned commodities originating from the area.

The ban does not cover heattreated products.

“Frozen poultr y meat with slaughter/process d ate of 21 days prior to the HPAI outbreaks are allowed to enter the country subject to veterinary quarantine rules and regulations,” Piñol said.

Ma n i l a u su a l ly i mposes a temporary ban on poultry prod-

ucts from areas where there are HPAI outbreaks as a preventive measure.

The Philippine government has vowed to be more vigilant in monitoring shipments of imported poultry products following the bird flu outbreak in Pampanga last August.

The government expects to regain the country’s bird flu-free status this month. Jasper Emmanuel Y. Arcalas

US agriculture department kills animal welfare rule for organic meat

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ES MOINES, Iowa—New rules, decades in the making, that would have required organic meat and egg producers to abide by stricter animal welfare standards were withdrawn by the federal government on Monday, frustrating organic farmers and animal welfare groups but leaving some traditional egg and livestock farm groups rejoicing.

The United States Department of Agriculture (USDA) said the Organic Livestock and Poultry Practices rule exceeds the department’s statutory authority.

“The organic industry’s continued growth domestically and globally shows that consumers trust the current approach that balances consumer expectations and the needs of organic producers and handlers,” USDA Marketing and Regulatory Program Undersecretary Greg Ibach said.

The rule was published by former President Barack Obama’s Agriculture Department two days before he left office in January 2017. The administration of Donald J. Trump has repeatedly delayed implementing the rule and had signaled that it might never move forward with it.

“It’s not a surprise. We had some admission by the USDA that the industry had been camping out in their office bending their arms and their ears. It’s disappointing.

In this October 21, 2015, file photo, cage-free chickens walk in a fenced pasture at an organic farm near Waukon, Iowa. The Trump administration is withdrawing federal rules that would require organic meat and egg producers to abide by stricter animal-welfare standards. AP Photo/Charlie Neibergall, File

The power of Washington lobbyists wins again,” said Francis Thicke, who runs an organic dairy and grows crops in southeastern Iowa near Fairfield.

The regulation was designed to ensure that organically grown livestock had enough space to lie down, turn around, stand up and fully stretch. It also prohibited removal of chicken beaks and cutting cattle tails, and required improved living conditions including fresh

DA distributes ginger planting materials to CamSur veggie growers

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A farmer in Santiago City, Isabela, shows off his newly harvested rice. Known as the “rice granary of the North,” the province of Isabela supplies Metro Manila and the rest of Luzon with the staple. To boost paddy production, the Department of Agriculture (DA) wants its procurement of rice seeds to be exempted from competitive bidding. The DA said this will allow farmers to plant the most suitable rice variety for their area. LEONARDO PERANTE II

air, proper ventilation and direct sunlight.

Dropping the rule “reverses the nearly two decades of collaboration and feedback from farmers and consumers,” said Matt Bershadker, CEO of the American Society for the Prevention of Cruelty to Animals.

“Millions of animals will continue to suffer each year because of the USDA’s abdication of its duty to enforce meaningful organic animal welfare standards.”

Kansas Republican Sen. Pat Roberts in a statement echoed some in the livestock industry who said the rule would increase the paperwork burden and drive up the cost of production for farmers and ranchers.

“America’s organic livestock and poultry producers can now breathe easy that they can maintain the health of their flocks and herds the best way they see fit, and they will not be driven out of business by another government regulation, said Roberts, chairman of the Senate Agriculture Committee.

National Cattlemen’s Beef Association President Kevin Kester said the rule would have “vilified conventionally raised livestock without recognizing our commitment to raise all cattle humanely.”

The withdrawal becomes effective on May 13, the USDA said.

The retail market for organic food products was valued at $47 billion in the United States in 2016, and USDA said the number of certified organic operations increased domestically by 7 percent last year.

Thicke said a group of organic farmers in the US have created their own label, the Real Organic Project, and hope to have pilot farms certified this summer with eventual rollout nationally. The group guarantees generous standards for organic animals and not what Thicke considers weak requirements set by the government. AP

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he Department of Agriculture (DA), through its regional office in Bicol, recently distributed 3,300 kilograms (kg) of ginger planting materials to vegetable growers in Camarines Sur. At least 66 beneficiaries from various vegetable growers associations in Camarines Sur, mostly in Libmanan, Lupi, Tigaon and Ocampo received 50 kg of ginger for each member to be planted in their 1,000-square-meters individual plot.

The planting materials were distributed during a ceremony in San Agustin in Pili, Camarines Sur. The distribution was led by Rosita Imperial, regional coordinator of the DA’s High Value Crops Development Program (HVCDP).

Prior to receiving the planting materials, the members were briefed by Marilyn Dimaculangan, HVCDP staff regarding the latest technology on ginger production and its health benefits.

Dimaculangan said ginger is an excellent spice crop, commonly called as luya. Because of its many healing properties, this medicinal crop is now being added by vegetable growers in their commercial crops production. The activity was conducted to help growers cope with the overflowing demand for this spicy and medicinal crop.

“There is no worry if there is an oversupply of ginger because it is always needed in the market,” said Edwin Castañeda, chairman of the Libmanan Vegetable Growers Association.

Castañeda said this is the second time he and other members of his group will plant garlic in addition to their other vegetable crops like eggplant, ampalaya and string beans. His association was organized in 2006, with 120 members and has been receiving interventions from the DA like technical assistance, vegetable seeds, garden tools and other equipment.

Sometimes, Castañeda buys the produce of his co members and sells it to Divisoria and Pasig City. He transports the vegetables twice a week during peak season.

“There is always a place for ginger in the market because health conscious people always crave for it,” he added.

Banking&Finance BusinessMirror

A8 Wednesday, March 14, 2018 • Editor: Jun B. Vallecera

Subsidies to various government agencies hit ₧131 billion in 2017

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By Rea Cu

@ReaCuBM

he national government has disbursed subsidies to various agencies amounting to P131 billion for 2017, with the Philippine Health Insurance Corp.

(PhilHealth) receiving the highest subsidy of P47.19 billion for the year.

Based on the latest data from the Bureau of the Treasury, the government’s 2017 subsidy disbursement surged 27.02 percent, from P103.19 billion disbursed in 2016.

Broken down, government financial institutions were allotted P1 billion, major nonfinancial government corporations accounted for P60.30 billion and government-owned and -controlled corporations

(GOCCs) were given P69.78 billion.

The biggest GOCC that received the biggest amount in terms of subsidy is PhilHealth, amounting to P47.19 billion, which was 7.81 percent higher than the P43.77 billion it received in 2016.

The National Irrigation Administration followed PhilHealth, with total subsidies for the year amounting to P30.16 billion, or 78.46 percent more than the P16.90 bil-

lion the agency received in 2016.

The National Housing Authority came in third, with subsidies reaching P19.55 billion, which was 62.37 percent more than its 2016 allotment of P12.04 billion.

Other GOCCs provided subsidies for the year include: the National Food Authority with P5.10 billion; Manila International Airport Authority, P3.61 billion; Philippine Economic Zone Authority, P2.80 billion; Philippine Crop Insurance Corp., P2.50 billion; Subic Bay Metropolitan Authority, P2.17 billion; and the National

Globe signs ₧7.04-B capex loan for 2018 G

lobe Telecom Inc. has signed P7.04 billion in loan facilities from a Japanese bank to fund the company’s capital expenditures (capex) for 2018, a disclosure to the local bourse showed.

According to the regulatory filing, the company signed two separate loan deals with Mizuho Bank Ltd., one involving P6 billion in borrowings and another $20 million. Both have a seven-year maturity period.

“The loans shall be used to partially finance the company’s capital expenditures and general corporate requirements,” the disclosure read.

The company has set an $850-million capex program for 2018, almost the same amount that was allotted for 2017. The bulk of the capital will be spent to expand the group’s mobile-data and fixed-line networks.

BOI perks aligned with tax reforms

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he Board of Investments (BOI) said its fiscal incentives are already aligned with the second package of the Comprehensive Tax Reform Program (CTRP) of the Duterte administration.

The CTRP package 2, which follows the Tax Reform for Acceleration and Inclusion Act, is pushing for reforms in corporate-income tax and fiscal incentives.

It involves rationalizing the fiscal incentives given by the country’s investmentpromotion agencies (IPAs), such as the BOI. Trade Undersecretary and BOI managing head Ceferino S. Rodolfo said perks provided by the agency to the investors are already time-bound, focused and performancebased.

Rodolfo added the BOI only provides registered investors four years of income-tax holiday, which can be extended to a maximum of two years.

Its incentives are also focused on industries identified under the Investment Priority Plan, a list of preference investment activities, which may be given tax perks.

The trade official said the BOI evaluates every project registered with the IPA to ensure that the company is complying with its commitments before further endorsing for tax perks to the Bureau of Internal Revenue (BIR). PNA

Globe aims to cover 95 percent of the entire Philippine population with LTE connectivity by end-2018.

The company booked P13.5 billion in core profits last year, 15 percent lower than the P16 billion it booked the year prior due to higher nonoperating expenses and depreciation charges.

Consolidated revenues jumped 6 percent to P127.9 billion in 2017, while operating expenses and subsidies grew at a similar rate to P74.58 billion.

Shares in Globe ended trading at P1,750 apiece on Tuesday, down by 0.57 percent or about P10. Lorenz S. Marasigan

By Nelson S. Badilla Correspondent

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ne of the country’s workers’ associations on Monday announced its support to the Social Security System’s (SSS) campaign against anti-laborer businessmen who refuse to remit to the state pension fund their workers’s monthly contributions.

Jose Sonny G. Matula, president of the Federation of Free Workers, told the BusinessMirror that his group “supports the Social Security System’s Run After Contribution Evaders [RACE] Campaign.”

FFW has 250 member-labor unions in al-

By Justice S J Ranada Jr.

PETITION FOR REVIEW–When proper The proper remedy of a party aggrieved by a decision of the Court of Appeal is a petition for review under Rule 45; and such is not similar to a petition for certiorari under Rule 65. Per Rule 45, decisions, final orders or resolutions of the CA, regardless of the nature of the action, may be appealed to the Supreme Court by filing a petition for review, which is a continuation of the appellate process GR 196598 Martirez, J

Why women? Why not?

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arch is women’s month, and March 8 is International Women’s day. Some people may be asking, why this focus on women? Why is there no month or day designated for men? Or, like in Finex some men maybe asking why is there a need to have Women in Finance Committee—does that mean we should also have a committee for Men in Finance?

Sometimes these questions may sound funny, but these questions came from men, not women. Some men may be asking in jest, but some are serious with the insinuation that having a separate committee or group just for women within an organization will just be encouraging a clique and creating a gap when there isn’t one to begin with.

So I have to have an answer for these questions, not because I am a woman, but to convince myself, too, why the focus on discrimination against women? For one, men, since time immemorial, had been given more priorities at home, at work, in politics, in social life, etc. But women, even until this present-day age, are still being considered as second-class gender in some countries. We all know that in the past, women are relegated to household chores and that families, especially

BOC deploys new employees at Naia for Holy Week duty

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he Bureau of Customs (BOC) deployed some 24 newly hired Operation Officers 1 to the Ninoy Aquino International Airport (Naia) terminals to augment their personnel in preparation for the Holy Week.

Customs District collector Vincent Philip Maronilla received from Customs Commissioner Isidro Lapeña the 24 newly hired examiners who underwent extensive training.

Maronilla said the 24 newly hired personnel will be deployed to assist examiners as thousands of local and foreign tourists are expected to arrive at the airport during the Lent observance from March 29 to April 1.

The Bureau of Immigration also received experts in profiling of foreign nationals to prevent the possible entry of foreign terrorists in the country.

Manila International Airport Authority General Manager Ed Monreal said they have coordinated with airline representatives, Customs and Immigration, Philippine National Police, medical staff, airport police and security agencies to ensure that all their personnel are present during the entire Lent observance, a unique Philippine custom and tradition.

He also said brand new air-conditioners were installed at the Naia Terminal 3, especially at the domestic side where heavy volume of passengers are expected. Recto Mercene

Labor group supports SSS campaign against delinquent business entities

Case clippings

Albor v. Court of Appeals 17 Jan. 2017

Electrification Administration with P2.05 billion.

The Duterte administration seeks to complete its 10-point socioeconomic agenda, which aims to alleviate poverty in the country and improve the social welfare of Filipinos. The agenda includes investing in human-capital development, including health and education, and improving social protection programs, including the government’s Conditional Cash Transfer Program, to protect the poor against instability and economic shocks.

www.businessmirror.com.ph

FINEX free enterprise Wilma C. Inventor-Miranda in some cultures, give bigger inheritance to the male than to female children, which is still happening now in certain families.

The proverbial glass ceiling for women is still present in some companies.

The World Economic Forum 2017 Report on the Global Gender Gap Report is meant to monitor whether the gender gap is improving over time. Thus, they have this annual report because gender gaps can affect the growth of global economy.

Talents of women are not being utilized when they are being discriminated based on gender. Given the education system, which has immensely improved the capabilities of women, gender discrimination is still unknowingly, by habit or tradition, or even intentionally, present in some countries. Businesses are losing out on a wealth of capacity if they

most all parts of the country.

The Tinig ng Maralitang Mamamayan Inc., or Tinig, joined with FFW in saying SSS’s decision was the right thing to do.

Tinig President Lito C. Moral told the BusinessMirror that the SSS campaign is “definitely a very big help to millions of workers who are poor, ordinary citizens.”

Moral said the government’s move to hunt down anti-workers employers would surely increase the funds intended to benefit poor Filipino workers.

The delinquent employers are the capitalists who cut portion of the workers’ monthly salary as monthly contribution of their laborers to the SSS, but the businessmen deliberately keep the workers’ money in their bank accounts.

Aside from the workers’ contribution, Republic Act (RA) 8282, or the SSS Act, also mandated the businessmen to give their corresponding share to each worker in their companies—and subsequently remit the money every quarter of the year.

Failure to do so is a crime committed by the businessmen and, therefore, they should be punished as stipulated by the SSS Act. FFW’s support to the SSS was anchored on the agency’s “first salvo last week, where more than 50 stores were investigated at a shopping mall in Lipa City in Batangas,” Matula said.

Media reports said the SSS discovered that more than 60 percent of the 54 stores

do not address the gender gaps within the company.

The report, through its Global Gender Index, focuses on relative gaps between men and women across four key areas: health, education, economy and politics.

It also aims to help hasten the pace of gender parity based on the report, by organizing global dialogue and a national public-private cooperation model, which is currently practiced in several futureready countries. Gender equality—not necessarily women’s rights alone—affording both genders equal opportunities, could increase global GDP by $5.3 trillion by 2025 by closing the gender gap in economic participation by 25 percent over the same period, according to the same report. This, despite the fact that women have maternity leaves and have to spend more time with family, which are possible reasons certain businesses discriminate against women in their hiring process.

The good news is that the report shows an encouraging development in the gender gap, which is slowly getting smaller.

Another good news for the Philippines is, it is leading together with New Zealand as the overall index’s top 10 performers, both having closed over 79 percent of

that it mapped out were noncompliant with RA 8282.

This 60 percent appeared to be different from more than 34,000 businessmen, who have not deposited their workers’ monthly contribution for a long period of time, which was revealed to the public last year by former Social Security Commission Chairman Amado D. Valdez.

The delinquent businessmen collectively failed to remit to the SSS around P1.4 billion, Valdez told the media last year.

While the FFW lauded SSS’s campaign, Matula urged President Duterte to direct the SSS leadership “to first exhaust other options like efficient collection or remedies other than [the] proposal [of SSS] executive[s] to increase workers’ monthly contributions.”

SSS President and CEO Emmanuel F. Dooc and other SSS officials brought to Duterte’s office the proposal to increase members’ contribution to 14 percent, from 11 percent.

Dooc said that, by doing so, the SSS’s life span will be extended. He said the 3-percent hike is the “best solution” to the financial problem of the SSS. The FFW and other labor groups like the Partido Manggagawa, Bukluran ng Manggagawang Pilipino, Trade Union Congress of the Philippines and Alliance of Trade Unions have opposed the increase in members’ contributions.

their total gender gap for the East Asia and the Pacific region.

And the Philippines is the only one of the two countries in the region that had fully closed their Education Attainment gender gap. The Philippines and New Zealand are also leading on closing the Political Empowerment gender gap. In simple terms, in the Philippines, women are given equal opportunities with men compared to women in other countries in the region.

The future of women with regards to gender equality is very exciting and encouraging, especially for our future generations. Our country, while it continues to lead in the region as champion for gender equality, serves as a model not only for the region but for other countries outside of the region, of the economic benefits of giving equal opportunities for women in all sectors of society. Happy Women’s Month!

Wilma C. Inventor-Miranda is the managing partner of Inventor, Miranda & Associate; CPAs; member, Board of DirectorsKPS Outsourcing Inc.; and treasurer of Negros Outsourcing Services Inc. The views expressed herein do not necessarily reflect the opinion of these institutions.

ExportUnlimited BusinessMirror

PHL energy sector takes center stage in world’s biggest industry event

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HE country’s booming energy industry is expected to get more foreign investors as the Philippine government ramps up its nontraditional trade and investments promotion drive in the upcoming Hannover Messe in Hannover, Germany, from April 23 to 27.

The Department of Trade and Industry‐Center for International Trade Expositions and Missions (DTI‐Citem) is keen on attracting more investments for the country’s energy sector through export-promotion activities in line with the government’s Philippine Energy Plan (PEP) 2012‐2030.

“We are elevating trade and investment promotion to a whole new level as we tap our partners from the energy sector for inclusive growth in a collective participation in this world’s most important industrial trade show and the largest capital goods exhibition in Germany,” said Nora K. Terrado, DTI undersecretary for Trade and Investments Promotion Group.

Hannover Messe covers the complete picture of the world’s five industrial value‐adding chain under one roof, namely energy; integrated automation, motion and drivers, or IAMD; industrial supply; research and technology; and digital factory.

In 2017 the Germany‐based event gathered 6,500 companies from

over 70 nations and was attended by 225,000 visitors and trade buyers across the world, generating around 5.6 million partnerships, business models and other contacts.

“As a melting pot of the global industrial-value chain, Hannover Messe is the prime platform to drumbeat and build up investor confidence on the Philippines as a global powerhouse of renewable energy and other relevant technologies,” Terrado said.

Aside from renewable energy, the DTI‐Citem also seeks to secure investments for local stakeholders in energy efficiency, conservation and transmission in the Philippines.

With the theme “Solutions for the New Era of Energy,” the energy sector of Hannover Messe 2018 will focus on innovative technologies for electric power systems to become more flexible, to intelligently connect sectors and to engage new market participants amid an increasingly decentralized global energy chain.

In preparation for Hannover Messe, Terrado said they are gathering a pool of 15 Philippine com-

panies that represent the nation’s best foot forward in terms of energy systems, technology, services and other industrial goods.

“Through this synergy among stakeholders, we will be able to seal partnerships with foreign investors and mobilize much‐needed funding and infrastructure to our energy players,” Terrado said. “It will also give motivation to our local energy stakeholders to fast‐track efforts toward the mainstream use of renewableenergy sources in the Philippines as more and more countries have started their industrial shift toward more sustainable power sources.”

Part of the DTI‐Citem’s energyinvestment drive is to arrange business‐matching meetings between Philippine renewable-energy companies to potential investors, technology adapters, developers, suppliers and other local energy stakeholders in the international tradeshow.

Renewable energy is defined as energy generated from natural processes that are continuously replenished, which includes biomass, geothermal, hydro, wind, solar and ocean energy under the PEP 2012‐2030.

It has been identified in the Investment Priority Plan 2017‐2019 as an emerging sector that needs government intervention particularly in export promotion.

Based on the Department of Energy Philippine Power Situation Report, the country’s total power capacity in 2016 is at 53.16 million tons of oil equivalent (MTOE) with renewable energy occupying the second-largest share at 32.5 percent,

only next to coal at 34.6 percent.

The top renewable-energy sources in the Philippines are hydropower (16.9 percent) and geothermal (8.9 percent), followed by biomass, wind and solar (6.6 percent).

In a separate statement, the energy department also said the Philippines has an operational wind energy of 426 megawatts, one of the highest in Southeast Asia. The country enjoys this distinction because of its strategic location where international financial institutions like the World Bank and Asian Development Bank have regional offices.

These international FIs provide loans to countries of the world for capital programs relating to social and economic development.

The International Geothermal Association said the Philippines also ranks second to the United States in producing geothermal energy worldwide.

Based on Bloomberg’s New Energy Finance “New Energy Outlook” report, solar and wind power generation will dominate the future of electricity where 72 percent of the $10.2 trillion spent on new power generation and installation worldwide between 2017 to 2040 will be invested in new solar photovoltaic plants and wind parks.

This Bloomberg report also said the increase of wind capacity will contribute to a higher share of renewable energy in the overall energy mix, thus increasing energy security and reducing carbon-dioxide emission.

Unlike other types of power plants, wind energy emits no air pollutants or greenhouse gases.

Editor: Efleda P. Campos • Wednesday, March 14, 2018 A9

DTI chief lauds Senate approval of PHL-Efta free-trade agreement

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RADE Secretary Ramon M. Lopez hailed the ratification of the Senate of the Philippines the European Free Trade Association Free Trade Agreement (PHEfta FTA) during its third reading on March 5.

“The PHL-Efta FTA is in line with President Duterte’s strategy of pursuing trade relations with non-traditional as well as high-potential trade partners. With this ratification, the Philippines will benefit from expanded trade engagements with non-EU [European Union] members even as it gives us greater access to the European market,” Lopez said.

The agreement will allow dutyfree market access between the Philippines and the Efta memberstates (Iceland, Liechtenstein, Norway and Switzerland) to trade products and services and facilitate investments.

Lopez said, “While there’s a large potential to expand our trade and investment relations with Efta, the FTA also capitalizes on it since trade goods between the Philippines and Efta are noncompeting.”

The FTA benefits the Philippines especially in exporting agricultural, industrial and fishery products. Once the FTA is in place, Efta will grant duty-free market access to all industrial and fishery products from the Philippines.

The Philippines will also gain tax incentives on agricultural products, particularly those that are currently being exported to the Efta memberstates, such as desiccated coconut, prepared or preserved pineapples and raw cane sugar; and with high potential export interest, including

those exported to neighboring European countries, which can be alternatively exported to Efta countries.

“This will improve the country’s market share vis-à-vis the other Asean countries in the Efta market.

The Philippines can take the opportunity to position itself as Efta’s primary import source of these products,” said Sen. Loren B. Legarda, chairman of the Senate Committee on Foreign Relations during her speech at the Senate on February 26.

In return, the Philippines will also grant Efta countries duty-free market access on most industrial and fishery products, as well as market access on goods, such as temperate fruits, mineral and aerated waters, food preparations, chocolate, cheese and wine.

The agreement will also welcome foreign investments on renewable energy, computer and related services (IT-BPM), construction, env ironmenta l ser v ices, maritime transport and finance.

Highly skilled Filipino workers will also have easier entry in the four countries. The agreement allows temporary stay of the following service suppliers, without the need for an economic needs test: executives, managers and specialists (who are intracorporate transfers); business visitors; contractual service suppliers; and installers of service-industrial machinery.

The Philippines-Efta FTA will be effective three months after its ratification in the Philippines and at least one Efta member-state. Once implemented, this is the Philippines’s second bilateral FTA after the JapanPhilippine Economic Partnership Agreement in 2008.

DTI sets information session on ‘China Intl Import Expo: Gateway to China Market’ Matrade Promotion Program in Manila from March 11-18

By RD Velasco

Market Innovation Division, DTI-EMB

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HE Department of Trade and Industry (DTI), in partnership with the Philippine Chamber of Commerce and Industry (PCCI), is set to lead the Philippines’s participation in the maiden edition of the China International Import Expo (CIIE) from November 5 to 10 at the National Exhibition and Convention Center in Shanghai, China.

The CIIE would be the Philippines’s biggest-ever country participation in an overseas trade fair, with over 100 Philippine product and service exporters, investors and government representatives.

Personally announced by Chinese President Xi Jinping during the Belt and Road Forum, the CIIE is a major international event that opens the Chinese market to the world. CIIE is the only trade show in China to date that will feature foreign exhibitors, with no Chinese companies on the exhibit floor.

China is expecting to import goods and ser vices worth more than $10 trillion in the following years, and this provides a historic trade event for enterprises worldwide to enter the huge Chinese market. Following this important announcement, the DTI seizes this window of opportunity to promote Philippine products and ser vices and be able to achieve a significant share of the China market.

The CIIE will focus mainly

TRADE Secretary Ramon M. Lopez (center) discusses with officials of the Chinese Embassy and the Philippine Chamber of Commerce and Industry the country’s participation in the China International Import Expo from November 5 to 10 at the National Exhibition and Convention Center in Shanghai, China. To his right is Trade Undersecretary Nora K. Terrado of the Trade and Investments Promotion Group.

on importation of goods and services to China. The section of trade in goods includes six exhibitions areas: High-end Intelligent Equipment; Consumer Electronics and Appliances; Automobile; Apparel, Accessories and Consumer Goods; Food and Agricultural Products; and Medical Equipment and Medical Care Products. The section of trade in services comprises Tourism Services, Emerging Technologies, Culture and Education, Creative

Design and Service Outsourcing.

To promote this event, the DTI partnered with the PCCI, the Bank of China and the Chinese Embassy in Manila to conduct CIIE road shows in Manila, Cebu and Davao. The CIIE Roadshow, dubbed as the “China International Import Expo: Your Gateway to the China Market,” will include a presentation on CIIE and discussion on export opportunities in China and its import regulations.

The information session in Manila will be held on March 15,

from 9 a.m. to 2 p.m., at Fairmont Hotel, Makati City, to be followed

by Cebu and Davao on March 20 and March 23 respectively.

For more information, please find attached exhibition brochure or visit their web site at www. neccsh.com.

For inquiries or to express interest in joining the CIIE, you may contact Rowena Mendoza through the e-mail address Rmendoza@citem.com.ph, or to Eva Marie Mariquina at emmariquina@citem.com.ph on or before April 6.

HE Malaysia Promotion Program (MPP) is currently taking in Manila from March 11 to 18, under the theme “Choose Malaysia.”

The MPP is aimed to promote greater trade, investment and tourism activities between Malaysia and the Philippines. Previous editions of MPP were held in London and Sydney. This year Manila is chosen for its 2018 edition.

Trade between Malaysia and the Philippines in 2017 was registered at $5.93 billion, an increase of 21.4 percent, from 2016. Malaysia exports to the Philippines were valued at $3.84 billion, while imports accounted for $2.09 billion with both exports and imports increasing by 16.7 percent and 31.3 percent, respectively. Trade was in favor of Malaysia with $1.75 billion of trade surplus recorded in 2017. The Philippines was Malaysia’s 15th-largest trading partner in 2017.

Current economic development in the Philippines especially in the digital economy and “Build, Build, Build” agenda has created more interest from Malaysian suppliers and service providers to venture into this country.

In March 70 Malaysian companies and government agencies in various industries, such as information and communications technology (ICT), construction and building materials, furniture, food and beverages will be in Manila to meet with their counterparts.

In conjunction with MPP, Matrade organized the Malaysia Business Forum on March 12 at Makati Shangri-La. The theme, is “Leveraging Partnership: Asean and Beyond,” is to encourage businesses in both countries to further engage in cross-border trade and investment.

Partnership between MalaysiaPhilippines businesses is encouraged in venturing into other Association of Southeast Asian Nations member-states and other regions.

Dato’ Sri Mustapa Mohamed, minister of International Trade and Industry Malaysia, delivered the keynote address. Breakout sessions to discuss further on collaborations in ICT and construction industries were held in the afternoon.

Citarasa Malaysia or, simply “taste of Malaysia,” is aimed to promote Malaysia’s food and beverage, culture and tourism. This event was held from March 11 to 13 at Glorietta 2, Activity Center, Palm Drive, from 10 a.m. to 8 p.m. Activities arranged included Malaysian cultural performances, business matching, quizzes, food sampling and food demo.

About 30 Malaysian exporters of quality building and construction materials and furniture would be participating in Worldbex 2018.

Matrade is the national tradepromotion agency of Malaysia. It is actively involved in assisting foreign companies sourcing for Malaysian products and services.

Philippine trade department holds trade and investment forum in New York

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EW YORK—The Department of Trade and Industry (DTI) with its Trade and Investments Promotion Group led a business forum in New York focusing on topnotch health-care informationmanagement services being offered

by world-class Philippine companies.

The 2018 Healthcare Information Management Services Business Forum was held at the Kalayaan Hall of the Philippine Center in New York on February 26, 2018.

DTI Trade and Investments Promo-

tion Group Undersecretary Nora K. Terrado led the Philippine delegation composed of seven officials from businessprocess outsourcing (BPO) companies and two industry associations.

The Philippine Trade and Investment Center in New York (PTIC New

York) organized the forum in cooperation with Healthcare Information Management Association of the Philippines.

New York was the first destination of the road show, which ended in Las Vegas where the Philippine business delegation participated in the annual exhi-

bition organized by American Health Information Management Association.

Terrado delivered a keynote speech highlighting the country’s 10-point socioeconomic agenda underpinning DTI’s support for the development and promotion of IT-BPO clusters in

selected new wave cities.

Terrado also emphasized the inclusion of capacity-building infrastructure in the countryside, and the recalibration of the DTI’s support for micro, small and medium enterprises, and technology-driven start-ups.

A10 Wednesday, March 14, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

We need agripreneurs

S

even years ago, Sen. Francis N. Pangilinan expressed alarm over the apparent disinterest of young Filipinos to go into farming. Pangilinan, who previously headed the Senate Committee on Food and Agriculture, said the average age of Filipino farmers is 57 years old and that a new generation of farmers is needed to ensure the country’s food security.

He noted that the young were not excited about farming because it was not a viable source of income.

During a presentation on the Department of Agriculture’s (DA) budget for 2012, officials disclosed that the annual income of farmers averaged only P17,000 in 2009. This meant that their monthly income reached only P2,000 a month. The amount was not even enough to buy rice and other basic necessities.

The figures released by the Philippine Statistics Authority (PSA) in 2017 did not help to dispel the notion that farming in the Philippines is a backbreaking work that offers little reward. Data from the PSA released in June 2017 showed that five of the nine basic sectors have higher poverty incidence than the general population.

Among the nine basic sectors, the PSA said farmers and fishermen consistently posted the highest poverty incidence. Poverty incidence among farmers and fishermen reached 34.3 percent and 34 percent, respectively. The figure is higher than the 2015 poverty incidence of 21.6 percent.

In another report, titled “Updated Production Costs and Returns of Selected Agricultural Commodities,” released last October the PSA disclosed that the gross receipts from planting rice averaged P67,436 per hectare in 2016. The net returns averaged P19,811 per hectare. For every peso of investment in palay production, rice farmers earned an average of P0.42. According to the same report, corn farmers grossed an average of P34,664 per hectare and netted P12,366 per hectare.

These figures can be disheartening, particularly to those who till an average farm area of only 1 hectare. According to a PSA report released in 2015, about 98 percent of the total farms/holdings in the Philippines in 2012 were 7 hectares and below. Of these, 3 in every 5 farms/holdings were below 1 hectare, with an average area of 0.28 hectare per farm/holding.

Agriculture Secretary Emmanuel F. Piñol said earlier that his dream is to entice the youth to go into farming. One of his proposals is to teach agriculture subjects to elementary and highschool students. This is to make it easier for them to go into “entrepreneurial farming” or “agripreneurship.”

But this venture requires the government’s firm resolve to help the current breed of farmers transition into “agripreneurship and to develop the youth’s interest in farming.” Former Agriculture Secretary William D. Dar said farmers must be given access to credit, capacity training, and links to manufacture and trade, initiatives that cannot be done without financial support from the government.

The Duterte administration has shown its resolve in fighting the drug menace. It is hoped that the same resolve will be seen in helping farmers become productive agripreneurs.

Since 2005

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RACE to ensure employer compliance Art Amansec

All About Social Security

F

ilipinos are known to be diligent and dedicated workers, always ready to do their assigned tasks, finish it on time or earlier, but always with high quality. The desire to always be good at work stems from the innate love for family among Filipinos, because to do their jobs well is to provide a decent life for their families. Most of the time, they forgo their material wants just to provide for the needs of their loved ones.

Aside from their regular jobs, Filipinos also do other work to earn additional money. They take on extra jobs, sometimes more than two, just to make ends meet. Overworked is an understatement, but for the working men and women, they can endure anything to afford a more comfortable life for their families.

Filipinos also have the talent of being able to save even a small amount of their hard-earned money for future needs—either in the bank, through an insurance or even in a piggy bank or alkansya. One will be amazed at how good Filipinos are in saving money, despite all the expenses they have to pay to provide for the needs of their families.

While these workers are busy providing support and protection to their loved ones, they also need security for themselves, especially in

times of contingencies. They need insurance, which they can rely on during sickness, disability or even death.

To provide protection to working class in the private sectors, Republic Act 8282, otherwise known as Social Security Act of 1997, requires that employers mandatorily report their employees within 30 days from start of work and remit SSS contributions monthly.

Under the SS law, employers are required to pay Social Security System contributions monthly and submit SSS Form R3 or Contribution Collection List 10 days after the applicable quarter where the names of employees, SSS numbers and amount of contributions are indicated. The Collection List is required so the SSS could post the correct amount of contribution to each employee.

Contributions to SSS vary because

the 11-percent contribution rate is applied to the salary bracket of an employee but only at a maximum of P16,000. But, do all employers comply with what is required of them under the law? Sadly, the answer is no. Almost everyday, SSS receives complaints for non-reporting and non-remittance of SSS contributions from former and current employees of companies. They claim that their companies religiously deduct employees’ share from their salaries and yet, not even a single month of contribution is posted in their account. They have been working for the same company for many years and yet, no single payment was made by their employer.

As of September 2017 more than 60,000 employers are considered delinquent based on SSS records.

These employers are either guilty of non-reporting of employees for SSS coverage, non-remittance of SSS contributions or both. These omissions committed by the employers are clear violations of the SS law.

To put a stop to these illegal practices, the SSS launched the Run After Contribution Evaders (RACE) campaign, led by the Operations Legal Services Division, early last year. This entails the posting of a show-cause order on establishments which are noncompliant with SS law. Establishments where the show-cause order was posted must reply within a non-extendible period of 15 days from posting, otherwise legal action will be taken against them.

The SSS already conducted

Fire tariff in the Philippines Dennis B. Funa

INSURANCE FORUM

U

nder Section 169 of the Insurance Code, the term “fire insurance” shall include insurance against loss by fire, lightning, windstorm, tornado or earthquake and other allied risks, when such risks are covered by extension to fire insurance policies or under separate policies.

Fire insurance policies are among those tariffed products. It was deemed that setting tariffs was needed to address the cutthroat competition plaguing the insurance market. Premiums being paid are not commensurate to the risks being carried by insurers. In other words, insurers are undercharging. This scenario can eventually affect their ability to meet their obligations under the policies. Thus, insurers cannot set the premiums lower than the prescribed rates. The premiums can go higher, but not lower. Nonetheless, widespread breaches have been observed, which led the commission to issue repeated reminders and reiterations to the industry. Violations of

tariff rules for the year 2014 reached 3,368 breaches, which resulted in the collection of P5.41 million in penalties collected by the commission. Of the total breaches, 65.77 percent and 21.56 percent, respectively, were attributed mainly to motor car and fire policies.

In 2015 insurers paid a total of P21 million in fines for breaches of tariffs.

On December 4, 1986, Insurance Commissioner Armando Ansaldo approved the Pira Fire Manual. Philippine Insurers and Reinsurers Association (Pira), as a rating organization, drafted the Pira Fire Manual of rates providing for the minimum rate for fire insurance policies. The rates were fixed according to various factors,

such as: a) the location of the property; b) type of construction materials used; c) number of occupancy; and d) the nature of the use of the property whether general, industrial, residential or commercial.

Subsequently, this was revised in 1997, such that the Insurance Commission approved a Revised Fire Tariff (Fire Tariff Manual of 1998) once more on September 17, 1997, for policies with inception dates from January 1, 1998.

Circular Letter 13-97 was issued on November 6, 1997, implementing the approval. The 1998 tariff provided for a minimum rate of 0.15 percent for earthquake fire and earthquake shock. This tariff for earthquake insurance was, however, revised to 0.10 percent, for all structures by Circular Letter 5-2000 (April 25, 2000). The 1998 tariff also provided for a minimum rate of 0.05 percent for typhoon and/or floods; and 0.010 percent for extended coverages, such as explosions, smoke and others.

In Circular Letter 29-2006 (July 27, 2006), it was clarified that the minimum rate for earthquake, and typhoon and flood shall also apply to such perils under policies, such as Industrial All Risks Policies, Commercial All Risks Policies, Electronic Equipment Insurance, Homeowners and Commercial Package Policies, and

several RACE activities last year with the first provincial RACE conducted last week at Robinsons Place in Lipa, Batangas. More of these mapping and coverage activities will be conducted in the regions this year.

But SSS will not stop here.

The SSS will conduct more RACE activities this year to constantly remind employers of their obligation to SSS and until full compliance from them is made. This campaign will stretch throughout the country to track down erring employers and make them liable under the SS law.

The SSS will ensure that its members are protected and will enjoy the benefits provided under the law while they are taking care of their families.

However, the SSS is calling all its member-employees to help the pension fund by being vigilant with their SSS accounts. They need to regularly check if their monthly contributions are being remitted by their employers and immediately inform SSS of any anomaly at the first instance that they discover it.

To report non-remittance of contributions and non-reporting to SSS for coverage, employees need to visit the nearest SSS branch and show proof of employment, such as company ID and payslip, among others.

Members can also call the SSS hot line at 920-6446 to 55 or e-mail to member_relations@sss.gov.ph.

Together, let us put a stop to all violations under the SS law and start making employers comply with their obligations under the law.

Equipment Floater Policies.

In Circular Letter 39-2006 (December 7, 2006) it was clarified that the minimum rate applies whether only typhoon or only flood cover is taken.

It was also clarified that the minimum rates apply to the total sum insured whether a policy is issued on a “loss limit” basis, “first loss” basis or with higher than the standard deductibles.

Circular Letter 8-2007 (April 23, 2007) imposed a maximum commission rate of 15 percent for policies with a single composite rate (covering fire and allied perils inclusive of natural perils). The circular explained the need for setting maximum commission rates, “minimum premium rates for natural perils cover are required by the Insurance Commission to enable insurance companies to build up their reserves and ensure their capacity to respond to losses and meet their liabilities on policies covering natural catastrophic perils. Information have been received that some insurers resort to paying excessively high commissions in order to circumvent provisions of Circular Letter 39-2006.”

Lawyer Dennis B. Funa is the current insurance commissioner. Funa was appointed by President Duterte as the new insurance commissioner in December 2016. E-mail: dennisfuna@yahoo.com.

Opinion BusinessMirror

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The bedrock is decency

Sereno’s Supreme Court imbroglio and Hitler’s Carl Schmitt

Teddy Locsin Jr.

Michael Makabenta Alunan

Free fire Continued from A1

I

T turned out to be rather worse than that, but the consensus among us the night before was not to react to it but, instead, give an elegant statement sublimely indifferent to everything he was sure to say, although I suggested giving him a stiff arm salute at the opening of the second Round of Negotiations: Session 1 (Differentiation between Irregular and Regular) Global Compact for Safe, Orderly and Regular Migration at the Trusteeship Council Chamber, UN Headquarters, New York, on March 12, 2018, 10 a.m. I believe that is one straight sentence a la but not quite Julio Cortazar.

“Thank you, co-facilitators.

“Since the adoption of the New York Declaration in 2016, we have journeyed together on an exhaustive preparatory process, to discuss the major issues that a Global Compact for Safe, Orderly and Regular Migration should address.

“In particular, the Philippines recalls the sixth Thematic Session of the consultation phase, in which delegations expressed their views on the topic of ‘Irregular migration and regular pathways, including decent work, labor mobility, recognition of skills and qualifications and other relevant measures.’ The issue brief and co-facilitators’ summary provide in-depth analyses and capture the views of states and stakeholders.

“In his report, ‘Making migration work for all,’ Secretary-General Antonio Guterres synthesized the discussions and inputs received over this two-year preparatory process and strongly cautioned against the temptation of making ‘a binary division between regular and irregular migrants.’

He adds: “Regular migrants range from individuals on shortterm work or student visas to permanent residents of foreign countries, and those who acquire a new citizenship. Likewise, there is a spectrum of irregular migration, from overstaying a visa to deliberate efforts to undermine border controls…. There is no one single answer, just as there is not one singular problem to solve.

“We therefore welcomed the zero draft for its nuanced approach to the issue and its recognition that people are—and must be—at the center of the Global Compact. In this light, we find that this structure of discussions, on ‘differentiation between regular and irregular’ creates a false and dangerous dichotomy that falls into the trap the secretary-general warned us against.

“Our message is simple: all migrants must be treated with dignity, regardless of their migration status.

“In the New York Declaration, we committed to ensure safe, orderly and regular migration involving full respect for human rights and the humane treatment of migrants, regardless of migration status. We underlined the need to ensure respect for the dignity of migrants and the protection of their rights under applicable international

law, including the principle of nondiscrimination. The Global Compact can do no less. It is meant to go forward, not back; to weave a wider pattern of stronger protection, not unravel what the world community already agreed upon.

“This commitment does not arise out of a vacuum, or out of the self-interest of sending states. The United Nations was founded for purpose of protecting humanity, and on the assumption that a state would abhor its citizens abusing strangers as much as strangers fear being abused. As the UN Charter eloquently proclaims, the peoples of the UN came together determined ‘to reaffirm faith in fundamental human rights, in the dignity and worth of the human person, in the equal rights of men and women, and of nations large and small.’ This is upheld by the Universal Declaration on Human Rights.

“Ensuring full respect for human rights of migrants does not mean mere recognition of these rights. It also means providing them access to basic services that those rights necessarily entail. As much as the vulnerable from anywhere are entitled to it, so humanity is obliged to extend it to them.

“Let us recall that the first guiding principle of this Global Compact is that it must be ‘people centered.’

We are talking about lives here. So the primary focus must be on the people themselves, not on processes.

It seeks, not to organize misery, but relieve it.

“We also recall that the purpose of the Global Compact is to address vulnerabilities of migrants in irregular situations, and expand regular pathways to minimize these vulnerabilities.

“For the Philippines, the protection of our migrants is one of our highest priorities. In the context of abuses of our migrants, we are at a period of policy reflection on our labor migration.

“In closing, we say again: we are setting a moral standard for the world—not just in the purposes we achieve but in the sincerity and civility with which we attain them.

We realize our humanity when we uphold the rights and dignity of every migrant. Thank you.”

What can I add to that except the word, “outstanding?” Angela, take a bow. Quite an experience, a bracing one in fact, working with such smart people.

on the contrary

T

he ongoing imbroglio at the Supreme Court, involving Chief Justice Maria Lourdes A. Sereno at the center of proceedings and threats of forcible resignation, is treading on dangerous constitutional grounds as it smacks of lighter shade of the ideas of Nazi crown jurist Carl Schmitt, the real brains behind the rise of Hitler’s fascism and dictatorship. n Burning strategy to power?

Carl Schmitt’s devious ideas on the “Unitary Executive” justified the rise of a dictator overruling the Judiciary and the legislature. Much earlier, Alexander Hamilton, treasurer of the 1776 American Revolution, also had his idea of a Unitary Executive, but his concept was less insidious than Scmitt’s. Hamilton also pushed for a strong Executive, but he wanted the Legislative and Judiciary branches of government to have enough autonomous powers to prevent any one from dominating each other.

Schmitt argued for a constitutional crisis, after which it became easier to justify the Executive ruling over the other branches of government. So the strategy was to create an emergency crisis through the burning of the Reichstag (German Parliament) that justified the issuance of law-substituting dictatorial decrees similar to those of strongman Marcos. Arthur Versluis revealed this in his book on Carl Schmitt, The Inquisition and Totalitarianism. n There LIES the problem.

There is more to the story of how Hitler came to power, but what’s surprising is how democratic Germany was undermined after its independent Judiciary was weakened,

civil liberties disregarded, and citizens intimidated from independent critical thinking.

And Hitler’s propagandist Joseph Goebbels repeatedly pushed lies even ramming them down people’s throats, thus making him more known notoriously than Schmitt.

Even after the “Night of the Long Knives,” when Goebbels and Himmler massacred Hitler’s opponents, it was Schmitt who justified it as the “right to administer peremptory justice,” even citing the Pope’s bloody Inquisition.

The lies capitalized on people’s fear, prejudice, opportunism and need for self-preservation, which were exchanged for obedience and blind conformity. Fascist ways of peddling lies no longer work effectively today with people now empowered with access to Internet knowledge, although still not enjoyed by the hoi polloi.

More insidious ways of peddling lies have emerged, some cloaked in liberalism and the art of deception by using statistics, or the Orwellian idea of deceptive “double talk” or “double thinking” from George Orwell’s 1984 novel about “Big Brother” fascist controlling people’s lives. Sir Robert Giffen (1837-1910) said there

T

eachers play a significant part in the lives of children, especially during their formative years. They are integral in molding students to become responsible citizens of the country.

They are at our side when we needed guidance, they discipline us when we go astray, they give moral support and encourage us to do more, and to learn more.

They teach us not to give up when we are about to surrender.

There is no proper word to fully describe our caring and dedicated teachers, and there is no career more fulfilling than teaching. No wonder we have

the best teachers in the world. Filipino teachers have become so good in their career that some of our educators are now recognized worldwide as the best in their field.

For example, Dr. Jesus Insilada, the principal of Caninguan National High School in Lambunao, Iloilo, who pioneered the culture-based approach in teaching was recently chosen as one of the top 10 finalists of the Global Teacher Prize from over 30,000 nominations from 173 countries.

Insilada explained that culture-based approach is all about incorporating indigenous and local forms of art such as dances, songs, epics, local games, and crafts to engage the students and help them learn better.

are “three kinds of liars—the liars, outrageous liars, and scientific experts.” He added there are, therefore, also “three types of lies— the usual lies, outrageous lies, and statistics.” n Supreme LIES in court? Regardless of who is telling the truth, whether it is she said, or they said, either party must be twisting the truth on varying issues. Perhaps, Sereno is not a team player as she doesn’t know how to play quid pro quo or the culture of reciprocating favors. She also embarrassed a colleague of plagiarism that has gone public, transgressing traditional cultural norms as it is said in the old tribal ways, insulting one’s dignity was a higher form of crime than murder itself. Worst mistake when she aimed for the top post, traditionally reserved for seniors.

I won’t go into the merits and demerits of the issues, which were raised in 15 Congressional hearings. She was also accused of “subjudice,” which means she cannot do publicity with her case pending in Court, but subjudice applies only to a jury system. Moreover, because she and her lawyers were not able to defend themselves in Congress, which were aired on media, you cannot deprive her of her constitutional rights and universal rights to free speech and free press in her defense. n Force of Law versus Law of Force. Whatever the truth is, this must be raised legitimately through a Senate impeachment trial as constitutionally mandated to let the force of law prevail. Otherwise, any circumvention of this mandate like a forcible resignation thru the “quo warranto” petition may be misconstrued as a Law of Force, which is the law of the beasts in the jungle.

Even Speaker Pantaleon D. Alvarez wants to await the quo warranto decision, claiming it will make the impeachment moot and academic.

But how the impeachment will end, if pushed through, is not important provided it is credible, because at this stage the means or the Rule of Law is more important than the ends. And making legal shortcuts will only be considered total sophistry and a mockery on the rule of law.

It may boomerang and become another precedent, similar to the statement of assets, liabilities, and net worth case of the late Chief Justice Renato Corona now used to impeach Sereno. It can dangerously polarize people anew, making governance more unwieldy. n Who’s behind anti-Sereno, Duterte or others? If it is Duterte himself, he is taking big risks, and confirms his overtures of flirting with the dangerous consequences of becoming a strongman.

But because he has denied openly being behind the oust Sereno campaign, it is likely there are interest groups with whom Duterte still owes political debts, who are behind what seems to be an orchestrated sustained campaign on all fronts to get her head.

As to who they are, let the public elevate levels of discourse so they will learn to make critical analyses themselves. n Court turns into Political circus? Legal luminary and former Sen. Rene Saguisag claims Republic Act 6713 that he coauthored, which requires SALNs, “only slapped a maximum fine of P5,000 if convicted.” It was also “meant more as an administrative, not a criminal offense,” and never as basis for an impeachment.

With the political intramurals in Congress and the Supreme Court, we have disgracefully turned our Supreme Court into a political circus, while the public watch as spectators.

When our courts start playing partisanship politics rather than rule of law, then our democracy is imperiled.

E-mail: mikealunan@yahoo.com

President Duterte’s EO 13 being trivialized Florante S. Solmerin

FACT IS MIGHT!

M

ore than a year after President Duterte signed Executive Order (EO) 13, which launched an all-out war against illegal gambling nationwide, the Philippine National Police (PNP) and its investigation arm, the Criminal Investigation and Detection Group (CIDG), have been inconsequentially implementing the law as jueteng and other forms of illegal gambling, such as peryahan ng bayan, pares, swertres, masiao, etc., are still being operated by politicians and their police accomplices.

Well, the filing of the Certificate of Candidacy in the Commission on Elections for the midterm election in 2019 will be in October. Jueteng is one of the fund sources of politicians who run for positions in the government. Some of those who turn into politicians, or the wannabes, come from the PNP. One example of how the campaign against illegal gambling is being set aside is the resurfacing of the peryahan by an online firm in some parts of Bicol despite the strict order by the Philippine Charity Sweepstakes Office to terminate their operations. In 2016 the PCSO revoked the said firm’s Deed of

Authority to operate the peryahan in some provinces because of its multiple contract violations, such as insufficient remittances or outright failure to remit to the PCSO. The conflict reached the court and, in October 13, 2017, the Regional Trial Court, Branch 161, in Pasig City dismissed the company’s Writ of Injunction.

The company’s propaganda is that their operations are legal, while the PCSO’s Small Town Lottery (STL) is illegal. Ergo, they are deceiving the masses with wrong information because for each draw of the peryahan, they earn millions from said illegal operations.

Filipino teachers as world-class educators

By Gladys Janilette M. Trajano

Wednesday, March 14, 2018 A11

Insilada shared how his approach has changed his school: “It is amazing how culture-based teaching is really keeping the children to stay in school. We have decreased our dropout rate from 5 percent to 1 percent. We even would like to make it to zero percent this school year.”

The Global Teacher Prize is a $1million award presented annually to an exceptional teacher who has made an outstanding contribution to the teaching profession. The prize serves to underline the importance of educators and the fact that, throughout the world, their efforts deserve to be recognized and celebrated.

It seeks to acknowledge the impacts of the very best teachers —not only on their students but also on the communities around them.

Sabrina Ongkiko, a 2016 Ten Outstanding Women of the Nation awardee, initially wanted to become a doctor so she studied biology at the Ateneo de Manila University. Today she teaches science and English to Grade 6 students at Culiat Elementary School in Quezon City.

When asked how she became a teacher, Ongkiko said it is a result of several factors that combined her passion for service, her discovery of her skills, and the need of the country for teachers.

Ongkiko has always been passionate to serve others. Growing up, she heard stories from her dad’s meaningful work for those who have less, including building bridges in hard-to-reach areas.

She can afford any vehicle model she wanted, but every afternoon when

T he per yahan has reached Pioduran, Libon, Oas, Polangi, Guinobatan and Rapu-rapu. It has been reported that the gambling lords offered P10 million as “goodwill money” to governors of the provinces and P300,000 to mayors for the protection of their peryahan operations.

On March 2 PCSO General Manager Alexander Balutan has forwarded a letter addressed to Senior Supt. Rizalito Gapas, regional chief of CIDG 5, and calling the attention of Chief Insp. Luke Ventura, Albay CIDG chief. The said letter identified the company whose peryahan operations must be terminated. Senior Police Officer 1 Michael Caluwag received Balutan’s letter. Here are some of the pertinent paragraphs: “Respectfully informing your office that Globaltech Mobile Online Corporation, [Globaltech for brevity] has been operating an illegal numbers game, through its Peryahan ng Bayan’s ‘Lucky Tres/Swertres’ activity in your area of responsibility.

“In view thereof, PCSO is requesting for your office’s assistance in curbing out this illegal numbersgame activity as stipulated in Section 1 of EO 13 [Annex ‘E’].”

Aside from this, Balutan issued a certification dated February 27, 2018, stating that said operations are illegal.

The PCSO also reminded PNP

of the repercussions awaiting any official or staff and those illegal gambling participants contravening Republic Act 9287 (An Act increasing the penalties for illegal numbers games, amending certain provisions of Presidential Decree 1692, and for other purposes”). The law states that any violator shall be imprisoned for 12 to 20 years and shall be fined P3 million to P5 million, and permanently be disqualified for participating in government elections.

Last, PNP chief General Ronald M. dela Rosa should disseminate copies of the memorandum of agreement to all police commanders, and they must always be reminded that the MOA grants power to every police commander in the country to stop illegal gambling operations in their area.

In 2017 the total amount received by the PNP from the STL earnings is P393,685,541.77. Those who benefited from STL earnings include the PNP National Headquarters (P62.9 million); PNP Regional Offices (P62.9 million); PNP Provincial Offices (P78.7 million); PNP Municipal/City (P110.2 million); CIDG National Headquarters (P31.4 million); CIDG Regional Offices (P31.4 million); and CIDG Provincial Offices (P15.7 million).

classes are dismissed, she is usually seen walking with her pupils from Culiat to Commonwealth Avenue, a good kilometer walk where she spends the time to give the kids additional pep talk. That’s how dedicated this Ateneo graduate is, who takes pride in seeing her former pupils succeed in life. For her, seeing her pupils succeed in life is the best fulfillment a teacher can get.

In 2014 a Filipino teacher who braves hours of daily travel in order to provide basic education to children of the Matigsalog tribe in a remote village in Davao City was chosen as one of the six awardees of the prestigious Ramon Magsaysay Award, considered as Asia’s Nobel Prize.

The organizers said Randy Halasan, 31, was recognized for his “purposeful

dedication in nurturing both his Matigsalog students and their community to transform their lives through quality education and sustainable livelihoods, in ways that respect their uniqueness and preserve their integrity as indigenous peoples in a modernizing Philippines.”

These are just a few of the country’s outstanding educators who represent the millions of Filipino teachers who never get tired making lesson plans and improving the lives of millions of children.

They are the teachers who have made a significant difference in their students’ lives, and they deserve all the honor and recognition being showered them.

E-mail: fetad@yahoo.com.

The author is Teacher 3 in Ubong Elementary School in Solana, Cagayan.

2nd Front Page BusinessMirror

A12 Wednesday, March 14, 2018

Duterte’s pension boost sends SSS hunting for yield abroad

T

he state-run pension fund for private-sector workers will invest overseas for the first time and buy more local stocks to boost returns after President Duterte delivered on a campaign pledge to increase pensions.

The P500 -billion ($9.6 -billion) Social Security System (SSS) may invest as much as P37.5 billion abroad, the fund’s President Emmanuel F. Dooc said in an interview. SSS, which covers 36 million workers, may also buy up

to P35 billion more of Philippine stocks, adding to a P100-billion equities portfolio that is overweight utilities, he added.

“We want better returns,” Dooc said. “We also don’t want to put all our eggs in one market.”

₧37.5B The amount that the Social Security System is likely to invest overseas

The Philippines joins a global trend of pension funds struggling to meet their commitments as longevity increases and investment returns dwindle—which the World Economic Forum last June said will lead to a $400trillion shortfall in retirement savings globally.

Duterte’s boost to pensions will cause SSS to run out of money by

2032, 10 years sooner than forecast, while a proposal to nearly double maternity leave entitlements could add a further P5 billion to the fund’s annual payments, Dooc said.

Dooc added that while he supports Duterte’s initiatives, “it has to be done in such a way that it will not deplete the fund.” He said he hopes lawmakers will this year amend the fund’s charter to give it greater independence in making decisions, including raising member contributions.

The SSS also needs more flexibility in investing, he noted. Currently, it can hold 40 percent of funds in Philippine government bonds, 30 percent in local stocks and 10 percent in loans to mem-

bers. It is authorized to invest 7.5 percent overseas, but hasn’t previously done so.

Dooc also wants to offer more member-loans, but is near the ceiling. About 23 percent of the fund is invested in stocks, giving room to buy more equities.

The fund generated a 6.7-percent return last year, and placing some of its portfolio overseas will hopefully reap higher yields, he said. The benchmark Philippine stock index has fallen 1.2 percent this year after rising 25 percent in 2017.

The SSS also plans to hire as many as eight domestic fund managers to each manage P1 billion of stocks, fixed income or a mix of both, Dooc said. Bloomberg News

Despite controversies, ‘Laboracay’ is still a go…so far Continued from A1

Laboracay visitors were accounted for by locals.

In a text message, lawyer Mark Vernon Aquino of DOT Region 6 (Western Visayas) said “per conversation with the Mayor’s Office and the Municipal Tourism Office, [there has been] no notice of cancellation of Laboracay. As of the moment, it’s still a go.”

Karl Chusuey, vice president for marketing of Henann Group of Resorts, confirmed to the BusinessMirror that the resort group will be holding its Jungle Circuit parties as scheduled. “So far yes, it will happen,” he said.

Jungle Circuit has been described as one of the hottest parties for the LBGTQ community with featured local and international DJs spinning dance music. Tickets to the event are being sold through SM Tickets at P500 each.

A source among Boracay stakeholders who declined to be named, said, though, that most event organizers are “still waiting for guidelines from the local government unit on Laboracay events, including the music festival.”

Despite this, tickets for the Boracay Music Festival are already being sold via SM Tickets. While no updates are available regarding performers, VIP tickets are going for P1,500 per day per piece.

With its main stage at Om Bar, last year’s performers included electronic musician and recordproducing icon Chicane, Lush & Simon and Tom Taus.

Meanwhile, a communications officer from Coca-Cola Femsa, a key sponsor of Laboracay parties, said, “they are still finalizing the details of the sponsorship,” and declined to reveal any further details.

Another major sponsor and party organizer, Globe Telecommunications, declined to comment about their participation this year. Its event last year, Globe Sunkissed 2017, was well attended, and featured local and international DJs. A popular alcoholic beverage company has yet to make up its mind about sponsoring this year’s events given the controversies around the island; President Duterte has described Boracay a “cesspool” due to the polluted waters of Bulabog beach. The

Department of Environment and Natural Resources (DENR) has issued notices of violations to several resorts for easement and environmental regulations.

“I suppose if Laboracay will push through, [the major sponsors, such as telcos] need to show proof that they’re compliant with environmental requirements,” said a company official, who requested anony mit y as he was not authorized to speak on the matter. Only then will his company make the decision whether to be a sponsor of those parties this year.

Although generally well received as a big business booster, Laboracay has its share of critics. A number of residents have complained that the aftermath of each event is a big trash nightmare, and revelers often run to the beach waters to relieve themselves while parties are ongoing, instead of using toilets.

Petty theft and crime have also been noticed on the rise, especially during the five-day revelry. One frequent attendee said she stopped going to Laboracay, “when the drugs came in.”

In response to the event’s critics, Chusuey said, “well, every year, less and less people go to Laboracay, so I’m assuming this year will be the same. Hopefully, the local government will implement strict rules in controlling violations that may arise.”

For her part, Sam Sanchez of Coca-Cola Femsa said: “We have always participated in the beach cleanup in partnership with the local government, to ensure that we do our part in keeping Boracay clean for the past years. We also distribute communication materials, as well as bins, to remind people to dispose of their trash properly. We believe that our business will only be as sustainable as the communities we serve. It is, therefore, imperative that as a company, we do our share in helping solve the waste problem.”

President Duterte has given the DENR and the Department of the Interior and Local Government six months to clean up and rehabilitate Boracay, which consistently rates as among the most popular islands and beaches in the world.

RETRO A 1933 Ford Model B Standard 5 Window Coupe that stopped beside an Isuzu truck at a street in Quezon City brings back memories for those who grew up during the postwar Philippines and for Filipino millennials seeking a retro culture. Two years ago the government tried, but failed, to limit vintage cars on the streets of the metropolis. NONIE REYES

www.businessmirror.com.ph

PPCRV backs Con-com’s proposal not to ban dynasties SARMIENTO: “It was a balanced and prudent decision— regulating it and not totally banning [it].”

By Samuel P. Medenilla @sam_medenilla

C

hurch-based election watchdog Parish Pastoral Council for Responsible Voting (PPCRV) on Tuesday lauded the “prudent” decision of the consultative committee (Con-com) reviewing the 1987 Constitution to regulate—instead of banning outright—political dynasties.

“It was a balanced and prudent decision—regulating it and not totally banning [it],” PPCRV Chairman Rene Sarmiento said. “ The country should not be completely deprived of talented and patriotic Filipinos.”

On Monday the Con-com recommended the inclusion of a self-executing provision in the new Constitution banning elective officials up to second degree of consanguinity and affinity to succeed them.

Sarmiento said the provision is consistent with Article II, Section 26 of the 1987 Constitution, which, he added, “prohibits political dynasties as may be defined by law.”

The former commissioner of the Commission on Elections said the proposal of the Con-com will effectively minimize political dynasties, but still ensure competent Filipinos can still be elected.

The “regulated ban” covers parents, siblings, grandparents, children and grandchildren (whether legitimate, illegitimate, legitimated, adopted or step). Step relatives, such as step parents and step brothers and stisters, and stepchildren are also prohibited, as they are considered the same as blood relationship.

An incumbent official’s spouse, parentsin-law and brothers-in-law and sisters-inlaw, grandparents-in-law, spouses of the politician’s siblings and their spouses are also not allowed as they are covered by the second-degree ban by affinity.

Because of the complexity of the issue, the committee also deferred voting on whether relatives of incumbent officials up to second degree of consanguinity and affinity will be allowed to simultaneously run or hold multiple positions.

Pcc steadily strengthening competition regime with every decision–Balisacan Continued from A1

A fine of P19.6 million, or equivalent to 1 percent of the value of merger transaction, was slapped on Dennis Uy-led Udenna Corp. and KGL Investment Cooperatief U.A. (KGLI Coop) for their failure to notify the PCC of the merger, as mandated by the competition law. On top of this, the merger was also voided.

Udenna is a domestic holding company whose subsidiaries are engaged in the distribution and retailing of petroleum products, commercial shipping, among others, while KGLI Coop and KGLIBV are both domiciled in the Netherlands.

The transaction involved the sale to Udenna by KGLI Coop of all of its shares in KGL Investment B.V., in which, at the time of transaction, owned 39.71 percent of KGLI-NM Holdings Inc., a Philippine company that partly owns Negros Navigation Co. Inc. (Nenaco).

Last December the PCC got a tip through a letter complaint about the transaction.

In the decision, the commission found out that their merger transaction was worth $120 million, thus, it met the P1-billion default threshold at that time.

The PCC just last week raised the barometer for transacting parties

to notify the PCC to P5 billion for the Size of Person and P2 billion for the Size of Transaction.

Under Section 17 of the PCA, parties who committed failure to notify the PCC of a transaction that meets the threshold will be slapped with a fine ranging from 1 percent to 5 percent in transaction value and their business deal will be voided.

During the investigation, the PCC Mergers and Acquisitions Office found out that Udenna bought the entire shareholdings of KGLI-BV, as signed by two parties through a share purchase agreement dated July 28, 2016, and the deal was consummated as reflected in a Deed of Transfer dated August 2016.

“The law is clear: An agreement consummated in violation of the competition law’s compulsor y notification requirement shall be fined and is considered void,” the commission decision read.

“It’s one thing for transactions to be found as anticompetitive during the review. It’s another thing when businesses evade the legal requirement of notification in the first place.”

“This is a reminder for companies to comply with the Philippine Competition Act), including filing a sufficient notification prior to

consummation of a merger that meets the thresholds,” the PCC added.

Balisacan said the voided merger sends the right message to other companies that they should comply with the competition law.

He also urged businesses to consult with PCC staff so they can help them if they have concerns.

But in an earlier statement, Udenna said the decision to declare the transaction void and at the same time impose a penalty of P19.7 million was “unduly harsh and uncalled for.” “ The subject transaction was executed one month after the implementing rules and regulations of the Philippine Competition Act took effect, which is the basis for the decision of the PCC. Udenna acted in good faith in consummating the transaction based on its inter pretation of the newly issued rules of the PCC, which, in Udenna’s opinion, are ambiguous. At the time of completion of the subject transaction, the PCC rules were new, and Udenna had no guidelines, interpretative rulings or precedents to rely on,” said Adel Tamano, vice president for corporate affairs of Udenna.

Tamano said Udenna is currently weighing its legal options

since it believes that it has sufficient basis to challenge the PCC decision, either with a motion for reconsideration with PCC or through a petition to the Court of Appeals. Udenna has also the option to submit to the PCC decision and file a notification to the PCC.

The tasks at hand

Since the PCC’s establishment in 2016, it has received 152 notifications, 41 of which were global mergers, with a combined worth of P2.25 trillion. There are a total of 127 approved M&As by the commission. The majority of transactions came from the manufacturing, financial, electricity, real estate and transportation sectors.

With only more than 140 people, the PCC seems to be confronted with a Herculean task in performing its mandate nationwide.

But Balisacan said there are also “easy” cases for the commission, like the acquisition by Chinabased Ningbo Joyson Electronic Corp. of Japanese airbag maker Takata Corp. assets. It was cleared by the PCC recently because the commission deemed the transaction competitive and will maintain competition in the market of automotive-safety systems.

Continued on A2