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n Friday, March 16, 2018 Vol. 13 No. 156
Cimatu’s decision: Close Boracay for up to 1 year By Ma. Stella F. Arnaldo
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@akosistellaBM Special to the BusinessMirror
HE interagency task force on Boracay will be recommending the declaration of a state of calamity for six months, and a closure of the popular resort island starting on April 26. This was revealed by Environment Secretary Roy A. Cimatu and other members of the task force during a news briefing at the Department of Tourism (DOT) on Thursday afternoon. “[For] public
health, public interest and general welfare, I recommend to the President the closure of Boracay Island as a tourist destination for a maximum of one year, effective one month after the declaration,”
CIMATU: “The exponential rise in tourist arrivals and the inadequate sewer capacity and the old sewer lines will further aggravate the situation.”
he said in a prepared statement. He added this period of closure will give the national government “ample time for the undisrupted implementation” of several measures that will help restore a nd su st a i n t he i sl a nd a s a major destination.
Dr. Jesus Lim Arranza
Make Sense
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s the country’s steel industry flexes its arms in preparation for the expected demand surge of its products like steel bars, among others, owing to the government’s multitrillion-peso ”Build, Build, Build” program, let me go back to the 2016 importation of 4,929 metric tons of deformed bars from China by Mannage Resources Trading Corp. (MRTC) that arrived at the Subic Port, which was held by the Bureau of Customs (BOC) for standard compliance issues, and later released upon the Zambales Department of Trade and Industry’s (DTI) issuance of a provisional import commodity clearance (ICC), even before these were inspected and certified. Continued on A11
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@lorenzmarasigan
Continued on A2
Court rules, provisional ICC null and without force and effect
Agri goods No.1 on BOC commonly smuggled list
By Lorenz S. Marasigan
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Continued on A2
Consortium’s unsolicited bid for Naia upgrade hurdles DOTr ALLING it a “major milestone” for an unsolicited proposal, a representative from the consortium that proposed the P350-billion expansion of the Ninoy Aquino International Airport (Naia) said the group received a letter relating to the “completeness review” of the unsolicited offer. Naia Consortium Spokesman Jose Emmanuel F. Reverente said the Department of Transportation (DOTr) has declared the proposal “in accordance with the documentary requirements” stated in the build-operatetransfer law. “This finding is a major milestone for an unsolicited proposal like ours to progress in the bureaucracy. An incomplete proposal does not move forward,” he said. Naia Consortium’s P350-billion proposal involves expanding and
2016 ejap journalism awards
REACHING NEW HEIGHTS Insurance Commissioner Dennis B. Funa (second from left), guest of honor and keynote speaker during the Fortune Life 2018 Annual Awards held at the Citystate Tower Hotel in Manila, receives a token of appreciation from D. Edgard Cabangon, chairman of the ALC Group of Companies (left); D. Arnold A. Cabangon, president of Fortune Life (second from right); and Evelyn T. Carada, EVP and general manager. See related story on A8; Funa’s full speech delivered at the event on A11. ROY DOMINGO
PESO exchange rates n US 52.0560
By Rea Cu
@ReaCuBM
rozen products, used and new clothes, and agricultural products like onions and garlic are just some of the commodities commonly smuggled into the country. Based on 2017 data the BusinessMirror obtained from the Bureau of Customs Intelligence Group (BOC-IG), the top commodities smuggled into the country were agricultural products with 36 shipments seized, general merchandise came in second with eight shipments seized, and used and new clothes at seven shipments seized. In 2016 the BOC-IG said the top commodities smuggled in were used and unused clothing at 28 shipments seized, followed by general merchandise with 22 shipments seized, and frozen products with 11 shipments seized. BOC data showed a total of 12 commodities being monitored by the bureau. These include motor vehicles and automotive parts and accessories; tobacco; steel and aluminum; hardware; electronic goods; illegal drugs and pharmaceutical products, among others. In his B u s i n e s s M i r ro r article, “ The antidote to smuggling,” which was published last year, Dr. Jesus Lim Arranza defined the two types of smuggling: outright
and technical smuggling. He said that, while outright smuggling could already be a thing of the past, technical smuggling is still very much being done in customs-bonded warehouses (CBWs) and economic zones. How is smuggling done in CBWs? As defined, a bonded warehouse is a building or other secured area in which dutiable goods maybe stored, manipulated or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise, of which, in the latter case, a customs-bond must be posted with the government. As such, some manufacturers, through manipulation of the formula of manufacture, are doing smuggling in CBWs. Manufacturers and some government officials connive to overstate or increase the manufacturer’s wastage factor so that a large portion of what are supposed to be wastages would eventually find their way into the local market and sold practically untaxed, depriving the government of much-needed revenues and, at the same time, adversely affecting the country’s manufacturing industry. Arranza said: “A classic example of this scheme was the ‘modus’ used by a manufacturer of tin cans for reexport, which we uncovered after getting suspicious of the declared wastage in its formula of manufacture. Continued on A2
n japan 0.4896 n UK 72.6858 n HK 6.6390 n CHINA 8.2427 n singapore 39.7708 n australia 41.0045 n EU 64.3881 n SAUDI arabia 13.8808
Source: BSP (15 March 2018 )
A2 Friday, March 16, 2018
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Agri goods No.1 on BOC commonly smuggled list Continued from A1
Cimatu’s decision: Close Boracay for up to 1 year Continued from A1
Cimatu said the water in Bulabog Beach, where kitesurfing and other water activities are held, was too contaminated and the job of constructing the needed sewerage system so massive that there was a need to close down the island as soon as possible. The most recent tests of the Department of Environment and Natural Resources (DENR), he said, showed “consistent failure, with an average result of 18,000 MPN [most probable number of coliform] per 100 milliliter [ML], exceeding the standard level of 400 MPN/100ML.” Officer in Charge of the Interior and Local Government Eduardo M. Año told the BusinessM irror that his agency had already sent the necessary documents to the National Disaster Risk Reduction and Management Council (NDRRMC) for the agency to be able to recommend to President Duterte the declaration of a state of calamity. “They [NDRRMC] will have to make the recommendation to the President, but we already sent them the documents and our recommendation for the declaration,” he said, adding that this will cover a period of “six months. That is the time frame given by the President [for us to fix Boracay].” During the news briefing, Año said the task force will make its recommendations to Duterte during a Cabinet Cluster meeting on March 19. “These will still be for the President’s approval,” he stressed. He noted that demolition orders have al-
EASTERLIES AFFECTING THE COUNTRY as of 5:00 pm - March 15, 2018
ready been issued by the local government of Malay to several establishments, and pointed out that, “in fact, Boracay West Cove Resort was closed yesterday.” He said the resort “should have been closed in 2011,” as it didn’t have a business permit to operate and no longer had a forest land agreement for tourism purposes with the DENR. Separate sources said DOT officials were “shocked” that Cimatu is recommending a one-year closure of the island, popular for its powdery, white-sand beach. A ranking DOT official projected a dive in tourist arrivals this year if the closure of Boracay will last longer than two months. So, “we are standing pat on our recommendation for a two-month closure,” the DOT official said. Under the National Tourism Development Plan, the Duterte administration is targeting visitor arrivals to hit 7.5 million in 2018, up 13.6 percent from last year’s arrivals. The same official added that Cimatu appeared “flexible” on the length of the closure period. Other DOT officials intimated that the agency’s recommendation is to close Boracay starting April 26, which would effectively cancel events during the May 1 holiday break dubbed “Laboracay.” Several events and parties had already been lined up by resorts, with major sponsors finalizing their support to the popular event, which has been compared to the annual spring break revelry of American students. (See, “Despite controversies, ‘Laboracay’ is still a go…so far,” in the B usiness M ir ror , March 14, 2018.) “Laboracay will just dirty the beach again,
after we all tried to keep it clean, and to rehabilitate the island,” one DOT insider said. Earlier, the DOT had proposed the closure of the island for two months during the monsoon season, when tourism arrivals are low. But the insider said, “They’re saying there’s no peak or low season anymore in Boracay,” so agency officials felt it was better to close the island as soon as possible to give way to its immediate rehabilitation. For her part, Tourism Secretary Wanda Corazon T. Teo said her agency has already discussed with all airlines to reduce their flights to Aklan and “not charge rebooking and cancellation fees of passengers” whose flights will be affected. She asked the airlines “to divert their flights to other destinations so the other destinations can be promoted.” Sources said the DOT has yet to get the hotels and resorts to agree not to charge their clients who may be affected by the closure any cancellation fees. In making his recommendation to close Boracay Island, Cimatu said, “The problem of sewage and drainage will persist even though the BIWC [Boracay Island Water Co.] promised to do something to solve the problem in one month or by April 5, 2018. The exponential rise in tourist arrivals and the inadequate sewer capacity and the old sewer lines will further aggravate the situation when the 195 unconnected establishments issued notices of violation get connected to the sewer lines.” He added the DENR has already “identified 973 illegal structures within forestlands and wetlands and 102 within easement areas. While a few have offered to do voluntary demolition, most are still for removal.” Among the measures to restore Boracay Island as a key tourist destination, the DENR said the sewerage system will be upgraded; solid-waste management facilities and mechanisms will be installed; illegal structures in forestlands and wetlands, easement areas and sinkholes will be removed; roads widened and constructed, pipes laid and ground excavated; and transportation system rationalized. Cimatu was authorized by Duterte to decide on the fate of Boracay. Cimatu earlier told reporters after a Senate hearing on the island he couldn’t recommend Boracay’s closure just yet until the sewage problem and other issues are addressed. (See, “Decision day: To close or not to close Boracay,” in the BusinessMirror, March 5, 2018.) But lawyer Jonas R. Leones, Cimatu’s designated spokesman, told the BusinessM irror that, when push comes to shove, Cimatu “might change his mind.” “If they will not cooperate, well, the secretary might eventually recommend closure,” Leones earlier said.
The company declared 30-percent wastage when average industry wastage was only about 3 percent. Hence, the tin-can manufacturer would only be accountable to reexport finished tin cans that would be equivalent to 70 percent of its total duty-free importation of tin plates. The remaining 27 percent of its bloated wastage factor were being sold locally as finished tin cans, even if the duties and taxes of its tin-plate importations were not paid.” To curb this smuggling scheme, Arranza said CBW operators and manufacturers importing through the warehousing entry should be required to submit to the BOC and the Department of Trade and Industry (DTI) their quarterly performance report, including the list of machinery that they have and their corresponding rated production capacity. He added: “A periodic audit by the BOC on the CBW should also be conducted. And, most important, the process of certifying the formula of manufacture by concerned government agencies must be revisited. An actual process should be undertaken to determine the wastage factor in the presence of representatives from both the government and private sectors.” Customs Commissioner Isidro S. Lapeña promised that, under his watch, the BOC will improve its collection efforts, curb the instances of corruption and smuggling, and improve trade facilitation. “We are also doing other activities to improve revenue collections, such as trade facilitation. To ensure that the contraband goods do not enter the Philippines, like shabu, I suspended the green lane and made the port of selectivity on the red lane. And we monitor very closely if this will cause congestion in our ports in the examination of container vans. But, so far, it’s not [causing congestion],” Lapeña said. “Another classic smuggling scheme at economic zones that we uncovered was our discovery of the smuggling activities of a manufacturer of industrial rugs for reexport at the Subic Freeport Zone. In particular, this Subic locator underdeclared the volume of one of its importations of used clothing at only 10 metric tons, when its actual volume was 20 MT. The imported used clothing would be used in the production of industrial rugs,” Arranza said. He added: “The underdeclaration made the Subic locator only accountable to reexport finished industrial rugs that would be equivalent to 10 MT of its 20-MT importation of used clothing. The other 10 MT could eventually get into the local ukay-ukay market and sold to consumers, circumventing the law against the importation of used clothing and putting the health of countless Filipinos at risk.” According to Arranza, fighting smuggling is a tedious and continuous process. And, as we continuously figure out measures to prevent smuggling, smugglers, for their part, are also continuously developing new schemes to circumvent the country’s antismuggling laws. Government law enforcers and the private sector should, therefore, be vigilant and always be on the lookout for these types of illegal activities. The Department of Finance (DOF) said the Bureau of Internal Revenue (BIR) and the BOC are implementing measures to improve revenue-collection efficiency and curb smuggling and tax evasion in the country. The measures include the agreement between the BOC and its corresponding agency in China to set up a data-exchange system to facilitate timely sharing of trade information against smuggling. During a recent DOF Executive Committee meeting, Customs Deputy Commissioner Edward James Dy Buco reported that the bureau has requested from its China counterpart several data on Chinese commodity imports and exports to the Philippines between the years 2015 and 2017, monthly or quarterly export and import data of China to the Philippines by commodity for 2018, export data on all shipments going to the Philippines and manifest of vessels carrying
cargoes bound for the Philippines. Lapeña visited Beijing in February to personally discuss with officials of the General Administration of Customs of China (GACC) the government’s concerns over trade discrepancies between the two countries. During the meeting, the GACC officials, led by Deputy Director General Zou Zhiwu, expressed China’s support for the Philippines’s anti-smuggling efforts and agreed on the designation of focal persons between the two countries to facilitate the coordination between their respective Customs agencies, the BOC said. The agency said a cooperative arrangement between the BOC and the GACC will be signed during the proposed visit of Chinese officials to Manila in April this year. The Customs chief also met with Director Yuan Ziwei and Deputy Director Zhao Ru Xiao of the GACC’s International Cooperation Division to discuss the progress of the Philippines-China agreement concerning Cooperation and Mutual Assistance in Customs Matters, which was signed by the two countries in April 2010. In December last year Finance Secretary Carlos G. Dominguez III said official trade data show that the estimated discrepancy between registered Chinese exports to the Philippines and registered Philippine imports from China have been declining but still very large, with the gap reported at 60 percent in 2010; 57 percent in 2015; 48.7 percent in 2016; and 48 percent over the January to July 2017 period. In 2010 registered Chinese exports to the Philippines was at $11.56 billion, but Philippine imports from China as reported by the Philippine Statistics Authority (PSA) was only at $4.628 billion, resulting in a trade discrepancy of 60 percent, or $6.936 billion. For the first seven months of 2017, Chinese exports to the Philippines hit $17.77 billion, while the PSA reported imports from China at $9.24 billion, a discrepancy of 48 percent or $8.53 billion. In 2015 trade data show that Chinese exports to the Philippines was $26.69 billion, against the PSA’s records of imports from China of $11.47 billion or a gap of $15.22 billion. In 2016 the gap narrowed, with Chinese exports to the country at $30.35 billion, against PSA records of imports of $15.56 billion or a discrepancy of $14.79 billion. The Customs chief earlier reported to Dominguez that the wide discrepancy between China’s recorded exports and imports to the Philippines may be attributed to the gross misdeclaration or undervaluation of goods in terms of either volume or weight; and the possible use of “consignees for hire,” which leads to goods released to “hidden” traders and not to the consignees on record. Earlier, the DOF said the BOC and the BIR are set to forge an agreement on information sharing and coordination, among other ways of cooperation, to strengthen their joint c ampaign against smuggling and beef up collections on excise taxes on imports. Last year a multi-industry study conducted by Fight Illicit Trade (Fight IT) Movement revealed that over a period of five years, P904.6 billion worth of goods were smuggled into the country by illicit traders. The P900-billion figure only covers eight industries, namely petroleum, steel, resins, wood, cigarettes, sugar, palm oil and automotive batteries, with the total amount of smuggled goods that entered the country from the period of 2011 to 2015 pegged at a higher value based on the study. Fight IT, a movement launched in 2015 under the Federation of Philippine Industries (FPI), commissioned the study, which was conducted by the University of Asia & the Pacific. Based on the study, the economic impact of illicit trade on the country’s GDP for the same period was valued at P495.5 billion, the decrease in domestic production was estimated at P1.1 trillion, while the number of displaced workers due to smuggling was at 291,070.
Consortium’s unsolicited bid for Naia upgrade hurdles DOTr Continued from A1
interconnecting the existing terminals of the Naia, upgrading airside facilities and the development of commercial facilities. Divided into two phases, the group’s proposal aims to increase the capacity of the Naia to about 100 million passengers per year. It also plans to construct a people mover that will link the Naia’s terminals to existing transport systems in Metro Manila. Actual work will take 24 more months for the first wave of immediate expansion. Further expansions are planned to meet projected passenger demand moving forward. More expansion will follow to meet the expected growth in tourism, business and the economy. In 2017 the four Naia terminals, designed to handle only 31 million, accommodated 42 million. Reverente earlier called on the government to fast-track the approvals process of the group’s proposal. Due to its nature, unsolicited proposals are required under law to go through several approvals processes, including a
review from the implementing agency, and an evaluation from the several bodies of the National Economic and Development Authority (Neda). Under current rules, unsolicited proposals are also required to undergo a Swiss Challenge, which essentially allows other groups to outbid the original proponent of the project. The original proponent, however, has the option to submit a counteroffer to win the challenge. The winner of the challenge will be determined after the Neda Board, currently chaired by President Duterte, evaluates the challenger’s offer, and the original proponent’s counteroffer. Hence, the process could go on for as quick as six months to over a year, and as long as almost a decade, as in the experiences in the past. Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. make up the Naia Consortium.
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Editor: Vittorio V. Vitug • Friday, March 16, 2018 A3
Prosecutors defend decision to dismiss drug raps vs Lim, Espinosa, Co, others
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By Joel R. San Juan @jrsanjuan1573 & Rene Acosta @reneacostaBM
WO state prosecutors on Thursday said their decision to dismiss the drug charges against self-confessed drug dealer Kerwin Espinosa, Peter Lim, convicted drug lord Peter Co and several other respondents was based purely on the evidence submitted by the Philippine National Police-Criminal Investigation and Detection Group (PNP-CIDG). In an interview, former Assistant State Prosecutor and now Lucena City Regional Trial Court (RTC) Judge Aristotle Reyes said on Thursday that he welcomed the order of Justice Secretary Vitaliano N. Aguirre II for the National Bureau of Investigation (NBI) to conduct investigation to determine possible irregularities committed by the investigating panel in resolving the controversial drug case. Reyes and Assistant State Prosecutors Michael John Humarang were the prosecutors who the conducted preliminary investigation on the case and found no probable cause to indict the accused for possible violation of Section 26 (b) of Republic Act 9165, or the Comprehensive Dangerous Drugs Act. Section 26 (b) is an attempt
or conspiracy for the sale, trading, administration, dispensation, delivery, distribution and transportation of any dangerous drug and/or controlled precursor and essential chemical. The complaint was filed on July 5, 2017. Aside from Reyes and Humarang, also covered by the investigation are Senior Assistant State Prosecutor Rassendell Rex Gingoyon, who recommended the approval of the resolution, and Acting Prosecutor General Jorge Catalan approved the dismissal of the case.
‘Great boost’
AT Camp Crame, the PNP said the conviction of eight drug traffickers by the courts is a great boost to the national government’s campaign against illegal drugs.
The decisions, which PNP Drug Enforcement Group director Chief Supt. Albert Ignatius Ferro hailed as a “triumph of justice,” were disclosed by the PNP on the heels of a “temporary setback” over the dismissal of illegal-drugs complaint against Espinosa, Lim and Co, among others. Fer ro s a id Jud ge M a r i lou Runes-Taman of RTC, Branch 98, in Quezon City, meted life imprisonment to convicted drug traffickers Eduardo Dario, Rea Mae Libiran, John Rey Bungcasan and Gemmarose Codera. T he four were arrested by agents of the defunct PNP AntiIllegal Drugs Group and Philippine Drug Enforcement Agency in Quezon City in 2016 with 45 kilos of shabu. The decision was the first drug conviction under the Duterte administration in a space of 14 months of trial with the cooperation of the Department of Justice. In another case, Judge Lun Ebora-Cacha of the RTC, Branch 82, in Quezon City, imposed a similar sentence to Chinese Wilfredo Uy, Yang Shu and Lu Pang and Taiwanese Chen Ta Yun who were arrested in 2007 for manufacturing shabu at a clandestine laboratory in Tandang Sora, Quezon City. “The speedy trial being implemented serves as a deterrent to the tactics by those accused of prolonging the trial, in the hope of police officers will lose interest, court fund extinguishes or otherwise get reassigned or, worse, bribed, so there will be a failure
Tadeco salutes heroes of WW II with Death March rites sponsorship
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his year’s observance of the i nfa mous 10 0 -k i lometer Death March by allied soldiers captured by the Japanese invaders during World War II gets a new twist that would likely make the veterans and other participants to go bananas on account of a Mindanao-based corporate sponsor of the commemoration ceremonies. The Tagum Agricultural Development Co. (Tadeco) is sponsoring the commemorative rites in honor of a Filipino freedom fighter and all the allied soldiers who took part in the hellish trek that marked the darkest days of the war theater in the Pacific. The firm plans to send truckloads of world-class bananas for everyone in the affair to partake of, while remembering the heroes who made the supreme sacrifice in defending the national sovereignty and independence.
That particular hero was retired Philippine Constabulary Captain Anastacio Campo who, along with his family, was shipped by the Japanese Imperial Army to work at the Davao Penal Colony in February 1942. The colony eventually evolved into a sprawling banana plantation currently known as Tadeco. W h i le at t he concent rat ion camp, Campo stealthily organized a guerilla unit called “Davao Katipunan” to continue his unfinished task as a freedom fighter. In November 1942, hundreds of POWs landed at the Lasang pier north of Davao City to work at the Davao Penal Colony, along with common criminals serving their terms. On April 4, 1943, ten American POWs, all survivors of the Death March, and two Filipino convicts staged a daring escape from the
tightly guarded penal facility, which later transformed into the country’s largest banana producer that exports its agricultural outputs across the globe. History books show that, 75 years ago, some 75,000 American and Filipino soldiers were forced by their Japanese captors to march from Mariveles and Bagac towns in Bataan southward to San Fernando, Pampanga, following the fall of Bataan and, eventually, the entire Philippines. Of the 75,000 prisoners of war, only 60,000 survived the deadly ordeal. In San Fernando, the survivors were packed like cattle into boxcars that brought them to Capas, Tarlac, where a monument and a shrine now stand in memory of their heroism. A Freedom March will highlight this year’s observance of the 75th anniversary of the Death March.
to prosecute,” Ferro said. He added the twin convictions set an encouraging precedent for operating units engaged in police antidrug operations.
Weak case
Reyes also said that the affidavits
of the accused-turned witness Marcelo Adorco, which were submitted by the PNP-CIDG to support its case, was weak in establishing probable cause. Reyes maintained that Adorco, the lone witness of the PNPCIDG in the case, could not be
considered a credible witness due to inconsistencies in his three a f f id av its a nd being a lso a coconspirator in the drug deal. He added Adorco has no personal knowledge pertaining to his allegations on the drug deal involving the respondents.
Economy
A4 Friday, March 16, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
SMEs urged to maximize gains from warming PHL-China ties
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By Elijah Felice E. Rosales
@alyasjah
he country’s trade chief is urging small and medium enterprises (SMEs) to take advantage of President Duterte’s warm relations with Beijing leaders to expand their market in China.
In a speech at the Manila launching of the China International Import Export (CIIE) Expo, Trade Secretary Ramon M. Lopez told small entrepreneurs to turn their attention on China as a potential market for their products, as he cited the expanding trade relations between Manila and Beijing as one of the factors that SMEs might want to take note of and consider as an advantage. “The participation of Philippine companies in the CIIE marks another step in the growth story of the Philippine-China trade and investment relations, as well as the continuing benefits of President Duterte’s independent foreign policy. From President Duterte’s 2016 state visit to China to the convening of the Philippines-China Joint Commission on Economic and Trade Cooperation last year, we have constantly sought to widen our trade engagements with China,” Lopez said. The CIIE, which will be held from November 5 to 10 in Shanghai, China, will host several foreign enterprises, including Philippinebased, in an expo floor. The event is open only to foreign enterprises, but buyers—both Chinese and foreigners—are expected to flock the Shanghai expo. According to Lopez, the CIIE is China’s showing to the world its “strong support for trade liberalization, as well as their way to actively open the Chinese
market to the world.” This, he said, is why the focus of the trade expo is on importation of goods and services to China, which, Lopez said SMEs can take advantage of, maintaining both Manila and Beijing are committed to strengthening the market access of their small entrepreneurs. For trade in goods, the CIIE will feature 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. As for trade in services, it will comprise of tourism services; emerging technologies; culture and education; creative design; and service outsourcing. Lopez said there will be over 100 Philippine products and service exports that will be showcased in the CIIE, making it the “biggest-ever overseas trade fair that our country will participate in.” Aside from SMEs, investors and government representatives will also be attending the expo. The CIIE can also be considered as a follow-up to the PhilippinesChina SME Cross-Border Business Matching conducted March of last year that generated a total of 635 matches between Filipino and Chinese enterprises. “Thanks to these efforts, we are now building on the progress that we’ve achieved,
even as Filipino businesses take advantage of the opportunities in working with their Chinese counterparts,” the trade chief said. Why not, Lopez added, as China was the country’s top trading partner in the previous year. Total bilateral trade between Manila and Beijing was at $23.82 billion, which has seen China become the Philippines’s fourth-largest export market and top import source. “I would like to reiterate how the CIIE can serve as an important opportunity to showcase the trade capabilities of the Philippines, as well as investment opportunities available between our two countries. At the same time, while this trade event will give our Filipino businesses access to the huge China market, it will certainly help deepen the bilateral trade relations between the Philippines and China,” Lopez said. “We also hope that China will continue partnering with us to help push President Duterte’s socioeconomic agenda to create inclusive
growth and shared prosperity, from promoting SME development to supporting our “Build, Build, Build” infrastructure program. I am confident that, with the solid friendship between the Philippines and China, our two countries can better manage today’s political and economic challenges—even as we benefit from the increased access in trade and investment with each other,” he added. The Philippines is currently enjoying warmer relations with China, as the President continues to sideline the maritime territorial dispute in the South China Sea. In spite of an arbitration ruling that awarded the Philippines ownership of the disputed waters, Beijing continues to build artificial islands in the area without strong contention from the Manila side. Seemingly in return, China has committed to help Duterte complete his infrastructure master plan that will put up connectivity and transportation facilities in Metro Manila and other major urban centers across the country.
The participation of Philippine companies in the CIIE marks another step in the growth story of the Philippine-China trade and investment relations, as well as the continuing benefits of President Duterte’s independent foreign policy. From President Duterte’s 2016 state visit to China to the convening of the Philippines-China Joint Commission on Economic and Trade Cooperation last year, we have constantly sought to widen our trade engagements with China.”—Lopez
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Neda exec cites ‘much gain’ from Asean, Apec alliance By Cai U. Ordinario
@cuo_bm
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rade is not the only benefit the Philippines can get from the Association of Southeast Asian Nations and the Asia-Pacific Economic Cooperation (Apec), according to the National Economic and Development Authority (Neda). In a news statement issued on Thursday, Neda Undersecretary for Policy and Planning Rosemarie G. Edillon said the Philippines has “much to gain” from being part of economic blocs in the region. However, in order to maximize the gains, Edillon added the country must continue its efforts to enhance the country’s competitiveness, as well as promote cultural exchanges. “One benefit, for example, is in the area of trade. However, even in this regional grouping, we have an inherent disadvantage due to our geography. We even have a different cultural background from our Asean neighbors,” Edillon said. “The key message is that regional cooperation does lead to inclusive growth. Then again, significant reforms and improvements need to be undertaken to be part of any regional cooperation. Following such, we move closer to our goal of achieving inclusive growth,” she added. Given its geographical disadvantage, Edillon said the Philippines should focus on cultural tourism and attract foreigners to experience Filipino culture.
Edillon added the Philippine Development Plan (PDP) 2017-2022, the Philippines’s blueprint for socioeconomic development, outlines strategies to boost tourism. These are coupled with measures to improve the country’s “behindthe-border competitiveness,” particularly in the areas of human capital, infrastructure, logistics and transport, and good governance. Neda Undersecretary for Regional Development Adoracion M. Navarro said investments poured into creating efficient, quality and well-developed infrastructure can boost the country’s economic growth and regional cooperation. “Improving the venue for regional cooperation and increasing people’s access to infrastructure is essential to create more economic opportunities and growth for the country,” Navarro said. “Given the huge infrastructureinvestments needs, Asean may further strengthen its economic partnerships through investmentrelated activities by supporting infrastructure connectivity in the region,” she added. Navarro said P1 trillion, or 13 percent, of the P7.7 trillion total investment requirements in the Public Investment Program (PIP) 2017-2022 will be funded by Official Development Assistance. The PIP is the accompanying document of the PDP. It is a list of the government’s priority programs and projects to be implemented in the medium term.
PA reaps global citation for strategy execution
Intl expert says Manila should neither be pro-West nor pro-East By Recto Mercene @rectomercene
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foreign expert in international studies said Philippine media should not be pro-West of pro-East, but should have “more diversity.” “So, I think the media organization in this country suffers too much from a legacy of being pro-western. They should not be pro-west or pro-east, but they should have a more diverse voice,” Dr. Dan Steinbock said during a media forum in Quezon City on Wednesday. He added that, about a year ago, a news item was leaked to Philippine media that former Ambassador to the Philippines Philip Goldberg wrote a “blueprint to undermine President Duterte within 18 months.” However, Steinbock noted that aside from one local daily, the story did not appear in any other newspapers, “if only to condemn it.” “My bottom line is, there is a law in Philippine media ownership and possibly there are two or three that may not fulfill that level of ownership by the law.” During the Philippine presidential campaigns in spring 2016, Goldberg sided visibly with anti-Duterte forces, which led to several highprofile confrontations. It was not then the first time that Goldberg was associated with regimechange efforts. In 2008 President Evo Morales and the Bolivian government gave him three days to leave the country after declaring him persona non grata following Goldberg’s efforts to fund the opposition leaders, separatists and think tanks with millions of dollars through the USAID. Yet, President Obama rewarded Goldberg by appointing him as the
assistant secretary of state for Intelligence and Research, one of the 16 elements of the US Intelligence Community (IC). Thereafter, he was sent to the Philippines, which he left in less than three years after efforts to intervene with the elections. Since many Filipinos were not aware of these developments in the newspapers, Steinbock said, “There’s a lot of people in this country that may or may not have a real voice, not just politically but also in terms of media.” “I think the voice you have now in media is understandable due to the strength of its cooperation with the West. I have nothing against it, and I think you should unite those ties, but I think you should have more diversity,” he added. The founder of Difference Group,
Luxury junk
Steinbock has served as research director at the India, China and America Institute (US) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Center (Singapore). Steinbock added that other newspapers have their own legacies and every country has its own legacies and concerns, but he noted that some local newspapers “have been pro-western because [they have] been cooperating with western countries until now.” “If you look at the current affairs programs in the country, one thing I have observed when people talk about China, they are usually local people talking about China or what China might be thinking. Not even think tanks representing China or Chinese ambassadors or Chinese authorities.” In this guise, he said, there are a lot
more people talking about China, but not Chinese people talking about the Philippines. “I think it’s really important to have real voice, not a sort of an indirect voice,” Steinbock added. On the other hand, he noted that considering the average income of many Filipinos, he said, “In this country, the media serves primarily those who are rich, primarily because of economic reasons.” Steinbock, however, forecasts the Philippines could become a bright spot in the global landscape if the government’s efforts on independent foreign policy and inclusive economic development can be achieved, “unless the campaign at regime change by foreign interests in cooperation with domestic political opposition prove successful.”
President Duterte (second from left in photo inset) watches a bulldozer and a backhoe run over the 14 illegally imported luxury cars at the Port Irene in Santa Ana, Cagayan, on Wednesday. Joining him are Defense Secretary Delfin N. Lorenzana (from left ); Secretary Raul L. Lambino, administrator and CEO of Cagayan Economic Zone Authority; and Transportation Secretary Arthur P. Tugade. The destroyed vehicles include a Porshe 911, Maserati Quattro, Mercedez-Benz E55, BMW Alpina B12, Mercedez-Benz Jeep G320 and Mercedez-Benz SL55. JOSEPH MUEGO
Army chief Lt. Gen. Rolando Joselito Bautista (left) receives the Palladium Balanced Scorecard Hall of Fame for Executing Strategy award from Prof. Robert S. Kaplan, professor emeritus at the Harvard Business School and cocreator of the Balanced Scorecard. Photo courtesy of Office of the Army Chief Public Affairs
By Rene Acosta @reneacostaBM
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HE Philippine Army (PA) is now globally recognized as one of the best organizations in terms of strategy execution after it was inducted into the Palladium Balanced Scorecard’s Hall of Fame for Executing Strategy. No less than Army chief Lt. Gen. Rolando Joselito Bautista received the award during the Reimagine Strategy: Palladium Positive Impact Summit 2018 in London, United Kingdom, on Wednesday. The award was conferred by Professor Robert S. Kaplan, professor emeritus at the Harvard Business School and cocreator of the Balanced Scorecard. “I would want everyone here to remember the main reason we bade for the Palladium Balanced Scorecard Hall of Fame. More than the award is the proof that we have a functioning and worldclass strategy. And we promise to continue the journey so that we will be better of service to the Filipino people as a transformed Army they can truly be proud of,” Bautista in said in accepting the award. Bautista was accompanied on his London trip by Col. Joel M. Paloma, chief of the Philippine Army’s Governance and Strategy
Management Office. Army Spokesman Lt. Col. Louie Villanueva said the recognition was given after the Army successfully passed the on site evaluation process by experts headed by David McMillan, director of the Office of Strategy Management of the Palladium Group in January this year. The Army has been implementing the Army Transformation Roadmap as its strategy since 2010. Villanueva said that, through the execution of the strategy, anchored on Kaplan and Norton’s strateg y management system and its local adaptation called the Performance Governance System (PGS), the Army has achieved milestones and recognitions. In 2014 the Army achieved its PGS institutionalized status, which was followed by the award of “Islands of Good Governance” in 2015. The Palladium Balanced Scorecard Hall of Fame for Executing Strategy publicly recognizes organizations that have successfully executed their strategies and achieved breakthrough results through the use of Kaplan and Norton’s strategymanagement system. Having inducted more than 200 organizations worldwide since its establishment in 2000, the recognizing body is regarded as the gold standard for strategic-performance management.
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Coconut oil, banana exports up in January
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he value of coconut-oil shipments in January expanded by 18.3 percent to $143 million, from the previous year’s record of $120.90 million, the latest data from the Philippine Statistics Authority (PSA) showed.
Coconut oil remained as the top farm export of the Philippines and accounted for 2.4 percent of receipts in January, according to PSA data. Figures from the PSA also indicated that the value of fresh bananas shipped during the period went up by 61.2 percent to $70.52 million, from $43.75 million. Earnings from shipments of fresh bananas accounted for 1.4 percent of export receipts in January. Shipments of tuna products, including fresh, frozen, prepared or preserved in airtight contain-
ers, were valued at $35.94 million. The figure was 30.1 percent higher than the $27.64 million recorded a year ago. A mong t he ag r icu ltura l products exported during the period, unmanufactured tobacco posted the biggest increase at 191.2 percent. Receipts from unmanufactured tobacco in January reached $10.12 million. Data from the PSA also showed that the value of mango exports at $2.04 million was more than double the $850,000 recorded in January 2017.
Other farm products, however, performed poorly during the period. In terms of value, shipments of pineapple and pineapple products, shrimps and prawns (fresh, chilled or frozen), natural rubber, and other agro-based products recorded double-digit declines. On an annual basis, the value of pineapple exports declined by 43.8 percent to $33.28 million, from $59.26 million while receipts from shrimps and prawns fell by 34.3 percent to $1.42 million, from $2.17 million. The National Economic and Development Authority (Neda) said earlier that the revival of the agribusiness sector would help boost merchandise exports this year. The Neda noted that exports decelerated by 0.5 percent due to sluggish nonelectronic and agrobased commodity sales—its slowest growth since December 2016. The government is targeting to increase exports by 8 percent this year. “To achieve this, the Philippines needs to build up integrated indus-
tries that would generate higher value addition, especially for key products such as bananas, cacao, coffee, mangoes, and rubber, as well as for other emerging high-value crops,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement. Pernia added it is “crucial” to support large and small producers and develop niche markets, such as organic farming to fully harness the potential of the agricultural sector. In maintaining greater market access, he said that diplomatic posts play a big role by regularly providing relevant information on emerging products that the Philippines can supply to potential markets. “Moreover, greater market access can be achieved through bilateral and multilateral deals, such as continued exploratory talks of the Department of Trade and Industry with the United States for a foreign trade agreement or an extension of the US Generalized System of Preference [GSP] initiative,” Pernia said.
Editor: Jennifer A. Ng • Friday, March 16, 2018
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Monsanto judge calls experts shaky, imperiling Roundup trial
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lawsuit claiming Monsanto Co.’s popular weed killer Roundup causes cancer was dealt a blow by a judge’s conclusions that the opinions of the experts testifying against it are “shaky,” a potentially devastating development for the case getting to trial. United States District Judge Vince Chhabria is the first judge to weigh in on the toxicity of the world’s most popular herbicide, the subject of a heated debate among scientists and regulators worldwide for more than 30 years. Any key witnesses who are cut from the lineup may profoundly shape the outcome of more than 300 lawsuits collected before the judge—all the cases in federal courts that seek to hold Monsanto liable for its failure to warn about the risks of using Roundup. The San Francisco judge heard from about a dozen witnesses including toxicologists, statisticians and an oncologist. But he took an especially keen interest in a couple of epidemiologists, who study how humans contract disease. “I do have a difficult time understanding how an epidemiologist in the face of all the evidence that we saw and heard last week” can conclude that glyphosate “is in fact causing” nonHodgkin lymphoma [NHL] in human beings, he said on Wednesday. “The evidence that glyphosate is currently
causing NHL in human beings” at current exposure levels is “pretty sparse,” he said. It remains to be seen which witnesses will be allowed to testify at trial on behalf of more than 700 farmers, landscapers and gardeners claiming that exposure to glyphosate—through skin contact or inhalation—caused their non-Hodgkin lymphoma. The judge didn’t say when he’d arrive at a final decision.
‘Dubious’ conclusion
Chhabria gave some credit to Beate Ritz, a public health professor at the University of California at Los Angeles, for having conducted independent analysis. Still, Chhabria described her conclusion that glyphosate is currently causing NHL in humans “dubious.” He gave a strong indication that Ritz may be the only witness he allows to testify for the plaintiffs, and that even she is at risk of being eliminated. Monsanto isn’t completely off the hook, based on what Chhabria said on Wednesday. At this stage of the case the judge is acting as a gatekeeper to exclude evidence not backed by scientific rigor, and evaluating whether the witnesses are qualified as experts to present their conclusions to a jury. He said his role is to decide whether the testimony is “in the range of reasonableness,” not whether glyphosate causes cancer. Bloomberg News
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Friday, March 16, 2018
Editor: Lyn Ressureccion | www.businessmirror.com.ph
UK, Russia tension escalates over spy poisoning
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ritain steeled itself for President Vladimir Putin’s reaction on Thursday after Prime Minister Theresa May threw out 23 Russian diplomats in retaliation for the poisoning of a former spy and his daughter on United Kingdom soil.
Russia is likely to, at the very least, expel a similar number of British diplomats. A statement from the country’s Foreign Ministry suggested it would go further. “By investigating this incident in a unilateral, nontransparent way, the British government is again seeking to launch a groundless anti-Russian campaign,” it said. “Needless to say, our response measures will not be long in coming.” May told Parliament on Wednesday that the UK will also move to freeze Russian state assets in response to what she called an “unlawful use of force” involving a weaponsgrade nerve agent. More steps will be taken in secret, she said, a hint that Britain could launch cyberattacks on Kremlin interests. Other wide-ranging responses, such as financial sanctions or preventing Russian banks from using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) international payments messaging system, require multilateral support and time. The crisis is a test for May’s authority at a critical time in the country’s history. As she navigates the UK’s exit from the European Union,
provide an explanation for the attack on Sergei Skripal and his daughter Yulia in southwest England. The pair remain in a critical condition.
‘Sarcasm, contempt’
“They have treated the use of a military-grade nerve agent in Europe with sarcasm, contempt and defiance,” May said. “There is no alternative conclusion other than that the Russian state was culpable.” She gave the 23 officials one week’s notice to leave the UK. The expulsion of “undeclared intelligence officers” based in London would “dismantle the Russian espionage network in the UK,” she added.
May is trying to maintain close security ties with the bloc, while also preserving British influence around the world. The degree of support from the premier’s international counterparts will be a sign how they value relations with the UK.
‘Defining moment’
In the past days, she’s sought support from international allies and has spoken to US President Donald J. Trump, German Chancellor Angela Merkel and French President Emmanuel Macron. US Ambassador Nikki Haley blistered Russia on Wednesday at the UN Security Council, saying the US “believes Russia is responsible for the attack.” She cast the UN’s response to the Skripals’ poisoning as a “defining moment—the credibility of this council will not survive if we fail to hold Russia accountable.” Later in the day, the White House said in a statement that the US shares the UK’s “assessment that Russia is responsible for the reckless nerveagent attack on a British citizen and his daughter” and so viewed the diplomats’ expulsion “as a just response.” Yet, it remains to be seen if words of support from Britain’s allies will
Britain’s Prime Minister Theresa May speaks during the scheduled Prime Minister’s Questions in the House of Commons, London, on March 14. May announced a range of economic and diplomatic measures against Russia, in response to the nerve agent used on former Russian spy Sergei Skripal and his daughter, Yulia. PA via AP
translate into multilateral action. May will find out in the days and weeks ahead if when it comes to security matters the EU will have the UK’s back or if the country is on its own as it pushes ahead with Brexit. At home, the confrontation with Russia serves as a backdrop to what will be a major speech by Defence Secretary Gavin Williamson, where he’s expected to outline how the UK must modernize its military in face of growing threats. The situation has also created problems for Jeremy Corbyn, leader of the opposition Labour Party, after his spokesman questioned whether Russia was behind the attack. Corbyn himself didn’t offer a
They [Russia] have treated the use of a military-grade nerve agent in Europe with sarcasm, contempt and defiance. There is no alternative conclusion other than that the Russian state was culpable.”—May view on Russia’s culpability when he addressed Parliament, reviving tensions with his own lawmakers. They were greeted with loud cheers from the governing Conservatives as they stood to offer May their support. The first use of a nerve agent on
European soil since World War II is a direct challenge to the Western alliance, days before elections are almost certain to give Putin a fourth term as president. Russia refused to recognize May’s deadline of midnight on Tuesday to
Abe’s bad month gets worse as allies hit him over scandal
Toys R Us is planning to liquidate US operations N J EW YORK—Toys R Us is headed toward shuttering its United States operations, jeopardizing the jobs of some 30,000 employees while spelling the end for a chain known to generations of children and parents for its sprawling stores and Geoffrey the giraffe mascot. The closing of the company’s 740 US stores over the coming months will finalize the downfall of the chain that succumbed to heavy debt and relentless trends that undercut its business, from online shopping to mobile games. CEO David Brandon told employees on Wednesday the company’s plan is to liquidate all of its US stores, according to an audio recording of the meeting obtained by The Associated Press. Brandon said Toys R Us would try to bundle its Canadian business, with about 200 stores, and find a buyer. The company’s US online store would still be running for the next couple of weeks in case there’s a buyer for it. It’s likely to also liquidate its businesses in Australia, France, Poland, Portugal and Spain, according to the recording. It’s already shuttering its business in the United Kingdom. That would leave it with stores in Canada, central Europe and Japan, where it could find buyers for those assets. Toys R Us had about 60,000 fulltime and part-time employees worldwide last year. Brandon said on the recording that the company would be filing
liquidation papers and there would be a bankruptcy court hearing on Thursday. “We worked as hard and as long as we could to turn over every rock,” Brandon told employees. He put much of the blame on its woes on the media, saying negative stories about the company’s prospects scared customers and vendors. The Wayne, New Jersey-based company, declined to comment. The chain filed for Chapter 11 bankruptcy protection last fall, saddled with $5 billion in debt that hurt its attempts to compete as shoppers moved to Amazon and huge chains like Wal-Mart. It pledged then to stay open, but Brandon told employees that it had a “devastating” sales performance during the critical holiday season as nervous customers and vendors shied away. That made its lenders more skittish about investing in the company. In January it announced plans to close about 180 stores over the next couple of months, leaving it with a little more than 700 stores. The company’s troubles have affected toy makers Mattel and Hasbro, which are big suppliers to the chain. But the likely liquidation will have a bigger impact on smaller toy makers, who rely more on the chain for sales. However, many have been trying to diversify in recent months as they worried about the chain’s survival. Toys R Us was also hurt by the shift to mobile devices taking up more play time. But steep sales de-
GOP considers recount, lawsuit in special poll in Pennsylvania
ANONSBURG, Pennsylvania—Republicans eyed a recount and a lawsuit over perceived irregularities in a closely watched US House race in Pennsylvania where Democrat Conor Lamb clung to a slender lead in the longtime GOP stronghold friendly to President Donald J. Trump. With the last batch of absentee
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clines over the holidays and thereafter were the deciding factor, said Jim Silver, who is editor in chief of toy review site TTPM.com. The company didn’t do enough to emphasize that it was reorganizing but not going out of business, Silver said. That misperception led customers to its stores because they didn’t think they would be able to return gifts. Now, the $11 billion in sales still happening as Toys R Us each year will disperse to other retailers like Amazon and discounters, analysts say. Other chains, seeing that Toys R Us was vulnerable, got more aggressive. J.C. Penney opened toy sections last fall in all 875 stores. Target and WalMart have been expanding their toy selections. Even Party City is building up its toy offerings. “Amazon may pick up the dollars, but won’t deliver the experience needed for a toy retailer to survive and thrive in today’s market,” said Marc Rosenberg, a toy marketing executive. Toys R Us had dominated the toy store business in the 1980s and early1990s, when it was one of the first of the “category killers”—a store totally devoted to one thing. Its scale gave it leverage with toy sellers and it disrupted general merchandise stores and mom-and-pop shops. Children sang along with commercials about “the biggest toy store there is.” But the company lost ground to discounters like Target and Wal-Mart, and then to Amazon, as even nostalgic parents sought deals elsewhere. GlobalData Retail estimates that
nearly 14 percent of toy sales were made online in 2016, more than double the level five years ago. Toys R Us still has hundreds of stores, and analysts estimate it still sells about 20 percent of the toys bought in the United States. It wasn’t able to compete with a growing Amazon: The toy seller said in bankruptcy filings that Amazon’s low prices were hard to match. And it said its Babies R Us chain lost customers to the online retailer’s convenient subscription service, which let parents receive diapers and baby formula at their doorstep automatically. Toys R Us blamed its “old technology” for not offering its own subscriptions. But Toys R Us’s biggest albatross was its massive debt load since private-equity firms Bain Capital, KKR and Co. and Vornado Realty Trust took it private in a $6.6-billion leveraged buyout in 2005. The plan had been to take the company public again, but weak sales have prevented that from happening. With such debt levels, Toys R Us did not have the financial flexibility to invest in its business. The company closed its flagship store in Manhattan’s Times Square, a huge tourist destination that featured its own Ferris wheel, about two years ago. In filing for bankruptcy protection last fall, Toys R Us pledged to make its stores more interactive. It added demonstrators for the holiday season to show people how toys work, and began opening Play Labs at 42 stores, areas where children can play with different items. AP
ballots counted, Lamb, a 33-yearold former prosecutor and firsttime candidate, saw his edge over Republican Rick Saccone shrink slightly, to 627 votes out of more than 224,000 cast, according to unofficial results. The four counties in the Pittsburgh-area district reported they had about 375 uncounted pro-
visional, military and overseas ballots. They have seven days to count the provisional ballots, and the deadline to receive military and overseas ballots is next Tuesday. With the margin so close, supporters of either candidate can ask for a recount. The GOP is considering lodg-
Other steps May announced include: n New powers for security services to detain individuals suspected of “hostile state activity” at the British border, with further measures considered to stop foreign agents operating in the UK; n Increased checks on private flights, customs and freight; n Freezing Russian state assets “wherever we have the evidence that they may be used to threaten the life or property of UK nationals or residents”; and n Police to target “serious criminals and corrupt elites.” May said: “There is no place for these people—or their money—in our country.” This was the closest May came to threatening the wealth of London-based oligarchs—some of whom are Putin’s enemies while others are close to him. n High-level boycott of this year’s soccer World Cup in Russia— UK ministers and members of the British royal family will not attend. Bloomberg News
apanese Pr i me Mi n ister Shinzo Abe got a warning sign that a ballooning scandal won’t go away any time soon: a rare interrogation from lawmakers from his own party. The premier and his deputy, Finance Minister Taro Aso, were compelled in quick succession on Wednesday to deny they ordered changes to documents related to the heavily discounted sale of public land to an Abe family acquaintance. The pointed queries weren’t from an opposition lawmaker, but a member of the ruling Liberal Democratic Party (LDP). “It’s clear from looking at the documents before they were altered that my wife and I had no role to play,” Abe told a parliament session boycotted by opposition lawmakers. The exchange on the floor of the Diet’s upper chamber showed how quickly Abe’s position has unraveled. In just two weeks, he has gone from a solid bet for the title of Japan’s longest-serving prime minister to battling to preserve his administration. Things first took a turn last month, when Abe was forced to drop a key element of his labor reforms after hundreds of errors in supporting data were found. That was followed by twin blows from US President Donald J. Trump, who announced tariffs that hit Japanese metal exports and undercut Abe’s
hard-line on North Korea by agreeing to talks with Kim Jong Un. While Abe has survived several political crises—returning to power in 2012 after resigning the premiership, amid a series of scandals in 2007—he’s now facing one that hits him directly. Questions over whether Abe’s government sold land to school operators on the cheap have dominated Japan’s media, with new details emerging daily. “It’s the biggest crisis of Abe’s premiership so far,” said Koichi Nakano, a professor of political science at Sophia University in Tokyo. Nakano said there was little chance of Abe winning a LDP leadership election later this year and staying on. “It’s a question not of if, but when Aso goes—and that could be the start of a domino effect,” Nakano said. “Each time he goes through a crisis, people are left with an increasing feeling of being stuck with him. There was ‘Abe fatigue’ even before this exploded.” Even business leaders, who have generally welcomed Abe’s push for looser monetary policy and a weaker yen, have criticized him over the scandal. “This is a serious threat to democracy,” Yoshimitsu Kobayashi, chairman of Japan’s influential business lobby Keizai Doyukai, told reporters on Tuesday. “If it were a private company—no matter if they knew of the impropriety or not—the leader would resign.” Bloomberg News
ing a recount request, and county officials reported receiving a letter from a law firm requesting that they preserve their records, something the counties say they do anyway under state law. Separately, Republicans mulled legal action, according to a person familiar with the deliberations. This person spoke on condition
of anonymity to discuss internal planning. Complaints could include that party lawyers were prevented from observing the counting of some absentee ballots, voting machines erroneously recorded votes from Lamb, and voters were confused by some information from the state elections web site. AP
Editor: Lyn Ressureccion | www.businessmirror.com.ph
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Students around US stage huge walkout against gun violence
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hey bowed their heads in honor of the dead. They carried signs with messages like “Never again” and “Am I next?” They railed against the National Rifle Association (NRA) and the politicians who support it.
And over and over, they repeated the message: Enough is enough. In a wave of protests one historian called the largest of its kind in American history, tens of thousands of students walked out of their classrooms on Wednesday to demand action on gun violence and school safety. The demonstrations extended from Maine to Hawaii as students joined the youth-led surge of activism set off by the February 14 massacre at Marjory Stoneman Douglas High School in Parkland, Florida. “We’re sick of it,” said Maxwell Nardi, a senior at Douglas S. Freeman High School in Henrico, Virginia, just outside Richmond. “We’re going to keep fighting, and we’re not going to stop until Congress finally makes resolute changes.” Students around the nation left class at 10 a.m. local time for at least 17 minutes—one minute for each of the dead in the Florida shooting. Some led marches or rallied on football fields, while others gathered in school gyms or took a knee in the hallway. At some schools, hundreds of students poured out. At others, just one or two walked out in defiance of administrators. They lamented that too many young people have died and that they’re tired of going to school afraid they will be killed. “Enough is enough. People are done with being shot,” said Iris Fosse-Ober, 18, a senior at Washburn High School in Minneapolis. Some issued specific demands for lawmakers, including mandatory background checks for all gun sales and a ban on assault weapons like the one used in the Florida bloodbath. While administrators and teachers at some schools applauded students for taking a stand—and some joined them—others threatened punishment for missing class. As the demonstrations unfold-
ed, the NRA responded by posting a photo on Twitter of a black rifle emblazoned with an American flag. The caption: “I’ll control my own guns, thank you.” The protests took place at schools from the elementary level through college, including some that have witnessed their own mass shootings: About 300 students gathered on a soccer field at Colorado’s Columbine High, while students who survived the Sandy Hook Elementary School attack in 2012 marched out of Newtown High School in Connecticut. In the nation’s capital, more than 2,000 high-school age protesters observed 17 minutes of silence while sitting on the ground with their backs turned to the White House. President Donald J. Trump was out of town. The students carried signs with messages, such as “Our blood/your hands” and “Never again” and chanted slogans against the NRA. In New York City they chanted, “Enough is enough!” In Salt Lake City the signs read, “Protect kids not guns,” “Fear has no place in school” and “Am I next?” At Eagle Rock High in Los Angeles teenagers took a moment of silence as they gathered around a circle of 17 chairs labeled with the names of the Florida victims. Stoneman Douglas High senior David Hogg, who has emerged as one of the leading student activists, livestreamed the walkout at the tragedy-stricken school on his YouTube channel. He said students couldn’t be expected to stay in class while there was work to do to prevent gun violence. “Every one of these individuals could have died that day. I could have died that day,” he said. In joining the protests, the students followed the example set by many of the survivors of the Florida shooting, who have become guncontrol activists, leading rallies, lobbying legislators and giving TV
Students at Huntington High School participate in an organized walkout protest, joining students across the nation to raise awareness about gun violence in schools on March 14 in Huntington, West Virginia. The national walkout was also in honor of the 17 victims of the Marjory Stoneman Douglas High School massacre that occurred on February 14. Sholten Singer /The Herald-Dispatch via AP
interviews. Their efforts helped spur passage last week of a Florida law curbing access to assault rifles by young people. Another protest against gun violence is scheduled in Washington on March 24, with organizers saying it is expected to draw hundreds of thousands. But whether the students can make a difference on Capitol Hill remains to be seen. Congress has shown little inclination to defy the powerful NRA and tighten gun laws, and Trump backed away from his initial support for raising the minimum age for buying an assault rifle to 21. A spokesman for Education Secretary Betsy DeVos, newly appointed head of a federal panel on school safety, said DeVos “gives a lot credit to the students who are raising their voices and demanding change,” and “their input will be valuable.” David Farber, a history professor at the University of Kansas who has studied social change movements, said it is too soon to know what effect the protests will have. But he said Wednesday’s walkouts were without a doubt the largest protest led by high-school students in the history of the US.
Every one of these individuals could have died that day. I could have died that day.”—Hogg “Young people are that socialmedia generation, and it’s easy to mobilize them in a way that it probably hadn’t been even 10 years ago,” Farber said. Wednesday’s coordinated protests were organized by Empower, the youth wing of the Women’s March, which brought thousands to Washington last year. At Aztec High School in a rural, gun-friendly part of New Mexico where many enjoy hunting and shooting, students avoided gun politics and opted for a ceremony honoring students killed in shootings—including two who died in a December attack at Aztec. “Our kids sit on both ends of the spectrum, and we have a diverse community when it comes to gun rights and gun control,” Principal Warman Hall said. In Brimfield, Ohio, 12-year-old Olivia Shane, an avid competitive trap shooter who has owned her own guns since she was about 7, skipped
the gun protest and memorial held at her school. “People want to take away our guns and it’s a Second Amendment right of ours,” she said. “If they want to take away our Second Amendment right, why can’t we take away their amendment of freedom of speech?” About 10 students left Ohio’s West Liberty-Salem High School— which witnessed a shooting last year—despite a warning they could face detention or more serious discipline. Police in the Atlanta suburb of Marietta patrolled Kell High, where students were threatened with unspecified consequences if they participated. Three students walked out anyway. The walkouts drew support from companies, such as media conglomerate Viacom, which paused programming on MTV, BET, Nickelodeon and its other networks for 17 minutes during the walkouts. AP
Trudeau offers to pick up pace on Nafta V C
Friday, March 16, 2018
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South Korea plans budget to head off youth unemployment
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outh Korea plans an extra budget to help young people start companies and to support firms that hire them as the government battles to arrest the nation’s rising youth jobless rate. The aim is to push youth unemployment below 8 percent by 2021, from 9.8 percent last year, the government said in a statement on Thursday. The budget will be less than 10 trillion won ($9.4 billion) and paid for with leftover tax revenue, not new debt, according to Vice Finance Minister Ko Hyoung-kwon. Creating more jobs is one of the key promises of President Moon Jae-in, who pushed through an extra budget to add public-sector jobs last year. Without government effort, the youth jobless rate is expected to climb further, as the number of people aged 25 to 29 is larger than other cohorts and this will create intense competition for those entering the work force over the next few years, the government said. “Unless steps are taken, the youth job market will be catastrophic for the next few years,” Ko said in a briefing in Sejong, south of Seoul. “The size of the budget will be decided after more consideration, but it’s unlikely to be the 10 trillion won or 20 trillion won that some media have reported.” The government hopes the budget can be approved in the parliament in April, according to the statement. It already passed a record 428.8-trillion won budget for 2018. The extra budget in 2017 took more than a month to be approved by parliament, as Moon’s party lacks a majority and opposition parties raised questions over whether it was necessary, considering the economy was growing. The government plans to offer up to 27 million won over three years to small-and-medium sized companies for every full-time worker they hire. Workers aged 34 or under who get hired by small companies will be exempt from personal-income tax for five years. For those aged 34 or under who work for a small company, cheap loans to pay for house rentals and deposits will be available. To encourage entrepreneurship, young people who open their own businesses will be exempt from personal income and corporate taxes for five years. Bloomberg News
Vietnam to grow faster despite US tariffs
anadian Prime Minister Justin Trudeau said he’s willing to accelerate North American Free Trade Agreement (Nafta) talks to get ahead of United States and Mexico election pressures if needed, striking an upbeat tone on the fate of the trade pact. Trudeau, speaking in an interview with Bloomberg Television’s Michael McKee, said he was “very optimistic we’re going to be able to get to a win-win-win” deal on Nafta, while downplaying the impact of talks on business investment. “We’re happy to accelerate so we can accommodate them. Canada’s not the one creating time pressures at the table and we’ll continue to work at whatever speed the others want,” Trudeau said, speaking at a steel mill in Regina, Saskatchewan. “But the level of collaboration, coordination, integration of our economies has positioned North America better able to take on the world, and I know there are even greater opportunities to that.” President Donald J. Trump ex-
empted Canada and Mexico last week from tariffs on steel and aluminum, but has regularly singled out his northern neighbor for being unfair with the US on trade. Incoming White House economic adviser Larry Kudlow said earlier on Wednesday that Trudeau “has been on the phone with the president” making concessions on Nafta negotiations “hand over fist.” Trudeau brushed aside the comments, saying he’s standing up for Canadians and won’t negotiate in public. “And I’m not flinching on that,” he said.
Steel, aluminum
Trudeau said the decision to exempt Canada from tariffs imposed on grounds of national security “just makes sense,” given the defense ties between the countries. He added Trump had told him at the Group of Seven summit last year that Canada would be exempt. “And yes, there was a lot of sort of reflection and back and forth, but he ended up following through exactly as he said,” Trudeau said. “The
president has said as long as there’s a Nafta, there won’t be any tariffs. We have a Nafta now, we will have a Nafta once we improve it. That sounds to me like we’re pretty good on not getting tariffs.” The Bank of Canada warned this week that business investment in Canada is being impacted by uncertainty over Nafta and US trade measures. In the inter view, however, Trudeau downplayed the impacts of Nafta uncertainty, saying his country remains a good place to invest. “There’s a lot of investors who’ve realized Canada is a very good place to invest for the long term. We have a long-term stability on economy, politics, on social, on immigration that is very, very attractive,” he said. “Yes, there is still a couple of people saying, ‘Oh, what is going to happen on Nafta?’ But I’m really confident we’re going to get to the right place on Nafta.”
Boeing, Airbus
Asked about recent tariffs on Canadian newsprint, Trudeau said some
companies are trying to profit off of a “protectionist approach.” He cited a trade challenge by Boeing Co. against Canadian manufacturer Bombardier Inc. over its C Series commercial jet that eventually led to a partnership between Bombardier and Airbus SE, Boeing’s rival. “Unfortunately, what Boeing did actually just drove the great Canadian C Series into the arms of their biggest competitor and now we have a great partnership with Airbus, so sometimes that’s going to backfire on American companies challenging Canada,” Trudeau said. Trudeau added that Canada has been concerned about potential steel dumping by China for several years but also wants a strong trading relationship with the country, a situation that requires what he called a “balancing act.” He has previously singled out China and Russia on steel oversupply, and floated the notion of new tariffs to stop steel from flooding Canada after the US tariffs kick in. Bloomberg News
ietnam’s economy will grow faster this year than in 2017 and will see only a “minor” impact from President Donald J. Trump’s trade tariffs, according to a senior government official. The Southeast Asian nation’s government hopes to discuss “some sort of trade agreement” with the United States—its biggest export market— to ease any barriers, said Truong Van Phuoc, head of the National Financial Supervisory Commission. Vietnam is plowing ahead on freetrade agreements with other countries as it seeks to maintain one of the world’s fastest economic growth rates, he added. “The economy will grow faster this year with inflation being controllable and a pretty stable dong,” Phuoc, an adviser to Prime Minister Nguyen Xuan Phuc, said in an interview in Hanoi. “Trump’s recent import tariff changes will have a minor impact on Vietnam, as we are diversifying our markets and products to boost exports.” Trump last week slapped a 25-percent tariff on steel imports and 10-percent levy on aluminum. Vietnam’s steel exports to the US totaled $104 mil-
lion in the first two months of 2018, more than double a year earlier and about 16 percent of its total sales of the metal, according to data on the Vietnamese customs’ web site. The nation is now seeking to progress free-trade agreements with other countries, including Japan and Europe, to help counter any impact from Trump’s tariffs.
TPP revival
Vietnam joined 10 other countries on March 8 to sign a Trans-Pacific Partnership (PPP) trade pact after the US president last year pulled out of the agreement. Trump’s exit was seen as a blow to the country, which exports about a fifth of its goods to the world’s largest economy. But a global trade recovery and Vietnam’s young, low-cost work force have been magnets for international investors like Nestle SA, which have opened factories there. That’s helping underpin an economy, which expanded 6.81 percent last year and is estimated by the prime minister to grow 7.4 percent in the first quarter. Phuoc said the government aims to maintain GDP growth at around 7 percent. Bloomberg News
Banking&Finance BusinessMirror
A8 Friday, March 16, 2018 • Editor: Jun B. Vallecera
Fortune Life to increase sales force nationwide
F
ortune Life Insurance Co. Inc. (Fortune Life) will increase its sales force this year to 1,900 agents in a bid to widen its market reach in line with the company’s expansion plans. During the Fortune Life Annual Awards 2018 held at the Citystate Tower Hotel in Manila on Wednesday night, the insurance firm’s management team celebrated the success of its sales agents who helped rake in first year premiums for 2017, amounting to P130 million. “Right now, we have about 1,400 licensed agents. We are targeting to increase our personnel to 1,900 licensed agents nationwide [this year],” Fortune Life FVP Virgilio S. Aquino told the BusinessMirror. This means additional new sales agents of around 500 in total spread nationwide. Fortune Life President D. Arnold A. Cabangon said in his speech that a realignment of the company’s works will be done this year, pointing out that its sales force will be tapping the military and police markets for its insurance products. “We need to adapt, we need to be open to change. Right now we are realigning our organization to effectively respond to the needs of the market, and also with our sales force. We need to diversify, we need to change our portfolio mix, as everyone knows most of our business is into DepEd [Department of Education] but I think we need to change that...in the coming months and years we will penetrate other markets,” Cabangon said. Last year Fortune Life celebrated the seventh year of its Values Advocacy Program (VAP), together with the DepEd and Marylindbert International, promoting the values of hard work and discipline among Filipino teachers and students. “We will penetrate the police and military markets. We will augment our group sales, so we will have a presence in the group market, namely, the LGU [local government unit], the thrift bank and
the rural bank markets. In our 33 years of existence, Fortune Life has seen the best and the worst of times, the tasks ahead are daunting, but I am confident that we will see ourselves through with you as our partners,” he added. Aquino said Fortune Life will enhance the training program for its sales agents, which will focus on selling insurance products to uniformed personnel, a market that is not usually tapped by insurance companies due to the risky nature of their job. “We need to further train our agents to go into that market because it’s not simple going into that market, that’s specialized. Maybe we need to emphasize that there are other markets aside from the DepEd that they [the sales force] need to penetrate,” he said. Fortune Life registered first-year premiums for 2017 amounting to P130 million, contracting by 18.2 percent from the firstyear premiums registered in 2016 at P159 million. But the organization is hopeful that it can increase its first-year premiums this year by tapping other market niches. “We ended around P130 million for first-year premiums [in 2017]. We are higher in 2016...we are targeting to increase it by 33 percent [in 2018],” he added. Insurance Commissioner Dennis B. Funa, who was the guest of honor at the event, reassured attendees that the Insurance Commission (IC) will continue to do its part in strengthening the country’s insurance industry. “The IC, as always, remains your humble partner in the industry’s journey toward our goals. Complementing your efforts, the Office has been conducting lectures about insurance among students and ordinary citizens; and I myself have explored the use of media through radio and print, in hopes that we be able to reach a wider group of people who might understand and realize how important insurance truly is,” Funa said. Rea Cu
www.businessmirror.com.ph
Govt to auction state-owned assets worth P98.32 million
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By Rea Cu
@ReaCuBM
he Privatization Management Office (PMO) of the Department of Finance (DOF) disclosed on Thursday the government’s plan to bid out in March stateowned assets amounting to P98.32 million. PMO Chief Privatization Officer Gerard L. Chan said the government-owned assets for sale include 63 lots in Luzon and Mindanao, and a membership share at a golf and country club. These include 35 parcels of land in Quezon City and the provinces of Laguna, Camarines Norte and Quezon under the name of the Peninsula Development Bank with a floor
price of P26.948 million; four residential and commercial lots of the Selectra Electronics Corp. in Tanay, Rizal, P16.018 million; and two residential lots of Delta Motors Corp. in Parañaque City, P6.142 million. The assets were scheduled for bidding in February, the PMO said. The DOF said the remaining assets set for bidding in March include two lots under the
Case clippings
By Justice S J Ranada Jr. OPINION EVIDENCE–Experts and ordinary witnesses The witness rendering an opinion must be credible, in addition to possessing all the qualifications and none of the disqualifications specified in the rules of evidence. In the case of an expert witness, he must be shown to possess knowledge, skill, experience or training in the subject of his testimony. An ordinary witness may give an opinion on matters which are within his knowledge or with which he has sufficient familiarity. Tortona v. Gregorio 17 Jan. 2018
GR 202612 Leonen, J
China’s $814-billion fund to cut exposure to public markets
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hina’s $814-billion sovereign wealth fund plans to expand investments in areas such as real estate, hedge funds, infrastructure and private equity for more stable returns, as it reduces exposure to volatile public markets. China Investment Corp. (CIC), which recently sold its shares of Blackstone Group Lp., is seeking to boost alternative and direct investments to 45 percent or more of its overseas portfolio in the next three years, from about 38 percent at the end of last year, President Tu Guangshao said in an interview in Beijing. The divestment of the Blackstone stake, one of the first investments for the wealth fund that was started in 2007 with an initial $200 billion, may signal CIC’s pursuit of steadier returns. It ends
a wild ride for CIC—Blackstone shares plunged 89 percent from the US firm’s initial public offering to a February 2009 trough, but have since surged almost ninefold. A CIC spokesman said the Blackstone investment produced a “positive return,” and that the move was based on “changes in market conditions and our portfolio management needs.” Blackstone Chief Executive Officer Stephen Schwarzman said in a Bloomberg Television interview that CIC’s investment in his company lasted longer than expected.
‘Working together’
The divestment doesn’t mark a break between CIC and the firm; it is an investor in funds run by New York-based Blackstone and CIC’s spokesman said the two are “working together in areas, including
private equity, real estate funds, co-investments, direct investments, as well as hedge funds.” And in its biggest direct investment, CIC last year led the $13.8-billion acquisition of Blackstone’s European logistics business Logicor. Trade tensions between China and the US have intensified in recent weeks, as President Donald J. Trump has ordered stiff tariffs on steel and aluminum, and signaled more actions are on the way. Even as trade friction between China and the US is rising, Tu said the wealth fund still wants to explore direct investments in the US, which can also help deepen economic ties. Most of CIC’s existing private equity partners are American firms, he noted, without being specific. Bloomberg News
name of the Retired Servicemen Enterprises Inc. with a floor price of P2.509 million. Seven parcels of land in Bulacan, Quezon City, Tagaytay and Marikina under the Development Bank of Rizal with a combined value of P35.237 million will also be put on the auction block. Also for sale in March are 13 residential and agricultural parcels of land in General Santos City under the name of the Al-Amanah Islamic Investment Bank of the Philippines with a total floor price of P10.271 million; and a membership share worth P1.2 million at the Canlubang Golf and Country Club under the name of Merchants Investment Corp., Chan said. For the first nine months of 2017, the disposition of state properties for privatization along with cash dividends and other forms of revenues from still unsold government assets generated a total of P554.442 million. As of September 30, 2017, the PMO remitted P554.442 million to the Bureau of the Treasury (BTr) exclusive of authorized retention amounts of P22.8 million. It turned over to state coffers a Land Bank of the Philippines Check 149416 dated October 19, 2017, for the amount of P289.485 million. The DOF said this is the biggest amount remitted so far by PMO from its January-toSeptember 2017 collection, which came from the sale of shares in Asean Finance Corp. and special cash dividend from Semirara Mining Corp. Aside from the proceeds from this sale, PMO remittances for the January-to-September 2017 period also came from the proceeds of lease, Comprehensive Agrarian Reform Program (CARP)-covered landholdings, interest income and other disposition. Total PMO remittances to the government reached P286.4 million in July to December 2016, or the first six months of the Duterte administration.
PNB profit up 14% to ₧8.2B
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he Philippine National Bank (PNB) reported a 14-percent hike in net income to P8.2 billion in 2017, on the back of double-digit growth in both interest and fees and commission-based income. PNB’s net interest income grew 13 percent from the previous year, driven by the growth in its loan portfolio to P502.1 billion. PNB’s total loans expanded 17 percent year-on-year. Deposits also pitched in, growing at 12 percent, to hit P637.9 billion at year’s end. Net service fees and commission income went up 16 percent due to high growth in loan and deposit-related services, as well as improved investment banking fees. The bank’s strategy of reducing its nonearning assets also bore fruit, as it booked higher net gains in 2017 on disposal of foreclosed properties at P3.9 billion, up from the P2.5 billion in 2016. Bianca Cuaresma
Siemens out for blood samples in $35-billion health-care IPO
W
hen the head of health care at Siemens AG went before investors in January with a sales pitch for the division’s initial public offering (IPO), he raced through a description of products like scanners and x-ray machines. Bernd Montag was out for blood. The executive was on a mission to promote a new line of equipment to analyze medical samples, and his strategy to speak mostly about that business hammered home an important truth about Healthineers. The future success of the $35 billion company slated to make its trading debut on Friday rests partly on a bet it can gain heft in diagnostics, a market in which it has long struggled. Siemens has been preparing to sell shares in Healthineers for more than a year as CEO Joe Kaeser hives off divisions and chips away at the German engineering firm’s sprawling conglomerate structure. Yet, the listing comes at a delicate time for the
health-equipment maker because it has just launched a new diagnostics brand called Atellica, aimed at replacing older products that have trailed the competition. “The question is, does the market believe they can improve,” said Barclays analyst James Stettler. “2020 is when they really want to show the real growth and margin improvement. If you look at the time scale of the typical investor, it’s quite a while away.”
Failed for years
The IPO value slipped from early estimates partly because of uncertainty about how well Atellica will perform. Terms seen by Bloomberg on Wednesday pointed to the likely price for shares between €27.50 and €28.50, toward the lower end of a range given by the company of €26 to €31. By its own admission, Siemens has failed for years to gain the upper hand in diagnostics, which makes
up just over a third of profit. “We didn’t have one streamlined platform. We didn’t have one competitive product,” Montag told analysts. “Sometimes, we needed to offer several products, which made things complicated.” Siemens first began moving aggressively into the market more than a decade ago when it made a rapidfire string of acquisitions worth billions to gain a leading market share. In April 2006 it bought Diagnostic Products Corp. for about $1.86 billion and, just two months later, added Bayer AG’s diagnostics division for €4.2 billion, and then Dade Behring Inc. for about $7 billion. The frenzy ended with a big writedown in 2010 and fed into the ouster of former CEO Peter Loescher. “They were left with three platforms, sub-scale and very hard to bring together,” Stettler said. Meanwhile, rivals like Roche Holdings, Abbott Laboratories and
Danaher Corp. were catching up. In 2007 Siemens had a diagnostics market share of 17 percent, compared to Roche’s 16 percent and Abbott’s 11 percent, according to a Siemens presentation. In 2015 Roche had climbed to 20 percent, Abbott stayed at 11 percent, while Siemens declined to 9 percent, according to a Roche report. Siemens says it now has 15 percent, without providing details about rivals. By developing its own platform with Atellica, the German supplier has changed tack. Sales of the products got underway late last year in Europe, the United States, South America and Asia. The plan is to derive 90 percent of revenue from higher-margin reagents and other supplies used to prepare samples of blood, urine and tissue rather than the actual diagnostic machines. Montag has said Atellica will give Healthineers accelerating growth and higher margins over time. Bloomberg News
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Local heroes lead 2018 Gawad Bayani ng Kalikasan Awards
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By Jonathan L. Mayuga
@jonlmayuga
HALF-BLIND day-care teacher from Aurora Province led the 2018 Gawad Bayani ng Kalikasan (GBK)awardees. Josefina Panginen, the daycare teacher turned farmer-leader, successfully defended their part of the Sierra Madre Mountain Range from mining and logging companies wanting to do business in the area. Seven individuals and organizations were given recognition during the fifth Gawad Bayani ng Kalikasan Awards held at the Institute of Biology Auditorium, National Science Complex of the University of the Philippines-Diliman Campus on Thursday. Archbishop Sergio Utleg, a staunch advocate for the Stewardship of Creation, was recognized for being a constant “rock a nd found at ion” of t he pro environment movements that successfully closed down illegal black-sand mining operations and other ecological threats in the
Cagayan Valley region. Francis Morales, a long-time civic leader in the Davao region, was posthumously awarded for being instrumental in organizing typhoon Pablo survivors and harnessing resilient and sustainable agriculture to meet their post-disaster needs. Organizational awards were given to the formations that exemplified how people’s movements can overcome adversity, such as the People Surge Alliance in Eastern Visayas, “children of the storm” transformed into justice seekers who were victorious in asserting the delivery of long-denied emergency shelter, and other recovery and rehabilitation assistance for their fellow survivors. The Central Luzon Ayta Association was also borne from the rubbles of disaster as it or-
ganized indigenous Ayta tribes in 1991 in response to the displacement of their communities from Mount Pinatubo’s eruption. The CLAA has over two decades of struggle overcoming mining interests and other encroachments into their ancestral land amid the chaos of the eruption up to the present. The Center for Lumad Advocacy, Networking and Services, a service institution that has constructed community learning schools and other community-based initiatives for the indigenous lumad in Socsksargen region, was especially recognized for providing education to lumad people long-denied their basic rights, and for empowering them in the process to restore their forests, promote sustainable agriculture and protect the environment. The most distinguished award was given to Bai Bibyaon Ligkaian Bigkay, the only living woman warrior, and chieftain of the lumad who took the helm in asserting their right to their ancestral domains in the Pantaron Mountain Range and in preserving the rich biodiversity and natural resources. The impregnable defense of the 12,600-square-kilometer Pan-
taron by Bai Bibyaon and her fellow lumad is the single-biggest factor in preserving one of the largest remaining virgin forests in the country that supplies the water of major rivers in Mindanao, play host to immeasurable biodiversity and link important breeding sites of the Philippine eagle at Mount Kitanglad and Mount Apo. The event was organized by the Center for Environmental Concerns with the support of the Kalikasan-People’s Network for the Environment. In a statement, organizers said it is notable this year’s unsung heroes of the environment may be the “bravest” in the context of their legacies facing the deadliest times Filipino environmental defenders have ever confronted since the biannual award-giving body began in 2009. The London-based international watchdog Global Witness recently declared the Philippines as the second deadliest country in the world for environmental and land defenders, noting at least 41 environment-related killings in 2017 alone. The fifth GBK’s heroes are struggling for the environment in this context of impunity, facing risks of illegal arrest, trumped-up charges and even death.
Editor: Efleda P. Campos • Friday, March 16, 2018
A9
DILG: Non-implementation of laws caused Boracay crisis By Nelson S. Badilla Correspondent
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HE head of the Department of the Interior and Local Government (DILG) wants the department’s newly promoted officials to review and implement all environmental and other laws of the country in their respective turfs to prevent the garbage and environment crisis that happened in Boracay, Aklan, to take place in other areas of the country. Officer in Charge Eduardo M. Año told the 31 newly promoted DILG officials in a mass oat h- t a k i ng t h at “t he c u r rent problem in Boracay is just a symptom.” Año emphasized “the real sickness is the implementation of the law.” “I urge you to help us rectify and solve the problem in Boracay by making a chain of actions in your areas so that other parts of the country will not suffer the same fate,” said Año, reportedly being groomed as interior secretary by President Duterte by October this year. The problem on garbage and environment of Boracay became a “hot item” after Duterte himself berated the businessmen
of Boracay Island and the local government officials of Malay town for letting the garbage and environmental problem get out of hand. The garbage situation already affected the quality of the island’s water. The DILG and the Department of Environment and Natural Resources (DENR) are working together after Duterte ordered the closing of Boracay if its garbage, drainage and water situation remained problematic. The businessmen and the local government units (LGU) a r e c o o p e r at i n g w it h t h e DILG and DENR in cleaning up Boracay Island. Año told the newly promoted officials “to understand and learn from the Boracay problem and how they can avoid similar situations in their place of assignments.” He said LGU officials should not wait for an environmental crisis to happen in other tourist spots like El Nido, Coron, Siargao and Camiguin before they act and do their assignments and responsibilities. “As DILG field officials, you can prevent a similar crisis from happening. You should be vigilant,” he said.
A10 Friday, March 16, 2018 • Editor: Angel R. Calso
Opinion BusinessMirror
www.businessmirror.com.ph
editorial
The rule of law: So what?
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ook back in antiquity and societies have always been struggling with the question of the “rule of law” versus the “rule of men”. Greek philosopher Plato wanted a benevolent monarchy ruled by an idealized philosopher king, who was above the law.
Yet, he also wrote: “Where the law is subject to some other authority and has none of its own, the collapse of the state is not far off; but if law is the master of the government and the government is its slave, then the situation is full of promise and men enjoy all the blessings that the gods shower on a state.” The ancient Egyptian Pharaohs had the absolute power of life and death over anyone in the kingdom. The Israelites fleeing Egypt had a set of 10 laws carved in stone tablets. The first king of the Israelites was not crowned until 1,000 years before the Common Era. By definition, the rule of law is “the principle that law should govern a nation, as opposed to being governed by decisions of individual government officials.” Laws then should be the regulations that pass from government to government regardless who might temporarily hold the power. However, since these laws are enacted by men, there is the risk of “two wolves and a sheep voting on what to eat for dinner.” In order to hopefully stop the wolves from eating the sheep, the concept of the rule of law not only had to be about codifying proper and improper behavior, but enshrining the idea that everyone was subject to the same rules. “No man is above the law.” But, in actual practice, this rule of law thing is complicated. “Thou shall not kill” becomes “Thou shall not murder,” to which is added “unless it is a justifiable homicide.” And still the rule of law requires that determination of guilt or innocence is required in every individual case. It is as if the law is not absolute but only a guideline. Further, the concept of rule of law can be distinguished from “rule by law.” Chinese law professor Li Shuguang writes, “The difference.... is that, under the rule of law, the law is preeminent and can serve as a check against the abuse of power. Under rule by law, the law is a mere tool for a government, which suppresses in a legalistic fashion.” The World Justice Project ranks nations according to a four-pronged criterion: Private as well as government accountability, clear and stable laws, the processes by which laws are enacted, administered, and enforced being fair and efficient, and accessible and impartial dispute resolution. Yet, only 11 nations out of 113 measured are considered to have strong (81 or higher on a 0 to 100 scale) adherence to the rule of law. The wealthier the nation, the stronger the rule of law. But then, do wealthier countries follow the law or does following the law create more wealth? From the Economist magazine, March 13, 2008: “Some new research finds only a weak link between the rule of law and economic growth. The connection with wealth is well established but that is different: it has been forged over decades, even centuries. The link with shorterterm growth is harder to see. China is an example.” However, when reforms that are necessary to strengthen the rule of law are implemented quickly, economic growth is positively affected just as rapidly. This was shown in several South American countries, including Chile. Reform, though, is a political issue. Politicians will not improve the environment until the people demand improvement. The electorate gets what it votes for. Since 2005
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15 things James Jimenez
spox
1
. There will be two different kinds of ballots used in the 2018 Barangay and Sangguniang Kabataan elections—the barangay ballot and the SK ballot.
2. The barangay ballot will be used by voters aged 18 and up, to elect the Punong Barangay and the members—called Kagawad—of the Sangguniang Barangay. 3. The SK ballot, on the other hand, will be used by voters aged 15 to 30 who are registered in the SK system, properly referred to as the Katipunan ng Kabataan. 4. Both the barangay and SK ballots will prominently feature the name of the electoral exercise for which they will be used—the barangay elections and the Sangguniang Kabataan elections, respectively. 5. The barangay and SK ballots that will be used all over the country, except in Mindanao, will bear the date “October 23, 2017,” because
these ballots were printed in 2017, supposedly for use in the polls scheduled for that year. Unfortunately, the law postponing the 2017 BSKE was enacted only after all the ballots had already been printed. 6. Ballots bound for Mindanao, however, are still being printed and will bear the correct date—May 14, 2018. These ballots were not printed in 2017, since the Commission on Elections (Comelec) had promptly declared the suspension of elections in Mindanao as a consequence of the imposition of martial law in that part of the country. 7. Both barangay and SK ballots will contain the following instructions: “Fill out the ballot secretly, using a ballot secrecy folder. Do not
put any distinctive mark on any part of this ballot.” 8. Preserving the secrecy of the voter’s ballot is an essential part of the right of suffrage as it protects the voter from undue influence and from reprisals. This is the same reason why the Comelec prohibits the use of any means to duplicate the filled-out ballot, including photography—yes, even cell-phone photography. 9. Putting a “distinctive mark” means making the filled-out ballot identifiable in any way. This includes making small tears to the paper, writing anything on the ballot other than the names of the candidates being voted for, or otherwise ensuring that the ballot can be distinguished from all other ballots in the ballot box. This prohibition—which includes the drawing of hearts, smiley faces, stars and the like—is still intended to protect the secrecy of the individual’s vote. 10. Both barangay and SK ballots will indicate the position title being voted for, and a number of blank lines corresponding to the number of positions being contested. Thus, under the position title Punong Barangay, there will be one blank line; under the position title Kagawad, Sangguniang Barangay, there will
be seven blank lines. 11. The blank lines will be numbered (like this list), 1., 2., 3., and so on. 12. If any name appears on the ballot in excess of the number of positions being contested, that name will be considered a stray vote and will not be counted. 13. The Omnibus Election Code Batas Pambansa 881 provides for more than 20 different ways a ballot can be interpreted. These are called the “Rules of Appreciation,” and they include such conventions as “the equity of the incumbent,” and “the neighborhood rule.” 14. The purpose of the Rules of Appreciation is to give the Boards of Election Tellers—the poll workers tasked with counting the ballots after the end of voting—guidance in counting the votes, in accordance with the overarching mandate to determine the voter’s intent. 15. The Rules are necessary because not everyone copies the names of the candidates as they appear on the Official List of Candidates, because the handwriting of some people can be really hard to decipher, and because many candidates have identical or at least similar sounding first or surnames.
PHL insurance industry: Reaching new heights of achievements Speech delivered by Insurance Commissioner Dennis B. Funa at the 2018 Annual Awards Night of Fortune Life Insurance Corp. on March 14, 2018, at the Citystate Tower Hotel, Manila.
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T is a pleasure and privilege to join you in congratulating Fortune Life’s most outstanding sales producers in 2017. The previous year has been one that we can all be proud of. Once again, the Philippine insurance industry reached new heights of achievements, ending the year with a resounding total assets of P1.56 trillion, premium income of P260 billion and net worth of P320 billion, of increments of 19 percent, 12 percent and 18 percent, respectively, from the amounts generated in 2016. Other indicators consistently point toward positive growth. As of December 31, 2017, the insurance density (or premiums over population) grew by almost 10 percent at P2,477 per person; insurance penetration (or premiums over the country’s gross domestic product) also grew from 1.61 percent to 1.64 percent; and the life insurance coverage (provided by private insurers) rose from 46.22 percent to 52.07 percent, out of an estimated population of 104.9 million Filipinos. Thank you, everyone, for working hard, for your persistence and dedication that has made all these achievements possible. Starting the year on the right foot gives us immense confidence, inspiration and fervor to face up to the opportunities and challenges of 2018. And there is much to look forward to. As sales producers of Fortune Life, you are fortunate to have a management who, I expect,
provides full support by providing you with appropriate business tools and resources, continuous trainings and education...and doubtless, makes sure that you are rewarded for all your efforts. What is asked from you in return is that you continue to assist your policyholders professionally. As they say, it’s the little things that matter... your patience in explaining policy features and provisions, disclosure of critical information about the plan, helpfulness in filling out forms, keeping in touch and updating them about new plans or riders.... These are but simple courtesies but they go a long way in earning clients’ trust and giving the company, and the industry itself, a good name. Your esteemed founder, Ambassador Antonio Cabangon Chua, had the foresight to recognize that as more Filipinos become financially better off, insurance protection against uncertainties will be considered an
FUNA
important need to be met. I believe that such a scenario is fast-becoming a reality, as more of our countrymen have become keenly aware and appreciative of the value of insurance. With determination and hard work, we may yet witness the full realization of your founder’s dream. The Insurance Commission, as always, remains your humble partner in the industry’s journey toward our goals. Complementing your efforts, the Office has been conducting lectures about insurance among students and ordinary citizens; and I myself have explored the use of media through radio and print, in hopes that we be able to reach a wider
group of people who might understand and realize how important insurance truly is. What do we see at the end of the road, for all these hard work? Barrack Obama tells us that “We see the future not as something out of our control but as something we can shape for the better through concerted and collective effort.” And so to a better Philippines, to a better life for Filipinos and to a better us, we have our work cut out for us. But for now, we rest, we enjoy and we celebrate your resounding success! Again, my congratulations to the awardees! Thank you.
Opinion BusinessMirror
www.businessmirror.com.ph
Friday, March 16, 2018 A11
Court rules, provisional Women taking the lead for Muslim gender equality ICC null and without force and effect Edgardo J. Angara
Dr. Jesus Lim Arranza Continued from A1
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N ICC is required on all imported products that need mandatory inspection and testing, such as deformed bars, for their compliance to Philippine quality standards before these can be released. MRTC, by the way, is rumored to be backed by ranking officials of a big business organization. The DTI’s issuance of a provisional ICC on the MRTC shipment was, however, questioned by the Philippine Iron and Steel Institute (Pisi), a member-organization of the Federation of Philippine Industries (FPI) where I sit as its chairman. And for having intervened in the standard compliance issue of the MRTC importation, then- Customs Commissioner Alberto Lina and myself were charged by MRTC at the Ombudsman for allegedly delaying the release of their shipment. The case was, however, dismissed. But it was not only Pisi that filed a complaint against the questionable issuance by the DTI of a provisional ICC on the MRTC importation. In a similar complaint filed by manufacturer Steel Asia at the Makati Regional Trial Court (MRTC), Judge Phoeve Meer ruled to stop the release of the uncertified steel from China to ensure its compliance with local standards, saying that the orders of the DTI were “null and without force and effect” for breaching the product standard law (Republic Act 4109). Meer said the orders “gave the DTI and BPS authority and powers beyond what the law prescribed,” adding that the DTI did not have the authority to issue provisional import commodity clearances, which led to the conditional release of the MRTC shipment. “The respondents cannot arrogate upon themselves powers not even contemplated by Congress,” Meer said in his decision. The DTI has, however, filed a motion for reconsideration on the MRTC ruling. The Philippine standard compliance issue of all certified mandatory imported and locally manufactured products has become even more important, as the country enters its
multitrillion-peso infrastructure era, if only to ensure the structural integrity of these structures. We are not against the DTI plan to undertake the inspection and testing of certified mandatory imported products at its port of origin to facilitate trade. But we insist that these imported products be inspected and tested as well in the Philippines, before these can be released to the local market. In fact, Steel Asia has offered to donate state-ofthe-art testing equipment to this regard. Large volumes of imported substandard products are now being dumped in the country. Let us not, therefore, allow smugglers to exploit the World Trade Organization’s trade facilitation thrust for their illegal activities. And while the United States is shoring up its local trade and industry protection measures by raising the duties and taxes of its importations, we can also implement nontariff measures to protect the local industry and consumers by strictly enforcing the country’s product standard rules, such as doing the inspection and testing of certified mandatory products in the Philippines. Meanwhile, may I greet my University of the East brods of the Mu Epsilon Lambda fraternity. Our recent fraternity get-together hosted by our fraternity brod Max Tan from the US, who has been away from the country for 46 years, was great and full of fun. Hope we can do it again brods. Dr. Arranza is the chairman of the Federation of Philippine Industries and Fight Illicit Trade, a broad-based, multisectoral movement intended to protect consumers, safeguard government revenues and shield legitimate industries from the ill effects of smuggling.
Poison attack on former spy isn’t just a UK problem
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he attack in Britain on the Russian former double-agent Sergei Skripal and his daughter Yulia marks, so far as anybody knows, the first offensive use of a nerve agent on the territory of a North Atlantic Treaty Organization (Nato) member. The response needs to be both firm and multinational. British Prime Minister Theresa May’s statement to a hushed parliament this week conveyed the seriousness of the act, and was clear about where the blame lies: There’s “no alternative conclusion other than that the Russian state was culpable,” she said. There are limits, though, to what the UK can plausibly do on its own. It should do what it can—while calling on allies to join in a concerted response. May announced that 23 Russian diplomats would be sent home—the largest such expulsion since the Cold War. Her government is considering the seizure of some Russian assets and will shut down some bilateral ties. Those moves aren’t worthless—symbols matter— but they won’t do much to inconvenience Vladimir Putin. More promising is May’s intention to tighten sanctions against Putin’s associates, some of whom own property in the UK. Visa bans and asset freezes targeted that way can sting. The prime minister also hinted at possible covert actions.
Fine—but the real need is for a collective response. The Skripal attack isn’t just a matter for Britain. The reckless use of such a terrible weapon is tantamount to an act of terror against a Nato member, and its aim is probably not confined to punishing Russian defectors and intimidating those who would do likewise. The UK and its friends must show that they aren’t intimidated and will not stand for such criminality. A joint response might include moves to ban Russian propaganda tools, such as the RT television network, and measures to restrict access to international capital markets. Such steps could be linked to stricter enforcement of the 1997 Chemical Weapons Convention, which bans states from developing, stockpiling, transferring or using chemical weapons. If Russia has been developing nerve agents that aren’t specifically precluded by the convention or in violation of it; that, too, needs to be addressed. Russia’s response so far is denial, derision and counterattack. Putin is engaged in a deliberate and measured escalation of tensions. The West in general and Europe, in particular, need to be deliberate, measured and above all effective in their response—and that requires coordinated action. Bloomberg View
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alala Yousafzai, a staunch advocate of women and children’s rights, courageously promoted education in sharp contrast to highly ultraconservative policies of her native province in Pakistan. She publicly expressed her advocacies despite a grave attempt on her life by the Taliban. Malala was awarded the Nobel Prize—the youngest to win the laureate —and became a catalyst for outlawing discrimination against girls and advancing their right to education. Sen. Santanina “Nina” Rasul, a distinguished colleague, pursued legislation by recognizing the indispensable contribution of women in development and nation-building. Senator Rasul had held various government positions representing Muslims and cultural minorities. She established the Magbassa Kita
Foundation Inc., which works to develop literacy of Muslim women in the Autonomous Region in Muslim Mindanao. Dr. Aziza Al-Hibri, professor emerita at the University of Richmond and former United States Commissioner on International Religious Freedom, is in town. She has
conducted notable studies that analyze the Islamic worldview and the need for new Islamic jurisprudence with the fast-changing trends and customs in both the Islamic states and Western economies. I have the opportunity to share insights on the role of women in Muslim communities, together with Domini Torrevillas of Philippine Star, Ellen Tordesillas of Malaya and Carol Araullo of BusinessWeek on March 15. Dr. Al-Hibri presided the discussions hosted by the Embassy of the United States in Manila. She argued in her book, the Islamic Worldview: Islamic Jurisprudence, An American Muslim Perspective, that misplaced agenda and vested interests blur the focal point of Islamic philosophy that is justice. Many Muslim women around the world have always been at the forefront of the crusade for equal rights, yet their voices are rarely heard. The intensifying upheaval in most global cultures to alter societal standards dominated by men presents an op-
portunity to create discourse for all women to engage in. Scholars have pointed out how the political ultra-right and extremists distort Islam intrinsic beliefs that give equal recognition for both man and woman—granting fundamental rights to life, property, and opinion. Enabling frameworks that will increase the participation of Muslim women in democratic processes are needed. For example, under the proposed Bangsamoro basic law, not less than 10 percent of seats in the Bangsamoro Parliament are reserved for women. The Philippines, a leader in gender equality, can become a role model on empowerment of women in Muslim communities through various mechanisms such as education. Placing the voices of Muslim women on a better platform would help build institutions and shape societies that advance equity and fairness.
E-mail: angara.ed@gmail.com| Facebook and Twitter: @edangara
Holy Week is a time of forgiveness and reflection Rev. Fr. Antonio Cecilio T. Pascual
SERVANT LEADER
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S the Catholic Church prepares toward the Holy Week, we must also prepare and offer ourselves before the passion of our Savior Jesus Christ by means of forgiveness and reflection. During this time, we must not forget how our Savior sacrificed His life to save us from our sins. We must remember, “God so loved the world that He gave His only Son, so that everyone who believes in Him might not perish but might have eternal life” (John 3:16). Holy Week is a time of forgiveness as we are preparing for the celebration of the coming of our Lord Jesus Christ to the Father. It is a
time to embrace our mistakes and shortcomings, and forgive all who had offended us. “We are the people of God; He loved us and chose us for His own. So then, we must clothe ourselves with compassion, kindness, humility, gentleness and patience” (Colossians 3:12). Let us not forget that “if we forgive others the wrongs they have done to us, our Father in heaven will also forgive us. But if we do not forgive
others, then the Father will not forgive the wrongs we have done” (Matthew 6:14-15). We must also take this as an opportunity to reflect with God about ourselves. Through sacrament and prayers, we are able to talk and reconcile with God and reflect on what we have done. In such way, we will be prepared for the coming of our Lord Jesus Christ as He is seated at the right hand of the Father. It is a time for us to “get rid of all bitterness, passion and anger. No more shouting or insults, no more hateful feelings of any sort” (Ephesians 4:31). We should always trust the Lord and “take delight in the Lord, and He will give the desires of our heart. Commit our way to the Lord; trust in Him and He will do this: He will make our righteous reward shine like the dawn, our vindication like the noonday sun” (Psalm 37:4-6). By means of reflection, we are
The Stephen Hawking I knew By Nathan Myhrvold Bloomberg View
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ost of us spend most of our lives without any sense of the imminence of our mortality. This wasn’t true for Stephen Hawking. He was diagnosed with amyotrophic lateral sclerosis at age 21 and given months to live. Whenever somebody uses the expression “delaying the inevitable” in my presence, I always reply, “Why yes, I woke up this morning alive.” I know someday that won’t happen; none of us lives forever, so all of life is about delaying the inevitable. On Wednesday this caught up with Stephen Hawking—but not before he had managed to delay the inevitable by more than 50 years, a time he spent exploring the universe, with the sword of Damocles dangling above him at every moment. I was a postdoctoral researcher with Stephen in 1983. The work I did with him focused on trying to solve fundamental questions. What are space and time? Where did the universe come from? How does quantum mechanics, which can be demonstrated in a candle flame, interact with gravity, which binds that candle to Earth? The work was fascinating, and while my later career took me far afield from these basic questions, the spirit of that inquiry stayed with me. The entire enterprise of fundamental physics is audacious in its ambition. Trying to puzzle out the truth about the universe from scant evidence is a huge undertaking, especially given the cosmic scale and its implications. Every day Stephen and I would discuss the origin of the universe, or the properties of gigantic black holes in the center of
Hawking Santi Visalli/Getty
the galaxy—things separated from us by billions of years and millions of light-years. That we can make any headway at all on such puzzles is surprising. Yet, Stephen was utterly undaunted by the challenge. In his presence, I could dare to think not only that it might be possible, but that I might even contribute to it in some way. Stephen’s scientific prowess, remarkable as it was, was only part of the picture, however. Daily life for him posed incredible physical challenges that could crush almost anyone’s spirit. A side effect was that once you’ve worked with Stephen, it’s pretty hard to feel sorry for yourself. Whenever things in your life seem miserable and unfair, you stop and think of him, and it resets your perspective. Maybe my lot in life isn’t so bad after all. It wasn’t just that Stephen did
Stephen’s scientific prowess, remarkable as it was, was only part of the picture, however. Daily life for him posed incredible physical challenges that could crush almost anyone’s spirit. A side effect was that once you’ve worked with Stephen, it’s pretty hard to feel sorry for yourself. his work from a body that barely functioned, though that is amazing enough. The positive attitude he exuded was even more incredible. He had a sharp wit and loved to tell jokes—and here, too, he succeeded despite his limitations. When I first worked with Stephen, before he had an electronic synthesizer, his voice had become a low, barely intelligible rumble. So much so that guessing the content was a good part of the task.
also offering ourselves to God. But “if we are about to offer our gift to God at the altar and there we remember that our brother has something against us, leave our gift there in front of the altar, go at once and make peace with our brother, and then come back and offer our gift to God” (Matthew 5:23-24). My dear brothers and sisters in Christ, let us take this season to put the value of “forgiveness” and “reflection” not only in our heart but in our soul. Let us put ourselves in the presence of the Lord so that someday we will be able to enter His Kingdom.
To know more about Caritas Manila, visit or follow us on Facebook: CaritasManilaInc. For your donations, please call our DonorCare lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph and follow its twitter and instragram accounts @veritasph and YouTube at veritas846.ph. For comments, e-mail veritas846pr@gmail.com.
Here’s the thing—the punchline of a joke is by its nature unexpected. So when he told a joke, he often had to repeat the punchline four or five times before we would finally get it. That sometimes painful process never dimmed his enthusiasm for entertaining us. Once, when we were alone, Stephen spoke to me about his condition. He said that, actually, it was an advantage! My response was blunt: C’mon, Stephen, it’s just me you’re talking to, tell me the truth. He repeated the claim and explained that the disability had at least two big benefits. First, he couldn’t write things down, so he had to keep more information in his head. Doing that forced him to simplify complex problems to a few crucial issues, a discipline that proved very helpful. Second, he said, nobody expected him to serve on faculty committees! Stephen never had much patience with such formalities. While I was working with him, an invitation came in to an elite workshop on super gravity, a theory that was hot at the time. The invitation specified that only one person per research group could attend; Stephen recommended a graduate student in the department who was working directly in this area. The organizers bristled and reiterated that they expected just the most senior person in the group to come. Stephen sent the student anyway, along with a note: “I’m sorry you do not have room for me to attend as well.” That generosity of spirit, expressed frequently and in many ways, endeared Stephen to everybody who worked with him. All of us who were lucky enough to have Stephen in our lives will miss him deeply.
Friday, March 16, 2018 A12
THE RISE OF DAVAO CITY
THERE SEEMS TO BE NO STOPPING DAVAO CITY’S RISE
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EING the Philippine’s largest city in terms of land area, and now, being the home of President Rodrigo Roa Duterte, Davao City continues to grow as a city and develop in terms of economic enterprise and infrastructures. But before the city came to be the Davao that we know today— the road was long. Local Historian Rogelio Lizada said that the word Davao is the product of the phonetic blending of the words for the three Bagobo subgroups referring to the Davao River. The Obo, considered the earliest aboriginal people of this territory, called the river Davoh. The K'lata (Obo-Ata mestizo), Diangan or Guiangan (Obo-Bagobo mestizo) called the river Duhwow. The Tagabawa Bagobo called it Dabu.
Commonwealth Act No. 51
ON March 1, 1937, eight decades and a year ago, Davao became a city by virtue of Commonwealth Act No. 51 signed by former President Manuel L. Que-
zon. The new city was a merger of the Municipality of Davao and the Municipal district of Guianga. A century before, it was a land inhabited by indigenous peoples, later colonized by Spain in the mid1800s led by Don Jose Uyanguren under the orders of Governor-General Narciso Claveria. Rapid economic progress began in the early 1900s under American rule when roads, telegraph lines and ports were set-up. Abaca and coconut plantations, business branches and factories were established. The period saw the entry of migrants from Luzon and the Visayas along with the Chinese, Japanese and the Americans. The city in its early years was governed by a succession of appoint-
ed leaders — Santiago Artiaga from 1936 to 1939, Agustin Alvarez from 1939 to 1940 and Pantaleon Pelayo, Sr. from 1940 to 1942 and from May to December 1945.
Japanese occupation
THE Japanese landed in Davao on December 20, 1941, and effectively controlled the city. The mayors during the Japanese occupation were Alfonso G. Obonza, Sr. (1943 to 1943), Melencio Sarenas (1943 to 1944) and Donato C. Endriga (1944 to 1945). According to an article written by Antonio Figueroa, the city’s economic progress was negated when the war broke out. “Commercial areas were flattened, roads linking to interior regions were eviscerated by aerial bombs, power supply was totally wiped out, population centers devastated, and nearly every trace of a city on its way to becoming an economic leader in Mindanao disappeared,” Figueroa said.The city was liberated when the Americans came in 1945. Immediately after the liberation, the City Government was re-established. Despite suffering tremendous devastation during the war, the city’s road to progress resumed.
Road to progress
IN 1946, the Davao Light and Power Company, Inc. was revived. Despite its damaged machinery, it was the first sign of hope that the city will
again rise from the ashes of the war. Other establishments were opened, like the San Pedro Hospital (1948) and the Apo View Hotel, the first high-rise building in the City in 1953. Educational institutions like Mindanao Colleges (now University of Mindanao), Rizal Memorial Colleges and San Pedro College were also founded. In 1955, Republic Act 1368 was signed into law which provided for the election of the City Mayor, Vice Mayor, and 10 City Councilors. In November 1955, the first local city elections were held, and Carmelo Porras was elected Mayor for the first time. Elias Lopez, a full-blooded Bagobo was elected as City Mayor in 1967. He served as mayor from 1967 to 1971 and in 1980 to 1986.
The Big Three
IN 1967, Davao Province was divided into Davao del Norte, Davao del Sur, and Davao Oriental. Davao became the regional capital of southern Mindanao; with the reorganization, it became the regional capital of the Davao Region and highly urbanized city in the province of Davao del Sur. The city continued to grow well in the 70s but political development in the country also made a tremendous impact on the city, especially when former President Ferdinand Marcos declared Martial
Law in 1972. By the 1980s, the city was again plunged into turmoil. It became a bloody laboratory for urban guerrilla warfare waged by the communist New People’s Army. In 1986, shortly after EDSA Revolution, the new government under Corazon Aquino appointed OIC officials across the country: Davao got Jacinto T. Rubillar (1986-1987) and Zafiro Respicio (1987-1988).
Rodrigo Duterte
IN the 1988 elections, Rodrigo Roa Duterte, a former fiscal and a son of the last governor of Davao Province rose to prominence. He was elected mayor of Davao City for three consecutive terms until 1998. Under his stewardship, peace and stability returned to the city. Davao was again enjoying years of unhampered economic progress. In the late 1990s to the 21st century, as a testament to the city’s growth and competent governance, Davao was awarded by Asia Week Magazine as one of Asia’s Most Livable Cities. It was also dubbed as the Most CultureFriendly City in the Philippines, The Philippines’ Most Livable City, One of the Safest Cities in the World and the list goes on. In the 21st Century, Davao has steadily shifted into a more cosmopolitan city with advances in information and communications technology. It has become one of
the country’s most modern and progressive cities. Investments continue to pour, with capitalists expressing their intentions to put up businesses in the city. Under the leadership of Mayor Inday Sara Z. Duterte, the city government is focused on addressing her top 10 priorities— Poverty Alleviation, Infrastructure Development, Solid Waste Management, Education, Health, Agriculture, Tourism, Transportation Planning and Traffic Management, Peace and Order, and Disaster Risk Reduction and Mitigation. After eight decades, Davao City is now the center of trade and commerce in Mindanao. Not only is the city rich in agricultural products like bananas, durian, cacao and orchids and tropical plants, but also bustling with real estate development, manufacturing, and others. This year, for example, the bigticket High Priority Bus Project is expected to start—where PUJs will be replaced by buses. This is a Davao City Government project in partnership with the Asian Development Bank. Davao City continues to be recognized for people development and welfare, economic growth, security, environmental protection, good governance and many other legislation that are being emulated across the country. | Davao City Information Office