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PHL confronts challenge of China on sovereign soil By Recto Mercene

@rectomercene

Conclusion

EFENSE Secretary Delfin N. Lorenzana was the first to broach China’s plan in Benham Rise. The Benham Rise is a 13-million-hectare undersea region located east of Luzon, off the provinces of Isabela and Aurora. Last year the Department of Agriculture (DA) said Benham Rise is ideal for implementing long-line fishing, a method that uses multiple hooks and is not widely practiced yet in the country. Compared to other fishing grounds, fishes caught in Benham Rise are bigger, the DA said, citing data from several years of research on the area. In a forum on security-threat assessment at the National Defense College of the Philippines, Lorenzana said he received a report that a Chinese survey ship could be searching for potential spots to place its submarines at Benham Rise. Lorenzana added the Department of National Defense (DND) did not know the reason for the Chinese survey. However, Lorenzana said he has ordered the Philippine Navy “to drive them [Chinese service ship] away and ilayo sila [bring them far] from the eastern side of the Philippines.” Continued on A2

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BusinessMirror A broader look at today’s business

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Wednesday, March 22, 2017 Vol. 12 No. 161

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rade Secretary Ramon M. Lopez is opposing the plan to create a trade representative office— similar to the Office of the United States Trade Representative (USTR)—seeing an inefficient duplication in effort and resources between the proposed agency and the Department of Trade and Industry (DTI).

PHL SELLING EXCESS SUGAR TO STABILIZE LOCAL PRICE By Jasper Emmanuel Y. Arcalas @jearcalas

he Sugar Regulatory Administration (SRA) said it has allowed local traders and producers to export sugar to countries other than the United States to arrest the decline in the domestic price of sugar. The SRA issued Sugar Order (SO) 1-B, which authorized the reallocation of locally produced sugar in

crop year (CY) 2016-2017. SO 1-B amended SO 1-A, issued by the SRA on January 24. Under SO 1-B, the SRA reduced the allocation for “B” (domestic) sugar to 74 percent from 94 percent and allocated the 20 percent for “D” sugar, or those shipped to countries other than the US. The SRA maintained its allocation for “A” sugar, which is exported to the US, at 6 percent. See “Sugar,” A2

PESO exchange rates n US 50.1450

The evil done by do-gooders

LOPEZ: “There will just be redundancy in work, extra bureaucracy and an extra budget.”

“I haven’t seen the proposal, but offhand, I don’t see the need to change it, because there will just be redundancy in work, extra bureaucracy and an extra budget. There won’t be quick synergies, and [the work] will not be efficient if it’s not under the DTI,” Lopez said in a text message. According to a BusinessMirror report on Monday, the government See “DTI,” A12

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DTI nixes plan to create specialized trade office By Catherine N. Pillas

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Teddy Locsin Jr.

free fire

O-GOODERS can be the worst. In the past year, dogooders like the New York Times have been pouring scorn on freedom icon Aung San Suu Kyi for allowing the systematic state-sponsored mass rape and mass murder of Rohingyas—Punjabi Muslims who wandered southwest to where they settled in old Burma. What is being done to Rohingyas qualifies as genocide under Goldhagen’s standards in his book Worse Than War. Rohingyas are not like those who choose the career of pushing drugs to destroy people. Rohingyas are what they cannot help but be: Burmese of another race and religion other than the dominant Buddhism. Just like Jews in Germany before World War II and Armenians in Turkey shortly after World War I. Continued on A10

Pagcor okays $500-M Mactan casino By Catherine N. Pillas

@c_pillas29

he Philippine Amusement and Gaming Corp. (Pagcor) has approved the license for Lapu-Lapu City Casino, a $500million integrated resort to be located on Mactan Island, Pagcor Chairman Andrea D. Domingo announced on Tuesday at the opening of the three-day Asean Gaming Summit in Pasay City. Domingo said another application

DOMINGO: “Cebu is the second-largest metropolis, and the local government units there are wiling to give the required noobjection resolution for casinos to operate, so it’s an attractive destination.”

from a Hong Kong-based group for a license to operate an integrated resort in Mandaue is pending approval. She refused to disclose the Filipino firm licensed to operate

the Lapu-Lapu City Casino. Pagcor requires a minimum investment of $300 million for integrated resorts located outside Metro Manila. “Cebu is the second-largest metropolis, and the local government units there are wiling to give the required no-objection resolution for casinos to operate, so it’s an attractive destination,” she added. Mea nwh i le, Dom i ngo sa id the public bidding of the service contract for its e-games network,

previously held by Philweb, will be held by the end of March or early April. “The TOR [terms of reference] for the service contract has already been approved by the board, and we’ll have the bidding by the end of the month or first week of April,” she said. Domingo earlier announced the service contract for its Internet cafés dedicated to casino gaming would undergo public bidding after it decided See “Pagcor,” A2

n japan 0.4455 n UK 61.9792 n HK 6.4575 n CHINA 7.2579 n singapore 35.9076 n australia 38.7571 n EU 53.8607 n SAUDI arabia 13.3720

Source: BSP (21 March 2017 )

BMReports BusinessMirror

A2 Wednesday, March 22, 2017

PHL confronts challenge of China on sovereign soil Continued from A1

A Chinese survey ship also figured in an accident in Benham Rise last year and it unloaded a patient to Surigao City, he added. That’s why we know they’re there, Lorenzana said, adding they also have satellite photos of Chinese ships in Benham Rise.

Apologetic tendencies

HAVING studied submarine warfare at the US Naval Academy, Annapolis, Maryland, Roilo Golez said he is worried the Chinese, which has a tendency to be apologetic, would “still do what they want to do in the end”. During a forum with reporters at the Manila Hotel last week, the former National Security Adviser to President Gloria Macapagal-Arroyo said China’s Island Chains Strategy is a “creeping invasion.” He said he is “worried now, if they can have foothold in Benham Rise, then they will be able to break out of the first island chain and project their presence outside, east of the Philippines, and that would become a security threat not only to us but a security threat to the other powers in the area, like the 7th Fleet, the United States and Japan.” He is sure the latter countries are monitoring what is happening in Benham Rise.

Sugar. . .

Respect, but

IN a news conference on March 15, Chinese Foreign Minister Hua Chunying said they respect the Philippines’s rights over Benham Rise. “But the basic principle of international law says that the [exclusive economic zone] and the continental shelf do not equate with territories, and a littoral state’s exercise of rights over the continental shelf should not hamper such rights as freedom of navigation enjoyed by other countries under international law,” Hua added. This view seems to be shared by Supreme Court Senior Associate Justice Antonio Carpio. In a recent forum, Carpio said, “China and other countries are also allowed to conduct depth soundings for navigational purposes because there is freedom of navigation in the ECS [Extended Continental Shelf]. If the Chinese vessels were looking for submarine passages and parking space, that would be part of freedom of navigation,” Carpio said. “And the Philippines has no reason to complain.”

Philippines owed

JAY Batongbacal said if it is proven that China has conducted underwater surveys, “China owes the Philippines an explanation to describe exactly what its vessels were doing since they were clearly

Continued from A1

“Monitoring reports showed the continuing downward trend in the withdrawals of raw and refined sugar in the domestic market and for four consecutive weeks, prices of sugar continued to drop,” SO 1-B read. “Hence, there is an imperative need to take urgent measures in order to arrest the detrimental economic effects of the imbalance between sugar production and the requirement of sugar and to stabilize the collapsing price of sugar consistent with public welfare,” it added. SRA Administrator Anna Rosario V. Paner said SO 1-B was issued following the requests made by sugar producers to make available “D” sugar to sugar food manufacturers. “Allocating ‘D’ or World Market Sugar will help ease the pressure of expected high sugar stock inventory and help stabilize the sugar situation to benefit the public,” Paner said. She added that the Philippines could ship to Japan and South Korea, where sugar is currently in demand.

not merely navigating for the purpose of getting from place to place.” “If it is found that China was undertaking marine scientific research, it is under an obligation to share all of its findings, information, and access to samples, data and research results with the Philippines and internationally,” said Batongbacal, director of the UP Institute for Maritime Affairs and Law of the Sea. “Refusal to do so entitles the Philippines to demand that China cease and desist from again conducting any such activities in the future, unless and until it is with the Philippines’s prior knowledge, consent, and participation.” Batongbacal added that if China is found to be “undertaking resource exploration and/or exploitation activities, it is under an obligation to respect and comply with the laws and regulations of the Philippines pertaining to such resources.” “The Philippines is entitled to demand that China cease and desist from such activities in the future, as such activities can only be undertaken by Philippine citizens and corporations duly authorized by the Philippine government,” he said.

Sinister intention

GOLEZ has likened China forays in Benham Rise “to somebody entering our yard, and saying, ‘I’m just going through, excuse me’.”

Sugar in the world market is currently pegged at P950 per 50-kilogram bag (lkg). Despite the reallocation, Paner said, the estimated ending stock balances for CY 2016-2017 will still be higher than normal levels due to the higher-thanexpected production, coupled with weak withdrawals. The government-owned and -controlled corporation under the Department of Agriculture pegged the domestic sugar demand for the current crop year at 2.15 million metric tons (MMT). The SRA projected that sugar output in the current crop year could reach 2.25 MMT, higher than the 2.236 MMT produced in CY 2015-2016. Based on SO 1-B, some 450,000 MT would be classified as “D” sugar. In an interview, Paner said the Philippines remains on track in hitting the 2.25-MMT target output. Data from the SRA showed that, as of March 12 the country’s total raw-sugar output has reached 1.913 MMT, 7.38 percent lower than the 2.065 MMT recorded last year. SRA data also showed that, as of March 5, the domestic price of sugar is at P1,359.67/lkg, while sugar destined for the US market is at P1,344.67/lkg.

Pagcor. . .

“That’s not passing through—they stand by,” Golez said. “And the intention can be a very sinister intention.” He said that’s exactly what the Chinese did in Mischief Reef in 1994 and in 1995, “when they said the shelters were only temporary”. “And we know what happened in Mischief [Panganiban] Reef.” At the Scarborough Shoal (Panatag), tensions arose when the Philippine Navy apprehended eight mainland Chinese fishing vessels in 2012. Following a standoff, both sides agreed to leave Panatag, following a third-party intervention. The Philippine Navy withdrew but the Chinese remained, until now. China this week said it will begin preparatory work this year for an environmental monitoring station on Panatag (Scarborough) Shoal in the South China Sea. “China will install an environmental monitoring station [a.k.a. radar station] on Scarborough Shoal,” according to Carpio. “A radar station on Scarborough Shoal will immediately complete China’s radar coverage of the entire South China Sea. China can then impose an Adiz [air defense identification zone] in the South China Sea.” Through an Adiz, China, the most weaponized nation among claimants to the disputed waters, may utilize missile silos it had earlier built over its bases on South China Sea islands.

Continued from A1

last August not to renew Philweb’s licensing and management contract for its e-games network. While Philweb Corp. operates the network and provides the software for the series of online gambling games, the cafés themselves are owned and ran by independent entrepreneurs. Pagcor’s decision was in line with President Duterte’s announcement halting online gaming and denouncing Philweb’s former chairman, Roberto V. Ongpin, as an “oligarch”. Domingo said Pagcor is projecting revenues of P155 billion to P160 billion for the whole gaming industry for 2017, on the back of the Duterte administration’s push to invite more investors in the country. She said the gaming industry can achieve this target since the country is strengthening its partnership with other Asean members, and the Duterte administration’s push for a level playing field in the industry. For 2016 Pagcor’s gross gaming revenues grew 17 percent to P55 billion against 2015’s P43.39 billion. “Like I said, we are more friendly with other Asean countries, we are offering a level playing field in terms of business investments, we are a very safe country, and we have a lovely people and an open society that knows nothing about discrimination. I think this will all work together because we have a very strong President who does what he preaches and makes good his promises,” she added. With Rea Cu

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SMC. . .

Continued from A12

water, but we can always do more. Given the scale of our need, we’re working to become more conscious about our water footprint.” A major component of San Miguel’s water strategy involves minimizing the amount of water it draws from groundwater sources, and instead reusing and recycling process water and harvesting rainwater. The company said it can also utilize surface runoff water (usually excess stormwater) from mountains, creeks and rivers, and filter and store these for irrigation. Ang reports that the first year of implementation will focus on establishing baseline information, data that will then be analyzed to see where the company could improve both, in terms of efficiency and conservation. Metering and establishing operating standards is the first order of the day. While many of the newer plants have water meters per line and per process, other older facilities need to be fitted with additional meters. Installing separate water meters will make water audits relatively easier to perform, prevent wastage and improve efficiency.

Petron’s desalination plant

San Miguel’s newer facilities are all built with smart water usage in mind. Petron’s RMP-2 plant in Limay, Bataan, is outfitted with the latest technology to reduce freshwater and groundwater consumption, and minimize the environmental impact of wastewater discharge from its oil and gas operations. Much of the raw water used by RMP-2 comes from the sea via a state-of-the-art desalination facility. Desalination is a process that transforms salt water into consumable water. Built at the cost of P474 million, the desalination plant supplies 25 percent of the roughly 2,100 cu m per hour total water requirements of the refinery. An estimated 60 percent of the total amount of water the refinery uses go to its boiler-houses—to produce high-pressure steam that, in turn, is used both to generate power and to process steam. For Petron RMP-2, further areas for water efficiency improvements are in power generation and in the refining process itself. Recycling water is an important aspect of the refinery integrated water-management system. About 67 percent of the water RMP-2 uses is cycled back into the operations before being returned to the sea nearby. Ang’s challenge to refinery operators is to further increase the amount of recycled water without sacrificing product quality. “It can be done. With technology in our newer facilities, we have enormous innovative capacity to tackle the challenge of water scarcity and create positive water impact.”

SMB efficiency, highest in 10 years

Another business where much has been done in terms of improving water usage is San Miguel’s beer business. The company owns and manages five breweries and a packaging plant in the Philippines. Water is not only beer’s principal ingredient, but also essential in the brewing process. Further driving up water usage in the production of beer is the use of agricultural raw-material inputs that also place great demands on water. In the brewing process, water is used in generating steam, and in the cooling and washing processes. With water efficiency rates ranging from 4.0 to roughly 3.5 hectoliters per hectoliter of beer, San Miguel Brewery’s efficiency levels have improved significantly over the last 10 years. A decade ago water usage was between a ratio of 5.4 and 4.3 per hectoliter. Nevertheless, the country’s leading brewer is looking to improve levels by reducing the amount of water related to packaging. Each of the five breweries are equipped with on-site water-treatment facilities, but Ang is confident that improvements can still be made to recapture and reuse wastewater across the operations. With more fine-tuning in utility management and wastewater recovery, water use can potentially be cut down by as much as 20 percent in the older plants.

No effort is too small

“At the simplest level, it’s about educating our employees to be more conscious about our water footprint,” Ang said. “No effort is too small. In many of our facilities, we’ve fitted things like prerinse spray taps and low-flush toilets or percussive taps. We regularly monitor for leaks and we’re educating our employees on the importance of conservation. We’re looking to building cisterns and systems to collect rainwater.” San Miguel is also participating in large-scale government public-private partnerships projects. To provide a stable water supply to 21 municipalities and three cities in Bulacan, San Miguel signed a concession agreement to undertake the P16-billion Bulacan Bulk Water Supply System. “Water is a basic human resource and a basic right. But it is also an essential ingredient to our products and business. Our responsibility, therefore, is far greater than most. We hope many other companies will follow our example,” Ang said.

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Marines lead offensive against NPA rebels

HE military manhunt operation against a band of communist rebels entered its second day on Tuesday in Kalamansig, Sultan Kudarat, following the ambush of the Marines on Monday at a remote village in the area. The ambush staged by the New People’s Army (NPA) guerrillas resulted in the death of a Marine and wounding of eight other Marines. “The military pursuit operation, led by the Marines, is still going on,” said Capt. Arvin John Encinas, Army Sixth Infantry “Kampilan” Division spokesman. He said the Marines were on security patrol in the vicinity of Sitio Tinagdanan, Barangay Hinalaan, Kalamansig, Sultan Kudarat, when an undetermined number of NPA rebels opened fire, triggering a daylong running gun battle starting Monday morning. Encinas said the name of the fatality was withheld pending notification of his next of kin. Information that reached the First Marine Brigade based in nearby Lebak, Sultan Kudarat, indicated that the NPA guerrillas were from the adjacent towns of Sen. Ninoy Aquino and Palimbang, also in Sultan Kudarat. A source said six communist rebels were killed when the Marines subjected Barangay Hinalaan to artillery fire. “There are no NPA members in Kalamansig, they come from nearby communities and influenced our people, especially the indigenous peoples,” Kalamansig Mayor Ronan Eugene Garcia said. He condemned the presence of NPA rebels in his town and their efforts to influence the tribesmen to rebel against the government. “Theirs [communists] is a lost cause; it is oppression to terrorize

people into rebeling against the government,” Garcia said. “As father of the municipality of Kalamansig, I strongly condemn the disruption of normal and peaceful coexistence of all Kalamansigueños committed by the rebels,” he said. Garcia urged townmates “to resist any attempt to be influenced by a lost cause”. He also urged authorities not to allow the recent act of violence by the rebels go unpunished. Meanwhile, government and Communist Party of the Philippine (CPP)-NPA-National Democratic Front (NDF) negotiators will meet in the Netherlands from April 2 to 6 for the fourth round of formal peace negotiations. The Norwegian Embassy in Manila said the talks will be held in the town of Noordwijk. Norway has been the third-party facilitator of the peace negotiations between the government and the CPP-NPA-NDF, which has been waging a 49-year-old insurgeny, since 2001. The decision to resume the talks, which President Duterte terminated following the lifting of both parties’ respective unilateral cease-fires in early February, was arrived at during informal talks in Utrecht, the Netherlands, earlier this month. “I am pleased that representatives of the Philippine government and the NDF will meet for a new round of talks. Despite challenges along the way, the parties continue to show their commitment to  peace. Norway will continue to assist the parties as the thirdparty facilitator of the peace process,” Norwegian Ambassador to the Philippines Erik Førner said in a statement. With PNA

Editor: Dionisio L. Pelayo • Wednesday, March 22, 2017 A3

Cops foil Maute Group’s terror plot, bag 1 suspect

HE National Police reported on Tuesday that it has foiled another attempt by the Islamic State in Iraq and Syria-inspired Maute Group to launch terrorist attacks in Metro Manila.

“I am glad that alert operatives of the NCRPO [National Capital Region Police Office] discovered and intercepted in time an improvised explosive device being prepared by the suspects even before it can be delivered to its

possible target or used elsewhere,” Director General Ronald M. dela Rosa, National Police chief, said on Tuesday. Dela Rosa also presented to the media a captured suspected Maute terror group member, iden-

tified as Nasip Ibrahim, 35, a native of Marawi City. Ibrahim was arrested in a police operation in Salam Compound, Barangay Culiat, Quezon City, on Monday night. “We are yet to uncover the circumstances surrounding this incident involving the Lanao-based Maute Group, but this discovery leads us to believe that the Maute Group has already established presence in Metro Manila; as to what extent, that is the subject of our follow-up investigation and operations,” dela Rosa said. Seized from Ibrahim’s possession include a Colt caliber .45 pistol loaded with four rounds of ammunition,

a caliber .45 pistol loaded with six rounds of ammunition, a KG 9mm submachine gun with 34 rounds of ammunition, a 60mm mortar shell with a detonating device and seven heat-sealed transparent plastic sachets of a crystalline substance believed to be methamphetamine hydrochloride, or shabu. The suspect was one of the Maute Group members allegedly involved in the foiled bombing attempt in the vicinity of US Embassy in Manila in November last year. “I do not want to sound alarmist or cause panic, but prudence, it has been said, is the better part of valor. I, therefore, urge our people to remain calm, yet alert, and vigilant of the presence of threat groups in our midst,” dela Rosa said. The suspect is facing illegal possession of firearms, ammunition and explosives charges, possession of prohibited drugs and obstruction of justice for allegedly concealing a wanted person. The Metro Manila police commander, Director Oscar Albayalde, together with the chief of the Quezon City police, Chief Supt. Guillermo Eleazar, confirmed that Metro Manila is now on “high-security threat level” after Ibrahim’s arrest. Albayalde said the National Police is continuously focused on “targethardening measures”, since there is a possibility that members of the terrorist group have established their presence in Metro Manila. He said one of the leaders of the Maute Group, identified as Yusof Makoto, is reportedly in Metro Manila. PNA

‘No contradiction in statements of Duterte, Australian FM’ Red Cross prepares for ‘Big One’

ALACAÑANG on Tuesday dismissed the seemingly contradictory statements issued by President Duterte and Australian Foreign Minister Julie Bishop regarding human-rights issues in the Philippines, saying it was “just a difference in perspective”. “There was no contradiction between the Australian official and the Philippine president, just a difference in perspective,” Presidential Spokesman Ernesto C. Abella said in a statement. “Since they had a productive dialogue, which emphasized possible areas of constructive cooperation on the war against illegal drugs, the President did not deem it sufficient to

mention as having been discussed,” the Palace official stressed. Bishop paid a courtesy call on President Duterte in Davao City last Friday. Pressed during a briefing in Davao City before going to Myanmar on Sunday, Duterte said he and Bishop did not discuss human rights, and instead delved into “transnational crimes and terrorism”. Later, Abella said Duterte and Bishop discussed terrorism, violent extremism, as well as maritime safety and freedom of navigation and overflight. He added Australia had pledged $40 million for the Mindanao peace process, while Duterte expressed interest in learning about responsible

mining from Australia. “On the whole, the meeting was positive and just affirmed the growing Philippine-Australia relations,” Abella said. But in a statement to Fairfax Media published Monday on The Sydney Morning Herald, Bishop said that she and Duterte discussed the Philippine government’s antidrug campaign at length. “I conveyed Australian and international concerns with respect to extrajudicial killings and spoke of the importance we attach to human rights and the rule of law,” Bishop said. However, in the same predeparture briefing on Sunday, Duterte

had repeatedly stressed that in the war against illegal drugs, the government just follows the rules provided for by law. “And if you are a criminal and you are caught in the act, do not fight, because if you place the guy’s [government forces] life—place it in jeopardy of losing it, my order is to shoot you,” he said. “The only thing really to do is just to surrender with your hands raised up. But there will never be a time that I will condone killing with a criminal, or a person arrested with arms straight up begging for his life—or what would popularly be known as extrajudicial killing,” Duterte said. PNA

DOJ issues immigration lookout order vs suspect in Cebu road-rage shooting By Joel R. San Juan @jrsanjuan1573

HE Department of Justice (DOJ) has issued an immigration lookout bulletin order (Ilbo) against David Go Lim Jr., the primary suspect in the alleged Cebu road-rage-shooting incident. Justice Secretary Vitaliano N. Aguirre II ordered Immigration Commissioner Jaime Morente to instruct all immigration officers in the country’s airports and seaports to be on the lookout to

prevent any attempt of Lim to leave the country. Lim surrendered to Cebu authorities after he went into hiding following the shooting that happened on March 19. Lim reportedly engaged the shooting victim, Ephraim Montalbo Nunal, in a traffic altercation on F. Sotto Street, Barangay Kamputhaw, Cebu City, on Sunday. “We issued the Ilbo to curtail any efforts on the part of Mr. David Go Lim Jr., or those trying to protect him, to evade any responsibility from the shooting

incident. If he committed the act attributed to him by the victim, then he should squarely face the charges against him,” Aguirre said in a statement. Aside from the Bureau of Immigration, the National Police was also furnished a copy of the order. An Ilbo is different from a courtissued hold-departure order (HDO) since the former only directs the BI to be on the lookout for the subject and to verify the status of the case against the subject person and not to restrict the individual from leaving the country.

However, a person subject to the Ilbo should seek an allow-departure order (ADO) from the DOJ chief to be allowed to leave. Supreme Court (SC) Spokesman Theodore Te clarified that no arrest warrant has been issued yet for the arrest of Lim because no case has been filed against the latter. Te said this was based on the information provided by Executive Judge Gilbert Moises of the Regional Trial Court in Cebu City in response to criticisms on the supposed failure of the court to issue an arrest warrant against Lim.

UBB HALLS, ambulances, emergency field hospitals, rescue trucks, payloaders, water tankers, generators, and thousands of doctors, emergency medical technicians (EMTs), surgeons, trained first aiders and Red Cross 143 volunteers—the Philippine Red Cross (PRC) has mobilized its entire system in anticipation of the “Big One” earthquake that may hit Metro Manila. The West Valley Fault, which traverses Metro Manila through Quezon, Marikina, Makati, Pasig, Taguig and Muntinlupa cities and Bulacan, Laguna and Cavite, as well as the nearby Rizal province, is ripe for movement, according to the Philippine Institute of Volcanology and Seismology (Phivolcs). The West Valley Fault moves roughly every 400 years, the last of which happened in 1658, or 359 years ago. The Metropolitan Manila Development Authority said should a 7.2-magnitude earthquake strike the metropolis, it could cause 34,000 deaths and 114,000 injuries due to collapsed buildings. The PRC, with its trained 143 Red Cross volunteers, has been preparing for the Big One for years, and the organization is fine-tuning its current response strategies to said large-scale disaster. By the end of March, the PRC will conduct an earthquake simulation involving PRC chapters in cities

Senators split on Carpio’s West Philippine Sea initiative

ENATORS are divided on giving legislative backing to Supreme Court Justice Antonio Carpio’s initiative prodding President Duterte to protest China’s impending construction projects in Panatag Shoal on the West Philippine Sea (WPS). Senate Majority Leader Vicente

C. Sotto III saw no necessity for it even as Minority Leader Franklin M. Drilon said he was supporting Carpio in seeking Palace legal action to block planned Chinese constructions in the shoal that is within the Philippines’s exclusive economic zone. “No need,” Sotto told the Busi-

nessMirror on Tuesday, citing reports reaching his office indicating that China is not likely to go ahead with the plan. Drilon, for his part, replied “yes” when asked if senators would join Carpio in urging Duterte to take preemptive legal options before China

starts putting up structures on WPS sites claimed by the Philippines. Sen. Sherwin T. Gatchalian, at the same time, suggested the Philippine government could lodge a “strong protest” against China before the United Nations. “The best option for our country and the government is

to send a strong protest to the UN in relation to the clear violation of China to the arbitral ruling and our sovereignty,” Gatchalian said. This developed as Party-list Rep. Francisco A. Acedillo of Magdalo, in a separate interview with the BusinessMirror earlier, disclosed that

that lie on the West Valley Fault. The simulation—where PRC will apply its formula of volunteers + logistics + information technology—also aims to help the organization determine other areas where the PRC can maximize its volunteers and logistics. “We are prepositioning all our resources—logistics like ambulances and rescue trucks and volunteers, such as doctors and trained first aiders—in case of a mass-casualty incident that could result from the big earthquake,” PRC Chairman Richard J. Gordon said. The PRC also has fire trucks and Humvees in its emergency fleet, as well as equipment that are necessary for surviving the first few days of the aftermath of the disaster, such as generators, satellite telephones, portable toilets, water bladders and tents that can be used as temporary shelters. Since hospitals would surely be packed after the disasters, the PRC has Emergency Field Hospitals (EFH) that can cater to those who could no longer be accommodated in hospitals. PRC’s EFH has a maximum bed capacity of 100. The EFH can also be expanded for maternal and surgical procedures. The PRC reminded the public to be informed about what to do before, during and after an earthquake. To help equip the public with life-saving skills, the PRC created the Hazard App and the First Aid PH app, both available for free at the App Store and Google Play Store. Claudeth Mocon-Ciriaco

China was “actually setting up island fortifications” and simultaneously “developing anti-access-area denial, or A2AD weapons” as part of its preemptive strategy, apparently meant to deter other claimants on the disputed land features on the WPS.

Butch Fernandez

Economy

A4 Wednesday, March 22, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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PPA sees flat ’17 growth amid peso volatility, DENR’s closure of mines

By Lorenz S. Marasigan

@lorenzmarasigan

ESPITE booking tremendous growth in 2016, the Philippine Ports Authority (PPA) is expecting to close the year on a flattish note, due to the continuing volatility of the peso and the expected drop in the operations of the mining industry in the country.

PPA General Manager Jay Daniel Santiago said the closure of several Philippine mines and the weakening peso had caused the agency to revise its “targets and budgets from 20 percent to 3 percent”. “We anticipate it to be nominal due to several developments, partic-

ularly in the mining industry, which has been one of our growth areas the past couple of years,” Santiago said. Among the hard-hit areas by the issues clouting the Philippine mining industry include the ports under the Port Management Offices of Surigao, Nasipit, Palawan, Batan-

₧6.159B The PPA’s 2016 net profit, which is 165 percent higher than the previous year’s P3.836 billion

gas, Manila and Northern Luzon. These ports handle the bulk of the shipments from the mining firms like nickel, manganese, smelted copper and refined copper, including pumice, marble and silica sand as well as iron ore, chromium, silver and zinc. Surigao alone broke past a half billion in annual revenues for the first time in more than three decades, anchored on the increased volume in the exportation of mineral products at private mining ports, along with longer port stays and

increased vessel frequency. “Nonetheless, the PPA will remain resilient and committed to carry out its mandate of better connectivity and service amid these developments,” Santiago said. Meanwhile, the revised corporate operating budget (COB) of the PPA this year was reduced to P14.59 billion, which is only 2 percent higher than the 2016 COB, wherein the biggest reductions were in port dues, berthing, anchorage; arrastre/stevedoring; pilotage; wharfage for export; roll-on, roll-off (Roro) fees; as well as nontraditional income sources. Revised operating expenses, on the other hand, ballooned to P16.22 billion this year from only P9.33 billion last year, while total capital expenditure increased to P7.42 billion this year compared to the P3.50 billion in 2016, in order to implement several port projects that include the modernization of

Mindanao and Visayas ports, like Iloilo, General Santos, Cagayan de Oro and Zamboanga; improvement of all passenger terminal buildings; repair and maintenance projects; and the implementation of 14 other capital-expenditure projects. Total budgetary outlays for the port regulatory is now pegged at P23.64 billion compared to the total budget source of P23.87 billion. Last year the PPA posted a P6.159billion net profit, beating the target by 165 percent, or P3.836 billion. The PPA was able to achieve the feat with strong figures coming from lay-up fees, Roro fees, berthing fees and remittances from Asian Terminals Inc. Compared to the year-ago level, the 2016 figure is 8 percent better against the P5.705 billion registered in 2015. “While we expect this condition to be temporary, the Authority is bracing for a challenging 2017,” Santiago said.

DOE closed 755 renewable-energy deals as of end-December last year

HE Department of Energy (DOE) has awarded 755 renewable energy (RE) contracts, with a total potential generating capacity of nearly 17,000 megawatts (MW),

as of end-December last year. Of the total awarded RE projects, 715 MW were for grid-use, while 39 MW were for self-generation. The DOE data was released on its web

site on Tuesday. Hydropower projects make up most of the awarded contracts at 413, followed by solar developments at 150. Meanwhile, the agen-

cy awarded 58 wind contracts, 45 biomass, 43 geothermal and seven ocean energy contracts. The same data also stated that there are 322 pending RE applications, with a potential capacity of 3,987.72 MW more. The bulk of these projects is solar. The DOE has yet to give its green light to 201 solar contract applications, with a potential generating capacity of 2,130.80 MW. Other pending contracts include hydropower, with 88 applications; wind, with 22 applications; biomass, with 3; and geothermal, with 3 applications.

The pending hydro contracts h av e a p ot e nt i a l c ap a c it y of 1,484.02 MW, wind, at 260 MW; geothermal, with 60 MW; and biomass, with 43 MW. The DOE has long been pushing for RE development to diversify the country’s power sources and ensure adequate power supply. There is also an incentive program provided to RE developers under the feed-in tariff scheme. The DOE has also cut down the processing of RE projects to 45 days, from 100 days, to fast-track the development of RE projects. Lenie Lectura

NHA evicts Kadamay members

he National Housing Authority (NHA) has decided to evict all the unauthorized occupants of housing units intended for the military, police and informal-settler families in Bulacan. In a statement on Tuesday, the NHA said it issued eviction notices to members of Kalipunan ng Damayang Mahihirap (Kadamay) occupying 5,262 housing units in seven NHA project sites in the province. The NHA said the Kadamay members will have seven days upon receipt of the eviction notice to leave the housing units they occupied.

“We ask them to vacate the units and follow the housing procedures, like answering the housing information form, screening process and awarding/ beneficiary selection," NHA General Manager Marcelino P. Escalada Jr. said. The housing units in the Pandi and San Jose del Monte resettlement sites that were occupied by Kadamay members were intended for low-salaried uniformed personnel of the Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection and Bureau of Jail Management and Penology. Cai U. Ordinario

No ‘rotten’ meat from Brazil in local market, BAI assures By Jasper Emmanuel A. Arcalas @jearcalas

he Bureau of Animal Industry (BAI) has assured consumers on Tuesday that there is no “rotten” meat from Brazil being sold in the local market. “Yes, we are aware of the [rotten meat] issue [from] Brazil, and we are now closely monitoring the [matter], and conducting strict surveillance in all of their products. But, as of now, we haven’t received any complaints of tainted meat from Brazil,” BAI Assistant Director Dr. Simeon S. Amurao Jr. told the BusinessMirror. The BAI, an attached agency of the Department of Agriculture (DA), regulates the entry of meat imports in the country, specifically to prevent the intrusion of animal-related diseases, such as avian influenza. Amurao said they would immediately impose a total ban of meat importation from Brazil should they discover even at least a container of rotten beef coming from Brazil entered the Philippines. “That would be a flaw in their system, that would mean there's something wrong with their health certification,” Amurao said. “If they would issue a health or export permit for a rotten meat, then they would totally lose our trust. We cannot trust anymore their certification system, so we can stop all the importation of meat from Brazil because of that,” Amurao added. In an Associated Press (AP) report, two big Brazilian meat packers were found to be bribing Brazil’s Agriculture Ministry inspectors to keep rotten meat in the local market and be allowed for exportation. The police said after a two-year investigation that part of the money allegedly paid by meat packers JBS and BRF was channeled to two major political parties, including the one of President Michel Temer, according to the AP report. President Michel Temer and his agriculture minister met with top diplomats of the European Union (EU), Sweden, Canada and other countries to say slaughterhouses were being properly audited and that Brazilian meat is safe to eat, according to a Bloomberg report. Brazil’s rotten-meat scandal has prompted countries, including China, the EUand South Korea, to suspend meat importation from the South American country.

Chinese leader’s visit ‘brightens’ realization of Mindanao railway, 4 other devt projects

AVAO CITY—The National Economic and Development Authority-Region 11 (Neda-11) has expressed optimism that the recent visit of China’s vice premier here will lead to the realization of five key development projects, including the Mindanao Railway System. Maria Lourdes Lim, Neda -11 director, said China’s Third Vice Premier Wang Yang expressed his country's interest to develop the five development projects presented to him last Saturday. The five projects presented to Wang were the 23.3-kilometer Davao City Expressway Project, worth P24.5 billion; Davao City Coastal Road project, worth P34.5 billion; Davao Coastline and Port Development Project, worth P38.95 billion; P31.3-billion Mindanao Railway Project; and the P40.57billion Development, Operations and Maintenance project of the Davao Airport. Lim said that, among the five projects, it is only the Davao Coastal Road that has an initial government funding of P2 billion for the road right-of-way renumeration.

She announced they will present to the Neda investment coordination board the study on the Mindanao Railway project by the third quarter. The proposed Mindanao Railway covers a 2,000-km loop line that will connect the key cities of Davao, Zamboanga, Butuan, Surigao, Cagayan de Oro, Iligan and General Santos City. The project is anchored on the Mindanao Special Strategy framework. The railway project would involve the construction of modern railway tracks, terminals in strategic areas and trading post. Lim said the first segment of the construction covers the TagumDavao-Digos line, with an estimated cost of about P31 billion, to be financed through official development assistance or through public-private partnership. The interconnection of six regions would strengthen the economic and physical linkages, and enhance the delivery of basic services and disperse economic opportunities in urban, rural and the island-provinces in Mindanao. Wang also made site visits to the

Davao International Airport and the Santa Ana wharf. ”We are hoping that this will turn out positive. He expressed interest on the projects that we have presented,” Lim said. Besides the Chinese government, Lim said the Japanese government also showed interest on the Mindanao Railway Project, which has been a longtime plan of the government to interconnect major cities in Mindanao and to boost development in the countryside. A follow-up visit by Chinese Ambassador to the Philippines Zhao Jianhua is expected on March 24 to further discuss the proposed projects that the Chinese government will invest in. During his visit, the Chinese vice premier inked deals worth $6 billion, mostly involving agriculture exports to China. Wang was the highest Chinese government official who visited the hometown of President Duterte. He opened several economic and investment projects as the Philippines and China renewed their relationship after Duterte visited Beijing last year. PNA

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The World BusinessMirror

Wednesday, March 22, 2017

FBI investigating Trump’s Russia ties, Comey confirms

ASHINGTON—Federal Bureau of Investigation (FBI) Director James B. Comey took the extraordinary step on Monday of announcing that the bureau is investigating whether members of President Donald J. Trump’s campaign colluded with Russia to influence the 2016 election.

Come y ’s test i mony before t he House Intelligence Committee created a treacherous political moment for Trump, who has insisted that “Russia is fake news” that was cooked up by his political opponents to undermine his presidency. Comey placed a criminal investigation at the doorstep of the White House and said officers would pursue it “no matter how long that takes”. Joined by Adm. Michael S. Rogers, the director of the National Security Agency, Comey also dismissed Trump’s claim that he was wiretapped by his predecessor during the campaign, a sensational accusation that has served as a distraction in the public debate over Russian election interference. Taken together, the two provided the most definitive statement yet that Trump’s accusation was false. The New York Times and other news organizations have reported the existence of the investigation into the Trump campaign and its relationship with Russia, but the White House dismissed those reports as politically motivated and rallied political allies to rebut them. Comey’s testimony on Monday was the first public acknowledgment of the case. The FBI discloses its investigations only in rare circumstances, when officials believe it is in the public interest. “This is one of those circumstances,” Comey said. Comey said the FBI was “investigating the nature of any links between individuals associated with the Trump

campaign and the Russian government, and whether there was any coordination between the campaign and Russia’s efforts”. Counterintelligence investigations are among the FBI’s most difficult and time-consuming cases, meaning an investigation could hang over the Trump administration for years even though such inquiries rarely lead to criminal charges. US intelligence agencies concluded in January that President Vladimir Putin of Russia personally ordered a covert effort to hurt Hillary Clinton’s chances and aid Trump. That included hacking political targets, including the Democratic National Committee, and releasing embarrassing e-mails through the web site WikiLeaks. The White House dismissed most of Comey’s testimony, saying there was no coordination between the Trump campaign and Russia and so there was nothing to investigate. Sean Spicer, the White House press secretary, said the more pressing issue was who disclosed classified information about Trump’s advisers to journalists, suggesting that they might have been former members of the Obama administration. US officials have said that they have so far found no proof of collusion between the Trump campaign and Russia, but current and former officials say they have uncovered evidence that Trump’s associates were in repeated contact with Russian officials—including people linked to Russian intelligence.

China’s taxes on imported cars feed trade tensions with US

EIJING—A Jeep Wrangler can cost $30,000 more in China than in the United States— and the reasons illustrate a growing point of tension between the two countries. Manufactured in Toledo, Ohio, the Wrangler is a descendant of the jeeps that were used by US forces in World War II. Equipped with a 3.6-liter engine and a five-speed automatic transmission, the Rubicon edition of the Wrangler has a suggested retail price of $40,530 in the United States. But in China, the same vehicle would set a buyer back by a hefty $71,000, mostly because of taxes that Beijing charges on every car, minivan and sports utility vehicle (SUV) that is made in another country and brought to China’s shores. Those taxes on imported cars have become a growing area of friction between the United States and China. Former US officials and advisers to President Donald J. Trump say that concern about the widening US deficit in automotive trade has become a pressing issue before the president’s meeting in Florida next month with his Chinese counterpart, Xi Jinping. Hinting at potentially tough talks to come, Lawrence H. Summers, a former Treasury secretary, raised the issue of auto trade in the first question to Li Keqiang, China’s premier, at a closed-door meeting on Monday, participants in the meeting said on the condition of anonymity because the discussions were private. Li did not answer the question directly, the people said, instead responding that every country faced trade issues, and that China had its own trade deficits with a few countries, like Australia, from which it imports a lot of raw material. Trump has made trade a major issue, saying he wants a level playing field and similar terms on both sides. Partly because of China’s taxes, less than 5 percent of cars in the country are imported, compared with one-quarter in the United States. Major US, European and Japanese carmakers have built huge assembly factories in China with the help of local partners, contributing to China’s rise as the world’s largest automaker. Mostly because of taxes in China, “an imported car can be double the price when compared with a domestically produced car,” said Bill Russo, former

chief executive of Chrysler China. “This acts as a powerful motivation, especially for mass-market brands, to localize their products in China.” The online news organization Axios reported recently on potential political tensions between China and the US over the auto industry. But the industry dynamics are complex. US auto companies, which have come to depend on China as a major source of revenue, have been largely quiet despite Trump’s statements. Building cars in China keeps them close to a vast Chinese supply chain and saves on transportation costs. Companies like Fiat Chrysler, manufacturer of the Wrangler, also set prices in China that allow somewhat higher profit margins. Pricing can depend on factors like taxes, shipping, certification costs, equipment options, the size of the market and other details, said Ariel Gavilan, a Fiat Chrysler spokesman, in an e-mailed reply to questions. “We also take a look at the competitive landscape—i.e., what are the prices of the vehicles we compete against—before determining our pricing strategy.” Industry figures have also long talked about the possibility of exporting big volumes of China-made cars to the US. In an early test, General Motors started shipping the Buick Envision model from a factory in eastern China’s Shandong province to the United States last year. That decision irritated the United Automobile Workers union. GM officials said the Envision, a midsize SUV, was designed for the Chinese market and is made only at the Shandong factory. There is only a small chance that Chinese automakers would set up assembly plants in the US, the way Japanese automakers did in the 1980s to allay trade tensions. But China’s highly fragmented industry includes several fairly small manufacturers producing low-cost models, making the economics difficult, while Chinese automakers must still deal with quality problems. Parts are also an issue. In January, the most recent month for which data is available, the US had $817 million in automotive exports to China, including finished cars and auto parts, and $1.71 billion in automotive imports. New York Times News Service

Federal Bureau of Investigation Director James Comey (left) and National Security Agency Director Adm. Michael Rogers testify before the House Permanent Select Committee on Intelligence on Capitol Hill, in Washington, on March 20. Comey publicly confirmed an investigation into Russian interference in the presidential election and whether associates of the president were in contact with Moscow at the hearing on Monday. Eric Thayer/The New York Times

Roger J. Stone Jr., a longtime adviser to Trump, has acknowledged communicating with Guccifer 2.0, an online persona believed to be a front for Russian intelligence officials involved in disseminating hacked Democratic–emails. Stone has denied that there was anything improper about the contact, and he was one of many, including political operatives and journalists, to communicate with the hackers. In Ju ly, the month that

Wik iLea ks began releasing the hacked e-mails, Carter Page, a foreign-policy adviser to Trump, visited Moscow for a speaking engagement. Page has declined to say whom he met there, but he has said they were mostly scholars. Michael T. Flynn, a Trump campaign adviser who went on to be his national security adviser, was paid more than $65,000 by companies linked to Russia in 2015, including an American branch of a cyber-security firm

believed to have connections to Russia’s intelligence services, according to congressional investigators. Flynn was forced to resign after misrepresenting his conversations with the Russian ambassador to the United States. Comey said Russia uses a murky network of government officials, oligarchs, business leaders and others close to Putin to gather intelligence. But he repeatedly sidestepped specific questions about Trump’s advisers, and acknowledged that Americans sometimes do not realize they are talking to foreign agents. He said the existence of an investigation does not mean the FBI will ever prove wrongdoing. Nevertheless, Democrats repeated ly high lighted t he Tr ump campaig n’s Russian connections, as they painted Trump as a candidate who adopted pro-Russia views and courted Russian interests. “Is it possible that all of these events and reports are completely unrelated and nothing more than an entirely unhappy coincidence?” said Rep. Adam B. Schiff of California, the

intelligence committee’s top Democrat. “Yes, it is possible. But it is also possible, maybe more than possible, that they are not coincidental, not disconnected and not unrelated.” Comey, testifying for more than five hours, said there was no evidence that Russian hackers had changed any votes in the election. The statement was quickly spun by the White House, which posted that clip of Comey’s testimony on Twitter and wrote, “The NSA [National Security Agency] and FBI tell Congress that Russia did not influence electoral process.” But later in the hearing, when Comey was read the tweet by Rep. Jim Himes, DemocratConnecticut, the FBI director made it clear that that was not what he had said. “We’ve offered no opinion, have no view, have no information on potential impact because it’s not something we looked at,” Comey said, clarif y ing that the intel ligence community is examining what Russia did to interfere with the election, not the effect of that interference. New York Times News Service

Wednesday, March 22, 2017

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Military sticks with Obama tactics on terror

ARA, Chad—From Yemen to Syria to here in Central Africa, the Trump administration is relying on Special Operations forces to intensify its promised fight against the Islamic State (IS) group and other terrorist groups, as senior officials embrace an Obama-era strategy to minimize the US military’s footprint overseas. In Africa, President Donald J. Trump is expected to soon approve a Pentagon proposal to remove constraints on Special Operations air strikes and raids in parts of Somalia to target suspected militants with al-Shabab, an extremist group linked to al-Qaida. Critics say that the change—in one of the few rejections of President Barack Obama’s guidelines for the elite forces—would bypass rules that seek to prevent civilian deaths from drone attacks and commando operations. But in their two months in office, Trump officials have shown few other signs that they want to back away from Obama’s strategy to train, equip and otherwise support indigenous armies and security forces to fight their own wars

instead of having to deploy large US forces to far-flung hot spots. “Africans are at war; we’re not,” said Col. Kelly Smith, 47, a Green Beret commander who fought in Iraq and Afghanistan and was a director of a counterterrorism exercise in Chad this month involving about 2,000 African and Western troops and trainers. “But we have a strategic interest in the success of partners.” Trump came to office without a clearly articulated philosophy for using the military to fight terrorist groups. He had promised to be more aggressive in taking on the IS—even suggesting during the presidential campaign that he had a secret plan—but had also signaled a desire to rein in the notion of the United States as the

A boy rides his bike past destroyed cars and houses in a neighborhood recently liberated by Iraqi security forces, on the western side of Mosul, Iraq, on March 19. The battle for western Mosul, including the narrow alleyways of the old city, looks to be the most devastating yet for Iraqi civilians trapped between advancing troops and increasingly desperate Islamic State militants. AP/Felipe Dana

world’s peacekeeper and claimed at various points to have opposed the ground invasion of Iraq. Now, surrounded by generals who have been at the center of a decadelong shift to rely on Special Operations forces to project power without the risks and costs of large ground wars, he is choosing to maintain the same approach but giving the Pentagon more latitude. That leeway carries its own perils. Last week, the Pentagon went to unusual lengths to defend an air strike in Syria that US officials said killed dozens of al-Qaeda operatives at a meeting place—and not civilians at

a mosque, as activists and local residents maintain. It was yet another example of the mixed success Trump’s forays with special operators have had so far. A n ill-fated raid in Januar y by the Nav y’s SEAL Team 6 against al-Qaeda fighters in Yemen marred the president’s first counterterrorism mission, five days after he became commander-in-chief. In Mosul, however, Special Operations advisers are the US troops closest to the fight in Iraq to oust the Islamic State group from its stronghold there. That is also likely to be the case in the impending battle to reclaim Raqqa in eastern Syria. Trump is largely relying on the policies of his two immediate predecessors, Obama and President George W. Bush, who were also great advocates of Special Operations forces. On Obama’s orders, SEAL Team 6 commandos killed Osama bin Laden in his hideout in Pakistan in 2011. But Trump seems to have taken that appreciation and reliance to another level. He appointed a retired Marine Corps general, Jim Mattis, as defense secretary, and a three-star Army officer, Lt. Gen. H.R. McMaster, as his national security adviser. Both men have extensive experience with Special Operations forces. And the National Security

Council’s new senior director for counterterrorism, Christopher P. Costa, is a retired Special Forces intelligence officer. Sharing an unusual window into the private conversations between Trump and his senior commanders, Army Gen. Tony Thomas, the head of the military’s Special Operations Command, said the president had made clear his urgent priority for counterterrorism missions conducted by the military’s elite forces during a visit to military headquarters in Tampa, Florida, in February. “There were some pretty pointed questions about what winning looks like, and how are you going to get there,” Thomas told a Special Operations conference outside Washington after the presidential visit. And while the Pentagon could eventually send a few thousand more conventional troops to the fights in Iraq, Syria and Afghanistan, Thomas warned that senior commanders feared that “more troops on the ground may mean you own the problem when you’re done with it”. T hat concer n g ives weight to arguments for greater reliance on special operators as the Trump administration for now eschews larger deployments of conventional troops and proposes deep cuts in foreign aid and State Department budgets. The global reach of special operators is widening. During the peak of the conf licts in Iraq and Afghanistan, nearly 13,000 Special Operations forces were deployed on missions across the globe, but a large majority were assig ned to those t wo countries. Now, more than half of the 8,600 elite troops overseas are posted outside the Middle East or South Asia, operating in 97 countries, according to the Special Operations Command. Still, about one-third of the 6,000 US troops currently in Iraq and Syria are special operators, many of whom are advising local troops and militias on the front lines. About a quarter of the 8,400 US troops in Afghanistan are special operators. New York Time News Service

$75M pledged to protect heritage sites in war zones

ARIS—World donors pledged more than $75 million on Monday to a historic United Nations Educational, Scientific and Cultural Organization (Unesco)-backed alliance to protect cultural heritage sites threatened by war and the wave of ideological-driven destruction carried out by Islamic State (IS) group militants. French President Francois Hollande, speaking at a donors’ conference in Paris’s Louvre Museum, passionately called on more countries to contribute to the newly created heritage alliance and help push it past its “ambitious” $100 million goal. “At Bamiyan, Mosul, Palmyra, Timbuktu and elsewhere, fanatics have engaged in trafficking, looting and the destruction of cultural heritage, adding to the persecution of populations,” Hollande said. A number of cultural artifacts and heritage sites have fallen victim to the IS group. In 2015, the ancient Syrian ruins of Palmyra were seized by militants who then destroyed the Unesco heritage site’s famed temples of Bel and Baalshamin. IS militants raided Iraq’s Mosul museum claiming its pre-Islamic statues were against Islam. The 13th-century BC Assyrian city of Nimrud was hit with bombs and bulldozers. In coordination with Unesco, the International Alliance for the Protection of Heritage in Conflict Areas (Aliph) aims to prevent heritage site destruction, fight trafficking of stolen artifacts and pay for restoration. But it also seeks to create a global network of storage and safeguarding sites. “The first emergency is Iraq. We will need to carry out a precise inventory of the damages to monuments, museums and libraries. But there

are other critical situations. Mali, Afghanistan, Yemen and Syria,” he added. Hollande suggested on Monday that a Group of Seven culture ministers meeting in Florence next week could be used to get further donations. Six countries and one philanthropist pledged a total of $75.5 million at the Monday conference, which was held in an ancient Middle Eastern sculpture-clad wing of the Louvre. France pledged the most at $30 million, with support forthcoming from Arab countries— including Saudi Arabia ($20 million), the United Arab Emirates ($15 million), Kuwait ($5 million) and Morocco ($1.5 million.) Luxembourg pledged $3 million, and private donor Thomas Kaplan promised $1 million. Switzerland pledged a further $8 million in operational and administrative costs to help set up the fund’s first headquarters in Geneva. Italy, meanwhile, said it would provide an Aliph task force that includes military personnel and conservation experts. Germany, China and Mexico said they would help by storing the heritage objects threatened by war in national museums, and lobby countries to do the same. The first concrete steps to creating Aliph came about in a meeting between Hollande and Abu Dhabi’s powerful crown prince, Sheikh Mohammed bin Zayed Al Nahyan, in the Emirati capital in December. “This achievement is truly historic,” said Mohamed Al Mubarak, the crown prince’s special representative. “Since the Abu Dhabi declaration was signed in December 2016, the efforts to transform an idea into a concrete action have been extraordinary.... This effort has happened and will not be forgotten.” AP

briefs

Germany’s Merkel disputes Trump’s Nato debt claim

BERLIN—Chancellor Angela Merkel on Monday underlined Germany’s rejection of a claim by US President Donald Trump that her country owes North Atlantic Treaty Organization (Nato) large sums for underspending on defense. She also pointed to Germany’s history of decades of post-World War II military restraint. Trump tweeted on Saturday, a day after meeting Merkel in Washington, that “Germany owes vast sums of money to Nato”. He added that “the United States must be paid more for the powerful, and very expensive, defense it provides to Germany!” Berlin’s defense budget has long been below Nato’s target of 2 percent of a member’s gross domestic product. The figure is currently at 1.23 percent, though Germany has been raising defense spending and Merkel has stressed its commitment to reaching the target by 2024. Merkel said defense spending is “not just about contributions to Nato, but also about European contributions in Africa for example, UN missions.” AP

Hong Kong set to pick new leader anointed by Beijing HONG KONG—The three candidates vying to be Hong Kong’s next leader squared off in a feisty debate in front of hundreds of voters who peppered them with questions. They wrangled over policy proposals for the semiautonomous Chinese city and took jabs at each other on Sunday night’s forum. In one particularly testy exchange, frontrunner Carrie Lam, a former chief secretary, sniped at rival John Tsang for keeping a clean desk during his time as the city’s finance chief, implying he hadn’t kept himself busy enough. “No files, no papers, so I really envied him,” Lam said, adding that her desk was always covered in documents. Tsang shot back that “ besides working hard, we have to work smart,” drawing cheers from the audience. With the vote for Hong Kong’s next chief executive set for March 26, the forum was one of the last big chances for the contenders to drum up support from among the 1,194 members of an election committee who take their cues from Beijing. Voters from among Hong Kong’s 7.3 million residents have no say in choosing the chief executive. AP

Iraqi officials: Baghdad bombing kills at least 23 BAGHDAD—A suicide car bombing in Baghdad killed at least 23 people on Monday and wounded 45 others, according to Iraqi officials. The attack targeted a commercial area in Baghdad’s southwestern Amil neighborhood, police and hospital officials said. They spoke on condition of anonymity because they were not authorized to release information. No one claimed responsibility for the attack, but the Islamic State group has been behind previous Baghdad bombings. AP

Taiwan announces plan to build own submarines KAOHSIUNG, Taiwan—Taiwanese President Tsai Ing-wen says the island will build its own submarines to get around China’s efforts to prevent it from purchasing such craft from overseas. Tsai oversaw the signing of a memorandum of understanding on the construction of subs during a visit to the navy’s main base in Tsoying, also spelled Zuoying, on Tuesday. The craft will be built through a joint venture between the government’s Chungshan Institute of Science and Technology and the formerly state-owned CSBC Corp. The announcement comes weeks after Tsai announced a $2.1 billion investment in the production of air force jet trainers to be designed and manufactured on the island. China has successfully used its diplomatic and economic clout to prevent many overseas military purchases by Taiwan, which Beijing claims as its own territory. AP

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DTI-Citem urges PHL firms to join major Taiwan food fair

OR its 27th edition, Food Taipei continues to be a bigger show as it attracts buyers from over 100 countries, positioning Taiwan as a strong international food market.

The Center for International Trade Expositions and Missions (Citem), the export promotions arm of the Philippine Department of Trade and Industry (DTI), invites local food companies to join the 27th Taipei International Food Show, or Food Taipei from June 21 to 24 at the Taipei Nangang Exhibition Center in Taiwan. “We encourage Philippine food exporters to tap Taiwan’s booming market for organic and healthy food, showcase the country’s premium food products and strengthen their market presence in Taiwan,” newly appointed Citem Executive Director Clayton Tugonon said. Organized by the Taiwan External Trade Development Council, Food Taipei is one of Asia’s lead-

ing food shows that welcomes over 68,000 buyers and visitors across the world. The four-day event is annually participated in by over 1,656 exhibitors from 108 countries and regions. It is held in conjunction with key events, including Taipei Pack, Foodtech and Pharmatech Taipei, Taiwan Horeca and Halal Taiwan. Expected buyers include the giant Canadian food-retail chain T&T Supermarket Inc.; the Asian food chain Uwajimaya Asian Grocery and Gift Markets from the state of Washington, USA; the Japanese company Global Food Creators Co. Ltd.; and Shanghai Aoruitong International Trading Co. Last year 11 Philippine food companies that joined the fair generated

$21.6 million export sales and 400 total trade inquiries. “For this year, Citem is preparing the country’s delegation to leverage in the growing interest for healthy and functional foods brought by the increase of aging population and health-conscious consumers in Taiwan,” Tugonon said. The Philippine participation will highlight business- matching activities and showcase the country’s export products before the Taiwanese buyers, in coordination with the Philippine Trade and Investment Center Taipei and Manila Economic and Cultural Office. “With plenty of fruits and raw natural food to offer, Philippine companies can easily penetrate the Taiwan food market, which is heavily reliant on agricultural imports due to the country’s limited arable land and agrarian production,” he said. Due to the busy lifestyle of Taiwan’s people, Taiwan’s retail sector and consumer food-service industry also emerges as a lucrative market for the Philippines. The Agriculture and Agri-Food Canada predicts Tai-

wan’s food-service sector will grow into a $21.6-billion industry by the end of 2017. In addition, the retail sector in Taiwan has seen an explosive growth over the years. According to Euromonitor, retail sales in Taiwan’s packaged-food market is expected to reach $8.4 billion by 2020 with an 11-percent annual growth. High-growth food categories forecasted include ready-to-eat meals; processed meat and seafood; soup; sweet and savor y snacks; processed fruit and vegetables; baked goods; and sauces, dressings and condiments. Citem is, thus, inviting Philippine manufacturers, exporters, consolidators, traders and suppliers of products that offer premium tropical fruits, such as banana, coconut, mango, pineapple, all-natural sauces, condiments, cocoa, coffee, muscovado sugar, herbal teas and confectionery. Also welcome to participate are exporters of readyto-eat seafood products, as well as other health and wellness options. Applications will be handled on a first-come, first-served basis.

FILIPINO WOMEN IN GLOBAL BUSINESS

Maureen Pasciolco of Pasciolco Agri Ventures

Editor: Efleda P. Campos • Wednesday, March 22, 2017 A9

Public-private collaboration to sustain PHL-US economic relations

By Raymond Batac Philippine Trade and Investment Center, Washington, D.C.

MARKET DEVELOPMENT UPDATE Conclusion

N Washington, D.C., Undersecretary Nora Terrado met with officials from the Departments of Commerce and State, the United States Trade Representative and the Millennium Challenge Corp. to discuss joint efforts to further enhance our bilateral economic relations with the US. The undersecretary also served as the keynote speaker at a roundtable organized by the US-Asean Business Council (US-ABC), where she urged members to participate in the business activities organized by the Department of Trade and Industry (DTI) under our Asean chairmanship in 2017, focusing on themes such as regulatory coherence; micro, small and medium enterprises (MSMEs); women and youth entrepreneurship; and innovation. Terrado and the HIM delegates also had the opportunity to learn more on the new developments and technology in health care during their meetings and visits at the Texas Medical City, (TMC) Innovation Institute, Johnsons & Johnson Innovation, Sabin Vaccine Institute, Seton Medical Center-SFO and the UCSF-Benioff Hospital.

The success of the Healthcare and Business Process Offshoring Roadshow to the US demonstrated that US and Philippine economic relations, despite concerns during the first few months of the new administration, continue to strengthen and grow. US companies still look to the Philippines as the No. 1 choice for their information-technology/BPM requirements, and remain assured of the continuing support of both the Philippine government and the local industry in Manila. The DTI, as your partner in government, will strengthen dialogues with our US government and private-industry partners to further enhance both administrations’ efforts to expand bilateral trade and investments. With our collaboration, the delegation was able to surface business leads that, we are confident, would translate to potential future investments in the Philippines. Joint public-private promotion projects such as this send a unified message of continuity, predictability and viability to investors overseas, and guarantee our achieving full economic recovery in the medium term.

DTI Slingshot, QBO PHL celebrate Natl Women’s Month with seminar

T “Taking care of my children and making my company bigger was hard, but I managed to make it work,” she said. Determined to succeed, Pasciolco asked her husband to return, while managing to send their four children to college. She also continued to develop and innovate new products out of coconuts. Pasciolco actively participated indifferentgovernmenttrainings a nd joi ned i nter n at ion a l trade fairs organized by the departments of Agriculture and Trade and Industry. “The government made a very big contribution to the success of my business; they helped me get where I am right now,” she said. With her new products, her buyers and market grew even bigger. Pasciolco takes pride that, as a woman, she was able to provide jobs to other Filipinos. In fact, most of her factory workers are comprised of single, young mothers. “I was able to help around 100 families in the coconut farm where we produce our products,” she said. At present they have four new small factories. She considers her organic-certified products known globally as her greatest achievement. Pasciolco said perseverance and hard work are a key to a successful business. “Being a woman should not be a hindrance to success,” she said. Abigael Mei M. Yaokana

CHINESE VICE PREMIER, DTI CHIEF LAUNCH SME CROSS-BORDER BUSINESs FORUM In the effort to solidify and operationalize the Strategic Cooperation Agreement signed during the visit of President Duterte to Beijing in October 2016, the Department of Trade and Industry, in partnership with the Bank of China, the Philippine Chamber of Commerce and Industry and the International Chamber of Commerce of the Philippines, organized the Philippines-China SME Cross-border Business Matching on March 18 at the Manila Hotel. Trade Secretary Ramon M. Lopez (right) and Chinese Vice Premier Wang Yang, who was in the country for a three-day official visit, graced the event to underscore both governments’ strong support for SME development initiatives and for the renewed commercial engagements between the two countries. The business-matching sessions brought together more than 600 small and medium enterprises from the Philippines and China, representing industries such as agriculture, fisheries, food processing, furniture, tourism, real estate, construction, construction equipment and building materials, iron and steel, e-commerce and information technology, textiles and garments.

upcoming events

“In school, we were taught how to be good in everything, but nobody told us to be good with money,” she said, adding that financial literacy among women remains low. This is how she decided to create an online platform that tackles financial and career issues for women. She believes women must be empowered to make smarter financial practices. “Women are actually better in financial management because they’re more patient, careful, and calculating,” she said. Obrero, a consultant with the IP Field Operations Unit (IPFOU) of the Intellectual Property Office of the Philippines (IPOPHL), talked about the importance of brand consciousness among the participants, mostly coming from micro, small and medium enterprises (MSMEs). “Most people can’t distinguish the difference among patent, copyright and trademark,” Obrero said, adding this could be dangerous for business, particularly for MSMEs. She said inventions, whether small or big, must be protected. “Intellectual properties are as important as real estate.” Obrero encouraged the participants to consult with IPOPHL to learn more about how they would be able to protect their products, inventions and other business tools. Abigael Mei M. Yaokana

Compiled by Louise Kaye G. Mendoza DTI-EMB Knowledge Processing Division

MARCH 30

Event: Philippine Export Competitiveness Program:

Overview of EMB Services and Export Procedures Sugar Regulatory Administration (SRA) Services for Exporters Food and Drug Administration Services for Exporters ITC Survey Report on Non-Tariff Measures in the Philippines Venue: Penthouse, 5F, DTI International Building, 375 Sen. Gil Puyat Avenue, Makati City

APRIL 4

AUREEN Pasciolco h a s b e e n i n t he coconut-product processing business for over 23 years now. She started her nata de coco business during its boom in 1993, and officially founded Pasciolco Agri Ventures in 1996. After the popularity of nata de coco declined, Pasciolco started processing natural coconut vinegar, then went on to making coconut jam, which became its most salable product. “We started exporting in 2000. Our first market was Japan, then later the US, Europe and other Asian countries, like the Republic of Korea and Singapore,” she said. Their company continuously expanded its product offerings, which eventually included processed tropical fruits and vegetables and virgin coconut oil. Being a working mother also proved a challenge for Pasciolco, especially during the 2008 global financial crisis. “We had a business loan from the bank at that time, and it was difficult for us to pay the interest.” To help out, her husband decided to work in the United States for seven years, and she was left alone to manage the company and take care of their four children. Those days proved to be very difficult for her, but she made sure those challenges d id not h i nde r he r f rom accomplishing her tasks as a mother and a businesswoman.

HE Department of Trade a n d I n d u s t r y ’s ( D T I ) Slingshot, in collaboration with QBO Philippines, organized the Slingshot Women Seminar on March 15 at the DTI International Building on Gil J. Puyat Avenue in Makati City. In partnership with the Export Marketing Bureau (EMB), the seminar aimed to celebrate Women’s Month and help women entrepreneurship grow in the Asean. The seminar was conducted at the most opportune time, as the Philippines assumed the hosting and chairmanship of major Asean meetings, as well as the Asean Slingshot Summit this year. Slingshot Philippines (#SlingshotPH) is a government-initiated platform for public dialogue and partnership. Spearheaded by the DTI, it aims to build and nurture the innovation ecosystem “as an enabling environment with policies and programs for the start-up and innovation sectors”. Attended mostly by leading women e x por ters and entrepreneurs, the seminar featured women speakers Anna Haotanto and Maria Elena Obrero, with expertise in finance and intellectual property, respectively. Haotanto, CEO of The New Savvy, highlighted the importance of financial management.

Event: QBO KIQOFF Time: 6 p.m.-9 p.m. Venue: QBO Innovation Hub, G/F, DTI International Building, 375 Sen. Gil Puyat Avenue, Makati City

ANNA Haotanto, CEO of The New Savvy, speaks to participants of the “Slingshot Women” seminar held on March 15 at the Department of Trade and Industry International Building along Gil J. Puyat Avenue in Makati City. She highlighted the importance of financial management.

A10 Wednesday, March 22, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

PHL needs a trade representative office

N the Philippine Development Plan (PDP) of the Duterte administration, the government declared that it is keen on creating the Philippine Trade Representative Office (PTRO). This is an agency that is similar to America’s United States Trade Representative (USTR). Created in 1962, the USTR leads negotiations with foreign governments to create trade agreements, resolve disputes and participate in global trade-policy organizations. The Duterte administration is keen on establishing the same agency as the Philippines, and its regional and other trade partners are faced with “inward-looking policies and protectionism”. Preferential or multilateral trade agreements, the PDP noted, are becoming increasingly difficult to forge, as some leaders have come to regard free trade as doing more harm than good. To be fair, the idea of putting up a USTR-like agency for the Philippines has been pitched before, during the term of President Gloria MacapagalArroyo. Among its proponents were business groups, like the Federation of Philippine Industries (FPI), and former Sen. Manuel A. Roxas II. In pushing for the creation of the PTRO, FPI President Jesus L. Arranza said trade negotiations have been conducted on an “ad hoc” basis. This, he said, made it difficult for the Philippines to come up with a more coherent trade and development policies. Arranza also complained that negotiations before “lacked transparency and accountability”, making it more difficult for businesses to navigate existing bilateral, regional and multilateral trading agreements. Even the government’s own think tank, the Philippine Institute for Development Studies (PIDS), has backed the establishment of the PTRO. In a discussion paper released in December 2005, PIDS Senior Research Fellow Gloria O. Pasadilla and consultant Christine Marie M. Liao identified the difficulties in the decision-making structure for trade-policy formulation in the Philippines. These include the turf mentality among government agencies; lack of appreciation of and capacity for trade research that should inform negotiating positions; unclear delineation of authority; and the lack of suitable mechanisms for consultation and feedback on negotiation progress. The PIDS paper noted these could be resolved by a single agency that would be in charge of all international trade negotiations. At the very least, the authors said allowing a single agency to oversee trade negotiations would prevent turf battles from “stalling the realization of trade mandates for negotiators”. There have been efforts in Congress before to enact a measure that would allow the creation of the PTRO. But it has difficulties hurdling the House of Representatives. In the meantime, the government has to contend with a number of trade issues, such as negotiations for free-trade deal between the Asean and the European Union, and the impending loss of the quantitative restriction on rice on June 30. Also, despite the existing bilateral and regional trade agreements entered into by the Philippines, the PDP noted that it could not maximize the opportunities presented by these deals, as utilization rate was only at 22 percent. Perhaps, it’s time for Philippine lawmakers to listen to the clamor of the PIDS and the businessmen to create the PTRO to help the government boost exports and increase the income of Filipinos, in line with the government’s campaign to eliminate poverty through inclusive economic growth. Since 2005

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The evil done by do-gooders Teddy Locsin Jr.

Free fire Continued from A1

he do-gooders forget that Suu Kyi is only the de facto head of Burma by leave of the Burmese army. In fact, she is still alive out of the Burmese army’s veneration of her father, who was the founder of Burma and the Burmese army. If she becomes at all aggressive in addressing the Rohingya massacres, she will be toppled. And this time it will be a popular move.

It turns out that Buddhism, like all other religions, is given to violent extremes. When the United Nations’s human rights envoy to Myanmar, Yanghee Lee, began a 12-day visit to probe the violence, popular demonstrations broke out against her. The result of do-gooders’ hysterical campaign against Suu Kyi for her refusal to connive in

the destruction of Burmese democracy—just to make do-gooders feel good, will be the end of a still-new Burmese democracy. And the military massacre of prodemocracy Burmese Buddhists. Under the Junta, the Rohingyas were unmolested. The Army is exploiting what was a latent religious and racial bias to push Burmese democracy

The do-gooders forget that Suu Kyi is only the de facto head of Burma by leave of the Burmese army. In fact, she is still alive out of the Burmese army’s veneration of her father, who was the founder of Burma and the Burmese army. If she becomes at all aggressive in addressing the Rohingya massacres, she will be toppled. And this time it will be a popular move.

to the limit where freedom gets in the way of popular intolerance. Although democracy is the worst of all forms of government, except all the others, it is hardly ever intelligent. To be sure, authoritarian regimes are, for the most part, incredibly stupid. The single exception is Singapore, which is an authoritarian democracy of nearly all Singaporeans, because they prefer intelligence and order to unfettered freedom of gibberish.

What a democracy needs in an editor

By Cass R. Sunstein | Bloomberg View

obert Silvers, who died on Monday morning, was the editor of the New York Review of Books since 1963, meaning that for more than 50 years he presided over the leading literary magazine in the English language. I was privileged to work with him on numerous occasions, going back to 1992. He was not only a giant, but also the incarnation of what a democracy needs: civility, considerateness, fairness, authenticity, humility and unfailing attention to detail, which, in his hands, turned out to be a form of love. With Bob, every editorial experience was unique, but it always followed the same general pattern. He would have an idea for an essay— on, say, the limits of paternalism, the role of the Supreme Court, free markets and the nature of morality. You would send him a draft, and, sooner or later, you would receive his comments. They would be unfailingly courteous, but sometimes they would be devastating. “There’s just one paragraph we didn’t quite understand,” he would write, adding, “I am sure it’s only because of our ignorance.” As he laid out his supposed inability to understand, it would emerge that your argument was hopelessly unclear, unconvincing or foolish. At times you would think that

the essay was doomed. But he would respond, “Well, maybe you could put it another way?” Some of his writers were famous for their polemical skills, but, in my own experience, he valued fairness and honesty above all else. I had only one difficult editorial experience with him, and, in retrospect, the difficulty stemmed from his (undoubtedly accurate) sense that I was reading an author unfairly—that I was putting his argument in the weakest possible light. Bob did not appreciate unearned victories. In his view, it was far more important to be clear on the underlying arguments than to establish that one person was right and another wrong. After an essay was finally on track, he would send an edited copy back—the famous “A Galley”. Your argument would be better, and your prose would be cleaner. But on every page, there would be his cramped handwriting, asking for page references for every quotation, questioning word choices, inserting paragraph breaks, pointing to recent work from the Congressional Research

With Bob, every editorial experience was unique, but it always followed the same general pattern. He would have an idea for an essay—on, say, the limits of paternalism, the role of the Supreme Court, free markets, the nature of morality. You would send him a draft, and, sooner or later, you would receive his comments. They would be unfailingly courteous, but sometimes they would be devastating. Service, invoking arguments from James Madison, John Marshall, John Stuart Mill or Immanuel Kant. After you responded to A Galley, you would get “B Galley”, with still more questions and corrections, more references, meticulous editing and, occasionally, a serious concern. A direct quotation: “After many readings, I appreciated the changes you made, but in our ignorance my colleagues and I still had questions.” When an essay was far along and close to ready to run, he would occasionally call to say, “We just have a few final questions.” My heart would sink. Was a conversation actually necessary? Had he found a serious defect? Wouldn’t e-mail be better? Were we going to go over whole sentences, word by word? Yes, yes, no and yes. Maybe there was a new book, hopelessly obscure

What then should be done? Former Justice Secretary Leila M. de Lima showed the way. She offered without prompting for the Philippines to host Rohingyas fleeing genocide because of race and religion. Hers was class act now forgotten by us, but cherished by the UN High Commission on Refugees. No Rohingyas took up her offer. We are not in the refugee route, it was explained to me. The Philippines is out of the refugee route. Vietnamese fleeing the American defeat in Vietnam came here on the assurance of the United States that they could come to America. Without that assurance, it is harder to sneak into a better country from here where you stick out as a refugee than easily blend into the populations of Malaysia, Indonesia and, above all, Bangladesh from where the Rohingyas hail, being Punjabis like our “5-6” small credit lenders. But de Lima’s offer embarrassed those countries to open their doors, as well, and the Rohingyas flocked in.

but brilliant and relevant, and I had to take account of it. Maybe someone had just published historical research that cast doubt on my claims. (How did he always know about that?) Maybe a phrase struck him as cute, faddish or vulgar. (He didn’t like that.) Maybe I had repeated a word in two consecutive sentences. Maybe a comma should be a semicolon. Bob was always kind, and it seemed as if he had all the time in the world. But he was also fierce. He never let anything slide. He spoke, on occasion, of his responsibility to his readers, and he felt that keenly. But I think his sense of responsibility went even deeper than that; it involved the integrity of the enterprise itself. While he raised questions and doubts, he never inserted his own voice. But there was one exception. In an essay on happiness, in which I explored efforts to measure people’s subjective well-being, he thought that I was missing three crucial features of human life. Those things were the importance of culture, the idea of devotion, and the experience of creation (“its pleasures and disappointments and intensities”—his words, not mine). Bob made our own culture immeasurably better, and he lived a life of devotion. He created something of enduring value—with, I think, the most pleasurable intensity. We will not see his like again.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Will the obnoxious Trump turn out better than Obama? Michael Makabenta Alunan

on the contrary

any hate US President Donald J. Trump for his foulmouth and Islamophobic and misogynist remarks, but his policy statements and overtures, although not carried by mainstream media, may turn him into a better president than Obama.

n Much ado about ‘NYET’ thing. Media is still bombarding Trump for his alleged shady links with Russia, almost reviving the McCarthyist postwar Red scare of the 1950s, which appear unfounded or a case of having “Much Ado About Nothing” to quote Shakespeare. On trumped-up charges Russia interfered in the US elections favoring Trump, Russians are wont to say “NYET”, which means “No”, or not true. True or not, Trump’s National Security Adviser, retired Lt. Gen Michael Flynn, was forced to resign for lying and denying meeting with Russian spy Sergey Kislyak. But what’s wrong with having ties with Russia, as even Obama and his men met 22 times with Kislyak from 2009 and 2016 at the White House. While Trump is building peaceful ties with Russia and China, Obama sent 4,000 troops to Poland along the Russian border in an act of provocation about two weeks before Trump took his oath as president. This smacks of disrespect, as Obama should have stepped back for a smoother transition. n Rebuilding US means reversing Obama? Trump may not realize the consequences, but his actions are unnerving the neoliberal Establishment, Wall Street, the financial oligarchy and Obama. Obama built the Trans-Pacific Partnership, without China, but Trump scrapped it and prefers joining China’s New Silk Road, now called Belt and Road Initiative. He is meeting Xi Jinping on April 7 in Florida. Obama cut down the space-research budget, including the space shuttle, from a peak of 4.4 percent of federal budget, or $200 billion in 2015, down to 1 percent, or $7 billion, said a recent 2016 book by Brett King, entitled Augmented: Life in the Smart Lane, a gift from my cousin book dealer Wency Makabenta. It is said that for every $1 invested in space research, about $12 to $14 are generated in returns in downstream technologies, like solar tech, microwave ovens, etc. Trump wants to resume space research on the moon and beyond, and catch up with China’s plan to land on the far-side of the moon, not seen ever by humans before, and mine it of Helium 3, a light, safer, nonradioactive isotope used in nuclear fusion, MRI scanners and sensors. n Obama’s war stops as Trump makes friends. It is ironic that while Trump is more combative against the cooler Obama, he wants peace and do business with China and Russia, as opposed to Obama, who fueled wars in the Middle East, Ukraine and heated up tension in the South China Sea following his pivot to Asia, resulting locally in Enhanced Defense Cooperation Agreement, but reinforcing China’s resolve to encroach into our waters. This has triggered the feared “Thucydides Trap”, referring to 27year Peloponnesian war that led to the fall of the Greek civilization only because of pride and hubris. Trump is aware that the wars involving the US have cost over $6 trillion the past 15 years, hundreds of thousands of lives and millions of refugees. He knows the world’s problems can only be solved if the US, Russia and China cooperate. He

Trump may not realize the consequences, but his actions are unnerving the neoliberal Establishment, Wall Street and the financial oligarchy. Obama built the Trans-Pacific Partnership without China, but Trump scrapped it and prefers joining China’s New Silk Road, now called Belt and Road Initiative. He is meeting Xi Jinping on April 7 in Florida. considers the North Atlantic Treaty Organization an obsolete idea from the Cold War that may have to be scrapped. He will likely join the Belt and Road Forum for International Cooperation in Beijing on May 14 and 15 to be attended by 65 countries and over 20 heads of states. It consolidates what Xi calls a “win-win” development agenda, a digression from the neoliberal free market, resulting in winners and losers in a dog-eat-dog zero sum game in the global market. Indeed, Obama has been linked to wars and regime changes, and backed by George Soros, allegedly partly behind the “color revolutions”; Orange Revolution in Ukraine in 2004; Rose Revolution in Georgia; the failed White Revolution in Russia; the Yellow Revolution with yellow umbrellas in Hong Kong; the Arab Spring in the Middle East and North Africa; and now the destabilization plot against Trump. In contrast, Trump promised $1 trillion in infrastructure alone over 10 years. Actually, $5 trillion to $8 trilllion is needed to include all, but needs the support of China and others. Jack Ma of Alibaba offered a platform for another $1 trillion for Chinese investors in the US. Even Japan offered to help, but invited Trump to participate in China’s initiative, which evolved from the BRICS coalition of Brazil, Russia, India, China and South Africa. n Trump’s carpe diem end game. Why certain groups want Trump down is his support to revive the 1933 Glass-Steagall Act of Franklin Roosevelt, separating commercial and investment banking, but got the ire of Wall Street and the financial oligarchs of this world who consider it a “Casus Belli”, or justification for war. Wall Street opposes regulation and wants to keep the free market in the financial sector, which, however, led to the ballooning of derivatives and fictitious debts to over $708 trillion in 2016, way above the US GDP of $15 trillion a year, and bigger than global GDP of $70 trillion a year. This is fueling another financial bubble, while the real economy collapses. Ironically, while big banks were bailed out, many small banks lending to small businesses that create real physical wealth were forced into bankruptcy. From 2007 to 2012, scores of small American banks closed shop. Either move, Trump can’t save the banks. So for his endgame, he better seize his defining moment by saving the economy and be on the side of history with the people, which is ironically making peace with former enemies Russia and China.

E-mail: mikealunan@yahoo.com

Wednesday, March 22, 2017 A11

Ready or not, here come Trump and North Korea Albert R. Hunt

BLOOMBERG

resident Donald J. Trump is a reckless bully with authoritarian leanings and a craving for attention. Kim Jong-un is a reckless bully with dictatorial powers and a craving for attention. Oh, yes, and both have fingers on nuclear triggers. That’s why so many national security experts of both political parties struggle to think of a scarier pair. It’s not just that Kim’s outlaw North Korean regime has accelerated its nuclear-weapons capacity and delivery capability, or that Kim sees nuclear weapons as his insurance policy against adversaries. It’s also that Trump has displayed little appreciation of history or knowledge, and a compulsion to show that he’s tough. Trump has called Kim a “madman”, one of the few things he has gotten right about North Korea. Dealing with him, though, requires measured patience and smart diplomacy—not Trump’s forte—and a reliance on alliances and relationships that he has dismissed. On his current Asia trip, Secretary of State Rex Tillerson said diplomacy with North Korea hasn’t

worked, and that there’d be a “new approach”. That sounds like just talk. More important, Defense Secretary James Mattis impressed Asia experts during his visit last month to Japan and South Korea, in essence assuring the allies that US commitments were unchanged despite Trump’s “America First” oratory. There are few Asia specialists in this slow-to-form administration. But if Trump listens to Mattis and H.R. McMaster, his national security adviser, there will be a sense of relief in Tokyo, Seoul and Washington about the approach to North Korea. Let’s hope the president doesn’t revert, instead, to his penchant for relying on gut instincts or his nationalist Svengali, Steve Bannon. Trump did advocate a greater

All the president’s lies

By David Leonhardt | New York Times News Service

he ninth week of Donald J. Trump’s presidency began with the FBI director calling him a liar. The director, the very complicated James Comey, didn’t use the L-word in his congressional testimony on Monday. Comey serves at the pleasure of the president, after all. But his meaning was clear as could be. Trump has repeatedly accused Barack Obama of wiretapping his phones, and Comey explained there is “no information that supports” the claim. I’ve previously argued that not every untruth deserves to be branded with the L-word, because it implies intent and somebody can state an untruth without doing so knowingly. George W. Bush didn’t lie when he said Iraq had weapons of mass destruction, and Obama didn’t lie when he said people who liked their current health insurance could keep it. They made careless statements that proved false (and they deserved much of the criticism they got). But the current president of the United States lies. He lies in ways that no American politician ever has before. He has lied about—among many other things— Obama’s birthplace, John F. Kennedy’s assassination, September 11, the Iraq War, ISIS, Nato, military veterans, Mexican immigrants, Muslim immigrants, anti-Semitic attacks, the unemployment rate, the murder rate, the Electoral College, voter fraud and his groping of women. He tells so many untruths that

it’s time to leave behind the textual parsing over which are unwitting and which are deliberate—as well as the condescending notion that most of Trump’s supporters enjoy his lies. Trump sets out to deceive people. As he has put it, “I play to people’s fantasies.” Caveat emptor: When Donald Trump says something happened, it should not change anyone’s estimation of whether the event actually happened. Maybe it did, maybe it didn’t. His claim doesn’t change the odds. Which brings us to Russia. Russia’s interference in the 2016 presidential campaign was an attack on the US. It’s the kind of nationalsecurity matter that a president and members of Congress swear to treat with utmost seriousness when they take the oath of office. Yet, now it has become the subject of an escalating series of lies by the president and the people who work for him. As Comey was acknowledging on

nuclear presence in Asia during the 2016 presidential campaign. He declared that China has “total control” over North Korea, and has hinted that he’s going to tell Chinese President Xi Jinping to bring the North Korean dictator to his knees, or else. But China doesn’t have anything close to total control over Kim Jungun. It has contempt for his recklessness and alarm at his nuclear development. Above all, Beijing fears collapse of the regime, which would bring millions of refugees pouring across the border and possibly created a unified Korea that isn’t a strategic buffer for China. The Chinese want to tamp down Kim, but their interests aren’t the same as America’s. “China’s influence is limited, but it has practical leverage if it chooses to use it,” said Tony Blinken, deputy secretary of state in the administration of President Barack Obama. For example, the Chinese did suspend coal imports from North Korea— that accounts for about a third of its exports—in line with a United Nations resolution. But the “or else”— Trump has suggested he could punish China on trade—won’t scare Beijing. The dilemma on what to do is compounded by political instability in South Korea, whose hardline President Park Geun-hye was just thrown out of office in a corruption inquiry. A new leader will be elected in May, possibly someone

more inclined to compromise over relations with the North. A fear expressed by some experts is that Trump, who fancies himself a masterful negotiator, would agree to offer less resistance to China’s ambitions in the South China Sea in exchange for a promise by Xi to bring more pressure on North Korea. The other fear is that the megalomaniac North Korean dictator could goad Trump into a mano-a-mano exchange that starts on Twitter and ends who-knows-where. Economic sanctions are hurting North Korea. Cyber attacks may temporarily impede its nuclear-weapons program. And to China’s consternation, the US is deploying an antimissile system in South Korea. But over a quarter century, with Republican and Democratic administrations alike, neither carrots nor sticks have effectively constrained the outlaw regime. With no good solution, the least bad approach would be to try to negotiate some interim agreement in cooperation with China, Japan and South Korea that freezes North Korea’s nuclear-weapons programs, with guaranteed verification, in return for lifting some economic sanctions while seeking a longerterm deal. There is a parallel: the nuclear treaty Obama negotiated with Iran, which Trump called the “worst deal” in history.

Monday that the FBI was investigating possible collusion between Russia and the Trump campaign, Trump was lying about it. From both his personal Twitter account and the White House account, he told untruths. A few hours later, his press secretary, Sean Spicer, went before the cameras and lied about the closeness between Trump and various aides who have documented Russian ties. Do you remember Paul Manafort, the chairman of Trump’s campaign, who ran the crucial delegate-counting operation? Spicer said Manafort had a “very limited role” in said campaign. The big question now is not what Trump and the White House are saying about the Russia story. They will evidently say anything. The questions are what really happened and who can uncover the truth. The House of Representatives, unfortunately, will not be doing so. I was most saddened during Comey’s testimony not by the White House’s response, which I’ve come to expect, but by the Republican House members questioning him. They are members of a branch of government that the Constitution holds as equal to the presidency, but they acted like Trump staff members, decrying leaks about Russia’s attack rather than the attack itself. The Watergate equivalent is claiming that Deep Throat was worse than Haldeman, Ehrlichman and Nixon.

It fell to Adam Schiff, a Democratic representative from Southern California, to lay out the suspicious ties between Trump and Russia (while also hinting he couldn’t describe some classified details). Schiff did so in a calm, nine-minute monologue that’s worth watching. He walked through pro-Putin payments to Michael Flynn and through another Trump’s aide’s advance notice of John Podesta’s hacked e-mail and through the mysterious struggle over the Republican Party platform on Ukraine. “Is it possible that all of these events and reports are completely unrelated, and nothing more than an entirely unhappy coincidence? Yes, it is possible,” Schiff said. “But it is also possible, maybe more than possible, that they are not coincidental, not disconnected and not unrelated, and that the Russians used the same techniques to corrupt US persons that they have employed in Europe and elsewhere. We simply don’t know, not yet, and we owe it to the country to find out.” Comey, as much as liberals may loathe him for his 2016 bungling, seems to be one of the few public officials with the ability and willingness to pursue the truth. I dearly hope that Republican members of the Senate are patriotic enough to do so, as well. Our president is a liar, and we need to find out how serious his latest lies are.

The Comey hearing was a bipartisan failure of oversight By Jonathan Bernstein Bloomberg View

he House Intelligence Committee’s hearing with FBI Director James Comey and NSA Director Michael Rogers did an excellent job of demonstrating why the House isn’t even remotely ready to investigate Russian involvement in the 2016 US presidential election, let alone any possible wrongdoing by Donald J. Trump and his campaign. If there was any question about the seriousness of the scandal, in general, Comey cleared it up early in his testimony by confirming an ongoing (since July!) FBI investigation of both Russian actions and Trump campaign actions. Of course, an investigation hardly means proof, but it certainly means that there must be significant evidence. The hearing also produced yet another round of denials about Trump’s wild claims about having been wiretapped by former President Barack Obama, so there certainly was news. But, according to Intelligence Committee Chairman Devin Nunes and the

other Republicans on the committee, the idea that a hostile foreign nation interfered with a US election isn’t particularly important. Or at least, based on their questions, not nearly as important as the leaks within the government. Nunes himself also elicited statements that Russia did not hack the actual voting and counting of votes in the election, and that the FBI would follow up on any evidence it learns about any possible Hillary Clinton collaboration with the Russians. Other than that, Nunes acted as if it wasn’t his job to get at the truth. Indeed, he ended the hearing by complaining that Comey put administration figures under a cloud by admitting the FBI investigation. But Nunes himself could have brought in those people and asked them questions under oath. He’s apparently not going to do that, however. The Democrats did better, but while at least as many of them did ask relevant questions, their interest in the story seemed almost fully limited to the portions which make Trump and his administration look bad. Or, to put it another way: some Democrats used the hearing to

put important things on the record, while others mainly grandstanded. Either way, they were focused on Michael Flynn, Paul Manafort, Roger Stone and other Trump figures. The Democrats’ line of questioning was certainly important. However, it was largely for the cameras, not for the witnesses—who either didn’t know the answers, or wouldn’t say because it was part of the ongoing investigation. It’s not necessarily bad to use the hearing as an excuse to publicize their outline of what might have happened, and to draw attention to questions that couldn’t be answered today. But it would be nice to actually establish a record based on witness testimony. A few committee members, most notably Republicans Ileana Ros-Lehtinen, Elise Stefanik and Will Hurd, asked questions about what Russia actually did and what if anything can be done about it or to prevent it in the future, which is what the witnesses were qualified and able to discuss. But most Republicans did not, and almost every Democrat had other things on their mind. In other words, the Republicans did an

awful job. Some Democrats did well and others didn’t—ranking member Adam Schiff was fine—but overall they, too, were mainly interested in the portions of the story they could use as partisan points. What has all of this confirmed? First, that this is a very important story—both the Russia part of it and the Trump part of it. Second, that Congress has an important role beyond merely asking executive branch officials what they are doing; it should be mounting its own investigation, and should also be explaining to the public what happened and why it matters. And, third, that the House is ill-equipped to carry on a serious investigation, and that the intelligence committees (House or Senate) are not the correct forum. I continue to believe a Senate select committee is the best option (along with an independent prosecutor to lead the Justice Department investigation), although a bicameral select committee or an independent commission are both reasonable alternatives. I do agree with Nunes about one thing: The investigation needs to be started quickly.

2nd Front Page BusinessMirror

A12 Wednesday, March 22, 2017

Solons told to focus on priority bills, not impeachment cases A

By Jovee Marie N. dela Cruz

@joveemarie

leader of the House of Representatives has called on his fellow lawmakers to focus on the passage of priority measures, instead of wasting time on a “scrap paper” presented as impeachment complaint versus Vice President Maria Leonor G. Robredo. “Congress will only end up wasting time better spent on much-needed legislation, including those on tax reform, Traffic Crisis Act, as well as those that seek to make economic gains more inclusive,” Deputy Speaker and Liberal Party Rep. Romero S. Quimbo of Marikina City said. He added: “The House of Representatives should not spend a single second on this baseless complaint. It’s a mere scrap of paper that is supported not by any evidence, but by mere erroneous conclusions of law.” The lawmaker said Congress should not allow itself to be used by “recidivist impeachers”, who trivialize “this deeply sacred accountability measure enshrined in our Constitution.” “We must not allow Congress and its members to be dragged into their petty political charades. It’s a travesty to our political institutions if we are to allow these people to cheapen this process,” he said.

QUIMBO: The House of Representatives should not spend a single second on this baseless complaint. It’s a mere scrap of paper that is supported not by any evidence, but by mere erroneous conclusions of law.”

Speaker Pantaleon D. Alvarez said he is still studying the impeachment complaint against Robredo. Nacionalista Party Rep. Rodolfo T. Albano III of Isabela said: “I don’t think the President would like her ousted. [Why] Oliver Lozano he is a perpetual impeacher.” On Monday Lozano, a lawyer, and Cesar Chavez asked Alvarez to endorse their draft impeachment complaint against Robredo. The impeachment complaint was submitted to Alvarez days after Party-list Rep. Gary C. Alejano of Magdalo filed another impeachment complaint against President

Duterte. “We respectfully request that you endorse the attached complaint for impeachment against Leni Robredo. She is the termite of the government. Her unfaithfulness has extended to the betrayal of public trust and culpable violation of the Constitution,” they said. “She betrayed the people by shaming the nation with her dishonest message to the United Nations. [She] is duty-bound to act within the framework of the Constitution, but her acts of dishonesty and moral bankruptcy breached the bounds of the fundamental law.”

Roque’s appeal

Meanwhile, Party-list Rep. Harry L. Roque Jr. of Kabayan appealed to all political forces for Lenten meditation and reflection, especially in the wake of impeachment charges against the President and the Vice President. “The impeachment complaint against President Duterte is bound to fail, as I believe more case building is needed for it to prosper, particularly on extralegal killings,” he said. “On the other hand, the administration has the numbers to impeach Vice President Robredo. But, having said this, I would also like to point out that the words of the Vice President are insufficient by themselves to prove betrayal of public trust,” he said. Roque also appealed to the Speaker that, while the majority has the numbers to impeach Robredo in the House, “the House of Representatives should also ensure convic-

tion in the Senate to safeguard integrity and reputation of the House, and this, too, entails case building.”

Rationalization of perks

One of the bills that should be passed immediately, according to Deputy Speaker and AAMBIS-Owa Rep. Sharon S. Garin, is House Bill 3359, or the Rationalization of Fiscal Incentives Act, which is now pending before the House Committee on Ways and Means. “It is important to reevaluate these incentives given to two business, and identify those that will remain and those that need to be done away with. Not only will it avoid redundancy, it will also be able to provide more support to exporting industries, micro, small and medium enterprises, and research and development,” Garin said. Under Executive Order 226, also known as the Omnibus Investment Code of 1987, investors are given corporate income tax holidays for up to eight years. If enacted into law, Garin said, the measure will balance the tension between creating attractive fiscal incentives for domestic and foreign investors and achieving social and economic goals. “Businesses are the main source of tax revenues, which contribute to public funding for better infrastructure, health, education and other services,” Garin said. “Investment incentives are the primary factor that attracts businesses to invest and expand in the country. Foreign direct investment is one of the major external sources of financing the growing economy,” she said.

SMC to cut water use by 50% across its businesses

an Miguel Corp. (SMC) announced that the company would reduce operational water use by 50 percent across its businesses, employing measures that include water recycling, conservation and rainwater harvesting, among others, to meet this target by 2025. Coinciding with the World Wa-

ter Day today (Wednesday), the Philippines’s largest conglomerate is taking on its own water-sustainability challenge to reduce water usage and educate employees, business partners and communities about water stewardship. In an effort to further mesh sustainability into its business goals and processes, San Miguel

is rol l i ng out a n i nteg rated water- management system across its entire operations. Water is an essential ingredient to many of San Miguel’s brands. For instance, beer is 90-percent water, and liquor is around 85-percent water. Across the San Miguel Group, water is used to clean, cool, heat, produce steam and pasteurize. It is

an important input to raw materials and packaging, and major input to the power and oil-refining industries. “San Miguel is going to set an example in its responsible use and management of water,” SMC President and COO Ramon S. Ang. “Many of our facilities are already efficient in terms of using

Continued from A1

commemoration of World Water Day. According to the United Nations, this year’s celebration focuses on saving water, now a vital resource for 663 million people. This year’s celebration carries the theme “Why Waste Water?” and cites technology to maximize water, like desalination. NONIE REYEs

Teo calls for TPB board meet amid growing Montano dissatisfaction

Tourism Promotions Board COO Cesar Montano and President Duterte before the 2016 national elections. By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

OURISM Secretary Wanda Corazon T. Teo has called for a board meeting of the Tourism Promotions Board (TPB), as its employees went on their second protest day against their chief operating officer, this time wearing red last Friday. In a text message to the BusinessMirror, Teo confirmed that she had called for a TPB board meeting for March 24, so the members could already discuss and approve the agency’s work program for the rest of the year. She said she hopes everyone, especially the private-sector representatives and TPB COO Cesar Montano “would attend so there would be a quorum”. The TPB is the marketing arm of the Department of Tourism (DOT) and usually handles the promotions of Philippine destinations in trade and travel fairs abroad. It also organizes or sponsors key international events meant to bring foreign travelers to the Philippines, such as the annual Madrid Fusion Manila, International Travel Bloggers Exchange held last year and the MTV Music Evolution, which is beamed around the world from Manila, among others. One of the issues raised against Montano by concerned TPB officers and employees was that their work was being impaired, due to the inability of the board to set a meeting and get a quorum because the COO was always unavailable. They have been unable to set their work plans for the rest of 2017. Teo also confirmed to reporters that the Presidential Action Center (PACE) in Malacañan Palace was still investigating the alleged irregularities committed by Montano as claimed in a complaint filed by concerned TPB management and employees on March 1. This, despite Rodrigo Duterte already denying the actor committed any corrupt acts at his post. “[The complaints are] already with PACE,” she stressed. “These are still being investigated. I think it’s in the office of [Secretary of the Cabinet] Leoncio Evasco. We’ll just wait for the results of the investigation,” she said. Pressed by reporters on Montano’s status at TPB, the DOT chief said “he is still COO; he still goes to the office”. Asked, however, if she still had confidence in Montano, Teo said, “I’d rather not comment.” She said she had just returned from a successful round of

meetings with European-based tour operators who attended the ITB Berlin travel and trade show and, as such, had yet to talk with Montano on the issues raised against him. But she added she was aware that the employees held a protest action against Montano. “I heard about it, but only found about the complaints when it came out in the newspapers. I think the employees are also waiting for the results of the investigation.” Industry stakeholders, meanwhile, pointed out that Evasco, a former mayor of Bohol, is a close friend of Montano, also a native of Bohol. Aileen Clemente, vice chairman of the Tourism Congress of the Philippines, said in an interview: “Honestly, we know the six degrees of separation. We all know that everyone is connected to everyone else. I guess what I am saying is, that regardless of the affinity, I just hope that the evidence and arguments should be the basis of decisions in PACE or in any similar venues and not affinities and affiliations.” She expressed “absolute concern” over the alleged irregularities committed by Montano as TPB head. “This is about how TPB funds are allegedly being spent. These funds are meant to be utilized as part of a comprehensive campaign strategy keeping in mind the short-, mediumand long-term strategies consistent with the National Tourism Development Plan [NTDP], at the very least.” She said she hopes for the quick resolution of the issues against Montano, whether this be by PACE or by the Senate. Senate Tourism Committee Chairman Nancy Binay last week filed a resolution asking the Senate Blue Ribbon Committee to investigate the accusations against Montano. Among the allegations leveled against Montano “by the TPB management and employees” include the signing of multimillion-peso contracts for sponsorships of concerts that had nothing to do with TPB’s mandate to promote key Philippine destinations; the hiring of personnel, such as relatives, for jobs already being performed by current employees; unauthorized travels to local and foreign destinations without itineraries and travel orders; and arrogant behavior from his staff, to name a few. Sources at the TPB said the employees will continue their protests against Montano every Friday. (See, “TPB employees hold ‘Black Friday’ protest vs Montano,” in the BusinessMirror, March 14, 2017.”)

See “SMC,” A2

DTI. . .

DEEP NEED Residents and local tourists take a dip at the Lion’s Beach in General Santos City early morning of March 17, five days ahead of the

www.businessmirror.com.ph

is revisiting the idea to create a Philippine Trade Representative Office (PTRO), specifically to “coordinate the Philippine positions in trade agreements, and negotiate bilateral, regional and multilateral arrangements.” Currently, the DTI is tasked to formulate domestic policies governing trade and industrial development, as well as negotiate the country’s position in trade agreements. The suggestion to create the office, found in the government’s latest Philippine Development Plan, is seen to be a solution for the emerging trend of inward-looking policies and protectionism in trade confronting the Philippines and its trade partners. Moreover, the restructuring was put forward as a means to jumpstart perceived “delayed” reforms in the current setup.

“Reforms are yet to be fully implemented, including streamlining of export and import procedures and other trade-facilitation measures. Opportunities from existing bilateral and regional trade agreements were not fully utilized,” the PDP read. But Lopez said there is no guarantee that these goals would be met with the creation of the PTRO. “If there’s a separate office, we won’t be able to craft relevant and balanced position in the long run because it will no longer have the current setup that the DTI has now, which has direct interaction with stakeholders,” Lopez told the BusinessMirror. “Basically, it has to connect with the DTI’s overall trade direction and policies, which is also synced with the industrialization direction. The current setup is already aligned with those, and promotes synergies,” the Cabinet official added. In 2014 former Trade Secretary

Gregory L. Domingo expressed the same opposition to the creation of a PTRO. In his letter to the House of Representatives, Domingo said the PTRO will overstep the functions and jurisdiction of the department through the Bureau of International Trade Relations, which has already developed expertise in trade negotiations and in forging trade agreements with other countries. Moreover, according to the DTI, in creating the PTRO, the authority to rule on trade matters will be separated from the industry aspect, which, in turn, will cause inefficiency in both areas. According to a position paper of the DTI, trade and industry policies are naturally and inextricably linked, such that industry policy should underpin trade policy and vice versa. Segregating the functions causes ineffectiveness in both areas, thereby, hindering their full potential to serve overall national interest.