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Thursday, March 22, 2018 Vol. 13 No. 162

DepEd ends payroll-deduction deals with insurers, lenders By Samuel P. Medenilla

@sam_medenilla

he decision of the Department of Education (DepEd) to suspend its Automatic Payroll Deduction System (APDS) for loans and insurance payments is feared to create a ripple of negative effects impacting private lending institutions (PLIs), insurance firms and the 250,000 publicschool teachers (PSTs).

What the industry really needs is the support of PCA in increasing local production, because the requirement for coconut products in the global market is increasing.” —Agustin By Jasper Emmanuel Y. Arcalas @jearcalas

Conclusion

monthly monitor ing report of the World Bank (WB) showed that the average price of coconut oil, or CNO, in February fell to a three-month low of $1,252 per metric ton (MT). The figure was more than a quarter lower than the $1,719-perMT quotation recorded in February 2017, according to the bank’s monthly Pink Sheet report. On the other hand, price-monitoring report prepared by the Philippine Coconut Authority (PCA) showed that the average price of coconut oil in the world market has fallen below the $1,200 quotation since the start of March. In its latest report, the average price of coconut oil as of March 5 was $1,130 per MT, which was 5.04 percent lower than the $1,190 quotation recorded in March 2. Continued on A12

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APDS

Rene E. Ofreneo

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The Automatic Payroll Deduction System that the DepEd instituted to ensure proper collection of loans and insurance premia of teachers The DepEd formalized the decision with the issuance of a memorandum signed by Education Undersecretary for Finance Victoria L. Medrana Catibog informing all

n January the House Committee on Labor, headed by Rep. Randolph S. Ting of the Third District of Cagayan, proudly announced a breakthrough in the “security of tenure” (SOT) legislative issue. House Bill 6908, which was essentially based on the bill filed by Party-list Rep. Raymond C. Mendoza of the Trade Union Congress of the Philippines, was overwhelmingly approved by the House plenary, 199-7. The House is now awaiting for the approval of a similar bill from the Senate.

Continued on A2

Coconut-oil exports on the road to recovery

2016 ejap journalism awards

Continued on A10

Teo admits 2018 arrivals goal imperiled by Boracay closure By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE first two months of 2018 brought in some 1.41 million tourists to the country, up 16.2 percent from the same period last year. In a news statement, the Department of Tourism (DOT) attributed the increase in arrivals to the substantial increase in Chinese tourists. “The warming relations between the Philippines and China, plus the Chinese New Year seven-day holiday, strengthen the platform for us to jump-start our campaign of achieving 1.5 million

Israel’s Ambassador to the Philippines Effie Ben Matityau (right) answers questions from reporters of the Aliw Media Group during a forum held at the BusinessMirror office in Makati City. With him are (from left) BusinessMirror Publisher T. Anthony C. Cabangon and Jewish Association of the Philippines Rabbi Eliyahu Azaria. ALYSA SALEN

Jews ready to do business with Filipinos, but not in PHL By Elijah Felice E. Rosales

@alyasjah

he “unpredictable” business environment and foreignownership cap in certain sectors in the Philippines have been forcing Israeli investors to delay their plans to establish operations in the country, according to Ambassador of Israel to the Philippines Effie Ben Matityau. Speaking at the BusinessMirror Coffee Club Forum on Wednesday, Matityau said there could have been more Israeli investors doing business in the country today, if not for the foreign-ownership cap mandated under the Constitution. He listed predictability as their main consideration before they invest in a country.

PESO exchange rates n US 52.1120

MATITYAU: “Doing business with Filipinos is easy. It is just that doing business inside the Philippines is not.”

“Yes, that has to [change],” Matityau said, referring to the restrictions on foreign ownership, “especially if you want to do business inside the Philippines. It is a very, very serious issue because you do not have total control of your business.” “The legal environment and everything that has to cater to foreigners, you do not have much remedies. Without these remedies, the whole environment is not conducive enough,” he added.

Israeli investors have long targeted the Philippines, but Matityau said the foreign-ownership cap had a good number of businessmen eliminating the Philippines from their list of possible investment locations. In 2016 investments from Israel dropped by 60.66 percent to only P10.45 million, from P26.56 million in 2015. Matityau owed this to unpredictability of the country’s business environment. For the top envoy, this has to be reformed because the Philippines is losing opportunities that could have easily fallen on its feet. “You look at your business environment, and investors would look at where they find themselves in the most comfortable position.” Continued on A12

1.41M The number of tourists that visited the Philippines in the first two months of 2018, up 16.2 percent

Chinese arrivals for this year,” Tourism Secretary Wanda Corazon T. Teo said. This developed even as the DOT chief admitted that the government’s full-year arrivals target might be affected if Boracay Island is closed for a year. Continued on A2

LRWC, Galaxy secure Pagcor license for $500-M resort-casino in Boracay By Rea Cu

@ReaCuBM

he Phi l ippine A muse ment and Gaming Corp. (Pagcor) announced that it has issued a provisional gaming license last Tuesday to Leisure and Resorts World Corp. (LRWC), the Filipino partner of Galaxy Entertainment Group (GEG), paving the way for the establishment of a resort-casino in Boracay worth an estimated $500 million in 2019. The Malay government confirmed that it had endorsed the establishment of Galaxy Entertainment Group’s casino in Boracay, as well as that of the Megaworld Corp.’s casino in Savoy Hotel at its Boracay Newcoast Development. The LRWC pointed out that the integrated resort-casino will be built in an area spanning 23 hectares

in Boracay, and that construction work is expected to start in 2019. The facility will take three years to complete. It added that gross gaming revenues (GGR) are expected to reach $100 million annually once the resort-casino operates. “We at LRWC are elated and proud to be GEG’s local partner in this momentous endeavor. We thank Pagcor Chairman Andrea D. Domingo and the entire Pagcor board for giving GEG the chance to contribute to the booming Philippine tourism and gaming industry by granting BPRL [Boracay Philippines Resort and Leisure Corp.] a provisional gaming license,” LRWC Chairman Reynaldo P. Bantug said. Bantug said LRWC will do its best to ensure that the Boracay project will preserve and maintain the Continued on A12

n japan 0.4892 n UK 72.9516 n HK 6.6433 n CHINA 8.2258 n singapore 39.5177 n australia 40.0324 n EU 63.8059 n SAUDI arabia 13.8954

Source: BSP (21 March 2018 )

BMReports BusinessMirror

A2 Thursday, March 22, 2018

www.businessmirror.com.ph

DepEd ends payroll-deduction deals with insurers, lenders Continued from A1

its personnel that the agency is terminating the APDS. Insurance Commissioner Dennis B. Funa said the termination of its agreement with the DepEd for the APDS would adversely affect the insurance industry. “It [the impact] will not be good, so that should be addressed,” Funa told the BusinessMirror in a text message. “I will discuss this with the affected insurance companies. Then we will decide what action to take,” Funa added. Also, in an in interview with the BusinessMirror, the Philippine Public School Teachers Association (PPSTA) said it will not be able to accommodate new applications anymore for its Sariling Sikap Loan (SSL) program because of the new DepEd policy. PPSTA Regional Operations D e pa r t me nt He ad D i l lon B . Arante explained that this is because they will have no reliable means of collecting the regular amortization for the SSL without the APDS. He pointed out t h at t hey stopped granting SSLs as early as November 2017, when the DepEd informed them it will be implementing the new policy. “Because of this, we received so many complaints from our members

on why we cannot approve their [Sariling Sikap] loans,” Arante said. PPSTA is a nonstock, nonprofit organization that provides insurance and loan services to its 250,000 members through accredited PLIs and insurers. Until the APDS is resumed, Arante said their members would either have to open up a checking account to avail themselves of the SSL or settle for an equity loan. Neither, Arante noted, is an attractive alternative, since very few PSTs have checking accounts, while the equity loan, will only allow their members to loan an amount equal on their current contributions. “If there is a salary deduction, they could get a high as much as P350,000, as long as they have the capacity or have the necessary net pay for it,” Arante said.

APDS suspension

ON March 6 Catibog issued an advisory, a copy of which was obtained by the BusinessMirror, stating they will no longer accept nor incorporate new billings for insurance premia, savings deposits and mutual aid system membership fees until further notice. The issuance, however, noted that the DepEd will continue with salary deductions already incorporated in its payroll until their respective termination dates.

Catibog said this is to ensure that the existing insurance policies, membership and benefits of DepEd personnel will not be disrupted. She said this is pursuant to the Veto Message of President Dutete on Section 48, “authorized deductions,” of the 2018 General Appropriations Act (GAA), reminding government agencies to secure the most favorable terms for government employees. When sought for clarification via e-mail, Catibog’s office merely answered: “The Office of the Undersecretary for Finance confirms the issuance of the attached advisory.” According to the DepEd, the March 6 advisory will remain in effect until the appropriate government agency, or Congress, could provide them guidelines on authorized deductions. It said this is necessary since some lawmakers insist the manner of payment of loans for PSTs should be based on how it is listed in Section 48 of the GAA. Foremost on the list are the Bureau Internal Revenue (BIR), Philippine Health Insurance Corp., Government Service Insurance System and Home Development Mutual Fund. It is followed, respectively, by nonstock savings and loan associations and mutual development associations duly operating under

existing laws, and cooperatives which are managed by and/or for the benefit of government employees; associations or provident funds organized and managed by government employees for their benefit and welfare; government financial institutions authorized by law and accredited by appropriate government regulating bodies to engage in lending; licensed insurance companies; and thrift banks and rural banks accredited by the Bangko Sentral ng Pilipinas. In the previous administrations, the DepEd used the “first in, first served” rule in the payment for the APDS. The order of payment is crucial, especially in the case of PSTs with multiple loans, since it will determine which agencies will be immediately paid, and which will have to wait on the next pay day to be compensated.

Dwindling membership

PPSTA, one of the organizations to be affected by the DepEd’s March 6 issuance, expressed its concern over the new APDS policy since it could negatively affect the long-term viability of its operations. Arante said it hampers them from recruiting new members, which, he added, is necessary in order for them to expand their services. “We keep on texting them

[applicants] on how they are going to deposit their P120 premium directly to banks or through our regional offices.... Some of them would say they are no longer interested since it will require them to exert more effort,” Arante said. He added this is even more problematic to PSTs based in isolated areas, where there are limited access to banks. “That is why we want to bring back salary deduction because we are also catering to teachers from remote areas...if anything would happen to them, they will be insured,” Arante said. He also disclosed the issuance will prevent them from renewing the membership of PSTs, who transferred to a new division or became inactive over the years. He said this will contribute to the drop in their membership in the long run. “We are like a candle, which is now slowly wasting away. In the end, it is our members who will suffer,” Arante said. The PPSTA disclosed it is now planning to have a meeting with DepEd officials next month to ask them to repeal the March 6 advisory. “We are also considering coming up with a position paper from our Board of Trustees asking the DepEd and the lower house to review the policy,” he added.

For its part, the Act Teachers party-list said it will call on the House of Representatives to look into the issue. “We recently filed House Resolution 1753 calling for an inquiry into the Deped policy on private loans of its personnel, including the issues of accreditation and automatic deduction,” Party-list Rep. Antonio L. Tinio of Act Teachers said in a text message. “We’re hoping that this will be taken up in committee as soon as possible,” he added. To recall, the DepEd started looking into implementing tighter regulations for its loans and fees following its report in October 2017 that PSTs owe more than P300 billion from public and private lending institutions. Based on its initial study, the DepEd attributed the trend to the poor spending habits and lack of financial literacy of PSTs. The PPSTA opposed DepEd policies to restrict loan access for teachers, stating overborrowing is a consequence of the insufficient pay of PSTs. “The solution to the financial needs of our public-school teachers is really to increase the salary of our teachers. That is why we are supporting the P30,000 entry-level salary for them,” Arante said. With Rea Cu

Teo admits 2018 arrivals goal imperiled by Boracay closure Continued from A1

“That’s why we’re sticking with our proposal to the President that the closure will only be for two months,” or from April 26 to June 25. “If it’s one year, pano naman yung arrivals [target] ko?” she said. Task Force Boracay, headed by Environment Secretary Roy A. Cimatu, is recommending that Boracay be put under a state of calamity for six months, and closed off to tourists for a maximum of one year. Under the National Tourism Development Plan for 2016-2022, the Duterte administration is targetting foreign visitor arrivals of 7.5 million for 2018. Last year foreign tourists in Boracay exceeded 1 million, accounting for some 17 percent of the country’s foreign

visitor arrivals of 6 million. The top source of foreign tourists continues to be South Korea, with arrivals reaching 354,700 in the first two months of the year, and posting an increase of some 16.3 percent from the same period last year. This was followed by China, with 256,880 arrivals, which grew by an “an impressive 56.44 percent,” edging out the usual second top-ranked market, the United States. “The record-breaking Chinese arrivals to the Philippines is a testament that we’ve become one of the top destinations for the Chinese market,” Teo said. Most of the Chinese tourists go to beach destinations like Boracay, Cebu and Bohol. In third place was the US with 193,985 arrivals, up 7.83 percent;

followed by Japan at 117,300 (+11.2 percent); and Australia at 50,404 (+5.05 percent). Rounding up the top source market for tourists are Canada 48,191 (+11.1 percent); Taiwan 40,856, which slipped by 3.6 percent; the United Kingdom 33,554 (+8.33 percent); Singapore 28,117 (+11.09 percent); Malaysia 24,334 (+12.9 percent); India 23,064 (+18.7 percent); and Hong Kong 22,920 (+26.1 percent). The DOT, however, failed to release again its visitor receipts for the period. “For the first two months, we have already breached the 1.4-million tourist mark, another first in the history, and it is a good sign for the tourism industry,” Teo said. Meanwhile, the DOT pointed out that the Philippines ranked ninth

in the top destinations for Chinese outbound tourists, citing figures from TravelChinaGuide, a leading Chinese travel agency. According to the 2018 Spring Festival Travel Forecast Report issued by Ctrip, China’s largest online travel provider, and the China Tourism Academy, the Philippines was also named eighth most popular Chinese travel destination during the Chinese New Year. Teo said the continued rise in the number of foreign guests bodes well for the higher targets set by the DOT, amid the government’s plan to temporarily close Boracay to tourists and rehabilitate its drainage, sewerage and road systems to address water pollution, flooding and traffic problems. “We welcome this increase in our

arrivals as we brace for the possible effects of the Boracay, rehabilitation. We remain optimistic that the ‘new’ Boracay after its beauty rest, will attract more tourists and help the industry break more records,” she stressed. In a news conference, Rep. Lucy Torres-Gomez of the Fourth District of Leyte, chairman of the House Committee on Tourism, on Wednesday backed a temporary closure of the island, noting that such a drastic move is needed to address several issues, including the discharge of untreated wastewater into the famous white-sand beach. The Boracay Island’s temporary closure is one of the recommendations listed in its committee report to promote sustainability of the island. According to Torres-Gomez, the committee has taken into account the economic implications of a

Coconut-oil. . . Continued from A12

Local production

Agustin puts it simply: higher domestic coconut production leads to higher export volume. “What the industry really needs is the support of PCA in increasing local production because the requirement for coconut products in the global market is increasing,” she said. “Even if farmers would say that with the increased production the prices of copra would go down. They are not seeing that, yes, it is cheaper, but they can sell a lot, which would offset the difference in the price level.” Agustin added that there are times when, even if production is high, the prices would also remain favorable to producers. “Just like last year, we had higher production but, at the same time, the prices of coconut abroad were also high, translating into higher local prices.” The increase in production would also allow the Philippines to open new markets for its coconut product exports, as a majority of volume today goes to the United States and the European Union, according to Agustin. Agustin said about 10 percent of the country’s total coconut exports annually goes to other countries, such as China, Japan and Malaysia. “We need higher production for us to open new markets.” Roehlano M. Briones, senior research fellow at state-run Philippine Institute for Development Studies, recommended that the government encourages coconut farmers to do basic treemaintenance techniques to ensure and improve the nut production of their trees. He added that the PCA should “seriously” consider how

temporary closure, as the island brought in P60 billion in tourism receipts in 2016. “A closure would then result in monthly losses estimated at P5 billion. This is definitely a hefty, and both business establishments and residents will suffer the consequences. However, on balance, the committee put more weight on the long-term viability and sustainability of tourism in Boracay, versus the short-term economic collateral damage that comes with closing its doors to incoming tourist,” Gomez said. “With a heavy heart, the chairman would like to convey deep empathy to those who will be affected by such a temporary closure. Temporary closure may be likened to a bitter pill that needs to be taken in order to cure the symptoms and causes of a nagging disease,” she added. With Jovee Marie N. dela Cruz

to realize other benefits from coconut—aside from coconut oil—in the long run. And for the government to do such, it must restructure the industry geographically, according to Briones. “And for that, we need to geographically restructure the industry. I think the replanting program [of PCA] is a missed opportunity, precisely, to do that.” “One of the reasons we are unable to exploit in industrial scale the many other benefits from coconut is the high transport costs, because the system is highly fragmented spatially,” he added.

Not so soon

In a 2017 industry projection report, the United States Department of Agriculture Foreign Agricultural Service (USDA-FAS) in Manila said there will be no “dramatic increase”in the number of coconut trees in the country in the next three to five years. “On a long-term basis, significant increases in copra output are constrained by predominantly old and senile coconut palms or trees, which constitute an estimated 20 percent of overall Philippine coconut trees,” it said. “According to the PSA, in 2012, there were an estimated 344 million coconut bearing trees. The number of coconut-bearing trees since then has declined to 330 million trees in 2015 [most recent data available],” it added. The USDA-FAS Manila report noted that, in addition to low productivity and declining number of coconut trees, the perennial visit of devastating typhoons across the country drags the local production down. Citing data from the PSA, the PCA said coconut trees are planted in 68 provinces, with total hectarage of about 3.517 million, or about 26 percent of the country’s total agricultural land.

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DND’s Lorenzana opposes move for ‘independent’ Marine Corps

efense Secretary Delfin N. Lorenzana on Wednesday rejected proposals to separate the Philippine Marine Corps (Marines) from its mother unit, the Philippine Navy (PN). The defense chief issued the statement after House Speaker Pantaleon D. Alvarez and Majority Leader Rodolfo C. Fariñas Sr. filed a bill seeking to institutionalize the Marines as a distinct and autonomous arm of the military. “No. 1, Marines are expeditionary forces. In other countries like the US, where we patterned ours, the US Marines are for overseas deployment. That is also true with the Royal Marines of the UK. Both units are invasion forces embedded with their navies. The Philippines, on the other hand, will not be invading foreign shores anytime soon or ever,” Lorenzana said. Second, he added, the Marines are

“basically a ground force and making them an independent service will mean that there will [be] two ground forces, including the Army, in the Armed Forces of the Philippines.” “No. 3, the Marines claim that they have particular skills, like shipto-shore operations. The Army could easily learn these skills,” he added. Lorenzana stated that, as a unit, the Marines are envisioned as a light, hard, striking force to pursue pirates and smugglers, upon its creation in 1950 by a general headquarters order. “It was originally part of the Philippine Naval Patrol, the forerunner of the Philippine Fleet. In short, the Marines was envisioned as an adjunct of the PN and it was envisioned as a small force only,” he said. The Marines is composed of about 8,000 officers and enlisted personnel spread around three maneuver brigades, apart from combat support and headquarter units. PNA

Duterte entices more Moros to join police and military

”Not only the Moro, but as a matter of fact, it should be divided among tribes, Ilocano, Bisaya...that ought to be the Philippine National Police,” the Chief Executive said. Duterte, meanwhile, expressed hope that he would have the funds to enlist more officers. “I hope by the next batch or the next—the one coming up for this generation, I will have the money to give you to enlist more police officers,” he said.

Editor: Vittorio V. Vitug • Thursday, March 22, 2018 A3

Army chief Bautista outlines ‘reality’ of terror threat in PHL

he threat of terrorism, which the Philippines experienced firsthand during the five-month long Marawi City siege, is a reality the world needs to confront, the chief of the Philippine Army (PA) Lt. Gen. Rolando Joselito Bautista said.

The Army commander’s statement came as the authorities at the Ninoy Aquino International Airport (Naia) hoisted the heightened alert on Tuesday, amid reports that foreign terrorists have sneaked into the country through the southern backdoor. Manila International Airport General Manager Ed V. Monreal, however, said that the public should not be alarmed with the heightened security status since “it is just part of a security measures to protect our passengers, the facilities and, of course, the airport users.” “We have coordinated with the Philippine National PoliceAviation Security Group [PNPAvseg roup] and d irected t he Of f ice of Transpor t Secur it y personnel to remain vigilant. But we do not want to cause inconvenience in the process by creating long lines at the baggage-screening c hec k points,” Monreal added. He said security personnel at a i r p or t c he c k p oi nt s w i l l conduc t i nspec t ions of c a r’s passengers of motor vehicles. He advised the public to abide with the new security protocol for their own protection. The heighten alert was raised after reports from the Western Mindanao Command of the Armed Forces of the Philippines (AFP) alleged that some foreign terrorists were able to slip into the country recently. T he report has reported ly

prompted the AFP and the PNP to embark on a manhunt.

Omnipresent

“The threat of terrorism is omnipresent and unavoidable in this day and age. It is a reality that the free world must now confront. The siege of the city of Marawi opened the eyes of countries in our part of the world to the realities of terrorism,” Bautista said during the Army’s 121st anniversary rites on Tuesday. The Marawi City fighting, which started from May 23 to October 23, 2017, subsequently resulted in the death of more than 1,000 military, police, civilian and Maute Group terrorists, aside from causing billions of pesos worth of damages in public and private infrastructure in Marawi City.

President Duterte confers the Army Governance Pathway Institutionalized Medallion award on the 10th Infantry Division represented by its commander, Maj. Gen. Noel Clement, during the 121st founding anniversary of the Philippine Army at the Army Headquarters in Fort Bonifacio, Taguig City, on Tuesday. Also in photo is Special Assistant to the President Christopher Lawrence Go. Toto Lozano/Presidential Photo

Despite challenges and losses, however, the Army managed to neutralize the Maute Group terrorists which proved its capability to defend the country against security threats.

President Rodrigo Roa Duterte, who entered the main battle area at the height of the firefight, inspired and motivated every AFP, PNP and Coast Guard personnel to perform their mandate to rescue the hostages and neutralize all the terrorists,” Bautista said. He also attributed the desire of military personnel, wounded in the fierce battles, to continue fighting with the President’s unwavering support. “His unwavering support made even some of the wounded to refuse medical evacuation in order to be able to go back to the frontlines,” he added. In the liberation of Marawi City, the Army managed to get the better of their terrorist enemies in the urban terrain by swiftly making the necessary adjustments by tailoring its tactics, techniques and procedures to suit the difficult urban environment. “Thinking out of the box, the Army outmaneuvered the ISISMaute terrorists and shook their core, resulting in the neutralization of about 900 terrorists, headed by the FBI’s most wanted terrorist, Isnilon Hapilon, and the Maute brothers,” Bautista added. Recto Mercene with PNA

r e siden t D ute r te on Wednesday said he sees a need for more Moro members in the police force, saying not all Moros should be considered as “enemies.” “Not all the Moro of Mindanao are our enem[ies],” Duterte said in his speech during the graduation of the Philippine National Police Academy (PNPA) “Maragtas” Class of 2018 in Silang, Cavite. Duterte added he wants diversity in the police force, saying Moros deserved to be “included” in peacekeeping duties to maintain peace and order in the Philippines. “So maybe next time there should be a percentage of the Moro people joining the PMA [Philippine Military Academy] or the PNPA. We need them. As a matter of fact, kailangan talaga natin sila [we really need them],” Duterte said. ”We cannot govern this country by just selecting from the other provinces without looking toward Mindanao,” the President added. Duterte said that, aside from Moros, he there should be more policemen divided among other tribes.

‘I will take care of you’

Makati shuts down ‘porn’ billboard

OWWA allots ₧25-M aid for OFWs affected by Kuwait deployment ban

akati City Mayor Abigail Binay has ordered the immediate shutdown of the electronic billboard that showed pornographic material on Tuesday night. The head of the city’s Business Permits and Licensing Office, lawyer Maribert Pagente, said in a news statement issued on Wednesday that the billboard operator, Globa lt ron ics Inc., “ i m med i ate ly compl ied w it h the order.” According to Pagente, the billboard will be shut down pending the result of an investigation into the incident and the liabilities of the company, Globaltronics and its personnel. “The mayor also ordered an immediate investigation of the incident to determine the cause and liabilities of those concerned. Pending such investigation, the billboard shall remain closed,” Pagente said. In a news statement issued also on Wednesday, Globaltronics confirmed that they have complied with the directive of the Makati City government. “ We at Globa ltronics have a lready compl ied w it h t he Ma k ati Cit y gover nment’s directive for us to temporar ily shut dow n the EBC [Executive Building Center] site for invest igat ion,” Globa ltronics CEO Joseph Evangelista said in the statement. PNA

Duterte, meanwhile, urged PNPA graduates to perform their duties in accordance with the law and assured anew that he would protect them should they encounter problems in the fulfillment of duty. “Just perform your duty in accordance with the law, trabaho kayo [just work] and, if there are events that would occur intended or not intended for as long as you are in the performance of duty, do not be afraid,” Duterte told the graduates. PNA

By Samuel P. Medenilla @sam_medenilla

he Overseas Workers Welfare Administration (OWWA) has allocated P25 million to extend financial assistance to its listed members affected by the overseas Filipino workers’ (OFWs) deployment ban to Kuwait. In its Board Resolution 14, series of 2018, the OWWA approved the allocation of funds for the financial assistance it will extend to the target beneficiaries. “Active members will get a cash assistance of P5,000, while inactive members will get P2,500,” OWWA Administrator Hans J. Cacdac said in a phone interview. The assistance, he added, cover all OWWA members with Kuwait work visa as of February 12 this year. The program will continue to take effect as long as there are OFWs affected by the ban. “Around 5,000 beneficiaries are expected to benefit from the program,” Cacdac said in a text message. OWWA members who would like to avail themselves of the programs could go or contact the nearest OWWA regional offices in their area, he added. To recall, the Department of Labor and Employment (DOLE) imposed an OFW deployment to Kuwait last month upon the orders of President Duterte. Labor Secretary Silvestre H. Bello III said the deployment restriction

Leading the charge

“The Army served as the main effort to address and neutralize the ISIS [Islamic State of Iraq and Syria]-Maute terrorist group in a protracted battle for the liberation of the City of Marawi. Having no less than our Commander in Chief,

It [heightened security at the Naia] is just part of security measures to protect our passengers, the facilities and of course the airport users. We have coordinated with the PNP-Avsegroup and directed the OTS personnel to remain vigilant. But we do not want to cause inconvenience in the process by creating long lines at the baggage- screening checkpoints.”—Monreal

will only be lifted once the new Philippine-Kuwait bilateral accord is signed by next month and the people who killed Filipino household service workers Joanna Demafelis are held accountable. The government is currently intensifying its efforts to improve the welfare and working conditions of OFWs in Kuwait after Duterte raised the issue of the increasing deaths of OFWs in the said Arab country.

‘Mandatory provisions’

Meanwhile, President Duterte said he had added some “mandatory provisions” in the final draft agreement between the Philippines and Kuwait to protect OFWs there. He added this was the reason he arrived late during the 39th commencement exercises for the Philippine National Police Academy’s “Maragtas” Class of 2018. “Honestly, I was late because we were working on the final draft that will be brought to Kuwait by Secretary Bello and I added some requirements,” he said. Some mandatory provisions that were added, the President said, were that OFWs should be allowed to sleep at least seven hours a day and that they will be fed with nutritious food. “[W]e will not allow leftovers to be eaten by our countrymen. Allow them to cook food,” he added. Duterte, likewise, said that there will be no confiscation of passports by the employers.

Cycle gear

A sidewalk vendor in Manila arranges piles of so-called top box gears that fit the rear passenger side of a motorcycle for an extra small space for luggage. The demand for the accessory continues to rise, alongside the equally rising demand for motorcycles, which many Filipinos buy for their daily commute and other transport needs. NONIE REYES

Economy

A4 Thursday, March 22, 2018 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Entry of 3rd player seen breaking telco ‘duopoly’ in awaited law I

Open-market regime for construction projects could save P76-B/year–PIDS By Cai U. Ordinario

By Butch Fernandez

@butchfBM

emedial legislation liberalizing the telecommunication industry is seen to make more viable the entry of a third player that could “break the virtual duopoly” of telco giants Smart and Globe, according to Sen. Grace Poe, chairman of the Senate Public Services Committee tasked to review telecom franchise applications.

In a news statement issued on Wednesday, Poe confirmed that lawmakers are pushing for the speedy passage of Senate Bill (SB) 1754 amending the 82-year-old Public Service Act of 1936 to allow “meaningful competition” in the telco sector. Poe predicted its early enactment into law will pave the way for a third telco player that will directly compete against the two telco giants, adding that SB 1754 was crafted to “effectively liberalize” the telco sector. The senator recalled that President Duterte earlier mentioned the enactment of a new law that would pave the way for the entry of a third,

fourth or even fifth telco player in the local market. In sponsoring the remedial legislation suggested by the President, Poe said it is “time to respond and act” on the President’s proposal. She added, however, that she expects “immediate Senate action” to pass the bill when sessions resume

in May, as Congress is already set to adjourn this week. At the same time, Poe said lawmakers “expect that more public services would be opened to wide competition,” adding that “a meaningful competition will allow more players, domestic and foreign, to slug it out to win the satisfaction of the Filipino people.” This way, she predicts “there will be lively competition in providing quality services and products at reasonable prices for the benefit of consumers.” “We intend to erase the take-itor-leave-it attitude of those who benefited operating as monopolies for decades,” Poe said. The senator noted that the 1987 Philippine Constitution restricts the operation of a public utility to companies whose ownership is at least 60-percent Filipino-owned. “The antiquated Public Service Act, however, only provides a list and not a definition of public services and no definition of a public utility. Thus, foreign equity restrictions

A meaningful competition will allow more players, domestic and foreign, to slug it out to win the satisfaction of the Filipino people.”— Poe

also apply to public utilities like telecommunications, electricity, water and transportation, among others,” she added. Poe said that currently, electricity (distribution and transmission), water, transportation, telecommunications and other essential services fall under the foreign equity rule mandated by the Constitution. “Once the measure is approved,” she said, “only the electric power distribution and transmission, water pipeline distribution and sewerage pipeline system are restricted.” Poe added “the natural effect of our proposed definition of ‘public utility’ is to free all public services not included in the three public services mentioned, meaning constitutional restrictions on foreign ownership, equity and operation will be lifted. Poe mentioned that the remedial legislation “seeks to improve the quality of the goods and services of public service providers and lower the costs of their goods and services at the same time.” The senator added that companies are expected to “provide better services or they will face a fine of up to P5 million per day of violation plus “disgorgement of profits” and additional “treble damages,” effectively amending the existing law that, she notes, “only imposes a measly fine of P200 per day of violation.”

@cuo_bm

F the Philippines were to decide to open its procurement market to foreign players in Trans-Pacific Partnership (TPP) countries, Filipino taxpayers will be able to save P76 billion a year for various construction projects. This was according to a study released by the Philippine Institute of Development Studies (PIDS), which found out that the entry of foreign players in the local procurement market could increase competition and cut costs. In the paper authored by University of the Philippines Professor Ramon L. Clarete and UP School of Economics student Gerald Gracius Y. Pascua, the option would lead to a cost reduction of 10 percent per year. “The data and analysis in the previous section support this paper’s argument that opening up the procurement market to foreign suppliers belonging to TPP countries to increase competition in the local procurement market would confer net benefits to the Philippine government and Filipinos in general,” the authors said. The authors added the estimates are based in the 2015 GDP nominal value of P15.192 trillion on the assumption that public infrastructure spending would amount to P760 billion, or 5 percent of GDP. They said that assuming a farmto-market road or other last-mile access road costs around P20 million per kilometer, the 10 percent savings in cost can pay for 3,800 kilometers for similar kinds of roads.

In terms of classrooms, the authors said the Public Private Partnership Center estimates P1 million to pay for a one- or two-story school building. With the savings, the government can build around 76,000 more classrooms. “The lack of competition, in turn, can make road infrastructure procurement vulnerable to corruption. The cost of collusion and cartels in the road sector is large and ranges from 8 [percent] to 60 percent of the total road cost,” the authors, citing the World Bank, said in their study. “To accommodate the bribes, contractors resort to the use of substandard materials in road projects, thus resulting in higher maintenance costs due to poor road conditions and traffic-flow congestion. Allegations of collusion and corruption have been found in 25 percent of World Bank-assisted road projects,” the authors stated. Data obtained by the authors from PhilGEPS showed that most bidders for local projects were composed mostly of Filipino companies. The authors said that, of over 12,000 local bidders for national projects between 2006 and 2014, there were only 13 foreign bidders in the eight-year period. However, they said, the Philippines is among the countries with relatively high unit costs of road projects. In 2006 a kilometer of road costs $60,800, and $94,800 in 2005. Further, the authors said the Office of the Ombudsman already estimated the country lost P48 billion to corruption over the last 20 years.

PCSO releases P797.6-M medical aid in Feb

HE Philippine Charity Sweepstakes Office (PCSO), through its Charity Assistance Department (CAD), has disbursed P797.6 million for the Individual Medical Assistance Program (Imap) in February. In a news statement issued on Wednesday, PCSO General Manager Alexander Balutan said the PCSO head office alone released P450.1 million for 13,299 cases, while branch offices released P347.5 million for 28,272 cases. Compared to same month of last year, the Imap allocation of the PCSO head office rose by 25.8 percent, from P357.7 million to P450.1 million, serving some 10,533 cases to 13,299 cases. As for the branch offices, it rose by 30.89 percent, from P265.5 million to P347.5 million, serving from 21,833 cases to 28,201 cases this year. Balutan reported that, of all the cases received at the head office, hospitalization or confinement had the highest amount spent in February at P185.7 million for 4,766 cases, followed by chemotherapy at P129.5 million for 2,784 cases, and requests for medicines at P55.5 million for 3,140 cases. As for the branch offices, hospitalization also had the highest amount spent at P173.23 million for 12,216 cases, followed by requests for medicines at P97.78 million with 9,460 cases, and laboratory/diagnostic procedures at P15.26 million with 2,688 cases. At present, the PCSO has 63 branches across the country, with the opening of seven new branches last year in the provinces of Lanao del Norte, Catanduanes, Sultan Kudarat, Eastern Samar, Biliran, Davao del Norte and Ifugao. “Our target for year 2018 is to open eight new branches more. If we accomplish this, we only need to build 10 more in the coming years and before 2022, we would have established a branch in 81 provinces,” Balutan said. While hospitalization is the most requested assistance, dialysis cases took a sharp climb in the branch offices. From one case last year, dialysis rose to 915 cases in February this year, amounting to P7.18 million. Meanwhile, no transplant request was reported in the branch offices in February as compared with the 12 transplant requests last year. When it comes to requests per region, Region 3 has the most number of cases with 5,176 cases, followed by Region 4A with 4,573 cases and Region 6 with 2,976 cases. The Imap is a flagship program of the PCSO under the CAD. It is designed to attend to the financial needs of all individuals with health-related problems through the provision of financial assistance. The PCSO issues a guarantee letter to the hospital or partner health facility, which assumes the obligation of a specific amount due from the client for the services rendered. The PCSO At Source and Processing (Asap) Desks is a point of access to Imap established through a partnership between the agency and hospitals that directly provide various health interventions to patients.

The Asap Desk is usually manned by a hospital/health facility social worker employed, but was trained by the PCSO. The social worker evaluates, acknowledges the application and dos the profiling of patients to establish his/her socioeconomic condition and classification. Once the data has been established, the social worker e-mails these to the PCSO. His or her job is only limited to appreciating the information he/she’s been given and determine the amount to release. Once approved, it will be transmitted. The hospital will then credit the amount to the patient’s hospital bills or medicines. However, the amount of assistance being approved depends on the social status of the applicant or patient classification based on PCSO classification. For example, if a patient belongs to Class A, he will only get 50-percent assistance based on net/case rate. If he belongs to Class F, he may get 100 percent. This year the PCSO has allocated P3.6 billion for ASAP Desk. At present, there are 57 PCSO Asap Desks in partner hospitals and facilities all over the country. Apart from the Imap, patients can also avail themselves of the Endowment Fund from the hospital. Endowment fund is a direct financial assistance being given to the hospital to help them address the financial obligations of patients admitted in the charity ward of that hospital. The fund is based on the hospital’s classification, which is determined by the Department of Health (DOH). Level 3 hospitals have P5 million allocation, Level 2 get P3 million and Level 1 gets P1 million. This fund, however, is limited to government hospitals, both DOH retained and devolved hospitals of local government units. The PCSO also denied claims that only relatives of hospital workers are being given priority and preference in the grant of endowment fund. “Endowment fund, I doubt it. Kasi ang client base natin are indigent talaga [Our client base are indigents]. There’s no way for them to take such approach or the idea that it will be limited because, if you will visit almost all majority of our government hospitals, makikita mo talaga na ang mga nagpupunta doon eh mga indigent patients [we can see that those people were indigent patients],” said Dr. Larry Cedro, assistant general manager for Charity Sector. Balutan assured the public that the PCSO chooses no one, whether you’re rich or poor. “As long as you are Filipino. Even if you’re rich, if you suffer catastrophic illnesses, your bank savings will be drained, the PCSO will help you. You can even ask for more,” he stated. The PCSO has now simplified the requirements for those seeking medical assistance. Applicants will only need to submit a medical abstract, statement of account, letter from the hospital and personal letter from the applicant minus the social case study. Ashley Manabat with PNA

Homeward bound

A group of homeward bound overseas Filipino workers repatriated from Kuwait completes their documentation upon their return to the country at the Ninoy Aquino International Airport. President Duterte outlined some of his demands to the Kuwaiti government on how Filipino domestic helpers should be treated in their country, following the killing of a Filipino domestic helper in that Arab state. NONIE REYES

Lawmaker pushes creation of recreation, relaxation council

vice chairman of the House Committee on Appropriations on Wednesday urged Congress to complement the administration’s P2.5-billion “Green, Green, Green” initiative on the development of eco-friendly parks in the country with the swift passage of a bill creating a new government body to oversee this program. Rep. Luis Raymund F. Villafuerte Jr. of the Second District of Camarines Sur said his proposal under House Bill (HB) 6047 seeks to create a Recreation and Relaxation Development Council (RRDC) that will oversee the establishment of green parks or public recreational places, especially in highly urbanized cities, will provide the organizational setup needed to ensure the seamless implementation of Malacañang’s Green program. “The creation of this council fits Malacañang’s Green, Green Green program to a tee. It will also institutionalize this program to sustain the development of more eco-friendly public spaces and ensure the regular maintenance of the existing green parks,” Villafuerte said. Budget Secretary Benjamin E. Diokno earlier said the government has allotted P2.5 billion under the 2018 national budget

for the Green, Green, Green program that aims to transform cities into more livable and sustainable communities. Diokno said this program, which is a component of the “Build, Build, Build” infrastructure program, will continue to receive funding until 2022. He said the funding will help city governments create forest parks, arboretums, botanical gardens, bike lanes, walkways and other improvements to make urban areas more livable and relaxing. “We welcome this initiative to make our cities greener, cleaner and healthier. The Green, Green, Green program, along with my proposal to create the RRDC, will empower our local government units [LGUs] to transform their congested urban centers into more livable communities,” Villafuerte said. The bill aims “to enhance the overall quality of life for the citizens of the city or municipality and not serve as mere valueadding property.” “For a state that prioritizes the wellbeing of its people, it becomes imperative that it provide spaces that allow relaxation—spaces for social interactions and recreation. Recreation spaces, such as parks,

fill the absence of green space and helps improve air quality, especially for highly urbanized cities, ultimately helping reduce carbon-emission levels,” Villafuerte said in his explanatory note to HB 6047. These green parks, he added, will also serve as buffers for noise pollution and help improve climate and humidity levels while reducing the heat in urban areas, which, in turn, will improve the overall health and well-being of people. Under the bill, the RRDC will also examine the needs of the people in the areas where these green parks would be developed through consultations with stakeholders. This proposed RRDC shall be chaired by the secretary of the Department of the Interior and Local Government and shall include representatives from the departments of Public Works and Highways and of Environment and Natural Resources; one professor each from the University of the Philippines School of Urban and Regional Planning and the UP College of Architecture; and one representative each from the Philippine Green Building Council and the National Parks Development Committee, as members. Jovee Marie N. dela Cruz

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

Love and light in a ‘happiness’ farm

Editor: Jennifer A. Ng • Thursday, March 22, 2018

Farmers urged to plant more coffee

uerto Princesa City—I went all the way to Palawan just to renew my passport. Anyone who had a hard time getting a passport here in Manila would probably understand why I had to resort to this. The extra expense and the inconvenience annoyed me. That was my initial reaction. But I refused to let this inconvenience control my mood. So, instead of whining about this “injustice,” I reframed my mindset, and transformed this “enforced” vacation into an opportunity to visit Bahay Kalipay. Bahay Kalipay literally means House of Happiness, a combination of the Tagalog word for “house” and Cebuano word for “happiness.” Bahay Kalipay (or BK) has long been known as a yoga and detox center. I’ve been planning to visit this place for years, but wasn’t able to do so because something else would crop up. I didn’t sign up for any of BK’s detox programs, as I had no intention of spending all day meditating, doing asanas and eating raw food. I’m a city girl who needs my coffee and cable news TV first thing in the morning, so I have to stay in a B&B in the city proper. But BK is just a 30-minute trike ride away from downtown, and going there for two-hour yoga and meditation sessions is enough to calm my mind and soul and to set my intentions. I also learned the concept of labyrinth walk, a form of movement meditation where I had to walk around a hut, while reflecting on my intentions and questioning my inner fears. But, then again, who wouldn’t be more reflexive when one is in a hut amidst a garden of flowers, plants and trees? A place where one can savor fresh coconut juice (which comes straight from one of the trees here and not from a can) and eat a filing, no-guilt and all-natural raw mango cake? “Ang ganda ng energy ng raw food,” BK cofounder and raw-food chef Daniw Arrazola told me while we had a merienda of mango cake and coconut juice in one of BK’s huts. Daniw said the food’s “beautiful” energy comes from its “good” source. The coconuts are organically grown in BK’s garden. The cake is made of organic mangoes, cashews and pili nuts that were bought directly from Palawanon and Bicolano farmers. She stressed the latter, as sustainable farming and dining is not only about growing and eating organic food but also ensuring that farmers will get fair prices for their produce. “When you get into raw veganism, you will [want to] know how [the crops] were planted, how the [farmers] take care of their plants,” she said. For impor ted ing red ients like sunflower seeds, Daniw researched online and found an online store that only sells organic and fair-trade products. That Daniw is so meticulous about her sources and is more than giving her diners very good value for their money. She told me that, since she started being a raw vegan 11 years ago, she also started to assess her food choices and, in the process, learned that she needed to set a higher standard for her diet. Daniw changed her diet to change her life. Back in 2007 she went to the Good Shepherd Convent in Tagaytay as she was weighed down by serious personal problems. The nuns introduced her to yoga, meditation and tai-chi. They also advised her to drop junk food, give up very sweet and salty food and adopt a vegetarian diet. She took their advice to heart and was, indeed, rewarded with a clear mind, healthier body and an easier way to deal with her problem. A few months later she would meet Pi Villaraza in the same retreat center in Tagaytay. Pi has been known for facilitating a spiritual healing modality called inner dance. It was through inner dance that Daniw had an emotional breakthrough. Pi also introduced Daniw to raw veganism, telling her about the clarity that he received after living as a

Prime Sarmiento

prime commodities hermit in an island off Palawan for two years, subsisting on a monodiet of coconut juice and bananas. Daniw decided to give raw veganism a try, as she was on an inner healing journey then and would try anything that would bring her a peaceful and clear mind. She started with just eating bananas, mangoes and other fruits that she can buy in the grocery. After two weeks, she reintroduced vegetables to her diet and started eating green salads. She was amazed not only by the light, healing energy that raw food bought but also the fact that she finally stopped feeling sad. She recalled that she was crying—not out of sadness but out of too much happiness. Soon after, Pi became her life partner. Daniw then sold everything she owned in Manila, moved with Pi to Palawan and, together, they built a yoga and retreat center in a leased land in Barangay San Pedro. Daniw recalled that she was building BK while going through her own inner healing process. It wasn’t easy, but she knew she had to go through it. “I have to fix this place while I was still healing. Hindi mabilis ang healing process,” she said. They started offering inner dance, yoga sessions, smoothies and some raw vegan dishes that Daniw prepared using recipes found in a raw food cookbook. Thanks to word of mouth (and perhaps the positive vibes that emanate from the center), Bahay Kalipay would soon attract healers, teachers and students from all over the Philippines and around the world. A few years later, Daniw would take a step further in her raw-vegan journey by signing up for a raw-chef certification course in Thailand. Daniw guarantees that anyone who dines in Kalipay Café can avail themselves of eco-friendly and fairtrade food. She made sure of this by personally visiting the farms and talking to the farmers themselves on how they grow their food. Plastic bags, styrofoam and other forms of packaging are not allowed in BK, as the farmers either deliver their produce fresh from the farm, or BK’s staff goes to the talipapa with a reusable bag or basket in tow. There’s a water filter and a set of drinking glass, so BK’s guests can drink potable water without having to buy bottled water. BK also discourages food waste. Hence, anyone who wants to eat in the café has to reserve a place a few hours (or even a day) in advance as the staff will only prepare food for confirmed guests. The food preparation itself is waste-free, as everything is either recycled or used as a compost. Daniw told me that the crust used to make the mango cake that she served to me was made from the pulp of cashew and pili nuts that were also used to make nut milk. The mango seed will be replanted, while the mango peel and the coconut husks will go back to the earth in the form of compost. My interview with Daniw is in line with my goal this month to feature women in sustainable farming and dining, as March is Women’s Month in the Philippines. As a more plant-based diet is considered more eco-friendly, I thought it would be good to get the views of a raw-food chef. It was an hourlong interview but, when I left BK, I got more than quotable quotes and a bite of that mango cake. Because Daniw did share a lot of insights—not only about food and farming but about inner healing. For what it’s worth, I was thankful for the online passportappointment snafus, as it pushed me to go to BK and in the process enjoyed its light and healing energy.

Bloomberg

By Marilou Guieb | Correspondent

armers should consider planting coffee so they cash in on in the increasing demand of Filipino consumers for the crop, Senator Cynthia A. Villar said. Villar, who is also the chairman of the Senate Committee on Agriculture and Food, noted that Philippine coffee consumption has grown to 170,000 metric tons (MT), from

only 75,000 MT in 2002. Citing data from the Philippine Coffee Board, Villar noted that local farmers can only supply around 20 percent, or 35,000 MT, of the coun-

try’s annual coffee requirement. The senator, who was one of the keynote speakers in the third Philippine Coffee Conference held in Baguio City on March 20 and 21, also noted that the Senate’s passage of the Coconut Farmers and Industry Trust Fund will help boost coffee output. Villar said the bill provides for a program that will allow the intercropping of coffee with coconut, thus expanding the land area where coffee can be grown. She noted that this will also help increase the income of 3.5 million coconut farmers who earn a meager P57 a day. Currently, there are 2 mil-

lion hectares of Philippine farms devoted to coconut. Villar said increasing the productivity of coconut farms would help cut rural poverty to about 15 percent, from the current 34 percent. She added the Philippines has a competitive advantage in coffee production, as it is only one of the few countries where the four commercial varieties—Arabica, Liberica, Excelsia and Robusta—can be grown. Villar, who also authored the Farm Tourism Development Law, said farmers growing coffee could also earn from farm tourism. She said tourism farms must have a restaurant and home stay arrangements. They can also have their areas accredited as a farm school under a government program which extends support amounting to P300,000, for 25 students enrolled in it. Those who wish to grow coffee may secure loans from a program dubbed as, “Pondo sa Pagbabago at Pag-asenso,” according to Trade Secretary Ramon M. Lopez. He noted that the financing program for small and medium enterprises (SMEs) is convenient for farmers in far-flung areas as it may accessed via mobile phone. Through the P1-billion financing program, the government hopes that SMEs would no longer have to borrow money from loan sharks that charge onerous interest rates.

PAJ, SMC, DA chief FAO, Belgium extend aid to honor top agri, to farmers in Marawi environment writers F

he country’s best agriculture and environment journalists will be honored at the 2017 PAJ-SMC Binhi Awards for agricultural and environmental journalism, on March 22, 7 p.m., at the Makati Diamond Residences, Makati City, where Agriculture Secretary Emmanuel F. Piñol will be the guest of honor and keynote speaker. The Binhi awardees will be led by the top three winners in the three major categories, namely: Agricultural journalist of the year; Environmental journalists of the year; and Agribeat reporter of the year. Winners will each receive cash prizes, ranging from P15,000 to P50,000, and Binhi trophies from the Philippine Agricultural Journalists (PAJ) and San Miguel Corp. (SMC). The PAJ has been conducting the Binhi Awards since 1978 to recognize the efforts of media persons covering the agriculture, environment and agrarian reform beats, including writers, editors and broadcast journalists for their reportage, agricultural publications, radio and television programs, and information campaign, said PAJ President Roman Floresca, and retired business editor of the Philippine Star. Piñol is expected to share the Duterte administration’s food security program, particularly in achieving rice self-sufficiency in 2019, during the event. T he Depar tment of Agr icu lture (DA) chief, a long w ith Floresca, SMC AV P for corporate and media affairs Head Mar y Jane Oconer Llanes, and Dr. Cr ispin Maslog, chair man of the five-man board of judges w il l hand over the cash pr izes and trophies to w inners of the three major and 12 minor Binhi contest categor ies. More than 150 journalists and institutions joined the contest, said Noel Reyes, PAJ vice president for internal affairs and 2017 PAJSMC Binhi Awards committee chairman. Aside from Maslog and Llanes, the other three judges are: Leo Deocadiz, publisher-editor of The SUN Hong Kong and former Philippine Daily Inquirer business editor; Ruben Pascual, managing director of RJP Consulting and former agricultural attache to the USA and Europe, and PhilExport COO; and Jimmy Cantor, deputy managing editor and concurrent sports editor of Malaya Business Insight. As a prelude to the Binhi awarding ceremonies, the PAJ and SMC will bestow a posthumous award to “Ka Louie” Tabing, founding chairman of the Philippine Federation of Rural Broadcasters, and anchor of popular early morning Sa Kabukiran radio program.

armers in Marawi City and outlying municipalities in the provinces of Lanao del Sur and Maguindanao received vegetable seeds and farming tools from the United Nations’ Food and Agriculture Organization (FAO) and the government of the Kingdom of Belgium. The FAO said in a statement that fertilizer and broiler chicken production packages were also distributed to 4,949 farming families in Marawi, Lanao del Sur and Maguindanao. The distribution of assistance was made possible by a P25-million ($500,000) contribution from Belgium through the FAO-Special Fund for Emergency and Rehabilitation Activities. “The government of Belgium and its people hope that our contribution will help ensure that those affected by the Marawi crisis are able to recover as quickly as possible,” Belgium Ambassador to the Philippines Michael Goffin said. Goffin, together with Representative in the Philippines, José Luis Fernandez, met with the government, non-governmental organizations and communities in Marawi and Iligan cities during a visit on March 19 and 20. The FAO has been closely working with the Task Force Bangon Marawi, the Department of Agriculture and Fisheries-Autonomous

Region in Muslim Mindanao, the Department of Agriculture, Mindanao Development Authority, the Department of Agrarian Reform, provincial governments of Lanao del Sur and Maguindanao, and the City Government of Marawi in restoring agriculture-based livelihoods in Marawi and surrounding areas. “We acknowledge that recovery and rehabilitation take some time, but the concerted efforts of the government, non-governmental organizations and communities are already making positive impacts to the people affected by the crisis. We must continue working together to sustain the gains we have achieved so far,” Fernandez said. “FAO’s emergency and recovery response to the Marawi crisis focuses on rehabilitating the agriculture and fisheries sector, restoring the food supply chain in affected communities, and helping farmers reclaim their lost livelihoods so that they can begin rebuilding their lives,” he added. Working closely with various partners and stakeholders, the FAO said it has also mapped out a short- to-medium-term strategic response plan to restore the food supply and agribusiness value chain in Marawi, and other affected municipalities and enable them to be better linked to regional markets.

TheBroa

Business

Thursday, March 22, 2018

Tragedy of fires: Death and de F

By Jonathan L. Mayuga

OUR years ago, Waterfront Philippines Inc. (WPI) began renovating the historic Manila Pavilion. Last year WPI President Kenneth T. Gatchalian told reporters the company put in new plumbing and technology in the hotel the company bought in 2004.

Last week, WPI’s investment went up in flames as a fire gutted the Manila Waterfront Hotel and led to the death of five people and several injuries to more than a dozen. A well-known adage may be what Gatchalian and WPI executives remember these days: “It is better to be a victim of theft 10 times than to be a victim to fire.” This well-known saying, perhaps a conviction, is based on personal experiences of many Filipinos who had suffered from disastrous and tragic fires. In the Philippines, thousands of lives and billions worth of property are lost every year because of seemingly inescapable fires, often caused by negligence and sheer apathy of its consequences. Authorities, to note, have yet to reveal if these were in the case of the Manila Waterfront Hotel blaze.

Disastrous fires

THE Philippines continues to experience disastrous fires, often marking some of the worst fire incidents in history. On May 13, 2015, a fire broke out at the Kentex Manufacturing factory in Valenzuela City, wherein 74 people were killed after being trapped inside the burning shoesand-slippers factory. It is the third worst fire incident in the Philippines after the 1996 Ozone Disco Club fire that killed 162 and the 2001 Manor Hotel fire that led to the death of 75 people. In all three cases, buildings were totally burned or destroyed, huge amounts of investment went up in smoke in a matter of hours and those who were lucky enough to escape and survive suffered the tragedy of losing their jobs, their source of income and livelihood. Fast forward to the presentday scenario, the Philippines remains washed up in fighting fire, if not preventing it from happening.

Risky business

FIREFIGHTING is a very risky business. But Filipino firefighters are among the bravest in battling blazes. Despite lacking in firefighting equipment, they are known to charge toward burning buildings while others scamper for safety. Sometimes, firefighters themselves are seriously injured, or killed, while doing their jobs. This seldom happens, thanks to proper training. The Bureau of Fire Protection (BFP), the primary agency responsible for fire prevention and fighting fire, is one of the most undermanned government agencies created for the gargantuan task of preventing fire, if not fighting fires when they do happen. The BFP’s annual appropriations also fall beyond what can be described as “desirable”. In 2017, total new appropriations for the BFP is slightly less than P13 million. The majority of this budget, about P11 million, is for personnel services, meaning salary and allowances of its personnel. The BFP’s funds last year also went to maintenance and other operating expenses (P1.5 million). Only P543,606 was

set aside as capital outlay. The budget was for the 24,095 men and women of the BFP. Of this total number of personnel, 1,086 are officers with the rank of Fire Inspector up to Director. Non-uniformed personnel, those who perform clerical or office-based duties, numbered to about 416. Often, only those with the rank ranging from Fire Officer (FO) 1 to Senior FO 4, numbering 22,593, are out in the field. Some officers are known to still “volunteer” and help out in actual firefighting activities. But not all of them are allowed to fight fire as each battle requires each of them to wear complete gear, which is not available at all times.

Resource-deficient

THE BFP is doubly short. It is short of firefighters, with the ideal ratio of 1 firefighter per 2,000 people or population. The BFP is also short of all-important fire trucks and other firefighting equipment. With its current population running up to 100 million, the Philippines needs at least 50,000 personnel doing actual firefighting on the field. Hence, the actual number of firefighters is short by more than 100 percent. Moreover, considering the vastness of the territory that requires firefighting, the BFP is short of fire stations, fire trucks, fire hoses, nozzles and breathing apparatus that could boost or enhance the BFP’s fire-fighting capability. Currently, there are 2,245 fire trucks nationwide, but only 1,958, or 87 percent, are serviceable or in working condition. Only nearly 163 are classified as unserviceable and 124 are “under repair.” The BFP is also short of “serviceable” fire hoses and nozzles. Ideally, the BFP should have 31,430 fire hoses, but based on the latest inventory, only 24,245 hoses are serviceable, leaving a shortage of 7,185 fire hoses. The ideal number of fire nozzles is 8,980, but the number of serviceable fire nozzles is 5,876, short of 3,104 units. A total of 8,980 sets of selfcontained breathing apparatus (SCBA) is the ideal number for the BFP. But the BFP only has 1,938 SCBA units, short of 7,042.

Less ideal

BFP Superintendent Joanne E. Vallejo told the BusinessMirror every city and municipality should have one fire truck. As mandated by law, there should be one fire truck per city and municipality, according to Vallejo. “We only have 2,343 fire trucks owned by the BFP and we also have 446 fire trucks owned by the LGUs,” she said. “So we have a total of 2,749 fire trucks nationwide.” Vallejo added the ideal ratio is 1 fire truck for every 28,000 persons. Every fire truck should also have 14 firefighters, according to Vallejo, the designated spokesman of BFP Chief Director Leonard R. Banago. “The ideal ratio for every firefighter is 2,000 persons,” she said. “So far, we are short of 376 activated fire stations. But not all our

RESIDENTS sift through the debris following an overnight fire that razed an informal settlers’ community by the Pasig River in Cainta, Rizal, on January 18, 2013. AP/BULLIT MARQUEZ

activated fire stations have their own fire trucks.” According to Vallejo, it also takes time to have a fire truck repaired because of the procurement law. The former fire marshal of Cauayan, Isabela, added that sometimes it takes at least six months to be able to request for a fund to become available and for fixing fire trucks. Added Fire Inspector Gabriel G. Solano, the BFP also finds it hard to schedule fire-truck repair because of a lack of qualified contractors. “Not all shops can fix a fire truck. A fire truck is no ordinary truck,” said Solano, chief of the Material Production and Development Section of the Fire Safety Information Division of the BFP. “It requires special skills to fix fire trucks.”

‘Homeless’ firefighters

AS of December 31, 2017, there are only a total of 145 fire stations in 81 provinces across the country. This number is the minimum requirement under the Fire Code of

the Philippines. Fire stations are a firefighter’s “home away from home.” There they are often required to stay overnight or are assigned on night shifts to ensure fire stations are not without a firefighter 24 hours a day. Of the 145 fire stations for cities, 51 are BFP-owned while 94 are owned by local government units (LGUs), by private individuals or institutions or other agencies. For the 1,489 municipalities across the 17 regions in the Philippines, there are only 1,113 activated fire stations for a total of 1,489 municipalities. This leaves a total of 376 municipalities without activated fire stations. Of the 1,113 fire stations, 597 are owned by the BFP while 516 are owned by the LGUs, private individuals or institutions or other agencies.

‘Landless’ stations

ACCORDING to Vallejo, some municipalities still have no fire sta-

tions of their own as the BFP has no land to construct the station. The BFP, she said, is not allowed to purchase land for such purpose. Because of that, she said the BFP relies on the generosity of the LGUs to donate the land where a fire station can be constructed. She said it will only take the BFP to request for the fund and start construction of a fire station once a deed of donation is presented by the LGU. Many fire stations in cities and municipalities continue to exist because the buildings are owned and maintained by LGUs, private individuals or institutions or other government agencies. “It is quite sad that those with fire stations are getting more of what they need than those [LGUs] with no fire stations of their own because of the land problem,” Vallejo said. “Sometimes, those with fire stations get donations for fire trucks because they already have a fire station while those with no fire stations have none.”

Response time

TO cope with the shortage of activated fire stations and fire trucks, Solano said the agency’s practice is to cluster municipalities with no activated fire stations to a municipality with the nearest town with an activated fire station. He explained that technically when a fire station is not activated, there are still municipal fire prevention officers and firefighters assigned to the area, but are attached to a mother unit. “The municipal fire prevention officer reports to the mother unit, which is usually the fire station located in another but closely situated municipality,” Solano said. The distance of a clustered municipality with no activated fire station should be within a 15-meter radius from a nearby activated fire station, he added. This is to meet the ideal response time of 5 minutes to 7 minutes from the time a fire incident is reported to the fire station. But Vallejo said such ideal re-

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estruction in the Philippines in residential areas, on the other hand, appear to have overtaken that of industrial and commercial areas.”

Firefighting strategy

VALLEJO said, generally, firefighters do not encounter problems in accessing water. “We have MOAs [memorandums of agreement] with local water districts,” she said. “In Metro Manila, we also have an adequate number of fire hydrants, so we have no problem with water.” Solano added other fire trucks are refilled with water hauled by other fire trucks. “If you notice our fire trucks are positioned one after the other, like a relay. This is because the water supply is transferred to the fire trucks in front of it just like a relay until the water reaches the one in front,” he said. Solano explained it takes only several minutes for a fire truck to run out of water considering the need to expel huge volumes of water to put out the fire as quick as possible. “This is a lot better than maneuvering each fire truck to get out of the area to refill the tanks with water,” he added. He noted that fire quickly spreads and, in a matter of minutes, say, in a residential area, one block can immediately be burned to the ground in 5 to 10 minutes. “For every second of delay, fire can quickly spread and consume. Say, in a burning building, in just 30 minutes, we can no longer save anything in that building,” Solano said. “All we can do is to let it burn to the ground and focus on the nearest establishment to prevent it from spreading.”

Fire-prone Metro

sponse time is not always met often because of a number of factors. Some of these include traffic congestion, obstruction of roads and narrow streets a fire truck needs to navigate to reach the target the area.

Prevention month

MARCH was designated as Fire Prevention Month by virtue of Presidential Proclamation 115-A s. 1966 signed on November 17, 1966, by then President Ferdinand E. Marcos, who cited an increase in fire incidents happening across the country during this month. It is during the month that the most number of fires occurs. More than half a century or 52 years later, has the Philippines learned its lessons? Not quite. According to the BFP, from March 1 to 16, a total of 633 fire incidents were recorded nationwide. This is lower by 271, or 30 percent, compared to the 904 recorded fires during the same period last year. The number of fires that broke out in the first half of the month

had so far claimed the lives of 9 people and caused injuries to a total of 31 others. Last year, a total of 10 people died during the period, with 36 others suffering from firerelated injuries. The fire that broke out at the Manila Waterfront Hotel on March 18 has claimed about three lives and injured about 19. According to the BFP, in the first two weeks of Fire Prevention Month this year, an estimated P35 million worth of property was lost, much lower compared to the P135 million estimated damage to property last year.

Daily incidents

FROM 2013 to 2017, the BFP recorded a total of 77,724 fire incidents, or an average of 15,545 fire incidents every year or 42 fire incidents a day. During the period, the total estimated damage to property reached P23.273 billion or an average of P4.65 billion every year. Also during the period, 1,257

people were killed or an average of 251 deaths every year. The number of injured persons during the five-year period reached 4,239, or an average of 848 persons suffering from fire-related injuries that could have been avoided. According to the BFP, the top three causes of fires are electrical connection, lighted cigarette butt and open flame. Fire originating from electrical connections may either be triggered by electrical overload, electrical arc or electrical short circuit. Lighted cigarette butts that caused fires are those usually indiscriminately thrown away by cigarette smokers, accidentally touching flammable material that starts a fire. Fires caused by open flames can either be triggered by torch, candle or burning gas stove left unattended. The top three fire occurrences recorded hit residential areas, industrial and mercantile or commercial buildings.

‘Human failure’

DESCRIBING the problem as deeply rooted in attitude, Vallejo said people need to learn to be aware and conscious of the consequences of negligence that may lead to a disastrous fire. She explained a lot of fire incidents could have been avoided if only people will be more cautious of the things they do. For instance, she said indiscriminately throwing a lighted cigarette butt, sleeping and leaving a lighted candle or forgetting to turn off a gas stove after cooking are the most common causes of fires. Solano said this is also the reason most fire incidents in recent years are in residential areas, or higher than in industrial or commercial areas. “We noticed that as we conducted information campaigns and tightened our inspection in industrial or commercial buildings, the number of fires involving the type of occupancy went down in recent years,” he noted. “Fire incidents

WITH a population of over 12 million people, Metro Manila has the all-time-high record of fire incidents, number of fatalities and estimated damage to property, according to the BFP. This considering the fact that among all the regions, it has more fire stations, fire trucks and uniformed and non-uniformed personnel than other regions. The National Capital Region (NCR) Office of the BFP has 3,188 personnel, including officers and non-uniformed personnel. According to SFO 1 Gladdes H. Arreco, the BFP NCR has a total of 246 fire trucks but, unfortunately, only 139 are serviceable. She said the procurement law prevents the BFP NCR from sending the unserviceable fire trucks to competent repair shops. “It takes 60 days, and that is the fastest, to have fire trucks repaired because we also have to undergo the process and it also depends on the availability of repair shops,” Arreco said. “Not all repair shops are competent or have the capacity to repair fire trucks, especially hydraulics and motor pumps.” Apparently, the number of fire stations, fire trucks, fire-fighting equipment and firefighters is still insufficient.

Volunteer brigades

ARRECO said the shortage in the number of fire trucks and firefighters is augmented by volunteer fire brigades. “Volunteer fire brigades are our force multipliers. In fact, they have more fire trucks and more firefighters than the BFP,” Arreco, who spoke on behalf of NCR Fire Chief Senior Superintendent Roel Jeremy G. Diaz, emphasized. There are a total of 813 fire brigades with a total of 4,525 volunteer firefighters in the entire NCR. These are divided into 578 fire brigades with 10,034 volunteer firefighters and 235 barangay fire brigades with 644 volunteer firefighters. Arreco, officer in charge of the BFP-NCR Public Information Of-

fice, said volunteer fire brigades are accredited and volunteer firefighters undergo training to boost their competency. “Competency training is provided to company brigades and barangay brigades for them to get competency certificates,” she said. Under the law, a company with 50 employees or workforce must have a fire brigade. But, she said in the NCR, there is very poor compliance. “Only around 20 percent to 30 percent comply in the NCR,” Arreco said.

Rescue units

ARRECO said the NCR chief is aiming to establish one rescue unit in every city and town in the NCR. So far, she said all of the five districts in the NCR have their own rescue unit but Diaz, she said, wants every city or town to have its own unit. “So far, we have a total of 185 personnel assigned to the rescue units in the five districts in Metro Manila,” Arreco said. She said firefighters will be trained how to do “difficult stunts,” such as rappelling from the top of the buildings, climbing tall buildings using ladders and ropes, breaking into windows and saving individuals trapped inside burning buildings.

Barangay Ugnayan

“IN the level of the BFP NCR, our effort is focused on fire prevention through the conduct of ‘Barangay Ugnayan’ [village network] and by encouraging community involvement,” Arreco said. The mandate of the BFP NCR is to strengthen firefighting capacities through information drive, especially in schools and communities. “Barangay Ugnayan” events pave the way for exchanges between the BFP and the communities. But she said these events happen one at a time and are held only when the NCR firefighters are “not busy” fighting fires. Arreco said just last week, as part of the observance of the Fire Prevention Month, the BFP NCR conducted a series of activities wherein all schools in Metro Manila took part. In the NCR, where there are tens of thousands of buildings that are prone to fire, Arreco said the BFP also holds fire drills as mandated by the Fire Code. Fire drills are also mandated by the Fire Code of the Philippines. These are held in schools, industrial and commercial establishments, even in public markets. Fire drills are sometimes taking place in barangays, upon the initiative of the concerned barangay officials or LGUs.

Prevention better

TO make saving lives and properties more efficient, the BFP believes prevention is the only way. “Prevention is the only way to keep the number of fire incidents and fatalities down,” Vallejo said. “That is why the BFP continuously implements information drives to raise public awareness and give safety tips to businesses, schools, dormitories and even in the barangays.” According to her, the information campaign is happening all-year round. The BFP also produces information materials it distributes in strategic areas, school buildings and even residential areas. “Sometimes, personally, I feel sad about how people disregard our warnings. Sometimes, we [firefighters] are asking ourselves, where have we gone wrong? Have we [not] done enough?” she lamented. Vallejo said every Filipino should do his or her part to prevent disastrous fires and, in the process, collectively achieve the ultimate goal of saving lives and properties.

Banking&Finance

A8 Thursday, March 22, 2018 • Editor: Jun B. Vallecera

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DBM to launch advanced electronic procurement system By Bernadette D. Nicolas @BNicolasBM

he Department of Budget and Management (DBM) will launch on Monday a more efficient public procurement system to address slowdowns and difficulties encountered by government agencies and merchants due to increased traffic with the current system. Dubbed as Philippine Government Electronic Procurement System (PhilGEPS) version 1.5, the portal is an upgraded version of the online procurement channel. It was updated with more so-

phisticated software to ensure reliability and performance. Budget Secretar y Benjamin E. Diokno said this is in line with their push for a “more streamlined and efficient

public procurement system.” “One way to secure timely and transparent use of public funds, especially with our huge P3.8-trillion budget, is by having a good electronic procurement system,” Diokno said. PhilGEPS 1.5 boasts of improved ser vices that will allow government agencies to post their bids and awards information online. Also, through the portal, registered contractors, merchants and consu ltants will be able to participate in the procurement of goods, civil works and consulting services. The DBM said PhilGEPS 1.5 is a temporary upgrade of the existing version of the electronic portal until such time that a modernized GEPS is up and running. Transition to a modern GEPS is expected to be completed next year. Awarded to the joint venture of Nextix and Nextendes in December 2017, the modern GEPS project started in

House measure seeks to improve administration of fiscal incentives By Jovee Marie N. dela Cruz @joveemarie

wo lawmakers are pushing for a measure seeking to promote investments in priority industries through a more efficient administration of fiscal incentives. Deputy Speaker Party-list Rep. Sharon S. Garin of Aambis-OWA and Party-list Rep. Rodel M. Batocabe of Ako Bicol recently filed House Bill 7364, or An Act Rationalizing the Grant and Administration of Fiscal Incentives, which seeks to streamline the design and administration of fiscal incentives to reduce tax leakages, and increase transparency and fairness for all. According to Garin, the tax reform is a legislative priority of the Duterte administration, and with this bill “we are instituting changes to the fiscal incentives regime.” “It is time that we revisited the fiscal incentives we give to foreign and local investors to make them more effective and transparent. Like any measure to promote investments, the fiscal incentives should be given to priority industries and economic activities to move our country to our desired development path,” Garin said. The lawmakers cited government estimates that the current investment tax incentive regime costs some P301 billion in foregone income tax, customs duties and value-added tax (VAT). Batocabe said the secondary objective of the measure is to align the role of the private sector with the country’s overall industrial development, which will have an impact on job generation and linkages in the value chain. He added the Philippines lags behind its regional neighbors in attracting foreign direct investments due, in part, to gaps in infrastructure, energy and government policies. “For decades, fiscal incentives were given to investors to fill in for these gaps. However, the poor design and misman-

agement of the country’s fiscal incentives regime has made it prone to systematic abuse and caused major leakages,” he said. “The types of incentives we give should help investments grow and encourage linkages with other economic sectors and industries. Incentives should generate jobs, facilitate research and development, and enable technology transfer,” Batocabe said. Based on the 2015 data of the bureaus of Internal Revenue (BIR) and of Customs (BOC) on income-tax holidays, the authors of the bill said special income-tax rates and Customs duty exemptions given to investors cost the government P104.4 billion. The leakage from VAT exemptions was bigger at P196.6 billion for the same year. “Despite generous ta x incentives, the Philippines lags behind its regional neighbors in attracting foreign direct investments. The high cost of power, poor infrastructure and flawed policies have been blamed for these gaps. However, we should not also forget that the poor design and mismanagement of fiscal incentives led to its systematic abuse and caused major revenue losses. These revenues could have been used for infrastructure and energy development, and other measures that would increase the country’s competitive advantage, particularly in the countryside,” Batocabe said. “We want to make sure that the incentives we give attract the right kind of investments and that these investments deliver positive results for the economy. We want to measure activities receiving incentives against their actual contributions,” he added. The measure said activities included in the Strategic Investments Priority Plan (SIPP) will be qualified to get incentives from the government. To be included in the SIPP, an activity must meet various criteria, among which are identification as a priority in the Philippine Development Plan or its equivalent, and inclusion in the National Comprehensive Industrial Strategy or its equivalent. Activities

implemented in the 30 poorest provinces are given preferences. Before incentives are given, qualified activities will be assessed based on the following: amount of investments; generation of full-time employment; adoption of inclusive business activities and value-added production by micro, small and medium enterprises; use of cleaner, energy-saving and other relevant new technology; installation of adequate environmental protection systems; addressing gaps in the supply/value chain and/or moving up the value chain or product ladder; stimulation of forward and backward linkages or creation of value added activities; and commercialization of ideas and introduction of innovation activities. Export activities must show capacity to earn substantial foreign exchange, and progressively increase value addition and linkages to the domestic economy. The bill said these requirements shall be reviewed every three years. The measure also limits the incentives given to enterprises in the extractives sector. Enterprises in the exploration, extraction, development or disposition of oil, gas and mining resources shall be entitled to receive incentives only if they are engaged in the intermediate processing of 100 percent of their output. Processing is meant to create linkages to the domestic economy. Garin said the bill will strengthen the accountability of incentives, putting in place reporting and transparency requirements, as well as mechanisms to monitor and evaluate the results and impact of fiscal incentives. “We want to address the complex administration of fiscal incentives. We want investment promotion agencies to coordinate among themselves and with the national government. To simplify the administration of fiscal incentives, we are proposing the reorganization and strengthening of the Fiscal Incentives Review Board [FIRB],” Garin added.

BOC signs MOA with Customs brokers to avoid delays

he Bureau of Customs (BOC) has signed a memorandum of agreement (MOA) with the Chamber of Customs Brokers Inc. (CCBI) to strengthen trade facilitation and minimize delays at the ports. This came about after consultations with port operators and the CCBI where issues on transaction delays, fraudulent valuation and enhanced trade facilitation, among others, were raised. “The absence of Customs brokers or importers often results in the delay of examination of alerted shipments,” Customs Commissioner Isidro S. Lapeña said. The MOA provides that a member of the CCBI will stand as representative of the importer, owner or its Customs broker or authorized representative during the conduct of the physical examination of goods under exceptional circumstances, such as when the importer is absent or

cannot be located. The pact provides that CCBI experts or personnel will only act as witnesses in the conduct of physical examinations as representatives of the importer, owner or its Customs brokers. “Their function shall be limited to making record or statement as to the contents of the shipment, which they observe,” he added. The Customs chief said alert orders are issued to verify the derogatory reports received by the BOC. Alerted shipments with no irregularities will be immediately released, while those with verified violations will be held accountable and will be penalized under the law. “This move will compel importers to comply with what is proper and declare the correct valuation so the government will collect its rightful revenue,” he said. It was earlier reported that, in 2010,

registered Chinese exports to the Philippines was at $11.56 billion, but Philippine imports from China as reported by the Philippine Statistics Authority (PSA) was only at $4.628 billion, resulting in a trade discrepancy of 60 percent, or $6.936 billion. For the first seven months of 2017, Chinese exports to the Philippines hit $17.77 billion, while the PSA reported imports from China at $9.24 billion, a discrepancy of 48 percent, or $8.53 billion. The Customs chief earlier reported that the wide discrepancy between China’s recorded exports and imports to the Philippines may be attributed to the gross misdeclaration or undervaluation of goods in terms of either volume or weight; and the possible use of “consignees for hire,” which leads to goods released to “hidden” traders and not to the consignees on record. Rea Cu

February and is set to be completed by June next year. Modernized GEPS will also include the Annual Procurement Plan of procuring entities, aside from the existing features of PhilGEPS. Online bid submission and payment will be made possible with modern GEPS. To facilitate requests for quotations, purchase orders and other transactions, an e-catalog will also be made available to procuring entities and merchants. Merchants may also soon be allowed to offer their items and try to outbid one an-

other through the e-Reverse Auction. Data analytics to generate statistical procurement reports may also be expected soon. The DBM has made various initiatives to improve public procurement since the start of the Duterte administration. The revised implementing rules and regulations of the government procurement reform law quickened the procurement process and made it less vulnerable to delays as it streamlined the documentary requirements for stakeholders without sacrificing the integrity of public procurement.

Case clippings

By Justice S J Ranada Jr. NOTARIZED DOCUMENTS–Forged thumbmark Documents acknowledged before a notary public are presumed to have been duly executed. This presumption may be contradicted by clear and convincing evidence. This is the case here, where, with the aid of an expert witness, the apparent thumbmarks in the Deed of Absolute Sale were contrasted with specimen thumbmarks on authentic documents, indicating disparities that lead to the conclusion that said apparent thumbmarks are forged, so that said Deed is void Tortona v. Gregorio GR 202612 17 Jan. 2018 Leonen, J

New airport Customs chief urges importers to bring in more goods

Overseas Filipino Workers coming home may bring in goods worth P10,000 without paying any tax or tariff. The new Customs Naia chief is urging importers to double their importations. NONIE REYES

By Recto Mercene @rectomercene

ewly appointed airport Customs Collector Carmelita Talusan is encouraging importers to double the volume of their imports to enable the bureau to increase its collection. She said collecting billions of pesos of revenues is next to impossible at the Ninoy Aquino International Airport (Naia) because the bulk of importations, even perishables, are done through the seaports because of lower Customs duties and taxes. Due to efficient handling of cargoes aboard vessels, fruits and vegetables and other perishable goods are now shipped in bulk inside specialized freezers, which enable them to last for a few months. The Naia Customs district is not part of the so-called multibillionaire club. Targeting imports to increase collection discourages importers, as well as business firms doing transactions with the Bureau of Customs (BOC) at the Naia. Talusan said she is optimistic that her port will be able to reach the P4-billion monthly target, or a total of P55 billion for 2018. Talusan, who formally assumed her post on Monday, replaced lawyer Vincent Philip Maronilla after he failed to meet the monthly target of P4 billion. Maronilla was appointed district collector last December. Maronilla and two other Customs port collectors who were not able to meet

their monthly quota were transferred by Customs Commissioner Isidro S. Lapeña to other ports. “I’m hoping we will be able to collect the P4-billion monthly target collection assigned to our port,” Talusan told reporters. She said she has directed some of her subordinates to encourage importers to double their importation. The BOC-Naia has regular revenue collection of taxable cargoes from accredited bonded warehouses, such as PairCargo, Philippine Airlines, Philippine Skylanders Inc., Cargo Haus, Air21, Miascor, DHL, TMW/KM, Central Mail and Exchange Center, as well as the airport Customs Passenger Service, among other sources. The so-called billionaire ports include the Port of Manila, Manila International Container Port and Port of Batangas, which collect twice or thrice more than what the airport Customs collect. Talusan said the Naia gets its duties and taxes mostly from the pharmaceutical, gadgets, raw materials of the clothing industry and some factories, including aircraft parts. Other items that are not as big as the three other important imports, (pharmaceutical, gadgets and aircraft parts) also help boost collection. But this is far from attaining the assigned target, hence her appeal to importers to double their imports. Lapeña recently warned he will replace heads of the Customs ports by more competent collectors if the ports are not performing well.

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The Regions BusinessMirror

Editor: Efleda P. Campos • Thursday, March 22, 2018

Asean to discuss human trafficking in Boracay Island POWER CASCADES Watching the crystal-clear cascades of Mapallao Falls in Quezon, Nueva Vizcaya, a man gets ready to take a daring dip into the rapids to beat the summer heat. The hilly terrain of the place is home to a number of waterfalls.

LEONARDO PERANTE II

Interagency body vows stronger protection for Tañon Strait By Jonathan Mayuga

@jonlmayuga

HE Coastal Law Enforcement Alliance in Region 7 (CLEAR 7) recently agreed to set up a multiagency, multisectoral task force to develop and implement an operational plan to minimize and eventually eradicate illegal fishing in Tañon Strait by the end of the year. CLEAR 7 is an interagency body established in 2000 to pursue a coordinated coastal law-enforcement strategy in Central Visayas, The strait is a body of water separating the islands of Negros and Cebu. It is about 161-kilometer long and connects the Visayan Sea in the north to the Bohol Sea in the south. Threatened by destructive commercial fishing, Tañon Strait is an important fishing ground in Western Visayas. Commercial fishing activities within Tañon Strait are prohibited for being part of the Tañon Strait Protected Seascape (TSPS) established by Proclamation 1234 signed by then-President Fidel V. Ramos in 1998. Roughly 28,000 artisanal fishermen and their families depend on the bounty of Tañon Strait. In a statement released through ocean-conservation advocacy nongovernmental organization Oceana Philippines, CLEAR 7 said it has agreed to appoint permanent representatives to various committees, namely, policy, monitoring, control and surveillance, and capacitybuilding. Policy committee members will develop and review interagency enforcement protocols, develop and implement an awards and recog nition system, and

document best practices. The Monitoring, Control and Surveillance Committee members will coordinate field-enforcement operations, including maintaining oversight over criminal prosecutions. The Capacity-Building Committee members will develop and implement training sessions, seminars, conferences and meetings. “This ensures cross-cutting capacity to deal with various challenges as members come from a wide range of disciplines. An enforcement plan under a recently published General Management Plan for the Tañon Strait gives enforcers guidelines for operations,” the statement said. In the same statement, Lt. Carlo Madrid, chief of Naval Civil Military Operations, said: “Illegal fishing is complex. It can only be addressed if all stakeholders work together. We have deployed gunboats and will support any enforcement agencies, including our Bantay Dagat units within the strait.” “We welcome the collaboration of all agencies in enforcing marine environmental laws. We will field personnel to ensure success,” Police Regional Office 7 Senior Supt. Julian Entoma said for his part. Through the collaboration of various stakeholders, there was a noted drop in illegal-fishing activities in the area. “Communities are reporting an increase in fish catch in the last quarter. While not yet established scientifically, fishers attribute the increase to better enforcement,” Rizaller Amolo of Rare Philippines said. The TSPS ratified a resolution last year requiring all commercial-

scale fishing vessels that pass by Tañon Strait to install a functional and approved vessel monitoring mechanism (VMM). This is to ensure that all commercial-scale fishing vessels that transit, anchor, berth and dock in the strait will not be tempted to fish within the protected area. The installation of a VMM is mandated by the Amended Fisheries Code and other pertinent regulations. CLEAR 7 members fully support the management body in its initiative to institute vessel-monitoring requirement within the strait. During the meeting, it was agreed that police units will also help disseminate information through local police stations, offices and support units found within the strait about the requirement for vessel monitoring and other environmental laws within the country’s biggest marine-protected area. “ The commitment of other coastal law-enforcement agencies in region 7 articulated in the presently passed resolutions will boost the morale of our Protected Area Office in implementing fisheries and other environmental laws to protect one of the biggest protected seascapes in the country. We welcome the translation of these laws into action through multiagency collaboration to win back the ecological integrity of this special seascape,” Tañon Strait Park Supt. Prospero Lendio said. Oceana Philippines Vice President Gloria Estenzo Ramos said these three resolutions approved by CLEAR 7 give law-enforcement agencies and artisanal fishermen a much-needed boost in fighting illegal-fishing activities.

6,000 families occupy 973-hectare landholdings in GenSan By Gerry N. Adlaw Correspondent

ENERAL SANTOS CITY— The local government unit in this city is facing a serious problem over the 973-hectare landholdings forcibly occupied by about 6,000 families by one Rodrigo Olarte who claimed to be an heir of the landed Olarte, Hermanos clan in the city. The Olarte Hermanos on record were a multifaceted commu n it y. T he f a m i l y d e r i v e s f rom t wo brot hers — A lber to and Jose—in the Philippines who lived in the early part of the 20th century. The Olarte Hermanos were said to have invested in land and formed a company known today as Olarte Herm-

naos y Cia but had lost their 973-hectare landholdings due to the alleged mismanagement of their company during the 1980s. The 973 hectares of land in this city had been developed for housing currently owned by Espina and Madarang company, a Cebu City-based investor. Since the 1980s a struggle for occupancy of the land continued with one faction, developing the land as a subdivision. It was only in 2017 until 2018 when the city government was pressured to resolve the encroachment of the land by a certain claimant. GenSan City Mayor Ronnel C. Rivera said in his official statement to the media that the encroachment of 6,000 families of the 973 hectares owned by the

family of Espina and Madarang has yet to settle the issue in the court, “but we are doing our very best to resolve the problem for both parties on a win-win solution,” Rivera said. For almost a decade, the 973 hectares was left alone. It was only recently when illegal settlers forcibly occupied the area, Rivera added. Rodrigo, who claimed to be an heir to the landholdings aid by the Espina and Madarang company, was allegedly holding a fake land title of the property. He claimed “the 973 hectares were originally owned by my family—Olarte Hermanos—and I have all the proof that these landholdings we occupy right now is owned by my elders,” Rodrigo said.

By Jun N. Aguirre | Correspondent

ORACAY ISLAND, Aklan— Senior officials of the Asean Plus Three is holding a threeday tabletop exercise that ends March 22 to discuss issues and concerns on human trafficking. Ilyne Galasinao, senior research analyst of the Philippine Center on Transnational Crimes (PCTC), said the Philippines is currently the lead shepherd of the Asean in the fight against human trafficking. At least 80 delegates composed of law enforcers with the International Police (Interpol), government prosecutors and immigration officials attended the activity. The meeting is also in collaboration with the Department of the Interior and Local Government. “ Trafficking in person is a

global scourge that contributes to the violation of human rights. Based on researches, the majority of the traffic victims are women. The Philippines is the country lead shepherd of trafficking in persons and the fight against human trafficking is one of the main thrusts of the President of the Philippines. The PCTC, in collaboration with the Department of the Interior and Local Government, headed by Assistant Secretary Nestor F. Quinsay Jr. and Senior Officers

Leader Philippines, organized this tabletop exercise,” Galasinao said. Speakers of the tabletop exercise included Bruce Kelly, team leader of the Australia-Asia Program to Combat Trafficking in Person; Director Jose Robert R. Nunez, regional director of the Office of Civil Defense; Archana Kotecha, head of the Legal Organization of Liberty Asia; Paul Buckley, regional technical assistant of the United Nations Action for Cooperation Against Trafficking in Persons; Assistant City Prosecutor Darlene R. Pajarito and Undersecretary Jimmy L. Manabat of the Presidential Anti-Organization Crime Commission. Kelly said that aside from involving women, men and children, victims are also increasing its number. Intelligence officials privy to the forum said up for discussion are illegal drugs and the case of slain overseas Filipino worker Joana Demafiles of Iloilo. Demafiles was physically abused and killed by her employer in Kuwait.

Local execs told to develop long-term DOLE stops commercial tourism plan for Panglao, Bohol

NVIRONMENT Secretary Roy A. Cimatu on Wednesday urged concerned local government officials to develop a long-term plan for Panglao, an island municipality in Bohol. While lauding the current efforts of the Bohol provincial government and other Panglao stakeholders, Cimatu underscored the need to plan for the island’s long-term development in order to ensure the sustainability of its environment. In a statement, Cimatu said just like Boracay, Panglao is one of the country’s top tourist destinations famous for its white-sand beaches and world-class diving spots. Cimatu had earlier recommended to President Duterte to close Boracay to temporarily stop tourism activities on the island. The environment chief was directed by President Duterte to lead the task force to address the environmental problems besetting the country’s top tourist destination. Boracay is an island in Malay, Aklan. Cimatu said a long-term development plan for Panglao should cover the potential influx of tourists into the island in the next 30 years. “The plans you are making are good for now. But I want to see a development plan for Panglao for the

next 30 years,” Cimatu told members of the Panglao Island and Tagbilaran Executive Council (Pitec) led by Bohol Gov. Edgar Chatto, during their meeting on Monday. Pitec is a coordinating and advisory body composed of local government executives and stakeholder representatives from Tagbilaran City and the two municipalities that make up Panglao Island: Dauis and Panglao. The council aims to facilitate the development of Panglao, especially in anticipation of the impacts of the construction of an international airport on the island. Officials of the Deparment of Environment and Natural Resources (DENR) and its Environmental Management Bureau regional office in Central Visayas presented waterquality sampling results, as well as the list of establishments violating easement laws during the meeting. The Pitec secretariat also presented policy actions and initiatives to address the island’s environmental concerns, which include a proposed wastewater-treatment facility in the world-famous Alona Beach. Cimatu commended these efforts, but warned on the expected effects that the completion of the international airport would bring. Jonathan L. Mayuga

Awards await Ilocano poets

HE Isabela-based organization of Ilocano writers Sanggir Dagiti Ilokano nga AwardeeWriters (Silaw) is inviting Ilocano poets to join its first “Silaw Literary Awards” launched in cooperation with the 1 Anak ti Ilokano, a nationwide group of professionals engaged in civic works. Vernacular writer Baldovino AB. Valdez, Silaw president, said the poetry tilt is open to campus journalists not more than 21 years old (first category) and creative writers in the dialect 22 years of age and older (second category). Based on the theme “Saving the Environment and Natural Resources,” entries must be 20 to 30 lines long, computer-encoded in double space on Times New Roman, size 12 points font. Entries must bear the writer’s pseudonym or nom de guere, but accompanied with a sealed envelope containing the author’s true name, brief bio-data, passport-sized photo,

contact number and title of the entry (original and unpublished). Entries must be sent through e-mail account rogiebaysa@yahoo. com, and should also be submitted in four hard copies with the author’s pseudonym to the secretariat, Silaw Inc. c/o Baldovino AB. Valdez, Magsaysay, Alicia, Isabela infront of the United Church of Christ. The deadline for submission is not later than the second Wednesday of May 2018. Cash prizes will be awarded to the winning entries: first prize, P6,000; second prize, P5,000; third prize, P4,000; and fourth, P3,000. Two P2,000 each consolation prizes will also be given during the Environment Month Day event on June 11 at the Lower Magat Eco-Tourism Park in Diadi, Nueva Vizcaya. 1 Anak ti Ilokano regional coordinator Roland Colobong will award the prizes. Orly Guirao

building project in Cebu City By Charles R. Pepito Correspondent

HE Department of Labor and Employment (DOLE 7) issued on Tuesday a workstoppage order against the project manager and the owner of a 4-story commercial building project located at AS Fortuna Street corner Governor M. Cuenco Avenue in Cebu City. DOLE 7 Office in charge-Regional Director Cyril L. Ticao, in a statement, said Primeview Resources Inc., the project manager and Zummerphil Construction were ordered to stop all their operations and activities within the project site until all noted deficiencies under the occupational safety and health standards (OSHS) are corrected. The DOLE received a fatal-accident report last Monday involving a laborer who fell from the fourth floor of the building to the ground and died. Victim Joseph Luna, 24, and a native of Planta Poblacion, Toleddo City, was said to be among a group of workers removing the plywood formworks when the incident happened. “In the Occupational Safety and Health Investigation or OSHI that our labor inspector conducted at the project site, we found out the plywood formworks that the victim attempted to remove were suddenly detached from the wall, causing him to lose his balance and fall to the ground floor head on,” Ticao said. At the time of the incident, the victim did not have any full-body harness, a personal protective equipment that Ticao said could have saved the former’s life while working at such heights. The investigation showed further that the building had no catch net, debris catcher and independent lifeline. “This is another unfortunate occurrence in the construction industry. We want to make it clear to all safety officers and safety practitioners in every construction site that it is their duty to make sure all unsafe conditions in the area are eliminated,” he said.

A10 Thursday, March 22, 2018 • Editor: Angel R. Calso

Opinion

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editorial

Who needs the ICC?

03222018

N the global community, there’s a general consent that all nations must be treated with equal respect. That’s not always the case. When the United States withdrew from the International Criminal Court (ICC) in 2002, just two years after President Bill Clinton signed the Rome Statute in 2000, there was no adverse reaction from global observers. In a letter delivered to UN Secretary-General Kofi Annan, the US government said: “This is to inform you, in connection with the Rome Statute of the International Criminal Court...the United States does not intend to become a party to the treaty. Accordingly, the United States has no legal obligation arising from its signature.”

Here’s another case: In 2016 Russia withdrew from the International Criminal Court under a directive signed by President Vladimir Putin. The Russian government said the ICC had “failed to meet the expectations to become a truly independent, authoritative international tribunal.” It described the ICC as “ineffective,” adding that the tribunal passed only four sentences and spent over a billion dollars during the 14 years of the court’s work. Russia also criticized the International Criminal Court’s handling of the country’s five-day conflict with neighboring Georgia in 2008, saying, “We can hardly trust the ICC in such a situation.” Still, no reaction from global observers. On March 13, 2018, President Duterte announced that the Philippines is withdrawing from the ICC’s founding treaty, the Rome Statute, because of “baseless, unprecedented and outrageous attacks” by UN officials, and ICC actions that he said failed to follow due process and presumption of innocence. Duterte said: “There appears to be a concerted effort on the part of the UN special rapporteurs to paint me as a ruthless and heartless violator of human rights who allegedly caused thousands of extrajudicial killings.” Duterte was outraged by an ICC prosecutor’s announcement last month that a preliminary examination was under way into an accusation that the President and some top officials had committed crimes against humanity in line with the government’s war on drugs. The Chief Executive said the ICC’s examination was premature, and “effectively created the impression that I am to be charged...for serious crimes falling under its jurisdiction.” Ambassador Teddy Locsin Jr., Philippine permanent representative to the United Nations, said the decision to withdraw was a “principled stand against those who politicize and weaponize human rights.” The withdrawal takes effect one year after the secretary-general receives notification, according to ICC rules. As if on cue, international jurists and activists criticized the President’s decision to withdraw from the ICC. They said the withdrawal does not insulate Duterte from a possible indictment, as the ICC’s jurisdiction retroactively covers the period during which a country was a member of the court. Amnesty International called the withdrawal “misguided” and “cowardly.” The secretary-general of the International Commission of Jurists said: “This is an embarrassing attempt to create legal cover, and a selfserving effort to avoid accountability and place himself above Philippine and international law.” O-Gon Kwon of South Korea, the president of the ICC’s member assembly, said he regretted the Philippine government’s decision. Kwon encouraged the Philippines to remain a member and “engage in dialogue” rather than withdrawing, which, he said, would hurt the court’s efforts to punish war crimes and crimes against humanity. “The ICC needs the strong support of the international community to ensure its effectiveness. I encourage the Philippines to remain as a party to the Rome Statute,” he said in a statement. Since 2005

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The cat and the stock market John Mangun

OUTSIDE THE BOX

ustrian physicist Erwin Schrödinger came up with a “thought experiment” in 1925 that is now called “Schrödinger’s cat.” Schrödinger was one of the creators of quantum theory and won the Nobel Prize in Physics in 1933, so most of what he says is way beyond the thinking of a mere mortal like me. But, simply, Schrödinger said that if you took a cat and something that could kill the cat and sealed them in a box, you would not know if the cat was dead or alive until you opened the box. Therefore, in a sense, until you looked inside, the poor cat was both alive and dead. Schrödinger’s idea was that in a theoretical sense, that is possible but in the real world it is impossible. Further, if it were possible in the physical world to be both alive and dead at the same time, by opening the box and peeking in, the observer

would conclude “alive or dead” and thereby influence the outcome of the experiment. Schrödinger devised this to counter arguments that what could happen on a small scale was meaningless on a large scale. For example, we know that water is made up of tiny drops. But the water coming out of a garden hose is a stream and if an observer looks only at the drops, they cannot see the bigger picture of the stream. Quantum theory would say that the water is both drops and a stream at the same time, which is

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outcome. When the experts are trying to keep their minions from panicking about the “dead cat,” they ignore the profitable lions right in front of them. It is easier to get the majority on the “dead cat” side of the observation. In other words, investors are always cautious. The great majority of investors are smarter than the experts give them credit for. However, on the other side, it is also always easier to think that the cat is dead if you don’t hear any sound coming from the box. Since the end of January there has been much “the cat is dead” talk and people stopped buying on what they thought they saw in the box. What you should be focusing on are individual issues. When Schrödinger left Austria just before the war, he took his wife and mistress with him where they lived all together in Ireland. Focus on making money, not the stock marketin-the-box. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

Where are the rights for the most numerous?

Editor in Chief

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theoretically true. But in real life, the water is actually one or the other depending on how you look at it. The observer changes the outcome. We spend a lot of energy trying to figure out if the stock market-inthe-box is alive or dead. One point that Schrödinger was making was that what might apply on a micro scale did not mean it applied on a macro scale; the water drops to the garden hose thing. One local stock-market expert has been saying for weeks that local stocks are falling on “fears of a US interest rate hike.” OK, but what does that mean? Are investors going to move funds to US banks to get a higher deposit rate on their savings? Are aliens (or maybe the Chinese) waiting for a rate hike to occupy Edsa? What is the connection? Schrödinger’s cat died the moment the box was opened and someone said, “The cat is dead” so for this stock-market observer, what he says is true and is undoubtedly holding 100-percent cash. For me, falling markets are always the best time to make money. This is because—like Schrödinger’s cat—the observer determines the

F both chambers are able to forge unity on the SOT issue, the widespread practice of labor-only contracting (LOC), a system where manpower agencies pretend that they are the workers’ employers when they are not, is likely to be reduced. HB 6908 reinforces the Department of Labor and Emplyment’s (DOLE) campaign against scalawag agencies. Last year Labor Secretary Silvestre Bello issued Department Order 174, which tightens the qualification rules for job contractors and pushes for stricter inspection of company practices in labor-contracting arrangements. HB 6908 makes it easier for a complainant to establish the existence of prohibited LOC. In particular, the following reason is deemed sufficient: proof that the agency has no substantial capital or proof that the agency had no control over the work process or proof that the work outsourced is directly related to the business of the employer. Under the existing provisions of the Labor Code, all these three conditions must be present, all-in conditionalities which natu-

rally favor lawyers of noncompliant agencies and employers. Two more reform measures are added: strict qualification standards (seven in all) in the licensing of agencies and nontermination of agency workers without “just cause” and due process. Still, some trade unions are not satisfied with the above House bill. They seek an outright declaration by the Legislative and the Executive branches that any form of outsourcing, job contracting and other forms

of flexible hiring arrangements, collectively dubbed as “contractualization” or “casualization,” is unlawful and should be banned outright. This is the essence of their angry complaint against President Duterte, who promised to end the endo system within months of his presidency and who promised to issue an EO ending contractualization this year. At any rate, it is clear that the trade unions, militant and vocal as they are on the rights of wage workers, have succeeded in making the endo issue a national policy issue. They have forced the DOLE to issue DO 174, which is far more restrictive than the DOs on the prohibited LOC and permitted job contracting issued by previous administrations (DO 10 under Ramos, DO 18-2 under Macapagal-Arroyo and DO 18-A under Aquino III). If HB 6908 becomes a law, this should be credited to their militant and sustained campaign to put more teeth in the government’s crackdown on the widespread abuse of job contracting arrangements. But the big question: Where are the rights for the most numerous, the workers in the huge catch basin of the labor market: the workers in the informal sector (IS) or informal economy (IE)? They account for more than half of the employed and yet they are not covered by the Labor

Code of the Philippines, which has no book or chapter dealing with the informals. The Constitution is quite explicit that all workers, without exception, are entitled to social and labor protection. Section 3, Article XIII, of the Charter states: “Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. “It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with the law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.” And yet, to date, there is no established system of recognizing and registering IS/IE workers’ organizations, there is no established system acknowledging the rights of IS/IE workers to engage in concerted activities and bargain collectively to press for their collective interests, and there is no established system See “Ofreneo,” A11

Opinion

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Thursday, March 22, 2018 A11

The Stockholm Consensus The victorious rejected king (Numbers 7-8) Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Cecilio T. Arillo

database Conclusion

. Social norms and mind-sets matter Much of traditional economics treated social norms and mind-sets as having little consequence on our economic lives. A growing body of research demonstrates that this is not so. Our values and culture are not just important in themselves, they also affect how an economy performs.

A society in which people have trust in one another does better than one in which people do not. The same set of options, when they are presented differently to people, for instance, in different order or with different default options, can make a difference to what people choose. Governments need to begin to use these new insights and new instruments to run their programs and services more effectively. Private-sector firms and corporations have long been using, and often exploiting their knowledge of human psychology and social predilections to further their own interests and profits. If governments want to deliver education and health services effectively and collect taxes fairly, our enhanced understanding of social norms has to be consciously integrated into policy-making in pursuit of the common good. Social norms and mind-sets can also play an important role in curbing corruption. This is one area where the context specificity of nations is especially important, since norms and mindsets are products of each society’s history and experience. 8. Global policies and the responsibility of the International Community Global forces increasingly frame the development policy options open to national governments. They present constraints and opportunities and are themselves, in turn, determined by actions in other countries. Monetary policy in high-income nations affects the prospects for capital flows to developing countries. Financial regulatory policies in rich countries, although in the first instance affecting these countries, ultimately have an impact on emerging and developing economies, as amply illustrated by the financial crisis of 2008. Policies and regulations on tax havens affect the capacity of all countries, and especially low-income ones, to raise revenue to finance their policies for inclusive and sustainable development. Trade policies of one nation affect the export prospects for others. Migration policies in high-income countries affect the possibilities for citizens of low-income countries to better themselves and, in doing so through remittances and knowledge transfer, help the development of their home countries. In all such cases, each country in today’s globalized world has collateral impact on others. As such, all countries have a responsibility to take account of and to advance development opportunities for the most deprived citizens of the world. Agreements and institutions, which span multiple countries, are crucial in addressing some of the most pressing problems of our times. Yet, these are the agreements and institutions which appear to be the most difficult to establish and maintain. While the Paris Agreement on Climate Change represents a good start, the world awaits implementation of commitments on emissions by all countries, and on financing of assistance by high-income countries for climate change efforts, both mitigation and adaptation, by

If governments want to deliver education and health services effectively and collect taxes fairly, our enhanced understanding of social norms has to be consciously integrated into policy-making in pursuit of the common good. Social norms and mindsets can also play an important role in curbing corruption. low-income countries. Recent years have seen a decline in development assistance from conventional sources and a proliferation of new bilateral and multilateral development institutions, not to mention the ever-elusive goal of achieving the 0.7-percent goal for official development assistance agreed to by the world community decades ago. The international community has a responsibility to ensure that assistance is directed to developing countries and marginalized groups within them, and that developing countries are better represented in the governance structures of international institutions, which will in turn ensure that international agreements and conventions are mindful of the needs of developing countries.

Looking forward

IF countries follow pragmatic policies of balancing market, state and community in addressing development challenges, and if the international community works together to relieve the constraints of global forces and take advantage of the new opportunities being afforded, the technological progress the world is experiencing can be translated into progress in well-being for all, including the most deprived. We can achieve a world with shared prosperity. The mistakes and the successes of the past suggest a set of principles around, which such policies at the national and global level could be formulated. It is now time to apply these principles systematically to the design of economic policies for development. The 13 economists who met in Stockholm, Sweden, on September 16 and 17, 2016, under the sponsorships of the Swedish International Development Cooperation Agency and the World Bank, to discuss the challenges faced by today’s economic policy-makers are Professor Sabina Alkire (Oxford), Professor Pranab Bardhan (Berkeley), Professor and former Chief Economist of the World Bank Kaushik Basu (New York), Professor Haroon Bhorat (Cape Town), Professor and former Chief Economist of the World Bank Francois Bourguignon (Paris), Professor Ashwini Deshpande (Delhi), Professor Ravi Kanbur (Ithaca), Professor and former Chief Economist of the World Bank Justin Yifu Lin (Beijing), Professor Kalle Moene (Oslo), Professor Jean-Philippe Platteau (Namur), Professor Jaime Saavedra (Lima), Nobel Laureate Professor and former Chief Economist of the World Bank Joseph Stiglitz (New York), and Professor Finn Tarp (Helsinki and Copenhagen). To reach the writer, e-mail cecilio.arillo@ gmail.com.

S our gospel reading for Passion or Palm Sunday, Saint Mark’s long passion narrative (14:1-15:47) appears to have been fashioned by him before anything else and supplemented only with the accounts of Jesus’ ministry. Its apologetics and Christological motifs stand out.

The plot, the arrest and the trial The rejection of Jesus by the chief priests and scribes plotting to kill Him and the betrayal by Judas (14:111) are in dramatic contrast to the faith in Jesus by the woman who anointed his head with expensive oil, recalling the practice of anointing Israel’s kings (1 King 1:39; 2 Kings 9:3). This anointing in Bethany sandwiched between the details of the plot manifests Jesus as truly the anointed one of God, the Messiah, but Jesus Himself linked it to His burial indicating that He would accomplish His messianic mission through suffering. The account of the Passover meal with His disciples (14:12-25) recalls the tradition that the household head blesses, breaks and explains the symbolism of the bread of affliction (Deuteronomy 16:3), revealing therefore that in

Jesus’s gift of His body and blood in the bread and wine He was already beginning His own Passover as He entrusted to His followers the food of the new Passover and of the everlasting covenant. Jesus at the beginning of His ministry wrestled with the devil in the loneliness of the desert, so now at the end He was alone again in His agony in Gethsemane as His non-comprehending disciples were asleep. Instead of friends, the betrayer with a kiss and a crowd with swords and clubs came to pick Him up. The young man who was seized together with Jesus but managed to run off naked leaving behind His linen wrap-around appears intended by Mark to signal the connection between the arrest and the empty tomb of the resurrection where the young man and the linen

cloth would again be featured. Jesus may be arrested but He could not be seized by death, for He would leave His burial cloths behind and rise from the dead. The trials of Jesus by the Jewish officials and by the Roman authorities were a travesty (14:53-65 – 15:1-15). Jesus’s silence was directly opposite to the vociferous accusation against Him of many things cooked up by His enemies. The preference by the people for Barabbas the murderer to Jesus the life-giver was total antipodes. And again sandwiched between the trials was the denial by Peter (14:66-72), the juxtaposition contrasting the fidelity of Jesus to the Father and the disloyalty of Peter to Jesus. Also, the affirmation by Jesus of His messianic titles and His tacit acceptance of His status as a king poignantly differ to the unwillingness by Peter to be known as His follower.

The cross, the death and the victory

The account of the torture and execution of Jesus is full of irony (15:16-47). He had done no evil, but He was handed over to be crucified. The soldiers mocked Him, dressed Him in royal garments and hailed Him as a king, while in truth He was king and deserved their homage. He who helped many had nobody to help Him except one forced to do so, Simon from Cyrene. He gave His everything for others, now even

The calm before the Stormy

By Frank Bruni | New York Times News Service

part from his own kin, there’s no category of person exempt from Donald J. Trump’s attacks. He has gone after past presidents of the United States, current leaders of our closest allies, stewards of his own party, senior officials in his own administration, the Latina mayor of a city freshly devastated by a hurricane, the Muslim mayor of a city just struck by terrorists, and the families of American soldiers killed in combat. But not Stormy Daniels. Where are the tantrums and tweets for her? It’s a glaring and fascinating omission. Maybe the explanation is straightforward: He doesn’t want to give her any extra motivation to speak out and describe whatever happened between them in a negative light. But when has Trump ever played the tempered pacifist before? Lawyers are no doubt urging him not to amplify her importance — and spotlight a payment to her that may have violated campaign-finance laws — by personally battling her. But he has repeatedly ignored their counsel not to rail against Robert Mueller and others who are looking into his campaign’s ties to Russia, and that’s a matter of presumably greater threat to his presidency. Meanwhile, he stays mum about a porn star who is peddling steamy secrets about him—and who is doing what he hates most, which is using him as a steppingstone to saturation fame. The interview that she gave to 60 Minutes is scheduled to be broadcast

Ofreneo . . .

continued from A10

of consultation on policies and programs that affect them. It appears that to past legislators and policymakers, “labor” simply means wage workers in the formal labor market. This is obviously the reason why “labor laws” are generally focused on the existence of “employer-employee relations” in organized establishments and on the rules governing trade union formation and collective bargaining. The IS/IE workers have become invisible based on this framework. Hence, the IS/IE workers are not covered by the Labor Code of the Philippines, which should be aptly retitled Formal Sector Labor Code. Ironically, despite decades of unionism and collective bargaining, certain labor rights are enjoyed only by a minority in the formal sector. According to the ILO

this weekend without a peep from the president (though with frantic efforts by his lawyers to quash it). His silence speaks volumes. It could say that he has more discipline than he gets credit for, and that instead of a mad, lonely king ranting in his castle, he is actually a profoundly flawed tactician playing his own pale version of chess. The salvos against Mueller last weekend absolutely had a logic: They were shirt-tailed to the firing of deputy FBI Director Andrew McCabe in the service of a corruption narrative, and they were trial balloons to see how negatively Republican leaders in Congress responded. (The unsurprising answer: not negatively enough.) Trump’s silence could also say that he isn’t actually bothered by Daniels’ account of an affair with him. This is a man whose appearances on Howard Stern’s radio show over the years were all about erotic peacocking; who bragged to Billy Bush about groping women and paid no discernible price for it; and who can apparently do anything shy of converting to Islam and not fret Manila 2017 “diagnostics on decent work,” there were 1,126 unions with collective bargaining agreements (CBAs) that covered a total 200,476 workers. Que lastima! This CBA coverage is less than half of 1 percent of the total employed of 40 million in 2017. Clearly, there is so much to be done in the formal sector in terms of organizing and recognizing workers rights. But one should not lose sight of the bigger labor market picture: The rights of the poorest and most numerous are missing and unrecognized. This is why the hearings conducted by Senate Labor Chairman Emmanuel Joel J. Villanueva are timely and important. Senate Bill 1135 filed by Sen. Grace Poe, reinforced by those filed by Senators Juan Edgardo M. Angara and Joseph Victor Ejercito, seek the establishment of a system of registering organized IS/IE workers and enterprises, a system of consultation with these

What if the enigma of what Daniels is about to say really rattles him, and his turning away from it is the telltale sign of that? The assumption has long been that his Twitter account gives us his psychic vital signs and that we can chart his distress by his diatribes. But diatribes are his norm. Deviations from them may hold more meaning.

His garments were divided as spoils by the soldiers. The nonviolent was crucified between two revolutionaries. He was reviled and taunted into taking back his sacrifice by the passers-by, his enemies and also those crucified with Him. Everything that happened was in accord with the divine plan. It was prophesied of the suffering servant that lots would be cast for his garments (Psalm 22:19), that He would be counted among the wicked (Isaiah 53:12), and mocked by the on-lookers (Lamentations 2:15). The detail of the time of His crucifixion showed that it was not haphazard. His cry to God expressed His confidence in his Father (Psalm 22:2). And the “loud cry” as He breathed his last signified the final victory over evil, the end of the reign of death and the irruption of the reign of God. Jesus died on the cross in triumph, and His real identity, the messianic secret, was dramatically revealed as the centurion concluded, “Truly this man was the Son of God!” Alálaong bagá, in the paradox of the cross, Jesus revealed Himself as our savior in victory, even as we are given the pledge that fidelity to God and goodness will never be overcome by evil. Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

about his evangelical base. Where the rest of us see reckless infidelity, he sees a buxom conquest that lesser Lotharios can only dream about. But I wonder more about the opposite. What if the enigma of what Daniels is about to say really rattles him, and his turning away from it is the telltale sign of that? The assumption has long been that his Twitter account gives us his psychic vital signs and that we can chart his distress by his diatribes. But diatribes are his norm. Deviations from them may hold more meaning. And there are reasons that he’d be rattled. His selling of himself as a super-potent stud (“Best Sex I’ve Ever Had”) is one of the pillars of his vanity, and Daniels could smash it to the ground. She didn’t quite do that in a 2011 interview with In Touch magazine, but neither did she sound remotely wowed. “Textbook generic” was how she described the sex that she said she

had with him. “He wasn’t like Fabio or anything.” He sought her assurance that he looked good on the cover of a magazine that he showed her. He confessed to the superstition that he’d lose his wealth if he changed his custard-swirl hair. He comes across as somewhat pitiable. And she has reportedly given new details and documents to 60 Minutes. Then there’s Melania. By all evidence the distance between the Trumps has widened since the surfacing of Daniels’ allegations that he had sex with her shortly after Melania gave birth to Barron in 2006, and that he told Daniels to pay his wife no heed. Every mention of Daniels must mortify Melania, and the president can’t afford that. There’s more than enough strain in their marriage and turbulence in the White House already. Besides, it’s one thing to have the lewder parts of your past aired when you’re a candidate. It’s quite another when you’re president, even a president as unconventional as Trump. And it’s worse still if a series of recent elections—in Virginia, in Alabama, in Pennsylvania—suggest that you repel women in the suburbs and they’re acting on their disgust. They won’t be soothed by an illicit romance that could be titled “Filthy Shades of Orange.” So the president ignores its release. He sits on his Twitter hands. They’re big ones, by the way. Just ask him.

workers and enterprises through the Informal Economy Development Council (national level) and Workers in Informal Employment Local Development Councils (LGU level), and a system of crafting development plans for the IS/IE in consultation with the IS/IE workers. In addition, the basic rights of the IS/IE workers, including their rights to livelihood and security at work are recognized in the proposed legislation. The bill of Poe is entitled “An Act Providing for a Magna Carta of Workers, Enterprises and Organizations in the Informal Economy.” The above Magna Carta initiative of Poe and company is not new. Through the efforts of a broad coalition of IS/IE workers organizations called Magcaisa, similar bills had been filed in the 13th, 14th, 15th and 16th Congresses. No progress. Is it not time that such an urgent bill seeking protection for the country’s most numerous be passed?

In a consultation meeting with House Labor Chairman Randolph Ting by the Magcaisa officers, the former expressed concern over the possibility that the Magna Carta shall allow informal and ambulant vendors to occupy the streets freely, thus, subverting existing jurisprudence that these streets are “beyond the commerce of man.” The reality, however, is that the Magna Carta does not promote street invasion by the informal vendors. What the Magna Carta seeks precisely is a system of policy consultation and coordination through the proposed national and local development councils for the IS/IE workers. With such a system of consultation and coordination, there will be stronger government-IS/IE worker partnership in various societal concerns, such as cleanliness, health and safety, traffic discipline, etc., as well as partnership in building a more inclusive and sustainable Philippines.

2nd Front Page BusinessMirror

A12 Thursday, March 22, 2018

Megawide proposal had Naia Consortium worried

By VG Cabuag

@villygc

Jose Manuel Reverente, the group’s spokesman, said there may be other proposals, but these mostly aim to transfer the country’s premier airport to other sites. Securing the original-proponent status will give the consortium the advantage of having its proposal reviewed first by concerned government agencies. A group led by construction f ir m Megaw ide Constr uction Corp. and its Indian partner GMR Infrastructure Ltd. also filed its unsolicited proposal to fix the Naia, which handles passengers far more than its capacity.

The Naia Consortium, however, announced its plans last year and filed its proposal late last month. “I think this is the best solution now…for the Naia problem for the short and medium term and even for the long term,” Reverente said. “The Naia will become a constraint to our economic growth and it already is [becoming an economic constraint]. It will be the single infrastructure project that will lift the tide of the economy,” he said. The Naia Consortium offered to spend some P350 billion in 35 years to rehabilitate, modernize and maintain the Naia, which is

The costs of the airportupgrade proposals of the Naia Consortium and Megawide, respectively still the country’s main gateway. The amount, however, included the P250-billion proposal to build a third runway that will be constructed on a reclaimed land. It will be operated as an independent airport. Naia Consortium’s proposal involves expanding and interconnecting the existing terminals of the Naia, upgrading airside facilities and the development of commercial facilities. All existing terminals will be expanded and rehabilitated, and will be connected to each other using what they call a people mover, or an elevated railway system that transports passengers from one terminal to another. Divided into two phases, the group’s proposal aims to increase the capacity of the Naia to about 100 million passengers per year. Actual work will take 24 more months for the first wave of immediate expansion. Further expansions are planned to meet projected passenger demand moving

forward. In 2017 the four Naia terminals, designed to handle only 31 million passengers, accommodated 42 million people. The Megawide-GMR provides a project cost of $3 billion (P150 billion at 50:$1 exchange rate) since it does not include the construction of a third runway on a reclaimed land. It also has a shorter concession period of 12 years. Quoting a study conducted some four years ago, the Naia Consortium said it needed to start the construction to rehabilitate and expand the existing terminals this year, or the airport will become a constraint to the economy. The initial phases of the rehabilitation will be completed between 2020 and 2022, while the third runway with another terminal can be done in seven to nine years, which included time for the reclamation of the site. It will be up for government approval if it wants to pursue such third runway. The seven members of the Naia Consortium are Aboitiz InfraCapital Inc., Ayala’s AC Infrastructure Holdings Corp., Andrew Tan’s Alliance Global Group Inc., Lucio Tan’s Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp.

LRWC, Galaxy secure Pagcor license for $500-M resort-casino in Boracay Continued from A1

natural beauty of the island-paradise, adding that the integrated resort will generate job opportunities for Filipinos. Earlier, Domingo pointed out that Pagcor is targeting its GGR to hit P186 billion for this year, from P170 billion in 2017, with one of the growth drivers coming from the Philippine offshore gaming operators. “For GGR, our target now is P186 billion. The gross revenues for Pagcor is different, from there we would be extracting P65 billion, and we would be contributing about 72 percent of that to the national office,” Domingo said. LRWC is a publicly listed company that has been in the forefront of the leisure and gaming industry in the Philippines. Its wide array of services includes management and operation of general amusement, recreation enterprises, hotel and gaming facilities. In February President Duterte issued a moratorium in line with the establishment of casinos in the country, noting its growing number. With this, Domingo had stopped the issuance of gaming licenses for new applicants, pointing out that it will have to let the market mature first. Rowan Aguirre, Malay local government executive assistant clarified to the BusinessMirror, that the LRWC and Megaworld casino projects have not yet been issued business or occupancy permits. “They still need to seek secure an environment compliance certificate [ECC] from the Department of Environment and Natural Resources [DENR] before we issue them the necessary permits to build their casinos,” he said. He added that, if the DENR doesn’t issue these companies an ECC, “we can’t issue them any business or construction permits.” With Ma. Stella F. Arnaldo

Coconut-oil exports on the road to recovery

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he Naia Consortium, a group composed of seven of the country’s largest conglomerates that proposed to fix the Ninoy Aquino International Airport (Naia), is now seeking original-proponent status from the government, as it faces competition from another group.

₧350B vs ₧150B

Continued from A1

However, United Coconut Association of the Philipines (Ucap) Executive Director Yvonne T.V. Agustin told the BusinessMirror that, while the price of coconut oil is continuously declining, the price of other vegetable oils is sustaining an upward trend. This, she noted, would allow consumers of other vegetable oils to shift to coconut oil due to slimmer price difference, thus, benefitting the local coconut industry. “The consumers will now have that option to choose coconut oil over other oil products, especially since consumers know the benefits of coconut oil; so that small difference would make a big change for coconut oil,” Agustin said. In October 2017 the World Bank projected that the annual average price of coconut oil per metric ton will suffer a downward trend from 2018 to 2030. In its commodities price forecast report, the World Bank noted that coconut-oil price in the world market would fall to below the $1,600-price level this year and would steadily drop to $1,400 per MT by 2030. As the average price of coconut oil declines in the world market, the price per MT of other vegetable-oil products would increase until 2030, according to the bank’s projections.

Bad raps

Aboitiz Infra Capital Inc.’s Jimbo Reverente talks to reporters during a news briefing of the consortium that promises to develop the Ninoy Aquino International Airport (Naia) into a better-quality airport in Asia. The briefing, held at a hotel in Makati City, was also attended by representatives of the companies in the Naia Consortium— Kris Anne Arasula of Metro Pacific Investment Corp., Lorna Pangilinan of Asia’s Emeging Dragon Corp., Janet Bautista of AC Infrastructure Holdings Corp., Carla Uykim of Alliance Global Inc., Terry Coronel of Filinvest Development Corp. and Jourdan Lee of JG Summit Holdings Inc. The group said that actual passenger traffic in 2017 has exceeded the Naia’s design capacity by 11 million, or 35 percent. NONIE REYES

Jews ready to do business with Filipinos, but not in PHL Continued from A1

“It is an environment issue. Manila has a very, very serious business environment, so you end up with a very serious business community. That appeals very much to foreigners: that you talk to serious people; the language is a major advantage; the cultural connection is a major advantage. It is much easier doing business [here] than in any countries in the region, like China and Vietnam, because there is a cultural barrier,” Matityau added. He also took note of the bureaucratic processes an investor has to undergo just to establish a business in the country. “You have a structural and legal environment that has to change to cater to more foreign investors [because] these people want faster investment

protection,” he said. The government is currently on its heels improving the country’s ease of doing business, especially with the Philippines sliding 14 notches to 113th in the Doing Business Report of the World Bank. The report measures the ease of doing business across 10 processes that a firm must accomplish over its average life cycle. If the government is truly eager to attract more investments, Matityau has this recommendation: “The Philippines has to also follow this path: integrate with the [Southeast Asian] region, ease up a little bit the regulations, make it easier for businesses to come and invest really without the risk of being exposed too much to the unknown.” Matityau said Israeli investors

are keen on doing business in the Philippines, given the long history of cooperation between Jews and Filipinos. During the rise of the infamous dictator Adolf Hitler, the Philippines allowed more than 1,300 Jews to take refuge in the country. The envoy said Israel will always be grateful to the Philippines for that act of solidarity. “Doing business with Filipinos is easy. It is just that doing business inside the Philippines is not,” he said. Trade activities between the Philippines and Israel saw its figures rise by 22.33 percent to $183.77 million in 2016, from $150.22 million in 2015. This made Israel the country’s 37th top trading partner among 226 countries and territories.

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As for the bad publicity thrown at CNO by other countries, Agustin said her group is confident that consumers will not be swayed anymore by misleading information on the commodity. “Consumers now are well-informed on the benefits of CNO. But that is not enough, we need studies and researches, which would formalize the benefits of coconut oil,” she said, “because even the doctors locally are looking for such evidence. They treat the benefits of coconut oil as mere gossips because of the lack of scientific studies.” Agustin added that the bad raps thrown at CNO paved the way for the scientific and academic endeavor on the real benefits of the product to human health. Last year the American Heart Association (AHA) released a report indicating that CNO consumption is unhealthy. Citing several studies, the AHA said in an advisory last June 15 that coconut oil raised LDL cholesterol just like other saturated fats found in butter, beef fat and palm oil. Increase in LDL cholesterol, which is considered bad cholesterol, is a major cause of artery-clogging plaque and cardiovascular diseases, according to the AHA. “Because coconut oil increases LDL cholesterol, a cause of CVD [cardiovascular disease], and has no known offsetting favorable effects, we advise against the use of coconut oil,” the AHA advisory read. Instead of consuming coconut oil, the AHA urged consumers to replace it with polyunsaturated or monosaturated fat, which “lowers

blood triglyceride levels”, an independent biomaker of risk for CVD. “Repl ac ing sat u rated w it h polyunsa-turated fat prevents and regresses atherosclerosis in nonhuman primates. Overall, evidence supports the conclusion that polyunsaturated fat from vegetable oils [mainly n-6, linoleic acid] reduces CVD somewhat more than monounsaturated fat [mainly oleic acid] when replacing saturated fat,” the advisory read. “Evidence has accumulated during the past several years that strengthens long-standing AHA recommendations to replace saturated fat with polyunsaturated and monounsaturated fat to lower the incidence of CVD. Reduction in total dietary fat or a goal for total fat intake is not recommended,” it added.

Counterattack

In an interview with the BusinessMirror last year, Philippine Coconut Authority Administrator Romulo J. de la Rosa said members of the Asia Pacific Coconut Communit y (A PCC), including the Philippines, will counter the negative propaganda contained in the AHA’s latest health advisor y. The decision was made during a meeting of the 18-member intergovernmental organization in July 2017 in Jakarta, Indonesia. “We urged the other APCC members that we should jointly face this [bad rap against coconut oil]. There were some suggestions, one of which is that they [APCC members], in their own national efforts, will come up to counter-campaign the study of AHA,” de la Rosa said in an inter v iew. “ We a l l ag reed to that, and we also agreed that all APCC member-countries will do further steps to address the bad publicity against coconut oil.” De la Rosa also said the bad rap against coconut oil had a minimal to less effect, particularly on Americans, due to the consumers’ knowledge and awareness on the benefits of the commodity. “So far what they [Ucap] are saying is that there has been no big impact on coconut oil, particularly there has been no actual effect in sense of sales. There has been no withdrawal of POs according to members of Ucap,” de la Rosa said. “There has been no cancellation of orders, then that means our coconut-oil exports have not been affected by the bad propaganda. That’s why we are planning to make a counteroffensive statement because their claims are basically rehashed ones,” de la Rosa added. The APCC is an intergovernmental organi-zation of 18 coconut-producing states in the AsiaPacific region, including the Philippines, which aims “to promote, coordinate and harmonize all activities of the coconut industry.” It accounts for over 90 percent of world coconut production and exports of coconut products. See “Coconut-oil,” A2