Issuu

water everywhere... but not for drinking. Boys play basketball in floodwaters from a swollen creek at a coastal village in Malabon on July 8, 2015. According to UN-Water, the United Nations interagency coordination mechanism for all freshwater-related issues, 1.8 billion people use a source of drinking water contaminated with feces, putting them at risk of contracting cholera, dysentery, typhoid and polio. World Water Day, celebrated on March 22 every year, aims to tackle the water crisis, including sanitation, water-related disasters, emergencies and other extreme events, and their impact on human security. AP/Aaron Favila

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Thursday, March 23, 2017 Vol. 12 No. 162

U.S. AGRI UNIT SEES DROP IN PHL RICE OUTPUT

Farmers to dump rice for corn when QR ends

By Jasper Emmanuel Y. Arcalas

@jearcalas

he country’s paddy-rice output could decline to below 18 million metric tons (MMT), after the quantitative restriction (QR) on rice is scrapped on June 30, according to a Global Agriculture Information Network (Gain) report.

18 MMT The projected PHL paddy-rice output in marketing year 2017-2018, according to the US Department of Agriculture

The Gain report, which was published by the US Department of Agriculture’s Foreign Agricultural Service (FAS) in Manila, noted that the expiration of the rice QR could result in the displacement of See “Farmers,” A2

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Prosperity without progress Rene E. Ofreneo

laborem exercens

rosperity Without Progress. This is the title of the book (Berkeley: University of California Press, 1984) of Norman Owen on life in the Bicol region from the last century of Spanish colonialism up to the early decades of American rule. In this period, abaca, better known then as “Manila hemp”, exploded in the world market. This ushered in a modicum of prosperity to the residents of the abaca-growing communities for nearly a century. However, after the collapse of the industry in the 1930s due to the rise of the synthetics, these communities became impoverished. There were no alternative industries and livelihoods developed during the heyday of the abaca-export boom. There was temporary prosperity for the abaca-industry participants, but no sustainable progress for the Bicol region as a whole. Continued on A10

BIR files ₧9.56-B tax case vs Mighty Corp. By Rea Cu

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Cancer treatment: Govt, patients continue to grapple with costs »A6-A7 PESO exchange rates n US 50.1640

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he Bureau of Internal Revenue (BIR) filed a P9.56billion tax-evasion case against local tobacco firm Mighty Corp. before the Department of Justice (DOJ) on Wednesday over the company’s reported use of fake tax stamps. According to the BIR, those included in the complaint were Mighty Corp. President Edilberto P. Adan, Executive Vice President Oscar P. Barrientos, Vice President for External Affairs and Assistant Corporate Secretary Alexander D. Wongchuking, and Treasurer Ernesto A. Victa. They were charged for unlawful possession of articles subject to excise tax without payment of the tax, and for possessing false, counterfeit, restored or altered stamps, in violation of Sections 263 and 265 (c) of the National

Internal Revenue Code of 1997. “As a consequence of its acts and omissions, Mighty Corp., together with its responsible corporate officers, is liable to pay an estimated aggregate excise-tax liability in the total amount of P9.564 billion,” a statement from the BIR said. The bureau is pursuing the case under its Run After Tax Evaders program. Earlier in the month, the Burea of Customs (BOC), together with examiners from the BIR, conducted raids in warehouses in General Santos City, Zamboanga, and Pampanga, which led to the seizure of cigarette packs bearing fake tax stamps. Five of the warehouses raided in the Pampanga area were reportedly subleased to Mighty Corp. The BOC and the BIR estimated revenue losses from nonpayment of excise taxes amounting to P1.1 billion, based on the value of the

As a consequence of its acts and omissions, Mighty Corp., together with its responsible corporate officers, is liable to pay an estimated aggregate excisetax liability in the total amount of P9.564 billion.”—BIR

seized products. The operation in Zamboanga City yielded 400 master cases of counterfeit smuggled cigarettes, with an estimated street value of P13.5 million. For the raid in General Santos City, the authorities were able to seize 11,044 master cases of assorted cigarettes, w ith approx imate street value of P215 million. In the Pampanga raid, 62,000 master cases, containing over P1.957 billion worth of assorted cigarettes, were seized.

The mere possession of the seized tobacco products with fake internal-revenue stamps violates the Tax Code, according to the BIR. Mighty Corp., through its legal counsel Sigfrid A. Fortun, said the company “welcomes the filing by the BIR of the complaint, as it provides us an opportunity to clear our names and show we violated no tax laws. We will continue to cooperate with the government in its continuing effort at tax collection.”

n japan 0.4491 n UK 62.6097 n HK 6.4599 n CHINA 7.2777 n singapore 35.8468 n australia 38.5661 n EU 54.2473 n SAUDI arabia 13.3771

See “BIR,” A2

Source: BSP (22 March 2017 )

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A2 Thursday, March 23, 2017

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Noise over EJKs making DOT’s work difficult By Ma. Stella F. Arnaldo

ippines “is already becoming an alternate destination [for foreign tourists].... I’m always being asked by European tour operators [about EJKs]. I always tell them it’s safe in the Philippines.” Tourism officials appointed by Duterte told the BusinessMirror, however, even since last year, they were already experiencing some difficulties in selling the Philippines, because of the President’s penchant for criticizing and lambasting the United States and Europe, both of which are major sources of tourists for the country.

“Ever y t ime he opens his mouth, ninenerbiyos na kami [we get nervous],” confessed a highranking official. “When he does that, the next day, we have to release a press statement on the developments in our agency, just to distract the public from what the President said,” the same official stressed, adding, “nahihirapan talaga kami magbenta [we really find it challenging to sell the Philippines] when he makes those statements.” The official added that media reports about the EJKs have also not helped the DOT’s cause. Duterte has taken potshots at the US and Europe, accusing them of intervening in the affairs of the Philippines, especially with regard to his administration’s measures to combat drug addiction and the illegal-drugs trade. State-inspired killings of suspected drug addicts and pushers, either by the police or by masked personnel, have reached 7,000 since the administration’s antidrug policy was put into place in July 2016. There are no pending investigations into the identities of these masked killers. The Department of Tourism (DOT) is projecting foreign visitor arrivals to reach 12 million by

2022, at the close of Duterte’s term of office as president. During the presscon in Bangkok, Teo also said twinning promotion packages will be undertaken by Thai and Filipino tour operators to help boost visitor arrivals in the Philippines. “Our promotion materials are in line with selling both countries,” said the DOT chief, when asked on the details of the tourism cooperation program between the Philippines and Thailand. “Our tour operators will sell Thailand, and Thailand will sell the Philippines [in one tour package],” she said, adding her counterpart in Thailand, Minister of Tourism and Sports Kobkarn Wattanavrangkul has promised to help send more tourists to the Philippines. She noted there were many Catholics in Thailand, for instance, who want to make pilgrimage tours to heritage churches in the Philippines. This is one of the projects, she said, both countries will be working on. Also, Teo said, Thai Silk Airways has promised to look into the possibility of flying directly to Davao and other parts of the Philippines to help increase more Thai visitors in the country. At

would end on July 31. With the projected decline in unmilled rice output, the Gain report noted that imports could double to 2 MMT during MY 2017-2018. “For rice, MY 17/18 imports are anticipated to considerably increase from the previous year’s level, due to the expected decline in local production as a result of the expiration of the QR and to replenish low stock level,” the report read. As rice farmers are expected to shift to planting corn, the report projected that local corn output could reach 8.3 MMT in MY 20172018, 2 percent higher than the 8.1 MMT estimated output in MY 2016-2017. “For MY 17/18, corn production will likely increase... due to consistent and firm feed demand by the expanding domestic livestock and poultry industries,” the report read. “In addition, some farmers are

expected to shift away from rice to corn as a result of the expiration of the QR on rice imports at the turn of MY 16/17,” the report added. With the expected increase in local corn production, the country’s corn imports could decline to 500,000 metric tons (MT) in MY 2017-2018, from 600,000 MT in MY 2016-2017, according to the report. As for wheat imports, the FAS in Manila said the Philippines could increase its purchases by 2.72 percent to 5.65 MMT in MY 2017-2018, from the 5.5 MMT it imported in MY 2016-2017. “Wheat imports are forecast to rise...due to an expanding population, economic growth and low prices,” the Gain report read. “On a long-term basis, the ongoing expansion and modernization of the local food and feed-milling industries, supported by the Philippine government’s aggressive infra-

structure-development program, are expected to ensure increased wheat consumption for both food and feed uses,” it added. Currently, there are 17 flour mills operating in the Philippines, with an aggregate milling capacity of over 5 MMT, up from 15, with an estimated capacity of 4.2 MMT in 2016. “Several mills underwent expansion in recent years, and at least two plants are scheduled for commissioning in 2017. Another two mills are expected to be commissioned in 2018,” the report read. Also, the report noted there are currently 545 registered feed mills in the Philippines, 85 percent of which are considered commercial. Citing sources, FAS in Manila said overall feed output last year reached 11.75 MMT, 3 percent higher than the 11.38 MMT produced in 2015.

@akosistellaBM Special to the BusinessMirror

OURISM Secretary Wanda Corazon T. Teo on Wednesday expressed concern that statements by local politicians and media coverage on the state-inspired extrajudicial killings (EJKs) are turning away foreign tourists who would otherwise be holidaying in the Philippines.

In a news conference in Bangkok during the state visit of President Duterte to Thailand, Teo appealed to Vice President Maria Leonor G. Robredo and the media to “tone down statements and coverage on EJKs.... It’s making my job of selling the Philippines more difficult.” This was her response to a reporter’s question if Robredo’s recent statements on EJKs that was aired in a video message at a United Nations convention was affecting visitor arrivals. Teo stressed, “I have great respect for VP Leni,” but she pointed out that the Phil-

Farmers. . .

Continued from A1

Filipino farmers. “The expiration of the QR waiver on June 30, however, may allow a surge of cheaper rice imports. This is expected to discourage and dampen investments into the rice industry, including much-needed farm credit in the form of production loans to small farmers,” the report read. “Hence, rice production is forecast to decline 3 percent from 18.5 MMT in marketing year (MY) 16/17 to below 18 MMT in MY 17/18,” it added. The USDA’s marketing year for rice begins on August 1. According to the Gain report, paddy- rice output in MY 2017-2018 could settle at 17.93 MMT, lower than the 18.52 MMT projected for the current MY 2016-2017, which

present, the airline flies to Cebu from Bangkok. “We would like to see more direct flights to the other provinces in the Philippines [from Thailand],” she said. The DOT is looking to “double” the number of Thai visitors to the Philippines to at least 70,000, Teo said. At present, Thai visitors to the Philippines were recorded at 47,913 in 2016, up 8.8 percent from 2015. In contrast, Filipinos visiting Thailand have reached 340,000 in 2016. “We have more Filipinos visiting Thailand than Thais visiting the Philippines,” she said. Manila and Bangkok have resolved to revive the 23-year-old tourism-cooperation agreement during Duterte’s state visit to Thailand. In a news statement, the DOT said Duterte and Thai Prime Minister Prayut Chan-o-Chan witnessed the signing of the Implementing Program of Tourism Cooperation 2017-2022 between Teo and Wattanavrangkul at the Santi Maitri Building of the Government House of Thailand. The implementing program is rooted in a memorandum of agreement on tourism cooperation signed in Manila between the Philippines and Thailand on March 24, 1993. Thailand is the

Govt. . .

Continued from A12

128 ‘flagship’ projects for funding. However, in 2000, reports revealed that the lack of counterpart funds and right-of-way problems caused the cancellation of 70 of these identified projects. The Neda assured this will not happen under the current administration, given the country’s financial position. “Not this time, as we are also including in project-cost estimates for ROW and Resettlement Acquisition requirements. We also have relatively much less fiscal constraints than in the 1998-2001 period, to budget for both foreign and counterpart project expenditures,” Neda Public Investment Staff Director Jonathan L. Uy told the BusinessM irror. Budget Secretary Benjamin E. Diokno told the BusinessMirror the ouster of

fourth country to sign up to a tourism-cooperation program forged by Teo. The other countries are China, Cambodia and Turkey. “The Philippines’s tourism program has been boosted by this concrete commitment for tourism cooperation with Thailand as a result of President Duterte’s fruitful state visit this week,” Teo said. She observed that the Philippines could learn much from Thailand in terms of tourism-development strategies, noting that Thailand “tops Southeast Asian countries in terms of visitor arrivals”. Visitor arrivals in Thailand have reached 30 million, lifted by tourists from mainland China. Under the agreement, officials and staff of both participants shall visit each country to build their capacity in the areas of tourism development, administration and finance, human resource, marketing and promotions, and standards and regulations. Teo said this development would also encourage tourism-educational institutes in both countries to cooperate on exchanging technical materials, sending experts to give lectures and providing information on the opportunities for tourismrelated training. former President Joseph E. Estrada was a major factor behind the cancellation of the government’s flagship projects. Diokno also said projects, particularly flagship ones, take time to develop and plan. Given that the Estrada administration lasted only two years, there was not enough time to see these projects through. “Estrada’s term was truncated. [And] there’s a long lag time between project planning and project completion,” he said. The Neda said it will disclose the flagship projects after the list has been presented to Duterte in April. The list will already include the 15 projects that will be funded by Chinese loans. The Neda estimated these will cost $6.96 billion. Three of these projects—the Chico River Pump Irrigation Project, New Centennial Water Source-Kaliwa Dam Project and North-South Railway Project—will be funded this year. The three projects are estimated to cost $3.44 billion, or some P172.42 billion. The NSRP involves the construction of a 581-kilometer standard-gauge long-haul railway from Manila to Legazpi City in Albay province. The line will also have an extension to Matnog in Sorsogon. Apart from the NSRP, Chinese loan financing will be used for the P18.724-billion New Centennial Water Source-Kaliwa Dam Project of the Metropolitan Waterworks and Sewerage System and the P2.696-billion Chico River Pump Irrigation Project of the National Irrigation Administration. The Kaliwa Dam project involves the construction of a dam and conveyance tunnel to provide 600 million liters of raw water for Metro Manila and parts of Cavite and Rizal. The Chico River Pump Irrigation Project aims to irrigate 8,700 hectares, and benefit some 4,350 farmers. It will serve 21 barangays in Tuao and Piat in Cagayan and Pinukpuk in Kalinga.

BIR. . .

Continued from A1

Internal-revenue stamps affixed on the seized cigarette packs were tested using a Taggant reader, a BIR-registered equipment used to test the authenticity of tax stamps. It confirmed that the stamps are not authentic, according to the BIR. The bureau added that the inventory of the warehouses also showed that Mighty Corp. stored 66,281 master cases containing 33,140,500 packs of cigarettes, with 87.5 percent of the said packs bearing fake internalrevenue stamps. Despite the increase in excise taxes collected by the government in 2016, which amounted to P163.5 billion, from the P158.3 billion in 2015 based on BIR preliminary data, taxes from tobacco products only amounted to P91.6 billion for the year, from P99.5 billion in 2015.

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NPA SECRETARY ARRESTED BY AFP FORCES By Catherine Joy L. Maglalang Correspondent

ORT RAMON MAGSAYSAY, Nueva Ecija—Joint elements of the 703rd Infantry (Agila) Brigade, the 56th Infantry (Tatag) Battalion and the National Police in Nueva Ecija nabbed a certain alias Isaac/Moises, front secretary of Platun Nueva Ecija-Nueva VizcayaEastern Pangasinan on Wednesday. Troops nabbed the suspect at Barangay General Luna, Carranglan, Nueva Ecija, while conducting an intel-driven combat operation, acting on the report of the local populace. The suspect was initially brought to the Municipal Police Station of Carranglan for investigation and later turned over to the Nueva Ecija Provincial Public Safety Company. Recovered from alias Isaac/ Moises were one caliber 9mm with live ammunition, one Apple laptop complete with accessories, two hand grenades, one improvised explosive device, two cellular phones, 23 USBs, 23 memory cards, 16 SIM cards, two cellular-phone chargers, one transistor radio, three pieces AA battery, two civilian packs, eyeglasses, a power bank, flashlight, documents with high-intelligence value and other personal belongings.

Editor: Dionisio L. Pelayo • Thursday, March 23, 2017 A3

DFA retracts order limiting travel agencies from processing only passport renewals

By Recto Mercene

@rectomercene

RAVEL agencies in the country are now assured that their revenue stream will remain intact after the Department of Foreign Affairs (DFA) retracted an earlier order allowing the sector to only process passport renewals. The Philippine Travel Agencies Association (PTAA), with over 500 member-travel agencies across the country and a key partner of the

government in growing the country’s travel and tourism industry, lauded the DFA decision after holding continuous discussions that started in

the fourth quarter of 2016. PTAA President Marlene Jante said even with the business operations of travel agencies evolving, processing of passports remains an important part of the services their members offer. “Passport processing, both for new applicants and renewals, contributes at least 15 percent to a travel agency’s revenue mix. You take it out and the government puts a lot of them, especially the small-sized travel agencies, at risk of closing operations,” Jante said. “We are grateful to DFA Assistant Secretary for Consular Affairs Frank Cimafranca for understanding the impact of passport processing to travel agencies. This is not just a victory for the PTAA and its members but for other travel agencies affiliated with

other organizations, as well,” she said. Since 2008 PTA A members have been handling anywhere between 1,200 and 1,800 passportprocessing applications daily. Since assuming office in January, Jante said she has been following up on regular dialogues with the DFA, started by her predecessor Maria Michelle Reyes-Victoria, to ensure travel agencies’ rights to process passport applications remain. “Before other travel organizations voiced their concerns, we were already working quietly with the DFA to resolve the issue. We have always maintained our mandate fostering unity in the travel industry, while also promoting the welfare of its stakeholders and the traveling public,” Jante said. Jante added that, under the imple-

menting rules and regulations of the Passport Act of 1996, travel agencies are legally allowed to process passport applications and ensure that all documents submitted are true, correct, genuine and authentic. “We made our position clear and the DFA realized we were correct. There is a prescreening process and travel agencies are liable if they fail to submit the proper documents to them,” she said. Jante added the PTAA will continue to work closely with the DFA to ensure all Filipinos own a passport. The PTAA has been one of the constant resource groups both Houses of Congress have approached towards a possible amendment to the Passport Act that will extend passport validity to 10 years.

CA junks group’s petition to convert Army-Navy Club into hotel-casino By Joel R. San Juan @jrsanjuan1573

HE Court of Appeals (CA) has dismissed the petition of an anti-crime group seeking the issuance of an injunction to stop the conversion of the historic Army and Navy Club in Manila into a boutique

hotel and a casino gaming facility. In a six-page resolution penned by Associate Justice Ramon Garcia, the CA’s 15th Division dismissed the petition for certiorari and prohibition filed by the Volunteers Against Crime and Corruption instantly for violating the principle on the hierarchy of courts. The appellate court noted the deci-

sion of the Manila City government to enter into an agreement with private entities for the development of the Army and Navy Club and the approval of the development by the National Historical Commission of the Philippines cannot be considered a judicial, quasi-judicial or ministerial action that can be a subject of a petition for certiorari.

“The city of Manila’s execution of the lease contract with Oceanville Hotel and Spa does not fall within the ambit of judicial, quasi-judicial or ministerial function as the same is within its prerogative, powers and authority in the exercise of its executive function. On this court alone, certiorari and prohibition will not lie,” the CA ruled.

On the petitioner’s violation of the principle on hierarchy of courts, the CA said that, while it has concurrent jurisdiction with the regional trial court in issuing the writ of certiorari, direct resort is allowed only when there are special extraordinary or compelling reasons that justify the same,” the CA said.

The Regions

A4 Thursday, March 23, 2017 • Editor: Efleda P. Campos

BusinessMirror

Mactan road-network upgrade proposed By Charles R. Pepito

Correspondent

HE Central Visayas Regional Development Council, cochaired by Cebu businessman Kenneth Cobonpue, is asking the Department of Public Works and Highways to conduct a feasibility study on the proposed Mactan roadnetwork upgrade.

This is to complement the proposed Cebu-Cordova Link Expressway (CCLEx) set to start in July after the groundbreaking ceremony held on March 2, led by President Duterte. The Metro Pacific Tollways and Development Corp. entered into a joint-venture agreement with the municipality of Cordova and the city of Cebu for the design, financing, construction, implementation, operation and maintenance of a third bridge from mainland Cebu to Mactan Island, known as the CCLEx. CCLEx includes the construction of the connections to Cebu City and Cordova, the main bridge structure,

viaduct, causeway and roadway. “To complement the proposed project, the existing road network in Cordova and Lapu-Lapu City on Mactan Island needs to be upgraded to cope with the traffic volume coming in and out of Mactan Island via the CCLEx. Thus, the conduct of a feasibility study on the Mactan road-network upgrade is proposed,” read the resolution passed during the RDC-7 Full Council meeting last March 10. The proposed Mactan road-network upgrade has several components. These include at-grade road to Cordova boundary; at-grade road to

M. Patalinghug Road to M. Patalinghug Avenue; another at-grade road to M. Patalinghug Avenue; M. Patalinghug Avenue to the airport, at-grade road using MEPZ II Road; Generation Aviation plus Quezon National Highway; at-grade road to Gabi Bridge; Day-as to Poblacion (Bantayan Road); Gabi to Catarman to Pilipog Coastal Road; Mactan Circumferential; and Punta Engaño Road. The RDC Infrastructure Development committee chaired by Cebu businessman Glenn Anthony Soco, noted the urgency of the proposed road improvements given the CCLEx is expected to be operational by 2021.

₧25/cubic ecosystem charge okayed for gravel biz in Davao del Norte By Cha Montforte Correspondent

HE Davao del Norte Provincial Board’s ways and means committee, chaired by Board Member Alfredo de Veyra III, has come up with a “win-win solution” to have the Ecosystem Service Charge (ESC), a new revenue-seeking program, approved by sand-and-gravel operators on Wednesday. The executive department of the provincial government, through its environment office, earlier sought a P100-ESC, per cubic measure, but this was assailed as excessive by sand-and-gravel permitees. During the public hearing con-

ducted by de Veyra’s committee, Dr. Condrafranca Fuentes, president of North Davao Permitees and Quarry Association, said the measure could effectively force them to close down operations. She said it is unfair they are being charged ESC, while Davao del Norte is surrounded by provinces not charging ESC. She asked that the committee reduce the rate to P15 per cubic as suggested by association members. There are around 70 sand-andgravel permitees in the province. OIC Provincial Environment Officer Romulo Tagalog said the proposed ESC of P100 per cubic is a “catch up price” for the 20 years that

the operators have been extracting sand and gravel at the expense of the environment. He said the ESC should be implemented on a “graduated scale”, adding the system has precedents in the provinces of Pampanga and Bukidnon. Negotiations on recess followed, participated in by committee members Ernesto Evangelista, lawyer Joey Millan and FABC provincial representative Mike Niez. The parties, especially the sandand-gravel permitees, agreed for an ESC of P25 per cu for the first three years, P30 per cu on the fourth year with reevaluation and P50 per cu on the fifth year.

BAD GUYS, BEWARE!

Sen. Panfilo M. Lacson (center) graces the launch of Dasmariñas City Mayor Elpidio Barzaga Jr.’s (second from left) intensified anticorruption and anticrime programs, which include the distribution of eight brand new Starex vans equipped with a tracking device and 1,500 handheld two-way radios to police and other local officials. Joining Barzaga's wife, Dasmariñas City Rep. Jenny Barzaga (right) and Fr. Ferdinand Dagcuta (left) of the Diocese of Imus who blessed the vehicles.

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PDEA seizes ₧200,000 shabu in Pampanga drug bust

NGELES CITY, Pampanga— About P200,000 worth of methamphetamine hydrochloride, or shabu, was seized, and a target-listed drug personality was arrested on Tuesday by agents of the Philippine Drug Enforcement Agency in Central Luzon (PDEA RO3) in a buy-bust operation in Barangay Santo Rosario in this city. Juvenal B. Azurin, PDEA director in Central Luzon, identified the suspect as Joey A. Avilar Jr., 28, and a resident of Barangay Pulung Bulu, Angeles City. Azurin said Avilar was in the PDEA’s target list. He said the suspect is a notorious supplier of shabu in this city and in the city of San Fernando in this province. “We had been monitoring the suspect’s illegal activity since January 2017. Luckily, we were able to pin him down after PDEA agents were able to negotiate with him for the purchase of 50 grams of shabu,” Azurin said. Confiscated from the suspect were 50 grams of shabu with an estimated street value of P200,000, buy-bust money and one blue motorcycle. The suspect is now detained in the PDEA jail facility in Camp Olivas in the city of San Fernando. He will be charged for violation of Section 5 (sale of dangerous drugs) Article II of Republic Act 9165 is being readied for filing in court. Catherine Joy L. Maglalang

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World Water Day A BusinessMirror Special Feature

Thursday, March 23, 2017 A5

Now is the time to reduce and recycle wastewater

By Leony R. Garcia

ROM Grade 2 up to high school, I saw that my family didn’t have easy access to potable, clean water being supplied by the country’s water concessionaires. The grown-up kids of the family, including myself, had to walk 500 meters or 1 kilometer with pitchers or pails on hand and endure long queue to fetch water, take a bath or wash clothes in the nearest common source of water supply. And during harried times, we were unable to attend to this share of household chore, we sufficed in taking a bath or washing clothes using water from the deep well in our front yard. We noticed that the deep well water doesn’t make our hair shine and our clothes white as compared to the water coming from the faucet. Nevertheless, we enjoyed this routine, thinking it was really how it should be. Finally, when the water supply came right to our doorsteps through the pipelines and faucet, we realized we had endured more than enough in our quest for water—from drinking and home use to other purposes. That’s why while we were enjoying our new source of clean water, we learned to economize by recycling used water: rinse water for was used for other cleaning purposes, flushing the toilet and watering plants. I had grown into this habit of using wastewater. Even now that I have my own family and the kids had grown up, we recycle every water available at home. Moreover, my husband had a concrete water tank constructed which could accommodate at least 10 drums of water. We fill this tank every two weeks after the last drop of water is consumed. Our gain? We never run out of water even on the hottest month or day when water is being supplied by Maynilad. Moreover, we pay no more than P300 for our monthly water bill.

World Water Day 2017

WITH wastewater as the theme of World Water Day 2017, I am glad that I’m doing my share in the fight against water crisis. In 1993 the United Nations General Assembly officially designated March 22 as World Water Day. World Water Day is coordinated by UN-Water in collaboration with governments and partners. The Sustainable Development Goals, launched in 2015, include a target to ensure everyone has access to safe water by 2030, making water a key issue in the fight to eradicate extreme poverty Globally, the vast majority of all the wastewater from our homes, cities, industry and agriculture flows back to nature without being treated or reused— polluting the environment, and losing valuable nutrients and other recoverable materials. Instead of disposing of wastewater, we need to reduce and reuse it. In our homes, we can reuse gray water on our gardens and plots. In our cities, we can treat and reuse wastewater for green spaces. In industry and agriculture, we can treat and recycle discharge for things like cooling systems and irrigation. By exploiting this valuable

resource, we will make the water cycle work better for every living thing. And we will help achieve the Sustainable Development Goal 6 target to halve the proportion of untreated wastewater and increase water recycling and safe reuse. World Water Day is marked on March 22 every year to raise awareness of the water crisis facing much of the world's population. The UN estimates that more than 663 million people do not have a safe water supply close to home. Instead of turning on a tap, they must spend countless hours queueing or trekking to sources of water. This water is often contaminated, putting people at risk of infectious diseases and death. Dirty water and poor sanitation can cause severe diseases in children, killing 900 under-fives every day across the world, or one child every two minutes, according to UN estimates. Among newborn babies, the World Health Organization says infections caused by a lack of safe water and an unclean environment cause one death every minute somewhere in the world.

Reduce and recycle wastewater to save the planet

WASTEWATER is any water that has been adversely affected in quality due to human activity. The vast majority of all wastewater from our homes, cities, industry and agriculture returns back to nature without being treated or reused. This causes mass pollution to the environment, while losing valuable nutrients and other recoverable materials—so, instead of wasting water, we need to reuse it. World Water Day is about taking action on water issues. It trains attention on the importance of freshwater and advocating for the sustainable management of its resources. It tackles a specific aspect of freshwater each year, raising awareness of what society can do to help make clean water more accessible. The UN target aims to help improve water quality by reducing pollution, eliminating dumping, minimizing release of hazardous chemicals and materials and to substantially increase recycling and safe reuse globally. In doing this, it will help us to achieve safe water and sanitation, affordable and clean energy, sustainable cities and communities, while improving life on land and in the sea. In our homes, gray water (relatively clean water that has been used in baths, showers, washing machines and sinks) can be used on our gardens, plants and plots. About a third of household water is used for flushing the toilet; gray water can be collected in a household-scale reuse system and treated to a standard that is suitable for toilet usage. Untreated gray water can be used for garden watering if used immediately after it is produced (soil is effective at filtering out many contaminants in gray water). In our cities, we can treat and reuse wastewater for green spaces and in our industries and agriculture,

we can treat and recycle discharge for things like cooling systems and irrigation. By using this valuable resource, we will make the water cycle work better for every living thing. It is thought that, by 2050, nearly 70 percent of the world’s population will live in cities, compared to 50 percent today, the World Water Day organization has stated. At the moment, most cities in developing countries do not have adequate infrastructure and resources to address wastewater management in an efficient and sustainable way. Cities will require new approaches to wastewater collection and management. Improved wastewater management can improve the health of workers, especially in agriculture, by reducing the risk of pathogen exposure. It can also create direct and indirect jobs in waterdependent sectors and beyond. It has been estimated that more than 40,000-60,000 kilometers of land is irrigated with wastewater or polluted water posing health risks to farmers and to eventual consumers of the agricultural products. Available technologies allow removal of almost all contaminants from wastewater, making them suitable for every use. The World Health Organization Guidelines on Safe Use of Wastewater in Agriculture and Aquaculture and the Sanitation Safety Planning approach provides a comprehensive framework to ensure that health risks are managed to protect public health. In the Philippines, programs and advocacies by both public and private sectors on water conservation and environmental sustainability are also well-thought and taken cared for. The Landbank of the Philippines has this existing projects: The Manila Bay Sunset Program Partnership and Adopt-a-Watershed. Manila Bay Sunset Program Partnership is Landbank’s flagship environmental program, created to implement a sustainable approach to protect and conserve the Manila Bay—considered one of the best natural harbors in Southeast Asia. Meanwhile, Adopt-a-Watershed is Landbank’s program, in partnership with the Department of Environment and Natural Resources, for the rehabilitation of denuded watersheds in different areas nationwide to contribute to the government’s National Greening Program. Last year, Landbank received two “Kampeon ng Katubigan” awards for championing programs for water access and environmental sustainability. Maynilad Water Services and National Water Resources Board conferred the awards for the company’s environmental programs during the

second World Water Day Awards. The annual award-giving event which served as the culminating activity of the World Water Day celebration in March, recognizes

individuals and institutions from the academe, government and non-government agencies, and the private sector that made “a difference in the area of water access

and environmental sustainability.” Landbank was nominated by DENR for the awards for the bank’s corporate social responsibility environmental efforts.

TheBroad

Business

A6 Thursday, March 23, 2017

Cancer treatment: Govt, patients O

By Rizal Raoul Reyes

NE word stopped time for Lani Eusebio in 2004: Cancer. Her doctor’s words seemed far away as the 39-year-old’s mind raced through the past.

Being diagnosed with cancer was quite a surprise because she was sure her family didn’t have history of cancer. “In my case there’s none, so it was really a shock,” Eusebio, now 52, said. She went on with her life, battling cancer every day until it went into remission for six years. But six years again later, another tumor was discovered in her left breast. “I was diagnosed with bone metastasis because it has already spread to the bone in my lower lumbar,” Eusebio told the BusinessMirror. “So right now, I’m on treatment.” The second time she was told she had cancer, Eusebio said it was easy. “Well, somehow, it was, because you already had the first one and you already know what to expect in terms of treatment.” Currently, Eusebio is still undergoing quarterly treatment complemented by strict monitoring. “I used to do mammography once a year but I repeat a sonogram twice a year.” Recalling her treatment in 2004 and 2010, she said it was painful. “It’s hard because they use your veins. Each vein is only used once,” she told the BusinessMirror. “If it’s six cycles, it means your six veins will be used. It’s never easy.”

Diagnostics

TWO years ago, medical professionals offered a flicker of hope: one-third of all cancer cases can be prevented. Three years before that, in 2012, the Philippine Cancer Society (PCS) reported that 13 out of 100 males and 14 out of 100 females in the Philippines would have had some form of cancer if they have lived up to age 75. Eleven out of 100 males and seven out of 100 females would have died from cancer before age 75, the PCS report said. “Cancer-protecting mechanisms prevent cancer,” read the PCS report authored by six medical professionals led by physician Adriano V. Laudico. “A healthy lifestyle that is started in childhood, particularly eating a healthy diet, maintaining physical fitness and minimizing properly coping with stress may decrease the risk of cancer” and other major illnesses. Nevertheless, after nearly two decades of “awareness campaigns” conducted by the public and private sectors, such as those on breast, cervix and colorectal cancers, a greater part of these cancers remain undiagnosed. Early detection or screening for cancer has not been implemented on a nationwide scale by the government, the PCS pointed out in its “2015 Philippine Cancer Facts and Estimates”.

Treatment costs

ACCORDING to Eusebio, the cost of medicine is a big factor cancer patients try to reckon with. She disclosed her family spends an average of P150,000 per treatment. “If you happened to be treated with cancer, you are expected to spend a lot.” Although medicines for treating cancer are available, they are very expensive, especially for marginalized people, according to Eusebio, who is also executive director of the I Can Serve Foundation, an advocacy group of breast-cancer survivors promoting information

on early detection. She added government assistance is needed to help the poor in treating cancer. At least the Philippine Health Insurance Corp. (PhilHealth) helps patients in diagnostic tests, Eusebio said. Right now, the government agency only comes in when a patient is confined and admitted. Still, she said she hopes PhilHealth would have a comprehensive coverage, from checkups to treatment. For her, cancer treatment is “a challenging thing, especially for the poor.” “For outpatient, they don’t cover. They don’t reimburse you for your expenses,” Eusebio said. “And for a woman to know or to confirm that she has a lump, she needs to undergo mammography and ultrasound or sonogram and these are not covered. So you have to spend, that’s why there’s a high incidence of women from poor communities who would rather not go [for treatment] because they don’t have money.”

Economics

BEING a Third World country, economics plays a big factor in battling the Big C. The PCS noted that more than 80 percent of Filipino families are not capable of out-of-pocket expenses needed for basic medical care. According to the 2005-2007 initial projections of the Philippine National Health Accounts (PNHA), total expenditure for cancer treatment as a percentage of GDP decreased from 3.4 percent in 2005 to 3.2 percent in 2007. Private out-of-pocket expenditure in 2007 was 54.3 percent of total health expenditure, with the government contributing 13.0 percent and local government units (LGUs) contributing 13.3 percent. There was also drop in the share of social insurance to 8.5 percent, from 9.8 percent in 2005. “The main national health insurance provider, PhilHealth, in cooperation with local government units, has been steadily increasing the enrolment of indigent families, and aiming to insure a large portion of indigent families and the self-employed, particularly starting but slow during the immediate past year or so with the advent of the universal health law and ‘sin’ tax law,” the report explained. Although there is a perception that there is low awareness among Filipino women in treating breast cancer, the PCS noted otherwise. The PCS said Filipinas are already aware that breast cancer is curable when detected and treated early. It added that the majority of women with detected breast lumps will have the mass biopsied if they were assured that the treatment will be free. The PCS said women take consideration of other things, not only the direct costs of treatment. “Indirect, but equally important, socioeconomic factors will have to be considered, such as transportation costs, care for the children and household while the mother is in hospital, perception and attitudes of the husband, and attitudes about perceived other ‘mandatory’ treatment, such as chemotherapy.” The PCS said institutional factors might also pose additional challenges, such as long queues and waiting times, unnecessary tests and bureaucratic regulations and procedures. “Contrary to the continuing

derLook

sMirror

www.businessmirror.com.ph | Thursday, March 23, 2017

s continue to grapple with costs

An employee of the Philippine Cancer Society (PCS) walks on the halls of the organization’s headquarters in Manila. The PCS has said that, aside from the direct costs of treatment, “indirect, but equally important, socioeconomic factors will have to be considered, such as transportation costs, care for the children and household while the mother is in hospital, perception and attitudes of the husband, and attitudes about perceived other ‘mandatory’ treatment, such as chemotherapy.” NONIE REYES

misperception that most Filipinos lack awareness that certain common cancers are curable when detected and treated early, it could be that due to socioeconomic realities, the majority actually have no choice,” the PCS pointed out.

Digitalstormcinema | Dreamstime.com

Takeda’s initiative

GABRIEL Georgy, president and CEO of Takeda Healthcare Philippines Inc., said his company is working with the government to introduce four initiatives in terms of access to medicines. The whole idea, according to Georgy, is for all stakeholders to talk and actually deliberate on how they can best overcome the challenges faced by Filipino patients. “And some of these challenges are poor infrastructure—not able to access health-care provider, especially in the provinces,” Georgy said in an interview. “Some of the challenges are not getting into a health-care facility because of distance or affordability.” The other initiative Takeda is doing is called the “Patient Access” program, he added. Under the scheme, patients will be assessed if they can afford one, two, or three vials of a particular drug and the rest will be funded by Takeda. “This is our commitment to bring more innovative drugs to Filipino patients,” Georgy said. “The other thing we’re doing is initiative code beyond medicines, so we’re not talking about medicines here.” He said the initiative aims to increase diagnosis of cancer by helping patients who cannot go to the city or to a major hospital to be diagnosed. Georgy said Takeda has partnered with the Saint Luke’s Medical Center Foundation to jump-start their cancer treatment program. Under the program, a doctor or the health-care provider in the province can just use an application on a smartphone to send a request to the pathology department at Saint Luke’s in Taguig City. After processing the request, Saint Luke’s will send them the testing kit and all the instructions and everything they need to do, according to Georgy. This enables Takeda to have an access to any data between Saint Luke’s and the health-care provider. Georgy added the company is funding actual CD30 testing and pet scans. This is a great convenience to Filipino patients, as they

don’t have to come to the city to be diagnosed, he explained. The program started this month.

Replication

GORDON Cameron of Takeda Pharmaceuticals International Inc. pointed out that sustainability is the key to the success of the program. Cameron, vice president for Asia-Pacific area and emerging markets of TPI, said the company’s program in the Philippines can serve as a great learning experience for their parent company and replicate it in other countries. “What we’re going to do is take some learnings here, adopt [these] to model to other countries in Asia Pacific to make sure that we have a sustainable program for the benefit of all the patients that need our products in [the region],” Cameron said. Georgy said the company chose the Philippines to pilot the program because “it has an ‘evolving’ health-care system”. This means there is a dearth in infrastructure and services, especially in rural areas, he explained. “This is why the program that [the company] has been experimenting in the Philippines is so important because our [company’s life is tied to] medicines,” Cameron said. Georgy noted the biggest challenge today is very low awareness of cancer and cancer treatment. Cameron, meanwhile, underscored the importance of early diagnosis to enable patients to avail themselves of the benefits of the program. “They’re very, very serious, and very, very ill patients and, obviously, that patient’s going to have a harder time responding to the medicines than patients who are diagnosed farther,” he added. “Let’s hope that this program’s going to allow not only more diagnosis, but earlier diagnosis.”

Palliative care

In September 1991 the PCS established its Patient Outreach Services, the first palliative care program in the Philippines. The 2007 Directory of the Asia Hospice Palliative Care Network shows there are 35 registered Philippine facilities, 18 located outside of Metro Manila. In the Philippines the PCS noted prescription of morphine and other strong opioids is regulated and relatively few physicians would seek to

be licensed to prescribe opioids. This condition became a major barrier in delivering effective treatment of severe pain either caused by cancer, following major operations, or many other very painful conditions, the PCS said. The PCS urged more Filipino physicians to be assertive and equip themselves to treat cancer pain. They should not only be armed with the necessary tools to do so but also compliant with government regulations.

Government program

THE Department of Health (DOH) offers medical assistance through its Breast Cancer Medicines Access (BCMA) program. Launched in May 2011, the program targets indigent Filipino women diagnosed with early-stage breast cancer. A partnership between the DOH and the PCS, the program provides free services, like early breastcancer screening, assured access to medicines and chemotherapy cycles to poor Filipinos diagnosed with Stage I to Stage III-A breast cancer. The program also provides psychosocial support for cancer patients and breast-cancer awareness drives for the general public. Health Secretary Paulyn Jean B. Rosell-Ubial said cancer care, however, does not end with the provision of free medicines. “Quality of care and ensuring patient adherence to treatment are also of great importance to improve cancer survival,” she said. All having the capacity, facilities and multidisciplinary team of experts for managing breast cancer, the DOH is currently collaborating with the following hospitals: East Avenue Medical Center, Jose Reyes Memorial Medical Center, Philippine General Hospital, Rizal Medical Center, Davao Regional Hospital and the Bicol Regional Training and Teaching Hospital. The program’s budget during its launch was estimated at only P15 million, or as much as P180,000 per patient. The health department is working with private partners to expand the scope of the program and provide access to breast-cancer treatment in the provinces. Likewise, the National Kidney and Transplant Institute (NKTI) is one with the DOH in its drive to provide better health care for all Filipinos. In 2013 the NKTI established

its own NKTI Breast Center that offers a one-stop center fully dedicated to addressing breast concerns. The clinic houses a state-ofthe-art breast-imaging center and competent specialists. Patients may now have their ultrasound, mammography, minimally invasive biopsies and procedures all in one clinic with quick turnaround time. As a firm believer in the multimodal management of breast cancer, patients of the NKTI Breast Center are assured that they are given the best management possible. Last, the NKTI Breast Center is a clinic committed to ensuring that each patient complies with the comprehensive treatment and surveillance of breast cancer.

Additional years

DESPITE her ordeal as a cancer patient, Eusebio kept a positive attitude and joined Kara MagsanocAlikpala, founder of the I Can Serve Foundation. Meanwhile, she said I CanServe is also forming a cancer coalition of different stakeholders that will present a wish list to Congress on the concerns of cancer patients in the country. “We’re in that early stage of putting together everything on our wish list, then trim it down and present it to Congress,” Eusebio said, citing Rep. Alfred Vargas and Sen. Risa Hontiveros as some lawmakers they have talked to. Eusebio is also urging the government, particularly the DOH, to adopt a proactive campaign for early breast-cancer detection, especially among the poor. “They need it, they need to be informed,” she said. “I try and show people that I’m a breast-cancer survivor and I’m well and alive; that it’s not the death sentence: life goes on.” According to her, public-health staff should go to centers in the barangay and encourage women to have themselves checked. But Eusebio emphasized that the support of the family is very important as a patient battles the Big C. A patient must, likewise, face the situation and not feel sorry about his or her condition, according to her. “Just continue living your life. Just keep praying,” Eusebio said. “I pray for additional years and I just leave it to God.” With additional report by Claudeth Mocon-Ciriaco

Thursday, March 23, 2017

The World BusinessMirror

www.businessmirror.com.ph

After China shuts out Brazil’s meat

Frozen beef stranded at sea

hang Lian has 270 tons of frozen Brazilian beef on a ship steaming toward Shanghai that he may not be able to get through customs when the vessel arrives next month. Zhang’s Shanghai Yadongsheng Import-Export Ltd. trades $200 million of meat annually, part of the global supply chain that keeps China fed. China’s decision to halt imports of Brazil’s meat until authorities are sure it’s safe has left Zhang with some worried customers. “It’s a bad situation,” said Zhang, an import manager at Shanghai Yadongsheng, which is called ADP Shanghai in English. “We’re telling customers who ordered those containers to be patient. We are advising new customers to avoid ordering Brazilian beef for the foreseeable future.” Brazil is the world’s largest beef and chicken exporter, accounting for almost a fifth of global exports, and its investigation into the possibility that some of that food is tainted has hit importers, shippers, food processors and customers around the world. Zhang’s company has 10 containers of the meat on the high seas in a Hamburg Sud Group container ship that is due to arrive in Shanghai by the end of April. The meat is destined for supermarkets and restaurants, but if the situation isn’t resolved in time, it will have to be destroyed. The crisis arose after Brazilian authorities announced on March 17 they’re investigating evidence the food producers bribed government officials to approve the sale of spoiled meat. Prosecutors said some sausages and cold cuts contained animal parts, such as pig heads, and that there were cases where cardboard was added to meat products, or acid used to mask the smell of tainted meat. It takes a month or more for meat from Brazil to reach Asian

$5.5B The volume of beef exported from Brazil in 2016, a third of which imported by China, including Hong Kong

ports, so cargoes already loaded are now in limbo. China, including Hong Kong, is the biggest export market for Brazilian meat, buying about a third of the $5.5 billion of beef shipped from Latin America’s largest economy last year, according to the meat-exporters group Abiec. Hong Kong said on Tuesday it has also temporarily suspended the import of frozen, chilled and poultry meat from Brazil. The city is a major transshipment point for meat and other goods into China. Cofco Meat Holdings Ltd., a listed unit of China’s state-run food giant, received news of the ban on Sunday and called its supplier in Brazil on Monday. Cofco told the supplier not to ship the Chinese company’s order, said Li, a woman in the company’s beef-import division who only gave her family name. She said they don’t have any containers stranded at sea. She said they’re not canceling the order until it is clear how long the dispute will last. She said the government communicated that it is currently investigating the situation and that nothing wrong has been found yet. Cofco Meat sold 107,200 tons of imported frozen meat in 2015.

Workers prep poultry at the meat-packing company JBS in Lapa, in the Brazilian state of Parana, on Tuesday. Brazil’s president said a scandal over sale of expired meat is an “economic embarrassment”. AP/Eraldo Peres

Zhang said a government order told his company that from March 19, China customs should stop accepting all Brazilian meat imports for inspection, and cargoes already accepted for inspection should not be opened. Importers can choose to leave refrigerated containers plugged in at the port until further notice.

Supermarket react

In Brazil, the nation’s biggest meatpackers are trying to limit damage from the probes. Food giants JBS S.A. and BRF S.A. took out full-page newspaper ads and paid for prime-time television spots to reassure local consumers that their meat is safe. Two executives at JBS and three at BRF are among those being investigated, the police said. Brazil ’s President Michel Temer tried to reassure ex port customers by hosting an all-youcan-eat steak dinner on Sunday for ambassadors of major buyers. The Chinese envoy sat next to him at the restaurant.

But food scares are easier to start than stop, especially in China, which has a history of scandals over tainted food. Sun Art Retail Group Ltd., China’s largest hypermarket operator with 400 outlets, said it has already removed Brazilian meat products from shelves. In Hong Kong, AS Watson Group’s PA R K nSHOP chain of supermarkets, one of the largest in the territory with 300 outlets, said on Wednesday it has also removed products from shelves and offering refunds or exchanges to customers. Brazilian meat may not be so easy for customers to identify. One importer, whose suppliers include JBS, said Brazilian beef tends to be about 10-percent to 20-percent cheaper than other imports, so is mostly sold to factories for food processing. The fresh steaks sold in supermarkets and restaurants are generally not from Brazil, he said.

Limited time

In a downtown supermarket in

Shanghai, the imported fresh beef offered comes from Australia, New Zealand, Spain and Canada. Those countries stand to benefit from Chinese demand if the ban on Brazilian meat isn’t swiftly resolved. Zhang sa id A DP Shangha i has a limited amount of time for the ban to be lifted, or it may be left with a spoiled cargo. If the cargo is blocked by customs, it could be stuck in a special bonded warehouse for cold storage, with the supplier racking up fees that could end up costing more than the meat. Chi l led meat needs to get from meatpacker to consumer in about 70 days, and meat shipped f rom Bra zi l u ses more t h a n half that time at sea, according to Asian shippers. Inspection times at the receiving port are usually four or five days, but can take two weeks for a thorough examination. Agricultural products that do not pass customs inspections are typically burned at the port, the shippers said. Bloomberg News

End of peak tourist Scotland demands independence vote in shadow of weaker econ season suggests reverse of baht rally S

f seasonal patterns are anything to go by, Thailand’s baht is set to reverse course after riding this year’s emerging-market rally. There’s “negative seasonality ahead” for the baht, HSBC Holdings Plc. strategists led by Paul Mackel in Hong Kong wrote in a research note dated on Monday. The currency tends to do well in the first quarter as tourist numbers peak and then usually loses momentum in April before weakening in May as Thai companies pay out dividends to overseas investors, they wrote. The seasonality is borne out in the baht’s performance over the last decade. The currency has risen against the dollar in the first quarter in eight of the 10 years through 2016, while falling in every May, except 2007 and 2009. Of t he world ’s 30 big gest economies, Thailand was most dependent on tourism in 2015, World Travel and Tourism Council figures show. The sector accounted for 17.7 percent of Thai gross domestic product last year, a rou nd t wo -t h i rd s of wh ic h

came from foreig n travelers, according to government data. The tourist flows often produce a swelling of the currentaccount surplus in November through March, when foreigners descend on the country’s beaches, temples and nightclubs. The excess normally narrows in April and May as dividends are disbursed to offshore shareholders, said Anchali Singh, an analyst at Kasikornbank Pcl in Bangkok. Some 90.5 billion baht ($2.6 billion) will be paid out to nonresidents over the two months in 2017, she estimated. The baht fell 0.2 percent to 34.745 a dollar, as of 9:52 a.m. in Bangkok on Wednesday, poised for its first decline in seven days. The Thai currency’s drop may be partially offset this year by positive Asian economic data and as the global view on broad dollar strength moderates. HSBC cited those reasons as it raised its second quarter forecast for the baht from 36.6 a dollar to 35.8, a level that still implies a decline of about 3 percent from the current spot rate. BloombergNews

cottish First Minister Nicola Sturgeon’s political fight for another independence referendum might just be a prelude to the economic one lying ahead. Scot l and bac ked t hose remaining in the United Kingdom by 55 percent to 45 percent in September 2014 and much of the argument on both sides focused on the economy, future currency and public finances of a new state versus the stability of keeping things as they were. Figures show growth and the budget deficit have since deteriorated, along with the oil price, but Britain’s plan to leave the European Union means the status quo is no longer on offer. “You’ve had two years of Scotland underperforming, and if that trend continues, and the oil price remains low,” maybe voters “do listen to that,” said David Owen, an economist at Jefferies International in London. Still, “what we know about the Brexit vote, Donald Trump’s election in the US and so forth is that politics often trumps economics.” Sturgeon, leader of the Scottish National Party, wants a vote toward the end of the Brexit negotiations and set out her plan to the

nation’s parliament on Tuesday. The lawmakers in Edinburgh are expected to give their consent on Wednesday, though Prime Minister Theresa May has rebuffed the idea of a referendum as she prepares to trigger two years of formal Brexit talks on March 29. After initial strength in the months following the 2014 referendum, Scotland ’s economy slowed and lagged the rest of the UK through the third quarter of last year, according to Scottish government data. More recent estimates from the University of Strathclyde in Glasgow indicate that trend may have continued in the last six months. The drop in energy prices hit investment and activity in the oil and gas industry. The Scottish government revenue from the North Sea on a geographica l basis fel l to £60 mi l lion ($75 million) in the 2015-2016 financial year, from £1.8 billion a year earlier. In the six months through September, the nation showed a loss of £279 million because of tax refunds. In the Scottish government’s blueprint for independence the last time, NorthSea revenue was forecast to be at least £6.8 billion for the cur-

rent financial year. That would have fed through to Scotland’s finances if the country had chosen independence. The budget deficit would have widened to 9.5 percent of gross domestic product (GDP) for the 2015-2016 financial year, based on the government data that shows the country as a separate entity. By comparison, the UK as a whole showed a shortfall of about 4 percent of GDP as government spending cuts took hold. Job losses in the North Sea oil and gas industry also meant Scotland’s labor market showed more volatility than the UK as a whole. One t hing t hat probably hasn’t changed much since the last referendum is the reliance of Scotland on its southern neighbor for trade. Excluding oil and gas, almost two-thirds of the nation’s £78.6 billion of goods and services sold overseas in 2015 went to customers elsewhere in the UK. Only 16 percent went to other EU countries. After Scotland voted to remain in the EU, Sturgeon wants to ensure it keeps its access to the regional bloc’s single market regardless of whether the UK pursues a “hard Brexit” and abandons it. Bloomberg News

UK tops in Europe for venture investment, allaying Brexit

he United Kingdom drew more venture-capital investment last year than the next four European countries combined, mitigating concerns that Brexit is hurting British startups’ fund-raising. Venture-capital firms plowed £6.8 billion ($8.5 billion) into Britain last year, according to an annual study released on Wednesday from Tech City UK, a London-based organization that promotes the country’s digital economy. That’s about two and a half times more than invested in France, and almost five times more than in Germany. Since its vote to leave the European Union in June, other European tech hubs have attempted to lure investment and startup talent away from Britain, which has traditionally attracted the lion’s share of funds. The new data showed these efforts have yet to gain much traction, with the UK able to increase its share of total European venture investment to 43 percent from 32 percent in 2015. London received nearly £2.2 billion in tech investment in 2016, almost twice that of the next-ranked city, Amsterdam, the report showed. Paris received just over £1 billion, while Berlin, often talked of as a rival hub to London, garnered £600 million. The UK was a relative bright spot in Europe, with venture funding for the region as a whole falling 32 percent to £15.8 billion last year.

Brexit risks

Still, the report highlighted the risks for the UK tech sector if the country cracks down on foreign workers as part of its post-Brexit policies. In London and the Southeast, almost one in three digital workers isn’t a British citizen, with more than one in 10 coming from another EU country. Nationally, 13 percent of digital workers are non-British, with 6 percent coming from the EU. Tech City UK’s members said the supply of skilled talent was their top concern for the coming year, according to survey results included in the report. “We need to maintain access to skilled workers while doubling down on home grown tech talent,” Gerard Grech, chief executive officer of Tech City UK, said in a statement. For the first time since 2012, the Tech City report showed more investment flowing to British tech hubs outside of London than to the capital, although London still received more money than any other city. Edinburgh, Cambridge, Bristol, Bath, Oxford, Manchester and Sheffield attracted the most money outside of London. “There are deep reserves of talent in tech clusters in the regions of the UK,” said Simon Calver, a partner at London-based BGF Ventures. The repor t highlighted the importance of the UK’s tech industry to the economy. Digital businesses contributed 97 billion pounds of gross value added in 2015, the latest year for which figures were available, according to the report.

Productivity boost

E co n o m i s ts —including, most recently, Andy Haldane, the Bank of England’s chief economist—fret a b o u t p o o r p ro d u c t i v i t y g ro w t h among British businesses. Average productivity per hour work has lagged behind the US, France and Germany for decades, with the gap yawning significantly ever since the 2008 financial crisis. Expanding the footprint of the UK’s tech economy might help Britain overcome this deficit. The average digital worker in the UK was twice as productive as those in other sectors, contributing £103,000 in economic value per year, the report said. And the gap has expanded 10 percent in the past five years. The technology sector produced new jobs at twice the rate of the rest of the economy, and the positions it creates pay well. The average annual salary for tech workers is now £51,000, 44-percent higher than the national average. Bloomberg News

The World BusinessMirror

www.businessmirror.com.ph

Trump warns House Republicans: Repeal health law or lose your seats

ASHINGTON—President Donald J. Trump on Tuesday turned up the pressure on recalcitrant Republicans to support a sweeping bill to overhaul the health-care system, threatening wavering lawmakers in his party with political payback if they failed to get behind a measure that has become an early test of his negotiating power. In a series of meetings and phone calls at the White House and on Capitol Hill, Trump, Vice President Mike Pence and Republican congressional leaders haggled with holdouts over details as they struggled to assemble a majority to support a bill that would repeal and replace the Affordable Care Act. The legislation is scheduled for a floor vote in the House on Thursday. But at a private meeting with House Republicans at the Capitol, the President also delivered a blunt warning that many of those present would lose their seats in next year’s midterm congressional elections if the effort failed. “I’m going to come after you,” Trump told Rep. Mark Meadows, Republican-North Carolina, a prime holdout and the chairman of the conservative Freedom Caucus, a hotbed of concern about the legislation, according to several people in the room who described his comments on condition of anonymity because the session was private. “I believe Mark and his group will come along because, honestly, a loss is not acceptable, folks.” Trump told Republicans at the meeting, after voting repeatedly to repeal the healthcare law and campaigning in 2016 on doing so, they had an obligation to back the bill and would lose their majority if they “blow it”, attendees said. Despite the day’s feverish efforts—a combination of cajoling, browbeating and horse-trading that recalled Democrats’ efforts to pass the law in 2010—White House and congressional officials conceded on Tuesday that they still lacked the votes to pass the bill. As many as three dozen Republicans remain opposed or unpersuaded, according to one aide with knowledge of the process, who spoke on condition of anonymity to describe internal discussions. It is not clear whether Trump would be able to exact a political price from Republicans who opposed the measure; conservative groups, including the Club for Growth and Heritage Action for America, were lining up against the legislation and pressuring lawmakers to oppose it, raising questions about whether it would be possible to mount a successful primary challenge to defectors. And some Republicans said the political peril would be greater if they supported the health-care bill, which they said failed to achieve their goals, or those of their constituents. “I think if we do this, we lose the majority,” said Rep. Mo Brooks, RepublicanAlabama, and a member of the Freedom Caucus, who said he remained opposed. Rep. Leonard Lance, RepublicanNew Jersey, one of the nearly two-dozen Republicans from districts that Trump lost in 2016, said he was leaning strongly toward a “no” vote. “I campaigned in support of a repealand-replace bill that would make health-care more affordable and accessible and provide a smooth transition to those who were forced into Obamacare through no fault of their own,” Lance said. “The bill, as currently drafted, does none of these things.” It is also not clear whether Trump, whose popularity has fallen from what was already a historically low point since he took office, is capable of rallying the public behind a plan that is also viewed negatively. Trump’s approval rating sank to 37 percent in Gallup’s daily tracking poll on Monday. That is only slightly higher than the 34 percent who favor the health measure, according to a Fox News poll last week, compared with 54 percent who were opposed. The use of a political threat was a classic tactic for Trump, who keeps a running mental tally of his backers and detractors, and frequently boasts of his efforts to exact revenge from those who have crossed him. “We’re going to make sure to remember those who stood by us, and who stood by the word that they gave to their voters,” said Sean Spicer, the White House press secretary. Trump has not focused on the specifics of the health-care bill, arguing in recent days that he is more concerned with pushing it through Congress, so he can move on to issues he cares more about, including a large tax cut. New York Times News Service

Thursday, March 23, 2017

Devices banned on airplanes from 10 countries over IS fears

ASHINGTON—Intelligence showing that the Islamic State (IS) is developing a bomb hidden in portable electronics spurred the United States and Britain on Tuesday to bar passengers from airports in a total of 10 Muslimmajority countries from carrying laptop computers, iPads and other devices larger than a cell phone aboard direct inbound flights, two senior US counterterrorism officials said.

Two additional US officials said the explosives were designed to be hidden in laptop batteries. All four spoke on condition of anonymity as they were not authorized to publicly discuss the sensitive information. T he Trump administration maintained that the new restrictions did not signal a credible, specific threat of an imminent attack. Officials said the alert reflects concerns that the IS is ready—or soon will be—to launch new capabilities against the West. Sean Spicer, the White House press secretary, declined to address the intelligence during a news media briefing on Tuesday. Officials said passengers still could carry cell phones and other small devices into the airplane’s cabin, while larger items like laptops would have to be stowed with checked luggage. In all, airports in 10 countries—stretching from North Africa to the Mideast and into Turkey—are affected by the new restrictions. Both the United States and Britain have imposed the ban on flights from some airports in Egypt, Jordan, Saudi Arabia and Turkey. Washington also has restricted some flights from Kuwait, Morocco, Qatar and the United Arab Emirates. London, meanwhile, has additionally restricted flights from some airports in Lebanon and Tunisia. The targeting of a jetliner using explosives shows how the IS, which has long worked to inspire terrorist attacks, is trying to compete with groups like al-Qaeda’s affiliate in Yemen. The Qaeda affiliate has spent years inventing explosives that are difficult to detect, including trying to disguise bombs in devices like cell phones. Now US intelligence officials believe the IS has also developed explosives that can be hidden in electronic devices, one of the senior counterterror officials said. Rep. Peter King, RepublicanNew York, who sits on the House

The estimated number of flights into the US that would be affected each day

Intelligence and Homeland Security committees, said government officials had called him last Saturday to alert him to the impending ban. “It was based on intelligence reports that are fairly recent,” King said in a telephone interview. “Intelligence of something possibly planned.” The Department of Homeland Security said the restricted items on flights to the United States included laptop computers, tablets, cameras, travel printers and games bigger than a phone. The restrictions would not apply to aircraft crews, officials said in a briefing to reporters to outline the terms of the ban. The US ban on electronics applies only to flights on foreign carriers. It does not affect US-operated airlines, since they do not fly directly to the United States from 10 designated airports in eight countries—Amman, Jordan; Cairo; Istanbul; Jidda and Riyadh in Saudi Arabia; Kuwait City; Casablanca, Morocco; Doha, Qatar; and Dubai and Abu Dhabi in the United Arab Emirates. Officials did not say how long the ban would remain in place or if other airports would be added. In all, an estimated 50 f lights each day into the United States would be affected. One of the world ’s busiest airports, in Abu Dh abi , a l ready requ i res US bound passengers to undergo strict screening by United States customs officials before boarding f lights. Abu Dhabi is one

A laptop is used on a plane. Britain’s government on Tuesday banned electronic devices in the carry-on bags of passengers traveling to the United Kingdom from six countries, following closely on a similar ban imposed by the United States. Chris Ison/PA, File via AP

of 15 airports in the world to employ the Homeland Security preclearance techniques. Several hours after the US action, the British government announced its own ban on electronic devices on flights. The British ban affects domestic and foreign airlines, including British Airways, the country’s largest. Foreign airlines affected by the order include Turkish Airlines, EgyptAir and Royal Jordanian, among others, and it affects direct flights to the United Kingdom from Turkey, Lebanon, Jordan, Egypt, Tunisia and Saudi Arabia. A British official said the UK ban resulted from the combination of an evolving threat picture and a proliferation of electronic devices that airline passengers carry on board. Examples of attacks by extremist groups against transportation hubs over the past two years include the October 2015 bombing of an airliner in Egypt, the attempted airliner downing in Somalia last year, and armed attacks against airports in Brussels and Istanbul in 2016. The new bans on electronic devices have prompted a round of protests from passengers who now face the prospect of flying long hours without the use of laptops or tablets. Banu Akdenizli, an associate professor of communication at Northwestern University’s campus in Doha, complained the ban

would affect her ability to work during a long flight to Greensboro, North Carolina, for a conference in April. “This is a 20-hour flight,” she said. “I think as an academic or any business traveler, the function of a work flight is to be able to work on it, especially if you’re going to a conference.” Osama Sharshar, a prominent Egyptian lawmaker and journalist who frequently travels to the US, was critical of the changes and suggested President Donald Trump issued the order simply to “please the right-wing extremists in America”. “It will terribly affect me as a journalist, a lawmaker and a regular Egyptian,” he said. “I work on planes all the time. And the flight to the States is very long.” The Homeland Security Department’s new ban appeared to take officials from some of the affected countries by surprise. Ahmet Arslan, Turkey’s transport, maritime and communication minister, said the ban would be harmful to the United States’ airline industry—and to Turkey’s. “Our problem is not how the practice would take place,” Arslan said. “The issue is it can decrease the comfort of the passengers and reduce the numbers of passengers. We are emphasizing that this is not in the benefit of passengers, and we think that they should step back from this or ease it.” Cou nter ter ror i sm e x per t s seemed equally divided over the

need for the device ban. Michael Chertoff, the former Homeland Security secretary, said the new policy made sense, given the threats to aircraft from explosive devices and concerns about screening at the targeted airports. “The challenge is to balance security without making it impossible to fly,” Chertoff said. But Erroll Southers, director of the Homegrown Violent Extremism Studies Program at the University of Southern California, said the new guidance would do little to enhance security. “This does little to minimize the threat of a remote-controlled IED [improvised explosive devices],” he said, referring to improvised explosive devices hidden in checked baggage. US intelligence officials did not cite threats against domestic airports, but one said the Transportation Security Administration (TSA) has been on heightened alert at several airports. It was not clear if that alert was related to the new restrictions on electronic devices. The restrictions follow other recent changes the TSA has made in aviation security. Two weeks ago the agency adopted enhanced pat-down searches for passengers at US airports, a response to what it said were weaknesses in airportscreening measures. Under the new rules, passengers will no longer be allowed to choose what type of searches they undergo in security lines. New York Times News Service

North Korea’s latest missile test fails–US, South Korea

EOUL , South Korea— North Korea’s latest missile launch ended in failure on Wednesday, the United States and South Korean militaries said, three days after the North claimed a major breakthrough in its rocket-development prog ram. T he reported l au nc h fa i lu re comes a s t he North is angrily reacting to ongoing annual US-South Korean military drills that it views as an invasion rehearsal.

Earlier this month North Korea fired four ballistic missiles that landed in waters off Japan, triggering strong protests from Seoul and Tokyo. The American militar y detected what it assessed as a failed North Korean missile launch on Wednesday morning, the US Pacific Command said in a statement. It said the missile “appears to have exploded within seconds of launch”. South Korea’s Defense Ministry said it also believes the launch

from the eastern coastal town of Wonsan ended in failure. It said it was analyzing what type of missile was launched. The failure might mean that the missile is a newly developed one the North has not deployed, according to South Korean media. Last year the country suffered a series of embarrassing failed launches of its new mediumrange Musudan missile before it successfully test-fired one. A merican defense officials

had said on Tuesday that the US military was expecting another North Korean missile launch in the next several days. The officials said the US had increased its surveillance over the North and had detected a North Korean missile launcher being moved, as well as the construction of VIP seating in Wonsan. North Korean state media said Sunday it had conducted a ground test of a new type of high-thrust rocket engine, which it hailed as a breakthrough

for the country’s space program. Washington, Seoul and others view the North’s space program as a cover for its banned long-range missile-development program. North Korea is pushing hard to upgrade its weapons systems to cope with what it calls US hostility. Many weapons experts say the North could have a functioning nuclear-tipped missile capable of reaching the continental US within a few years. North Korea carried out two nuclear tests last year. AP

A10 Thursday, March 23, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Kadamay magnifies our housing problem

N March 8 members of the urban-poor group Kalipunan ng Damayang Mahihirap (Kadamay) illegally occupied idle government housing projects in Bulacan. These housing units were intended for low-salaried uniformed personnel of the Armed Forces of the Philippines, Philippine National Police, Bureau of Fire Protection and the Bureau of Jail Management and Penology. Some of the units they seized were built by the National Housing Authority (NHA) for informal-settler families living along waterways and danger zones in the metropolis.

Kadamay leaders said they decided to occupy the idle houses because the government’s housing agencies have been ignoring their applications for free housing for the longest time. But their illegal occupation deprives the intended awardees of their right to government housing assistance. And the NHA said it will never allow any mob rule in its housing projects. Kadamay’s occupation of government housing units reminds us of a statement made by former Hawaii governor and housing advocate Linda Lingle: “We have come dangerously close to accepting the homeless situation as a problem that we just can’t solve.” Although this statement was made about the American housing crisis in the 20th century, it painfully hits close to home, given our current housing problem. The National AntiPoverty Commission (NAPC), an agency under the Office of the President, said the country’s housing backlog, caused by the failure of the housing programs of past administrations, has already escalated into a humanitarian crisis. “There is an urgent need for a comprehensive mass-housing program to guarantee the right to decent shelter for the poor,” NAPC Secretary Liza L. Maza said. President Duterte labeled Kadamay’s action to occupy idle government housing units in Bulacan as a form of anarchy. He has issued a strong warning for them to leave the premises or face the full force of the law: “If you want to ignore the law, you cannot do that. I will force the issue with eviction. I will do what I have to do.” Following the President’s warning, the NHA started issuing eviction notices to Kadamay members occupying 5,262 housing units in seven NHA project sites in Bulacan. The NHA said Kadamay members have seven days upon receipt of the eviction notice to leave the housing units they occupied. The agency said Kadamay members who want to have their own housing units must follow the NHA procedures, like answering the housing information form, screening process and beneficiary selection. The NHA assured Kadamay members that it will come up with housing programs and projects appropriate to their needs, with necessary budget from the national government. Unfortunately, the NHA’s assurances apparently fell on deaf ears, as the barricades put up by the illegal occupants around the resettlement areas were still standing as of this writing, with placards saying the housing project is free and for the masses. Most everyone agree there’s an urgent need to find lasting solutions that are truly responsive to the needs of the poor. As one public official quipped, “We are sad it happened this way, yet, let this be a reminder to the government to act now and provide housing to those who need it the most.” To solve homelessness, we need to build lots of affordable housing. But the government has failed to do that. The Duterte administration, however, has five more years to solve the country’s housing backlog of around 6 million units.

Better to be loved or feared? John Mangun

OUTSIDE THE BOX

ack in the late 1990s there was this Filipino-Chinese fellow named Sammy. Nobody liked him since he was the dictionary definition of a carabao’s backside. The company was too cheap to put in cubicles, so there were long tables on which monitors were set to watch and trade the stock market. No one wanted to sit next to him.

But Sammy seemed to always have winning stock positions, so, gradually, people put up with his attitude to gain information. He was like the guy in college that no one would associate with except when everyone was too broke to go out for beer. In order to have friends, he would buy the beer. The Philippines had a president like that once. Even down the road when Sammy got engaged to be married and had a restaurant party to celebrate, only 10 or so of us attended out of

a group of about 50. I felt a little sorry for him, but not much. The key to the deal of being fully accepted in any organization— whether you are the boss or the lowest employee—is to make yourself important to the others’ welfare. That could mean financially, or in different respects. In his 16th-century political treatise—The Prince—Niccolò Machiavelli wrote the following: “It is much safer to be feared than loved because...love is preserved by the link of obligation, which, owing

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to the baseness of men, is broken at every opportunity for their advantage; but fear preserves you by a dread of punishment which never fails”. This conjures up a dictator who dispenses cruelty and rules by “punishment”. However, the original Italian uses the word pena, which implies more of suffering from a loss of goodwill and support rather than the word punizione, which implies a penalty for breaking the rules in the legal sense. “Go along to get along” might catch you friends, especially the kind of friends on social media. But only a scarce number of people in any organization are valuable enough that you would want to risk losing their goodwill and support. That is the person you want to be, both to the group and to the people within that group. Entities like corporations also function like individuals when it comes to this idea of being “loved” versus being “feared”. There are certain listed companies on the Philippine Stock Exchange everyone loves but only at those unique times when you can make a profit

Continued from A1

N the other “extractive” industries, the situation is worse: prosperity for a few, no shared prosperity for the many and no sustained development for the local communities. This is amply illustrated in the history of the sugar industry, where the lion’s share from the sugar-export earnings went mainly to a small circle of planters, millers and trader-exporters. In contrast, the thousands of sugar workers, composed of the dumaans and the ambulant sacadas, only got a pittance, while the communities where these workers were recruited wallowed in poverty and misery. It is not clear if the Comprehensive Agrarian Reform Program has altered this century-old arrangement. A similar situation obtains in the extractive mining industry. The old mining towns in the Cordillera, Bicol and Caraga are some of the poorest in the country, despite the wealth they helped extract for the Manilabased investors and executives. When Atlas, the country’s biggest copper producer, ceased operations in the 1990s, the poor in Toledo City became poorer, because there were no alternative jobs from agriculture, which was affected by the large-scale open-pit mining and the unregulated flow of mine tailings. Nor were there job opportunities in the poisoned rivers and coastal areas of the city. All this raises a difficult policy issue: What happens once the min-

erals run out or when mining operations are suspended or terminated? Life becomes cataclysmic. Take the case of Santa Cruz. From the 1970s to the mid-1990s, Santa Cruz and the surrounding towns of Marinduque benefited from the jobs and export earnings generated by the operations of Marcopper. The mining company, owned and operated by Placer Dome of Canada, also became the de facto Santa Cruz town hall, providing financial support to the various needs of the local communities, from medical assistance to school buildings and sports activities. And then a manmade disaster occurred in 1996. Due to weaknesses in Marcopper’s observance of environmental pro-

tocols, its mine-tailings pond burst, disgorging over 80 million tons of toxic tailings that poisoned the Boac River and the Calancan Bay, and buried several communities along the way. Santa Cruz and the surrounding towns were devastated. Placer Dome, which quickly made promises to make reparations, simply abandoned Marinduque; it has failed to honor up to now its reparations commitment. Life in Santa Cruz and surrounding towns has never been so miserable since. From the foregoing, it is abundantly clear that the government cannot afford to take a simplistic laissez-faire attitude to mining and other extractive industries. Yes, investments are central in the creation of enterprises and jobs. However, investments in extractive industries have serious impact on the environment, which we can only ignore to the peril of the nation and the future generations. And export earnings, if not equitably shared with the workers and the host communities, perpetuate poverty and deepen social inequality. In 2012 Dr. Esteban Godilano, the country’s leading expert on geo-hazard mapping, and Christian Monsod, an advocate of comprehensive and rigorous “total economic valuation” of minerals, proposed the following guidelines on mining: “Mining should only be allowed when four minimum conditions are met: (1) the environmental, social and economic costs are accounted for in evaluating mining projects; (2) the country gets a full and fair share

owning the stock. Conversely, there are a few that you might want to always own because management constantly makes sure that corporate accomplishments are reflected in higher share price. Put another way, there are certain companies that only care about investors “loving” them when it is to the company’s advantage. They will shower investors with sweet words, flowers and candy when they want buyers to push the price higher. And then you never hear from them until they need buyers again. Quality listed companies are constantly concerned that they might lose investors’ goodwill and support, and are “fearful” of being “punished” by the stock market. They are transparent, honest in their assessment of the future and want a healthy and beneficial longterm relationship with your investment. These are the firms that will make you the most money over time. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

of the value of the extracted resources; (3) the institutional capabilities of the government to evaluate and regulate mining activities are put in place; and (4) since mining uses up nonrenewable natural capital, the money from mining is specifically used to create new capital such as more developed human resources and infrastructure, particularly in the rural areas.” (From “To Mine or Not to Mine”, policy paper of the Climate Change Congress of the Philippines) The fourth guideline in the above list may be expanded. Money from mining (and other extractive industries) should be used to build up the industrial and agricultural capacity of the host communities. There should be better and sustainable life after mining. In this regard, why should we keep exporting raw ores and importing metallic products processed partly out of these exported ores? In the 1960s and the 1970s, the Philippines became Asia’s biggest copper-ore producer, and yet, resource-poor Japan became the world’s biggest exporter of copperbased products in those decades. The point is that the country cannot afford to remain blinded by a narrow economic program of extract and export or “extravism”, as the Latin Americans put it. Prosperity for a few should become progress for all. Or, to put it another way, no real or meaningful development is possible without an inclusive, balanced and sustainable sharing of the fruits of growth. Otherwise, we might, as well, kiss “Ambisyon 2040” of the National Economic and Development Authority good-bye.

Opinion BusinessMirror

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Determining fraud and intracorporate disputes

Reborn in the light Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Atty. Filamer D. Miguel

Tax Law for Business

T bears recalling that under Presidential Decree 902-A, any cause of action that involves controversies arising out of intra-corporate relations, between and among stockholders, members or associates of a corporation, partnerships or association, is within the original and exclusive jurisdiction of the Securities and Exchange Commission (SEC) to try and decide, in addition to its regulatory and adjudicated functions.

However, upon the approval of Republic Act (RA) 8799, otherwise known as the Securities and Regulation Code, the commission’s jurisdiction over all cases enumerated in Section 5, PD 902-A were transferred to the court of general jurisdiction, or the appropriate regional trial court (RTC). Thereafter, the Supreme Court, pursuant to its mandated authority, promulgated the following: A.M. 00-11-03-SC designated certain branches of the RTC to try and decide SEC cases arising within their respective territorial jurisdiction. Supplemental Administrative Circular 8-01 directed that all SEC cases originally assigned or transmitted to the regular RTC shall be transferred to branches of the RTC especially designated to hear such cases in accordance with A.M. 00-11-03-SC. A.M. 01-2-04 SC (Proposed Interim Rules of Procedure Governing Intracorporate Controversies under RA 8799) was promulgated. This brief background relative to the venue and jurisdiction to try and decide cases involving, among others, intracorporate disputes, becomes crucial in the controversy raised in SEC En Banc Case 05-16-401 promulgated on January 5. In said case, a local company applied for an increase of Authorized Capital Stock, as well as Amendment of its Articles of Incorporation with the SEC. Having submitted all of the required documents pursuant to such application, the Company Monitoring and Registration Department of the SEC approved the same. However, the company’s application was eventually challenged based on allegations of fraud committed by the company in its application. It must be emphasized that one of the requirements for an application for increase of authorized capital stock is a secretary’s certificate stating that there are no pending intracorporate disputes within the corporation. The opposition in this case was anchored mainly on the existence of an intracorporate dispute within the applicant-company there being three factions within the corporation claiming to be the legitimate set of officers for the company. Given the above circumstances, can the increase of authorized capital stock and amendment of the articles of incorporation previously approved by the SEC be

revoked? Which has jurisdiction to resolve the issue of fraud: the RTC or the SEC? The SEC has jurisdiction to determine if a corporation, partnership or association committed fraud. Since it is tasked, among others, to determine the propriety of applications for increase of authorized capital stock, it is clothed with authority to determine the veracity of the requirements submitted to it for evaluation. Among those requirements is a secretary’s certificate, stating that there are no pending intracorporate disputes within the applicant-corporation. The SEC, therefore, has authority to determine if the statements made in the secretary’s certificate of a corporation is truthful. In the said case, fraud was established when the SEC found out that there is an intracorporate dispute involving the applicant company pending before the regular courts and the applicant company has knowledge of such fact. Further, there were multiple filings of General Information Sheet by the company with different branches of the SEC, each stating a different set of officers. Such further strengthens the finding of the SEC that there is, indeed, an intracorporate controversy within the applicant-corporation, and that the secretary’s certificate submitted by it stated a falsehood. This decision, however, does not supplant or encroach upon the jurisdiction of the RTCs. While ordinarily, matters involving fraud or misrepresentation by the board of directors, business associates, officers or partners, as well as intracorporate disputes, are now within the jurisdiction of RTCs, the SEC is not precluded in determining allegations of fraud and intracorporate dispute, so long as it is done for purposes only of fulfilling the SEC’s mandate, and to ensure compliance with SEC rules and regulations. The author is a senior associate of Du-Baladad and Associates Law Offices, a member-firm of WTS Global. The article is for general information only and is not intended, nor should be construed, as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at filamer.miguel@bdblaw.com.ph or call 4032001, local 360.

N our way to Easter and our baptismal celebration of it, we are led to meditate on Jesus’ opening the eyes of a man born blind (John 9:1-41). The significance of the event lies for us in the reactions provoked by the incident that amount to an illustrated discourse on the journey toward faith as we discover Jesus as the light.

The light for everyone The very introduction of John’s gospel describes the coming of the Word of God into the world in terms of the light that enlightens everyone, but is opposed by darkness (1:5. 9-10). In accord with this mission, Jesus cured the blind man. The simplistic attribution of suffering or sickness to someone’s sinfulness, therefore ultimately to a punishing God, is now challenged by the new experience in Jesus of the God who makes His gentle love and mercy visible even in our human malfunctions and brokenness. As light travels, it penetrates the darkness so-to-say layer after layer, in some places successfully, but in others the refusal can be impermeable. The blind man’s world of darkness was pierced when Jesus appeared in it as “the light of the

world”, and the ensuing reactions and questions brought him to a gradual realization of who Jesus to him is. At first, for him the one who opened his eyes was “the man called Jesus”, then “a prophet”, then someone he would not call a sinner because definitely “from God”. Finally, after all the grilling and ridicules he went through, Jesus again approached him and finally asked him if he believed in the Son of Man he has seen and the one speaking to him. The man replied, “I do believe” and worshipped Jesus. Full inner light had come to him and he wholeheartedly received the light.

Holding on to the light

The man had to confirm that he was, indeed, the one born blind and now seeing. He did not deny the past, but he would not deny the present

Tweeting toward oblivion

By Frank Bruni | New York Times News Service

RESIDENT Donald J. Trump faces a stark choice. He can tweet, or he can govern. He can indulge his persecution complex, firing off missives that compare Barack Obama to Joseph McCarthy and US intelligence officers to Nazis, or he can recognize it as a gateway to disgrace and irrelevance. He can make his presidency about his own viscera, or he can make it about the country’s welfare. He can do what feels cathartic in the moment, or he can do what’s constructive in the long run. He can dabble in bright colors and shiny objects, or he can deal in durable truths. I’m focusing on Twitter because it teases out his worst traits. It’s the theater for vainglorious, vindictive, impulsive Trump, and it was the realm in which he made the wild accusations that Obama had wiretapped Trump Tower. On Monday James Comey debunked those charges, certifying them as the gaseous fulminations we more or less knew they were. And through much of Tuesday, Trump’s personal Twitter account essentially went dark. There was nothing from the hours around dawn, which is when he typically visits with his darkest vapors. There was only anodyne stuff later on: a shout-out to the scientists at National Aeronautics and Space Administration, a salute to US farmers. Either someone in his orbit convinced him, at least briefly, of the damage he was doing and the miserable situation he’s in, or Trump himself summoned some wisdom

and restraint. He must be capable of that. Can he continue it? It could be argued that every presidency is a tug-of-war between private demons and the public interest, between the commander-inchief’s indulgence of his own psychological needs and his attentiveness to the hard work of America. With Trump, it’s a furiously pitched battle, and the demons are way out ahead. One of them hasn’t received the attention it warrants. With all our condemnations of Trump the bully, we’ve overlooked Trump the bullied, which is the version more likely to bring him down. I mean the Trump who’s hell-bent on believing that he’s up against ruthless enemies; the Trump who must amplify every stride by casting it as a triumph over formidable odds; the Trump who’s throwing a pity party for himself the likes of which few of his predecessors ever attempted. His election somehow brought this Trump to the fore. In a paradox as strange as everything else about him, victory played handmaiden to a feeling of victimization: his own and the country’s. It’s precisely that feeling—“a

Thursday, March 23, 2017 A11

Faith in Jesus ends the darkness for humanity. In baptism where we become existentially linked up with him in the light of God’s saving love, we are given the lighted candle to symbolize our new life in the light that is Jesus Christ. And like the woman at the well of Jacob, the man born blind found out that encountering Jesus and listening to him is the beginning of new life. either that would empty his future. The efforts to make him denounce Jesus met his unyielding and childlike resistance. Under persistent interrogation, he stood firm on his experience of the miraculous and refused to speculate beyond the obvious that it was divine blessing. His parents’ decision under intimidation to make him speak for himself might have even given him a boost. With amazement he observed all the excitement and discussion generated by his cure, and innocently inquired if the people questioning him might be interested to become followers, too, of Jesus. For standing up for his faith, he ended up expelled from the synagogue. The Pharisees, who see better and know more about divine law, badgered the man born blind to make him speak against Jesus. But with all their sophistication, they could

Trump is no victim. He’s the luckiest man alive—or has been, until now. But his allies “have begun to wonder if his need for self-expression, often on social media, will exceed his instinct for self-preservation,” Thrush and Haberman wrote. He can vent his emotions or exercise his responsibilities. The decision belongs to him, the consequences to all of us. sense of persecution bordering on faith”, as Glenn Thrush and Maggie Haberman wrote in The Times on Monday—that brought about the wiretapping tweets. But it has also brought about many other ill-advised tweets and ill-considered public statements, enveloping Trump in a foul air of grievance. If it’s not the Mexicans taking advantage of him and of us, it’s the Australians or the Germans or the Chinese. Take your pick. The “deep state” is out to get him. The leaks are a plot against him. Sometimes his mewling has an obvious prompt. When your approval ratings have sunk as low as his— a recent Gallup tracking poll showed that only 37 percent of Americans were pleased with his performance —you have an obvious investment in calling such surveys rigged and wrong, as Trump is still doing. But other whimpering is absurdly conceived and needlessly divisive. During Angela Merkel’s visit to Washington last week, he ranted

not browbeat him into saying what he knew to be not the case. The openness of the man born blind contrasted paradoxically with the blindness of the Pharisees. In their religiosity of fixed and unyielding ideas, they lived in a world of shadows that could not handle the real, both human and divine. And they judged everyone, even God, according to the measures of their willful, hence sinful, blindness. Typically, their tool is intimidation, and when frustrated, abuse and insult and physical exclusion. Alálaong bagá, there is really so much darkness in the world. “Not seeing” is a characteristic human condition. As on the first day of creation, God brings light out of darkness (Genesis 1:1-5): Faith in Jesus ends the darkness for humanity. In baptism where we become existentially linked up with him in the light of God’s saving love, we are given the lighted candle to symbolize our new life in the light that is Jesus Christ. And like the woman at the well of Jacob, the man born blind found out that encountering Jesus and listening to him is the beginning of new life. To live is to welcome the light, to flee darkness; and when vison is present, action follows. The man worshipped Jesus, as the woman became an evangelizer. Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on dwIZ 882, or by audio-streaming on www.dwiz882.com.

about an unjust trade imbalance between Germany and the United States, crediting Germany with smarter negotiators. But there are no such negotiators. We trade not specifically with Germany but with the European Union as a whole. It’s possible that he doesn’t know that. It’s also possible that he chose to disregard a detail that would have complicated and maybe nullified his complaint. Why let the facts get in the way of a tantrum that he then transferred to Twitter, where he bellowed that Germany owed money for its defense to the US and Nato? It’s funny: Comey’s testimony on Monday made clear that someone does have a right to feel put upon. That someone is Hillary Clinton. He stressed how “hated” she was by Vladimir Putin. He also confirmed that before Election Day, intelligence officers were looking into whether Putin and the Russians were meddling in the election because of that hatred. At the time, Comey said nothing about that, even as he announced that the FBI was taking a fresh look at newly discovered Clinton e-mails. Trump is no victim. He’s the luckiest man alive—or has been, until now. But his allies “have begun to wonder if his need for self-expression, often on social media, will exceed his instinct for self-preservation,” Thrush and Haberman wrote. He can vent his emotions or exercise his responsibilities. The decision belongs to him, the consequences to all of us.

Letran to award outstanding alumni in line with quadricentennial anniversary

olegio de San Juan de Letran, which will celebrate its 400 years as an educational institution in 2020, has started this year a sustained program to recognize 400 outstanding Letranites in line with its quadricentennial anniversary celebrations. At the same time, Letran is mulling over improvements of its academic programs, the university’s infrastructure, and other endeavors to raise its national prominence and promote its role as a social catalyst. Letran has programs in Business, Management, Marketing, Entrepreneurship, Information Technology, Digital Arts, Communication Arts, Accountancy and

Engineering. The colleges are divided into six departments: College of Liberal Arts and Sciences (CLAS), College of Business Administration and Accountancy (CBA A), College of Education (CoEd), Institute of Communication (iCOMM), Institute of Information Technology (iIT) and College of Engineering (CoE). Colegio de San Juan de Letran is a private Roman Catholic Dominican institution of learning in Intramuros, Manila. The college was founded in 1620. Letran has the distinction of being the oldest college in the Philippines and the oldest secondary institution in Asia. The school has

produced Philippine presidents, revolutionary heroes, poets, legislators, members of the clergy and jurists. It is also one of the only Philippine schools that produced several Catholic saints who lived and studied on its campus. This year’s event will reunite all outstanding Letranites as the Letran Alumni Association will recognize the first batch of 400 Letranites who have done great things in the country and who exceled in their chosen field or career. Starting in 2017, Letran Alumni Association is awarding 100 Letranites every year until 2020 to complete the 400 Great Men and Women or “Grandes Figuras” Awards.

One of the first 100 recipients of Grandes Figuras, to be given a Most Outstanding award this year, is a lawmaker from Bacoor, Cavite —Rep. Strike Revilla, who belongs to Letran’s Batch ’93. “I am proud to be part of Letran’s Grandes Figuras; this inspiration will make me work harder for my constituents,” said Revilla, who was the mayor of Bacoor, Cavite, for nine years before winning a seat at the House of Representatives.

Scholarship program

IN line with the school’s mission to promote education as a form of evangelization for the total development of a person in the

service of church and society, Letran provides an opportunity for academically outstanding students to pursue their education through the Rector’s Scholarship Program. Students in the areas of BS Accountancy, AB Communication and BS Education are eligible to apply. Student-applicants must belong to the top 20 percent of their graduating class, as certified by the principal or registrar; pass the qualifying examination given by Letran; pass an interview administered by the respective academic heads; be of good moral character as certified by the principal or registrar.

Athletic scholarship

Student-athletes who want to apply for the Blessed Antonio Varona Ortega Athletic Scholarship must know that this scholarship is designed to help financially incapable students to pursue a career by giving them quality education while pursuing excellence in sports. To qualify, the student must be at least 13 to 18 years of age for high school and 16 to 23 years old for college; be physically and psychologically fit to play; be of good moral character and has never been subjected to any disciplinary action; and must pass the tryouts administered by the coaches.

2nd Front Page BusinessMirror

A12 Thursday, March 23, 2017

Economy to sustain above 6.5% growth in Jan-Mar–think tank

By Cai U. Ordinario

@cuo_bm

ith inflation as the only downside among all major indicators, a think tank said the Philippine economy is a cinch to sustain its above 6.5-percent growth in the first quarter. “The investment-led growth of the economy appears intact in the first quarter, as robust national government spending and manufacturing-output gains last December should spill over into higher employment and consumption spending in the first quarter,” the First Metro Investment Corp.University of Asia and the Pacific (FMIC-UA&P) Capital Markets Research noted in its latest Market Call report. The think tank said all growth indicators are positive for the Philippines, except inflation. In February inflation accelerated to 3.3 percent, the fastest in 27 months. Average inflation in the first two months was at 3 percent. But the FMIC-UA&P Capital Markets Research said inflation is bound to “stabilize just above” 3 percent this year. The group said there is a limit to the increase in crude-oil prices and the inflow of increased rice imports will help slowdown price increases throughout the year. “Besides, the move of exports into positive territory in three of the last four months should provide further impetus to the strong domestic demand outlook.” Though the country’s exports

6.8% The Philippines’s GDP growth in 2016

may have ended sourly in 2016, the think tank expects export performance to improve this year. This will largely be supported by the gains in the manufacturing sector in the last quarter of 2016. Last December the Volume of Production Index saw a 23-percent growth. Among the sectors that posted over 35-percent growth were petroleum products, at 63.2 percent; fabricated metal products, 41.5 percent; and food manufacturing, 35.1 percent. “With particularly robust manufacturing-output gains in the last two months of 2016, capital goods imports should continue to post above 20-percent gain in the first quarter. We have obtained empirical evidence that manufacturing volume leads investment spending,” the think tank said. In

water talk (From left) Engr. Eulogio F. Agatep II, president, Philippine Water Works Association; Sen. Cynthia A. Villar and M. Gandhi, president, UBM Exhibitions Philippines Inc., listening to participants during the Water Philippines Exhibit held at the SMX Convention Center in Pasay City. NONIE REYES

January the Philippine Statistics Authority (PSA) announced that the economy grew 6.8 percent in full-year 2016 and 6.6 percent in the fourth quarter. Despite posting its slowest quarterly growth in the fourth quarter, the National Economic and Development Authority said the Philippines is still among the fastestgrowing economies in Asia. Meanwhile, the Philippines saw the largest quarter-on-quarter decline in local currency (LCY) bond issuances in the fourth quarter of 2016, according to the latest Asian Development Bank (ADB) report.

In ADB’s Asian Bond Monitor, the Manila-based multilateral development bank said the country’s LCY bond issuances reached only $4 billion, a 44-percent decline. “This was partly the result of a high base in the third quarter of 2016, when the government of the Philippines issued P100 billion worth of retail Treasury bonds,” the report stated. “The Bureau of the Treasury also rejected or only partially awarded most of its scheduled auctions of Treasury bills and bonds in the fourth quarter of 2016, as market participants sought higher yields given uncer-

tainty in the market,” it added. The decline in the country’s LCY bond issuances mirrored the trend for all emerging countries, which saw a 14.8-percent drop quarteron-quarter to $946 billion in the last quarter of last year. However, on a year-on-year basis, the country’s total LCY bond issuances grew 22.8 percent on the back of corporate bond issuances. “Bonds issued by Philippine corporates rose 60.3 percent quarteron-quarter in the fourth quarter of 2016, as they opted to increase borrowing in anticipation of higher interest rates,” the report stated.

www.businessmirror.com.ph

Banks more partial to BSP’s short-term deposit offer By Bianca Cuaresma @BcuaresmaBM

anks and trust entities showed less interest in the Bangko Sentral ng Pilipinas’s (BSP) 28-day term deposits, as bids were reported to be undersubscribed on Wednesday for the first time in the auction facility’s history. In particular, the amount tendered in the shorter tenor hit P39.19 billion, exceeding the P30 billion offered by the Central Bank for the week. As for the longer tenor of 28 days, bids reached P140.76 billion, out of the P150 million offered for the week—the first undersubscription for the facility since its inception. The low bid outcome for the longer tenor caused the bid coverage ratio to drop below 1 during the week at 0.9384. Rates remained broadly stable, with both tenors still hovering around the Central Bank’s main policy rate. In particular, the seven-day tenor fetched yields at 2.9896 percent, while the 28-day tenor’s was at 3.3028 percent. BSP D eput y G over nor for the Monetary Stability Sector Diwa C. Guinigundo said the apparent lack of interest in the longer-term tenor is not an indicator of tighter liquidity conditions, but of the banks’ preference for shorter-term tenors. “It’s true the bid to cover ratio for the 28-day TDF [term deposit facility] has dropped to less than one, but that does not necessarily imply that market liquidity is tightening. There is more preference for the seven-day instrument because the market is positioning for any opportunistic short-term propositions,” Guinigundo told reporters. “Should there [be] actual liquidity tightening, all that the banks have to do is to withdraw from the liquidity facilities of the BSP to fund loans, investments, foreign-exchange purchases and even public spending on power and infrastructure,” he added. TDF auction results showed banks and trust entities still showed strong interest in the Central Bank’s seven-day term deposit offer, which was still oversubscribed during the week.

Govt to complete 55 flagship projects

PHL,THAILAND INK AGRI DEALS T IN DUTERTE’S BANGKOK VISIT

he interagency Investment Coordination Committee (ICC) has approved a total of 55 flagship projects that will be completed or rolled out under the current administration, according to the National Economic and Development Authority (Neda). Officials from the Neda recently told reporters in an interview that the total indicative cost of the flagship projects is P1.2 trillion. The Neda said this

he agriculture sector emerged as the biggest winner in President Duterte’s two-day official visit to Thailand, as Manila signed agricultural agreements with Bangkok, including a pact aiming to advance one of the country’s underdeveloped industries. In a news briefing in Bangkok on Wednesday, Philippine Carabao Center Executive Director Arnel del Barrio revealed the government has inked a deal with Thailand on swamp and dairy buffalo production. The implementing agreement, prepared by the Department of Livestock Development of the Ministry of Agriculture and Cooperatives and the Philippine Carabao Center of the Department of Agriculture, intends to supplement the dairy industry of the Philippines. The agreement comes in the form of a memorandum of understanding (MOU) between the two Southeast Asian nations, with the purpose of strengthening collaboration on scientific and technical cooperation on swamp and dairy buffalo production. “The specific purpose [of this MOU] is to promote, exchange and collaborate, among scientists in the field of buffalo breeding and reproduction, [ways on] production, nutrition management and other areas.” According to del Barrio, the MOU will also provide agricultural research-

President Duterte (left) talks to Prime Minister Prayuth Chan-ocha during the agreements signing involving agriculture, education, energy, science and technology at the government house in Bangkok, Thailand, on Tuesday. Duterte is in Thailand for a two-day visit, rounding out his nine-country tour of Southeast Asia. AP/Sakchai Lalit ers in the Philippines the opportunity to visit laboratories in Thailand to learn how the country was able to improve their dairy production. He added the implementing agreement is in support of the administration’s concerted effort to develop the local dairy industry, which has not been doing well in the past years. The MOU on swamp and dairy buffalo production is just one of the numerous agriculture agreements Duterte signed with his Thai counterpart in his two-day official visit to the Southeast Asian neighbor. In a joint statement between the President and Thai Prime Minister

Prayut Chan-o-cha, Duterte said the two countries recognize the importance of cooperation in the agriculture sector. “There [has] been significant advancement in this area. We look to greater cooperation and exchange of best practices in the [fields of ] irrigation, artificial rain, livestock and fisheries, and application of technology for soil and water conservation,” Duterte declared. He added the Philippines and Thailand have vibrant economic relations, with a trade value of over $9 billion in 2016, and the agriculture sector contributes to this significant growth. Elijah Felice Rosales

amount will fund projects that will further boost the country’s economic growth. “We will change the landscape with game-changing infrastructure,” Neda Undersecretary Rolando G. Tungpalan said. “Flagship projects [are] something that will generate [and] encourage other developments. These are catalytic project,” Socioeconomic Planning Secretary Ernesto M. Pernia added. This is not the first time that the Philippine gov-

ernment has identified “flagship” projects. Most notable are those undertaken during the Ramos and Estrada administrations. In 1994 the Ramos administration even created the Presidential Committee on Flagship Programs and Projects, which was then chaired by Emilio M.R. Osmeña. Meanwhile, the Estrada administration continued the committee, under the chairmanship of Roberto Aventajado, and identified a total of See “Govt,” A2

Philippines seeks China’s clarification on shoal plans M

anila on We d ne s day said it has asked Beijing to clarify China’s reported plans to build an environmental-monitoring station on a disputed shoal. Acting Foreign Secretary Enrique Manalo told reporters in the Thai capital Bangkok, where President Duterte is visiting, that his department asked for clarification on the reported planned construction on Scarborough Shoal. The shoal, off the northwestern Philippines, is at the heart of the territorial disputes between the countries. “I think the President has been very clear—we want to have a peaceful, diplomatic settlement of disputes but we will not fail to protect our national interests if necessary,”

Manalo said. Asked if a diplomatic protest will be filed, he said Manila will wait for China’s reply. But Manalo said he considered it a good sign that China was interested in concluding a framework for a code of conduct with 10 Southeast Asian nations that aims to peacefully manage disputes in the South China Sea. He said there could be progress on the framework when China hosts a meeting in May. Any construction would reignite concerns over Beijing’s increasingly assertive actions to cement its claims in the area, and would be in defiance of last year’s ruling by an Arbitration Tribunal in The Hague, which invalidated China’s territorial claims in the South China Sea on historical grounds. Chinese government ships took

control of Scarborough in 2012 after a tense standoff with Philippine vessels. China then blocked Filipinos from fishing in the shoal, which has a vast, coral-encircled lagoon that serves as a natural storm shelter for Asian fishermen. The Philippines brought its disputes with China to international arbitration the following year, but China ignored the complaint and the tribunal’s ruling, which found Beijing to have violated the rights of Filipinos to fish at Scarborough. Since taking office last June, Duterte has put the territorial conflicts with China on the back burner and reached out to Beijing in an effort to revive trade and seek Chinese economic aid. Filipinos have since been allowed to return to Scarborough to fish. AP