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Monday, May 15, 2017 Vol. 12 No. 214

‘Govt spending, exports likely boosted Q1 GDP’ 6.9% T Local economists said higher government spending and the recovery in exports also boosted economic growth in the first quarter of the

HOUSE ASKED TO PROBE PHL’S RICE INVENTORY By Jovee Marie N. dela Cruz @joveemarie

& Jasper Emmanuel Y. Arcalas @jearcalas

he House of Representatives should look into the true state of the country’s rice inventory to ensure ample and affordable supply of the staple, a vice chairman of the House Committee on Appropriation said. Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur made the statement after officials of the Department of Agriculture (DA) and the National Food Authority (NFA) fretted over a possible supply shortfall during the July-to-September lean months. “[An] inquiry should be conducted by the House Committee on Agriculture and Food following fears that the country’s current buffer stock might not be enough to last during the lean months after this summer harvest season,” Villafuerte said. He said Congress should help Malacañang determine the real supply situation, and then draw up proactive measures to avert a possible supply shortfall later this year. These could in-

clude importing rice either by the government or by private traders under the minimum access volume scheme of the World Trade Organization (WTO). Villafuerte said Congress could back immediate imports to enable the government to proactively maintain the ideal buffer-stock level, or equivalent to a 30-day supply of the national daily rice requirement, by the time domestic stocks dwindle during the lean months. “Considering the time needed for shipments to arrive in the country from Day One of such negotiations, now would be the best time for the government to green-light such imports—but if, and only if, such action would be deemed warranted in the course of the proposed public hearings on the supply situation,” he said. “Otherwise, there is absolutely no need for the government to entertain rice imports if the rice inventory will be found adequate for the remainder of the year [in the public hearings], as any unnecessary importation would unduly distort domestic supply and depress farm-gate prices of palay that would only hurt local farmers,” Villafuerte added. Continued on A16

PESO exchange rates n US 49.9330

year. In an economic preview made public just recently, Moody’s Analytics—the research arm of Moody’s Corp.—said Philippine GDP likely

The expansion in Philippine GDP projected by Moody’s Analytics for the first quarter

expanded by 6.9 in the first three months of 2017. This forecast means the country’s economic engine accelerated in January to March, from the 6.6-percent growth posted in the last three Continued on A2

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PPP Conversations #3 with Makati Mayor Abby PPP Lead

By Cai U. Ordinario @cuo_bm & Bianca Cuaresma @BcuaresmaBM

he country’s GDP likely grew faster in January to March, compared to that of the previous quarter, as private investment and consumption accelerated rapidly during the period, according to an international think tank.

2016 ejap journalism awards

Alberto C. Agra

professor can be no prouder when his or her student makes his or her own distinct mark in the field of local governance, the subject this columnist teaches at the Ateneo Law School. Abby Binay-Campos is one such student. Now the chief executive of Makati City, the country’s financial hub, Mayor Abby wants to be at the forefront of public-private partnerships (PPPs). Her passion, no-nonsense and innovative kind of leadership will surely make Makati people—or Makatizen—driven. Continued on A15

BMReports

PHL steers road-safety goals on badly chipped pavement By Lorenz S. Marasigan @lorenzmarasigan

Part One

HE road to ensure the safety of the roads in the Philippines is paved with good intentions. However, intentions are not good enough to concretize this goal. More than half a decade into the implementation of a road-safety blueprint, the country is still struggling to cut road accidents by half in the next four years. While there is no concrete evidence that the country is in a tight match against its targets, government officials and experts agree that road safety in the Southeast Asian nation is still a dream far from realization. The government has no official data of the total number of road accidents all over the country for the past four years, after the public works department decided to fold down the operations of its traffic Continued on A2

This May 3 photo shows vehicles using the newly opened road that connects Terminal 1 to Terminal 3 of the Philippines’s international airport. Six years ago, the government implemented the Philippine Road Safety Action Plan with the goal of cutting road-crash deaths by 50 percent through 2020. NONIE REYES

n japan 0.4386 n UK 64.3686 n HK 6.4106 n CHINA 7.4940 n singapore 36.4966 n australia 36.8306 n EU 54.2372 n SAUDI arabia 13.3144

Source: BSP (12 May 2017 )

A2 Monday, May 15, 2017

BMReports BusinessMirror

www.businessmirror.com.ph

PHL steers road-safety goals on badly chipped pavement Continued from A1

accident-recording analysis system in 2013. But data from the Philippine National Police (PNP) showed the number of road accidents in the country is on a steady upward trajectory, which signals that there is something wrong with the government’s policies and endeavors to road safety. In 2013 the PNP recorded a total 12,875 road crashes in the Philippines. This figure rose sharply by a fifth the year after to 15,572 road-crash incidents, which then ballooned by 57 percent to 24,565 incidents in 2015. Last year there were about 32,269 road crashes all over the country.

Numbers unknown

DATA from the Metro Manila Accident Recording and Analysis System, on the other hand, showed there were 109,322 road-crash

incidents in the National Capital Region in 2016, a 14.33-percent rise from 95,615 road crashes the year prior. Human error—defined as negligence, physical challenges, or distractions—is to blame, according to the data provided by the government. The World Health Organization (WHO) estimates that there are about 9,000 people who die in road crashes each year. This translates to about 24 deaths each day, or one every hour. “Based on the data, trends and projections, we can infer that our roads really need proactive initiatives to make it safer. The department acknowledges the fact that there is still a lot of work to do to minimize road crash and fatalities,” Transportation Assistant Secretary Mark Richmund M. de Leon told the BusinessMirror. Globally, about 1.25 million people die each year on the world’s

roads as a result of road-crash incidents. It is, in fact, the leading cause of death for people aged 15 to 29, and continues to affect vulnerable groups, such as pedestrians, cyclists and motorcyclists. “Road-traffic crashes, along with injuries and deaths, have a huge impact on the health and development,” WHO Technical Officer Ronaldo O. Quintana said.

Economic costs

ASIDE from their impact on human life, road accidents also affect the economy negatively. World Bank Consultant Miguel Enrico C. Paala said road crashes in the Philippines costs the country about 2.6 percent of its GDP. T his f ig ure jibes w ith the estimate of de Leon, who previously conducted a research on the economic impact of road crashes in the Philippines during his masteral studies in the University of

the Philippines. “Cost of lives lost, valuable economic time, medical cost and even the pain-grief-and-suffering of the victims and their families were quantified,” de Leon said. “In 2007 it was estimated that P3.5 million is average economic loss per fatal road accident.” Without any corrections made to the accident statistics collected by responsible agencies, the cost of traffic accidents is about P2.5 billion, or $45 million each year, de Leon said, citing a study conducted by the Asian Development Bank. “However, this is a gross underestimation as it has been shown that there is too much underreporting of accidents,” de Leon said. “The estimate of the cost based on the health sector data amounting to P105 billion may still be on the low end, as there are many cost components that were not accounted for during the study. This cost

is already about 2.6 percent of the Philippines’s GDP.”

Pillars tumbling down

IN 2011 the government implemented t he Ph i l ippi ne Road Safety Action Plan with the goal of cutting road-crash deaths by 50 percent through 2020. But six years after it was launched, incidents still persist, and are moving steadily upward. The blueprint has five pillars and spells out government departments and agencies involved with budget allocations amounting to millions of pesos for implementation. First of the five pillars is to improve road-safety management. This program calls for the collaboration between the transportation, public works, interior and local government, and health departments for the development of policies and implementation of

‘Govt spending, exports likely boosted Q1 GDP’ Continued from A1

months of 2016. It is also on a par with the 6.9-percent hike recorded seen in the same period last year. “Domestic demand continues to be the main driver, with private investment and consumption increasing rapidly,” Moody’s Analytics said. “Positive demographic factors and rising incomes are supporting consumption. Net exports should also be a positive, as merchandise exports have recovered in recent months and service exports continue to perform well,” it added. Ju st l a st mont h t he B a ng ko Sentral ng Pilipinas (BSP) also bared their expectations of a stronger first quarter performance for the economy, as their so-called high-frequency demand indicators show “solid growth prospects” for the period. Among these indicators the BSP cited were the continued increases in the sales volume of automobiles and electricity, as well as the production of the manufacturing sector.

Latest data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association (TMA) showed a 23-percent increase in vehicle sales in the first quarter of the year, as March alone showed a 33-percent jump in automobile sales. Philippine Statistics Authority’s (PSA) monthly integrated survey of selected industries for February this year, meanwhile, showed that the volume of production index posted a 10.7-percent increase—faster than the 7.1 percent recorded in January. In the May bulletin of the Official Monetary and Financial Institutions Forum, Central Bank Governor Amando M. Tetangco Jr. said “important structural reforms” have allowed economies to thrive amid the changing economic conditions particularly in advanced economies, such as the US and China. Tetangco particularly cited the Philippine economy’s domestically driven growth, as well as the country’s skew

to the Asean bloc as its primary trading partner.

Government spending

Ateneo EagleWatch Senior Fellow A lv in P. A ng said GDP may have grown 6.6 percent in the first quarter, because the economy may have benefited from the recent increase in public spending. His estimate is within the government’s 6.5-percent to 7.5-percent target for the year. “Public spending seems to be picking up,” Ang said. “First quarter cash utilization was high.” Data released by the Department of Budget and Management (DBM) showed that utilization of cash allocation as of the end of the first quarter reached P453.52 billion, resulting in a 93-percent utilization rate. During this period, notice of cash allocations released amounted to P485.72 billion. This means only P32.2 billion was unused. Ang also noted the recovery in exports, which posted an average growth of 18.3 percent in the first quarter, ac-

cording to the PSA. Data showed that the country’s export earnings in the first three months of 2017 rose to $15.51 billion, from $13.11 billion in the same period in 2016. In March exports increased 21 percent to 5.579 billion, from $4.611 billion posted in the same month a year ago. Budget Secretary Benjamin E. Diokno said these factors would allow the country’s GDP to expand by 6.9 percent in the first quarter. Diokno said construction and services will be the main growth drivers, while agriculture has already recovered “from its moribund state”. “On the demand side, personal consumption will be the major driver. Exports have also recovered from its weak state in the past,” he said. Last month First Metro Investment Corp. University of Asia and the Pacific Capital Markets Research said GDP growth in the first quarter could reach 6.5 percent to 7 percent. The PSA is expected to release the country’s GDP numbers on Thursday, May 18.

Infra. . .

programs on road safety. This also covers the sustaining of policies on free passage, an evaluation of the public-transportation monitoring system, the institutionalization of road-safety management though legislative enactment and partnership with the private sector, and the development, maintenance and integration of road-crash database systems by key agencies. Likewise, the pillar calls for the exploration of other innovating programs that will help local governments to establish their own local road-crash database, the determining of ways to increase and to sustain funding to support road safety activities, and passage aºnd harmonization of laws pertaining to road safety. The first pillar also seeks to provide depth in researches on how to fill in the gaps in road safety, and address economic impacts of accidents. To be continued

Continued from A16

“So here, you can feel already the emergence of an effort to link up, not only by air, which is already happening, but also by land and by sea [the whole of Asia],” he added. Sta. Romana revealed a joint communiqué will be released at the end of the Belt and Road Forum, defining the task of each state involved in China’s infrastructure campaign. He said the basic point of the outcome document is “really to further promote globalization and to further enhance connectivity between East Asia, mainland Asia, Central South Asia, Middle East, all the way to Europe”. However, Sta. Romana made clear the joint communiqué is not legally binding, as if an international treaty, but voluntary only since not all Belt and Road states are engaged bilaterally. “We are not signing an alliance or a treaty here. We are participating in a forum, in a discussion, with our national interests in mind,” the envoy stressed. The Department of Foreign Affairs said the Philippines is interested to discuss with Belt and Road states connectivity, economic and trade cooperation, industrial investment, energy and resources, financial support, people-to-people exchanges, environmental protection and marine cooperation. Aside from his scheduled attendance in the Belt and Road Forum, President Duterte will have an expanded bilateral meeting with Xi and Chinese Premier Li Keqiang. This will be followed by a closed-door dialogue between Duterte and Xi. Last October the Chief Executive returned to the Philippines from his fourday state visit in China with $24 billion of investment commitments from Beijing, including $15 billion worth of investment projects and $9 billion in credit facilities. Under Duterte’s watch, Manila is enjoying warmer relations with Beijing in spite of territorial disputes in the South China Sea.

Senate backing

The chairman of the Senate Committee on Economic Affairs over the weekend endorsed the Philippines’s participation in China’s ambitious Belt and Road initiative, highlighting the program’s potential to boost infrastructure development in the Philippines and foster inclusive economic growth throughout the entire Asia-Pacific region. Sen. Sherwin Gatchalian gave the endorsement as Duterte was set to join world leaders flying to Beijing to attend the two-day “One Belt, One Road” forum hosted by China. “China’s Belt and Road initiative is poised to create exciting international trade opportunities for participating countries. This will open new doors for the Philippines, giving us the chance to enter new markets and foster more meaningful trade relations with countries outside of our normal sphere of influence,” Gatchalian said. The Belt and Road initiative is a mammoth trade and commerce plan launched by the Chinese government to stimulate economic growth and development across Asia and beyond through the construction of a sophisticated network of infrastructure in participating countries. It is being promoted by the Chinese as the modern version of the fabled Silk Road, which facilitated the early globalization of trade centuries ago. Projected to add $2.5 trillion of annual trade value by 2025, the Belt and Road initiative is the largest global economic development plan undertaken in human history. “The Belt and Road initiative will help the Philippines achieve its long-term socioeconomic vision by complementing the Duterte administration’s timely ‘Build, Build, Build’ infrastructure policy,” Gatchalian said. “More than that, One Belt, One Road is a vision to democratize wealth and progress among developing nations. It is the type of plan that can transform a developing country into a developed one in the span of only one generation. Participating in this initiative is the right move for the Philippines,” he added.

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The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Monday, May 15, 2017 A3

House to hear 1st impeachment complaint vs Duterte

HE House Committee on Justice will start hearing on Monday the first impeachment complaint filed against President Duterte before the House of Representatives.

This after House Majority Leader and PDP-Laban Rep. Rodolfo C. Fariñas of Ilocos Norte referred last week to the House Committee on Justice, chaired by PDP-Laban Rep. Reynaldo V. Umali of Oriental Mindoro, the impeachment complaint filed by Partylist Rep. Gary C. Alejano of Magdalo. “We will start our hearing [on Monday] to determine sufficiency and form and substance [of the complaint],” Umali said. “We will give the complainant ample time to present and articulate the issues he raised, one by one,” he added. The committee hearings to be conducted will be “short” as the impeachment is expected to be dismissed due to lack of basis and support, he said. “[However] we will play it by ear. There is no game plan here to finish the process tomorrow [Monday]. Railroading the process is a baseless and unfounded fear. We are expecting the performance of our constitutional duty will be accepted by the people because this will be a dignified process and a sense of decency will be observed,” Umali said. Nacionalista Party Rep. Luis Raymund F. Villafuerte Jr. of Camarines Sur said the impeachment complaint filed against Duterte “is an exercise in futility, given his overwhelming support not only in Congress, but from the Filipino people, as well. My peers in the House of the Representatives are politically astute enough to realize that no impeachment complaint will gain traction among the people, considering President’s record public trust and satisfaction ratings as reflected in the tracking polls.” “We need this impeachment complaint like a hole in the head. I believe we lawmakers could better spend our time right now crafting reform laws that would help President Duterte achieve his government’s ambitious goal of sustaining the growth momentum, drastically reducing poverty and transforming our country into an upper middleincome economy by the time his term ends in 2022,” Villafuerte said. Nacionalista Party Rep. Robert Ace S. Barbers of the Second District

of Surigao del Norte said the public can expect the Lower House to junk the impeachment complaint against the President for being “baseless and unfounded”, especially with more lawmakers joining the PDP-Laban. Barbers said the impeachment complaint will “not prosper in a forum where accepted legal procedures are observed and respected. Let’s not be distracted by this divisive political exercise. Instead, let us allow our President to move on with the business of the government to serve and protect the people.” Even Speaker Pantaleon D. Alvarez has already expressed confidence the impeachment complaint against the President will not prosper in the lower chamber. Based on the rules, the House Committee on Justice has to decide first if the impeachment complaint against the President is sufficient in form and substance before endorsing it to the plenary. If the committee finds by a vote of the majority of all its members that a probable cause exists on the basis of the evidence adduced before the Committee, it shall submit with its report a resolution setting forth the Articles of Impeachment. Otherwise, the complaint shall be dismissed. Also, under the rule, a vote of at least one-third of all the members of the House is necessary for the approval of the resolution, setting forth the Articles of Impeachment. If the resolution is approved by the required vote, it shall then be endorsed to the Senate. Meanwhile, should the resolution fail to secure approval by the required vote, it shall result in the dismissal of the complaint for impeachment. On March 16 Alejano filed the first impeachment complaint against Duterte, saying the impeachment complaint was based on the chief executive’s alleged culpable violation of the Constitution, bribery, betrayal of public trust, graft and corruption, and other high crimes. “We are of the firm belief that President Duterte is unfit to hold the highest office of the land, and that impeachment is the legal and

AFP to host top Asean military officials in series of meetings By Rene Acosta @reneacostaBM

EGIONAL security issues will take center stage as the Armed Forces of the Philippines (AFP) will host top military officials from the Asean in a series of high-level meetings beginning today. Military Public Affairs Office chief Col. Edgard Arevalo said heads of the military from the 10 Asean members are expected to attend the Asean Chiefs of Defense Forces Informal Meeting (ACDFIM). “The heads of delegation will be joined by senior operations and intelligence officers who will be attending the Military Operations and Military Intelligence Informal Meetings,” he said. “The ACDFIM, and operations and intelligence meetings are annual events intended to provide an opportunity to discuss and assess in a very strategic, comprehensive, positive and productive manner all prominent issues and concerns of mutual interests,” he said. Military Operations and Military Intelligence Informal Meetings are

complementary to the ACDFIM and seek to build capacity and strengthen cooperation among Asean militaries in addressing common security challenges. Issues, such as maritime security, humanitarian assistance and disaster response, counterterrorism, infectious-disease management and peacekeeping, are expected to be discussed in the five-day gathering. The hosting and leadership of these meetings were aligned to the Asean chairmanship, which the Philippines is currently holding. AFP Chief of Staff Gen. Eduardo M. Año will lead the AFP’s delegation to the meetings. “The meetings will bolster the Asean military’s collective experience and resolve to combat modern global-security challenges; and ensure we are on the same page in our approaches to threats such as piracy and terrorism,” Año said. “Our hosting of these events is also timely in our hopes to cement our position in the Asean as a global partner and fully capable military, responsive to local and regional issues through consistent cooperation and innovation,” he said.

constitutional remedy to this situation,” he said. Alejano said all these actions constitute proper grounds for his impeachment pursuant to Sections 2 and 3, Article XI of the 1987 Constitution. “Duterte committed high crimes of bribery, multiple murder and

crimes against humanity when he adopted a state policy of inducing policemen, other law-enforcement authorities, and vigilante groups into the extrajudicial killings of more than 8,000 persons who were merely suspected of being drug offenders,” he said. Alejano said Duterte was in-

volvement in multiple murders as master mind of the Davao Death Squad. “He committed graft and corruption with the hiring of 11,000 ghost employees when he was still a mayor of Davao City; and his unexplained wealth amounting to more than P2 billion in deposits

and credits that flowed into his numerous bank accounts,” he said. The lawmaker said the filing of this complaint will prove there is no destabilization plot against Duterte, saying impeachment is a constitutional process of ousting a sitting president. Jovee Marie N. dela Cruz

Economy

A4 Monday, May 15, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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FILE photo

Gow files criminal charges ‘Recruiters see lost opportunity vs former Uniwide officials with new passport-renewal system’ U

By Recto S. Mercene

@rectomercene

HE Philippines is losing out to other labor-sending countries because of the new passportrenewal system, a recruitment consultant said.

Recruiters are complaining it is taking too long for workers they recruited to secure a visa, according to Manuel Geslani. The new procedure requires wouldbe overseas Filipino workers (OFWs) to book an appointment online with the Consular Affairs Department of the Department of Foreign Affairs (DFA) to process passports. Securing an appointment takes between two to

three months, Geslani said, adding that such time has resulted to delays. “Principals, or companies that need foreign workers, usually choose other migrant workers from other countries instead of waiting for three months,” Geslani said, sans citing the basis for his views. He added applying online is very difficult for Filipinos residing in farflung places, usually in Mindanao, since they do not have Internet access. “There is also a negative repercussion to the recruitment agencies that despite the demand for household service workers, there is a lack of qualified OFWs with valid passports that could be employed immediately.” He said recruitment officials have repeatedly requested the DFA to prioritize the passport processing for OFWs. Citing the Philippine Overseas Employment Administration (POEA), Geslani said there are 400,000 to 500,000 new hires, including seabased applicants, each year who require new passports. The figure excludes the millions of OFWs who come home to renew their contracts, Geslani said. The DFA has said there is an estimated 35,000 passport applicants daily. The overseas recruitment industry has been at loggerheads with the new officials of Consular Affairs when they rescinded an agreement signed in 2014 with the Federation of Manpower Exporters Inc. that allows the walk-in processing of new overseas applicants, provided they present a verified job orders from the POEA, according to recruitment consultant Manuel Geslani.

ni w ide Holdings Inc. (UHI) Chairman Jimmy Gow has filed criminal charges against former officials of the company, former executives of Land Bank of the Philippines (LandBank) and former Securities and Exchange Commission-UHI Receivership Committee Chairman Monico Jacob. Gow and UHI President Jesus L. Arranza filed the qualified theft and estafa cases after their recent review of UHI records showed that the over 27,000 shareholders of the company lost billions of pesos due to the respondents’ alleged “fraudulent handling” of UHI properties. In their eight-page affidavit, the complainants alleged that Jacob, former UHI CFO Jaime Cabangis, former UHI Assistant Vice President and Treasurer Corazon Rey and the other respondents “connived” in several transactions that caused the company to lose billions of pesos worth of shares of stocks and realestate properties without the UHI’s board and shareholders’ knowledge and approval. UHI became a publicly listed company in 1996 through an initial public offering that raised P4.3 billion in fresh capital for its expansion program, particularly its retail operations through Uniwide Sales Warehouse Club Inc. (USWCI), which posted P15 billion in sales in 1996. However, in 1997, LandBank stopped granting unsecured loans to USWCI. It also demanded collaterals for the unsecured loans it earlier granted to USWCI, a Uniwide Group company that does not have real-estate properties under

Lawmaker twits ERC for delays in FiT payments to RE developers By Lenie Lectura

@llectura

he chairman of the Senate Committee on Energy called the attention of the Energy Regulatory Commission (ERC) to the delays in the resolution of feed-in-tariff (FiT) payments owed to renewable-energy (RE) developers.

“These unwarranted delays in the ERC approval is the reason why Transco [National Transmission Corp.] has not been able to pay the RE developers. And because of these delays, we have to pay consequential costs,” Sen. Sherwin T. Gatchalian said. He was referring to the P6.6-billion backlog in FiT rate payments owed by the

government to RE developers for the year 2016, including P230 million in interest payments alone. Gatchalian linked the payment backlog to the sluggish action of ERC commissioners on applications of Transco to collect higher FiTAll rates aimed at augmenting its subsidy to eligible RE developers and allowing it to pay its obligations. “I hate to say it, but because of the delays of the ERC, we will be paying P230 million in interest payments. That’s why I am quite adamant in getting a definitive timetable [when the applications will likely be approved] from you [ERC] because I know that the amount will grow bigger. Every day it piles up,” Gatchalian said during a hearing of the Joint Congressional Power Commission (JCPC) on the status and implantation of the provisions of the

Renewable Energy Act. “In line with attracting investors and promoting RE…we will never get serious investors if we don’t fulfill our contractual obligations, and FiT-All is one of them,” he added. In December 2015 Transco sought to increase the FiT-All rate for 2016 to 12 centavos per kilowatt-hour. Before the application can be approved, Transco filed another application in December 2016, this time asking to further hike the rate to 22 centavos per kWh. ERC officials told members of the JCPC that it is set to issue its final approval of the 2016 application on June 9. On the other hand, they are also set to convene the first jurisdictional and expository meeting for the 2017 rate application on May 15, Monday, and its approval by September 2017.

Study highlights impact of shifting Asian consumer needs on businesses

new study identifies the biggest trends sweeping Asian societies and shows how enterprises and exporters can position themselves to meet the rapidly changing needs of consumers in the region. In “The Generation Game: Catering to Asia’s Future Life Stages”, market intelligence service provider Mintel said declining birth rates, aging demographics, urbanization and the need for higher productivity are all forcing change in Asian societies. In turn, companies need to understand these trends in order to effectively handle the challenges and leverage opportunities in a changing consumer landscape. The report noted that among students, for instance, there is now a shift in learning toward adoption of technology, experiencebased training, and “a smarter, personalized curriculum” that promotes critical thinking and adaptive skills that the youth need to compete in the workplace. For enterprises, this means making learning and knowledge a component of product marketing and promotion, such as by incorporating geography into stories about product sourcing, or discussing nutritional science with regard to ingredients used. “The previously hidden backend of the product delivery process can become as much a part of the product experience when put in the educational context,” the paper said.

As for Asian teens, the study describes them as “both very complex and potentially confused consumers”, making it important for entrepreneurs to recognize and cater to their special needs. “Whether it is fashion or food, movies or music, games or grades, teens are a key market for the next, new, big thing,” Mintel said. But they don’t just need to be sold to and left alone. The report suggests that companies build brand loyalty by offering “support for and a deeper engagement with teenagers in navigating through what are often the most emotionally difficult years of people’s lives, and aid in preparing them for the world of further education and work.” Meanwhile, younger Asians are notable for their preference to be free to move about and enjoy experiences, rather than tying themselves to purchasing a home and living in a single location. Companies must therefore provide products and services that are attuned to the shifting needs of these young consumers. “Renting temporary homes will decrease the likelihood of buying big household appliances and increase the likelihood of hiring services, such as laundry or home cleaning. This could shift the relationship for household appliance manufacturers or personal-care brands to service providers, rather than the end consumer, or perhaps to providing those services as well as the products that go with them.” Philexport News and Features

its name. According to the complaint, Cabangis then transferred USWCI’s P500 -million loans w ith LandBank to UHI without the knowledge and approval of the UHI board. After that, Cabangis and Rey allegedly connived to deliver by way of mortgage to LandBank—again without the knowledge and consent of the board—UHI prime real-estate properties valued at P3 billion and 359 millions shares of stocks worth P1.8 billion, as payment for the P500-million unsecured loans originally obtained by USWCI. In 1998 Cabangis and Rey reportedly prepared the filing of a rehabilitation plan, which was subsequently approved by the SEC, with Jacob designated as the UHI Receivership Committee head. Part of the rehab plan was to allow French retail giant Casino Guichard Perrachon to infuse fresh funds as buy-in so UHI can pay its loans and obtain capital for operation, as well. The deal, however, did not push through. After that, Jacob and the other respondents reportedly arranged the sale of UHI’s mortgaged properties by way of dacion worth P3 billion with LandBank. The complainants alleged that the dacion caused tremendous damage to UHI as the loans were overvalued, while the UHI properties were undervalued. Also, they said a 20-percent premium was added to UHI’s total loans with the LandBank as bank incentive. These acts, according to the complainants, caused sufferings and damage to UHI and its 27,000 shareholders.

Exporters urged to participate in Ripples to seize market opportunities

ew and existing exporting companies are encouraged to capture more market opportunities by participating specifically in a program of the Department of Trade and Industry that aims at yielding $1 billion in incremental export sales by 2022. Fenina Bonoan, assistant chief of the Export Marketing Bureau’s (EMB) Consumer and Industrial Division, said the Regional Interactive Platform for Philippine Exporters (Ripples) Plus has been expanded to include 12 priority sectors through the regionalization of innovation centers. Bonoan identified the priority sectors as electronic manufacturing services and semiconductor manufacturing service; automotive and auto parts; aerospace parts; chemicals; shipbuilding, roll-on, roll-off, as well as small- and medium-sized vessels; furniture, wearables and gifts, decors and housewares; tool and die; agri-business; information technology-business-process management; transport and logistics; tourism; and construction. She said the program provides interventions for micro, small and medium enterprises and large firms through training and capacity building; investment, marketing and promotion; support for innovation, product development and design; and market access facilitation through mutual recognition agreements and certification. These strategic company-level interventions are aimed to prepare these companies to compete in terms of volume, quality, price, packaging, compliance with market-entry requirements, rules and regulations, design leadership or alignment with current design trends. When export-ready, these companies are matched with prospective foreign buyers and promoted overseas. Philexport News and Features

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The Regions BusinessMirror

Baguio City registers 1.3 million tourist arrivals By Suzanne June G. Perante Special to the BusinessMirror

AGUIO CITY—At the onset of the summer season, as early as March, tourists would start flocking to Baguio City. The Summer Capital of the Philippines remains as a must-visit destination, apparently because of its cold weather and attractive destinations. The Baguio City Tourism Office welcomes and assures every visitor of security while in the city. A total of 152 establishments, from hotels to resorts, is more than enough to cater to tourists. These accommodation establishments helped a lot in terms of data gathering on the number of tourists arrivals in the city. A total of 1,294,906 tourists since February 2017 visited the City of Pines, showing an increase of about 16.11 percent from the previous year, the Tourists Statistics of Baguio City said. The peak months for tourist influx are noted during the Christmas season, the Panagbenga Flower Festival, Holy Week and the rest of summer. However, on regular days, visitors take advantage of even long weekends to enjoy and unwind in the city. The semitemperate climate is seen as an ideal reason for those who want to escape the scorching heat of the summer sun in the lowlands. Summer events, like the Deaf Festival, and other activities are considered as added factors that attract visitors.

The city tourism office identified the most visited spots in the city as Burnham Park located in the heart of the city along Harrison Road; Mines View Par; Wright Park; Presidential Mansion; and the Botanical Garden. These destinations conveniently serve as onestop shops for visitors, and are only five minutes to 10 minutes from the city proper. “The influx of tourists is being addressed through our constant communication with the Summer Vacation Committee [which includes the Baguio City Police Office]. We conduct regular meetings and trainings with Tourism Oriented Cops [TOPS] regarding the proper handling of tourists and traffic management. These TOPS could be found strategically on different tourist destinations in the city,” said Jose Maria Rivera, acting city tourism officer. Remarkably, people from Metro Manila usually dominate the tourist arrivals over others coming from the provinces.Meanwhiele, foreigners from countries like South Korea and United States lead other overseas visitors on having Baguio as a stopover point before trekking Mount Pulag, the highest peak in Luzon. A tour around Baguio would not be complete without the pasalubong or souvenirs. According to most pasalubong vendors along Governor Pack Road, good quality Baguio products, like Good Shepherd preserves and Tartland Lengua de Gato, continue to be the best sellers.

Editor: Efleda P. Campos • Monday, May 15, 2017 A5

ARMM seeks help of Islamic scholars in fight vs terrorism By Manuel T. Cayon | Mindanao Bureau Chief

@awimailbox

AVAO CITY—The Autonomous Region in Muslim Mindanao (ARMM) has summoned its Islamic scholars, the ulama, from across the country to help bolster its fight against terror.

Two of the country’s known terror groups are operating in the area. The ARMM gathered the ulamas for a three-day summit, from May 12 to 14, in Cotabato City to explore their role in the fight against terrorism. The ARMM has already recognized the admonition of Islamic leaders that terror groups have used the fundamental line of Islam to persuade Muslims to their side, targeting Westerners and governments supporting the West, in armed attacks and suicide bombers. Gov. Mujiv Hataman said, “Terrorists use inappropriate interpretations of Islamic principles to strengthen their cause and encourage the commission of vicious acts”.

“We urge our ulama that if we are in the right position, we should move to show what is right, and let’s condemn what is wrong,” he said. The ARMM Bureau of Public Information said the Philippines ranked 12th among the countries heavily affected by terrorism in the 2016 Global Terrorism Index of the Institute for Economics and Peace. It said the presence of the Abu Sayyaf Group and the Maute group, the country’s leading terrorist groups, in at least two of its provinces brings the ARMM at the forefront of the fight against terrorism in the country. The ARMM has recently declared war on terror, and it said the three-day Ulama Summit Against

Terrorism was an initial step of the ARMM government “to enlist the support of Islamic scholars to combat terrorism”. The outcome and resolutions made during the summit could not be immediately ascertained. Hataman said, “Muslim scholars can contribute to the advocacy against terrorism by educating people about the true teachings of Islam, most especially on the principles of justice, compassion, peace and harmony.” The ARMM noted the national government has considered terrorism as an urgent and critical national security threat. In November last year Maj. Gen. Datuk Wira Zamrose bin Mohd Zain, head of mission of the Malaysianled International Monitoring Team Batch 11, said terrorists may have been using the unregistered Islamic schools to raise local recruits. He said his site visits across Maguindanao and Lanao picked up information about the presence of terror groups. He said the frequency of reports was increasing, although he said the reports were still mainly coming from the National Police and the Army. “There are no reports coming from civilians or local officials,” he told journalists here who joined the

site visit in Maguindanao and South Cotabato of the community projects funded by either the Japanese embassy or the Japan International Cooperation Agency. He said the Maute group of Lanao del Sur has been mentioned as one of the terror groups. The group has been also flagged as a major operator in the September 2 bombing of a night market in Davao City that killed 15 persons and wounded 71 others. During the three-day summit, Sheikh Abdulrahman “Abu Hurayra” Udasan, mufti of the Darul-Ifta Bangsamoro, said “there should be a distinction between the normative teaching on Islam based on the glorious Koran and the cultural practices of the Muslims that may or may not be consistent with the normative teaching of Islam.” He said Islam means peace “and this can automatically counter terrorism and extremism, because peace in Islam is a key of association not isolation; it is a key of accommodation, not marginalization.” Aside from the ulama, the summit was also attended by local and regional government officials, military and police officials, representatives from civil-society organizations and the media.

Agriculture/Commodities BusinessMirror

Monday, May 15, 2017 • Editor: Jennifer A. Ng

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PHL rice imports seen hitting 1.8 MMT

By Jasper Emmanuel Y. Arcalas @jearcalas

he Philippines’s rice imports this year could reach 1.8 million metric tons (MMT) after the quantitative restriction (QR) on rice expires next month, according to the United States Department of Agriculture (USDA).

In its latest repor t tit led, “Grain: World Markets and Trade”, the USDA’s Foreign Agriculture Service (FAS) said the figure was 28.57 percent higher than its earlier estimate of 1.4 MMT. “The Philippines is up 400,000 metric tons [MT] to 1.8 MMT on strong demand for lower-priced imports following the anticipated expiration of the QRs,” the report read. The hike in the country’s rice imports would contribute to the spike in global grains trade next year. Total rice exports next year is poised to reach 42.249 MMT, 2

percent higher than the 41.319 MMT estimated for 2017, according to FAS. “Import demand from China, the European Union, Africa and the Philippines remains robust. The majority of rice is still consumed within the country where it is produced, with less than 10 percent of rice production traded on the global market,” the report read. The FAS report also forecasted that Philippine milled rice production in 2018 would decline to 11.2 MMT, from the estimated 11.5 MMT production this year, due to the contraction in

areas planted with rice. Next year the report noted that the country’s rice would decline to 4.5 million hectares, from 4.6 million has this year. Also, average rice yield is expected to go down to 3.95 MT per hectare from 3.97 MT per hectare, according to the report. According to a separate report of the USDA FAS agency in Manila published in March, the decline in output of the staple could also be attributed to the shift of Filipino rice farmers to other crops, such as corn, following the lifting of the QR on rice. In its May report, the FAS maintained its earlier forecast that the Philippines will be importing some 1.4 MMT of rice this year. The Department of Agriculture is targeting to produce 18.57 MMT of paddy rice this year, 5.33 percent higher than last year’s output of 17.63 MMT. The Philippines’s waiver on the special treatment for rice, which allowed the country to keep its QR on the staple, is set to expire on June 30. However, Republic Act 8178, or the Agricultural Tariffication Act, must also be amended before Manila could allow more rice imports.

Batangas group to revive 17th-century-old famed ‘barako’ coffee farming in Lipa City

ANAUAN CITY, Batangas— A group of former local gover nment executives, professionals and private-sector practitioners in this province are mulling to revive the 17th century-old and famed Batangas barako coffee far ming in the province. Jenelyn Asilo Aguilera, Batangas provincial public information officer, told the Philippine News Agency over the weekend that the Batangas Forum for Good Governance and Development Association Inc. has tackled the revival of the centuries-old “tough” coffee variety farming in Lipa City and other agricultural areas in the province.

Aguilera said Batangas Gov. Hermilando Mandanas was briefed on the various proposals and project undertakings by the Batangas Forum during their oath-taking rites in this city. T he Bat a ngas For u m, a t wo-year-old organization of Batangueños distinguished personalities and professionals from the various sectors, is a nonpartisan group whose advocacies are the promotion of competence, service excellence and sustainable development for the province, said Aguilera. One of the proposed projects of the forum is the promotion of the famous kapeng barako (Batangas brewed coffee) by encourag-

ing farmers and coffee growers to sustain the famous coffee product that earned the moniker barako, characteristic of the tough Batangueño trait. Aguilera said the group traced the beginnings of the kapeng barako cultivation in Barangay Pinagtong-ulan in Lipa City in 1740s. The forum’s new set of officers headed by reelected president and former Tanauan Mayor Paquito Ebron also eyed to institutionalize the Batangueño Awards Program to honor provincial constituents with outstanding accomplishments and achievements in various fields of endeavor starting on December this year in time for the “Ala Eh Festival”. The information officer also disclosed plans of the forum to promote the province as a haven for investors and support livelihood, tourism and environmental projects. PNA

A WORKER at the National Food Authority (NFA) in Bicutan arranges sacks of NFA rice.

FILE PHOTO

Sales of local organic products in NOPE 2017 hit ₧160.87M

ight companies that participated in Europe’s biggest trade show for natural products, health food and organic industries recorded sales of P160.87 million, according to the Department of |Agriculture (DA). Of the sales generated at the Natural and Organic Products Europe (NOPE) 2017, the DA said coconut products accounted for $3.2 million, or around P155 million. “These included virgin coconut oil, coconut milk, coconut syrup, coconut jam, coconut sugar and coco vinegar,” the DA said in a statement. Other organic products sold during the two-day NOPE 2017 were guyabano tea, calamansi soap, malunggay tea, food supplements/vitamins and ointment. Sales of noncoconut products amounted to roughly P4.8 million. The eight small and medium enterprises assisted by the DA were Lao Integrated Farms Inc. and

Healthy Sweets Mindanao Corp., Tropicana Food Products Inc., Cocoplus Aquarian Development Corp., Joyful Garden Farm/ Organic Farmers Association Inc., Akita Herbal Products, Giga Natural Products Corp. and Business People Inc. Products promoted and showcased were coconut-based sugar, flour, desiccated coconut, amino sauce, syrup, sap vinegar, chips, balls, milk powder, spread, virgin coconut oil, water, fruit-based candies, peanut butter, turmeric ice cream, tea, muscovado sugar, fancy and organic rice, and personal and wellness products. “Promotional events, such as NOPE, always provide Filipino agribusiness firms with an opportunity to introduce and innovate on their existing products to capture the market, and to build linkages with their prospective buyers,” the DA said. The DA said the firms’ participation in NOPE 2017, which was

held last month, is part of the government’s efforts to expand exports of organic and naturally grown products. According to the DA, the UK is a thriving market for organic products. In 2016 UK’s organic market reached a little over £2 billion, an increase of 7.1 percent in total sales of organic products from the previous year, based on Soil Association’s latest report. Industry insiders said the increase in sales indicates that organic products, both fresh and processed, are now a core part of UK’s mainstream market, thanks to the growing popularity of organic produce as safe and healthy food. Beyond organic, the DA said the UK is also a huge market for premium agricultural and marine produce, such as coconut, banana, mango and tuna, as well as processed ones, such as condiments and snacks, which the Philippines could supply. Jasper Emmanuel Y. Arcalas

Urban farming: Strengthening our understanding and respect for food and its origins

ur vision is to bring to life the impact of urban farming and, in doing so, strengthen our understanding and respect for food and its origins. Underprivileged people living in Metro Manila, in particular, have been too segregated from nature. Urban farming is an ideological and physical reaction to this. Urban far ming encourages growing food at underutilized spaces in the cities of Manila. Urban far ming /grow ing food reconnects urbanites to nature, conserves natural resources and cultivates a sense of community if we succeed to get poor families to join hands with us. The idea is to develop a system in which local government units (LGUs) provide underutilized spaces, in which families living in the streets and under bridges get involved in planting and harvesting vegetables and in which hotels and restaurants, schools and residences buy half the vegetables harvested daily. What happens to the other half of the vegetables? The families involved

Henry J. Schumacher

europe Beat eat them, improve the nutrition and the children going to school under the Department of Social Welfare and Development conditional cash transfer system will improve their education results. We started with this vision toward the end of last year; we found companies willing to make funds available for this exciting endeavour and identified LGUs willing to partner with us, understanding the value of the program and the need to help the poor, on a sustainable basis. Our vision is also that these families without shelter in Metro Manila will be better off returning to the provinces, applying what they have learned in urban farming. In this context, let us recall that no country

has escaped poverty without driving agriculture and substantially raising farm productivity. Food production is essential for a people to be healthy and productive. In terms of jobs and livelihood, agriculture is super important. The key is also to convince the youth that there is a future in agriculture. Young people should get access to land, be provided extension services, be allowed to become agripreneurs, be encouraged to become part of the agri-food supply chain (as we try to develop in urban farming) and processing harvests/enter into food processing in the neighbourhood. Agripreneurship—the most powerful and sustainable approach to spur job creation, “the capacity to turn dirt into gold”, agripreneurs take advantage of problems and make profits by offering solutions. Youth empowerment must focus on changing the young generation’s mindset and culture. Education and motivation matter—and when they result in a sufficient number of people becoming successful apripreneurs, those people can dra-

matically improve the employment situation in rural areas for everyone. Imagination, inspiration, creativity, passion and the pursuit of happiness matter. The government (especially the departments of Agriculture, Trade and Social Welfare and Development) must certainly do its part, but it is certainly wrong to only wait for the government to act. We must become agents for our own wellbeing— and the young generation must be taught accordingly. Young people embody the future—something, we shouldn’t take for granted. Young people need good education (vocational being very much part of it) and decent jobs. They deserve good future prospects and must develop their self-esteem to assume responsibilities (and stay away from crime and drugs). If societies fail to give their youth opportunities, there will neither be sustainable economic growth nor a fair and equal society and political stability. Join us in this vision—contact me at Schumacher@mca.ph.

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Editor: Lyn Resurreccion • Monday, May 15, 2017 A7

Cooperation helped stem cyber-attack spread

ONDON—The cyber attack that spread malicious software around the world, shutting down networks at hospitals, banks and government agencies, was stemmed by a young British researcher and an inexpensive domain registration, with help from another 20-something security engineer in the US.

Britain’s National Cyber Security Center and others were hailing the cyber-security researcher, a 22-year-old identified online only as MalwareTech, who—unintentionally at first—discovered a “kill switch” that halted the unprecedented outbreak. By then, the ransomware attack had hobbled Britain’s hospital network and computer systems in several countries, in an effort to extort money from computer users. But the researcher’s actions may have saved companies and governments millions of dollars and slowed the outbreak before computers in the US were more widely affected. MalwareTech said in a blog post last Saturday he had returned from lunch with a friend last Friday and learned that networks across Britain’s health system had been hit by ransomware, tipping him off that “this was something big”. He began analyzing a sample of the malicious software and noticed its code included a hidden Web address that wasn’t registered. He said he promptly registered the domain, something he regularly does to try to discover ways to track or stop malicious software.

Sinkhole

ACROSS an ocean, Darien Huss, a 28-year-old research engineer for the cyber-security firm Proofpoint, was doing his own analysis. The western Michigan resident said he noticed the authors of the malware had left in a feature known as a kill switch. Huss took a screen shot of his discovery and shared it on Twitter. MalwareTech and Huss are part of a large global cyber-security community of people, working independently or for security companies, who are constantly watching for attacks and working together to stop or prevent them, often sharing information via Twitter. It’s not uncommon for them to use aliases, either to protect themselves from retaliatory attacks or for privacy. Soon Huss and MalwareTech were communicating about what they’d found: That registering the domain name and redirecting the attacks to MalwareTech’s server had activated the kill switch, halting the ransomware’s infections—creating what’s called a “sinkhole”. Who perpetrated this wave of attacks remains unknown. Two security firms—Kaspersky Lab and Avast—said they identified the malware software in more than 70 countries. Both said Russia was hit hardest. These hackers “have caused enormous amounts of disruption—probably the biggest ransomware cyberattack in history,” said Graham Cluley, a veteran of the antivirus industry in Oxford, England.

Widespread

THE ransomware exploits a vulnerability in Microsoft Windows that was purportedly identified by the US National Security Agency (NSA) for its own intelligence-gathering purposes. Hackers said they stole the tools from the NSA and dumped them on the Internet. A malware tracking map showed “WannaCry” infections were widespread. Britain canceled or delayed treatments for thousands of patients. Train systems were hit in Germany and Russia, and phone companies in Madrid and Moscow. Renault’s futuristic assembly line in Slovenia, where rows of robots weld car bodies together, was stopped cold. In Brazil the social security system had to disconnect its computers and cancel public access. But while FedEx Corp. reported its Windows computers were “experiencing interference” from malware—it wouldn’t say if it had been hit by the ransomware—other impacts in the US were not readily apparent last Saturday. The worldwide effort to extort cash from computer users spread so widely that Microsoft quickly changed its policy, making security fixes for this vulnerability available for free for the older Windows systems still used by millions of individuals and smaller businesses. Britain’s home secretary said one in five of 248 National Health Service (NHS) groups had been hit. Home Secretary Amber Rudd said all but six of the NHS trusts back to normal last Saturday.

Biggest

THE UK’s National Cyber Security Center was “working round the clock” to restore vital health services, while urging people to update security-software fixes, run antivirus software and back up their data elsewhere. All this may be just a taste of what’s coming, another cyber security expert warned. Computer users worldwide—and everyone else who depends on them—should assume that the next big ransomware attack has already been launched, and just hasn’t manifested itself yet, said Ori Eisen, founder of the Trusona cyber-security firm in Scottsdale, Arizona. The attack held hospitals and other entities hostage by freezing computers, encrypting data and demanding money through online bitcoin payments. But it appears to be “low-level” stuff, Eisen said last Saturday, given the amount of ransom demanded—$300 at first, rising to $600 before it destroys files hours later. This is already believed to be the biggest online extortion attack ever recorded, disrupting services in nations, as diverse as the US, Ukraine, Brazil, Spain and India. Europol, the

European Union’s police agency, said the onslaught was at “an unprecedented level, and will require a complex international investigation to identify the culprits”.

Heroes

HUSS a nd ot hers were ca l l ing

MalwareTech a hero last Saturday, with Huss adding the global cybersecurity community was working “as a team” to stop the infections from spreading. “I think the security industry as a whole should be considered heroes,” he said.

But he also said he’s concerned the authors of the malware could rerelease it—perhaps in the next few days or weeks—without a kill switch or with a better one, or that copycats could mimic the attack. The MalwareTech researcher agreed that the threat hasn’t disappeared.

“One thing that is very important to note is our sinkholing only stops this sample, and there is nothing stopping them removing the domain check and trying again, so it’s incredibly important that any unpatched systems are patched as quickly as possible,” he warned. AP

Monday, May 15, 2017

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N. Korea test-fires missile, challenging new leader in South

EOUL, South Korea—North Korea on Sunday test-launched a ballistic missile that flew for half an hour and reached an unusually high altitude before landing in the Sea of Japan, the South Korean, Japanese and US militaries said. The launch, which Tokyo said could be of a new type of missile, is a direct challenge to the new South Korean president elected four days ago and comes as US, Japanese and European navies gather for joint war games in the Pacific.

It wasn’t immediately clear what type of ballistic missile was launched, the seventh such firing this year, although the US Pacific Command said that “the flight is not consistent with an intercontinental ballistic missile”. Japanese officials, however, said the missile flew for about 30 minutes, traveling about 800 kilometers (500 miles) and reaching an altitude of 2,000 km—a flight pattern that could indicate a new type of missile. David Wright, codirector of the Global Security Program at the Union of Concerned Scientists, said that the missile could have a range of 4,500 km if flown on a standard, instead of a lofted, trajectory—considerably longer than Pyongyang’s

current missiles. He said on Sunday’s launch may have been of a new mobile, two-stage liquid-fueled missile North Korea displayed in a huge April 15 military parade. The estimated range of the North’s Musudan missile is about 3,000 km, Wright said. That’s a little less than the distance between North Korea and the US Pacific island of Guam. A North Korean missile would need to travel more than 8,000 km to reach the US West Coast. Outside militaries and experts will closely analyze what the North fired. While Pyongyang regularly tests shorter-range missiles, it is also working to master the technology needed to field nuclear-tipped missiles that can reach the US main-

land. Past North Korean missiles have flown farther than Sunday’s test, landing closer to Japan, but this launch follows a series of highprofile failures.

dent said we are leaving open the possibility of dialogue with North Korea, but we should sternly deal with a provocation to prevent North Korea from miscalculating.”

Flagrant menace

Resolute response

THE White House said in a statement that North Korea has been “a flagrant menace for far too long”. and that South Korea and Japan have been watching the situation closely with the US. The statement says Washington maintains its “ironclad commitment” to stand with its allies in the face of the serious threat posed by North Korea. The latest “provocation” should serve as a call for all nations to implement far stronger sanctions against the North, it said. Whatever the type of missile, the launch forces the new South Korean leader, Moon Jae-in, to put dealing with Pyongyang, at least for now, above the domestic economic agenda he had made a priority during his early days in office. Moon, who favors a softer approach to the North than his conservative predecessors, strongly condemned the launch during an emergency national security meeting, calling it a clear violation of UN Security Council resolutions and a serious challenge to international peace and security, according to senior presidential secretary Yoon Young-chan. “The president expressed deep regret over the fact that this reckless provocation...occurred just days after a new government was launched in South Korea,” Yoon told a televised conference. “The presi-

SOUTH Korea’s military warned that North Korea will face an unspecified “strong punishment” by Seoul and Washington if it continues provocations. Japanese Prime Minister Shinzo Abe told reporters that the launch was “absolutely unacceptable”, and that Japan will respond resolutely. Defense Minister Tomomi Inada said North Korea might have launched a “new type of missile,” given the altitude and duration of its flight. But she said more analysis was needed. Inada’s remarks suggest the missile might have been on a “lofted” trajectory, meaning it could have a far longer range than it actually flew. Japan’s Kyodo News said the missile may be capable of covering a range as far as 4,000 km (2,500 miles) if launched at a normal trajectory, citing unidentified sources. South Korea’s Joint Chiefs of Staff said in a statement that the missile was fired early on Sunday morning from near Kusong, in North Phyongan province. North Korea’s past satellite rocket launches have been called clandestine tests of ICBM technology, but it is not believed to have tested a true intercontinental ballistic missile yet. The Trump administration has called North Korean ballistic and nuclear efforts unacceptable, and has swung between threats of

military action and offers to talk as it formulates a policy.

Hostile policy

THE North’s state media said on Saturday the nation will bolster its nuclear capability unless the United States abandons its hostile policy. “The US should never expect us to give up our nuclear capability,” the main Rodong newspaper said in a commentary carried by the Korean Central News Agency. It said President Donald J. Trump’s “maximum pressure and engagement” policy is only aimed at “stifling us”, and will compel the North to “strengthen our nuclear deterrent at the maximum speed.” The launch also comes as troops from the US, Japan and two European nations gather near Guam for drills that are partly a message to North Korea. The USS Carl Vinson, an aircraft supercarrier, is also engaging with South Korean navy ships in waters off the Korean Peninsula, according to Seoul’s Defense Ministry. Moon, the first liberal leader in Seoul in nearly a decade, said as he took his oath of office that he’d be willing to visit the North if the circumstances were right. Trump has also said he’d be “honored” to talk with leader Kim Jong Un under favorable conditions. On Saturday a top North Korean diplomat in charge of US relations, Choe Son Hui, told reporters in Beijing that Pyongyang would be willing to meet with the Trump administration for negotiations “if the conditions are set.” She did not elaborate. AP

Poland unveils monument to hero slain by communists

ARSAW, Poland—Warsaw’s mayor unveiled a monument last Saturday to a World War II hero who volunteered to go to the Nazi’s Auschwitz death camp and informed firsthand on atrocities there but was later executed by Poland’s communist regime. The stone-and-metal memorial for Capt. Witold Pilecki is near the place where in September 1940 the clandestine army fighter let himself be caught by the occupying Nazi Germans. It was a step toward becoming an inmate of Auschwitz, which the Germans operated in southern Poland. Pilecki’s son, Andrzej Pilecki, and daughter, Zofia Pilecka-Optulowicz, and other descendants joined hundreds of Warsaw residents and authorities at Saturday’s ceremony. Deputy Prime Minister Mateusz Morawiecki said Pilecki was twice victorious, first when he was ready to sacrifice his life for the defense of Poland and second when the memory of him and other resistance fighters survived the communist regime. Pilecki wrote and smuggled out secret reports from Auschwitz to his superiors before fleeing under the cover of the night in April 1943. AP

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Oil boomlet in N. Dakota after pipeline finished

ISMARCK, North Dakota— There are hundreds more jobs than takers in the heart of North Dakota’s oil patch. Finding a hotel room, parking space or table at a restaurant is no longer easy. More than two years after the state’s unprecedented oil bonanza fizzled to a lull, North Dakota— the nation’s No. 2 oil producer behind Texas—is experiencing a sort of boomlet that has pushed daily production back above 1 million barrels daily. “There is a long-term optimism that was not here just a year ago,” said Williston Republican Sen. Brad Bekkedahl, whose western North Dakota district is in the epicenter of the state’s oil-producing region. Industry officials and others say the uptick comes from a bump in crude prices, regulatory certainty with the more drill-friendly Trump administration, better technology, and the prospect of nearly half of the state’s crude coursing through the disputed Dakota Access Pipeline, which could open markets abroad where top prices are typically fetched. Though the pipeline still faces opposition from American Indian tribes and environmentalists who fear it threatens cultural

sites and drinking water, Ron Ness, president of the North Dakota Petroleum Council, calls it a “game-changer that opens up everything”.

Opens possibility

THE $3.8-billion pipeline—expected to be fully operating next month—opens up the possibility for North Dakota oil to be sold on the world market, where industry officials say it could earn several dollars more per barrel. Shippers also can save about $3 per barrel moving the oil by pipeline rather than using the mile-long trains that have carried North Dakota crude to the Gulf Coast since 2008, industry officials say. “We can compete with the world,” said Ness, whose group represents several hundred companies working in North Dakota’s oil patch. At capacity, the Dakota Access pipeline will be able to transport half of the daily crude production from North Dakota’s Bakken oil fields to Illinois. From there, the

In this December 19, 2014, file photo, oil-pump jacks work in unison in Williston, North Dakota. In the heart of North Dakota’s oil patch, there are hundreds of more jobs than takers. AP

crude will be put into another pipeline to the Gulf Coast, where it can be used at refineries or loaded on tankers to overseas markets. Trains will still be used to take North Dakota crude to other places in the US. The price for North Dakota sweet crude has risen about $10 a barrel from a year ago and about 50 drill rigs were working in the

state last week, up more than 80 percent from the same time last year. Daily production is up more than 6 percent from the worst of the slump. As oil prices slid, companies worked to improve efficiencies, including the time it takes to drill a well in North Dakota. Ness said a well now can be drilled in about 12 days, compared with

about 20 just a couple of years ago.

Long run

THE increase in drilling activity has created a big work force shortage. Phil Davis, a spokesman for Job Service North Dakota, said 500 more jobs are listed in the Williston area than one year ago. And they’re not just oil-related jobs.

“Every business on Main Street needs staff,” Davis said. The US Department of Energy says increased drilling will boost cr ude product ion t h is year and next, with a projection of 10 million barrels daily in 2018, up about 1 million barrels from last year. Margaret Coleman, a geologist and analyst with the agency, said much of the growth is expected to come from Texas, though North Dakota is expected to remain above 1 million barrels over the next two years. The two states account for about half of US crude-oil production. Industry critics hope North Dakota reacts differently than it did during the state’s boom that began in earnest a decade ago. Wayde Schafer, a North Dakota spokesman for the Sierra Club, points to problems that included increased crime and traffic, and a rash of oil and saltwater spills. “There has to be some order and control,” Schafer said. “Oil companies were elbowing each other at the trough and it was a nightmare.” Gov. Doug Burgum acknowledged the state faced challenges during the past boom, but “from a regulator standpoint, we are smarter than we were.” The Republican governor said a strong global demand for oil is good for his state. “There isn’t enough supply of renewables to take over for oil and gas anytime in the next couple of decades,” Burgum said. “So there’s a long run ahead here.” AP

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India, Pakistan armies trade fire Lift arms embargo in Kashmir; two civilians dead on Libya, Egypt urges

RINAGAR, India—Indian and Pakistani troops traded fire in the disputed Himalayan region of Kashmir on Saturday, killing two civilians and wounding six others, officials said.

Indian army spokesman Lt. Col. Manish Mehta said Pakistani soldiers started shelling and firing at Indian military posts in the morning in the Nowshera sector along the highly militarized Line

of Control that divides the region between India and Pakistan. He said Indian troops returned fire and the gunbattle was still ongoing last Saturday afternoon. Pakistan’s army denied it initiat-

ed the clash and instead blamed Indian soldiers for firing and shelling in at least seven sectors in violation of a 2003 cease-fire. It said three Pakistani civilians were wounded in the violence. The nuclear-armed archrivals routinely accuse each other of initiating border clashes. Shahid Iqbal, the civilian administrator in the Indian-controlled part of Kashmir, said two civilians on the Indian side were killed—a 13-yearold girl and a 51-year-old man—and three others were wounded. Iqbal said that more than 1,500 people in about 15 villages were still trapped in their homes, which were

in the direct line of fire. Earlier this month India accused Pakistani soldiers of killing two Indian soldiers and mutilating their bodies, an allegation Islamabad denied. Last year Indian and Pakistani soldiers engaged in some of the worst fighting along the Line of Control since the two nations agreed to the cease-fire accord. India and Pakistan have a long history of bitter relations over Kashmir, a territory claimed by both. They have fought two of their three wars over the region since they gained independence from British colonial rule in 1947. AP

AIRO—Egyptian President Abdel-Fattah el-Sissi reiterated a call on the international community to lift an arms embargo on Libya last Saturday, which would allow weapons to be delivered legally to a powerful general he backs in the fractured country’s east. After meeting Field Marshal Khalifa Hifter in Cairo, el-Sissi, himself a former general, said in a statement that Hifter’s Libyan National Army required the weapons to fight terrorism. Efforts should be made to stop foreign funding from flowing to terrorist groups in Libya, he added. Libya descended into chaos following the 2011 Nato-backed up-

For Palestinians in Lebanon, nearly 7 decades of despair

IDON, Lebanon—Ahmad Dawoud recalls the day 10 years ago when a Lebanese soldier asked to search his taxi. Then 17, the Palestinian didn’t wait for the soldier to find the weapons hidden in the trunk. He jumped from the car and fled into the nearby Palestinian refugee camp, where the Lebanese army has no authority. But it was not long afterward that Dawoud, who once admired the radical groups that have sprouted in the camps in Lebanon, decided he was tired of running. That same year, in 2007, he surrendered to authorities and spent 14 hard months in jail. Although he was released without a conviction, he couldn’t erase the biggest strike against him: As a Palestinian in Lebanon, he is a stateless, second-class resident in the only country where he’s ever lived. On Monday Palestinians mark 69 years since hundreds of thousands of them were forced from their homes during the 1948 war that led to the creation of Israel. Many settled in the neighboring West Bank, Gaza, Jordan, Syria and Lebanon. As refugees, various UN charters entitle them and their descendants to the right to work and a dignified living until they can return to their homes or such settlement is reached. But Palestinians in Lebanon suffer discrimination in nearly every aspect of daily life, feeding a desperation that is tearing their community apart. Many live in settlements officially recognized as refugee camps but better described as concrete ghettos ringed by checkpoints and, in some cases, blast walls and barbed wire. The UN runs schools and subsidizes health care inside.

Less than zero

IN Lebanon there are 450,000 refugees registered in 12 camps, where Lebanese authorities have no jurisdiction inside. “Our lot is less than zero,” Dawoud said in a recent interview outside Ein el-Hilweh, the crowded camp in Sidon that is one of the most volatile. On peaceful days, children play in the damp alleys and merchants park their carts of produce along the camp’s main streets. But the place feels hopelessly divided along factional and militant lines, and it frequently breaks down into fighting between Palestinian security forces and militants or gangs that capitalize on the general despair. Last month 10 people were killed in a flare-up that drove out thousands of the camp’s estimated population of 75,000. Palestinians are prohibited from working in most professions, from medicine to transportation. Because of restrictions on ownership, what little property they have is bought under Lebanese names, leaving them vulnerable to embezzlement and expropriation. They pay into Lebanon’s social security fund but receive no ben-

rising that toppled and killed leader Muammar Qaddafi. The oil-rich nation is now split between rival governments and militias, and Islamic State fighters entered the country amid the chaos, but were largely beaten back. Hifter is allied with the internationally recognized parliament in eastern Libya and at odds with the UN-backed government in Tripoli, and has fought militias loyal to western factions in the past. Egypt has hosted Hifter, as well as leaders from Libya’s west, for talks in Cairo in an attempt to mediate, and says it wishes to support Libya’s sovereignty and territorial integrity. AP

All eyes on turnout as Iran’s presidential poll looms closer

EHRAN, Iran—Iran’s presidential election may turn on turnout. Historically, the more Iranians who cast ballots, the greater the chance a reformist or a moderate like incumbent President Hassan Rouhani will be elected. However, Rouhani’s bid for another four-year term comes amid apathy and grumbling from an electorate that largely hasn’t seen the benefits of his signature nuclear deal with world powers. As his opponents promise populist cash handouts to the poor, Rouhani needs all the voters he can to cast ballots on May 19. But even some of his supporters say they may stay home. “I will not vote,” said Hossein Ghasemi, a 35-year-old taxi driver who voted for Rouhani in 2013. “None of them care about our demands and difficulties linked to daily increasing prices.” Rouhani faces five opponents in the election, but some may well drop out in the coming days to boost the chances of the most-prominent candidates. Eshaq Jahangiri, one of Rouhani’s vice presidents, is expected to leave the race to help his boss.

Main rival

IN this May 4 photo, a boy walks by graffiti of the Palestinian flags with Arabic reads “The flag is four colors that shine on the face of the sun” in the Bourj al-Barajneh Palestinian refugee camp in Beirut, Lebanon. On Monday Palestinians mark 69 years since hundreds of thousands of them were forced from their homes during the 1948 war that led to the creation of Israel. AP

efits. Medical costs are crippling. And they have little hope for remediation from the Lebanese courts.

Poverty line

DOCTORS are prohibited from working in the Lebanese market, so they find work only in the camps or agree to work for Lebanese clinics off the books, and sign prescriptions under Lebanese doctors’ names. That leaves them open to employer abuse, a condition normally associated with low-skill work. “If a young boy gets in trouble because he is Palestinian, the prosecutor writes in his note to the judge, ‘He is Palestinian,’ meaning: ‘Do what you wish to him. Be cruel to him. Forget about his rights,’” said Sheikh Mohammad Muwad, a Palestinian imam in Sidon. The crush of war refugees from Syria has made it even harder for Palestinians here to find work. Nearly six in 10 under age 25 are unemployed, according to the UN’s Palestinian relief agency UNRWA, and two-thirds of all Palestinians here live below the poverty line. UNRWA Country Director Claudio Cordone said they feel trapped in political limbo and see an “almost to-

tal lack of meaningful political prospects of a solution” to their original displacement from Palestine. Lebanese politicians say that assimilating Palestinians into society would undermine their right to return. But Palestinians say they are not asking for assimilation or nationality, just civil rights. “They starve us, so we go back to Palestine. They deprive us, so that we go back to Palestine. Well, go ahead, send us back to Palestine! Let us go to the border, and we will march back into Palestine, no matter how many martyrs we must give,” Muwad said.

Shared disaffection

FOR those in the camps, the line between hustling and criminality is often blurred. Unemployed and feeling abandoned by the authorities, many turn to gangs for work. Adding to this is a widely shared disaffection with the Palestine Liberation Organization (PLO), which many Palestinians now see as having sold out their rights with the failed Oslo Accords of 1994. This has helped fuel the rise of radical Islam—a shift in the occupied Palestinian territories that is

reflected by Hamas’ rising popularity, and one outside the territories in the meteoric trajectory of militant groups such as Fatah al-Islam in the volatile and deprived Nahr al-Bared camp. Growing up in Nahr al-Bared, a camp much like Ein el-Hilweh, Dawoud felt a strong affiliation for Fatah al-Islam, his gateway to radical extremism. “They were the only ones who seemed honest,” he said. “Of course, later I figured out they were just like everyone else, too.” In 2007 the Lebanese army razed most of Nahr al-Bared to crush Fatah al-Islam. By that time, Dawoud already was in Ein el-Hilweh, and his arrest was the beginning of a slow falling out with the gangs that once sheltered him and treated him like a brother. After his stint in prison, they began to feel they couldn’t trust him, and he was chased out of Ein el-Hilweh in 2013. Now, he can only enter the parts of the settlement firmly under PLO control.

Enduring discrimination

WITH no job, no prospects and little wealth, Dawoud now runs errands for others in his white 1980s-era

BMW—all done under the table, of course. Palestinians cannot apply for the red license plates that identify taxis and other commercial vehicles. “I don’t even think about marrying and getting into those situations,” he said, waving off starting a family at age 27. His ambition now is to apply for a visa to leave Lebanon. But first he needs a travel document, and for that he needs to be on good terms with the Lebanese authorities. Not all Palestinians live in camps, but even the most privileged among them endure discrimination. At a panel on Palestinian labor rights at the American University of Beirut, Muhammad Hussein asked a Lebanese Labor Ministry official why he was denied work even in sectors that are formally open to Palestinian employment. The 22-year-old graduate showed the official an email he received from a marketing firm in Dubai refusing his job application on the grounds that the Lebanese office had to give priority to Lebanese workers. “The problem isn’t finding vacancies,” Hussein said. “It’s getting the job.” AP

A reformist dropping out ahead of the 2013 election helped Rouhani edge out a nearly 51-percent majority to win. That election saw turnout of 73 percent, a high figure Rouhani will need to duplicate among Iran’s 56.4 million eligible voters this time around. If no candidate wins an outright majority, the top two candidates will compete in a second round of voting on May 26. There are already warning signs on the horizon for Rouhani. A report on Monday by the state-run IRNA news agency said a survey of over 6,000 eligible voters found over a third saying they would not be voting, while another 46 percent said they would pick their candidate later. It offered no margin of error on the nationwide random survey. “The main rival of Rouhani is ‘lack of participation’ by people,” said Saeed Leilaz, a Tehran-based political analyst. That lack of enthusiasm stems from the average Iranian’s major concern: The economy. While the nuclear deal allowed Iran to resume crucial oil exports to Europe and sign billion-dollar airplane deals, chronic unemployment and inflation remain major concerns. Iran’s universities continue to graduate its youth without jobs available.

Economic crisis

THE economic crisis can be seen in pictures of homeless people sleeping in graves outside of Tehran, images that shocked the nation and Rouhani himself. The poor, both young and old, can be seen in Iranian cities searching trash for food or cleaning car windows for loose change. AP

news@businessmirror.com.ph

AseanMonday BusinessMirror

Editor: Max V. de Leon • Monday, May 15, 2017 A11

Even in faraway US, Indonesian seafood enforcer wins acclaim

ASHINGTON—A highschool dropout-turnedseafood entrepreneur is leading Indonesia’s crackdown on illegal fishing, winning plaudits from conservationists and awards as far away as Washington despite her explosive methods.

A favorite tactic is seizing foreign fishing vessels and then blowing up the empty boats into smithereens to send a message to her country’s neighbors. Susi Pudjiastuti, honored this week in Washington for her ecological work, has led the charge in destroying hundreds of fishing vessels in the past two years as the Indonesian government’s minister for maritime affairs and fisheries. Her efforts haven’t eliminated a problem that has plagued the archipelago nation for decades, she said, but they have boosted fish

stocks and curbed smuggling. Catches of anchovies, king prawns and yellow fin tuna are up, helping local fishermen and reducing food prices, Pudjiastuti said. “What we actually earn also is respect,” Pudjiastuti said in the American capital, where she joined other recipients of the annual Peter Benchley Ocean Awards—named for the author of Jaws. She was cited for her efforts in protecting Indonesia’s marine ecosystem, and tackling poachers and organized crime. “ They cannot just do anything anymore,” Pudjiastuti added.

China’s Xi says Silk Road plan boosts finance, security ties B

EIJING—Chinese President Xi Jinping called on Sunday for closer cooperation among countries across Asia and Europe in areas from antiterrorism to finance, as officials from dozens of governments met to promote a Beijing-led initiative to expand trade links across the region. Speaking to an audience that included Russian President Vladimir Putin and leaders of 29 other countries, Xi outlined the most ambitious political vision yet for the “Belt and Road Initiative”, a multibillion-dollar project to build ports, railways and other facilities. It covers an arc of 65 countries, reaching from the South Pacific through South and Central Asia to Europe and Africa. The initiative would provide some of the $7 trillion of investment in infrastructure the Asian Development Bank says the region needs this decade. But governments including Russia, the US and India are uneasy that China is using its status as the second-largest global economy to expand its political influence. Xi insisted his government has “no desire to impose our will on others”. But, he also called for economic integration and cooperation on financial regulation, antiterrorism and security—all fields in which China’s economic heft would give it a prominent voice. “We should foster a vision of common, comprehensive, cooperative and sustainable security and create a security environment built and shared by all,” said Xi. He called for stepped-up action against terrorism and what he called its root causes of poverty and social injustice. In a reminder of the potential security threats facing the region, North Korea test-fired a ballistic missile on Sunday that flew for a half-hour and reached an unusually high altitude of 2,000 kilometers. The launch was seen as a challenge to a new South Korean president, who was elected last week and came as US, Japanese and European naval forces gathered for war games in the Pacific. The “Belt and Road” is Xi’s signature foreign policy initiative. The two-day meeting that started

A security guard stands at the entrance to the opening ceremony of the Belt and Road Forum in Beijing on May 14. AP

on Sunday gives him a platform to promote his image as a global leader and an advocate of free trade, in contrast to President Donald J. Trump, who has called for import restrictions.

Breeding ground

XI said Beijing will contribute an additional 100 billion yuan ($14.5 billion) to the Silk Road Fund set up in 2014 to finance infrastructure projects. He said his government will provide aid worth 60 billion yuan ($8.7 billion) to developing countries and international organizations. Two Chinese government-run banks also will set up lending facilities valued at a total of 380 billion yuan ($55 billion) to support the initiative, Xi said. Speaking after Xi, Putin echoed the Chinese president’s theme that economic development would help to nurture political stability. The Russian leader said the rise of trade protectionism is creating a “breeding ground for international extremism and terrorism”. “Russia believes that the future of the Eurasian partnership is not

just about fostering ties between a few countries and economies,” said Putin. “It should change the very political and economic landscape of the continent, bringing Eurasia stability, prosperity.” Xi said Beijing plans to announce dozens of new investment and other agreements during the two-day event. Other leaders at the gathering included Prime Minister Nawaz Sharif of Pakistan and President Michelle Bachelet of Chile. No major Western leaders attended, though Britain, France and Germany were represented by top finance officials. The US delegation was led by Matt Pottinger, special assistant to Trump and senior director for East Asia at the National Security Council.

Natural outgrowth

THE US and other governments have said “Belt and Road” is a natural outgrowth of China’s status as the biggest global trader, and they welcome the investment. But they also have expressed concern Beijing might undermine human rights and international standards for lending, or leave poor countries with

too much debt. Most of the Chinese financing is loans, instead of grants. India delivered an implicit criticism of China’s initiative last Saturday in a statement that said such an initiative should meet international norms, and not create unsustainable debt. India has objected to Chinese state-owned companies working in the Pakistani-held part of Kashmir, the Himalayan region claimed by both sides. New Delhi sees that as an endorsement of Pakistan’s control. “No country can accept a project that ignores its core concerns on sovereignty and territorial integrity,” the statement said. Some diplomats and political analysts say Beijing is trying to create a political and economic network centered on China, push the US out of the region and rewrite rules on trade and security. Xi promised to avoid forming a “small group” of allies, which he said might harm regional stability. Instead, he said, Beijing wants “partnerships of friendship” and a “ big family of har monious coexistence”. AP

China’s Xi praises Malaysia for Belt and Road cooperation

EIJING—Chinese President Xi Jinping said last Saturday that Malaysia was an early supporter of the Belt and Road Initiative, and has become one of the countries that have benefited the most from it. X i told v isiting Ma laysian Prime Minister Najib Razak on the eve of the Belt and Road Forum for International Cooperation that China will continue to increase bilateral cooperation under the initiative.

Najib said the Belt and Road is a historic initiative that will bring huge changes to the region and the world at large, adding that Malaysia will actively participate in it. Xi said the China-Malaysia relationship is currently at its best ever, and the two sides will continue cooperation in the areas of culture, counter-terrorism, education, industrial parks, law enforcement, rail projects, security and tourism. China will advance the compre-

hensive strategic partnership with Malaysia to further improve bilateral ties, he said. Chinese Premier Li Keqiang also met with Najib last Saturday. The two witnessed the signing of a series of bilateral agreements on alignment of development strategies, cooperation on inspection and quarantine, infrastructure and others. Li said he appreciates Malaysia’s active response to the Belt and Road Initiative. Beijing will

continue to support China-Malaysia industrial parks in China’s Qinzhou and Malaysia’s Kuantan, and expand cooperation on infrastructure. The two will continue to work together on security issues, he said. Najib said Malaysia aims to cooperate with China in e-commerce and tourism, while continuing joint efforts on building railways and industrial parks. Malaysia will also promote relations between China and the Asean. Xinhua/PNA

Whereas 10,000 foreign vessels used to fish in Indonesian waters “like in their own country,” she said the new reality was clear: “Not anymore.” For China and others in the region, sensitive politics also are at play. Indonesia’s uncompromising approach has irked neighbors whose boats have been caught up in the dragnet for operating in seas plagued by territorial disputes. The campaign may partly reflect Indonesia’s desire to show it is in control of its vast territory of 17,000 islands. Pudjiastuti, 52, has won popu-

larity at home as the campaign’s leader, defying initial skepticism when she was tapped as minister in 2014. She had no political experience and hadn’t even graduated high school. But she spent three decades as a seafood entrepreneur and knew the business. She also had run her own charter airline, Susi Air, to distribute and export produce. On taking office, she quickly declared a fishing moratorium for foreign vessels that had often operated under Indonesian flags. “The state’s sovereignty has to be upheld,” she declared. AP

Indonesia’s Ubud picked by UNWTO as gastronomic tourism development model

AK ARTA—Indonesia’s town of Ubud in Bali Island has been picked by the United Nations World Tourism Organization (UNWTO) as gastronomic tourism development model in a recent forum held by the international organization in the Spanish city of San Sebastian. Indonesia is required to submit reports to address the task, an official statement said on Sunday. The reports would eventually be exposed in next year’s UNWTO World Forum on Gastronomy Tourism, said Revita Datau Messakh, head of a team to accelerate culinary and shopping tourism at the Tourism Ministry. Speaking at the forum, Revita said Ubud and four other destinations—Yogyakarta, Semarang, Solo and Bandung—have been assigned by the ministry to highlight gastronomic tourism so as to give more tour alternative and experiences for foreign visitors during their visits to Indonesia. She said Indonesia applies the triangle concept, which digs philosophic aspects of food, culture and history to developing

its gastronomic tourism. “Food and history are connected by spices,” Revita said. “History and culture are connected by storytelling, meanwhile, rituals link food and culture.” “The meat and spices represent prosperity and enhancements, meanwhile, coconut milk and red chili refer to integration and a good lesson,” Revita added, interpreting the Indonesian philosophy featured in Rendang, a dish that was on CNN’s list of World’s Best Food in 2011. Indonesia has myriad of traditional food recipes developed by 1,340 tribes inhabiting more than 17,000 islands across its tropical territory, she said. “The ministry now has registered around 5,000 recipes of traditional foods from all of those tribes,” Revita added. The move to develop culinary tourism is set as tourism has been set as the nation’s core industry. The government aims to attract some 20 million foreign visitors and earn more than $24 billion from tourism by 2019. Xinhua/PNA

Malaysia firefighters rescue turtle trapped in power station

In this photo provided by the Malaysia Fire Department, a firefighter checks on the turtle they rescued from the flood gate at Port Dickson outside Kuala Lumpur, on May 12. The 60-kilogram turtle was found firmly stuck to a flood gate at a power station near the Malacca Strait. AP

UALA LUMPUR, Malaysia—Malaysian firefighters have rescued a 60-kilogram turtle found firmly stuck to a flood gate at a power station near the Malacca Strait. District Fire Chief Razif Mohamad Haris says firefighters heeded an emergency call last Thursday and found the turtle, believed to be a hawksbill, trapped in the barrier gate used to filter foreign objects from entering the power station in northwestern Negeri Sembilan state. He says the turtle’s front right flipper was missing, and it was believed to have swum during high tide when the gate was opened. Razif said last Friday that two firefighters waded into the water and battled strong currents to free the turtle, which was hauled to safety and released back to the ocean. AP

Green Monday BusinessMirror

A12 Monday, May 15, 2017

www.businessmirror.com.ph • Editor: Lyn Resurreccion

Greenpeace activists chain themselves to the gates of the Department of Environment and Natural Resources in Quezon City on May 8 to protest the rejection by the Commission on Appointments of Regina Paz L. Lopez’s appointment as the department’s head last week. The activists are protesting alleged continued control by big mining businesses over the government and for its alleged failure to stand by the reforms it is pursuing. AP/Bullit Marquez

Ex-military man at DENR worries green groups

By Jonathan L. Mayuga

resident Duterte’s appointment of former Armed Forces of the Philippines (AFP) Chief of Staff Roy Cimatu as secretary of the Department of Environment and Natural Resources (DENR) on Monday has put an end to speculations on who will replace environmental advocate Regina Paz L. Lopez. C i m at u’s appoi nt ment w a s m a d e ju s t a fe w d ay s a f t e r t he power f u l Com m i ssion on A ppoi nt ment s (C A) re jec ted L ope z’s appoi nt ment. T h is ea rly, however, m i l itant and environmental groups have expressed reservation over Cimatu’s appointment. Some quickly issued statements rejecting the President’s choice for the top DENR post. For one, Cimatu has yet to lay down his plans as Duterte’s alter-ego in managing the country’s environment and natural resources, which remain under siege by illegal activities.

Challenges

Besides rampant illegal logg ing , mining and quar r y ing , the Philippines is faced with the challenge of implementing a national greening program to reforest over 7 million hectares of open, degraded and denuded forests; and stop deforestation and land conversion, dump-andfill activities in coastal areas and lakes, illegal fishing and illegal wildlife trade. The DENR is also mandated to prevent soil, water and air pollution, and implement relevant laws, including the Ecological Solid Waste Management Act, Philippine Clean Water Act and the Philippine Clean Air Act.

Padlocking of DENR gates

The announcement of Cimatu’s new post came as environmental groups started a campaign calling for Lopez’s reappointment.

‘Pabaon’ scandal

@jonlmayuga

The number of hectares of open, degraded and denuded forests that are in need of regreening

CA rules, however, states that those rejected could no longer be reappointed. Greenpeace Philippines, for one, padlocked the DENR gates in Quezon City to express indignation over Lopez’s rejection by the CA. Env ironmenta l groups had a histor y of being adversarial t o t he e nv i r o n m e nt a g e n c y for the longest time because of conf licting views in enforcing environmental laws. Finally, they found an ally in Lopez, but it was cut short by the CA vote.

Miners optimistic

While environmental groups a re d i sm aye d over C i m at u’s appointment, the Chamber of Mines of the Philippines (COMP) is optimistic in Cimatu’s appointment, and vowed to work with the new DENR chief to promote responsible mining. COMP made a historic position in the case of Lopez, who it said is killing the industry with

President Duterte swears into office former Armed Forces of the Philippines Chief of Staff and Ambassador Roy Cimatu as the new secretary of the Department of Environment and Natural Resources. Cimatu takes over from former Secretary Regina Paz L. Lopez whose appointment was rejected by the Commission on Appointments. Facebook account of Agriculture Secretary Emmanuel Piñol

her controversial orders to close or suspend 28 operating mines, cancel a total of 75 mineralproduction sharing agreements and impose a ban on prospective open-pit mines. In appointing Cimatu, Duterte was able to push through with an alleged earlier plan of appointing a former military official to the DENR before his surprising naming of Lopez. W h i le L ope z w a s popu l a r among environmental groups, she became the only Cabinet secretar y with more than 30 opposers in the CA, which decision, some sectors believe, was swayed by business interests, particularly mining. No less than Duterte issued a controversial statement that “lobby money talks” in the CA’s rejection of Lopez’s appointment. Cimatu was AFP chief of staff from May 18, 2002, to September 10, 2002. An Ilocano, he was a member of the Philippine Army. He later served as special envoy to the Middle East. Lopez herself was cautious in commenting on Cimatu’s appointment. Inter v iewed over ABS-CBN News Channel, Lopez said she respects Duterte’s decision in appointing Cimatu. Having not much knowledge about the new DENR chief, Lopez said she would not judge his character, but only of his future actions. Lopez added she is eager to meet with Cimatu.

Critics

Clemente Bautista, national coordinator of Kalikasan-People’s Network for the Environment (Kalikasan-PNE), said having come from the military, Cimatu does not sit well with the group. “A military man in the DENR’s helm would be a mercenary for big mines, logging and corruption, and constitutes a betrayal of the people’s clamor for social justice and environmental protection,” Bautista said. He said Cimatu has a “track record ” of defending environmental plunderers. In 1994, then a colonel commanding the 603rd Brigade of the Philippine Army, Cimatu created the “ Task Force Lumad ” composed of personnel from the 641st Infantry Battalion of the Philippine Army, the Davao del Norte Provincial Police Command and other government units to guard the logging tenement, Bautista said. This was in response to the pangayaw, or tribal declaration of armed defense by Ata-Manobo leaders of the indigenous peoples organization Salugpungan against the massive logging operations of the Alsons company owned by the powerful Alcantara clan in Mindanao. Finance Secretary Carlos G. Dominguez III also has worked as member of the board of directors of Alsons Consolidated Resources Inc. but has since resigned when he joined the Duterte administration.

Cimatu was also involved in the 2011 AFP pabaon corruption scandal, where retiring AFP chiefs were given hefty “send-off money” in the millions, with Cimatu allegedly received P80 million. “It is unacceptable that a conduit of corruption will be reintroduced into an agency where billions of pesos worth of natural wealth are regularly transacted,” Bautista said. The last former AFP chief of staff to be named DENR secretar y was the late Angelo T. Reyes, who came out with the controversial decision on reopening the controversial R apu-R apu large-scale mining project in A lbay, Bautista said. “It is a betrayal of the Filipino people’s clamor for social and environmental justice to appoint a fascist as DENR secretary when Duterte can have asserted for a pro-people, pro-environment activist figure in the DENR,” he said.

Groups worried

Greenpeace Philippines, likew ise, ex pressed concern that Duterte has appointed someone “so quick ly w ithout first addressing the issues raised in [former] Secretary Lopez’s term and the circumstances surrounding her rejection.” “We hope these won’t be swept under the rug. We are a bit worried why President Duterte is in a hurry to appoint a new secretary, and also disappointed by why he did not firmly stand by Gina Lopez, given that she seems to be one of the few who is earnest in implementing reforms toward positive change [in the DENR],” the group said in a statement emailed to the media. “What will happen to the reforms started by Gina Lopez? These should be continued and expanded,” Greenpeace said. It added that without prejudice to Cimatu, the group wanted to be clarified on the strengths and expertise of an appointee as DENR secretary. “We need somebody with a clear track record on the environment. The problem with having a DENR secretary who has no clear track record on environmental issues is that the person likely won’t see the importance of a

healthy ecosystem to a healthy economy,” it said. Gre e np e ace s a id it w a nt s someone who w i l l c ha mpion the rights of people to a healthy and balanced ecolog y over the desire for profits and interests of destructive industries. “In the interest of transparency, we need to know who the endorsers and backers of Roy Cimatu are, to establish the motives of people behind the decision to appoint him as the new DENR secretary,” Greenpeace said. “But regardless of whoever takes over the DENR, an investigation should be launched to find out the extent of corruption within the DENR, as demonstrated during the CA hearing, wherein the alleged lobby money and influence of owners of mining companies prevailed over the people’s right to a healthy environment,” the group added. T he m i l it a nt Pa mba nsa ng Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) echoed Kalikasan-PNE’s position against Cimatu’s appointment. “Historically, military orientation is not to safeguard the environment and the people, but to protect the destructive mining operations of giant mining companies in the countryside,” it said. “We are not blind to the fact that giant mining companies fund military forces to protect their billions of investments at the cost of the environment and democratic rights of the people affected by their mining operation,” the group said. Cimatu is an “obviously a 180-degree turn” of Lopez, it added. “ W h i le t he l at ter [L opez] is a va ng u a rd in protect ing t he e nv i ron me nt , he r s u c c e s s or is a [ g u a rd i a n] of big m ining compa nies,” t he g roup sa id. Pamalakaya said appointing a former military official to the environmental affairs, giant mining firms would probably be on their business and destruction as usual. “This is tantamount to treason not just to the environment, but to the eco-warriors and environment-loving people who genuinely fight for the welfare and protection of our environment for the benefit of the country,” the group’s statement said.

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Asean Champions of Biodiversity Media Category 2014

Monday, May 15, 2017 A13

Editor: Lyn Resurreccion • www.businessmirror.com.ph

Preparatory talks for COP23 under way

limate negotiations are once again under way, building on the progress made in Conference of Parties (COP) 22 in Marrakech, Morocco, and in preparation for COP23 to be held from November 6 to 17. The Philippine delegation is attending the 2017 Bonn Climate Change Conference in Bonn, Germany, which began on May 8 and will continue until May 18. The Philippine delegation—headed by Climate Change Commission Vice Chairman Vernice Victorio—is composed of key officials and staff from the departments of Foreign Affairs, Environment and Natural Resources and Agriculture, the Office of the Cabinet Secretary and other concerned national government agencies. The delegation hopes the negotiations on the issues of climate finance, technology transfer and development, transparency and implementation and compliance will

progress significantly and will strongly reflect the ambition and the concepts of equity and differentiation, all of which the Philippines strongly advocates. The Philippine delegation will also have an opportunity to connect and collaborate with other attending Asean ministers. Victorio is glad that the Philippines had submitted its Instrument of Accession to the Paris Agreement on March 23, and has since then become a full-fledged party to the agreement. She said this gives the country the opportunity to continue its leadership position in the advocacy for climate justice. The COP23 climate negotiations aims to limit global temperature rise this century well below 2 degrees Celsius above preindustrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C.

Global climate policy in a state of flux

ENANG, Malaysia—Global climatechange policy is in a state of flux, with all other countries waiting for the US to decide whether to leave or remain in the Paris Agreement. That treaty, adopted by 195 countries with great fanfare in December 2015 and came into force in November 2016, symbolizes the efforts of governments to cooperate to avert disastrous global warming that threatens human survival. On April 29 the 100th day of President Donald J. Trump’s presidency, thousands marched in Washington and other cities in the US and around the world to protest against the administration’s about-turn in climate policy. Trump signed an executive order at the end of March unraveling former President Barrack Obama’s clean power plan, the centerpiece of his policy to reduce emissions causing global warming. The plan would have closed hundreds of coal-fired power plants and replaced them with new wind and solar farms. Further reflecting the policy changes, the Environmental Protection Agency (EPA) last week removed climate-change information from its web site, saying it would be undergoing changes to better reflect the administration’s priorities. The UN Framework Convention on Climate Change is now meeting for two weeks in Bonn to discuss rules to follow up on the Paris Agreement. Uppermost in the minds of the thousands of delegates and non-governmental organizations will be the uncertainty caused by the new US position. Trump is expected to soon announce if the US will exit the Paris Agreement. The administration is split, with one camp (that includes Environmental Protection Agency Chief Scott Pruitt and Trump’s Chief Strategist Steve Bannon) wanting the US to quit, while others (including Secretary of State Rex Tillerson, and Trump’s son-in-law and advisor Jared Kushner) advocate that the US remains. The big change in US climate policy comes at a very bad time. Last month the concentration of carbon dioxide in the atmosphere for the first time reached 410 ppm (parts per million) in the Mauna Loa observatory in Hawaii. The level was 280 ppm in 1958 and passed 400ppm in 2013. We are inching closer to the 450 ppm danger level at which there is only a 50 percent chance of keeping global temperature rise to 2 degrees Celsius. The year 2016 is the hottest on record. Many recent signs of climate change effects include sea level rise; changes in rainfall; more flooding, storms and drought in different parts of the world; and the melting of glaciers. The hard-fought Paris Agreement has many flaws, but it is an important achievement. One drawback is that the mitigation pledges made by countries fall far short of limiting warming to 1.5˚C or 2˚C. Instead, they would bring about 2.7˚C to near 4˚C temperature rise, according to various estimates, and the effects would be catastrophic. The agreement also does not contain concrete commitments or plans by developed countries to assist developing countries to tackle climate change. There remains the old promise to jack up climate finance to $100 billion a year by 2020, but no road map on how to get there, nor even an agreed definition of what constitutes North-to-South climate financing. There is also little left of the old commitment to transfer climate technology to developing countries. And while there is interest to help developing countries to curb their emissions (which is known as mitigation), there is less appetite to help them cope with the effects of climate

change (which is termed adaptation and loss and damage). Despite these deficiencies, the Paris Agreement has positive aspects, which make it an important treaty. Almost all countries made pledges to take concrete ac tions. While par ticipation is thus widespread, differences in obligations as between developed and developing countries remain in the Paris Agreement, in line with the Climate Convention. T h e a g re e m e n t m a n d a t e s t h a t developed countries make greater efforts than developing countries on mitigation, and they are also obliged to provide climate funds to developing countries. Most important, the Paris Agreement is a symbol and manifestation of international cooperation to tackle the climate crisis. Although the overall level of ambition is too low, the agreement has mechanisms to urge members to increase the ambition in both mitigation and in assistance to developing countries in future. Without a Paris Agreement, there would be no global framework or action plan for the coming decades. The world would be adrift even as the crisis worsens. What would happen if the US leaves the Paris Agreement? It would be a big blow to global cooperation, especially since the US is the top emitter after China, and is also by far a bigger emitter per capita than China and most other countries. There is also a fear of a contagion effect. Some other countries may follow the US and quit the agreement too. In an opinion article, former UN SecretaryGeneral Ban Ki-moon and Harvard University professor Robert Stavins have strongly argued that the US must stay inside the Paris Agreement, for the sake of the world and for its own interests. They also point out that even if Trump decides the pull the US out, this withdrawal will only take effect after four years, due to the rules of the agreement. They add that if the US wants a quicker exit, it can quit the Climate Convention, under which the Paris Agreement is established. This exit will take effect after a year. But if it leaves the convention, the US would really become a “pariah”, and thus, it is unlikely to do so. In any case, the US will still be a member of the Paris agreement during the rest of Trump’s present term. It is unlikely to be a passive member, whether or not it gives notice to exit from Paris. There is a growing consensus among Trump’s advisers that the US can’t stay in the Paris Agreement unless it negotiates new terms, according to a report in Politico. While it it is impossible to renegotiate the Paris deal, Trump’s officials are “discussing leveraging the uncertainty over the US position to boost the White House’s policy priorities in future discussions”, the article said. If this happens, the effect may be really adverse. Since the US will be in the Paris agreement for the next four years at least, it may use this period to weaken further the already low level of ambition of its own actions as well as those of other countries. The US will also try to weaken or eliminate the commitments of developed countries to support the developing countries. Trump has already made clear there will be no more US contributions to the Green Climate Fund. It will also dampen any discussions on how climate financing can be jacked up in the years ahead toward the promised $100 billion by 2020. Some people have argued it may better if the US leaves the Paris Agreement, and that prevents it from discouraging all the others that remain from taking action. IPS

Dr. Jovencio Apostol (third from left) wins the Outstanding Filipino Researcher Award for NRCP Division of Pharmaceutical Sciences at the recent 2016 Department of Science and Technology National Research Council of the Philippines (DOST-NRCP) Achievement Awards. With him are (from left) Dr. Marieta Bañez Sumagaysay, NRCP executive director; Dr. Carol M. Yorobe, DOST undersecretary for Science and Technology Services; Mrs. Apostol; National Scientist Edgardo D. Gomez, former NRCP president; Dr. Mildred B. Oliveros, chairman, NRCP Division of Pharmaceutical Sciences.

PHL biodiversity paving way for revitalized drug devt

hilippine biodiversity offers potential leads for the development of pharmaceutical medicines in the country, according to an outstanding researcher who was recently awarded by the Department of Science and Technology-National Research Council of the Philippines (DOST-NRCP). “ There are endemic plants, insects, marine organisms, minerals [in the country] that could be sources of pharmacologic interventions in diseases,” said Dr. JovenApostol, a 2017 Outstanding Filipino Researcher. Apostol, a pharmacy professor at the University of Santo Tomas, admitted that while the presence of foreign pharmaceutical manufacturers has dipped over the years as most have shifted operations to the other countries, such a drawback was, in a way, a blessing. “It has awakened the Filipino spirit to become more entrepreneurial, and there has been a growth spike in drug research and development in academic research institutes and local manufacturers focusing on endemic biomaterials,” he said. “This is also partly due to the encouragement and sup-

port of the science and technology agencies of the government and other funding agencies.” Apostol, likewise, pointed out that basic research is crucial in drug development. “A pharmaceutical product is only good as it is safe and effective,” he said. “A drug molecule will not advance to formulation and manufacturing without the preliminary data on its safety, effect, mechanism of action, toxicity and others—basic information on drug source, synthesis, kinetics and interactions, which can only be provided by basic research.” Research in basic pharmacology includes the screening of biomaterials for their effects on the physical and chemical processes of the living organism and on the nature and courses on diseases. Various methods of testing are

employed, such as in vitro, in vivo and in silico. The results of these basic researches serve as the basis to support further studies leading to formulation and clinical use of the drug product. Gains in the growth of the pharmaceutical sector can be sustained by continuous support to both basic and applied research. This way, the country can reduce our reliance to foreign manufactured drugs. Apostol is optimistic that, given the right support, structure, formation of scientists, industry and government, it is possible that in five to 10 years, the country is halfway in terms of drug discovery. In such time, the drug being developed should be in the clinical trial phase, and the company doing the development should have spent half a billion dollars, he said. DOST-NRCP is the countr y’s lead agency in basic research, and is mandated to promote and support basic and problemor iented researches, par ticularly those that are multidisciplinar y, in the sciences, as well as in the humanities. It supports researches that identify and provide solutions to national issues and problems, and generate new knowledge in preparation for the future. This June NRCP will host the 17th Science Council of Asia Conference to be participated in by renowned researchers and scientists from

31 academic institutions and organizations of the 18 membercountries across Asia. Meanwhile, the NRCP will be hosting the 17th Science Council of Asia (SCA) Conference from June 14 to 16 at the Philippine International Convention Center. Researchers and scientists from 18 SCA member countries along with delegates from 38 international scientific organizations are expected to participate in this annual international conference. This year’s conference will have the theme “Science, Technology, and Innovation for Inclusive Development Dr. Josefino C. Cosimo, Filipino Scientist from the National Aeronautics and Space Administration of the United States, will be one of the plenary speakers on Risk Reduction in Natural Disasters caused by Climate Change, Earthquake, and Tsunami. NRCP President Dr. Christina A. Binag said the main objective of the annual conference is to provide a collaborative platform for promoting scientific exchange and intellectual cooperation in Asia which may serve as vehicle to achieve development and promotion of a holistic vision that embraces the sciences, humanities, social sciences, and cultures leading to sustainable/inclusive development in the region’s quality of life. Geraldine Bulaon-Ducusin/S&T Media Service

Conference calls for climate resilience, green growth in South

AVAO CITY—The Climate Change Commission (CCC) and Mindanao Development Authority (MinDA) called for the adoption of climate resilience and green-growth approach for the development of Mindanao. This was made in the Conference on Climate Resilience and Green Growth in Mindanao: Road Map to Sustainable and Inclusive Economic Development held last week at a hotel in this city. The Asian Development Bank (ADB) and a consortium of the Philippine government-hosted Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) supported the initiative. The joint statement read by the CCC Commissioner Noel Gaerlan, together with Dr. Ancha Srinivasan, principal climate-change specialist at ADB, and representatives of Sec. Abul Khayr Dangcal Alonto of MinDA and Dr. Gil C. Saguiguit Jr., Searca director, said they shall “pursue holistic and integrated climate resilience and green-growth road map, based on principles of ecosystems-based development planning, environmental protection, utilization of green and low-emission technology, adaptive infrastructure development, consideration for women, children and indigenous peoples and other marginalized

The news conference at the Conference on Climate Resilience and Green Growth in Mindanao held last week in Davao City was attended by (seated, from left) Roly Pinsoy (MinDA), Dr. Ancha Srinavasan (ADB), Abul Khayr Amalon Alonto II (MinDA), Commissioner Noel Gaerlan (CCC), Dr. Candido Cabrido (Searca TA 8493 Team) and Araceli de la Fuente (DENR); (standing, from left) Dr. Takayuki Hatano and Nelflor Jo Atienza (CTI), Julius Francisco (WCI) and Dr. Lope B. Santos III (Searca).

communities and creation of livelihood options and green jobs to uplift the lives of our people in the Philippines in general and Mindanao in particular”. Gaerlan said there is an urgency to approach local development planning at three fronts: climate and disaster risk preparedness, environmental stability and economic growth, in the light of the changing and worsening climatic conditions, which are important ingredients in “ building resilience”, thus, saving lives. He emphasized that “CCC is aggressively promoting risk- and science-based approach, convergence and integration of various government efforts toward development of climate-adjusted national and local development plans. Alonto, in his keynote speech

delivered by MinDA Chief of Staff Abul Khayr Amalon Alonto II, emphasized that Mindanao, as a food basket, is threatened by the impact of climate change, that the recent occurrence of heavy f looding in several areas in Mindanao has claimed lives and properties and has become a serious concern to everyone.” A lonto revea led that MinDA’s strategic priorities include climate-change adaptation and mitigation, promotion of clean and g reen technolog ies, sustainable management of natural resources and critical ecosystems and promote public awareness and capacity building for environmental sustainability.” Ancha Srinivasan of ADB noted in his opening remarks that “by integrating locally appropriate

and gender-responsive climatechange mitigation and adaptation actions in comprehensive land use and development plans, Mindanao and its LGUs [local government units] can lead others in simultaneously add res si ng p ove r t y a nd c l i mate change and in achieving sustainable development goals by 2030”. Saguiguit said that “Mindanao has vast potentials for agro-industrial development, which can contribute to our nation’s food and nutrition security and poverty alleviation, however, these potentials are confronted with the adverse effects of climate change.” Sag uig uit a lso emphasized that “agriculture remains to be the driver of Mindanao’s development and a major backbone of the Philippine economy”. He added: “Our best option against this challenge is to adapt and heighten the resiliency of agriculture to the effects of climate change.” The conference was supported by ADB and the Japan Fund for Poverty Reduction-funded project titled “Climate Resilience and Green Growth in Critical Watersheds”, implemented by the CCC and commissioned to a consortium composed of Searca as lead organization, CTI Engineering Japan, Woodfields Consultants Inc. and Ergons Project Management.

A14 Monday, May 15, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

‘You’ve got e-mail, do not open it’

tudies have shown that close to 80 percent of all commercial airline accidents is the result of pilot error. At least 90 percent of motor-vehicle crashes are caused by human error. It is safe to assume that nearly 100 percent of successful cyber attacks on computers are the result of behavior that shows a lack of good sense or judgment—“human stupidity.” By Saturday morning Philippine time, it was reported that the largest “ransomware” attack in history had affected computers in nearly 100 countries, affecting tens of thousands of corporate and personal computers. Analysis by several cyber-security companies led investigators to believe this was the result of enterprising tecno-thieves using a variation of a tool developed by the US National Security Agency (NSA) to hack computers. Classified documents stolen from the NSA were posted online earlier this year detailing NSA’s hacking software. This latest manifestation of ransomware—dubbed “WannaCry”—encrypts all the computer data, effectively locking the computer and shows a start-up screen demanding that $300 be sent by Bitcoin to the hackers in order to decrypt the hard drive. Spanish telecoms giant Telefonica is facing an 85-percent computer shutdown after hackers infiltrated its systems demanding $550,000 in Bitcoin. Many hospitals that are a part of the United Kingdom’s National Health Service had their computer systems shut down. Global parcel delivery company FedEx Corp. was also affected. The malware changes the names on critical files and, therefore, takes over a computer using Windows Operating System, old or new. Microsoft Corp. identified the problem and issued a protection software update some weeks ago. Many individuals and companies did not update their computers. The average person tends to think that cyber criminals lurk in the shadows of the Internet like a robber hiding in bushes. Or maybe they are like burglars, checking your house for windows that they can crawl through, or unlocked doors to get to your valuables. But that is not the way it works. They are like the person who arrives, knocking on your door with a big smile and asking to come in to your house with a promise of free trip to Singapore for only a few minutes of your time. Ransomware gains access to a computer the same way as any kind of virus or computer worm—either through getting the user to open an infected e-mail, navigate to a compromised web site, or install an infected program. These cyber extortionists tricked victims into opening the malicious malware attachments to e-mails that appeared to contain invoices, job offers and other legitimate files. With a single click on an e-mail attachment, you have let the person kidnap-for-ransom all the data on your computer. There is really no excuse for people being tricked this way. The first documented case of a ransomware attack appeared in 2005. Everyone should know that the threat of a viral attack on a computer is a constant and never-ending threat. But the greed for free car, the guaranteed secret to losing 10 kilos, or scandalous pictures of your favorite celebrity or politician is apparently too hard to resist. All it takes is common sense. E-mails from a person or organization you never heard of should immediately raise high suspicion and should not be touched. If you get a sudden e-mail attachment from a trusted friend, contact them before opening. In fact, you should assume that all unexpected e-mail attachments are crooked. Careless use of a computer connected to the Internet is like carelessly walking down a dark alley at night. If you get mugged, you have only yourself to blame.

The roles of mothers

One of the most meaningful roles that a mother plays is the role of nurturer. This word is sometimes taken synonymously with the word “mother.” When a mother nurtures her children well, love and goodness are awakened in the children’s hearts. Because of our mothers’ love, we learn to love as well and we feel God’s love more profoundly.

I wish to emphasize at this point the importance of accepting all forms of motherhood. There isn’t a perfect way to be a mother. Mothers are in unique situations: some don’t have husbands, others live with female partners, some are in conventional family structures, others are raising their children with the help of the “village”, some are stay-at-home moms, others go

trust the parent(s) better. Listening is crucial to understanding. Therefore, it is very important that mothers learn to really listen to their children. Shama is a Hebrew word that means “to hear intelligently”. Mothers must exercise shama to understand, help and love the child. One of the most meaningful roles that a mother plays is the role of nurturer. This word is sometimes taken synonymously with the word “mother”. When a mother nurtures her children well, love and goodness are awakened in the children’s hearts. Because of our mothers’ love,

Atty. Jose Ferdinand M. Rojas II

RISING SUN

s we celebrate Mothers Day on May 14, I would like to write a short piece about the important roles of the mothers in our lives. We are all familiar with the saying, “The mother is the light of the home.” I do believe this comes from Proverbs Chapter 6: “…Forsake not the law of thy mother…for the commandment is a lamp; and the law is light.” As the light of the home, our mothers constantly guide us, especially in dark times. She offers that wisdom to help us make the right choices in our lives. to work, etc. Mothers also have unique skill sets and challenges. Their children, too, are very different. All of these situations are valid. The important thing is that a mother loves her children deeply. A mother’s role is to love her children with all her heart. It is also the role of every mom to understand her children. When a child feels this, he or she learns to

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N the book Way of the Shepherd, authors Dr. Kevin Leman and William Pentak shared valuable insights as to how leaders should manage people. Of the seven “ancient secrets” to managing productive people in that book, let me share the part where leaders have to “discover the SHAPE” of their sheep. SHAPE stands for Skills, Heart, Attitude, Personality, Experiences. Using how shepherds choose their ewe as an example, Leman and Pentak said leaders must know and choose the right people for the position. They said that the “choice of the sheep can make flock management easier or harder”, as leaders would not want to inherit someone else’s problems. Ideally, at the start of the recruitment process, leaders should be able to identify and unearth the SHAPE of its employees. Instinctively, human resources managers look at the educational background, training and experience and significant accomplishments as bases for hiring and placement. Applying the SHAPE of Leman and Pentak, the recruiter principally looks at skills and experience and, perhaps, gives less importance to things, such as heart and attitude. After all, having the passion to work and having a positive attitude are not taught in school and cannot be readily seen in one’s resume nor easily determined during interviews. When my very close friend Irwin Montano left his high-paying corporate job, I managed to convince him to try out government work. At the Bureau of Immigration (BI), he personally assisted the Selection

Committee in the implementation of a merit-based recruitment and selection process to minimize the undue influence of a phone call or a letter endorsement from a powerful person in the hiring process. As we initiated nationwide qualifying exams to insure we get a cross section of society in our candidate pool, the Committee Secretariat assigned points per skill and per experience while Irwin took care of assessing the personality and the attitude during the panel interview. In my case, I tried to find out where their heart is. By choosing to remain in government despite the recent and drastic pay cuts, some good immigration officers have shown their heart. It takes that much passion to consider what they do in border control “more

as a service than a job” and “more as a cause than as a place to draw a paycheck”. It is very difficult to assess the personality of the candidate during a short five-minute interview; much more one’s attitude. But Irwin, owing to his many years in human resources management, has developed a knack of detecting whether a candidate has a customer-oriented personality or a negative or positive attitude. What I saw in Irwin during his short stint in BI is that he really takes the time to know the condition of his “flock” and the status of his “sheep, one sheep at a time”. In the BI, he exhibited this hands-on approach, where he practically went around the bureau premises to engage both employees and clients to get direct feedback and observed the process flow in terms of time, resources and actual physical steps to complete one transaction. I always saw Irwin happily talking to people, engaging them to get feedback, eliciting as much information from them. When he briefly worked in Philippine Airlines (PAL), Irwin had to create his own Facebook account so he could monitor not only the passenger complaints and compliments but more to get the pulse of his sheep, the personnel in the Customer Management Office. In the Bible, Psalms 23:1–3 tells us that the shepherd meets the sheep’s every need: food, water, rest, safety, and direction. Like a good shepherd Irwin tried to find out each and every need of the people he was entrusted to take care of. Leman and Pentak used sheep as comparable to employees. Other

we learn to love, as well and we feel God’s love more profoundly. Mothers are trusted by God, because souls are entrusted in their care. To realize this is to realize the crucial role that mothers play in the lives of their children. She has great influence over them, which is why mothers need to exercise wisdom and righteousness throughout the days of her life—a task that can be quite daunting. But motherhood comes with this great responsibility. These are some of our mothers’ roles, but what about our roles? Our mothers deserve all the love for risking their life in childbirth, raising us through difficult times, and constantly guiding and loving us. For all these, we should give them our gratitude, our respect and our trust. We should listen to them and constantly help them in whatever way we can. Let us learn from our own mother the lessons of courage, strength and hope. She who bears a divine role not only in our lives, but also in our society and in the world.

authors liken the sheep to believers of Christ. Sheep are one of the dumbest creatures who do not only have poor eyesight and hearing but also run very slowly. They are defenseless animals for they have no weapons, such as sharp claws, piercing hooves, or powerful jaws. Simply put, sheep cannot survive long without a shepherd, upon whose care they are totally dependent. Likewise, like sheep, our employees look upon their leaders for guidance and inspiration. Likewise, like sheep, Christians ought to be dependent on Christ for all their needs. So the challenge of every leader (and shepherd) is to know and understand the needs of his employees (his flock). It has been said that believers will always be given their necessities in life, for He knows exactly what we need. I recently attended a coaching workshop where the facilitators shared both theoretical skills and practical exercises for leaders in PAL to understand interaction essentials. Among others, the workshop mentioned five key principles of esteem, empathy, involvement, share and support to address the personal needs of their followers. The need to rest, to be understood, to have respect and recognition, to have resources and so many others will have an impact on the individual’s productivity and the company’s profitability. That one day coaching workshop can be reduced into one leadership principle—Be a SHAPEherd; know the SHAPE of your herd. For questions and comments, please e-mail me at sbmison@gmail.com.

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Amazon has made Saga continues Seattle richer and angrier

O person shall practice accountancy in this country, or use the title Certified Public Accountant (CPA) unless such person shall have received from the Board of Accountancy a certificate of professional registration and be issued a professional identification card by the Board of Accountancy (BOA) and the Professional Regulatory Commission.

To implement the provision on preparation of financial statements, the BOA issued Resolution 3-2016 requiring the submission of certificate by the CPAs on the compilation services for the preparation of financial statements and notes thereto. This resolution is a landmark measure implemented by the BOA, which brought about a large number of interest and concern in the months that followed its issuance.

The BOA, under the law, is authorized to qualify CPAs to practice accountancy in four areas. One of the four is the practice in commerce and industry. The practice of accountancy in commerce and industry covers such cases as CPAs: a. Involved in decision-making requiring professional knowledge in the science of accounting, as well as the accounting aspects of finance and taxation, or b. Representing their employers before government agencies on tax and other matters related to accounting. In this connection, the accountancy law provides that any position in any business or company in the private sector that requires supervising the recording of financial transactions, preparation of financial statements, coordinating with the external auditors for the audit

ration of financial statements as allowed and required under the accountancy law and the Code of Ethics for CPAs; 4. Enforce the CPA’s authority for the preparation of financial statements; 5. Further enhance the reliability of the annual statutory financial statements submitted to the Bureau of Internal Revenue and the Securities and Exchange Commission. Resolution 3-2016 requires that CPAs preparing the FS, notes to the FS, and the certificate, shall first be accredited by the BOA. The BOA subsequently issued Resolution 68-2016, mandating external auditors to monitor compliance of Resolution 3-2016. The BOA further issued Resolution 1152016 extending the deadline to December 31, 2016, both for the filing of applications for accreditation of CPAs in commerce and industry and the covered period of the financial

By Joni Balter | Bloomberg View

trolling through the bustling construction zone of Amazon’s urban campus in Seattle, you instantly recognize the charm offensive the company has aimed at its hometown. “Banistas” at two outdoor stands offer bananas to employees and passers-by—a visual cue to Amazon’s smiley logo. Most American cities would do backflips to have a jobs juggernaut like Amazon.com Inc. in their midst. After all, the company will soon fill more than 10 million square feet of office space in a place where it now employs more than 30,000 people. But Seattle is not like other places. Locals resent the enormous traffic problems, soaring housing prices and building frenzy that have accompanied this bonanza, all of which cause jitters about inequality in a town that sees itself as egalitarian. For decades, Seattle was a city that worked. People could travel across town without having an anxiety attack. They could park near a destination. Not so much anymore. The tech and Web industry expansion has clogged roadways, changing the way the place functions. Or doesn’t. It is Amazon that is often singled out for Seattleites’ wrath, even as the company boasts that a number of employees at its sprawling campus on the northern edge of downtown walk or bike to work. If you ask who has the better deal in the uneasy relationship between e-commerce giant and “superstar city”, the company holds the larger end of the stick. Long standoffish, Amazon is trying to change its image with worthwhile and sizable efforts. Just this week, it announced plans to permanently house more than 200 homeless people in one of its new buildings, probably the company’s most enduring gift yet to the city. Amazon earlier lent an old hotel scheduled for future development to the same nonprofit group that serves homeless women, children and families. CEO Jeff Bezos’s family recently donated $35 million to Seattle’s Fred Hutchinson Cancer Research Center, on top of earlier gifts of $30 million. Amazon gave $10 million toward a new University of Washington computer science and engineering building. But Amazon is not yet known for substantial charitable work. “I don’t see Amazon’s aspirational goal for being a philanthropic leader for the region,” former Mayor Norm Rice said. “It’s still forming.” To use one yardstick, the company lacks an employee-match giving program. Having one would alter some sentiments, said Michele Hasson, fundraising consultant. True, millions of dollars in donations for various endeavors are nothing to sneeze at, but a more meaningful act might involve another project—one that

seems to acknowledge the accusations that Amazon plays a role in perpetuating income inequality. The company has announced it will provide space and equipment for five restaurants catering to employees and the public, to be managed by a nonprofit called FareStart. The goal is to train entry-level food-service workers so they can land higher-paying jobs. “They say the 1,000-mile journey begins with a single step, and that is probably the right magnitude,” said labor economist Jacob Vigdor, a professor of public policy and governance at the University of Washington, referring to the worker-training program. But, Vigdor continued: Realistically, this will probably help a few dozen people in a nation where we have millions living in poverty. They are doing their work in Seattle, but if you ask where has Amazon and technology change destroyed jobs, Amazon and electronic commerce can be blamed for the disruption of millions of retail jobs. Former Seattle Mayor Mike McGinn tapped into the bountiful local angst with his recently announced campaign to reclaim his old job under the banner of: “Keep Seattle”. Keep Seattle what? Fill in the blank. The intention is the way it used to be. Amazon is sensitive to the implicit criticism. In 2015 John Schoettler, the company’s vice president of global real estate and facilities, ventured out of Amazon’s shell far enough to lead the local business chamber. “I believe we are trying to change,” Schoettler told a public forum last month. “We are a very bashful company in many respects.” He later added: “We are never going to please everybody, that’s an impossible thing, and we will die trying to do that.… We want to be a good neighbor, a good contributor.” Amazon is Seattle’s largest property taxpayer and private employer, and it pays its employees here pretty well. The accompanying construction boom and hiring spree have boosted the broader vibrant economy, which has seen 99,000 new jobs added in the last seven years. Thirty percent of them are in tech. On the other side of the ledger, the runaway growth has made the place less affordable for longtime residents and compounded the income divide. At the same time, Amazon and its top employees benefit from a favorable tax climate. Neither the state nor the city has an income tax, though a few mayoral candidates and the city council would like to change that.

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DEBIT CREDIT

new york times

hen George Washington was preparing to take office, everybody wondered what to call him. Senators proposed lofty titles, like “Illustrious Highness” and “Sacred Majesty”. But Washington expressed irritation at such fawning, so today we are led by a modest “Mr. President”. Later, Washington surrendered office after two terms, underscoring that institutions prevail over personalities and that, in the words of biographer Ron Chernow, “the president was merely the servant of the people”. That primacy of our country’s institutions over even the greatest of leaders has been a decisive thread in American history, and it’s one reason President Donald J. Trump is so unnerving. His firing of James Comey can be seen as simply one element of a systematic campaign to undermine the rule of law and democratic norms.

The paradox is that Trump purports to be (like Richard Nixon) a lawand-order president. His administration has ordered a harsh crackdown on drug offenders, when we should be scaling up addiction treatment instead. Trump is focusing on chimerical fraud by noncitizen voters, even as he impinges on an investigation into what could be a monumental electoral fraud by Vladimir Putin. He favors tough law and order for the little guy. Comey took the investigation into possible collusion between the Kremlin and the Trump campaign seriously enough that for his last three weeks leading the Federal Bureau of Investigation (FBI) he was

of such financial statements and other related function shall be done only by CPAs. To implement the provision on preparation of financial statements, the BOA issued Resolution 3-2016 requiring the submission of certificate by the CPAs on the compilation services for the preparation of financial statements and notes thereto. This resolution is a landmark measure implemented by the BOA, which brought about a large number of interest and concern in the months that followed its issuance. The objectives of Resolution 3-2016 are: 1. Address the need to have professional competence in the preparation of the financial statements (FS); 2. Address the self-review threats or risks in external audits of financial statements; 3. Pinpoint responsibility in the compilation services in the prepa-

statements subject to the certificate of compilation services requirement. The resolution also provided for the review of the threshold amount of those covered by the regulatory measure. To respond to the various requests raised in the implementation of Resolution 3-2016 and its related resolutions, the BOA issued Resolution 163-2017, maintaining the requirement for the submission of the certification of compilation services. However, in this resolution, the BOA deferred the requirement for the reporting to the BOA by the external auditors of noncompliance of their clients. The BOA also issued Resolution 185-2017 clarifying certain rules governing accreditation of CPAs in commerce and industry practice. It has been a long and exciting saga since this measure involving CPAs in commerce and industry was first issued early in 2016. These developments are key in effectively regulating the accountancy profession, and enhancing the image and recognition of our CPAs and the Philippine accountancy profession. Hon. Concordio Quisaot is a member of the Board of Accountancy, tasked with the oversight in the accreditation of CPAs. He has a consulting and auditing practice in Cebu and has electric cooperatives among his clients This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

PPP Conversations #3 with Makati Mayor Abby By Alberto Agra

PPP Lead Continued from A1 What is your concept of PPP? Makati has been a pioneering advocate of the PPP concept even before its codification. The city believes in harnessing the resources and expertise of the private sector in all facets of development, especially as it involves the proprietary activities of the city. What makes PPP a viable and preferred development strategy at the local level? Makati City has always maintained the policy that business must be left to the businessmen,

Is Trump obstructing justice? Nicholas Kristof

Monday, May 15, 2017 A15

getting daily updates, according to The Wall Street Journal. The new acting director of the FBI confirms that the inquiry is “highly significant”. For months, as I’ve reported on the multiple investigations into Trump-Russia connections, I’ve heard that the FBI investigation is by far the most important one, incomparably ahead of the congressional inquiries. I then usually asked: So will Trump fire Comey? And the response would be: Hard to imagine. The uproar would be staggering. Even Republicans would never stand for that. Alas, my contacts underestimated the myopic partisanship of too many Republicans. Sen. Charles Grassley, an Iowa Republican, spoke for many of his colleagues when he scoffed at the furor by saying, “Suck it up and move on.” This goes way beyond Comey. When judges block presidential orders, Trump denounces the courts. When the opposition criticizes him, Trump savages individual Democrats. When journalists embarrass him, Trump threatens to tighten libel laws and describes the press as “the enemy of the people”. Trump has also challenged and evaded the ethics rules that tradi-

and the government must only be there to provide the environment for business to grow and become successful. This policy is carried over in the proprietary activities of the city. PPP has allowed the city to engage entities who are expert in their fields to be partners in various activities of the city, thereby ensuring efficiency in management and operations. PPP also allowed the city to earn additional revenues from otherwise cost-center activities. Is Makati City ready for PPPs? Why? Yes. Perhaps even when the term PPP was not yet popular, Makati

Trump has also challenged and evaded the ethics rules that traditionally constrain administration officials. He has breached the four-decade norm that presidential candidates release their taxes. And—how else to put this?—he has waged war on truth. These days, any relationship between White House statements and accuracy seems coincidental. tionally constrain administration officials. He has breached the four-decade norm that presidential candidates release their taxes. And—how else to put this?—he has waged war on truth. These days, any relationship between White House statements and accuracy seems coincidental. Patterns emerge. Trump also ousted Preet Bharara, a US attorney who infuriated Moscow and investigated Tom Price, Trump’s secretary of health and human services. Likewise, Trump fired Sally Yates, the acting attorney general, after she warned the White House that Michael Flynn could be blackmailed over his lies

City was already implementing projects that were predicated on a partnership with the private sector. As early as the 1990s, mindful of the needs of the working class and the need to regulate “canteens” operating out of unsanitary and dilapidated jeepneys—the “jollyjeeps”—Makati City used the PPP model to promote a program that would benefit the employees of business establishments and the Makatizens. In 2002 the city explored the partnership with the private sector for education and employment programs. Makati was the first local government educational institution to partner with companies under the dual license education system. Continuing the strong advocacy of the PPP approach toward development, the city recently entered into an agreement with a Chinese realty developer to conduct a feasibility study for a mass housing project that can benefit over 5,000

informal-settler families.

about Russian contacts. In short, Trump challenges the legitimacy of checks on his governance, bullies critics and obfuscates everything. Trump reminds me less of past American presidents than of the “big men” rulers I covered in Asia and Africa, who saw laws simply as instruments with which to punish rivals. It’s reported that Trump sought a pledge of loyalty from Comey. That is what kings seek; the failure to provide one got Thomas More beheaded. But in a nation of laws, we must be loyal to laws, norms and institutions, not to a passing autocrat. Trump acknowledges that he was frustrated by the Russia investigation and that it was a factor in firing Comey. This may not meet the legal test for obstruction of justice, but step back and you see that Trump’s entire pattern of behavior is obstruction of the rule of law and democratic norms. Earlier this year I quoted a presidential historian as saying that “there’s a smell of treason in the air”, and it’s essential that we have a thorough investigation to find out what happened. With Senate Republicans blocking an independent commission, that means that Deputy Attorney General Rod Rosenstein

must choose an independent special counsel to probe Russian interference in our election. George Washington warned that we need checks on leaders because of the “love of power and the proneness to abuse it”. This prophecy was tested during Watergate, and as a teenager then I watched Republicans like Howard Baker, Lowell Weicker, Elliot Richardson and William Ruckelshaus heroically stand up for their country rather than for a corrupt president of their own party. Partly because of them, our institutions triumphed. The passion for truth over politics was then periodically expressed in a Latin phrase: fiat justitia, ruat caelum. Let justice be done, though the heavens fall. Now that principle is tested again, and so are we, all of us—politicians, journalists, judges and citizens. In particular, this is the moment of truth for GOP moderates like Sens. Susan Collins, Jeff Flake and Bob Corker, who may hold decisive power. Will they align with George Washington’s vision of presidents as servants of the people or with Trump’s specter of His Sacred Majesty, the Big Man of America? Will they stand for justice, or for obstruction of it?

What are the challenges and risks of local PPPs? One of the major challenges that Makati City faces is determining what projects should be under a PPP program or under the regular procurement of the city. Under a PPP, the private sector expects to earn a profit from its participation. But not all projects of the city are geared for profit. Thus, the city must be able to balance the interest of the private entity to earn a profit and the interest of the Makatizen to receive social services and other benefits from the City. What is your message to the public? Makatizens can expect more PPP programs specifically in the areas of information technology, communication, transportation and delivery of basic services, making Makati City the trailblazer in PPPs.

2nd Front Page BusinessMirror

A16 Monday, May 15, 2017

Govt wants to roll out incentives program for ‘people movers’ T By Catherine N. Pillas

@c_pillas29

he Department of Trade and Industry (DTI) said it is looking at crafting another manufacturing-stimulus program, this time for “people movers” or makers of multipassenger-transport vehicles, which will replace aging buses and jeepneys.

In a recent interview with reporters, Trade Secretary Ramon M. Lopez said the DTI wants to create a “specialized incentive program”, similar to the Comprehensive Automotive Resurgence Strateg y (C AR S) Program for buses and trucks. “We’re thinking of a CARSlike program to incentivize and promote this. Maybe there’ll be

₧27B

The budget set aside by the government for the CARS Program

a separate program for ships,” Lopez said. He said the stimulus program would boost the Department of Transportation’s (DOTr) bid to replace old buses and jeepneys with new public utility-transport vehicles. “The incentives will be tailor-fit for the industry, for the relevant [aim],” Trade Undersecretary Ceferino S. Rodolfo said. Lopez said this may encourage manufacturers to produce alternatives to the smoke-belching jeepneys and deteriorating buses, aside from the current option—the e-vehicles. To recall, the CARS is the DTI’s manufacturing-stimulus program created to attract investments in the auto industry and make the Philippines an automotive hub in the Asean region. Currently, vehicles locally assembled in the country are more expensive by $1,800, compared to those made in neighboring countries. The program aims to boost the local auto industry’s competitive-

House asked to probe Phl’s rice inventory

Other than the three-month lean season, the Legislative-Executive Department Advisory Council (Ledac) has required the NFA to maintain a 15-day buffer stock at any given time. In Camarines Sur, Villafuerte said he received information from NFA Provincial Manager Yolanda Navarro that the province’s buffer stock only totaled 42,293 cavans or 50-kilogram bags as of April 30. This is equivalent to three days’consumption at Camarines Sur’s daily rice requirement of 13,840 cavans. “NFA CamSur’s rice supply for three days’ consumption is but a tenth of the 30-day buffer stock level that the Ledac has prescribed for the NFA at the onset of the July-to-September lean months,” said the lawmaker, quoting Navarro’s letter to Villafuerte.

Navarro said exacerbating the supply problem for Camarines Sur’s NFA is that the food agency has struggled to compete with private grains traders in beefing up its inventory this summer harvest season. Traders have been buying palay from farmers at P20 per kg, higher than the government support price of P17. The NFA said its palay purchases in the first four months of the year declined by nearly 82 percent to 10,092.65 metric tons (MT), from 54,750 MT recorded a year ago. NFA Spokesman Marietta Ablaza said the food agency was only able to buy 201,853 50-kg bags of palay from local farmers during the January-to-April period. “That is 17 percent of our target of 1.2 million cavans”, Ablaza told the

B usiness M irror in a recent interview. She attributed the NFA’s low procurement volume to the high farm-gate price of palay during the four month-period. Ablaza said the NFA spent some P171 million to purchase the 201,853 bags of palay from local farmers. The food agency is targeting to buy 4.6 million 50-kg bags of palay, or about 230,675.5 MT, this year, which is more than double the 107,877 MT bought by the agency in 2016. The NFA buys clean and dry palay at P17/kg. The food agency gives an additional incentive of P0.20 to 0.50/kg for delivery, P0.20/kg for drying and P0.30 for cooperative-development incentive fund for farmers’ organizations. Agriculture Secretary Emmmanuel

ness by bridging this gap—by providing a $1,000-per-unit fiscal support through the CARS. It entails a mandator y local production of body shell and large plastic parts as part of its localization requirement, and a 200,000-unit production requirement over the course of the program. By year-end Rodolfo said his team must have a specific recommendation to Lopez and Transportation Secretary Arthur P. Tugade on the possible program. The government specifically targeted the auto industry, given its strong linkages to other industries and its so-called multiplier effect. The CARS Program provides for fund of P27 billion, or a budget of P9 billion for each enrolled vehicle model. The incentives will be given in the form of taxpayment certificates to offset any tax and duty obligations of CARS participants to the national government, which include excise tax, income tax, import duties and value-added tax.

Continued from a1 F. Piñol said the NFA should increase its buying price by P2 per kg, so it could compete with local rice traders and do away with importing rice to increase its rice stockpile. “The NFA should increase its support price. In the long run it will be cheaper for the NFA to buy local palay, because they will no longer have to pay taxes or tariffs for imports,” Piñol said in a recent interview with reporters. The DA chief said he urged President Duterte to allow the NFA to have a buffer stock that would last for six months. “[I suggested they] follow the Indian model. In India, when they are stocking up, they buy about six months’ worth of their rice requirements from farmers. This was the same suggestion that I made to the President,” Piñol said.

www.businessmirror.com.ph

4-DAY D.O.T.-ALI FOOD EVENT HIGHLIGHTS ASEAN CUISINE By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE monthlong culinary bonanza Flavors of the Philippines (FOP) highlighted the varied cuisines of all members of the Asean in a culminating event held over the weekend at the Ayala Malls Vertis North Open Parking in Quezon City. The four-day event, organized by the Department of Tourism (DOT), in partnership with Ayala Land Inc. (ALI), featured many popular Filipino chefs, restaurants and hotels who served Pinoy favorites and their best interpretations of regional cuisines at the Asean Food Festival 2017, which started on May 10. “Events like these further establish the country as a vibrant and flavorful culinary-tourism destination and promotes Southeast Asia as one must-visit food destination. The theme is also perfect to show the region’s unity in celebration of the golden anniversary of the Asean,” Tourism Secretary Wanda Corazon T. Teo said in a statement. Celebrity chefs like Rob Rob Pengson served Cambodia- and Bruneiinspired cuisines; Myke “Tatung“ Sarthou whipped up Malaysian and Singaporean; and Gene Gonzalez cooked dishes of Myanmar and Laos. Capampangan dishes were also offered by chefs Claude Tayag, Vincent Garcia and Gonzalez. Wild Ginger, a well-k nown restaurant in the Metro offering Southeast Asian delights, served up dishes from Thailand, Indonesia and Vietnam, while Shirley’s Authentic House of Curry offered Malaysian cuisine. Hotel partners Seda Vertis North and Berjaya Makati Hotel also cooked authentic Philippine and Malaysian dishes, respectively. “This event featuring the region’s diverse cuisine aptly promotes the Asean’s vision of achieving unity through diversity. The Asean golden celebration put the spotlight on the region’s best 50 festivals and 50 most unforgettable travel experiences, with the premium on the culinary experience the region has to offer,” Teo added.

Teo: “Events like these further establish the country as a vibrant and flavorful culinarytourism destination and promotes Southeast Asia as one must-visit food destination. The theme is also perfect to show the region’s unity in celebration of the golden anniversary of the Asean.”

For his part, Sarthou, chef-patron of Agos, a Filipino-Spanish restaurant, explained: “Asean cuisine is very sophisticated. It’s very difficult to put your finger on a certain characteristic. We use the same ingredients, but the results and the dishes turn out differently. That’s what really is beautiful about it.” Pengson, meanwhile, said: “Asean cuisine is vibrant with strong flavors and strong umami taste as compared with the Western dishes, which could be our edge and the selling point of the region.” During the food event, Philippine delicacies and pasalubong were also brought in by DOT regional offices from Ilocos, Zamboanga, Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon) and Mimaropa (Mindoro Occidental and Oriental, Marinduque, Romblon and Palawan). Flavors of the Philippines was a month-and-a-half-long cultural and food festival that celebrated the evolution, heritage and diverse offerings of Filipino cuisine. Activities included tutorials in native cuisines, local food festivals, gourmet fairs, dining with celebrity chefs, specialized menus in restaurants, roving food trucks, food tastings, bar crawls, cook-off challenges, food bazaars and farmers’ market tours set in captivating destinations. There were also activities that enabled participants and guests to immerse themselves and interact with local communities during these food trips. The highlight of the FOP was the three-day Madrid Fusión Manila in April, which brought in Michelinstarred chefs from all over the world, who, along with major Filipino chefs, spoke and presented the latest food trends in the world.

China’s infra campaign seen benefiting PHL By Butch Fernandez @butchfBM

& Elijah Felice E. Rosales

@alyasjah

resident Duterte is set to enlist the Philippines in China’s most ambitious development plan in history, as he participates in the Belt and Road Forum on Monday together with 29 other heads of state, including Russian President Vladimir V. Putin. The Belt and Road Initiative, dubbed as the beginning of a new age of globalization, is a multibillion-dollar infrastructure campaign of Chinese President Xi Jinping aimed at transforming large areas of Asia into economic zones and trading routes. From Mongolia to Malaysia, Thailand to Turkmenistan, and Indonesia to Iran, waves of Chinese projects, including power plants, solar farms, motorways, bridges, ports and high-speed railways, are scheduled to be constructed and funded by none other than China’s banks. Estimates indicate that China would spend $150 billion each year in countries that embraced Xi’s master plan. According to Philippine Ambas-

sador to China Jose Santiago L. Sta. Romana, the Philippines will play a crucial role in the rolling out of the Belt and Road Initiative. He noted the Philippines, as a major player in Southeast Asia, is involved in a number of trade deals, which could be maximized under China’s signature foreign-policy project. Aside from this, it is situated strategically within the South China Sea, where $5.3 trillion of trade courses through every year. In tune with Asean’s connectivity plan, Sta. Romana said developing economies, such as Indonesia, Malaysia and the Philippines, will be connected to Singapore through direct maritime link. “From Singapore onto mainland Asia, you have the Asian vision of the pan-Asian railway and panAsian highway, which converges the Belt and Road Initiative and the Chinese plan to build a link connecting Singapore all the way to Kunming southwest of China. From there, it will be connected further onto Central Asia and onto Europe,” Sta. Romana explained in a news briefing in Beijing, China, last Saturday. See “Infra,” A2

the joy of summer Residents of C4 in Navotas take a dip along their portion of the beach near the city’s bus terminal, relieving them of the scorching heat of the summer sun, unmindful of the polluted water.

NONIE REYES