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Thursday, May 18, 2017 Vol. 12 No. 217

Majority to ram through tax bill despite opposition P By Jovee Marie N. dela Cruz

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opulist provisions in the Duterte administration’s tax-reform bill—dubbed as the Tax Reform for Acceleration and Inclusion (TRAIN)—remain as hurdles to its passage, as some lawmakers have expressed reservations about its “contentious” provisions. But House leaders have expressed confidence that the Department of Finance (DOF)-backed tax package will reach plenary on Monday,

By Butch Fernandez

Rene E. Ofreneo

laborem exercens ecretary Roy A. Cimatu of the Department of Environment and Natural Resources (DENR) explained that he will observe due process in the review of the operations of the mining companies suspended by his predecessor, Secretary Regina Paz L. Lopez. He said he is committed to the promotion of responsible mining. Continued on A11

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The minority reiterates the need for government agencies to improve their absorptive capacity before pushing for a comprehensive tax reform.”—Suarez

sayan bloc, said he is having second thoughts about backing the tax-reform bill. While it seeks to lower personal-income tax rates, Benitez said it compensates for the revenue loss by imposing Continued on A2

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he Senate is poised to look into the terms of a loan agreement with China that the Duterte administration intends to tap to bankroll its $167-billion infrastructure program. In pressing for the Senate inquiry, Sen. Leila M. de Lima said the congressional review was “necessary”, amid concerns that the loan agreement could “put the country in dire debt or force the country into commitments undermining the Constitution or its sovereignty”. The senator sought the inquir y through Senate Resolution 377, even as she noted that, while the government needed to stimulate the economy, “there is an even greater need for our economic managers to exercise extreme caution before advising our President to enter into any loan agreement of this magnitude”. She asserted the need for the Sen-

ate review “ lest we end up with a debt that our children, our children’s children, and even several generations thereafter will not be able to repay, and with commitments that would violate the Constitution or undermine our sovereignty”. De Lima echoed international concerns aired over “the danger of long-term onerous indebtedness among allied countries under the China-espoused “Belt and Road Initiative” (BRI). She noted that the BRI aims to connect countries of Asia, Europe and Africa with each other, primarily through infrastructure projects that are to be financed, in part or in whole, by China, such as ports, roads, railways and bridges, adding that “some countries, such as Mongolia, Venezuela and Sri Lanka, had to resort to desperate measures to renegotiate their loans with China.” De Lima also cited, for instance, that “Mongolia had to sell coal to China for only 11 percent of the international See “China loan,” A2

PESO exchange rates n US 49.6510

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Senate set to review details of $167-B China loan deal

We all live in a watershed

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four months after it was introduced at the lower chamber. PDP-Laban Rep. Alfredo Abelardo B. Benitez of Negros Occidental, head of the Vi-

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Govt goes all out so youth can resist tobacco addiction

LASCUÑA PUTS ON DAZZLING PERFORMANCE WITH HIS IRONS»C2

n japan 0.4390 n UK 64.1441 n HK 6.3752 n CHINA 7.2083 n singapore 35.5947 n australia 36.8708 n EU 55.0282 n SAUDI arabia 13.2410

Source: BSP (17 May 2017 )

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A2 Thursday, May 18, 2017

Majority to ram through tax bill despite opposition Continued from A1

“burdensome” taxes on important commodities. Benitez was also not in favor of increasing excise taxes on petroleum, as well as sugar sweetened beverages (SSBs). He said the 42-man Visayan bloc will ask the leadership to lower the proposed P10 excise tax per liter of volume capacity on SSBs. Bayan Muna Party-list said it is mulling over to withdraw as coauthor of the measure as the only provision adopted from its original proposal was the lowering of personal incom-tax rates. “This bill [TRAIN] will definitely hit the poor hard because it would mean higher prices of basic goods and services,” Party-list Rep. Carlos Isagani Zarate of Bayan Muna said. “Once the bill is enacted into law, diesel which is P31 per liter now would be P34 next year, P36 in 2019 and P37 in 2020. Gasoline, which is P45 per liter, now would increase to P52 next year,” Zarate added. If approved, LPG could go up to P574 next year from the current P541 per cylinder. “These are just a few of the strategic products that would increase and would cause a domino effect to other products and services,” Zarate said. “As members of Congress, we should listen to the sentiments and clamor of our people by stopping this antipeople tax-reform bill.” The Party-list Coalition, composed of 47 representatives, said it would most likely abstain from voting if a compromise is not reached to remove the valueadded tax (VAT) exemptions for various cooperatives. According to Party-list Coalition President and Party-list Rep. Rodel Batocabe of AKO Bicol, the group will insist on retaining the VAT exemptions for small and medium cooperatives.

Sugar industry. . .

to be efficient with the government support, given the accumulated Sida fund,” he said. “By that time the Sida would be on its eighth year and we should be efficient by that time. If the Sida doesn’t work, then the sugar industry has no more reason to complain because the government has helped the industry for eight years,” he added. Under the Sida law, which was passed in 2015, the SRA will be given an annual allocation of P2 billion to be spent in developing the local sugar industry. However, Yulo also said the government should have a clear policy direction for the agricul-

For his part, Minority Leader and Lakas Rep. Danilo Suarez of Quezon vowed to oppose the bill in the plenary until the government improves its absorptive capacities. “The minority reiterates the need for government agencies to improve their absorptive capacity before pushing for a comprehensive tax reform. We need not rush most, especially if we are not yet capable of spending the appropriated budget efficiently,” he added. Suarez said he will suggest to the leadership a “revenue neutral” period for two years. “During this period, the government should only spend what it earns.” He also called for the full implementation of Republic Act 9335, or the lateral attrition law. “This law provides penalties and rewards against officials of the Bureau of Internal Revenue [BIR] and the Bureau of Customs [BOC]. Unfortunately, this law is dormant. Without the attrition law, the widening gap between government spending and revenue stands defenseless to the inefficient tax collection,” Suarez said.

‘Confident’

In a news briefing, PDP-Laban Rep. Da k i l a C a rlo E . Cu a of Quirino, chairman of the ways and means committee and main author of the bill, has expressed confidence that the lower chamber will pass the tax-reform package before the Congress sine die adjournment on May 31. “We are confident in the leadership of our Speaker and our Majority Leader that, with their spearheading the supermajority, almost 100 percent sure that it will be passed in lower chamber,” Cua told reporters. Majority Floor Leader Rodolfo Fariñas said the bill will reach the plenary on Monday and will

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ture sector, particularly for the sugar industry. “The problem is that there’s no clear-cut agricultural policy. Right now you impose excise tax, then the signal should be clear: does the government want to support the agriculture sector or not?” he said. “It’s as simple as that—if you want to support the sugar industry for the next 10 years, then impose the taxes after a short period of time to make sure that they are already efficient and they can already absorb the effects [of reforms],” he added. The SAP also called for the imposition of higher tariffs on imported

be approved on second reading by Wednesday next week. He said bill will be transmitted to the Senate after its approval this month. Cua said House Bill (HB) 5636 will enhance the progressivity of the tax structure through rationalization of the internal revenue system. He said it will also provide equitable relief to taxpayers to improve their levels of disposable income and increase their economic activity. The bill also seeks to ensure that the government is able to provide better infrastructure, hea lt h, educat ion and socia l protection by raising sufficient revenues through the expansion of the VAT base, increase of the excise taxes on petroleum and automobi les, introduction of excise tax on sugar-sweetened beverages and adoption of measures to improve administration.

Provisions

porter’s selling price is P600,000 the excise tax will be 3 percent by 2018 and will increase to 4 percent by 2019. For the higher bracket, If the net manufacturer’s price/importer’s selling price is over P3.1 million, the excise tax will be P1.46 million plus 90 percent of the value in excess of P3.1 million in 2018. In 2019, if the net manufacturer’s price/importer’s selling price is over P3.1 million, buyers would be taxed P1.82 million plus 120 percent of the value in excess of P3.1 million. SSBs would be also levied an excise tax of P10 per liter of volume capacity, subject to a 4-percent annual increase after January 1, 2018.

China loan. . . Continued from A1

Under the bill, workers earning P250,000 will be exempted from paying personal income taxes. The measure also provides automatic adjustment of taxable income levels and their corresponding base every three years beginning 2021 based on a fiveyear cumulative consumer price index inflation rate. The bill calls for imposing taxes on kerosene and liquefied petroleum gas and increasing tax rates for various fuel products, including leaded premium gasoline, unleaded premium gasoline and aviation turbo jet fuel. It also stipulates new schedules and brackets for auto excise tax in the package. The DOF is pushing for the excise tax on vehicles to solve the traffic problem. For the lower bracket, if the net manufacturer’s pr ice/im-

market price, Venezuela had to ask for more onerous loans from Russia, and Sri Lanka had to offer debt-for-equity swaps to China over infrastructure projects.” She said “the principles of transparency and accountability dictate that the terms of any loan agreement that have the potential of undermining our sovereignty and of mortgaging our children’s future be subjected to extreme scrutiny.” “It is the duty of Congress to keep the Executive department in check, through the investigation of, and meaningful legislation on financial and economic policies that could affect our country well beyond the current administration,” de Lima added.

high-fructose corn syrup (HFCS), a cheaper alternative sweetener, to ease its detrimental effects to the local sugar sector. “We support the imposition of higher tariffs on HFCS. At present HFCS is slapped with zero tariff, it is only the 12-percent VAT [valueadded tax], which the importers are paying. So it is still like zero percent,” Yulo said. “As high as possible, like in Japan and EU [European Union], where they impose a high tariff on HFCS because they are discouraging the entry of it for health reasons,” Yulo added, when asked on how much tariff on imported HFCS should be put in place. HFCS being sourced from China are slapped with zero tariff, while those coming from South

Korea are levied a duty between 1 percent to 7 percent, according to the Sugar Regulatory Administration (SRA). Data from the Bureau of Customs showed that the Philippines imported 373,137.994 metric tons (MT) of HFCS last year, which is 50.94 percent higher than the 247,204.570 MT imported in 2015. The total volume of HFCS imported in 2016 was equivalent to 287,316.256 MT volume of raw sugar. The SRA and sugar industry stakeholders pointed to the massive importation of HFCS by beverage companies as the culprit in the depression of price of local sugar by as much as P500 per 50-kilogram bag. Jasper Emmanuel Y. Arcalas

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Palace to Congress: Fast-track NFA charter revision Continued from a12

the Agricultural Tariffication Act, which imposed the nontariff barrier following the country’s accession to the WTO in 1995. The imposition of rice QR under RA 8178 is not time-bound, thus allowing the nontariff barrier to remain in place even after the waiver expires. “The NFAC believes that we should let the private sector do the importation of rice instead of NFA. They know the market forces way better than the NFA,” Evasco said. “Under the law, the NFA is mandated to insure adequacy of supply and stability of commercial prices at levels within the reach of lowincome families. The NFA, therefore, is not required to directly participate in the market,” he added. The Cabinet secretar y also said the NFAC has directed the NFA management to amend the guidelines for the 2017 MAV importation and require participating traders to allocate 25 percent to 30 percent of their quota for 25-percent brokens rice. He said tweaking the guidelines would ensure rice would remain accessible to poor families. “Private importers in practice usually import 5-percent to 15- percent brokens rice, or the so-called premium rice, which goes to commercial stocks. However, this time, the council will require private importers to allocate around 25 percent to 30 percent of their quota for 25-percent brokens of rice,” Evasco said.

Taipei. . .

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Beijing has claimed Taiwan as part of its territory, to be united by force if necessary, ever since the two sides split as the civil war drew to a stalemate in 1949. A prerequisite for countries dealing with China is dropping any official diplomatic ties with Taiwan. Deng says stronger institutional relations with other countries in Asia doesn’t mean pushing for formal recognition for Taiwan, but rather that Taipei must be able to negotiate directly with other governments to ease the path for Taiwanese companies looking to invest in the region.

Diplomatic isolation

Despite hav ing officia l ties with just 21 mainly developing countries in the Pacific, West Africa and Central America, Taiwan signed free-trade agreements with New Zealand and Singapore in 2013. All other investor-protection agreements it has with other countries were signed decades ago. Eddie Chang, the former president of Taiwanese bubble tea maker La Kaffa, led the company’s expansion into Southeast Asia. Now a consultant specializing in overseas expansions, he says diplomatic isolation is an issue. “The lack of official ties is the biggest problem local companies face when investing overseas,” he said. “Add to that the fact the judicial systems in these countries are less developed, and you don’t stand a chance if there’s a legal dispute.” He said many Taiwanese companies get around that by registering in another country or joining forces with investors from a third country

“This move will guarantee availability of affordable rice in the local market. This policy shift is also more consistent with President Duterte’s pro-poor policy,” he added. Despite the decline in the NFA’s rice stockpile, Evasco made an assurance that the country’s rice supply remains adequate and that there is no shortage yet. “There is actually no shortage yet. But the lean months is fast approaching, hence, we need to prepare. Importation of rice is all about timing,” he said. “Let us not speculate on having a shortage. An alarmist stance will only trigger the world market price to go up.” To further beef up the country’s rice supply, Evasco said he has ordered the NFA to allow the entry of the remaining volume of rice approved under the MAV scheme for 2016. “The council has ordered the NFA management to sign the remaining import permits covering 54,000 metric tons [MT] from the 2016 MAV that are already in our domestic ports, and publish the extension until June for the remaining 20,000 MT to augment our stocks,” he said. Last year the NFA allowed 210 farmers’ organizations and private firms to import 692,340 MT of rice, lower than the country’s annual MAV of 802,500 MT. Rice imported within and outside MAV are slapped a tariff of 35 percent and 50 percent, respectively. to enter a market under their banner. Compared with other countries, Taiwanese companies have been late to enter Southeast Asia and can’t afford to ignore the fastgrowing region’s potential, according to Carl Liu, an economist at KGI Securities in Taipei. “Taiwan’s trade with the US and Europe is declining,” Liu said. “The goal now is to take advantage of the fact trade with Southeast Asia is growing faster than it is shrinking with other regions, so total trade can keep expanding.” Of the 18 countries targeted by the Southbound policy, Deng identified six—including Indonesia, Vietnam and the Philippines—as priorities for signing new investment-protection and tax-exemption agreements. Companies the government owns stakes in, such as Chunghwa Telecom Co., Taiwan Sugar Corp. and Taiyen Biotech Co., are leading the way. While investment may take time to show signs of accelerating, tourism is one area where the government can point to immediate results. Since Tsai’s inauguration a year ago, leaders in Beijing have cut all direct ties, insisting she first acknowledge Taiwan is part of China. While mainland arrivals in the fourth quarter fell 40 percent from a year earlier, Taiwan posted a record number of visitors in 2016 after relaxing visa restrictions for tourists from Southeast Asia. The foreign ministry plans to ease tourism rules even further to ensure the number of arrivals from that region continues to grow, according to Deng. “Before, changes to visa regulations fell through because we always insisted on reciprocity from the other country,” Deng said. “But then something clicked in us. It’s better for us if they just come.” Bloomberg News

Online-gaming. . .

“I think the Philippines is probably one that comes to mind. First, simply because we are seeing decent amount of growth in inbound Chinese volumes; but the real exciting part there is the local story. The local economy, it’s going so well, so you’re seeing the GGR in the Philippines get better and better. And it’s not dependent on Chinese entirely; so that’s interesting,” Govertsen said during the forum. Based on data from Pagcor, during the third quarter of 2016, the GGR of

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the gaming industry reached P118.037 billion, which expanded by 18 percent from the third quarter of 2015 figure of P98.606 billion. “I do agree that the Philippines looks like the market to look for. I think the gambling appetite in Asia is still humongous, as long as you can build casinos, integrated resorts, entertainment around that, good food, I think that’s an easy bargain,” Morgan Stanley Asia Managing Director Praveen Choudhary said.

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C.A. confirms Cayetano, other DFA officers By Butch Fernandez @butchfBM

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ENATORS and congressmen sitting in the Commission of Appointments (CA) on Wednesday swiftly confirmed President Duterte’s nomination of their former colleague, now former Sen. Alan Peter S. Cayetano as Secretary of Foreign Affairs. In the same session, the CA also approved Sen. Panfilo M. Lacson’s Sr. endorsement to confirm other Department of Foreign Affairs’s appointees, including those of Wilfredo Cunanan Santos as Philippine ambassador to Iran, Turkmenistan and Uzbekistan, ambassador to Lebanon Bernardita Catalla and Adnan Alonto as ambassador to Saudi Arabia and Yemen, as well as the ad interim appointments of Foreign Service Officers Robert Borje and Jim Minglana. The bicameral body, however, suspended further hearings on other pending Cabinet nominations, including that of Secretarydesignates Rafael V. Mariano (agrarian reform), Judy M. Taguiwalo (social welfare) and Paulyn Jean B. Rosell-Ubial (health).

Senate Majority Leader Vicente C. Sotto III said the commission deferred action on the three appointments until CA members are done reviewing rules on secret balloting to confirm or reject Cabinet nominees. Sotto clarified that the decision of CA members to defer voting had nothing to do with the qualification of the three nominees. “The CA hearings were suspended for lack of material time, as the commission is already set to adjourn next week even as the rules committee, chaired by Sen. Bam Aquino, has yet to resolve issues surrounding CA secret balloting.” The Senate Majority Leader did not rule out the possibility that the three Cabinet appointees will likely be bypassed for lack of time when Congress adjourns on May 31. In a separate interview, Sen. Gregorio Honasan disclosed the CA members opted to affirm the rules on secret balloting “to protect the nominees from premature backlash”, as well as “protect CA members from undue pressure.”

Editor: Dionisio L. Pelayo • Thursday, May 18, 2017 A3

CA defers Ubial confirmation

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HE Commission on Appointments (CA) on Wednesday deferred the confirmation of Health Secretary Paulyn Jean B. Rosell-Ubial to allow two more opposers to air their sentiments against her confirmation.

Ubial, who is aware that she had opposers, remains optimistic that she would be confirmed and vowed to lead the Department of Health (DOH) the best way she can. “Rest assured that the DOH will be an agency that practices full transparency and proficiency. We will accomplish to the best we can to fulfill the department’s mandate. I respectfully submit myself and my desire to be confirmed by this

honorable body,” Ubial said in her opening statement. “I shall not back down nor be disheartened in my commitment to the President and to the Filipino people and my DOH family. He has placed his trust and confidence in me and I will not fail him,” she added. There have been three individuals who have expressed opposition against Ubial’s confirmation—Par-

ty-list Reps. Harry Roque of Kabayan and Aniceto Bertiz of ACTS OFW and lawyer Restituto Mendoza. Roque, the first to present his opposition, cited “incompetence, lying, waste of government resources and corruption”, among others, as reasons to oppose her confirmation. He claimed that Ubial could not be trusted since she previously lied about the Philippines being “Zikafree” in September 2016. However, two days later, the congressman said she was contradicted by her undersecretaries. Roque also claimed that Ubial was involved in corrupt practices for disallowing the implementation of dengue vaccines and for reported fraud within the Philippine Health Insurance Corp., the DOH’s attached agency. Ubial, for her part, explained that she was not contradicted by

Duterte mum on Napoles case By Elijah Felice E. Rosales @alyasjah

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Airport cops spruce up Pasay schools

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VIATION security personnel temporarily let go of their guns and rifles, and brandished paintbrushes and brooms as they joined the call for sprucing up the various schools in Pasay City. The National Police Aviation Security Group (Avsegroup) commander, Chief Supt. Sheldon G. Jacaban, said the force’s effort to make schools clean “is meant to ensure that the students have hygienic surrounding to enable them to have a good learning environment”. The force’s Police Community Relations Section, headed by Supt. Samuel B. Hojilla, along with 120 Avsegroup personnel repainted school buildings and repaired furniture and related facilities in preparation for the opening of classes on June 5.

Jacaban said the activity, which started on Tuesday, will not hamper the duty schedule of police officers at the airport. Personnel from Aviation Security Unit-National Capital Region joined in cleaning up Rivera Village Elementary School, while personnel from Avsegroup headquarters and Special Operations Unit did cleaning chores at Kalayaan National High School starting Wednesday until May 18. After Kalayaan school, the SOU will visit the Pasay Science High School on Friday to render the same community service. Personnel from other Aviation Security Units and their outlying stations had also taken part in the conduct of Brigade Eskwela in their respective area of responsibilities, Jacaban said. Recto L. Mercene

Killings, killings...

Assistant Secretary of the Interior for Plans and Program Epimaco V. Densing III (right) and Chief Supt. Dennis A. Siervo of the National Police’s Human Rights Affairs Office discuss the alleged extrajudicial killings in a news conference at the Department of the Interior and Local Government main office in Quezon City. PNA

BI agents nab Senior US officer has good words for Philippine jungle warfare school 4 S. Koreans wanted for Internet fraud

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HE Bureau of Immigration arrested four South Koreans wanted by authorities in Seoul for allegedly engaging in Internet fraud operations that have victimized many of their compatriots. Ryu Sunggon, 43; Park Kyeol, 29; Kim Myung Ryun, 27; and Song Jungrak, 26, were arrested by the bureau’s Fugitive Search Unit in their workplaces at BF Homes, Parañaque City. In a statement, Immmigration Commissioner Jaime Morente said the foreigners have been issued arrest warrants by a South Korean court where they have been charged with fraud and voice phishing. He added that the suspects will be deported for being undocumented aliens and for posing risk to public safety and security owing to their being fugitives from justice since their passports have been canceled. Voice phishing refers to the criminal practice of using social engineering over the telephone system to gain access to private personal and financial information from the public for the purpose of financial reward. It was learned that those arrested were among seven Koreans suspected of operating the syndicate and whose arrest was sought by the South Korean embassy in Manila. PNA

HE Philippines has a very good jungle warfare school in Ternate, Cavite, said a ranking American military official involved in the antiterrorism phase of this year’s RP-US Exercise Balikatan. The US Joint Task Force commander, Brig. Gen. John Jansen, said he has observed American and Filipino troops perform counterterrorism drills in Fort Magsaysay, Palayan City, Nueva Ecija, and Ternate, Cavite, a few days ago. “They train to a very high level that brings in the kind of capabilities that you need to be able to locate, identify, track, close with and do the things that need to be done relative to terrorists,” said Jansen, the deputy commander of the US’s III Marine Expeditionary Force. Drills include clearing a town infested with terrorists and disarming improvised bombs and explosives left by lawless elements. “You’ve got a very good jungle warfare training school down there. In fact, we think we have a very good jungle warfare training school in Okinawa, Japan. It’s very tough, they put you out there with a bottle of water and a Ka-Bar knife. They put you out there and pick you up in seven days kind of thing. Our Marines say yours is tougher here… down there in Ternate,” he added. This year’s Balikatan exercises started on May 8 and will wind up on May 19.

US ready for disasters in PHL

AMERICAN forces can deploy units

her undersecretaries. In fact, she said that it was she who instructed them to clarify her earlier statement after new Research Institute for Tropical Medicine (RITM) results were released. She also said it was not she who ordered the stop of dengue vaccine implementation but an “expert panel”. “I was the one who instructed my assistant, Dr. Eric Tayag, and Gerardo Bayugo two days after when the RITM results came out,” Ubial said. “It is not the secretary of health who decides on whether to continue or not, there was an expert panel created in July and their recommendation was not to expand to other areas the immunization of the dengue vaccine so that was what I told the Congress and the media,” she added. PNA

to help the country’s military forces within 24 hours in case a massive disaster hits the Philippines. This was bared by the US exercise director of the command post-staff exercise phase of the war games, Maj. Andrew Merz, in an interview on Wednesday. The latter was held at the Command and General Staff College (CGSC) at Camp General Emilio Aguinaldo, Quezon City, where the Armed Forces General Headquarters and the office of the Department of National Defense are colocated. Participating were 75 US military personnel along with 40 CGSC students. Serving as observers were members of the Australian and Japanese militaries. “In an actual disaster, the US will send several different type of teams down almost immediately within 24 hours, so not only will the US send their teams, there will also be a joint humanitarian assistance team to start coordinating with the AFP for the initial response,” he added. Merz added the US military will take a supporting role in this event

and will provide support that is not readily available, like lift support. In Wednesday’s Balikatan drills, he said US forces are focused on providing their Filipino counterparts with general tactics, techniques and procedures that can be used in a range of operations, including humanitarian assistance and disaster relief (HADR) and counterterrorism. Scenarios played in the Staffex were HADR, which include responses to a Category 5 typhoon, which battered the Eastern Visayas, with a bit of counterterrorism involving a hijacking incident. These stimulated events are designed to test the Philippine military’s crisis action planning team on how quickly they can resolve the terrorist scenario so they can move on with their HADR missions.

Militant group blasts war games

THE League of Filipino Students (LFS) on Wednesday condemned the holding of RP-US Exercise Balikatan, saying it is proof that the US continues to meddle in the country’s affairs under President Duterte’s “independent foreign policy”. Balikatan has been disguised as “humanitarian aid and disaster response training” to make it look palatable to the people, LFS stressed. “With Duterte’s interest in forging an alliance with China, the US quickly attempts to reestablish its hold on the Philippines. The challenge by a rising imperialist power compels the US to protect

and ensure its dominance over the Philippines,” LFS National Spokesman JP Rosos said. “Army officials from both US and the Philippines feed the public of Balikatan’s importance as a symbol for ‘strengthening’ US-RP relationship, but these excuses won’t mask their true hegemonic purpose.” Rosos pointed out that tragedies, like Supertyphoon Yolanda, are being used by the Armed Forces to justify invasive military training. “By securing its [foothold] on eastern seaboard, it becomes apparent that it is a vital move for the US to gain advantage over the imperialist tug-of-war for Benham Rise and the whole Philippine territory itself,” he said. “Duterte has promised to pursue an independent foreign policy by cutting treaties with China similar to the Visiting Forces Agreement. This will not defend Philippine sovereignty, but will further violate it. Now that China, too, is directly asserting itself on the Philippines, it is time to fulfill that promise and assert territorial integrity,” Rosos said. LFS also called on the youth and the Filipino people to stand firm against foreign intrusion. “Whether it is the US or China that is imposing itself upon us, we must fight for our national interest with the same fervor. After all, it is only the Filipino people, through collective action, who could free themselves from foreign stranglehold, imperialist exploitation and abuse,” Rosos added. PNA and Marvyn N. Benaning

RANKING Malacañang official on Wednesday belied claims that President Duterte believes suspected “pork” barrel mastermind Janet Lim Napoles is innocent of any crime. “The President has not made an opinion on that [matter],” Chief Presidential Legal Counsel Salvador S. Panelo told reporters. Panelo was reacting to Napoles’s lawyer, Stephen David, who claimed in a television interview that Duterte himself was in support of his client’s case. “He [Duterte] said he believed that Janet is innocent,” David said in the television interview. However, David added he never raised Napoles’s case to the President. “Honestly, I will invoke God’s name: I never, never mentioned Janet Lim Napoles to him [Duterte],” he said. “[I never talked about Napoles with him] prior to his statement before the public that he will revisit the Napoles case,” he added. This was strongly denied by Panelo, saying, “We don’t even know if the President knows that person [David].” Panelo added that Duterte “does not interfere” in the Judicial process because his focus is on Executive tasks. On the other hand, Panelo said the administration fully respects any decision that will be made by Ombudsman Conchita Carpio-Morales in relation to the Napoles’s case. “Under the law, it is the Ombudsman who will prosecute the case. [Whatever her decision is]…it should prevail,” Panelo said. This was after Morales made public her strong opposition to the Department of Justice’s proposal to use Napoles as a state witness on the pork-barrel scam. “As far as the prosecution is concerned, she [Napoles] is one of the alleged malefactors. Certainly, the Office of the Special Prosecutor will block any attempt to make her a state witness,” Morales said. “We don’t find [Napoles] to be a candidate for being a state witness,” she added. Justice Secretary Vitaliano N. Aguirre II contradicted Morales’s statement, claiming “it is the right of anybody to do anything as long as it is not against the law”. He said the Department of Justice had the exclusive right to place any individual under the witnessprotection program. Napoles hit the headlines lately after being acquitted of the illegaldetention case against her.

Economy

A4 Thursday, May 18, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

BMI Research: PHL construction growth among fastest in the world

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MI Research has seen the Philippines, along with Myanmar, Ethiopia, Qatar and Pakistan, to have the fastest growth in construction sector from 2017 to 2021. The research arm of Fitch Group said the growth in construction in these countries are driven by demands for better logistics profile and infrastructure, except for Qatar, whose infrastructure investments are in preparation for its hosting of the Fifa World Cup 2022. In its infrastructure outlook report released on Wednesday, average annual growth for the Philippines’s construction sector over the five-year period is seen at 11.2 percent. BMI Research’s projection for Myanmar was the highest at 13.5 percent, followed by Ethiopia at 13.2 percent, Qatar at 12.1 percent and

11.2% The projected average annual growth for the Philippines’s construction sector over the five-year period

Pakistan at 11.8 percent. BMI Research said the government’s commitment to roll out public-infrastructure projects in the

pipeline is supporting the growth of the construction sector. “The Philippines’s construction market is set to benefit from President Rodrigo Duterte’s heavy prioritization of infrastructure development, as well as funding support from China and Japan,” the report stated. “Since taking office, Duterte has committed over $144 billion to the sector over the next six years and deepened diplomatic ties with China in order to draw in much-needed investment into driving momentum into the Philippines’s infrastructure plans,” it added. During his first state visit to Beijing in October 2016, Duterte bagged some $24 billion worth of infrastructure and financing deals. Among the first China-funded infrastructure projects to be built will be the two bridges over Pasig River, which will symbolize the Philippines-China friendship, as well as two drug-rehabilitation centers. These projects amounted to 550 million Chinese yuan, or about P4.0

billion, which is part of the agreement in the 28th Joint Commission on Economic and Trade Cooperation signed by Philippine Trade Secretary Ramon M. Lopez and Chinese Minister of Commerce Zhong Shan in March. “Further supporting growth in the sector will stem from development assistance and private investment from Japan, which pledged $8 .7 billion to the Philippines in January 2017,” the BMI Research added. In order to continue the country’s strong economic growth, the Duterte administration recognized the need for better public infrastructure by building highways, expressways, railways, sea ports, airports and bus rapid transit, among many others that would effectively bring convenience to commuters and impact the cost of doing business in the country. Under its Build, Build, Build initiative, the government targets for an interrelated and interconnected infrastructure projects. PNA

NGCP in talks with SSS for Pasay property

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he National Grid Corp. of the Philippines (NGCP) and the Social Security System (SSS) are currently discussing options on the pension agency’s Pasay property being eyed for the construction a 230-kilovolt (kV) substation project. Social Security Commission (SSC) Chairman Amado D. Valdez said he was grateful to NGCP officials who agreed to look into other properties for the construction of their Pasay 230-kV substation project in the area. “More than anything else, the welfare of our members and pensioners are our primary concern. We want what is best for them and we will ensure that their rights are protected,” Valdez said. NGCP, however, maintained that the Pasay 230-kV substation project is meant to be the long-term solution to meet the increase in demand for power in the nation’s capital, and effectively distribute the existing load of transmission facilities serving the Manila Electric Co. (Meralco). The project includes a provision to connect the substation directly to a substation in Bataan via a high-voltage submarine cable. The province of Bataan hosts numerous power plants that supply electricity to Metro Manila. “While we recognize the concerns of SSS, our primary concern remains to be the integrity of the power grid. Any alternative location must not only be suitable and viable for the project, it must, more important, be the most optimal for the grid,” a news statement issued by the NGCP said. The SSS earlier filed a petition through the Office of the Government Corporate Counsel (OGCC) questioning the propriety of the complaint for expropriation by NGCP against the property of SSS located along Diokno Avenue in Pasay City. A writ of possession for the 6.5-hectare SSS property issued by the lower court is still in effect, and grants NGCP possession of the same. NGCP has agreed to temporarily stop activities within the area, but clarifies that the needs of the grid are their paramount concern. “This project, in particular, plays a crucial role in power stability for Metro Manila. NGCP is eager to begin this project at the soonest possible time as we want to avoid any delays that will ultimately compromise the power supply to Luzon’s load center,” the NGCP stressed.

Rush delivery A group of delivery workers utilize a custom-made tricycle, or kuliglig, to transport several sacks of newly harvested onions from the Port of Manila to the Divisoria market.

NONIE REYES

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Makati City reports ‘robust’ revenue-collection figures from Jan-to-April period By Claudeth Mocon-Ciriaco Correspondent

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he Makati City treasurer’s office has reported that it has already collected 70 percent of its full-year revenue target of P14.5 billion. Jesusa Cuneta, officer in charge of the City Treasurer’s Office, said total revenue collection of the city from January to April has reached almost P10.2 billion, topping last year’s collections by over P800 million, or 9 percent higher than the same period last year, without increasing taxes. Makati Mayor Mar-Len Abigail Binay underscored the importance of sustaining the city’s strong relationship with the private sector in ensuring economic stability. “The robust growth of our revenues will allow the city government to continue investing in public health, education and social services, and further enhancing the business climate,” she said. During the said period, the city collected almost P5.3 billion in business tax, which is 62.9 percent of target for the year and 7 percent higher than last year. Records of the city Business Permits and Licensing Office showed a total of 1,704 new businesses registered since January. The next highest collection came from realty tax at almost P3.9 billion, or 95 percent of target for the year. It is also 9 percent higher than actual realty tax collection for the same period last year. Other revenue sources included in the city treasurer’s report are fees and charges, P426.9 million; economic- enterprise, P67.7 million; interest income, P66.1 million; internal revenue allotment (IRA), P354.7 million; and share from economic zone, P92.2 million. Makati is among a few local government units in the country that

@lorenzmarasigan

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wo laws that seek to promote road safety are set to take effect this week, according to the transportation department. In separate statements, the Department of Transportation announced that the law prohibiting forms of distracted driving for both public and private vehicles shall take full effect today, Thursday, and the law banning small children from riding motorcycles as passengers shall be implemented tomorrow, Friday. The Anti-Distracted Driving Law under Republic Act 10913 describes “distracted driving” as the performance by motorists of any acts on the usage of their mobile communication devices, electronic entertainment and computing gadgets or devices while vehicles are in motion or temporarily stopped on a traffic light or an intersection. Such prohibited acts made while driving include but not limited to making or receiving calls; writing, sending or reading text-based communications; playing games; watching movies; performing calculations; reading e-books; composing messages; and surfing or browsing the Internet. The implementing rules and regulations for the said law was published 15 days ago. Motorists, however, are allowed

to apply hands-free function or applications in the use of such devices or gadgets so long as these do not interfere with their line of sight. This new law is a preventive measure to avoid or lessen accidents and injuries from happening while promoting road safety and responsible driving among motorists. Aside from public and private vehicles, this law also covers wheeled agricultural machineries, construction equipment, and other forms of conveyances such as bicycles, pedicabs, trolleys, habal-habal, kuligligs, wagons, carriages and carts that may either be human-powered or pulled by an animal, as long as the same are operated or driven in public thoroughfares, highways or streets. This law takes exemption when motorists use their mobile phones in making or taking an emergency call from or to: a law-enforcement agent or agency to report a crime or prohibited act, accident, natural calamity, bomb threat, terrorist activities and the like; a government or non-governmental medical or health-care provider on emergency and rescue situations; or to a fire department in cases of fire or explosion. Violators will be penalized with a fine of P5,000 for the first offense, P10,000 for the second offense and P15,000 for the third offense with a three-month suspension of driver’s license. Violations incurred beyond the

third offense shall be penalized with the revocation of driver’s license and a fine of P20,000. The Children’s Safety on Motorcycles Act of 2015, on the other hand, imposes the disallowance of a small child on a two-wheeled motor vehicle. Its rules and regulations stipulate that only children whose feet can reach the foot peg, could wrap their arms around the driver’s waist, and wear protective gear, such as a helmet, may be allowed to ride on a motorcycle with an adult. The law covers all public roads, including roads where there is a heavy volume of vehicles, where there is a high-density of fast-moving vehicles, or where the speed limit is more than 60 kilometers per hour. An exception applies only to cases where a child to be transported requires immediate medical attention. Violators will be fined P3,000 on their first offense, P5,000 on their second offense and P10,000 on their third offense and suspension of driver’s license for a month. Beyond the third offense, violators will have their licenses revoked. The law was signed on July 21, 2015. 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 accident recording analysis system in 2013.

Makati City’s total revenue collection from the Januaryto-April period, representing 70 percent of the city’s fullyear revenue target of P14.5 billion

are not dependent on IRA. A few months after Binay began her term as chief executive of the country’s financial center, several reforms and innovations were made in the systems and operations of the city government to make its services more efficient, accessible and convenient to residents and taxpayers. These include the convergence of all front-line offices involved in tax payment and renewal of business permits at the ground floor of Makati City Hall Building II, which relieved taxpayers of the burden of going from one building or floor to another. The absence of “fixers” was also noted by satisfied taxpayers. During renewal period, the barangays and the Bureau of Fire Protection were also provided their respective areas for the issuance of barangay clearance and fire-safety compliance certificate. Additional waiting areas and special lanes for senior citizens and persons with disability were also placed for the convenience of taxpayers. Since July last year, city hall has closed down a total of 158 errant establishments for operating without business permits and other violations, in line with the thrust of Mayor Binay to restore discipline and respect for the law in the city.

Qatar investment delegation to visit Manila in September

Hefty fine for ‘distracted’ driving, A children on motorcycle back ride By Lorenz S. Marasigan

₧10.2B

delegation from the Qatar Investment Authority (QIA) is set to visit Manila, possibly in September, to scout for possible business deals here following President Duterte’s successful visit to the Gulf state last month. A news statement released by the Department of Foreign Affairs on Wednesday said Qatar Ambassador to Manila Ali Ibrahim A.I. Al-Malki had informed Finance Secretary Carlos G. Dominguez III of the planned trip and extended his country’s, thanks to the Philippine government for Duterte’s “very successful” visit to the Middle East in April. An investment protection and promotion agreement between the two countries, which took 10 years to finalize, was signed during Duterte’s visit, opening some $1 billion in possible investments from Qatar through the QIA. Dominguez informed the envoy that the QIA can explore investments in such fields as tourism and logistics. “There are many areas where we need tourism facilities. We will welcome investments from your fund in that area,” Dominguez said. “We are an archipelagic nation, so Qatar can also look into investing in logistics, shipping here.” The finance chief also said Qatar can invest in the pharmaceuticals industry and the housing sector. The QIA, which serves as the sovereign wealth fund of Qatar, manages and invests the state’s revenue surplus in various multibillion-dollar investment deals across the globe. Qatar is the world’s biggest ex-

porter of liquefied natural gas. According to the Sovereign Wealth Fund Institute, Qatar’s wealth fund is the 14th largest in the world. Dominguez said he will help arrange meetings between the QIA delegation and the Philippine Chamber of Commerce and Industry and other business groups once the visit pushes through. Ambassador Ali also said he is planningtoorganizeatourismexpoinQatar showcasing the Philippines, as Qataris do not know much about the country as a tourist destination as they do the other Southeast Asian countries. During the meeting, Dominguez discussed with the envoy the Philippine government’s preference for a hybrid Public-Private Partnership (PPP) program formula. Under the hybrid PPP mode, the government selects, finances and builds big-ticket projects through competitive public bidding and, upon completion, auctions off their operation and maintenance to the private sector. Adopting a hybrid formula is the fastest and most cost-effective way of utilizing the PPP mode in partly implementing the Duterte administration’s unmatched infrastructure buildup over the next five years, Dominguez said. Besides an Agreement on Reciprocal Promotion and Protection and Investments, which secured for the Philippines an initial $206 million in business deals from Qatar, the two countries also signed during President Duterte's April visit agreements on cultural cooperation; health and research; and technical-vocational education and training. PNA

The Regions BusinessMirror

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Editor: Efleda P. Campos • Thursday, May 18, 2017

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ARMM asks LGUs to protect Islamic scholars By Manuel T. Cayon

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@awimailbox Mindanao Bureau Chief

AVAO CITY—The Autonomous Region in Muslim Mindanao (ARMM) has asked local communities to protect their ulama, or Islamic scholars, after a still-unknown Moro group issued a public warning to families of ulama to keep away from their company or risk getting harmed. The appeal came with the plan of the ARMM Department of the Interior and Local Government (DILG) to localize the fight against terrorism and illegal drugs, following the first antiterror summit held over the weekend and attended by more than 300 ulama across the country. DILG-ARMM Secretary Noor Hafizullah Abdullah issued the appeal on Tuesday, after the erstwhile unknown group Dawla Islamiya threatened last week the ulama who attended the three-day summit against terrorism in Cotabato City last weekend. The group is known to have pledged allegiance to the Islamic State of Iraq and Syria (Isis). “To those who have ulama relatives, warn your parents, brothers and children not to attend the said summit because, if something happens to them along the way or in the end, don’t tell us you were not warned,” the Dawla Islamiya state-

ment read, according to the ARMM Bureau of Public Information. The summit was significant for the ARMM, in whose areas are found the known terror organizations the Abu Sayyaf Group, operating in Basilan and Sulu; and the Maute Group, still confined to Lanao del Sur. After the warning, Abdullah urged the local government units “to protect the Islamic scholars or the ulama and the region’s constituents against threats from radical terrorist groups.” He said the 116 municipalities and two cities in the region would soon conduct a summit against terrorism and illegal drugs. The local summits “would synchronize measures on how to restrain criminality, terrorism and illegal drugs, which affect the peace and order situation in the region.” He said the LGUs “must be at the forefront of this battle and must have a major role in combating terrorism.”

“The summit will help confront terrorism and extremism at the municipal level,” Abdullah said. “Liliit ang mundo ng mga teroristang grupo kapag nakita nila na lahat nagtutulungan to fight terror acts,” he added. ARMM Gov. Mujiv 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 national government considers terrorism as an urgent and critical national security threat.” The Davao City-based online news outfit MindaNews has Maguindanao Gov. Esmael Mangudadatu as having sought the help of the 36 mayors of the province “in halting reported attempts by foreign visitors to spread the teaching of violent extremism”. “Some foreign Muslim preachers have gone to some secluded parts of the province to teach bomb-making instead of the way to become a good Muslim,” Mangudadatu told the mayors during the Provincial Peace and Order Council meeting on Tuesday in Buluan town, Maguindanao. He urged the mayors and barangay officials to monitor the madaris, or Islamic schools for the possible presence of these personalities. “These persons could easily dupe our locals, especially poorly educated communities,” MindaNews said, quoting Mangudadatu, as the governor further warned “their use of Arabic could impress locals even if what’s being taught is no longer what is right.”

Quezon town to promote Pahiyas, other cultural celebrations, events

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UCBAN, Quezon—As this town’s Pahiyas thanksgiving festival continues to draw millions of local and foreign visitors and tourists, Gov. David Suarez and Lucban Mayor Celso Olivier Dator join hands in promoting more spectacular celebrations to showcase local products and culture. “Wherever I go, the Pahiyas Festival of Lucban makes Quezon province well known and its celebration yearly just lures millions of tourists from all over the country because it highlights the industry, creativity, joy, the richness of local culture and showcase the pride of place for Lucban town,” Suarez said in his short message of celebration and solidarity with the local inhabitants, tourists and visitors at the makeshift stage in front of the municipal building in the town poblacion. Suarez, who sat at the stage with guests of honor, led by former Sen. Ferdinand Marcos Jr. and various government officials from the departments of Tourism, Social Welfare and Development and Health, and representatives from the Office of the President, disclosed his

plan to establish a Pahiyas Center of Quezon province in a 1-hectare lot identified by Dator. “I seek to make the Pahiyas Festival a centerpiece of celebration and I propose to establish a Pahiyas Center of Quezon province and make it an everyday experience of celebration just like what I found in my foreign travel in Europe where there is a place of Christmas celebration every day,” said the governor, who presented a symbolic check worth P200,000 as donation for the town’s festival that honors San Isidro Labrador, the patron saint of farmers. His wife, Party-list Rep. Ana Villaraza-Suarez of Alona followed suit with a P100,000 donation of her own. Vowing to join hands with Suarez in implementing convergence programs of national government agencies for local development thrusts, Dator went on to introduce Marcos as the guest of honor of the festival. Suarez and Dator on Monday welcomed guests at the Benito Pilar Yao Hall in the municipal building that included—aside from Marcos—Assistant Secretaries Eric Tayag of the

Department of Health, Frederick Alegre of the Department of Tourism, Anton Hernandez of the Department of Social Welfare and Development; Baby Ignacio of the Office of the President for Special Projects; Dennis Hernandez, presidential adviser for Southern Luzon; Subic Bay Metropolitan Administration Chairman Martin Diño; regional director for agriculture in Region 4A Arnel de Mesa; and PNP Spokesman Chief Supt. Dionard Carlos. Dator and wife Maricel Gina welcomed the arrival of Quezon Vice Gov. Sam Nantes and wife Marie Asensi at the municipal dining hall upstairs and were awarded a plaque of appreciation. In the morning Dator and other municipal officials and guests did a “Walk Tour” starting from Saint Louis Bishop Parish Church, Tiangge sa Lucban market stalls and along the Pahiyas routes of the main avenue of the town, which were all bedecked with the traditional kiping (rice wafers), newly harvested fruits and vegetables, native products and other decorative items that adorn the houses and line the streets. John Bello

FISHERMEN’S WATCH Three fishermen in Mindoro, Ilocos Sur, prepare their fishnets while a tanker passes by off shore. MAU VICTA

DOLE urges SMC service Miner accuses DENR of allowing providers to self-check By Charles R. Pepito Correspondent

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HE contractors and subcontractors of a Filipino multinational company converged during an orientation held last week by the Department of Labor and Employment (DOLE-7). DOLE-7 Regional Director Elias A. Cayanong, in his message, urged the service providers of San Miguel Corp. (SMC) to assess whether they are compliant with labor laws. “We are calling everyone’s attention to voluntary compliance and we are encouraging our partners to do some self-checking. They should be able to harmonize the way things are being carried out in their respective companies with what the law provides, especially now that Department Order (DO) 174-17 is already in effect,” Cayanong said in a statement. The service providers of SMC— a Filipino multinational publicly listed food, beverage and packaging company—converged and attended an orientation on the Do’s and Don’ts of Labor Standards, as well as on the features of DO 17417, or the Rules Implementing Articles 106 to 109 of the Labor Code, as amended. Cayanong said such is a demonstration of SMC in its intention of helping the department implement the labor laws effectively by making sure its affiliated contractors and subcontractors would be able to abide by the labor laws. Before the contractors and subcontractors present at SMC 1521 Reception Center, Cayanong acknowledged the challenges faced not only by the DOLE, but also by the workers insofar as abusive employment arrangements are concerned. “It is common knowledge there’s a problem on the bilateral and trilateral forms of employment arrangements whereby some employers purposely circumvent the law to refrain from regularizing their workers. This is something which we do not want to prosper anymore,” he said.

Cayanong is calling on all the service providers of SMC and all other establishments engaged with the trilateral form of employment arrangement to work closely with the DOLE and specifically find out whether the functions of the personnel they’re supplying are directly related to the main business operation of their principal or not. He said contractual workers performing functions directly related to the main business operation of the principal is a common observation gathered by the DOLE’s labor laws compliance officers (LLCOs) in their previous joint assessments and compliance visits conducted. Under Section 5 of DO 174-17, labor-only contracting, which is totally prohibited, refers to an arrangement where: a) The contractor or subcontractor does not have substantial capital; or the contractor or subcontractor does not have investments in the form of tools, equipment, machineries, supervision and work premises, among others; and the contractor’s and subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal; or b) The contractor or subcontractor does not exercise the right to control over the performance of the work of the employee. Cayanong stressed the need for a collaborative effort between the DOLE and its social partners in terms of advancing the security of tenure among the workers. “The DOLE is not here to punish those establishments with deficiencies. We are here to help them rectify what is not properly done. After all, the DOLE’s only intention is to create a balance between the interests of the management sector and that of the workers’ sector,” he said. Taking the lead in giving inputs to the participants during the orientation were Director Lilia A. Estillore, Tri-City Field Office head; and Vicente D. Abordo, Technical Support Services Division-Labor and Relations Standards chief.

tree-cutting in Palawan town

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HE cutting of thousands of trees in Brooke’s Point, Palawan, has pertinent permit issued by the Department of Environment and Natural Resources (DENR), the Global Ferronickel Holdings Inc. (FNI) said. Dante Bravo, president of FNI, said the company’s affiliate, Ipilan Nickel Corp. (INC)—which operates in Brooke’s Point—was issued a special tree-cutting and earth-balling permit last year. “We would like to put on record that its affiliate, Ipilan Nickel Corp. has the necessary special tree-cutting permit and earth-balling permit issued by the DENR for its operations in the province of Palawan. INC upholds faithful compliance with the law and adheres to sustainable development,” he said. Bravo issued the statement in reaction to allegations made by the mayor of Brooke’s Point that INC has been cutting trees illegally. At a news conference together with former Environment Secretary Regina Paz L. Lopez in Quezon City on Tuesday, Mayor Mary Jean D. Feliciano said the company has no permit for such activities. She said heavily armed security guards are securing company personnel as they cut trees using chain saws. The tree-cutting activities, she said, has so far affected close to 100 hectares. The official expressed alarm over its potential environmental impact, especially on water bodies. In February Lopez issued an order cancelling 75 mineral production sharing agreements (MPSAs) of mining companies targeting areas within or near watersheds to protect the country’s water sources. The canceled MPSAs include that of six companies in Quezon, Espanola, Narra and Quezon, and three in Brooke’s Point. Jonathan L. Mayuga

Cebu City’s communicators undergo seminar with NTC

I PUERTO GALERA ‘SCRAMBLE’ A couple walks along White Beach in Puerto Galera, Palawan, selling flavored “scramble” to beachgoers.

FAYE PABLO

N compliance with Republic Act (RA) 3846, an Act Providing for the Regulation of Public and Radio Communications in the Philippines, communicators of the Cebu City government underwent a Restricted Land Mobile (RLM) seminar with the National Telecommunications Commission (NTC). At least 70 communicators from the city’s Quick Response Team (QRT), Emergency Medical Services (EMS), Command Control Center (C3) and Cebu City Medical Center (CCMC) attended the seminar held on May 9 at the Senior Citizens’ Training Center in South Road Properties.

Felipe A. Gumalo Jr., NTC lecturer, said the activity sought to comply with the law stipulated in RA 3846 and in accordance with NTC Memorandum Circular (MC) 07-08-85 dated July 16, 1985, and MC 10-12-95 dated December 29, 1995, as a prerequisite for the issuance of Restricted Radiotelephone Operator Certificate for Land Mobile Station. Gumalo said the seminar was required before the radio operators and communicators would be issued a certificate from NTC to allow them to operate a mobile radio and handled in land mobile services. He said the certificate

from NTC will expire in three years, but could be renewed without undergoing the same seminar. He said the radio communication device of those who do not have the certificate will be confiscated and they would be penalized in accordance with the existing laws. “NTC is regulating the use of radio communications and we are conducting a seminar as required by law. We inform the communicators and operators of our protocols, especially on the law itself, like the right time to interact with a proper communication flow,” Gumalo said. Charles R. Pepito

TheBroad Govt goes all out so youth c

Business

A6 Thursday, May 18, 2017

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By Claudeth Mocon-Ciriaco | Correspondent

IZZY and nauseous. This was how Raymart Domingo Abaño described his first taste of cigarette.

“Nahilo ako sa umpisa nang subukan ko manigarilyo [I began to feel dizzy when I first started to smoke],” Abaño recalled. It was days before his 16th birthday. Now 20, Abaño puffs his way through five sticks of cigarettes every day. He said it was his first cousin who influenced him to smoke when he was still a third-year student at Santo Domingo National High School in Calauag, Quezon province. “Sinubukan ko lang manigaril­yo kasi na-curious lang ako [I tried smoking out of curiosity],” Abaño said. Inside their house, smoking is never an issue for his father, also a smoker. But he said that when he has a family of his own, he will not let any of his children smoke. Abaño has stopped going to school, and is currently a maintenance worker for an apartment in Quezon City that is owned by his relative. Had he had Concepcion Apolinar as mother, things could have been different. Apolinar, 59, mother of four, is adamant against smoking.

Mother’s woe

APOLINAR, a dressmaker, has continuously complained his son has been addicted to smoking for three years now. “Hindi ko talaga alam na naninigarilyo siya. Nahuli na lang ng mga kapatid niya, kaya umamin siya [I didn’t know he acquired the habit, until his siblings caught him smoking],” Apolinar said of son Mario, 18 years old and a student of Sauyo National High School. Apolinar said that since his husband died four years ago, she focused too much on earning for her family. “Minsan nahuhuli ko pa nga siya na nangungupit para lang makabili ng sigarilyo. Hindi bumababa sa anim isang araw ang binibili niya [I caught him stealing money to buy cigarettes. He consumes at least six sticks a day],” she said. Apolinar said it’s her deepest desire that his son quit smoking. “Ayoko siya magkasakit…magastos [I don’t want him to get sick, because it’s very expensive],” she lamented.

Doctor’s advice

ENCARNITA Blanco-Limpin, Framework Convention on Tobacco Control (FCTC) executive director, said it would really be better if young people will not start smoking. “If parents are smoking, then don’t show your children,” said Limpin, who is also a physician. “You are teaching them a bad habit.” According to the doctor, she had a patient who died at the age of 35 because of lung cancer. “He started smoking at the age of 11. Imagine that? A waste of money, a waste of life,” she said. “Life is beautiful. Why don’t we just enjoy it by living healthy?” The Department of Health (DOH) has repeatedly pointed to studies that have shown that most young people who smoke regularly continue to smoke throughout adulthood and fall prey to being replacement smokers of tobacco industry. Hence, the DOH called on students, as well as the rest of the young population, to never start smoking.

Teenage smokers

THE 2015 Global Youth Tobacco Survey (GYTS) data released on

May 5 by the DOH-Epidemiology Bureau showed there has been an increase in the number of teen smokers—between the ages of 13 and 15—in the past four years. The GYTS data also recorded a decline in the number of Filipino adult smokers. The GYTS also noted an increase in tobacco-use prevalence from 13.7 percent in 2011 to 16 percent in 2015. That survey involved 8,789 respondents, of which 48.1 percent, or 4,227, were boys, while 51.9 percent, or 4,561, were girls. The study showed that 12 percent of those surveyed admitted they were smoking cigarettes. This was 3 percent higher compared to the 2011 GYTS that revealed only 8.9 percent said they were smokers. Male teen smokers also increased from 12.9 percent in 2011 to 17.6 percent in 2015. The number of female teen smokers also was higher at 7 percent in 2015, compared to the 2011 study, in which only 5.3 percent of female respondents said they were smokers. The study, however, noted that the 2015 figures were still lower compared to the 2007 GYTS, in which 17.5 percent of participants admitted to being smokers. The GYTS is a nationally representative school-based survey of students in grade school and between 13 and 15 years of age. The GYTS is designed to produce crosssectional estimates for each country. It assists countries in fulfilling their obligations under the World Health Organization-Framework Convention on Tobacco Control (WHOFCTC) to generate comparable date within and across countries.

Reductions

MEANWHILE, the Global Adult Tobacco Survey (GATS) 2015 noted that the prevalence of cigarette smoking among Filipino adults has dropped significantly from 29.7 percent in 2009 to 23.8 percent in 2015. The GATS is a nationally representative household survey among adults 15 years and older. The Philippines agreed to conduct the study first in 2009, followed by another round in 2015, as provided for under the WHO-FCTC. The survey further bared that exposure to secondhand smoke has decreased, as well: from 25.5 percent in 2009 to 13.6 percent in 2015. It noted that the smokefree policies initiated by various government agencies and local government units (LGUs) have contributed substantially to the reduction. The overall reduction in exposure to secondhand smoke does not, however, “disconnect” the findings that a significant number were still exposed in public places. The exposure comes from bars and nightclubs (86.3 percent), public transport (37.6 percent) and restaurants (33.6 percent). The same study emphasized there is no safe level for secondhand smoke and, therefore, urged that all Filipinos must be protected against exposure to cigarette fumes.

Scare tactics

RAISING the horror associated with cigarette smoking seems to have worked well among Filipinos, the GATS said. Warning labels and graphic health information have influenced many of them to quit smoking, from 37.4 percent in 2009 to 44.6 percent in 2015, the study said.

Similarly, the percentage of adults who noticed anticigarettesmoking information at any given location has increased from 80.1 percent in 2009 to 83.2 percent in 2015. Graphic health information through DOH policy issuances (DOH AO 2010-0013) greatly contributed to the progress as evidenced by the significant reduction recorded in smoking data. The concluding analysis stated that “despite these gains, however, the government must institute further actions to sustain the gains and overturn the tobacco epidemic.”

Raising taxes

HEALTH Secretary Paulyn Jean Rosell-Ubial said that drastically raising the tobacco excise taxes, which forced the steady increase on cigarette prices from 2013 through 2017, proved to be the single most effective way of reducing tobacco use among smokers in the Philippines. The tobacco-taxation measures enacted since 2012 were among the crucial catalysts that led to a significant decrease in tobacco use and notable drop in secondhand-smoke exposure among Filipinos from 29.75 percent in 2009 to 23.8 percent in 2015.

Secondhand smoke diseases Health consequences of involuntary exposure to tobacco smoke:

Children Brain tumors* Middle ear diseases Lymphoma* Respiratory symptoms, impaired lung function Asthma* Lower respiratory illness Sudden Infant Death Syndrome (SIDS) Leukemia* *Evidence of causation: Suggestive © 2008 MCT Source: World Health Organization report on “The Global Tobacco Epidemic 2008” Graphic: Jutta Scheibe, Morten Lyhne

Ubial said the reduction in tobacco use among adult Filipinos is strongly expected to result in a marked reduction in tobacco-related noncommunicable diseases, such as cardiovascular diseases, chronic obstructive pulmonary disease, diabetes and cancers. The 2015 GATS also reported that close to 16 million Filipino adults have smoked tobacco products: 40 percent are men and 5 percent are women. Tobacco exposure has been linked to 87,000 annual deaths among Filipinos, which are more than the number of deaths due to HIV/AIDS, tuberculosis and ma-

Adults Stroke* Nasal irritation Nasal sinus cancer* Breast cancer* Coronary heart disease Lung cancer Artherosclerosis* Chronic Abstructive Pulmonary Disease (COPD)*; chronic respiratory symptoms*; asthma*; impaired lung function* Preproductive effects in women; low birth weight; pre-term delivery*

laria combined. The GATS has noted the Philippine economy loses approximately P188 billion every year from tobacco-related hospitalization and productivity loss.

Cause, effect

THE GATS Philippines 2015 data has shown that the reduction in the purchase and use of tobacco products coincided with the increase in the prices. The data also indicated that the proportion of Filipino smokers with intent to quit has increased. Limpin describes high taxes on tobacco products as a “game changer”. The price of tobacco now gives the poor a different perspective. “If they [poor] don’t have enough money to spend, then they would rather spend it to the more important needs of the family: food, education, children, clothing, instead of buying cigarettes,” she explained. However, Ubial said there’s still more to be done, as nearly one in every four Filipino adults continues to use tobacco products. She said there is still a high degree of exposure to secondhand smoke for nonsmoking Filipinos in public places and even in their own homes. “We are grateful for government initiative to impose a smoking ban in public places, where nonsmokers become unwillingly exposed to secondhand smoke,” Ubial said. “It is incumbent on both the national and local governments to protect the health of all Filipinos who choose not to endanger themselves with these substances, and are inadvertently exposed to them due to the actions or indifference of many other Filipinos.”

WHO support

WORLD Health Organization (WHO) Representative to the Philippines Gundo Weiler credits the partnership between government and non-governmental groups to have reduced the negative impact

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can resist tobacco addiction

of tobacco on Filipinos’ health. According to Weiler, “The outstanding results of GATS constitute evidence that determination, leadership and strong advocacy truly work.” The WHO representative said the Philippines has achieved one of the most pronounced decreases in prevalence of tobacco use among countries in Asia over the last several years. “While this is truly a great achievement, we need to redouble our efforts and intensify the interventions that have been proven to be effective,” Weiler said in a news briefing on March 20. He reiterated the need to impose smoking ban in public places nationwide and the full implementation of the FCTC, including the tobacco-taxation law. Weiler said the WHO will continue to support the efforts by the Philippine government to reduce the morbidity and mortality among Filipinos linked to tobacco use.

Wait, watch

THE Department of Finance (DOF) has signaled the agency has been closely monitoring the implementation of the restructured taxation schedule for tobacco products. Finance Assistant Secretary Ma. Teresa Habitan said this particular legislative measure was the first instance in which a flat tax rate was imposed on cigarette products. Habitan said the law should first be allowed to be fully implemented in order to determine whether it fulfills its objectives to significantly curb smoking prevalence among Filipinos, while generating appropriate revenue for the government at the same time. “Let us first see how well Republic Act 10351 works in the long run,” she said. Ubial said the progress and achievements of the tobacco-control policies and advocacies should

E-cigarettes Electronic cigarettes – technically battery-operated nicotine inhalers – are becoming increasingly popular, but the jury is still out on the health risks they may yield. Electronic components Include control circuits, pneumatic airflow sensor

Light Simulates cigarette glow, indicates when device is ready for use and works as battery indicator

Vaporizer Atomizes the nicotine smoking liquid in the liquid container

Nicotine liquid container

Battery

Inhaler Electronic cigarette One e-cigarette 100 6-24 mg. E-cigarette with 24 mg of nicotine 0.16 mg/puff

Comparison

Regular cigarette

Equivalent

6-7 cigarettes

Puffs per cigarette Nicotine level Nicotine per puff

Source: E-Cig

be maximized and pushed further by maintaining the unitary excisetax structure for tobacco products. She said all local government units must strongly enforce all necessary legal restrictions on tobacco use in public places, while recognizing the contributions of all the DOH partners and organizations in government, international community and civil society despite various obstacles and difficulties.

Smoke-free schools

EDUCATION Secretary Leonor Magtolis-Briones reiterated that schools all over the country should be strictly 100-percent smoke-free. Briones said that even before she assumed the post, tobacco-

15 0.6-2.4 mg. Cigarette with 1.8 mg of nicotine 0.16 mg/puff © 2013 MCT

control policy is already strictly implemented. “We are also implementing the Graphic Health Warnings [GHW] template,” she said. The GHW law requires all tobacco products manufactured and for sale in the Philippines to carry GHWs. Department of Education (DepEd) Department Order (DO) 98 issued last year mandates the use of GHW template to educate kids on the dangers of smoking. “They are also included in relevant subjects under the K-to-12 curriculum to educate the students on the ill effects of tobacco use,” said Briones, former National Treasurer. The DepEd is also emphasizing the need of prevention, she added.

That is why the department integrates antismoking and other risky behaviors in the curriculum for them not to catch the bad habit, according to Briones. She also noted they will soon conduct trainings on comprehensive tobacco control for school principals and other members of the schools’ Child Protection Committees (CPC). Established in every school nationwide since 2012, the CPC is tasked to ensure the effective implementation of the DepEd’s DO 48. The order, also called “Policy and Guidelines on Comprehensive Tobacco Control”, was issued last year. According to the DepEd, the content of the training manual on the effective implementation of the DO 48 was drafted in March. The DO 48 aims to facilitate the enforcement of tobacco-control policies in schools and offices, with emphasis on the protection against tobacco-industry interference in the DepEd. The DO defines tobacco-industry interference as “the broad array of tactics and strategies utilized by the tobacco industry to influence or interfere with the setting and implementation of tobacco-control policies.”

Kicking the habit

THE DOH urged those who have started smoking to quit immediately and seek professional help. Ubial has said that not smoking or quitting smoking greatly reduces our risk for disease and early death. The DOH assured government interventions for smoking are in place to extend help to those who need it. In Metro Manila, the government’s smoking cessation centers are located in several hospitals and clinics. These centers are: n Dr. Jose Rodriguez Memorial Hospital in Caloocan City n Amang Rodriguez Memorial

Incurable COPD According to a new study, 25 percent of all smokers will develop Chronic Obstructive Pulmonary Disease (COPD), the fourth leading cause of death worldwide.

What is COPD

Two lung diseases: Chronic bronchitis and emphysema Characteristics: Obstruction to airflow that interferes with normal breathing

Alveoli

Risk factors: Smoking, air pollution, second-hand smoke, heredity

Bronchioles

Lungs

Main symptoms: Chronic cough, shortness of breath; both worsen gradually

Healthy lung

Emphysema

Bronchitis

Air sacks (alveoli)

Irreversible destruction of air sacks (alveoli), permanent holes in tissue

Inflammation and scaring of bronchial tubes; lining becomes thickened

Air tube (bronchioles)

Less oxygen transferred to bloodstream; lungs lose elasticity and airways close

People with COPD ultimately require supplemental oxygen and mechanical respiratory assistance Source: www.lungusa.org Graphic: Jutta Scheibe, Eeli Polli

Hospital in Marikina n Rizal Medical Center in Pasig City n San Lorenzo Ruiz Women’s Hospital in Malabon City n Philippine General Hospital in Manila n Lung Center of the Philippines n Philippine Heart Center n National Children’s Hospital n Saint Luke’s Medical Center n Quirino Memorial Medical Center

© 2006 MCT

“The success of these efforts is living proof that health for all can truly be achieved when all partners work toward the same goal,” Ubial said. “There is still much to be done in our country’s efforts to limit and curtail tobacco use, especially for our economically disadvantaged countrymen who are the most affected with diseases linked to long use and exposure to tobacco products.”

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Indonesia gay couple sentenced to caning

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President Donald J. Trump (second from right) and Turkish President Recep Tayyip Erdogan (second from left) prepare to have lunch in the Cabinet Room of the White House in Washington on May 16. AP/Evan Vucci

Trump, Turkish leader hail ties despite US arming of Kurds

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ASHINGTON—The presidents of the US and Turkey vowed on Tuesday to repair a relationship battered by years of disputes over Syria’s civil war and its various fighting groups, even as they broached a new disagreement over US plans to arm Kurdish fighters. Del iver ing a statement a long side Tu rk i sh P resident Recep Tayyip Erdogan, President Donald J. Trump said the US would re-establish its military and economic partnership with Turkey. He committed to backing Turkey’s fight against the Islamic State (IS) group and a Kurdish insurgency known as the PKK, which t he US, t he European Union and Turkey all consider a terrorist organization. Such groups will “have no safe quarter”, Trump said in the White House’s historic Roosevelt Room, where he also commended Turkey’s “leadership in seeking an end to the horrific killing in Syria”.

Erdogan issued a statement afterward, congratulating Trump for his presidential election victory. While Erdogan called for the extradition of a Pennsylvania-based cleric he blames for a failed coup in Turkey last summer, there was little tension. The biggest dispute between the two North Atlantic Treaty Organization allies in recent days has been the US plans to arm Kurdish Syrian militants to help them fight IS. Turkey has been pressuring the US to drop support for the militants and doesn’t want them spearheading an operation to retake IS’s self-declared capital of Raqqa.

Turkey believes the Kurds in Syria are linked to the PKK. The US sees the Syrian Kurds as their best battlefield partner on the ground in northern Syria. Last month, the Turkish military bombed Kurdish forces in Syria and Iraq, in one case with American forces only about 10 kilometers away. Erdogan’s government also has insisted it may attack Syrian Kurdish fighters again. The US, whose forces are sometimes embedded with the Kurds, has much to fear. In his statement to repor ters, Tr ump did not direct ly address his decision to ar m the Kurds. But he asser ted the US and Turkey’s mutua l commitment to ending Syria’s conf lict. The meeting took place with a W hite House still responding to what a senior US official said was Trump’s disclosure of classified information about an IS terror threat involving laptop computers on aircraft. Trump shared the threat in a meeting with Russia’s foreign minister and ambassador in the Oval Office last week, according to the official, who wasn’t authorized to speak publicly on the matter and demanded anonymity.

The US is relying on regional allies, including Turkey, for intelligence-sharing and military assistance as it crafts a Syria policy, particularly as Iran and Russia work to bolster Syrian President Bashar al-Assad’s government. Trump launched cruise missiles last month at a Syrian air base after accusing A ssad of using chemical weapons. But the president hasn’t outlined a strategy to quell the six-year civil war or usher Assad out of power, which his administration says will be needed to stabilize the Arab country. Trump has gone out of his way to foster a good relationship with Erdogan. After a national referendum last month t hat st reng t hened Erdoga n’s presidential powers, European leaders and r ights advocates cr iticized Turkey for mov ing closer toward autocratic rule. Trump congratulated Erdogan. The White House said after the meeting that Trump raised the incarceration of Pastor Andrew Brunson, an American pastor detained since last October, and asked that the Turkish government expeditiously return him to the US. AP

US hits Syria with new sanctions W

A S H I N G T O N —T h e Trump administration has hit a new group of Syrian people and companies with sanctions over human-rights abuses. Among those named are cousins of President Bashar al-Assad. The Treasury Department announced on Tuesday it has frozen any assets that five Syrian people and five Syrian companies may have in US jurisdictions and has barred Americans from conducting any financial transactions with them. Treasury said in a statement the sanctions were due to Syria’s “relentless attacks on civilians”. The announcement comes a day after the administration accused Syria of killing thousands of detainees at a military prison and cremating their remains to hide the scale of the killing. Among those affected by Tuesday’s sanctions are Assad cousins Ihab Makhluf and Iyad Makhluf, their family’s al-Bustan Charity, and the Cham Islamic Bank. Syria on Tuesday rejected US accusations it carried out mass

13K The number of Syrians who were hanged in four years

killings at a prison near Damascus and then burned the victims’ bodies in a crematorium, describing the allegations as “ lies” and “ fabrications”. The allegations are a “new Hollywood plot” to justify US inter vention in Syria, Syria’s Foreign Ministry said, noting what it called a US track record of using false claims as a pretext for military aggression. The State Department said on Monday it believes that about 50 detainees are hanged each day at the Saydnaya military prison, a 45-minute drive north of Damascus. Many of the bodies are then burned in the crematorium

“to cover up the extent of mass murders taking place”, said Stuart Jones, the top US diplomat for the Middle East. He accused the government of Assad of sinking “to a new level of depravity”. The Syrian government forcefully denied it. “The US administration’s accusations against the Syrian government of a so-called crematorium in Saydnaya prison, in addition to the broken record about the use of barrel bombs and chemical weapons, are categorically false,” the Foreign Ministry said. The new allegation comes at a time when the Trump administration is weighing its options in Syria, where an estimated 400,000 have been killed and half the population displaced by the six-year-old civil war. Last month the US fired cruise missiles on a government air base after accusing Assad’s military of killing scores of civilians with a sarin-like nerve agent. Wester n mon itors a nd watchdog g roups say they have accumu lated ev idence of

mass killings in Syrian prisons, though there have not been any substantiated allegations so far of the use of a cremator ium. The State Department released commercial satellite photos showing what it described as a building in the prison complex that was modified to support the crematorium. The photos, taken over several years starting in 2013, do not prove the building is a crematorium, but show construction consistent with such a facility. The revelations echoed a February report by Amnesty International that said Syria’s military police hanged as many as 13,000 people in four years before removing bodies by the truckload for burial in mass graves. UN Spokesman Stephane Dujarric said on Tuesday the world b o d y c a n no t i n d e p e n d e nt l y verify the US report, saying Damascus has “systematically rejected” repeated requests to visit prisons and detention centers, where thousands of prisoners are believed to be subjected to cruel treatment. AP

ANDA ACEH, Indonesia— A Shariah court in Indonesia’s conservative Aceh province has sentenced two gay men to public caning for the first time, further tarnishing the country’s moderate image after a top Christian politician was imprisoned for blasphemy. The court on Wednesday said the men, aged 20 and 23, would each be subjected to 85 lashes for having sexual relations. One of the men cried as his sentence was read out and pleaded for leniency. The chief prosecutor, Gulmaini, who goes by one name, said they would be caned next week, before Ramadan starts on May 25. The couple was arrested in late March after neighborhood vigilantes in the provincial capital Banda Aceh suspected them of being gay and broke into their rented room to catch them having sex. Mobile-phone footage that circulated online and formed part of the evidence shows one of the men naked and visibly distressed as he apparently calls for help on his cellphone. The second man is repeatedly pushed by another man who is preventing the couple from leaving the room. International human-rights groups have described the treatment of the men as abusive and humiliating, and called for their immediate release. Human Rights Watch said in April that public caning would constitute torture under international law. Prosecutors had asked that they receive 80 lashes. The lead judge, Khairil Jamal, said the men were “legally and convincingly proven to have committed gay sex”. He said the three-judge panel

decided against imposing the maximum sentence of 100 lashes because the men were polite in court, cooperated with authorities and had no previous convictions. “As Muslims, the defendants should uphold the Shariah law that prevails in Aceh,” Jamal said. Indonesi a’s reput at ion for practicing a moderate form of Islam has been battered in the past year due to attacks on religious minorities, a surge in persecution of gays and a polarizing election campaign for governor of the capital Jakarta that highlighted the growing strength of hard-line Islamic groups. Earlier this month the outgoing Jakarta governor, a minority Christian, was sentenced to two years in prison for campaign comments deemed as blaspheming the Koran. The judges also imposed a tougher sentence than sought by prosecutors who had ultimately downgraded the charge from blasphemy and asked for just two years of probation. Aceh is the only province in Muslim-majority Indonesia allowed to practice Shariah law, which was a concession made by the national government in 2006 to end a war with separatists, but some other areas have introduced Shariah-style bylaws. Aceh implemented an expanded Islamic criminal code two years ago that allows up to 100 lashes for morality offenses, including gay sex. Caning is also a punishment for adultery, gambling, drinking alcohol, women who wear tight clothes and men who skip Friday prayers. More than 300 people were caned for such offenses last year. AP

Media murders highlight deadly threats in Mexico

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EXICO CITY—A journalist is shot dead as she pu l ls out of her garage in the morning with her young son. Gunmen ambush another journalist while he lazes in a car-wash hammock. An awardwinning reporter is hauled out of his vehicle and gunned down a block from his office. On Mond ay Jav ier Va ldez bec a me t he si x t h jou r n a l i st s l a i n i n Me x ico s i nce e a rl y March, a dead ly spree unusua l even in a countr y that ranks behind Sy r ia and A fghanistan for such murders. T here’s no ev idence direct ly link ing the k il lings to each other, but collectively they are a gr im sig na l that lawlessness and impunit y continue to threaten the lives and work of jour na lists across much of the countr y. The killings come at a time when overall homicides rose 29 percent in the first three months of the year from the same period in 2016; high-stakes state elections and a presidential vote next year have been bitterly contested; corruption scandals are regular news; and a decade-old militarized offensive against brutal drug cartels shows no sign of being won. “Mexico has become more dangerous in general over the past year, and that is affecting the way there is more fighting,” Mexican security analyst Alejandro Hope said. “Tensions are running really high in the underworld, so I think that people that are covering this are getting themselves into much riskier situations.” Va l d e z w r o t e t h e “ M a l a Yerba” column for Riodoce, the publication he helped found, in which he told stories without using real names. His last entr y was titled “El Licenciado”, a possible allusion to a Sinaloa cartel

boss who used that nickname. Valdez also reported on organized crime, incidents involving state security forces, such as a police attack on three women, and alleged corruption during the term of Sinaloa state’s previous governor, Eduardo Buscaglia, an international organized crime expert and consultant, said Valdez and Riodoce had interviewed him many times and probed “links between politics, society and criminal groups and that entails...enormous risk”. The chief prosecutor of Sinaloa sa id he was u nawa re of a ny threats against the journalist. But the national newspaper La Jornada, to which Valdez contributed, said he had recently received threats “of a different caliber” that caused him and his wife to be concerned. Valdez traveled to Mexico City to consult with colleagues, who recommended he leave the country. The spate of six killings began on March 2 with the murder of Cecilio Pineda, an independent journalist in the southern state of Guerrero. The rest came in quick succession: March 19 in Veracruz. Four days later in Chihuahua. April 14 in Baja California Sur. May 2 in Morelos. There were plenty of other non-fatal attacks during the same span, including the wounding of a media executive in Jalisco the same day that Valdez was slain; an assault and robbery of seven traveling reporters by a mob of 100 gunmen in Guerrero over the weekend; and an attempt on a reporter’s life in Baja California Sur that killed his bodyguard. One commona lit y r unning through all the states where the killings have taken place is the presence of both organized crime and endemic corruption, a particularly toxic combination. AP

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Israel was identified as the source of the sensitive intelligence President Donald j. Trump gave to Russian officials

Calls for Trump inquiry escalate W

ASHINGTON—Members of Congress from both parties escalated calls on Tuesday for former Federal Bureau of Investigation (FBI) Director James B. Comey to appear before them, after reports that President Donald J. Trump had asked him to drop an investigation into Michael T. Flynn, the former national security adviser. Democrats were aggressive in seeking new hearings and an independent investigation. Republicans, on the whole, reserved judgment until they learned more or heard from Comey himself. “The country is being tested in unprecedented ways,” said Sen. Chuck Schumer, Democrat-New York, the minority leader. The news of Comey’s memo— on the same day Israel was identified as the source of the sensitive intelligence Trump gave to Russian officials—added another layer of chaos and uncertainty on Capitol Hill, diverting attention from debates on health care and tax policy and increasing many lawmakers’ reservations about the president. Some Republicans put the burden on Comey to produce proof. Rep. Jason Chaffetz, RepublicanUtah, the chairman of the House Oversight Committee, vowed to obtain a memo Comey wrote in which he said Trump had made his request on the Flynn investigation during a meeting in February. “I need to see it sooner rather than later,” Chaffetz, who recently announced he was leaving Congress, said on Twitter. “I have my subpoena pen ready.”

A spokesman for the House speaker, Paul D. Ryan, called it “appropriate” for Chaffetz’s committee to demand the memo. Lawmakers in both parties were largely confounded by the latest controversy, one in a series of crises that have hobbled their ability to move forward with Trump’s policy priorities. As the day began, the Senate majority leader, Sen. Mitch McConnell, who had been mostly silent on the president’s increasing troubles concerning Russia, carefully pleaded with the administration to stop impeding the Republican agenda. But even as he tried to change the conversation to health care, the focus remained firmly on the president and Russia. “I think we could do with a little less drama from the White House on a lot of things so that we can focus on our agenda,” McConnell said on Bloomberg Television on Tuesday morning, reflecting the Republican majority’s increasing frustration over the White House’s mishaps. Later, when asked during a news conference on Capitol Hill whether he was concerned about Trump’s competence in handling

In this photo released by the Russian Foreign Ministry, Foreign Minister Sergei Lavrov of Russia (left) is with President Donald J. Trump during a meeting in the Oval office of the White House in Washington on May 10. Trump boasted about highly classified intelligence in a meeting with Lavrov, and the Russian ambassador, during the visit last week, providing details that could expose the source of the information and the manner in which it was collected, a current and a former American government official said on May 15. Russian Foreign Ministry/The New York Times

If it is, in fact, true that this information was shared with the Russian ambassador, it seems to me it’d be OK to be shared with US senators.” —Tillis intelligence information, McConnell paused for several beats before responding, “No.” By evening, the drama swelled with the news of Comey’s memo, and Democrats demanded an even more aggressive investigation of Trump. “You’re watching an obstruction of justice investigation developing in real time,”

said Sen. Richard Blumenthal of Connecticut, a member of the Senate Judiciary Committee. “If there were ever any question about the need for an independent special prosecutor, this report is the nail on the argument.” Rep. Adam B. Schiff of California, the top Democrat on the House Intelligence Committee,

S. Korea’s new leader to reform family-owned conglomerates

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EOUL, South Korea—South Korea’s new president is taking on a challenge that has defied all of his predecessors: reforming the big familycontrolled conglomerates that dominate the economy. W hile jobs are a top priority, strong public pressure following a corruption scandal that toppled his predecessor, Park Geun-hye, leaves him with little choice about going after the chaebol, as the family conglomerates are called. “As I promised during my campaign, I will take care of the employment issue first. At the same time, I will take the initiative in reforming chaebol,” Moon Jae-in said in his inauguration address on Wednesday. “Under the Moon Jae-in administration, the word meaning cozy relations between political and business circles will completely disappear,” he proclaimed. Moon knows firsthand that the job won’t be easy. He was a top aide in the administration of the late President Roh Moo-hyun’s, whose efforts to rein in the chaebol yielded disappointing results. Cong lomer ates, l i k e Sa m sung and Hy undai, play a huge role in South Korea and their founding families have complicated stock ow nership str uctures, nonprofit char it y foundations and other arrangements to preser ve their wea lth and manager ia l inf luence. Many view close, murky ties between politicians, bureaucrats and those big businesses as the reason corruption has thrived.

The public mood following former President Park’s impeachment over alleged influence peddling and bribery may give Moon a bit of a honeymoon. “I’d like to hope that this government will be different,” said Kim Seong-jin, a lawyer at People’s Solidarity for Participatory Democracy, one of the largest civic groups in South Korea. “This is an essential task that the citizens are watching closely.” Moon has promised to empower South Korea’s fair-trade reg u l ator to impose ha rsher punishments on companies that meddle in regulatory investigations and decisions. To do so, he must drum up support from other parties. Passage of needed revisions of commercial and fair-trade l aws wou ld requ ire 60 more votes than the 120 out of 299 legislative seats controlled by his Democratic Party. Luckily for Moon, apart from the conser vative Liberty Party, three other smaller opposition parties backed chaebol reforms during the recent presidential campaign. His presidency comes at a time of growing recognition that South Korea needs to end t he chaebol-centered g row t h model that has been in place since the era of former President Park ’s father, who ruled from 1961 to 1979. Park Chung-hee, an army general-turned-dictator, gave cheap loans and trade protection to chaebols while quashing unionized labor. That enabled the conglomerates, and South Korea itself, to

recover quickly from the devastation of the 1950 to 1953 Korean War. That top-down business model, largely driven by exports, is wearing thin as job creation and increases in wages slow. For decades, businesses and capital investment were prioritized at the expense of workers’ rights and social welfare. Now consumer spending is suffering as families feel the pinch of job insecurity and lagging incomes. South Koreans, who in the past may have viewed the chaebol as national champions, now increasingly consider them elites who are hogging wealth while crushing small businesses and stifling innovation. There are limits to how far reforms can go. Most of the country’s smalland medium-sized companies depend on business from the chaebol, as suppliers or subcontractors, though they complain of not getting fair prices for their work. And jobs at chaebol like Samsung and Hyundai are considered the most desirable, given the uncertainties and poorer conditions of employ ment in most smaller companies. Sti l l, instances of chaebol founding families using elaborate schemes, often unethical and sometimes illegal, to preserve or build their wealth and managerial influence are adding to public outrage. Millions of South Koreans took to the streets for months in peaceful but vehement demonstrations to protest over allegations that Park, the former president, was colluding with a close associate

and allowing her to meddle in government affairs. Park was impeached and arrested in March, and faces a trial later this month that could send her to prison for life if she is convicted. Meanwhile, Samsung Vice Chairman and chaebol heir Lee Jae-yong is facing trial, charged with using Samsung funds to bribe Park and her friend. One other way to push for reforms is to have the powerful national pension fund, the biggest investor in many chaebols with $530 billion in assets, advocate more forcefully on behalf of minority shareholder and public interests. So far, the pension fund has refrained from voicing criticism over corporate mismanagement. Former pension fund executives are among those facing trial in the current corruption scandal. The tendency of chaebol companies and other institutions to favor founding family interests over those of ordinary shareholders in publicly listed companies is so ingrained that many global investors say they routinely impose a “Korea Discount” on investments in South Korea. “This election proves there is strong public support for a better system of governance,” said Kwon Young Sun, an economist at Nomura Securities. “If corporate governance of Korea Inc. were to improve meaningfully with the passage of the economic democracy reform bills and adoption of a Stewardship Code by the National Pension Service, we would become more bullish on the market.” AP

said the report solidified the need for Comey to brief lawmakers again. He said they also wanted to see his notes. “Enough is enough,” Schiff told reporters. “Congress needs to get to the bottom of this.” Sen. John McCain, RepublicanArizona, said at a dinner honoring him on Tuesday night that the scandals surrounding the Trump administration were “Watergatesize”, according to a person who was in the room and confirmed the quote on the condition of anonymity. But most Republicans, who hold majorities in the House and Senate, were far more tempered in their assessments. Sen. Lindsey Graham of South Carolina suggested that he was withholding judgment, saying he was “not going to opine about a memo”. “If the FBI director feels the president did something inappropriate, he should come in and tell us,” Graham told reporters. Asked if he was any more inclined now to embrace a special prosecutor to investigate ties between Trump’s associates and Russia, Graham said no. “Nobody’s showing me a crime anywhere,” he said. Rep. K. Michael Conaway, Republican-Texas, who is leading the House investigation into Russian meddling in the 2016 election, declined to comment on Tuesday as members of the committee filed out of a closed-door meeting with Mike Pompeo, the Central Intelligence Agency director. Other Republicans said they had not had time to process the news of Comey’s memo. “I don’t know the facts,” said Sen. John Cornyn of Texas, the second-most powerful Senate Republican, who took himself out of contention on Tuesday to be Comey’s replacement. In an interview on CNN, Sen. Angus King, the

Maine independent who typically votes with Democrats, was asked whether the revelation of the Comey memo had made impeachment proceedings more likely. “Reluctantly, I have to say yes,” he said. Some Republ ic a ns seemed inclined to defend Tr ump and to question any news repor t that sug gested executive impropr iet y. A fter a lengthy defense of the president, Sen. Jim R isch of Idaho tur ned to an A ssociated Press repor ter who appeared unconv inced. “Get that look off your face,” Risch said, grinning. “Be happy! Come on. He’s not so bad.” Republican lawmakers who represent swing districts were more inclined to be critical of the president. “Once again, we are faced with inexplicable stories coming from the White House that are highly troubling,” said Rep. Barbara Comstock of Virginia, who is up for reelection next year in a highly competitive district. “We need to have immediate classified briefings on what occurred at this meeting so that Congress can at least know as much as Russian leaders and know the impact on our national security, our allies, and our men and women protecting our country,” she said in a statement. The often-shifting narrative coming out of the White House has made it nearly impossible for lawmakers to get a grasp of what has happened and how to respond, or to weigh the potential damage to their party. “In order for me to judge the appropriateness or not, I have to have context,” Sen. Thom Tillis, Republican-North Carolina, said. “If it is, in fact, true that this information was shared with the Russian ambassador, it seems to me it’d be OK to be shared with US senators.” New York Times News Servicew

US, Europe discuss new laptop ban on flights

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RUSSELS—US and European officials will discuss on Wednesday plans to broaden a US ban on in-flight laptops and tablets to include planes from Europe. The move would create logistical chaos on the world’s busiest corridor of air travel—as many as 65 million people a year travel between Europe and North American on over 400 daily flights, many of them business travelers who rely on their electronics to work during the flight. The ban would dwarf in size the current one, which was put in place in March and affects about 50 flights per day from 10 cities, mostly in the Middle East. Airlines have said it is merely a matter of time before the ban is put in place, but the prospect has alarmed officials in the European Union, who want to know more about any new threats and the disruption such a move would create. There is also the question of the relative safety of keeping in the cargo area a large number of electronics with lithium batteries, which have been known to catch fire. Exper ts say a bomb in the cabin would be easier to make and require less explosive force than one in the cargo hold. Baggage in cargo usually goes through a more sophisticated screening process than carry-on bags. Experts say that the original ban focused on certain countries because their equipment to screen carry-on bags is not as effective as machines in the US. Officials from the US Department of Homeland Security met last week with highranking executives of the three leading US airlines—American, Delta and United—and the industry’s leading US trade group to discuss expanding the laptop policy to flights arriving from Europe. The airlines still hope to have a say in how the policy is put into effect at airports to minimize inconvenience to passengers. The initial ban on passengers bringing large electronics devices into the cabin hit hardest at Middle Eastern airlines.

Emirates, the Middle East’s largest airline, this month cited the ban on electronics as one of the reasons for an 80-percent drop in profits last year. It said the ban had a direct impact on demand for air travel into the US and it faced rising costs from introducing complimentary laptop loans to some passengers. Meanwhile, Australia is considering following the US and Britain in banning laptops from inbound airliner cabins, the prime minister said, but declined to explain whether the move was related to an Islamic State (IS) group threat that President Donald J. Trump discussed with Russian diplomats. Prime Minister Malcolm Turnbull revealed on Tuesday that his government was “looking...very closely” at the bans on laptops and tablets on flights from some Middle Eastern countries announced by the US and Britain in March. Questioned by reporters on Wednesday, Turnbull refused to discuss the intelligence upon which a laptop ban was being considered or its source. “As prime minister protecting our national security and the national interest, I have to be circumspect and discreet on matters of national security,”Turnbull said. “My job is not to feed speculative commentary in the media.” Australia would “work very closely with our partners around the world” in constantly reviewing aviation security, he said. Trump has been criticized for divulging classified information to Russians about the laptop threat posed by the IS group. Turnbull declined to say whether that information had also been shared with Australia, which, along the US, Britain, Canada and New Zealand, makes up the “Five Eyes” intelligence-sharing network. “I can assure you the relationship between Australia and the United States in terms of intelligence sharing is as close as it possibly could be and we have no concerns about any other country...having privileged access to information we don’t have,” Turnbull told reporters. AP

A10 Thursday, May 18, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

When govt tries to make private firms look bad

I

t’s unfortunate that we have regulators who make bad decisions that may crush the life out of private enterprise. Worse, we have unelected bureaucrats who try to make private companies look bad to enhance their own image. Such was the fate that befell the Manila Electric Co. (Meralco), which was accused by the Energy Regulatory Commission (ERC) of “overcharging” its customers.

A press release uploaded on the ERC web site on May 3 said: “Consumers will save approximately P0.7541 per kilowatt-hour per month on their electricity bills until July 2017, after the ERC directed Meralco to immediately refund P6.9 billion in overcharges collected over the past three years.” Interestingly, the press release, which quoted suspended ERC Chairman Jose Vicente B. Salazar as saying the refund “should be reflected in the May 2017 billing so Meralco customers will feel its effects right away,” has been taken down from the ERC web site. It could be recalled that President Duterte suspended Salazar on May 2 due to corruption allegations. The ERC chief is facing a number of administrative charges, such as dishonesty, gross neglect of duty, grave misconduct, gross insubordination, violation of the Government Procurement Reform Act, Anti-Graft and Corrupt Practices Act and the Code of Conduct and Ethical Standards for Public Officials and Employees. “I just suspended Salazar because of corruption. I will eventually remove him,” the President said. The controversial ERC press release made it appear that Salazar was the one who “discovered” Meralco’s alleged “overcharging” when, in fact, he got his facts from Meralco’s petition to the ERC. Meralco has asked the regulatory body to approve its petition and issue the corresponding order allowing the utility company to refund consumers of around P6.9 billion. Commissioner Josefina Asirit said they are “trying to get to the bottom of it because the Commission did not authorize anyone to issue a press release or upload anything on the ERC web site”. Insisting there had been no overcharging, Meralco described the P6.9 billion as a “technical correction” filed by the firm itself to reflect adjustments on actual revenues over the past three years. What this means is that Meralco’s rates are determined by customers’ usage patterns in the previous month, which are sometimes different from actual demand, the reason the utility files the correction every three years for the ERC’s review. Under its charter, the ERC allows distribution utilities to file their respective consolidated applications every three years for the confirmation of pass-through charges, which is why Meralco has asked the regulatory body for authority to refund consumers nearly P7 billion worth of over-recoveries incurred from 2014 to 2016. It wants to refund generation charges, transmission charges and system loss rates, among others. Fortunately, all is well that ends well. The ERC has confirmed the previous decision on Meralco’s application, which was issued prior to the suspension of Salazar. In other words, the ERC has given the green light for the refund. Meralco said the refund will be carried over to the June billing cycle, which is good news for Meralco consumers. Since 2005

BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua

All quiet on the Western front John Mangun

OUTSIDE THE BOX

A

fter reading the newspapers and listening to local radio, we should probably discuss how China is going to turn the world into another Venezuela with the new “drug addiction” of cheap money and worthless projects. But not today. Instead, starting on Monday, go to National Book Store, shake the dust out of your wallet and actually buy a copy of Philippines Graphic magazine to read my opinion that you should “Hide Your Wallet; The Chinese are Coming!” The magazine’s editor in chief is my good friend—and, unlike me, a real journalist and writer—Joel Pablo Salud. In the meantime, there are so many other exciting things going on in the world. We have potential impeachment complaints here and the US against the sitting president. France’s new president—who campaigned on a platform that all European Union countries should only buy European-made products—is having that idea shutdown by Germany after only a few days in office.

Suddenly, the experts are concerned that North Korea’s missile and nuclear weapons program is further along than anyone guessed. And scientists in Italy are saying that super volcano Campi Felegri is ready to erupt, which would kill thousands and affect millions of people, perhaps even shutting down air travel on the continent for months. Did I forget to mention the biggest computer malware attack in history? Against this background, you might think that we would see more unusual movement in the stock markets and we have. Just not the way you might expect. The Philippine Stock Exchange Composite Index (PSEi) spent 12 weeks from the beginning of 2017, locked in a narrow weekly closing

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range between 7,146 and 7,417. That is a small 3.8-percent move from bottom to top. However, for six of those weeks there was virtually no percentage gain or loss week to week. That kind of movement is not supposed to happen. There should always be enough of an imbalance of buyers and sellers during a long period to cause prices to change. Individual stocks did move more that the PSEi. But stocks that were up big one week were down the next and vice versa for the index to stay asleep, if not in a coma. But we all know that the local stock market is at the far, far end of the financial universe and what happens here means little if anything to most everyone. But now it gets interesting.

The Fourth Industrial Revolution

Founder Publisher

In the meantime, there are so many exciting things going on in the world. We have potential impeachment complaints here and the US against the sitting president. France’s new president— who campaigned on a platform that all European Union countries should only buy European-made products—is having that idea shutdown by Germany after only a few days in office.

Part Two

Technological determinism

T

HORSTEIN Veblen, the Norwegian-American economist and sociologist who became famous for his witty criticism of capitalism and for his fine idea of “conspicuous consumption,” coined the term “technological determinism”, a reductionist theory that assumes that technology in any given society defines its nature. Sociologists Dr. David Croteau and Dr. William Hoynes, in their best-selling book Experience Sociology (McGraw-Hill, 2012), defined technological determinism as an approach that identifies technology, or technological advances, as the central causal element in processes of social change. The theory aligns with Klaus Schwab’s observation in his book, The Fourth Industrial Revolution (4IR), because the three previous industrial revolutions liberated humans from manual power, shifting toward mass production and digital capabilities became widely accessible

to every human. Schwab, however, says the 4IR is fundamentally different in the sense that it is characterized by a range of new technologies that are synthesizing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human. “One of the features of the 4IR is it doesn’t change what we are doing, it changes us,” Schwab said during a World Economic Forum summit. According to him, the 4IR has the potential to raise global income levels and improve the quality of life

Brynjolfsson and McAfee observed that in addition to being a key economic concern, inequality represents the greatest societal concern associated with the 4IR. The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the innovators, shareholders and investors—which explains the rising gap in wealth between those dependent on capital versus labor.

for populations around the world. “To date, those who have gained the most from it have been consumers able to afford and access the digital world; technology has made possible new products and services that increase the efficiency and pleasure of our personal lives. Mundane daily life events, such as calling a cab, booking flights, buying products, making payments, listening to music, watching a film, or playing a game are now being done remotely,” Schwab added. He also envisioned that technological innovation eventually leads into a “supply-side miracle”, with long-term gains in efficiency and productivity. Transportation and communication costs will also drop, logistics and global supply

The Standard and Poor’s 500 index (S&P 500) is a broad measure of the top issues on the New York Stock Exchange. As of a couple of days ago, the S&P 500 has done something highly unusual and nearly historic. It has gone through the longest period of moving less than 0.5 percent on a daily close basis since 1969. Considering that billions of dollars move through that market, this is really astounding. Every day for my subscribers, I update them with the movements of the Western stock markets and the same pattern of movement—although not as tight as the S&P 500— has been occurring recently with the Euro Stoxx 50 index, the leading blue-chip index for the euro zone. What this all means is difficult to explain. The easy answer is that this is all a “consolidation” period when investors are experiencing indecision about the future. That may be true but it rarely happens to an index for so long. Based on what the PSEi did, it all looks like the calm before the storm. The 21st century continues to be lived by the motto “Never a dull moment”. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth. But the rapid technological developments are not without pitfalls. Two Massachusetts Institute of Technology faculty members and economists argued that the revolution could yield greater inequality, particularly in its potential to disrupt labor markets. Erik Brynjolfsson and Andrew McAfee have pointed out that the latest revolution could yield greater inequality, particularly in its potential to disrupt labor markets. As automation substitutes for labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor. They also said it is also possible that the displacement of workers by technology will, in aggregate, result in a net increase in safe and rewarding jobs. Brynjolfsson and McAfee argued that at this point we cannot foresee which scenario is likely to emerge. History suggests that the outcome is likely to be some combination of the two. However, they are convinced of one thing—that in the future, talent, more than capital, will represent the critical factor of production. This will give rise to a job market increasingly See “Arillo,” A11

Opinion BusinessMirror

opinion@businessmirror.com.ph

Espenilla on ‘Forbes’s PHL You in me and me in you debt worries: ‘Simplistic’ Msgr. Sabino A. Vengco Jr. Val A. Villanueva

Businesswise

I

S debt really a bad thing? Not necessarily, if it is well-managed. Most Philippine corporations rely on borrowings to finance their operations, and would probably be in debt for as long as they are in business.

The key here is for these firms to maintain their net worth at a healthy level. Their assets should be larger than what they owe. If they can service their accounts and keep them current, then there shouldn’t be any problem. Countries also need to borrow to keep their economies moving. The US, the world’s largest economy, has an outstanding debt of $19.9 trillion; and by the end of fiscal year 2017, the gross US federal government debt is estimated to reach $20.1 trillion. China’s debt has grown $4.5 trillion in 2016. Its debt is 250 percent of its GDP, even higher than the US. And yet, these two giants are not that worried about how they’d go about servicing their debt payments because of their robust and dynamic economies. Just recently, in a Forbes magazine article, Anders Corr of Corr Analytics warned that President Duterte’s P8.2-trillion infrastructure program may lead the Philippines to precipitously fall into bottomless debt. Duterte’s “build, build and build” mantra on infrastructure projects may put the country into “virtual debt bondage”. The so-called Dutertenomics is fuelled by expensive loans from China. Corr said this “will put the Philippines into virtual debt bondage if allowed to proceed.” Corr said the money which will fund Dutertenomics will bring our total national government debt to $290 billion (P14.4 trillion). Incoming Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla in a Viber message to BusinessWise says this is a rather simplistic analysis. He explains that Corr makes the big assumption that debt growth will not lead to faster economic growth. Espenilla says problems will only arise if what we borrow will fund fruitless economic activities. He also says Corr’s analysis doesn’t factor in the government’s efforts to raise taxes to finance infrastructure spending. Espenilla’s statement underscores the administration’s serious drive to ramp up infrastructure spending to revitalize the Philippine economy. I can only hope that Duterte’s economic team will more than make up for the various lapses this administration makes on a regular basis. It wasn’t long ago when the Philippines spiralled down to an economic ignominy created by debts incurred by the late dictator Ferdinand E. Marcos. Between 1970 and 1972, before he declared martial law, the Philippine peso plunged by an astounding 40 percent (and a total of more than 80 percent before he was ousted in 1986). During his turbulent tenure, we hit our highest debt-GDP ratio of more than 90 percent. Governments that came after him continue to honor dubious debts his regime acquired. Marcos’s debts will continue to haunt Filipino taxpayers for the next 19 years. If we go by the country’s credit timetable, we will have to pay for the foreign debts Marcos incurred until 2025 or a good 39 years after he was forced out of office by the “People Power” peaceful revolution. If Marcos had the disreputable Bataan Nuclear Plant with its $1.8 billion in interest repayments alone since 1986, and $110.8 million more to go, former President Gloria Macapagal-Arroyo had the equally notorious North Rail Transit project. I also wish that we do not go the

Countries also need to borrow to keep their economies moving. The US, the world’s largest economy, has an outstanding debt of $19.9 trillion; and by the end of fiscal year 2017, the gross US federal government debt is estimated to reach $20.1 trillion. China’s debt has grown $4.5 trillion in 2016. Its debt is 250 percent of its GDP, even higher than the US. way of Sri Lanka, which is still being tortured by debt problems. After more than a decade of taking out huge loans (mostly from China) to erect large-scale infrastructure— most of which hasn’t yet given it suitable returns—Sri Lanka is now struggling to service its debts, and seems to be hopelessly considering ways to get out of the rut.

Alálaong Bagá

G

oing deeper into the meaning of our life of faith in Jesus Christ, we are next led to reflect that our communion with Jesus is based on a Trinitarian interrelationship that must be lived by us and manifested in our fidelity to his commandments (John 14:15-21).

Keep my commandments Our gospel text is bracketed by two parallel declarations Jesus made to His disciples: “If you love Me, you will keep My commandments” and “Whoever has My commandments and observes them is the one who loves Me.” In order not to be an empty word, love demands to be translated into deed, into actions pleasing to the beloved. Faithfulness to the wishes of Jesus is the measure of our love for Him. Keeping His commands as the expression of communion with Him is repeated six times in the Last Discourse (John 14:15.21.23; 15:10.12.17).

For comments and suggestions, e-mail me at mvala.v@gmail.com

In the Holy Spirit

TO observe his commandments amid our human frailty and to follow His footsteps so that we can come with Him to the Father, will clearly be

We all live in a watershed Dr. Rene E. Ofreneo

It’s a go for environmental cleaner

Remember the private firm that has been contracted to clean Zambales of unwanted nickel laterites, but was ordered suspended instead by erstwhile Environment Secretary Regina Paz L. Lopez? Now that she and her ilk have been ejected from the Department of Environment and Natural Resources, Westchinamin Corp. has been given the green light to clean Zambales of abandoned nickel ores. If left uncollected and scattered in various mining sites, these nickel ores could prove highly dangerous to human and environmental wellbeing. Cesar Estrada, chief of the provincial Environment and Natural Resources Office, formally informed Mary Grace de Leon, Westchinamin president, that the firm could continue the removal and transport of those nickel-ore stockpiles to a safe area at Shangfil Port at Barangay Bolitoc in the town of Santa Cruz, Zambales. Acting on Zambales Gov. Amor Deloso’s instruction, Estrada told de Leon in his April 26, 2017, letter that the Westchinamin has been given the go signal to proceed with the cleaning operations, after complying with all the requirements in the company’s agreement with the provincial government. Small mining operators abandoned the nickel ores when their mining contracts had expired. This prompted the provincial government to enter into a memorandum of agreement with Westchinamin for the latter to collect, haul and dispose the abandoned nickel ores in exchange for the cleanup and rehabilitation of the mining areas. The Sangguniang Panlalawigan approved the agreement on December 8, 2016, but Lopez stepped in and temporarily halted the operations of the environmental cleaner. In a statement, Deloso said the provincial government has jurisdiction over those nickel ores since they were abandoned, not by big mining firms, but by small operators whose operations were covered by mining permits issued by the provincial government. Deloso argued that the provincial government’s move to confiscate the abandoned nickel ores is premised on the “urgency of a clear and present danger of another impending disaster”, even as he cited that the combination of nickel ores with mudflows could lead to environmental destruction.

Jesus is “the way and the truth and the life” (14:6). Communion with Him is our salvation; He is our life and our rule of life. In fellowship with Jesus we shall, at any given time and in every situation, know what is for us fitting and proper and to God pleasing. His commandments reveal His diwa, His interiority, and keeping them makes us His kadiwa, His kindred in the Spirit.

LABOREM EXERCENS Continued from A1

W

E wish the good secretary success in his work as the nation’s chief guardian of the environment. At the same time, this column hopes that the Department of Environment and Natural Resources (DENR) shall adopt the policy guidelines proposed in 2012 by Dr. Esteban Godilano, a geo-hazard mapping expert, and Christian Monsod, an advocate of comprehensive “total economic valuation” of minerals, in the approval process for mining permits. They wrote: “Mining should only be allowed when four minimum conditions are met: [1] the environmental, social and economic costs are accounted for in evaluating mining projects; [2] the country gets a full and fair share of the value of the extracted resources, [3] the institutional capabilities of the government to evaluate and regulate mining activities are put in place; and [4] since mining uses up nonrenewable natural capital, the money from mining are specifically used to create new capital, such as more developed human resources and infrastructure, particularly in the rural areas.” In relation to the fourth guideline, we argue that no ore should be exported in raw form. More jobs and value should be realized from each ounce of mineral extracted from the earth through more and higher forms of industrial processing. This is the philosophy behind Indonesia’s ban on the export of raw mineral ores. As to the first guideline, it should be pointed out that no mining can be conducted without disturbing the land, water and air surrounding the site. Mining also affects nonmineral resources, such as freshwater, timber and wildlife. Unregulated, mining may cause public-health problems, displacement and uprooting of indigenous people, and even violence and insurgency. Mining can also be

Arillo. . .

continued from A10

segregated into “low-skill/low-pay” and “high-skill/high-pay” segments, which, in turn, will lead to an increase in social tensions. Brynjolfsson and McAfee observed that in addition to being a key economic concern, inequality represents the greatest societal concern associated with the 4IR. The largest beneficiaries of innovation tend to be the providers of intellectual and physical capital—the

a time bomb for disasters and accidents that may happen due to the cutting of trees and the large-scale excavation of soil and rocks. All these have public costs, which are borne mainly by the larger society, by the poor in particular. Exhibit One: the economy of Marinduque up to now is unable to recover from the 1996 Marcopper mines tailing accident, which caused a massive poisoning of the Boac River and the Calancan Bay. The big problem for the DENR is that most mines in the Philippines are in watersheds located in mountainous areas, the natural catch basins or collectors of water that flows to the river systems. As defined by Presidential Decree 705 (Revised Forestry Code), “A watershed is the land drained by a stream or fixed body of water and its tributaries”. In short, watersheds are critical sources of water for irrigation, home consumption, industrial usage and so on. Irresponsible mining kills watersheds, causes landslides and soil erosion, and subverts life in various communities. Denuded watersheds are unable to stop massive flooding or prevent drought, both of which are aggravated by the El Niño-La Niña climate-change swings. This is why greater care and rigor are needed in the approval of any mining permit. This is why Godilano argues the innovators, shareholders and investors—which explains the rising gap in wealth between those dependent on capital versus labor. According to them, technology is, therefore, one of the main reasons why incomes have stagnated, or even decreased, for a majority of the population in high-income countries: the demand for highly skilled workers has increased while the demand for workers with less education and lower skills has decreased. The result is a job market with a strong demand at the high and low ends, but a hollowing out of the middle.

Thursday, May 18, 2017 A11

is at work in us. In this Spirit of truth in us we realize that Jesus is in the Father and that we are in Jesus and that He is in us.

not just on our own. We need someone to help us, some we can call upon anytime—another Paraclete. The first Paraclete we have been given by God is Jesus himself as our Advocate with the Father (1 John 2:1). Now in His return to the Father, He is asking the Father to give us another one who will be with us always. Already our life of faith on earth involves the Most Holy Trinity: We are destined to have a place in the “Father’s house” in eternity; the Son is the one to take us home with Him; the Holy Spirit, sent by the Father and requested by the Son, is the Paraclete to assist us to remain in Jesus. The Spirit is the Spirit of truth, who will teach us everything and remind us of all that Jesus told us (14:26). In the power of this Spirit we are one with Jesus sharing in His life and keeping His commandments. Jesus does not leave us orphans; He comes to dwell in us in the sending of the Spirit. Jesus in glory remains with us in the Holy Spirit. That is how we see Him: because He lives and we live in His Spirit as we grow in virtues keeping His commandments in ongoing conversion. The Spirit that the world does not see we do see and know because it remains with us and

Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on dwIZ 882, or by audio-streaming on www.dwiz882.com.

need for full or comprehensive watershed mapping and conduct of socioeconomic impact studies based on a holistic “ridge-to rivers-to reef” framework before each mining project is approved. According to Godilano, we all live in a watershed, whose upstream portion collects the water that is released in the mid-stream and ends downward to the downstream lowland and coastal areas. Based on this perspective, the whole country then can be mapped into different watersheds. The importance of a holistic geohazard and socioeconomic mapping of a watershed is shown by the country’s mounting sad experiences everytime there is massive flooding in key regions of the country. For example, mining and quarrying in the upper Antipolo-Rodriguez watershed contribute heavily to the flooding in lower Marikina-Metro Manila area during heavy downpours and aggravate water shortages in all areas during dry seasons. Geo-hazard and socioeconomic mapping also shows why there is a need for policy coordination among different stakeholders in contiguous areas regardless of political boundaries. For example, flooding in Cagayan de Oro and Misamis Oriental can happen in a sunny day simply because there are heavy rains in neighboring but upland Bukidnon province. There are other important issues that should be studied by the DENR in relation to the watersheds, especially in areas declared as “protected areas”. These include the following: One, the continuing elite invasion and exploitation of watershed areas not only for mining and quarrying business purposes but also for resort development and “land banking”, even if most of the lands involved are still classified as inalienable “public lands” or “forestlands”. Some powerful politicians even have fighting cocks fenced in guarded premises. Two, there is population explosion in some watershed areas with the unabated arrival of poor and jobless lowlanders (some coming from

other islands, for example, Visayans migrating to the Marikina watershed area) to become swidden farmers or agricultural workers. In the process, the communities of indigenous people, who are protected by the 1997 Indigenous People’s Rights Act law, are often further marginalized in places they call as their ancestral domain. Three, poverty is widespread in watershed areas because decent jobs and livelihoods are scarce. The National Greening Program (NGP), which provides financial assistance to a registered community of forest keepers, is a good program on paper; however, the manner of NGP implementation and the system of selecting qualified partner nongovernmental organizations in some areas need improvement. Four, the different government agencies, such as the departments of Environment and Natural Resources, Agriculture, Interior and Local Government and Education, have their respective programs for community development. There is a need for some program coordination and unified policy on how to promote community development in a coherent manner. For example, can local government units grant licenses to resort developers sitting on public forestlands? Operations-wise, what is the distinction between “strict” protected area and “multiuse” protected area? Five, various laws, such as the 1992 National Integrated Protected Areas and the 1998 Fisheries Code, all talk about people/community participation in sustainable development. But how is this operationalized in terms of policy formulation at the barangay, town and provincial levels? Is the Protected Area Management Board the appropriate institution for this? In conclusion, there is a clear case for a comprehensive and integrated forest, mineral, land, water and other resource use/exploitation/ development planning based on the requirements of balanced, equitable and sustainable development for all. After all, we all live in a watershed. Aren’t we?

Opportunities

manufacturing, services, public health and education will still exist. “The main question is,” she said, “what will be the future of work? How will we define work? How will we share the wealth?” Microsoft CEO Satya Nadella says digital technology has the ability to change outcomes, to empower people all over the world and create equitable growth.

General Motors Plant Engineering Director Todd Clippard said technology is not a “cure-all for everything”, and that there are operations that people can do much better. “But for the right applications, robotics is a huge improvement in the process,” he added. The 5 million projected job losses by 2020 due to technological advancements is serious but according to Sharan Burrow, general secretary of International Trade Union Confederation, construction,

Alálaong bagá, Jesus is manifest in us in the life we are graced to live in the power of the Holy Spirit, the life of love for Jesus, life of observing His commandments. The Holy Spirit becomes manifest and visible in what it does in every Christian, in the whole Church as the Spiritanimated community, and even in the world as the playing field for the outpouring of the gifts of the Spirit. We see a supreme instance of this vivifying power of the Spirit in our continuing communion with Jesus in the Eucharist. In the Trinity reaching out to us human beings: the Father sends the Holy Spirit upon our bread and wine to transform them into the Body and Blood of Jesus Christ for our salvation. The loving celebration of the Eucharist is in observance of the command of Jesus who becomes present as our life in the Spirit to the glory of the Father.

(To be continued) To reach the writer, e-mail cecilio.arillo@ gmail.com.

2nd Front Page BusinessMirror

A12 Thursday, May 18, 2017

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Number of online-gaming operators in PHL may double this year–Pagcor By Rea Cu

T

@ReaCuBM

he number of online-gaming operators in the country could balloon to as much as 86 in the coming months, raising the confidence of the Philippine Amusement and Gaming Corp. (Pagcor) that it would hit its P65billion revenue target for the year.

Jose S. Tria Jr., Pagcor special assistant to the gaming regulator chairman and CEO, said they are now reviewing the applications for Philippine Offshore Gaming Operator (Pogo) of 44 companies that want to provide services in

the country. This is on top of the 42 applications already approved by Pagcor. “Forty-two applications are already approved, there are still 44 pending. But we sent each one with letters informing them of

the deadline to apply,” Tria told financial reporters at the sidelines of the G2E Asia gaming forum in Macau, China, on Tuesday night. In March Pagcor Chairman and CEO Andrea D. Domingo, pointed out the issuance of the Pogo licenses will aid Pagcor in hitting its P60-billion to P65-billion revenue target for this year. She added that, at that, time, 78 applications were pending at her desk. Tria added that before fully opening the market for online gaming in the country, the audit system that helps track and monitor the operations of gaming operators must be fully implemented, and the procurement of equipment must already be completed. “Actually, there is a bit of confusion in the auditing part, before when Ceza [Cagayan Economic Zone Author it y] hand les the monitoring, the agency itself

I do agree that the Philippines looks like the market to look for. I think the gambling appetite in Asia is still humongous, as long as you can build casinos, integrated resorts, entertainment around that, good food, I think that’s an easy bargain.”—Morgan Stanley

didn’t know who are operating and under whom,” he added. He further pointed out that not all applicants will be given licenses, since strict observation of the submission of the requirements will be implemented. “What we are looking at is, that they should have complete requirements. And the service providers should be clearly identified,” he said. In earlier reports, Pagcor had

collected over P1 billion from licensing and processing fees, when it issued 35 offshore gaming licenses in 2016. From each licensee, application and processing fees amount to $50,000 for e-casino, and $40,000 for sports betting, charged by the Philippine gaming regulator. Upon approval of the license, a fee of $200,000 for e-casino and $150,000 for sports betting is added. Tr ia said an estimated P3

billion in taxes can be collected through the issuance of the Pogo alone. Pagcor remits to the Bureau of Internal Revenue 5 percent of its earnings from its operations. “More or less P3 billion in taxes in Pogo alone, and that is still limited. But if the operation is already running smoothly, at least around P6 billion a year,” Tria said. Earl ier dur ing t he for um, gaming analysts have expressed their optimism in the growth of the Philippine gaming sector in the coming years, on the back of its strong domestic economy, which contributes to the growth of the gross gaming revenues (GGR) of the sector. According to Grant Govertsen, managing director of Union Gaming Asia, among the markets in Asia, the Philippines is one to look out for due to the strong inflows of funds into the economy. See “online-gaming,” A2

TAIPEI INCLUDES MANILA ON TOP OF PRIORITY LIST FOR ECONOMIC DEALS

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Various commercial rice varieties are on display at a rice retailer in Parañaque City. The Philippine government on Tuesday announced that it has approved the importation of rice to ensure enough supply during the lean months of July to September. NONIE REYES

Palace to Congress: Fast-track NFA charter revision By Jasper Emmanuel Y. Arcalas

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@jearcalas

he National Food Authority Council (NFAC) is asking Congress to fast-track the amendment of the National Food Authority (NFA) charter to remove its trading functions in light of the impending expiration of the quantitative restriction (QR) on rice. Cabinet Secretary Leoncio B. Evasco Jr., who sits as the NFAC’s

chairman, said the food agency should get out of importing rice and to just carry out its regulator y functions. “Actually, the NFA should stop its commercial functions and just focus on being a regulatory agency. The NFA is corruption-prone because of the conflict of interest for having both proprietary and regulatory functions,” Evasco said in a statement. “The Legislature should act fast to amend the NFA charter and finally end the NFA’s monopoly on

rice importation and streamline its functions,” he added. Evasco made the pronouncement after the NFAC said on Tuesday the government will import the staple and has allowed the private sector to bring in imported rice via the minimum access volume (MAV) of the World Trade Organization this year. He noted the private sector will no longer be able to import MAV rice next year once Manila’s waiver on the special treatment on rice

expires on June 30. The Philippine waiver on the special treatment on rice, which was approved by the WTO Council for Trade in Goods, has allowed Manila to implement the QR until this year. Upon the expiration of the waiver, the Philippines should convert its rice QR into a tariff-rate equivalent, allowing the free entry of imports into the country. However, Congress must first amend Republic Act (RA) 8178, or

o west!” is the mantra Taiwanese companies lived by for the best part of three decades, turning China into their biggest trading partner. But with cross-strait relations at their worst in close to a decade, President Tsai Ing-wen is urging firms to turn South. Tsai wants to mitigate reliance on the mainland by bolstering trade with 18 countries in Southeast Asia and South Asia, including Australia and New Zealand, a departure from her predecessor Ma Ying-jeou’s promise of stronger growth through better ties with China. But Taiwan must fur ther strengthen regional relations with other governments if Tsai’s New Southbound policy is to succeed, top trade negotiator John Deng said in an interview in Taipei last week. The minister without portfolio said the main problem is that trade ties with Southeast Asia have often been based on personal relationships rather than formal

government communications. “Other countries have already established themselves in this important region,” he said. “We need to be highly ambitious. Our ties can’t be allowed to disappear if people change positions.” The Southbound policy’s target countries account for 22 percent of exports compared with around 40 percent for China. But while the mainland’s numbers are stagnating, Southeast Asia is increasingly becoming Taiwan’s driver of growth. Total exports rose 13.6 percent from January to April, with exports to Southeast Asia rising 17 percent. The focus on Southeast Asia goes back to Taiwan’s first democratically elected president, Lee Teng-hui, who proposed the first “Go South” policy in the 1990s; his successor Chen Shui-bian continued the push. But when Ma took over in 2008, the focus switched firmly toward better relations and trade with China. See “Taipei,” A2

Continued on A2

Sugar industry seeks 6-yr reprieve from proposed ₧10/L tax on SSBs

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ugar planters and millers belonging to the Sugar Alliance of the Philippines (SAP) are seeking a six-year delay in the implementation of the proposed additional P10 per liter excise tax on sugar-sweetened beverages (SSBs)—part of the revenue-offsetting measures of the tax-reform bill—as it could result in lower sugar production. SAP Spokesman lawyer Emilio Yulo said the additional P10 per

liter excise tax could result in two scenarios for the sugar industry: first, lower demand for sugar due to lower sales of SSB products; and second, lower farm-gate price of the commodity due to absorbed costs by beverage companies. “Assuming there’s a beverage with an existing cost of P30, if it’s passed on that would be P40 [at retail level], then the effect would be there will be lower sales, and lower sales would call for lower

The problem is that there’s no clearcut agricultural policy…does the government want to support the agriculture sector or not?”—Yulo

demand for sugar. Supposing it is absorbed by the beverage corporation, then the effect would be they will now buy sugar at the farm gate at a lesser price level,” Yulo told

reporters in an interview on May 17 in Quezon City. “This is not part of their corporate social responsibility, so the most viable and logical thing to do

is to lower your buying price at the farm gate. Whichever, either of the two scenarios, we will be affected,” Yulo added. Under the proposed comprehensive tax-reform package of the Department of Finance, SSBs include soft drinks, soda, flavored carbonated or noncarbonated beverages, fruit drinks, sports drinks, sweetened tea, coffee drinks and energy drinks, among others. Yulo said they are asking for

a six-year reprieve for the sugar industry should the proposed additional tax on SSB be passed to prepare producers from the effects of such measure. “The government should give us a window of six years and by that time the Sida [Sugar Industry Development Act] will be on its eight year. By that time we can now be imposed of excise tax because there’s no more reason for us not See “Sugar industry,” A2