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n Tuesday, May 22, 2018 Vol. 13 No. 220

Solon prompts Duterte: Brace for $100 oil shock T

By Butch Fernandez & Cai U. Ordinario

@butchfBM

@cuo_bm

HE Duterte administration was prodded on Monday to prepare for a looming “oil shock,” as a solon said global market crude prices may skyrocket to $100 per barrel (bbl) and pump prices were jacked up by local oil companies.

Noting that Filipinos are already “feeling the negative ef-

fects” of rapidly rising global oil prices, Sen. Sherwin T. Gatchalian

“I asked our OIMB [oil industry management bureau] to call for a meeting with the oil companies to discuss the surging oil price and what measures we can adopt to lessen its impact.”–Cusi

said the Duterte administration should prepare ahead “ in the event that crude prices reach the $100-per-barrel threshold in the global market.”

By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

Part One

Then-Tourism Secretary Wanda Corazon T. Teo, chairman of the Tourism Promotions Board, at the launching of the P80-million Buhay Carinderia Redefined project sponsored by the TPB on April 11 at a hotel in Manila. Images from Buhay Carinderia Facebook Page

Also introduced was self-styled celebrity chef Erwann Heusaff, known for his obsession with the favorite Filipino snack taho (soybean curd), who was tasked to document carinderias (street cafés) all over the Philippines and street food for the project. (See, “TPB to bring lowly ‘carinderia’ food to the world,” in the BusinessMirror, April 13, 2018.) Then-Tourism Secretary Wanda

PESO exchange rates n US 52.3200

Corazon T. Teo, who Montano now says introduced him to Legaspi “as she is her friend,” also attended the launch, but surprisingly, didn’t lend her thoughts about the project. She left as soon as the variety performance started.

‘Developing our own culinary campaign?’

Ebron stressed then, it was about time we “develop our own brand,

LAND DISPUTES MAY DELAY MARAWI REHAB EFFORTS

and ownership issues and procurement woes could delay the implementation of projects to rehabilitate Marawi City, according to the National Economic and Development Authority (Neda). In a briefing on Monday, Neda Undersecretary for the Regional Development Office Adoracion M. Navarro told reporters that landownership issues are “particularly difficult” to resolve even in the medium term. Navarro said of the 892 priority programs, projects and activities (PPAs), some 252 will be dedicated to physical infrastructure and 27 will be for housing and settlement. These will likely encounter land ownership issues. “All PPAs that will require land might encounter land conflict issues,” Navarro added. “PPAs for housing, construction for road rehabilitation and then also in ascertaining the beneficiaries of assistance, the proof that they really are claimants to the land [will be affected], so there are difficulties.” The 27 housing PPAs, for example, would entail building 6,400 transitory shelter units and 3,524 permanent housing units for Marawi City residents. Navarro said projects that aim to provide social services, such as building schools destroyed during the Marawi siege, may also be affected by landownership issues. See “Land disputes,” A8

Cesar Montano quits as head of Tourism Promotions Board

Culinary tourism takes a hit as probe unearths how Buhay Carinderia ‘redefined’ TPB approval route

business news source of the year

P25.00 nationwide | 4 sections 20 pages | 7 days a week

See “Solon,” A8

BMReports

“ BE T T ER ve r s ion” of Madrid Fusión Manila. This was how Tourism Promotions Board (TPB) Officer in Charge of the Deputy Chief Operating Office for Marketing and Promotions Maricon B. Ebron described the Buhay Carinderia Redefined project in an interview with the BusinessMirror, a day after it was launched, noontime variety show-style on April 11, amid the posh interiors of the former Army Navy Club, now the Rizal Park Hotel. She underscored how the project would be able to “teach the LGUs [local government units] how to promote their cuisines, the ingredients available in their localities, and teach them how to prepare their food cleanly.” At the launch, speeches by TPB COO Cesar Montano (more than two minutes), and Erlinda Legaspi, president and CEO of Marylindbert International Inc., which owns the exclusive rights and trademark of Buhay Carinderia, were heard, before a jingle reminiscent of political campaigns was played, as dancing boys and girls in sparkly costumes sashayed on an improvised stage.

2016 ejap journalism awards

instead of paying a lot of money for franchising Madrid Fusión in Manila [MFM].” When repeatedly asked how much Buhay Carinderia costs, however, Ebron kept playing coy, yet insisting that “it costs half of the budget of Madrid Fusión Manila.” MFM, a franchise of the popular Madrid gastronomy event, has featured popular Filipino chefs and ingredients side by Continued on A8

CTOR Cesar Montano has resigned as chief operating officer of the Tourism Promotions Board (TPB). The resignation was contained in a letter to President Duterte through Special Assistant to the President Christopher Lawrence “Bong” Go, dated May 22, a copy of which was obtained by the B usiness M irror. In his letter, Montano said, “In faithful adherence to my duty as a public servant, I am respectfully tendering my courtesy resignation [emphasis his] as Chief Operating Officer [COO] of the Tourism Promotions Board [ TPB] effective immediately.” Montano added, “I am truly grateful for the trust and the opportunity you have bestowed upon me to serve our country through the Tourism Promotions Board.” In a text message, Tourism Secretary-designate Bernadette Fatima Romulo Puyat said, "Mr. Montano's resignation is accepted. I would like to consider this matter closed—from my active involvement—but trust that the COA [Commission on Audit] will get to the bottom of this episode." She did not say, however, who would be appointed as officer-in-charge of the TPB. In a text message, Tourism Secretarydesignate Bernadette Fatima Romulo Puyat said, “I would like to consider this matter closed— from my active involvement—but trust that the COA (Commission on Audit) will get to the bottom of this episode.” The resignation came on the heels of Montano’s talk with Duterte last Friday, to explain his side on the controversial P80-million Buhay Carinderia Redefined project that the TPB had sponsored. Despite his explanation, however, Duterte still told him to give

up his post as TPB COO, sources said. Documents obtained by this paper showed the TPB paid Marylindbert International Inc., an event organizing company owned by one Erlinda Legaspi, in three tranches from March to April, even before Buhay Carinderia— a festival celebrating street cafes and street food—had started. The project was sponsored without any apparent proper bidding and evaluation. In fact, the last check, amounting to P35.84 million, was released on April 17 to Marylindbert, or just six days after the project was formally launched in a media event at the grand ballroom of the Rizal Park Hotel (formerly Army Navy Club). All three checks bore the signatures of former Tourism Secretary Wanda Corazon T. Teo and Montano. (See, “Tourism chief orders bidding for all projects,” in the B usinessM irror, May 18, 2018.) In a separate memo to Romulo Puyat dated May 21, Montano suggested the designation of an officer in charge and suggested three people: Maricon B. Ebron, OIC for the Office of the Deputy COO for Marketing and Promotions; Joselito V. Gregorio, OIC, Office of the Deputy COO for Corporate Affairs; or Leah Marie C. Sy, manager, Management Information Systems Department, and attached an office order for the secretary’s signature. Romulo Puyat did not say who the OIC would be. Montano was at the Department of Tourism last Friday afternoon for TPB’s presentation to Romulo Puyat of the agency’s projects for this year. TPB is the marketing arm of the DOT and was among the department’s units that briefed the new tourism chief of their programs.

n japan 0.4717 n UK 70.4646 n HK 6.6655 n CHINA 8.2049 n singapore 38.9866 n australia 39.3446 n EU 61.5963 n SAUDI arabia 13.9512

Ma. Stella F. Arnaldo

Source: BSP (21 May 2018 )

A4 Tuesday, May 22, 2018 • Editor: Vittorio V. Vitug A2

The Nation BusinessMirror

Solon: NSC must convene after China landed bombers within Philippine EEZ By Jovee Marie N. dela Cruz

@joveemarie

senior vice chairman of the House Committee on National Defense and Security on Monday asked the leadership of the lower chamber to act immediately on a resolution seeking to convene the National Security Council (NSC) in the wake of China’s deployment of military weapons within the Philippines’s exclusive economic zone (EEZ).

In House Resolution (HR) 1855, Muntinlupa City Rep. Ruffy Biazon said the NSC should be convened now to address the latest report that China has deployed nuclearcapable bombers on one of the islands in the Spratlys. “I am urging the House of Representatives to give urgent attention to the resolution I filed on May 9, 2018, HR 1855, which calls for the convening of the National Security Council to address the seeming escalation of military presence by China within Philippines’s EEZ,” he said. Biazon said China’s weaponizing of islands within the Philippines’s EEZ and the deployment of military firepower “is a matter of serious national security concern.” “This issue is beyond politics and involves a threat to national territorial integrity and security, and will affect the lives of not just the Filipinos of today but also those of future generations,” he said. The lawmaker said the ability to harness and exploit natural resources within Philippine EEZ by Filipinos is endangered by the aggressive posture of China. “Therefore, it is urgent for the Philippines to adopt a policy and position that will uphold national interest in terms of security, territorial integrity, natural resources and patrimony,” Biazon said. “Such a policy is best crafted with the inputs from those who compose the National Security Council

whose collective wisdom based on experience, expertise and diversity of opinion will ensure a balanced conclusion in favor of Philippine national interest,” he added.

Probe AT the same time, Biazon also filed a resolution calling for a congressional investigation on the reported deployment by China of missiles in the Spratly islands. In HR 1856, Biazon said the committee should conduct an inquiry on this reported military intrusion within the Philippines’s EEZ. “Following reports that China has installed missiles capable of hitting surface-to-surface and surface-toair targets on reclaimed islands in the West Philippine Sea, I have filed a resolution in the House of Representatives calling for the appropriate committee to conduct an inquiry on the matter,” he said. Biazon, citing reports, added China had deployed anti-ship cruise missiles and surface-to-air missile systems on Kagitingan, Zamora and Panganiban reefs in the Spratly archipelago, noting that these capabilities are well within the EEZ and national territory of the Philippines. He added the deployment of military assets clearly has national security implications on the Philippines and should be taken seriously as a threat. “A foreign military presence within our sovereign territory, re-

IN this May 13, 2018, file photo provided by China’s Xinhua News Agency, China’s indigenous aircraft carrier lifts anchor in Dalian in northeast China’s Liaoning province. The Philippines says it is taking “appropriate diplomatic action” to protect its South China Sea territorial claims, after China landed bombers on one of the islands it controls. Li Gang/Xinhua via AP

gardless of physical presence or projected capability to strike, should not be tolerated, especially if its presence is not upon invitation by the Philippines or covered by a mutual agreement or treaty,” he said.

Ineffective For his part, Party-list Rep. Gary C. Alejano of Magdalo said the country’s “secret” diplomacy with China is “ineffective.” “Whatever secret diplomacy the Duterte administration is pursuing, it is clearly not working. In fact, China even stepped up its aggressive actions under Duterte’s foreign policy,” he said. The Duterte administration, through the Department of Foreign Affairs, has been giving us the same rhetoric: “ kukumpirmahin, titignan, at pag-aaralan muna.” While they are insisting that there have been diplomatic actions, the result that we are seeing on the ground is an emboldened China pushing our limits,” Alejano said. According to the lawmaker, the public demands transparency and concrete actions, and “not silence and neglect.” “This is why the more effective approach is through multilateral engagements and open diplomacy and making use of the UN Permanent Court of Arbitration ruling as leverage. There is no need to go to war; as what Duterte has been insisting to the public,” he added.

Step in

Meanwhile, Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna called on the international community to step in and for President Duterte to stop kowtowing to China. Zarate also assailed China’s continued militarization of the West Philippine Sea and called its “increasingly hostile actions of deploying missile launchers, radar systems and now even nuclear-capable H-6K bombers in the Paracels chain of islands as igniting violence and even war or armed confrontation by rival claimants in the contested area.” “President Duterte should stop kowtowing to China because China’s actions are further aggravating the tension in the region. China should stop it. Even though the surface-toair missile launchers, radar systems and H-6K bombers they deployed are in Woody Island, which is part of the Paracels claimed by Vietnam and Taiwan, they have started doing the same in Philippine territory,” Zarate said. According to Zarate, in addition to the international support against China’s provocative acts, “we must also strengthen our own claim and fortify our positions to counter China’s moves.” He also proposed the deployment of more troops to the Kalayaan Group of Islands, the deployment of more Coast Guard ships to the contested areas, and the rehabilitation of the airstrip on Pag-asa Island the soonest possible time.

“As it is China’s expansionist policy based on its 9-dash line theory has been proven without legal, historical and moral basis. Every Filipino here or abroad should defend our territory and exclusive economic zones,” Zarate said. Meanwhile, Malacañang expressed “serious concern” about the reports on the presence of China bombers in South China Sea. Presidential Spokesman Harry L. Roque Jr. said on Monday that the country has no independent verification, but the Palace took note of the reports that came out. “But, nonetheless, we take note of the reports that appeared, and we express our serious concerns anew on its impact on constructive efforts to maintain peace and stability in the region,” he said. Roque also reiterated that Philippines does not consider China a threat to security. “Even if we don’t feel that China is a security threat to us, for as long as there are weapons there, there could be mistakes in the discharge of these weapons and any threat of the use of force in one of the world’s busiest sea lanes, which happens also to be the sea lane where our oil supply passes through and bulk of our exports and imports pass through is a reason for concern to us,” Roque said. He added the government is pursuing diplomatic initiatives to address the situation, noting that they will bring this issue again in the bilateral mechanism that the government has agreed upon with China. “This bilateral mechanism meets twice a year, and I was told that there would be a scheduled meeting for the second quarter, possibly in June, but not yet confirmed. So the matter will be brought up in the bilateral mechanism that we have established on the West Philippine Sea specifically with China,” he said. He also cited the Department of Foreign Affairs’s position that they do not need to announce everything they do publicly. “Obviously, diplomatic communication and relations and negotiations is subject to exception to freedom of information and, likewise, of course, we have always expressed serious concerns, it’s not as if we take it sitting down,” he said. With reports from Bernadette D. Nicolas

Duterte, Cusi inaugurate Cebu oil field commercial production

resident Duterte and Energy Secretary Alfonso G. Cusi graced the ceremonial commencement of the oil and gas production of the Alegria Oilfield in Southern Cebu last Saturday. The Alegria Oil field is currently operated by China International Mining Petroleum Co.

Ltd. (CIMP), with its partners Skywealth Group Holdings Ltd. and Phil-Mal Energy International Inc. in a $8.563-million investment under Service Contract 49. With this development, Cusi urged more investors in the oil and gas industry to develop the country’s energy resources.

“More oil-exploration activities in the country will boost economic activities and generate jobs for more Filipinos,” Cusi said. The energy chief added this milestone is a proud moment for all Filipinos. The Alegria Oil field serves as a major breakthrough in the Philippine oil and gas industry.

The Department of Energy monitors the six exploration wells drilled by CIMP and its partners with its first well in October 2014 until the completion of its sixth well in March 2018. The six exploration wells resulted in the discovery of oil and gas resources with potential commercial quantities of 27.93

million barrels of oil and 9.42 billion cubic feet of gas, respectively. For 2018 CIMP has programmed to drill three additional development wells. The Alegria Oil field covers a total area of 197,000 hectares, with about 42,749 hectares devoted to the production area. Charles R. Pepito

Sotto new Senate President By Butch Fernandez @butchfBM

ajority Leader Vicente C. Sotto III was installed as the new Senate President by unanimous vote on Monday, replacing outgoing Senate President Aquilino L. Pimentel III who is eyeing reelection in the 2019 senatorial polls. Taking the f loor soon after banging the gavel opening on Monday’s plenary session, Pimentel himself nominated Sotto as his successor, paving the way for a smooth leadership transition in the 23-member chamber. In a brief speech, Pimentel acknowledged the support extended by his colleagues during his term as Senate President. “All of them played significant roles in the crafting and passage of landmark legislation that helped improve the lives of our people,” Pimentel said. “I wish my successor, Senator

Sotto, good health and Godspeed, and pledge to help the new leadership pass pro-people legislation consistent with the legislative agenda of the President,” he added. Pimentel said “it has been an honor and privilege to serve the Senate as its president,” a position once held by his father, former Senate President Aquilino Q. Pimentel Jr., who founded the PDP-Laban party that fielded President Duterte in last year’s national elections. At the same time, Pimentel sought to enlist wide support for the party’s goal to shift to federal system under the Duterte administration. “The cause of federalism needs help. Federalism is not only PDPLaban’s advocacy but also my personal one,” he said, vowing to “go around the country, on my personal time, to help explain to the people what federalism is all about and how the country will benefit from it.”

www.businessmirror.com.ph

Proclamation bolsters PHL protected-area management By Jonathan L. Mayuga @jonlmayuga

HE signing of a Presidential Proclamation establishing portions of the Philippine Rise as a marine protected area (MPA) is giving protected-area (PA) management in the Philippines a big boost. An official of the Department of Environment and Natural Resources (DENR) said President Duterte is also expected to enact the Expanded National Integrated Protected Areas (Enipas) bill and sign an executive order (EO) that will put in place a national policy that will ensure a fair and equitable sharing of the benefits derived from Philippine genetic resources in the future. DENR Undersecretary for Climate Change and Mining Concerns Analiza Teh, who is currently in Singapore attending training related to the United Nations Sustainable Development Goals sponsored by the United Nations Development Program (UNDP), told the BusinessMirror the two measures will boost protected-areas management in the Philippines. The UNDP training is for high-level environment officials and is organized for deputy ministers, with 16 countries from Asia, the Middle East, and Central America taking part. Teh acts as head of the Secretariat of the Climate Change Adaptation, Mitigation and Disaster Risk Reduction Cabinet Cluster, which polished the EO on Access-and-Benefit Sharing on Philippine Genetic Resources. “For Enipas, proclaimed Protected Areas will not just be considered as an initial component of Nipas Republic Act [RA] 7586. With the [Enipas] law, it will require an act of Congress before it can be disestablished,” Teh said. Under RA 7586, PAs are “off limits” to destructive development projects, including mining. However, under the Enipas, initial components of a PA like those covered by presidential proclamations, presidential decrees or EOs can easily be disestablished upon the recommendation of the Protected Areas Management Board. A protected area may be disestablished for land conversion or land reclassification. There are 240 protected areas in the Philippines, but only 13 are currently backed by legislative act. The Enipas will increase the number of protected areas covered by the act of Congress by another 94. On the other hand, Teh said the EO on Access-and-Benefit Sharing on Philippine Genetic Resources will define the roles of agencies from Customs, Intellectual Property office, National Museum, Department of Agriculture, National Commission for Indigenous People and DENR to strictly enforce laws on gathering and utilization of genetic resources and the conduct of inventory of these genetic resources. “The benefits will not just be limited to royalty but more encompassing to ensure that we maximize our share,” she said. The final draft of the EO is already with the Office of the President for final review. The Enipas, she said, may have been transmitted by the Philippine Senate to the Office of the President. Meanwhi le, Rep. Josephine Ramirez-Sato of the Lone District of Occidental Mindoro lauded the signing of the proclamation establishing the Philippine Rise MPA. Ramirez-Sato added that the proclamation that puts under strict protection and exclusively for scientific exploration a 50,000-hectare portion of the Philippine Rise, including the 17,000-hectare Benham Bank and another 300,000 hectares as a fisheries management area, underscores the need to strengthen PA management and put in place a national policy ensuring fair and equitable sharing from the benefits derived from research and development and exploitation of Philippine genetic resources.

Economy BusinessMirror

www.businessmirror.com.ph

Editor: Vittorio V. Vitug • Tuesday, May 22, 2018 A3

‘Congress must hasten passage of rice tariff bill’

By Jasper Emmanuel Y. Arcalas

@jearcalas

awmakers should fast-track the approval of a bill that would scrap the quantitative restriction (QR) on rice so that the Philippines could immediately comply with its commitment to the World Trade Organization (WTO). Agriculture Undersecretary Segfredo R. Serrano on Monday again called on the Senate and the House of Representatives to prioritize the passage of the rice tariffication bill. “What we are saying is that the rice tariffication [bill] should be passed as soon as possible. Let’s not mingle it with other issues, such as the reorganization of the NFA [National Food Authority],” Serrano told reporters in an interview at the House of Representatives in Quezon City. “Everyone has agreed that we must tariffy, but that doesn’t mean we have to dissolve the NFA. That’s a different issue,” he added. At the House of Representatives, the rice tariff bill that would scrap the QR on rice is already up for plenary deliberations. This, after the House Committee on Appropriations, chaired by Rep. Karlo Alexei B. Nograles of the First District of Davao City, together with the House Committee on Agriculture and Food, chaired by Party-list Rep. Jose T. Panganiban Jr. of Anac-IP, endorsed in February for plenary approval the unnumbered substitute bill, which seeks to replace the rice QR with tariffs. The Senate Committee on Agriculture and Food, chaired by Sen. Cynthia A. Villar, is yet to release its version of the rice tariff bill after a series of meetings have already been held. After approving their respective versions of the rice tariffication bill, the Senate and the House of Representatives will transmit their bills to a bicameral conference committee to consolidate their versions and to discuss the divergent provisions. The passage of the law allowing the tariffication of rice is included in the

priority bills identified as urgent by the Legislative-Executive Development Advisory Council. It is also one of the priority measures of Congress. A Geneva trade official, who was privy to the proceedings of the WTO Committee on Agriculture meeting in February, said the Philippine delegation had informed WTO member-countries that lawmakers are “fasttracking and prioritizing” the amendment of Republic Act (RA) 8178. RA 8178, or the Agricultural Tariffication Act, had allowed the Philippines to continue imposing rice quotas even after the country’s waiver on the special treatment on rice had lapsed on June 30, 2017. The Philippines is under pressure to convert its QR on rice into ordinary customs duties after its waiver on the special treatment on rice expired last year. The WTO General Council approved the waiver, which allowed Manila to keep its rice QR until June 30, on the condition that the Philippines will subject its rice imports to ordinary custom duties by July 1, 2017. In March last year, the Philippines informed WTO members that it is facing delays in converting the QR because it has not amended RA 8178, which imposed the import caps on rice indefinitely. To avoid possible trade disputes, President Duterte issued an executive order which retained the country’s rice concessions as “a sign of goodwill” to the country’s trade partners while RA 8178 is being amended. However, economists and government officials have noted that retaining the concessions is not a guarantee that trading partners will not file a complaint against the Philippines before the WTO for not converting the QR into tariffs.

House leaders told: Review TRAIN 1 before approving part 2 of tax reform By Jovee Marie N. dela Cruz @joveemarie

lawmaker on Monday asked the leadership of the House of Representatives to first address several issues concerning the initial implementation of the Tax Reform for Acceleration and Inclusion 1 before considering the passage of TRAIN 2. Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna issued the statement as members of the House Committee on Ways and Means, the Department of Finance (DOF) and other stakeholders will meet on Tuesday to start discussing several bills, which aim to reduce corporate-income tax and modernize fiscal incentives. These are part of TRAIN 2, or the second package of the Comprehensive Tax Reform Program of the Duterte administration. Currently, there are four versions of the proposed TRAIN 2 at the lower chamber: House Bill 7458 filed by House Committee on Ways and Means Chairman Dakila Carlo E. Cua of the Second District of Quirino and Deputy Speaker Raneo E. Abu ofthe Lone District of Batangas; HB 7214 filed by Reps. Horacio P. Suansing Jr. of the Second District of Sultan Kudarat and Estrellita B. Suansing of the First District of Nueva Ecija; HB 7364 filed by Party-list Reps. Rodel M. Batocabe of Ako Bicol and Deputy Speaker Sharon S. Garin of Aambis-OWA; and HB 0231 filed by Rep. Eric D. Singson of the Second District of Ilocos Sur. The TRAIN 2 aims to lower corporateincome tax to 25 percent, from 30 percent, and to harmonize fiscal incentives. According to the DOF, TRAIN 2 will help the government fund its “Build, Build, Build” infrastructure program, further improve the country’s sovereign credit ratings, ensure fiscal stability and

attract investments. “ The administration should discontinue its push for TR AIN 2 because of several problems and soaring prices arising from the TR AIN 1. They should stop burdening the people,” Zarate said. In the first few months of the implementation of TRAIN 1, he noted that the prices of basic goods and services, including petroleum products, went up. Citing the “detrimental effects” of the new tax-reform law, Zarate said the lower chamber should act first on several bills and resolutions that seek to review and repeal TRAIN 1. During the hearing of the Congressional Oversight Committee on the comprehensive tax-reform program law, Cua warned the DOF that it will be difficult for the lower chamber to pass another taxreform law being pushed by the Duterte administration if the social benefits included in the initial phase of TRAIN 1 won’t be fully implemented. Cua is referring to implementation of the Pantawid Pasada and other mitigating measures. Under the TRAIN law, the government shall implement the Pantawid Pasada Program or a social assistance project for commuters and public transport, and the jeepneymodernization program to ease the impact of the oil excise tax increases on commuters and the land-transport sector. Besides the Pantawid Pasada, the TRAIN provides for additional unconditional-cash transfers to low-income earners amounting to P2,400 for 2018 and P 3,600 for 2019 and 2020. The DOF said P4.3 billion has been released in the first quarter, which forms part of the total of P25.7 billion allocated for UCTs this year. The law also provides for a Pantawid Kuryente to help small power consumers in missionary electrification areas.

Photo shows NSIC Rc 222, one of the rice varieties developed by the Philippine Rice Research Institute. An official of the Department of Agriculture on Monday urged Congress to hasten the approval of a bill that would replace import caps on rice with tariffs. www.philrice.gov.ph.

Farm-gate price of palay

The average farm-gate price of unmilled rice continued to go up and rose to a 32-month high of P20.96 per kilogram (kg) during the first week of May, according to data from the Philippine Statistics Authority (PSA). Figures from the PSA shows that average

farm-gate price of the staple during the period was 9.05 percent higher than the previous year’s price of P19.22 per kg. PSA data showed that this was the highest average farm-gate price of palay since it reached P20.91 per kg in the third week of September 2015, when rice output was slashed by El Niño. In 2015 rice

production fell by 4.31 percent to 18.14 million metric tons, from 18.96 MMT recorded in 2014. The last time the average farm-gate price of palay breached P21 per kg was in the second week of September, when it reached P21.01 per kg. From May 2 to 8, the PSA said the highest average farm-gate price of paddy was recorded in Nueva Ecija at P25.15 per kg. The lowest was recorded in Romblon and Compostela Valley at P15 per kg. The monitoring report of the PSA also showed that the retail price of well-milled rice rose by 0.21 percent to P43.86 per kg, from P43.77 per kg recorded a week ago. The figure was 5.48 percent higher than the P41.58-per-kg quotation recorded in the same week of 2017. “This week’s average wholesale price of well-milled rice was quoted at P41.14 per kg,” the PSA said. “It fell by 0.05 percent, from previous week’s level of P41.16 per kg. Compared to the same period in the previous year, it went up by 6.91 percent,” the PSA added. The average retail price of regular-milled rice remained at P40.04 per kg, according to the PSA. “At the retail trade, the average price of regular-milled rice at P40.04 per kg inched up by 0.02 percent, from previous week’s level. Similarly, it recorded an increment of 7.29 percent, from a year-ago price level of P37.32 per kg.”

Tuesday, May 22, 2018

The World BusinessMirror

US-China trade truce may be fleeting as tensions linger

he newly declared economic truce between the United States and China will prove temporary if the world’s two largest economies fail to deliver on vague commitments to rebalance trade.

“We’re putting the trade war on hold,” Treasury Secretary Steven Mnuchin said last Sunday. “Right now, we have agreed to put the tariffs on hold while we execute the framework.” President Donald J. Trump had threatened to slap tariffs on up to $150 billion in Chinese imports, while Beijing vowed to respond in kind. For now, Mnuchin’s ceasefire declaration will soothe the nerves of investors worried that the world’s two biggest economies were on the verge of an all-out trade conflict. T he US a nd C h i n a re le a s e d

a joi nt st ate me nt l a st S at u r d ay, a f te r t wo d ay s of me e t i n g s i n Wa sh i n g ton b e t we e n C h i ne s e V ice P re m ie r L iu He a nd senior A mer ica n of f ic i a ls, i nc lud i n g Tr u mp. T he st atement wa s “ l it t le

more than a brief de-escalation of tensions,” said Eswar Prasad, a trade policy professor at Cornell University and former head of the IMF ’s China unit. “ T he f u nd a me nt a l d i f fere nces on trade and other economic issues remain unresolved.” Asian stocks gained on Mond ay as US equit y f utures jumped in t he wa ke of news t hat t he Sino -A mer ican trade war is on hold for now. Treasur y y ields nudged higher, ta k ing t he dol lar w it h t hem.

Issues unresolved

China and the US agreed to “substantially” reduce the US t r ad e d e f ic it i n go o d s w it h China. B e iji n g prom i s e d to “s i g nificantly” increase purchases

We’re putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we execute the framework.”—Mnuchin

of US goods and ser v ices. But there was no dollar figure attached, despite assurances by the W hite House that Beijing would cave to its demand for a $200 -billion annual reduction in the goods shortfall. Tr u m p h a s a n i m p o r t a nt st r ate g ic re a son for re mo v i ng t he t a r i f f t h reat aga i nst C h i n a: he need s B eiji ng ’s co operat ion a s he pre pa res for an histor ic summit w ith Nor th K orea n leader K i m Jong Un i n Si ngapore on Ju ne 12. It’s hard to imagine a peace deal with North Korea without the involvement of China, Kim’s most important political and economic ally.

China rhetoric

Yet if trade talks with China fizzle, the president may soon feel the pressure to clamp down again, especially with midterm congressional elections looming in November. In t hei r ef for t s to save t he par t y’s major ities in the House a nd Sen ate, R e publ ic a ns w i l l lea n h a rd on Tr u mp’s bra nd , wh ic h he bu i lt on prom i ses to he lp t he work i ng c l a ss i n st ates l i ke Oh io a nd Pen ns ylv a n i a , w h e r e Tr u mp ’s f i e r y rhetor ic on C h i n a reson ated w it h voters. “A s t his process continues, t he United States may use a l l of it s lega l tool s to protec t our tec hnolog y t hrough tar if fs, invest ment rest r ict ions a nd e x por t reg u l at ions,” US Trade Representat ive Rober t Light hizer sa id in a statement last Sund ay. “Rea l str uctura l change is necessar y. Not hing less t han t he f uture of tens of mi l lions of A mer ican jobs is at sta ke.” Tr ump remains preoccupied w it h a sing u lar measure—t he US trade def icit—t hat w i l l be d if f icu lt to shr ink in t he shor t ter m. It ’s unc lear how Beijing w i l l r a mp u p b u y i n g o f U S products, even though the onepar t y state exer ts g reater control t ha n most gover nments over t he spend i ng dec isions of companies. Even if China dramatica l ly increases its buy ing of A mer ican goods, t hat wou ldn’t reduce A mer ican consumers’ appetite for impor ts f rom C h i n a . R e p u bl i c a n t a x c ut s a nd s p e nd i n g i nc re a s e s a re set to i njec t f isc a l st i mu lu s into t he US economy t hat w i l l stoke demand for foreign-made products. Economists say it’ ll be tough to reduce the trade imbalance between the two nations w ithout deep reforms that change the way they save and invest. China has show n little inclination toward a sudden opening of its economy, whic h rel ies heav ily on state inter vention and ex ports for growth. It ’s “ d i f f ic u lt to cont e m plate” how the two countries could cut their trade imbalance by $20 0 bi l l ion, sa id V ic tor Shih, a professor at the University of California in San Diego who st ud ies C h i n a’s pol it ics and finance. “Even w ith a drastic rea lloc at ion of C h i nese i mpor t s of energ y, raw materials and air planes in favor of the US, the bilateral trade deficit may reduce by $100 billion,” Shih said. “A $200 billion reduction would mean a drastic reduction in Chinese ex ports to the US and a dramatic restructuring

of the supply chain.” China’s state media put a positive spin on the outcome of the talks, citing an interview with Liu in Washington last Saturday in which he said the two sides “agreed not to launch a trade war and to stop slapping tariffs against each other,” Xinhua News Agency reported. The US will be able to narrow its trade deficit, while China can ensure a steady supply of goods it needs to develop and improve lives, the Global Times wrote in an editorial last Sunday.

Export curbs

I t d o e s n ’t a p p e a r t h e W h i t e House conv inced China to accept e x por t quotas, as Japan d id in t he 1980s when President Rona ld Reagan carr ied out a strateg y of “ m a n a g e d t r a d e .” The US has forced allies, such as South Korea, to accept steel quotas, and it’s putting pressure on others, including the European Union, to do the same for their metals sales. Avoiding similar constraints would be a v ictor y for Chinese President X i Jinping. The US has also made little progress forcing China to respect American intellectual property (IP)—the issue that caused the US to threaten tariffs in the first place. I n M a rc h Tr u mp’s of f ic i a l s conc lude d t h at B e iji n g f lout s US I P r u le s i n a v a r ie t y of ways, inc lud ing by forcing A me r ic a n f i r m s to t r a n s fe r te c h nolo g y. D u r i n g he a r i n g s i n Wa sh i n g ton l a st we e k on t he pro p os e d t a r i f f s, US compa n ie s w a r ne d a g a i n st t he r i s k s of i mp os i n g dut ie s on C h i ne s e i mpor t s. But m a ny a g reed t he US shou ld t a k e b olde r ste ps to sto p C h i n a f rom v iol at i n g I P r i g ht s.

Patent law

L ast weekend ’s joi nt st ate ment sa id on ly t h at bot h sides “at t a c h p a r a mou nt i mp or tance to intel lect ua l-proper t y prote c t ion s,” a nd a g re e d to cooperate more. China will change its laws and regulations in this area, including its patent law, according to the statement. T he statement didn’t mention additiona l US demands, including a halt to subsidies and other government support for the Made in China 2025 plan that targets strategic industries from robotics to newenerg y vehicles. T he re a l so w a s no me nt ion o f C h i n e s e t e l e c o m mu n i c a t ion s m a k e r Z T E Cor p., f ac i n g a de at h s e nte nce a f te r it w a s c ut of f f rom A me r ic a n s up pl ie r s for a l le ge d ly ly i n g to t he Un ite d St ate s go ve r n ment a f ter f lout ing sa nct ions. Trump raised eyebrows last week when he instructed officials to extend a lifeline to the company. “ T he s t at e me nt w a s v e r y short and general, and lacked s pec i f ic s,” s a id L ou i s K u ijs, chief Asia economist at Oxford Economics in Hong Kong and a former International Monetary Fund researcher. “It touched only lightly on China’s technolog y policy and did not refer to its industrial policy, which is highly controversial in the US a nd elsewhere, underscor ing that the broader tension is not resolved.” Bloomberg News

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Thailand growth surges to 5-yr high as exports climb

hailand’s economic growth surged to a five-year high last quarter, beating all economists’ estimates as rebounding farm output added to gains from exports and private consumption. GDP rose 4.8 percent from a year ago, the National Economic and Social Development Board said on Monday. That is the fastest pace since 2013. The median estimate of 18 economists in a Bloomberg survey was 4 percent. GDP rose a seasonally adjusted 2 percent compared with the previous three months, higher than the 1.2-percent median estimate Four years after the military seized power, Thailand’s economy is rebounding with growth sustained by a pick-up in exports and tourism. The central bank last week held its benchmark rate near a record low to help support the economic recovery as businesses are still reluctant to invest. The statistics agency raised its growth forecast for this year to 4.2 percent to 4.7 percent, from 3.6 percent to 4.6 percent. “Higher exports help support the manufac turing sec tor,” Wichayayuth Boonchit, deputy secretary-general of the state planning agency, said in a briefing in Bangkok. Private investment is expected to recover this year, he added. The military government has cut red tape, stepped up efforts to woo foreign-direct investment for industrial modernization and is boosting infrastructure. But big projects have faced some delays and elections expected next year inject uncertainty into the outlook. Thailand’s foreign-reserve buffers and a current-account surplus are helping to shield the nation from volatility as US rates rise. The baht gained 0.1 percent to 32.163 per dollar as of 9:50 a.m. in Bangkok. It earlier touched 32.363, the weakest level since January. It is among the few emerging-market currencies that has gained against the dollar this year. Other GDP details: Exports rose 6 percent from a year earlier; private consumption gained 3.6 percent while government spending rose 1.9 percent. The World Bank has said raising Thailand’s potential growth to a range of above 4 percent to 5 percent remains a challenge. Boosting education and services are critical to raising productivity as the population rapidly ages, it said. Bloomberg News

UAE to allow 100% business ownership to foreign investors

he United Arab Emirates (UAE) plans to allow full foreign ownership in companies and grant long-term visas to some investors and professionals as the second-biggest Gulf economy seeks to attract more investments. The changes were approved by the cabinet and will take effect by the end of this year, state-run WAM news agency reported last Sunday. Changes to ownership rules are a significant departure from the policy of restricting foreign ownership outside free zones. Expatriates seeking to establish businesses outside the zones must seek partnerships, with UAE citizens owning 51 percent in the ventures. Like in most other Persian Gulf states, a majority of the UAE’s population of 9 million consists of expatriate workers and families who are expected to leave once their employment ends. Unable to set roots in the country, many send earnings abroad. In 2017 alone, expatriates remitted 164 billion dirhams ($45 billion), according to WAM. The new rules will offer residenc y of up to 10 years to specialists in medical, scientific, research and technical fields, as well as five -year visas to students and 10-year visas to exceptional students. A relaxing of residency rules follows legislation in neighboring Qatar last August that granted some foreigners the right to remain indefinitely. The decision was taken amid a crisis in relations between Qatar and a bloc of Arab states led by Saudi Arabia. Bloomberg News

A6 Tuesday, May 22, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

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editorial

One death too many

n any kind of workplace there is always the possibility of things going wrong, of accidents happening, but 40 dead workers in 10 years of operation is a dangerous workplace by any measure.

That is the fatality count at the Hanjin shipyard in Subic Bay Freeport in Zambales province, according to the Samahan ng mga Manggagawa sa Hanjin (Samahan). In the latest accident inside the Korean shipbuilder’s facilities on May 12, one worker was killed and three others were injured when they fell off a collapsed platform mounted at the side of a ship under construction. The number of fatalities alone is an indication of probable failure to enforce occupational safety and health standards (OHS) in the shipyard and negligence of duties to protect workers both by the management and government authorities. In a letter written in September 2011, Samahan had already called the government’s attention to the fatal accidents at the shipyard, the largest shipyard in the country and also one of the largest private employers in the Philippines with 30,000 workers. The letter spoke of long queues of workers awaiting treatment from the nurses on duty at the small clinic at the shipyard every day, the unusual number of accidents per month and the growing discontent among the work force about management’s apathy and inability to prevent them. Samahan noted that accidents continued to happen even amid the Department of Labor and Employment’s cultural orientation training and monitoring activities in the shipyard through its Task Force Hanjin. They noted how the labor department had declared Hanjin as “fully compliant” with labor laws and safety standards after said activities. Samahan had written the Hanjin management several letters asking for the strict implementation of OHS like the provision of personal protective equipment, the building of an onsite hospital within the site, the prevention of maltreatment of workers and provision of clean and healthy food for them and the reinstatement of those illegally dismissed supposedly because they were suspected of being union members. The latest accident according to Samahan was “clearly the fault of Hanjin management.” They said accidents happen at the shipyard because the management does not feel responsible for the workers since they are employed through subcontractors. “It saddens us that another worker gave up his life while working on a ship so that the Hanjin management could earn big money. And because the injured workers are employed only by subcontractors, Hanjin may again escape liability from this accident,” Samahan said in a statement posted on social media. “Until all workers at Hanjin are regularized, we cannot prevent accidents like this from recurring.” Our Constitution guarantees the right of workers to work in a safe and healthy environment regardless of the industry they are in or the type of work that they do. There is no use pursuing Charter change if the government cannot even enforce this basic right. This cannot be overemphasized enough in light of the accidents that have been happening at the Hanjin shipyard and the workers whose lives have been cut short as a result of these accidents. While we welcome the gainful employment Hanjin offers to thousands of our workers, the tragic loss of lives at the shipyard is totally unacceptable. The death of one worker is one too many. The shipyard must be kept safe. If Hanjin’s management won’t do it then the labor department and the Subic Bay Metropolitan Authority must make them do so by conducting stricter regular inspections to ensure that the shipyard is complying with all the necessary regulations—and mete out heavy penalties if it is not. The Senate and House Committees on Labor and Employment could also investigate the unusually high incidence of accidents and deaths at the shipyard. Employers, whether local or foreign, must follow the Labor Code and all our country’s laws. A fatality-free year in a workplace is not only ideal nowadays but also very possible. Various industries and workplaces all over the world have shown that advances in health and safety standards, together with greater regulatory oversight and the systematic inculcation of a safety culture among workers through awareness, education and training can substantially reduce the risk of injury and fatality. But while safety is a collective responsibility and involves the cooperation of everybody from the highest levels of management right down to the workers, the tone and culture of safety must be set by leadership, by the owners themselves. In this, the Hanjin shipyard has been found severely wanting.

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Consistently win the game John Mangun

OUTSIDE THE BOX

f teams in professional sports played their games like many in the stock market do, we would have basketball games ending with scores of 236 to 234 or 7 to 1.

Remember that investing in the stock market is a game in that you must have a playing strategy. It does not matter if you buy a particular issue because you like its trading symbol just like “birthday numbers” for the lotto or use a complex computer program that cost thousands. It is still a strategy. But, realistically, the game is always changing. The particular skill set and style of legendary Philippine basketball player Carlos Loyzaga may not be successful in 2018. You read about those computer matchups of famous boxers in history but anyone that follows the game knows it is all nonsense. Would Manny Pacquiao be able to beat the world Welterweight cham-

pion of 1948—Sugar Ray Robinson —if Robison had trained with the same nutritional and sports-medicine techniques that Pacquiao has available? Stock market investors look to the knowledge and experience of “legends” for their strategies that come from a time when order execution took minutes rather than seconds. Certainly the basic rules are about the same just like in boxing and basketball. But winning the game—any game—means being able to adapt to current conditions and daily situations. After first providing this information to my subscribers, I publically shared my current Philippine Stock Exchange trading strategy:

1. Count back 60 days. 2. Check the stock price then and now. 3. If the price is nearly the same or higher, buy. 4. If the price is lower and below support from two months ago, sell. Of course, I am flattered that some people might think that this strategy came from a scroll written in an ancient language and found in a cave high on a mountain in Tibet. But my strategy did not. Further, if these ideas work in five, 10 or 100 years from now, it will be a coincidence or maybe a miracle. My current strategy is based only on the conditions that exist today. Those conditions in no particular order of significance are: low daily average trading volume, the blue-chip index stuck in a narrow trading range in a heavy congestion area; and the index holding above a strong support level. If any one of those changes, then the trading strategy will also change. That is how you consistently win the game. There are, however, some constants about the stock market game that you must understand. Know first that you are a “speculator.” An investor is simply someone who puts

money into a financial vehicle with the expectation of making a profit. A lotto ticket buyer is also an “investor.” You are a speculator, in that you are forming a theory that at some time in the future someone else will buy your shares at a higher price. You do not have a firm idea why that may happen. You only have a theory like corporate developments, increased earnings, or even that someone manipulates the price higher. Understand also that losing money can kill you. Missing an opportunity means nothing. Most stock market players focus only on the “profit target” and never on the “cut loss” price. Don’t ever tell me at what price you are going to take a profit; tell me at what price you are going to get out when—not if—it goes against you. The most critical idea to remember to make consistent profits in the stock market is this: When you think or know you have it all figured out, take all your money out, put it in the bank, and take a vacation. 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.

There’s an Arab Plan B for containing Iran

By Hussein Ibish | Bloomberg View

resident Donald J. Trump’s withdrawal from the Iran nuclear deal didn’t draw much international applause, but three United States allies in the Middle East—Israel, Saudi Arabia and the United Arab Emirates (UAE)—warmly welcomed the move. Israel had long said that the deal didn’t do enough to prevent Iran from becoming a nuclear power, and Gulf Arab countries believed it gave Iran cover for an intensified campaign of destabilizing the Arab world. And they have plenty of ideas when it comes to drawing up a Plan B for a US-led containment campaign against Iran. Saudi Arabia and the UAE never shared President Barack Obama’s conviction that engagement and sanctions relief could moderate Iran’s revolutionary brashness, regional meddling and support for sectarian extremists. So they’re pleased by Trump’s rhetorical attacks and reimposed sanctions against the Iranian regime, and they want the US to foreclose any efforts by European countries that remain signatories to the nuclear deal to find a way to let their companies keep doing business with Iranian institutions. However, Iran’s expansion as a regional power largely took place before the nuclear deal was signed, and the comprehensive international sanctions that existed in the years leading up to the agreement did not

deter Tehran’s support for extremist groups in Arab countries like Iraq, Syria, Lebanon, Bahrain and Yemen. So the Gulf states don’t expect sanctions alone to do the trick. They hope that with Islamic State crushed in Iraq and Syria, Washington will now lead a coordinated regional strategy to cut Iran’s power down to size. Among other things, they want limited and focused military action to reverse some of the gains Iran has made since the US invasion of Iraq in 2003. Indeed, they’ve already taken on the Iranian-backed Houthi rebels in Yemen, as well as the local al-Qaeda affiliate. They may also hope to play a role in confronting Iran’s lawless behavior in the waters of the Gulf itself. They are looking for Washington to take the lead in confronting Iran in Iraq, but there, too, Saudi Arabia has shown it is willing to play a diplomatic, political and financial role. Perhaps the most strategically vital theater in any such campaign would be Syria, which is far from the Gulf countries. There, they hope that Israel will enforce its own red lines on Iranian conduct and make life difficult for the Hezbollah militants in

Syria and possibly even in their home base of Lebanon. They would urge the US to prevent Iran from taking advantage of the collapse of Islamic State in western Iraq and eastern Syria in order to create a secured military corridor running from Iran to Lebanon and the Mediterranean. Such a strategic upheaval, if secured and consolidated, would ensure that Iran emerges as a regional superpower. Gulf Arab countries also want to work with the United States to persuade Turkey and Russia that their interests in Syria are not served by an empowered and aggressive Iran. Otherwise, Russia could prove a major obstacle to reducing Iran’s influence in Syria and getting Hezbollah to go back to Lebanon. Finally, while the Gulf countries don’t want an all-out war with Iran, there are signs of Arab and American encouragement of uprisings by Iranian ethnic minorities, such as Baluchis, Arabs and Kurds. The goal isn’t regime change, partly because that’s not considered a serious possibility at the moment. What they want, instead, is a sustained containment campaign to pressure Iran to change its behavior and ambitions and constrain its ability to destabilize neighbors and spread influence. It’s a big task, and probably bigger than many Gulf Arab leaders realize. After decades of US leadership in the region, these countries grew used to,

and benefited from, a US-enforced regional order. But now, especially after Iraq and Afghanistan, Americans across the political spectrum have an advanced case of Middle East war fatigue. Trump’s “America First” campaign didn’t signal much enthusiasm for the kind of interventionist foreign policy that these Gulf allies are hoping for. But if the US wants to combat terrorism and confront Iran, as the administration insists it does, Trump’s idea of withdrawing the more than 2,000 US forces in Syria is a nonstarter. The Gulf countries aren’t asking for a repetition of the 2003 adventure in Iraq, which they didn’t support or encourage. What they want is a multifront effort to roll back Iran’s influence by defanging its proxies, supporting its enemies and insurgents and choking off its economy. Only Washington, they believe, can do that. The idea is especially to weaken Iran’s Revolutionary Guards and its clients around the region. Containing Iran will take time, effort and troops and will not be painless. But it needn’t and shouldn’t be a madcap adventure like the campaign that began in 2003 to remake Iraq in an American image. Instead, as Russia has demonstrated in Syria, even in the Middle East it’s possible to secure limited goals with limited means, especially if allies work together. That’s what Saudi Arabia and the UAE are hoping is in the works for a Plan B regarding Iran.

Opinion BusinessMirror

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A stab in the back Quo warranto explained of Philippine democracy Cecilio T. Arillo

database

Ernesto M. Hilario

ABOUT TOWN

he recent ouster of Chief Justice Maria Lourdes A. Sereno by eight members of the Supreme Court (SC), six of whom should have inhibited themselves from the quo warranto proceedings but chose to act as witness, prosecutor, judge and virtual executioner all rolled into one out of seemingly personal spite, is an act of treachery that should not go unredressed. Not surprisingly, the sneak attack on the system of checks and balances crucial to a functional democracy has triggered popular outrage, with even groups of lawyers and deans of law schools deploring what they believe is an outright travesty of the Constitution and the rule of law in this country. Now, 14 senators have already signed a draft resolution “respectfully” urging the High Tribunal to review its decision against Sereno. We commend the senators who signed the resolution. They are Senate President Aquilino L. Pimentel III, Senate Minority Leader Franklin M. Drilon, Senators Antonio F. Trillanes, Risa Hontiveros-Baraquel, Paolo Benigno A. Aquino IV, Francis N. Pangilinan and Leila M. de Lima, all from the minority bloc, and majority Sens. Sherwin T. Gatchalian, Juan Edgardo M. Angara, Grace Poe, Francis G. Escudero, Emmanuel Joel J. Villanueva, Ralph G. Recto, and Loren B. Legarda. They are helping put Philippine democracy back on track. We agree with the resolution that “the Supreme Court’s decision to grant the quo warranto petition sets a dangerous precedent that transgresses the exclusive powers of the legislative branch to initiate, try and decide all cases of impeachment.” We likewise concur with the senators that “the decision of the Supreme Court to allow an extra-constitutional means to remove a Supreme Court justice blatantly usurps the constitutional power of the Senate to remove an impeachable official from office.” We understand that Sereno will soon file a motion for reconsideration that will spell out her counterarguments, and refute the allegation that she showed lack of integrity when she failed to file her Statements of Assets, Liabilities and Net Worth (SALNs) during her term as a University of the Philippines (UP) professor. According former Solicitor General and UP law Prof. Florin Hilbay, who was our main guest at the Saturday News Forum@University Hotel, the Senate should consider asking for a rehearing of the SC decision on the quo warranto petition against Sereno as the Constitution vests it with the sole power to convene as an impeachment court. At the same time, he cautioned against “demonizing” the SC justices

who voted to oust Sereno, as the case is not yet finished, and this prevents a rational discussion of the law and the Constitution. The 8-6 vote on the Sereno case, he noted, is very close, and a reversal of the decision cannot be dismissed outright particularly if Sereno can prove the earlier contention of her legal team that she had been able to retrieve the missing SALNs when she was still a UP professor. Hilbay lamented that the Judicial and Bar Council (JBC), the entity that approved the application of Sereno for chief justice and submitted her name to President Benigno S. Aquino III, was not given the chance to present its side during the hearing. The Senate was not even required to comment, he pointed out.

Scraping the bottom of the barrel

The Senate has been reorganized, with Vicente C. Sotto III taking over as Senate President after Pimentel relinquished the post to the former comedian and longtime TV varietyshow host. Sotto had said words to the effect of: “Who am I to refuse?” We take that to mean that Sotto feels that he richly deserves the lofty position—which would put him in third place in the line of succession to the presidency—having sat in the Senate for as long as we can remember because the electorate put him there. But it’s one thing to have made an impact on Philippine lawmaking and another to occupy a Senate seat without any perceptible agenda, simply coasting along and agreeing with whatever those in power want him to do. But, of course, we owe him one for authoring the bill mandating the compulsory use of seatbelts in moving vehicles. That would have been a truly novel and revolutionary idea— but in the era of horse-and-buggy. Sotto, it appears to me, has become too big for his britches, and really believes that he is now in the league of past illustrious senators like Claro M. Recto, Lorenzo Tañada, Jose W. Diokno and Jovito Salonga, all of whom displayed high statesmanship, superior intellect and genuine love of country. How low can the Senate go? As low as it can get with Sotto at the helm, we’re afraid.

E-mail: ernhil@yahoo.com.

N granting the petition for quo warranto against the respondent chief justice, the Supreme Court in its en banc decision on May 11 sustained the argument of Solicitor General Jose C. Calida, representing the Republic of the Philippines, “that quo warranto is available as a remedy even as against impeachable officers.”

The High Court, in its 153page decision, declared: “WHEREFORE, the Petition for Quo Warranto is GRANTED. Respondent Maria Lourdes P.A. Sereno is found DISQUALIFIED from and is hereby adjudged GUILT Y of UNLAWFULLY HOLDING and EXERCISING the OFFICE OF THE CHIEF JUSTICE. Accordingly, Respondent Sereno is OUSTED and EXCLUDED therefrom.” Because Sereno and her backers and other supporters may have turned her case into a propaganda hyperbole, the Supreme Court ordered her “to show cause within 10 days from receipt hereof why she should not be sanctioned for violating the Code of Professional Responsibility and the Code of Judicial Conduct for transgressing the sub Judice rule and for casting aspersions and ill motives to the members of the Supreme Court.” In justifying its petition, Calida explained that a quo warranto is different from the impeachment proceedings because the writ of quo warranto was sought to question the validity of her appointment, while the impeachment complaint accused

her of committing culpable violation of the Constitution and betrayal of public trust while in office. The Republic sought to oust the respondent from her position as Chief Justice on the ground that she failed to show that she is a person of proven integrity, which is an indispensable qualification for membership in the Judiciary under Section 7(3), Article VIII, of the Constitution. According to the decision, “because respondent failed to fulfill the Judicial and Bar Council requirement [JBC] of filing the complete Statements of Assets, Liabilities and Net Worth, her integrity remains unproven. The Republic posits that the JBC’s ostensible nomination of respondent does not extinguish the fact that the latter failed to comply with the SALN requirement as the filing thereof remains to be a constitutional and statutory requirement.” “In sum, the Republic contended that respondent’s failure to submit her SALNs as required by the JBC disqualified her, at the outset, from being a candidate for the position of chief justice. Lacking her SALNs, respondent has not proven her integrity, which is a requirement under

Bloomberg View

epublicans knew the hurdles they were facing when they looked ahead to the 2018 midterms. Off-year elections are usually arrayed against the party in power, and the party’s leaders anticipated that Donald J. Trump would be a problem in swing districts. They thought these hurdles would be offset, however, by their positions on health care, an issue they’ve dominated since 2010, and by the tax cuts they enacted. It’s not working out. T he ta x cuts, which Trump signed five months ago, are losing support. Each of the last seven national polls, according to Real Clear Politics, show more Americans disapprove than approve of the Republicans’ self-styled tax-reform measure. The average

negative margin is seven points. Obamacare, an albatross for Democrats during the past four elections, is more popular since the Republicans tried to sabotage it. The burning issue of high drug prices won’t help. Instead of cracking down on the pharmaceutical industry, as he promised to do during the 2016 campaign, Trump backtracked and instead proposed modest measures cheered on by the industry. The Kaiser Health Tracking Poll found that Obamacare, after years of poor ratings, went into favorable territory a year ago. Most voters don’t want the law repealed, and huge majorities oppose any cuts in Medicare or Medicaid. After failing to replace the Affordable Care Act, Trump and congressional Republicans have tried to gut it, failing to deliver on promised fixes. This year, the administration sharply

the Constitution. The Republic thus concluded that, since respondent is ineligible for the position of Chief Justice for lack of proven integrity, she has no right to hold office and may therefore be ousted via quo warranto,” the decision said. Invoking the verba legis principle (“the letter of the law”) in statutory construction, the Republic claimed that Section 2, Article XI, of the Constitution does not expressly prohibit resort to other means to remove impeachable officers in position. “Contrary to respondent’s claim that this Court has no disciplinary authority over its incumbent members, the Republic cited Section 13 of A.M. No.10-4-20-SC, which created a permanent Committee on Ethics and Ethical Standards, tasked to investigate complaints involving graft and corruption and ethical violations against members of the Supreme Court. The Republic points out that such Ethics Committee conducted the investigation in A.M. No. 107-17-SC and A.M. No. 09-2-19-SC,” the decision said. In support of its claim that the petition is not time-barred, the Republic explained that “the State has a continuous interest in ensuring that those who partake of its sovereign powers are qualified, arguing that the one-year period provided under Section 11 of Rule 66 merely applies to individuals who are claiming rights to a public office, and not to the State. To consider the instant petition as time-barred is to force the State to spend its resources in favor of an unqualified person.” Further, the Republic claimed that, even if it be assumed that the one-year period applies against the State, it cannot be deemed to have been notified of respondent’s failure

to file her SALNs. It argued that it has no statutory obligation to monitor compliance of government employees other than its own. It alleged that SALNs are not published; hence it has no feasible way of taking cognizance of respondent’s failure to file SALN. It was found that the respondent is ineligible to hold the chief justice of the Supreme Court position for lack of integrity on account of her failure to file a substantial number of SALNs and, also, her failure to submit the required SALNs to the JBC during her application for the position. The decision said: “Again, one of the Constitutional duties of a public officer is to submit a declaration under oath of his or her assets, liabilities and net worth upon assumption of office and as often thereafter as may be required by law. When the Constitution and the law exact obedience, public officers must comply and not offer excuses. “When a public officer is unable or unwilling to comply, he or she must not assume office in the first place, or if already holding one, he or she must vacate that public office because it is the correct and honorable thing to do. “A public officer who ignores, trivializes or disrespects Constitutional and legal provisions, as well as the canons of ethical standards, forfeits his or her right to hold and continue in that office. “The position of the chief justice of the Supreme Court is declared vacant, and the Judicial and Bar Council is directed to commence the application and nomination process. “This decision is immediately executory without need of further action from the Court.” To reach the writer, e-mail cecilio.arillo@ gmail.com.

On South China Sea: Let us help our President MAIL

“China Lands Bombers on SCS Isles” was one of the headlines that greeted us last Saturday. These landings took place in a reclaimed feature in the Paracel Islands, which is within our neighborhood, bringing full militarization closer and working itself with certainty into our own backyard. Following our earlier suggestions on what we may consider doing to advance our lawful position in the West Philippine Sea, we were again asked what else could be done. As a reminder, the Philippine Constitution mandates our President to defend what is lawfully ours. Our government should also be mindful that, as early as 2016, a Pulse Asia survey indicated that more than eight in 10 Filipinos took the position that we should

assert our rights as awarded by the arbitral tribunal.

We must revisit our foreign policy

Since an early decision was made by the incumbent government to shelve the arbitral outcome, not only did we lose opportunities to advance our position but we also found ourselves being thrown into reverse gear, thus allowing ourselves to be fully disadvantaged. That said, is it timely for us to take stock of our situation? Should we be more helpful to our government as a proud people of a sovereign democratic nation? Would it make a difference if we all speak loudly, clearly and with one voice in promoting our national security? For obvious reasons, we must do so. Our government needs to listen to its people. Our northern neighbor needs to listen to the Filipino people. And finally, all our traditional partners and friends—who are waiting for a united voice—need to hear from us. As we speak, to begin with, nearly all Filipinos will agree that our foreign policy should be revisited. Let us say so. Is it high time for our government to assert our rightful position by utilizing the experience and diplomatic expertise of our DFA? If we believe this, let us say so. Is it, moreover, high time for our government to assert our rightful

Republican strengths turn out to be weaknesses By Albert R. Hunt

Tuesday, May 22, 2018 A7

cut back public information about enrolling in the health-care exchanges, yet almost 12 million Americans still signed up. Premiums are increasing sharply. It will be tough for Republican candidates in competitive districts to blame Obamacare, as they did in previous elections. Instead, by repealing the individual mandate and other actions, the Republicans can be blamed for causing some of the increases in premiums. They are learning the Colin Powell Pottery Barn rule: “You break it, you own it.” The biggest issue may be spiraling drug prices. A Senate report this year found that the costs for the most commonly used drugs have risen 10 times more than the general inflation rate. By retreating on a plan to let Medicare negotiate drug prices, Trump handed Democrats a campaign issue.

The one lifeline for Republicans may be that left-wing Democrats are pushing a government-run single-payer plan. Republicans are on comfortable ground attacking that, getting off the defensive. If health care is pretty much a loser for them, Republicans still hope they can successfully argue that the tax cuts have created the economic boom. The party and supportive interest groups are spending a ton of money plugging the virtues of the plan and assailing Democrats who voted against it. While the average middle-class family will get about a $75-a-month tax cut—more than the “crumbs” Nancy Pelosi, the House Democratic leader, described—the plan, is above all, a giveaway to corporate America and the wealthiest taxpayers. The largesse hasn’t been shared. Since the tax cut was enacted, the economy has averaged

position by relying on the skill, courage and patriotism of our Armed Forces of the Philippines (AFP) who are capable of developing a credible minimum defense posture against any bully or aggressor, whoever that might be? If we believe this, let us say so. As we had previously said, we are opposed to war—as we should be. But if threatened by the use of force, we should be ready to inflict, at the very least, a bloody nose on any attacker who is out to harm us. For example, it is my understanding that this capacity, which may be delivered by Bramos Missiles, may be acquired by our AFP from India and would be a good starting point. Should we then undertake to stand more firmly in defending what is ours, thereby upholding the future security of all our people? If we believe this, let us say so. With the President’s thoughtful leadership and with the coordinated execution by our Foreign and Defense Secretary Alan Peter S. Cayetano and Secretary Delfin N. Lorenzana, respectively, we can still do so.

Filipinos must take a united and vocal stand

and assertive in defending what is ours. Acting Chief Justice Antonio T. Carpio, a learned and patriotic advocate, believes that a diplomatic protest should be urgently filed and that we should take our assertive and lawful stand to the doorsteps of our northern neighbor’s embassy. I fully agree with the aforementioned suggestions and trust that many others will share the same sentiment. The President believes, however, that those of us who endeavor to speak in the spirit of being helpful are not prepared to sacrifice ourselves. It truly behooves us then to ask our leadership to have more confidence in our people. To support our President, to secure our nation and to ensure the future of all Filipinos, it must be believed that, indeed, there are those of us who are prepared to make the supreme sacrifice for our country, especially when called upon. Finally, all of us want to be helpful; all of us must be helpful. Let us therefore, respectfully convey to our President that we eagerly await his inspirational leadership by doing what is right.

What else can we do? Solita Monsod suggests that all of us take a few minutes to write to our president. I humbly suggest that we all ask him to be more proactive

Albert del Rosario Chairman of ADR Institute Former Secretary of Foreign Affairs and Philippine Ambassador to the United States

almost 200,000 additional jobs a month; that’s barely up from former President Barack Obama’s last year. Wages remain stagnant. Howard Gleckman, a senior fellow at the Tax Policy Center, notes, “There’s little evidence that firms are passing the tax cuts on to workers in the form of higher wages or new hires.” Some Republicans like Florida Sen. Marco Rubio acknowledged this before being pressured to pull back. More and more anomalies and crazy contradictions are emerging about the carelessly written bill. Michael Graetz, a Columbia law-school professor and leading expert on tax policy, cites the provision that seems to allow contractors but not employees to deduct business expenses: “Whether my dog’s walker is an employee or an independent contractor may depend on whether I tell her specifically what

time and where to walk my dog and who supplies the pooper scooper or doggie bags.” This gives fodder to Democratic candidates who charge, correctly, that the measure is a huge budget-buster, creates glaring new inequities and loopholes and overwhelmingly favors the wealthy. Rather than just opposing tax cuts, a number of Democrats want to give more cuts to middle-class workers and take them from the affluent. The Republicans’ biggest canard is their contention that this partisan sop to the rich is analogous to a bipartisan, revenue-neutral measure in 1986 that sharply lowered tax rates by closing loopholes for special interests. Both are tax reform, the Republicans claim. That’s like saying both Warren Buffett and Bernie Madoff are investors. We know which plan added value, and we know which one is a scam.

2nd Front Page BusinessMirror

A8 Tuesday, May 22, 2018

Con-com seeks overhaul of Judiciary in new Charter

By Bernadette D. Nicolas

@BNicolasBM

mid the noise left in the wake of the ouster of former Chief Justice Maria Lourdes A. Sereno, the consultative committee (Con-com) reviewing the 1987 Constitution seeks to overhaul the Judiciary, including changes in the impeachment process and the creation of three high courts. Con-com Spokesman Conrado I. Generoso said the emerging consensus at the Subcommittee on the Structure of Federal Government is that Congress and the Judiciary will have joint jurisdiction under the proposed federal constitution. T h i s si g n i f ic a nt ly d i f fers from the current procedure where impeachment is the sole domain of Congress. Although Con-com Chairman and former Chief Justice Reynato S. Puno said they do not have a

Solon. . .

Continued from A1

Gatchalian issued his statement weeks ahead of a meeting by the Organization of the Petroleum Exporting Countries (Opec), which controls 81.5 percent of the world’s proven crude-oil reserves. “There will be an Opec meeting in early-June, and I ‘m sure that there will be pressure for them to ease production caps,” Rosemarie G. Edillon of the National Economic and Development Authority (Neda) told the BusinessMirror. A rule of thumb goes that oil prices stabilize as Opec cuts production, with demand declining. “There’s also the upcoming summer months in the northern hemisphere, which means an ease in demand,” added Edillon, Neda Undersecretary for Policy and Planning. However, she said she “can’t say for sure [if oil prices will increase to $100 per bbl].” Likewise, Socioeconomic Planning Secretary Ernesto M. Pernia told the BusinessM irror in a text message that “Oil price movements are unpredictable.” “Anything is possible depending on global events we have no control over,” Pernia added.

Pump prices WHAT is predictable is the price of pump prices today (May 22) as oil firms implement hefty price hike. Gasoline prices will go up by P1.60 ($0.031) per liter, diesel by P1.10 ($0.021) per liter and kerosene by P1 ($0.019) per liter. They cited movements in the world oil market as the main reason for the price adjustment, the highest since the start of the year. PTT Philippines, Pilipinas Shell, Flying V and Total Philippines announced their respective price hikes. Other oil firms are expected to follow suit. From January to May 2018, gasoline prices increased P8.07 ($0.15) per liter, while diesel is up P8.95 ($0.17) per liter. The Department of Energy (DOE) said following these announcements of price hikes, it is closely monitoring crude prices in the world market. “It’s burdensome. We need to conserve and use energy efficiency,”Energy Secretary Alfonso G. Cusi said.“We need to have more exploration like Alegria.” Cusi was referring to the Alegria Oil Field in South Cebu, which is currently operated by China International Mining Petroleum Co. Ltd.

No worries LOCAL economists, however, are allaying fears of an oil shock from a

particular personality in mind in designing the new system, he said the committee would rather that the impeachment process be both political and judicial in nature. “In other words, if the process is purely political, the members of Congress would not be answerable to the Judiciary but they will be answerable to the people, and this means that the respondent cannot go to the Supreme Court for any judicial remedy,” Puno said. “From our point of view [and] high-price regime despite the country’s status as a net oil importer. Currently, Brent crude is around $80 per bbl. But economists believe there is not enough reason for this to increase to a $100. University of Asia and the Pacific (UA&P) Vice Dean for Academic and Faculty Affairs Peter Lee U told the BusinessM irror there was only a 10-percent to 20-percent or less chance of oil prices reaching $100 per bbl. “It [oil price increasing to $100 per barrel] can’t be ruled out completely if global economic recovery is strong,” U said. “Then there is also the tension in the Middle East, though there is always something going on in that part of the world every year.” U added that if he were “to put a probability distribution on oil prices, my gut feel is about 10-percent to 20percent chance or less that it would hit $100 given that we are already at $80 [for Brent].” U said he is hoping that if oil prices breach the $80 per barrel mark, US oil players will increase their output, thereby increasing oil supply and reducing oil prices.

Goal 7 U’s colleague, UA&P School of Economics Dean Cid Terosa, agreed with U and said he expects there would soon be a larger market for alternative sources of energy, which will also help ease the pressure for oil prices to increase. This augurs well with the Sustainable Development Goal targets stated under Goal 7 on ensuring access to affordable, reliable, sustainable and modern energy for all. Under Goal 7, countries target that by 2030, there is universal access to affordable, reliable and modern energy services; a substantially higher share of renewable energy in the global energy mix; and the global rate of improvement in energy efficiency would have already doubled, among other targets.

Trade normalcy

Trade Secretary Ramon M. Lopez also said businessmen and exporters in the country need not worry about any further oil hikes, given that global trade will normalize once again with China and the US putting a halt to the escalation of their trade tiff in the past months. Lopez said this will do more good to the stability of prices of raw materials on the international scale. “World oil prices have been inching up in the past weeks and users have been adjusting. [We are] hoping that there would be lesser increases as oil supply increases,” he said in a text

because of what is happening in our surroundings, maybe the best compromise is that the impeachment process is both political and adjudicatory,” he added. Puno said the political part involves the initiation of the impeachment process, the investigation and the preparation of the indictment which would be left to Congress. The judicial part, which includes the impeachment trial that will strictly be a judicial proceeding, would go to the Federal Constitutional Court, one of the three high courts being eyed by Con-com. He also said the impeachment body will be composed of 12 members of the Senate and 12 members from the House and presided over by the Senate President. The decision of the joint body will now be voted upon separately before it goes to the Constitutional Court. Puno added that the use of the quo warranto as ground for the removal of an impeachable official proves that the impeachment process has evolved. He described the Sereono ouster

as a “wrinkle,” since the process was a development never anticipated by the framers of the Constitution. “So if there are open spaces like that, since we are making a new constitution, it is our duty to look into these open spaces and see how the open space can be better used for a better purpose,” he said. On whether the committee will revisit impeachment provisions or include a provision stating that impeachment via quo warranto will not be allowed, Puno said they have not reached that point but asserted they will review the grounds for impeachment. “We note that over the years the grounds were the subject of heavy contention and, hopefully, we shall be able to review the different grounds, perhaps expand them or restrict them or qualify them,” he said. Also, the federal Judiciary was seen to have three high courts, instead of just one Supreme Court, for a more efficient judicial system, speed up the delivery of justice and unclog the case backlog of the Supreme Court.

layered complex numbers Adoracion Navarro, Neda undersecretary for Regional Development, and Socioeconomic Planning Secretary Ernesto M. Pernia react at a briefing on employment and the rehabilitation of Marawi City at the Neda offices in Pasig City on Monday. Unemployment is down but underemployment is up. ROY DOMINGO message. “The normalization of trade between the US and China is a far better development that would cushion concerns of further hike in oil price,” the trade chief added. Still, Lopez admitted that petrol prices on the international level have been rising in the past weeks. In a previous interview with the BusinessMirror, he even attributed the rising prices of goods and services the movement of oil prices in the world market.

Recommendations GATCHALIAN issued his statement apparently from the warning by Total SA CEO Patrick Pouyanne of the increase in oil prices. Hence, the Senate Committee on Energy chairman said he is asking DOE officials to “accurately forecast the expected price of crude oil over the next six months.” Gatchalian suggested that the DOE should also lead the preparation of strategies that would minimize the impact of surging prices on public-utility drivers and private consumers. He cautioned, however, that the “DOE must ensure it provides accurate estimates, so government may be guided in crafting both immediate and long-term ways to insulate the country from shocks in the global oil market.” At the same time, Gatchalian cited “unusually accelerated pricing track” of petroleum products, that he noted to be “disrupting public consumption.” The senator recommends the Duterte government can also “explore reviving and expanding” the Pantawid Pasada or the Public Transport Assistance Program, or Ptap. First rolled

out in 2011, the Ptap was an immediate mitigating program to shield the vulnerable sectors from the impact of oil price hikes. He notes that when the program was implemented, legitimate public utility vehicle franchise-holders were given cash cards worth P1,050 to buy fuel from accredited gasoline stations.

Mechanism LOCAL pump prices are mainly influenced by the crude prices in the world market and the peso-dollar exchange rate. But for Cusi, higher taxes is the culprit. “There is a mechanism on the implementation of excise tax when oil price reaches a certain level,” he said. Cusi was referring to the suspension of the imposition of excise tax if and when crude prices reached $80/bbl in three consecutive months. He is also urging more investors in the oil and gas industry to develop the more indigenous energy resources in the country. “I asked our OIMB [oil industry management bureau] to call for a meeting with the oil companies to discuss the surging oil price and what measures we can adopt to lessen its impact,” Cusi said. He explained the DOE is studying options line suspension of excise tax on fuel, increase in existing fuel discount to public utilities (land), expedite price unbundling energy conservation and efficiency, development of indigenous sources vouchers for pub in coordination with the Department of Transportation, among others. With Lenie Lectura

and Elijah Felice E. Rosales

www.businessmirror.com.ph

Culinary tourism takes a hit as probe unearths how Buhay Carinderia ‘redefined’ TPB approval route Continued from A1

side with Michelin-starred chefs from Europe and Asia and their culinary concoctions since its launch in 2015. But as the public now knows, Buhay Carinderia Redefined actually costs P320 million, as disclosed by Tourism Secretary-designate Bernadette Fatima Romulo Puyat in a recent news conference. She later told this reporter the project was supposed to be implemented in four phases. “They [TPB] planned to bring it not just around the Philippines, but to the world,” she added, citing TPB documents given to her by Montano. [In contrast, the TPB spends only some P40 million to host the annual MFM event, according to sources familiar with the project]. Fortunately, the TPB Board saw it fit to approve the sponsorship only of the first phase of the project, at P80 million, for implementation from March to June 2018 (Northern Luzon), although it was to be a “series of events and fora that will tour in most of the regions and key cities of the country, starting on April 2018 to December 2018 [9 months],” as per Marylindbert’s project proposal. “On its tour around the country, it will choose regional representatives for the Search for Millennial Food Ambassadors. Part of Buhay Carinderia Redefined is mentoring the students on entrepreneurship and the latest trends on Carinderia Redefined Cooking.” TPB’s involvement in the project, is as “sole presentor for P80million inclusion of VAT as Inaugural Salvo to be held in Northern Luzon (CAR, Region 1 and Region 2 with 15 provinces), the first of the series of events of Buhay Carinderia Redefined,” according to the project proposal. The event, formerly known as Carinderia Fiesta, supposedly has been in existence since 2011. The project proposal was also endorsed by Ebron to Montano, whose signature appears as recommending approval. Marian Sarah Garate, OIC of TPB’s finance department, certified that P80 million in funds were available, and Teo signed the form approving said project.

Irregular TPB procedures

Separate documents showed three checks for said project were issued to Marylindbert on March 19, 2018 (P13.44 million); March 20, 2018 (P31.36 million); and April

Land disputes. . . Continued from A1

She said that before any structure can be built, the government must be able to ensure that the land where public structures will be constructed must be free from disputes. “We hope to contribute to the resolution of land issues, issues on ownership. Realistically speaking, we recognize that many of the issues on land ownership might not be completely resolved during this term but we hope to make significant progress during the medium term implementation of the [projects],” Navarro said. Apart from land ownership issues, Navarro said other implementation delays may be caused by procurement problems and readiness of projects, which are also among the common causes of delay in government projects. “It’s usually based on the experience of implementing agencies, [these delays are] due to land availability, lack of readiness in procurement. In the past, those are the frequently cited in the reasons for delay in implementing agencies, [including] procurement related issues, and right-of-way issues,” Navarro said. “I’m anticipating that these will be the same reasons for delay and not the availability of funds since we will be able to project in advance the amounts that are needed.” She said the 892 priority programs, projects and activities under the Bangon Marawi Comprehensive Rehabilitation and Recovery Program (BMCRRP) will be implemented outside the most affected area in the city from 2018 to 2022. Apart from physical infrastructure and housing, the list also includes 335 PPAs on

17, 2018 (P35.84 million), or just six days after the project was launched. The checks were signed by Teo and Montano, with certifications made by project officer Alberto B. Gadia Jr. and Deputy COO Ebron, to facilitate the issuances of the checks. W hen qu i zzed by Romu lo Puyat why there was no bidding for the project, Montano said sponsorships were normally done by the TPB. Why the haste in issuing the checks when the project had yet to start, the DOT chief asked. Montano reportedly said he had checked with “his lawyer at TPB who assured him that this was aboveboard,” Romulo Puyat narrated. But a TPB insider, who requested anonymity, vehemently disputed Montano’s claim that sponsorships like that of Buhay Carinderia project were regularly done by the agency, a marketing arm of the DOT. “Normally, a sponsorship is granted only upon execution of the project. It is only now that it happened in TPB, that [such a] magnitude of sponsorship was granted [i.e., P80 million]. TPB has always observed the process of the government’s procurement law,” the source said. A separate source also stressed: “Project proposals [to TPB] should always be subjected to evaluation to determine the impact on tourism promotions objectives. It has been the practice of TPB to provide funding assistance to the private organizations, but the level of assistance could be financial, or logistical, or even a mere endorsement.” Nevertheless, even if Buhay Carinderia Redefined was a sponsored event, payment to the project proponent should have been made “only after the project was completed,” government sources averred. Many regular suppliers and project proponents who have worked with TPB decried the rush to release the checks to Marylindbert. A regular supplier of services to the TPB shared, “the last project we had with them took so long to bill. If I remember correctly, it was over a year before we got paid!” Romulo Puyat agrees. “It’s difficult to get paid by the government. There are so many requirements the project proponents have to submit first.” She added that it would be, yes, normal, for a supplier or project proponent to be paid only after a year, as has been her experience at the Department of Agriculture, where she was undersecretary for 12 years. To be concluded livelihood and business development; 139 for local governance and peace building; 72 for social services; and 67 for land resource management. Navarro reported that the initial total investment needed for the rehabilitation of Marawi City is around P73.42 billion. This includes the P53.42 billion for the BMCRRP and around P20 billion for “ground zero.” The total amount could still change pending estimates of the cost of rightof-way acquisition, which includes the cost of land as well as compensation for relocation. The decision of the government to compensate families who lost their loved ones during the Marawi siege could increase the figure. The payment of compensation for those who died during the conflict is one of the things that Marawi residents had requested from the government. Should the government decide on paying compensation, Navarro said, this could be patterned after the 9/11 compensation fund and Israel’s compensation fund, which is enshrined in its laws. “In the case of Marawi, the siege was caused by a violent extremist group. That’s why I’ve been telling people that it is more appropriate to provide compensation than reparation,” Navarro said. Of the total amount needed for the BMCRRP, the Neda said the bulk will be sourced from the National Disaster Risk Reduction and Management (NDRRM) Fund amounting to P24.87 billion and non-government sources, such as development partners and private sector. Only the source of the remaining P569 million will still be determined by the government. Navarro assured that, at least for 2018, some P10 billion can be sourced from the NDRRM fund and P5 billion from Unprogrammed Appropriations in the national budget. Cai U. Ordinario