Businessmirror may 24, 2017

BMReports

Bird flu to increase foreign demand for African lovebirds

By Alladin S. Diega | Correspondent

Conclusion

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ADILLA’S Aviary, located in Parañaque City, is presently housing some 200 pairs of birds and almost the same number of newly hatched babies or young birds.

The aviary owned by the Badilla brothers, Billy and Bob, employs a full-time veterinarian, who is also a bird enthusiast. It also maintains a subcontractor aviary. All the materials are provided by Badilla, and the caretaker is paid, including several people working for him.

Rogelio L. Sicat Jr., an African lovebird breeder, has 30 pairs. His aviary is on the third floor of a four-story house in Cainta, Rizal. A considerable collection of bonsai trees and other plants were specifically positioned near the birds to help cool down the aviary. During the hottest of days, he regularly sprinkles the enclosure with water.

Another African lovebird hobbyist, Bibo Andrae Dusaran, started

Some breeders of lovebirds perform a pictorial of their pets. African lovebird breeder Rogelio Sicat Jr. recommends that beginners should buy from a breeder with a Wildlife Farm Permit, especially if there are plans to engage in trading in the future. STEPHANIE TUMAMPOS

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Continued on A2

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Wednesday, May 24, 2017 Vol. 12 No. 223

Labor unions to demand ₧184 hike in NCR wage

S

By Elijah Felice E. Rosales

@alyasjah

trike while the iron is hot. No stranger to this dictum, the labor sector—after getting President Duterte’s commitment to end contractualization, or endo—will now petition for a P184 across-the-board wage increase for workers in Metro Manila, or more than a third of what they are currently receiving.

₧491

The current minimum wage in Metro Manila

The Associated Labor UnionsTrade Union Congress of the Philippines (ALU-TUCP) said it will file the petition on Wednesday before the National Capital Region (NCR) wage board. ALU-TUCP Spokesman Alan A. Tanjusay told the BusinessMirror that the proposed salary Continued on A2

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The problem with religion Teddy Locsin Jr.

free fire

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BC News reports that Marie Collins resigned from the panel created by Pope Francis to investigate clerical sex abuse. Collins was invited to the panel by the pope. She was molested at 13 by an Irish priest.

Four thousand four hundred Australians claim to have been victims of clerical abuse as children. A royal commission also investigated child sex abuse at nonreligious organizations.

Child sex abuse is more common among public officials.

Continued on A11

INTERNALLY DISPLACED Duterte turns down Trump’s invitation PEOPLE RISING GLOBALLY I

M

ore than 31 million people were displaced in their own countries last year—over 75 percent as a result of natural disasters and weather-related events—with the Philippines just behind China on the list of countries with the most number of cases.

Congo and Syria, meanwhile, topped the list for cases related to violence and conflicts, according to a new report released on Monday.

East Asia and the Pacific accounted for two-thirds of the displacements related to extreme weather events, including storms, floods, wildfires and severe winter conditions in 2016—almost double the number for 2015.

The center, which is part of the

5.9 million

The number of Filipinos that was forced to flee their homes in 2016 for various reasons Norwegian Refugee Council, said in recent years there have been roughly twice as many internally displaced people as refugees who flee to another country, and the gap between the numbers has been growing since 1997.

Yet, the report said, “2016 was a year of stark contrast between the attention given to refugees and Continued on A12

PESO exchange rates n US 49.7530

t seems the much-awaited meeting between the “populist of the East” and the “protectionist of the West” will not take place anymore, as President Duterte recently told foreign media he already turned down the invitation of his United States counterpart Donald J. Trump.

In an interview with state-funded Russia Today, Duterte said: “Yes, I said I’m sorry and I cannot go, because I’m busy.”

He reiterated the statement he made on May 1 before Davao Citybased reporters that he might be prevented to meet Trump due to his “very busy schedule”.

In addition, he said he has yet to move on from the “severe criticisms” of the US against his candidacy during the election period.

“They ought not to have said words that would either be in favor

DUTERTE: “I said I’m sorry and I cannot go, because I’m busy.”

or against a candidate, or sway the votes, because it was an election, and you are interfering with the sentiments of the people [on] who to vote for,” Duterte said.

The Chief Executive, however, clarified that he is not against the US and, in fact, he is “friends with Trump”. He said the world just needs to understand the Philippines is veering away from its traditional partners under his administration.

“My foreign policy has shifted

away from the pro-Western one.

I am now working on an alliance with China, and I hope to start a good working relationship with Russia,” Duterte said.

True enough, Duterte is presently in Russia to discuss matters on defense and trade with President Vladimir Putin and Prime Minister Dmitry Medvedev. Over a week ago, he attended the Belt and Road Forum in Beijing, China, to enlist the Philippines in President Xi Jinping’s grand plan of reviving the maritime Silk Road.

“The Western world, the European Union and everything, t hey’re a l l just double ta l k,” Duterte said. He rejected future grants from the EU, as it is entailed with conditions that “interfere with the country’s domestic affairs and internal policies”.

Duterte on May 1 said he re-

jected Trump’s invitation due to a “very busy schedule”. “I am tied up.

I cannot make any definite promise. I am supposed to go to Russia, I am supposed to go to Israel,” the President added.

Israel’s foreign ministry, for its part, has yet to set a date for Duterte’s trip to the Holy Land.

One week later, the Department of Foreign Affairs (DFA) said it is not totally discounting the possibility of Duterte visiting the White House, as it was still awaiting formal invitation from Washington.

“We have yet to receive a formal invitation from the White House,” DFA Acting Spokesman Robespierre L. Bolivar said at the sidelines of a Malacañang news briefing.

“If a formal invitation comes and if the President accepts it, we See “Duterte,” A2

n japan 0.4471 n UK 64.6889 n HK 6.3910 n CHINA 7.2219 n singapore 35.9020 n australia 37.1904 n EU 55.9224 n SAUDI arabia 13.2682

Source: BSP (23 May 2017 )

A2 Wednesday, May 24, 2017

BMReports BusinessMirror

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Bird flu to increase foreign demand for African lovebirds Continued from A1

breeding in 2014. “Once, I visited my friend’s residence and saw his 35 pairs of African lovebirds and I fell in love immediately with the birds,” Durasan said.

He bought one matured pair and shortly, the hen produced several eggs hatched after 21 days. He now has 40 birds.

According to Durasan, he’s using the birds to trade things that he needed in his breeding, like cages, perches, nest and pairing boxes, and even bird seeds. He sometimes sells some of his birds to friends who are also venturing into breeding, but at prices just enough to cover the expense for the bird seeds.

Breeding African lovebirds, however, are not for everybody, according to Durasan. He knows many who quit after a few years of breeding, mainly because even at low maintenance, the birds still need minimum hours of care.

The birds need only to be fed and given fresh water once a day.

Those with chicks need addition-

al protein-rich feeds. Durasan is using a section of his front lawn as aviary.

Both Sicat and Durasan agree that love and caring for the birds should come first before the business aspect because once you cared enough for the birds, it will return the favor by producing many healthy and quality young birds.

Fallows, for instance.

These are birds that have lost the eumelanin, or pigments, in the eyes but not in the feathers, resulting to richly colored birds with wine-red eyes.

They are unlike the albino that mutated from the violet line of colors and lost the pigments in their feathers and, hence, completely white with red eyes. They are also unlike the lutino, which evolved from the green line and now completely yellow with red eyes.

Lutino’s “yellow”, however, is different from that of the yellowfeathered, which is more “creamy yellow”. The difference between dun and pale fallows, on the other hand, is only in the color on the tip of their wings.

Regulatory environment

BASED on guidelines under the implementing rules and regulations of Republic Act (RA) 9147, also known as Wildlife Resources Conservation and Protection Act, owning and trading of lovebirds require different levels of permit and certifications. For general welfare of animals, the applicable law is RA 8485, or the Animal Welfare Act of 1998, especially in cases of animal cruelty, farming facility and transport of animals.

Under these laws, the Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR), and other related agencies are joined in several implementing guidelines.

The farming of animals for food belongs under the DA’s purview, while farming for nonfood, especially wildlife animals, are within the DENR’s province.

For simply owning lovebirds, a certificate of wildlife registration (CWR) from the DENR is enough.

This is common practice among lovebird enthusiasts, which cost less than P100 for not more than

10 birds.

According to Sicat, a newbie should buy not only from a refutable breeder, but from a breeder with Wildlife Farm Permit (WFP), especially if there are plans to engage in trading in the future. The receipt from the breeder with farm permit is required by the DENR for the issuance of CWR. “We are very familiar with the breeders with farm permits for they are only a handful,” said Catalina G. Garingarao, officer in charge at the Permitting Section of the DENR-National Capital Region.

Permit to sell

ACCORDING to Garingarao, as per DENR regulation, a CWR entitles the holder the ownership of the birds, while the WFP permits the holder to sell or trade lovebirds.

She further explained that the CWR does not end in the release of the certification, but the owner needs to periodically file a breeding report to legally update the inventory of birds. The permits are good for five years and would

have to be renewed.

“African lovebirds are not endemic to the Philippines and in no way threatened, as the stocks are sourced from wildlife, so there are no special clearances needed other than the registration, farm permit and payments per head should the breeder decide to export,” she added.

A breeder who would want to apply for a farm permit would have to secure a clearance from the Department of Trade and Industry, Bureau of Animal Industry, barangay clearance and would need to be inspected.

The application also requires a management plan, which includes the project location and housing specifics, including veterinary and feeding program, bio-security and environmental plan.

According to Sicat, this is the reason many small-scale breeders have difficulty securing a farm permit, because of the requirements. “Many small-scale breeders have only the edges of their houses as their aviaries and would no way be issued farming permits,” Sicat said.

Labor unions to demand P184 hike in NCR wage hike is meant to restore the purchasing power of the daily pay being received by NCR-based workers.

“The P491 minimum wage is not enough already as it lost purchasing power due to rising prices of basic commodities.”

“Along the way since the last wage hike, an estimated P367 was depleted because goods and services increased prices, too,” Tanjusay added.

The labor unions made the revelation just days after they submitted to Malacañang the executive order (EO) that they drafted seeking to end the practice of endo in the

country—a promise that Duterte made during the campaign period for the 2016 polls.

With a populist President that is sympathetic to the labor sector while repeatedly berating oligarchs in his public statements, the ALU-TUCP is also confident of getting the approval of Duterte for its planned changes in the wage-setting mechanism.

Tanjusay said Duterte “ listened a nd is open” to A LU TUCP ’s recommendation that instead of a regional wage board, there should be a national wage board to equalize wages all over

the country.

Tanjusay said in his group’s meeting with Duterte on May 1, workers told the Chief Executive to closely study the possibility of implementing a national wage-setting mechanism. “He received our proposal with an open mind and promised to examine closely our proposal,” the spokesman said.

A n at ion a l w a ge i s b e i ng pushed for by numerous labor groups, saying this would be a better wage system in contrast to the status quo. Militant group Kilusang Mayo Uno, for one, is

calling on the government to consider implementing a P750 national wage.

Meanwhile, Tanjusay said the Office of the President has yet to give an update on the draft EO that ALU-TUCP submitted on May 9 on endo. He added it was the Chief Executive who asked for the draft EO, so he should really look into the framework that their group submitted.

Two weeks ago Tanjusay told the BusinessMirror “the ball is now in Duterte’s hands” whether he will really outlaw contractualization as a mode of employment

Continued from a1

now that the labor groups have done their part in fulfilling the President’s request of drafting the EO. On May 1 Duterte asked labor groups to draft the EO on endo, a decision reached after he held a dialogue with labor leaders in Davao City.

T he EO was demanded by workers as a replacement for Department Order (DO) 174 issued in March by the Department of Labor and Employment. Labor groups strongly protested against DO 174, saying it does not fully scrap contractualization.

Govt. . .

Continued from A12

“It is crucial for the airport-development projects to be implemented immediately because efficiencies in the airport system are greatly hampered by the lack of proper infrastructure,” he told the B usiness M irror.

Ferrer’s company is the operator of the Mactan-Cebu International Airport, which is currently being modernised through the PPP Program.

Aboitiz Infra Capital Inc. COO Randall C. Antonio also signified his group’s support in the endeavor.

“We acknowledge the government’s decision to terminate the PPP process for the regional airports in favor of other modes of procurement,” he said. “We remain committed to supporting the government’s push to build the infrastructure necessary to promote inclusive economic growth for our people.”

Metro Pacific Investments Corp.

CFO David C. Nicol, for his part, said: “We await developments with interest. The private sector has a great track record of rapid execution on capital projects, for example look at the progress on the LRT 1. We are ready and keen to help.”

He was referring to the Light Rail Transit (LRT) Line 1 Cavite Extension deal, which his group bagged in 2014.

From a bias on deals developed under the PPP Program, the government has taken a different leaning on infrastructure growth, with its eyes now keen on building more infrastructure through bilateral loans and tax payers’ money.

Fi n a n c e S e c re t a r y Ca r l o s G .

Do-minguez III earlier explained that the apparent shift in bias was borne out of the nature of PPP deals, which he described as too slow in movement, when compared to projects that are under official development assistance (ODA) and GAA funding.

Infrastructures built through these modes will also see their operations and maintenance components being auctioned off to the private sector.

These are called hybrid projects.

In a nutshell, these so-called hybrid deals are infrastructure whose construction will be shouldered by the government, but their operations and maintenance components will be tendered to the private sector.

Despite the apparent setback because of the termination of the deals’ bidding, Pecson still believes that the PPP Program will help complement the government’s thrust in infrastructure development.

“Notwithstanding this development, the PPP Center remains ready and committed to support government agencies in their infrastructure and development projects.

The critical foundations of the PPP Program have been laid down, and the institutions, both in the public and private sectors, are ready to deliver,” he said.

Pecson added: “It is clear that PPPs remain as a viable option in the procurement of infrastructure projects, especially those that require an integrated approach, i.e., design-buildoperate-maintain in order to save on procurement timing, reduce interface risks, and avail of private sector’s technology and efficiency.”

Duterte. . .

Continued from A1

will formally convey the acceptance and then we will work out the diplomatic details after that.”

Trump called Duterte on the night of the Asean Summit on April 30, the same day the Philippine leader made the call to halt tensions in the Korean Peninsula.

Diplomatic relations between the Philippines and the US somewhat dampened last year, when Duterte verbally lambasted former President Barack Obama for criticizing his war against drugs.

Contrary to Obama, Trump expressed support for Duterte’s crackdown on illegal drugs, in spite of the campaign gathering international condemnation for reportedly claiming thousands of lives.

Elijah Felice E. Rosales

The Nation BusinessMirror

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Students’ group nixes CHED rules on tuition increases

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HE League of Filipino Students (LFS) is opposing the implementing rules covering the socialized tuition system and the increases in tuition and other school fees (OSFs) issued by the Commission on Higher Education (CHED).

With the implementing rules, LFS said more than 100 state universities and colleges (SUCs) would slap increases in tuition and OSFs as part of the policy to make SUCs fend for themselves.

On Monday House Bill 5633, otherwise known as the “Universal Access to Quality Tertiary Education” bill was passed. While the LFS considers the passage of the bill as some sort of an initial success of the students’ movement toward free education, the tuition increases remain along with OSFs. “This is a victory of the youth and the campaign for free education that we have been demanding for [so] long. Even though it paves a way for the youth’s struggle, the tuition system remains. The guidelines for the budget are used to reinforce the need for collection, which will eventually lead to a justification of tuition increase in schools. What’s worse, this could also be used to implement a loan system,” LFS National Spokesman JP Rosos said.

Rosos said the strug gle to achieve free education is not over.

Marvyn N. Benaning

House panel hailed for retaining 15 as age of criminal responsibility

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By Marvyn N. Benaning | Correspondent

HE Child Rights Network (CRN) on Tuesday lauded the House of Representatives’s subcommittee that retained the minimum age of criminal responsibility (MACR) at 15.

CRN, which was convened by the Philippine Legislators Committee for Population and Development (PLPCD), said the panel junked the proposal to reduce the MACR to nine-years-old and approved a substitute bill to amend the Juvenile Justice Act of 2006.

Instead of lowering the MACR to nine-years-old, as originally proposed by House Bill 2 and several other bills, the subcommittee opted to retain the MACR at 15 and introduce other measures to strengthen the implementation of the Juvenile Justice and Welfare Act (JJWA).

“We thank the members of the subcommittee for choosing to listen to scientific evidence proving that rehabilitation is a much more effective

and sound solution to the problem of children being involved in criminal activities. It is also worth noting that the substitute bill has interventions that extend to children in conflict with the law (CICL) below MACR, from nine to 14 years old. This addresses the problem more considerately, upholding and prioritizing children’s rights,” said PLPCD Executive Director Romeo Dongeto, CRN’s convenor.

On Tuesday morning, the authors of the bill that lowers the age of criminal liability to nine years old gave up on the measure’s passage, and instead, sought the strengthening of the JJWA and retain the current age of criminal responsibility at 15.

A subcommittee of the House of Representatives’s Committee on Justice

Año: There is pressing need to secure Asean

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HERE is a strong need to secure the Asean regional bloc given its economic leverage and potential Armed Forces chief of staff Gen. Eduardo Año said.

Año said the Asean has become a “rising global economic force”, owing to its strategic location and economic activity—abundant resources, a more integrated market, and a large combined GDP from its members.

“By providing security to our respective nations, we create a better environment for growth and prosperity.

And through purposive security cooperation, we actually help to secure and sustain our region’s economic gains.

We all know that a secure Asean is a progressive Asean,” Año said during

AÑO: “This partnership with neighbors will negate the threats, and shows that strong military cooperation is important in aligning our security requirements and initiatives.”

the Asean Chiefs of Defense Forces Informal Meeting (ACDFIM) held in Metro Manila recently.

He cited as example the existing trilateral agreement among three Asean countries—the Philippines, Indonesia and Malaysia—to com-

bat transborder crimes, terrorism, piracy and other criminal activities in the Sulu-Sulawesi-Celebes Sea. “This partnership with neighbors will negate the threats, and shows that strong military cooperation is important in aligning our security requirements and initiatives,” Año said.

The next ACDFIM meeting, to be attended by the ten military chiefs from the Asean member-states, is scheduled to be held in Singapore next year.

Asan member-states include Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. PNA

Replace tattered, faded flags–congressman

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SENIOR congressman on Tuesday again called attention to the pitiful state of the Philippine flags displayed at the People Power Monument on Epifanio de los Santos Avenue in Quezon City and in many government buildings.

“Kamakailan lang ay ginunita natin ang anibersaryo ng ating katangi-tanging People Power Revolution sa dambana ng Edsa Revolution. Dumaan kayo roon anumang araw, makikita ninyo iyong mga bandilang ginagamit nila roon ay nanggigitata na, may putik na, gutay-gutay na. Nakakahiya amining tayo ay walang pagpapahalaga at paggalang sa ating sariling bandila, subalit ito ang nakikita natin sa mga dambana at sa maraming tanggapan ng pamahalaan—ito ang ating panawagan noon pang Marso sa ating privilege speech, subalit hanggang sa araw na ito, wala pa ding aksyon at hindi pa din napapalitan ang mga bandila,” Senior Deputy Minority Leader Jose L. Atienza said in a privileged speech on Monday night.

Atienza pointed out the flag “is the most visible symbol of our nation, and deserves to

be treated with utmost respect and reverence”, citing even the President wears a flag pin for all his official functions.

“Seeing our flag should fill us with a sense of pride as a people. But for the hundreds of thousands of Filipino commuters and motorists who pass by Edsa everyday, all they see are old and tattered Philippine flags at one of our national monuments. Yet, [the] government has failed to see this. No government agency has seen fit to address this. I reiterate the offer I made during my previous privilege speech to replace these with new flags from my own pocket. If you don’t do your job, my office will do it for you.

We are likewise encouraging all households and local and barangay officials to proudly display the Philippine flag in their homes all year-round. This is very timely, especially now that we will be celebrating National Flag Day on May 28,” Atienza added.

Meanwhile, Atienza said while he lauds the President for being the first Chief Executive to have confronted the drug problem

head on, he is reminding President Duterte that aside from the drug problem, there are equally pressing national matters that need to be addressed.

“While we acknowledge that the country’s drug problem needs immediate action, there are other important issues affecting the nation that also need to be addressed.

National attention is focused too much on the drug problem. Meanwhile, effective governance is set aside. One such glaring and disturbing national issue is the continuing rash of crimes being committed by men in uniform, the latest being the kidnapping of a businessman and his girlfriend in Pasay City by four police officers, as well as the discovery of a secret jail cell in a police station in Manila being touted as tokhang-forransom. This unbridled abuse of power by rotten police officers is bound to get worse once the death penalty is reimposed. They will use the mere threat of death sentences to get whatever they want from their victims,” Atienza stressed.

No Pinoy hurt in Manchester bombing

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HE Department of Foreign Affairs (DFA) on Tuesday said there are no reports of Filipinos among the casualties at the deadly attack at a concert venue of US pop star Ariana Grande in Manchester, England.

“So far, fortunately, there are no reports of Filipinos among the casualties,” DFA Spokesman

Editor: Dionisio L. Pelayo • Wednesday, May 24, 2017 A3

Robespierre Bolivar said.

“The [Philippine] Embassy [in London] is closely monitoring the situation,” he added.

At least 22 people were killed, and some 50 others were injured in what Greater Manchester Police described as a “terrorist incident”.

If the involvement of extremists were confirmed, it would be

the deadliest attack in Britain by militants since four British Muslims killed 52 people in suicide bombings on London’s transport system in July 2005.

The blast also came two and half weeks ahead of an election in which Prime Minister Theresa May is predicted by opinion polls to win a large majority. Recto L. Mercene

approved the substitute bill on Tuesday.

“What we have tried to do is to remove the stigma of being criminal, but all the interventions are there and being strengthened further,” Deputy Speaker Pia S. Cayetano said.

The bill will give the state the right to “take responsibility” of a child in conflict with the law if the parents cannot do so.

Party-list Rep. Carlos Zarate of Bayan Muna and Liberal Party Rep. Romeo Acop of Antipolo raised the same concern about funding and capacitating the agencies tasked to implement the measure.

“The weakness of the [Sen. Francis N.] Pangilinan’s law [JJWA], is the funding. The current bill proposes a number of measures to be undertaken by national agencies, but how much appropriation will be given,” Zarate said.

Acop, a retired police director (the equivalent of major general in the Army, Air Force and Marines and rear admiral in the Navy) said there was nothing in the bill that says how the Department of Social Welfare and Development (DSWD) would be strengthened given that it bears the burden of rehabilitating children involved in crimes.

Among the more important provisions of the bill strengthening the

Juvenile Welfare Act are: Establishment of a half-way house to be called “Bahay Pag-asa”, that will be providing childcare round the clock. It will funded and managed by the DSWD. It will provide shortterm residential care for children nine to 17 years old involved in crimes, who are committed for rehabilitation or awaiting court disposition.

If the child taken into custody is 15 years old or below, the child will be turned over to the local social welfaredevelopment officer, who shall immediately inform the child’s parents or guardian, or the child’s nearest relative that the child has been taken into custody. The local social-welfare officer will assess if the child needs to be placed under foster care or in a youth-care facility or Bahay Pag-asa.

Any person who induces or coerces a child to commit a crime shall be punished by reclusion temporal if the crime committed is punishable by imprisonment of six years or less, and by reclusion perpetua if the crime committed is punishable by imprisonment of more than six years.

Parents of children who commit serious crimes or who are repeat offenders shall undergo mandatory intervention programs, such as parenting seminars and counseling. Failure to undergo this process shall be a

ground for imprisonment for at least 30 days, but not more than six months.

The court shall impose a penalty two degrees lower than that provided for in law for crimes committed by CICL. In cases where the law provides for a fixed period of imprisonment, the period shall be reduced in half. For crimes punishable by life imprisonment, the penalty to be imposed shall be imprisonment of up to 12 years.

If the CICL reaches 18 years of age while under suspended sentence, the court shall determine whether to discharge the child, to order execution of sentence, or to extend the suspended sentence until the child reaches 25 years.

The DSWD shall be responsible for building, funding and operating Bahay Pag-asa in provinces and cities to be identified by the Juvenile Justice and Welfare Council.

All Bahay Pag-asa that are currently operated and maintained by local governments shall continue to be operated, maintained and funded by the respective localities.

The Bureau of Corrections shall establish at least two agricultural camps each in Luzon, the Visayas and Mindanao. The Technical Education and Skills Development Authority shall also establish at least two training centers each in Luzon, the Visayas and Mindanao.

Economy

A4 Wednesday, May 24, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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SC: No ₧8.5-billion Cola, AA backpay for Napocor workers

Tieza board okays ₧45M for LPPCHEA conservation drive

HE Supreme Court (SC) has reversed a decision issued by a Regional Trial Court (RTC) in Quezon City allowing the back payment of additional cost-of-living allowance (Cola) and amelioration allowance (AA) to National Power Corp. (Napocor) personnel amounting to P8.5 billion from July 1, 1989, to March 16, 1999.

he development of the Las Piñas-Parañaque Critical Habitat and Ecotourism Area (LPPCHEA), a 175-hectare area considered as the “last coastal frontier” or the “last natural bastion in Metro Manila”, will be getting a muchneeded financial boost.

The Tourism Infrastructure and Enterprise Zone Authority (Tieza) board of directors has approved a budget of P45 million for the conservation of LPPCHEA, including the construction of the Wetland Center, Birdhives, Boardwalk and View Towers at the Long Island, Sen. Cynthia A. Villar, chairman of the Senate Committee on Environment and Natural Resources told participants of the First National Biodiversity Congress on Monday.

In her keynote speech, the senator added the Department of Environment and Natural Resources (DENR) has also appropriated P10 million for the construction of the Nature Hall and Boardwalk at the Freedom Island and the long island and the installation of electricity and water. Villar’s Social Institute for Poverty Alleviation and Governance will construct the Visitors Centre.

LPPCHEA was declared as a critical habitat in 2007 by Presidential Proclamation 1412.

It is also on the Ramsar List of “Wetlands of International Importance”, and the sixth designated as such in the Philippines, alongside the Tubbataha Reefs National Marine Park in Sulu; the Agusan Marsh Wildlife Sanctuary; the Naujan Lake National Park in Oriental Mindoro; the Olango Island Wildlife Sanctuary in Cebu; and the Puerto Princesa Subterranean River National Park in Palawan.

According to Villar, LPPCHEA is a combination of many natural wonders in one area—a bird sanctuary, wetland and mangrove forest.

“It hosts 84 species of wild birds, and that includes three endangered species: Black-Winged Stilt, Chinese Egret and the Philippine Duck. Its mangrove forest covers 36 hectares, which, according to a study conducted by the National Fisheries Development Institute, is ‘the hot spot for spawning in the Eastern part of Manila Bay’ where the volume of [fish] eggs laid is highest”, she said.

Villar said she is actively helping to protect and promote LLPCHEA as an ecotourism destination in Metro Manila.

The DENR’s Biodiversity Management Bureau (BMB) considers LPPCHEA crucial to the protection and conservation of urban biodiversity.

“After successfully protecting

T

By Joel R. San Juan

In a 44-page decision penned by Associate Justice Marvic Leonen, the 15-man High Tribunal held that the trial court should have been cautious in coming out with such a ruling since it would entail release of billions in public funds.

“The Regional Trial Court should have been more prudent in granting the immediate execution, considering that the execution of the judgment award involves the payment of almost P8.5 billion in public funds.

As previously discussed, there was no legal basis to grant the back payment of additional Cola and AA to Napocor personnel from July 1, 1989, to

@jrsanjuan1573

March 16, 1999,” the Court ruled.

The Court ruling stemmed from the petition filed by the National Power Board and the Department of Budget and Management (DBM) seeking the reversal of the RTC in Quezon City Branch 84’s November 28, 2008, decision, its joint order dated March 20, 2009, and writ of execution dated March 23, 2009, that all granted the petition for mandamus filed the president of the Napocor Employees Consolidated Union (Necu) and the president of the Napocor Employees and Workers Union (Newu) before the RTC. The petition sought to direct the

Napocor, its president and board of directors to release and pay the Cola and AA to all Napocor employees.

It can be recalled that on August 21, 1989, Congress enacted Republic Act 6758, or the Compensation and Position Classification Act of 1989, to standardize compensation and benefits of public employees, effective July 1, 1989.

The law applied to all positions, whether appointive or elective, including those in government-owned and -controlled corporations.

It also provided that all allowances and other additional compensation, not otherwise stated, “shall be deemed included” in the prescribed standardized salary rates.

However, Necu and Newu insisted

that their Cola and AA from July 1, 1989, to December 31, 1993, were not factually integrated into their standardized salaries.

On November 28, 2008, the RTC rendered its decision in favor of Necu and Newu.

According to the trial court, the determination of whether the Cola and AA had been factually integrated was already resolved when the Napocor Committee certified that the Cola and AA of the employees from July 1, 1989, to December 31, 1993, were not included in their standardized salaries.

On April 14, 2009, the Office of the Solicitor General (OSG) filed a very urgent plea for a TRO to enjoin the implementation of

The Regional Trial Court should have been more prudent in granting the immediate execution, considering that the execution of the judgment award involves the payment of almost P8.5 billion in public funds. As previously discussed, there was no legal basis to grant the back payment of additional Cola and AA to Napocor personnel from July 1, 1989, to March 16, 1999.”—SC the trial court’s November 28, 2008, decision.

Thus, in a resolution dated April 15, 2009, the SC issued a temporary restraining order (TRO) against the writ of execution until the case was brought again before the high court following the trial court’s ruling on the main petition.

The Court held that “money claims and judgments against the government must first be filed with the Commission on Audit [COA].”

“Trial courts have already been strongly cautioned against the issuance of writs of execution in cases involving the disbursement of public funds in Supreme Court Administrative Circular 10-2000,” it added.

The SC also ruled that Cola and AA of the employees were integrated with the salaries of the employees after the promulgation of RA 6758.

“Republic Act 6758 remained effective during the period of ineffectivity of DBM-CCC [Department of Budget and Management-Climate Change Commission] 10. Thus, the Cola and AA of Napocor officers and employees were integrated into the standardized salaries effective July 1, 1989, pursuant to Section 12 of RA 6758,” the SC said.

By Jonathan L. Mayuga @jonlmayuga

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it from various threats, including reclamation, we are now working to letting other people see and experience the natural biodiversity in LPPCHEA as an ecotourism destination.

We recently had the groundbreaking for building the Las Piñas-Parañaque Wetland Park at LPPCHEA,” she said.

Villar said she envisions LPPCHEA to be the premier learning environment for urban wetlands in the Philippines.

“We are doing our best also to make it a model of sustainable ecotourism at its best,” she said.

Villar said LPPCHEA is now a venue for regular environment-related events and activities. “What we have been doing at LPPCHEA, I can say, is a good working example of how biodiversity protection or conservation of landscapes and seascapes can help communities, such as fisherfolks who get their daily sustenance and livelihood from LPPCHEA and the nearby barangays, which are protected by the threat of flooding. And now, it offers sustainable tourism opportunities.”

In her speech, Villar underscored the need to enhance information, education and communication campaign for the protection of the country’s rich biodiversity to “create awareness that, while biological diversity offers tremendous value to present and future generations, the number of species, is also being significantly reduced due to our own activities or doing.”

She said for a country like the Philippines, repercussions of biodiversity loss are tremendous.

The Philippines is one of the 17 megadiverse countries in the world or the world’s top biodiversity-rich countries, which host two-thirds of the Earth’s biodiversity and contain about 70 percent to 80 percent of the world’s plant and animal species.

The Philippines ranks fifth in terms of number of plant species and home to 5 percent of the world’s plants or about 10,000 to 13,000 species of plants described and recorded globally, she said.

The Philippines is also fourth in terms of bird endemism, fifth in mammal and reptile endemism; and it has the second-highest seagrass diversity in the world.

Villar underscored the importance of enhancing protection mechanism offered by the National Integrated Protected Areas System (Nipas) Act. There are currently 240 protected areas, but only 13 are backed with legislation.

Villar’s sponsored Expanded Nipas bill, which seeks to add 92 protected areas on the list that are covered by law, passed third and final reading in the Senate on Monday.

Senate probers to subpoena MRT 3 contractor

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enate probers looking into the recurring Metro Rail Transit 3 (MRT 3) breakdowns are set to serve a subpoena to compel a “noshow” maintenance contractor to appear at the next hearing of the Committee on Public Services inquiry into the MRT 3 mess, that inconvenience thousands of daily commuters with frequent system breakdowns.

Asserting the urgency to address the problem, Sen. Grace Poe, who chairs the ongoing inquiry, confirmed on Tuesday the committee has prepared the subpoena for Marlo de la Cruz of Busan Universal Rail Inc. a known ally of Liberal Party stalwarts who headed the then-Department of Transportation and Communications.

Poe told reporters the committee is also inviting former Transportation Secretaries Manuel A. Roxas II and Joseph Emilio A. Abaya to help shed light on the issues even as the Senate is already “preparing to render a partial report” of its find-

ings from the previous hearings on the MRT 3 breakdowns.

The senator assured she is not inclined to make prejudgments, as her priority is to ensure commuters are safe.

“Ayoko muna maghusga; ang gusto ko ay masiguro ang safety ng MRT train riders.”

Poe added: “There are still a lot of questions that remain unanswered, like who is this Marlo de la Cruz whose name keeps popping up? The Office of the Senate Sergeant-atArms (OSAA) failed to serve last Friday, May 19, 2017, the subpoena ad testificandum issued by this Committee, and approved by the Senate President, on Mr. Marlo de la Cruz for the reason that Mr. de la Cruz does not reside in the address indicated.”

The address of de la Cruz, she said, was “sourced from the General Information Sheet [GIS] that his company, PH Trams, submitted to the Securities and Exchange Commission [SEC].”

The senator reported that, based on the OSAA return on the service of the

subpoena, the house with that address was previously registered under the name of Wilfredo de la Cruz who, she said, was believed to be “Marlo’s brother”.

“My initial sense on this is on Marlo de la Cruz’s apparent propensity to trifle with official government rules, be it on the submission of accurate information on the GIS as required by law or on compliance and respect with the provisions of the Antigraft and Corrupt Practices Act,” she said.

The senator revealed receiving a letter from Leynes-Lozada Law Office, who acts as counsel of de la Cruz in his Sandiganbyan case involving alleged culpability surrounding the MRT 3 maintenance contract anomalies. Poe said a member of the law firm “advised the committee on the propriety of compelling the attendance of his client in this legislative inquiry invoking the sub judice rule as there is already a pending case against his client; and his client’s right against self-incrimination.” Butch Fernandez

Agriculture/Commodities BusinessMirror

news@businessmirror.com.ph

Editor: Jennifer A. Ng • Wednesday, May 24, 2017

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Govt sees onion supply glut this year

By Jasper Emmanuel Y. Arcalas

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@jearcalas

he Philippines may no longer have to import onion, as the government’s latest assessment indicated that there would be surplus in output this year, according to the Bureau of Plant Industry (BPI).

BPI OIC-Director Dr. Vivencio R. Mamaril told the BusinessMirror that, based on the agency’s assessment, the current onion production is “more than enough” to meet domestic demand.

“We only harvest onion once a year, but this year we will have a bumper harvest. What I can say is that we have not issued any import permits since December 31,” Mamaril said in an interview last week.

“So, if you will ask me as of this moment, I’ll say that we are not going to import onion,” he added.

However, Mamaril said the BPI is set to hold another meeting with onion farmers and traders before June to determine whether the Philippines would need to import later this year.

“During the meeting we assess the farmers’ harvest, we compute their total harvest for the year and compare it with the data we have on the volume of onion consumed

by the country. In our previous meeting, there was no shortfall,” Mamaril said.

The country’s onion production in the first quarter of 2017 expanded by 53.71 percent to 129,410 metric tons (MT), from 84,190 MT recorded last year, according to the Philippine Statistics Authority (PSA). The first quarter production is the largest recorded by Filipino farmers in more than a decade.

“A 53.71-percent expansion in onion production was recorded during the reference period. This was traced to the increases in harvested areas in Nueva Ecija and Nueva Vizcaya as a result of seed distribution program of the [government],” the PSA said.

“Higher price, usage of highyielding varieties and control of root rot caused by thrips contributed to higher production in Ilocos Sur,” it added.

PSA data also showed that the country’s onion output during the

January-to-March period has already surpassed the 2016 production of 122,600 MT. Earlier, Department of Agriculture (DA) Region 3 Officer in Charge-Director Roy M. Abaya said Central Luzon, which accounts for more than half of the country’s total onion output, has recovered from the devastation caused by the armyworm infestation last year.

This allowed the harvestable area in the region to expand to 11,000 hectares this year.

“Production this cropping season is much better, much bigger compared to last year. Last year’s output was greatly slashed by armyworm infestation, which affected 5,000 hectares,” Abaya told the BusinessMirror.

“So, now only less than 500 hectares planted with onion are affected by armyworms. The DA expects harvestable area to reach 11,000 hectares, with yield averaging 12 MT to 14 MT per hectare,” he added.

Central Luzon usually accounts for half of the country’s onion production.

The DA allows the private sector to import onions whenever there is a shortfall in local production.

Last year the BPI, an attached agency of the DA, allowed the importation of as much as 16,500 MT of white onions.

As of December 2, government data showed that private traders brought into the country 28,442.75 MT of yellow onions and 23,951.80 MT of red onions.

Learning to grow vegetables from SM Foundation’s program

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rom north to south, SM Foundation is teaching vegetable farmers the techniques of growing their own crops sans the use of pesticides, the utilization of organic fertilizers, seeds selection and drip irrigation.

Through the Kabalikat sa Kabuhayan (KSK) Farmers’ Training Program, farmer-participants are maximizing the yield of their farmlots not only for their daily consumption but also to become entrepreneurs; others banding together to set up cooperatives to be able to compete with big business who are vegetable suppliers in supermarkets. Indeed, the training they received has opened new opportunities for them to earn a living.

Recently, Batch 131 of KSK Urban Farmers’ Training Program in Baguio City held their Harvest Festival and Graduation ceremony. Fifty-nine participants from the Manuel Quezon Elementary School and Happy Hallow National High School finished the season-long training in partnership with HarBest Agribusiness Corp., SM Baguio, SM Supermarket Baguio and DSWD-CAR SLP and 4Ps. A harvest festival in Barangay Aliwekwek, Lingayen, Pangasinan, was also held early this month as Batch 127 Kabalikat sa Kabuhayan of SM

Baguio City

Foundation completed their training. Among the crops harvested were eggplant, gourd, sweet flavor cantaloupe, brilliant golden honeydew and Diana variety golden watermelon.

Going south, 101 participants in the farmers’ training program held their harvest festival in Zamboanga City Zamboanga City. The program, conducted in partnership with Harbest Agribusiness, Go Negosyo, DSWD, the DA and the local government of Zamboanga City, aims to ensure food sufficiency and help spur the socioeconomic development in the city.

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Wednesday, May 24, 2017

The World BusinessMirror

www.businessmirror.com.ph

Much-anticipated Ariana Grande concert ends in blood, horror M

ANCHESTER, England—A night highly anticipated by Ariana Grande fans ended in blood and terror, after the police said a suicide bomber detonated explosives at the Manchester Arena.

At least 22 concertgoers were killed and about 60 others were wounded in the Monday night bombing, with six area hospitals treating the victims by Tuesday morning. Shaun Hunter was with his daughters, Eva, 10, and Ruby, 12, who were wearing kitten ears like the star of the show, when the house lights went on. He called the rush of concertgoers after the explosion “a stampede”.

“I saw one bloke carrying his daughter. She was bleeding,” Hunter told The Times of London.

Andy Holey, who went to the arena to pick up his family, said the blast threw him some 30 feet through a set of doors.

“When I got up and looked around there was about 30 people

scattered everywhere, some of them looked dead, they might have been unconscious but there was a lot of fatalities,” he said.

The police gave no information about the attacker but said they were working to determine if there were any accomplices. Some of the dead were children, they said. Grande, who had just left the stage, was unhurt, taking to Twitter to say: “From the bottom of my heart, I am so, so sorry. I don’t have words.” Social media carried messages from families concerned about missing loved ones.

Ellie Ward, 17, made his way out of the arena after the blast, and found her 64-year-old grandfather, who had been waiting for him when the explosion happened.

“He said he only realized what had happened when he felt the side of his head and it was bleeding,” the younger Ward told The Guardian newspaper.

“He’s OK but he’s cut his cheek,” she said. “They said he had severed an artery. A lot of glass shattered on him.”

“Everyone was screaming and running,” Robert Tempkin, 22, told The Times. “There were coats and people’s phones on the floor.

People just dropped everything.”

Elena Semino and her husband were waiting by the arena ticket office for her daughter when the explosion went off.

“My husband and I were standing against the wall, luckily, and all of a sudden there was this thing,” she told The Guardian. “I can’t even describe it. There was this heat on my neck and when I looked up there were bodies everywhere.”

Despite wounds to her neck and a leg, Semino dashed into the auditorium in search of her daughter, while her husband, who had only a minor injury, stayed behind to help an injured woman. She found her daughter Natalie, 17, and her friends safe. AP

THE police guard close to the Manchester Arena in Manchester, Britain, on May 23, a day after an explosion. An apparent suicide bomber set off an improvised explosive device that killed over a dozen people at the end of an Ariana Grande concert, Manchester police said on Tuesday. AP

Trump administration sending Congress $4.1-trillion budget

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ASHINGTON—President Donald J. Trump is sending Congress a $4.1 trillion spending plan that relies on faster economic growth and steep cuts in a range of support programs for low-income individuals to balance the government’s books over the next decade.

The proposed budget, for the fiscal year that begins on October 1, was being delivered to Congress on Tuesday, setting off an extended debate in which Democrats are already attacking the administration for trying to balance the budget on the backs of the poor. Lawmakers from both parties have said major changes will be needed as the measure moves through Congress.

The proposal projects that this year’s deficit will rise to $603 billion, up from the actual deficit of $585 billion last year, But the document says if Trump’s initiatives are adopted the deficit will start declining and actually reach a small surplus of $16 billion in 2027. However, that goal depends on growth projections that many private economists view as overly optimistic.

The government hasn’t run a surplus since the late 1990s when a budget deal between Democrat Bill Clinton and congressional Republicans combined with the longest US economic recovery in history produced four years of black ink from 1998 to 2001.

During the campaign, Trump attac ked t he wea k economic growth of the Obama years, and pledged that his economic program would boost growth from the lackluster 2-percent rates seen since the recovery began in mid-2009.

Trump’s new budget is based on sustained growth above 3 percent, sharply higher than the expectations of most private economists.

“The president believes that we must restore the greatness of our nation and reject the failed status quo that has left the American dream out of reach for too many families,” the administration said in its budget, which was titled “The New Foundation for American Greatness”.

Planned cuts

ACCORDING to budget tables released by the administration, Trump’s plan cuts almost $3.6 trillion from an array of benefit programs, domestic agencies and war spending over the coming decade—an almost 8-percent cut— including repealing and replacing Obama’s health law, cutting Medicaid, eliminating student-loan subsidies, sharply slashing food stamps, and cutting $95 billion in highway formula funding for the states. Cuts to a popular crop insurance program have already landed with a thud.

A program designed to move people receiving Social Security disability payments back into enter the work force is politically toxic, as well. Food stamp cuts would drive millions from the program. Administration officials defended these measures as a way to reduce government support they contend is keeping millions of Americans out of the work force and, thus, reducing economic growth.

“We need people to go to work,” W hite House Budget Director Mick Mulvaney told reporters at a briefing on Monday. “If you are on food stamps, we need you to go to work. If you are on disability and you should not be, we need you to go back to work.”

Trump’s plan projects that the boost in economic growth it will engender will result in more than $2 trillion in unspecified deficit savings over the coming decade from “economic feedback”, a major component in achieving the program’s pledge of achieving balance by 2027.

Domestic initiative

THE budget does feature one major new domestic initiative— offering paid parental leave at a projected cost of $25 billion over the next decade. The new program has been championed by Trump’s daughter, Ivanka.

Trump would keep campaign pledges to leave core Medicare and Social Security benefits for the elderly alone but that translated

into even deeper cuts in programs for the poor, such as Medicaid and food stamps.

Med ica id, t he gover nment insurance program for the poor and many disabled A mer icans, would be cut by more than $600 bil lion over 10 years by capping pay ments to states and g iv i ng gover nors more f le xibilit y to manage their rosters of Medicaid recipients. T hose cuts go on top of the repea l of Obamacare’s ex pansion of the program to 14 mil lion people and amount to, by decade’s end, an a lmost 25 -percent cut from present projections.

Likewise, a 10-year, $191-billion reduction in food stamps— almost 30 percent—far exceeds prior proposals by Capitol Hill Republicans. The food stamp program serves about 42 million people. Other cuts in Trump’s budget include reductions in pension benefits for federal workers, in part by requiring employees to make higher contributions. In agriculture, the proposed budget would limit subsidies to farmers, including for purchasing crop insurance, a move already attacked by farm state lawmakers.

March proposals

ON taxes, Trump promises an overhaul that would cut tax rates but rely on erasing tax breaks and economic growth to avoid adding to the deficit. It would create three tax brackets—10 percent, 25 percent and 35 percent—instead of the current seven, but specific details were left to further negotiations with Congress.

The new budget plan builds on Trump’s March proposals, adding details to his goal of boosting defense spending by $54 billion, a 10-percent increase, for this year, with that boost financed by an equal cut to nondefense programs.

Mulvaney said that part of the savings, listed in the budget as $1.4 trillion over 10 years, would come from a “two-penny plan,” which will cut nondefense discretionary spending by 2 percent each year over the next decade. AP

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

Gestures tell of friendship that toppled S. Korea prexy

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E OU L , S out h K ore a — A steely gaze from one woman. A slight, apologetic bow from another. On the first day of the biggest trial in South Korea in years, two small gestures reflect the state of a friendship that toppled a president.

Former South Korean President Park Geun-hye was a study in determination, as she strode into a packed Seoul courtroom on Tuesday to begin a trial that could send her to prison for life if convicted on the most serious charges.

She sat down and fixed her hard gaze on a spot in front of her. Park’s face betrayed no hint of whatever emotions roiled within, even as flashes exploded and a horde of cameras zoomed in for extreme close-ups that were piped to millions of curious South Koreans.

Moments later, a confidante linked to Park for four decades— and a woman whom prosecutors say Park colluded with to bribe, extort and leak government secrets—entered the courtroom.

Choi Soon-sil ducked her head, almost shyly, in Park’s direction before walking to the defendants’ table. Only one person separated them, yet, they exchanged no words while the cameras rolled.

As Choi’s eyes darted around the courtroom, Park’s stare did not waver.

They then had a chance to address the court. Park answered in calm, measured tones when asked for her address and occupation.

Choi sobbed as she answered the basic questions.

Park then offered a firm, short denial of guilt. Choi called herself a sinner, claimed Park had been framed in a conspiracy and declared her wish that the trial “truly frees former President Park of fault and lets her be remembered as a president who lived a life devoted to her country”.

This will play well with Park’s hardcore conservative base, which sees her as having sacrificed her private life to focus on the country, after her mother and then her dictator father were killed in

The World BusinessMirror

HK police arrest 21 Uber drivers in latest crackdown

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ONG KONG—Hong Kong police launched a fresh crackdown on Tuesday on Uber, arresting 21 drivers suspected of working for the ride-hailing giant in the Asian financial center.

It ’s t he l at e s t re g u l at or y headache for Uber, which already is fighting a similar case in Hong Kong.

The drivers were arrested in an undercover operation on suspicion of carrying passengers for hire and not having third-party insurance for their cars, Chief

Inspector Lau Tat-fai said.

Lau said the 20 men and one woman aged 21 to 59 were taken into custody and their vehicles impounded.

“I would like to emphasize that police are still continuing their enforcement action and I can’t rule out the possibility of more drivers

being arrested,” he told reporters.

Lau, who did not specifically mention Uber, said anybody who “assisted or instigated” drivers might also be legally responsible.

He called on people using smartphones to arrange rides to make sure that drivers have the proper vehicle hire permits. “ We a re e x t reme ly d i s ap pointed by the police enforcement today. We stand together with the 21 driver partners,” Uber said in a statement, adding that it would help them and provide legal support.

The San Francisco-based tech company said it has a ride-sharing insurance policy that complies with Hong Kong legal requirements and covers up to HK$100

million ($12.8 million) in liability.

“R ideshar ing shou ld not be a cr ime. Hong Kong is an inter nationa l cit y know n for its embrace of g loba l econom ic trends and new technolog ies b u t c u r r e nt t r a n s p o r t a t i o n reg ulations have failed to keep up w ith innovation,” it said.

In March a Hong Kong court convicted five Uber drivers on the same charges and fined them HK$10,000 ($1,284) after they were arrested by undercover police. The company said it would stand by the five drivers, whose sentences were suspended after they launched an appeal.

In 2015 police searched Uber’s Hong Kong offices and confiscated computers and documents. AP

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briefs Euro zone jobs creation picks up

BRUSSELS—A closely watched survey of business activity across the 19-country euro zone shows economic growth holding steady at a six-year high in May, while job creation has picked up to one of the highest levels in nearly a decade. Financial information company IHS Markit said on Tuesday its purchasing managers’ index—a broad gauge of economic activity—for the eurozone was unchanged at 56.8 in May. The survey is consistent with quarterly economic growth of 0.6 percent to 0.7 percent, higher than the first quarter’s 0.5-percent growth. AP

Explosions strike Syrian cities

BEIRUT—Syrian state TV is reporting that an explosion in the central city of Homs has killed several people and that government forces “destroyed” a truck bomb near the Damascus airport. The TV says the explosion in Homs occurred near the city’s power station but gave no further details. Earlier this week, opposition fighters had left the last rebel-held neighborhood in Homs, bringing the entire city back under government control for the first time in more than five years. AP

Cape Town imposes water restrictions

JOHANNESBURG—The South African city of Cape Town is instructing people to severely restrict water use because of the area’s worst drought in more than a century. The city, a major international tourist destination, says it is experiencing the impact of climate change and predicts little rain in the next three weeks. It wants daily water usage to be reduced to 26 gallons per person. The droughtstricken Western Cape province, which includes Cape Town, was declared a disaster zone on Monday by Helen Zille, the province’s premier. AP

Yemen officials confirm clashes

SANAA, Yemen—Yemeni security officials and tribesmen say US helicopters airlifted soldiers to the Arab country’s central Marib province, where they clashed with suspected alQaeda militants. The accounts followed a statement from the US Central Command saying that US forces killed seven members of al-Qaeda in the Arabian Peninsula during a raid in Yemen, early on Tuesday.

Tribal members say explosions were heard in the al-Sirim area in Marib, followed by helicopters and gunfire. The officials say there was also bombing in nearby Bayda province. AP

Activists: Bahrain police raid Shiite cleric’s town

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UBAI, United Arab Emirates—Bahrain police firing tear gas and shotguns entered a town on Tuesday morning, where a months-long sit-in has supported a prominent Shiite cleric who had his citizenship stripped by the government. At least one protester was killed and others were wounded, activists said.

Bahrain’s Interior Ministry earlier wrote on Twitter that the operation targeting Diraz was to “maintain security and public order.” It called the area a “haven for wanted fugitives from justice.”

It’s unclear who the raid was targeting in Diraz, home to Sheikh Isa Qassim. Authorities offered no other details.

Activists shared mobile-phone stills and videos showing youths throwing stones and climbing on an armored personnel carrier. Gunfire could be heard as white smoke from tear gas hung in the air. At least one protester was killed, said Sayed Ahmed Alwadaei, the director of advocacy at the Bahrain Institute for Rights and Democracy.

Activists shared images of other protesters suffering what appeared to be birdshot wounds.

The operation follows a Sunday court decision, giving Qassim a year’s suspended prison sentence and seizing assets belonging to him and his ministry. Two of his aides received similar sentences. AP

Wednesday, May 24, 2017

Protesters shout antiapprove conspiracy bill slogans during a rally in front of the National Diet building in Tokyo on May 23.

Placards read “No to conspiracy bill!!” AP

‘Conspiracy bill’ draws backlash in Japan over state powers

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O K YO — J a p a n’s l o w e r hou s e ap pro v e d a b i l l o n Tu e s d a y a l l o w i n g aut hor it ies to pu n i sh t hose found g uilt y of planning serious crimes, legislation that opponents say could be used to undermine basic civil liberties.

The proposed legislation, called the “conspiracy bill”, still requires upper house approval.

The government says it’s needed to fight terrorism and organized crime, especially before the Tokyo Olympics in 2020.

Lawmakers speaking in support of the legislation pointed to the explosion late Monday in Manchester, England, that killed at least 22 people, as a reason for backing the bill.

But thousands of Japanese have taken to the streets to protest what they see as the latest effort

to unduly increase police powers.

Opposition lawmakers referred to it as an “evil law”.

Japan’s history as a police state before and during World War II has made many here wary of granting the government powers that might impinge on personal privacy and other rights.

Hundreds of protesters rall ie d out s ide t he pa rl i a me nt building on Tuesday, shouting and waving signs and banners to voice their opposition.

“This will bind us so tightly. I wonder why the government and those in power need so much power over us?” said Chizuko Kurata, a protester in her 1970s.

A survey by the Kyodo News agency showed that public support for Prime Minister Shinzo Abe’s Cabinet fell slightly after the ruling coalition rammed the

bill through a committee hearing on Friday. There, opposition lawmakers shouted and sought to rip documents from the hands of the committee chairman, trying unsuccessfully to block the vote after having failed to win a vote of no confidence against the justice minister.

Kyodo said 77 percent of the 1,033 respondents polled said the government had failed to fully explain the need for the bill. Opinions on the bill were almost evenly divided, however, with slightly more opposed than in favor.

T he r u l i ng L ibera l Demo crats’ ability to force through legislation with help from its coalition partner, the Komeito, raises hackles in harmony-oriented Japan. The two parties intend to win full passage of

the bill during the current parliamentar y session, and debate in the upper house is likely to be ferocious.

Abe has argued that the bill is needed for Japan to ratify a United Nations treaty on international organized crime that took effect in 2003. But legal scholars say Japan’s criminal code already holds conspirators responsible for criminal acts and mandates punishments for preparing for such crimes.

“In Japan’s case, the police already have ver y broad powers of sur veillance. They have other broad powers related to c r i m i n a l i nvest i g at ion s a nd c r i m i n a l prosec ut ions,” sa id Lawrence Repeta, a legal scholar and director of the Japan Civil Liberties Union.

“To add even more at this point would really be overkill,” he said. AP

Crews cover collapsed tunnel at nuclear site

SPOK ANE, Washington— Workers this weekend finished installing a protective cover over a partially collapsed tunnel that contained radioactive waste on the Hanford Nuclear Reservation, the US Department of Energy said on Monday. The tunnel that contained highly radioactive wastes left over from production of plutonium for nuclear weapons partially collapsed on May 9, prompting evacuation of nearby workers.

The hole left by the partial collapse was filled with more than 50 truckloads of soil the next day. The Energy Department has said no workers were injured and no airborne radiation escaped into the environment as a result of the incident. The agency said the cover will provide additional protection while work continues to find a permanent fix. AP

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The Regions

Wednesday, May 24, 2017 • Editor: Efleda P. Campos

BusinessMirror

news@businessmirror.com.ph

Biz group joins Tagum City budget planning

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By Manuel T. Cayon

@awimailbox Mindanao Bureau Chief

AVAO CITY—The business community in Davao del Norte’s capital city scored a sectoral victory when it was granted a slot in the city’s budget planning, the first for the sector, after the city government itself helped the businessmen form their own chamber two months earlier.

Over the weekend, the business representatives took the cudgels of the chamber to articulate their needs for inclusion in the budget planning when the city government held its Income Forum on May 19 and 20 in Davao City.

The forum is an exclusive roundtable assembly on the budget planning on income estimates of the local government for the year 2018. While it remains exclusive, the city government has adapted the expanded version of the meeting to observe the bottom-up budgeting process.

The forum has already allowed representation from the civil-society organization.

The city information office said Virgilio Agunod, a member of the Tagum City Chamber of Commerce, “took the opportunity of raising the concerns of his fellow

businessmen, especially those that relate to their welfare”.

With him were representatives from the Tagum City Bankers Association and the Filipino-Chinese Chamber of Commerce.

The forum estimated the revenue of Tagum City to continue breaching the P1-billion mark at P1,319,335,455 next year.

The amount would be 5.8 percent higher than the P1,246,440,370 target income for 2017.

The participants in the Income Forum also constitute Tagum City’s Local Finance Committee, and were joined by representatives from civil-society organizations, the City Budget Office, the City Treasurer’s Office and the City Economic Enterprises Office.

Mayor Allan Rellon said his administration’s advocacy for an

“open government” is for the private sector “to pitch in their ideas and concepts in the planning and decision-making activities of the local government”.

Only in March this year when business leaders attended the first city government-hosted Tagum City Business Conference at Big 8 Corporate Hotel.

In that forum, business leaders emphasized investments on sustainable ecotourism “as it is an untapped economic driver that will benefit not only the small businessmen, but also the community, as well”.

“Our human capital and our untapped social capital are our assets,” said Rosanna Tuason Flores, CEO and president of Hijo Resources Corp.

Lorenzo Rubinos Sr., chairman of Tagum-based LYR Group of Cos., batted for scaled-up government support for micro-, smalland medium-scale entrepreneurs to pump up “the lifeblood of the city’s economy”.

Rellon earlier announced bigticket projects to include the construction of the city’s Historical and Cultural Center to house the city museum, an improved city library, a cultural theater, traffic signalization project, a Module-3 public transportation terminal, sanitary landfill, honey-bee production facility and a fishing village.

He also presented the plans for building a railway project and an alternative airport site in the city to be funded by the national government.

DRYING TOBACCO

Jaime Jamenez, a tobacco farmer from Ilocos Sur, checks tobacco leaves drying in his barn. Jamenez said he spent 40 years of his life planting tobacco to support his family. LAILA AUSTRIA

Tarlac celebrates 144th founding anniversary

By Joey Pavia

Correspondent

T

ARLAC CITY—The province of Tarlac is celebrating its 144th founding anniversary this week. Several activities have been lined up from May 22 to May 28, the foundation day itself.

This year’s celebration, with the theme “Ganda at Galing...Natural Tarlac”, will be the first under the leadership of Gov. Susan Yap. Yap will lead the activities for the first Kanlahi Festival (Kanlungan ng Lahi), which will pay tribute to the different cultures and people that populate the province.

“It is about time to pay tribute to the different culture and people of our province. Through this KanLahi Festival, they will be properly recognized,” Yap said.

On May 28, 1873, the province of Tarlac was formed from the municipalities of Zambales, Nueva Ecija, Pampanga and Pangasinan.

Tarlac first celebrated its founding anniversary in 1999, when

then Gov. Jose Yap tapped historians to research when the province was established.

“We hope this celebration will inspire our fellow Tarlaqueños to promote our tourism industry and be proud of their heritage,” Yap said.

Activities lined up for the celebration on May 22 are a Mass, a motorcade, food festival, organic white-rice launching, coloredchalk competition and a battle of the bands.

Bloodletting, a medical and dental mission, a dog show and “Tarlaqueños Got Talent” on May 23; a jobs fair, first Yap intertown basketball cup, pageant night of the Mutya ng Lalawigang Tarlac and a fireworks display on May 24.

A car-dr ifting show, Tarlac national painting contest and sayaw-hataw dance contest will be held on May 25. Palaro ng Lahi, legal aid, street-dancing competition, a variety show and a fireworks display will be held on May 26.

Schedued for May 27 are a color

fun run, motor show and car display, a grand foat parade, saya keng dalan street party, Miss Earth Fashion show and a fireworks display.

On foundation day itself, the provincial government will commemorate National Flag Day and awarding ceremonies of the first Yap motocross and Mister Tarlac.

There are 16 local beauties representing the lone city and 13 municipalities that will vie for the title Mutya ng Lalawigang Tarlac.

They are Princess Nicolas of Camiling, Naoimi Jose Merl Llano of Mayantoc, Jessa May Tiamzon of Paniqui, Jan Lian Claire Domingo of Tarlac City, Marriane Nicole Lenon, Angelica Pacunayem, Patricia Getty Capiral of Capas, Jaynee Adelinef Manguerra of Anao, Marianette Gatchalian of Ramos, Diana Rose Valdez of Pura, Jezreel Kaye Capiral of Concepcion, Debora Chantengco of Santa Ignacia, Ruth Natalie Caledas of Victoria, Nicole Ronquillo also of Capas, Krizzia Mae Lazo of San Jose and Sandrianne Esquiola of Concepcion.

Cebu Digital Innovation Summit set on June 2-3

C

E B U B u s i ne s s Mo nt h (CBM) is celebrating its 21st year as the metropolitan’s business festival.

The Cebu Chamber of Commerce and Industr y (CCCI), through this year’s working committee under the leadership of Charles Kenneth Co and Nimrod Quiñones, has lined up an exciting series of activities for the industry’s best.

Among the activities is the Cebu Digital Innovation Summit, a twoday convention for the business sector, academe, information and communications technology (ICT) councils, local government units and non-governmental organizations, is set to happen on June 2 and 3 at Summit Galleria Cebu.

This gathering offers an opportunity for its participants to learn, interact, network and collaborate for the continuous growth of the industry on a national scale.

Special stakeholders come in the form of the newly organized Innovation Council of Cebu, envi-

sioned to seek, cultivate, sustain and promote Cebu as an Innovation Island through adaptive education and ICT-based advocacies.

The latter includes nurturing a culture of innovation throughout Cebu, including start-ups, developing an ICT-based entrepreneurial ecosystem and fostering innovation and emerging technologies. Inspired by CBM 2017’s theme “Stepping Up Technolog y,Entrepreneurship and Productivity for the Upliftment of Cebu”, the event will be an avenue to provide a knowledge-sharing platform on how digital innovation is critical for one’s success, how to prepare one’s company for the constant developments in technology and disruptive innovation.

CBM 2017’s ICT and BPM Chairman Christian Paro-an, and Cochairman Michael Cubos, said local and international experts have been invited to discuss “the opportunities and challenges created by adopting new business

technology trends, as well as their impact on the ICT/BPM industry, particularly among MSME’s of today”.

Highlights expected during the summit are the keynote address of the Information Secretary Rodolfo A. Salalima; a talk on “Innovations in the World” by Google’s CEO for Marketing Solutions Platform/ Tech Innovation Jorge Cohen; a panel discussion on “Going Digital” by First Circle, Google’s Ian Macariola, PLDT SME Nation and Payoneer Philippines’s Country Manager Miguel Warren.

Participants will also be hearing from CCCI President Melanie Ng, and from CBM 2017’s Overall Chairman Charles Kenneth Co and ICT and BPM Cochairman Michael Cubos, along with a roster of other speakers and resource persons.

The event will feature the official induction of the newly formed Innovation Council of Cebu, a groundbreaking collaboration of forward-thinkers and creative minds. Charles R. Pepito

ExportUnlimited BusinessMirror

ASEAN Director General for Operations Ambassador Marciano Paynor Jr. (fourth from left), with Department of Trade and Industry’s Undersecretary for Trade and Investments Promotion Group and Asean Committee on Business and Investments Promotion Chairman Nora K. Terrado (third from left), lead the ribbon-cutting ceremonies of the Taste Asean exhibit at International Food Exhibition Philippines held at the World Trade Center in Pasay City on May 19. Joining them are (from left) Department of Agriculture Assistant Secretary Leandro Gazmin, European Union Ambassador Franz Jessen, Singapore Ambassador Kok Li Peng and Citem Executive Director Clayton Tugonon.

By Kathleen Bondoc

Office of the Undersecretary for Trade and Investments Promotions Group Department of Trade and Industry

T

HE Philippines, through its Department of Trade and Industry’s Center for International Trade Exhibitions and Missions (DTICitem), highlighted top Asean food brands during the International Food Exhibition Philippines (Ifex) at the World Trade Center and Philippine Trade Training Center in Pasay City from May 19 to 21.

Dubbed as Taste Asean, the 11th edition of Ifex Philippines highlighted the leading food products and ingredients from

10 Asean countries with their dynamic and visually enticing food presentations of native and iconic delicacies. The exhibit

also featured the contribution of Southeast Asia to the vibrant global food market.

With Asean’s focus on inclusive growth, the DTI noted the Philippines’s efforts in helping micro, small and medium enterprises (MSMEs) in accessing global markets through trade exhibitions, such as Ifex Philippines.

“More than just a trade show, Ifex served as a trade platform for MSMEs to meet with trade buyers and potential partners.

We also aim to further position the Philippines as part of a region that produces high-quality food products for consumers around the world,” DTI Undersecretary for Trade and Investments Promotion and Asean Committee on Business and Investment Promotion Chairman Nora K. Terrado said.

Set at the ex hibition’s Inter nationa l Ha l l, Taste A sean, with its 21 exhibitors, featured t ropica l f r u its, veget ables,

fresh and processed seafood, s auce s a nd cond i me nt s a nd other food products that continue to br ing A sean brands to the globa l market.

A s ide f rom t he 10 A se a n member-states, partners and exhibitors, from the European Un ion , C h i n a , Sout h K orea , Taiwan and Turkey also participated in the event.

Tagged as Asia’s ethnic food a nd ing red ients show, Ta ste Asean@Ifex is among the business events developed by the DTI under the Asean Committee on Business and Investment Promotion an interagency committee created to assist the AseanNational Organizing Council. It developed events and activities that complement and reinforce the country’s priority deliverables for Asean 2017, highlighting the promotion of inclusive, innovation-led growth.

The Philippines chairs the Asean Summit this year.

Uplifting PHL economy, the halal way

By Raison D. Arobinto DTI-EMB’s Halal Section

A

S potentials of the halal industry rise at the global market, the Philippines is making sure of sailing with it and taking its advantage to uplift the Philippine economy by developing and promoting the halal business, and contributing to the government’s programs in alleviating poverty by providing economic opportunities to marginalized sectors through the dividends of the halal industry in the country.

With the passage of Republic Act (RA) 10817, otherwise known as “Philippine Halal Export Development and Promotion Act of 2016”, the Philippines is at an advantage

of taking the opportunity in the $2.6 trillion worth halal industries worldwide (estimated to rise by $10 trillion in 2030). In addition, and as the Asean Economic Community (AEC) kicks in, products exchange and trade among Asean states are becoming closer and with less barriers. Recognizing the fact that Muslim consumers are growing at a constant, even higher pace, understanding halal both as a business venture and as a component of the Islamic religion and culture is needed, especially among non-Muslims who are venturing in the halal industry.

To this end, the Department of Trade and Industry-Export Marketing Bureau (EMB) as the head of the Halal Export Board Secretariat under Republic Act (RA) 10817,

invited relevant government agencies and some concerned private sectors and non-governmental organizations to participate to the seminar on halal fundamentals held at the Crowne-Plaza Galleria, Quezon City, on April 20.

Participants were able to appreciate the nature and components of halal, as well as its cultural and religious foundations and were able to put in context halal dynamics as practiced in the Philippines.

Trade Secretary Ramon M. Lopez attended the event and expressed optimism about the future of the halal industry in the country. In his remarks, Lopez was quoted as saying that part of the agenda of President Duterte’s visit to the Middle East recently

was to bring investment for the country and the halal industry is one possible area to be explored to boost the economy and provide job opportunities to poor regions in the country.

EMB Director Senen M. Perlada, head of the Halal Export Board Secretariat, said “you can never go wrong with halal,” echoing the comprehensive coverage of halal from food to nonfood products and services, including its health benefits as a way of life.

The implementing rules and regulations of the Philippine halal law are at the final stages and the national strategic planning for the development and promotion of the halal industry is expected to kick off this month.

A9

MARKET DEVELOPMENT UPDATE

Enhancing connectivity in Asean Conclusion

By Alma Argayoso TSO, PTIC Jakarta

W

HILE the initiative has stalled for some time, the interest in linking Davao and General Santos to Bitung in North Sulawesi has remained high, given the economic importance of this project to the two countries.

At its heart, the Davao/General Santos-Bitung route will connect two major islands—Mindanao and Sulawesi—and allow local businessmen to engage in international trade and access new markets. The study of USAID Philippines on “Advancing Competitiveness in the Philippines”, or the Compete Project, said Indonesian entrepreneurs can tap the Mindanao market, which has a population of 21.5 million. Likewise, Filipino businessmen can access Sulawesi’s market of 17.5 million individuals.

The sea connectivity will also enhance economic and trade relations between the Philippines and Indonesia. Economic relations have been growing steadily over the last five years. Bilateral trade has increased at an average rate of 4 percent, from $3.624 billion in 2013 to $3.681 billion in 2015.

The DGB Roro shipping service will play a key role in this, bringing Mindanao and other dispersed and isolated areas in Sulawesi and the eastern part of Indonesia closer together. The sea route will facilitate a faster, easier and cheaper movement of goods and services between the two regions.

For the Philippines, the initiative will open up new trade and investment opportunities for businessmen in Mindanao. Entrepreneurs could pursue opportunities in the export/ import of raw materials and finished goods; joint production schemes (i.e. combining resources and production capacity to export to overseas markets), joint-venture agreements in agribusiness and manufacturing, tourism and education exchanges, among others.

For Indonesia, the importance of this sea linkage is in line with the

vision of President Jokowi (Joko Widodo) of developing the outer fringes of Indonesia, particularly the eastern part, and connect them with other markets to promote growth. The route will facilitate direct trade not only between the Philippines and Indonesia, but also serve as a transshipment option for cargoes originating from East Asia bound for Bitung, and vice versa.

In addition, this sea connectivity complements Indonesia’s ambition to become a global maritime fulcrum by maximizing the use of regional sea lanes to improve bilateral ties with its neighboring countries.

Indeed, the opportunities being offered with the opening of this new route will bring mutual economic benefits to the Philippines and Indonesia. The 50th founding Anniversary of Asean and the Philippines’s Chairmanship of Asean is an opportune time to launch this priority initiative, which demonstrates the Philippines’s commitment to advance the Asean Connectivity agenda. Further, it will show progress and credibility on the implementation of the Asean Roro Shipping Network and inspire greater use of international Roro shipping to help facilitate the movement of goods across the region, and thereby improve economic cooperation within Asean.

Kudos to the Philippines and Indonesia for pushing this initiative. I couldn’t be prouder for the members of the Interagency Task Force and the private-sector players who worked tirelessly to make this happen.

At the end of this month, during Widodo’s state visit to the Philippines, coinciding with the Asean and Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA) summits and, more important, the launch of the DGB Roro shipping service, it would be a good time to share Davao’s famous durian delicacy or eat tumpeng (cone-shaped rice surrounded by assorted Indonesian dishes served as a special dish to celebrate an important occasion) together with our Indonesian brothers and friends.

Cheers/Bersulang!

Oishi set to penetrate EU, ME markets at Ifex PHL

H

OMEGROWN Liwayway Marketing Corp. (LMC) is eyeing to tap new markets in Asia and beyond through its leading snack and beverage brand Oishi.

The Filipino company is now targeting the Middle East (ME) and European countries, revealed LMC Export Officer Joshua Laurens Kho, as it joined this year’s Ifex Philippines held at the World Trade Center Metro Manila and the Philippine Trade Training Center from May 19 to 21.

“We will be offering some of our new product lines, like the Oishi Fishda Fish Kropeck, a very iconic Asian snack, launched a year ago.

We also have the Bread Pan Whole Wheat, since most people nowadays are into healthier snacking,” he said.

“We also have Ube Pillows. Based on recent studies, the ube flavor is becoming a hit across the globe.

Our Smart C Dalandan Juice has a dalandan flavor that is uniquely Filipino. We will be showing our Coffee Powder, one of our newest product lines,” he added.

Without citing the exact amount of investment and time for the implementation of the planned export expansion to both regions, Kho said they are now working on it.

“We might be releasing our new packaging label for export only, which we are looking forward to come out this year,” he said. “However, we’ve still got a lot of things to do when it comes to complying with their package labeling in new markets.”

upcoming events

Compiled by Louise Kaye G. Mendoza

MAY 29

Time: 5 p.m.-9 p.m.

Event: Road to Slingshot: Startup Community Consultation and Meet-Up + MEDEF Visit

Venue: QBO Innovation Hub, G/F, DTI International Building, 375 Sen. Gil Puyat Avenue, Makati City

MAY 30-JUNE 2

Time: 8:30 a.m.-4 p.m.

Event: APEC 020 Summit and Expert Network Meeting Venue: Taipei International Convention Center, Taiwan

MAY 31-JUNE 4

PHL highlights Asean food brands in intl exposition

Editor: Efleda P. Campos • Wednesday, May 24, 2017

Event: ThaiFex-World Of Food Asia Venue: IMPACT Exhibition and Convention Center, Bangkok, Thailand

A10 Wednesday, May 24, 2017 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Govt must ensure ample supply of affordable rice

A

fter months of uncertainty surrounding the country’s rice supply-and-demand situation, the government finally announced last week its decision to buy rice from foreign private suppliers. The National Food Authority Council (NFAC), the interagency body vested with the power to decide on the timing and volume of rice importation, has also given its nod to the private sector’s initiative to buy 805,000 metric tons (MT) of rice via the minimum access volume (MAV) scheme. The announcement came after revelations that the NFA’s buffer stock had fallen to eight days’ worth of national consumption, nearly half of the 15 days buffer mandated by the Legislative-Executive Development Advisory Council (Ledac).

Days after the NFAC made its announcement, however, it has yet to determine the final volume of rice the government would buy via the so-called government-to-private (G2P) scheme. Cabinet Secretary Leoncio B. Evasco Jr. said the rationale behind this is to ensure that the purchases would be covered

by Republic Act 9184, or the Government Procurement Reform Act. As we go to press, the NFAC has yet to decide on the final volume of rice imports and when it would conduct the bidding.

It is now becoming more apparent that the National Food Authority (NFA) would not be able to build up a stockpile equivalent to 30 days of national rice consumption before the start of the lean season in July. It could take anywhere from one to two months for the rice imports to arrive in the country and this would depend on how fast the government would conduct the bidding and award the right to supply rice, as well as the origin of the imports.

The decision not to import rice undoubtedly benefited the farmers during the dry season harvest as traders in some areas were buying paddy rice for as much as P22 per kilogram. There is nothing wrong in favoring local producers because it is the obligation of the State to safeguard the livelihood of its citizens. But some members of President Duterte’s Cabinet seems to have conveniently forgotten or refused to recognize the nature of the Philippine rice industry.

Given its mandate, the NFA continues to act as the “big, bad wolf” to private traders because its intervention prevents price spikes, which could hurt producers or consumers. Until and unless this function is scrapped via the amendment of pertinent laws, this should not be swept under the rug or disregarded and should have been used to the government’s advantage.

For one, the Duterte administration should have embarked on massive palay-buying and raised the NFA’s support price to boost the food agency’s stockpile. This is cheaper than importing rice and would benefit more farmers. Also, importations should be timed to ensure that the price of unmilled rice during the dry season and main harvest in the fourth quarter would not go down. The announcement of the government’s decision to import rice last week would no longer affect rice farmers but it could have an impact on prices during the main harvest, particularly if the arrival of the imports via G2P and the MAV scheme are ill-timed.

It takes about three months to grow rice so the government would have ample time to estimate the possible shortfall in the country’s rice requirement.

Importation should be the government’s last resort, but if it is certain that local production would not be enough to support its citizens’ needs, then it should do what’s necessary to ensure the availability of affordable rice.

Since 2005

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

Are HMOs engaged in insurance business?

Dennis B. Funa

A

INSURANCE FORUM

re Health Maintenance Organizations (HMOs) engaged in insurance business? This question was squarely placed before the Supreme Court (SC) in Philippine Health Care Providers Inc. v. Commissioner of Internal Revenue (GR 167330).

The Court (First Division) at first ruled (June 12, 2008) that yes, HMOs are engaged in insurance business, and that the petitioner’s health-care agreement was in the nature of a nonlife insurance contract. However, in a motion for reconsideration, the Special First Division (resolution, September 18, 2009), but through the same ponente, reversed itself and ruled HMOs are NOT engaged in the business of insurance.

In two earlier cases, Blue Cross Healthcare Inc. v. Olivares (GR 169737, February 12, 2008) and Philamcare Health Systems Inc. CA (429 Phil. 82 [2002]), the SC ruled that a health care agreement is in the nature of a nonlife insurance policy. However, it was clarified in Philippine Health Care Providers Inc. (resolution) that those cases only involved the interpretation of health care agreements as contracts of adhesion, similar to insurance contracts which are also contracts of adhesion.

An HMO was first defined in 1995 through Republic Act 7875 (National Health Insurance Act of 1995), Section 4, (o), enumerating what health-care providers are “a health-maintenance organization,

which is an entity that provides, offers or arranges for coverage of designated health services needed by plan members for a fixed prepaid premium”. Among the pioneer HMOs in the Philippines are Health Maintenance Inc. (HMI) and Bancom Health Care Corp. (later renamed to Integrated Health Care Services Inc. (Intercare). HMI was first organized in 1965, but formally incorporated in 1991. Bancom was formed in 1974.

The SC applied the Principal Object and Purpose Test, as formulated in American jurisprudence, in reaching the said conclusion. The test is “whether the assumption of risk and indemnification of loss (which are elements of an insurance business) are the principal object and purpose

of the organization, or whether they are merely incidental to its business.

If these are the principal objectives, the business is that of insurance. But if they are merely incidental, and service is the principal purpose, then the business is not insurance”. In other words, if the main object is to provide health services rather than indemnity, it is not engaged in insurance business.

The “mere presence of risk would be insufficient to override the primary purpose of the business to provide medical services as needed, with payment made directly to the provider of these services. In short, even if [the] petitioner assumes the risk of paying the cost of these services, even if significantly more than what the member has prepaid, it nevertheless cannot be considered as being engaged in the insurance business”.

Before this test is applied, there is a need “to scrutinize the operations of the business as a whole, and not its mere components”. The operations of an HMO must first be characterized. It operates as “a prepaid group-practice health care-delivery system or a health-maintenance organization to take care of the sick and disabled persons enrolled in the health-care plan and to provide for the administrative, legal and financial responsibilities of the organization”. “Individuals enrolled in its health-care programs pay an annual membership fee, and are entitled to various preventive, diagnostic and curative medical services provided by its duly licensed physicians, specialists and other professional

technical staff participating in the group-practice health-delivery system at a hospital or clinic owned, operated or accredited by it.” Its medical services also provide for the following general health-care services: preventive, diagnostic and curative.

The Court cited Jordan v. Group Health Association (107 F.2d 239. D.C. App. 1939), which held Group Health Association should not be considered as engaged in insurance activities, since it was created primarily for the distribution of health-care services rather than the assumption of insurance risk. The Principal Purpose Test was also applied in California Physicians Service v. Garrison (28 Cal. 2d 790 [1946]) and Michigan Podiatric Medical Association v. National Foot Care Program Inc. (438 N.W.2d 350 [Mich. Ct. App. 1989]).

Moreover, other distinctions were also pointed out by the Court.

Applying Somerset Orthopedic Associates PA v. Horizon Blue Cross and Blue Shield of New Jersey (345 N.J. Super.

410, 785 A.2d 457 [2001]), it pointed out the main difference between an HMO and an insurance company is that HMOs undertake to provide or arrange for the provision of medical services through participating physicians, while insurance companies simply undertake to indemnify the insured for medical expenses incurred up to a preagreed limit.

Dennis B. Funa is the current insurance commissioner. He was appointed by President Duterte as the new insurance commissioner in December 2016.

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How Democrats could leverage Trump’s sinking presidency

A

nyone who thinks Donald J. Trump’s staggering, stumbling presidency is going to destroy the Republican Party really needs to remember what actually happened after Richard Nixon’s resignation in 1974.

Yes, Republicans were routed in the midterm elections that year and lost the presidency in 1976. But they recovered strongly in 1978 and 1980. It was the same story after the Iran-Contra scandal in late-1986, which severely hurt Ronald Reagan’s approval numbers, but didn’t even cost Republicans the White House in 1988. George W. Bush’s unpopular presidency wiped out the Republicans in 2006 and 2008...but then they rallied back sharply only two years later during Barack Obama’s mildly unpopular early presidency.

Voters have extremely short memories. But the effects of an electoral disaster caused by their temporary shifts can be enormously long-lived in

terms of policy, judges and energizing the opposition.

Legislation

First of all, the status-quo bias of the US political system means that it’s very difficult to pass anything major, but once something does pass, it’s hard to dislodge it. We may yet see a major Republican health-care bill pass during this Congress, but even if that does happen, much of the Affordable Care Act will survive. And that bill only passed because of George W. Bush’s massive unpopularity after the Iraq War and the recession that began in late-2007, leading to Democratic landslides in 2006 and 2008. Similarly, Jimmy Carter’s inept

presidency yielded the 1980 Republican landslide and Ronald Reagan’s big tax cuts and budget changes in 1981, much of which survived for a long time. The electoral reaction doesn’t last—Republicans stormed back in 2010, just as Democrats had done back in 1982. But the policy changes that couldn’t have happened otherwise persist.

Judges

What else lives on long after a landslide? Judges. The effects of Lyndon Johnson’s electorally disastrous Vietnam War lived until Supreme Court Chief Justice William Rehnquist, a Nixon appointee, died in 2005. Jimmy Carter’s failure to win a second term will live on as long as Justice Anthony Kennedy stays on the high court. And the effects of Bush’s Iraq folly and the Bush-era recession will last as long as Justices Sonia Sotomayor and Elena Kagan remain on the bench. Not to mention the dozens and dozens of lower-court judges that also matter quite a lot. Granted, not all shifts of partisan control of the White House are caused by incumbent ineptness (or even just incumbent bad luck).

But, when a party does give up the presidency unnecessarily, the effects are huge, even though the electoral punishment doesn’t last long.

Creating opponents And there’s a third long-lived effect.

We think of the Affordable Care Act as Barack Obama’s accomplishment, but it’s at least equally the achievement of a group of members of Congress. Five of them—Henry Waxman, George Miller, Max Baucus, Chris Dodd and Tom Harkin—were Watergate babies. That is, they were first elected to Congress in the 1974 Democratic landslide brought on by Richard Nixon’s scandal.

It’s impossible to know exactly how important the skills that these legislators had developed over the decades were to getting “Obamacare” over the finish line. Obviously, if they had never been elected, some other Democrats would have been the chairmen of House Energy and Commerce, Senate Finance and the other relevant committees. But I think most congressional observers would agree that their level of skill and expertise was unusually high, and it’s quite possible that they did make the difference on that bill (and several others over the course of their careers). And while some Watergate babies might have had congressional careers regardless of that scandal, it’s quite possible that some of them would not.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Duterte must tell farmers The problem with religion to ‘go addict over ADX’ Teddy Locsin Jr.

Free fire

Michael Makabenta Alunan

on the contrary

H

as anyone heard of ADX, which can be the figurative “opium of the masses” that President Duterte can inject into the lifeblood of small farmers as a sustainable economic adrenaline to jump-start the countryside and help wipe out rural poverty?

No need to weed out this grass? ADX is a sugarcane-like plant of the grass family of South American origins that was considered traditionally to have no value as you cannot extract sugar from it.

Being invasive as it can grow anywhere like a weed without fertilization, soil conditioner or water, it was considered a vegetative pest, but not anymore as scientists have found ways to maximize its use as feedstock for biomass fuel.

VL “Sonny” Domingo, national chairman of the Kapisanan ng Magsasaka, Mangingisda at Manggagawa ng Pilipinas Inc. (Kammmpi), reveals that “this ADX technology forms only part of the package of integrated high-end technologies that we have put together under what we call “Smart Farms” that consolidate small farmers into viable and sustainable farm businesses and thus achieve the benefits of economies of scale.”

Kammmpi Foreign Technical Consultant Alan Hayward showed pictures of ADX reed grass being much taller, stockier and sturdier than sugarcane plants. He said those huge ADX weeds can grow on any marginalized lands, without water or sunshine, and no fertilizers or soil conditioners. n Lazy poor man’s source of power? ADX is actually a good source of energy to widely disperse farmers in the rural areas, where bringing power through transmission and distribution lines are too costly and beyond reach.

Kammmpi’s Ka Sonny said ADX serves as the best fodder for biomass energy for rural electrification owing to the economics of extremely low costs of production.

“Imagine, you only plant almost once, and because of its high ratooning and high growth, you can harvest lazily every four months over the next 20 years,” he added.

It appears ADX can also sequester nitrogen from the air and convert it into fertilizer and survive from the little water vapor in the atmosphere and with its sturdy roots reach out deep into the moist earth underground.

H ay w a rd s ay s bio - e ne r g y plants, which feed on rice hulls that costs P2.50 per kilo, will now benefit more as current experimental local costs of ADX are much lower at only 50 centavos per kilo.

This means that the difference in cost margins can be passed on as additional income for the farmers.

Europe has now 30,000 hectares of ADX for its renewable biomass energy projects, but tropical countries, like Malaysia, show double yields and vegetation as ADX absorbs the high humidity in the air. n ADX for electrigation, pulp paper. And because it is now possible to build many minigasifiers to power deep-well water pumps in many arable lands that are rich in aquifers, farmers can now pump out ground water for irrigation. The same water on the rice fields seep back later into the aquifers.

This way, small farmers in marginalized areas can now avail themselves of pumped water for irrigation, without relying on government’s massive irrigation projects that are mostly extensions of big power water dams.

Hayward added it is easier now to produce ADX planting materin

ADX is actually a good source of energy to widely disperse farmers in the rural areas, where bringing power through transmission and distribution lines are too costly and beyond reach. Europe has now 30,000 hectares of ADX for its renewable biomass energy projects, but tropical countries, like Malaysia, show double yields and vegetation as ADX absorbs the high humidity in the air. als on a mass-scale through tissue culture. He has already built five tissue culture laboratories all over the world and is willing to build at least one in the Philippines for Kammmpi’s Smart Farms, which hopefully get government’s and private investors’ attention.

Hayward added that because of its silage or cellulose material, any excess ADX production can also be used to produce pulp for paper, which has been increasing in demand owing to the ban in the use of plastic bags by many local governments.

The rural gasifiers, which will mainly fuel Kammmpi’s “electrigation pumps”, have short payback periods of only three years. n Mechanize for higher productivity. With rural power now available, it is now possible for the Smart Farms to adopt higher mechanization from mini-compact rice mills to various other postharvest facilities that will increase yield recovery.

Ka Sonny said the Philippines lags behind other Asian countries in the adoption of farm mechanization. A few years back, records show that the Philippines has the lowest farm mechanization levels of 0.5 horsepower (HP) per hectare, compared to Thailand’s 0.7 HP per hectare, China’s 3.2 HP per hectare, South Korea’s 4.1 HP per hectare and Japan’s 7.0 HP per hectare. n The SMART Farm model.

Essentially, there is more to Smart Farms, which is an acronym for Systematic, Modernized, Appropriate Rural Technologies (Smart), that adopt the modern and big business corporation’s agribusiness systems Approach, but this time involving small farmers as major stakeholders along corporative models of development.

There are other forms of intervention like change of seeds, inputs, the push toward higher value-adding and agro-processing at the farm level, etc.

But the bottom line is for farmers to produce more, process more, market more and earn more to wipe out rural poverty, which mainly breeds the massive rural-to-urban migration of rural folks escaping the clutches of rural misery only to end up shackled in urban poverty and ending up in slums contributing to attendant social urban poor problems, like housing backlog, joblessness, prostitution, criminality, juvenile delinquency and drugs.

In short, the war on drugs must not be limited to police work, but must be a social and economic empowering in the countryside, where two-thirds of those living below the poverty line resides.

E-mail: mikealunan@yahoo.com

Continued from A1

I

n the Philippines we elect pedophiles to Congress. So you see the motivation for lowering the age of criminal liability to childhood.

Public officials are sexually partial to children, especially in bondage, either to poverty or plain shackles.

The alienated mind David Brooks

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new york times

he campaign of 2016 was an education in the deep problems facing the country. Angry voters made a few things abundantly clear: that modern democratic capitalism is not working for them; that basic institutions, like the family and communities, are falling apart; that we have a college educated elite that has found ingenious ways to make everybody else feel invisible, that has managed to transfer wealth upward to itself, that crashes the hammer of political correctness down on anybody who does not have faculty lounge views.

As Robert W. Merry put it recently in The American Conservative, “When a man as uncouth and reckless as Trump becomes president by running against the nation’s elites, it’s a strong signal that the elites are the problem.”

The last four months, on the other hand, have been an education in the shortcomings in populism. It’s not only that Donald J. Trump is a bad president. It’s that movements fueled by alienation are bound to fail.

Alienation, the sociologist Robert Nisbet wrote, is a “state of mind that can find a social order remote, incomprehensible or fraudulent; beyond real hope or desire; inviting apathy, boredom, or even hostility”.

The alienated long for something that will smash the system or change their situation, but they have no actual plan or any means to deliver it. The alienated are a hodgepodge of disparate groups. They have no positive agenda beyond the sort of fake shiny objects Trump ran on (Build a Wall!). They offer up no

governing class competent enough to get things done.

As Yuval Levin argues in a brilliant essay in Modern Age, “Alienation can sometimes make for a powerful organizing principle for an electoral coalition.… But it does not make for a natural organizing principle for a governing coalition.”

Worse, alienation breeds a distrust that corrodes any collective effort. To be “woke” in the alienated culture is to embrace the most cynical interpretation of every situation, to assume bad intent in every actor, to imagine the conspiratorial malevolence of your foes.

Alienation breeds a hysterical public conversation. Its public intellectuals are addicted to overstatement, sloppiness, pessimism and despair. They are self-indulgent and self-lionizing prophets of doom who use formulations like “the Flight 93 election”—who speak of every problem as if it were the apocalypse.

Alienation also breeds a zerosum mind-set—it’s us or them— and with it a tribal clannishness and

Wednesday, May 24, 2017 A11

Seven percent of Australia’s clergy allegedly abused kids in the past 60 years—that is par for the course in the Catholic white world.

You won’t see that statistic among Latin, Asian and African clergy. An Italian cardinal scoffed at the notion of a “crisis of the Catholic Church”.

He said, “You mean the crisis of the American Catholic Church. We Latins prefer mature women.”

What is it with white people and child sex?

Another victim, Peter Saunders, resigned from the same panel. He

resented the Vatican panel’s resistance to real change. Even Pope Francis was criticized for reducing the penalty for errant priests.

Perhaps, there were mitigating circumstances or the pressure of declining vocations.

But the thing about religion is that, unlike politics, in which nobody believes, belief in religion turns entirely on the credibility of its preachers. “Listen to what I say, don’t do what I do” works only against the priest and the religion he preaches.

The alienated long for something that will smash the system or change their situation, but they have no actual plan or any means to deliver it. The alienated are a hodgepodge of disparate groups. They have no positive agenda beyond the sort of fake shiny objects Trump ran on (Build a Wall!). They offer up no governing class competent enough to get things done.

chasm worse. As the impeachment investigation proceeds, it’ll be important for us Trump critics to not set our hair on fire every day, to evaluate the evidence as if it were against a president we ourselves voted for.

Would we really throw our own candidate out of office for this?

Over the longer term, it will be necessary to fight alienation with participation, to reform and devolve the welfare state, so that recipients are not treated like passive wards of the state, but take an active role in their own self-government.

It’ll be necessary to revive a living elite patriotism. That means conducting oneself in office as if nation is more important than party; not using executive orders, filibusters and the nuclear option to grab what you can while you happen to be in the majority. It means setting up weekly encounters to help you respect and understand the fellow Americans who reside across the social chasms.

Finally, it’ll be necessary to fight alienation with moral realism, with a mature mind-set that says that, yes, people are always flawed, the country always faces problems, but that is no reason for lazy cynicism or self-righteous despair. If you start with an awareness of human foibles, then you can proceed with what Levin calls pessimistic hopefulness—grateful for the institutions our ancestors left us, and filled with cheerful confidence that they can be reformed to solve present needs.

Impeached or not, it’s hard to see how Trump recovers as an effective governing force. Now is the moment for a new establishment to organize, to address the spirit of alienation that gave rise to Trump, but which transcends him.

desire for exclusion. As Levin notes, on the right alienation can foster a desire for purity—to exclude the foreign—and on the left it can foster a desire for conformity—to squelch differing speakers and faiths.

The events of the past four months have demonstrated that Trump is not going to solve the problem he was elected to address; neither the underlying economic and social ruptures nor the alienation that emerges from them.

The events of the past four months illustrate that we do need a political establishment in this country, or maybe a few competing establishments. We need people who have been educated to actually know something about public policy problems. We need people who have had gradual, upward careers in government and understand the craft of wielding power.

We need people who know how to live up to certain standards of integrity and public service. But going forward we need a better establishment, one attuned to Trump voters, those whose alienation grows out of genuine suffering.

The first task for this better establishment is to not make the political

Applying for an invention patent Josephine Rima-Santiago

Intellectual Property Matters Conclusion

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arketing your invention in other countries requires considering options, such as making direct investments in the manufacture, exporting or selling of the goods embodying the invention, establishing partnerships, or licensing of the invention. In the last two options, almost always the prospective partner or licensee will require a valid patent for the invention. The lack of a valid patent leaves the inventor without remedy for infringement. Moral of the story: file your patent application first prior to any type of disclosure to maximize protection coverage.

Patent drafting: Most rejections of patent applications are a result of poorly drafted patent claims.

Undeniably, patent examiners have an edge when it comes to patent drafting, considering the numerous trainings they receive and their job exposure. A patent claim defines the matter for which protection is sought and is akin to the metes and bounds, limits or boundaries of a tract of land.

Thus, patent drafting requires both a special skill and an art as a broad claim is bound to be rejected, while a narrow claim may not provide the best protection for the applicant.

Aware of the general lack of skill

of stakeholders to draft patent claims and the need to expand the pool of experts who can especially draft, the Intellectual Property Office of the Philippines (Ipophl) in 2012 commenced the program for training on patent-drafting universities and research institutions. The said program created the Innovation Technology Support Offices, which to date number 87. Since its launch, local patent filings have slowly increased gradually with 12.4 percent per year on the average.

Direct route: An application for patent may be filed directly with the Ipophl, either by filing online or

Marketing your invention in other countries requires considering options, such as making direct investments in the manufacture, exporting or selling of the goods embodying the invention, establishing partnerships, or licensing of the invention. In the last two options, almost always the prospective partner or licensee will require a valid patent for the invention. submitting hard copies. The application will be examined by the Bureau of Patents of the Ipophl for novelty, inventive step, and industrial applicability. To ripen into a patent grant, the invention must satisfy these criteria to obtain protection in the Philippines for 20 years from filing date. As patents are territorially limited, these procedures have to be done in each national or regional intellectual-property office where you wish to have your invention protected. Unfortunately, this method of individual application in each country will prove to be cumbersome and expensive.

Patent Cooperation Treaty (PCT) route: To address this situation, a mechanism was developed to facilitate the filing of patent applications in many countries—the PCT— where Philippines is the 112th

member-state in 2001.

By filing a single international patent application under the PCT, applicants may simultaneously seek protection for an invention in some or all the 152 PCT member-states. The PCT is a platform for a filing system, which assists applicants in seeking patent protection internationally for their inventions, assists patent offices in granting patents and facilitates access to technical information for these inventions.

The treaty is not, however, a patent-granting system. Thus, there is no such thing as an international patent; only an international patent application. Why? Because as a sovereign state, each member-country must examine the application, and grant or reject patent, according to its own national laws. Patent laws are not harmonized.

Global Filing: Up 7.8 percent from 2014, global filing activity in 2015 shows 2.9 million patent applications were filed with China, which holds the distinction of being the first country to receive over a million patent applications in a single year. It received almost as many applications as Japan, the Republic of Korea and the US combined.

Josephine Rima-Santiago, Ll. M., is currently the director general of the Intellectual Property Office of the Philippines. E-mail: jrsantiago@ columnist.com.

2nd Front Page BusinessMirror

A12 Wednesday, May 24, 2017

More Chinese arrivals expected with increased China-PHL charter flights

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By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

HE Beijing government’s commitment to send 1 million Chinese tourists to the Philippines will likely be fulfilled with the increase in charter flights between China and the Philippines.

In a news statement, the Department of Tourism (DOT) said the state-owned Guangxi Tourism Development Group Co. Ltd. of China will be mounting chartered flights directly from Guangxi Province to Davao, Cebu and Clark.

Tourism Secretary Wanda Corazon T. Teo said these flights add to the growing list of air-charter services between 13 Chinese cities and Manila, Kalibo in Aklan, Cebu,

and Laoag, Ilocos Norte. “This undertaking will open up secondary gateways in the Philippines to the Chinese market and bring in additional tourists from mainland China,” she said.

She added that the new air charter services committed by Guangxi Tourism is a “win-win” situation for the two parties, as the DOT can identify the ideal destinations and packages for the Chinese groups,

TEO: “This undertaking will open up secondary gateways in the Philippines to the Chinese market and bring in additional tourists from mainland China.”

while the latter’s vast marketing network opens more opportunities for the Philippines.

“We are excited about Guangxi’s commitment as we tap the 55 million population of what is considered an Asian center of economy and finance,” she noted. Guangxi is an autonomous region in South Central China, near the border of Vietnam.

Teo was with President Duterte recently, during the Belt and Road Forum for International Cooperation in Beijing. They are now in Russia with other Cabinet members for the President’s official visit.

Further boosting arrivals from China are 10,000 tourists committed by tour operator Sun Fair International, which has offices

INTERNALLY DISPLACED PEOPLE RISING GLOBALLY migrants and the lack of political concern for the millions of people displaced inside their country by conflict, violence and disasters.”

The center warned that displacement will continue to have a major impact unless its main causes— poverty, environmental change and state fragility—are addressed.

It urged new financial and political investments to tackle the causes of the “displacement crises”.

“In 2016 one person every second was forced to flee their home inside their own country,” said Jan Egeland, head of the Norwegian Refugee Council. “It is urgent to put internal displacement back on the global agenda.”

According to the center, 31.1 million new cases of internal

displacement by conflict, violence and disasters were recorded in 2016, an increase of 3.3 million from 2015. The latest figures on the UN refugee agency’s web site showed 14.4 million new refugees in 2014.

A majority of the 24.2 million displacements caused by disasters in 2016 occurred in low- and lower middle-income countries as a result of weather-related events, including several severe typhoons and hurricanes, the center said.

The countries with the worst displacement were China, with 7.4 million people forced to flee their homes, and the Philippines, with 5.9 million; India, with 2.4 million; Indonesia, with 1.2 million; and the United States, with 1.1 million, the center said.

Continued from a1

But it said “small island-states suffer disproportionately once population size is taken into account”.

Of the 6.9 million new displacements caused by conflict in 2016, the center said sub-Saharan Africa overtook the Middle East as the region with the highest level.

Congo had the highest number of new displacements last year —922,000—and overtook Syria, with 824,000, it said. They were followed by Iraq, with 659,000 people; Afghanistan, with 653,000; and Nigeria, with 501,000.

The center said the number of people driven from their homes in Congo was a nearly 50-percent increase from 2015, due to the conflict in the eastern Kivu provinces and an increase in clashes in

Peza Q1 results indicate strong exports rebound

By Catherine N. Pillas

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@c_pillas29

xport receipts logged by firms operating in Philippine Economic Zone Authority (Peza)—accredited sites grew by almost 19.5 percent in the first quarter of the year, boosted by the upswing in global demand.

According to data from the investment-promotion agency, the estimated exports hauled in from January to March this year amounted to $1.49 billion, way above the $ 1.24 billion recorded during the comparable period in 2016. Peza Director General Charito B. Plaza said in a text message this can be credited to continuing expansion of existing locators to meet spiking demand.

Investments, which, in the same period, increased by 50.5 percent to reach P 51.3 billion, are also expected to increase due to the release of the Philippine Economic Zones Map scheduled for October.

The project is envisioned by Plaza to initiate a new boom in ecozone

50.5% The percentage growth of Peza investments from January to March

development and construction.

The Department of Finance has reportedly assisted Peza in listing all the land assets under the Privatization and Management Office for public ecozone mapping, while the Department of Energy has committed to implement reduced power rates for economic zones in Mindanao.

During the recent economic growth briefing, National Economic and Development Authority Director General Ernesto M. Pernia predicted a rebound in exports due to improving global demand this year, as the country saw a 32.3-percent increase in shipments abroad in the first quarter, the fastest first quarter growth since 2010.

NEW LAWYERS Over 3,700 successful 2016 Bar exam passers take their oath at the Mall of Asia Arena in Pasay City. ALYSA SALEN

in Xiamen and Hong Kong. These tourists, the company said, will come from Shanghai, Xiamen, Chongqing, Chengdu, Hong Kong and Beijing, starting this month.

In a brief discussion with Teo, Marisa Te Eng Fo, an official of the tour operator, said these tourists are a diverse group of leisure travelers, divers and adventure seekers, as well as casino gamers, businessmen, culinary travelers, shoppers and even employees on company paid tours.

Following the DOT secretary‘s instructions, the agency has proposed that the Chinese tour operator send its tour groups to Manila, Palawan, Bohol, Cebu, Davao, Surigao, Subic and Negros Occidental.

Under the National Tourism Development Plan for 2017 to 2022, the Duterte administration is targeting visitor arrivals to reach 12 million by the end of the President’s term of office, from 6.5 million in 2017. Internally, the DOT sees visitor arrivals hitting some 8 million this year, taking into account the 1 million tourists promised by Beijing.

southern and central regions.

Alexandra Bilak, the center’s director, said the upsurge in Congo “highlights how the failure to address the underlying causes of conflict and crisis” result in recurring displacement of hundreds of thousands of people.

According to the report, 12 percent of new displacements in 2016 “were associated with criminal, political or communal violence across the world”.

“From gang violence in Central America to postelectoral violence in Burundi, around 850,000 incidents were recorded,” it said.

In El Salvador the center said 220,000 people were displaced by criminal and gang violence last year, “placing the country second in the ranking of highest new displacements relative to population size”. AP

www.businessmirror.com.ph

GOVT SCRAPS PLANS TO UPGRADE 5 REGIONAL AIRPORTS VIA PPP MODE

By Lorenz S. Marasigan

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@lorenzmarasigan

he Depar tment of Transportation (DOTr) on Tuesday terminated the procurement of the P108.2billion Regional Airports Development Program, leaving the Public Private Partnership (PPP) Program badly bruised.

According to the PPP Center, the transportation department has decided to transfer the deals for the development of five regional airports in the country to another mode of implementation.

“Expansion and upgrading of the airports via the General Appropriations Act [GAA] make the project cheaper as cost of money would be lower, thus more beneficial to the public,” Transportation A ssistant Secretar y Leah Merida-Quiambao told the BusinessMirror.

This way, she said, the government expects project completion to be faster and more efficient. “Further, this would help avoid legal issues that may cause regrettable delays. This decision was brought about through collegial discussions, including the economic clusters and congressional leaders,” Quiambao said. The previous administration started the auction for the contract to develop and operate five airports around the Philippines in two packages to make it more enticing to investors.

The first package consists of the Bacolod-Silay Airport (P20.26 billion) and Iloilo A ir por t (P30.40 bi l lion), while the second bundle is composed of the New Bohol or Panglao Airport (P2.34 billion), Laguindingan Airport (P14.62 billion) and Davao Airport (P40.57 billion).

After officially launching them for tender, the Duterte administration decided to unbundle them to hasten their auction.

PPP Center Executive Director Ferdinand A. Pecson said his office respects the

₧108.2B The total cost of the Regional Airports Development Program

decision of the DOTr and the Civil Aviation Authority of the Philippines (Caap), but noted that implementing the projects under the PPP initiative was also a viable option.

“While the PPP Center believes in the credibility of these airport projects structured as PPP, and gratefully acknowledges the solid interest of the private sector, we respect DOTr’s and Caap’s authority and their decision to terminate the projects,” he said.

There were five prequalified bidders for the project, namely, Filinvest-Jatco-Sojitz Consortium (Filinvest Development Corp.; Filinvest Land Inc.; Filinvest Alabang Inc.; Japan Airport Terminal Co. Ltd; and Cyberzone Properties Inc.).

GMR Infrastructure and Megawide Consortium (Megawide Construction Corp.; GMR Airport Developers Ltd.; GMR Hyderabad International Airport Ltd.; and Delhi International Airport Ltd.); Maya Consortium (Aboitiz Equity Ventures Inc.; VINCI Airports SAS; ANA-Aeroportos de Portugal SA; VINCI Construction Grands Projets SAS; Therma South Inc.; and Hedcor Sibulan Inc.); Philippine Airports Consortium (Metro Pacific Investments Corp.; and ADP Ingenierie); and SMHC-IIAC Airport Consortium (San Miguel Holdings Corp.; Incheon International Airport Corp.; Star Infrastructure Development Corp.; and Citra Metro Manila Tollways Corp.).

Sought for comment, GMRMegawide Cebu Airport Corp.

President Louie B. Ferrer said the group is supportive of the government’s pledge to the development of the airports the quickest time possible.

See “Govt,” A2