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n Monday, May 28, 2018 Vol. 13 No. 226

Draft rules to make oil pricing transparent out

By Lenie Lectura

@llectura

S continuing price surges have shifted public anger mostly to the TRAIN law that mandated higher fuel excise taxes, the government moved to require a more transparent, unbundled system for informing people of the breakdown of petroleum product prices.

₧70/liter The result of the ‘highest recorded oil-price hike’ in Palawan

The Department of Energ y (DOE) has released the draft rules on petroleum price monitoring, meant to guide the consumers in making informed decisions in the management of their fuel oil requirements. T he agency wants oil companies or bulk suppliers to submit

“We are open to the suspension of taxes [under the TRAIN law] if the situation merits it...and if we think that’s the right solution at the moment... what are the mechanics if it’s suspended and possibly revived when conditions are different or better.”—Cua

@joveemarie

HE chairman of the House Committee on Ways and Means last Sunday said the lower chamber is now open to suspending the imposition of certain taxes to address the increasing prices of basic commodities. Rep. Dakila Carlo E. Cua of the Lone District of Quirino said the committee is studying how the suspension can be done equally and fair to both the government and the people. “We are open to the suspension of ta xes [under the Ta x Refor m for Accelerat ion a nd Inclusion or TR AIN law] if the situation merits it...and if we think that’s the right solution at the moment; and then how do we make it or what are the mechanics if it’s suspended and possibly revived when the conditions are different or better,”

Cua said in a radio inter view. “We may [also] carve out the implementation of certain taxes ...we can do that through legislation or legislative process,” the lawmaker added. According to Cua, his committee is also studying the power of the Bureau of Internal Revenue (BIR) to recommend to President Duterte the suspension of the imposition of taxes, particularly the excise taxes, as well as the value-added tax on fuel.

Certified PPP Advocate Alberto C. Agra

ead

L AlbertoPPP C. Agra

ou could be one if you attend three two-day or three-day modules organized by an accredited entity and pass an examination administered by this columnist. He owns the trademark in the Philippines. Three modules. As designed, the first module is about the policy and legal aspects of public-private partnerships. The topics include the definitions, laws, regulations, value drivers, projects, modalities and procedures on PPP. The second touches on the technical, financial and environmental dimensions of PPP projects. At the third tier, the participants shall learn about PPP risks, and how to prepare terms of reference (TOR) and to draft PPP contracts.

See “TRAIN,” A2

PESO exchange rates n US 52.5330

Continued on A11

See “Draft rules,” A2

NG setting up land dispute panel for Marawi

LMOST 800 companies were found to be engaged in illegal labor-only contracting (LOC) by the Department of Labor and Employment in the last two years, according to DOLE Undersecretary

@cuo_bm

Joel B. Maglunsod. He told the BusinessMirror THAT their labor inspectors identified 767 companies to be engaged in LOC from June 2016 to April 2018. LOC is an illegal working arrangement, wherein companies Continued on A2

See “Marawi,” A2

Nearly 800 firms used labor-only contracting—DOLE exec @sam_medenilla

By Cai U. Ordinario

HE national government will be setting up a land dispute committee to address land-title and property-line issues in Marawi, according to the National Economic and Development Authority (Neda). Neda Regional Development Office Assistant Secretary Mercedita A. Sombilla said identifying the rightful owners of lands in Marawi City is difficult, since the lands are “claimed by everyone.” Sombilla said the Department of Environment and Natural Resources (DENR)-National Mapping and Resource Information Authority (Namria) is currently replotting and reestablishing lot boundaries. “The biggest issue here is identifying rightful owners of lands, which are claimed by everyone,” Sombilla told the BusinessMirror over the weekend. “A land dispute committee is planned to be set up to facilitate settlement. But yes, this could cause delay,” she added. Sombilla explained that, in order to replot and reestablish property lines, the government will hold consultations that serve as validation to determine the real property owners. This can be difficult, since there are some residents who claim to have land titles, while others do not have these documents.

A gasoline attendant tends to customers at a petrol station in Makati City. The market is bracing for another fuel-price hike this week, as the Department of Energy released its draft rules that will, for the first time, impose a more transparent, unbundled system showing the basis for petroleum prices. ALYSA SALEN

By Samuel P. Medenilla

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HOUSE PANEL STUDYING SUSPENSION OF ‘TRAIN’ TAXES AS PRICES CLIMB By Jovee Marie N. dela Cruz

2016 ejap journalism awards

n japan 0.4809 n UK 70.3049 n HK 6.6941 n CHINA 8.2379 n singapore 39.2330 n australia 39.7885 n EU 61.5687 n SAUDI arabia 14.0077

Source: BSP (25 May 2018 )

News

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A2 Monday, May 28, 2018

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Con-com eyes more powers, tasks of JBC in vetting court aspirants

By Bernadette D. Nicolas

Federal Administrative Court. It shall submit its findings to the High Court, which has control and supervision over the members and employees under its jurisdiction. The Supreme Court, Constitutional Court and Administrative Court shall have final disciplinary authority over their respective officials and employees. “[The High Court] cannot dismiss or impose any sanction if it is not recommended by the JADC,” he told the BusinessMirror. In addition, Nachura said JADC is also eyed to recommend promotions and transfers of judges and justices. At present, the JBC recommends to the President appointees to the Judiciary, appointees to

the positions of Ombudsman and Deputy Ombudsman, and judges of lower courts. At least three nominees are recommended by the JBC for every vacancy. Nachura said they are proposing these changes because it is better that the body given the prerogative to nominate the appointments, promotions and transfers, is also given the power to look at the integrity and performance of judges and justices it has recommended to be appointed. “If they recommended judges and justices and it turns out that the ones they recommended were up to no good, they should also be given the equivalent power to investigate,” he said. Also, JADC’s members will be increased from seven to 14. There will be 10 ex-officio members and four regular members. The ex-officio members will include the chief justice of the Federal Supreme Court, presiding justice of Federal Constitutional Court, presiding justice of Federal Administrative Court, Ombudsman, chairman of Civil Service Commission (CSC), chairman of the

Commission on Audit (COA), a representative from the Senate, a representative the House, court administrator of the Federal Supreme Court and Justice secretary. Regular members will include a representative from and designated by the Integrated Bar of the Philippines, a law professor designated by the Philippine Association of Law Schools, a representative from and designated by the Association of Generals and Flag Officers, and a retired Justice of the Federal Supreme Court to be designated by the Association of the Retired Justices of the Federal Supreme Court. The regular members shall serve for a single term of four years and with no confirmation by the Commission on Appointments. The chairmanship of the council is also proposed to be rotated every two years among the chief justice of the Federal Supreme Court, the presiding justice of the Federal Constitutional Court and the presiding justice of the Federal Administrative Court. A n executive board within JADC shall also provide administrative and operational support to

the council and handle day-to-day operations. Nachura said the change in the rules of chairmanship and the membership is intended to “make the JBC more functional and fair, and to perform their mandate better.” He also stressed that the inclusion of constitutional officers like the Ombudsman, chairman of the CSC and chairman of the COA and the presiding justices of two other proposed High Courts in JADC would result in a lesser “influence” of the Supreme Court Chief Justice over its members. “I think we cannot escape the fact that what happened to the Chief Justice is imputed as an error of JBC,” he said, noting that JBC claimed earlier that there was substantial compliance on the part of ousted Chief Justice Maria Lourdes A. Sereno and then the Supreme Court issued a decision to the contrary. “There was in fact a violation of the constitutional requirement,” he added. On May 11 the Supreme Court issued a landmark decision voting 8-6 to grant Solicitor General Jose

C. Calida’s quo warranto petition to nullify the appointment of Sereno, on the ground that she did not comply with the requirements on the filing of Statement of Assets, Liabilities and Net worths. Last Monday former Supreme Court Chief Justice Reynato S. Puno also noted that the committee is looking to overhaul the JBC to make it more independent. “It will not be the same Judicial and Bar Council. It will be an entirely new council so that the council can really help in the better selection promotion, transfer of our judges and justices,” he said. Although they have not discussed thoroughly who will be the appointing power to the JBC, Puno noted that regardless of the appointing power, the members to be appointed will not have the right or privilege to be reappointed. “That will be different from what we have today. That is the weakness of our JBC: the ones being appointed by the President can be reappointed,” he said, adding that those who want to be reappointed can be influenced by appointing power.

fuel, bunker fuel oil and household and automotive liquefied petroleum gas.” T he re l e a s e d d r a f t r u l e s said,“Oil companies shall strictly comply with the submission of the formal notice of price adjustments on a per-liter basis, containing the computation and the corresponding explanation of the unbundled cost items of all products.” The report should indicate the product cost; refining cost; import terminal/depot operation cost; transshipment cost; taxes; biofuels cost; hauler’s fee; unbundled other fixed cost; unbun-

dled other variable cost; and oil company/bulk suppliers’ profit. At present, there is no breakdown of the base price of petroleum products sold at various ser vice stations. “Identification of the costing for the major components of these petroleum products that may affect the pump prices would provide a higher level of transparency for our consumers, particularly the motorists,” Energy Secretary Alfonso G. Cusi said. The DOE should also be notified not later than 12 noon of every Monday of the week for any

price adjustment (increase, decrease or no adjustment), and prior to any public announcement and implementation. For LPG, they shall notify the DOE not later than the end of every month for any price adjustment. The effectivity of price adjustments for liquid fuel shall be implemented beginning every Tuesday of the week, and for LPG, beginning every first day of the month. The agency has held hearings with industry stakeholders. DOE is mandated under RA 8479, or the Downstream Oil In-

dustry Deregulation Act of 1998, to monitor both international and domestic price movements of petroleum products.

now subject of an inquiry in the House Committee on Energy. The biggest price hike reported in Palawan led to a P70/liter price, militant lawmakers said. “Over the weekend, oil companies have posted big-time price discounts in service stations in Fairview, Quezon City, as well as in Greenfield Road in Santa Rosa, Laguna. Whatever the business motivation of these dealers are, this sends a message that the oil price hikes are ‘bloated,’ and that the dealers are still making money despite the big discounts on a perliter basis,” it said.

to create 1.7 million jobs by 2022.

necessary, suspend the implementation of the excise tax,” he added. While some are now seeing the impact of TRAIN and are also suggesting its suspension, Alejano took a swipe against those who overlooked the implications of TRAIN despite the warnings. “ There were early warnings on the effects of TRAIN, but these were brushed aside, maybe due to assurances that there are mechanisms to cushion the side effects. However, we are seeing that safety nets are still promises while the poor are presently being buttressed by high prices of commodities,” he stressed. “What must be done now is to address the problems and stop denying that TRAIN contributed to the crisis. If the government will keep on defending TRAIN, it will not be able to see the realities Filipino families are facing now under the Duterte tax plan,” Alejano said. He, meanwhile, suggested that deliberations on the second package of TRAIN be delayed for the meantime as the review

for the first package is yet to be done. “We have yet to assess the impact of the first package. We cannot rush into the second one as this may complicate the present situation. Let us resolve first the existing questions and issues on TRAIN before proceeding with the implementation of the second package,” the Magdalo solon said. The House Ways and Means panel has already started discussing several bills that will reduce corporate-income tax and rationalize fiscal incentives under TRAIN 2, the second package of Comprehensive Tax Reform Program (CTRP) of the Duterte administration. TRAIN 2 will reduce corporate income tax from 30 percent to 25 percent, and harmonize fiscal incentives with a view to adopting those that truly encourage needed investments and boost growth and create jobs, while dropping those that are redundant or which go to nonperforming sectors.

@BNicolasBM

HE consultative committee (Concom) tasked to review the 1987 Constitution is eyeing to expand the powers and coverage of vetting by the Judicial and Bar Council (JBC).

According to the chairman of the Subcommittee on Structure of the Federal Government, former Associate Justice Antonio Eduardo B. Nachura, the reorganized JBC is proposed to be renamed the Judicial Appointments and Disciplinary Council (JADC). The Con-com is expected to finalize the Article on the Judiciary this week. As the name suggests, Nachura said they have also proposed that JADC shall have the power to investigate all members and employees of the Judiciary, including the judges and justices, and recommend disciplinary action to the three High Court—Federal Supreme Court, Federal Constitutional Court and

Draft rules. . . Continued from A1

a report on the computation and the corresponding ex planation of the unbund led items compr ising the pr ice of a ll petroleum products. On May 8 the DOE said in a news release the new policy is targeted “to be issued by the end of June this year,” and will enable “the unbundling of the base prices of petroleum products—gasoline, automotive and industr ia l fuel, kerosene, jet

TRAIN. . .

Continued from A1

Earlier, the BIR announced that the net gain from the implementation of the new tax law reached P12.5 billion in the first quarter of the year. Despite this, several lawmakers, citing what they described as the detrimental effects of the new tax-reform law on the people, filed bills and resolutions reviewing and repealing the TRAIN law or at least suspending its implementation. President Duterte signed into law RA 10963 (TRAIN law) on December 19, 2017, with the objective of creating a simple, fair and more efficient system that will make the rich contribute more to fund the government’s services and programs for the benefit of the poor. The law is also expected to finance the “Build, Build, Build” (BBB) program, which will modernize the country’s infrastructure backbone and is expected

Oil-price hike As oil prices are hitting record-highs, Party-List Rep. Gary C. Alejano of Magdalo reiterated the call for the immediate review of Republic Act 10963, or the TRAIN Act. Alejano has filed House Resolution 1838, calling for a review of TRAIN due to its inflationary impact, with a rate hitting 4.5 percent—exceeding the 4-percent prediction of Duterte’s economic managers. “Now, the subject of alarm is the series of oil-price hikes and the price of crude oil in the world market approaching the $80 barrel set forth by TRAIN,” Alejano said. “We saw a big-time oil-price hike last week, which is the biggest so far this year so far. It is expected that this would continue with the Department of Energy warning the public of possible hikes in the coming weeks. Given this scenario, it is urgent that we review TRAIN and, if

Minimum wage Amid the soaring of prices of basic goods and services, the Makabayan bloc said it will file a bill proposing the P750 national minimum wage. The bloc is also the author of a bill repealing the TRAIN law. Party-list Rep. Ariel B. Casilao of Anakpawis, a bloc member, said a P750-national minimum wage is but just, not only to mitigate the impact of anti-people policies, such as the new tax law, but also serves as a basic recognition of Filipino workers’ rights as universally acknowledged. “The latest compelling basis would be the incessant oil-price hike brought about by the TRAIN and a deregulated oil industry. It was recorded highest in Palawan, an absurd P70 gas per liter; while in Baguio, [it’s] P66 and in the National Capital Region, P62. Automatically with the spike of fuel products, basic goods and services follow suit,” he said. “While the cost of living rises, no corresponding wage hike is realized, which makes the Filipino workers being sandwiched to having a low purchasing power and impoverished state,” he added. A national minimum wage is neither a new nor radical proposal as it was prior to the enactment of Wage Rationalization Act during the Aquino administration, he noted.

Retail price variance

Separately, consumer advocacy group Laban Konsyumer Inc. (LKI) said the proposed circular should check the basis of the identical or similar weekly price adjustments of the oil companies, the new players and independents as well as the big variance in retail prices of some trading areas like Baguio City versus La Union and areas in Mindanao,

Marawi. . .

Continued from A1

The land dispute committee will include the DENR, agencies in charge of land-titling, and the appropriate local government units. “In the most affected area, there is a land use plan, but [we] will accommodate what has been, what are requested, to the best that could be done,” Sombilla said. This, she added, will be the biggest challenge and could delay government efforts to reconstruct and rehabilitate the city, which was destroyed because of the five-month armed conflict last year. On May 23, 2017, hundreds of members of the ISIS-inspired homegrown terrorists Maute Group, in league with a command of the Abu Sayyaf, laid siege to one of Mindanao’s most prosperous Islamic City, leading to pitched battles that forced the government to use air strikes that leveled much of the city. Earlier, Neda Undersecretary for

the Regional Development Office Adoracion M. Navarro told reporters that land ownership issues are particularly difficult to resolve even in the medium term. Navarro said of the 892 priority programs, projects and activities (PPAs), at least 252 will be dedicated to physical infrastructure and 27 will be for housing and settlement. These will likely encounter land ownership issues. The 27 housing PPAs, for example, means building 6,400 transitory shelter units and 3,524 permanent housing units for Marawi City residents. However, projects belonging to other sectors may also encounter land- ownership issues. Navarro said providing social services, such as in building schools-destroyed during the Marawi Siege, will also be impacted. She added that before any structure can be erected, the government must be able to ensure that the land where public structures, such as schools will be constructed must be free of land conflicts.

Nearly 800 firms used labor-only contracting–DOLE exec Continued from a1

contract out positions even if these are directly related to their main business. “We already issued [compliance] orders to them to regularize 883,691 workers,” Maglunsod said. Meanwhile, he said another 2,610 companies with 141,161 workers are sti l l undergoing processing from the DOLE for suspected LOC. “These are the ones which have already undergone inspection assessment. They already completed exit conference and are now undergoing mandatory conferences,” Maglunsod said. He confirmed they already submitted the list of 3,377 companies, which are engaged or suspected of LOC, to Malacañang last Thursday. The number of companies with

LOC cases comprised only about 3 percent of the 99,526 firms, which were inspected by the DOLE since 2016. Last month President Duterte ordered the DOLE to submit the list. The President has yet to announce what he will do to the list. Maglunsod said it will be up to Duterte to reveal the names of the companies included in the list, but he noted that the processing of the LOC cases will continue. “Some of these LOC cases are now in the process of execution, while the others are on appeal at the Ossec [Office of the Secretary]. There are also those which are filing a motion for reconsideration,” Maglunsod said. He adºded their campaig n against LOC has already resulted to the regularization of 176,286.

The Nation BusinessMirror

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Editor: Vittorio V. Vitug • Monday, May 28, 2018 A3

100M Filipinos to enjoy benefits of national ID system–Lacson

By Butch Fernandez

@butchfBM

he national ID system is seen bringing several benefits to more than 100 million Filipinos, including quicker transactions with private and public institutions, and waiving tedious requirements to produce all sorts of documents to prove one’s identity.

Sen. Panfilo M. Lacson Sr., principal sponsor of the P25-billion to P40-billion enabling legislation, listed “numerous benefits” resulting from the enactment of the National ID System Law: “First, when you transact business with public or private institutions, you will no longer be asked to present assorted documents to prove your identity. All you need to do is to show your Philippine ID Card. “If you forgot your card, left it at home or misplaced it but you know your Philippine ID System Number or PSN, you can still transact business,” Lacson said. The senator added the national ID will also spare you from hassles “when renewing or applying for Social Security System [SSS] benefits and you happen to have a namesake, which will prevent you from getting benefits or register at SSS that usually takes months to process and clear up.” In addition, Lacson said the requirement to produce two government-issued IDs with photo will no longer be needed when the national ID is presented as proof of identity. “Only two basic questions are re-

quired to be answered: “Who are you? And is it really you?” He added that newly born Filipinos will now automatically get a Phil-ID number, noting that when one is born, “we are given a name and then the birth certificate will be registered. So we already have an identity.” Lacson said the only thing lacking at that point is an “identifying permanent serial number.” Under the new law, the senator added, the permanent number will be given upon reaching the age of majority. “A newly born baby is only given a temporary number.” “Once a person reaches the age of majority, that is the time a permanent lifetime number is given. Even if one dies, he brings the number with him to the grave,” Lacson said. “It is permanently yours, not transferable. It is unique and permanent to the person issued a Phil-ID.” Lacson added that under the law, confirming the identification is made easier because it is linked to the Phil- ID Computer System. For instance, he said, a bank can promptly verify through a computer the identity and number of the cardholder.

“In this day and age of modern technology, computers are linked together. So, instantly the PSA [Philippine Statistics Authority] system can confirm your identity. This is important when you transact business with Pag-IBIG, PhilHealth or the Land Transportation Office [LTO]. Your Phil-ID contains your name, date of birth, gender and address. You e-mail and mobile numbers are optional.” Lacson, likewise, confirmed the inclusion of biometric data, “which include your facial image, biometrics, such as iris scan, and fingerprints of your 10 fingers.” Another convenience is that the national ID system is also linked to the United Multipurpose ID (UMID) used in transacting with the SSS, Government Service Insurance System (GSIS), PhilHealth and Pag-IBIG Fund. “They are now linked, all of them,” Lacson said. “It is all there. This National ID makes it easier to identify a person [and facilitate transactions] because, as I said, it is unique and permanent to a person, no one else can own someone’s ID number.” The senator clarified that driver’s license and passport will still be there. But when one transacts business with government or private institutions, only the national ID card will suffice to prove one’s identity. “When you go to SSS and you forgot your SSS number or card, the serial number of the national ID system will enable you to transact business with the SSS, same with the LTO, among others,” he added. “Same with applying for a passport.” Lacson said he clarified in his sponsorship speech that the intent of the ID law was “to reward, not to punish; to make life easy, not difficult.”

DepEd reminds school officials 3 Pasay City state prosecutors probed not to deal with tobacco industry By Joel R. San Juan @jrsanjuan1573

he Department of Education (DepEd) last Friday reminded teachers and school officials to refrain from accepting gifts, donations, and sponsorships directly and indirectly from the tobacco industry, including those that may be coursed through agency’s stakeholders partners or third parties in the guise of corporate social responsibility projects. Education Secretary Leonor M. Briones issued the reminder in time for the conduct of 2018 Brigada Eskwela beginning May until before the opening of classes on June 4, in compliance with DepEd Order (DO) 48, series of 2016, or Policy Guidelines on Comprehensive Tobacco Control. We welcome partners who can work with us in fulfilling our mandate and in promoting the theme for this year’s Brigada, “Pagkakaisa para sa Handa, Ligtas at Matatag na Paaralan Tungo sa Magandang Kinabukasan”; however, we cannot

consider as partners those industries that undermine our efforts to fulfill our mandate, which includes the promotion of healthy environment in schools through our tobacco policies,” Briones said. Brigada, otherwise known as the National Schools Maintenance Week, brings together education stakeholders to participate and contribute time, effort and resources to prepare public-school facilities. However, the DepEd said companies and other players in the tobacco industry are not among these stakeholders. The reminder applies not only during the conduct of Brigada but throughout the year. Given this, schools are reminded to exercise due diligence to ensure that sponsorships and donations received are not from foundations and non-government organizations funded by tobacco companies (including retailers of tobacco products). As a safeguard, DO 48 requires

all DepEd offices and schools to “include a provision in all memoranda of agreement entered into with donors and partners stating full commitent of all parties concerned to tobacco-control implementation and stipulating that said donor or partner does not represent the interests of, or receive funding from, the tobacco industry.” The department order is anchored on the joint memorandum circular (JMC) issued by the Civil Service Commission (CSC) and the Department of Health in 2010, which states that interaction of public officials and employees with the tobacco industry is permitted “only when strictly necessary for the latter’s effective regulation, supervision or control.” Violations of the provisions of the JMC shall be reported to the CSC, as per the Commission’s Guide for Resolving/Filing Cases of Tobacco Industry Interference in the Bureaucracy. Claudeth Mocon-Ciriaco

HE Department of Justice (DOJ) has found prima facie evidence to warrant the investigation of three Pasay City state prosecutors for possible administrative liabilities for ordering the release of three persons who were arrested for trying to smuggle into the country some P6 million worth of jewelry at the Ninony Aquino International Airport (Naia) Terminal 3 on May 5. Facing formal investigation for neglect of duty, gross incompetence and inefficiency are Prosecutor Benjamin Alonto, officer in charge of the Pasay City Prosecutor’s Office; State Prosecutor Florencio de la Cruz Jr., inquest prosecutor; and Associate Prosecution Attorney Clementine Villanueva. In a two-page formal charge signed by Justice Secretary Menardo Guevarra, the justice department directed the three prosecutors to answer the charges and submit the respective affidavits of their witness within 10 days.

“Otherwise, failure to submit the same shall be deemed as a waiver of your right to be heard, and this department, through the Internal Affairs Unit (IAU) of the National Prosecution Service, shall make a recommendation on this case on the basis of evidence on record,” Guevarra said. Guevarra also asked the prosecutors to indicate in their answers whether they would prefer a formal hearing of their case. Guevarra has also placed the prosecutors under a 60-day preventive suspension pending the result of the investigation. The case was forwarded to the IAU for investigation and submission of its recommendation. The DOJ ordered the investigation of the three prosecutors following the release of three suspected smugglers of jewelry despite supposed strong evidence against them. It can be recalled that on May 5, 2018, a closed-circuit television camera stationed at the Naia caught an exchange between an unidentified man and Naia Customs Officer V Lomontod Macabando of a bag

containing at least P6 million worth of assorted gold jewelry. While attempting to flee the scene with the bag, Macabando was intercepted by Bureau of Customs personnel and airport security guards. It was later confirmed that the bag contained 1.9 kilo grams of undeclared pieces of jewelry. On the same day, spouses Abraham and Bang-sa Mimbalawang arrived at Naia Terminal 3 aboard Cebu Pacific Air from Dubai. The couple admitted to the authorities of their ownership of the bag subject of the exchange. Macabando and the Mimbalawangs were arrested and subjected to inquest proceedings on May 6 at the Office of the City Prosecutor. However, Gueverra said the suspects were ordered released by the said prosecutors following the inquest proceedings “despite the evidence at hand.” Meanwhile, Guevara has designated Deputy City Prosecutor Dolores Pulgo-Rillera as officer in charge of the Pasay City Prosecutor’s Office.

OFWs in Baghdad must remain vigilant in the wake of bombings–DFA By Recto Mercene

@rectomercene

he Department of Foreign Affairs (DFA) last Sunday warned overseas Filipino workers (OFWs) in Iraq to remain vigilant following a series of bombings in Baghdad that left a number of persons dead and several more wounded. In a statement, the DFA said the Philippine Embassy in Baghdad will continue to monitor the situation in the Iraqi capital and will be in touch with members of the Filipino community. At least four people were killed and

15 wounded in a suicide attack in Iraq’s capital Baghdad last Thursday. The attack took place in the predominantly Shia district of Shula in northwest Baghdad. “A suicide bomber blew up his explosive belt while he was surrounded by police near a public garden in Al-Shula district,” a security forces statement said. Chargé d’Affaires Julius Torres, reporting to the Dfa, said the Embassy has reminded the estimated 400 members of the Filipino Community in Baghdad to exercise caution and to

restrict their movement after a series of bombings in the past week left at least seven persons dead and several others wounded. Cafés in Iraq are particularly busy at night during the Muslim holy month of Ramadan, with families and friends gathering to relax and eat before the fast starts again at dawn. Iraq last December claimed victory over the Islamic State (ISIL), also known as ISIS, after a campaign to retake swaths of territory captured by the armed group. ISIL has claimed previous attacks

against security forces and in public places in mainly Shia-dominated areas. Earlier this month, the group claimed a deadly gun attack in Tarmiya, an area 25 kilometers (15 miles) north of Baghdad. Meanwhile, the Dfa also warned Filipinos working in Saudi Arabia to take precautionary measures ahead of a powerful tropical cyclone that made landfall in the western region of the Kingdom last Saturday evening. The Dfa issued the warning through an advisory issued by the Philippine Consulate General in Jed-

dah to members of the Filipino Community, especially those in Najran and surrounding areas. “We would like to advise our kababayan in the Western Region of the Kingdom of Saudi Arabia, especially those residing in Najran and nearby areas, to prepare for torrential rains, possible flashfloods and decreased visibility as tropical cyclone Mekunu makes landfall in some parts of the Kingdom tonight,” the advisory from the Consulate read. According to Consul General Edgar Badajos, the Saudi General Authority

of Meteorology and Environment Protection (Gamep) has predicted heavy rains for some parts of the Kingdom from Saturday (May 26) until Tuesday (May 29). Badajos said Gamep also said the rains will be accompanied by active wind and dust, which may lead to a lack of horizontal visibility in Najran, especially in Al Kharkhir area. Dust brought about by the winds is also expected to reduce visibility over Tabuk, Madinah, Makkah, Sharqiyah and Riyadh. Rainy clouds are further expected over Jizan, Asir and Al Baha region.

A4 Monday, May 28, 2018 • Editor: Vittorio V. Vitug

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PHL vows reforms to boost poor competitiveness profile

By Elijah Felice E. Rosales

@alyasjah

HE government is taking the task of raising the country’s competitiveness ranking in its own hands, as Trade Secretary Ramon M. Lopez vowed strategic reforms will be fast-tracked to ensure Manila will be on a par with rival economies.

Lopez said the government is now urged to accelerate its policy reforms and flagship programs after the country put on a dismal showing in IMD World Competitiveness Ranking 2018. The Philippines scored 64.66 in the annual survey, and was down nine notches to 50th from 41st last year in a list 63 economies. “While the competitiveness report cited recent improvements— such as on tax collection, pension funding, political stability, environment-related technology, public spending on education—the report did not capture the gains made by the country—such as the rapid growth in the economy, percapita income growth, industry and manufacturing record growth rates, investments growth, employment, cost of capital, Central Bank policy, trade and investment policy liberalization, marketbased [foreign-exchange] policy, rule of law, intellectual-property

rights, higher education gains and the ‘Build, Build, Build’ program under the Duterte administration,” Lopez said. The rankings released last Thursday rained on the government’s party of a fast-growing economy, as the Philippines slipped 24 spots— to 50th from 26th in the previous year—in terms of economic performance. Although the survey recognized the country’s surging GDP growth, it also took note of its doubled current account deficit, slow expansion of foreign direct investments inflow and the depreciation of the peso against most major currencies in the previous year. Also, government efficiency dropped to 44th, from 37th last year, as investors expressed uncertainty in the country’s public finance, institutional framework, business legislation and societal framework. Only tax policy was positive for the Philippines in the previous year, when the Tax Re-

Workers assemble vehicle metal parts at the assembly area of Roberts Automotive and Industrial Parts Manufacturing Corp. at Industrial Park in Canlubang, Laguna. The DTI said the government is fast-tracking efforts to boost the competitiveness of Philippine business following dismal scores in a recent global report. NONOY LACZA

form for Acceleration and Inclusion (TRAIN) was enacted into law. Lopez said the government is taking the rankings seriously, and said necessary reforms will be undertaken to improve the country’s showing in the survey. He also anticipates better placing in the next report with the implementation of the TRAIN law, roll-

out of job-creation programs and mechanization of ease of doing business initiatives. “Undeniably, the leadership has shown political will. With the reforms undertaken, the concerns identified by business executives in the [competitiveness] report clearly show that the government is listening and mindful of its citizens’ re-

quests,” the trade chief said. He added succeeding rankings must put the Philippines in a better position to spar with its rival economies, as the government is pushing hard to reduce corporateincome tax to benefit investors— onshore and offshore alike—under the proposed TRAIN 2. Lopez also said the government’s transi-

tion to cash budgeting next year will be a factor, as it resulted in a “significant increase in public infrastructure spending.” Manila placed last among five founding member-states of the Association of Southeast Asian Nations in the IMD rankings. It was left behind by Singapore at third, Malaysia at 22nd, Thailand at 30th and Indonesia at 43rd. The United States was the most competitive economy, according to the report, followed by Hong Kong, Singapore, the Netherlands, Switzerland, Denmark, the United Arab Emirates, Norway, Sweden and Canada. Placing just a few notches below the Philippines at the bottom of the list were countries facing either political instability or economic upheavals, including Venezuela, Mongolia, Croatia and Brazil. Apart from the declines in economic performance and government efficiency, the country also slipped in terms of business efficiency. The report owed it to financial performance, labor market, attitude and values, and management practices—all contributing to the country’s near-bottom performance in overall productivity and in labor productivity. For the longest time, infrastructure has been the Philippines’s headache in the survey, and is down to 60th from 54th in the previous year. The country was among the three lowest scorers in basic infrastructure, scientific infrastructure and education infrastructure.

FDC weighs ‘the price of sovereignty and the pain of indebtedness’ Chinese officials, DOF tackle investment areas in PHL, Asean By Rea Cu

@ReaCuBM

delegation from China, representing 44,000 Chinese local-level chambers of commerce, has expressed interest to explore cooperation and investment opportunities in the Philippines, according to the Department of Finance (DOF). The delegation met with Finance Secretary Carlos G. Dominguez III last Thursday and expressed interest to explore possible investment opportunities in the country, as well as a possible tie-up with other business groups within the Association of Southeast Asian Nations to further strengthen trade relations across the region. Gao Yunlong, the chairman of the All-China Federation of Commerce and Industry (ACFCI), was accompanied during the meeting by several Chinese investors engaged in the fields of aerospace and aviation, agriculture, energy, hotels, tourism and other businesses. According to Gao, Chinese private investments in the country will help further fuel the Philippines’s economic growth and deliver real benefits to Filipinos in the form of more job opportunities and higher incomes. The DOF pointed out that Gao had told the finance chief during their meeting that he was impressed with the Philippines’s “economic development and social prosperity” during his first recent visit in Manila. “I bring a number of Chinese entrepreneurs with me, and the mission of our delegation is to seek cooperation and opportunities in the Philippines, including investments and business cooperation,” said Gao, who is also vice chairman of the national committee of the Chinese People’s Political Consultative Conference (CPPCC). Dominguez, in turn, informed the delegation that investment opportunities in the country are open in the areas of private housing, food production and retail, manufacturing, and tourism. “The big investments now, in the Philippines, I think is going to be in private housing, food production, in the retail food business, in manufacturing—our manufacturing is growing last quarter at 18 percent. These are the areas [where] we welcome investments,” Dominguez said. He said the delegation can open discussions with the Philippine Chamber of Commerce and Industry on exploring business partnerships and opportunities in the country and in linking up with other business groups across the Asean region. Chinese officials and businessmen with Gao during the meeting were: Chinese Ambas-

sador Zhao Jianhua; Lawrence Ho, member of the National Committee of CPPCC, vice chairman of ACFCI, and chairman and CEO of MELCO International Development Ltd.; Chang Zhaohua, member of the National Committee of CPPCC, vice chairman of ACFCI, vice chairman of Shanghai Federation of Industry and Commerce, and chairman and CEO of Shanghai MicroPort Medical (Group) Co. Ltd.; Ma Jun, secretary of the delegation and director general of Liaison Department of ACFCI; Li Chunguang, director general of the General Office of ACFCI; Wang Litao, deputy director general of Poverty Alleviation and Social Service Department of ACFCI; and Lin Yinsun, deputy to the National People’s Congress, vice chairman of China Society for Promotion of the Guangcai Program, member of the Standing Committee of ACFCI, vice chairman of Jiangxi Federation of Industry & Commerce and chairman of the Board of Zhengbang Group Co. Ltd. Also in the meeting were: Wang Licheng, member of the Standing Committee of ACFCI, chairman of China-Africa Business Council, and president and CEO of the Board of Holley Group; Shang Jiyong, vice chairman of China Society for Promotion of the Guangcai Program, vice chairman of Shandong Federation of Industry & Commerce, and chairman of the Board of China Wanda Group; Zhang Lei, executive committee member of ACFCI, vice chairman of Guizhou Federation of Industry & Commerce, and chairman of the Board of YuTian Group; Wang Junhao, executive committee member of ACFCI, president of China Agriculture Industry Chamber of Commerce, and vice chairman and president of JuneYao Group; Xiang Wenbo, vice chairman of Hunan Federation of Industry & Commerce and president of SANY Group; Zhang Zengchang, vice chairman of the board of Zhongqi Holding Group; and Cao Qingshe, vice chairman of Hebei Construction Group Corp. Ltd. Dominguez, through the delegation, thanked China for its continuing full cooperation and support of renewed bilateral cooperation with the Philippines initiated by President Duterte and Chinese President Xi Jinping in 2016. The ACFCI is a civil-society organization that engages with Chinese private entrepreneurs. It has now grown to include 44,000 local-level business chambers or organizations with 47 million members combined. “These private companies [account for] 60 percent of the GDP and 50 percent of the tax revenues [of China]; moreover, they contribute 70 percent to technological and product innovation in China and 80 percent of China’s jobs,” Gao said.

(Editor’s Note: As the administration’s cozying up to China draws flak with the huge expansion of the Asian giant’s facilities on Philippine-claimed islands in the West Philippine Sea, yet another aspect of Manila-Beijing relations is cause for concern, according to the Freedom from Debt Coalition. The FDC, in a statement by its president Prof. Rene Ofreneo, warned of the perils behind making China the country’s main economic patron, particularly in terms of accepting loans for projects under the “One Belt, One Road” initiative. The FDC states its case below, reminding one and all of how the country’s similar direction in decades past once led it to perdition).

MID the tumult regarding the Chinese militarization in islands claimed by the Philippines as part of its territory, the Duterte administration seems dead set in its course of embracing China as its principal patron in implementing its economic program. Early this month, the Bureau of the Treasury announced that as of the end of March, the national government debt has reached P6.82 trillion, up from P6.189 in March last year. This increase was attributed to a weakening peso that went down to 52.25:$1 from 52.07 in February and an increase in third countrydenominated debt. The latter was due mainly to the issuance of panda bonds, denominated in renminbi, acclaimed by the Department of Finance as “shaking up the international markets.” The government also announced that domestic debt rose to P4.46 trillion for an increase of 0.8 percent month-on-month and 12.6 percent year- on-year, re-

spectively, while external debt rose to P2.413 trillion for an increase of 0.9 percent month- on-month and 8.6 percent year-on-year, respectively. These current figures reflect the government’s decision to increase the share of foreign borrowings to the total financing program to 65 percent domestic to 35 percent external from the previous 74 percent domestic to 26 percent external. In particular, the sale of 1.46 billion renminbi or nearly P12.2 billion in three-year panda bonds in China at a yield of 5 percent, the first by an Asean country, reflects the Philippines pivot toward China in its financing strategy for its development plan until 2022, especially its much-touted infrastructure program dubbed as “Build, Build, Build.” While all may seem well, the Freedom from Debt Coalition points to the lessons of history from the Marcos dictatorship that also had its ambitious infrastructure program in the 1970s that led to rampant cronyism, corruption and eventually the economic crisis in the early-1980s, precipitating the ouster of Marcos in 1986. If emerging cases of corruption are an indication, the Duterte administration is not impermeable to efforts by cronies and opportunists to find ways for these domestic and external financing to line their pockets. The FDC also cautions the Duterte administration on the particular economic risks posed by Chinese loans under the “Belt and Road” Initiative. Already there are concerns about project delays, ballooning debt and sovereignty encroachments in countries,

such as Indonesia, Bangladesh, Lao PDR and Sri Lanka. This should particularly concern the Philippines as the government has recently reported that there are plans within the year to sign agreements on the “first basket” of projects to be funded by Chinese official development assistance (ODA), namely, the Metropolitan Waterworks and Sewerage System’s P10.9-billion New Centennial Water Source-Kaliwa Dam, the National Irrigation Administration’s P2.7billion Chico River Pump Irrigation Facility and the Department of Transportation’s P151-billion Philippine National Railways-South Long Haul Railway. There is the need to ensure that these projects comply with national laws, benefit local economies, generate local employment, meet environmental standards, and uphold social safeguards. It is imperative that these initiatives are fully transparent, accountable and participatory, and adhere to stringent financial, social and environmental criteria. If these projects are found to be deficient in this regard, the government should not enter into these agreements. It is disturbing that the projects analogous to the ones enumerated above have already faced resistance from concerned communities and/or proven to be mired in corruption such as the National Broadband Network, and NorthRail projects during the Arroyo administration. Ultimately, the FDC calls for prudence on the part of the Duterte administration in contracting loans for its economic and infrastructure program lest it be said that the price of sovereignty is the pain of indebtedness.

Metro Manila labor turnover rate slows in 2017 By Cai U. Ordinario

@cuo_bm

IGHER numbers of workers being separated or resigning in agriculture, real estate and manufacturing caused labor turnover rates in Metro Manila to slow in the last quarter of 2017, according to the Philippine Statistics Authority (PSA). Data from the Labor Turnover Survey (LTS) showed Metro Manila’s labor turnover was at 1.38 percent in the fourth quarter of 2017, from 3.36 percent in the same period in 2016. The PSA explained Labor Turnover as referring to changes in the employment of an enterprise during a reference period resulting from accessions (hiring to replace resignations or hiring to expand) and separations of workers. “On a year-on-year basis, this figure represents a setback in employment growth, from the 3.36-percent rate posted in the same period in 2016. This can be attributed to the declines in labor turnover rate registered in agriculture, forestry and fishing sector since the third quarter of 2017,” the PSA said.

Data showed the labor turnover in agriculture contracted 4.61 percent; real estate, 0.59 percent; manufacturing, 0.47 percent; and electricity, gas, steam and air-conditioning supply, 0.35 percent. Separations, which refer to terminations and resignations, were higher in these sectors compared to accessions, which refer to expansion and replacement of employees. Separations in agriculture, forestry and fishing was at 6.48 percent; real estate, 4.99 percent; manufacturing, 5.3 percent; and electricity, gas, steam and air-conditioning supply, 1.92 percent. Accessions in agriculture, forestry and fishing was only at 1.87 percent; real estate, 4.39 percent; manufacturing, 4.83 percent; and electricity, gas, steam and air-conditioning supply, 1.57 percent. Meanwhile, PSA data showed that in terms of separations, these were mostly employee-initiated. Employee-initiated separations or quits stood at 4.12 percent, while only 2.77 percent were due to lay-offs and ter-

minations by the employers. However, among the sectors that saw contractions in labor turnover, higher termination rates as compared to quits were reported. In agriculture, forestry and fishing, termination was at 5.39 percent compared to quits, 1.09 percent; in industry sectors, 3.23 percent terminations versus 3.03 percent quits. The largest difference was registered in mining and quarrying, 10.85 percent termination versus 2.01 percent quits. The LTS is a quarterly sample survey of enterprises conducted by the PSA since the third quarter of 2002. The survey aims to capture “job creations” and “job displacements” in business enterprises based in Metro Manila by collecting quarterly data on accessions and separations of workers. A total of 1,372 enterprises served as respondents to the LFS of the fourth quarter of 2017. The sample enterprises were drawn from the 2016 List of Enterprises. The retrieval rate for this quarter was placed at 98.8 percent.

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Banking&Finance BusinessMirror

Editor: Jun B. Vallecera • Monday, May 28, 2018

Samurai, dollar bond sales need careful timing

By Rea Cu @ReaCuBM

he Bureau of the Treasury (BTr) looks to raise $2 billion from the sale of so-called samurai and global bonds but is stymied as to the timing of their issuance. The bonds form part of the government’s financing mix for 2018 and come at a time when interest rates are buoyant. Deputy Treasurer Sharon P. Almanza told financial reporters the BTr plans selling $2 billion from the launch of a samurai bond in the third quarter this year, as well as the second issuance of global bonds soon after. She did not tell how the $2 billion will be split between the samurai bond sale and the dollar-denominated bond offering.

“It’s a split between the samurai and dollar [bonds] but we don’t know yet how much” will be raised from each one, Almanza said. She added the financing mix for 2018 calls for a ratio of 65:35, with the bulk raised from domestic lenders and the remaining 35 percent from the offshore entities.

Almanza said some $2.5 billion were to come from ODA or official development assistance loans and another $4.2 billion from commercial lenders, “including the one we did early this year.” Samurai bonds provide the issuer access to Japanese capital, which can be used for domestic investments or for financing operations outside Japan. In January this year the government launched a 10-year dollar-denominated bond and raised $2 billion as part of its funding program this year. ROPs or global bonds are shorthand for dollar-denominated IOUs issued by the government. The government also launched the first-ever Panda bond sale in March this year and raised another $200 million. In March the Philippines became the first Asean sovereign to issue Panda bonds, which was a three-year bond fetching a coupon rate of 5 percent, a tight spread of only 35 basis points above benchmark when sold in the onshore Chinese bond market. The government’s inaugural sale of renminbi-denominated bonds was met by oversubscription, with bids reaching RMB 9.22 billion compared with the offer

size of only RMB 1.46 billion. Panda bonds are renminbi-denominated securities from a non-Chinese issuer but sold in the People’s Republic of China. In January this year the Philippines successfully returned to the global bond market with $2 billion in 10-year new money bonds.

Case clippings

By Justice S J Ranada Jr. DOCUMENTARY EVIDENCE–defective notarization

The absence of notarization of a deed of sale does not invalidate the transaction. A defective notarization will strip the document of its public character and reduce it to a private instrument. Consequently, when there is a defect in the notarization of a document, the clear and convincing evidentiary standard normally attached to a duly notarized document is dispensed with, and the measure to test the validity of such document is preponderance of evidence Diampoc v. Buenaventura 19 Mar. 2018

Perspectives Provinces adopt financial inclusion program KasamaKA Instinct over data

it h c u s t o m e r d e m a n d s changing continually, and the technology landscape in a constant state of flux, CEOs now see agility as the dominant currency of business. But the quest for ever-greater agility does not mean they simply have to embrace data and intelligent technologies wholesale at the expense of human qualities. CEOs are also bringing their own intelligence to bear, combining their experience and intuition with data-driven, predictive intelligence to spot new growth opportunities.

Agility

Innovations President and CEO Orlando B. Vea (from left), PLDT Group Chairman Manuel V. Pangilinan, League of Provinces of the Philippines National Chairman Gov. Al Francis C. Bichara and FINTQ Managing Director and KasamaKA Founder and Lead Convenor Lito Villanueva

asamaKA, a pioneering grassroots-based movement aimed at empowering the unbanked population, has been officially adopted as the financial inclusion and social advocacy program across 81 provinces in the country through a resolution signed by the National Executive Board of the League of Provinces in the Philippines (LPP). Through KasamaKA, FINTQ—the financial arm of PLDT and Smart’s Voyager Innovations—enables bank and nonbank financial institutions to offer “sachet” financial services, such as microsavings, microinsurance, lending and micro investment, among others—a first in the Philippines. The initiative will tap millions of sarisari stores, which can act as correspondent

agents of banks. Soon, Filipinos can then access these affordable services and get incentives when they become a KasamaKA member. The initiative will also cover alternative credit scoring for the unbanked and underserved to access affordable financing with corresponding electronic Know-Your-Customer (eKYC) capabilities. Through a National Executive Board resolution adopted and signed on May 18 by the LPP, composed of the governors of all 81 provinces in the country, they pledged to encourage their constituents to become part of KasamaKA by conducting financial literacy and education campaigns. Together with various partners and with the support of the provincial governments, FINTQ is conducting financial inclusion caravans all over the country.

In a digital economy, where new technologies are constantly reshaping industries and business models, the ability to innovate quickly is a strategic imperative. In the survey, 59 percent of CEOs say that acting with agility is the new currency of business and that if they are too slow they will go bankrupt. “Acting with agility is not just the new currency of business; it’s the most valuable currency today,” KPMG’s Goodburn says. “If you succeed, you succeed faster, and if you fail, you fail quicker—both of which add to the health of a business.”

Build the ecosystem

To get more agile and put digital innovation on the fast-track, organizations are aggressively building their networks (or “ecosystems”) of third-party innovation partners. More than half of organizations (53 percent), for instance, will set up accelerator or incubator programs for start-ups. But simply having a start-up friendly ecosystem is no guarantee of success. CEOs need to focus on driving value from their networks and ensure that

The transaction marked the first time the Republic issued a 10-year dollar-denominated bond since 2014. The new bonds were offered concurrently with a 1-day accelerated switch tender offer for 14 of the Republic’s outstanding dollar bonds maturing from 2019 to 2037.

cultural barriers and concerns about data sharing don’t limit the success of innovative ideas. For Dow’s Liveris, the innovation process is a mix of freedom and collaboration with customers. “If you’re going to move a consumer on digital speed, you can’t govern and control every last thing. We’ll build something to a minimal viable product—maybe 60-percent completion—and then cocreate with a customer so we can bring value to them much faster.” For Tata Communications’ Kumar, cultural alignment is another significant issue. “There is a challenge around aligning cultures and speeds of large companies with those of start-ups,” he says. “Also, larger companies tend to be more inclined to keep the pie to themselves, whereas start-ups need to work with multiple players to test their technology and proofs of concept. There’s an expectation mismatch.”

Intuition

Data and analytics have changed how CEOs and the rest of the C-suite make business decisions. And they continue to get more sophisticated: AI that draws on deep learning techniques, for example, will transform predictive analytics. Yet, CEOs have not lost sight of the importance of their own intuition, experience and judgment. In our survey, in the past three years, 67 percent say they have overlooked the insights provided by data and analytics models or computerdriven models because they contradicted their own experience or intuition. KPMG’s Hill likens this to the experience behind the wheel of a race car. “There’s a mountain of technical data— brake pressure, angles of steering input—

GR 200303 Del Castillo, J

all coming at once. At some point, experience kicks in and, if necessary, overrides all the other signals.” CEOs in the US are particularly likely to draw on their domain expertise and unique insights when making critical strategic decisions, with three-quarters saying they have overlooked computerdriven models in the past and followed their intuition instead. CEOs also show some skepticism about data. Over half (51 percent) say they are less confident about the accuracy of predictive analytics than historic data. They want to understand where the data that informs predictive models has come from and whether it can be trusted. “Understanding where the data comes from is crucial for us,” Cintra’s Díaz-Rato says. “We have seen exciting insights that would be powerful provided they were representative of our overall customer base, but they weren’t. You get fascinated by the degree of granularity you get from customers’ behavior from a certain app, but the question is, are the users of this app representative of the whole population a project is serving? You can be driven to wrong conclusions if you just follow the data blindly.” The article “Instinct over data” was taken from the publication entitled Growing Pains: 2018 Global CEO Outlook. © 2018 R.G. Manabat & Co., a Philippine partnership and a member-firm of the KPMG network of independent memberfirms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in the Philippines For more information on KPMG in the Philippines, you may visit www.kpmg. com.ph.

A BusinessMirror Special Feature

PHILIPPINES AUSTRALIA FRIENDSHIP DAY

2018

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Monday, May 28, 2018

INNOVATION SUMMIT C

OINCIDING with Philippines-Australia Friendship Day, Ambassador Amanda Gorely opened the inaugural Australian Innovation Summit in Manila. The summit, hosted by Austrade, brought together over 100 high-level representatives and thought-leaders from Australia and Philippine government, industry, academe and the private sector to foster cooperation and practical exchanges. The pilot initiative showcased Australian innovation in key priority areas for the Philippines and its future growth. Australia continues to be one

of the top preferred study destinations in the Philippines, with over 10,000 students coming to Australia for education every year. Australia is a global education powerhouse with some of the world’s facilities and educators, providing students with over 22,000 courses across 1,100 institutions. Australian education has a distinct focus on meeting global industry needs, providing quality

training, connecting skills with job outcomes. Australian universities have a proven track record globally, ranking consistently high for their quality of education, research and student satisfaction. Our institutions continue to feature in the top 50 ranked universities in the world across a range of study fields, including Arts and Humanities, Clinical, Pre-clinical and health, Engineering and Technology, Life Sciences, Physical Sciences and Social Sciences. In addition to our strong academic credentials, Australia has five of the 30 best cities in the world for students based on student mix,

Australian Ambassador Amanda Gorely and Department of Information and Communications Technology (DICT) Undersecretary Eliseo Rio Jr. delivered opening remarks at the inaugural Australian Innovation Summit in the Philippines. The summit highlighted both countries shared interest in expanding collaboration in priority areas for the Philippines’ future growth.

affordability, quality of life, and employer activity. Many of the international students who have studied in Australia have returned to their own coun-

tries, and elsewhere in the world, to become government ministers, business leaders, researchers, scientists, medical practitioners and community leaders. The Australian educa-

tion system has produced scientists, designers, educators, entrepreneurs, artists and humanitarians who have changed the world and won prizes from Nobel to the Oscars.

Ms Liza Noonan,South East Asia Director of Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) joined the discussion on fostering innovation and ensuring Digital Inclusion in Australia and the Philippines.

Announced at the sidelines of the Australian Innovation Summit is the formation of a blockchain association in the Philippines. (from left – Ms Elodie Journet, Austrade Senior Trade & Investment Commissioner; Mr Edwin Bautista, Unionbank President; Mr Joey Concepcion, Presidential Adviser for Entrepreneurship; Mr Ronald Tucker, founder and Mr Nick Giurietto, Chief Executive Officer and Managing Director at the Australian Digital Commerce Association (ADCA).

Australian Ambassador Amanda Gorely and Australian didgeridoo artist Jeremy Donovan talks to Bagobo Tagabawa tribe during the grant handover to the Philippine Eagle Foundation.

A BusinessMirror Special Feature

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Monday, May 28, 2018

PHILIPPINES-AUSTRALIA FRIENDSHIP WEEK IN DAVAO Australia and the Philippines are partners for education: Australian Embassy Political and Public Affairs Counsellor Clare Duffield joined In the photo: (L-R) Australian Embassy Political and Public Affairs Counsellor Clare Duffield, Australian Embassy the Department of Education’s Friendship Day Deputy Head of Mission Mat Kimberley, Davao City Mayor Sara Duterte, Davao City Administrator Zuleika Lopez Brigada Eskwela at Teodora Palma Gil Elemenin front of the Davao City Hall to mark the Philippines-Australia Friendship Week celebration on 21-27 May 2018. tary school, Davao City

HE Australian Embassy and the Davao City Government and the Australia Global Alumni network celebrated Philippines-Australia Friendship Week in Davao. The City Government of Davao 21-27 May 2018 Philippines-Australia Friendship Week in recognition of the enduring friendship between the two countries. Davao City Mayor Sara Duterte welcomed Australian Deputy Head of Mission Mat Kimberley at the Davao City Hall Flag Raising ceremony to kick off PhilippinesAustralia Friendship Week. Throughout the week, Australian Embassy and Australia Global Alumni volunteers joined in various activities to help Davao students get ready for the opening of classes. To celebrate Philippines-Australia Friendship Day on 22 May, the Embassy joined in Brigada Eskwela 2018, visited Waan Elementary School for the Davao City Mobile Library Summer Outreach, and unveiled the Australian Corner at the Davao City Library. The highlight of the week is a 3-day festival at SM La-

nang. Australian Ambassador Amanda Gorely hosted a reception for Davao’s movers and shakers to celebrate the weekend festival. Davaoeños were treated to a free public concert featuring the unique collaboration between renowned Australian didgeridoo player Jeremy Donovan and Davao’s young artists THEA and Neil Llanes. Legendary artist Pilita Corrales also did a special performance at the Philippines-Australia Friendship Day concert on Saturday, 26 May at the SM Lanang Premier. Before she became an icon of Filipino music, Ms Corrales first achieved popularity in Australia. In 1958, she launched her first recording “Come closer to me” which topped the Australian music charts. Her popularity in Australia was so strong there is even a street named after her in the state of Victoria. Due to her popularity, a street in Victoria was named after her.

AUSTRALIAN EXCELLENCE AWARDS 2018

Dr Roy Ponce, Vice President of Research and Extension at the Davao Oriental State College of Science and Technology, received the 2017 Excellence in Innovation Award for his afterschool care project for children in underprivileged communities. He earned his PhD in Education from the University of Melbourne.

Mr Milton Medina, Director of Qualitative Studies and Biodiversity Research at Mindanao University, received the 2017 Young Achiever’s Award for his work on science education materials, Mr Media used local Filipino flora and fauna endemic. He received his Master in Science from Curtin University.

HOUSANDS of Filipinos have completed undergraduate and postgraduate programs in Australia since the 1950s, and the Australian Embassy sets out to acknowledge their successes. The Australian Alumni Excellence Awards recognise and celebrate the achievements of outstanding Australian-educated Filipinos in their field, industry or community. “The awards showcase the diverse individual achievements of Australian educated Filipinos. They are current and future leaders, influencers and changemakers. Alumni make a crucial contribution to the strong bonds of friendship between Australia and the Philippines,” said Australian Ambassador to the Philippines Amanda Gorely. Two of last year’s three awardees are from Mindanao. Outstanding Filipino graduates of Australian universities will be recognised at the 2018 Australian Alumni Awards Night 0n 28 June, hosted by the Australian Ambassador to the Philippines, Amanda Gorely.

Davao City operates a mobile library to service outlying communities as part of the city governments’ literacy program. The program has contributed to Davao City’s high literacy rate of 98.7%. Australian Embassy officials joined the Davao City Mobile Library Summer Service caravan to Waan Elementary School in Buhangin District. Australian Indigenous artist and literacy advocate Jeremy Donovan took part in a story-telling session and shared the unique sound of the didgeridoo with the students.

Ms Corrales continues to perform to international audiences, including world leaders. At last year’s ASEAN welcome dinner, Ms Corrales famously sang a duet with Philippine President Rodrigo Duterte in front of world leaders including Australian Prime Minister Malcolm Turnbull.

Green Monday BusinessMirror

A8 Monday, May 28, 2018

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

How green are ecotourism sites?

By Jonathan L. Mayuga

@jonlmayuga

o monitor the quality of tourist sites, enhance their ecological value, help preserve natural-resources and enhance their benefits for tourists, the Department of Environment and Natural Resources-Ecosystems Research and Development Bureau (DENR-ERDB) recently released an Ecotourism Tracking Tool (ETT) to rate how “green” is an ecotourism site.

Interviewed at the sidelines of the celebration of the 2018 International Day for Biological Diversity at the National Museum of Natural History in Manila last Tuesday, DENR-ERDB Director Henry A. Adornado said the tracking tool classifies the quality of ecotourism sites based on several parameters. The parameters include policies, operations and management, sociocultural value, ecotourism products and services, economic benefits, financing/enterprise building and biological facilities. The tracking tool aims to help concerned authorities—whether national or local government, the private sector or even the tourists themselves—evaluate the real activities of resorts, recreational and tourism sites in relation to their “friendliness” to the environment and adherence to the principles of ecotourism. Environmental advocates welcome such initiative while pitching in what ecotourism in the Philippines should be all about.

Government crackdown

The release of the ETT came on the heels of a nationwide crackdown targeting some of the country’s tourist destinations and a six-month moratorium on tourism on Boracay Island, the country’s top tourist destination, in the municipality of Malay in the Aklan province. The closure of Boracay, which started on April 26, came upon the recommendation of the Interagency Task Force Boracay led by Environment Secretary Roy A. Cimatu, to fast-track its rehabilitation effort and to allow its degraded environment to recover from decades of neglect and abuse. As part of the crackdown, the DENR had also started to go after violators of environmental laws— particularly the Clean Water Act, Clean Air Act, Forestry Code and their respective rules and regulation through show-cause orders and notices of violations. The campaign against erring tourism establishments is also ongoing in El Nido and Coron in Palawan; Puerto Galera in Occidental Mindoro; Panglao Island in Bohol; and other tourist spots that showcase the aesthetic beauty of the Philippine environment.

Ecotourism haven

Blessed with rich natural resources, white-sand beaches and pristine waters, breathtaking waterfalls, views from mountain peaks, astonishing landscapes and seascapes, enchanting rivers and lakes, a diverse culture with friendly, friendly people and communities as hosts, the Philippines can be considered an ecotourism haven. The country’s tourism industry continues to grow together with its annual contribution to the economy, generating tens of thousands

of jobs and creating livelihood opportunities to otherwise sleeping agricultural and fishing towns in the countryside. In 2017 the Department of Tourism reported that foreign tourist arrivals alone hit the 6.6-million mark, exceeding by at least 11 percent the previous year’s 5.97 million tourist arrivals.

What is ecotourism?

Ecotourism has var ying definitions, but it genera lly refers to activ ities that involve tr ips to a pl ace where people can commune w ith nature. The most common form of tourism, ecotourism is supposed to be a low-impact activity in contrast to commercial mass tourism, such as leisure tourism, which includes family, cultural, religious and sports tourism. Other forms of tourism like business, culinary and medical tourism are also gaining traction. Ecotourism activities range from a simple walk in the park to bathing and swimming in beaches, diving or snorkeling; boating and island hopping; trekking, camping and climbing mountains; swimming, boating or a simple picnic near inland water bodies like rivers, waterfalls or lakes. In the Philippines ecotourism attractions sometimes involve wildlife interaction whether in an artificial or natural habitat.

Wrong perception

While saying an ETT will help in monitoring development in identified ecotourism sites, such tool will not be able to solve the problem brought about by the government and the general public’s wrong perception and understanding of what ecotourism is, said AA Yaptinchay of the Marine Wildlife Watch of the Philippines. “Ecotourism means creating a balance among nature conservation and business enterprise, and education for visitors and local communities. Tourism should be intended to help enhance natural attractions and local culture, not degrade them,” Yaptinchay told the BusinessMirror through Facebook Messenger. “Ideally speaking, there is no pure ecotourism site in the Philippines, because the whole country is riddled with higher problems, such as poverty, overpopulation, corruption, overfishing, deforestation and pollution,” he said. Yaptinchay added: “How can you make ecotourism sustainable? Ecotourism falls under the realm of sustainable tourism. If it is not sustainable, it cannot be ecotourism.”

Science-based development

According to Yaptinchay, sustainability means planning way ahead, multigenerational and applying the precautionary principle used in conservation when making decisions.

Gregg Yan (right) and fellow mountaineers are atop Mount Fato in Barangay Maglicong, Bontoc, Mountain Province. On their way down the mountain, the three were able to bring down three bags full of plastic waste left behind the trail by irresponsible climbers. Photo from Gregg Yan

“In natural settings, sustainability has a biological and ecological basis which, to understand these processes, needs science. Science is necessary for the decisionmaking of tourism development. Simply put, we can develop, but not at the cost of losing ecosystem services and [if it would cause] people’s suffering,” he said. Yaptinchay noted that the Philippines has many laws to protect the country’s natural environment and ecotourism sites from being overdeveloped. “We just need to implement them and ensure that hindrances are eliminated, such as corruption. But it is not only the development of sites that needs regulation; visitor activity and behavior also need to be regulated,” he said. Interaction with marine animals in the wild had become very popular, especially with whale sharks, turtles and dolphins, but Yaptinchay lamented that there are no guidelines or regulations for these activities. He also expressed concern that Philippine tourism relies heavily on its natural resources, from its beautiful islands to the seafood served in fancy restaurants. In some ecotourism sites, these are even the main attractions, he noted. “Sustained livelihoods mean sustained resources. A framework like the UN [United Nations] Sustainable Development Goals should be taken seriously and applied to all our activities to ensure that our future, not only in tourism, is secured. In other words, the only way is to look at the bigger picture,” he said.

Ecotourism quality

Gregg Yan, environmentalist and Best Alternatives Campaign founder, said in response to questions through Messenger on May 16 that a certification system, using a tracking tool that will rate an ecotourism site, would definitely improve the quality of ecotourism in the country. “Subjective systems are not accurate gauges, so certification should be standardized. Hotels and restaurants, for instance, are awarded stars for conforming to best practices. So, too, can resorts, lodges and tour operators win points by adopting green practices and technologies. Visitors will now be able to patronize and empower

the most conservation-minded offerings,” he suggested.

Tourism with ‘green’ heart

“I’d say good ecotourism is tourism with a ‘green’ heart. It should have positive env ironmental, economic and social impacts. A low-impact tribal tour up a mountain, which immerses guests in indigenous culture and leaves the mountain, guides and guests better after a climb is a great example,” said Yan, an experienced climber. He added: “ The locals benefit, the guests are spiritually enriched, while the mountain is scoured of garbage or given more indigenous saplings to recover from years of logging.” According to Yan, tourists should be mindful of their carbon footprint, as well as the negative impacts on the areas they visit. However, on a more positive note, Yan said his group, the Best Alternatives, is now promoting the idea of “carbon handprint,” which is the positive impacts enjoyed by the communities, wildlife and habitats that they visit. “Visitors have a vital part to play here. We’re pilot-testing a Green Climber concept whenever we trek up a mountain. Each group has a designated Green Climber equipped with a trash bag attached to his or her pack. Other climbers collect and dispose of nonbiodegradable trash by chucking it in the bag. This spreads the effort and leaves trails cleaner after a climb. Each climb can, thus, improve the state of the mountain,” he said. “Last, the spirit of sustainable, low-impact enterprise can enrich the experience for tourists and operators alike. Quality homestays, local experiences like learning to plant and harvest rice or weave indigenous tapestries, locally sourced food and souvenirs made from renewable materials like driftwood can add pesos, dollars and positive memories for all players.”

A greenwashing tool?

Leon Dulce, national coordinator of K alikasan-People’s Network for the Environment, said in an e-mailed reply to the BusinessMir ror on May 16 that an ecotourism-certification system, like all other environmental planning and management tools and technologies, would take on the function of its

Tourism should be intended to help enhance natural attractions and local culture, not degrade them.” —Yaptinchay

overarching policy framework. “The ecotourism tracking tool would function as a greenwashing tool in the current commercialized and privatized setup of the tourism industry,” he warned. With Special-Use Agreements in Protected Areas serving as Trojan horses into “no-go” zones, coupled with toothless environmental compliance regulations, big tourism companies would find it easy to encroach into critical ecosystems and achieve “platinum” ratings with insufficient compliance to standards, Dulce said. According to Dulce, ecotourism projects should be guided by the basic principle of “people, the planet over profit.”

Sustainable livelihood

Ecotourism, Dulce said, should serve as a sustainable livelihood to grassroots communities. “It should be oriented toward educating tourists of the cultural and natural heritage in the landscapes and motivate action to conserve these areas,” he said. All activities within these landscapes must be regulated based on the carrying capacity of the ecosystems and the democratic consultation, participation and decision-making of its caretaker communities. “Ecotourism areas should, thus, be maintained as public commons, enjoy sufficient state subsidy and integrate development and management plans of the grassroots communities. Such plan should include scientific assessment of the landscapes and a community-based approach, which, in turn, will inform tourists on caps, limits on construction of facilities and other features of the management plan,” he added.

Striking a balance

In an interview with the BusinessMirror through social media on May 14, Paolo Pagaduan, director at the Center for Philippine Biodiversity Journalism, said an ecotourism-certification system could help the government keep track of the many parameters they need to monitor to effectively manage an ecotourism site. “An ecotourism site must always strike a balance between the people, the planet and profit. Beyond the labeling of ecotourism sites, it should also be sustainable,” he said. For ecotourism to be sustainable, it should also provide direct financial benefits to the local communities, as well as for conservation work. “A place where tourists can enjoy nature is not sustainable unless it is also anchored on specific interventions for conservation,

and improve the well-being of the locals, particularly in the Philippines because our ecotourism destinations are almost always inhabited by indigenous peoples as part of their ancestral domain,” Pagaduan added.

Citizen-science platform

He said there should also be a citizen-science platform to help the government in monitoring these sites. “We can harness the Filipino zeal for social media to become watchdogs for the government to help avoid similar situations from cropping up. But these have to be official platforms of the government so that we know that the reports do reach government, and then we can hold people accountable for their inaction,” he said. Another idea is to go beyond the concept of carrying capacity. Some ecotourism sites abroad easily accommodate millions of tourists per year. Sometimes it is not about the sheer volume of tourists, but rather, it is what we allow tourists do in the ecotourism sites, he noted. “An example of how regulation can help stop identified risks— like discarded plastic cups during a recent race—is to prohibit the use or possession of such items in the first place. Provide facilities to address the need for these disposable products, then we will never need to bother with plastic cups again in that area,” Pagaduan pointed out.

Whole system approach

He said the government must always consider the whole system and not just the big players in trying to improve ecotourism as an industry. “There are always ancillary services tied to the major industries like tourism. These small players have practically no means to address sudden shocks to the system for extended periods of time. They don’t have the capital to sit around and wait for six months. But in order to address this problem, you have to go back a few steps and provide opportunities for the small players to play a role in the governance of ecotourism sites,” he said. Pagaduan noted that meaningful participation is the key so that the government will have a better understanding of the whole system and not just the tip of the iceberg with the big players. “Finally, all these policies must be backed by hard science. The best that we as NGOs [non-governmental organizations] can play is to help provide knowledge products for the policy-makers, as well as the stakeholders, to make better-informed decisions,” he said.

Biodiversity Monday BusinessMirror

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Monday, May 28, 2018

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Owing to environmental degradation

Cimatu: PHL facing natural-resource scarcity Story & photo by Jonathan L. Mayuga @jonlmayuga

he Philippines is now facing natural resource scarcity due to numerous-factors, foremost of which was the degradation of terrestrial and marine ecosystems. Environment Secretary Roy A. Cimatu said this in his keynote speech marking the country’s celebration of the International Day for the Year of Biodiversity (IDYB) held at the National Museum of Natural History along T.M. Kalaw Avenue in Malate, Manila, on May 22. In his speech, Cimatu underscored the need to protect the countr y’s terrestrial and marine ecosystem through stronger protection measures for the country’s protected areas covered by Republic Act 7586, or the National Integrated Protected Areas System (Nipas) Act. “Our protected areas are the last bastion of our endemic but threatened wildlife and habitats. Recognizing this imperative, the Philippine Congress passed the expanded Nipas bill early this year, increasing our protected areas to 3 million more hectares. Hopefully, the president signs it into law soon,” he said. Cimatu admitted that, with the limited work force and resources, it will be a challenge for the Department of Environment and Natural

Resources, but nevertheless, it will be a very welcome challenge. The DENR chief said that, as signatory to the Convention on Biological Diversity (CBD), the Philippines spearheads landmark actions on biodiversity conservation from 1992 up to the present. The Philippines was one of the first countries to sign the CBD at the Earth Summit in Rio de Janeiro in 1992. This commitment was affirmed when the Philippine Senate ratified the CBD on October 8, 1993. According to Cimatu, being one of the 17 mega-diverse countries in the world, the Philippines has identified biodiversity conservation as a major strategy for sustainable development. “Our centerpiece response to protect and conserve our biodiversity resources is the establishment of the integrated protected areas system,” he said, referring to the mandate of the Nipas Act, which provides for the establishment and management of a comprehensive protec ted-area system to protect and

National Museum Director Jeremy Barns hands over the deed of donation for the life-size replica made of fiberglass of “Lolong”—the largest saltwater crocodile ever to be captured alive from the wild—to Director Crisanta Marlene Rodriguez of the Department of Environment and Natural Resources-Biodiversity Management Bureau as part of the celebration of the 2018 International Day for Biological Diversity.

maintain the country’s biological diversity, including natural and cultural resources. The Philippines currently has 240 protected areas, but only 13 are backed by legislation, while the rest was established by virtue of presidential proclamations, presidential decrees and executive orders. A c cord i n g to C i m at u , a f firming its commitment to the CBD, the Philippines has passed

several laws that were meant to protect its rich biodiversity and has signed international treaties to which it strengthens commitment for international cooperation and collaboration toward this end. He said that, besides the protected-area management under Nipas, the Philippines, through the DENR, is developing new approaches to biodiversity conservation to expand work beyond

Nipas-declared protected areas. “Under the collective term Other Ef fective A rea-based C o n s e r v at io n Me a s u r e s , w e work closely with indigenous people in Indigenous Commun it y Con s e r ve d A re a s, w it h the local government units in Local Conser vation Areas, and with other stakeholders in Key Biodiversity Areas and Critical Habitats,” he added. The 2018 IYBD celebration was

highlighted by the turnover by the National Museum of Natural History to the DENR-Biodiversity Management Bureau (BMB) of a life-size replica of “Lolong”—the world’s largest saltwater crocodile ever to be captured from the wild in September 2011. It was 22 feet, 3 inches and weighed more than 1,000 kilograms when it was captured in a creek in Bunawan, Agusan del Sur. L o l o n g d i e d i n 2 0 1 3 . It s sk in and skeleta l remains were preser ved by t a xonom ists a nd a re e x h ibited at t he Nat iona l Museu m of Nat u ra l Histor y. I n a n i nte r v ie w w it h t he BusinessMir ror , Director Crisanta Marlene Rodriguez of the DENR-BMB underscored the importance of forging a strong collaboration with the National Museum in educating the public about the importance of the countr y’s rich biodiversity. Also part of the celebration was the unveiling of an artwork, titled Ang Kulay ng Puti, by AG Saño, an environmental advocate, and muralist. After the unveiling, the artwork will be transferred to its permanent home at the Ninoy Aquino Parks and Wildlife in Quezon City. The BMB also launched the book, titled Guidebook to Protected Areas of the Philippines, a series of publications that aim to highlight areas of ecological, economic and cultural significance that are vital to sustaining the natural and cultural heritage of millions of Filipinos.

Amid debate, Wyoming approves Yellowstone-area grizzly hunt ‘Dancing sharks’ herald

HEYENNE, Wyoming—A debate over whether the Yellowstone ecosystem’s grizzly bear population can thrive while being hunted will be put to the test this fall after Wyoming officials last Wednesday approved the state’s first grizzly hunt in 44 years. The hunt, approved 7-0 by the Wyoming Game and Fish Commission, could allow as many as 22 grizzlies to be killed in a wide area east and south of Yellowstone and Grand Teton national parks. Hunt proponents and opponents made last-minute pleas before the commission, which held several public meetings on the hunt around the state and tweaked the hunt rules in response to some previous comments. “Even with a hunting season, I believe there are going to be plenty of grizzly bears on the landscape for people to photograph and come and see,” Todd Stevie with the Sublette County Outfitters and Guides Association told the commission. Environmentalists and nature photographer Tom Mangelsen, a Jackson

Hole resident whose famous images include a salmon leaping into the gaping jaws of an Alaskan brown bear, doubted that. “Killing grizzlies for fun, when there is ample scientific evidence that the population is not growing, food sources have already been diminished and the fur ther effects of climate change is unknown, is preposterous,” Mangelsen told the commissioners. Hunt opponents made up a majority of the two dozen or so people who spoke up at the live-streamed commission meeting in Lander, a town of about 7,600 at the outer reaches of the ever-expanding range of Yellowstone-region grizzlies. The region also includes par ts of Montana and Idaho and is home to some 700 grizzlies, up from 136 when they were listed as a threatened species in 1975. The United States Fish and Wildlife Ser vice removed federal protections for grizzlies in the Greater Yellowstone ecosystem in 2017. Montana has not yet allowed grizzly hunting. Idaho will allow one grizzly to be hunted this fall.

Hunting has been ongoing in Alaska where grizzlies and their minimally differentiated brown bear and Kodiak bear relatives are common. “We heard from the people of Wyoming, they were supportive of this. It’s pretty clear the science supports this,” Wyoming Game and Fish Department Spokesman Renny MacKay said. If legal challenges don’t intercede, hunting will begin on September 1 in the mountains and basins populated by relatively few grizzlies farthest from Yellowstone and Grand Teton. Hunting in a zone closer to the parks would begin on September 15 and end in all areas by November 15. As many as 12 grizzlies could be killed in the zone farther from the parks. Closer in, the limit is 10 and hunting would be stopped once 10 males or one female are killed, whichever happens first. No more than one grizzly hunter at a time will be allowed in the closer-in zone to help ensure nobody accidentally exceeds the quota.

If demand for licenses is high, hunters might wait years for their chance. A computer program will randomly draw names of license applicants who would then pay $600 for a resident grizzly license and $6,000 if they live elsewhere. Names will be drawn until 10 hunters have paid for their licenses and certified they’ve taken a firearms-safety course. Each license will be valid for a 10-day window of opportunity. If approved, hunting could account for a sizeable portion of grizzly deaths in the region this year but not likely the biggest. Of the 56 known and suspected deaths of Yellowstone grizzlies in 2017, 40 were caused by people, including 19 killed by elk hunters and others in self-defense. Environmentalists told the commission Wyoming has little leeway to allow hunting without exceeded mor tality thresholds it agreed to as part of taking over management of the bears from the federal government. AP

Legend of Loch Ness monster will be tested with DNA samples

ELLINGTON, New Zealand—The stories seem as tall as the lake is deep. For hundreds of years, visitors to Scotland’s Loch Ness have described seeing a monster that some believe lurks in the depths. But now the legend of “Nessie” may have no place left to hide. A New Zealand scientist is leading an international team to the lake next month, where they will take samples of the murky waters and conduct DNA tests to determine what species live there. University of Otago professor Neil Gemmell says he’s no believer in Nessie, but he wants to take people on an adventure and communicate some science along the way. Besides, he says, his kids think it’s one of the coolest things he’s ever done. One of the more far-fetched theories is that Nessie is a long-necked plesiosaur that somehow survived the period when dinosaurs became extinct.

Another theory is that the monster is actually a sturgeon or giant catfish. Many believe the sightings are hoaxes or can be explained by floating logs or strong winds. Gemmell said that, when creatures move about in water, they leave behind tiny fragments of DNA. It comes from their skin, feathers, scales and urine. He said his team would take 300 samples of water from different points around the lake and at different depths. They will filter the organic material and extract the DNA, he said, sequencing it by using technology originally created for the human genome project. He said the DNA results would then be compared against a database of known species. He said they should have answers by the end of the year. “I’m going into this thinking it’s unlikely there is a monster, but I want to test that hypothesis,” Gemmell said. “What we’ll get is a really nice survey of the biodiversity of the Loch Ness.”

An undated file photo of a shadowy shape that some people say is a photo of the Loch Ness monster in Scotland AP

He said the real discoveries might come in determining things like the prevalence of invasive species. Gemmell, 51, said he first visited Loch Ness in his late-20s while on vacation. Like thousands of tourists before him, he gazed out over the lake trying to catch sight of a monster. He said he first came up with the idea of testing DNA from the lake a couple of years ago and it resonated with many, including his children, aged 7 and 10.

Graeme Matheson, chief of the Scottish Society of New Zealand, said he, too, has visited Loch Ness and gazed out over the water, and that he wishes Gemmell all the best. “I hope he and his cohor ts find something, although I think they’ll be battling,” Matheson said. “Still, it’s a good way to get a trip to Scotland.” Gemmell said that, even if they don’t find any monster DNA, it won’t deter some Nessie believers. He said they’ve already been offering him theories, like that Nessie might be on vacation after swimming to the sea via hidden underwater caves, or that the creature might be extraterrestrial and not leave behind any DNA. “In our lives we want there still to be mysteries, some of which we will ultimately solve,” Gemmell said. “That’s part of the spirit of discovery. And sometimes, what you find may not be what you were expecting.” AP

Philippine Rise protection

hundred dancers and three shark mascots staged a flash mob at the Quezon City Memorial Circle on May 21 to celebrate the proclamation declaring portions of the Philippine Rise as protected areas. President Duterte issued the landmark environmental policy by declaring more than 350,000 hectares of the Philippine Rise as a marine resource reserve under the National Integrated Protected Areas System (Nipas) Act. Almost 50,000 hectares of the marine reserve was declared as a strict-protection zone, where only scientific research is allowed. “The Philippine Rise represents our hope for a sustainable future. As other parts of our country’s territories are under siege by illegal and destructive extraction activities, Philippine Rise serves as our country’s source and sanctuary of our remaining natural heritage,” Biodiversity Management Bureau Director Crisanta Marlene Rodriguez said in a statement. Volunteers from a host of environmental organizations, including Oceana, Buklod Tao and Eco-waste Coalition, also unveiled a banner thanking the government for declaring the Philippine Rise as a marineresource reserve. “Let us all work harder to protect, manage and conserve this unique biodiversity,” Rodriguez added. The Pangisda Natin Gawing Tama (Panagat), a network of nongovernmental organizations and people’s

organization working for sustainable fisheries, also hailed the collaborative efforts of scientists, government agencies and civilsociety organizations in working for the declaration of the presidential proclamation. “Protecting the Philippine Rise is crucial and timely, and ushers in new hope for the world’s oceans devastated by overfishing, pollution, mining and climate change. It is also important that similar move to protect key marine resources in other parts of the country be given urgent and necessary protection,” Panagat said in a statement. Declared a protected area by President Duterte through Presidential Proclamation 489 on May 15, the Philippine Rise is a 24.4-million-hectare undersea region east of Luzon, which includes a 13.4-millionhectare outer section that was validated by the United Nations’s Commission on the Limits of the Continental Shelf as part of Philippine territory in 2012. The shallowest part of the region is Benham Bank, with a depth of at least 50 meters. In 2016 government scientists reported 100-percent coral cover in several sampling sites, plus over 170 types of fish. The Philippine Rise is also special, as it has been identified as the only known spawning site for Pacific Bluefin Tuna, one of the most valuable fish on Earth. Lawyer Gloria Estenzo Ramos, Vice President for Oceana Philippines, said that the pooled efforts to protect the Philippine Rise is laudable, and should be sustained.

A10 Monday, May 28, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

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editorial

The color war

here is a particular characteristic about the Philippines that runs through this society. Perhaps even as much as the majority of Filipinos are connected by blood, marriage, affinity such as school or profession, and geography. Filipinos lay claim to their provincial roots even after generations removed. Ask someone what province they are from. The answer might be “My father is from Pangasinan and mother is from Cebu.” Then you know you are speaking with a Manileño who was probably bred, born and raised in the area and who has most likely never lived outside of the National Capital Region. In some way the nation is like a village. Living in a village has its own qualities. Most everyone knows or at least knows of each other. There is a sense of community where distant strangers are willing to help in times of calamity and trouble. There are shared experiences and shared memories. Outsiders may be welcomed but there is an underlying and lingering suspicion of motives and intent. However, village life can also have a dark side illustrated in Shakespeare’s Romeo and Juliet set in Verona, Italy. The play opens with a street fight between the servants of two important families—the Montagues and Capulets—who are sworn enemies. In a village, this type of situation can force outsiders to “take sides” even when they have no familial connection to either part of the feud. You can do business with one family or the other but not with both. Battle lines are drawn by geography and even color. The Los Angeles street gang known as the “Crips” wear blue clothing; their bitter rivals—the “Bloods”—wear red. The two factions dominate the village. It seems as if every issue must be divided along loyalty to one side or the other. The Philippines seems to move closer and closer toward the hostilities of Verona or the streets of Los Angeles where there is little rational discussion and none without the prejudice of one group or the other. This can be found in the latest controversy over the naming of the major gateway to the Philippines, the airport in Manila. While most global airports are named after the destination city or country, some are named after a person. There is the Ataturk International Airport in Istanbul, Turkey, and the Ben Gurion International Airport in Tel Aviv, Israel, both named after founders of the nation. Rome, Italy’s airport is named after Leonardo da Vinci and Liverpool, England, named its airport after its most favorite son John Lennon. The naming of every public facility is political. LaGuardia Airport in New York City was named after the man who was mayor when the airport was built. The renaming of our airport to “Ninoy Aquino International Airport” may have been made to honor Benigno “Ninoy” Aquino Jr. But, perhaps, more important than the honor was that the name became a constant reminder of his murder on August 21, 1983. Regardless of who the perpetrators might have been, the event itself was a decisive event in Philippine history that cannot be forgotten. But the political implications of the name change then and great furor over the consideration of another name change now is not good for the nation and that is what should be the priority. The facility that saw all the space flights leading to putting a man on the moon, an initiative of US President John F. Kennedy, was renamed from “Cape Canaveral”—the name of a nearby town—to “Cape Kennedy” after his assassination. After 10 years, the name was changed back to Cape Canaveral.

Morning rituals Atty. Jose Ferdinand M. Rojas II

RISING SUN

usy-ness is a pretty common affliction, so much so that for many of us, there is little time to pursue hobbies and personal interests. In the midst of the day’s flurry of meetings, errands, responsibilities in the office and the home, sometimes there is no time to pick up the guitar or the brush and canvas, or perhaps sit down to write a few lines of poetry—the things that are not very “practical,” but are nevertheless good for the soul. Sometimes it’s exercise or workout that suffers, which is something absolutely necessary. But it is sometimes deprioritized in the name of work that pays or professional duties. For those who keep a 9 to 5 routine, or are raising children alongside that full-time work responsibility, then it becomes more difficult to find time for the self. For single mothers or single fathers, it may be doubly

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hard. Where does one find the time to pursue the little personal dreams or take care of one’s own body and soul? These are valid questions because we all don’t want to wake up one day and realize that the time has gone, that

legally speaking

ouse Bill 7376, “An Act further strengthening the Office of the Solicitor General [osg] by increasing its powers and functions, and redefining, expanding and rationalizing its organization, repealing for the purpose Republic Act [RA] 9417, RA 2327 and Executive Order [EO] 1 and 2, s. 1986, and appropriating funds therefore” (otherwise known as the “osg Charter”), was recently passed by the House of Representatives, voting 162-10. The fact sheet on HB 7376 distributed by the House Committee Affairs Department highlights the following: Objective: n To strengthen the OSG in order to fulfill its role of upholding the best interest of the government as Tribune of the People. n To eliminate overlapping of functions of government agencies and address the expanding needs of government-owned and -controlled corporations (GOCCs) for legal representation. n To enhance government efforts to recover ill-gotten wealth and prosecute cases relative thereto. n To abolish the Office of the Government Corporate Counsel (OGCC) and the Presidential Commission on Good Government (PCGG), and to transfer their powers and functions to the OSG. Key provisions: n Provides for the creation of at least 50 legal divisions in the OSG, each of which shall be headed by an Assistant Solicitor General, with at least 10 lawyers and such other

personnel as may be necessary for the OSG to effectively carry out its functions. n Provides for survivorship benefits to the Solicitor General, Assistant Solicitor Generals and State Solicitors. n Consolidates legal representation of the government, its agencies, and instrumentalities, including GOCCs, and the official powers and functions of the PCGG and OGCC shall be transferred in the OSG. n Abolishes the OGCC and the PCGG and transfers the powers and functions of said offices to the OSG. n Mandates that affected personnel of the OGCC and the PCGG who will not be absorbed into the new staffing pattern of the OSG due to redundancy or failure to comply with the standard of completeness and proficiency has the option to avail themselves of retirement and separation package. n Allow lawyers of OSG to receive

we are too old to actually do any of these things without the aches and pains. We don’t want to get to that day when it would hit us that we had set aside our dreams for things that were urgent and necessary. At the same time, we know that if we don’t set aside the time for these things, they will never get done. It was the famous artist Pablo Picasso who said that we should only put off for tomorrow the things that we are willing to die having left undone. Pretty heavy statement, but it is truth. Others would argue that given the kind of society we live in today, we only have time for the practical things, especially if one belongs to the lower end of the income spectrum. Time is not even enough to make a living, to provide food for the family. And yet there are people who firmly believe that we could survive on our own terms, if we would only intend it and would be persistent enough to do so. Making the deci-

sion to live our lives in this way is just the first step toward the realization of personal goals. The lives of many personalities who have done it before could serve as inspiration in this regard. We only need to say to ourselves: I am making the decision to give time to myself. There are experts who have offered some concrete advice on how this could be done, whether we are working toward small or bigger life goals. We’ve all read that quote about changing our daily routine in order to change our lives: How you spend your day is how you spend your life. We could take it a little further to focus on each morning (only) such that we are able to take some steps every morning, before the rush of work and responsibilities begin, to slowly move toward the fulfillment of personal dreams. I will share some of these tips next week.

honoraria and allowances directly from each client department, agency, GOCC or instrumentality of government for legal services rendered. From even a cursory reading of HB 7376, it is evident that the Solicitor General (and his office) has been effectively given omnipotent powers with almost unconscionable salaries, compensation benefits and other privileges (Section 12). Thus: 1. The Solicitor General is given the rank of Cabinet Secretary and “the Solicitor General shall have the same qualifications for appointment, prerogatives, salary grade, allowances, emoluments, privileges, retirement and other benefits, and shall be subject to the same inhibitions and disqualifications, as an Associate Justice of the Supreme Court. (Section 8) 2. The Solicitor General is appointed by the President himself but all others under him shall be appointed by the President upon the recommendation of the Solicitor General (Section 7). 3. The organizational structure (Section 4) includes Assistant Solicitors General, Solicitors, at least 50 legal divisions consisting of at least 10 lawyers and “such other personnel as may be necessary” and support administrative agencies (e.g., Fiscal Management, Docket Management, Human Resources Management and Administrative Services, Budget and Planning Services, Office of Legal Services) including such personnel as may be absorbed from the proposed to be abolished PCGG and GOCC. (This bureaucracy will be humongous and probably bigger than the top 10 biggest law firms in this country combined.)

4. The powers and functions of the PCGG, created by President Corazon C. Aquino under EO 1 on February 28, 1986, to investigate ill-gotten wealth, are transferred to the OSG: a) File and prosecute all cases investigated by the PCGG under Executive Order 1, dated February 28, 1986, EO 2, dated March 12, 1986, and EO 432, dated May 26, 2005, as may be warranted by its findings; b) Continue handling cases relative to the recovery of ill-gotten wealth and behest loans; c) Grant immunity from criminal prosecution to any person who provides information or testifies in any investigation previously conducted by the PCGG or in future cases investigated by the OSG involving ill-gotten wealth, to establish the unlawful manner in which any respondent, defendant or accused has acquired or accumulated the property or properties in question in any case where such information or testimony is necessary to ascertain or prove the latter’s guilt or civil liability. The immunity thereby granted shall be continued to protect the witness who repeats such testimony before the Sandiganbayan when required to do so; and d) Call upon any department, bureau, office, agency, instrumentality or corporation of the government, or any office or employee thereof, for such assistance as it may need in the discharge of its functions relative to recovery of ill-gotten wealth and behest loans. (Section 5, m) 5. The legal representation of the government, its agencies and instrumentalities, including GOCC and officials and agents acting in their

To be continued

See “Kapunan,” A11

www.businessmirror.com.ph

Opinion

Train stories

Certified PPP Advocate

BusinessMirror

By Alberto Agra

Anthony Alden S. Aguilar

PPP Lead

DEBIT CREDIT Part One

Continued from A1

good old classmate of mine from Boston once told me that she’d always wanted to ride the Orient Express, the celebrated train that traveled from London, England, to Istanbul, Turkey. The unwitting star of a particularly famous Agatha Christie mystery, the Orient Express was reputedly the last word in luxury train travel—take the Ritz Hotel in Paris, set it on wheels and place it on a track, and you’d have the Orient Express. No wonder my friend was upset when the Orient Express went on its last trip more than eight years ago, before she could finally fulfill her wish and ride arguably the most famous train in history.

he five takeaways. At the end of the course, all participants shall have drafted five documents accomplished during the workshops, i.e., a term sheet for a PPP project and draft PPP policy or framework; an outline of a pre-feasibility for a PPP project; and an outline of a TOR and PPP contract term sheet.

The Orient Express aside, train travel has been one of the most efficient forms of transportation for more than a century, and many of the world’s great cities are crisscrossed by a network of trains. I remember spending countless hours on Boston’s Subway Red Line during my years at Arthur D. Little, the Law School and Kennedy School; eagerly stepping onto the Shinkansen train during a trip to Japan; and emerging from the Green Park station of the legendary London Underground to the sight of the equally historic Ritz Hotel. From the high-speed French Train à Grande Vitesse, or TGV, to the stuffof-science-fiction-fantasy Maglev (or magnetic levitation) trains of Japan, Germany and Shanghai, trains have moved people and produce across many hundreds of miles, and have consistently become faster and more efficient. I’m told that a Maglev train in Japan holds the speed record for manned passenger trains, at a hairraising 603 kilometers per hour. I’m going to tell my friend—a Star Wars fan—to forget the Orient Express and take the Maglev. It’s probably the next best thing to riding Han Solo’s mythical starship, the Millennium Falcon. That trains have ushered in progress for the cities and countries they traverse is a well-documented historical fact. There’s one particular “train,” however, that seems to be the exception to the rule. It doesn’t have wheels, like the Maglev train, but unlike the Maglev, this train seems set to be seen not as a symbol of technological progress, but rather, of a hindrance to economic progress. I refer, sadly enough, to the Tax Reform for Acceleration and I nclusion —or TRAIN law. The TRAIN law, as many of us know, came into effect with the dawn of the New Year of 2018. Many were looking forward to its implementation, because it was being heralded as the instrument by which income-tax rates would be lowered, and give the man on the street a larger amount in

Kapunan. . . continued from A10

official capacity will be transferred to the OSG. 6. The funds required for the OSG will be sourced from the 20 percent of the monetary awards, 10 percent of the value of assets upon liquidation adjudged by the courts, 50 percent of fees, collected by the Special Committee on Naturalization, and all other income, fees and revenues earned and collected by the OSG (Section 21). 7. The OSG will no longer be attached to the Department of Justice. It will be attached to the Office of the President for budgetary purposes (Section 4). But corruption in the PCGG, lack of transparency, a lackluster performance or even incompetence are not reasons enough to abolish the PCGG and transfer its function to the OSG. I agree with Senate Justice Committee Chairman Richard J. Gordon that such transfer “is the quickest way to forget” the recovery of the alleged billions of pesos of ill-gotten wealth, not only of the Marcos

his pay envelope. However, life (and taxation!) is never that simple, and the rule of thumb is that, if you reduce tax rates—and therefore the amount of revenue to be generated—for one particular type of tax, you have to offset this revenue loss in some way. One option would be to encourage spending, which was probably the idea behind reducing the income-tax rates—give people more disposable income, and they will almost certainly increase their spending. The problem, however, lies in the fact that, while the government did reduce income-tax rates—and give millions of salaried employees more disposable income to take home come pay day—it also increased the tax rates for value-added tax and excise taxes. Both of these taxes, however, are levied on goods and services, thus practically ensuring that prices of many commodities would start climbing inexorably. One of the first commodities to see an increase in prices is also the most crucial: fuel. In a country that’s still very dependent on oil to power our homes, industries and transportation, any increase in fuel prices is sure to be met with no small amount of anxiety by everyone. It is a sad fact that, when fuel prices go up, the prices of so many other items quickly follow in their wake. Unfortunately, it is also an even sadder truth that, even if fuel prices are rolled back—and often at a figure that’s much lower than the amount to which they were raised—there will not be a corresponding decrease in the prices of commodities, not while there’s a profit to be made. To be continued The author is on study leave from The Tax Offices of Romero, Aguilar & Associates and is currently on a Research Fellowship at Harvard University. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

family but also by corrupt government officials and cronies. Allegation that OSG Jose C. Calida is an alleged Marcos supporter only adds ignominy to injury. Critics of HB 7376 claim that Congress’s decision to pass the bill was to absolve the Marcoses against their crimes to the Filipino people and is “a step backward toward our fight to hold the Marcoses accountable.” The PCGG was implicated by corruption scandals after allegations came out that PCGG Commissioners were “milking” sequestered corporations, using excess foreign-travel allowances and taking cash advances without liquidation. I had filed with the NBI a request for investigation against former Chairman Andy Bautista, Divina Law Offices, Luzon Development Bank and Smartmatic for possible plunder based on official PCGG findings. The PCGG may be seriously ailing, but it is not dead. To kill the PCGG and transfer its functions to the OSG might quicken its death instead of restore its life. The Solicitor General is not a Marvel Hero—let us leave him alone instead of giving him more work.

Finals. The test shall cover all topics, be in objective and/or essay formats, and will either be administered online or held in a designated venue. Only those who will pass shall be given the title. Participants. Anyone who wants to learn and be conferred the title can go through the ladderized program. Others may just want to

attend the modules and not take the examination. The course is open to government officials and employees, lawyers, representatives of private sector proponents, planners, engineers, accountants and students. Resource persons. Aside from your columnist, other experts and practitioners in their respective

Stay the course Siegfred Bueno Mison, Esq.

THE PATRIOT

henever students ask me for some advice about how to survive law school, my short answer is to “stay the course.” When asked to expound, I tell them that they should continue doing whatever needs to be done to achieve whatever they have planned to do, which is to become a lawyer.

Despite the roadblocks ahead, which are sure to come, they need to stick to the plan and move forward. Not by design, in my 20 years of teaching law, there has yet to be a class where 100 percent of my students passed. Due to its sheer number of units, Obligations and Contracts (five units) and Wills and Succession (four units), students who fail in these subjects end up either taking the subject again on probation status or going to another law school or, worse, giving up their dream to be a lawyer. But I know a few students who took failure as an opportunity to show how to “stay the course.” Allow me to share the story of Chikki Ybiernas, who failed one of my classes in Ateneo Law School. Four years ago, when she failed in my class, Chikki questioned her abilities and doubted her reasons for trying to be a lawyer. During her journey in law school, she took the quote “doubts kill more dreams more than failure ever will” by heart. After getting a 74 in my Obligations and

Contracts class, Ms. Chikki Ybiernas fearlessly made sure to “redeem herself” by having me again for Obligations and Contracts, enrolled in and passed my Succession class in her third year, and even took me as her thesis adviser during her senior year. This former student, now a lawyer, never gave up, opted to go against the odds and will surely be one of the better lawyers in the country because of her grueling journey toward becoming a lawyer. Our chairman in Philippine Airlines, Dr. Lucio Tan, once said: “Even the accomplished suffers setbacks sometimes. The more bitter the lessons, the greater the successes will be.” Despite the difficulty to get a law degree from Ateneo in four years with an overloaded schedule, Chikki kept on moving toward her childhood dream. As believers in faith, our course here on Earth will be far from being easy. Our way of staying the course, as in living our lives according to God’s purpose, is impossible, unless

Monday, May 28, 2018 A11

fields shall provide inputs and handle the workshops. Feasibility studypreparers, lawyers, urban planners, tax consultants and sectoral experts on water, solid-waste management, environment and real estate, among others, shall be tapped. Most of them are former government officials. Learning providers. To date, this columnist has accredited two sets of institutions. The Local Government Academy of the Department of the Interior and Local Government has already conducted eight modules for local governments, six module 1 and two module 2, and will hold its first module 3 by the end of June. For the general public, Quantum Prisms Consulting Inc. and Center for Global Best Practices will be offering this three-tier program this year, possibly module 1 in September. The other trademarks. This columnist owns another local PPPrelated trademark—Certified PPP Practitioner. This is reserved, as envisioned, for those who have actually initiated, shepherded or

actively participated in an awarded PPP project. The more established and internationally recognized title is conferred by the Institute for Public-Private Partnership, based in Virginia, USA. To be an IP3 Certified PPP Specialist, one has to complete 24 continuing education units. Your columnist went through this. Disclosure. At the moment, this trademark, the modules and course are not sanctioned by the Civil Service Commission, Professional Regulation Commission, Department of Education, or any academic institution or government agency. Learning ecology. Whether sanctioned or not, what is important is the willingness to learn (and unlearn and relearn) and the firm commitment to pursue PPP projects that will benefit the people and serve the public good. Adding the title—Certified PPP Advocate—in your profile, curriculum vitae and business card would be just a bonus (J). Happy and purposeful learning everyone!

In the Bible, Psalms 119:1-5 says, “You’re blessed when you stay on course, walking steadily on the road revealed by God. You’re blessed when you follow His directions, doing your best to find Him. That’s right—you don’t go off on your own; you walk straight along the road He set. You, God, prescribed the right way to live; now you expect us to live it. Oh, that my steps might be steady, keeping to the course You set.”

accomplish His purpose in us, we should always act without fear but with the comfort in the fact that He has our back. In the Bible, Psalms 119:1-5 says, “You’re blessed when you stay on course, walking steadily on the road revealed by God. You’re blessed when you follow His directions, doing your best to find Him. That’s right—you don’t go off on your own; you walk straight along the road He set. You, God, prescribed the right way to live; now you expect us to live it. Oh, that my steps might be steady, keeping to the course You set.” Chikki perhaps eventually realized that roadblocks, like a failure in class, are blessings as she stayed on course. When asked as to how she managed to continue despite faithtesting challenges, Chikki said three things: “Adjust accordingly. Appreciate those around you. Always pray and be thankful.” While there may be setbacks, she says, never adjust the goal you set, just adjust your schedule, your effort, your resources accordingly. And, as you boldly accept and adapt to the situations of adversity, appreciate the unwavering support of friends and loved ones. Finally, and most important, Chikki says, “While there is no substitute for hard work, there is also no God greater than Him. Ask God for courage and guidance but also give thanks. Wherever we find ourselves in, there is always a reason to pray and be thankful.” Stay the course, both in life and in faith.

with Him. All our efforts to live according to His ways will always fall short. But somehow, He manages to send people our way to help us get through all the difficulties for us to stay the course. When I was the Commissioner of Immigration a few years ago, I was fortunately blessed with a few upright people around me, whose actions in the Bureau were premised on our collective desire to make a heartfelt difference in public service. In the case of Chikki, her difficult journey in law school was made easier by blessings from above in the form of friends, classmates and a handful of professors turned mentors whose wisdom allowed her to appreciate not only the law but life, as well. Admittedly, Chikki may not be my best law student, but she definitely made the best out of whatever was sent her way, knowing the 50percent casualty rate in the Ateneo Law School. For as long as the dark moments in our lives will last only so long as is necessary for God to

For questions and comments, please e-mail me at sbmison@gmail.com.

Forget millionaires. Listen to the billionaires By Barry Ritholtz Bloomberg Opinion

ast month I described an e-mail that promised vast riches if I would adopt “the millionaire mind-set.” This is the sort of silly wishful thinking I hate: Consider, instead, the Cartesian pitch as applied to self-help being sold today: Just think it, and it will happen. This stuff, along with crystals and horoscopes, joins a long list of things that have never been proven to have much value beyond a placebo effect. Wishful thinking alone is insufficient to get any job done. “All you need is a dollar and a dream” is typical of the mind-set of those who visualize themselves as wealthy. Rather, a lottery ticket allows you to to imagine yourself as rich for a few minutes, but statistically speaking, neither the lottery nor the visualizations are likely to work. Some misread my attitude as a challenge to their favorite self-help gurus. It was not my intention to disparage those who aim to help people with their personal philosophies. I did not mention any guru by name except Napoleon Hill, and he was discussed

with approval. Nonetheless, I clearly touched a nerve. What follows are some suggestions for success I pulled from conversations with billionaires. Note that I do not study billionaires for a living, and have recommended that people shouldn’t invest like them. However, I have been fortunate to have sat down for two hours at a time with lots of people in the three-comma club: Mark Cuban, Ray Dalio, Howard Marks, Leon Cooperman, Jeff Gundlach, Bill Gross, Ed Thorp, Jeremy Grantham, Ken Fisher, Mario Gabelli, as well as many more near-billionaires. When successful, intelligent, accomplished people tell their life story, you listen very carefully. When did their philosophy develop? Who were their mentors? What mistakes did they make, and what did they learn from them? The people listed above each took a different route to success. But they were happy to pass on their experiences and wisdom. And they also had some traits in common. Here is what these billionaires taught: Be reality-based: Ray Dalio writes this explicitly in his Principles, published in 2011. Every member of my billionaire sample discussed the

importance of discerning reality that others have missed or misunderstood. Howard Marks of Oaktree Capital explained why you need to do more than simply grasp reality. Failing to understand the world as it is will prevent you from achieving long-term, sustainable success. Work hard: No one on my list inherited great wealth—all of the billionaires were self-made and male (I have not yet interviewed any of the world’s 256 female billionaires). They discussed working long and hard, especially in the early days of their careers. Many of them outworked, outhustled and outsmarted their competitors to achieve their success. Focus on process: No one in this group is outcome-focused. They are all process-oriented investors. Understanding probabilistic outcomes, learning from errors and failing well were qualities frequently cited by members of this group. Read widely: This is another trait almost all members of the group shared. They didn’t just read financerelated books, but a huge variety of works of history, biography and philosophy. The billionaires sought to get

smarter, learn more and have a deeper understanding of the world. Be lucky: The consistent acknowledgement of the role of serendipity played in their lives was perhaps the most surprising of all the sentiments shared among this crew. Every person mentioned how much random good fortune had come their way. Opportunity knocks: Combine hard work with luck and you create opportunity. Lucky, yes, but ready to act when fortune smiles. If you are lucky but fail to rise to the occasion, then the luck is meaningless. Being wellprepared to capitalize on what providence provides was a consistent theme. Be humble: Success in the market requires humility. At times, it can be humbling. But the humility of these uber-successful, ultra-wealthy men was another surprise. So read all the self-help books you want, but avoid wishful thinking. The virtue of being reality-based, processoriented, hard working, well read and humble are evident ways to work to achieve success in any field. Instead of the millionaire mindset, adopt a “billionaire behavior.” You will be glad you did.