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A broader look at today’s business

Sunday, May 29, 2016 Vol. 11 No. 232

P25.00 nationwide | 3 sections 16 pages | 7 days a week

Consumer What makes a prices grew real President faster in May By Bianca Cuaresma

@BcuaresmaBM

RICES of consumer goods likely grew faster in May than in April this year, according to the central bank chief, as oil and food prices went up during the month.

Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. told reporters on Friday the bank’s forecast suggested May inflation could settle within the 1.1 percentto-1.9 percent range. This means that inflation likely accelerated from the 1.1-percent actual print in April, and will be around the same level to that of inflation in May last year, at 1.6 percent. This, however, means the month’s See “Prices,” A2

NICE DISPLAY A granddaughter of former Mayors Angel and Natividad Bernardo of Palanan, Isabela, Nice Bernardo welcomes visitors to a 3D-like mural creatively portraying the coastal town’s landscape made of seashells, indigenous crops and wild plants at a municipal showroom. The town at the Pacific coast of Isabela is home to skilled sabutan (also called pandan) handicraft workers, who make the amphibious palms into colorful mats, hand fans, bags and fashionable hats, like what the Palanan girl wears. LEONARDO PERANTE II

Cusi has to learn fast as energy czar By Lenie Lectura @llectura

LFONSO Cusi, the energy secretary-designate of President-elect Rodrigo R. Duterte, needs to learn fast in order to keep up with the many complicated issues in the oil and power sectors. “He has to do a lot of reading. It is a critical agency, so he has to move fast. He has to learn fast,”

IF YOU KNEW THE GIFT OF GOD Lord Jesus Christ, You have taught us to be merciful like the heavenly Father, and You have told us that whoever sees You sees Him. Show us Your face and we will be saved. Your loving gaze freed Zacchaeus and Matthew from being enslaved by money; the adulteress and Magdalene from seeking happiness only in created things; made Peter weep after his betrayal; and assured Paradise to the repentant thief. Let us hear, as if addressed to each one of us, the words that You spoke to the Samaritan woman: “If you knew the gift of God.” Let us praise You, forever more. Amen! Give Us This Day, Committee on Divine Worship Shared by Luisa M. Lacson, HFL

said Tomas I. Alcantara, CEO of Alsons Consolidated Resources Inc. (Acri). Though he lacks the expertise in dealing with energy-related issues, Alcantara said Cusi is willing to learn the nitty-gritty details of this highly competitive, yet very complicated, industry. “When I called him up to congratulate him, he said he will work hard,” Alcantara said after Acri’s stockholders’ meeting on Friday. See “Cusi,” A2

Currency tranquility is calm before storm for forex traders

T’S all quiet in currency markets, a little too quiet for some traders who warn that an uptick in volatility is just around the corner. Price swings in global exchange rates slid to the lowest since January this week, according to a JPMorgan Chase & Co. index. A three-month measure of dollar volatility versus the euro tumbled to the least since December 2014, while a gauge against the yen fell to a two-month low. That tranquility, which comes before holiday weekends in the United States and the United King-

PESO exchange rates n US 46.6650

dom, isn’t likely to persist. Event risks stemming from Britain’s vote on European Union (EU) membership to Federal Reserve meetings to the US presidential election threaten to roil currencies around the world. Increasing correlation between gauges of risk has meant that when one measure falls, others tend to do so, too, said Kit Juckes, a London-based strategist at Société Générale SA. “There’s a very fine line for this calm period in markets that you see with low volatility, a slightly softer See “Currency,” A2

PRESIDENT-ELECT Rodrigo R. Duterte sings the national anthem at the start of a presidential debate at the Phinam University of Pangasinan in Dagupan City on April 24. Mark Balmores/AP

By Cecilio T. Arillo, PhD | cecilio.arillo@gmail.com

HE 1987 Constitution established the Office of the President, in the order of precedence, as the most coveted, compelling and exciting position in the entire Philippine government. Indeed, the position carries a concomitant responsibility and a covenant with the people, and this is clearly written in his oath of office, thus: “…obey and defend the Constitution, execute the laws and do justice to everyone.” A President, therefore, must be judged daily on what he does in office, based on the clearly defined oath of office and not on the basis of popularity surveys that merely deceive

the public and mask ineptness and incompetence. So, beyond Section 2, Article VII of the Constitution (“No person may be elected President unless he is a natural-born citizen of the Philippines; a registered voter; able to read and write; at least 40 years of age on the day of the election; and a resident of the Philippines for at least 10 years immediately preceding such election”), the President must show a broad

knowledge of statecraft, and the ability to govern and draw up a strategic plan with a very clear mission and vision statement about his administration. A President must handle well such issues as laws, politics, economics, sociology, foreign affairs, national security and public order, and draw up a well-defined direction where the country is going, and what are the means required to get there and make it peaceful, economically progressive and highly competitive. Not only that. He must be aware of a mixture of several factors: How to deal with Congress, the Judiciary and the people; how to deal with corrupt officials, politicians and businessmen; and how to apply moral and ethical standards on other people in an environment where convincing, cajoling and hustling are needed—requiring the exercise of flexibility, creativity, understanding Continued on A2

n japan 0.4252 n UK 68.4856 n HK 6.0086 n CHINA 7.1137 n singapore 33.9777 n australia 33.7155 n EU 52.2461 n SAUDI arabia 12.4473

Source: BSP (27 May 2016 )

NewsSunday BusinessMirror

A2 Sunday, May 29, 2016

Cusi…

Continued from a1

Alcantara and Cusi have worked together during the latter’s stint at the Philippine Ports Authority (PPA). The incoming energy chief served as general manager of the PPA during the Arroyo administration. Cusi is widely known as a friend of Jose Miguel, the husband of former President Gloria Macapagal-Arroyo. “I have worked with him. When he was with the PPA, I was the vice chairman of the PPA’s executive committee,” Alcantara said. On May 21 Cusi said he would “strive to do my best to help the Duterte administration achieve electrification of the entire country; ensure reliable, steady and affordable power supply; and work toward greater energy selfsufficiency as part of its agenda of

Prices…

sustained economic growth, social progress and political stability in the next six years.” He said he was “humbled” by his appointment to head the Department of Energy, adding that he would try his best to “ensure reliable, steady and affordable power supply” in the Philippines. On Duterte’s choices for his Cabinet, Alcantara said he has “mixed feelings,” because “some are not as disturbing as others.” He did not elaborate. He also refused to give Duterte any unsolicited advice on energy-related issues. “We have to wait for the completion of the Cabinet appointments and his State of the Nation Address, because those will define what he will do,” Alcantara said. Duterte will become the first

Continued from a1

inflation will still undershoot from the government’s annual target of 2 percent to 4 percent. Inflation has been falling below target range since May last year. Tetangco attributed their expectation to higher domestic oil prices and the uptick in food prices, which suggest potential upside inflation pressures. This could, however, be partly offset by lower power rates in Meralco-serviced areas. “Moving forward, the central bank will remain watchful of economic and financial developments to ensure that its primary mandate of price stability conducive to balanced and sustainable economic growth is achieved,” Tetangco said. In its briefing following the announcement of the Monetary Board’s latest policy stance, Tetangco said inflation expectations for 2016 have “declined slightly due to low inflation readings in the recent months.” Tetangco said, however, that forecasts remain firmly within the target band over the policy horizon.

Cusi: “I would strive to do my best to help the Duterte administration achieve electrification of the entire country.”

President from Mindanao, a region where the Alcantara group is a major power player. “Duterte is a Mindanaoan. It’s logical that more attention would be given to Mindanao. So many people are riding on that logic. People are taking a second look at the prospects in Mindanao,” he said. By 2019, Acri-affiliated power facilities will have around 588 megawatts of generating capacity, about 25 percent of Mindanao’s projected peak-power demand for that year.

Currency…

Continued from a1

dollar and everything’s OK,” Juckes said in an interview on Bloomberg Television. “A bumpy summer seems to me to be quite a high risk still.” JPMorgan’s gauge fell 0.86 percentage point this week, reaching the lowest level since January 5. Threemonth volatility in euro-dollar slid to 8.52 percent, while a similar measure of yen turbulence slipped to 10.1 percent. June is poised to be a big month for currency traders, with both the British referendum and a Fed policy meeting within days of each other. The pound’s one-month volatility—which captures the date of the UK vote—jumped to its highest level since 2010 this week, providing a possible taste of things to come as the US election in November approaches. “With the most divisive US presidential election in a generation fast approaching on the horizon, volatilities are likely to experience a mere summer lull at worst before picking up into the election,” said John Hardy, head of foreign-exchange strategy at Saxo Bank A/S in Hellerup, Denmark. Bloomberg News

www.businessmirror.com.ph

What makes a real President Continued from a1

and competitive intelligence—to survive the day. This is not just a simple case of governance and propaganda mileage. He must think the information flowing into the inner circles of the Presidential Palace is astounding in its volume and complexity, and the potential for blunder is always lurking there to trap him and aggravate his problem. For instance, the President may, on days or weeks, must cope with difficult problems on the economy; energy; the size of the defense budget; types of tactical and strategic plans to stifle insurgency, separatism and criminality; how to deal with anxious businessmen; the media and the public that are always looking at what the Chief Executive or Commander in Chief is doing on various issues. The President must find time to deal with all these problems, to say nothing of other issues, themselves not so easy to meet and master. The President must also remain in command of the State (and its four elements: people, government, territory and sovereignty), so that he can move from one issue to another in an orderly manner, ask the right questions in advance and be responsive to public expectation. It can’t happen, unless he must first organize and manage the government, and bring the nation and the outside world to his attention in a way he can understand it, to permit him to handle problems of the State intelligently; to make concrete decisions; to take action and to see them through to a successful conclusion. No President, however, can do the job alone. He must be guided with the right combination of policies and be able to call upon a talented pool of men and women in the civilian bureaucracy, supported by the members of the police and military organizations. In the final analysis, he must bring them together as a team, combining

all their talents to produce a cohesive and responsive bureaucracy, certainly not the kind of setup that increases in number of temporary committees, commissions or task forces every time there is a crisis and, thus, inordinately expand the size of the government and the budget, as were done by the previous administrations. How to handle personalities is certainly important. It is a question of personal pride, power and prestige. A President must have a good memory and a sense of history, including the kind of history the country had already seen for more than five generations. Looking back, some presidents had merely wasted the country’s time and resources, creating and managing crises, instead of shaping the future and the attendant ills of plunder, corruption, insurgencies, tax evasion, smuggling, carnapping, kidnapping, killing of journalists, and the breakdown

of morality, peace and order compounded the problem. Whether personalities come to overshadow policies or are submerged beneath them and whether the inevitable tensions and squabbles among contending officials—all claiming dedication to the nation’s service, but with different interests and views on how to achieve them that may lead only to paralysis at the top— is partly a matter of strong leadership. But it is also essentially a matter of organization and strategy. Prospectively, I wish President Rodrigo R. Duterte the best of health and the best of luck for the country and our people! Let’s hope he will perform his duties and responsibilities the way that is highly expected of him, bearing in mind that we Filipinos, regardless of political affiliation, also have our own social, legal and spiritual responsibilities to show him.

Duterte: Sabah claim stays By Manuel T. Cayon | Mindanao Bureau Chief

@awimailbox

AVAO CITY—The Philippine government would stick to its decades-old claim to Sabah, as with the group of islands in the Spratlys and the Scarborough Shoal. “I will stick to our claim, to air our side that it is part of our land,” President-elect Rodrigo R. Duterte told reporters at a late Wednesday night news conference here. “It is the same with China. Whether you want to believe it or not is beside the point,” he said. “The point is the area is ours. It is not a question of territory. It is a question that the place is well within the 200-kilometer exclusive economic zone of the Philippines,” Duterte said. He said it would be a violation of territorial rights, “if you put something in there that obstructs or impedes our movement in the exercise of that right.” This was the point Duterte raised with the Chinese ambassador, who paid him a courtesy call last week. “I told him that since the case is still in the arbitration case, you might as well allow our brother fishermen to fish there,” he said. The problem, Duterte said, is “the Malaysians arrested our fishermen.” Sabah is contested by the Philippines and Malaysia, but it was placed on the back burner to allow for greater diplomatic relations between the two countries. Aside from belonging to the 10-member Asean, the two countries are also in the subregional grouping called Brunei Darussalam, Indonesia, Malaysia, Philippines-East Asean Growth Area.

Winning mayor to update GenSan’s land-use policy

AVAO CITY—The reelected mayor of the acknowledged “Tuna Capital of the Philippines” would want to update the city’s land-use plan, as the city government continues to enjoy an economic boom. Mayor Ronnel C. Rivera said he wanted the plan to be updated as a priority activity on his second term as mayor, along with finding and providing services in the relocation sites. He also set his eyes on improving the services of the city hospital. Rivera added that the city’s land-use plan would “be vital for attracting investors and different businesses to come to General Santos.” Alongside with updating the plan is to craft a comprehensive transport plan to avoid the dilem-

ma of vehicular-traffic congestion. Rivera’s second term would face the challenge of a booming economy tied with its tuna and fish-landing businesses. The number of new businesses that invested in General Santos City had recovered from the global crisis in 2013, when the city only had 816 new business registrations. That was a sharp drop from the 1,242 registrations the previous year and 1,326 in 2011. By 2014, business confidence went up anew, with 1,446 registrations. This was complemented with the increase of business renewals, from 7,848 in 2013 to 8,064 the following year. These businesses—mostly micro, small and medium enterprises—have employed around 91,000

individuals, the City Economic Management and Cooperative Development Office said. Its economic climb was also noticed and lauded by the annual Cities and Municipalities Competitiveness Index, when it ranked the city 17th place last year among the highly urbanized cities. The National Competitiveness Council of the Philippines said 142 urbanized cities competed in that survey last year. General Santos City earned P1.24 billion in 2013. The growth is expected to surge further, after it stabilized since last year the crippling electricity shortage besetting Mindanao. It has established several sources of dieselfired generation plants, including the coal plant in nearby Sarangani province. Manuel T. Cayon

NewsSunday BusinessMirror

www.businessmirror.com.ph • Editor: Dionisio L. Pelayo

Sunday, May 29, 2016 A3

Close of official canvass will not end search for truth–Marcos lawyer

HE lawyer of Sen. Ferdinand R. Marcos Jr. on Saturday said their search for truth will not end with the conclusion of the official canvass of the votes for president and vice president. “A ng paghahanap namin ng boto ni Senator Marcos ay hindi po natatapos sa canvassing na ito. Patuloy naming gagawin iyon hindi po dahil lamang sa paghahanap sa posisyon kundi para ma-defend namin ang boto ng aming mga supporters,” said George Garcia, head of Marcos’s legal panel. In the meantime, Garcia said they extend their congratulations to the camp of Vice President-elect Maria Leonor G. Robredo and asked their own supporters to remain calm. Likewise, he said they would not likely launch any action until after the proclamation of the winning president and vice president. “Kita n’yo naman, tatlong araw lang natapos [ang canvassing]. Hindi naman po kami nanggulo, hindi kami nag-delay ng proceedings. Senator Marcos instructed us to respect the proceedings of the

board,” Garcia expressed. He said one of the options Marcos may consider is the filing of an election protest. However, he said this could prove very expensive. Garcia said among the grounds that may be raised if such a protest pushes through is the unusually high number of undervotes for vice president that stood at a final figure of 3.902 million, considering the high turnout in the hotly contested 2016 elections. “We deserve an explanation on this matter,” he added. Likewise, Garcia said they are in the process of collating affidavits of witnesses on alleged incidents of cheating, as well as details as to the malfunctioning of several Canvassing and Consolidation Systems (CCS), as well as some vote-counting machines (VCMs). “For the information of the

FOUR days was all it took for the Joint Congress, sitting as National Board of Canvassers, to finish the tally of the certificates of canvass for the president and vice president. Sen. Aquilino Pimentel III and Liberal Party Rep. Neptali M. Gonzales II of Mandaluyong said President-elect Rodrigo R. Duterte won by a big margin of more than 6 million votes against his closest rival, former Interior Secretary Manuel A. Roxas II. PNA

public, mga 25, almost 30 na CCS na hindi nalalaman natin ang pinapullout ng Comelec [Commission on Elections] at kinumpuni, pinalitan, o ginawa sa Santa Rosa Plant. Ang tanong namin, talaga bang kinumpuni iyan, talaga bang pinalitan iyan, at wala bang ibang bagay diyan o ibang data diyan na ipinalit na?” Garcia said. He added that their information-technology experts have also

presented to them technical information that may be used in the filing of an election protest. At first glance, this information seems to be “convincing,” according to Garcia. However, he said the rules of the canvassing do not allow these “evidence” to be presented before the National Board of Canvassers. If Marcos would, indeed, file an election protest, Garcia said it would likely focus on the prov-

inces of the Autonomous Region in Muslim Mindanao and the Visayas, where most of the undervotes for vice president occurred. Meanwhile, Garcia also appealed to the Comelec to allow a system audit of its servers to determine whether the unauthorized script change in the servers produced more than just cosmetic results, as the poll body claimed. Marcos had noted shortly after

such script change his lead over the next candidate slowly eroded and he was eventually overtaken. Garcia said they are going to pursue the quest for truth not only for Marcos but for the benefit of the entire nation. “At napaka-importante, for future reference, dahil kung nangyari ito ngayon may posibilidad mangyayari sa mga susunod na panahon,” he concluded.

Make sure schools are tobacco-free–cancer survivors’ group Leni excited to work with Duterte By Claudeth Moco-Ciriaco Correspondent

S school opening draws near, an organization of cancer survivors and former smokers urged education authorities to make sure that no tobacco products are sold near institutions of learning. New Vois Association of the Philippines (Nvap) President and Global Cancer Ambassador Emer Rojas said Republic Act (RA) 9211, or the Tobacco Control Regulation Act, prohibits selling cigarettes within 100 meters from schools and in areas frequented by minors. The law, enacted in 2003, also prohibits the following: selling tobacco products to minors anywhere

in the country, including in centers of youth activity, buying cigarettes from minors and bans smoking among minors. Rojas said that, while the law provides penalties for violations specifically against establishment selling tobacco to minors, this is loosely implemented allowing many students access to cigarettes. “With the incoming Duterte administration, we, at Nvap, are confident that this provision of RA 9211 would be fully implemented. President-elect Rodrigo R. Duterte had shown strong political will in Davao when he made the city smokefree and there is no doubt that he can do the same for the whole country,” Rojas said. He noted that, while any person or

establishment found guilty of selling or distributing tobacco products to minors could be slapped by a fine of less than P5,000 or an imprisonment of not less than 30 days for the owner, this too, is loosely implemented. On the other hand, Article 189 of Presidential Decree 603 would be applied if a minor was caught selling, buying, or smoking tobacco. The decree, known as The Child and Youth Welfare Code, provides that youth offenders “shall be exempt from criminal liability and shall be committed to the care of his or her father or mother, or nearest relative or family friend in the discretion of the court and subject to its supervision.” “Despite the law’s existence for 13 long years, it’s very evident that

it was not implemented, given the high incidence of youth smoking in our country. Youth smokers are everywhere, they did not need to hide in secret places as if evading the watchful eye of authorities,” Rojas said. According to the Global Youth Tobacco Survey, more than one in four Filipino youth aged 13 to 15 is a smoker. Among those in this age group who smoke, 17.5 percent are girls. This does not include those of this age group who are exposed to secondhand smoke either at home or in public places. Rojas, a laryngeal cancer survivor who blamed smoking for his ailment, started smoking as a student like many other smokers.

Prices of petroleum products on the rise again

IL companies are expected to implement another round of oil-price increase this week, following negative developments overseas, which could likely dampen oil trading. Based on early trading days of last week, there could be an upward price adjustment between P0.40 and P0.60 per liter on Tuesday, when most oil

companies adjust their pump prices. “The price range of the increase is P0.40 to P0.60 per liter for both gasoline and diesel,” said Director Melita Obillo of the Oil Industry Management Bureau in a text message. She cited the “global glut,” which has “partly reversed, as wildfires curbed production in Canada.” Moreover, “t he rebel at t ac k s

d isr upted e x por ts f rom Nige r i a .” L a st , she noted a n “ i mproved dem a nd i n US.” During the trading days of May 16 to 20, the Department of Energy noted that a better overall demand coupled with the disruption of supply in Nigeria created a surprising supply crunch in the short run. Besides Nigeria, production out-

Ombudsman dismisses 2 police officers over medical exam scam

MBUDSMAN Conchita CarpioMorales has ordered the filing of charges against two National Police officials in connection with an alleged P1.8-million medical examinations scam. Morales accused Supt. Elizabeth Milanes and Supt. Digna Ambas of the National Police’s Health Service of four counts of violation of Section 3(e) of the Antigraft and Corrupt Practices Act. Also included on the charge sheet is Eduardo Indiongco of E. Indiongco Diagnostic Laboratory. Aside from criminal charges, Milanes and Ambas were found guilty of grave misconduct and were ordered dismissed from the service. They were both meted out the accessory penalties of perpetual disqualification from holding public office, cancellation of eligibility and forfeiture of retirement benefits,” she said. In 2010 Morales added that the National Police Regional Investigation and Detective Management Group uncovered alleged anomalies in the force’s Re-

gional Health Service 3 (RHS3), headed by Milanes and Ambas. “It was found that Milanes and Ambas manipulated medical examination results of police applicants, with 41 police trainees attesting that they paid for the medical examinations and vaccines in cash without any official receipts issued. Investigation also found that many police applicants were disqualified without being given copies of the results, and that the medical screenings were performed by on-the-job trainees without supervision from the organic personnel of RHS3,” she said. “Milanes and Ambas allowed E. Indiongco Diagnostic Laboratory to conduct the medical examinations without the benefit of public bidding and was allowed to use office space free of charge,” she added. According to Morales, Milanes and Ambas gave Indiongco unwarranted benefit when they allowed him to collect payments from police applicants in the total amount of P1.86 million without issuing any official receipt.” Joveee Marie N. dela Cruz

ages in Canada, owing to wildfires and a political crisis in Venezuela, that is expected to suppress output in the oilexporting South American country, also added to the concern. Because of these factors, oil companies increased on May 24 their prices by P1.20 per liter for gasoline, P1.00 per liter for diesel and P1.25 per liter for kerosene. Lenie Lectura

By Sammy F. Martin Philippines News Agency

IBERAL Party Rep. Maria Leonor G. Robredo of Camarines Sur on Friday said she is excited to work with President-elect Rodrigo R. Duterte after the Joint Congress, sitting as the National Board of Canvassers (NBOC), declared them winners in the 2016 elections. The neophyte legislator, in an interview with local journalists in Naga City, could not hide her excitement after the NBOC finished its job tabulating the votes, where she edged out her closest rival, Sen. Ferdinand R. Marcos Jr., by more than 200,000 votes. “Obligasyon ko po, hindi lang bilang susunod na pangalawang pangulo, pero obligasyon ko po bilang Filipino na ibigay ang 100-percent support ko sa kanya [Duterte]. Kasi ang kaniya naman pong success, hindi naman para sa kanya. Ang success niya ay para sa buong bansa,” Robredo said. “ Nag ing mahirap po iyong eleksyon, naging very divisive. Kinak ailangan pong mag- re build tayo bilang isang bansa at kailangan po ni President Duterte ang tulong nating lahat,” she added.

Shortly after winning the race for the vice presidency, she said she was willing to accept a Cabinet position if offered by the next president. Robredo said she has not spoken with Duterte specifically about the Cabinet position that will be delegated to her. She opts to wait for her proclamation before paying him a visit. “Palagay ko po napaka-premature pa na makipagkita dahil hindi pa ako napo-proklama. Hihintayin ko po muna ang aking proklamasyon bago pumunta sa kaniya para magbigay ng aking kortesiya. Ayaw ko naman pong pangunahan,” she explained. The NBOC finished the official tally of the votes for president and vice president at exactly 7:17 Friday night, after just four days of canvassing. The NBOC ’s official tally shows that Robredo finished with 14,418,817 votes, while Marcos had 14,155,344. Robredo led Marcos by only 263,473 votes. Duterte came up with a huge margin against his rivals in the presidential race, garnering 16,601,997 votes. Senate Canvassing Chairman Aquilino L. Pimentel III said Duterte and Robredo would be proclaimed early next week.

Trade group sees stricter control on rice, steel, cement importations under Rody presidency

IGHT Illicit Trade (Fight IT), a movement launched by a multisectoral group to combat smuggling and the proliferation of uncertified and substandard products in the local market hopes to get a boost in its intensified campaign against illicit trade from Davao City Mayor and incoming President Rodrigo R. Duterte after he takes his oath of office as the country’s 16th president on June 30. During the campaign, Duterte promised to undertake an all-out war against crime, corruption and smuggling if elected. Fight IT Head Jesus Lim Arranza, who also leads the Federation of Philippine Industries (FPI), said the growing number of cases pertaining to smuggled goods, such as rice, sugar, corn, palm oil, tobacco, steel, cement, ceramic tiles and gadgets, in the country could be properly addressed under the Duterte administration. “The growing incidence of illicit trade and its damaging effects on industries and consumers, not to mention its impact on government revenues owing to forgone customs duties, particularly the 12-percent value-added tax

[VAT], are concerns that prompted us to take a more encompassing campaign to involve local industries and the public,” Arranza said, adding that, “Through undervaluation and under-declaration, smugglers are able to avoid paying the proper value added tax.” Arranza’s advocacy against smuggling and illicit trade took its peak when he identified the country’s alleged big-time rice smuggler David Tan as the same person as Davidson Bangayan. During one of the Senate hearings on rice smuggling where Arranza and Duterte met, the Davao City mayor also pointed at Davidson Bangayan as the same person as the suspected bigtime rice smuggler David Tan. Among the widely smuggled goods in the country are cement and steel products, many of which are uncertified, but have, nevertheless, reached the local markets. The Bureau of Internal Revenue also urged consumers recently to report establishments selling fake tobacco products. Business groups said government regulators should keenly look into the “seeming

propensity” of the importers to use the socalledoutports(portsoutsideMetroManila)as entry points for their shipments to facilitate its smooth release through their connections. Recently, Fight IT has collaborated with the National Bureau of Investigation (NBI) to further its goal of combating illegal traders. The partnership underscored the urgency of giving more teeth to import regulations to curb irregularities that could potentially inflict far-reaching damage to the national economy in general. “It also fuels the criminal element in our community, and all the social ills that go along with it, thus, the need to work closely with the NBI,” Arranza stressed. At stake are several concerns that could possibly undermine the national interest in various ways, notably public safety, tax collection, level-playing field for local businesses and consumer protection. Furthermore, information reported showed that transfer pricing scheme could be manipulated by the importers in a bid to cheat on taxes.

SundayV

Busine

A4 Sunday, May 29, 2016 • Editor: Angel R. Calso

editorial

Contractualization: To be welcomed, not to be feared

N the presidential debates that preceded the elections, the presidential candidates made a stand on “contractualization,” with one or two of them declaring opposition to it, vowing to outlaw it even, with the rest preferring to give it, more or less, serious study. Obviously afraid of any “labor” backlash, none of the candidates expressed support for the idea.

Here lies the crux of the problem. In our country, there never has been a clear distinction between the need to create jobs for the unemployed and the need to protect the tenure of those already employed. If contractualization is an effort of management to undermine the tenure of those employed by employing shortterm scabs, those whose tenure is being threatened must oppose it, invoking their right to collective bargaining, even their right to strike, to make their reaction felt. If, on the other hand, contractualization is an effort to get an extra project done, an “emergency” activity to be carried out, or an activity not covered by regular employees’ terms of reference to be pursued, it must be encouraged and supported, because it creates jobs for the unemployed. The duty of the government is to generate jobs for the unemployed, so that growth will be inclusive. In the pursuit of this responsibility, the government must encourage subcontracting, to encourage isolated individual workers to come together to respond to larger manpower requirements, make it easier for smaller firms to satisfy contractual obligations. Contractualization is one of the means that must be employed to create jobs for the unemployed. It must be stressed that those who already have jobs must take care of themselves. Our laws give them more than enough not just to protect themselves from management/owner abuses, but to expand their entitlements. They should cease their dependence on the government to do the job of looking after them. It is a historical fact that union power has been on the decline in the last two decades all over the world. Modes of grievance settlement other than strikes and lockouts, like mediation boards, joint labor-management committees, etcetera, are increasingly becoming the tools of choice in the settlement of labor-management issues. It is not that unions are weakening; it is simply that company problems have become so encompassing, they cannot be limited to management or to labor alone. The two must act in concert to save themselves. Look at how the American unions agreed to make concessions just to save General Motors from bankruptcy. In the Philippines unions must agree to new modes of grievance settlement, even as they mobilize their intellectual and physical resources to protect and enlarge the rights of their members. Unless it is an attempt to undermine the security of tenure of those already employed, contractualization is not anything to be afraid of. We need it, among other means, to deal with our intensifying unemployment problem. But it is an ambiguous term in our country these days. To dissipate “labor’s” fear, the government must clarify it.

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Part Three

HAT the December 1989 coup that almost toppled the Aquino regime, the July 27, 2003, Oakwood and the February 2007 incidents showed was the plain fact that the country had a democracy where civilian supremacy over the military was still not truly a fact, and where the ability of the military to overthrow the constitutional government was beyond question, as shown in what is now known as Edsa II or the infamous January 2001 ouster of President Joseph E. Estrada.

Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro

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The incoming President must look at the lesson of contemporary history

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By Cecilio T. Arillo

Commenting on that incident, former Defense Secretary and now Sen. Juan Ponce Enrile said: “Edsa II was no less and no more than a partisan struggle for political power. It was a rebellion, pure and simple. It was assisted by top generals of the military and the police to depose the freely elected incumbent president. “The conduct of the top generals of the military was a brazen disregard of their professional duty and moral obligation of fealty, loyalty and obedience to the Constitution and to the duly constituted authority of the Republic. There was no valid excuse sufficient enough to justify or mitigate such misconduct by our military leaders. “On the contrary, they provided a bad, contemptible, and dangerous example and precedent to their subordinate officers and men. Now, the country feels threatened. It suffers from a great anxiety because of the bad example set by the top generals in Edsa II. “The top generals were led by the chief of staff himself. In the chain of command, the chief of staff is the highest military commander immediately below the president. He is the direct link of the president with the military and his principal adviser on military and security matters. “As the No. 1 soldier of the Republic and the overall commander of the

Looking at the military and police organizations now where their sword is again unsheathed from its scabbard because of the current worsening political, social, economic and nationalsecurity situation, is there an assurance that they will not intervene again in the civilian life of the nation?

military organization, the chief of staff is entrusted with the singular task and responsibility to protect and preserve the presidency. It is his sacred duty to defend the seat of political power of the nation to the death, if need be, against any form of predatory force. “However, Chief of Staff Angelo Reyes defaulted in performing his solemn duty at that crucial moment when his gallantry and honor was put to a supreme and final test. “He failed to heed the clarion call of courage, integrity and loyalty, the three words most familiar to and ingrained in the heart and mind and soul of every graduate of the Philippine Military Academy. “He betrayed the Constitution. He betrayed the presidency. He betrayed his commander in chief. He betrayed the 11 million people who voted to make Joseph Estrada the president of the country. “Rather than the protector, the defender and the preserver of the Constitution that he should have been, he turned himself into its dangerous and perfidious aggressor. “He was the first to commit an act of infidelity to his president. He severed the chain of command at his level and pointed his bayonet at the heart of his commander

in chief. He completely forgot the biblical injunction that says, ‘Thou shall not follow a multitude to do evil or pervert justice [Exodus 23:2].’” In the end, General Reyes committed suicide. Worse, the military organization, after that infamous incident, earned the unfair image of being a mercenarian or a power-grabbing military force. Needless to say, however, the military after that incident slowly recovered its proconstitutional image and became again a latter-day puritan or a protector of the State and its four elements: people, territory, sovereignty and government. Looking at the military and police organizations now where their sword is again unsheathed from its scabbard because of the current worsening political, social, economic and national-security situation, is there an assurance that they will not intervene again in the civilian life of the nation? In fact, many of them are now looking at Thailand, a neighbor and also an original founding member of the A, where the military is running the government for the better. Like Thailand, it can be argued that the military and the police here have also the preponderant force to run the civilian government. Mind you, the announcement of President-elect Rodrigo R. Duterte to share power with the leftists, by offering them three or four Cabinet positions without preconditions, has already triggered an upsurge of restiveness among the 28,000 officer corps of both military and police organizations that are in the brunt of fighting insurgency, separatism and criminality. To be continued

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opinion@businessmirror.com.ph • Sunday, May 29, 2016 A5

Some rights can’t be signed away Y

OUR credit-card company can make you agree to arbitrate disputes as a condition of getting the card. But can an employer require workers to arbitrate rather than suing collectively as a condition of employment?

Bloomberg View By Noah Feldman

In recent years, all the federal Courts of Appeals to address the question have said there’s no difference between your credit-card issuer and your employer: Both can make you give up legal remedies. This week that changed, when for the first time an appeals court said an employer can’t require employees to waive collective legal action. By creating a circuit split, this important opinion will almost certainly push the Supreme Court to consider the issue, and soon. The case, decided by the US Court of Appeals for the Seventh Circuit, involved the notoriously dominant health-care software company Epic Systems. True to its reputation as a company willing to take advantage of its market position, Epic sent some employees an e-mail in April 2014 containing an arbitration agreement and stating that, by continuing to work in their jobs, they would be deemed to have accepted the agreement. The arbitration agreement said, among other things, the employees

waived “the right to participate in or receive money or any other relief from any class, collective, or representative proceeding.” In effect, this meant they could not bring classaction lawsuits against Epic. Jacob Lewis, a technical writer at Epic, clicked the box accepting the agreement. But soon after, he ignored it, suing Epic in federal court under the Fair Labor Standards Act. Proceeding on behalf of himself and other similarly situated technical writers, Lewis alleged Epic had misclassified them all and as a result, had not paid them overtime they were owed by law. Since Lewis had accepted the agreement—he would’ve lost his job otherwise—he needed a legal theory to explain why it didn’t apply. His argument was the compelled arbitration agreement was illegal under the National Labor Relations Act (NLRA). This was a tricky argument to make. The Federal Arbitration Act has been interpreted by the Supreme Court to make arbitration agreements enforceable in a range of contexts. And the NLRA, governing labor, itself permits arbitration between unions and employers as part of collective bargaining agreements—like the one under

which Tom Brady was punished in connection with “Deflategate.” It was a tricky argument, but successful. The Seventh Circuit, in a unanimous opinion by highly respected Judge Diane Wood, agreed with Lewis. Wood’s skillful, careful opinion explained first that forcing employees to waive collective action, as a condition of employment, violates the NLRA. Section 7 of the labor law says employees “have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” Wood explained this doesn’t mean only that employees have the right to form unions. They also have the right to use collective means outside unions. The collective means include class-action lawsuits, she concluded. Having argued that Epic’s forced arbitration clause effectively took away this right, Wood concluded the clause was illegal. Epic, of course, took a different view. Relying on a decision by the US Court of Appeals for the Fifth Circuit, which has been followed

by the Eighth and Second Circuits, the company said the Federal Arbitration Act essentially trumps the labor laws. The logic is that if you can contract around other legal remedies under the arbitration law, employees and employers should also be able to contract around the right to bring class-action lawsuits. On this view, there’s nothing special about employment when it comes to arbitration. Cleverly, Wood addressed this argument by saying there was, in fact, no conflict between the federal labor law and the federal arbitration law. She pointed out the Federal Arbitration Act says arbitration agreements are valid “save upon such grounds as exist at law or in equity for the revocation of any contract.” The so-called savings clause means an arbitration agreement can’t violate the usual principles of contract law. One principle of contract law is that illegal agreements are void. Wood reasoned that since Epic’s arbitration agreement is illegal under the labor law, it isn’t valid or enforceable under the arbitration law. The technical legal skill of this argument matters mostly because a split between the federal circuit Courts of Appeal makes it highly likely the Supreme Court will take

FDA should label ‘unhealthy’ foods By Heather Moore

People for the Ethical Treatment of Animals/TNSForum

HOULD we all pitch in and buy the US Food and Drug Administration (FDA) a dictionary? Apparently, the agency is looking for the modern definition of “healthy.” It seems to have no idea what the term means—or should mean—and it’s planning to ask the public for input. Here’s my suggestion: Forget about healthy labels on food packaging. More people will pay attention if the government plasters “unhealthy” labels on packages of meat, eggs and dairy products. There’s no doubt that federal officials need to catch up with current ideas about what’s healthy—and what’s not. For example, the government still allows “pink slime”—bright pink ammonia-treated meat—to be used

as filler in ground beef and permits schools to count pizza as a vegetable if it contains at least two tablespoonfuls of tomato paste. When it isn’t trying to determine whether vegan mayo counts as mayo without the inclusion of artery-clogging eggs, it’s making nutty demands about snack labels. Last year the FDA warned a manufacturer of fruit-and-nut bars to stop using the term healthy on its packaging because the heart-healthy fats in nuts don’t meet the current labeling criteria. While that warning was recently rescinded, the fiasco reportedly prompted the FDA to review its antiquated healthy labels. Here’s why meat, eggs and dairy products should never receive the stamp of approval: Animal-based foods contain cholesterol and saturated fat, which can build up inside

the coronary arteries, putting a person at risk for a heart attack. Meat and other animal-based foods can also cause cancer, diabetes, strokes and other life-threatening illnesses. A new study by the Mayo Clinic in Arizona shows that you can increase your life expectancy by about four years—and probably enhance your quality of life, too—by eating plantbased foods rather than animalbased ones. Researchers analyzed six studies involving more than 1.5 million people and, among other conclusions, determined that processed meat significantly increases the risk of mortality and that people who eat little to no meat may be up to 50 percent less likely to die prematurely than people who eat a lot of meat. Other studies suggest that people who eat plant-based foods live up to

10 years longer than meat-eaters and that vegans are less likely to suffer from debilitating diseases. In March the Netherlands began officially advising people to eat significantly less meat—no more than two servings per week—and instead to eat plant-based foods, including beans and nuts. The United Kingdom also recently encouraged its residents to replace several servings of animal protein with healthy vegan foods. Isn’t it time the US did the same? In 2012 the government began putting nutrition labels on certain types of raw meat so that shoppers could see how many calories—and how much fat, cholesterol and sodium—are in chicken breasts, steaks, pork chops and other types of meat. It was a good start, but labels proclaiming, “Warning: Consumption

up the case. Wood was writing not just an opinion, but a brief for Lewis in the Supreme Court case that may well follow. Of course, Epic could choose not to seek Supreme Court review, worrying that it might get a bad result. But given the company’s profile, that seems relatively unlikely. The eight justices would probably take the case, even in the court’s current hamstrung status. It’s potentially political, but not so political that it would seem to require a 5-4 vote. Labor leaders will like the outcome, and employers won’t. Nevertheless, unions have no inherent objection to arbitration. And creditcard companies won’t need to worry, since the legal issue only involves employers and employees. The Seventh Circuit’s decision isn’t exactly a major blow against the ubiquity of arbitration agreements. But it does stand in the way of what has sometimes seemed like an inexorable trend in favor of more and more arbitration and less and less litigation. That’s bad news if you think of courts as inefficient and politicized. It’s good news if you think courts, not arbitration tribunals, are where justice is supposed to get done.

of this product can cause heart disease, cancer and other diseases that can lead to premature death,” would be much more effective. I’ll settle for unhealthy, though. It’s concise and easy to understand. And while I won’t hold my breath waiting for the government to require labels reminding shoppers that each package of meat contains the decaying flesh of a dead, dismembered animal, that would make a difference, too. Thankfully, we don’t have to wait for government labels in order to make healthy, humane choices. We can just do it ourselves. If you care about your health—as well as animals and the environment —just choose wholesome vegan foods. Nowadays, no one needs a dictionary to know what “vegan” means—not even the FDA.

Conjuring growth from the Trans-Pacific Partnership K

By Jomo Kwame Sundaram | Inter Press Service

UALA LUMPUR, Malaysia—It is now generally agreed that the Trans-Pacific Partnership (TPP) has served US foreignpolicy objectives well. For this purpose, the Peterson Institute of International Economics (PIIE) has provided the fig leaf for the empire’s new clothes with exaggerated projections of supposed growth gains from the TPP. The only US government study, by the Economic Research Service (ERS) of the US Department of Agriculture (USDA), also uses a computable general equilibrium model to find modest growth gains from TPP tariff reductions. Needless to say, the PIIE studies have nothing to say about the more pessimistic findings of US government analysis. In a timely update of its 2012 study, the PIIE has conjured up even greater gains from the TPP by claiming more, albeit still modest growth gains. Both PIIE studies claim greater benefits by assuming that the TPP will catalyze much more growth from nontrade measures (NTMs), which will, in turn, trigger foreign direct investment (FDI). They have also resorted to other novel methods to inflate its ostensible benefits. To make the case for the TPP, the PIIE underplays costs and risks, and exaggerates benefits. Very diverse TPP provisions are fed into its economic

model as simple cost reductions, with little consideration of downside risks and costs. Although associated costs and risks are not seriously considered, such projections are, nonetheless, presented as cost-benefit evaluations. The new PIIE study estimates real-income growth due to the TPP over 2015-2030 to average 1.1 percent for all TPP members, i.e., about 0.06 percent annually over 15 years, instead of the earlier finding of 0.4-percent growth over a decade, which remains modest by any standards. While this represents an increase over their earlier projections by about half, it is more than 10 times what the USDA-ERS exercise yielded. Most gains would go to the TPP’s Southeast Asian four members (Vietnam, 8.1 percent; Malaysia, 7.6 percent; Brunei Darussalam, 5.9 percent; and Singapore, 3.9 percent), followed by Peru (2.6 percent), Japan (2.5 percent) and New Zealand (2.2 percent). NAFTA members (the US, Canada, Mexico, Chile) would only gain 0.6 percent on average. The biggest loser is expected to be Thailand (-0.8 percent), ahead of the Asean trio of Myanmar, Cambodia and Lao PDR (collectively -0.4 percent), with Indonesia and the Philippines only slightly worse off (both -0.1 percent). Thus, the TPP is likely to jeopardize the future of the Asean Economic Community, as well as the

Regional Comprehensive Economic Partnership. Most of the additional growth attributed to the TPP in 2016 is due to revisions of data and assumptions where the devil is in the detail. For instance, despite reduced and delayed tariff and nontariff liberalization, the new data supposedly yield greater growth gains. As before, most of their purported gains from the TPP are not from goods trade liberalization, but due to nontariff barrier reductions and measures promoting services trade. Only 15 percent of the GDP increase would be due to tariff cuts, whereas NTMs account for 85 percent of total growth attributed to the TPP. The PIIE and, since January, the World Bank claim other gains, mainly from investment surges from abroad. Much of the benefits projected have been attributed to FDI booms, justified by the assumption that the TPP will place all participating countries in the top 10 percent of the World Bank’s Doing Business ranking, despite ambiguous evidence of such effects. The studies arbitrarily assume that every dollar of FDI within the TPP bloc would generate additional annual income of 33 cents, divided equally between source and host countries, without any theory, modeling procedure or empirical evidence for this supposition. Provisions allowing foreign investors to sue governments in private

tribunals or undermining national bank regulation, become trade-promoting cost reductions, ignoring the costs and risks of bypassing national regulations and taxation. Again, the huge gains claimed have little, if any, analytical bases in economic theory, past evidence or experience. By understating crucial costs, projected benefits have been exaggerated. For example, provisions to strengthen, broaden and extend intellectual property rights become simple cost reductions that will increase the trade in services, ignoring impacts on consumers or governments subsidizing the availability of medicines besides the reduced trade in medicines due to higher prices and the prohibitions on importing generics. Thus, the studies greatly overstate benefits from the TPP. While most of its claims lack justification, the only quantified benefits consistent with mainstream economic theory and evidence are tariff-related trade benefits that make up a seventh of the projected gains. Even these gains need to be compared against the costs ignored by the study, as well as the actual details of the final deal. Even unadjusted, the gains are small relative to the GDPs of TPP partner-economies. Many benefits are mainly one-time gains, with no recurring annual benefit, i.e., they do not raise the economies’ annual growth

rates. Also, while projected trade benefits are expected to take some time, the major risks and costs will be more immediate. Not surprisingly, the TPP goes much further into redefining the role of government than is necessary to facilitate trade. TPP “disciplines” will significantly constrain the policy space needed for governments to accelerate economic development and to protect the public interest. The unjustified benefits projected by TPP advocates make it all the more critical to consider the nature and scale of costs currently ignored by available modeling exercises. After all, the TPP will impose direct costs, e.g., by extending patents and by blocking generic production and imports. The TPP’s investor state dispute settlement (ISDS) provisions will enable foreign investors to sue a government in an offshore tribunal if they claim that new regulations reduce their expected future profits, even when such regulations are in the public interest. As foreign investors are already well protected, ISDS provisions are completely unnecessary for the TPP. Jomo Kwame Sundaram was an assistant secretary-general responsible for analysis of economic development in the United Nations system in 2005-2015, and received the 2007 Wassily Leontief Prize for Advancing the Frontiers of Economic Thought.

A6 Sunday, May 29, 2016

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Duterte changes mind; DENR will not go to progressive Left By Lilian C. Mellejor | Philippines News Agency

AVAO CITY—President-elect Rodrigo R. Duterte is looking for a person who is not from the progressive Left to head the Department of Environment and Natural Resources (DENR), as he backtracked from his original plan to hand over the department to the Left, citing serious and sensitive issues on mining operations. However, Duterte remains committed to give the departments of Agrarian Reform (DAR) and Social Welfare and Development (DSWD) to the left.

He said the Department of Labor and Employment (Dole) went to Silvestre H. Bello III, who is also the choice of the left. Duterte said he reconsidered to

give the DENR to the progressive Left after going through all some papers. But Duterte said he has already explained to Fidel V. Agcaoili, the emissary of the Communist Party of the Philippines-National Democratic Front (CPP-NDF), why he would not concede the DENR post to them during their meeting on Tuesday night. Agcaoili met with Duterte on Tuesday night to submit the list of nominees from the progressive Left for government offices reserved for them. “It is an impressive list…about less than 10,” Duterte told reporters. He said he already submitted the list of the nominees, mostly from the University of the Philippines, to the screening committee. “If you are identified with the Left—that is not an issue with me. Once upon a time I was left of center,” Duterte said. He emphasized he only wanted a peaceful country.

“Hopefully, when I step down wala na iyong [there is no more] left… right…Moro…lumad…Christian. I want to build a strong nation for the next generation,” he said. In explaining why he cannot give the DENR to the leftists, Duterte said there are serious problems in that department and he needs someone to strongly oversee the agency. The mayor has been strongly criticizing the mining operations in the country because of abuse of resources. “Mainit ako diyan kasi talagang sinira nila ang ating lupa [I am really furious with that…they really destroyed our soil],” he told reporters in a midnight conference on Wednesday. What is unacceptable, Duterte said, they (oligarchs) partnered with multinational mining companies and enriched themselves leaving nothing for the poor Filipinos but the spoils of their operations.

BDO renews SEF partnership with IFC B DO Unibank Inc. has renewed its Sustainable Energy Finance (SEF) Program partnership with the International Finance Corp. (IFC), the private-sector arm of the World Bank, as part of its continued efforts to impart to clients the best international practices on clean energy. Since the bank started the program in 2010 and partnered with IFC, it was able to finance several hydropower plants, biomass-power plants, wind-power projects and energy-efficiency investment projects that contributed to the reduction of greenhouse-gas emissions. This time the renewal of the partnership focuses on further enhancing BDO’s expertise and understanding of solar-power generation and green-building projects. Consequently, this will allow the bank to give the private sector appropriate financing for sustainable-energy investments. Estimates show that there is a substantial potential market for solar-power generation that BDO can tap. Apart from this, BDO also expects investment requirement for environment-friendly buildings to increase, especially with the passage of the National Green Building Code in June 2015 and its subsequent implementation beginning the first quarter of this year. “BDO recognizes the importance of partnering with IFC in

catalyzing private-sector investment in sustainable-energy development covering emerging markets. With this partnership, BDO will continue to support and promote green financing that will help reduce the adverse effects of climate change,” said BDO Senior Executive Vice President Walter C. Wassmer, who is the bank’s institutional banking head. Valentino Bagatsing, principal

investment officer of IFC, voiced that the business sector has to align its activities with environmental protection aside from just targeting profits. “Good environment makes good business,” he said. “Sustainability is the only way to go.” On solar-power generation, IFC will provide BDO with technical expertise in assessing the technical and financial viability of solar photovoltaic (PV) projects through

Filipino coalition in US vows to continue humanitarian work

E M B E R- organizations of the Philippine Humanitarian Coalition (PHC) in the US last week vowed to continue helping in the rebuilding and recovery of communities devastated by disasters in the country. The groups made the promise during a special appreciation dinner at the Manor Country Club in Rockville, Maryland. Philippine Ambassador to Washington Jose L. Cuisia Jr. and his wife, Maria Victoria, attended the event as special guests of honor. Since its inception in February 2014, PHC as a volunteer organization has been committed to its mission of assisting in the rebuilding and recovery of communities affected by natural disasters. Several months after Supertyphoon Yolanda (international code name Haiyan) struck the Philippines, PHC devoted time and resources to the disaster relief and rehabilitation efforts directed to Philippine communities devastated by the calamity.

Gov calls for unity, urges leaders to work together By Joel P. Mapiles Correspondent

ITY OF SAN FERNANDO— Gov. Lilia G. Pineda of Pampanga renewed her call for solidarity, as the newly elected local officials here are set to start their new term in July. “Now that the election is over, we must get back to serving the public and work together,” Pineda said in a statement. The governor said the province's voters choose their political leaders on the basis of their individual performance not on political alliances and endorsement of anybody. “We should learn from the past elections, all political leaders who want to aspire for another term or other positions should individually work and give their best for the satisfaction of the people whom they pledged to serve,” she said. Pineda said she gave the Capampangans the “free will to select their leaders” because, she added, “the essence of democracy is people empowerment.” In the recent elections, only 11 candidates for mayor supported by Pineda won, while the three bets for congressman that she supported lost. The other congressman, former President Gloria Macapagal-Arroyo, ran unopposed in her district “You let the people decide for

Togetherwithitsmemberorganizations, all of which are Filipino-American community groups, PHC has been a strong partner of the Philippine Embassy in projects for the Yolanda cause, such as the After the Storm benefit concert in 2014 and Reflection Forums held in 2014 and 2015. In his remarks, Cuisia expressed his appreciation for, and at the same time, commended the individual member-organizations of PHC for their hard work and dedication to help disaster-stricken communities not only in the Philippines, but also in Nepal following the earthquake in April 2015. He, likewise, recognized the PHC for accomplishing the feat of uniting diverse groups into one effective coalition. “With Jun Rasul and Vicky Navarro, representing the innovative and noble medical and nursing professions, at the helm, the Philippine Humanitarian Coalition succeeded in bringing individual organizations together to work not only on providing immediate relief, but also on the long-term

rehabilitation of Haiyan-affected communities,” Cuisia said. In view of the emerging concerns posed by climate change not only in the United States, but all over the world, Ambassador Cuisia encouraged PHC to take on the new challenge of climate change mitigation and adaptation. “Instead of intervening after a calamity, the PHC can initiate projects in the precalamity phase. Establishing a proactive posture requires cooperation with Philippine and US agencies. I, therefore, urge the PHC to broaden its network to include governmental institutions,” Cuisia exhorted the coalition. PHC’s member-organizations have implemented numerous projects on Yolanda rebuilding efforts in the past two years, including building repairs, evacuation-center construction, maternal- and child-health promotion and protection, human-trafficking prevention, capacity-building activities, scholarship-fund drives, medical missions and educational seminars. Recto L. Mercene

offsite support for solar projects. Also, as part of the service agreement, IFC’s global solar expert has conducted a briefing on March 11 on global solar PV trends and creditors’ general guidelines in assessing solar projects. Moreover, IFC will conduct training sessions on green building, including the Excellence in Design for Greater Efficiencies or EDGE to BDO’s various groups.

themselves. Ours are just suggestions and manifestation of support, but the people’s will and decisions shall be done at the end of the day. That’s what I want and what I did in the last election,” the governor said. “Kahit sinong nanalo, sa Kambilan [her local political party] man iyan, sa NPC [Nationalist People’s Coalition], sa Lakas [Arroyo’s party], sa LP [Liberal Party], o kahit na anong partido, kasama at makakasama naman natin lahat iyan pagdating sa serbisyo publiko,” she said. Pineda said, “Now that the people have already spoken, it’s time to work together whatever political affiliations they came from.” “The election is just one day but the bulk of work ahead of us for development we need to undertake cannot be done overnight. We need a lot of cooperation and support from among the people and other stakeholders,” she said. “We are very grateful to all the Capampangan who chose to trust us once again. Rest assured that we, your elected officials, will continue our efforts in delivering much-needed services here in Pampanga,” added Pineda, who ran unopposed. “The Capampangan have spoken, our new mayors-elect were chosen by the constituents. They know best who deserves to lead their respective municipalities and cities and we respect that,” Pineda stressed.

Pisi sounds safety alarm over China steel imports

BDO Unibank renews its Sustainable Energy Finance Program partnership with the International Finance Corp. (IFC) as part of its continued efforts to impart to clients the best international practices on clean energy. Signing the agreement are (from left) Valentino Bagatsing, IFC principal investment officer; Aileen Ruiz-Zarate, IFC senior investment officer; Walter C. Wassmer, BDO senior executive vice president and institutional banking head; and Edward G. Wenceslao, BDO senior vice president and international desks head.

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HE Philippine Iron and Steel Institute (Pisi) has sounded a public safety alarm over steel bars from China that were tested “in haste and utmost secrecy” through the Bureau of Product Standards in Subic, Zambales. In a letter to Trade Secretary Adrian S. Cristobal Jr., Pisi said that, of the 500,000 bars that were imported, only three samples were taken and tested without the usual and required presence of Customs and Federation of Philippine Industries officials. In contrast, locally produced steel of the same volume must have around 250 samples for testing. Pisi said it was “very concerned” about this since it had previously found instances where samples were replaced prior to testing. Pisi President Roberto Cola said that, in the October 2013 earthquake in Cebu and Bohol, collapsed buildings and houses were found to have substandard imported steel bars without the required logo, a mark that would identify the manufacturer. T he present shipment was

brought in by Mannage Resources Trading Corp., which was put up only last year to deal in the food business. It had a capital of only P400,000 and imported these reinforcing steel bars with an estimated market value of P95 million. Its registered address in Bonifacio Global City is also being used by a different company. Mannage’s president is Lawrence Daniel Sy. The Customs bureau’s office in Subic had issued an alert order against the shipment for “lack of permit,” but Department of Trade and Industry’s Subic office still issued Mannage a “provisional” import commodity clearance (ICC) to allow the cargo to be taken out of Customs’ custody. Pisi had contested this because no law or department order authorizes the issuance of a provisional ICC much less a regular ICC since the shipment lacks a permit. To protect the public, Pisi asked Cristobal to order a new sampling and testing of Mannage’s shipment in the presence of indutry representatives.

Installment terms available for senders of ‘balikbayan’ boxes, cargo in UAE

ENDING out air and sea cargo has never been more convenient and economical for Filipinos in the United Arab Emirates (UAE). LBC Express Inc., in partnership with the First Gulf Bank (FGB), one of the UAE’s leading financial institutions, now offers its customers an installment-payment scheme at 0-percent interest for cargo services. “We are proud to announce our tie-up with FGB, allowing customers to settle cargo services in easy installment payments using their FGB credit cards,” LBC Vice President for the Middle East Mark Agalo-os said. The installment-payment scheme is available for sea cargo, air cargo, Express Air and rest of the world services. UAE residents can take advantage of this service to send packages to 236 destinations across the globe. “As part of FGB’s commitment to provide the best innovative products and services to our customers, it is a privilege to collaborate with LBC Express to offer an accessible payment scheme for cargo services for all UAE residents,” FGB Head of Personal Banking Girish Advani said. “This innovative product, which is the first

of its kind in the UAE, provides customers with convenient payment terms for courier services based on their preferred installment plan,” Advani said. “As we continue to present better user experiences, consumers of this service also have the added advantage of a simple fee structure, enabling them to send packages to families and loved ones without having to worry about making an upfront payment,” Advani added. Customers can choose to pay within three, six, nine or 12 months. “Our valued clients can send as many packages and parcels, as well as choose from any of the monthly payment options for a minimum requirement of 150 Dirham. It is like easily sending cargo for less than 15 Dirham per month, up to 12-month, installment,” Agalo-os said. FGB credit-card customers can now redeem their earned reward points against LBC discount vouchers as part of the FGB Rewards program. “LBC Express has always been a customercentric organization and working to offer UAE residents world-class ser vices, along with best industr y rates. Our new scheme makes our proposition far-more exciting,” Agalo-os added.

Editor: Jun Lomibao • mirror_sports@yahoo.com.ph

Four teams battle for Challenge Cup beach supremacy

OUR teams battle for the supremacy as the 2016 Philippine Superliga (PSL) Challenge Cup semifinal round kicks off on Sunday at the SM Sands By the Bay in Pasay City. RC Cola-Army A’s Jovelyn Gonzaga and Nene Bautista, and Petron XCS tandem of Bang Pineda and Aiza Maizo-Pontillas open the Final Four stage at 11:15 a.m., then Bernadette Pons and Kyla Atienza of Far Eastern University (FEU)-Petron tangle with Cherry Rondina and Patty Orendain of Foton at 12:15 noon. The winners of the semifinal encounter barge into the winner-take-all finals at 5:30 p.m., which will be aired live over Sports 5, the broadcast partner of the tournament bankrolled by Asics, Mikasa, Senoh, Petron, Foton, TV5 as official broadcaster and SM Sands By the Bay as venue partner. Gonzaga and Bautista are coming off a dominating 21-12, 21-14 victory over Frances Molina and Maica Morada of Petron Sprint 4T in the quarterfinals match last week. Pontillas and Pineda, on the other hand, shocked reigning champion Danika Gendrauli and Aby Maraño of F2 Logistics with a 21-17, 21-16 conquest in their own quarterfinals duel. Focus will be on Gonzaga and Pontillas, the pair that represented the country in the beach volleyball event in 2011 Southeast Asian Games in Palembang, Indonesia. “Good luck sa amin. Paghahandaan namin kumbaga focus lang kami sa game; plan namin ni Nene is to give Petron a good fight,” Gonzaga, a former spiker from Central Philippine University in Iloilo City, said. “Kailangan namin i-improve pa ‘yung pattern ng depensa namin at ma-lessen ‘yung errors sa service,” Pontillas said. Meanwhile, the classification matches usher the final day of the tournament with F2 Logistics facing Petron Sprint 4T at 7:30 a.m., while RC Cola-Army B testing the mettle of Philippine Navy A at 8:30 a.m. In men’s action, Philippine Navy B takes on TVM at 9 a.m., while Philippine Navy A collides with FEU A at 9:45 a.m. in the semifinals with the survivors advancing to the finals set at 3:15 p.m. Lance Agcaoili

Sports BusinessMirror

GILAS 5 TRIUMPHS T

By Joel Orellana

HE Gilas Pilipinas cadets squad swept its way to the crown with an impressive 97-80 win over Thailand in the finals of the Southeast Asia Basketball Association (Seaba) Stankovic Cup on Saturday at the Stadium 29 in Bangkok. The Filipinos shot better compared to their 66-65 escape to the same opponent on Thursday, but needed a strong fourth-quarter finish to win the gold medal of the tournament. Team captain Troy Rosario led Gilas 5 balanced attack with 17 points and seven rebounds, while Jio Jalalon added 16 markers and seven boards, as the Filipinos shot 12-of-32 from the rainbow territory.

In their one-point win against the Thais, Gilas 5 shot horrific, missing 34 of their 37 attempts in the three-point area. Mark Belo added 14 markers, while Michael Tolomia contributed 12, including six straight to put the game out of reach, 87-72, with 2:37 remaining. Almon Vosotros also played big, particularly in the second period, where he unloaded three triples that allowed Gilas Pilipinas to grab a 49-45 halftime lead. Rosario then took the scoring cudgels in the third period and his back-to-back three-pointers led to the Philippines’s 63-52 advantage, before the Thais closed out the period with a 10-4 blast, courtesy of Chitchai Ananti and trailed by just five, 62-67.

LADY BULLDOGS PREVAIL VS POWER SMASHERS

EBUILDING National University (NU) started its campaign on a high note with a 25-21, 20-25, 25-23, 25-21, win over Laoag at the start of the Shakey’s V-League Season 13 Open Conference on Saturday at the Filoil Flying V Center in San Juan City. The Lady Bulldogs managed to pull off the win despite the lack of manpower, as the newcomers showed promise in their debut in the 13th season of the league, powered by Sports Vision.

“Magandang simula ito,” NU Head Coach Roger Gorayeb said. “Maski ako nagugulat. Ang laking pagbabago. Sana magtuluy-tuloy ito. Sabi ko nga sa kanila, ‘strength does not come in numbers.’ Ngayon 10 lang

Laoag’s Relea Jessica Galanza (3) soars high to score against Roma Joy Doromal of National University. NONOY LACZA

TAN, CEBALLOS CLAIM ‘QUEENS OF SANDS’ TAG

Bea Tan (right) blocks the attempt of Jennifer Cosas during the finals of the Beach Volleyball Republic. ALYSA SALEN

EA Tan and Fiola Ceballos were hailed as Queen of Sands after dominating the Beach Volleyball Republic (BVR) National Championship on Saturday at SM Sands By the Bay in Pasay City. Tan and Fiola prevailed over Jennifer Cosas and Floremel Rodriguez in thrilling three sets, 21-19, 18-21, 15-7, in the finals to win title. “I’m just happy that the event turned out really well and winning the whole BVR on Tour National Championship is a bonus,” sad Tan, who is one of the BVR founders. “I’m happy that my chemistry with Fiola worked during the games right now I don’t feel tired at all because we won. “Masaya kasi natalo namin silang lahat kahit wala kaming training ni Bea masyado, buti maganda ‘yung chemistry namin kaya nakuha namin,” added Ceballos, who was a former teammate of

Tan back in high school in Iloilo. Tan and Ceballos dominated the three-day tourney, sweeping three teams in Pool C in Day One and beat Iloilo’s DM Demontanio and Jackie Estoquia in three sets, 21-12, 15-21, 15-9 in the quarterfinals on Friday. They also beat Caballejo and Abanto, 21-10, 21-11, in their semifinals duel on the same day. Cosas and Rodriguez, on the other hand, prevailed over favorites Charo Soriano and Alexa Micek due to automatic win since Micek won’t able to continue the match in the third set due to concussion. Micek accidentally bumped her head to advertising board after trying to save the ball in the first set. Micek was able to play in the second set and led Soriano to force a third set, but can’t continue the match and rushed to the hospital after the five-minute medical break. Lance Agcaoili

RADIO ACTIVE COPS 1ST PHILRACOM TRIPLE CROWN

ONG-SHOT colt Radio Active won the first leg of the Philippine Racing Commission Triple Crown series for elite 3YO Thoroughbreds by an impressive seven lengths recently at the Santa Ana Park in Naic, Cavite. The win of the Nestor Manalang-trained Radio Active was worth P1.8 million to owner SC Stockfarm Inc., which also claimed the P100,000 breeder’s purse, having bred the winning horse from US-breds Lim Expensive Toys (sire) and Lacquaria (dam). Underwood and Space Needle, both from Stony Horse Farm Inc., placed second and third, worth P675,000 and P375,000, respectively. Subterranean River of Wilbert Tan finished third and pocketed P150,000. The rich three-leg series, the most prestigious in the country and attracts the best participants of the season, is patterned after the United States’s Triple Crown, with its three legs comprised of the Kentucky Derby, the Preakness Stakes and the Belmont Stakes, also with progressively longer distances. Indianpana of Deemark International

Thailand moved within three, 66-69, but Belo and Jalalon joined forces for a decisive 10-0 blast, to seize a 79-66 cushion, with 5:52 remaining. The hosts lost steam in the remaining period, missing their attempts and turning the ball over to settle for silver medal. Ananti led the squad of Head Coach Tim Lewis with 19 markers. Singapore beat Malaysia, 68-62, to claim the bronze medal in this five-nation tournament. The Philippines and Thailand advanced to the International Basketball Federation Asia Challenge this September in Tehran, Iran. RR Pogoy and Kevin Ferrer netted 10 and eight points, respectively, for the winning squad of Head Coach Nash Racela.

Trading Corp. seized the lead at the start of 1,600-meter race, with favorite Dewey Boulevard of Hermie Esguerra running behind. They are followed by Space Needle and Radio Active, with the top 4 horses tightly bunched and each one jockeying for a better position. At the backstretch, Dewey Boulevard shook off the others and grabbed the lead, followed then by Radio Active. Space Needle dropped half a length back to third, with Indianpana sliding to fourth. Obviously running hot and almost too much to handle for his young rider John Alvin Guce, Radio Active finally grabbed the front position at the far turn and pulled away from the rest without whipping or urging. Even though he raced wide at the home turn, Radio Active still forged a commanding lead and won by an impressive seven lengths, aided only by a few token flicks of the whip close to the finish line. In his elation over the unexpected victory, Guce stood up in the irons before reaching the wire and was fined P1,000 by

the stewards for grandstanding. Different winners ruled last year’s Triple Crown, all long shots, with the first leg being ruled by filly Superv Court of Honor, another filly, denied Superv of a second-leg win, before the second-to-the-longest shot of all, Miss Brulay, surged past six foes to claim the third leg. Prior to last year’s Triple Crown staging in 2014, all three legs were won by Emmanuel Santos’s colt Kid Molave (Into Mischief x Unsaid), earning a P500,000 bonus from Philippine Racing Commission for the rare feat. The Triple Crown series was launched in 1978, with Native Gift winning the first two legs and Majority Rule denying him the sweep. There have been only 10 Triple Crown champions since then: Fair and Square in 1981, Skywalker (1983), Time Master (1987), Magic Showtime (1988), Sun Dancer (1989), Strong Material (1996), Real Top (1998), Silver Story (2001) Hagdang Bato (2012) and Kid Molave (2014).

kami nag-eensayo pero mas relax sila ngayon.” “Binabago ko ‘yung sistema. Ginawa ko lang na mas masaya ’yung atmosphere nila. Dati player lang sila, ngayon para na silang magkakapatid,” he added. NU lost former skipper Myla Pablo, Asi Soliven and Ivy Perez, who all graduated, libero Bia General was cut in the lineup, while Rica Diolan, Maritess Pablo and Klarice Abriam reportedly transferred to College of Saint Benilde. But the key holdovers of Gorayeb put up a good performance to win their opening match. Jaja Santiago led all scorers with 21 points on 16 attacks, four blocks and a service ace, while Filipina-Japanese middle blocker Risa Sato debuted for the Lady Bulldogs with 12 markers. Jasmin Nabor, who was converted from spiker to setter, got the job done with 10 hits and 31 excellent sets. Lance Agcaoili

Sunday, May 29, 2016 A7

RIVALRY SUNDAY IN FILOIL

By rick olivares

T’S rivalry on Sunday in the Filoil Flying V Premier Cup when Letran takes on San Beda, while Ateneo threatens to blemish La Salle’s unbeaten slate at the Filoil Flying V Centre in San Juan. The Knights, struggling due to the loss of key players and adjusting to a new coach in Jeff Napa, battle the revenge-minded Red Lions at 2 p.m., while the unbeaten Green Archers square off with the Blue Eagles at 4 p.m. La Salle is currently leading the field with unbeaten 4-0 slate, while Ateneo holds a 3-1 mark but still groping for form after what was close to a three-week layoff as the team wrapped up its academic requirements. The 2-3 Letran has gotten production from a small core of players in Rey Nambatac, Bong Quinto, Jom Sollano, McJour Luib, JP Calvo and Jerrick Balanza. However it is the first two who have been consistent in their output. With their starters logging long minutes and not enough bench production, it has taxed Knights that have struggled to replace the output of the graduated Mark Cruz and Kevin Racal. San Beda, the defending tournament champions who tote a 3-1 slate, is looking to somewhat avenge its loss in the last National Collegiaye Athletic Association (NCAA) Finals, where Letran spoiled their bid for a six-peat.

Although Red Lions Head Coach Jamike Jarin has downplayed the match, he no doubt wants his team to send a message to the NCAA defending titlists, as well as the rest of the league that they are out to regain the crown. The Green Archers have dominated the opposition, scoring 95.5 points a game while holding opponents to 81.0 points. They have also won the rebound battle 49.7-41.7 and that has allowed them to get out on the fast break where they average 19.5 points an outing. The biggest reason for their strong standing has been none other than their Cameroonian center Ben Mbala who has controlled that lane with aplomb. The “Kid from Cameroon,” as he calls himself, has posted averages of 23.0 points, 15.7 rebounds and 3.0 blocks in leading his side. Ateneo has leaned heavily on Thirdy Ravena (11.6 points and 46 rebounds in his last three matches) in its last two victories, however, the Blue Eagles will count on the services of sparkplug CJ Perez, the heady play of Matt Nieto, as well as the strong play of Aaron Black, Adrian Wong, Kris Porter and rookie Tyler Tio to stem the green tide. In other seniors matches, Emilio Aguinaldo College battles National University at 9:30 a.m., the College of Saint Benilde faces off with Far Eastern University at 11:15 a.m. and Mapua collides with the University of the East at 6 p.m.

Coach Baldwin: Blatche looks fit

ILAS Pilipinas Head Coach Tab Baldwin hopes to fast track the country’s preparation for the International Basketball Federation (Fiba) Olympic Qualifying Tournament (OQT) with the arrival of naturalized player Andray Blatche to the country on Friday. With less than two months remaining before the Manila OQT, Blatche watched the Gilas 5 scrimmages and, though he did not join his teammates, Baldwin liked what he saw.

“He looks better and he seems to be ready,” Baldwin said. “We would not let him play today [Saturday]. We would let him rest first before going all out for the practice,” Baldwin added. Last year as the PHL 5 prepared for the Fiba Asia Championship in China, Blatche came overweight. He struggled to get his best shape and the Philippines finished behind the host nation and has to go through the OQT. Ramon Rafael Bonilla

Sports BACK-TO-BACK T BusinessMirror

Cavs reach second straight NBA Finals

ORONTO—LeBron James scored 33 points and Kevin Love had 20 points and 12 rebounds as the Cleveland Cavaliers advanced to their second straight National Basketball Association (NBA) Finals by beating the Toronto Raptors 11387 in Game Six of the Eastern Conference finals on Friday night. It’s the third finals appearance in team history for the Cavaliers. Cleveland lost to Golden State in six games last year and got swept by San Antonio in 2007. For James, it’s his sixth straight trip to the finals, including four with Miami. He broke the 30-point barrier for the first time this postseason and finished with 11 rebounds and six assists. “We needed LeBron to set the tone for us early and I thought he did that,” Coach Tyronn Lue said. James will be the eighth player in NBA history to appear in six consecutive finals and the first who didn’t play for the Boston Celtics. “He’s just a great player,” Lue said. “He’s a proven winner. He’s always won over the course of his career. To go to six straight finals is unbelievable.” James got there by taking down a Toronto team that set a franchise record with 56 wins and reached the conference finals for the first time in 21 seasons. After a second-quarter dunk, James shared

some verbal barbs with rapper Drake, the Raptors’ global ambassador and the man who popularized the nickname ‘6ix’ for Toronto. Kyrie Irving had 30 points and J.R. Smith added 15 for the Cavaliers, who will face the winner of the Golden StateOklahoma City series on Thursday.

Cleveland Cavaliers forward LeBron James drives to the basket against Toronto Raptors forward James Johnson. AP

Cleveland would open at home against the Thunder but would be on the road against the 73-win Warriors, who trail 3-2 against Oklahoma City heading into Saturday’s Game Six. The Cavs will be seeking to end Cleveland’s 52-year championship drought, the longest by any city with at least three professional teams. No Cleveland team has won it all since the Browns blanked Baltimore 27-0 to win the National Football League championship in 1964. “This city has been craving a championship,” Lue said. “We have the right team and we have the right talent.” Kyle Lowry scored 35 points and DeMar DeRozan had 20 as the deepest playoff run in Raptors team history ended, much to the disappointment of a sellout crowd of 20,605 dressed in red and white T-shirts that formed a maple leaf pattern on either side of the court. Fans stood and cheered “Let’s go, Raptors! Let’s go, Raptors!” throughout most of the final three minutes. Raptors Coach Dwane Casey said reaching the conference finals was “a tremendous learning experience” for his young team,

one that’s “a step ahead” in its process of becoming a championship contender. “We’re learning,” Casey said. “We’re not where [the Cavaliers] are right now. We’re going to be.” Toronto prolonged the series with back-to-back home wins in Games Three and Four, but never mounted much of a challenge to the conference champions in Game Six, falling behind by 21 in the third quarter. The Cavaliers came in 0-4 at Air Canada Centre counting the regular season and playoffs, but looked much more like the team that handed the Raptors a trio of lopsided losses in Cleveland this series. The Raptors trailed 88-78 on a jumper by DeRozan with 10:23 remaining but James scored six points in a 14-3 run that gave the Cavs a 102-81 lead with about six minutes left. James scored 14 in the first and five of Cleveland’s nine field goals were from long range, as the Cavaliers led 31-25 after one. After video review, the officials waved off a basket by Biyombo with 3:18 left in the period and gave him a flagrant foul for knocking down Love. Tempers flared again early in the second when Richard Jefferson reacted angrily to catching an elbow from Jonas Valanciunas as the two battled for a rebound. Patrick Patterson came over and shoved Jefferson out of the way. Both Patterson and Jefferson were given technical fouls. AP

A8 Sun

day, May 29, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

NADAL WITHDRAWS

ARIS—For a decade, Rafael Nadal ruled Roland Garros the way no other man has dominated any Grand Slam site. On Friday his powerful left wrist wrapped in a blue brace, Nadal delivered the surprising news he was withdrawing before his third-round match at the French Open because of an injury that would prevent him from delivering the whiplike, spin-heavy forehand that carried him to a record nine championships and a 72-2 record on the tournament’s red clay. “To win the tournament, I need five more matches,” Nadal said, his face expressionless, his arms crossed in front of him, “and the doctor says that’s 100-percent impossible.” His announcement, at what he called “one of the toughest press conferences in my career,” overshadowed everything else going on around the grounds on Day Six of the French Open, from the straight-set victories by defending champion Stan Wawrinka and No. 2-seeded Andy Murray, to the out-of-nowhere 6-0, 6-7 (3), 6-0 upset of two-time Wimbledon champion Petra Kvitova by 108th-ranked Shelby Rogers, a 23-yearold American. No. 15 John Isner, the last US man in the field, found out about Nadal’s abrupt departure about 15 minutes after winning a five-setter to set up a showdown with Murray for a berth in the quarterfinals. “It was a shock,” Isner said. “I had no idea.” It robbed the event of more star power, coming

a week after 17-time major champion Roger Federer pulled because of lingering back problems. It cleared one potential obstacle from the path of No. 1 Novak Djokovic, who is attempting to win a fourth consecutive major title and his first in Paris—and could have faced Nadal in the semifinals. And it raised more questions about how long Nadal, who turns 30 in a week, can continue to ply his intensely physical brand of tennis and remain among the sport’s best. In the past, he has dealt with problems to both knees and to his right wrist; this is the first time his left wrist has been an issue. “I mean, it’s a bummer for the tournament,” Isner said. “I think a lot of people had him playing Novak in the semis on that side of the draw. It’s a shame.” He knows he’ll have his own work cut out for him against Murray, a two-time major champion who has won all five of their previous matchups. Other fourth-rounders established on Friday included No. 3 Wawrinka against No. 22 Viktor Troicki, No. 5 Kei Nishikori against No. 9 Richard Gasquet, and No. 8 Milos Raonic against unseeded Albert RamosVinolas. AP

Nine-time champion Rafael Nadal announces he is pulling out of the French Open because of a left wrist injury. AP