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Monday, November 27, 2017 Vol. 13 No. 47
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@jonlmayuga
he Mines and Geosciences Bureau (MGB) is more partial to adjusting the excise tax slapped on mining firms based on their minerals production than peg the increase at a uniform rate.
Interviewed during the 64th Annual Mine Safety and Environment Conference (ANMSEC) in Baguio City last Thursday, MGB Director Wilfredo G. Moncano
said the agency will soon come up with its proposal for hiking the excise tax on mining firms. The MGB, an attached agency of the Department of Environment
My 100th: ‘Right(s) or faux right(s)?’
The MGB’s direction is to push for a per-commodity basis increase.”—Moncano
Alberto C. Agra
ead
PPPC.LAgra Alberto
and Natural Resources (DENR), is the government’s primar y mining regulatory body. “There has been a lot of discussion about this. In Congress, there’s a pending bill on increasing the fiscal regime. In the industry, they have been talking about this, too. In the MGB, we also have Continued on A12
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MGB wants to hike mining excise tax based on output By Jonathan L. Mayuga
2016 ejap journalism awards
W
hat greater joy is there than sharing one’s interests and passions with your core? In my case, this is Team Agra—Jean, a financial advisor with a heart…who is the heart of the team; Jessie, a former junior tennis champion…who is completing her law studies while dabbling in coaching; and Noel, a fellow obstacle-course enthusiast…who will soon become a fit-chef-restaurateur. Continued on A11
GOVT URGED TO REVIEW BM Reports PLAN TO LET NFA PROCURE Two decades after the Asian financial crisis: Lessons, risks OTHER FARM PRODUCTS By Jasper Emmanuel Y. Arcalas
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@jearcalas
xpanding the market and distribution activities of the National Food Authority (NFA) by including nongrain commodities could cause the government to incur losses, according to local economists. Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agri Business, said the proposal to allow the NFA to procure and distribute nongrain commodities, such as fruit and fish, should be scrutinized. “This proposal [expanding NFA’s role] needs multisectoral review by the public sector and business
Given the gravity of supply-chain market failure, there is scope or justification for expanding the powers of the NFA.”—Villegas groups. The government should not be in business,” Dy told the BusinessMirror via e-mail. “In the past, the NFA incurred losses with Kadiwa. It will also compete with the private sector, which can do a better job,” he said, adding the food agency “should See “Govt,” A2
Food carts in Intramuros to get face-lift, assigned areas By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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HE Spanish government is assisting the Philippines in updating the design of food carts in the heritage site of Intramuros, as part of the city’s continuing rehabilitation. In an interview with the BusinessMirror, Intramuros Administrator lawyer Guiller Asido said the agency already has a partnership with the Design Center of the Philippines (DCP) and the Spanish Embassy in Manila for
“consultants to come in who will redesign the carts of the vendors under the ‘Rolling Manila’ project.” Also, the Intramuros Administration (IA) has an agreement with the vendors association in the walled city, which includes ambulant and permanent vendors, “to identify permanent vending zones.” The IA has already identified two possible vending spaces; one is like a hawkers’ market ,which is out on the street at Postigo, and Recoletos Street, near Mapua University. “That’s where they will transfer, at the pathwalk,” he said. Continued on A12
PESO exchange rates n US 50.6140
By Bianca Cuaresma @BcuaresmaBM
I
Part One
N 1996 the Tiger Cub of Asia was stopped in its path by the baht. That year, the Philippine economy, under former military general Fidel V. Ramos, was growing at 5.2 percent. Prices were tamed as annual inflation dropped to 5.9 percent, from its high of 9.1 percent in 1995. By the late-1990s the country’s economic growth gained favorable comparisons with other Asian countries, such as Taiwan, Thailand, South Korea and Malaysia. Ramos, credited with his “Philippines 2000” vision, was poised to be hailed as the lead healer of Asia’s “Sick Man.” That wasn’t about to happen, as the Asian financial crisis swept the region three years before a new millennium. With the financial collapse of the Thai baht, the crisis spread to the Philippines that saw its growth by 1998 virtually hit nil. Despite efforts by the monetary authorities to defend the peso, the Philippines’s legal tender dropped from P26 to the greenback at the start of the crisis to P46.50 in early-1998 to P53 by July 2001. Asia, specifically major members of the Association of Southeast Nations, was a wreck. Years later, Asean membernations would show the 1997 Asian financial crisis is only a smudge in its economic growth record.
Recovery
SINCE the Asian financial crisis about 20 years back, the Asean has been able to not only recover from
The unfinished Jaka Tower (center), designed by the American architecture and engineering giant, HOK, was to be 185.93 meters tall. The tower is just one of the many businesses affected by the 1997 Asian financial crisis. The building is now renamed to Alveo Financial Tower and is in the process of being finished. NONIE REYES
the economic wreckage that was but has also thrived to current volatilities in the international market. The region, in particular, is projected to grow by 5.2 percent for this year and the next. Both of these growth forecasts are well above the world average growth projection of 3.6 percent for this year and 3.7 percent for 2018, according to the International Monetary Fund’s (IMF) most recent World
Economic Outlook (WEO) released this month. The global monetary authority also said the growth of Southeast Asia is faster than earlier expected, partly because of the strongerthan-expected external demand from China and Europe. Broken dow n, t he Ph i l ip pines remains the leader of the pack. The country is expected to lead the group this year with a
6.6-percent growth for the year, followed by Vietnam with a 6.3percent growth projection, Malaysia at 5.4 percent, Indonesia at 5.2 percent and 3.7 percent in Thailand, the country where the financial contagion germinated. In 1997, in particular, waves of currency devaluations rocked the region’s economic standing following the failure of currency
n japan 0.4551 n UK 67.3723 n HK 6.4798 n CHINA 7.6862 n singapore 37.6256 n australia 38.5932 n EU 59.9978 n SAUDI arabia 13.4963
Continued on A2
Source: BSP (24 November 2017 )
BMReports BusinessMirror
A2 Monday, November 27, 2017
Two decades after the Asian financial crisis: Lessons, risks Continued from A1
markets in Thailand due to their government’s decision to force float their baht. Declines in markets have then spread rapidly throughout Southeast Asia, giving birth to fears of a worldwide economic meltdown.
Reserves
THE Philippines has been one of the countries hurt by the slump, as the peso severely fell and its growth numbers dipped from 5.2 percent to a contraction of 0.6 percent in 1998. This year, however, the Philippines is seen to be equipped with handling a crisis similar to the contagion in 1997 and 1998, owing largely to improved economic metrics across the board. In an e-mail interview with international global ratings Standard and Poor’s Andrew Wood, he said the Philippines is “better placed” to mitigate the effects of an acute financial crisis than in the late-1990s. “In particular, reserve coverage
Cimatu. . .
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Last Tuesday Duterte said he will continue to observe the ban on openpit mining issued by former Environment Secretary Regina Paz L. Lopez, even as the Mining Industry Coordinating Council has called for its lifting. “I believe that the decision of the President will discourage miningindustry players in general,” Oplas told the BusinessM irror. “It will aggravate the situation where mining and industry contributes very little to our economic growth.” What little amount of contribution mining gives to Philippine economy will only reduce due to the President’s crackdown on open-pit method, Oplas added. The country has not benefitted that much from mining ,and the government is determined to increase excise taxes on it just to maximize profit from the industry. With the ban, Oplas concluded the government is holding mining, companies by the neck without giving them elbow room to contribute to Philippine economy and develop other methods. “Mining is a highly regulated industry. Regulation per se is not bad, but what is bad is [the] government’s failure [to do so],” Oplas said.
Confusing
ATENEO School of Government Dean Ronald U. Mendoza has a different dilemma with Duterte’s decision to continue implementing the ban. Mendoza argues the decision will confuse mining companies whether
is ample, the current account is roughly in balance, and domestic leverage ratios are modest,” said Wood, who is financial services (S&P Global) associate director for the Sovereign and International Public Finance Ratings. “The government’s fiscal deficits have also been contained over recent years, creating more flexibility on the sovereign balance sheet in the event of a crisis,” Wood told the BusinessMirror. Data from the Central Bank shows the country’s gross international reserves hit $81.51 billion in August this year, steadily growing from the $15.06 billion in 2000. At the August 2017 GIR level, the reserves are deemed ample to cover 8.7 month worth of imports of goods and services and primary income. It is also equivalent to 5.6 times the country’s short-term external debt based on original maturity and 3.7 times based on residual maturity.
Fiscal position
to invest in the country. “Our country’s policy flip-flopping will not help us attract long-term foreign investors, nor long-term domestic investors for that matter,”Mendoza told the BusinessMirror. “What we will attract are opportunistic investors—without strong policy consistency and coherence, those who will cut and run with the fickle political cycle,” Mendoza added. The Chief Executive said he has no plans of restoring open-pit mining in the future. He said “it is destroying the soil, the environment,” and is performed without immediate corrective measures. The ban was enforced in April by Lopez who, like the President, has a strong opposition on irresponsible mining. Under Administrative Order 2017-10, the use of open-pit method of mining for the extraction of copper, gold, silver and complex ores was prohibited. Even as Lopez was rejected by the powerful Commission on Appointments in May, the government has continued implementing her directive on open-pit mining, banking on Duterte’s open declaration of his antimining stance.
Moving forward, Cimatu said he wants to see the sector “regain itself in the same manner as those in Chile and Indonesia, which are considered as mineralized as the Philippines.” He said Duterte wants to see the sector’s contribution to the country’s GDP to be at the high of two digits in terms of percentage. As of now, the mining sector in Chile contributes as much as 17 percent of its GDP. The industry accounts for 14 percent of Indonesia’s overall economy. The mining sector’s annual contribution to the Philippine economy had failed to go beyond 0.7 percent over the past seven years. To date, the country’s untapped mineral resources are projected to have a combined value of over $1 trillion, according to the Mines and Geosciences Bureau. “Please remember that our national resources are owned by all of us. These are state assets. You as miners are allowed to make use of them as contractors of our people to benefit all of us now and for the next generations,” Cimatu said. “Simply put, an MPSA [Mineral Production Sharing Agreement] and FTAA [Financial or Technical Assistance Agreement] is a privilege given, not a right one is entitled to. That is why the industry has to adhere to rules and accountability for it to prosper and be sustained for the national good.” He added he doesn’t want to see the sector “end up as an irresponsible one benefiting only a small portion of the public” and to waste “our resources and degrade our environment and, thus, destined to be condemned to the dustbin of history.”
Contributions
IN his message, Cimatu said the industry should redeem itself from “failing the country and the people” for being associated with environmental degradation, social injustice, corporate greed, and utter irresponsibility. He added he wants to see the sector’s contribution to the Philippine economy to grow by double digits, from a measly 2 percent.
THREE years after the Asian financial crisis, the reserves’ import cover was only at about 3.5-month worth of goods and services and primary income. Two decades later, specifically in August this year, the Philippines’s fiscal position hit a P28.8-billion surplus, bringing down the government’s fiscal deficit to P176.2 billion in the first eight months of the year. The currency, however, could be at risk should another bout of crisis hits the region, analysts have said. “Certainly, the peso would be at risk of volatility in the event of an external economic crisis, given the potential for a flight to safety effect and the generally expected decline in emerging market currency crosses against the US dollar,” Wood said. The peso has been seeing a bleak picture this year as it is one of the worst-performing currencies in the
region with a depreciation rate of more than 4 percent in 2017 based on its real effective exchange rate— along with Vietnam. In particular, data from the Central Bank showed the peso declined from trading at P48.35 in October last year to an average of P51.15 in October this year. As the currency remains weak, the country’s external position is expected to shield the economy— should another crisis arise. “That said, we gauge the Philippines’s external position to be a strength, indicating that external indebtedness and short-term liquidity needs are contained. This state of play would provide some buffer against an acute external crisis,” Wood told the BusinessMirror. “Likewise, the current account is roughly in balance, and the Central Bank has ample foreign exchange reserves to smooth excessive volatility if necessary.” To be continued
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BusinessMirror. . . continuing debate for and against biotechnology and genetic modification (GM) of crops to develop resistance to common plant pests and diseases, and improve the quality of some crops. The J. Burgos Media Services said the number of stories from newspapers that qualified for the first year of the awards in 2005 were only more than 100. This doubled in the following years and peaked to more than 1,000 stories. T he awards organizers acknowledged the controversy over biotechnology and GM crops as having ignited the interest in biotechnology. Last year’s spike in the number of stories, for example, was pushed by the Supreme Court two rulings just months apart in succession, first in December 2015 stopping the further field trials for the Bacillus thuringiensis (Bt) eggplant, and then on July 2016, reversing the ruling. That same year, the Joint Department Circular 01-2016 gathered the five Cabinet departments on Science, Environment , Agriculture, Health and the Interior and Local Governments to compose the one-stop evaluation and approval
Food cart. . .
Govt. . .
approval. We would then discuss what IA could provide them,” the IA head averred. Research shows 69 percent of the food vendors are women, with most between 50 and 60 years old. For two weeks starting November 15, designers from Zoohaus have been researching on street-food peddling in the historical walled city, to be used in improving these street-food stalls using sustainable designs. The Rolling Manila project was made possible through the Acerca Program of the Spanish Agency for International Development Cooperation (Aecid). Acerca is a training program of Aecid in the cultural sector, whose main objective is the enhancement of skills of partners in Spanish cooperation cultural projects. In an earlier interview with Spanish Ambassador to Manila Luis Antonio Calvo, he said his country’s assistance to the Philippines will likely increase for the 2018-2022 period. The country received €50 million from Spain from 2014 to 2017. The Philippines is the largest recipient of Spanish assistance in Asia. (See “Spanish government eyes hike in financial assistance to PHL,” in the BusinessMirror, April 12, 2017.) Seeing how the project necessitates a design research process, DCP prepared curated food and design tours around Manila to immerse Zoohaus designers in Intramuros and its history, Philippine streetfood culture and the design-andbuild environment, according to the Spanish Embassy. “Also part of the design research process are interaction and visits to tricycle manufacturers and Sarao factory for a deeper understanding of the city’s landscape and transportation system; and visits to Divisoria, Tondo, Quiapo and Recto for sourcing of possible materials for the redesigned food carts,” the Embassy added. DCP also tapped cultural heritage conservation expert Associate Professor Eric Zerrudo to discuss the significance of cultural-heritage mapping as a tool in recognizing, understanding and planning the future use of Intramuros cultural assets; and Chef Claude Tayag to share an overview of the Filipino gastronomic culture. The Embassy said Zoohaus would “share its techniques and expertise with DCP designers to improve and modernize these stalls on wheels using designs and objects that may increase their effectiveness and enhance its attractiveness to visitors.
just stick to rice-buffer stock management.” Dy said the Philippines should emulate its neighbors in Southeast Asia whose governments did not intervene in their food market. “We must learn from the Asean experience. The private sector and well-organized producers can do better.” “The best things the government can do are build good rural infrastructure, make communication infrastructure efficient and costcompetitive and establish a very good market information system accessible to all producers,” he added. Dy said the government should also support the setup of stronger farmers and fishermen organizations and provide training to them. “If government invests well on [these things], then there will be less market imperfections. There will be efficient value chains,” he added. Economist Pablito M. Villegas, vice president of Confederation Filipino Consulting Organizations, echoed Dy’s remark that the government should not intervene in the market. However, Villegas said reviving the NFA’s old Kadiwa scheme could be a “viable” option to address current market failures, particularly the proliferation of middlemen and traders who tend to inflate the prices of goods. “Given the gravity of supplychain market failure, there is scope or justification for expanding the powers of the NFA and reverting to the Kadiwa scheme,” he said. “At present, traders are the only ones benefitting. There is an oligopolistic influence at the current value chain, resulting in lower farm-gate price but higher retail price of goods,” he added.
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for field tests of genetically modified organisms. T hese events generated a slew of stories for and against the issue, A study of the Philippine media coverage conducted by the Cornell University-headquartered International Ser v ice for the Acquisition of Agri-Biotech Application (Isaaa) has also noted a decline in the use of metaphors to debunk claims of proponents of biotechnology, although it acknowledges the continuing debate over the issue. “The coverage was high in terms of the number of articles, but sensationalism and speculations were evident, since a biotech crop was just introduced and commercialized in the country. Negative metaphors, such as ‘frankenfood’ and ‘poison’ were commonly used in the initial years of reporting,” the study said. It said the Philippine media developed a matured editorial position over 17 years of modern biotechnology reporting. The Isaaa study was titled “From Frankenfood to Light of Hope: 17 Years of Agri-biotech Reporting in the Philippines (2000-2016).” Villegas, who has sat before in the NFA Council as vice president of the Land Bank of the Philippines, said the government should ensure that its procurement system is transparent if it is really serious about expanding the NFA’s role. He urged the NFA to hire private managers, such as brokers, who will oversee the procurement and distribution of agricultural commodities across the country. These managers will be paid and shall be accountable to the Commission on Audit. NFA Assistant Administrator for Marketing Operations Maria Mercedes G. Yacapin told the BusinessMirror that the agency has started reviewing the proposal of President Duterte to expand the food agency’s role. Yacapin agreed with Agriculture Secretary Emmanuel F. Piñol who said expanding NFA’s role would assure farmers of a ready market and a decent income. However, she said the NFA would be needing a bigger annual budget if the food agency would be tasked to buy other agricultural products. “Right now, the NFA has very limited capability in terms of logistics. This [expansion] is a big requirement that entails a higher budget.” “The NFA also has to consider Republic Act 9184, or the procurement law, which we had to follow when importing rice. We have to consider the requirements of the law if the NFA would expand its procurement program,” Yacapin added. Earlier Piñol said he is requesting Duterte to issue an executive order that would restore the powers of the NFA to stabilize the price and supply of nongrain commodities. He added the NFA “should function as a real food agency” by including other agricultural products, such as fruits and fish, in its marketing and distribution activities.
Court of Appeals. . .
“How may petitioners exercise their right of retention when, in the first place, they have no inkling of which particular portions of their properties are to be acquired by public respondent DAR?” the CA said. Without the DAR’s clear-cut and definite delineations, as determined through surveys, the CA said the petitioner “will be highly susceptible to being deprived of its properties.” “But more than petitioner’s few choice words for public respondent DAR, a perusal of the assailed issuances reveals, to this very Court, that the 1987 Constitution and pertinent law have certainly been transgressed. To us, petitioner RCI’s right to due process of law has once
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again been violated,” the CA said. The CA decision also noted that Section 18 of DAR Administrative Order 07-11 requires the publication of the notice of coverage to state the “coverage of the subject landholding under the CARP on the specific land-acquisition schedule.” “An indication ‘with specificity’ which ‘areas delineated by metes and bounds, are to be covered and acquired by the DAR’ is of paramount importance because Section 15 of DAR Administrative Order 0711 requires the notice of coverage to state the period within which the landowner may file a manifestation to exercise the right of retention,” the decision read.
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Editor: Vittorio V. Vitug • Monday, November 27, 2017 A3
‘Returning war on drugs leadership to PNP bad move’
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By Butch Fernandez
@butchfBM
he President will not be fasttracking or resolving the war on drugs by simply returning agency leadership to the Philippine National Police (PNP) from the Philippine Drug Enforcement Agency (PDEA), concerned senators said over the weekend, warning this could even worsen the problem.
Instead, the PDEA, which is “legally mandated to be the country’s primary agency in the antidrug campaign,” should retain leadership and the PNP be directed to lend “its full operational muscle to fill up the lack in manpower besetting the drug agency,” Sen. Grace Poe said last Sunday. Poe, chairman of the Public Services committee, warned: “We must not forget that the PNP has been involved in too many controversial operations, thus casting doubt on the
organization’s ability to uphold the rule of law and respect basic rights.” She said the only reason the PDEA seems hampered is that it is severely restricted manpowerwise, and having the PNP provide the needed warm bodies for the campaign should redress this, not returning leadership to the controversy-ridden police force. “With PDEA remaining on top of the operations and with PNP providing main support, the government will be able to help rectify the manner
Military to complete clearing operations in Marawi in April By Rene Acosta
@reneacostaBM
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he military needs some more months, or at least until April next year, to finish clearing the main battle area in Marawi City of unexploded ordnance and bombs left by the terrorists, a military official said last Sunday. Col. Romeo Brawner, deputy commander of the military’s Joint Task Force Ranao, said the Task Force Bangon Marawi, which has been tasked to spearhead the repair and rehabilitation of the war-torn city, set the April 2018 deadline for the clearing operations. However, Brawner said the deadline would still depend on how fast they can do the clearing operations and the presence of unexploded bombs in the battle area, which they could not estimate as it covers a large part of the city. “Our clearing operations are very deliberate. It’s hard for us to say the area is already cleared and the residents would return to retrieve [belongings], and then they would be hit by explosion. That would be dangerous,” he said. The same case applies to the demolition teams or even the developers, who risk exposing themselves to explosions. According to Brawner, soldiers using metal detectors continue to recover firearms and unexploded bombs in the battle areas. At least 77 firearms have been recovered, aside from unexploded bombs and ordnance. Last week the clearing operations unearthed 16 bombs in just two days. Brawner said the clearing operations were being undertaken “sector by sector” in the 24 barangays that used to be the main battle area between the soldiers and members of the Islamic State-Maute Group.
Gender-sensitive reporting urged By Jun N. Aguirre | Correspondent
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ALIBO, Aklan—The Philippine Commission on Women (PCW) urged members of the media, including television, print and even social media, to put more emphasis on issues pertaining to women and development. Cristita Triunfante, PCW commissioner on education, said there are many potential stories involving women that are newsworthy. Triunfante was here recently as guest speaker for the one-day training on gender-sensitive media for members of the Aklan press. “We are regularly monitoring news sites in all media platforms, including the film, lifestyle section of newspapers and even magazines, and we have found out that men are still the most prevalent sources of news. Women in politics, corporate or even households still need their voices to be carried out in the media,” she said. “I, however, wanted to put emphasis that we have many Filipino women journalists who are gender sensitive. There are still many [men and women], however, that needed to be trained, especially in the countryside,” she added. Also, Triunfante said that the PCW is currently coordinating with the Department of Education to ensure that school textbooks are gender sensitive. For his part, Engr. Roger Esto, provincial planning and development office chief, said that the media training on gender-sensitive reporting is part of the province’s culmination of the 18th day campaign against Violence Against Women and Children. Members of the Aklan media, mass communication students from the Northwestern Visayan College and Aklan Public Information Officers Association, among others, participated in the training held at the PGO Conference Hall at the Provincial Capitol.
or conduct of such operations. This is also consistent with the President’s desire to pursue a more vigorous antidrug campaign,” Poe said. The PNP, at the same time, must also clean up its organization and strengthen the Internal Affairs Service (IAS), which, like PDEA, has been severely hampered by lack of resources and manpower, Poe added. The IAS last week released its findings on the Caloocan police killing of Carl Arnaiz in September, saying the two cops deliberately killed him in cold blood after apprehending him on an alleged robbery of a taxi driver. “The directives and goals of the leadership must always be in accordance with the law and due process, and must also stress the importance of human life,” the senator said. “Finally, we need to see the drug problem from a wider perspective. It should also be considered a health and socioeconomic issue that requires alternative mechanisms to address the drug problem from these angles,” Poe added. The President earlier assigned the lead role in the crackdown on illegal drugs to PDEA following public outrage over the controversial death of 17-year-old student Kian
Loyd de los Santos and 19-year-old Arnaiz at the hands of Caloocan policemen in August. In a memorandum signed on October 10, Duterte told law-enforcement agencies to let PDEA “as the sole agency” to conduct anti-illegal drugs campaign and operations. Meanwhile, the National Grid Corp. of the Philippines (NGCP) has set aside P10 million to train former drug dependents who need assistance to obtain decent jobs. The NGCP has allocated the amount for its corporate social responsibility (CSR) program dubbed “Bukas na Pintuan Tungo sa Pagbabago Open Door Towards Change”. The amount allocated for 2017 to 2018 will fund the operational expenses and the supplies and materials needed for the skills, development training under the Technical Education and Skills Development Authority (Tesda). It will also cover the honoraria of the program trainers and the assessment fee of the trainees to acquire National Certification II in Scaffolding Erection and Pipefitting. “Our goal is for the beneficiaries to become Tesda-certified so that they have a better chance of securing
viable employment and livelihood opportunities,” the NGCP said. The NGCP aims to have up to 2,100 program beneficiaries over the two-year period. It will work closely with the local government units (LGUs) of the host municipalities to identify the beneficiaries, and coordinate with Tesda for the training programs and the Public Employment Service Office for the employment of the program graduates. By working closely with the LGUs, the NGCP can also closely monitor the skills training and the employment status of the beneficiaries. This, in turn, will strengthen the grid operator’s partnership with the LGUs of its host communities. The NGCP, the sole operator of the country’s power grid, wants to provide assistance to recovering drug users by giving them a second chance at life through the said program, by providing skills training and employment opportunities to former users and dependents. “Everyone deserves a second chance. We believe in the willingness to change and strong potential of former drug users to join or rejoin the work force,” the NGCP said. “A productive and effective way to wage war on drugs is to provide adequate
training and employment opportunities to former drug users, so that they can turn their lives around and provide a better life for themselves and for their families.” As a CSR program of the NGCP, Bukas na Pintuan Tungo sa Pagbabago is being piloted in Bataan. It will support the Bahay Pagbabago Reformation Centers of the provincial government of Bataan, which were designed to help former drug dependents who have voluntarily surrendered for rehabilitation. Bukas na Pintuan’s pilot projects will be implemented in three Bahay Pagbabago Reformation Centers in the municipalities of Dinalupihan, Orion and Balanga City. Around 26 percent or 1 in 4 of the 2.3 million drug users in the Philippines are unemployed, according to initial findings by the National Anti-Poverty Commission, which was based on figures from the Dangerous Drugs Board in 2015. To date, information from the PDEA reveals that there are already 1.2 million drug users who have voluntarily turned themselves in for rehabilitation. However, Tesda pointed out that former drug dependents still need assistance to obtain decent jobs. With reports from Lenie Lectura
Economy
A4 Monday, November 27, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
Govt urged to scrutinize proposed rules on sourcing renewable energy
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By Lenie Lectura
@llectura
he Manila Electric Co. (Meralco) “strongly recommends” a deferment of the implementation of Renewable Portfolio Standards (RPS) until further comprehensive studies on the feasibility and necessity of such policy mechanism is conducted. RPS requires distribution utilities (DUs) to source a portion of their power supply from eligible renewable-energy (RE) sources. The National Renewable Energy Board, the advisory body tasked with the effective implementation of RE projects in the Philippines, is conducting a series of public consultations on RPS. The consultations focus on the rules and guidelines for the RPS for
off-grid areas, a policy mechanism requiring electric power-industry participants, such as generators, DUs and suppliers to source or produce a specified fraction of the electricity they generate from eligible RE resources. “The proposed RPS rules for offgrid areas will contribute to the growth of the renewable-energy industry through increased develop-
ment and utilization of RE resources in the countryside where significant percentage are using expensive fuels. Thus, we will be able to diversify energy supply,” Energy Secretary Alfonso G. Cusi said. “Ultimately, we see this to spur socioeconomic development and help address environmental concerns,” the energy chief added. However, Meralco said mandating the RPS at this time will definitely reduce RE developers’ incentive to be more and more cost-competitive, to the detriment of consumers. “However, if we allow the market to work, without distortionary policies like the RPS, we may see more and more RE being integrated into the system without adverse consequences on prices and on the reliability and quality of electric service,” Meralco Vice President and Head of Utility Economics Lawrence Fernandez said. The utility firm pointed out that it has proactively supported RE programs that benefit end-users. As a
DU, Meralc said it provided timely and reliable interconnection and wheeling services to numerous RE-based embedded generators and energized the first net metering participant in the Philippines and currently connects 92 percent of all net metering participants in the country. “In recent months, we have seen RE projects become more price-competitive, even without governmentimposed mandates,” it said. It strongly suggests the need for rigorous technical and economic studies before any plan to impose the RPS. “There should first be an assessment of what RE-based projects will be available for compliance. Equally important, the capacity of the grid to absorb them should be studied ahead of any RPS implementation,” the Meralco official added. The issuance of the RPS guidelines is based on Republic Act 9513, or the Renewable Energy Act of 2008, which aims to increase the utilization of RE by enhancing national and local capabilities.
House endorses socialized-housing bill for Senate approval By Jovee Marie N. dela Cruz @joveemarie
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he House of Representatives has endorsed for Senate approval a measure that aims
to strengthen the right of the government to expropriate lands for socialized housing. This after the lower chamber approved recently on third and final reading the House Bill (HB) 159 or
“An Act Strengthening the Right Of Government To Expropriate Lands For Socialized Housing” authored by Rep. Jose Christopher Y. Belmonte of the Six District Quezon City. It provides local government
units (LGUs) with the power to identify and prioritize areas to be acquired or the proper agency acquiring land for socialized housing. However, the bill said LGUs should give budgetary priority to on-site development of government lands to be converted into housing sites. Under the bill, the areas that could be converted into sites for socialized housing include those owned by the government or any of its subdivision, alienable lands of the public domain, unregistered or abandoned and idle lands and those declared areas of priority development, zonal improvement program sites and slum improvement and resettlement-program locations. While the bill allows the expropriation of lands, even if ownership is still the subject of a pending court litigation, it exempts parcels of land owned by “small-property owners” from acquisition by the local government. The measure said modes of land acquisition provided are community mortgage, land swapping, land assembly or consolidation, land banking, donation to the government, joint-venture agreement, negotiated purchase and expropriation. It added government-owned and foreclosed properties shall be acquired by the LGUs or by the National Housing Authority primarily through negotiated purchase. Qualified beneficiaries who are actual occupants of the land shall be given the right of first refusal. Earlier, House Committee on HousingandUrbanDevelopmentChairman Rep. Alfredo B. Benitez of the Third District of Negros Occidental said the government should now tap the help of the private sector in addressing the country’s housing problems. He added there are idle lands or properties that could be used as sites for government and private-sector socialized housing programs. Currently, Benitez said at least 5,821.57 hectares of land in the National Capital Region are available for public-private partnership for the government’s socialized housing programs. Of the 5,821.57 hectares, 1,234.85 hectares are government-owned and currently being occupied by informal-settler families, while the rest is idle and ready for housing programs. Benitez added the remaining 2,401.72 hectares are private land but are also being occupied by informal settlers. According to Benitez, the housing needs of Filipinos could balloon to 6.8 million before President Duterte’s term ends in 2022.
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Malacañang prodded to certify emergency-powers bill as urgent
Taylor Weidman/Bloomberg
By Butch Fernandez @butchfBM
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alacañang was prodded over the weekend to certify the emergency- powers bill as an urgent measure before Congress adjourns for its traditional Christmas recess in mid-December. Sen. Grace Poe, in a statement issued last Sunday, voiced expectations “that Malacañang will certify the proposed emergency powers as urgent to pave the way for its immediate approval and enactment.” Poe pointed out that the two chambers of Congress have barely “three weeks, or officially nine session days left” before the lawmakers go on recess for their monthlong holiday break starting December 16. She said the “fastest way” to fasttrack the passage of the emergencypowers bill is a Palace certification signed by the President, “just like other measures that have either been passed by Congress and were being tackled in marathon debates.” “For sure, the emergency-powers bill will move if Malacañang makes it a priority and certifies it as such to help speed up the implementation of projects that will help ease the horrendous traffic situation, especially in Metro Manila,” said Poe, principal proponent of the pending Senate Bill 1284, also known as “An Act Compelling the Government to Address the Transportation and Congestion Crisis Through the Grant of Emergency Powers to the President.” Poe, as chairman of the Senate Committee on Public Services, earlier met with officials of the departments of Transportation and Public Works, as well as the Metropolitan Manila Development Authority during which she requested the agency heads to send to the Senate a “concrete plan” to address the traffic gridlocks which she intends to submit to the plenary after senators conclude ongoing deliberations on tax reform and the 2018 budget bill. In turn, the agency heads committed to provide the senators a “comprehensive report on priority projects” lined up for implementation for the duration of the emergency powers, before Congress goes on vacation from December
16 to January 14, 2018. Poe said such certification of urgency from the Palace will allow Congress to pass the measure on second and third reading within the same day. “A Palace certification is important as this as one way of compelling lawmakers to proceed with the bill.” The senator suggested that “it would help if the President would certify it as urgent, more for its hoped effect of easing traffic in the metropolis and that the same would be taken as an imprimatur to prompt not only for the Senate leadership to include emergency powers in its priority agenda but also for the House to prioritize the same.” She said President Duterte, who first floated the idea to address traffic gridlocks during his first State of the Nation Address (Sona) could also issue marching orders to his allies in the House of Representatives, led by a “super majority” coalition, and the Senate to pass the measure. The emergency-powers bill, which is still being deliberated by senators, is seen to “effectively loosen stringent policies” to fast-track the implementation of projects to ease traffic, Poe added. According to her, the President’s certification will ensure that the bill, along with other priority measures, such as the sweeping overhaul of the Philippine tax system and the proposed 2018 national budget, will be tabled by lawmakers for consideration and guarantee a smoother flow in the legislative mill. Poe aired her suggestion in the wake of reports Presidential Communications Secretary Martin M. Andanar affirmed that Malacañang is renewing its push for the passage of the proposed legislation in the light of reports that Metro Manila citizens “spend the third-longest average time being stuck in traffic daily at 66 minutes, longer than the average of 52 minutes in Asia.” At the resumption of legislative sessions this week, senators are scheduled to resume deliberations on the first tranche of the Duterte administration’s tax-reform package even as lawmakers are also expected to approve Malacañang’s emergency powers before the upcoming recess.
Japan to help prepare Filipino construction workers for ‘golden age of infrastructure’ By Catherine N. Pillas @c_pillas29
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he Philippines and Japan have signed a cooperation agreement for the joint implementation of a training program, to prepare Filipino constructionworkersforManila’s“Build, Build, Build” infrastructure program. In a ceremony last Thursday, the human-resource development arm of the Construction Industry Authority of the Philippines, the Construction Manpower Development Foundation (CMDF), concluded the agreement with Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The joint training program will run for three years, wherein Filipino workers can be trained in-country and abroad by the MLIT. The MLIT will also be collaborating with the Overseas Construction Association of Japan Inc. (Ocaji), to tap Japanese contractors in
need of Filipino workers. “In this collaboration, they will train some here in the Philippines, some in Japan. The workers that will be employed there, in the Japanese projects, will come back after a maximum of three years. Toward the end of the training period, CDMF will retrain the workers to integrate into the Philippine work force then match with construction companies here,” Trade Undersecretary for Competitiveness and Ease of Doing Business Ruth B. Castelo said. For the workers to be trained in the Philippines, they will undergo three months of training with the CDMF and then they will be matched with large contractors like DMCI, MDC, EEI and Megaworld, which will also do on-site training-cum-employment. “This is to really benchmark with the Japanese way of instilling discipline in workers in the industry. Their training produces more efficient workers,” Castelo added.
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Editor: Jennifer A. Ng • Monday, November 27, 2017
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PHL lifts ban on Brazilian meat imports
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By Jasper Emmanuel Y. Arcalas
@jearcalas
raders may now import beef, poultry and mechanically deboned meat from Brazil, as the Philippine government has lifted the four-month ban it imposed on meat products from the Latin American country.
The Department of Agriculture (DA) issued last Friday a memorandum order (MO) authorizing the lifting of the import ban after it concluded that Brazilian meat exporters were compliant with Philippine food-safety standards. The MO was signed by Agriculture Secretary Emmanuel F. Piñol. “There has been a DA Inspection Mission [DAIM] to verify and evaluate the animal health food-safety systems of the Federative Republic of Brazil,” Piñol said in the MO, a copy of which was obtained by the BusinessMirror. “Based on the evaluation of the DAIM Team, the Federative Republic of Brazil [through its Ministry of Agriculture, Livestock and Food Supply, representative farms, veterinary and quarantine services and FMEs (foreign meat establishments) inspected] were found to comply with the Philippines’s
animal health and food-safety requirements,” he added. Piñol said the MO takes effect immediately. He called on Brazilian exporters to abide by Manila’s food-safety regulations on beef, pork and poultry meat imports. “All import transaction of the above products shall be in accordance with existing rules and regulation of the DA, Bureau of Animal Industry and National Meat Inspection Services [DA-BAINMIS],” the MO read. A government source told the BusinessMirror that the DAIM inspected 23 FMEs in Brazil from September 18 to 29. Of the total number of FMEs, 10 were found to have been involved in the shipment of meat products tainted with salmonella to the Philippines in July. Earlier, Brazilian Animal Protein
Association Vice President of Market Ricardo Santin said his group expects shipments of Brazilian meat products to the Philippines to hit a record high in 2018 due to the strong demand for poultry products. “Brazilian exporters are prepared to supply the demand of Philippine market with quality products. If all the [processes] end by November, we hope to return the exports in the same level as before,” Santin told the BusinessMirror via e-mail. “Actually, we expect [shipments] to increase. In 2016 we exported 37,200 metric tons. We believe sales [in 2018] would be better than last year,” he added. In August Piñol issued MO 32, dated July 31, which authorized the temporary suspension of the accreditation of all Brazilian FMEs after the government discovered that some shipments were tainted with salmonella. “According to Memorandum Circular 9-2008-5, Series of 2008, entitled ‘Microbiological limits for assessment of microbiological quality fresh, chilled and frozen meat,’ microbiological limits for salmonella spp. must be absent in 25 grams sample,” MO 32 read. “A total of 246 out of 492 container vans were sampled and subjected to laboratory analysis from March 1 to June 30, wherein samples from 18 containers [7 percent] tested positive for salmonella spp.,” it added.
Cooperatives–the key to success in agriculture (3)
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n Lack of proper understanding of the ichael M. Alunan is remindprinciples, practices and true aims and puring me for the second time in poses of cooperatives; his BusinessMirror column last n Improper use of credits by the Wednesday, with the title ‘Duterte reforms in coop sector key to poverty alHenry J. Schumacher borrower,s who, instead of using the money for production, spent it on nonessentials; leviation,’ how important the expansion europe Beat n Defective securities; of the cooperative movement would be n Inadequate character and moral rein the Philippines to address the poverty sponsibility in handling the other fellows’ money; and in agriculture. I was appalled to learn from him that it n Lack of adequate safeguards against unscrupulous takes three to 10 months to get registered with the Coofficers who took advantage of their position to benefit operative Development Authority. Looking at my investthemselves. ment in coffee growing in Camarines Norte and having Heavy public and private investments into agriculture convinced young farmers there to create a cooperative, I will allow the consolidation of farm land as farm consolican just imagine how enthusiastic they will be to wait up dation is of great importance. The best models of Philipto 10 months to get their initiative approved by the govpine cooperatives should be copied and cascaded. The ernment. There is no doubt that the economic team of adoption of advanced farming technologies can only the Duterte administration should look into this together be achieved by management systems that can focus on with the Department of Agriculture secretary. competitive land sizes, good research and development What will the administration gain by actively supportin coordination with existing research institutes in the ing the creation of more cooperatives? If farmers are getcountry, supported by increased extension service to be ting together, developing a social form of business that provided by government. relies on a sense of community, it will lead to competitive If cooperatives are the key for the future of agriculture farming, mechanization of farms, the application of the and having examples of very successful cooperatives, latest technologies, the focus on high-value crops, the isn’t it high time that the government and the private exclusion of the middle-man and the creation of effecsector got together to jointly find solutions to cascade tive supply and value chains. the successful cooperatives throughout the country? Allow me to remind you that over 20 million people There are many options for cooperatives, from farming in Germany are members of cooperatives; organizations to food production, from finance to marketing and sales. that work according to the motto: “What one person canAs mentioned above, cooperatives can be main players in not accomplish alone can be accomplished by many.” This creating and driving agri-food supply and value chains, enables them to establish enterprises they would not be always assuming that they are managed by people with able to finance alone. experience and integrity. The Philippines has a long history in creating cooperatives but only a few cooperatives are successful. What are the reasons early cooperatives failed? Comments are welcome; e-mail me under Schumacher@ n Incompetent management; mcasia.org.
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The World
Monday, November 27, 2017 • Editor: Lyn Resurreccion
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Attack exposes Egypt’s lapses in fighting ISIS
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AIRO—After militants massacred 305 people at a packed mosque last Friday in a stunning assault on a sacred place, President Abdel-Fattah el-Sissi responded as he knows best. El-Sissi went on television vowing to “take revenge” and strike back with an “iron fist.” Moments later, Egyptian warplanes swooped over the vast deserts of the Sinai Peninsula, dropping bombs that pulverized vehicles used in the assault. Soldiers fanned out across the area. But that furious retaliation, which follows years of battle in Sinai against a vicious Islamic State (IS) affiliate that downed a Russian passenger jet in 2015 and has regularly attacked Egyptian security forces there, revived the most troubling question about el-Sissi’s strategy in the desert peninsula: Why is it failing? One of the most striking aspects of the carnage that unfolded last Friday—the deadliest terrorist attack in Egypt’s modern history—was how easy it was for the militants to carry it out. In a statement issued last Saturday, Egypt’s prosecutor
general, Nabil Sadek, described the grisly scene in forensic detail. Between 25 and 30 gunmen, traveling in five vehicles and carrying an IS flag, surrounded a Sufi mosque in Bir al-Abd, a dusty town on a road that arcs across the sandy plain of North Sinai. After an explosion, they positioned themselves outside the main entrance of the mosque and its 12 windows, spraying the worshippers with gunfire. Seven parked cars were set ablaze to prevent victims from escaping. Among the dead were 27 children. For Sinai residents, the attack deepened an abiding sense of dread about life in a part of Egypt where many feel trapped between barbarous militants and a heartless military. At a hospital in nearby Ismailia, survivors recounted how they leapt through windows as militants raked them with gunfire, or of watching
their friends and relatives die. “If even mosques are being targeted, then where are we safe?” said Mohamed Abdel Salam, 22. For Sinai experts, the assault sharpened scrutiny of Egypt’s counterinsurgency tactics against a dogged Islamic insurgency that has surged in strength since 2013, after el-Sissi came to power in a military takeover. They paint a picture of a stubbornly outmoded approach that is unsuited to the fight, and that perpetuates the mistakes of successive Egyptian leaders. For decades, Egypt has seen Sinai through a military prism, taking an aggressive approach to an alienated local population. The military has engaged in summary executions and the destruction of whole villages, while offering little to solve the region’s deep social and economic problems, including chronic unemployment, illiteracy and poor access to health care. Egyptian soldiers and conscripts are hunkered down inside heavily protected bases, venturing out in armored convoys that barrel down long, exposed roads. Those roads are filled with check posts manned by nervous soldiers, many of them conscripts. The insurgents, some with roots in Sinai’s long tradition of smuggling, skirt through the desert.
“The Egyptians have failed to acknowledge that ISIS [Islamic State in Iraq and Syria] is not just a terrorism threat,” said Andrew Miller, a former Egypt specialist at the National Security Council, now at the Project on Middle East Democracy in Washington. “Killing terrorists is not sufficient. They need to deprive ISIS of local support, which is rooted in Cairo’s historical neglect of the Sinai.” But that support has been eroded by multiple accounts of torture and extrajudicial executions by the military, as well as indiscriminate military tactics that often inflict civilian casualties and sow widespread resentment. “The military has never cared for civilian losses,” said Mohannad Sabry, author of a book on Sinai. “The excessive and reckless use of force has killed entire families. We’ve seen air strikes blow people up in their homes. We’ve seen villages razed off the face of the Earth. That tells you something about how they see Sinai society.” Over the past year, el-Sissi has welcomed a line of foreign leaders to Cairo, where he signed deals for billions of dollars in advanced military equipment: German submarines, Russian combat helicopters, a French aircraft carrier and a military satellite. United States military officials
have tried quietly to persuade him to allocate his resources, including $1.3 billion in annual US aid, to tools and techniques better suited to fighting the insurgency in Sinai, like equipment and training for intelligence gathering. But el-Sissi, they say, is not listening, and his generals prefer to buy tanks, jets and other heavy weapons for their bases around the Nile. “They understand they have got a problem in Sinai, but they have been unprepared to invest in the capabilities to deal with it,” said Steven Simon, a professor at Amherst College and a former senior director for the Middle East and North Africa on the National Security Council. One person who did have some sway over el-Sissi was Egypt’s chief of defense staff, Mahmoud Hegazy. US officials saw him as the only person in el-Sissi’s inner circle with the authority to publicly contradict him, a former US official said. They also had a personal bond: Hegazy’s daughter is married to el-Sissi’s son. But last month el-Sissi fired Hegazy, after an outcry over a devastating militant ambush on a security convoy south of Cairo that killed 16 police officers and possibly many more. The move dismayed senior State and Defense Department officials who saw Hegazy as a check on
el-Sissi in a circle of advisers that has become ever smaller and, some fear, ever more sycophantic, said the former official, who spoke anonymously to protect internal deliberations on an important ally that rarely receives public criticism well. Sinai presents a formidable arena for counterinsurgency that would challenge the most capable army: It is a vast terrain of desert and mountains, with long shorelines and a semiporous back door across the border into Gaza, which has been controlled by Hamas. The collapse of Libya in 2011 has ensured a steady flow of weapons ever since, some from the depots of deposed Libyan leader Moammar Gadhafi. In the past year, as the IS’s vision of a caliphate in Syria and Iraq has crumbled, experts have fretted about an influx of returning Egyptian jihadis, bent on bringing their fight back home. So far, US officials say, a relatively small number of fighters have returned. But the collapse of Raqqa and Mosul has precipitated a sharp shift in the IS’s tactics in Sinai, with a greater emphasis on attacks against soft targets, like Coptic Christians and Sufis, in a bid to undermine elSissi by sowing sectarian hatred in Egyptian society. New York Times News Service
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Washington’s jam-packed agenda for the year-end
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axes, spending, immigration and more top a lengthy to-do list when lawmakers return to Capitol Hill on Monday after their Thanksgiving break. President Donald J. Trump plans to meet with congressional leaders on Tuesday to try to hammer out the end-of-year agenda. For Trump and the Republicanrun Congress still reaching for their first major legislative victory, tax cuts would fit the bill. Democrats will carry leverage into year-end talks on agency budgets. Hanging over it all are congressional elections less than 12 months away. A look at December’s difficult agenda: Taxes: The House has passed a 10-year, $1.4-trillion tax cut that blends a sharp reduction in top corporate and business-tax rates with more modest relief for individuals. The Senate anticipates voting on its version this coming week. The Senate plan has larger rate cuts for individuals and a more generous per-child tax credit, but contains greater budgetary gamesmanship. Republicans can pass the measure without Democratic votes. Spending: A temporary spending measure expires on December 8. Congress needs to pass an extension to avert a partial government shutdown. There also are 12 unfinished appropriations bills that must be completed. Accomplishing that would require an adjustment of spending caps that are the remnant of a failed 2011 budget deal. Democratic votes are required to pass the measures, but bipartisan talks are behind schedule. Trump’s recent $44-billion request for hurricane aid, his third, is drawing criticism from Texans and others who say it ignores desperate needs in hurricane-hit states and Puerto Rico. Immigration: A major battle over paying for Trump’s long-promised border wall with Mexico should finally come to a head. Also, Democrats and moderate Republicans are pressing for a legislative fix to protect the legal status of immigrants who were brought to the United State illegally as children. Republicans do not want that issue caught up in the funding bill, but Democrats have other ideas. Health care for children: A popular program that provides health care to 9 million children of low-income families faces reauthorization after its funding expired at the end of September. States have been getting by on holdover money, but some states are reporting that they’ll run out this month and would have to cut off care. Bipartisan talks over how to pay for an extension will require a breakthrough soon. Odds and ends: The financially troubled flood-insurance program expires on December 8. A bill to renew it has passed the House, but the Senate measure is stalled. A program permitting warrantless electronic surveillance of foreigners by US intelligence agencies faces renewal. More revelations regarding sexual harassment on Capitol Hill are possible, and ethics investigations involving Rep. John Conyers, Democrat-Michigan, and, perhaps, Sen. Al Franken, Democrat-Minnesota, could get underway. The House plans to vote this coming week on requiring anti-harassment and anti-discrimination training for all members and their staffs. Alabama voters on December 12 will elect Republican Roy Moore or Democrat Doug Jones in a closely watched Senate race. AP
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Retailers see Black Friday a success despite decline in customer traffic
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rick-and-mortar retailers did enough things right on Black Friday to consider the event a success, even if the crowds of past years haven’t returned. Chains simplified promotions this year and took a keener eye to managing their inventory. At WalMart Stores Inc., color-coded maps helped shoppers navigate the aisles. Retailers also made headway with their e-commerce sites, aiming to chip away at Amazon.com Inc.’s dominance online. Taken together, the changes may help bolster sales and profit margins—despite a decline in customer traffic at many locations. “People think retail is a nightmare, but it’s not,” said Tracy Ferschweiler, a Wal-Mart market manager who oversees seven stores around New York and New Jersey. The weather also provided an assist, with cooler temperatures in much of the country putting shoppers in the mood for coats and sweaters. But the day wasn’t without its glitches. Macy’s Inc., the largest US department-store chain, struggled to process credit-card transactions. That led to long lines and frustrated customers. Many retailers are counting on the holidays to help fuel their turnaround plans, and Black Friday is the season’s traditional starting point. Still, the event has lost significance over the years—especially as chains spread out their promotions to attract shoppers earlier in November. In the past, Black Friday was famous for crowds bursting through doors and fighting over $99 DVD players. There’s less urgency among shoppers now, but retailers have
many advantages this year, including strong consumer confidence and low unemployment. The day has become more about the experience of shopping, rather than the actual discounts, said David Bassuk, co-head of retail consulting at AlixPartners Llp. “People want to start getting into the holiday spirit and enjoy the concept of shopping and the holidays,” he said. At a Target Corp. store in Kingston, New York, 55-year-old Donna McCluskey said she got up early to shop Black Friday deals as part of a family tradition. “We do this every year—we came here for fun,” said McCluskey, who arrived at Target with her two adult sons. “We do a lot of shopping online, but it’s a different experience shopping in stores. You can feel and touch and look at the products.”
E-commerce growth
E-commerce continues to outpace brick-and-mortar retail in sales growth, making it crucial for traditional stores to have enticing web sites and apps. Black Friday online spending was a record $5.03 billion, up 16.9 percent over last year, according to Adobe Systems Inc. Much of that shopping is now occurring on phones, with mobile devices accounting for 54 percent of visits. Adobe said it expects Cyber Monday to be the biggest online shopping day in history, with $6.6
Zainab Alhemaid (right) tries a new coconut-scented soap at a store on Black Friday (November 24) at Cherry Creek Shopping Center in Denver, Colorado. The 24-year-old is visiting Denver from Saudi Arabia and is shopping for her birthday, which was on Thanksgiving Day. AP/ Tatiana Flowers
billion in predicted sales, a 16.5-percent increase over 2016. Such optimism helped push the fortune of Jeff Bezos, founder of Amazon.com, to $100.3 billion as the online retailer’s shares jumped more than 2 percent last Friday. Physical-store traffic, meanwhile, was down 4 percent to 6 percent, Cowen and Co. analyst Oliver Chen estimates. Retailers have tried to avoid becoming showrooms for Amazon, meaning customers look at products in their stores and then buy it from the e-commerce giant. To keep shoppers from straying, Wal-Mart and others have pumped
billions into their web operations.
Sights and sounds
Macy’s overhauled its rewards program, aiming to keep consumers loyal regardless of whether they’re online or off. A customer who shells out at least $500 a year gets free shipping and 25-percent off a day of shopping. But the 159-year-old chain also is touting its traditional retail experience as a way to hook shoppers. “Customers today want to go to a store—the sights, the smells, the sounds,” CEO Jeff Gennette said in an interview last Friday.
Some retailers have more of an uphill battle. Sears Holdings Corp. saw same-store sales fall 17 percent at its flagship chain last quarter and 13 percent at its Kmart brand. At a Sears in upstate New York, a quiet store greeted 47-year-old Nadine Charles last Friday. She’s been a regular Sears customer for years, but feels like the selection has gone downhill. “I don’t find anything good anymore at Sears,” said Charles, a nurse with four children. “They don’t have good brands. Now I can buy things in Wal-Mart—they are cheaper and last longer.” Bloomberg News
Brexit spurs European banks France to tackle violence on women; Italian to trim exposure to UK assets campaigner says women still don’t speak out
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uropean banks pared their exposure to Britain in the aftermath of its vote to quit the European Union (EU), slashing their United Kingdom assets by $425 billion in the span of a year. The decline was driven by a 35-percent drop in derivatives exposures, showing European banks are preparing for the risk that the UK fails to reach an agreement on its future relationship with the bloc before its departure. Banks in the 27 other EU countries had €1.59 trillion ($1.9 trillion) in total assets tied to the UK at the end of June, about €356 billion less than a year earlier, data from the European Banking Authority (EBA) shows. Britons voted to leave on June 23, 2016. More than one third of banks questioned by the EBA are worried that Brexit could upend derivatives and other financial contracts, leading to potential losses and legal risks for banks. The EBA, which coordinates regulatory standards across the bloc, said firms need to prepare for a possible cliff edge, in which EU rules cease to apply in the UK and a new agreement isn’t in place when the United Kingdom exits in early-2019. “It is important that banks and their counterparties, as well as consumers and public authorities, consider appropriate mitigating actions and contingency plans to address these concerns,” the EBA said in the report.
‘Comprehensive solution’
Regulators on both sides of the Channel have sounded the alarm about the risks Brexit poses to derivatives and other financial contracts. The Bank of England has said a “comprehensive solution” is needed as part of the Brexit process to protect the “long-term validity” of £20 trillion ($26.7 trillion) of existing derivative contracts. European Central Bank President Mario Draghi has similarly warned that contract continuity could be imperiled. “Tens of thousands of counterparties could be affected, representing around a quarter of both UK and EU client uncleared derivative contracts,” the BOE said in September. Many banks with offices in the UK have already announced plans to shift positions to the continent after Brexit. Britain could lose as many as 75,000 jobs in banking and insurance if it leaves the EU without a trade deal, according to Sam Woods, Britain’s top banking regulator. Woods, the chief of the BOE’s Prudential Regulation Authority, has said about 10,000 UK-based jobs are probably at risk on “day one” of Brexit. Bloomberg News
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ARIS—French President Emmanuel Macron last Saturday launched an initiative to combat violence and harassment against women in France, aiming to erase a sense of shame that breeds silence among victims and changing what he said is the country’s sexist culture. In a nearly hourlong speech at the Elysee Presidential Palace, Macron noted that 123 women died in attacks against them in France last year. Holding a moment of silence for them, he declared: “It is time for shame to change camps.” In neighboring Italy, the head of the Chamber of Deputies marked International Day for the Elimination of Violence Against Women by noting with dismay that the “Weinstein case” hasn’t inspired women to speak out on workplace harassment or assault like it has in the United States and other parts of Europe. Laura Boldrini was referring to the onslaught of revelations after sexual harassment and assault allegations against Hollywood producer Harvey Weinstein were made public. “The Weinstein case lifted the lid on the shame of [sexual] abuse” in the glamorous world of US cinema, “setting off an avalanche in many other areas of society,” Boldrini said, addressing a special gathering in which all the 630 seats, usually occupied by lawmakers in Parliament’s lower house, were instead filled by guests who came to speak of their rebellion against being victims of men. Among the invited: a woman who survived being stabbed repeatedly in the back by an ex-beau; the mother of a college student who was strangled and her corpse set ablaze by her former lover
after she broke up with him; a woman whose child was slain by her estranged husband to avenge their failed marriage; a Moroccan immigrant whose abusive husband burned down their home after she found the courage to flee to safety with their children; a Nigerian who was trafficked into a prostitution ring the day she set foot in Italy. Boldrini lamented that Italy hasn’t seen a similar outpouring of accusations of workplace harassment. “In Italy, this certainly hasn’t had the same effect,” she said, adding: “I’d like to think that this has happened because there aren’t molesters, but I’m afraid that’s not the way it is.” She explained the tendency toward silence, including about rape, saying that women “know that in this country there persists a strong prejudice against them” in terms of their credibility. In France Macron’s plan would encourage women to take action, strengthen laws against offenders and educating citizens on the issue—starting from nursery school. He noted violence takes on other forms, notably in the workplace, a result of inequality and a false sense of men’s superiority. “What should be sanctuaries today become hunting grounds simply because [men] can use...age, authority, their post, or simply force,” the French president said. But Macron cautioned against France becoming a society where every interaction between a man and a woman can come under suspicion. “We are not a Puritan society,” he said. Among proposed measures, Macron said legal complaints will be rushed
through the system, and the statute of limitations for suspected sexual crimes against minors would be moved to 30 years from 20 currently as part of a bill to be presented in 2018. Macron also wants to rectify “intolerable ambiguities” in the penal code surrounding the legal age of consent. Outrage followed a ruling in an assault case that an 11-year-old was of the age of consent. He suggested the age of 15—the legal age of sexual adulthood in France, and the age at which Macron met his future wife, Brigitte, his school’s drama teacher. To encourage more women to speak out, Macron said that, from the start of next year, an online alarm system would be set up for instant contact with police. Nursery-school teachers will be trained to address “non-negotiable” equality between the sexes. Macron said violence against women is most often committed where women “should feel protected”—be it at home, in the street or in the office—and the “deafening silence” must end. Several of those inspiring other women in Italy to refuse to accept violence at the hands of male companions or relatives, carry their scars of being attacked themselves, like Lucia Annibali, a lawyer whose face was devoured by acid tossed by two attackers hired by her ex-boyfriend, and who now advises the Italian government on legislature measures, such as anti-stalking laws. This rebellion by women marks a stunning turnaround in Italy, where a generation ago, the Italian penal code prescribed lenient prison sentences for men who killed women out of jealousy or to preserve “family honor.” AP
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Monday, November 27, 2017
www.businessmirror.com.ph • Editor: Lyn Resurreccion
Reviving a river for ecotourism
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Protesters at the 23rd Conference of the Parties in Bonn, Germany, demand the complete phaseout of coal, a major contributor to carbon emissions. Stella Paul/IPS
At climate summit, 2 global energy alliances emerge
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ONN, Germany—As the summit of governments, known as 23rd Conference of the Parties (COP 23) reached its conclusion in Bonn, Germany, last weekend, two clear alliances have emerged in the global energy landscape.
One of them, the International Solar Alliance (Isa), was launched in Paris and is all set to become a legal entity. The other, an alliance to phase out coal, was announced on November 16 in one of the biggest developments at COP 23. Jointly launched by Britain and Canada—both developed countries—the alliance already has 20 members, including Italy, France, Mexico, Norway, El Salvador and several US states. The International Solar Alliance, on the other hand, is led by India—an emerging economy. Forty-four countries have already joined this alliance, of which 16 have also ratified it. As a result, the alliance will come into force on December 6.
New emissions data, new alliances
The launch of the Global A lliance to Power Past Coal comes at a time when global carbon emissions are rising. Earlier in the week, the University of East Anglia and Global Carbon Project global emissions report showed a significant rise in global carbon emissions in 2017. T he r ise was obser ved after three years during which emissions figures were static. The biggest increase in carbon emissions occurred in China and India. According to the report, Global carbon-dioxide (CO 2) emissions from all human activities are set to reach 41 billion tons (41 gigatonnes [Gt] CO 2) by the end of 2017. Meanwhile emissions from
fossil fuels are set to reach 37 Gt of CO2—a record high. China’s emissions are projected to grow by 3.5 percent, while India’s emissions are projected to grow by 2 percent. Launching the new alliance to phase out coal, Catherine McKenna, Canada’s Minister of Environment and Climate Change, said, “Phasing out coal power is good news for the climate, for our health and for our kids. Coal is literally choking our cities with close to a million dying every year from coal pollution. I am thrilled to see so much global momentum for the transition to clean energy—and this is only the beginning.” The members of the new alliance, which aims to grow to 50 by the next COP in 2018, would not only phase out coal in their own countries by 2030 but also stop investing in coal-fired electricity both within and outside of their countries. In sharp contrast, the members of the other alliance—the Isa—are reluctant to make any commitment to end coal energy before 2030. India, the leader of the alliance and a major coal producer, argues that coal is needed to end poverty and provide its poor citizens access to electricity. The country plans to produce 1.5 billion tons of coal
by 2020—double the amount it produces now. “From the Indian perspective, let me make it very clear: There are development imperatives, which as a country we need to fulfill. If you look at the total emissions, our contribution is miniscule. The point is, while this factor is spoken of, what is not spoken [about] is India’s extreme effort at trying to get energy much better,” said India’s environment secretary in a definite statement to the press. “Today we are talking of producing 175 gigawatt [GW] of energy from renewable sources by 2022. Of that, 120 GW will be from solar and the rest from biomass and others. Coal will continue to be used for some time, but we are continuously looking at alternative sources of energy.” Anand Kumar, secretar y at Ind ia’s Ministr y of New and Renewable Energ y, sa id t hat Isa’s core goal is to bring 121 countries on a single platform to explore ways to utilize and promote solar energ y. Besides production, the alliance wou ld a lso focus on ma king solar energ y cheaper and more accessible by gar ner ing i n v e s t m e nt , b r i n g i n g d o w n the cost of solar cel ls, solar modules and solar storage. The other prominent members of the alliance—China, Australia and New Zealand—still heavily invest in coal, even as they’re trying to produce more energy from renewable sources. At the COP, soon after the emissions report was presented by the University of East Anglia, Brazil, India, South Africa and China— known as the Basic countries—released a joint statement reiterating their right to grow and asking the world to look at their emissions from the perspective of equity.
We want no coal. We want no dirty power.”—Activists
No coal vs no unabated coal
However, even as the new Global Alliance to Power Past Coal was announced, some of the statements raised doubts over whether the alliance only wanted to end unabated coal or coal, in general. Unabated coal refers to plants that are not fitted with carbon capture and storage technology, which captures the harmful emissions that cause global warming. Accord ing to Claire Per r y, minister for Climate Change and Industry in the United Kingdom and one of the alliance’s leaders, unabated coal was “the dirtiest,” and her country would try to end using it. “The UK is committed to completely phasing out unabated coal-fire power generation no later than 2015 and we hope to inspire others to follow suit.” Perr y did not elaborate if the UK or the new alliance would still support use of abated or partially abated coal. India, which otherwise refuses to end its use of coal, is also in favor of using partially abated or so-called clean coal C.K. Mishra says, “We are also looking at making use of better-quality coals.”
Sitting on the fence: Germany’s nonpartisan status
Interestingly, Ger many— which provided the venue for COP 23 —has not announced its intention to join either of these alliances. This has been severely criticized by anti-coal activists who have accused Germany of having a double standard by organizing the climate conference while not taking a strong step on either ending coal or shifting to renewable energy. On November 15, as Chancellor Angela Merkel reached the COP to address the parties, the activists laid out a red banner that read “keep it in the ground” for the chancellor to walk on. “We want no coal. We want no dirty power,” said one of the activists, who was not allowed inside the conference. IPS
Laguna school wins intl award for education, sustainable devt
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n elementary school that is a pilot site of the School and Home Gardens program led by the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) won an international award for its chievements in education and sustainable development (ESD). Labuin Elementary School in Pila, Laguna, won the third prize in the 2017 Seameo -Japan ESD Award conferred by the Southeast Asian Ministers of Education Organization (Seameo)-Japan Ministry of Education, Culture, Science and Technology in cooperation with the United Nations Educational, Scientific and Cultural Organization Asia-Pacific Regional Bureau of Education. With the theme “Improving Health and Nutrition,” the award recognizes the efforts
of schools in Southeast Asia to implement programs “to improve health and nutrition of students that also transform schools into a healthy learning environment.” Implemented together with the Department of Education-Laguna Division and the University of the Philippines Los Baños, the Searca-led School and Home Gardens program innovated on the old concept of school gardens to focus on three interrelated areas of inter vention— learning by doing food-production activities (education), improved food diversity and availability (nutrition) and savings on food costs and added income (economics). Searca sees that applying this twist to an old concept as one way to heighten appreciation for agriculture among the youth and attract new blood to the study of
agriculture and create a new generation of professionals in this field. Searca Director Gil C. Saguiguit Jr. said that of Searca’s six pilot schools, Labuin Elementary School was earlier cited as the “most successful implementation of the School and Home Gardens program, which contributed significantly to the diversity and availability of food in the school and local community, and enhanced the knowledge and skills of students, their parents and teachers on sustainable food production and nutrition.” He added that the school was also recognized as the best in community extension and forging partnerships with local government units. Among the pilot schools, it made the most headway in terms of the three areas of intervention and
established important linkages at the local level to help sustain the program gains. These feats have merited for the school the 2017 Seameo-Japan ESD Award, which promotes and shares “initiatives and good practices that support sustainable development through the improvement of health and nutrition in school plans, teaching and learning practices, and daily routines of students.” The first and second prizes went to an elementary school in Malaysia and Myanmar, respectively. The awards will be presented to the three schools at the opening ceremony of the 40th High Officials Meeting of Seameo in Bangkok, Thailand, on November 29. Alma S.M. Tomacruz, principal of Labuin Elementary School, will accept the award on behalf of the school.
hat was once a silted river has been given a new lease on life and has become a showcase of how ecotourism can help revive and conserve the environment, and create livelihood opportunities to communities. This is the story of Palina Greenbelt Ecopark, one of Roxas City’s sought-after ecotourism sites, which offers a scenic river tour, fishing and onboard relaxation. Designated by the city government as a mangrove reservation zone in its coastal zoning plan in 2002, the ecopark started in 2006 with the formation of the Palina River Development Association (Parida) composed initially of 31 members. The involvement of fisherfolks came out of the need to rehabilitate Palina River, which traverses barangays Cagay and Talon. From 1999 to 2003, fishpens and other illegal structures proliferated. It was aggravated by siltation from upland erosion due to cutting of trees for charcoal production. This resulted in the disruption of the river’s current which contributed to its pollution. D emolition of struc tures star ted in 2003. Those displaced were given alternative livelihood in 2007. Supervised by the city’s Coastal Resource Management Office, the project received a P250,000 initial fund from the city government under Mayor Angel Alan Celino. The local government has, since then, infused additional capital upon seeing the project’s progress. The project has received support from the Department of Tourism and was given a Pearl Award by the Association of Tourism Officers in the Philippines several times. The ecopark’s first phase involved the planting of mangroves that earned the participating fisherfolk about P187,000
for the surviving 45,0000 mangrove trees they planted. The second phase consisted of the building of facilities, including two function halls, two floating cabanas, two paddle boats and a motorized boat. Palina has also become an educational facility for community participation in rehabilitating the river and the mangrove ecosystems. Students from all over Panay have visited the area to study the river ecosystem and observe the fisherfolk’s way of life and interact with them. Visitors from various local governments have done benchmarking tours to learn from the project’s best practices that could be replicated in their localities. On a typical weekend, it hosts hundreds of guests from family and group events, doing a river-cruise picnic composed mostly of seafood in which Roxas is known for. For a complete relaxing experience, hilot massage is offered in the cruise. Guests can buy live lapu-lapu from the cages, which they can cook themselves or have them cooked by the fisherfolk already trained in food preparation. Palina River and its adjacent areas are economic zones with fish cages containing some 3,000 groupers. The sunken galleon ship and Japanese garrison near the river’s mouth can be declared a historic site. There is also a good beach for bathing near the reservation zone. The river bank, lined with mangroves, is about 1 km in length with eight species of mangroves some of which are century old. Among the identified wildlife in the area are 34 bird, 13 fish and 64 shellfish species. The ecopark is the city’s fifth ecotourism site after the Culajao Mangrove Ecopark, Cadimahan River, Olotayan Island and the Vermi Demosite.
How green is your office?
M
ore and more office buildings are being constructed across the Philippines these days as the proper ty market continues to boom. However, many are unaware that buildings are significant co nt r i b u to r s to c l i m ate c h a n g e, accounting for 36 percent of the countr y’s energy consumption. It is good news that more business owners are already leaning toward sustainable development. The Philippine Green Building Council noted the growing demand for green architecture. More than 30 buildings are already certified by the Leadership in Energy and Environmental Design (Leed) in the country. The Leed is an assessment tool devised by the United States Green Building Council to accelerate the development and implementation of green-building practices. Thus, offices have become safer and more conducive for working. The responsibility does not fall on building owners or facility managers alone. It is also up to businesses and individuals to be actively responsible drivers of change, to help save the planet. Here are six tips to consider in making your work space greener: n Digitize
The phrase “think before you print” has become a cliché but the reality is that, the greenest paper is no paper at all. Keep files on computers instead of in filing cabinets or drawers, review documents on screen, and if you’re not already doing so, choose e-mail over sending bits of paper in the post. n Be conscious of energy
The Philippines has one of the most expensive electricity rates in Asia. That is why keeping an attentive eye in our energy consumption in the working space is crucial. In commercial buildings, airconditioning, lighting and work machines are some of the largest and costliest energy consumers. So, remember to go easy on the AC. Likewise, don’t forget to switch the lights off when leaving a room. Optimize your computer settings for energy efficiency, and make sure to shut down and switch off when you’re finished for the day. Printers, scanners
and other machines used every now and then can be unplugged until they’re needed. n Use green materials
If you must use paper, use recycled paper. Even pens and pencils can be made of recycled materials, and refillable pens and markers are better than disposable alternatives. Buy in bulk so that shipping and packaging waste is reduced, and reuse the shipping boxes. Recycling printer cartridges are often free, and recycled replacements are usually cheaper, too. n Choose LED Lighting
Lighting accounts for 19 percent of global electricity production. Thus, the switch to LED lighting is a simple choice we can make that can have a massive impact on the environment. Combining high-efficiency lighting with connectivity and smart sensors can reduce carbon-dioxide emissions and deliver energy savings of up to 80 percent. Philips Lighting continues to invest heavily in the development of green technologies, leading the march toward the global switch in LED. Changing a conventional light bulb to an LED option is likely to result in improved eye comfort and can help one save on electricity bills by up to 60 percent right away. With this, we aim to create better environments that are not only conducive for living and playing, but also for working.
n Switch to renewable energy
Green power sources, such as solar and wind energy, are now commonplace and affordable choices with options from rooftop installations to commercial wind farms. Everyone can choose to use renewable-energy sources. Most suppliers now offer a green plan, but there are many schemes worldwide that offer renewable sources of energy. At Philips Lighting globally, 78 percent of its electricity now comes from renewable sources, and it is aiming for 100 percent by 2020. n Get everyone to go green
Making the personal choice to go green is a great first step, but by sharing these tips with your colleagues and building on them will make a much greater change far more quickly.
Biodiversity Monday BusinessMirror
Asean Champions of Biodiversity Media Category 2014
Monday, November 27, 2017 A9
Editor: Lyn Resurreccion • www.businessmirror.com.ph
Government, civil-society groups come together
Protecting Tañon Strait Story & photos by Jonathan L. Mayuga @jonlmayuga
O
ne of the country’s major municipal fishing grounds and home to amazing creatures of the sea in the Visayas, the Tañon Strait Protected Seascape (TSPS), is getting the much-needed boost from various stakeholders. Stakeholders, known as “Protectors of Tañon Strait,” link arms to protect the strait. They are Lt. Junior Grade Donna Liza Camacho (from left), station commander, Coast Guard Station, Dumaguete City; TSPS Protected Area Supt. Am Prospero Lendio; Negros Oriental Fisheries Office Officer in Charge Nathaniel Lucero; Amlan Mayor Gino de la Cruz; Acting Negros Oriental Gov. Edward Mark Macias; Negros Oriental Police Senior Supt. Edwin Portento; Navy Capt. Richard Cordero; Rare Philippine Senior Manager Rizalier Amolo; Oceana Philippines Vice President Gloria Estenzo-Ramos; and Oceana Philippines Campaign Manager Daniel M. Ocampo.
because of the integrated protected-area fund (Ipaf) retention law, wherein 75 percent of the revenues generated by protected areas are retained. “We are the biggest contributor to Ipaf. This year alone, we are contributing around P11 million. Twenty-five percent of that goes to Ipaf and the 75 percent is retained to us. We are using that fund for our various programs,” he said. There are a good number of business establishments operating within the TSPS. During earlier interviews, Lendio said they are conducting a tax mapping to make sure that the establishments are paying the correct taxes in the form of business permits.
‘Increased fish catch’
According to Lendio, small fishermen within the TSPS are very cooperative and are helping protect the TSPS. “In fact, they [fishermen] are very thankful because they are now experiencing increased fish catch,” he said. Before the campaign, the fishermen have complained of the dwindling fish catch because of commercial fishing within the TSPS. Now, they are helping monitor the activities of commercial fishing vessels within the area.
‘Dream come true’
Macias (right) discusses a point during a news conference on the send-off of patrol boats from the Philippine Navy, Coast Guard and the Bureau of Fisheries and Aquatic Resources to boost protection of Tañon Strait against illegal-fishing activities. With him are (from left) Lendio, Lucro and de la Cruz.
Collectively known as “Protectors of Tañon Strait”—the alliance of national government agencies, local governments, law-enforcement agencies, non-governmental organizations and communitybased organizations—linked arms once more literally and figuratively speaking to ensure the sustainable management of the TSPS and ensure the strict enforcement of various environmental laws, including the National Integrated Protected Areas System (Nipas) Act and the Philippine Fisheries Code. Next year the Department of Environment and Natural Resources (DENR), through the Biodiversity Management Bureau (BMB) and the management of TSPS, will embark on various projects to boost efforts to conserve coastal and marine ecosystem and enhance the income and livelihood of small fishermen in the area.
Linking arms
On November 15 groups composing the Protectors of Tañon Strait linked arms during the ceremonial “send-off ” of three patrol vessels held at Port of Dumaguete City. The patrol vessels that were deployed to both ends of Tañon Strait were from the Philippine Navy, Philippine Coast Guard (PCG) and the Department of AgricultureBureau of Fisheries and Aquatic Resources (DA-BFAR) to prevent commercial fishing vessels from fishing within the TSPS. During the event, TSPS Protected Area Superintendent Am Prospero Lendio, Negros Oriental Officer In Charge Nathaniel Lucero, Amlan Municipal Mayor Gino de la Cruz, Negros Oriental Police Director Senior Supt. Edwin Portento, Navy Capt. Richard Cordero, Dumaguete City Coast Guard Station Commander Lt. Junior Grade Donna Liza Camacho, Rare Philippines Marine Governance Senior Manager Rizalier Amolo and Oceana Philippines Vice President Gloria Estenzo-Ramos have committed
to work hand in hand to enforce the law against illegal fishing and other environmental crimes within the TSPS.
‘Doing our job’
Speaking in Filipino, Daniel Ocampo, campaign manager of Oceana Philippines, said the task of protecting Tañon is gargantuan. It requires the collaboration of various stakeholders as part of their mandate and sworn duties, responsibilities and advocacies. “ Today is the start of the closed fishing season in the Visayan Sea. As you all know, when a closed fishing season is declared in one area, the tendency is that commercial fishing vessels go to another area to catch fish. Commercial fishing is banned in Tañon Strait. Our presence here shows that we are doing our job,” Ocampo said. “We all know how important it is to conserve our resources. We have a lot of good laws, but most of the time, we cannot implement them. Talk about the forest, our ocean, our natural resources. You do not need a [new] law every day. Most of the laws are already there. All you need is to enforce the law,” Acting Negros Oriental Gov. Edward Mark Macias said. Macias aptly described the gathering as convergence, and expressed elation that the plan is to focus on enforcement. “Hopefully, we are starting [the enforcement of laws]. Rest assured that the local government, the prov incial government, will support this endeavor. At the end of the day, we will benefit from this…. If there is something the provincial government can do to help, please let me know,” he added.
Municipal fishing ground
Lendio told the BusinessMirror in an interview that he continues to coordinate with the commercial fishing companies to remind them that the Tañon Strait is
The patrol boats to be deployed to boost the protection of Tañon Strait against illegal-fishing activities. They will be deployed by the Philippine Navy, Philippine Coast Guard and the Bureau of Fisheries and Aquatic Resources.
“off-limits” to commercial fishing. He, however, admitted that some commercial fishing vessels continue to encroach in the territory to fish. “What I am doing now is I continue to write to the commercial fishing companies so they would cease from fishing within Tañon,” he said. The rampant illegal activities that threaten Tañon Strait, he added, require the collaboration of various stakeholders. Recently, authorities filed a landmark case against 13 individuals caught onboard a commercial fishing vessel within the TSPS. This is the first time that such case was filed in violation of the Nipas Act. A protected area—whether a marine-protected area (MPA) or a protected seascape—is off limits to commercial fishing activities.
Vessel monitoring
Lendio said they have been coordinating with commercial fishing companies that dock within the TSPS to install vessel-monitoring devices—which could either be a satellite-based vessel-monitoring system or a radio frequency-based vessel-monitoring mechanism that will provide both the operators and concerned authorities real-time data to pinpoint the exact location of the vessel within a 50-kilometer range. A Protected A rea Management Board (PAMB) resolution was approved during the third general assembly of the TSPS PA MB in April in Cebu Cit y, requiring all vessels transiting
and docking within the area to have the prescr ibed track ing device for monitoring purposes. This will also allow the operators, as well as concerned authorities, to monitor the behavior of the commercial fishing vessel while in a fishing expedition. “We are currently working to pilot-test the vessel monitoring. Hopefully, in due time, we will be able to successfully install a tracking device in all vessels docking in Tañon,” he said.
Rehabilitation
The DENR-BMB, through the TSPS, has been conducting various projects to restore the st ra it ’s abu nd a nce a nd pro ductivity. Among the projects, which will start next year, Lendio said, is the simultaneous mangrove-forest rehabilitation in 10 different areas. “We have allocated a budget of P200,000 per area and we are planning to cover a total of 20 hectares,” he added. He said artificial reefs, called “payao condominiums,” would also be installed in 10 areas, with the same amount for each project. Payao, a fish-aggregating device used in the area, is sometimes made of concrete modules deployed in an area to function as coral reefs for breeding, feeding ground and playground for young fish. All these projects, he said, aims to boost the recovery of damaged coastal and marine ecosystems within the TSPS. More important, Lendio added that through the DENR-BMB, 12
biodiversity-friendly enterprise projects will be launched in various coastal communities, with each project having a budget allocation of P250,000. “We are using broken corals which we will put in the structure. These structures will look natural in due time,” he said. Lendio added he is coordinating with DENR-BMB Director Theresa Mundita S. Lim for the release of a P5.2-million budget, part of which will be used to acquire patrol vessels that will be used to boost the protection of the TSPS against illegal fishing, including crimes against marine wildlife. “We have requested over P5 million for patrol boats with the DBM [Department of Budget and Management]. We are hoping to have it followed up to be downloaded [released] to the DENR regional [offices] so we can start bidding. So that by next year we will have two more patrol boats,” he said. Lendio added that he is eyeing a patrol boat that could accommodate 10 to 15 passengers, w ith 150 horsepower and 25 horsepower backup. “With this [specification], we can go after fast boats. We will guard both ends of Tañon. If they [commercial fishing vessels] decide to illegally enter the Tañon Strait, they will have no way out. We will catch them,” he said.
Self-sustaining
According to Lendio, the TSPS is a step closer to becoming a self-sustaining protected area
Ramos said the stakeholders of Tañon coming together to protect TSPS is a dream becoming a reality. “To my mind, this is one of the most memorable [events] since we have started the campaign in Tañon Strait. This is a dream come true. CSOs [civil-society organizations], national government agencies and local government units [LGUs] are coming together to protect the ecosystem,” she said. Oceana, which works at nat iona l f isher y pol ic ies level, works with the group R are Philippines, which works at the community level. R are Philippines has ongoing programs with various coastal communities and 22 of the 42 LGUs within the TSPS. “Not all LGUs can have patrol vessels. But it is now a requirement for all commercial fishing operators or owners to have vesselmonitoring systems. We are also helping local governments in localizing the features of RA [Republic Act] 10654 [Philippine Fisheries Code] to be integrated into their local laws,” she added.
Requiring urgent action
According to Ramos, protecting the country’s coastal marine ecosystem has reached the level that requires urgent action by various stakeholders. “R are [Philippines] is very involved also in the crafting of ordinances requiring vessel monitoring for all vessels. This is very urgent. A week ago, our fisheries [stock] was only 10 percent compared to 1990s level. Our fisheries industry is collapsing. This is a very urgent [situation], we need to work together,” Ramos said. On a positive note, Ramos said the TSPS now has is first special prosecutor assigned to prosecute cases related to protected area management as mandated by the Nipas Act. The 25-year-old law requires the designation of special prosecutors who will handle environmental cases. “Now it is a reality. The law has become real and alive with the designation of the special prosecutor. This is the first for the entire country for a protected area,” she said.
A10 Monday, November 27, 2017 • Editor: Angel R. Calso
Opinion BusinessMirror
www.businessmirror.com.ph
editorial
Canadian garbage: Enough is enough
W
hile the matter is not on the top of the list of national concerns, it is on the list of the “Top 10 Ways to Make the Philippines Look Like a Fool.” That is the shipping of Canadian garbage to the Philippines. This situation first arose when it was discovered that a total of 50 container vans arrived in six batches at the Manila International Container Terminal from June to August 2013. Supposedly containing recyclable plastic scrap materials, these were shipped by Chronic Plastics Inc., an export company based in Ontario, Canada. The declared value for 19 of the containers was P3.9 million. Why any company would pay between $3,000 and $6,000 to ship even one container of garbage 5,936 nautical miles away seems a mystery. Actually, it is not. Some people on both sides of the Pacific Ocean are making money off this deal. From December 2013 to January 2014, at least 50 more containers of garbage were discovered entering the Philippines illegally. Then again, in January, another 18 containers were opened containing plastic bottles, plastic bags, newspapers, household garbage and used adult diapers. We wonder what it is with the Canadians that they cannot figure out how to properly dispose of their newspapers and dirty diapers without sending them halfway around the world. According to news reports, the Department of Foreign Affairs complained to the Canadian Embassy, and its Ambassador called for a meeting between representatives of the two countries. The conclusion is that the Canadian government “has no domestic or international authority to compel the shipper to return the shipment to Canada.” The Ambassador then said that, while Canadian law imposes penalties on violations of import and export laws, it does not provide a mechanism to compel the return of illegal shipments to the port of origin. Except we cannot find any record of the Canadian government taking any action against the shippers. Canadian Prime Minister Justin Trudeau came to the Philippines in November 2015 and was treated as “The Foreign Leader Most Filipinas Would Like to Marry.” But as far as his illegal garbage goes, he is “The Foreign Leader Who Cares The Least.” Coming back to the Philippines this year, Trudeau is asked about the 1,300 tons of waste materials illegally shipped from Canada to the Philippines. He responded that it is now theoretically possible to get it back, but the issue is who will pay for it. In November 2015 Trudeau said: “Well, I think, going forward, we need to ensure that if a situation like this were to arise once again that the Canadian government has more power to actually demand action from the companies responsible.” Well, here is our suggestion Mister Prime Minister. Enforce your own laws on illegal exports. If found guilty of that violation, penalize and fine the Canadian company Chronic Plastics Inc. an amount equal to the cost of returning your garbage back to your country, and you pay for the shipping costs. Problem solved. And make sure it does not happen again. While in Manila, Trudeau expressed great concern about human rights in the Philippines, as well as in other Southeast Asian countries, including Myanmar. That may be completely justified. While there is no moral equivalent between what Trudeau was speaking of, nonetheless, some of the Canadian garbage was potentially so toxic, the Bureau of Customs refused to open them, fearing that the waste could further contaminate the surroundings.
A personal invitation to my first solo exhibit Atty. Jose Ferdinand M. Rojas II
RISING SUN
N
ot a lot of people know that I have been an active member of The Saturday Group of Artists in the past couple of years. I’ve been spending some time working on art pieces and have—quite fortunately and with deep gratitude—been able to exhibit some of my works with notable names in the art scene, such as Lydia Velasco, Hermes Alegre, Buds Convocar, Buddy Ching, Roel Obemio, Cid Reyes and many others. On Saturday I am humbly presenting to the public my first ever solo exhibit at The Saturday Group Gallery at the 4/L, Shangri-La Mall, East Wing, Edsa corner Shaw Boulevard, Mandaluyong City. Titled Strong Material and curated by Ricky Francisco, the exhibit opens at 6 p.m. on December 2 and will run until December 8. But I would love to see you, my dear readers, on the
opening night. It will be my pleasure to meet you and share this important moment with you. To give you an idea of the painting technique that I used and the inspiration from which the works evolved, allow me to quote below a couple of paragraphs from the press release written by Cid Reyes: “As the title of the show connotes, Rojas pursues a strain of
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legally speaking
S
exual harassment is not about sex, it is about power. The harasser or predator is often in a position of power or authority over the victim, due to differences in age, or social, political, educational or employment relationship. The legal definition of sexual harassment varies by jurisdiction, and the legal and social understanding of sexual harassment varies by culture. The recent string of sexual misconduct allegations that have rocked Hollywood, the media and Capitol Hill, have spurred greater awareness beyond the high-profile predators. Weeks after the first stories broke alleging that Hollywood producer Henry Weinstein engaged in decades-long pattern of sexual harassment (he denies it), the list of men accused of similar acts keeps getting longer (www.cnn.comPeggyDrexler: “Are Men Really Clueless About Sexual Harassment?”) Why do men generally appear to be clueless about sexual harassment? President Duterte himself was under fire after wolf whistling at a reporter in a Press Conference held in May 2016 and defending himself days later saying that it was “not a sexual thing” (Rappler IQ published June 24, 2016). The concept of sexual harassment is clear under Philippine Law. In the Philippines, sexual harassment is defined by Republic Act (RA) 7877 or the “Anti-Sexual Harassment Act
of 1995.” Section 3 thereof provides: “SEC. 3. Work, Education or Training-related Sexual Harassment Defined.—Work, education or trainingrelated sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainer or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said Act. a) In a work-related or employment environment, sexual harassment is committed when: 1. The sexual favor is made as a condition in the hiring or in the employment, reemployment or continued employment of said individual, or in granting said individual favorable compensation, terms, conditions, promotions or privileges, or if
abstraction that places deliberate emphasis on the integrity of his material, in the tradition of the French informel and matier or matter painting, initiated by Jean Dubuffet, Jean Fautrier and Georges Mathieu. Diverging from abstraction’s dependence on pure automatism and gestural brush marks, Rojas opted for the exploration of texture through the use of heavy impastos, applied in vigorous layers to achieve a tactile quality. “The result is an expressive visual statement with meanings that have been coaxed out of the rich and rough terrain of primal matter. Each work is reflective of the artist’s state of mind and emotion, awakened in him by personal memories.” The very act of painting brings me peace and helps me remember details and memories from my past, moments so inspiring that I am moved to capture these on canvas. Copper Gypsy, for example, carries the autumn colors of the trees in Amherst, Massachusetts, where I studied many years ago. Crown
the refusal to grant the sexual favor results in limiting, segregating or classifying the employee, which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee: xxx (b) In an education or training environment, sexual harassment is committed: (1) Against one who is under the care, custody or supervision of the offender; (2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender; and (3) When the sexual favor is made a condition to the giving of a passing grade, the granting of honors and scholarship or the payment of a stipend, allowance or other benefits, privileges or considerations; xxx Resolution 956161 of the Civil Service Commission (dated October 10, 1995) enumerates in Rule V, Section 5 thereof the forms of sexual harassment: a) Physical. i. Physical contact or malicious touching; ii. Overt sexual advances; iii. Unwelcome, improper or any unnecessary gesture of a sexual nature; or iv. Any other suggestive expression or lewd insinuation. b) Verbal, such as request or demands for sexual favors or lurid remarks. c) Use of objects, pictures, letters or written notes with bold, persuasive sexual underpinnings and which create a hostile, offensive or intimidating work or training environment that is annoying or
Jewel is inspired by the golden hues of Saint Petersburg. Chantilly Dancer is a remembrance of a purebreed racehorse. The title of my exhibit itself, Strong Material, is also the name of a champion racehorse. Horses and horse racing, as a matter of fact, are two of my other passions. These things, like art, awaken in me a great sense of admiration and positive, joyful feelings. Painting allows me to focus on (the) joy—both the artist and the state of mind/being—and gives me an opportunity to share both this happiness, and myself, with my audience. I hope you can make it to the opening night of Strong Material. For inquiries, please contact 09052217830 or 0917-5594462. nnn
Francis Nacion Jr. will also be holding an art exhibit, titled Imaginary World, at the Upper Ground Floor, Mountain Wing Bridgeway, SM Seaside City Cebu. It will open on November 28 and will run until December 3. Please come and see 25 of his original works on exhibit.
disgusting to the victim. Criminal, civil and administrative sanctions are provided for under the law. These include imprisonment of one month to six months and/or a fine of P10,000 to P20,000 at the discretion of the Court. This is without prejudice to the victim’s filing of a separate and independent action for damages and other affirmative relief (RA 7877, Section 6 to 7) Administrative liabilities under Civil Service regulations include reprimand or fine or suspension, transfer or demotion in rank and salary and suspension or dismissal depending on the gravity of the offense (Rule X, Section 21-23). It is the duty of the Employer or Head of Office in a Work-related, Education or Training Environment to create a Committee on Decorum and Investigation of cases on sexual harassment. Failure to do so would make such Employer or Head solidarily liable for damages arising from the acts of sexual harassment. The victim and perpetrator can be any gender, and the perpetrator does not have to be of the opposite sex. However, a 2016 study conducted by the Social Weather Station found that women are most vulnerable to sexual harassment. In Quezon City, Metro Manila’s biggest city with a population of over 3 million, 3 in 5 women were sexually harassed at least once in their lifetime, according to the report. In barangays Payatas and Bagong Silangan, 88 percent of respondents ages 18 to 24 experienced street harassment at least once. Across all ages 12 to 55 and above, wolf whistling and See “Kapunan,” A11
www.businessmirror.com.ph
Opinion
The entrants
My 100th: ‘Right(s) or faux right(s)?’
BusinessMirror
By Alberto Agra
Joel L. Tan-Torres
PPP Lead
DEBIT CREDIT
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N my last column a few weeks ago, I wrote about the “aspirants”, dealing on the over 14,000 examinees who trooped to the various testing venues throughout the Philippines to take the professional licensure examination for Certified Public Accountants (CPA). This time, I write about the outcome of that exercise. After four weekends of solving accounting, auditing, taxation and other related subjects, the verdict is in. There were 4,511 of the 14,816 examinees who passed the CPA Board Examinations. As in the past years, only a select few managed to pass the grade. For this examination, only 30 percent of the examinees passed. The Board of Accountancy (BOA) has been administering the CPA Board Examinations since 1923 and, since then, after 94 years, over 183,000 have become CPAs.
Starting today, most of these successful individuals will be taking their oath as professional CPAs in appropriate ceremonies at the Philippine International Convention Center. This event heralds their entry to the hallowed ranks of the accountancy profession. Thereafter, similar oath-taking events will be held in 10 other cities throughout the county. These entrants to the accountancy profession will be the toast in all these events. After their oath, the entrants will then be joining the community of accounting professionals at a time when so much disruption, innovation and developments are occurring. These are exciting as well as trying times as the accountancy ecosystem focuses on adapting to the requirements of the digital economy and globalization. Increasing levels of high-impact regulatory measures are being put in place, which will require accountants to be in the forefront of knowing what are these and complying with all of these requirements set by the various government regulators. These entrants should pursue a lifelong professional development by continuously learning and keeping updated on the many changes in their profession and community. Of course, the new CPAs should ever be conscious of and compliant with the high exacting demand to maintain the highest level of governance, integrity and ethics in their daily routine.
To all of the new fellow CPAs, I know that all of you are feeling exhilarated on your recent achievement. You are raring to prove your worth and to conquer the accountancy world. Continue to be driven and motivated. In addition to doing well in your choice of career, actively participate in the many activities of your profession in line with the Expanding Horizons initiatives of the BOA. Follow the many accountancy developments by occasionally visiting the BOA Facebook page and web site (http://boa.com and www.facebook.com/professional regulatory board of accountancy). Participate in the “Let your voice be heard” project by responding to the various online surveys posted by BOA. Finally, always be mindful of what you must do to be competent and ethical individuals of the accountancy profession and responsible citizens of the world. Congratulations, and welcome to the ranks of the professional accountants. Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is a partner of Reyes Tacandong & Co., CPAs. He was the former Commissioner of the Bureau of Internal Revenue from 2009 to 2010. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.
Kapunan. . .
continued from A10
catcalling are the most experienced cases. Quezon City is the first city in Metro Manila to impose penalties on street harassment. In the Philippines, 58 percent of incidents of sexual harassment happen on the streets, major roads and eskinitas (alleys). Physical forms of sexual harassment occur mostly in public transport. (https://www.rappler.com/ newsbreak/iq/135240-sexual-harassment-philippines) There is some recent discussion of whether recent trends toward more revealing clothing and permissive habits have created a more sexualized general environment, in which some forms of communication are unfairly labeled harassment but are simply a reaction to a greater sexualization in everyday environments. With the advent of the Internet, social interactions, including sexual harassment, increasingly occur online, for example, in video games. I strongly support a zerotolerance policy for sexual harassment and a zero-tolerance standard of “Must report-Must investigateMust punish.” Sometimes, the perpetrator may be completely unaware that his or her behavior is offensive or constitutes sexual harassment or may be completely unaware that his or her actions may be unlawful. The best defense to such offensive behavior is to put a stop to it by saying “No!” And “No” should mean “No!”
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his has reference to the BusinessMirror article of Ms. Cai Ordinario, dated October 26, 2017, and entitled “PHL keen on infrastructure bonds to reduce ODA reliance.” The view raised by former Socioeconomic Planning Secretary Romulo L. Neri of using the country’s foreign-exchange reserves as an alternative source of funding outside of concessional loans to finance national government infrastructure projects would not be appropriate for a number of reasons. First, the country’s gross international reserves are intended primarily to serve
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his 100th column is dedicated to them, without whom this columnist will not have the drive and dedication to do more for a purpose. This column is a testament that yours truly is willing to learn-unlearn-relearn, even from students of law. This columnist takes pride and feels a deep sense of happiness when his daughter writes about public-private partnership (PPP)related topics. The title of this column is partially lifted from the thesis submitted by Jessie to the Ateneo Law School. The future partner of Agra & Agra wrote about the Right of First Refusal—Right or Faux Right? Defining Favorable Private Sector Rights in Government Contracts.
There are rights that privatesector proponents (PSPs) are entitled to before and after PPP contracts are awarded to them. Here are some of them: Right of first refusal. What my daughter wrote about is a right that can be exercised during the life of the
KISS Siegfred Bueno Mison, Esq.
THE PATRIOT
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N the Army, soldiers will encounter the term KISS—“Keep it simple, stupid.” It is an acronym to remind commanders to make operations orders simple. Clear and concise orders prevent misunderstandings. In planning combat operations, leaders were taught to follow a strict five-paragraph structure— situation, mission, execution, administration and logistics, and command and signal.
Subordinates are asked to repeat the instructions given by their commanders so nothing is lost in transmission. Orders are worded to make them easy to communicate and understand. In the missionoriented environment of the Army, following KISS allows soldiers to carry out assignments without delay or misunderstanding. It is a mind-set that I have tried to practice for most of my life. In law exams, I discourage students from writing complicated and highfalutin sentences. Rather than looking impressive, this defeats the purpose of an understandable essay.
As my students will take their final exams in a few days, I must tell them: keep things simple. During Thanksgiving, I invited a few friends for a simple potluck dinner. I personally prepared an eight-pound roast beef and gravy using my sister’s recipe. I learned this only a few days prior, when my sister Melinda and her de facto sous-chef husband, Albert Asuncion, gave me cooking lessons. Of course, I knew how to cook basic meals such as adobo and sinigang, but I never learned the finer details of cooking. So, it was fun to receive a crash course on roasting a turkey and slow cooking
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PPP contract. She listed down the six factors of a valid grant of this right: A legitimate, fair and honest public bidding; advantage to the government; the exercise of the right must not contravene public policy; the PSP holding the right must have a vested and existing interest over the subject matter; there must be an existing and specific subject matter at the time the right is awarded; and proper notice must be given to all participating bidders. In a PPP, the winning PSP is given priority or the opportunity to secure an ancillary or related postaward contract in the event the public proponent will consider or award such contract. Right to be “kept whole.” Another project-term right by a PSP is the right to recover all its investments and expenditures, and earn profit based on the tariff parameter stated in the PPP contract. This right is coupled with the obligation to make sure all expenditures are prudent and necessary in order to achieve the object of the contract.
Right to be treated fairly. For those bidders competing for the market, they must be treated fairly. All of them must be on equal footing, that is, they must compete based on same terms and conditions of the bidding process and of the contract. In a competitive challenge, the public proponent must continue and open the process for challenge after negotiated terms are arrived at. Rights to match, top or outbid, and submit another offer. These are the preaward rights of original proponents (OPs) in a competitive challenge process. Depending on the governing law or regulation, the OP has the right to match or equal the superior offer from a challenger, right to top or outbid the best offer from a challenger, or right to submit another financial offer that will be opened at the same time the financial offers of challengers will be opened. How real and demandable are these rights? Or are they dead letter?
ribs. I learned to appreciate how delicious food can be when done with much patience and precision, such as brining a turkey before roasting and dry-aging a prime rib. Albert is one great husband and the perfect sous chef of my sister, who, though not a chef, loves to cook. His patience extends beyond the kitchen. When he was still courting my sister, I remember my father would give him the cold shoulder every time he visited the house. As his job allows him to work from home, I noticed how Albert balances jobrelated affairs and his kitchen duties. He prepares things deliberately, as seen in how he packs our balikbayan boxes with so much precision and care. His patience is the anchor in his 25-year-old marriage. But what I truly admire about my brother-inlaw is his way of dealing with crises. He is cool as a cucumber. While everyone is panicking, he is perfectly calm, which allows him to see things differently. During our family vacations, Albert is always the calm one, even when we get lost and my father starts to become impatient. As my father barks his orders to get our bearings back, Albert radiates calmness. And in his peace, Albert sort of tells the group: Let’s take things slow.
Our “orders” from above can be summarized as, “Love one another as much as I have loved you.” Truly, loving others takes time and effort. Romantic relationships only last when they are nurtured and allowed to mature. Loving our enemies, as part of His orders, is a slow process. And it takes a conscious effort to love those who hurt us. Loving our children can be as simple as the way God loves His children—unconditionally. In my own quest to KISS my life, as in, keeping it simple and slow, I have to learn how to get rid of the extra baggage I carry. We all have to. These include actions that can no longer be undone and words better left unsaid. We have to leave behind the guilt and the mistakes we have done in the past, both in business and in our personal lives. We are given all kinds of opportunities to make up to the people we’ve hurt. While the process is slow and oftentimes hard, it can be simple as loving unconditionally. Everything—whether it be a roasted turkey or prime rib, getting your bearings when disoriented or even winning the heart of a loved one—come to those who keep it simple and slow. Ask Albert. For questions and comments, please e-mail me at sbmison@gmail.com.
Using BSP reserves to fund government programs is not a prudent policy as a buffer against external shocks to the economy and financial system by maintaining the international stability of the peso rather than funding National Government projects. In this respect, while there is no doubt that infrastructure investments will benefit the economy, Bangko Sentral ng Pilipinas (BSP) dollar reserves are more appropriately deployed for the maintenance of the international stability and convertibility of the currency, which are key reasons why central banks hold reserve assets. It should be further noted that central bank funding of fiscal expenditures can be inflationary. That is, it could undermine the primary mandate of central banking, which is price stability. Second, central bank funding of infrastructure projects would encroach on the role of fiscal policy. While the objectives of the proposed sovereign wealth fund (SWF) are laudable, the ability of the national government to utilize its fiscal resources while maintaining disciplined economic
management and credible policy setting are more important issues. Moreover, the catalytic impact of an SWF program would not materialize if it is disconnected from the broader economic strategies (i.e., maintenance of macroeconomic stability; improved access to savings and credit; a favorable environment for business confidence; and investment growth). At the same time, an SWF cannot be a substitute for necessary reforms required in fiscal management, such as the tax-reform program that the national government is pursuing today. There are also practical issues related to the proposed scheme, namely, whether it is allowed under Philippine law or not. The proposed SWF would actually be in conflict with the law covering the international reserves held by the BSP. Thus, a third reason against the idea is that the provision of funding for infrastructure development represents a form of development financing that is prohibited by the
Asia’s cities could save the planet
he world’s cities will add 2.5 billion more residents by 2050, more than half of them in Asia. The effect of this great migration on climate change will depend in part on what kind of homes, factories and office buildings they live and work in. It’s a seemingly minor but significant issue that should attract attention from officials gathered at this week’s United Nations-sponsored climate talks in Bonn. (Michael Bloomberg,
Monday, November 27, 2017 A11
the founder and owner of Bloomberg LP, is the UN special envoy for cities and climate change.) Buildings generate almost 20 percent of energy-related greenhouse-gas emissions—a proportion that’s likely to rise as onetime farmers move into more energy-intensive modern homes. Yet less than 10 percent of the $4.6 trillion spent on construction in 2015 went into energyefficient “green” buildings. The reasons are many: Some
energy-saving technologies and designs have only recently become widely accessible. There is a widespread belief among many developers, especially in poorer countries, that building green costs considerably more than traditional methods. Officials in many countries are lax about en forc i ng bu i ld i ng codes for energy efficiency. But there is now software that can give architects and engineers access to
BSP Charter. And a fourth reason would be that, in practical terms, the infrastructure assets of an SWF funded from the international reserves would be inconsistent with the requirement that reserve assets be freely convertible to liquid assets, such as gold or foreign currency-denominated tradable securities. Another critical question is whether it is wise for any central bank to fund the government’s infrastructure spending or obligations. A clear lesson from the case between the government and the central bank of Argentina in 2010 is that using central bank reserves to pay government obligations or fund government programs is not a prudent policy, even if the central bank may have more than adequate foreign reserves. It weakens the balance sheet of the central bank and provides the wrong incentive to the government, which would have less reason to rein in any rapid expansion in spending or the commitment in raising revenues through tax reforms.
Equally crucial is the perception of investors. Foreign investors would be more reassured if the payments of debt obligations or funding government projects were met with solid fiscal surpluses rather than from central bank reserves. The proposed SWF suggests that, in exchange for its international reserves, which are liquid and high-quality assets, the central bank gets an asset that is illiquid. In the end, the proposal for the creation of a sovereign wealth fund carved out of the country’s foreign-exchange reserves fails to take into account its impact on macroeconomic stability; the adverse international experience and potential permanent loss of credibility to financial markets; and the legal prohibitions based on sound reserve management and economic-stability principles. Francisco G. Dakila Jr.
the most efficient designs and quickly certify their work. As for cost, the International Finance Corporation estimates that building green raises construction costs less than 2 percent on average. And new business models, such as so-called energy savings companies, popular in China, can enable commercial developers to better afford energy-efficient technologies. The challenge also presents rich countries, which are supposed to be
contributing to a Green Climate Fund to assist poorer ones in reducing their carbon emissions, with a more politically palatable way to help. Europe, for instance, has plenty of knowledge to share on designing green certifications and building codes. More important, Western banks could play a critical role in marshaling new financial instruments, such as green-construction bonds, to pay for all these new buildings. Bloomberg View
Managing Director Monetary Policy Sub-Sector Bangko Sentral ng Pilipinas
2nd Front Page BusinessMirror
A12 Monday, November 27, 2017
Court of Appeals delays distribution of Hacienda Roxas land to farmers
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By Joel R. San Juan
@jrsanjuan1573
recent decision by the Court of Appeals (CA) effectively delayed the distribution of land via agrarian reform in Nasugbu, Batangas, owned by publicly listed Roxas and Co. Inc. (RCI) In a 28-page decision penned by Associate Justice Zenaida Galapate-Laguilles, the CA’s Fifth Division has nullified the notice of coverage under the Comprehensive Agrarian Reform Program (CARP) issued by the Department of Agrarian Reform (DAR) over the 3,000-hectare Hacienda Roxas. The CA decision threw out resolutions issued by the DAR on October 16, 2013, and April 15, 2014, that rejected RCI’s protest over the government’s move to put the land, equivalent to about 39 hectares Cultural Center of the Philippines complex, under Carp. The DAR
also rejected RCI’s motion for reconsideration over the notice of coverage the agency published on October 22, 2012, which ordered Hacienda Roxas be distributed to farmers. The CA’s decision now prompts the DAR to serve RCI a new notice of coverage. The CA also ordered that the DAR immediately (with deliberate dispatch) complete the redocumentation and validation process concerning the farmerbeneficiaries and the properties they hold in trust. Hacienda Roxas covers three estates namely, Hacienda Palico
(1,024 hectares), Banilad (1,050 hectares) and Caylaway (about 867 hectares), sprawling over nine villages in Nasugbu. “Petitioner [RCI] was, indeed, deprived of its tracts of land when public respondent DAR published the notice of coverage on October 22, 2012, and subsequently denied its protest against the same through the criticized order and resolution,” the CA said. The CA decision noted that the DAR began its move for the compulsory acquisition of Hacienda Roxas in 1999. However, the court accused the DAR of failing to inform RCI, which portions of its estates were being placed under Carp and which portions were excluded. The CA decision comes eight years after the Supreme Court (SC) denied RCI’s appeal to declare its two haciendas—Banilad and Caylaway—and portions of Hacienda Palico, all in Nasugbu, Batangas, exempt from the coverage of the Carp. In 2009 the SC reversed and set aside the CA resolution that cited Presidential Proclamation
(PP) 1520 as having reclassified the lands in the municipalities of Nasugbu in Batangas and Maragondon and Ternate in Cavite to nonagricultural use. Then-President Ferdinand E. Marcos issued PP 1520 in 1975. Court documents revealed that RCI assumed its haciendas are part of what PP 1520 declared as a tourism zone. RCI also based their claims on the assumption that PP 1520, which declared Nasugbu, Batangas, as tourism zone reclassified their estate to nonagricultural use even prior to the effectivity of the comprehensive agrarianreform law on June 1988. The High Tribunal, however, ruled that PP 1520 merely recognized the “potential tourism value” of certain areas within the area declared as tourism zones and did not immediately reclassify them as nonagricultural. However, the recent CA decision said that under the law, a landowner may retain not more than 5 hectares out of the total area of his agricultural land subject to the Carp. See “Court of Appeals,” A2
Food carts in Intramuros to get face-lift, assigned areas Continued from A1
Asido added that he has already discussed with the Philippine Business for Social Progress the possibility of training the vendors in entrepreneurship. “They were already trained by the Department of Tourism in food handling, but don’t have entrepreneurship skills. When we spoke with the vendors association, I said, eventually, with training in entrepreneurship and more experience, they could become a cooperative.” In a news statement, the Spanish Embassy in Manila said a conference and prototypes of the redesigned carts and stalls will be on public display on November 29 at 10 a.m. in Plaza Sto. Tomas, Intramuros. “At the end of the project, a map will be developed to further put in context the food culture and assets within the walls of Intramuros and a new experiential dimension,” the embassy added. The prototypes, redesigned by Zoohaus, will also be constructed in partnership with Escuela Taller de Filipinas and student-observers from the Lyceum of the Philippines University, the embassy said. Zoohaus is an urban planning design and architecture collective based in Madrid. Separately, Asido said the DCP, an attached agency of the Department of Trade and Industry, “is covering the cost of construction of the prototypes in partnership with local designers.” The IA surveyed all the vendors in the heritage city, and profiled each one, asking them what product they were selling, how much were they earning, etc. “There are about 100 vendors, and we said, ‘so you can participate in the process, identify the areas where you could sell,’ but this is still subject to our See “Food cart,” A2
www.businessmirror.com.ph
CIMATU CHALLENGES MINERS TO GO BEYOND ‘RESPONSIBLE’SLOGAN By Jonathan L. Mayuga @jonlmayuga
& Elijah Felice E. Rosales @alyasjah
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NVIRONMENT Secretary Roy A. Cimatu challenged the mining industry to redeem itself by going beyond mottos and slogans but by showing what responsible mining is all about. Speaking during the Presidential Mineral Industry Environmental Award (PMIEA) event last Friday, Cimatu’s presence and message gave miners a glimmer of hope after President Duterte’s latest policy pronouncement to uphold the ban on prospective open-pit mining for select ores. The PMIEA is the highlight of the annual 64th Annual National Mine Safety and Environment Conference (ANMSEC). The ANMSEC held in Baguio City gathered more than 3,000 top executives, engineers and employees from various mining, quarrying and cement companies and officials and representatives from other support industries to tackle mine safety and environmental issues. According to Cimatu, mining companies should go beyond crafting slogan but put to practice responsible mining. “Let me make our position very clear as mandated by the Constitution and the existing laws,” Cimatu said.“No less than President Duterte has declared in no uncertain terms that the administration is for responsible mining.” He said that responsible mining, as how Duterte intends to see it, must be people-oriented and provide decent jobs. It must protect and enhance the environment, not run over the rights and welfare of indigenous people, must contribute its fair share to national income and, last, must transform itself to a world-class industry.
Surprising
CURRENT Chambers of Mines of
the Philippines Vice Chairman Jose R. Leviste Jr. views Cimatu’s speech as “very positive for the mining industry.” “I recall his decision, to make a decision on the basis of science. I welcome points defining responsible mining,” said Leviste, who is also chairman of OceanaGold Philippines Inc. “I like his conceptreference to Chile and Indonesia and to use Chile as a reference point for the target of 17-percent GDP.” Cimatu’s presence at the conference and participation in the awarding of this year’s PMIEA surprised industry leaders. It was the first time for a sitting secretary of Department of Environment and Natural Resources (DENR) to attend and deliver a message at ANMSEC. The last time that a sitting environment chief took part in the annual event was seven years ago. Cimatu said he was hesitant to attend the annual gathering, but eventually decided to come. “What made me finally decide to come over was my desire to determine for myself whether there’s hope for redemption for an industry that has apparently failed our country and our people,” Cimatu said. “Given its seemingly battered image in the public eye, I myself hesitated at first or even considered coming over. But I thought as the DENR secretary it is [not] right to simply ignore, or worst condemn, a sector which [can be] a solid partner for the development of the national good.”
Diminishing
EXPERTS have warned that Duterte’s hardline policy on open-pit method will only diminish the mining industry’s already-little contribution to Philippine economy. Maria Ella C. Oplas, economics professor at the De La Salle University, said the President should have listened to the recommendation of the country’s mining body to restore open-pit mining. See “Cimatu,” A2
MGB wants to hike mining excise tax based on output Continued from A1
THE BusinessMirror bags four awards in the 11th Jose G. Burgos Jr. Awards for Biotechnology Journalism. The awardees are Manuel T. Cayon (left), second prize in Feature Category; Agriculture Editor Jennifer A. Ng (third from left) and Science Editor Lyn Resurreccion (fourth from left), first prize in Institutional Category; Stephanie Tumampos (third from right), third prize in Feature Category; and Jasper Y. Arcalas (right), second prize in News Category. With them are Dr. Edita Burgos (second from left), president of J. Burgos Medria Services; and Dr. Vivencio R. Mamaril (second from right), director of Department of Agriculture Biotech Program Office. Nonoy Lacza
BusinessMirror bags most awards in biotech journalism By Manuel T. Cayon @awimailbox
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Mindanao Bureau Chief
he BusinessMirror garnered the most number of awards—four—at the 11th Jose G. Burgos Jr. Awards for Biotechnology Journalism during the awarding ceremonies held at a hotel in Quezon City on November 22. Besides bag g ing the top prize in the Institutional Award for printing the most number of stor ies on biotec hnolog y, BusinesMirror’s three reporters sweeped various awards. Agriculture beat reporter Jasper Y. Arcalas won the second prize in News Category for his article “Use of high-yielding GM
varities will allow farmers to export corn,” while Mindanao Bureau Chief Manuel T. Cayon took the second prize in Feature Category for his article “GM crops planted in 185-M ha worldwide.” BusinessMirror photographer and Science reporter Stephanie Tumampos garnered the third prize in Feature Category for her article “Filipino scientists, regulators look into GMO perceptions.” The reporters received cash prizes and plaques. Meanwhile, James Konstantin Galvez of Manila Times won double first-prize awards for News and Features categories for his articles “Challenged Searca stresses ‘safe, scientific’ agri technologies” and “Searca seeks stronger law on bio-
tech crops.” Ace June Perez of SunStar Davao bagged the third prize in News Category for his article “PH is top grower of GM crops in SEA.” In the Institutional Category, The Manila Times took the second prize, while The Philippine Star and Manila Bulletin tied for the third prize. The awards was first known as the Gawad Galing in Biotech Journalism and renamed Jose G. Burgos Jr. Awards for Biotech Journalism “in honor of the late Jose Burgos who was a journalist and a farmer.” The Jose G. Burgos Jr. Awards has noted a jump in the number of stories churned out by reporters about biotechnology, with the increasing number of reports, indicating the See “BusinessMirror,” A2
our own discussion,” Moncano said. “Although nothing is really final, one of the things that we are talking about is whether it will be a uniform increase or whether it will be per-commodity basis like should gold, for instance, have a 5-percent increase, too, the same with nickel? Our [MGB] direction is to push for a per-commodity basis increase” he added. In declared Mineral Reservation Areas, mining companies are already paying an additional 5 percent for royalty on top of the 2-percent excise tax, but the Duterte administration believes the government deserves a bigger share in mining revenues. Environment Secretary Roy A. Cimatu earlier said the DENR is now looking at a study proposing to increase the excise tax on mining from 2 percent to 5 percent. Before Republic Act 7942, or the Philippine Mining Act, was signed into law, the taxes for minerals already stood at around 5 percent. As part of a mining revitalization program and in order to attract more investments in the sector, the government decided to bring it down to 2 percent. Moncano said the MGB will come up with its proposal for increasing the mining tax within the year. The fiscal regime on the
mining industry may now be included in the succeeding packages of the government’s comprehensive taxreform package, an official of the Department of Finance earlier said. Finance Undersecretary Bayani H. Agabin said the multistakeholder Mining Industry Coordinating Council, which is cochaired by Finance Secretary Carlos G. Dominguez III and Cimatu, is set to undertake the review of thefiscal regime. “We are looking at this to be part of one of the tax-reform packages,” Agabin had said in an earlier report. Currently, there is also a pending bill in Congress that seeks to compel mining firms to give the government 10 percent of its gross revenues, or 55-percent share in its adjusted annual mining revenue. House Bill 5367 argues that the government is “the owner of the minerals.” The passage of a new mining tax law is one of the preconditions for the lifting of the ban on the processing of new mining projects as mandated by Executive Order 79 signed by former President Benigno S. Aquino III on July 6, 2012. Since then, annual mining investment has nosedived by as much as 50 percent. Coupled with stringent rules rolled out by former Environment Secretary Regina Paz L. Lopez, minerals production also slowed and failed to hit targets.