“Mother [Teresa] gave me a destiny to have a different life.”—Gautam Lewis, talking about an image displayed at his photography exhibition in connection with Mother Teresa’s canonization in Kolkata, India. For Lewis, a polio victim abandoned by his parents as a child and rescued by Mother Teresa, the nun is already a saint. At 7, he was adopted from an orphanage run by the Missionaries of Charity, the order set up by Mother Teresa, and moved first to New Zealand and later England. Lewis, 39, now runs a flying school for people with disabilities in the United Kingdom. AP
media partner of the year
“Territorial islands were mistakenly left out.”—The Chinese government, citing incorrect drawing of national boundary lines, an apparent reference to waters and islands China claims in the South and East China seas. China is tightening its regulation of online maps to clarify its territorial claims, amid sharpening disputes with its neighbors. AP
“What is a fact is that in the face of candidate Trump’s postures and positions, which clearly represent a threat to the future of Mexico, it was necessary to talk. It was necessary to make him feel and know why Mexico does not accept his positions.”—Mexican President Enrique Peña Nieto, acknowledging Mexicans’ “enormous indignation” over Trump’s presence in the country, and saying that he told him in person Mexico would in no way pay for the proposed border wall. Story on B2-2.AP
BusinessMirror
United nations
2015 environmental Media Award leadership award 2008
www.businessmirror.com.ph
A broader look at today’s business
n
Saturday, September 3, 2016 Vol. 11 No. 329
P25.00 nationwide | 4 sections 20 pages | 7 days a week
LOPEZ SAYS INVESTORS BELIEVE PHL STREETS MUCH SAFER TODAY
‘Business confidence high amid drug war’
T
INSIDE
he Department of Trade and Industry (DTI) on Friday told members of the House of Representatives that the business community is generally supportive of President Duterte’s war versus illegal drugs, with investors’ confidence in the Philippines soaring amid the bloody campaign.
ramon busa and friends still awaiting pasay’s gift OurTime BusinessMirror
B4 Saturday, September 3, 2016 • Editor: Efleda P. Campos
news@businessmirror.com.ph
Ramon Busa and friends still awaiting Pasay’s gift of permanent Home of the Golden Gays
A
By Felicia Recto | Special to the BusinessMirror
T 7 years old, Ramon Busa knew he was different. From the way he moved to the way he spoke, he had a feeling he wasn’t like any of the “regular” boys.
“’Pag nasa harap ako ng salamin, galaw ako nang galaw, kembot ako nang kembot, tula ako nang tula, kanta ako nang kanta,” he told the BusinessMirror. “That early, alam ko na iba ako. Hindi ako regular na lalaki.” Fortunately for him, he was not criticized by his family or peers for expressing himself the way he did. However, since he lived in a time where being gay was looked down upon by society, he took great care in how he presented himself in public as he grew older. “Kaya siguro nga, isa ’yun sa mga dahilan kaya naging maayos din ’yung buhay ko na hindi ko rin inalis iyong self-respect ko,” he said. “Nakita ko rin kung papaano ako minahal ng magulang ko, kaya minentain ko ’yun na hanggang sa nag-college ako, naggraduate ako.” Years later, fate brought him to former Pasay City Councilor and Founder of the Home for the Golden Gays Justo Justo when they started working together for a voiceover stint for dzRH. The pair parted ways when Justo pursued his political career as councilor and Busa went abroad for work. During that time, the Home for the Golden Gays had already been around for 10 years. The facility, established by Justo in 1975, provided a home for homeless elderly gay men, and for 37 years, it was a haven for the lolas to express themselves in a safe environment. The year 2012 became the turning point for Busa and the lolas. After encountering an accident on a jeepney, Justo was left bedridden and, eventually, unable to function. It was then he gave Busa the responsibility of heading the Home for the Golden Gays. “Tuwing nag-uusap kami, lagi ni-
yang binabanggit na if ever halimbawa mawala siya, ituloy ko ’yung legacy, tulungan ko ’yung ibang mga bading,” Busa said. “Sabi ko sige, ’pag dumating ’yung puntong ganun, I’ll try my best at saka, hindi ko naman mababayaan dahil kasi papunta na rin ako doon eh, kaya maiintindihan ko ’yung takbo ng buhay.” Assuming the role of president was not an easy task for Busa. After Justo’s death, the Golden Gays were faced with a bigger problem—their home on 108 David Street was taken back by Justo’s family. The haven they called home for more than 30 years was no longer theirs. Busa managed to get the property next to their former home on 109 David Street as their meeting place, but even so, the 48 lolas had no choice but to go back to their families or the streets where they used to live. Currently, the Golden Gays are still in need of a home. In spite of Justo’s and now Busa’s efforts to have the Home for the Golden Gays recognized by the Pasay City Council, the local government has yet to give them a permanent residence. Fortunately, for the lolas, society has not completely abandoned them. Multinational companies, like JP Morgan, Wells Fargo, QBE and Emerson, often sponsor the Home for the Golden Gays as part of their corporate social responsibility. Every once in a while, these companies hold beauty pageants for the lolas and reward them in kind—food, old clothing and, sometimes, commuting fare for those who live far—for their efforts. For the lolas, the beauty pageants remind them of the freedom they once had in their old home. It rejuvenates them; some lolas can even stand in their heels for up to
BUSA
three hours, modeling their gowns to the sponsors. “Kailangan din namin ’yung ganung mga activities dahil unang una, ’pag may mga beauty con, feeling ng mga lolas kasi nae-energize sila. Lumakas talaga ’yung katawan nila. Lahat ng stress sa buhay ng mga lolas ay nakakalimutan pasamantala, pakiramdam nila na humihinto ang inog ng mundo, kasi nga ang aging process totally stopped kasi nga masaya ang mga lolas,” Busa said. The Golden Gays have also been gaining the attraction of many media outlets over the years. In 2013 Danish Filmmaker Nola Gaardmand made a short film on the facility, featuring two of the
lolas Rica and Leony. GMA also made a documentary last year in their I-Witness program about the Home for the Golden Gays, which gave a more extensive look into the lives of the lolas. Recently, the Golden Gays joined this year’s Manila Pride March. Usually, the lolas would not join movements due to their age, but Busa thought this was a good opportunity to expose them to the public. “Sabi ko nga sa mga lolas kailangan we have to be a part of this para mai-promote naman natin ang Golden Gays kasi, although meron kaming web site, marami pa ring hindi nakakakilala sa mga lolas,” Busa said. “Sabi ko ito na ’yung magandang
opportunity kaya hindi kami nagkaroon ng second thought, join kami sa Manila Pride March.” Despite sponsorship from different companies and media exposure, a permanent home is still one of Busa’s wishes for the Golden Gays. For him, having a residence for the Golden Gays is important not only to provide them a home and foster self-reliance, but also to establish something that the younger generation of LGBTs can use when they get older. “Isa rin ’yun sa mga plano kong maging legacy para sa mga younger generation, na ‘eto nai-set up na namin ito para sa inyo.’ Lingapin niyo nalang, pagandahin, ma-develop when the time comes,” Busa said. While a permanent residence is an immediate concern, Busa also aims in the future to make the Philippines a retirement haven for European and American lesbian, gay, bisexual and transgender (LGBT) couples. Following the example of some Asian countries, Busa wants to open a retirement home in Bataan, managed by the Golden Gays themselves, to accommodate European and American LGBT couples who can no longer handle the winter climate in their country. By doing so, Busa hopes that this not only provides a stable home for the lolas, but also an opportunity to help the Philippine economy. “Gusto rin ng Home for the Golden Gays na makatulong sa pagunlad ng ekonomiya. Ito lang ang magagawa namin para sa bagong administration,” Busa said. “Sana magkaroon kami ng pagkakataon maipakita sa inyo kung papano namin magagawa ito and, hopefully, sana ang matulungan din kami.” In spite of the daily trials Busa and the lolas face, their resilience and optimism continue to be a inspiration for the LGBT community. They will continue to have the spark in their eyes, a spark that is only unique to their character. “Kung makakausap mong ibang mga Golden Gays, iba ’yung kislap ng mata niyan,” Busa said. “Till death ang mga lolas, hindi uurong sa labanan. Never surrender. Kaya hanggang huling sandali may kislap ang mga mata ng mga lolas mo.”
Germany’s population reaches 82.2M in 2015
B
ERLIN—Germany’s population reached 82.2 million at the end of last year, recording the biggest yearly increase of about 980,000 people since 1992, the country’s official statistics office Destatis said on Friday. It was also a strong year-on-year increase of 1.2 percent, 0.7 percent higher than the previous year. A mong them, 8.7 million didn’t have German passports.
The foreign population increased in 2015 by 14.7 percent compared with the year before, the highest since the reunification of Germany 26 years ago. It was estimated that about 900,000 refugees arrived in Germany last year, according to Herbert Bruecker, a labor-market researcher from the employment research institute IAB. The demographic problems, including social security, lack
of skilled labors and left-behind elderly in rural areas were not changed by the population increase, Stephan Sievert from Berlin Institute for Population and Development said. Labor Minister Andrea Nahles said recently refugees alone could not completely meet the skilled labor shortages of the country, Germany must also specifically attract skilled immigrants to come. PNA/Xinhua
Photograph of separated elderly Canada couple gets attention
CABBAGES Lola Caring waits for customers to buy her cabbages in a corner of the Baguio City market. She is at the vegetable section of the market every day.
MAU VICTA
Senior-citizen discounts, VAT exemptions to remain intact
T
HE comprehensive tax-reform proposal of President Duterte’s economic team will retain the 20-percent discount enjoyed by senior citizens on their purchases, along with exemptions from the value-added tax (VAT) on raw food and medicines. This was revealed by Department of Finance (DOF) Spokesman Paola Alvarez, who said the government’s tax-reform program presented to Congress last week aims to raise enough revenues to fund targeted subsidies for the poorest of the poor. She said in lieu of the VAT exemptions to be taken out from other sectors, the government is putting in place direct subsidy programs for the benefit of the needy and other vulnerable sectors to be affected by the proposed VAT exemptions. “But the VAT exemption granted to seniors when dining in restaurants would have to be lifted,” Alvarez said, “because such discounts are usually availed of by affluent senior citizens who can well afford anyway to do away with this privilege.” Alvarez said money collected from the lifting of seniors’ VAT exemptions in restaurants will be used instead to help other senior citizens who badly need the subsidy. PNA
Recto welcomes budget hike for seniors’ pension; wants more covered
S
EN. Ralph G. Recto on Monday welcomed the budget increase for the pension of senior citizens, but called for the reduction of the 7-percent administrative cost ceiling so that more seniors could be covered. The budget for the government’s pension for indigent senior citizens will more than double next year to P18 billion, which would allow the enrollment of an additional 1.613 million elderly to a program that grants each a cash aid of P6,000 a year. Recto said the program’s budget will shoot up to P18 billion, from P8.7 billion this year, raising the number of beneficiaries from 1.382 million to 2.995 million. The budget is lodged in the appropriations of the Department of Social Welfare and Development (DSWD), which runs the program. Recto noted that if Congress approves the funding hike, 2017 would be the third straight year that the budget for the pension of senior citizens would be increased. “It will have the highest and the fastest increase among government social programs, a sixfold increase from P3.1 billion in 2014. It is an impressive trajectory. This is one program which has been put on steroids,” he said. The distribution of a P500 monthly pension, or P6,000 yearly, to indigent seniors is made pursuant to Republic Act 9994, or the Expanded Senior Citizens Act of 2010, sponsored by then-Sen. Pia Cayetano. Qualified to receive the stipend are senior citizens who are frail, sickly, or have disabilities; are not receiving pension from the Social Security System, Government Service Insurance System, or veteran’s pension; and do not have a permanent source of income or regular support from relatives. The pension is said to be distributed every quarter through cash payment by DSWD field offices or city or municipal social welfare and development offices. AP
Our time
V
ANCOUVER, British Columbia—A photograph of a crying elderly Canadian couple in wheelchairs, separated into two different care homes after 62 years of marriage because no beds were available together, has received international attention. Wolfram Gottschalk, 83, of Surrey, British Columbia, was put in an assisted living home in January after he suffered dementia health complications, making it impossible for wife Anita, 81, to care for him at home. Four months later, Anita entered a different facility, despite family efforts to keep them together. The facilities are half an hour
apart, with family driving Anita to see Wolfram several times a week. Granddaughter Ashley Bartyik took “the saddest photo I have ever taken” when her grandparents were brought together recently. She notes that he reaches and cries out for her. Wolfram was diagnosed with lymphoma on August 23. Now, the family is desperate for the couple to be together to live out their remaining days. “I see desperation,” Bartyik said. “I see people married for 62 years pulled apart by a system. I see the love they have for each other.” She took to social media to draw attention to the family’s plight and
said the family had been working to find a care home to accommodate both grandparents. But the couple’s immediate health concerns led them to be put in separate facilities. “It’s a little bit of a broken system right now,” Bartyik said. She said the first call from the local health authority came on August 25, after the photo received international attention. “We were told he is a top priority,” Bartyik said. She said Anita is more aware of what is happening than her husband. She said her grandfather’s dementia is growing and the family is afraid Wolfram soon won’t remember Anita. AP
world
B2-1
The budget being sought by the DTI for next year
During the deliberation of the DTI’s 2017 P4.9billion proposed budget, Trade Secretary Ramon M. Lopez said the campaign of the government Continued on A2
JENS KEuKElEirE uses a late burst to pull away and win his first stage at a grand tour by over two bike lengths. AP
‘CAN’T HEAR ANYTHING’
By Howard Fendrich The Associated Press
N
EW YORK—When heavy rain began pelting the closed roof at Arthur Ashe Stadium, Andy Murray couldn’t pick up the usual sounds of a tennis match. Most important, he said, the thwack of a ball coming off his opponent’s racket strings— or his own, for that matter—was completely indiscernible during a 6-4, 6-1, 6-4 secondround victory over Marcel Granollers at the US Open on Thursday. As it is, the new $150-million retractable cover makes the tournament’s main stadium louder because the structure, even when open, traps the sounds of spectators chatting in the stands. When it’s shut, as was the case Wednesday because of showers that delayed play on all other courts for hours at a time, the roof amplifies all of that ambient noise. And when the drops came down early in Murray’s second set, well, it was loud as can be. “You can’t hear anything, really,” 2012 US Open champion Murray said. “I mean, you could hear the line calls.” But that was about it. As Murray and Granollers played, there was a constant din during points, an amalgam of the downpour bouncing off the outside of the roof and the murmur of the crowd bouncing off the inside. From a seat in the 10th row parallel to a baseline, the racket-ball impact was rendered silent by a louder version of what you hear when you hold a seashell to your ear. It’s not simply that it’s an unfamiliar soundtrack for a Grand Slam match. It affects the competition. “We use our ears when we play. It’s not just the eyes. [The sound] helps us pick up the speed of the ball, the spin that’s on the ball, how hard someone’s hitting it. If we played with our ears covered or with headphones on, it would be a big advantage if your opponent
BELGIAN’S DAY
wasn’t wearing them,” explained Murray, whose next opponent is 40th-ranked Paolo Lorenzi. “It’s tricky. You can still do it, but it’s harder, for sure.” Granollers offered a similar take. “We’re not used to playing with that noise.... I was not feeling like I was hitting the ball right. It was difficult also to concentrate. Tough to play,” Granollers said. “There is more noise with the roof, but, I mean, if it’s not raining, it’s OK. With the rain, it was too much.” Like Murray, he acknowledged players will need to learn to adjust. “When it rains, you’re going to get noise,” US Tennis Association Executive Director Gordon Smith said, when asked about the players’ comments about the ruckus. “We will look at potential ways to attenuate some of the noise going forward. It’s going to be louder than it was. We knew that. And it’s something the players will deal with and the fans will deal with.” The good news: At least Murray, Granollers and others were able to play. Rain has often been a schedule-wrecker at the US Open, where the men’s final was postponed five consecutive years from 2008 to 2012. Because of Thursday’s wet weather, action around the grounds was limited until the early evening—but matches kept coming under the roof in Ashe, including Serena Williams’s 6-3, 6-3 victory over American wild-card entry Vania King at night. That pulled Williams even with Martina Navratilova’s Open-era record of 306 Grand Slam match wins; only Roger Federer, with 307, owns more. “It was definitely a little different playing with Ashe closed,” said Williams, who produced 13 aces yet clearly was displeased with winning only 13 of 40 points on King’s first serves. “But it still feels great.” Chair umpire Alison Hughes repeatedly asked spectators to keep it down. “Your voices are carrying to the court,” she said. And: “Ladies and gentlemen, respect the players. Please remain quiet.”
B
ILBAO, Spain—Jens Keukeleire of Belgium won the 12th stage of the Spanish Vuelta, while Nairo Quintana maintained his overall lead on Thursday. Keukeleire, riding for Orica BikeExchange, used a late burst to pull away and win his first stage at a grand tour by over two bike lengths. He completed the hilly 193-kilometer route that traversed four ascents between Los Corrales de Buelna and Bilbao in four-and-ahalf hours. “My director said, ‘If you are there at the end, you can give it a crack.’ And I was good enough to take it over,” Keukeleire said. “What makes it special is that I just became a father four weeks ago, and my girlfriend and son are here with me.” Quintana protected his 54-second lead over Chris Froome, before the race enters three consecutive stages in the Pyrenees Mountains. The two front-runners held off from attacking one another after back-to-back duels on summit finishes, and crossed the line in the large lead group. “There are no easy days. There haven’t been, and there won’t be,” Quintana said. There were no changes among the top 10 times. Quintana’s Movistar teammate, Alejandro Valverde, remained in third place at 1:05 behind. Early in the stage, Froome’s Sky team launched two riders, Peter Kennaugh and David Lopez, in a small breakaway group of six riders. But Astana led the peloton back and swallowed them up by the start of the second ascent over the Alto El Vivero before the flat finish. Friday’s 13th stage is the longest of the three-week race. The 213-km route starting in Bilbao goes over four category-three climbs and briefly dips into France before finishing in Urdax. AP
How much did it cost? Zero!
JAPANESE Prime Minister Shinzo Abe earns a new nickname, “Abe-Mario.” AP
OKYO—How much did Nintendo pay to land that dream marketing opportunity at the Rio Olympics closing ceremony, where Japan’s prime minister popped out dressed as the red-hatted plumber Super Mario? Zero. The Japanese video-game maker behind “Pokémon” and “Zelda” got the coveted stage that corporate sponsors pay millions for after they were approached by those creating the festivities for “cooperation,” not the other way around, Nintendo Co. Spokesman Yasuhiro Minagawa says. “I want to make that clear. We did not pay,” he said in a telephone interview. “And we are not going to become Olympic sponsors either.” Prime Minister Shinzo Abe’s emergence
partly because of the weakening yen but also because planning fiascos, such as decisions to redo designs for both the main stadium and the Tokyo 2020 logo. Organizing Committee Spokesman Motoki Okumura would not give details of the spending for the closing ceremony. Dentsu also declined to comment. “Top Olympic sponsors pay millions of dollars to the IOC [International Olympic Committee] for permission to promote their brands to a massive global audience. Nintendo just did it for free. With Japan’s prime minister as their pitchman. Easily the marketing coup of the Rio games,” said Bob Dorfman, a sports marketing analyst and creative director at Baker Street Advertising of San Francisco. AP
T
sports
in a Super Mario costume was the highlight of the handover section for Tokyo, the host of the 2020 games. The segment was so favorably received in Japan as surprisingly playful and tasteful, given the staidness usually associated with Japan Inc., that Abe earned a new nickname, “Abe-Mario.” Tokyo city official Masahiro Hayashi said Japan’s top advertising company Dentsu Inc. was tapped to produce the handover segment, with a total budget for the Rio Olympics and the Paralympics of ¥1.2 billion ($12 million). He refused to say how much Dentsu was paid, or give other details. The city of Tokyo and the organizing committee are under intense pressure to trim costs, which have ballooned over the years,
6TH PIMS Officers of the Chamber of Auto Manufacturers of the Philippines Inc. (Campi) and officials of the country’s top car manufacturers and distributors attend the Sixth Philippine International Motor Show (PIMS) news conference at the Marriott Grand Ballroom in Pasay City on Friday. Photo shows (front row) Baic President and CEO George Chua, BMW President Maricar Parco, Daewoo Bus President Arsenio G. Yap, Campi President Rommel Gutierrez, Campi Vice President Dante Santos, Foton President Rommel Sytin, Isuzu President Hajime Koso, Jeep and Mercedes-Benz President Felix Ang, Kia President Ginia R. Domingo, Total Philippines Corp. Managing Director Chito Poblete; (second row) Honda Vice President Delfin de Guzman, Lexus SVP for Marketing and Lexus Brand Champion Jose Ariel Arias, SsangYong Berjaya Motor Philippines Managing Director Dave Macasadia, Mitsubishi Motors President and CEO Yoshiaki Kato, Nissan President and Managing Director Ramesh Narasimhan, Peugeot President Glen Dasig, Toyota President Satoru Suzuki, Volkswagen President and CEO John Philip Orbeta and Suzuki Assistant to the General Manager Kennosuke Ouchi. The motor show, to be held at the World Trade Center in Pasay City, will run from September 14 to 18. ROY DOMINGO
S
A8
cientists trying to predict the future path of Zika say that 2.6 billion people living in parts of Asia and Africa could be at risk of infection, based on a new analysis of travel, climate and mosquito patterns in those regions. Some of the most vulnerable countries include India, China, the Philippines, Indonesia, Nigeria, Vietnam,
PESO exchange rates n US 46.6270
Pakistan and Bangladesh, according to the research. Experts caution that the study could overestimate the number of people at risk because they don’t know whether Zika had already landed in some of these countries in the past and allowed people to develop immunity. More than two-thirds of people infected with Zika never get sick, and
Philtoa projects 15% hike in sales for travel mart By Ma. Stella F. Arnaldo
Special to the BusinessMirror
T
symptoms are mild for those who do, so surveillance systems may have missed cases. Although Zika was first identified in 1947, the virus wasn’t considered a major health threat until a major outbreak in Brazil last year revealed that Zika can lead to severe birth defects when pregnant women are infected.
HE Philippine Tour Operators Association (Philtoa) is projecting a 15-percent increase in sales for this year’s 27th Philippine Travel Mart (PTM), ongoing at the SMX Convention Center until September 4, 2016. In an interview with the BusinessMirror, Philtoa President Cesar Cruz expressed confidence that sales from the threeday travel mart, which is specifically targeting the millennials, will hit P130 million to P140 million, from last year’s P120 million. Based on the travel mart’s opening on Friday, he also expects total foot traffic to reach 100,000, up 25 percent from last year’s 80,000. “There are more exhibitors this year, about 320 companies, compared to 280 last year,” Cruz said. He added that “we are introducing new product packages for the millennial market, those already on the radar of social media but have yet to hit the mainstream market.” These include Gigantes Island, Camiguin, Calaguas Island, Catanduanes and Sibuyan Island, among others. Packages for these destinations, he said, start at P1,500 per person. Also available are “tour caravans”, which provide unique local experiences where participants can engage with the local communities and their leaders. “These are clustered
See “Zika virus,” A2
See “Philtoa,” A2
China, India, PHL named as most vulnerable countries to Zika virus
A8
As Andy Murray and Marcell Granollers played, there was a constant din during points, an amalgam of the downpour bouncing off the outside of the roof and the murmur of the crowd bouncing off the inside. From a seat in the 10th row parallel to a baseline, the racket-ball impact was rendered silent by a louder version of what you hear when you hold a seashell to your ear.
A
See “Endo,” A2
| SAturdAy, September 3, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana
ANDY MurrAY: We use our ears when we play. it’s not just the eyes. AP
@davecaga
N expert on labor relations on Friday said the government needs to “overhaul” the labor laws to accomplish President Duterte’s directive to end contractualization and provide security of tenure to Filipino workers. Prof. Rene Ofreneo of the University of the Philippines’s School of Labor and Industrial Relations said the issue of contractualization would not be resolved by merely identifying policy gaps in the implementation of Department Order (DO) 18-A. Earlier, the Department of Labor and Employment (DOLE) said it would try to identify gaps in the implementation of DO 18-A in its bid to end contractualization by 2017. “But DO 18-A is only an implementing rule. To be able to address the issue of contractualization, the Labor Code itself and the other implementing rules would have to be overhauled,” Ofreneo told the BusinessMirror. He said the government is too focused on ending “endo,” or the illegal practice of providing fixed-term employment to workers for successive periods of five months to defeat their constitutional right to security of tenure, which they would have gained after employment for more than six months in a position which is necessary and desirable to the usual business of the employer. Ofreneo pointed out that there are other forms of contractualization that are still being practiced by employers throughout the country, and these forms are actually allowed under DO 18-A. For example, a contractor or subcontractor may be able to hire workers to work for another corporation without violating the laws against labor-only contracting by merely having adequate capital of P3 million in the form of machinery, equipment, office space and other capital assets.
b4
‘Cant hear anything’ BusinessMirror
By David Cagahastian
₧4.9B
obama warns vs global warming’s impact
Sports
‘ENDO’ TO CONTINUE SANS OVERHAUL OF LABOR LAW–EXPERT
n japan 0.4517 n UK 61.8694 n HK 6.0104 n CHINA 6.9822 n singapore 34.3047 n australia 35.2080 n EU 52.2222 n SAUDI arabia 12.4375
Source: BSP (2 September 2016 )
News BusinessMirror
A2 Saturday, September 3, 2016
www.businessmirror.com.ph
‘Business confidence high amid drug war’ Continued from A1
against illegal drugs is well received by the business sector. “The confidence level among investors has reached an all-time high, better than other countries, since the Duterte leadership took over the government,” Lopez said. “There is much peace and we are lessening the number of illegal-drugs traders, and to me it’s a blessing. Now it’s safer out there on the streets. Even investors—we’re receiving a lot of investment missions—see the confidence here,” the secretary added. The illegal-drugs campaign of the government has resulted in the death of at least 2,000, according to the Philippine National Police. Party-list Rep. Eugene de Vera of ABS said the drop in criminal activi-
Endo. . .
ties is one reason for the strengthened investors’ confidence. De Vera said investors “have been waiting for this peace” in many years now.
Downtrend
Meanwhile, Lopez admitted that closing or suspending operations of mining firms in the country will have a big impact in the country’s economy. He said mining contributes about $600 million to the country’s export activities. Lopez, thus, backed the calls of mining firms to exempt from closure or suspension the operations of firms that are compliant with environmental laws and standards. “There’s an impact if all are closed. There is no need to close all, especially those who meet the standards,” he said.
Continued from A1
This allows contractors to hire workers who will not achieve regular status in the companies where they are actually rendering the service, although they could acquire regular status with respect to the contractor or subcontractor. While the accreditation of contractors is currently suspended by the DOLE, Ofreneo said the DO 18-A should also be suspended in the meantime while the DOLE is studying how to achieve its goal to end contractualization. He said the implementing rules had been changed many times since 1997, and yet, there have been no improvement in the rights enjoyed by workers. “They have to address the issue of why, in the hiring process, there has to be a distinction between regulars and nonregulars, then among the nonregulars there are also classifications, such as probationary employees and fixed-term employees,” Ofreneo said. “In the end, the laws should just focus on giving equal rights to both regular employees and nonregular employees who have yet to be regularized but should have the same rights, such as the right to join a union and collectively bargain with their employers,” he added.
In the same budget hearing, Lakas Rep. Prospero Pichay of Surigao del Norte scored Environment Secretary Regina Paz L. Lopez for closing and suspending the operations of several mining firms in the country, even calling her “crazy.” “It seems you’re not united in the Cabinet. There’s one crazy secretary who wants all mining closed,” said Pichay, apparently referring to Lopez. “If all mining companies will be closed, especially nickel-mining companies, it will have no impact on the country?” Pichay asked. Earlier, the environment chief ordered the suspension of seven mining operations, the majority of which is in Mindanao. Included is Claver Mineral Development Corp. in Surigao del
Philtoa. . .
Continued from A1
packages covering the sights in each region, such as the Cordilleras’ Heritage Warrior, Southern Tagalog Kulinarya Caravan, Rediscover Batanes and Bicol Express Caravan.” These packages start at P8,200 per person. Dubbed as the “longest running travel trade exhibition,” this year’s PTM is already a preview of what the Philippines can show off to the Miss Universe organizers, in terms of exposure of major tourism destinations, according to the Department of Tourism. “For 27 years, the PTM has been the goto event of discerning travel aficionados and young jetsetters looking for the best, yet reasonable, tour packages,” said Tourism Secretary Wanda Corazon T. Teo in a
Norte, which is reportedly owned by Pichay. Reports showed that Pichay took control of the firm in 2015, having acquired a 60-percent stake. Meanwhile, Malacañang said the botched meeting between President Duterte and United Nations United Nations SecretaryGeneral Ban Ki Moon had nothing to do with his criticism of the UN’s interference on the government’s war against drugs. Presidential Spokesman Ernesto C. Abella downplayed speculations why Mr. Duterte declined to meet the UN secretary-general, who requested for a bilateral meeting on the sidelines of Asean Leaders’ Summit in Lao PDR next week. “The President has his own reasons for not meeting up with
news statement. “I have seen it progress in the last two decades, encouraging many people not only to travel, but also to start their own travel and tour business.” She said the DOT is counting on the Philtoa’s support for the Miss Universe beauty pageant, which will be held at the Mall of Asia Arena on January 20, 2017. This year’s PTM, the DOT chief added, is “a preparation, an inventory of all possible sites where we can take the Miss Universe contestants, even those coming from the Philippines, just to watch the pageant.” For his part, Cruz said Philtoa “will do our role in maximizing the potential, to expose and show off what Philippine destinations are during the Miss Universe pageant.” PTM is copresented by the Tourism Promotions Board, the marketing arm of the DOT.
some leaders. This is no reason to speculate about the Philippines’s relationship with the community of nations,” Abella said. Ban’s spokesman, Stephane Dujarric, released a statement announcing that a meeting was requested between Ban and Mr. Duterte, but the President declined. Dujarric said the meeting requested by Ban could not fit into Mr. Duterte’s schedule. The UN had been vocal against the alleged human-rights violations and the extrajudicial killings happening in the Philippines since President Duterte assumed office and declared war against drugs. Mr. Duterte, in response, had criticized the UN’s interference, and even threatened to withdraw the Philippines’s membership from the UN. Such threat, however, was
Zika virus. . .
clarified by Mr. Duterte’s spokespersons as mere rhetoric. While President Duterte will not meet with Ban, he would hold a bilateral meeting with United States President Barack Obama, who had also expressed concern over the extrajudicial killings during the Philippines’s war against drugs. But Foreign Affairs Assistant Secretary Hellen de la Vega said Mr. Duterte is prepared to defend the government’s tough stance against the illegal-drug trade. “I think the President is prepared. That’s why his first statement is to ask President Obama to listen to him. So he can discuss and explain to him the problem that we face as far as the drug problem is concerned. So I think he’s prepared for [the meeting],” de la Vega said. Jovee Marie dela Cruz, David Cagahastian
Continued from A1
In February the World Health Organization declared the spread of Zika a global emergency, and epidemics have been sparked in at least 70 countries. In the last few weeks, it has sickened more than 100 people in Singapore and started spreading in Florida. Zika is mostly spread by a specific species of tropical mosquito, but it can also be spread by sex and through blood transfusions. Researchers hope their new study will help officials plan ahead to possibly avoid some of the worst effects of Zika. "For countries with a finite amount of resources, this may help them use those resources as efficiently as possible," said Dr. Kamran Khan, an infectious diseases physician and scientist at Saint Michael’s Hospital in
Toronto, the study’s senior author. To figure out where Zika might gain a future foothold, researchers examined patterns of people traveling from infected regions in the Americas to Africa and Asia, and combined that with an assessment of local conditions, including mosquito populations. They used the spread of a related virus, dengue, as a model for Zika since the same mosquito species transmits both diseases. Dengue is not spread by sex, like Zika, but mosquitoes are responsible for the vast majority of Zika cases globally. The study was published online on Thursday in the journa Lancet. Some experts pointed out that the expected impact of Zika will depend largely on whether people have any previous exposure to the virus—and that is unknown. AP
Economy
BusinessMirror Editors: Vittorio V. Vitug and Max V. de Leon • Saturday, September 3, 2016
news@businessmirror.com.ph
A3
DHUD to hasten creation of housing road map–VP
T
By Cai U. Ordinario
@cuo_bm
he creation of the Department of Housing and Urban Development (DHUD) will hasten efforts to create a comprehensive housing road map, according to the Housing and Urban Development Coordinating Council (HUDCC). In a news statement released on Friday, Vice President and HUDCC Chairman Maria Leonor G. Robredo said the expression of support by the Duterte administration for the DHUD is good news for the HUDCC. On Wednesday Budget Secretary Benjamin E. Diokno said the Duterte administration supports the creation of the DHUD and is planning to include it in the Legislative-Executive Development Advisory Council (Ledac) meeting this month. “This is a step in the right direction that is crucial to our common efforts of resolving the country’s housing and urban-development needs,” Robredo said. The creation of the DHUD, Robredo added, will make it easier for the government to implement its housing programs. The HUDDC chairman said currently, all housing programs
Concrete solution
Manila Electric Co. linemen install new concrete electric posts in Champaca Street in Roxas District, Quezon City, on Friday to ensure the reliability of power supply in the area. PNA photo by Joey O. Razon
Citem commends Albay crafts marketing strides
T
he Center for International Trade Expositions and Missions (Citem), an agency of the Department of Trade and Industry, has commended what it described as “impressive strides and gains” Albay has attained in the crafts market. The agency said Albay crafts were in fact a huge hit during the 2016 Manila FAME Artisans Village expo earlier this year at the World Trade Center. Manila FAME is the country’s premiere design and lifestyle event, which showcases craftsmanship, design innovations and artisanship in Philippine products. Organized by Citem, the expo is attended by local and global buyers and prospectors. Citem Executive Director Rosvi C. Gaetos, in her recent report, praised Albay’s performance during the April 2016 Manila FAME event, where the province registered dramatic sales hikes from their previous October 2015 edition at the SMX Mall of Asia. The Citem report said Albay’s 13 companies, which participated in the two events have overwhelmingly higher group sales than other group participants from Laguna, Cagayan Valley and Davao Region. The Albay firms include Aim Handicraft, EmEl Mape, Disenio de Craftico, Forcast, JM Handicrafts, Natural Carpet Industry, Ness Crafts, NGC Decor, Prime Legacy, RCB Crafts & Design, Rains Handicrafts, Shelmed Cottage Treasures and Starcrest. The Albayano participants in the Manila FAME were sponsored by Rep. Joey S. Salceda of the Second District of Albay, who was then provincial governor. He encourages local design and craft companies to link up with both global and domestic markets as a means of improving its local economy and tourism. Albay’s total export sales during the last April event was $603,021, accounting for more than 65 percent of the $922,634 entire sales of the Artisans Village expo. For domestic sales, Gaetos’s report said Albay registered a total of P4,700,760, which was more than 66 percent of the combined entire domestic sales of the event. Gaetos’s report said Albay’s export sales of $603,021 for the April 2016 event represented a 164.5-percent increase from 2015’s $228,000, while its 2016 domestic sales of P4,700,760 was 550 percent up from 2015’s P723,000. The province’s 2016’s retail sales of P152,900 for the same period was 3,456 percent higher than the previous year’s event of only P4,300. Gaetos attributed Albay’s significant sales hike to intensive product development by the participating firms; their development of 294 new products showcased in April 2016 under the creative direction of PJ Aranador and Rachelle Dagnalan; improved visual merchandising and product labelling; and change in the event’s venue from SMX to World Trade Center, which was more accessible. Salceda pointed out what he considers as Albay’s more significant achievements during the past two Manila FAME events—the introduction of the local companies to international buyers and the business relationships they are bound to establish, subsequently. He said Albay’s crafts have played a major role in the province’s tourism industry, largely because their raw materials are endemic to the area, and the products were polished by craftsmanship of local artisans and design talents. Albay is now recognized as the fastest growing tourist destination in the country. It was recently honored as a global “new frontiers destination” by the Pacific Asia Travel Association, after winning its 2015 Pacific Asia Travel Association CEO Challenge award.
have to be forwarded to the Office of the President. Before any of these projects can be implemented, Robredo said the Office of the President will have to craft an executive order to undertake the project. “One of the limitations of HUDCC is that, as a coordinating council, unlike departments, we do not have the mandate to execute programs,” Robredo said. “This makes the process more tedious
and longer.” HUDCC estimates showed that, to be able to provide housing for the country’s 1.4 million squatter families in the next six years, the government must allocate P105 billion a year. In a housing forum in Quezon City on Thursday, HUDCC said this is based on rough estimates using the ceiling cost of each socialized housing unit of P450,000. Based on the Department of Budget and Management (DBM), the
country’s total budget for social housing is only worth P21.73 billion in 2017. The DBM said the social-housing program for the informal settlers will be funded through the National Housing Authority’s (NHA) P12.64 billion worth subsidy, which is lower than the 2016 level due to the completion of the housing assistance program for the Supertyphoon Yolanda (international code name Haiyan) victims worth P25.6
billion. Aside from the NHA budget, the proposed budget includes the Department of Transportation’s P7.34-billion budget for the resettlement of those to be displaced by the North-South Rail Project. The national government also said the National Home Mortgage Finance Corp. will receive a P1.46-billion subsidy and the Social Housing Finance Corp., P279 million.
A4 Saturday, September 3, 2016 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
BNPP: Is it worth it?
T
he Philippines is high on the list of countries with the most expensive electricity rates. This has hindered both our ability to become competitive and to achieve better living standards. Higher cost for electricity means higher production costs and causes personal disposable income to be spent on electricity in large amounts. To finally tackle this long overdue problem, Energy Secretary Alfonso G. Cusi announced the possibility of reopening the mothballed Bataan Nuclear Power Plant (BNPP). Speaking before a three-day international conference hosted in Manila this past week, the energy secretary said the country needs to look for the right “energy mix” to secure our energy needs. The right energy mix entails diversifying our energy sources from reliable, environmentally friendly and cost-effective sources. Included in the mix proposed by Secretary Cusi is nuclear power. The energy secretary also stated “the importance of safe and efficient development of civil nuclear power as a base-load power option to clean, high-quality and advanced modern energy.” Constructed in 1976 as a response to the global rise in oil prices, the BNPP was built to supply 625 megawatts of cheap and clean power. Despite spending over $2.3 billion for its construction, the country never got a single watt of energy, as environmental and construction issues, and the 1986 Chernobyl disaster led to its closure. Our debts for the plant were fully paid in 2007 and discussions to restart the plant were stalled by the 2011 Fukushima nuclear accident. Even in its current mothballed status and despite being fully paid for, the Philippine government spends P50 million a year to maintain the plant. It would make economic sense then to just rehabilitate the plant and run it. While certain countries have abandoned their nuclear-power efforts in favor of renewable energy, nuclear power is still the most reliable and cleanest source of electricity. Nuclear power can efficiently generate the same amount of energy as fossil fuels without greenhouse emissions. A single pellet made from uranium used in nuclear fuel can produce the same energy as 149 gallons of oil, or 1,800 pounds of coal. Renewable sources of energy, such as wind and solar, on the other hand, require large tracts of land to generate the same amount of energy. Because these sources are also intermittent, energy generation is not as reliable and depends on base-load sources, such as natural gas. While safety is an issue with nuclear plants, more modern Generation III+ reactors being commissioned in several countries incorporate a lot of safety features that mitigate the effects of older reactors used in Chernobyl and Fukushima. Given the benefits of nuclear energy, should it mean we should immediately restart BNPP? Though nuclear energy has its benefits, we must also look at the long-term costs associated with reopening the BNPP and the time frame. Is it worth spending $1 billion for 625 MW of energy? We should look at this from what benefits us the most and not merely for political or ideological points of view.
Since 2005
BusinessMirror A broader look at today’s business ✝ Ambassador Antonio L. Cabangon Chua Founder
Publisher Editor in Chief Managing Editor Associate Editor News Editor City & Assignments Editor Senior Editors
T. Anthony C. Cabangon Jun B. Vallecera Max V. de Leon Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Lorenzo M. Lomibao Jr., Gerard S. Ramos Lyn B. Resurreccion, Efleda P. Campos
Online Editor Social Media Editor
Ruben M. Cruz Jr. Angel R. Calso
Creative Director Chief Photographer
Eduardo A. Davad Nonilon G. Reyes
Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager
Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro
BusinessMirror is published daily by the Philippine Business Daily Mirror
HOM
Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.
www.businessmirror.com.ph
regional offices n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building,
Rizal Street, Dagupan City CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: 2nd Floor, Penamante Clinic Tiongson Street, General Santos City CONTACT NO.: 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO E-MAIL ADDRESS: homeiloilo@yahoo.com
ADDRESS: 3rd Floor, Eternal Plans Building, Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal Street, Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA E-MAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993
Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila MeMBer of
Legazpi City is ready for business Jemain Tinio Diaz de Rivera
Forward Moving
I
had the opportunity to speak during the Information and Communications Technology (ICT) Innovation Forum 2016 in Legazpi City, Albay. Legazpi City was promoting information technology and business-process management (IT-BPM) careers. The event was graced by Secretary Rodolfo Salalima of the Department of Information and Communications Technology (DICT), Mayor Noel Rosal of Legazpi City, Rep. Hose Clemente Salceda of Albay, Gov. Al Francis Bichara of Albay and President Rosemarie Quinto-Rey of the Albay ICT Association.
Heading the career talks on ITBPM were Penny Bongato of the IT and Business Process Association Philippines (Ibpap), Zeth Dayao of the Philippine Software Information Association, Alvin Juban of the Game Development Association Philippines and Rene Misa of the Animation Council of the Philippines. Legazpi City is now a center of tourism, education, health services, commerce and transportation. Mayon Volcano is one of the Philippines’s most popular icons and tourist destinations. The Philippine Chamber of Commerce and Industry previously recognized Legazpi as the most business-friendly city in Southern Luzon. In 2013 the city was ranked 11th among the most competitive cities in the country. In 2014 it was rated second among the top 3 livable cities in the
country by the National Competitiveness Council and the Asia-Pacific Economic Cooperation. The city government was recognized by the National Disaster Risk Reduction Management Council as a model locality in implementing riskreduction management practices. The city is a major economic hub in the Bicol region. Economic activities in the city include agriculture, wholesale and retail trade, services, manufacturing and mining. Major sources of income include rice, root crops and coconut. The city exports coconut oil, copra cake, perlite and abaca products. Legazpi also has a fast-growing tourism industry focusing on adventure tourism. They are promoting Legazpi as an ideal location for the IT-BPM industry. In 2014 Legazpi’s locally generated income reached
North Korea’s weak spot
B
arack Obama and Xi Jinping have obvious disagreements over how to handle North Korea’s illicit weapons program. China is angry about United States plans to deploy advanced missile defenses in South Korea to counter the threat, while Obama faces pressure to sanction Chinese banks and companies that help sustain Kim Jong Un’s nuclear ambitions. But the two presidents still have plenty of room to cooperate on this issue, if they can zero in on actions that are in both countries’ interests. North Korea’s successful recent launch of a sea-based ballistic missile is depressing proof that the country continues to improve its weapons systems, despite the punishing additional sanctions that the United Nations imposed in March. And it is, indeed, tempting to blame China. Yet, the evidence that China isn’t upholding the most recent sanctions is, at best, mixed; along the border, there are as many signs that China’s long-standing commercial ties with the North have frayed. While violations no doubt continue, at least
some of them are probably due to local officials’ ignoring central government diktats—an all-toofamiliar problem. In any case, it’s unrealistic to expect China to squeeze Kim hard enough to cause the North Korean regime to collapse. That’s simply not in China’s interests. Yet, China does share the US desire to prevent key nuclear- and ballistic-missile technology from reaching the North. The bad news, as new research points out, is that North Korea has recruited more sophisticated
P338.2 million, with total income (including individual retirement account) at P711.1 million. There were 5,055 business establishments in Legazpi as of 2014. Most of these are in the city’s central business district, the Legazpi Port District. Landco Business Park, the first master-planned commercial business district in the Bicol region, opened in 2001. To further boost the local economy, the city government is promoting the establishment of information-technology parks and industrial estates, such as the Embarcadero IT Park, and the City Light Industrial Park, Legazpi City Special Economic Zone, Bicol Regional Agro-Industrial Center and First Legazpi Industrial Estate. Legazpi’s urban lifestyle is slowly modernizing, with several shopping centers, like the Pacific Mall Legazpi, LCC Mall, Liberty City Center, Yashano Mall and Bichara Silverscreens and Entertainment Center. The city has also attracted investments from national retail chains, including Metro Gaisano, SM Savemore, Robinsons Supermarket, Puregold, 7-Eleven, Ayala Malls and SM Supermalls. Legazpi is recognized as one of the “next wave cities” for the IT-BPM industry. The next wave cities are ICT hubs outside Metro Manila identified by Ibpap and the Department of Science and Technology. Legazpi is attracting more IT-BPM firms to put up offices in the city. The city currently has one IT park, the Embarcadero IT Park, which
offers about 8,000 call-center seats that could provide jobs to some 24,000 agents in three shifts. Pioneering the business in the city is the Incubation Center of Southern Luzon Technological College Foundation Inc., which is an extension of Embarcadero’s P1.8-billion IT Park that is the very first IT eco zone in the Bicol region. The biggest locator in Embarcadero IT Park is Sutherland Global Services. Legazpi is a center of education in the Bicol region. It is home to two universities (Bicol University and Aquinas University of Legazpi) and a number of colleges and technicalvocational schools. The training and teaching health institutions in Legazpi include Ago General Hospital, Albay Doctors Hospital, Albay Polyclinic, Aquinas University Hospital, Bicol Eye Center, Bicol Regional Training and Teaching Hospital, Dr. Esteban V. Ante Hospital, Estevez Memorial Hospital, Legazpi Eye Center, Suncore Multispecialty and Diagnostic Clinic, Tanchuling Hospital. Legazpi aims to reach its target of 900,000 tourist arrivals through adventure tourism with the tagline “City of Fun and Adventure,” with a number of activities within the city, including riding an all-terrain vehicle around Mount Mayon, ziplining, skydiving, scuba diving and water sports. Both Mayor Rosal and Secretary Salalima recognized the urgency of improving the Internet connectivity and access to help an emerging city become a center of excellence.
and capable Chinese middlemen to source and deliver such so-called dual-use technology. Rather than travel back and forth across the border, North Korean agents now live in China and work almost entirely through these intermediaries, using Chinese banks. The good news is that this, in theory, makes it easier to disrupt the agents’ operations. Rather than demand that Chinese leaders abandon Kim’s regime, the US should press them to rein in these middlemen as energetically as they would any other citizens who defy their authority. Xi’s busy anticorruption investigators could expand their campaign to border areas to pursue bank officials, customs agents and others involved in the illicit weapons trade. Directing sting operations at counterfeiters and drug dealers could address a domestic law-and-order problem, as well as cut off some of the North’s sources of hard cash. Stronger
signaling from Beijing could help discourage businessmen who might be tempted by North Korean money. If the US were to blacklist a Chinese bank or company, it would be better to first consult quietly with Chinese leaders, to prevent needless friction between the two countries. Other gestures might be more productive: The US could offer to bolster China’s ability to inspect cargo at ports near the border and to track ship traffic to and from North Korea. American officials would want to simultaneously do more to help Southeast Asian governments monitor North Korean agents operating in their countries, so the weapons trade doesn’t just move south. China may be in no mood to cooperate. But if its leaders really want to undermine the case for missile defense, they’d be wise to do all they can to make sure Kim’s missiles don’t work. Bloomberg View
Opinion BusinessMirror
opinion@businessmirror.com.ph
The next huge hack may be your fault
To live merciful: The message of Mother Teresa’s canonization Rev. Fr. Antonio Cecilio T. Pascual
SERVANT LEADER
Leonid Bershidsky
BLOOMBERG VIEW
I
t’s a near-certainty that your organization’s computer system has been or will be broken into. And even if you’re security-conscious and vigilant, you may be to blame.
The overwhelming majority of hacks—including the huge Sony attack of 2014, the recent intrusions into the US Democratic National Committee’s network and, probably, the $81-million Bangladesh Bank heist that pointed to security flaws in the SWIFT bank-transfer data network—all have one thing in common: They started with phishing, an old and tired “social engineering” technique. A link is sent out on email, a social network or a messaging app, someone opens it—and hackers gain access to the network by infecting it with malware. Organizations also have been attempting to train employees to minimize the risk. Last December, for example, the Berlin police sent a fake phishing e-mail asking 466 cops to put their passwords in a “secure password storage of the Berlin police.” More than 250 of the recipients clicked the link and 35 of them provided their credentials.
Cyber security
The almost universal awareness of phishing, however, doesn’t make the scam any less effective. Zinaida Benenson of the University of ErlangenNuremberg in Germany reported on an experiment proving just that at last month’s Black Hat cyber-security conference in Las Vegas. Benenson wrote a phishing message: Hey <receiver’s first name>, here are the pictures from the last week: http://<IP address of our ser ver>/photocloud/page. php?h=<i nd iv idu a l h a sht ag> Please do not share them with people who have not been there :-) See you next time! <firstname of the sender> She sent it to university students in 240 Facebook messages and 158 emails; 56 percent of e-mail recipients and 38 percent of those on Facebook clicked on it, but when Benenson got back to them, only 17 percent admitted clicking. Benenson then designed another study to get more questionnaires. In the new study she didn’t use students’ first names, sending a similar message to 975 e-mail and 280 Facebook recipients. This time, 20 percent of those who got the e-mail and 42 percent of those who received the Facebook message clicked: Phishers know that personalization works. Once again, many of those who clicked wouldn’t admit it, but now Benenson had enough answers. More than 80 percent of her respondents said they knew that clicking on a random link such as this could have dangerous consequences—but that knowledge turned out to be uncorrelated with actual behavior. Of those who clicked the link, 40 percent said they acted out of curiosity, even though they hadn’t attended a party the previous week: They just
BEWARE the Trojan horse. BLOOMBERG VIEW
wanted a peek at some private and supposedly funny pictures; 20 percent opened the message to find out more about the sender. Of those who didn’t click the link, half didn’t do so because the sender’s name was unfamiliar. That’s the correct reaction, of course—but it’s not a safeguard, because if the name had looked familiar to more people, they might have clicked, too. Just 5 percent of those who didn’t click explained that they thought they’d received a private message by mistake and didn’t open the link to protect the sender’s privacy—or just because they weren’t interested. “That is, these people were protected from the would-be threat by their decency or lack of curiosity,” Benenson wrote in her yet-unpublished paper describing the experiments. She added: By a careful design and timing of the message, it should be possible to make virtually any person to click on a link, as any person will be curious about something, or interested in some topic, or find themselves in a life situation that fits the message content and context. Expecting from the users error-free decision-making under these circumstances seems to be highly unrealistic, even if they are provided with effective awareness training. It’s easy to become pessimistic about cyber security in the face of such behavior by advanced Internet users who are well aware of the threat. Ordinary users, just because they are curious or easily distracted, appear to be the most vulnerable element in any computer system, and they are the one that cannot be fixed. As Benenson wrote, “human traits such as curiosity will remain exploitable forever, as humans [hopefully] cannot be patched against these exploits.” Benenson, however, doesn’t want her work to contribute to anti-technology sentiment. “Computers are for users,” she told me. “If we do not have users, we do not need computers. Users should be protected from attacks by secure computer systems. They should not be required to be permanently alert of possible attacks.” The German researcher is certain that a smart attacker can almost always fool a security expert as well as an ordinary user, so it’s important to have an attack detection and recovery plan: It almost makes more sense to think about mitigating the effects of an attack than to concentrate on preventing it. I don’t fully agree: Users do have to be constantly on the lookout. If a home system is broken into, there’s usually no way to detect an attack until it’s too late and your computer is part of a botnet, held for ransom or used to make spurious financial transactions.
Saturday, September 3, 2016 A5
K
nown for being an advocate for the poor and a recipient of the Nobel Peace Prize, Blessed Mother Teresa will be canonized as saint on Sunday, September 4.
Mother Teresa of Calcutta (Kolkata) was born in Skopje, then part of the Kosovo Vilayet in the Ottoman Empire (Macedonia). After having lived in Macedonia for 18 years, she moved to Ireland and then to India, where she lived for most of her life. Mother Teresa founded the Missionaries of Charity, which is now present in around 256 countries, including the Philippines. According to Saints in Mercy: Pastoral resources for living the Jubilee,
Blessed Mother Teresa found the secret and strength to truly embrace every marginalized person with charity in the Eucharist. “Did you see how the priest treats the body of Christ with such love and gentleness during the Holy Mass? Try to do the same in the houses you visit: there you will discover Jesus in the guise of pain,” she was quoted as saying. The canonization of Blessed Mother Teresa will happen a day
before the observance of her 19th death anniversary on September 5, which is also the celebration of the International Day of Charity. It is one of the highlights of this Extraordinary Jubilee of Mercy. This occasion should send a message to the faithful to be inspired to live a simple life and make the Divine Mercy their mission in life, like what Mother Teresa did. She is a model of God’s love and mercy. In his Bull of Indiction of the Extraordinary Jubilee of Mercy, Misericordiae Vultus, Pope Francis calls us to show mercy because mercy has first been shown to us. “Jesus asks us also to forgive and to give; to be instruments of mercy because it was we who first received mercy from God; to be generous with others, knowing that God showers His goodness upon us with immense generosity,” Pope Francis said. To celebrate this auspicious occasion, Radio Veritas will air the live coverage of the Eucharistic Celebra-
tion for the canonization of Blessed Mother Teresa of Calcutta from Vatican City to be presided by His Holiness Pope Francis on September 4, from 4 to 7 p.m. This can also be viewed via live streaming at www. veritas846.ph. Also, for the Filipino devotees of Blessed Mother Teresa, there will be an off-air Holy Mass in her honor at the Our Lady of Veritas Chapel in Quezon City at 12 noon. Her first class relic ex capillis (from the hair) and second class relic ex indumentis (from the clothing) are also available for public veneration at the Veritas Chapel until the day of her canonization.
To know more about Caritas Manila, visit www. caritasmanila.org.ph. For your donations, please call our DonorCare lines 563-9311, 564-0205, 0999-7943455, 0905-4285001 and 0929-8343857. Make it a habit to listen to Radio Veritas 846 in the AM band, or through live streaming at www.veritas846.ph. For comments, e-mail veritas846pr@ gmail.com.
China’s ‘little green boats’ have Japan on alert
I
By Eli Lake | BloombergView
N early August, Japan’s Coast Guard witnessed an unconventional Chinese assault on its territorial waters. According to Japanese officials I met with last week, at least 300 Chinese “fishing vessels” began incursions into the exclusive economic zone around the uninhabited Senkaku Islands, disputed territory administered by Japan but claimed by China and Taiwan, as well.
Japan has seen similar probing activities for years. But in August, the Chinese escalated. There were far more boats than before, and the Chinese sent armed coast guard vessels to accompany these “fishermen.” This may sound fairly benign compared to the shooting wars in Ukraine and Syria. But for Japan, the matter could not be more serious. Its military assesses that many of these sailors are really Chinese irregular militias, similar to the nonuniformed “little green men” that Russia has sent to eastern Ukraine to stir up separatist sentiment. Call them “little green boats.” Nonetheless, Japan has gone out of its way not to take China’s bait and respond militarily. Instead, it sends its own coast guard to escort the boats and inform them of their trespassing over loudspeakers. Diplomatically, Japanese officials have taken to lodging angry, formal complaints in late-night phone calls to their Chinese counterparts, a tactic usually favored by Beijing’s envoys.
There are three reasons Americans should watch the rising tensions in the East China Sea carefully. To start, President Barack Obama in 2014 said publicly the US was bound by its treaty with Japan to come to Japan’s aid if the Senkakus were ever attacked. In this sense, the islands have the same status as the Baltic states in the North Atlantic Treaty Organization alliance. Unlike the red line in Syria that Obama ended up backing away from in 2013, the US would be violating a formal agreement if it did not come to the defense of the Senkaku Islands. Second, the Chinese maneuvers around what they call the Diaoyu Islands appear to be part of its larger strategy to gain control of the shipping lanes of the East China Sea, similar to its construction of artificial islands in the adjacent South China Sea. Since the naval officer and historian Alfred Thayer Mahan wrote his treatise “The Influence of Sea Power on History” in 1890, the US has considered the defense of free
CHOPPY waters BLOOMBERG VIEW
navigation on the high seas to be a pillar of its national security. Finally, the Chinese activity near the Senkakus is another example of the rise of ambiguous warfare, where a state uses irregular forces or nonmilitary means to advance its territorial goals. Kunihiko Miyake, president of the Tokyo-based Foreign Policy Institute for Global Studies, told me last week that China was trying to “win the islands without fighting.” He added: “They know if they fought us, this would be a fight with us and the United States. That’s why they will not physically challenge us. They will use fishing boats with their unofficial maritime militias, but they don’t send military vessels yet.” Evelyn Farkas, a former deputy
assistant secretary of defense who was in my delegation of journalists and policy experts last week in Japan, told me, “What the Chinese military is doing in the South China Sea and the East China Sea resembles, in some ways, the approach of the Russian military in its incrementalism, in its ambiguity about whether it’s civilian or military, and in its challenge to the international community.” This development ought to worry the current and next administrations. When Russia’s little green men swiftly took control of Crimea in 2014, it caught many in the Obama administration off guard. The Japanese are warning the US not to make the same mistake with China’s little green boats.
On digital currencies, central banks should lead By Fan Yifei | BloombergView
I
n recent years digital currencies have shown considerable promise. Research by the People’s Bank of China (PBOC) suggests that the best way to take advantage of these innovations is for central banks to take the lead, both in supervising private digital currencies and in developing digital legal tender of their own. At the PBOC, this effort is under way. In approaching this challenge, the PBOC must carefully consider how to maintain financial stability, encourage innovation, and properly supervise the issuance and circulation of these new currencies. It must also set up sensible institutional frameworks and macroprudential controls. With the proper safeguards in place, China’s central bank can maximize the positive effects of legal digital tender, while minimizing the negatives. With Internet access increasing and encryption technology improving, the conditions are ripe for digital currencies, which can reduce operating costs, increase efficiency and enable a wide range of new applications. Yet they still have some fundamental defects. Their value isn’t stable. Their credibility remains weak. They’re not yet widely accepted. And of course, there’s always potential for negative externalities. Digital legal tender, issued by central banks, could help resolve many of these problems. Such a currency would be guaranteed by state credit, and could enable synchronized applications both online
and off with greater range, convenience and security. Making digital legal tender a reality, though, will require overcoming several challenges. First, the operating framework must be carefully considered. One option is for a nation’s central bank to directly supply legal digital currency to the public, and then manage all issuance, circulation and maintenance services. A second option is to adopt the circulation model of paper money: Namely, the central bank would issue digital currency to commercial banks, the banks would, in turn, provide deposit and withdrawal services to the public, and together they would work to ensure the normal functioning of issuance and circulation. At the PBOC, we are inclined toward the second model, for a few simple reasons. Using the existing system would make it easier for a legal digital currency to gradually replace paper money. It would also encourage commercial banks to participate in jointly administering the new currency, thus appropriately spreading risk, accelerating innovation, and better serving the real economy and the needs of the public. Another challenge is cryptography. Private-sector digital currencies protect transactions with cryptographic algorithms and the use of private-key signatures. Unfortunately, because these currencies enable some degree of anonymity, they’re susceptible to asset losses, which often can’t be refunded. A legal digital currency must solve this problem thoroughly, both by protecting user accounts with cryptography and by
establishing a controlled anonymous system to ensure that transactions can be traceable under certain conditions. A legal digital currency will also require significant research and development to build market credibility and ensure security and efficiency across diverse applications. Strong technical support will be needed, including a reliable accounting technology, trusted protocols, standardized data formatting and dependable digital-signature mechanisms. A secure means of storing value, such as digital wallets, will also be important. Central banks must carefully consider how to control issuance to ensure a stable value, which will be a key factor as monetary authorities compete to develop the most effective approach. Finally, legal digital currency could have a profound impact on the financial system. At present, the effects are difficult to predict. But there are some logically possible results. First, as the monetary structure changes, the money multiplier will increase. Second, demand for real currency will continue to decline, and the conversion of financial assets will accelerate. Third, Big Data analysis will make measuring the velocity of money easier, thus making it simpler to calculate monetary supply and analyze currency structures. Fourth, the cost of know-your-customer and antimoney-laundering requirements should decrease, and supervision should become more efficient. Finally, a common financial environment should encourage innovation. One important concern for the finan-
cial system is that legal digital currency will lead to easier disintermediation, which can influence money creation. Due to the swift transformation from deposits to narrow currency that such technology enables, a financial panic, once begun, could spread rapidly. Appropriate mechanisms must be in place to anticipate such scenarios and limit the risks they pose. Of course, the full impact of a legal digital currency can only be assessed after one is actually in circulation. For now, banks must prudently develop the systems and macroeconomic controls necessary to maximize the positive effects of such a currency, while minimizing the negatives. Since 2014, under the guidance of Governor Zhou Xiaochuan, the PBOC has attached high importance to the development of legal digital currency. It has been conducting in-depth research on key technologies, legal issues, financial and economic impacts, and the relationship between legal and private digital currencies. Internal and external exchanges and corporations are being strengthened, and a research institution has been created to improve the issuance and circulation system, accelerate the development of prototypes, and evaluate the information-technology requirements for such a currency. In this process, we will take a rigorous and scientific attitude to exploring new approaches and practices, open to any safe and effective technologies and methods. We look forward to cooperating with all sectors of society to make China’s legal digital currency a reality.
The Nation BusinessMirror
A6 Saturday, September 3, 2016 • Editor: Dionisio L. Pelayo
news@businessmirror.com.ph
Too little, too late for Yolanda victims–PLCPD
T
By Marvyn N. Benaning Correspondent
HE Philippine Legislators Committee on Population and Development (PLCPD) has slammed the government’s snail-paced work in rebuilding Tacloban City and other areas in Eastern Visayas ruined by Typhoon Yolanda in November 2013.
PLCPD Executive Director Romeo Dongeto said the problem in these areas could worsen dramatically inasmuch as the Duterte administration has cut the budget for housing dramatically, paring it down to P15.363 billion next year from P33.75 billion this year. The big reduction was justified by Budget Secretary Benjamin E. Diokno, owing to the fact that the
previous administration has earmarked a huge sum for the housing program in Eastern Visayas. PLCPD said that, out of the 1.1 million houses destroyed by Yolanda, the government only committed to build 20 percent, or 205,128 houses, which means Malacañang did not intend to complete the rebuilding process. Even the National Economic and
Development Authority (Neda) revealed that of the 205,128 houses to be constructed, the past administration succeeded in completing only 9 percent, or 19,330 houses, as of March 2016. Worse, 87,405 proposed housing units, or 40 percent of the total, have not yet started. Dongeto warned that many survivors have become even poorer as livelihood opportunities have practically disappeared, while basic services have become even scarcer. “Two years and 10 months after the onslaught of Typhoon Yolanda and despite concerted efforts by the government, civil society and international organizations, significant challenges remain in the recovery and rehabilitation of the affected communities and areas. Among others, the rebuilding of houses for Yolanda survivors have particularly been slow and problematic,” Dongeto explained. For her part, Executive Director Edna Co of the University of the
Philippines Center for Integrative and Development Studies (UP-CIDS), said during the forum, with the theme “Housing and Challenges to Housing Service Delivery Under the Duterte Administration” cosponsored by the International Institute for Democracy and Electoral Assistance on Thursday, that “it is necessary for the Duterte administration to employ an accountability tool to improve the quality and ensure the adequacy of the housing units that will be distributed to families victimized by the calamity.” UP-CIDS also launched a book on the shortcomings of the rebuilding program during the same event, held at Mictotel-UP Technohub in Quezon City and attended by Vice President Maria Leonor G. Robredo, who is the chief of the Housing and Urban Development Coordinating Council. Co said stakeholders must regard the Yolanda rehabilitation program as a patriotic duty rather than another bureaucratic function that can
be left to the tender mercies of local government officials. Dongeto said PLPCD will gather local officials from the devastated areas along with officers of nongovernmental organizations (NGOs) and lawmakers on Thursday next week, to discuss the overall efforts to build resilient and stronger communities in the disaster area. Titled “Resettling Communities, Unsettling Realities: The Unfinished Business of Resettling Yolanda Survivors,” Dongeto said the forum starts at 10 a.m. at Max’s Restaurant at the Quezon City Memorial Circle. Heading the list of speakers is Tacloban City Mayor Cristina Gonzalez Romualdez; Oxfam Policy and Campaigns Officer Rhoda V. Avila; Nestor Gadaingan, head of the Coalition of Yolanda Survivors’ Association of Tacloban; Algina Lacaba, leader of internally displaced persons in Tacloban City; and Israel Infante of Oxfam, who will assess the NGO’s housing program.
Sen. Grace Poe, on the other hand, will discuss Senate Bill 1023, or the Resilient Housing and Human Settlements Act of 2016, that she filed for the benefit of all current and prospective disaster victims. Dongeto said that, while Tacloban City resettlement processes admittedly operate on a slower pace, they are still far more advanced compared to other areas destroyed by the typhoon. The Tacloban City government and the National Housing Authority started constructing permanent houses in September 2014, allowing 1,400 families to move to the resettlement areas. “As the construction of permanent houses moves forward, several serious problems and challenges are increasingly evident. Absence of essential services, such as water, power, education, health care and livelihoods, among others, remain a big problem while transfers of families have already begun,” Dongeto revealed.
Comelec mulls over City officials file slew of libel cases vs losing mayoral bet another round of voter registration M By Ashley Manabat @ashleymanabat
T
HE Commission on Elections (Comelec) is eyeing another round of voter registration once the postponement of the barangay and Sangguniang Kabataan elections is made official. In a statement, Comelec Chairman Andres D. Bautista said the postponement of the village and youth council elections will provide the extended time to allow more voters to register. “Those who were not able to register may now have another opportunity to register,” Bautista noted. Around 54 million voters registered for the May 2016 national and local elections. 3,095,187 more registered for the barangay and SK elections. But Bautista said he could not give an specific date for the holding of another registration since the law postponing the October 31 elections has yet to be signed by
President Duterte. “We have no timeline yet, as we are still waiting for further developments on the postponement of the barangay and SK elections,” Bautista explained. On Tuesday the Senate and the House of Representatives have agreed to move the Barangay and SK polls to October 23, 2017. Duterte, for his part, had already expressed support for the moves of lawmakers to postpone the barangay and SK elections. The Comelec conducted the voters registration from July 15 to 30 for the barangay and SK elections, and turned down appeals for an extension. The 16-day voter-registration period, though, was challenged by several youth groups as they asked the Supreme Court to order the extension of the voter-registration period. Joel R. San Juan
Duterte appoints 39 more officials
M
ALACAÑAÑG has released the names of 39 appointees, most of them senior officials, who were recently appointed by President Duterte. Released by the Office of the Presidential Spokesman late Thursday night, those on the list include lawyer Ranibai Dacula Dilangalen and Evelyn Gonzales Lavina, wife of Duterte’s spokesman Peter Lavina in the last election campaign. Both Dilangalen and Lavina, along with Ariel T. Cayanan, have been named undersecretaries of the Department of Agriculture (DA), which is headed by Secretary Emmanuel F. Piñol, a former editor of state-run Philippines News Agency, as well as North Cotabato congressman and governor. Dilangalen was a member of the Duterte for President Movement that launched “Piso para sa Presidente” fund-raising drive in May 2015, which helped to convince then-Davao City Mayor Duterte to run for president. Other presidential appointees in the DA are Assistant Secretaries Hansel O. Didulo, Enrico P. Garzon, Lerey A. Panes and Francisco M. Villano; Eduard Baluca Gongona as director of the Bureau of Fisheries and Aquatic Resources; Alfredo Sarautom Aton as director of the Agricultural Training Institute; Sarah G. Gayona as deputy executive of the Philippine Council for Agriculture and Fisheries; and Victor Barranco Prodigo as executive director of the Philippine Fiber Industry Development Authority. Completing the list of appointees are Department of Foreign Affairs Undersecretaries Ariel Y. Abadilla, Linglingay F. Lacanlale, Enrique A. Manalo, Manuel Antonio J. Teehankee and Jesus I. Yabes; Department of Trade and Industry
Undersecretaries Rowel Sevilla Barba, Ruth Bernardino Castelo, Teodoro Cabacungan Pascua, Ceferino Samson Rodolfo and Nora Kakilala Terrado; and Assistant Secretaries Anna Maria Diaz-Robeniol, Ameenah Abcede Fajardo, Rafaelita Mercado Aldaba and Arturo Pecision Boncato Jr.; Department of the Interior and Local Government Undersecretaries John Rualo Castriciones, Jesus Villanueva Hinlo Jr. and Emily Ortiz Padilla; Office of the President Undersecretary Emmanuel T. Bautista; and Pelagio U. Samson as director of the Philippine Center on Transnational Crime; Department of Health Undersecretaries Archilles Gerard C. Bravo and Roger P. Tong-an; and Assistant Secretaries Agnette P. Peralta and Abdullah B. Dumama Jr.; Presidential Commission on Good Government Commissioner Reynaldo O. Munsayac; Liza Fidelis Fernandez Canada as director III of the Office of Civil DefenseDepartment of National Defense; Marcial Quirico C. Amaro III as administrator of Maritime Industry Authority-Department of Transportation; Antinio Binas Arellano as member of the Philippine government negotiating panel-Office of the Presidential Adviser on Peace Process for peace talks with the Communist Party of the Philippines; and Benjamin Panganiban Perez as member and chairman of the Dangerous Drug Board. Late last month Duterte asked all the presidential appointees of the previous administration to leave their posts after learning that corruption still persists in some government offices. PNA
ABALACAT CITY—A losing mayoral candidate here who claims closeness to President Duterte was haled to court by almost all members of the Sangguniang Panlungsod for libel and tagged her persona non grata in a unanimous resolution approved during its regular session this week. Losing mayoral candidate Pyra N. Lucas, who placed fourth and last with 5,807 votes in the May 9 elections, was declared persona nongrata under SP Resolution 24-2016, after she reportedly “continuously and publicly maligned” members of the council in the Facebook account “Mabalacat
Stop Corruption,” as well as Mayor Marino Morales and Vice Mayor Christian C. Halili. Lucas was also charged with 14 counts of libel by Halili and four counts each of the same offense by 11 city councilors, for a total of 58 counts, before the City Prosecutor’s Office on August 22. The members of the city council, including tribemen representative Ruvilyn Margarito, are demanding P5 million for each count. The verified complaints were received by Prosecutor Nancy FajardoLangit. In a news conference on Thursday, Halili said Lucas cannot simply claim to be a “concerned citizen” since she threw her hat in the political arena when she ran for mayor but lost. Her
constant tirades on Facebook, Halili said, are all baseless and politically motivated, meant to destroy their reputations for her political gain. “She is no longer a concerned citizen because she is now in a different level after she became a candidate for mayor,” the vice mayor said. Lucas has been declared “undesirable” in Mabalacat even if she does not reside in this city anymore and has no known business here, said Halili. Lucas lashed at members of the city council using unprintable invectives and branded them as “drug protectors and thieves” on Facebook. “All documents that Lucas was demanding are all posted at the City Hall and we are very transparent otherwise we will not be recognized
for good governance by the Department of the Interior and Local Government,” Halili said. Lucas also bragged that she will have the mayor and vice mayor removed from office because they are “drug protectors” and have pending cases before the Ombudsman. “As I stand before you today, I have no pending case before the Ombudsman,” Halili said. For his part, Morales said, “The reason we filed cases against Pyra Lucas is because all her allegations are baseless. She just cannot accept the fact that she lost in the elections and the people of Mabalacat had soundly rejected her.” Morales added that he also has no pending case before the Ombudsman, contrary to Lucas’s allegations.
‘More cops, patrol vehicles better than new Alsa Masa’
I
NSTEAD of seeking inspiration from defunct vigilantes, the government should prioritize the hiring of more policemen and buying them enough equipment to combat crime and maintain peace in communities, Senate Minority Leader Ralph G. Recto said on Friday. Recto added that the latest official data from Malacañang show that the National Police will still have 22,046 vacant positions by the end of 2017, belying reports that the undermanned force will step up recruitment to put more boots on the ground. And instead of the expected fund augmentation for equipment and buildings, Recto said the National Police’s capital outlays budget for 2017 has, in fact, been slashed by almost P500 million, or to P3.37 billion, from P3.82 billion this year. “If we really want to give the policemen the help they deserve, then we should give all the equipment they need. Organizing better logistics for
them takes precedence over the organization of volunteer groups,” he said. Recto made the call following the disclosure in the House by the Department of the Interior and Local Government (DILG) that it is planning to revive “nonviolent” Alsa Masa-type groups that will gather intelligence on the drug trade in their barangays. While Recto concedes that there is a need to engage the citizenry in the war against drugs, he stressed that “formal institutions and government agencies must be strengthened first.” “More policemen with more cars, more guns and more communication equipment. Better-equipped barangay tanods. More closed-circuit television cameras and better lighted streets. And a functioning and free 911 system. Ito ang mga dapat unahin,” Recto said. “Without these, then how can citizens’ complaints be acted upon immediately?” Recto asked, referring to the DILG justification that volunteer
groups can forward their reports to the police for proper action. Although the National Police’s 2017 proposed budget will jump by 25 percent, to P110.4 billion from this year’s P88.7 billion, or by an “impressive” P21.7 billion, “there are areas which I think can stand improvement,” Recto said. “For example, if we are creating 10,000 new police positions, which means our authorized troop ceiling will be increased to 184,000, then why just target a fill-up rate of 162,364, which leaves a vacancy of 22,046?” Recto was referring to the increase in the authorized number of police positions from the present 174,410 to next year’s 184,410 but not all of which will be filled. “Why not aspire for a higher target? Why only fill one in three vacant positions? Ano ’yung kinks sa recruitment? Kung halimbawa, kulang ng training areas, baka puwede hiramin ang sa military?” he said.
He explained that filling the projected vacancies will result in each of the 1,489 towns getting an additional 15 police officers. Recto said he welcomes the P3.3billion allocation for capital outlays for 2017, but this is about half-a-billion below what is authorized this year. “It’s good that the transportation equipment outlay for new patrol cars will be increased from P65 million to P525 million, pero kulang pa rin ito, kasi sa mga bayan na lang we lack 1,500 na kaagad,” he said. He said next year’s outlay should wipe out the minimum backlog of 16,140 side arms, “because ‘gunless’ policemen cannot stop crimes.” In his testimony before the Senate, Director General Ronald de la Rosa, National Police chief, upon questioning by Recto, gave a higher estimate of equipment lack, saying they lack “18,000 short firearms, 10,000 long firearms and 16,356 vehicles.” Butch Fernandez
Govt antidrug ads released
T
Instilling good values
The Human Resources and Admininistration Department (HRAD) of Star Tollway Corp. (STC) recently held a two-day workshop for the company’s supervisors on values enhancement and team excellence. Facilitated by Management Visions Inc. (MVI), the workshop was aimed at instilling in the participants the importance of continuing values formation to further guide them in their duties and functions, and to develop deeper awareness of personal responsibility in order to create a positive work environment and promote the all-important spirit of teamwork in the organization. In photo with some of the supervisors are MVI’s Theresa Beltran (seated, center) and STC Marketing Manager Tony Reyes, HRAD Manager Jess Medina and toll-collection audit officer Eloisa Gabriel.
HE Presidential Communications Office (PCO) releases its antidrug advertisements on Friday, as part of the government’s intensified efforts to eliminate illegal-drug trade and abuse in the country. Press Secretary Martin M. Andanar said releasing the advertisements would increase the government’s reach in sending the strong message that the drug menace is continuously destroying lives and, hence, must stop. “The advertisements will target the Filipino families who might be dealing with problems caused by drug abuse. All hope is not lost; the time to end illegal-drug dependence is now,” Andanar said. The advertisements, directed pro-bono by acclaimed director Brillante Maria Mendoza, and endorsed by the Movie and Television Review and Classification Board, will show two different scenarios: a point of view of a father who is a drug user, and an overseas worker mother who has a drug-user son back home. PNA
Sports BusinessMirror
mirror_sports@yahoo.com.ph | sports@businessmirror.com.ph
Reyes, Pague snatch seats in quarters F
ILIPINO-ITALIAN Marc Reyes looked in a hurry to reach the semifinals, while a young Jose Maria Pague savored every tense moment in the quarterfinals on Friday of the 35th Philippine Columbian Association (PCA) Open Cebuana Lhuillier Asian Tennis Federation Tour at the PCA indoor shell-clay court in Paco, Manila. Pague went through a tense third set, where he came from behind, lost the upper hand and finally finished the difficult task of beating Davis Cup veteran Elbert Anasta, 1-6, 6-2, 7-6 (7), to advance to the semifinals of the tournament staged under the aegis of the ATF and Philippine Tennis Association. “I was eager in the first set, so in the second and third, I played it patiently,” said Pague, a 15-year-old student at Zamboanga Sibugay National High School. “I just made sure I returned every shot he made because he doesn’t like long rallies. That way I took him out of his game.” It was a different story for Reyes, 27, who swamped De La Salle University standout Argil Lance Canizares, 6-3, 6-3. Canizares fell in one hour and 26 minutes and hardly looked the same player who booted out India’s Medhir Goyal, 6-1, 6-3, in the first round. Reyes, who beat Mark Ervin Concepcion, 6-0, 6-2, in the opening round, will play the winner of the quarterfinal match between PCA Open champion Patrick John Tierro and Rolando Ruel Jr., while Pague will meet the victory of the Johnny Arcilla-Ronard Joven game. Filipino aces are ruling the roost following the fall of Goyal and countryman Parth Aggarwal, who was brushed aside by Ronard Joven, 6-3, 6-0, in the opening round. Iran’s Mohammadali Mamaghaninia and Iraq’s Mustafa Alsaedi missed the tournament because of visa concerns. The champion will receive $1,200 and the runner-up will pocket $900 in the $7,500 tournament supported by Dunlop, WhirlpoolFujidenzo, Chris Sports, Mary Grace, Aseana City, PVL Restaurant, Maverick, Compass, Babolat, Just Jewels, Rexona, Palm Rock, Coca-Cola Femsa Philippines, Pearl Garden Hotel, Pearl Lane Hotel, Sen. Manny Pacquiao, L&M, Broadway Motors, Stronghold Insurance and Monte. “As expected, this year’s PCA Open ATF Tour showcases the pool of talented and skilled tennis players we have in the Philippines. I am beyond proud that our players are performing great and winning their matches against foreign players,” Cebuana Lhuillier President and CEO Jean Henri Lhuillier, also the Philta chairman, said.
J
Argil Lance Canizares in action in the quarterfinals on Friday. NONIE REYES
A
By Lance Agcaoili
SCANTILY prepared Foton Pilipinas gets its acid test as the Tornadoes tackle Pocari Sweat of Hong Kong at the start of the 2016 Asian Volleyball Confederation (AVC) Asian Women’s Club Championship on Saturday at Alonte Sports Arena in Biñan City. With only two weeks to train for the tournament, the Tornadoes’ chemistry will be tested in the 2:30 p.m. match that will be preceded by an elaborate opening ceremony at 1:30 p.m. Action actually starts with the 11:30 a.m. duel between T. Grand of Chinese Taipei and Malaysia national squad. The other matches pit Jakarta Elektrik PLN of Indonesia against Altay VC of Kazakhstan at 5 p.m. and 4.25 Sports Club of North Korea against Sarmayeh Bank of Iran at 7 p.m. Biñan City Mayor Arman Dimaguila
J.R.U. BOMBERS BRING
DOWN BLAZERS J
OSE RIZAL University (JRU) survived a stubborn College of Saint Benilde, 71-63, to keep its Final Four bid afloat in the 92nd National Collegiate Athletic Association seniors basketball tournament at The Arena in San Juan City on Friday. Cameroonian Abdel Poutouochi scored 14 points, hauled down seven rebounds and blocked two shots, while Paolo Pontejos and Teytey Teodoro fired 14 and 11 points, respectively, to help the Bombers snare their eighth win against six defeats. It was a big turnaround from their last game, when the trio combined for only 16 points in a 60-63 loss to Emilio Aguinaldo College on Tuesday, a game JRU protested after an alleged foul by Remy Morada against Teodoro beyond the three-point arc was nullified. The league’s Management Committee tackled the protest on Friday. JRU Coach Vergel Meneses was just happy with the win. “We just want to win our last games and see what happens,” Meneses said. The Bombers needed a major thirdquarter storm to turn a 38-33 lead at the break to a 62-46 advantage entering the final period. The best the Blazers could do after that was cut the deficit to eight points. The Blazers fell to their 14th straight defeat. Emilio Aguinaldo College (EAC),
ABABA ALBATROSS!
HONNEL ABABA turned a horrible start into an explosive windup, banging in a rare double-eagle on No. 10 on his way to a four-under 68 and a two-stroke lead over erstwhile leader Tony Lascuña and Micah Shin in the third round of the International Container Terminal Services Inc. Splendido Classic at the Splendido Taal Golf Club in Tagaytay City on Friday. Ababa overcame a four-over start after four holes, including a double-bogey 7 on No. 2 as he racked up five birdies and gunned down an albatross on the par-5 10th on a brilliant 3-wood second shot from 255 yards that landed on the green, rolled sideways and into the cup. The former amateur standout, who last won on the Asean Professional Golfers’ Association Tour in Malaysia in 2014, actually headed to the green with no idea of his feat and even took a step back when tournament director Bong Igaya told him that it went out of bounds. “I really can’t believe it went in but it did and that sparked me up all the more,” said Ababa, who bounced back from that faulty start with birdies on Nos. 5 and 7, then followed up his double-eagle exploit with birdies on Nos. 11, 13 and 16. With Lascuña failing to sustain a solid second-round 66 and sputtered with a closing 38 for a 74, Ababa battled back from four down to two up with a 54-hole aggregate of 207 in the P2-million event. “Despite my poor start, I played pressure-free and gained more confidence after I made that double-eagle,” said Ababa, who also hit an albatross in the Indonesia Asian Developmental Tour in 2012. But what Ababa wants to hit now is a first paydirt in two years and it may not need another albatross to anchor his bid but
a gutsy final-round stand against one of the most feared players in the fold. “Just two down, kaya pa yan [I can still do it],” said Lascuña after signing up a 74 that dropped him to second at 209 in a tie with a steady Shin of the US, who carded a 71 in hot but windy condition. Rey Pagunsan, who stayed in contention in the first two days, shot better than many-time former national teammate Lascuña with a 73 but still fell to fourth at 210 in a tie with Elmer Salvador, who missed joining Lascuña and Shin at second with a final-hole bogey. Six down after 36 holes, Salvador rattled
JHONELL ABABA sinks a rare double-eagle.
meanwhile, rolled to its secondconsecutive victory after beating Lyceum of the Philippines University, 73-66, also on Friday. Hamadou Laminou had 20 points, seven rebounds and two blocks, and Sidney Onwubere had a double-double of 16 points and 10 rebounds for the Generals, who improved to a 5-9 record. Ian Alban and Mike Nzeusseu scored 18 and 16 points, respectively, for Lyceum absorbed its ninth loss against its five wins.
JOSE RIZAL University’s Jed Mendoza eludes College of Saint Benilde’s Christian Fajardo. NONOY LACZA
will declare the tournament open, while Larong Volleyball sa Pilipinas Inc. President Joey Romasanta and Philippine Sports Commission Chairman William Ramirez will deliver the opening remarks. AVC Honorary Life President Wei Jizhong will be the guest of honor. TV5 and SMMTV-Thailand are the official television partners, while Crimson Hotel serves as the official residence of the event also supported by SMM Sports, Nike, Senoh, Asics, Mikasa, Foton, BMW and PriceaterhouseCooper. AksyonTV will air the Foton PilipinasPocari Sweat match live, while TV5 will start its broadcast at 3 p.m. Foton is coming off a second-place finish in the 2016 PSL All-Filipino Conference and maintains high hopes behind American imports Lindsay Stalzer and Ariel Usher, and guest players Aby Maraño of F2 Logistics, Jen Reyes of
three straight birdies from No. 2, added another on the eighth and threatened with a tap-in birdie on the 10th. But the reticient Davaoeño shotmaker, seeking to snap a yearlong title spell, missed a couple of birdie chance and missed the green on the 18th and failed to save a 7-footer for par. Like Lascuña and Pagunsan, Korean Seok Jun-min also wavered at the back, dropping a stroke on the 18th for a 72 and solo sixth at 211, while Aussie Peter Stojanovski fired a 71 to tie two-leg winner Jay Bayron, who fumbled with a 73, at 212, five shots off Ababa heading to the final 18 holes of the 72-hole championship. Michael Bibat continued to stumble after an opening 68, barely recovering from a second-round 74 with a 72 for a 214 for ninth, while Paul Echavez, who moved into contention with a 67 on Thursday, birdied the first two holes but cracked at the back with a 41, finishing with a 75 and slipping to joint 10th with Mars Pucay, who carded a 71 for 215.
Lady Stags take on Ateneo gals
S
TORNADOES START BID
Saturday, September 3, 2016 A7
Petron and Jovelyn Gonzaga of RC Cola-Army. Foton Pilipinas also tapped Italian Fabio Menta, a grizzled international coach who called the shots for the Cook Islands national women’s team last year. Menta said that although Hong Kong appears to be a “light team on paper” that lost to the Philippine Superliga All-Star Team in a friendly match in Bangkok in March, they could not take their opening assignment for granted. “Blocking will be the key to the game,” said Menta, who piloted the Tornadoes to a pair of victories in the tough Sealect Tuna Thailand Volleyball League in Sisaket, Thailand, last week. “Hongkong and the other teams are big obstacles if we do not perform well [at blocking].” Menta expressed concern over 6-foot-5 Jaja Santiago, the tallest member of the team, who didn’t have the luxury of practicing regularly with the Tornadoes. She is playing for National University in another league. Gonzaga also trained only thrice and missed the Thailand tournament, as she failed to secure a travel permit from the Philippine Army. “We are working very hard on every single detail and everyone is focused,” he said. “But Jaja trained only once while Jov trained three times. We will not be perfect.”
AN SEBASTIAN College (SSC) and Ateneo face off on Saturday night for the last semifinal berth in the Shakey’s V-League Season 13 Collegiate Conference, with the Lady Stags out to reassert their mastery of the Lady Eagles. Both teams dropped their final quarterfinal matches to end up tied at 2-3 won-lost, setting up the sudden death for the right to join Far Eastern University, defending champion National University (NU) and University of the Philippines in the Final Four of the midseason conference sponsored by Shakey’s. The match is set at 6 p.m. at the PhilSports Arena in Pasig City and will be aired live over ABS-CBN Sports + Action Channel 23 and via streaming on www.sports.abscbn.com, according to the organizing Sports Vision. The best-of-three semifinals series in the Spikers’Turf Season 2 Collegiate Conference also fires off on Saturday, with University of Santo Tomas and NU colliding at 10 a.m. and De La Salle and Ateneo squaring off at noon. The Lady Stags swept the Lady Eagles in their Group A eliminations meeting on August 6, which saw the former National Collegiate Athletic Association champions rally from 13 points down at the end of the third set and rack up the last 15 points to complete a 25-23, 25-22, 25-23 victory. But records are ignored in knockout matches with coaches of both teams expected to come up with key adjustments and surprises to startle the other team’s play patterns for the needed advantage or momentum. Still, SSC seems to hold a slight edge in manpower with Grethcel Soltones, Denice Lim, Katherine Villegas, Joyce Sta. Rita, libero Alyssa Eroa and setter Vira Guillema expected to lead the Lady Stags’ bid along with Nikka Dalisay, Daureen Santos and Dangie Encarnacion. “But we can’t rely on Grethcel [Soltones] too much, otherwise we will be predictable. Everyone must step up,” SSC Coach Clint Malazo said. Ateneo, which lost to NU in last year’s finale of the conference, backed by Mikasa as official ball and Accel as official outfitter, has suffered following the graduation of former two-time Most Valuable Player Alyssa Valdez and Amy Ahomiro, among others, and has been fighting on sheer guts and big fighting heart to stay in the semifinal hunt. Michelle Morente has taken the cudgels for the Loyolabased school but must draw solid backup from the likes of Kim Gequillana, Ana Gopico, Pauline Gaston, Bea de Leon, Jessica Tan, Julianne Samonte and playmaker Julia Morado to advance. The Lady Eagles must also neutralize the power-hitting pair of Soltones and Lim, and try to minimize their errors that have stymied their bid in past matches. Lance Agcaoili
Japan Racing Association Cup up at MetroTurf
E
IGHTH entries will see action in the P.5 million 2016 Japan Racing Association (JRA) Cup on Sunday at the MetroTurf in Malvar, Batangas. The 1,600-meter race, sponsored by the Philippine Racing Commission and hosted by the Metro Manila Turf Club (MMTC), will award P300,000 and a trophy each to the winning owner, trainer and jockey. A P15,000 bonus will also be given to the breeder of the winning horse. Seeing action are Atty. Narciso Morales’s Guanta Na Mera (jockey Mark Alvarez), Benhur Abalos Jr.’s Brennero (Kelvin Abobo) and Absoluteresistance (MM Gonzales), Mark Vincent Geron’s Aerial (Dennis Camanero Jr.), Paul Carpio’s Kundiman (Fernando Raquel Jr.), Nardy
Javier’s Fighting Back (Jonathan Hernandez), Andok’s Litson Corp.’s Fun Day Fest (Jordan Cordova) and Dr. Nick Cruz’s Bite My Dust (Jesse Guce). The runner-up will receive P112,500, while the third and fourth placers will bank P62,500 and P25,000, respectively. The annual JRA Cup is a goodwill exchange race between Japan and the Philippines. It promotes closer working relations between the two countries through horseracing. The JRA held the Asia Week of Racing on July 16 and 17 at the Chukyo Racecourse, where six Trophy Races—Philippines, Singapore Turf Club, Macau, Thailand, Malaysia and India—were staged. MMTC Vice Presidents Ronald Alfeche and Andy Sevilla represented the Philippines in the two-day event in Nagoya. The whole-day racing at MetroTurf was dubbed as the Japan Racing Festival, with four other Trophy Races to be disputed with a guaranteed prize of P120,000 going to the winners. These are the Sogo Hotel Trophy Race, Tecson Farm Trophy Race, Isuzu Trophy Race and DLTB Bus Co. Trophy Race. The JRA will be sending top officials from its Hong Kong Office—General Manager Makoto Iyori and Masashi Shoju— while the Japanese Embassy in Manila will be represented by Minister for Economic Affairs Makoto Iyori and First Secretary Kenji Terada.
Sports BusinessMirror
A8 | S
aturday, September 3, 2016 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao Asst. Editor: Joel Orellana
Jens Keukeleire uses a late burst to pull away and win his first stage at a grand tour by over two bike lengths. AP
BELGIAN’S DAY
ANDY MURRAY: We use our ears when we play. It’s not just the eyes. AP
‘CAN’T HEAR ANYTHING’
As Andy Murray and Marcell Granollers played, there was a constant din during points, an amalgam of the downpour bouncing off the outside of the roof and the murmur of the crowd bouncing off the inside. From a seat in the 10th row parallel to a baseline, the racket-ball impact was rendered silent by a louder version of what you hear when you hold a seashell to your ear. By Howard Fendrich The Associated Press
N
EW YORK—When heavy rain began pelting the closed roof at Arthur Ashe Stadium, Andy Murray couldn’t pick up the usual sounds of a tennis match. Most important, he said, the thwack of a ball coming off his opponent’s racket strings— or his own, for that matter—was completely indiscernible during a 6-4, 6-1, 6-4 secondround victory over Marcel Granollers at the US Open on Thursday. As it is, the new $150-million retractable cover makes the tournament’s main stadium louder because the structure, even when open, traps the sounds of spectators chatting in the stands. When it’s shut, as was the case Wednesday because of showers that delayed play on all other courts for hours at a time, the roof amplifies all of that ambient noise. And when the drops came down early in Murray’s second set, well, it was loud as can be. “You can’t hear anything, really,” 2012 US Open champion Murray said. “I mean, you could hear the line calls.” But that was about it. As Murray and Granollers played, there was a constant din during points, an amalgam of the downpour bouncing off the outside of the roof and the murmur of the crowd bouncing off the inside. From a seat in the 10th row parallel to a baseline, the racket-ball impact was rendered silent by a louder version of what you hear when you hold a seashell to your ear. It’s not simply that it’s an unfamiliar soundtrack for a Grand Slam match. It affects the competition. “We use our ears when we play. It’s not just the eyes. [The sound] helps us pick up the speed of the ball, the spin that’s on the ball, how hard someone’s hitting it. If we played with our ears covered or with headphones on, it would be a big advantage if your opponent
wasn’t wearing them,” explained Murray, whose next opponent is 40th-ranked Paolo Lorenzi. “It’s tricky. You can still do it, but it’s harder, for sure.” Granollers offered a similar take. “We’re not used to playing with that noise.... I was not feeling like I was hitting the ball right. It was difficult also to concentrate. Tough to play,” Granollers said. “There is more noise with the roof, but, I mean, if it’s not raining, it’s OK. With the rain, it was too much.” Like Murray, he acknowledged players will need to learn to adjust. “When it rains, you’re going to get noise,” US Tennis Association Executive Director Gordon Smith said, when asked about the players’ comments about the ruckus. “We will look at potential ways to attenuate some of the noise going forward. It’s going to be louder than it was. We knew that. And it’s something the players will deal with and the fans will deal with.” The good news: At least Murray, Granollers and others were able to play. Rain has often been a schedule-wrecker at the US Open, where the men’s final was postponed five consecutive years from 2008 to 2012. Because of Thursday’s wet weather, action around the grounds was limited until the early evening—but matches kept coming under the roof in Ashe, including Serena Williams’s 6-3, 6-3 victory over American wild-card entry Vania King at night. That pulled Williams even with Martina Navratilova’s Open-era record of 306 Grand Slam match wins; only Roger Federer, with 307, owns more. “It was definitely a little different playing with Ashe closed,” said Williams, who produced 13 aces yet clearly was displeased with winning only 13 of 40 points on King’s first serves. “But it still feels great.” Chair umpire Alison Hughes repeatedly asked spectators to keep it down. “Your voices are carrying to the court,” she said. And: “Ladies and gentlemen, respect the players. Please remain quiet.”
B
ILBAO, Spain—Jens Keukeleire of Belgium won the 12th stage of the Spanish Vuelta, while Nairo Quintana maintained his overall lead on Thursday. Keukeleire, riding for Orica BikeExchange, used a late burst to pull away and win his first stage at a grand tour by over two bike lengths. He completed the hilly 193-kilometer route that traversed four ascents between Los Corrales de Buelna and Bilbao in four-and-ahalf hours. “My director said, ‘If you are there at the end, you can give it a crack.’ And I was good enough to take it over,” Keukeleire said. “What makes it special is that I just became a father four weeks ago, and my girlfriend and son are here with me.” Quintana protected his 54-second lead over Chris Froome, before the race enters three consecutive stages in the Pyrenees Mountains. The two front-runners held off from attacking one another after back-to-back duels on summit finishes, and crossed the line in the large lead group. “There are no easy days. There haven’t been, and there won’t be,” Quintana said. There were no changes among the top 10 times. Quintana’s Movistar teammate, Alejandro Valverde, remained in third place at 1:05 behind. Early in the stage, Froome’s Sky team launched two riders, Peter Kennaugh and David Lopez, in a small breakaway group of six riders. But Astana led the peloton back and swallowed them up by the start of the second ascent over the Alto El Vivero before the flat finish. Friday’s 13th stage is the longest of the three-week race. The 213-km route starting in Bilbao goes over four category-three climbs and briefly dips into France before finishing in Urdax. AP
How much did it cost? Zero!
JAPANESE Prime Minister Shinzo Abe earns a new nickname, “Abe-Mario.” AP
OKYO—How much did Nintendo pay to land that dream marketing opportunity at the Rio Olympics closing ceremony, where Japan’s prime minister popped out dressed as the red-hatted plumber Super Mario? Zero. The Japanese video-game maker behind “Pokémon” and “Zelda” got the coveted stage that corporate sponsors pay millions for after they were approached by those creating the festivities for “cooperation,” not the other way around, Nintendo Co. Spokesman Yasuhiro Minagawa says. “I want to make that clear. We did not pay,” he said in a telephone interview. “And we are not going to become Olympic sponsors either.” Prime Minister Shinzo Abe’s emergence
partly because of the weakening yen but also because planning fiascos, such as decisions to redo designs for both the main stadium and the Tokyo 2020 logo. Organizing Committee Spokesman Motoki Okumura would not give details of the spending for the closing ceremony. Dentsu also declined to comment. “Top Olympic sponsors pay millions of dollars to the IOC [International Olympic Committee] for permission to promote their brands to a massive global audience. Nintendo just did it for free. With Japan’s prime minister as their pitchman. Easily the marketing coup of the Rio games,” said Bob Dorfman, a sports marketing analyst and creative director at Baker Street Advertising of San Francisco. AP
T
in a Super Mario costume was the highlight of the handover section for Tokyo, the host of the 2020 games. The segment was so favorably received in Japan as surprisingly playful and tasteful, given the staidness usually associated with Japan Inc., that Abe earned a new nickname, “Abe-Mario.” Tokyo city official Masahiro Hayashi said Japan’s top advertising company Dentsu Inc. was tapped to produce the handover segment, with a total budget for the Rio Olympics and the Paralympics of ¥1.2 billion ($12 million). He refused to say how much Dentsu was paid, or give other details. The city of Tokyo and the organizing committee are under intense pressure to trim costs, which have ballooned over the years,