Businessmirror September 04, 2018

OPEN FOR BUSINESS: NEGOTIATORS VOW TO FORGE R.C.E.P. BY YEAR-END

The 16 Regional Comprehensive Economic Partnership (RCEP) ministers from Asean, Australia, China, India, Japan, South Korea and New Zealand are seen at the conclusion of negotiations during the 6th RCEP Ministerial Meeting on August 30 and 31 in Singapore. The sessions ended with the adoption of the “Package of Year-End Deliverables” that lays down the blueprint for concluding the RCEP. PHOTO COURTESY OF

By Elijah Felice E. Rosales @alyasjah

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EGOTIATORS of the Regional Comprehensive Economic Partnership (RCEP) have agreed to adopt a resolution committed at concluding the ambitious trade deal this year.

The 16 negotiating parties to the RCEP have concurred to adopt the “Package of Year-end Deliverables” that features the framework for the conclusion of the proposed agreement. The document, developed

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by the Trade Negotiating Committee, also mandated negotiators to put in work in order to advance the political mandate.

“All parties are eager and ready to work toward achieving the targets set by the end of the year, with each country wanting to bring home a good deal for their peoples. RCEP will send a positive signal to the world that the RCEP region is open for business,”Trade Secretary Ramon M. Lopez said.

The RCEP is viewed as the second largest trade deal in history,

See “RCEP,” A8

BusinessMirror A broader look at today’s business

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Tuesday, September 4, 2018 Vol. 13 No. 325

Swine fever alert: BOC flagged on food imports A

By Jasper Emmanuel Y. Arcalas

@jearcalas

GRICULTURE Secretary Emmanuel F. Piñol said he will request the Bureau of Customs (BOC) to conduct mandatory inspections of all food shipments coming from countries affected by African Swine Fever (ASF) to prevent the entry of the fatal animal disease into the Philippines.

“[We will] check all hog raising farms all over the country to ensure that whatever health issues there are would be addressed, especially PED [porcine epidemic diarrhea].

The disease is killing piglets. [We have to address it] so that we will [have] more piglets for the market.”—Piñol

Piñol said he will write to Customs Commissioner Isidro S. Lapeña and urge the BOC to be on “high

By Bernadette D. Nicolas @BNicolasBM

RESIDENT Duterte has gone beyond threatening rice hoarders whom he blamed for soaring prices of the staple: he has already ordered the Department of the Interior and Local Government (DILG) and the Philippine National Police to raid their warehouses, Presidential Spokesman Harry L. Roque Jr. revealed in a radio interview on Monday.

Asked if there was already an order from the President, Roque said: “Yes. He mentioned it [to the] DILG to start with opening warehouses. The President knows who the hoarders are.”

Shortly after delivering his departure statement for his landmark visits to Israel and Jordan on Sunday, the President had once again said that he will not hesitate to ask the police to raid warehouses of rice hoarders, whom Malacañang earlier blamed for the increase in rice prices.

Roque said that when they were still at the airport, the order on the need to open the warehouses was already communicated to the police. “Let us start with a sample so that we can really show that the government is serious against its crackdown on rice hoarding,” he said.

In a speech before the Filipino community in Israel, the President also denied that there is a rice

Manny B. Villar

THE ENTREPRENEUR

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here are some naysayers who warn that the Philippines may struggle, given the recent negative developments in the world economy and the political turmoil in Turkey and Venezuela.

The tit-for-tat imposition of trade tariffs between the United States and China is adding tension to the global economy, while some “disappointing” domestic figures of late have bolstered the fears of cynics that the growth of the Philippine gross domestic product is about to slow down.

See “Swine,” A2

Continued on A6

DOF bullish 2018 growth to be ‘close to 6.8 percent’

By Rea Cu

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The volume of rice approved for private-sector importation by the NFA Council via the minimum access volume

Importations

The President’s statements came on the heels of the NFA Council’s (NFAC) move to approve the immediate importation of 32,000 metric tons (MT) of rice by the private sector via the minimum access volume (MAV) scheme to ease the tightness in rice supply in Zamboanga City, Basilan, Sulu and Tawi-Tawi.

Apart from the 32,000 MT, Agriculture Secretary Emmanuel F. Piñol said the NFAC also approved the purchase of another 100,000 MT of rice from the unutilized MAV allocation. The 132,000 MT represent the unused portion of the 805,200 MT MAV for rice.

A man arranges sacks of NFA rice at the agency’s warehouse in Quezon City in this file photo. As the National Food Authority came under attack with rising prices of the staple amid supply constraints, President Duterte denied any shortage of rice, blaming it on “politics.” He ordered police to raid some warehouses of hoarders to make an example of them. NONIE REYES

Investment pledges in Jan-July down 26.7%

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NVESTMENT pledges in the first seven months of the year declined by 26.7 percent, as commitments to both the Board of Investments (BOI) and the Philippine Economic Zone Authority (Peza) were down by double digits.

Pledges to the BOI and Peza from January to July slowed by 26.7 percent to P313.31 billion, from P427.52 billion during the same period last year. The BOI accumulated 80.5 percent of the total figure. In a report prepared by the Bureau of Trade and Industrial Policy Research, investments applied to the BOI were

₧313.31B

The sum of pledges to the BOI and Peza from January to July 2018, from P427.52 billion during the same period last year down by 14.4 percent to P252.32 billion in the first seven months, from the previous year’s P294.85 billion. On the other hand, Peza suffered a 54-percent slump during the same period to P60.99 billion, from P132.66 billion.

Moreover, onshore investments fell by 29.6 percent to P267.91 billion, from P380.78 billion; while offshore pledges went down by 2.9 percent to P45.4 billion, from P46.73 billion. Five of the country’s top sources of commitments posted significant declines during the seven-month stretch.

Investments from the United States, Singapore and the United Kingdom contracted by 9.1 percent, 65.6 percent and 51.9 percent, respectively. China’s pledges also declined by 18.6 percent, while those See “Investment,” A2

@ReaCuBM

HE Department of Finance (DOF) is optimistic the country can reach a growth of close to 6.8 percent by the end of the year, with the Duterte administration’s “Build, Build, Build” (BBB) program as main driver for the growth.

“Growth outlook: Fitch has an outlook of 6.8 percent, I think we will still be close to 6.8 percent this year. I think the momentum on our BBB is strong and we are really moving quite well in our infrastructure program,” Finance Secretary Carlos G. Dominguez III said, referring to international credit watcher Fitch Ratings.

The country registered a 6.7percent GDP growth in 2017. For the first quarter of this year, the country posted GDP growth of 6.8 percent, which was revised to 6.6 percent; and posted a 6-percent GDP growth for the second quarter.

The government’s target GDP growth for this year is in the 7-8 percent range, according to the Development Budget Coordination Committee (DBCC).

“I think we can grow at a faster rate in the coming months and we believe that we’re not really in danger of overheating at the moment,” Dominguez said.

The finance chief explained that the country’s growth will be sustained by the infrastructure

See “Rice hoarders,” A2

PESO exchange rates n US 53.4750

business news source of the year

PHL will survive global turmoil

132,000 MT

shortage and dismissed the furor raised over the issue as “politics.”

Earlier, the President also warned rice traders not to force his hand into resorting to emergency measures to boost the rice supply, as senators urged him to take to task both the Department of Agriculture and the National Food Authority (NFA) for bungling the rice supply situation.

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Order given to raid warehouses of rice hoarders, says Roque

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second only to the Trans-Pacific Partnership. It is being negotiated by member-states of the Association of Southeast Asian Nations, Australia, China, India, Japan, South Korea and New Zealand.

Negotiators of the RCEP are keen on finalizing the trade deal this year, in spite of disputes between participating countries on numerous issues.

One of these issues is the level of liberalization the 16 economies will have to roll out once the agreement enters into play.

n japan 0.4814 n UK 69.0897 n HK 6.8130 n CHINA 7.8283 n singapore 38.9845 n australia 38.4592 n EU 62.0257 n SAUDI arabia 14.2585

Continued on A8

Source: BSP (3 September 2018 )

News

BusinessMirror

A2 Tuesday, September 4, 2018

Senators won’t rush enabling law for Con-com’s ‘Cha-cha’

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By Butch Fernandez & Jonathan L. Mayuga

(MAP) forum last week that legislators were saying “they do not have the time to study the Constitution but have time to study bills changing the names of streets.”

Sought for comment, Senate

President Vicente C. Sotto III told the BusinessMirror, “That is not a suitable comparison.”

Sotto added: “Changing the Constitution is like changing your house while changing street names is like changing your shirt.” He added that local bills renaming streets that emanate from the House of Representatives “are usually mere requests by local officials.”

Moreover, Sotto clarified that an enabling law for holding a nationwide plebiscite to ratify Charter changes cannot be fast-tracked by Congress before the 2019 elections. “[It is] very difficult to rush because we have to, first, decide in the Senate what to agree on after the Committee in Constitutional Amendments reports out its recommendations,” the Senate leader added. At the same time, Senate President Pro Tempore Ralph G. Recto confirmed that senators are not keen on junking the present form of the government.

“The Senate is against shifting to a federal system,” Recto said when asked to by the BusinessMirror

Piñol said the DA would mobilize all its veterinary personnel to attend to the needs, particularly health issues, of hog farms nationwide. “[We will] check all hog-raising farms all over the country to ensure that whatever health issues there are would be addressed, especially PED [porcine epidemic diarrhea],” he said. “The disease is killing piglets. [We have to address it] so that we will [have] more piglets for the market.”

The DA chief said measures would be rolled out to prevent spikes in the price of pork products.

“Right now we cannot really project [the impact of ASF on meat trade] but we will be preparing [for it].”

Last year the DA ordered the mandatory inspection of all meat imports coming from Brazil after salmonella was detected in some shipments from the Latin American country.

DA are not traditional sources of pork products for the Philippines.

“No worries. Those countries were never allowed before, so no effect,” Cham told the BusinessMirror. Piñol issued last week Memorandum Order 23, which put in place a temporary import ban on pig and pig products coming from China, Latvia, Russia, Ukraine, Romania and Poland, following the confirmation of ASF outbreaks in their respective countries.

Cham said the ban would no longer have an impact on global prices because meat importers have already contracted their pork requirements for the holiday season by this time. This means that imports are not anymore affected by external factors, such as ASF, according to Cham. “Importers who are concerned should have a firm grasp of their landed costs [for their December orders] by now,” he said.

‘No worries’

Caution

can be bought from farmers has also led to the use of P6.1 billion of its funds—for palay procurement —last year to pay off its debts to the Development Bank of the Philippines and the Land Bank of the Philippines.

done immediately. Once the Tariffication Act has been passed and is already working smoothly, that’s the only time the country should consider placing a “sunset provision” on the NFA. “All I know is we all have to be on the same page when it comes to food security and buffer stocks,” Yap said.

As far back as 2011, Budget Secretary Benjamin E. Diokno had said the overhaul of the NFA will not cause any increase in rice prices. However, he said that abolishing the NFA would have been a better proposa l for Congress.

Diokno has been among the strongest endorsers of the notion to abolish the NFA, saying it will encourage local producers, particularly rice farmers, to produce more and for the government to import less.

He explained in a previous forum that if the government is serious in its goal to achieve self-sufficiency, it must invest in rice production by improvi ng i r r ig at ion f ac i l it ies a nd he lpi ng f a r mers pl a nt more through proper training and similar efforts.

@butchfBM @jonlmayuga

ENATORS from both sides on Monday remained non-committal on calls to front-load passage of an enabling law to pave the way for early ratification of Charter changes (Cha-cha) crafted by the Consultative Committee (Con-com)—including the proposed shift to a federal system of government favored by the Duterte administration—before the 2019 midterm elections.

In separate interviews, Senate leaders took issue with reports quoting former Chief Justice Reynato S. Puno, Con-com chairman, lamenting before a Management Association of the Philippines

Swine. . .

Continued from A1

alert” after the Department of Agriculture (DA) banned the importation of live pigs and pork products from Latvia, Poland, Romania, Russia, Ukraine and China.

“We will have to ask them to watch out for all containers loaded with food items coming from China and all other countries with ASF,” Piñol told reporters in an interview after a three-hour meeting wth stakeholders from the livestock sector regarding the ASF outbreaks abroad.

“There will also be an alert status for food items and pork coming from countries with common borders with China,” he added.

Piñol said he has instructed Bureau of Animal Industry (BAI) Director Ronnie D. Domingo to fly to Vietnam and discuss with his counterpart the measures being implemented by Hanoi to prevent the entry of ASF-affected items.

T he ag r icu lture chief a lso said Manila would be “very vigilant” and vowed to ensure that smuggled pork products, such as ham, from China would not enter the Philippines.

“We have to be very vigilant because you know during the Christmas season our usual source of hamon is China,” he said.

High prices. . .

Continued from A8

because we are enjoying the buying price of the private sector but what will happen if the NFA has no buffer stock like what is happening now? Malaysia is closed, there’s no rice in Zambasulta, which has caused them hunger. What more if Vietnam and Thailand will see a drop in their stocks. If China buys all of Thailand’s rice, what will the Philippines buy? Of course it will come running to the farmers. There is really a need to increase [buying prices],” Paraluman said.

One of the possible solutions, Paraluman said, is to strengthen the NFA and transform it into its own department. This will allow the NFA to formulate rice policies and prevent the NFA’s debts from swelling.

The NFA’s debts have increased, according to NFA Administrator Jason Y. Aquino, because of its buy high, sell low policy. While the NFA imports rice and buys it for P29 a kilo, it only sells NFA rice at P25 per kilo.

Aquino said the lack of rice that

Amid the temporary ban slapped

by Manila on the importation of pork products from the six countries, the Meat Importers and Traders Association (Mita) said consumers should not worry about possible increases in the price of imported pork products during the holiday season.

Mita President Jesus C. Cham said the six countries banned by the

Fate of NFA

Ultimately, Yap said, the question on rice prices redounds to discussing the fate of the NFA. This means finally deciding whether the Philippines believes it should still have a buffer stock or not. “[What is] very critical right now is to consider the future of this agency. We must be on the same page on whether we need it or not. If we believe that we have to maintain buffer stocks when the typhoons come, when calamities happen and take their toll on our farm lands, then I believe we must instead find solutions on how to keep NFA going,” Yap said.

Yap, who was also a former administrator of the NFA, told the BusinessMirror that it is not advisable to abolish the NFA at this time.

Yap said if there is really a need to abolish the NFA, it cannot be

However, Cham clarified that the retail prices of imported pork products in December would still depend on the supply-and-demand situation during the period.

He also said global pork prices could still shoot up based on two scenarios: first, if China imports pork from Europe to meet its local demand; and if Beijing would allow the reentry of pork from the United

“Changing the Constitution is like changing your house, while changing street names is like changing your shirt.”—Sotto

to confirm the Senate majority’s position on the issue.

Recto warned that “the Puno draft [on Charter changes] will lead to more government, more bureaucracy, more taxes, lower credit rating, higher interest rates, more red tape, more tension in government, etc.”

This, the Senate President Pro Tempore added, after “we have studied the lousy proposal.”

Senate Minority Leader Franklin M. Drilon also ruled out timely passage by the current Congress of an enabling law to shift to a federal system of government.“There is simply no more time in the 17th Congress,” Drilon said in a text message to the BusinessMirror.

States into China.

“If China buys from Europe due to its current trade war with US, then we will see a decrease in the supply of pork for the Philippines,” Cham said. “But if China makes a deal with the US to buy US pork, then it will somehow ease the pressure on [global pork supply].”

Nonetheless, Cham said his group is still observing how the spread of ASF would affect global meat trade in the coming months.

The United Nations’s Food and Agriculture Organization (FAO) had warned that the ASF in China, which has resulted in the culling of at least 38,000 hogs, could spread to Asia any time.

Simeon S. Amurao Jr. of the BAI earlier told the BusinessMirror that the government would immediately impose a blanket ban on countries with ASF outbreaks, even if the Philippines sources meat from them.

Amurao said they are closely monitoring the spread of ASF in Europe as it could affect Germany, the country’s top source of imported pork.

“In fact, we are paying close attention to Germany because its neighboring countries have already reported an ASF outbreak. If Germany gets hit by ASF then we have to ban them even if it is one of our biggest sources of pork imports,” Amurao added.

Investment. . .

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from the Netherlands fell by 84.4 percent. Japan remained to be the country’s largest source of fresh projects at P13.92 billion, up by 46 percent from last year’s P9.54 billion.

Electricity, gas, steam and air-conditioning supply is still the leading investment industry at P118.1 billion, higher by 86 percent from the previous year’s P63.5 billion.

Three top industries registered double-digit investment declines in the first semester.

Commitments to real-estate activities fell by 67.1 percent to P50.12 billion from P152.55 billion. The same fate was suffered by the manufacturing and construction industries, of which investments went down by 19.5 percent and 74.3 percent, respectively.

Transportation and storage, on the other hand, registered a 301.9-percent investment increase to P38.5 billion, from last year’s P9.58 billion.

The BOI is targeting to obtain P680 billion of fresh projects for this year, after hitting an all-time high of P617 billion last year. Meanwhile, the Peza is aiming to grow by 10 percent.

Elijah Felice E. Rosales

www.businessmirror.com.ph

DOF sees Aug inflation hitting 5.9 percent, cites supply-side challenges

By Rea Cu

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@ReaCuBM

HE Department of Finance (DOF) sees inflation for August hitting 5.9 percent, from 5.7 percent in July this year, with the main drivers to inflation being supply-side challenges.

The inflation rate for August last year was at 2.58 percent.

In its latest economic bulletin, the DOF said, “The inflationary momentum is easing as shown by the forecast deceleration in the month-on-month price change to 0.38 percent from 0.51 percent last month, even as the year-onyear change is projected to hit 5.9 percent.”

Food and nonalcoholic beverages is seen to hit 7.48 percent for August coming from 7.03 percent in July, and vegetables, rising to 17.87 percent, from 16.04 percent in July.

The price of fish is also seen to decrease to 10.74 percent coming from 11.38 percent in July, with rice seen to increase to 5.44 percent coming from 5 percent in the previous month, as well as nona lcoholic beverages to increase to 11.32 percent from 11.10 percent.

For alcoholic beverages and tobacco, tobacco is seen to post the highest increase for the month at 29.91 percent coming from 29.36 percent; while alcoholic beverages

is seen to hit 6.69 percent from 6.24 percent.

“The driver of inflation is largely supply-side challenges which need to be addressed by improving productivity. In the immediate to medium-term horizon, the country needs to enhance food security by taking advantage of international trade. In particular, the QR [quantitative restriction] for rice, which accounts for 9.6 percent of the CPI [consumer price index] basket, is proposed to be tariffied,” the DOF added.

The prices of nonfood items are seen to decrease to 4 percent coming from 4.15 percent in July, with electricity, gas and other fuels contributing the most at 11.21 percent, from 11.54 percent the previous month.

Earlier, the DOF expressed hope that Congress can approve three measures within the year, with two measures under the Comprehensive Tax Reform Program (CTRP), namely Package 1B and Package 2, and the other being the Rice Tariffication Act. House Bill 4904, or the rice tariffication bill, proposes to amend the Agricultural Tariffication Act of 1996, prescribing import volumes to be removed and imports to be opened to private entities.

The House of Representatives approved the measure earlier in the month, and it is now up for Senate deliberations.

Petrol prices up: P0.95 a liter for gas, P1.20 for kerosene

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OR the fourth consecutive week, prices of petroleum products will increase starting Tuesday, September 4.

Oil firms announced on Monday that gasoline prices will go up

by P0.95 per liter, diesel by P1.20 per liter and kerosene by P0.95 per liter.

The announcement was made on Monday afternoon by Phoenix Petroleum, PTT Philippines, Eastern Petroleum, Petro Gazz and Pilipinas Shell. They will implement the price hike at 6 a.m. of September 4.

Other oil firms are expected to follow suit. Local pump prices are mainly influenced by the crude prices in the world market, the peso-dollar exchange rate and taxes.

Over the weekend, prices of liquefied petroleum gas (LPG) also increased.

Eastern Petroleum implemented a P1.80 per kilo, or P19.80 increase, for an 110-kilogram (kg) LPG cylinder on Sunday morning.

Pet ron Cor p., me a nwh i le, i mplemented a P1.95 - per -k g increase in LPG effective 12:01 a.m. of September 1. Auto LPG prices also increased by P1.10 per liter. Petron said the price adjustments in LPG reflect the international contract price for the month of September.

Energy Secretary Alfonso G. Cusi on Friday warned the public about the emergence of illegally LPG-refilled butane canisters,

Rice hoarders. . .

The President’s statements also comes after lawmakers filed a resolution to look into the reported price manipulation by rice traders and into the reported weevil infestation of the rice imported from Thailand and Vietnam.

The President is on an official visit to Israel until September 5 and will go to Jordan after to boost bilateral cooperation on areas of economic development, trade and investment, defense aand security, labor and science.

Roque also denied allegations that the Philippine delegation that went with the President numbered 400 people.

A report from Times of Israel cited

following the buy-bust operation conducted by the Philippine National Police (PNP)-Cebu City Police Office Station 1 in Barangay T. Padilla public market on August 24.

“LPG-refilled butane canisters are extremely dangerous, especially since butane canisters should only be used once. Refilling these tin canisters with LPG could cause fire and also greatly endangers the lives of our consumers,” Cusi said in a statement.

Three individuals were arrested in Parian, Cebu, for trading LPGrefilled butane canisters. They were identified as Ramir Amaca, Romeo Apparece and Romeo Cuevas, according to the report by the DOEVFO. The three were arrested for violating Batas Pambansa 33, as amended by Presidential Decree 1865, after being caught selling and possessing 638 illegally refilled and empty canisters.

DOE-VFO records also show that in Cebu province alone, more than 30 individuals have already been arrested after being caught trading LPG-refilled butane canisters.

The proliferation of this illegal practice is becoming even more pronounced given that 63,055 LPG-refilled and 150,821 empty butane canisters were confiscated in Cebu from early-2017 until August 2018. Lenie Lectura

Continued from A1

information from a Kan state broadcaster that the President is “bringing with him a delegation of 400, including top army and police officials, some of whom are expected to visit Israeli army bases.”

In a message sent to reporters, Roque said the total number of official delegates and accompanying delegates consists of 46 persons aside from the 150 people who were part of the business delegation.

The business delegation traveled on their own accounts, Roque said.

“Not sure where figure of 400 came from,” he said.

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‘Mocha went overboard but has right to free expression’

By Bernadette D. Nicolas @BNicolasBM

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resident Duterte conceded on Monday for the first time that controversial Presidential Assistant Secretary Mocha Uson “went overboard” in her rendition of a controversial pro-federalism campaign jingle, but the Chief Executive stopped short of castigating her.

The President said Uson’s actions were within the ambit of the Constitution.

In a speech before the Filipino community in Israel, Duterte defended Uson almost a month after her video featuring a “pepedederalismo” jingle in a bid to promote and raise public awareness on the administration’s federalism drive.

“You know, it’s like this. There are things, which, I think, went overboard. But just the same as a President, who is sworn to protect the Constitution and enforce it, it is covered with their privilege—freedom of expression,” the President said in a mix of English and Filipino.

He added it is not really his concern whatever Uson say—both as an employee under his office or as private citizen—as long as it is covered by the provision in the Constitution on the freedom of expression.

E a rl ie r, M a l a c a ñ a n g s a id Duterte was “very cool” about the video, although he found it unconventional to get the people’s interest into federalism.

Last month the Presidential Communications Operations Office released a memorandum reminding its officials and employees, including Uson, that they should be “mindful of the content they post or share” on their socialmedia accounts, as well as other publications and news releases their office may publish.

For several times, Uson was bashed and called out for spreading “fake news” on social media.

In January Uson trended on social-media because she said that

Mayon Volcano is in Naga City in Camarines Sur. Mayon Volcano is actually in Albay.

Constitutional Commission Spokesman Conrado I. Generoso earlier said that it would be a big help if Uson can promote federalism since she has many followers.

As of this writing time, the Mocha Uson Blog has 5.69 million followers on Facebook.

The President also defended his recent rape joke, invoking his own freedom of expression.

“They would say I am a misogynist. That is why when you say— there is a rising number of rape cases in Davao. I said, ‘maybe there are lots of beautiful women in Davao,’” he said. “I did not say that all of them were raped. But you are almost mesmerized or tempted. That’s how you control yourself. It is a democracy.

Freedom of expression.”

Last Thursday the President said at a public event that “for as long as there are many beautiful women, there will be many rape cases, too.”

In a news statement, Chief Presidential Legal Counsel Salvador S. Panelo also came to the defense of the President, saying that the human-rights critics and the President’s detractors are “nitpicking” and “making a fuss” about the President’s statement.

“They always distort the intended meaning of the President’s comment. PRRD [President Duterte] was merely priding himself to the fact that Davao, from where he is from and mayor for 23 years abounds with beautiful women and, at the same time, advancing a theory that their being beautiful could be one motivating reason why the rapists sexually abuse them,” Panelo added.

He also noted that the President reveres his late mother and that the President has always protected women’s rights and recognized women by appointing them to his Cabinet and in other offices, such as the Supreme Court.

DENR probes quarry links to recent flooding in Metro

By Jonathan L. Mayuga

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@jonlmayuga

he Department of Environment and Natural Resources (DENR) has created a team that will look into the massive flood that submerged many areas in Metro Manila last month.

Environment Undersecretary Benny Antiporda, deputy spokesman of Environment Secretary Roy A. Cimatu, said the probers composed of representatives of concerned bureaus and agencies of the DENR, such as the Mines and Geosciences Bureau (MGB), Environmental Management Bureau, Forest Management Bureau, DENR Region 4B and local government units (LGUs) of Rizal, Tanay and Rodriguez, Rizal, will look into the reason behind the flooding.

The flooding prompted the DENR chief to suspend the quarrying operations in Rizal province.

In a telephone interview, Antiporda, also the DENR’s undersecretary for solid-waste management and LGUs, said the team will determine whether the quarrying operations in the province, or whether those that operate under the permits issued by the DENR-MGB or concerned LGUs, should be discontinued for good.

“Right now, all quarrying operations in the province are suspended. But what we want to know is whether the quarrying operation is really to blame for the flood. If the quarrying operation is the reason, then the DENR secretary might call for the stoppage of the operations for good,” Antiporda said in a mix of English and Filipino.

To recall, Cimatu stopped all quarrying operations in Rizal province after residents of Marikina blamed the overflowing of the already silted Marikina River to the environmental degradation brought about by unhampered quarrying operations.

But Antiporda said quarry operations in Rizal need to be inventoried, first and foremost.

“As far as the DENR is concerned, there are only three quarrying operations in Rizal. We still don’t know how many quarrying operations are with permits issued by the LGUs,” he added.

Quarrying is normally used to extract raw materials for cement.

Quarrying for rocks, on the other hand, is for the production of gravel, which is needed by the construction industry.

The DENR official is cautious that ordering to stop the quarrying operation may eventually affect the Duterte administration’s “Build, Build, Build” program.

Quarrying is done through surface or open-pit mining method. The DENR has imposed a ban on prospective open-pit mining method for select ores, like gold, copper, silver and complex ore, but exempted other projects using a similar method of extraction, such as nickel and quarrying.

Editor: Vittorio V. Vitug • Tuesday, September 4, 2018 A3

Duterte says sorry to Obama for ‘harsh’ words in 2016

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lmost two years after hurling expletives at former US President Barack Obama for criticizing his war on drugs, President Duterte on Monday apologized, saying he has also forgiven him for meddling in the affairs of the Philippines.

In September 2016 Duterte called Obama a “son of a b­­–––––h” in a forum in Lao PDR after the former American leader raised concerns on how the Duterte administration implemented its aggressive crackdown against illegal drugs.

“Well then it would be appropriate also to say at this time to Mr. Obama that you are now a civilian and I am sorry for uttering those words,” Duterte said in his speech before the Filipino community in Israel.

“No, it was just a plain talkatess

also like yours. We have learned our lessons very well. Nag-ano tayo —nagkakaintindihan tayo [We understand each other],” he added.

Duterte jested about forgiving Obama for criticizing the drug war just as he had forgiven his ex-girlfriends.

“So if it is to your heart to forgive, you forgive. I have forgiven you just like ’yung mga—’yung lahat ng mga girlfriends ko noong binata pa ako [all my girlfriends when I was still single],” Duterte said.

Duterte explained anew that

his reason for cursing Obama was because the former US president “castigated” him about human rights when he should have filed a complaint before the United Nations instead.

Obama said Duterte should carry out his drug war “the right way.”

“So eh sinobrahan niya eh [He went overboard]. If you have…qualms, if you have complaints against me, go to the United Nations. File your complaint there and ask for a hearing,” Duterte said.

“Hindi ’yan diretsuhin mo ako [You don’t come to me straight] you tell me in public that I am wrong blah, blah, blah, blah, blah, blah,” he added.

He said Obama “ought to know the basic rules” of avoiding to criticize a different country’s problems.

“Being a president of the republic…of a republic that is, you ought to know the basic rules. You do not criticize, especially if it is a problem of the country that you are criticizing,” Duterte said.

Duterte is currently in Israel until September 5, the first Filipi-

no leader to travel to the country, upon invitation of Prime Minister Benjamin Netanyahu.

He also met overseas workers in Israel, saying he was “teary-eyed” upon seeing them there.

“Alam mo bihirang-bihira ako umiiyak [You know, I rarely cry] I could remember maybe the times that I cried, when my father and mother died. But rare, very rare,” Duterte said.

“Ito lang ang bisita ko na [This is the only visit where] maybe I will do it again. I really do not know.

But this is the first time napaluha ako na nandito ako sa aking mga kababayang Pilipino [I got tearyeyed in front of my fellow Filipino citizens],” he added.

T he President is t here to strengthen cooperation in areas such as defense and security, law enforcement, economic development, labor, trade and investments.

From Israel, Duterte will fly to Jordan for another official visit from September 5 to 8 upon the invitation of His Majesty King Abdullah II. PNA

Palace denounces 2nd deadly Isulan City blast in four days

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alacañang strongly denounced on Monday the second deadly blast at an Internet café in Isulan, Sultan Kudarat, that left two dead and 11 others injured.

The Sunday explosion came just four days following another explosion of an improvised explosive device that rocked the same city, which also killed three and injured 30 others.

Malacañang said it is also “deeply saddened” on the number of deaths and injuries.

Reported fatalities include 18-year-old John Mark Luda and a 15-year-old victim, who succumbed

to a cardiac arrest while undergoing operation for wounds.

Asked if the latest attack will prompt the extension of martial law in Mindanao, Presidential Spokesman Harry L. Roque Jr. said in a radio interview that it is still too early to make a judgment since the declaration will still last until the end of the year.

“Well, I think t’s still too early since it is in December when this existing martial-law declaration will expire and September just started, but, of course, if these circumstances continue, we will really see that rebellion persists, because that is the legal basis. But we will see, the President

said there is someone scaring the public,” Roque said in Filipino.

Earlier, Malacañang said they are open to the possibility of extending martial law in Mindanao following the first deadly blast.

In a separate news statement, Roque said the President has been kept abreast on all developments by the Philippine National Police, which has already ordered its men to increase visibility and patrol and tighten security.

“We ask the residents to report anything suspicious to the authorities as we bring to justice all culprits behind this dastardly attack,” Roque said.

briefs n.i.a. chief confident of hitting irrigation targets despite 2019 budget cut The National Irrigation Administration (NIA) is confident that it will be able to achieve its development targets this year and next year despite budget cuts.

NIA Administrator Ricardo R. Visaya said his agency is trying its “very best” to fast-track its irrigation development targets this year, which include new areas and rehabilitation and repair of old ones.

Visaya also maintained the same confidence with NIA’s irrigation development targets next year despite a 10.85-percent cut in its 2019 budget.

“With the funds allocated to us, [we are only irrigating] less than 2 percent [of new areas],” Visaya said in a news briefing on Monday.

“If this irrigation will not be part of ‘Build, Build, Build’ then it would take 40 years to cover all the 3.12 million hectares of irrigable areas,” he added.

The attached agency of the Office of the President was able to irrigate a total of 1.887 million hectares as of last year, or 60.35 percent of the 3.128 million hectares of irrigable lands in the Philippines.

For this year the NIA’s target is to irrigate 33,247 hectares of new areas and restore irrigation in 14,460 hectares. Jasper Emmanuel Y. Arcalas

d.e.n.r. okay with proposal for ‘temporary’ use of euro 2 diesel fuel IF it will cushion the economic impact of soaring price of Euro 4-compliant fuel, the Department of Environment and Natural Resources (DENR) will not oppose the “temporary” revival of Euro 2 fuel diesel fuel for the transport sector.

“What we must sit down and talk about is for how long will the government allow its use,” Environment Undersecretary and Deputy Spokesman Benny Antiporda said.

Antiporda told the BusinessMirror that the use of Euro 2 will only have a slight adverse impact to the on going campaign for cleaner air, particularly in Metro Manila.

“As long as it is a temporary measure, we are willing to allow it. But we need to be clear [with the question] up to when are we going to allow it,” he said. Jonathan L. Mayuga

fox to d.o.j.: reverse b.i. order on my deportation AUSTRALIAN nun Patricia Anne Fox on Monday formally asked the Department of Justice (DOJ) to reverse the final decision issued by the Bureau of Immigration (BI) ordering her deportation for violating the terms and conditions of the missionary visa that the agency issued to her.

In her 39-page petition for review, Fox, through the National Union of People’s Lawyers SecretaryGeneral Edre Olalia, insisted that the she did not commit illegal acts that would justify her deportation from the country.

“In a supposedly civilized country that respects and promotes human rights and the well-being of its people, no amount of ratiocination could justify such an order. For there is nothing illegal and political in petitioner’s act of espousing social justice, peace and human rights,” Olalia said.

In fact, Olalia said, if the BI’s order will not be reversed, this would curtail Fox exercise of her religious belief.

Fox, 72, on the other hand, insisted that the activities she joined or supported were neither political nor partisan but were part of her apostolate and missionary work.

Olalia accused the BI of not being objective in resolving Fox’s case, as it gave more weight to President Duterte’s order for her deportation for criticizing his policies. Joel R. San Juan

The President has declared martial law in the entire Mindanao island amid the clashes between the government troops and the Maute Group terrorists in Marawi City May last year.

In Masbate, meanwhile, a homemade bomb also exploded in the province’s pier, damaging speedboats of the Army and the Coast Guard, according to a news statement from the Armys’s 9th Infantry Division.

The bomb went off at around 12:30 a.m. on Monday at Pier Site, Barangay Bapor, Masbate City, and about 50 meters away from a Coast Guard station in the area.

Bernadette D. Nicolas and Rene Acosta

Military starts retrieval operations of grounded navy flagship vessel

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arring no hitches, the military may finally start the retrieval operations for the BRP Gregorio del Pilar as the needed assets, equipment and even personnel are already at the Hasa-hasa Shoal in the West Philippine Sea (WPS), where the Navy’s flagship vessel is stuck.

Military Spokesman Col. Edgard Arevalo said the two tugboats, M/T Trabahador and M/T Vigilant, that were tapped to pull the warship were already in the area, along with officials that oversee the whole operation.

“The salvage master and salvage supervisor of SMIT Salvage & Towing were aboard del Pilar as of this morning at around 0900H [9 a.m. Monday], Arevalo said at a news briefing on Monday.

The military spokesman said the salvaging team was all set to start “rigging lines and gears” for the retrieval operations on Monday afternoon when the tide is high.

The Gregorio del Pilar ran aground while on patrol mission in the WPS last week.

Arevalo said the hull of the vessel, which is resting on the seabead, was intact, although its starboard propeller and port propeller were damaged.

“Per experts’ assessment, the local team can successfully extricate del Pilar from her current situation having taken into account technical matters like tide and current; force required to remove her from present position relative to her weight,” he said.

Arevalo said Commodore Rommel Galang, commander of the Joint Task Force “Goyong,” is overseeing the whole operation, even as other assets of the military are in the area to provide security.

“The team headed by Commodore Galang is confident that it can complete its mission in due time,” he said.

The Maritime Industry Authority (Marina), meanwhile, has launched a probe to determine how a passenger ferry caught fire after docking at the Taloot Port in Cebu on Sunday.

In a media advisory, Marina reported that along with the Philippine Coast Guard, it has assisted all 92 passengers and rescued 29 crewmen from the MV Lite Ferry 28.

“Initial report revealed that the fire emerged from the ferry’s engine room at 11:45 a.m., while it was about to dock at the Port of Taloot in Argao, Cebu. The ship left Tagbilaran Port in Bohol at 8 a.m.,” the advisory read.

According to the advisory, a private cargo ship, LCT Miami, immediately rescued and transported all passengers and crew to the port.

“Two more vessels—PCG’s BRP Capones and Bureau of Fisheries and Aquatic Resources MCS 3007—rendered assistance and firefighting operations,” the statement read.

The distressed passenger vessel was towed ashore at around 12:45 p.m., the Marina said. Rene Acosta and Lorenz S. Marasigan

A4 Tuesday, September 4, 2018 • Editor: Vittorio V. Vitug

Economy BusinessMirror

Oil firms dodge DOE circular to unbundle petro fuel cost

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By Lenie Lectura

@llectura

plan to issue a circular requiring oil firms to unbundle the costs of petro fuel has been put on hold pending review of the proposed policy, according to a Department of Energy (DOE) official.

“It [the plan to issue a circular] is currently being reviewed further because there are worries about potential issues raised by the stakeholders regarding claims of anticompetitive behavior,” said DOE Assistant Secretary Leonido Pulido last week.

Energy Secretary Alfonso G. Cusi said the objective of the proposed circular is to guide the consumers in making informed decisions and explain to consumers the cost components of petroleum products.

“There are costs that can’t be divulged by industry players. On our part, the oil industry is deregulated. We just want the public to understand the composition of fuel pricing for them to be better informed so they will make the right choice,” he said in a separate statement.

The DOE had planned to issue the circular at end-June. However, the agency had to conduct another round of focus group discussions with the stakeholders.

The draft policy enables the unbundling of the base prices of petroleum products, namely, gasoline, automotive and industrial diesel, kerosene, jet fuel, bunker fuel oil and household and automotive liquiefied petroleum gas. This is the first time that the government, through the DOE, will require oil companies to make public the breakdown of the costs that go into the pricing of fuel.

The DOE also wants oil companies to provide a weekly notice of the price adjustments—whether to decrease, increase or keep the price—alongside the computation of their products’ components based on the elements involved in the international price movement, the biofuels cost and the operational cost recovery.

Independent Philippine Petroleum Companies Association (Ippca) President Bong Suntay had explained that each oil firm has its own proprietary elements of cost, which should be kept

confidential because this allows an oil firm to have a competitive edge over the other.

“It is like asking KFC [Kentucky Fried Chicken] to give out their recipe and divulge the seven secret herbs and spices used in their chicken. Definitely, each one has their own computation, which may differ from each other. Various factors would also have an impact, where the product is sourced, when it was sourced, the amount purchased, the size of the vessel, among others,” Suntay said.

The Ippca official said that if the DOE wants to extrapolate, then it can start from the published Mean of Platts Singapore (MOPS). Suntay also said that feeding the DOE with so much information could be tedious.

“The premium—ocean freight and trader margin—also differs from each company, depending on various factors, such as term of payments, size of vessel and loading origin. Forex also differs depending on cost of purchaser.

Prices now change weekly.

“To require the industry players in a deregulated industry to break down their pricing would put another layer of tedious reportorial requirement, which would really be of no use in a deregulated industry,” Suntay said.

The Philippine Institute of Petroleum had said that the extent of information that the government requires from them, and the manner by which it requires to do so, are “inconsistent with the policy of deregulation.”

www.businessmirror.com.ph

Data Incident Response policy: Be ready to act Scope

The Incident Response Policy applies to all employees, executives, contractors and vendors with access to any part of the information technology network of this enterprise, regardless of role. Any intrusion, no matter how it’s discovered, must be reported under the procedures outlined by the data breach policy you must create.

Definition

By Henry J. Schumacher

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E are living in more complex times. While we are enjoying digitalization in business and in our private lives, the dangers of hacking, loss of sensitive data, identity loss, privacy infringement and cybercrime increases substantially.

Every enterprise needs to establish a plan of action to assess and then recover from unauthorized access to its network. Such policy should provide a foundation from which to start building your specific procedures, as required by the Philippine Data Privacy Act and the General Data Protection Regulation of the European Union.

Some ideas for the Data Incident Response Policy:

Policy details

Whether initiated with criminal intent or not, unauthorized access to an enterprise network is an all too common occurrence. Although network intrusion and protection hardware and software systems can prevent or mitigate many of these incidents, even the best security will suffer a breach at some point. When an intrusion is detected, the incident response team must act quickly to protect the integrity of the enterprise’s data according to the procedures outlined in the policy that you have to establish. Additionally, people and organizations whose data have been affected in the breach must be informed, as well as the regulatory authorities.

The Incident Response Policy will have to go into effect immediately after security for any enterprise information technology system or communication network is determined to be compromised. An incident requiring action is defined as an adverse event that has caused, or has the potential to cause, damage to the assets, reputation or personnel of the enterprise.

An incident includes, but is not restricted to, the following: The loss or theft of data or information; The transfer of data or information to those who are not entitled to receive that information; Attempts (either failed or successful) to gain unauthorized access to data or information storage or a computer system; Changes to information or data or system hardware, firmware or software characteristics without the knowledge, instruction or consent of the enterprise; Unwanted disruption or denial of service to a system; and The unauthorized use of a system for the processing or storage of data by any person.

It is absolutely necessary to understand that breach policies and procedures have to be established to avoid heavy fines and loss of reputation resulting from noncompliance.

Seeing data breaches happening on a daily basis, it is essential to seriously assess the data privacy protection and cyber protection procedures in the organization. The gap analysis and risk analysis should indicate where system improvements are needed—not only on C-Level but throughout the organization (from top to bottom), including all subsidiaries and stakeholders.

You have to ensure you have the right framework in place to gather relevant information from all corners of your organization and then act on it. To achieve that and monitor the behavior of staff in your organization, automation is needed.

The tool is available in the Philippines. The software that allows this to happen and is capable to guide you throughout the journey of data privacy protection is called Data Protection Management System, or DPMS. We would love to help you design a fully risk-based approach to compliance.

Contact me at Schumacher@eitsc.com.

DA chief sees 3.12% palay-output decline if farmers won’t be able to replant by Sept

By Jasper Emmanuel Y. Arcalas @jearcalas

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he countr y’s pa lay output this year cou ld fa l l by 3.12 percent to 18.68 mil lion metr ic tons (MMT) if ty phoon-hit farmers in Central Luzon will not be able to replant b y m i d - S e p t e m b e r, a c c o r d ing to A g r icu lt ure Secretar y Emmanuel F. Piñol.

Piñol said the Depar tment of Agr icu lture (DA) has been ex pecting for another record palay har vest this year of about 19.4 MMT, but the feat may not be achieved due to possible fewer plantings. “ T h is yea r we a re e x pecting a h istor ic ha r vest of 19.4 mi l l ion metr ic tons, about 2 0 0 , 0 0 0 m e t r i c t o n s [M T ] h igher t ha n l ast yea r’s [19.28 MM T],” P i ñol told repor ters in a n inter v iew on Mond ay at t he House of Represent at ives.

“But Cent ra l Lu zon was h it by ser ies of habagat [or mons o on e n h a nc e d r a i n s], t hu s t hat 19.4 m i l l ion met r ic tons w i l l be cond it iona l. If ou r f a r me rs a re a ble to re pl a nt u nt i l m id- September, t hen we w i l l be able to rea l i ze t he 19.4 million metr ic tons, which w ill be t he highest aga in in histor y of r ice indust r y in t h is cou nt r y,” Piñol added.

In 2017 the country produced 19.28 MMT of palay, which was 9.37 percent higher than the 17.63

MMT recorded output in 2016, according to the Philippine Statistics Authority (PSA). This was the highest recorded palay production by the Philippines ever.

Central Luzon, the countr y’s r ice g r a n a r y, a c cou nt e d for 18.85 percent of the record-high palay output last year, according to the PSA. The region’s palay output in 2017 reached 3.635 MMT, which was 8.7 percent higher than the 3.343 MMT it produced in 2016.

“If [Central Luzon] farmers will not be able to replant by midSeptember, then the worst case scenario would be a reduction of 600,000 metric tons [in our production],” Piñol added.

The possible fall in the country’s palay output is equivalent to about 400,000 MT of rice, according to the agriculture chief.

The country’s palay production in the first half reached 8.713 MMT, 1.68 percent higher than the 8.569 MMT recorded output in the January-to-June period of 2017. PSA data showed that this is the highest first-half palay output recorded by the country ever.

Zambo rice supply

The National Food Authority (NFA) on Monday said it has doubled its rice distribution to Zamboanga City to 4,000 50-kilogram bags per day to arrest the spiking prices of the staple in the area due to the lack of supply.

The volume, according to the NFA, is about 80 percent of the city’s daily rice requirement of about 5,340 bags.

“We do not expect to immediately lower the prices of commercial rice in the area, but with the steady presence of NFA rice, we are providing an alternative cheaper but good quality rice variant for our poor and marginalized sectors,” NFA Administrator Jason Aquino was quoted as saying in a new statement.

Data obtained by the BusinessMirror showed that the country’s total rice inventory as of August 30 was pegged at 2.051 MMT, which would last for 64.57 days.

Of the total rice inventory, about 48 percent were held by households, while 46 percent were in commercial warehouses.

Rice inventory held by households reached 992,420 MT, which is equivalent to 31-day of national daily requirement. Rice stocks in commercial warehouses were pegged at 945,100, which is about a monthlong of the country’s daily national requirement.

On the other hand, rice stockpile held by the NFA was only at 114,180 MT, which is equivalent to only 3.57 days of the country’s national daily requirement.

The country’s national daily rice requirement is about 32,000 MT. Piñol has repeatedly stated that there is no rice shortage in the country but admitted that retail prices are spiking due to market speculations of traders.

www.businessmirror.com.ph

The World BusinessMirror

Trade-war fears hit European factories as global trust wanes

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uro-area manufacturers saw order growth decelerate to the weakest pace in two years after renewed concerns over trade prospects hit confidence.

Purchasing Managers’ Indexes from across Europe signal business sentiment is waning, threatening to harm the economy at a time when price pressures are building after years of subdued growth. Momentum is also weakening in China, while output continued to contract in South Korea.

The reports come amid threats

by Donald J. Trump to slap new tariffs on Chinese exports and

tear up an agreement with the European Union to work toward a new trade order without escalating protectionism. European Central Bank official Olli Rehn labeled the US president’s latest push “regrettable” and urged him to stop “unnecessary rhetoric” that accuses policy-makers in both regions of manipulating their exchange rates.

P u rc h a si ng Ma n agers’ I n-

dex for manufacturing in the euro area dropped to 54.6 in August from 55.1 in July, IHS Markit said on Monday. The reading matches a previous flash estimate.

“The business mood has become more unsettled during the summer,” said Chris Williamson, chief business economist at IHS Markit.

Risks of new tariffs are hurting sentiment, and “the expansion is looking increasingly uneven.”

Diverging trend

W illiamson is particularly worried about Italy, where uncertainty about the populist government’s fiscal plans has roiled financial markets. The thirdlargest euro-area economy saw growth decline sharply in August, putting it on course for the weakest quarterly performance in

almost two years. Momentum in Spain may be the worst in almost five years.

At the same time, sur veys still signal “solid expansions” for Germany, and to a lesser extent France, Williamson said.

Pr ice pressures are strong across the 19-nation bloc. In Germany manufacturers raised selling prices for a 24th consecutive month. In the Netherlands firms linked higher prices to capacity constraints, and delivery times in Spain continued to increase.

While the euro-area economy should be able to maintain its 0.4-percent growth pace in the three months through September, waning optimism “raises questions” over whether that trend can continue in the rest of the year, Williamson said. Bloomberg News

Myanmar court sentences Reuters reporters to 7 years in prison

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A NG ON , My a n m a r — A Myanmar court sentenced two Reuters journalists to seven years in prison on Monday for illegal possession of official documents, a ruling met with international condemnation that will add to outrage over the military’s human-rights abuses against Rohingya Muslims.

Wa Lone and Kyaw Soe Oo had been reporting on the brutal crackdown on the Rohingya when they were arrested and charged with violating the colonial-era Official Secrets Act, punishable by up to 14 years in prison. They had pleaded not guilty, contending that they were framed by police.

“Today is a sad day for Myanmar, Reuters journalists Wa Lone and Kyaw Soe Oo, and the press everywhere,” Stephen J. Adler, Reuters editor in chief, said in a statement. He said the charges were “designed to silence their reporting and intimidate the press.”

The case has drawn worldwide attention as an example of how democratic reforms in long-isolated Myanmar have stalled under the civilian government of Nobel Peace laureate Aung San Suu Kyi, which took power in 2016. Though the military, which ruled the country for a half-century, maintains control of several key ministries,

Suu Kyi’s rise to government had raised hopes for an accelerated transition to full democracy and her stance on the Rohingya crisis has disappointed many former admirers.

As the verdict was announced in the hot Yangon courtroom, Kyaw Soe Oo’s wife started crying, leaning into the lap of the person next to her. Outside the court, police and journalists shouted as the two Reuters reporters were led to a truck to be taken away.

“This is unfair,” Wa Lone told the crowd. “I want to say they are obviously threatening our democracy and destroying freedom of the press in our country.”

Kevin Krolicki, Reuters regional editor for Asia, said outside the court that it was “heartbreaking for friends and colleagues and family of Wa Lone and Kyaw Soe Oo, who in addition to the outrage many will feel, are deprived of their friends and colleagues, husband and father.”

Wa Lone, 32, and Kyaw Soe Oo, 28, both testified they suffered from harsh treatment during their initial interrogations after their arrests last December. Their several appeals for release on bail were rejected. Wa Lone’s wife, Pan Ei Mon, gave birth to the couple’s first child in Yangon on August

10, but Wa Lone has not yet seen his daughter.

The two journalists had been reporting last year on the brutal crackdown by security forces on the Rohingya in Myanmar’s Rakhine state. Some 700,000 Rohingya fled to neighboring Bangladesh to escape the violence targeting them after attacks by Rohingya militants killed a dozen members of the security forces.

Investigators working for the UN’s top human-rights body said last week that genocide charges should be brought against senior Myanmar military officers over the crackdown.

The accusation of genocide was rejected by Myanmar’s government, but is the most serious official recommendation for prosecution so far. Also last week, Facebook banned Myanmar’s powerful military chief and 19 other individuals and organizations from its site to prevent the spread of hate and misinformation in connection with the Rohingya crisis.

“Today’s verdict cannot conceal the truth of what happened in Rakhine State,” Tirana Hassan, Amnesty International’s director of crisis response, said in a statement on Monday. “It’s thanks to the bravery of journalists like Wa Lone and Kyaw Soe Oo, that the

military’s atrocities have been exposed. Instead of targeting these two journalists, the Myanmar authorities should have been going after those responsible for killings, rape, torture and the torching of hundreds of Rohingya villages.”

Dozens of journalists and prodemocracy activists marched on Saturday in Yangon, Myanmar’s biggest city, in support of the reporters. But in the country at large, with an overwhelming Buddhist majority, there is widespread prejudice against the Rohingya, and in the government and military, there is near-xenophobic sensitivity to foreign criticism.

Myanmar’s courts are one of the country’s most conservative and nationalistic institutions, and the darkened political atmosphere had seemed unlikely to help the reporters’ cause.

The court earlier this year declined to stop the trial after an initial phase of presentation of evidence, even though a policeman called as a prosecution witness testified that his commander had ordered that documents be planted on the journalists. After his testimony, the officer was jailed for a year for violating police regulations and his family was kicked out of police housing. AP

Editor: Angel R. Calso • Tuesday, September 4, 2018 A5

China’s consumers are on point to defend economy from Trump

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or the growth driver that will keep the world’s secondlargest economy on track this year, look beyond Beijing or Shanghai.

Life for many in China’s most sophisticated consumer markets is getting harder, with soaring rents gnawing at disposable incomes.

As Donald J. Trump’s trade war with China begins to threaten the economy in earnest, with tariffs on another $200 billion of goods potentially arriving this week, the resilience of the economy will depend to a large extent on the confidence, or otherwise, of shoppers outside those zones.

Take Fu Ran, a 29-year-old architect in Beijing. His rent already sucked up about half his monthly income when he was told last month that it would increase another 30 percent, to 4,000 yuan a month. Though he trained at the prestigious Tsinghua University nearby, Fu now mocks himself as “highly educated, but broke.”

With little funds left each month Fu says he’ll have to cut expenses on dining out, socializing and travel. His case resonates with the so-called consumption downgrade that’s become part of socialmedia chatter. But as consumption, including some government spending, now contributes more than two-thirds of annual output growth, such a development matters for policy-makers.

Elsewhere, things are different though, and the massive shift of China’s population upward in the wealth stakes is still continuing.

While retail sales growth slowed sharply in 2018 to below 9 percent year-on-year, that may not capture the full picture and, indeed spending as recorded by the government’s quarterly household survey has accelerated.

“Many people might feel the pressure to cut expenses, for example like young graduates hit by the rising rents, or the savers who lost money due to defaults of peer-to-peer lending platforms,” said Tommy Xie, an economist at Oversea-Chinese Banking Corp.

Ltd. in Singapore. “But if you look at spending on overseas tourism, which is a good indicator of how wealthy people feel about themselves and how optimistic they are, the number is quite sound.”

Tourism is indeed holding up,

with 71.3 million visits abroad made in the first half of this year, up 15 percent on the year. But getting a reading on the ups and downs of people’s readiness to spend in China is still not easy. There’s no closely watched monthly gauge of consumer sentiment as in the US and high-frequency data like retail sales don’t cover the full range of spending in a modern economy, such as online shopping and services like travel, education and health care.

Slowing Samsonite sales

That leaves executives with an incomplete picture when estimating their chances of success—a bad state of affairs when an extra shock like the tariffs comes along. Kyle Francis Gendreau, chief executive officer of luggage-maker Samsonite International SA, said in an interview last week that trade-war noise will translate into slower sales growth for his company in China this year.

In smaller cities, where cost-ofliving pressures are less, people are still upgrading lifestyles.

In Nanjing more than 1,000 km away from the capital in the southeast, 33-year-old Guo Ying has just bought a BMW 520 model. It cost him 420,000 yuan ($61,480). An engineer and a father of a preschooler, Guo chose to pay in installments, but overall he felt comfortable with the spending.

The divergence between big cities and smaller ones shows up in surveys. Data analytics company Nielsen’s China Consumer Confidence Index, for example, saw second-tier and third-tier cities outperforming first-tier cities, which reported a decline of confidence in the second quarter.

Spending power slowdown

Fu and Guo together make a fuller picture of China’s consumption culture. There is evidence that the nation’s spending power may weaken in the short term, but a derailment of the nation’s broader shift to an economy driven by consumption rather than exports and investment is far fetched.

Wang Tao, head of China economic research at UBS AG in Hong Kong, says that although consumption is likely to slow further into 2019, the underlying trend should continue. Bloomberg News

Family, friends say final goodbye to McCain

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NNAPOLIS, Maryland— Sen. John McCain’s final journey ended on a grassy hill at the US Naval Academy within view of the Severn River and earshot of midshipmen present and future, and alongside a lifelong friend.

A horse-drawn caisson carrying the senator’s casket led a procession of mourners from the academy’s chapel to its cemetery on Sunday following a private service. The senator’s widow, Cindy, and his children were among those who walked behind the caisson.

Joining them were family and friends as well as members of McCain’s Class of 1958 and military leaders.

T he US Nav y band pl ayed marches along the way and several hundred Naval Academy midshipmen lined the path. A flyover of military aircraft in “missing man” formation honored the Navy pilot who was shot down over Vietnam and held more than five years as a prisoner of war.

After the American flag was removed from the casket, a grieving Cindy McCain pressed her cheek to its surface and McCain sons Jimmy and Jack shared a hug.

Defense Secretary Jim Mattis presented flags to Cindy McCain and Roberta McCain, the senator’s 106-year-old mother.

The burial was private as per the wishes of McCain, the Arizona Republican and 2008 presidential nominee died on August 25 from brain cancer at age 81.

Those offering tributes or readings during the funeral service included Sen. Lindsey Graham, R-S.C.; McCain sons Jack and Douglas; retired Gen. David Petraeus, former CIA director; and Mark Salter, McCain’s longtime coauthor.

Petraeus said McCain was a man of “great courage, unshakable determination, and unwavering devotion to our country and those who defend it,” according to remarks released by the family.

Jack McCain said of his father, “He fought hard, obstinately, exuberantly because he liked to fight, but more important, because he believed in what he was fighting for.”

He later added, “My father fought and suffered, endured defeats, rose from the ground and fought again to keep faith with his heroes, to safeguard the country he loved and her causes, to be a better man, and

to make a better world.”

Earlier, as the hearse carrying McCain passed through a gate and into the academy, there was loud applause from the several hundred people lining the street outside on the hot and muggy summer day.

Many held their hands over their hearts and waved American flags.

Some shouted, “God bless you.”

People in the crowd held signs that read “Senator John McCain Thanks For Serving! Godspeed” and “Rest In Peace Maverick.”

For his final resting place, McCain picked the historic site overlooking the Severn River, not Arlington National Cemetery, where his father and grandfather, both admirals, were buried.

Years ago Chuck Larson, an admiral himself and an ally throughout McCain’s life, reserved four plots at the cemetery—two for McCain and himself, and two for their wives, now widows. Larson died in 2014, and McCain wrote in a recent memoir that he wanted to be buried next to his friend, “near where it began.”

Among the pallbearers on a list provided by McCain’s office were Frank Gamboa, his academy roommate; Mattis; and two men

In this image provided by the family of John McCain, the family follows as the casket of Sen. John McCain, R-Ariz., is moved from the chapel on the grounds of the United States Navel Academy after a service on September 2, in Annapolis, Maryland. The casket was carried by horse-drawn caisson to the cemetery at the Naval Academy where McCain was buried. David Hume Kennerly/McCain Family via AP

who were POWs with McCain in Vietnam, John Fer and Everett Alvarez Jr. Tributes to McCain began on Wednesday in Arizona and continued for the remainder of the week. On Saturday speeches by his

daughter Meghan and two former presidents—Republican George W. Bush and Democrat Barack Obama—remembered McCain as a patriot who could bridge painful rivalries.

While their remarks made clear

their admiration for him, they also represented a repudiation of President Donald J. Trump’s brand of tough-talking, divisive politics.

Trump and McCain were at odds during the 2016 campaign and for much of Trump’s presidency. AP

A6 Tuesday, September 4, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

Costs of federalism

A

nyone who favors fiscal discipline should take note of the massive government spending involved in the shift to federalism, which could cost the national government an additional P243 billion annually, according to the National Economic and Development Authority (Neda). This is almost double the initial estimate made by experts.

Socioeconomic Planning Secretary Ernesto M. Pernia earlier said the cost of running a federal government may range from P120 billion to P131 billion, and the fiscal deficit could breach 6.7 percent, noting that this would “wreak havoc” on the country’s economy.

A study by Rosario Manasan, senior research fellow of the Philippine Institute for Development Studies, estimated an additional P44 billion to P72 billion, which includes the salaries of governors and vice governors of the states, more senators, more government staff, more offices and their operating expenses under a federal government. This is aside from the cost of holding a plebiscite on the new Constitution, plus elections of the transitional president and vice president as called for in the Consultative Committee (Con-com) draft.

However, last week, Neda Undersecretary for Planning and Policy Rosemarie G. Edillon said the cost could be higher. She said the recurring expense for Personnel Services and Maintenance and other Operating Expenses alone would reach P156.6 billion under a minimum scenario and P243.5 billion under the maximum scenario. The huge cost assumes the structure in the draft Charter, which will kick in once the federal government is operational and once the federated regions, the Regional Legislative Assembly and the new Judiciary offices are in place.

In the first year of implementation alone, Edillon said the government would spend an additional P10 billion just to finance the construction of various government offices. This was based on an estimate of P100 million per building, and the number of agencies that still do not have buildings.

Prof. Edmund Tayao, a member of the Con-com that prepared the draft federal Constitution, was quick to counter that the cost of shifting to federalism is much lower than what Neda predicts.

“The incremental cost, as far as our numbers are concerned, would not breach P20 billion. In fact, all those costs that are directly caused by the shift from unitary to federal would amount only to a little over P13 billion,” Tayao said during a Palace press briefing.

Obviously, among economists and policy-makers, critics and defenders, the question of how to tally the costs of federalism is a matter of hot dispute.

But the costs will, indeed, be substantial.

More government spending certainly means bigger annual deficits and a growing national debt. Thus, more government spending would certainly bolster the administration’s arguments in favor of more and higher taxes.

The costs of a Philippine federal government are truly enormous. We are talking about unprecedented levels of spending, and we can’t help but be a bit anxious. We worry that politicians who are so gung-ho about federalism are making monumental mistakes by failing to fully come to grips with the shortand long-term financial costs.

Would this future federal government of the Philippines be able to borrow and generate enough money to pay all our bills?

And is this the right time to ram federalism down the people’s throats, when a lot of Filipinos are still worried about the same things as before—jobs and food on their tables? Can this bigger, much costlier future federal government ensure that the huge budget that would flow through it would not just line the pockets of corrupt officials?

What guarantees do we have that the billions the government (or federal states) would be spending will reduce poverty and hunger rates? Would they prevent Filipinos from leaving the country in droves to seek greener pastures abroad?

Now is the time to be asking these questions.

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mid these volatilities, we should take stock of our current situation. The Philippine economy still grew 6.3 percent in the first six months of 2018, and while the inflation rate has risen close to 6 percent, prices are nowhere close to the alltime high of over 62 percent in September 1984.

I have personally experienced the hyperinflation rate and the interest rate of 40 percent in the mid-1980s and how these affected Philippine businesses. Business confidence shrank, and many investors fled the Philippines. Several companies were forced to shut down because of the high cost of materials and the banks’ prohibitive borrowing rates. Many jobs were lost, and very few companies managed to survive that economic environment.

The Philippines has gone through worse times, and what the nation is currently experiencing, I believe, are just blips in the economy. The rising inflation and the ensuing response of the Bangko Sentral ng Pilipinas through increased interest rates are minor movements that do not

necessitate radical policies.

Governments that resort to such radical policies and abandon economic fundamentals have seen their respective countries suffer.

Venezuela is one classic example of a mismanaged economy. The American nation is in its fourth straight year of recession, with double-digit decreases in the GDP. The inflation rate, according to the International Monetary Fund, is expected to reach 1 million percent this year.

As a result, about 2.3 million Venezuelans have fled their country since it plunged into crisis in 2014.

Lack of food forced many of them to leave. Venezuela, a major oil exporter, experienced an economic free fall after low crude prices significantly trimmed its revenues.

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We should watch carefully these global developments and stay calm at the same time.

The Philippines has kept its economic fundamentals intact, and I believe there is no reason to institute drastic measures while the storm is brewing outside our shores.

Over in Turkey, the inflation rate zoomed to almost 16 percent, while the current account deficit widened.

The Turkish lira has plummeted about 40 percent this year after investors expressed concerns over the monetary policy of Turkey President Tayyip Erdogan. A growing political and economic dispute with the United States has also put pressure on the currency.

The developments in Venezuela and Turkey and the trade war between the US and China are rattling the world financial markets and causing volatility, but these should not be an excuse to rock the boat here, so to speak. Our financial ratios are still fine considering the instability in certain parts of the world.

We should watch carefully these global developments and stay calm at the same time. The Philippines has kept its economic fundamentals intact, and I believe there is no reason to institute drastic measures while the storm is brewing outside our shores.

Looking for the whole truth

Lourdes M. Fernandez

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PHL will survive global turmoil

OUTSIDE THE BOX

O

n one hand, the press/media would like to portray itself as the bringer of truth and wisdom. On the other, it is the press/media that often fails to provide the whole truth.

Take this example without any criticism of the particular source.

British newspaper The Guardian ran a story a few days ago headlined “Electric cars exceed 1m in Europe as sales soar by more than 40 percent.”

The information of the increase in electric car sales is factual. The article quotes Matt Allen, CEO of Pivot Power, a firm that wants to build a network of electric car chargers: “The 1 millionth sale this year is a clear signal of consumer intent.”

Countless other news organizations have jumped on board with the same thought that the increase in sales of electric vehicles (EV) during the past few years shows that the future of transportation is electric.

They sometimes grudgingly note

that EVs are still a small part of the total market, but the trend is clear.

The legislature in the US state of California has proposed a bill that would ban new gas and diesel-powered cars in California by 2040.

Britain, France, Germany, India, Norway, Austria, Denmark, Ireland, Japan, the Netherlands, Portugal, South Korea and Spain also have set, or are going to set, laws that ban automobiles and trucks that run on fossil fuels. These plans are reported and received great commendation in global press. However, there is a reality that makes this all only a feel-good fantasy.

The most basic component of the EV is the battery. But there is not enough cobalt or lithium to replace

Cobalt prices are up 180 percent in the past two years, making EVs even more outside the price range of the average citizen that owns most of those fossil fuel-powered vehicles. But guess who is currently the single largest buyer and user of cobalt? Apple Inc. is so concerned about both the supply and price of cobalt that it is looking to write purchase contracts directly with the cobalt miners, eliminating the distributors.

even 25 percent of all cars on the road, let alone 100 percent.

Cobalt prices are up 180 percent in the past two years, making EVs even more outside the price range of the average citizen that owns most of those fossil-fuel powered vehicles.

But guess who is currently the single largest buyer and user of cobalt? Apple Inc. is so concerned about both the supply and price of cobalt that it is looking to write purchase contracts directly with the cobalt miners, eliminating the distributors.

There is, of course, no reason to believe that there is any malicious intent for the public not receiving an accurate picture of the issues. But

I agree with the assessment of Finance Secretary Carlos G. Dominguez III. The economy may have underperformed compared with the official target range of 7-8 percent, but the 6-percent growth in the second quarter was a mere “exception that does not indicate a mediumterm trend.”

Domestic demand, he says, remains robust. “Investment flows grew in the first half of this year.

Our exports of goods and services recovered to a double-digit growth of 13 percent in the second quarter, from 6.5 percent in the previous quarter,” he adds.

Government spending in support of social services and infrastructure projects increased to 19.5 percent in the first six months of 2018, which, according to Dominguez, represented the highest first-semester expenditure effort since 2003.

The government’s revenue effort improved by 1.47 percentage points to 17.12 percent in the first six months, also the highest firstsemester revenue effort since 1946.

The tax effort of 15.23 percent is also the country’s highest first-semester tax effort, he says.

The Philippines, thus, is still doing fine. We just have to ride out the financial storm and hope it passes quickly.

For comments, e-mail mbv.secretariat@gmail. com or visit www.mannyvillar.com.ph.

why is that so often the case?

China’s “One Belt, One Road” (OBOR) is another example. You would be pressed to find favorable press and media coverage even as The World Economic Forum (WEF) acknowledges that some view OBOR as China “deploying its economic power in pursuit of geopolitical objectives.” But then again, which country does not deploy its economic power in pursuit of geopolitical objectives? WEF says that OBOR will open the Chinese/Asian market to European goods in numbers impossible without OBOR. By 2030 Asia will represent 60 percent of the global middle-class population and of middle-class consumption.

However, even as the Chinese economy has been growing in the past few decades, it is still only half the size of the European Union. If OBOR does not achieve its goals, it is China that is the biggest economic loser. And that is probably more important than making Lao PDR, Cambodia and Pakistan Chinese “debt slaves.”

E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical analysis tools provided by the COL Financial Group Inc.

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Incongruities in accusation Political idolatry against Pope Francis

By Laurie Goodstein & Jason Horowitz New York Times News Service

A

t a gala dinner in the luxury Pierre Hotel in Manhattan in 2012, Archbishop Carlo Maria Viganò, Pope Benedict XVI’s top diplomat in the United States, bestowed an award for missionary service on Cardinal Theodore McCarrick and praised him as “very much loved from us all.”

But if Viganò is to be believed, he was keeping a troubling secret— a claim that is at the heart of a new scandal that has thrown the Roman Catholic Church into upheaval and led some conservatives to call for Pope Francis to resign.

The archbishop now says he was aware at the time of the gala that McCarrick, the former archbishop of Washington, was under orders from Benedict to stop appearing in public on behalf of the Church because he had sexually abused adult seminary students.

Viganò did not explain why he agreed to publicly laud a cardinal under sanctions. But LifeSiteNews—a web site run by conservative Catholics—quoted the archbishop on Friday as saying that he could not back out of the event.

Even beyond the gala dinner, however, a review of McCarrick’s activities during the years he was supposedly restricted under Benedict showed that he visited seminaries and ordained new priests, officiated at Masses and traveled the world representing the Church.

A week ago, Viganò released an explosive letter saying Benedict had ordered McCarrick to retire to a life of prayer and penance and had banned him from celebrating Mass in public, traveling for church business, giving lectures and participating in public meetings.

But after Francis became pope, in 2013, he lifted the sanctions and made the cardinal a trusted adviser, the letter claimed. That accusation has stunned the faithful, leaving many clamoring to know whether Francis—who has vowed to rid the Church of sexual abuse—had covered up for an abuser or whether Viganò, a conservative detractor of Francis’s who was removed from his US post, was lying.

What remains unclear a week after these accusations surfaced is whether Benedict ever imposed sanctions on the cardinal. And if he was sanctioned, why was he permitted to flout his restrictions so boldly and for so long. One explanation, perhaps, is that he had been under sanctions, but they were not taken seriously because the accusations against him were of sexual misconduct with adults, not children.

Francis has reacted to the new revelations by refusing to discuss the matter and has not denied the allegations in the Viganò letter. Instead, he challenged the news media to ferret out the truth.

The Viganò letter has pitted Francis against Benedict, the emeritus pope, who stepped down in 2013—confirming the worst fears of Catholics who warned that having two popes living as neighbors in the small, intrigue-laden footprint of Vatican City would be dangerous to the Church.

Both popes could clear up the confusion created by the letter. Neither one has.

The silence has left a vacuum into which speculation, gossip and ideological combat have now poured, consuming the Vatican and Francis’s pontificate and drowning out the issue of child sexual abuse, a scourge that is devouring his church from within.

Viganò has filled the vacuum with fresh allegations against Francis on sensitive topics, such as the pontiff’s 2015 meeting with Kim Davis, the Kentucky clerk who refused to issue same-sex marriage licenses. He argued in a detailed new letter that he had personally briefed the pope about the meeting beforehand and

that the Vatican’s efforts to characterize him as ambushing the pope with the meeting were untrue.

The truth has been difficult to discern so far. If McCarrick was, indeed, the target of sanctions by Benedict in 2009 or 2010, as Viganò claimed, then he openly disobeyed the orders for years.

There is a long and public record showing that the cardinal at the heart of the scandal did not behave like a man forced to retreat to contemplate any possible sins—and that Viganò did not treat him that way.

This raises questions of how tough the Vatican actually is on bishops sanctioned for sexual abuse.

The cardinal was a visiting scholar at the Library of Congress in 2011. He made multiple trips to the Vatican.

He participated in a Mass there when his successor as archbishop of Washington, Donald Wuerl, received the red cardinal’s hat in 2010. He joined US bishops on their five-year checkin with Benedict in January 2012.

Four months later, he was back in Rome to sing happy birthday to Benedict at a celebration sponsored by the Papal Foundation, which McCarrick founded to deliver millions in donations to the Vatican each year.

He traveled to Iran in 2011 and helped win the release of American hikers accused of espionage. Friends of the cardinal who did not want to be named said in interviews that they had no indication at all that he was supposedly restricted in those years.

Only in July, after McCarrick had been accused of sexually abusing two boys years ago, did he resign from the College of Cardinals, at 88. Demoted to archbishop, he rebutted the allegations and is appealing his case to the Vatican. Through his lawyer, he declined an interview request.

For years, Benedict’s supporters, appalled by the direction Francis was taking the Church, have sought to draw Benedict into ideological fights. He has mostly resisted, and his silence so far on the Viganò letter is in keeping with his promise to essentially disappear after his resignation.

Benedict, who promised his successor “reverence and obedience” when he retired, is now 90 and frail.

Benedict’s personal secretary and trusted lieutenant, Archbishop Georg Gänswein, has issued enigmatic comments. He told the German newspaper Die Tagespost that the reports suggesting Benedict had confirmed Viganò’s letter were “fake news.”

Asked by The New York Times to clarify whether Benedict had placed sanctions on McCarrick, Gänswein responded in an e-mail: “I have nothing to add or to subtract from what I have said.”

Francis also evaded a response as he flew from Dublin to Rome on August 26, hours after the Viganò letter was published in conservative Catholic news media. In his customary news conference aboard the papal plane, the pope acknowledged that he had read the letter that morning.

“I will not say a single word about this. I believe the statement speaks for itself. And you have the journalistic capacity to draw your own conclusions,” he said. “When some time passes and you have drawn your conclusions, I may speak.”

Viganò refused an interview request.

Following the pope’s lead, the Vatican has gone on lockdown.

Cardinal Leonardo Sandri, whom Viganò also accused in the letter of covering up sexual misconduct by McCarrick, rushed a reporter off the phone on Thursday evening.

“Look, I’m not in my office. Good evening. Good evening,” he said. And he was the most talkative.

The Times reached out to every cardinal and bishop said by Viganò to have known about the alleged sanctions on McCarrick by Benedict. Seventeen of them declined or did not answer requests for comment.

A visit to the Vatican Embassy in Washington yielded no information.

Cecilio T. Arillo

database Part One

The ‘yellows’ and their bourgeois followers

J

UST after finishing my latest book, The Marcos Legacy, some of the devoted “yellows” and their gullible followers have ardently discussed again reviving the plan to turn the late Sen. Benigno “Ninoy” Aquino and his wife President Corazon Cojuangco Aquino as national heroes or saints, or both, while, at the same time, busy demonizing President Duterte and his federalism proposal.

Part of the propaganda buildup was the documentary, entitled (Agosto Beinte-uno—Ang Pagpatay kay Ninoy Aquino) at the airport tarmac on August 21, 1983, replayed by ABS-CBN to draw public sympathy again to the victim whose murder remained strangely unsolved until today despite Mrs. Aquino, the widow, and her son, Benigno Aquino III, having occupied the presidency for 12 years and six months, with vast powers and resources at their disposal, but failed miserably to identify and prosecute the real mastermind in the killing.

As in the past, in reaction to the persistent move to make Ninoy and Cory heroes or saints, noted historians Salvador Escalante and J. Augustus Y. De La Paz, of the Truth and Justice Foundation, asked: “How low can morals and standards get? How cheap can sainthood and hero status become? Legitimate saints and heroes would be scandalized!”

In their efforts to educate our readers, Escalante and De La Paz explained in their own words the analysis of this interesting topic in

Chapter 16 of my latest 448-page book, The Marcos Legacy, published

by Amazon, one of the world’s largest publishing houses, and locally available at Solidaridad and Popular Bookstores.

There are those who contend that these two are heroes and saints already, at least in the press; therefore, their enthronement is but a formality. The research study of Escalante and De La Paz provided the contrarian view: “That they are neither heroes nor saints. They may not be martyrs even. For them to be declared as national heroes, saints or martyrs, is less a matter of one generation’s public opinion, than of measuring up to pedantic standards.”

“To pass scrutiny, they must pass the test of time; they must not only possess the virtues and other qualifications required; and they must also have none of the disqualifications,” they said.

Let us see.

Heroes for whom?

The Aquinophile Asuncion David Maramba, for one, included in the

Tuesday, September 4, 2018 A7

1993 book Six Modern Filipino Heroes, “without defining a hero or heroine or laying down criteria as to who is and who is not.” Said Maramba: “People will know a hero when they see one. On that assumption, nay certainty, Benigno S. Aquino, Jr. …(is a hero).”

In another book in 1984, Ninoy Aquino: The Man, The Legend, Maramba hoped and begged: “In an age that is quite free with its superlatives, it can perhaps be said that here is a man and here is an event deserving the tribute and attention they are receiving.

“Ninoy’s martyrdom may well be one of the most significant events of the last quarter of this century for the Filipino people… His eminence now seems secure and history will most probably confirm him as one of the great heroes of this generation. Even the most skeptical and the most stoical must grant him this accolade. In the most honest recesses of his heart, he knows it is true… (T)he inevitable apotheosis is now taking place…”

Is Ninoy a hero? For many, the question may almost be impertinent or even close to blasphemy. For the wary and the skeptical, the question may be valid.

Gerald W. Johnson, author of American Heroes and Hero-Worship, published by Harper and Brothers on June 1, 1943 (first edition) and then carried by Amazon in its best sellers rank, agrees with Maramba partway: Heroes are created by popular demand, sometimes out of the scantiest materials, or none at all.

The conferment of hero status, then, is arbitrary on the level of the people. But who is to say that the Filipino people have installed Ninoy and Cory as heroes? They may be heroes to several thousands, but not to the majority of the people. They can be private or personal heroes, but certainly not national heroes.

Contrary to Maramba’s assumption, there are certain qualities that a person has to possess to be admired and honored as a hero. “Otherwise,” said Escalante and de La Paz, “movie stars, basketball players, ramp models and other celebrities, being admired, would automatically be heroes. In a pre-martial law dictionary, a hero is defined as one who is distinguished for valor, fortitude and bold enterprise. A post-President Aquino dictionary describes a hero as being admired for nobility, courage or outstanding achievement.”

Neither definition stipulates the purpose or cause of valor, fortitude, bold enterprise, nobility, courage or outstanding achievement and are deficient in that sense. A pirate can be ruthlessly brave and bold, but he is not a hero except within his band. Neither definition says that the exercise of the virtues and qualities enumerated has to be sustained or consistent throughout a person’s life.

Apparently, a single act, no matter how uncharacteristic of the person, may make him a hero; a popular anecdote in this regard is that of a man who was honored as a hero after someone asked for a volunteer to save a drowning person—it turned out that the “hero” did not volunteer to jump overboard at all, but was pushed into the role.

Heroism can indeed be accidental or providential; a hero by accident, as National Artist Nick Joaquin puts it, may be regarded as a martyr. Heroism may or may not extend to patriotism, the way it was defined

by Adlai Stevenson and practiced by the late Sen. Lorenzo Tanada: “Not a frenzied outburst of emotion but the tranquil and steady dedication of a lifetime.”

To be continued To reach the writer, e-mail cecilio.arillo@ gmail.com.

Cash ban may have driven Indians away from banks

T

By Mihir Sharma | Bloomberg Opinion

he Indian central bank’s final tally of Prime Minister Narendra Modi’s 2016 demonetization drive, intended to take money derived from tax evasion out of circulation, showed that 99.3 percent of outlawed high-value banknotes had been returned. That’s a severe loss of face for officials, who had argued that holders of the cash would rather destroy it than return it to banks, providing a windfall for the government.

The authorities managed to produce several other defenses of the initiative, however. One in particular was appealing to financial markets: The notion that, in Finance Minister Arun Jaitley’s words, “Demonetization appears to have led to an acceleration in the financialization of savings.” Households that traditionally kept their savings in cash would now prefer to put the money into other instruments, perhaps even the stock market.

This would increase the amount of capital available for companies to deploy and banks to lend, spurring economic growth.

There certainly were some indicators to support the idea. For one, Life Insurance Corp. of India saw a 142-percent increase in premium collection in the month demonetization was carried out. And Indian

stocks have been on a record-breaking run, even though foreign investors were net sellers so far this year.

Unfortunately, the Reserve Bank of India (RBI) punched a hole in that hypothesis, too. Its annual report, as well as tallying the result of demonetization, provided a breakdown of savings by households, a category that includes small and unregistered enterprises. It turns out that net financial savings for the fiscal year that ended March 31 were 7.1 percent of overall disposable income—less than the average for the five years prior to demonetization.

Worse yet, perhaps, households are keeping far more of their net savings in cash, not less. And their net savings going to banks are almost 50 percent lower than the five-year average before demonetization. In other words, the idea that the crackdown

Print is dead? Not here

By Ted Geltiner

New York Times News Service

T

HE VILLAGES, Florida—Practically every morning begins with a thud on the driveways of the roughly 50,000 homes here.

The newspaper has arrived.

That newspaper, The Villages Daily Sun, which exhaustively covers this rapidly growing retirement community in Central Florida, is in the midst of a boom that few other papers can even imagine. According to the Alliance for Audited Media, the Sun’s weekday circulation of 55,700 is up 169 percent since 2003. Over

the same time, weekday newspaper circulation across the United States has dropped 43 percent.

And The Daily Sun boasts an enviable 92 percent market penetration, a figure that is even higher during the winter months, when the community is a peak capacity.

Elsewhere around the country, the industry continues to cough and wheeze its way from print to digital, with layoffs and closures in its wake.

What began in the mid-1980s as a 400-unit mobile-home park now has more than 120,000 residents, and many of the newer arrivals say the presence of a robust daily paper is

would leave banks flush with household savings that they could lend to productive parts of the economy has been comprehensively debunked.

What’s going on? Some have argued that lower interest rates are the problem. That’s not an easy sell: Over the past year, India was one of the few countries with strongly positive real rates—and savings in bank deposits were a higher fraction of disposable income back in 2012-2014, when Indians were dealing with negative real interest rates.

Perhaps, instead, a change in behavior is responsible. For most Indians, the defining experience of demonetization was losing access to their bank accounts: We had to stand in long lines at ATMs, and our withdrawals were strictly rationed.

In contrast, those who had piles of old banknotes appeared to be able to change them (at a black-marketdetermined discount) with ease.

What would you learn from this?

Would you trust a banking system that can be closed down on a prime minister’s whim? For many Indians, demonetization provided their first experience of banks or digital payments. I just hope the insanity of the process didn’t put them off formal finance forever.

Still, you might say, at least the markets are doing well. That reflects households’ greater willingness to put their savings in stocks, right?

And yes, the RBI data do indeed suggest that.

But look a little closer and things aren’t so bright. One of the reasons domestic institutional investors— who pumped $10 billion into Indian markets so far this year, while foreigners took $280 billion out—are bullish is because they believe a structural change is under way in how Indians save. They think we’re moving permanently away from cash (and gold, and real estate). A turn toward financialization means everhigher equity prices.

The central bank data, however, suggest we shouldn’t be so sure about that. The heights being scaled by Indian markets might prove brittle.

Whatever the impact on savings behavior of demonetization, it’s clear the initiative was a policy failure, even on the administration’s own terms. I’d like to think a lesson was learned.

Not so fast: The government just appointed one of the brains behind the 2016 project to the board of the central bank. India’s era of ill-advised intervention may not be over.

one of the attractions of The Villages.

While the rest of the newspaper industry has spent the past few years trying to figure out how to move readers from paper to screens—and to make money on both digital subscribers and advertisers—The Daily Sun is proudly, defiantly, a print-first publication.

Its marketing materials are written to sway prospective advertisers toward the benefits of reaching their readers through paper. Subscription and newsstand prices are kept exceedingly low.

With its large and growing editorial staff of approximately 50, the

Daily Sun newsroom operates in ways that most newspaper journalists can only dream of anymore.

The paper has a special-projects team, and reporters and editors work on in-depth news stories that may take up to a year to complete.

But the investigative powers of the newspaper have their limits; they are unlikely to be unleashed on The Villages itself. The Daily Sun is published by The Villages Operating Co. Both the paper’s publisher, Phil Markward, and the executive editor, Bonita Burton, declined to be interviewed for this article, or to comment on its editorial policies.

2nd Front Page BusinessMirror

A8 Tuesday, September 4, 2018

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‘High rice prices in PHL have no basis, intl rates are low’

Barely avoiding death in Indonesia, Veloso runs to SC for relief

IGH rice prices may have no basis at this time, given the low price of rice in the international market, according to a former agriculture secretary.

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By Cai U. Ordinario

In a briefing on Monday, House Deputy Speaker Arthur C. Yap, who was agriculture chief during the Arroyo presidency, said international rice prices are currently at $350 to $400 per metric ton (MT), which could translate to as much as P30 to 35 per kilo.

This includes profits, but when costs of traders and retailers are taken into consideration, this could go up by another P10 per kilo. This will lead to a retail price of only around P45 per kilo, way below the prevailing market prices.

“Dagdagan na lang natin ng P10 siguro, so that’s about 40, then you add your costs, sabihin mo nang 45

@cuo_bm

[We can just add maybe P10 so that’s about 40, then you add your costs; say this leads to a cost of P45]. As I said, the price of rice is P50-P55, so you do the math. I’m no expert in telling you right now the trading costs, I am not speculating on the trading costs,”Yap said.

The high rice prices have become so prohibitive that many poor Filipinos, especially those in southern Philippines, are enduring long queues just to get access to cheaper rice from the NFA. However, based on data from the Philippine Statistics Authority (PSA), rice in NFA warehouses is only good for 3.75 days at 114,180 MT.

₧45 a kilo

What the retail price of rice should be, given the international rice prices with the trading costs put in—way below the prevailing market prices of P50-P55, according to ex-DA chief and now Bohol Rep. Arthur C. Yap Low buying price

During a Committee of Appropriations Hearing on Monday, NFA Council Farmer Sector Representative Edwin Y. Paraluman explained that the reason for the short supply is that NFA could not buy rice from Filipino farmers.

This is because of the very low buying price for palay. Paraluman said the last time the government increased rice prices was 10 years ago when the support price was raised to P17 from P11.

In the past four years, Paralu-

man said, the farmers have been requesting for higher buying prices. He said the farmers are only asking for a P5 increase, from P17 to P22.

While this proposed price is still below the P24 buying price being used by private traders and millers when dealing with farmers, this will allow some farmers to have some room for profit while being able to help the government boost its buffer stock.

“Okay lang naman sa amin magdeliver because we are enjoying the buying price of the private sector, but what will happen kung walang buffer stock ang National Food Authority like what is happening now. Closed ’yung Malaysia, wala nang bigas sa Zambasulta, ginutom sila ngayon kasi nasanay sila. Eh what more if Vietnam and Thailand, kakapusin ang China, uubusin ang bigas ng Thailand, ano bibilhin ng Pilipinas? Siyempre tatakbo sa magsasaka. Kailangan tulungan ng magsasaka itaas [ang presyo] [It’s okay if we do not deliver See “High prices,” A2

Power rates to remain stable in September, says Meralco

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HE Manila Electric Co. (Meralco) expects power rates in September to remain stable, an official said on Monday.

“Right now, we expect the movement of September power rates to be stable or flattish,” said Meralco Head of Utility Economics Lawrence Fernandez in a text message.

The utility firm has yet to release the final figures. “We are still waiting for bills

from power suppliers, but the official announcement will definitely be within this week,” added Fernandez.

Compared to the July supply month, the Meralco official explained that power demand and plant capacity on outage in Luzon grid have been lower on the average in August. Power rates for the supply month of August are reflected in September.

Fernandez noted that there could

SOUTHWEST MONSOON AFFECTING SOUTHERN LUZON, VISAYAS AND MINDANAO as of 4:00 pm - September 3, 2018

be a slight redcution in rates if the improvement in the Luzon grid’s supply situation translates to lower Wholesale Electricity Spot Market prices this month. “Hopefully, lower WESM prices will offset any impact of peso depreciation,” he added.

Meralco reported last month that power rates in August went up by P0.0265 per kilowatt-hour to P10.2190 per kWh as generation charge inched up during the

July supply month.

The slight increase in overall electricity rates resulted in an upward adjustment of around P5 in the power bills of a typical household consuming 200kWh. Generation charge, which makes up bulk of the bill, increased to P5.3491 per kWh, from P5.2651 per kWh. The increase is the result of P0.6554per-kWh rise in the cost of power from power-supply agreements due to lower average plant dispatch and higher fuel prices. The share of PSA purchases to Meralco’s total requirement this month was 43 percent.

Meanwhile, charges from WESM declined by P1.1021 per kWh with the absence of yellow alerts in the Luzon grid this month. Despite higher Malampaya natural gas prices as a result of the quarterly repricing to reflect recent movement of crude-oil prices in the world market, the cost of power from independent power producers (IPPs) decreased by P0.1690 per kWh due to an improvement in average plant dispatch.

Power plants using Malampaya natural gas provided 58 percent of Meralco’s supply.

The shares of WESM and IPPs purchases to Meralco’s total requirement in August were 12 percent and 45 percent, respectively. Lenie Lectura

RCEP. . .

Continued from A1

Japan and Australia want drastic tariff reductions under the RCEP, but China and India prefer a gradual liberalization of product lines. “These ministers are cognizant of the key elements of the agreement that we started last year under the Philippine chairmanship, and we built on it. Time allowed some ministers to develop more acceptable parameters, and extreme flexibilities were also exercised,” Lopez explained.

“The negotiations are already at the stage wherein high-level policy calls need to be made, keeping in mind that the quality of the final outcomes for the RCEP should not be sacrificed nor compromised,” he added.

RCEP’s chapters on customs procedures and trade facilitation, as well as on government procurement—both of which intended to expedite trade in goods between the 16 participating countries —have recently been concluded. The chapters on small and medium enterprises and economic and technical cooperation were completed in 2016.

In 2016 RCEP economies accounted for almost half of the world’s population, 31.6 percent of global output, 28.5 percent of global trade and about 20 percent of global foreign direct investment inflows.

The deal will cover trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, e-commerce and dispute settlement, among others.

By Joel R. San Juan @jrsanjuan1573

HE camp of death row convict Mary Jane Veloso on Monday sought refuge before the Supreme Court by filing a petition seeking to allow the taking of her deposition in Indonesia to bolster the criminal cases that were filed against her alleged illegal recruiters.

In a 37-page petition, Veloso, through lawyers from the National Union of People’s Lawyers (NUPL), sought the lifting of the permanent injunction issued by the Court of Appeals (CA) on December 13, 2017, that it affirmed in a resolution issued on June 5, 2018.

The CA, in the two rulings, reversed and set aside the order issued

by Branch 88 of the Regional Trial Court of Baloc, Santo Domingo, Nueva Ecija, on August 16, 2016, giving the camp of Veloso the goahead to take her deposition in Jakarta, Indonesia.

The C A sided with the arguments raised by Veloso’s recruiters Cristina Sergio and Julius Lacanilao that allowing the Philippine Embassy in Indonesia to get her deposition would violate their right to confront the witness face to face and to have compulsory process to secure the attendance of witnesses and the production of evidence—matters guaranteed under Section 14, Paragraph 1 of the 1987 Constitution.

Sergo and Lacanilao are being tried for qualified human trafficking, estafa and simple illegal recruitment before the Regional Trial Court (RTC) in Baloc, Santo Domingo, Nueva Ecija, in connection with Veloso’s case.

They are accused of duping Veloso into bringing heroin to Indonesia, resulting in her arrest and conviction. She was lined up for execution in April 29, 2016, but was spared in a dramatic last-minute grant of reprieve by Indonesian President Joko Widodo on the urgent appeal of then-President Benigno S. Aquino III. His government explained that her testimony is vital in the case she has filed against her recruiters.

The Indonesian government wants her cooperation in prosecuting the international drug trafficking ring behind her case; hence, her lawyers’ need to be allowed to depose her in Indonesia.

Veloso’s camp has insisted that the deposition would boost her defense in the drug-trafficking conviction in Indonesia, and thus,

sought the reversal of the CA’s decision.

They are asking the SC to issue a status quo ante order directing the Nueva Ecija RTC to desist from conducting further proceedings in the case pending the final resolution of their petition.

“The assailed Court of Appeals decision and resolution, which are the subject of the main petition filed by the People before this Honorable Court denying Mary Jane’s plea to be allowed to testify through deposition is—literally and without an iota of exaggeration—a matter of life and death,” NUPL Secretary-General Edre Olalia said, in seeking an immediate resolution on the case.

Olalia insisted that the CA gravely abused its discretion in giving due course to Sergio and L ac a n i l ao’s pet it ion see k i ng the reversal of the trial court’s order and in the subsequent issuance of the permanent injunction against the taking of Veloso’s deposition.

The CA, according to Olalia, should have dismissed outright Sergio and Lacanilao’s petition due to their failure to show that the trial court committed grave abuse of discretion in allowing Veloso to testify through deposition.

“In the instant case, there is not even a hint that the Honorable Trial Judge gravely abused its discretion in rendering the assailed resolutions,” he pointed out.

Furthermore, the NUPL lawyer accused the CA of issuing the permanent injunction against Veloso’s testimony without basis both in fact and in law.

Olalia said the permanent injunction violates Veloso’s right to due process and fair trial.

“To bar Mary Jane from testifying will prevent the prosecution from fully presenting their case by means of crucial material evidence, thereby denying the victim of her opportunity to finally be heard. This strikes at the very core of the due process guarantee of the Constitution and puts premium on technicality at the expense of the right of the State to prosecute criminal wrongdoing,” he added.

She has been detained since 2010 after she was apprehended by Indonesian authorities at the Yogyakarta airport for bringing in more than 2 kilograms of heroin. Veloso insisted that she had no idea the luggage given her by her recruiters contained heroin, which was found in a hidden compartment sewn into the luggage.

DOF bullish 2018 growth to be ‘close to 6.8 percent’ Continued from A1

buildup program of the Duterte administration, or its BBB program.

Earlier, government officials reported that, out of the 75 flagship infrastructure projects under the BBB, 35 projects have been approved as of June this year.

Dominguez also explained that the country is grateful for the official development assistance being provided by neighboring countries like China, Japan and South Korea to help fund the projects and programs of the government.

“So we have raised our own funds; we have a large amount of commitment, actually, the total is $19 billion: $9 billion each from Japan and China and $1 billion from Korea. So this is what we’re using

to fund our expansion.” he added.

In July this year, Fitch Ratings retained the Philippines’s investment grade rating as the country maintained its tag as one of the “fastest-growing economies in the Asia-Pacific region.”

The credit watcher said it is keeping the Philippines’s existing investment grade rating at “BBB,” citing the country’s robust economic growth path and well-managed finances. The BBB is a notch above the minimum investment grade.

The ratings agency forecasts local economic growth to pace at 6.8 percent for the next two years.

While the forecast is below the government’s 7-8 percent target range, Fitch said the Philippines will remain to be a bright spot in the region in the next few years.