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Monday, September 5, 2016 Vol. 11 No. 331

CPBRD LISTS PRIORITY REFORM MEASURES NEEDED BY MICRO, SMALL BUSINESSES

Tough rules forcing small firms to stay off govt radar

By Jovee Marie N. dela Cruz

@joveemarie

he Congressional Policy and Budget Research Department (CPBRD) has identified several reform measures that lawmakers need to prioritize in the 17th Congress to pave the way for the movement of micro and small enterprises (MSEs) into the formal sector and boost the government’s revenue collection.

INSIDE

VENTURE COMMUNISM: How China is building a start-up boom

The number of BIR forms that an entrepreneur needs to prepare every year It noted that today’s complicated business regulations are stifling the sector’s growth and are forcing MSEs to stay off the government’s radar. The CPBRD, in its policy note, See “Rules,” A2

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Estero tales: ‘Bayanihan’ marks Filipinos’ flood-control initiatives PERSPECTIVE

P25.00 nationwide | 5 sections 36 pages | 7 days a week

Battling the drug menace via PPPs PPP Lead Alberto C. Agra

an there be a link between combatting the drug crisis and pursuing development through publicprivate partnerships (PPPs)? What antidrug programs and projects can be undertaken through PPPs? Who will be the payors of these projects? What PPP modalities can be used? n Defining the context. In order to establish a link, the drug menace must be viewed as the problem and the context, while PPP should be advanced as a, not the, solution. PPPs should not be viewed as the goal. PPP is a vehicle and is just one of several change strategies. Continued on A14

Bundled AntiDrug PPP Project

Extracting Insights From Vast Stores of Data

monday morning

u.s. open: will djokovic work up a sweat? Estero de Roxas in Manila. nonie reyes By Psyche Roxas-Mendoza @PsycheRoxas

sports

Part One

OVER NMENT weatherwatchers have predicted the months of July to September as “the peak of the Southwest monsoon season, or habagat, when thunderstorms and typhoons are at its maximum.” But the first onslaught of heavy

PESO exchange rates n US 46.6270

rains and floods in August did not fill with dread the likes of Christopher Ilumin and the community residents surrounding Lingunan Creek in Valenzuela. This, despite the fact that prolonged and severe flooding commonly occur in streets and areas near creeks and rivers as a result of accumulated garbage and waste in these water inlets, or esteros. “We were prepared, we had a

plan. And our flood-preparedness program included the regular clean-up of Lingunan Creek,” said Ilumin, general manager of March Resources Manufacturing Corp., an automotive paint firm. Passing through three barangays in Valenzuela—villages of Lingunan, Veinte Reales and Canumay West—Lingunan Creek flows upstream to Meycauayan River Continued on A2

Rehabilitation Center Government Center Hospital Terminal Commercial Space Author: Alberto C. Agra

n japan 0.4517 n UK 61.8694 n HK 6.0104 n CHINA 6.9822 n singapore 34.3047 n australia 35.2080 n EU 52.2222 n SAUDI arabia 12.4375

bm Graphics: Job Ruzgal

Source: BSP (2 September 2016 )

A2 Monday, September 5, 2016

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Estero tales: ‘Bayanihan’ marks Filipinos’ flood-control initiatives Continued from A1

before draining into the Pasig River. This natural creek is 2 kilometers in length and 12 meters wide. It is surrounded by houses of middle-class families and informal settlers, as well as commercial and industrial establishments. Of the three communities, the village of Lingunan is the lowest point downstream and, hence, the most flood-prone, Ilumin said pointing to the spot where all the water in the upstream barangays empty in Lingunan.

‘PPP’

PR EPA R ING for f loods star ted happening in Lingunan four years ago. In 2012 the Environmental Management Bureau of the Department of Environment and Natural Resources (DENR-EMB) introduced the “Adopt-an-Estero/Water Body program” (AEWBP) in the area. DENR officials said the Adopt-an-Estero Program functioned like a “public-private partnership.” It enjoined individual companies and corporations to help in the rehabilitation of a water inlet near their plants, in partnership with the government and the estero’s surrounding communities. “We send letters to prospective donor [privatesector] partners inviting them to adopt an estero. Several donor partners are invited, whoever is interested,” Maria Fe Rubio of the EMB-National Capital Region (NCR) said in response to a written query. According to Rubio, the EMB sets an appointment and go to the establishment to discuss the program. “They [company officials] can choose the estero or water body they want to adopt,” she explained. “The priority is the estero near the establishment of the donor partners so that communication with the LGUs [local government units] and communities is easy.” Rubio said the Adopt-an-Estero program aims to institutionalize community development, devise a livelihood program for the community and estab-

Rules. . .

Continued from A1

said among the reforms needed are the use of simplified tax forms, registration requirements and payment processes; fewer requirements for bookkeeping and financial reporting; integrated national and local government unit (LGU) filing and payment systems to reduce administrative compliance; and cutting the number of trips to government offices and local banks through online and mobile payments. “The Union of Local Authorities of the Philippines and the Department of Finance are in agreement that these measures must be considered as priority measures by the 17th Congress,” it said. The think tank added “micro and small enterprises constitute a significant segment of the economy and have high potential for creating jobs. However, complex regulations and tax impositions hinder the growth of MSEs and even help perpetuate informal setups.” It added a simplified tax regime may also be adopted to minimize corruption, thereby generating more taxes for the government. “The seven-tier personal income tax—with rates ranging from 5 percent to 32 percent, 3 percent sales tax and 12 percent VAT [value-added tax] on MSEs may be replaced with a single rate. The multitier business

lish a Material Recovery Facility (MRF) in the barangay. Likewise, she said the program also seeks to develop good partnership between the private sector, the communities concerned and national government agencies, as well as non-governmental organizations (NGOs).

Partners

ON August 17, 2012, March Resources Manufacturing Corp. joined the Adopt-an-Estero program. Company executives, local government officials and community leaders representing 3,000 Lingunan households signed a memorandum of agreement (MOA) to clean and declog Lingunan Creek of garbage, waste and other obstructions. Other partner-institutions that were signatories to the MOA included the Valenzuela City government, the Metropolitan Manila Development Authority (MMDA), the Department of the Interior and Local Government (DILG) and the Department of Public Works and Highways (DPWH). Rubio mentioned that Valenzuela LGUs are very active in helping and assisting all donor partners in Valenzuela. “They provide assistance in dredging, they have backhoe to easily cleanup, while the MMDA provide boats to clean high depth esteros.” “Our company, as the private partner of Lingunan Creek, provide the other cleanup materials needed by the community, whose residents function as volunteers,” Ilumin said. He added that their company is primarily responsible for decongesting the creek of garbage through surface cleanup and in introducing interventions along the riverbanks, such as planting of bamboo and creation or greening of linear parks.

Community effort

ILUMIN gives credit to all the people involved in the project. tax imposed at the local level may be substituted with a single tax that is applicable to all types of businesses,” it said. “[Also] the number of trips to the BIR [Bureau of Internal Revenue] and the number of forms to be accomplished [must] be reduced. An entrepreneur prepares at least 28 BIR forms and makes the same number of trips to the Revenue District Office every year. This is for the purpose of improving the progressivity of the tax system and eliminating tax differential across business types,” the CPBRD said. Currently, there are three pending bills seeking to promote MSEs in the 17th Congress. In House Bill (HB) 2169, Liberal Party Rep. Vilma Santos-Recto of Batangas said her proposal seeks to institute reforms to further protect and develop micro, small and medium enterprises (MSMEs), amending for the purpose Executive Order 81, or the 1986 revised Charter of the Development Bank of the Philippines (DBP) as amended. The bill seeks to amend the Charter of the DBP, mandating it to devote 80 percent of its loan portfolio to programs, projects and initiatives of the MSMEs and LGus. Santos-Recto also said the bill also seeks to protect the critical economic drivers of today, and to sustain the country’s economic growth in the future.

“But of course, we cannot do all these alone,” Ilumin said, adding that March Resources has cleaned Lingunan Creek even before the Adopt-an-Estero program. “The task has become easier now that our company, an entire community and the government are coordinating and taking part in the effort.” Rubio explained that the EMB is responsible for the regular monitoring of the Lingunan Creek ’s water quality. According to her, there has been an 8.65-percent to 44-percent improvement on the biochemical oxygen demand (BOD) of the different stations of Lingunan Creek. The BOD is an indicator of water quality. It is the amount of dissolved oxygen needed by aerobic biological organisms to break down organic material in water.

Traps

TO further improve Lingunan Creek ’s water quality, trash traps have been put up to catch garbage and debris. “All [EMB-NCR] employees—155 in all—are involved, especially during the cleanups,” Rubio said. “Together with the donor partners, LGUs, barangays traversing the adopted water bodies, the DPWH and the MMDA, we conduct cleanups” every quarter. Rubio added that March Resources is one of 44 donor partners that adopted 37 esteros or water inlets in the NCR. All these water bodies are cleaned up simultaneously on the following months: March, in celebration of World Water Day; June, in time for the Environmental Month; September, International Coastal Cleanup; and November, which is designated as Environmental Awareness month. She also said an MRF was established in Barangay Lingunan, where residents segregate in designated trash drums the perishable waste and the nonperishable garbage. An MRF is a building or compound where wastes are segregated and processed for possible resale to endusers. The first modern MRF in the US is that of the The lawmaker, citing the 2014 data from the Department of Trade and Industry, said 99.6 of the 946,988 establishments in the country belong to the MSME sector. “During the same year, the MSMEs generated some 4,891,836 jobs, which is about 62.8 percent of the total jobs generated in the country. Some 35.7 percent of all value of goods and service produced in the country came from MSMEs,” she said. “Despite its pivotal role in the economic well-being of millions of Filipinos, several factors, like high cost of doing business access to financing and markets, and low productivity and efficiency, constrain the performance of MSMEs. With limited resources and capabilities, many MSMEs are not adequately equipped to respond to the challenges and opportunities posed by domestic and international markets,” Santos-Recto added. She said the task of priming stronger and more competitive MSMEs rests on collaborative efforts between the government and the business sector. Apart from creating a favorable business environment and providing linkages to local and foreign markets, Santos-Recto said the government must be able to make business financing accessible to MSMEs. The lawmaker, citing the MSME Development Plan 2011-2016, also observed a number of issues that restrict the capacity of MSMEs to maximize the utilization of available financing options in the Philippines. “To develop an MSME sector capable of contributing to the country’s economic and social development, it is imperative that the government enact measures to enable MSMEs to bolster their productivity and empower them to be more responsive to rising economic exigencies,” she added. In HB 3007, or the Go Negosyo Act of 2016, Liberal Party Rep. Winston Castelo of Quezon City, chairman of the House Committee on Metro Manila Development, seeks to promote the reduction of poverty through the development of MSMEs. The measure seeks to strengthen the MSME sector by providing it with better incentives and benefits, granting more access to focused support for enhanced business performance, promoting support to key growth industries and facilitating financing support programs that are much needed for growth. The bill also promotes more participation from the private sector in the MSME Development Council. “MSMEs, now more than ever, have an important socioeconomic role in our nation’s machinery. Unemployment numbers are growing, and we have to realize that allocating effort and resources toward a strong thriving MSME sector not only sustains, but also leads to the creation of considerable and promising net employment,” Castelo said. “The proposal has the potential to assist MSMEs to integrate themselves in the formal economic market, which will bring forth more job opportunities and the growth of our nation’s economy,” he said. Under the bill, Negosyo Centers shall be established under the supervision of the MSME Development Council in all provinces, cities and municipalities. The council shall ensure interagency coordination, LGU

Resource Recovery Systems Inc.

Sustainability

ILUMIN recounted that a community-based environmental education campaign was mounted by March Resources, the EMB and barangay officials, so residents can learn the advantage of having clean waterways. The education materials also showed how this level of cleanliness can be attained through solid-waste management, he added. Rubio said the government holds information and education campaigns that she said are essential in sustaining the momentum of the Adopt-an-Estero program. “We must give recognition to communities to boost their enthusiasm,” she said, adding that, “Proper coordination and communication with the stakeholders, donor partners, government institutions, barangays and communities residing near the estero are but some of the lessons learned these past four years.”

Ebbing

AT the height of Typhoon Ondoy (international code name Ketsana), the flood that swamped Lingunan reached the roofs of houses, Ilumin recalled. But in August, during the intense monsoon downpours, the water rose to only four feet. Illumin also said that, today, it only took an hour for floodwater to recede, unlike during Ondoy in 2009 when it took five hours to a day. “We informed our community about the emergency plan even before the floods came,” he said. “We had standby rescue teams [Samahang Kabataan Watchers] who carried the relief goods to the affected families.” Nonetheless, Ilumin said they also prepared boats for rescue operations “just in case the floodwaters continue to rise.” He added that two probable reasons the floodwaters subsided within the hour and reached only up to 4 feet in height was because of their “continuous implementation of regular cleaups and their tree-planting program.” To be continued participation and public-private partnership in the establishment and management of Negosyo Centers. The centers shall be responsible for promoting ease of doing business and facilitating access to services for MSMEs within its jurisdiction. The measure added a unified and simplified business registration for the sector shall be created by the DTI and shall be made available in all Negosyo Centers. Should the concerned business permits and licensing offices fail to process the application within 15 days, the MSME shall be deemed registered for a period of one year. In this case, these offices shall have the authority to revoke the registration within a period of 30 days upon determination that the MSME has not met the necessary requirements and qualifications. The bill also said besides the existing benefits for MSMEs, the MSME Development Council, through the DTI, the Department of Finance and the appropriate financing institutions, shall establish a start-up fund for MSMEs to be sourced from the MSME Development Fund to provide financing for the development and promotion of MSMEs in priority sectors of the economy as specified in the MSME DevelopmentPlan. Meanwhile, National Unity Party Rep. Karlo Alexi Nograles of Davao City, chairman of the House Committee on Appropriations, and Party-list Rep. Jericho Nograles of PBA said their HB 1352 seeks to protect the welfare of informal workers in all economic units in private and public by transitioning them to formal employment and providing support to MSME toward decent and productive employment. “The number of informal workers has been increasing through the years, with estimates reaching as many as 25 million, or 77 percent of the country’s total employed. Most of the working poor are in informal employment, living in substandard conditions and unable to meet their basic needs,” the lawmakers said. “The informal economy covers a wide variety of activities, enterprises and workers under both selfemployment and wage employment. Most economically active women are in the informal economy. Most child workers are employed in many forms of informal work,” they added. The two lawmakers also said it is a policy of the State to support the economic units, particularly MSMEs, to realize the objective of decent work for all, which is essential to the achievement of inclusive development and support the development of social and solidarity economy organizations. “The government must implement priority measures needed to facilitate the transition of workers and economic units from the informal to the formal economy while respecting fundamental rights and ensuring opportunities to income security, livelihood and entrepreneurship, promote the creation, preservation and sustainability of enterprises and decent jobs in the formal economy and the coherence of labor legislations, macroeconomic, employment, social protection and other social policies, and prevent the informalization of formal economy, as defined herein,” they said.

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Monday, September 5, 2016 A3

Traffic woes push demand for area-specific hotels

By Ma. Stella F. Arnaldo

@Pulitika2010 Special to the BusinessMirror

RAFFIC congestion in the metropolis is creating a demand for more business hotels to be built in certain areas previously overlooked by hotel owners and operators.

This was the obser vation of Jose Mari del Rosario, president and CEO of Microtel Inns & Suites (Pilipinas) Inc. and Microtel Development Cor p. (MDC), as the company launched its newest hotel brand, TRYP by Wyndham geared for young, modern travelers. MDC is the hospitality arm of the Phinma Group. “Business hotels are very much influenced by location; and the growing economic activity plus the traffic gridlock [in Metro Manila] calls for new needs arising,” he told the BusinessMirror. “Even within the Ortigas area, the BPOs [business-process outsourcing], and other businesses along C5 are all our loyal corporate clients. They were complaining how difficult it is to go to and from the Ortigas CBD [central business district] hotels.” This demand is being met partly by Microtel. He stressed: “Our location at the Microtel UP Technohub, for instance, is pioneering. Up to the day we opened, Sulo Hotel was the only decent accommodation

in that part of Quezon City for decades.” In contrast, the luxury segment in the metropolis, “is maxed out at the moment given the number of rooms opened by the casinos,” del Rosario asserted. In the last two to three years, several luxury hotels have opened along the bay area, such as Solaire Resort and Casino, Crown and Nobu Hotels at the City of Dreams, Conrad Manila, and Okada Hotel, among others. At the 27th Philippine Travel Mart last Friday, Microtel informally launched TRYP by Wyndham, a “unique” hotel brand designed to appeal to the millennial market, families, conference participants and foreign travelers. Del Rosario said: “TRYP by Wyndham is a select-service hotel [hybrid between limited-service and full-service] with more facilities and services.” Construction of the first TRYP in the Philippines is ongoing and will open by the first quarter of 2017 at the Mall of Asia (MOA) area in Pasay City. Asked to differentiate between their two hotel brands, he explained that Microtel by

Artist’s perspective of the 191-room TRYP by Wyndham at the Mall of Asia complex, Pasay City. To open in the first quarter of 2017. Images courtesy Microtel Pilipinas

Wyndham “is a limited-service hotel: nofrills, with limited facilities and amenities, typically without multiple restaurants or large banquet facilities.” The 191-room TRYP hotel at the MOA complex “will have a restaurant, meeting rooms, rooftop pool, fitness center and concierge. It will also offer specialty guest room types, like Family Rooms with bunk beds for young families traveling with children; Fitness Rooms complete with exercise equipment; and Media Room, which features high-tech multimedia to create and interactive, entertaining atmosphere.” TRYP is located in “exciting cities,” like Paris, Berlin, Barcelona, New York, São Paulo and Brisbane. “It appeals to modern travelers who seek new experiences

and spend time discovering the city and immersing in the local culture,” he added. Under this brand, existing hotels can be converted to TRYP, unlike Microtels, which are all newly constructed accommodations. Del Rosario said TRYP is a timely brand, to launch as “young, urban travelers make up a substantial portion of today’s hotel guests. Launching an urban hotel brand ,such as TRYP, would allow us to provide what our modern travelers look for—local experience, value for their money and reliable Wi-Fi.” He added that the MOA complex is a “perfect location to launch this brand at this time because of the rapid developments not just within Mall of Asia but also in Entertainment City and nearby fully integrated

commercial facilities.” A separate master franchise agreement between Wyndham Worldwide and Microtel Pilipinas covers the establishment of the TRYP hotels in the Philippines. Under said agreement, the all-Filipino hospitality firm is committed to develop at least eight TRYP hotels in 10 years. “We are targeting other sites in Metro Manila, Palawan, Boracay and Cebu. Like the Microtel formula, some will be under joint venture, and others full franchise. Again, like our experience with Microtel, we insist on operating them under a management agreement. [But] the first one in Mall of Asia will be company-owned,” del Rosario said. He emphasized that TRYP will be “unique” just like Microtel and there are no other local hotel brands like it. It is, however, comparable with international chains, like AC by Marriott and Aloft of Starwood. “We are targeting the young urban professionals/millennials, families, conference/trade show attendees and foreign travelers. Average room rate per night shall be $100, or approximately P1,000 more than our Microtel rates,” he said. “What will set the TRYP brand apart would be the presence of our local and connected associates who have a shared passion for the city and giving guests memorable localized experiences. Our associates will guide guests to the most authentic experiences available—great local cuisine, best places to score shopping bargains, best museums to visit and the latest events happening in the city, among others,” del Rosario underscored.

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BFAR to audit all seafood exporters 826,177 kg T By Jasper Emmanuel Y. Arcalas

@jearcalas

he Bureau of Fisheries and Aquatic Resources (BFAR) said it will review and audit all seafood exporters in the country, following the hepatitisA outbreak in America that was linked to frozen scallops exported by a Cebu-based company. “The [BFAR] order is not only to audit De Oro Resources Inc. [Dori], but it is going to be a full assessment and product system audit of other seafood exporters in the country,” BFAR Spokesman Nazzer Briguera told the BusinessMirror. Briguera said Dori, the report-

ed exporter of hepatitis A-stricken frozen raw scallops to America, has coordinated with them. The BFAR has already sent an investigation team to reevaluate and audit the company. It already suspended the operations of Dori to allow the state

The volume of thePhilippines’s scallop exports in 2014

agency to conduct reassessment, reevaluation and traceability audit of the company. “The BFAR directed the De Oro Resources Inc. to suspend the distribution of its existing inventory of fishery products and to recall all previously distributed products belonging to the same batch or of the same distribution period,” the BFAR said in a statement released on Friday. The BFAR also temporarily suspended Dori’s accreditation to export fishery products. “The said emergency measures

are implemented to arrest possible contamination of the virus, if the same truly exists, as established by the thorough assessment and investigation on the matter,” the BFAR added. In mid-August, the US Food and Drug Administration said laboratory tests found hepatitis A in imported scallops from the Dori. These scallops have been identified as the likely source of an outbreak of the virus in Hawaii, according to an Associated Press report. The Hawaii Department of Health said the frozen scallops

were served raw at a sushi chain, probably causing the outbreak. Hawaii has announced a statewide embargo on the product, meaning businesses are not allowed to sell them and consumers are advised not to eat them. BFAR Assistant Director for Technical Services Drusila Esther E. Bayate said it was only the state of Hawaii which reported an issue regarding the exported scallops. “We’ve been exporting for so long and we didn’t experience any issues before,” Bayate told reporters on Friday. Bayate said they are confident that the hepatitis A outbreak wasn’t caused by the scallops from the Philippines. “We believe that it was not from us, given the fact that there are also other exporters of scallops in America,” Bayate said. The BFAR said the Philippines has

been exporting scallops since 1976. According to the BFAR, the country exported 826,177 kilograms of scallops valued at $6 million in 2014. Countries that import scallops from the Philippines are Hong Kong, Japan, Korea, the United States, Taiwan, Malaysia and Vietnam. Of the 826,177 kg, Dori exported a total of 10,909 kg of scallops, or nearly 3 percent of the total exports in 2014. The BFAR said there has been increased demand for Philippine seafood products, particularly in the European Union, since the implementation of Philippine Seafood Traceability Program in 2013. “Confident of the seafood safetymanagement system in place, we are deeply concerned upon receiving alert notification from the US that Philippine scallops have been linked to hepatitis A virus outbreak in Hawaii,” the BFAR said.

Duterte flies to Laos to attend Asean Leaders’ Summit By Manuel T. Cayon Mindanao Bureau Chief @awimailbox,

David Cagahastian @davecaga,

Rene Acosta

@reneacostaBM,

& Butch Fernandez @butchfBM

espite the deadly bombing in Davao on Friday, President Duterte will not change his schedule and will proceed with his trip to Lao PDR on Monday for the Association of Southeast Asian Nations (Asean) Leaders’ Summit. Communications Secretary Martin M. Andanar said Mr. Duterte will assign Executive Secretary Salvador S. Medialdea as the caretaker officer while he is abroad the whole week for the Asean Leaders’ Summit. Andanar said President Duterte’s trip to Indonesia will push through after the Asean event in Laos. While in Laos, Mr. Duterte is scheduled to meet with nine heads of state, although the final list of heads of state that he would meet has yet to be released. Earlier, President Duterte said he would hold bilateral meetings with the leaders of China, the United States and Russia at the sidelines of the Asean Summit. Mr. Duterte, however, said he would not bring up the issue on the ruling of the United Nations’ Permanent Court of Arbitration (PCA) in the case filed by the Philippines against China to clear up conflicting claims over areas of the South China Sea. He said he does not want to antagonize China regarding the PCA’s verdict in favor of the Philippines. But President Duterte said he would speak about the South China Sea issue should any of the participants bring it up during the meeting. In the bilateral talks with US President Barack Obama, Mr. Duterte said he would defend the government’s efforts against illegal drugs despite the condemnation by the United Nations and the US over alleged human-rights violations in the war against drugs. In the Asean Summit in Laos, the chairmanship of the Asean will be passed on to the Philippines, which will host the Asean Leaders’ Summit and related meetings in 2017.

Senate oversight

At the Senate, senators are not rushing to wield their oversight function to review President Duterte’s “state of lawlessness” declaration, which allows the Chief Executive to deploy the

Armed Forces of the Philippines (AFP) to augment the Philippine National Police (PNP) in battling crime and terrorism. Senate Majority Leader Vicente C. Sotto III said senators are not inclined to “get in the way,” as government forces go after terrorists and suspected drug lords. He said the senators, despite having legislative oversight prerogatives, are not automatically empowered to review a formal executive order, which is expected to be issued following last week’s issuance of “state of lawlessness” by the Malacañang. But Senate Minority Leader Ralph G. Recto on Sunday suggested that President Duterte should consider convening the National Security Council and the Legislative-Executive Development Advisory Council (Ledac) after Mr. Duterte returns from his scheduled trip to attend the Asean Summit in Laos. Recto proposed that President Duterte call separate meetings with members of the NSC and Ledac “so that other leaders of the nation could help him develop policies and programs that would crush the resurgent Abu Sayyaf.” In a statement, Recto recalled that Ledac, which he described as “another productive sounding board,” had served three former presidents, as well as a forum to discuss cures to the nation’s ills, “before it was mothballed during the Benigno Aquino III administration.”

Tighter security

Meanwhile, the public should expect to see the presence of soldiers in places of public convergence and other strategic areas around the country in the next days, following the declaration of state of lawlessness by President Duterte as an offshoot of the bombing in Davao City on Friday. While patrols and heavier presence of policemen and soldiers would be seen in Davao, where the weekend bombing has killed at least 14 people and wounded 67 others, tighter security would also be implemented in key areas around the country, including Metro Manila, as authorities address threats of terrorism. Police investigators were still working to get clues on the identities of people behind the powerful blast, which the Mindanao-based Abu Sayyaf Group (ASG) initially admitted, but later blamed on an ally, Daulat Ul Islamiya, saying it was a sympathy attack against the ongoing military offensive in pursuit of the ASG in Sulu. “We already said the intensity of the ongoing massive combat operations against the ASG will

PEOPLE offer flowers at the blast site. manuel cayon

cause them to think about other actions and even the President said that,” military public affairs office chief Col. Edgard Arevalo said on Sunday. “Diversionary, yes, but it can be retaliatory. But we have been saying in the Armed Forces whether there is an ongoing operation there is no substitute to being vigilant,” he added. On Saturday both Armed Forces chief of staff Gen. Ricardo Visaya and PNP chief Director General Ronald M. de la Rosa put the AFP and the PNP under red-alert status to fully respond to terrorism and address any similar threat around the country. But Arevalo said for the military, the security alert only covered the Eastern Mindanao Command, the Western Mindanao Command and the Joint Task Force NCR. All other areas and units are under blue alert. On the other hand, de la Rosa said that, while the bombing was only confined in Davao City, the security condition was adopted in order to ensure that other groups will not take advantage of the situation. “Based on historical data and experience, some quarters, including criminal elements and threat groups, may take advantage of the situation to foment chaos, fear and instability as means to promote their own interests,” he said. “The PNP, in cooperation with the AFP, will not allow this incident in Davao City to escalate and spill over into other key cities of

Mindanao,” de la Rosa added. Aside from the strengthened presence of soldiers in places of public convergence as ordered by Defense Secretary Delfin N. Lorenzana in the aftermath of the bombing, the military will also increase its checkpoint activities in strategic areas around the country. “We ask our people to bear with us as we dutifully, but courteously, conduct our checkpoints and increase our presence in some areas,” Arevalo said. The Army’s 3rd Infantry Division, which has jurisdiction over Western and Central Visayas, said it will fully implement the intent of the President. “For the next few days, expect the presence of military personnel deployed in identified places,” said 3rd ID commander Major Gen. Harold Cabreros, but he dismissed fears that it will reflect a negative notion of martial law. Cabreros assured nothing should worry the people because the military and police will act within the bounds of the law. “The President himself said there’s no such thing as martial law and we will abide with that. We will, instead, tighten and maximize security within the area through increased security patrols in the known entry and exit points of the islands, vital installations, public places and occasional conduct of checkpoints with the joint effort with PNP counterparts to ensure safety of

the people,” he said.

ASG issued warnings

In Davao City the BusinessMirror learned that the government knew of an impending attack by the Abu Sayyaf, including the day it would happen, but no one knew the exact place where the militants would strike. Talking with reporters at the blast site, President Duterte said the ASG nearly pulled out an attack two days earlier, on a Wednesday. He said the bomb explosion at the open-air massage section of the night-market area was more likely an Abu Sayyaf handiwork, than by any other groups, including the drug lords. He disclosed that the ASG has issued warnings of an attack following his order to the military to crush the militants in the southwestern Mindanao islands of Sulu and Basilan. A crude bomb went off at 10:30 p.m. on September 2 at the middle of a row of massage attendants along Roxas Avenue in Davao, at the night market fronting the Ateneo de Davao University, killing 14 people and injuring 67. “We are ready for this, I remember having warned everybody that there is a reprisal coming from Sulu,” the President said. A government executive who is heading an office in Cotabato City in an acting capacity said the office received a warning of an impending attack. “The warn-

ing was sent through facsimile at about 4:30 p.m. that Friday.” “Maybe the problem with using the fax service is the timing. I believe that by that time, many government offices would be preparing to leave the office and were only wrapping up their work. It is unlikely that they would be looking at the fax. Maybe the next time, the warning should be sent via mobile text message,” he told the BusinessMirror. President Duterte said this city “is very porous,” but emphasized that “we could not just frisk anybody for just any reason.” Mr. Duterte has ordered a lockdown of the city beginning at 5 a.m. on Saturday, when he talked with reporters. He also declared a state of lawlessness for the entire country, allowing the police and the Army to set up checkpoints and conduct searches. He assured, however, that Davao City remains safe. “There is no criminality here except terrorism.” De la Rosa, meanwhile, said investigators have zeroed in on one male and two female suspects in the bombing. Eight witnesses have also surfaced, but he declined to name them for security reasons. City Mayor Sara Duterte-Carpio attended a memorial mass at the blast site on Saturday as people wearing white attended. Archbishop Romulo Valles of Davao City led the concelebrated mass, where families and relatives of victims laid flowers and lit candles in front of the makeshift altar.

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Zika virus in Singapore likely evolved from Southeast Asia

he Zika virus behind an outbreak in Singapore was not imported from South America, Singapore’s Ministry of Health said in a statement on Saturday. Analysis by the National Public Health Laboratory and the Bioinformatics Institute discovered that the Zika virus found in two patients from the first cluster in the area of Aljunied Crescent and Sims Drive belongs to Asian lineage, according to the statement. The virus in Singapore likely evolved from a strain already circulating in Southeast Asia, and was not imported from South America, where the outbreak has been linked to a condition called microcephaly, in which infants are

born with abnormally small heads. The research team is expected to release more details shortly, according to the statement. There were 26 new cases of locally transmitted Zika virus infection in Singapore on September 3, the ministry confirmed. It said on Sunday that it is also considering letting suspected Zika-infected patients stay home while their blood and urine samples are tested, an approach that is in line with the ministry’s view on those who test positive for dengue and aren’t warded in hospitals. Bloomberg News

IN this May 23 file photo, an Aedes aegypti mosquito sits inside a glass tube at the Fiocruz institute, where they have been screening for mosquitos naturally infected with the Zika virus in Rio de Janeiro, Brazil. The mosquito-borne Zika virus was recently found in Singapore. AP

Bomb blast hits train in southern Thailand, killing 1

ANGKOK — The police say a bomb has exploded and hit a train in southern Thailand, killing one railroad worker and injuring another. Police Capt. Pramoj Juichuay says the bomb was placed on the tracks and exploded

when the train passed over it as it was passing a station in Pattani province at around 5:30 p.m. on Saturday. The bomb blast blew off the last carriage of the train. The train was on its way from Sungai Golak to Hat Yai, near the border with Malaysia.

Southern Thailand, which has a majority Muslim population in the predominantly Buddhist country, has for years been in the grip of a separatist insurgency. The insurgents regularly carry out bombings and assassinations against government targets. AP

Monday, September 5, 2016 A5

Indian prime minister offers loan, defense cooperation in vietnam

Indian Prime Minister Narendra Modi speaks at a press conference with Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi, Vietnam, on September 3. Military cooperation tops the agenda during Modi’s stop in Vietnam, just before he travels to China to attend the G-20 summit. AP

A NOI, Vietnam—Indian Prime Minister Narendra Modi has offered Vietnam a loan of $500 million to strengthen its defense capacity amid China’s intensifying presence in the disputed South China Sea. The so-called Line of Credit was announced after Modi’s talk with Vietnamese Prime Minister Nguyen Xuan Phuc during his official visit to Hanoi, a day before he is scheduled to travel to China to attend

the G-20 summit. Military cooperation tops the discussions between Modi and Phuc. A dozen agreements were signed, including one on cooperation of Indian and Vietnamese navies and a contract between an Indian shipbuilder and Vietnam’s coast guard. India, which also has a border dispute with China, has been vocal on the issues in the South China Sea, calling for freedom of passage in the international waters. AP

Monday, September 5, 2016 • Editor: Lyn Resurreccion

HK votes in test of Beijing’s influence over the territory

ong Kong began voting on Sunday in a legislative election that will test the appeal of a new wave of anti-China activists and set the stage for future political fights over Beijing’s control over the city. The Legislative Council (LegCo) election is the first since police clashes with student protesters two years ago thrust the former British colony’s struggle for greater democracy into the global spotlight. The scuffles exposed rifts in Hong Kong’s political camps, with some prodemocracy advocates demanding a sharper break with China and other more establishment politicians calling for the ouster of the city’s Beijing-backed leader. The result, expected on Monday, will impact Chief Executive Leung Chun-ying’s ability to implement his agenda in the Asian financial hub and get reelected in March. Also at stake is the opposition’s capacity to block legislation with more than a third of the chamber’s 70 seats, a key barrier to controversial bills like the proposed election overhaul that sparked the mass “Occupy” rallies in 2014. That power held by the opposition “is the only thing preventing the government from reintroducing the political-reform package against the will of Hong Kong people,” said Chung Kim-wah, a political scientist at the Hong Kong Polytechnic University. “It is important for the opposition to hold that majority if LegCo is to remain a balance to the executive power,” he said, referring to the legislature. Since the last legislative election in 2012, Hong Kong has seen a series of political clashes over whether China is preserving the “high degree of autonomy” it promised before regaining sovereignty almost two decades ago. The disappearance last year of five local men who sold books critical of the ruling Communist Party drew international protests after they were revealed to be in the custody of mainland Chinese authorities. Underlying the election campaign are worries about rising competition from mainland Chinese workers, sky-high housing costs and a slowing economy. Growth in 2016 is forecast to slow to a seven-year low of 1.2 percent, according to a Bloomberg survey. A lack of reliable polling and a system in which lists of candidates vie for multiple seats in each district makes predicting the outcome difficult. Thirty-five seats represent geographical districts, while 30 represent various professions, industries and specialinterest groups, such as medicine, finance and agriculture. Five more “super seats” are selected by citywide vote.

Red line

Legislators under the “pan-democratic” umbrella currently hold 27 seats, compared with 43 in the pro-establishment group. That gives the opposition the power to slow legislation with filibusters and block changes to the city’s charter, which require support from two-thirds of the chamber. The professional seats are dominated by Beijing loyalists, damping the fractious prodemocracy camp’s hope of winning a majority for the first time since the UK handed Hong Kong back to China in 1997. Maintaining unity has become even more challenging as more-radical parties push for self-determination or even independence from China. The government has drawn a red line on advocacy of independence, barring six candidates from running and requiring hopefuls to sign a form acknowledging that the city is an inalienable part of China. Still, some so-called localists have made the cut. Success in Sunday’s vote could give them a greater platform to challenge China.

Anti-Leung campaign

H o l d i n g those views risked “grave consequences,” said Zou Pingxue, director of Hong Kong and Macau Basic Law Research Centre, Shenzhen University. “The Hong Kong government took effective measures to deal with it, and I think this is the right thing to do.” Leung has become the target of a cross-party campaign to urge Beijing to not support him for another five-year term as Hong Kong’s leader. Leung, who refused to speak with students during the 79-day Occupy protest, is blamed for failing to calm political divides in the city. He hasn’t said if he wants to stay on. Bloomberg News

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Pope declares Mother Teresa a saint and model of mercy

ATICAN CITY—Pope Francis declared Mother Teresa a saint on Sunday, honoring the tiny nun who cared for the world’s most destitute and holding her up as a model for a Catholic Church that goes to the peripheries to find poor, wounded souls.

Applause erupted in Saint Peter’s Square even before Francis finished pronouncing the rite of canonization at the start of Mass, evidence of the admiration Mother Teresa enjoyed from Christians and non-Christians alike. For Francis, Mother Teresa put into action his ideal of the church as a merciful “field hospital” for the poorest of the poor, those suffering both material and spiritual poverty. By canonizing her during his Jubilee Year of Mercy, he, in some ways, is making her the icon of his entire pontificate. Hundreds of Missionaries of Charity sisters in their trademark blue-trimmed saris had front-row seats at the Mass, sitting under a searing hot sun and blue skies alongside 1,500 homeless people and 13 heads of state or government, including Queen Sofia of Spain. “Her heart, she gave it to the world,” said Charlotte Samba, a 52-year-old mother of three who traveled with a church group from Gabon for the Mass. “Mercy, forgiveness, good works: It is the heart of a mother for the poor.” While big, the crowds were not as large as the 300,000 who turned out for Mother Teresa’s 2003 beatification, thanks in part to security fears in the wake of Islamic extremist attacks in Europe. Those fears prompted a huge, 3,000-strong law-enforcement presence to secure the area around the Vatican and close the airspace above. Nevertheless, those on hand were jubilant to have made the journey—nuns, priests, volunteers, pilgrims and tourists clutching the coveted 100,000 tickets issued for the Mass. One group of 40 Indian nationals traveled from Macerata, Italy, to honor a woman given India’s highest civilian and humanitarian awards for her work in the slums of Kolkata. Another group of 100 drove from Kosovo toting a banner that read: “Mother Teresa: Pray for Us.” While Francis is clearly keen to hold Mother Teresa up as a model for her joyful dedication to society’s outcasts, he is also recognizing holiness in a nun who lived most of her adult life

100k

The number of tickets issued for the Mass for the canonization of Mother Teresa in spiritual agony, sensing that God had abandoned her. According to correspondence that came to light after she died in 1997, Mother Teresa experienced what the church calls a “dark night of the soul ”—a period of spiritual doubt, despair and loneliness that many of the great mystics experienced. In Mother Teresa’s case, it lasted for nearly 50 years—an almost unheard of trial. For the Rev. Brian Kolodiejchuk, the Canadian priest who spearheaded Mother Teresa’s saint-making campaign, the revelations were further confirmation of Mother Teresa’s heroic saintliness. He said by canonizing her, Francis is recognizing that Mother Teresa not only shared the material poverty of the poor, but the spiritual poverty of those who feel “unloved, unwanted and uncared for.” “What she described as the greatest poverty in the world today [of feeling unloved] she herself was living in relationship with Jesus,” he said in an interview on the eve of the canonization. Francis has in many ways modeled his papacy on Mother Teresa’s simple lifestyle and selfless service to the poor: He eschewed the Apostolic Palace for a hotel room, he has made welcoming mig rants and the poor a hallmark and has fiercely denounced today’s “throwaway” culture that discards the unborn, the sick and the elderly with ease. In keeping with her spirit, he was treating 1,500 homeless people bussed into Rome for the Mass to a pizza lunch in the Vatican auditorium afterward. Sunday’s festivities honoring Mother Teresa weren’t limited to Rome: In Kolkata, where she spent a lifetime dedicated to the poor, a special Sunday Mass was held at the order’s Mother House.

Pope Francis celebrates the Canonization Mass of Mother Teresa in Saint Peter’s Square at the Vatican on Sunday. AP/Gregorio Borgia

Volunteers and admirers converged on Mother House to watch the canonization ceremony, which was being broadcast on giant TV screens in Kolkata and elsewhere. Sisters of Charity volunteers planned to distribute food to the poor nearby after the ceremony, and community meals were being served across Catholic parishes in India on Sunday—a symbolic reference to Mother Teresa’s lifetime of service to humanity, said the Rev. Savarimuthu Sankar of the archdiocese of New Delhi. “Let the example of Mother Teresa inspire all of us to dedicate ourselves to the welfare of man-

kind,” said Indian President Pranab Mukherjee. Ceremonies were also expected in Skopje, Macedonia, where Mother Teresa was born, and also in Albania and Kosovo, where people of her same ethnic Albanian background live. Born Agnes Gonxhe Bojaxhiu on August 26, 1910, Mother Teresa came to India in 1929 as a sister of the Loreto order. In 1946 she received what she described as a “call within a call ” to found a new order dedicated to caring for the most unloved and unwanted, the “poorest of the poor.” In 1950 she fou nded t he Missiona r ies of

C ha r it y, wh ic h went onto be come a globa l order of nu ns— ident if ied by t heir t radema rk blue -t r i m med sa r is —a s we l l a s pr iest s, brot hers a nd l ay coworkers. She was awarded the Nobel Peace Prize in 1979. She died in 1997 after a lifetime spent caring for hundreds of thousands of destitute and homeless poor in Kolkata, for which she came to be called the “saint of the gutters.” Saint John Paul II, her most ardent supporter, fast-tracked her for sainthood and beatified her before a crowd of 300,000 in 2003. AP

Trump gets warm welcome in Detroit black church; some still skeptical

ETROIT—When Carletta Gr i f f i n hea rd Don a ld Trump call on Saturday from the pulpit of a black church for a “civil-rights agenda for our time,” she heard a man talking from the heart, with affection for her community. “What he said sealed the deal for me,” said Griffin, 41, an adjunct professor at the University of Detroit Mercy, while leaving the Great Faith Ministries International where the Republican presidential nominee received a warm welcome—and even a prayer shawl—as he delivered brief, scripted remarks and quoted

Scripture. “I heard a man speaking from his soul,” Griffin said. “The African-American community has been beholden to the Democratic party for 50 years? Where’s that gotten us?” Ronald Moore, 62, was in the pews, too. But the human-resources retiree heard what he’s sure were words written by black members of Trump’s entourage: his former Republican presidential rival Ben Carson and Omorosa Marigault, the reality TV star and Trump’s director of A frican-A merican outreach, both of whom sat next to Trump in the front row for the church service as he smiled

and swayed to the music. “He acknowledged the history of the black church? Please. He’s never said anything like that before,” Moore said. “He’s speaking around our shoulder to the suburban white Republicans who don’t want to vote for a racist.” Monay Fort, 49, said she was struck by Trump’s tone—“he was being a lot nicer than he is front of white people.” She said she wouldn’t say Trump was “faking it” but she, too, questioned the prepared remarks. “If you have people in your heart you don’t need a script to talk to them,” she said. Trump is polling close to zero

with black voters, but came to the predominately black city on Saturday to make his pitch, his first campaign visit to a black church. It was a far cry from the approach he’s taken at rallies largely attended by white voters, in which he’s asserted that blacks lead lives of poverty and violence and questioned what they have to lose by voting for him. His Democratic rival, he charges, is a “bigot” who cares only about black votes. “I am here today to listen to your message and I am doing that,” Tr ump said. He told the congregation that he had w ritten his remarks and meant

them “ from the hear t.” He said the A frican-A merican church was the “conscience of our country,” and that it was from black churches that the civil-rights movement “ lifted up its soul and lifted up our nation.” He called the African-American faith community “one of God’s greatest gifts to America and to its people.” He delivered sections of his standard stump speech on the economy, but spoke in reserved tones, promising his economic policies would be “so good for Detroit” and that the A frican-A merican community would benefit with jobs. TNS

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Monday, September 5, 2016

May sees ‘difficult times ahead’ for UK post-Brexit

rime Minister Theresa May warned there were “difficult times ahead” for the United Kingdom economy in the wake of the country’s vote to leave the European Union (EU).

May was speaking as she traveled to the Group-of-20 (G-20) summit in Hangzhou, China, where she’ll make the case that Britain can be a champion of free trade, while warning of the risk of antiglobalization sentiment from those who see themselves hurt by the lowering of barriers. “I won’t pretend it’s all going to be plain sailing,” she told reporters onboard her plane, when asked about the economy. “There will be some difficult times ahead.” May said different pieces of data had sent “different messages” about how the economy was responding to the Brexit outcome, but that businesses she had spoken to had told her “let’s get on with it, let’s make a success of it.” She said she saw a role for Britain as a global champion of free trade, but added the poorest in society needed to be protected. “We can’t ignore the fact that there’s sentiment out there, which is antiglobalization,” she said. “We need to consider how, when we put these free-trade arrangements in place, they’re actually going to benefit everybody.”

Obama: Trade deal with UK still not top priority

P r e si d e n t B a r a c k O b a m a stood by his war ning t hat Br itain w il l have to wait for a post-Brexit trade deal w ith the US, say ing both countr ies have ot her pr ior it ies. Obama used an April visit to London to warn Britain it would be at the “back of the queue” for a trade deal if it voted to leave the EU. Speaking alongside May ahead of the G-20 summit in Hangzhou, China, he said this had been a statement of fact, rather than a threat. “I never suggested that we will quote unquote punish Britain,” he said in response to a question from a UK journalist. “I was asked about the viability of negotiating a separate trade deal between the US and the UK.” He said the US was focused on its trans-Pacific and trans-Atlantic trade deals and “it would not make sense for us to put those efforts aside.” May was the second world leader with whom Obama held a one-on-one meeting at the G-20

British Prime Minister Theresa May (left) poses with Chinese President Xi Jinping before a group photo session for the Groupof-20 summit in Hangzhou in eastern China’s Zhejiang province on Sunday. AP/Ng Han Guan

in Hangzhou. He met on Saturday with Chinese President Xi Jinping, discussing human rights and South China Sea tensions, as well as areas of agreement between the two countries. Obama met May when she was home secretary, but, until Sunday, had only talked by phone with the new prime minister, who was elevated in July.

UK to be silent on Hinkley at G-20 talks, official says P

Hollande and his advisers have since July repeatedly sought reassurances that the project will proceed and failed to get firm commitments. For France, Hinkley Point is “an exceptional opportunity,” Finance and Industry Minister Michel Sapin said at a news conference on Thursday.

rime Minister Theresa May won’t be using her trip to the Group-of-20 (G-20) talks in China to announce her decision on the Hinkley Point nuclear-power project, a UK official said, in the latest sign that Britain’s new prime minister is preparing to block the deal. May arrived in Hangzhou, China, on Sunday for what is both her first international summit and Britain’s first appearance on the world stage since the country voted in June to leave the European Union. “I’ll be talking to other world leaders about the opportunities for trade around the globe that will open up for Britain following Brexit,” May said at Heathrow Airport before departing on Saturday. “My ambition for Britain is that we should be a global leader in free trade.” She will emphasize that the country can be a dependable partner, according to an official speaking on condition of anonymity before the trip. The statement may lead to raised eyebrows from her host, Chinese President Xi Jinping, and her fellow guest, French President François Hollande. Both were caught out in July when May said she needed more time to think about Hinkley Point, a proposed £18-billion ($24-billion) plant that would be developed by Electricité de France SA and onethird funded by state-owned China General Nuclear Power Corp. Hollande’s government is concerned the deal is going to fall through. The official said that May still plans to announce her decision in September, and that neither Xi nor Hollande had any reason to expect her to say something during the G-20.

May is due to hold one-to-one talks with Barack Obama, Vladimir Putin and Narendra Modi from India, but her toughest conversation is likely to be with Chinese President Xi Jinping. She said she’s still making up her mind about whether to let the Chinese-backed Hinkley Point nuclear-power station proceed. Asked if she trusted the Chinese, May replied, “of course we have a relationship with them and we have seen significant Chinese investment. What I want to do is build on that relationship.” She said her intended silence on the subject in China should not be taken as a sign she was against the project. “This is the way that I operate,” she said. “I don’t just come in and say I’m going to take the decision, I actually look at the evidence, weigh up the evidence, take the advice, consider that and then come to my decision. That’s exactly the process I’m going through. I’ve said a decision will be taken in September and it will. It’s not to be taken now, it will be taken later.” May confirmed she’d be asking Britain’s National Security Council to assess if Chinese investment represented a threat.

Security concerns

‘Golden age’

Central to the debate are Hinkley’s growing costs and security issues related to China’s involvement in such a strategic industry. May has spent the last six years as home secretary, responsible for counter-terrorism and counterintelligence. In China authorities see Hinkley as the start of a series of atomic projects in the UK that will serve as a shop window for future exports. Nick Timothy, one of May’s two chiefs of staff, wrote a year ago that China’s involvement could allow the government in Beijing to “shut down Britain’s energy production at will” in the event of a conflict. China General Nuclear Power Corp. was charged in federal court by US authorities last month with conspiring to steal nuclear secrets. It wasn’t initially clear whether May’s delay was simply because she was new in the role and hadn’t considered the project, or because she had fundamental doubts about it. But a visit to China would have been a good opportunity to announce the deal would go forward, so her reluctance to speak suggests she has serious questions.

Decision in September

The project also is of strategic importance for China, which would follow up its investment with a minority stake in a second nuclear plant at Sizewell and then a majority holding in another at Bradwell. Both projects in eastern England may deploy Chinese reactors. When Xi visited the UK last year, May’s predecessor David Cameron said relations between the two countries were in a “golden era.” The UK official denied this would be threatened if Hinkley Point were canceled, saying that Britain’s relationship with China wasn’t defined by one energy project. May repeated Cameron’s line on Saturday: “This is a golden era for UK-China relations and one of the things I will be doing at the G-20 is obviously talking to President Xi about how we can develop the strategic partnership that we have.” Putin told Bloomberg this week that ties with the UK haven’t been “the best lately” and will only improve if May rethinks her country’s closeness to the US and conducts a “more independent foreign policy.” Bloomberg News

Special ties

The US and UK are said to have a “special relationship” and have been close allies, but the alliance has been shaken by the UK vote to leave the EU. “This is her coming-out party,” Heather Conley, director of the Europe Program at the Center for Strategic and International Studies, said of May’s attendance

at the G-20. “It’s her first international event.”

Little clarity

Britain’s biggest business lobby said there’s still little clarity on the longer-term economic impact of the country’s decision to leave the European Union. As debate rages over how much weight to put on reports showing

some resilience since the June 23 referendum, the Confederation of British Industry (CBI) pointed to weaker sentiment and investment intentions as omens of slower future expansion. “Overall, the economy was on firm foundations prior to the referendum vote, which should stand it in good stead as it weathers the challenges arising from Brexit,” the London-based CBI said on Sunday. “Nonetheless, we are likely to see some deterioration in growth ahead.” T he group commented as it published its monthly “grow th indicator,” which showed the outlook remains weak. Companies’ ex pectations for pr ivatesector activity in the next three months rose in August, though the measure remains far below the average of the first ha lf of the year. “ W h i le sent iment m ight re cover to some degree as further det a i ls emerge of t he gover nme nt ’s pl a n s for t he Bre x it negot i at ions, it is l i kely to re ma in subdued,” t he CBI sa id. T hat could impact longer-ter m business dec isions, it sa id. UK factory activity reached a 10-month high in August, as an index of manufacturing recovered after a slump following the Brexit vote, IHS Markit said last week. A gauge of services, the largest part of the economy, will be published on Monday, and is also expected to show a partial bounce back from July. Bloomberg News

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A8 Monday, September 5, 2016 • Editor: Lyn Resurreccion

Bangladesh executes 5th Islamist party leader

3M The number of people killed in the 1971 independence war

Russian President Vladimir Putin (right) and Turkish President Recep Tayyip Erdogan shake hands during their meeting ahead of the Group-of-20 Summit in Hangzhou, China, on Saturday. Alexei Druzhinin/Sputnik, Kremlin Pool via AP

As Obama is still skeptical

US, Russia close on Syria deal

ANGZHOU, China—The United States is skeptical an agreement with Russia to decease violence in Syria can work but will keep pursuing it nonetheless, President Barack Obama said on Sunday as negotiators from both countries edged toward a deal. Obama, speaking on the sidelines of the Group-of-20 (G-20) economic summit in China, said the US and Russia still have “grave differences” about what’s needed to end Syria’s civil war and which opposition groups are legitimate targets for the US and Russian militaries. But he said “it is worth trying” to secure an agreement nonetheless, adding that negotiators were working “around the clock.” “We’re not there yet,” Obama said. “I think it’s premature for us to say there’s a clear path forward, but there’s the possibility at least for us to make some progress.” A deal could be announced as early as Sunday by US Secretar y of State John Ker r y and Russian Foreig n Minister Sergey Lav rov, said a senior US State

De pa r t ment of f ic i a l , add i ng t hat t he t wo countr ies were close to a deal but still had to resolve some issues. T he officia l wasn’t author ized to discuss the negotiations publicly and requested anonymity. Kerry and Lavrov have been deep in talks for weeks over a deal to boost US and Russian military cooperation to fight the Islamic State (IS) group and other extremists in Syria— a step Moscow has long sought. The emerging deal is expected to also include provisions to ensure aid can reach besieged areas of Syria and steps to prevent Syrian President Bashar a l- A ssad ’s gover n ment f rom bombing areas where US-backed rebels are operating. US officials have said that, as part of a deal, Russia would have to

halt offensives by Assad’s government, something it has failed to do over months of diplomatic efforts. They said the US must get rebels to break ranks with the alQaida-linked Nusra Front, a task that grew tougher after Nusra fighters last month successfully broke the siege of Aleppo, Syria’s largest city and the site of fierce recent fighting. Though negotiators have been hopeful a deal could come together while world leaders are gathered in Hangzhou for the G-20, that optimism has been tempered by the failure of previous ceasefire deals to hold. The US has long been wary of increasing military coordination with Russia in Syria’s civil war because it says Russia continues striking moderate, US-backed opposition groups in a bid to prop up Assad. The US wants Russia to focus exclusively on IS and al-Qaeda-linked groups. “ These are difficult negotiations,” Obama said. He added later: “If we do not get some buy-in from the Russians on reducing the violence and easing the humanitarian crisis, then it’s difficult to see how we get to the next phase.” Discussions about the intractable Syria conflict and the related fight against IS have been a major focus as world leaders gather for the G-20, which brings together the world’s major economies.

Obama, who met first on Sunday with new British Prime Minister Theresa May, also planned to discuss Syria when he meets with Turkish President Recep Tayyip Erdogan, their first sitdown since the summer’s failed coup in Turkey. The attempted overthrow in Turkey has accelerated the deterioration in the relationship between Turkey and the US. It led to Turkish accusations of US involvement, and those tensions have been aggravated by growing clashes between Turkish forces and US-backed Syrian Kurds. T he US, meanwhile, has expressed concern about Turkey’s recent operat ion s ac ross it s border into Syria. The Pentagon has backed the incursions, but said they shou ld only be aimed at IS fighters. Turkey has used t he operations to push bac k Syrian Kurds it accuses of seeking to claim more ter r itor y. For the US, the dispute is a reminder of its increasing entanglement in the long-standing local rivalries and conflicts exposed by Syria’s civil war. Since the failed coup, the US has been alarmed by Turkey’s diplomatic f lirtations with Russia, Assad ’s patron, and apparent softening of its tone about the need for Assad to be excluded from a political transition. AP

Nationalists set for gains in German state election

ERLIN—A nationalist, anti-immigration party looks set to perform strongly on Sunday in a state election in the eastern German region where Chancellor Angela Merkel has her political base. The vote comes as surveys show the German leader’s popularity has gone down from stellar to merely solid, a year after she took a decision that led to more than 1 million migrants being registered in her country in 2015. Polls ahead of the election in Mecklenburg-Western Pomerania show support for the threeyear-old Alternative for Germany, or AfD, party running at over 20 percent. That could put it in a position to overtake Merkel’s

conservative Christian Democrats for second place. Local AfD leader Leif-Erik Holm says it could even become the strongest party in the state legislature, but there’s no serious chance of it going into government. The state has been run for a decade by the parties that currently govern Germany. The center-left Social Democrats lead the regional government, with Merkel’s Christian Democrats as their junior partners. In the last state election five years ago, they polled 35.6 and 23 percent, respectively. Sunday’s election is the first of five regional votes ahead of a national election expected in just over a year. Mecklenburg-Western Pomerania is home to 1.6 million of

Germany’s 80 million people and is a relative political lightweight. It is, however, the state where Merkel has her parliamentary constituency, and it would be embarrassing for the chancellor if AfD overtakes her party. Merkel encouraged people in an RTL television interview on Friday “to give their votes to parties that work to solve problems, and for me, AfD is not one of them.” Mecklenburg, in Germany’s northeastern corner, is economically weak and has an unemployment rate well above the national average. It is currently the only place in Germany where the farright National Democratic Party is represented in the state legislature, though polls suggest it is

likely to lose its seats with some supporters switching to AfD. The sparsely populated coastal state is home to relatively few foreigners, but the migrant issue has, nevertheless, been prominent in the campaign, with AfD using it to attack the governing parties. New migrant arrivals in Germany have slowed drastically this year after spiking following Merkel ’s September 4, 2015, decision to allow in migrants who had piled up in Hungar y. Still, New Year’s Eve robberies and sexual assaults blamed largely on foreigners, as well as two attacks in July carried out by asylum-seekers and claimed by the Islamic State group, have fed tensions. AP

EW DELHI—Bangladeshi authorities executed a top Islamist party leader convicted of war crimes involving the nation’s 1971 independence war against Pakistan, officials said. Mir Quasem Ali, a leader of the Jamaat-e-Islami party, was hanged at 10:30 p.m. on Saturday, hours after several dozen family members and relatives met him for the last time inside Kashimpur Central Jail near the capital, Dhaka, said Proshanto Kumar Bonik, a senior jail superintendent. “We are doing our necessary formalities now. We will send the body soon to the ancestral home in Manikganj district for burial,” Bonik said. Immediately after the execution, Home Minister Asaduzzaman Khan said security measures were put in place to prevent unrest by Ali’s supporters, including deployment of paramilitary border guards and additional police in Dhaka and other cities. The Jamaat-e-Islami party, in a statement, protested Ali’s execution and called for an eighthour general strike beginning on Monday morning. The execution took place a day after Ali refused to seek presidential clemency. The president had previously rejected appeals for clemency by other Islamist party leaders facing execution. On Tuesday the Supreme Court rejected a final appeal for reviewing Ali’s death sentence handed out by a special tribunal two years ago. After the ruling, the Jamaat-e-Islami party called for a daylong general strike across the country last Wednesday, but got little response. A special tribunal dealing with war crimes sentenced Ali to death in November 2014. The 63-year-

old member of Jamaat-e-Islami’s highest policy-making body was found guilty on eight charges, two of which carried the death sentence, including the abduction and murder of a young man in a torture chamber. Ali was sentenced to 72 years in prison on the other charges. Ali built his fortune by establishing businesses from real estate to shipping to banking, and he was considered one of the party’s top financiers. He became the fifth Jamaat-eIslami party leader to be executed since 2010, when Prime Minister Sheikh Hasina formed the special tribunal to try suspected war criminals. Also executed was a close aide of former Prime Minister Khaleda Zia from the main opposition Bangladesh Nationalist Party. Jamaat-e-Islami is a key partner of Zia’s Bangladesh Nationalist Party in the opposition against Hasina. Hasina’s government says Pakistani soldiers, aided by local collaborators, killed 3 million people and raped 200,000 women in the 1971 independence war. Jamaat-e-Islami, which had openly campaigned against independence, has denied committing atrocities. Hasina has called the special tribunal trials a long overdue effort to obtain justice for the victims of war crimes, four decades after Bangladesh split from Pakistan. Her government has rejected criticism from abroad that the trial process did not meet international standards. The international human-rights group Amnesty International noted that the United Nations had raised questions about the fairness of the trials of Ali and other Islamist party leaders. “There is no question that the people of Bangladesh deserve justice for crimes committed during the War of Independence, but the death penalty is a human rights violation and will not achieve this. It is a cruel and irreversible punishment that most of the world’s countries have now rid themselves of,” said Champa Patel, Amnesty International ’s South Asia director, in a statement released on Saturday. AP

Authoritarian Uzbek leader buried

OSCOW—Uzbekistan’s widely criticized authoritarian leader Islam Karimov was hailed as a statesman and democrat by his government as he was laid to rest on Saturday in the ancient silk road city of Samarkand. The coffin of 78-year-old Karimov, whose death from a cerebral hemorrhage was announced on Friday, was placed in the renowned Registan square, flanked on three sides by Islamic schools covered in intricate, colorful tiles and topped with aqua cupolas. Thousands of men packed the square— women were excluded—to hear a mufti give a funeral prayer that said “Islam Karimov served his people.” The body was then taken to the Shah-i-Zinda necropolis, another architecturally significant site, for burial. Karimov became the leader of Uzbekistan in 1989, when it was a Soviet republic, and held power with ruthless determination throughout all of Uzbekistan’s independence. He crushed opposition, repressed the media and was repeatedly denounced by activists abroad for human-rights violations, including killings and torture. His Cabinet, however, said in a statement that Karimov “attained a high authority in the country and in the international community as an outstanding statesman, who has developed and implemented a deeply thought-out strategy of building a democratic constitutional state with a civil society and a market economy.” Karimov cultivated no apparent successor, and his death raised concerns that the predominantly Sunni Muslim country could face prolonged infighting among clans over its leadership, something its Islamic radical movement could exploit. Uzbekistan is ex-Soviet central Asia’s most

populous country and borders Afghanistan, making it of strategic interest to Russia and the United States. In a statement, President Obama said the US remains committed to its partnership with Uzbekistan as the country “begins a new chapter in its history.” Alexei Pushkov, head of the Russian parliament’s foreign affairs committee, retorted on Twitter that Obama “is mistaken if he thinks this new chapter will be written in Washington.” “The death of Islam Karimov may open a pretty dangerous period of unpredictability and uncertainty in Uzbekistan,” Pushkov told the Tass news agency on Friday. Given the lack of access to the strategic country, it’s hard to judge how powerful the Islamic Movement of Uzbekistan might be. Over the years, the group has been affiliated with the Taliban, al-Qaeda and the Islamic State group, and it has sent fighters abroad. Under the Uzbek constitution, if the president dies his duties pass temporarily to the head of the senate until an election can be held within three months. However, the head of the Uzbek senate is regarded as unlikely to seek permanent power and Karimov’s demise is expected to set off a period of jockeying for political influence. Karimov was known as a tyrant with an explosive temper and a penchant for cruelty. His troops killed hundreds of unarmed demonstrators with machine guns during a 2005 uprising, he jailed thousands of political opponents and his henchmen reportedly boiled some dissidents to death. “He left a terrible legacy. His successors will actively try to continue his policies,” opposition blogger Nadezhda Atayeva, who fled to France in 2000, told The Associated Press. AP

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www.businessmirror.com.ph | Monday, September 5, 2016

US, China join global climate deal H

ANGZHOU, China—Setting aside their cyber and maritime disputes, President Barack Obama and China’s President Xi Jinping on Saturday sealed their nations’ participation in last year’s Paris climate-change agreement. They hailed their new era of climate cooperation as the best chance for saving the planet. At a ceremony on the sidelines of a global economic summit, Obama and Xi, representing the world’s two biggest carbon emitters, delivered a series of documents to United Nations Secretary-General Ban Ki-moon. The papers certified the US and China have taken the necessary steps to join the Paris accord that set nation-by-nation targets for cutting carbon emissions. “This is not a fight that any one country, no matter how powerful, can take alone,” Obama said of the pact. “Some day we may see this as the moment that we finally decided to save our planet.” Xi, speaking through a translator, said he hoped other countries would follow suit and advance new technologies to help them meet their targets. “When the old path no longer takes us far, we should

turn to innovation,” he said. The formal US-Chinese announcement means the accord could enter force by the end of the year, faster than anticipated. Fifty-five nations must join for the agreement to take effect. The nations that have joined must also produce at least 55 percent of global emissions. The US and China together produce 38 percent of the world’s manmade carbon-dioxide emissions. The White House has attributed the accelerated pace to an unlikely partnership between Wa sh i ng ton a nd B e iji ng. To build momentum for a deal, they set a 2030 deadline for China’s emissions to stop rising and announced their “shared conviction that climate change is one of the greatest threats facing humanity.” The US has pledged to cut its

Chinese President Xi Jinping (center), US President Barack Obama (right) and United Nations Secretary-General Ban Ki-moon shake hands during a joint ratification of the Paris climatechange agreement at the West Lake State Guest House in Hangzhou in eastern China’s Zhejiang province on Saturday. How Hwee Young/Pool Photo via AP

emissions by at least 26 percent over the next 15 years, compared to 2005 levels. T he meeting of the minds on c limate change, however, hasn’t smoothed the path for other areas of tension. The US has criticized China over cyber hacking and human rights, and voiced

increased exasperation with Beijing’s growing assertiveness in key waterways in the region. Most recent ly, the US has urged China to accept an international arbitration panel’s ruling that sided with the Philippines in a dispute over claims in the South China Sea.

China views the South China Sea as an integral part of its national territory. The US doesn’t take positions in the various d isputes bet ween C hina and its Asian neighbors, but is concerned about freedom of navigation and wants conflicts resolved peacefully and lawfully. Meeting with Xi after the announcement, Obama said thornier matters would be discussed. He specifically cited maritime disputes, cyber security and human rights, though the president didn’t elaborate during brief remarks in front of reporters at the start of the meeting. After several hours of talks, the W hite House said Obama told Xi the US would keep monitoring China’s commitments on cyber security. The leaders also had a “candid exchange” over the arbitration case between China and the Philippines, the W hite House said. The ceremony opened what is likely Obama’s valedictory tour in Asia. The president stepped off Air Force One onto a red carpet, where an honor guard dressed in white and carrying bayonets lined his path. A girl presented Obama with f lowers and he shook hands with officials before entering his motorcade. But the welcome didn’t go smoothly. A Chinese official kept reporters and some top White House aides away from the president, prompting a US official to

intervene. The Chinese official then yelled: “This is our country. This is our airport.” Throughout his tenure, Obama has sought to check China’s influence in Asia by shifting US military resources and diplomatic attention from the Middle East. The results have been mixed. The Trans-Pacific Partnership, a massive trade deal the White House calls a cornerstone of the policy, is stuck in Congress. Obama planned to use the trip to make the case for approval of the deal before he leaves office in January. Climate represents a more certain piece of his legacy. Under the Paris Agreement, countries are required to set national targets for reducing or reining in their greenhouse-gas emissions. Those targets aren’t legally binding, but countries must report on their progress and update their targets ever y five years. Xi said he acted after China’s legislature voted on Saturday to formally enter the agreement. In the US, Senate ratification is not required because the agreement is not considered a formal treaty. Li Shuo, Greenpeace’s senior climate policy adviser, called Saturday’s declarations “a very important next step.” If the deal clears the final hurdles, he said, “we’ll have a truly global climate agreement that will bind the two biggest emitters in the world.” AP

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Monday, September 5, 2016

Surigao serendipity e

Editor: Carla Mortel-Baricaua

Story & photos by Bernard L. Supetran

ighteenth-century British literary giant Horace Walpole coined the word serendipity, which meant a fortunate happenstance based on a letter to a friend in his fairy tale, The Three Princes of Serendip. In his letter, the princes were always making discoveries, by accidents, of things which they were not looking for. Two centuries later, this pleasant surprise could very well refer to the charming southern getaway of Surigao, dubbed the “The City of Island Adventures.” It has the unique characteristic of having 17 islands and islets and 21 barangays, and for beach bums, that could only mean lovely shores, 20 times over with pockets of coves and crystal-clear water here and there. The provincial capital of Surigao del Norte, the city is an archipelagic paradise, with a merry mix of sun, sea, sand, seafood and everything in between. For a long time, it was known as the country’s nickel capital due to its abundant deposits, reputed to be the biggest in the world. But beyond the minerals in the mountain’s bosom, it is a virtual minefield of natural wonders, which have been overshadowed by its mining industry. Declared a city on August 30, 1970, it has preserved its rustic allure, despite the creeping urbanization. With its quaint charm hidden for so long a time, it has come out of its cocoon to showcase its countryside splendor. In its recent 46th charter day fete, Mayor Ernesto Matugas cited Surigao’s journey to progress and its emergence as a tourism and business hub in the Caraga region. Idyllic islands. Adventure begins in Basul island, a fine-sand beach which is just a paddling distance away from the post Almont Beach Resort in the outskirt village of Lipata. Dotted by coconut trees swaying in the breeze, it is a solitary world, minus the madding crowd of developed resorts. Its only facilities are nipa huts and crude wooden benches, but who cares? It is not every day you can have a tropical retreat like this unto yourself.

An interesting escape is Hikdop island, which boasts of short strip of fine-sand beach of Panomboyom and the Buenavista Cave, which impressive limestone formations, stalagmites, stalactites and magnificent columns will surely capture your fancy. Its main village, Buenavista—which literally means “good view”—offers an exhilarating vantage point of the archipelago. A unique attraction is the 391-meter wooden footbridge, which connects the island barangays of Cantiasay and San Pedro, the longest of its kind in the country. With its snaking length, it is the city’s little version of the iconic San Juanico Bridge, which connects two land masses. Other idyllic isles worth exploring are Zaragoza, Berok, Danawan, Sumilom, Sibale and Sagisi, which are as alluring as their exotic-sounding names. The city’s newest tourist spot is the 20-meter wide Bitaugan Whirlpool in Bayagnan Island, a rare tidal occurrence, which is a sight to behold with its swirling water and rippling sound, which can be witnessed from a safe distance. Looc and Mabua-Ipil beaches, in the city’s fringes, boast of smooth, multi-sized pebbles dissected by a cape where you can capture a sweeping view of both coastal areas. Dissected by a hill, both beaches can be seen by ascending a 100-step staircase, but the uphill trek is rewarded by a commanding view of the sea and mountain as they meet in the horizon. Day-Asan Floating Village, monikered the “Little Venice of Surigao,” offers a quaint view of houses on stilts amongst the mangrove forests, which can be accessed only by boat. A terrestrial wonder is Silop Cave System, a must-see with its 12 chambers and impressive limestone formation, stalagmites, stalactites and columns, which is fit even for beginners. Carved by the Creator’s hands, this cave system

Surigao Heritage Center features historical memorabilia

A war artifact in Battle of Surigao Strait Museum

Silop Cave in Surigao City

One lovely face from Bonok-Bonok Maradjaw Festival in Surigao City

has caught the attention of Philippine Speleological Society, the country’s largest congregation of cavers, which held their congress here a few years back. Beneath the surface of the sea, Surigao is an emerging dive spot with its lush marine life formed by the confluence of rich bodies of water. Scuba divers can plunge into the wondrous water world of Punta Bilar. Featured by Born to Be Wild TV program twice, the coral-rich marine sanctuary abounds in nudibranchs, notably the “Spanish dancer,” juvenile bamboo sharks, moray eels, cuttlefishes, octopus and an assortment of aquatic wildlife. Punta Bilar Dive Center can also take you to the other unheralded and undiscovered scuba spots around Surigao’s northern coasts. Cultural spots. For a glimpse of Surigao’s checkered past, swing by the Museo nan Surigao Heritage Center, a private archaeological and geologi-

cal museum at the bayside boulevard. Another historical whistlestop is the Battle of Surigao Strait Museum at the Luneta Park, which chronicles World War II’s last major naval encounter where US forces routed the Japanese Navy on October 25, 1944, after Douglas MacArthur’s return. Across it is the City Hall, which bears a historical plaque memorializing the first raising of the Philippine flag in Mindanao by Filipino revolutionaries on December 26, 1898, which ended Spanish rule. But perhaps, the most vibrant manifestation of Surigao’s rich culture is the annual Bonok-Bonok Maradjaw Karadjaw Festival, a ritual dance, which originated from the indigenous Mamanwa tribe. A soughtafter fest, Bonok-Bonok means heavy downpour,” while Maradjaw Karadjaw means “all the very best,” based on the belief that the heavy rains ensure the bountiful harvest. Set on September 9, the festivity

Mamanwa tribe in Mat-i, Surigao City

was later attributed to Saint Nicholas of Tolentino, the city’s patron saint, whose feast is observed the next day. Street dancers in colorful regalia paint the town red with well-choreographed dance steps and scintillating music through bugles and percussion, with the “festival queen” or head dancer holding Saint Nicholas’s image. Succulent cuisine. Surrounded by sea, Surigao also offers an exciting culinary journey in the Tilaw Food Festival which showcases it local cuisine comprised mostly of seafood. The city’s dining scene is also pulsating with the wide array of midrange restaurants offering grilled and kinilaw (vinegared) aquatic har-

ASHA-Magnums Butler to conduct 7-Star service training courses

xplore ways to deliver customer-service innovations by learning the essentials of world-class luxury hospitality service standards this September as the Asian School of Hospitality Arts (ASHA), in partnership with the world’s longest running and prestigious institution, Magnums Butler Academy (MBA), invites participants to take part in its forthcoming 7-Star service training courses. Now on its fifth run, the exclusive professional training sessions are facilitated by no less than United Kingdom’s first female butler to the British Royals, renowned MBA Director and Principal Trainer Josephine Ive. Listen and learn more about the dynamics of premier hospitality service standards and what constitutes genuine guest experience straight from Ive, as she brings to the training programs the depth of her almost 30 years of industry experience. A highly respected professional in the world of luxury service, Ive will extensively mentor participants about the importance of providing personalized luxury services and how to deliver them with successful impacts. Apart from learning the essentials of 7-Star luxury service and its beneficial impacts on modern hospitality

Punta Bilar’s enchanting dive site from Punta Bilar Dive Center

Josephine Ive with one of her students

service providers, the workshop-seminars offer basic to advanced developmental training for participants age 18 to 50 years old—from rank-and-file, junior management to junior supervisory levels—to develop further their

confidence, competence and overall professional service capacities. According to Ive, the fundamental objective of the sessions is to ensure that hospitality professionals and ser vice-oriented industries—

namely, hotels, resorts, cruise liners, gaming businesses, private villas and households, embassies, restaurants theaters, conference centers, corporate dining rooms and event planners—aiming to deliver 7-Star service fully understand the concept of the 7-Star service program. The one-day introductory course on 7-Star Service-in-a-Day Training Program was held on September 1 at the C3 Events Place in Northeast Greenhills, San Juan City. Another one-day conference was held on September 3 at the Summit Ridge Hotel in Tagaytay City. The more comprehensive five-day workshop on luxury 7-Star service butler training starts today and will run until September 9 at the Marco Polo Hotel Ortigas Manila. Registration fee is P45,000 for the five-day training workshop (inclusive of a 7-Star Ser vice Handbook, an International Certificate from Magnums Butler Academy, a Magnums Butler bronze lapel pins and meals). Discount privileges and priority seats are extended to partners and may be inquired through 0917-5626032. For registration and slot reservations for the upcoming workshops, call ASHA at 907-8642/ 0917-8787191 or visit asha.edu.ph.

vest. For a night cap, there are bars with live bands, music lounges, and home-grown coffeeshops, which serve as nocturnal watering holes. You can sink your teeth in the signature sayungsong, asticky rice snack wrapped in banana leaves produced in the coastal barangay of Mabua. With its concoction of adventure, nature and culture, Surigao City is definitely serendipity. Getting there: Surigao can be reached via daily direct flights from Manila and Cebu. Budget travelers can stay at Le Chard Place, which is near the airport and the mall, while the more sophisticated ones can stay at Hotel Tavern or Almont Resort Hotel, the city’s top accommodations.

New Korea MICE Bureau web site offers free round-trip flight to Seoul

orea MICE Bureau (KMB) is offering free flights to Korea, plus accommodation, along with other prizes, as part of an event to promote its newly upgraded web site. Open to all, the online promotion is designed to raise awareness of the KMB, the business events division of the Korea Tourism Organization, as well as the extensive support available for meetings hosted in Korea. First launched in 2009, KoreaConvention.org is the nation’s No. 1 online resource for anyone interested in holding meetings, incentives and other business events in Korea. The redesign provides an enhanced planning experience with updated meeting venues, accommodation database, MICE events calendar and free downloadable guides. Most notable feature is a new Request for Proposal page, which not only allows submission of event specifications but also enables event planners to track the progress of their application. “We want the new web site to be the ultimate planning tool for all events in Korea,” said Hee Jin Cho, head of the Korea MICE Promotion Team. “We aim to make life as easy as possible for organizers, along with showing them that Korea is an accessible, friendly meetings destination,” he added. To participate, entrants simply need to answer one question about the official KMB web site and supply their personal details to be eligible for a prize. Out of 54 winners to be selected, one winner will receive a roundtrip flight to Korea with five-star hotel accommodation for three days and two nights, three winners of Samsung Gear 360 and the rest a $20 Amazon Gift Card each. Acceptance of entries is from September 1 to November 30, with the winners to be announced on December 9. The Korea MICE Bureau regularly provides services and support to international events hosted in Korea, such a financial, marketing, site inspection and communications. Recent major events benefitting from these services include the 2016 Smart Water Grid International Conference, 2016 International Association for Dental Research General Session and the 2016 Rotary International Seoul Convention.

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Monday, September 5, 2016 A11

The Magic of Calamianes

he Calamian Islands, northeast of Palawan, is a magical place that feels very much like home. An archipelago inhabited mainly by Tagalog-speaking communities, Calamianes is as tropical as the Philippines can get—often sunny and rarely stormy, thanks to the massive limestones sheltering the islands from winds and monsoons.

in Banol Beach, a beach pocket that locals refer to as the Little Boracay of Coron. Banol’s gently sloping, sandy bottom and calm water are perfect for families with small children. The Coron Island tour ends with the extensive reefs of Siete Pecados Marine Park, named after the seven limestone peaks surrounding it. Inland attractions in town proper aren’t scant either. Souvenir shops, dive centers and restaurants serving world fare dot the streets. Adventure seekers can choose from two mountains to trek—Mount Tapyas and Mount Darala, the highest in Calamianes—then head over to Maquinit Hotspring to relax thereafter.

Giraffes freely roam in Calauit Safari Park.

Bulog, Malcapuya and Banana Islands

Fish abound in Banana Island just a few meters away from shore.

The most photographed scene in Coron Island is the entrance to Kayangan Lake from a viewpoint enroute to the lake itself.

Whether you’re in northeastern Busuanga or the historic southern island of Culion, Calamianes’s unspoiled hideaways captivate magic-seeking travelers both above water and underneath.

Busuanga

Magical adventures on this side of the Philippines often begin in the municipality of Busuanga, where Calamianes’s sole airport rests. From here, travelers can take a scenic 40-minute van ride through the winding and cattle-grazed countryside before landing on Coron, where diverse accommodations await. Accommodations are available in Busuanga, but because Coron is closer to the jump-off dock for island-hopping tours, it is usually a preferred base. The largest of the Calamian Islands, Busuanga covers nearly one-third of the land. It is, therefore, not surprising that you will find here the largest game reserve in the country, accessible via van or a four-hour boat ride.

Spanning 3,700 hectares of vegetated savannah, Calauit Safari Park houses a plethora of wildlife species, some transported from Kenya in the 1970s during Marcos’s rule. Endemic species, including the Palawan bearcats and Calamian deer, also inhabit the reserve. The most surreal experience of the two-hour walking tour, however, are the antelopes, zebras and giraffes freely roaming among people and feeding them with one’s bare hands. The marine route from Calauit Island passes by Malajon Island or Black Island, so named for the dark and commanding limestone cliffs along its sandy stretch. At the base of the cliffs lie twin caves, both glimmer ing w ith stalactites. One can swim in two natural cold water pools inside the bigger cave. Just within walking distance of the chalky shore are thriving reefs and remnants of a sunken ship believed to be a Chinese vessel. Nearly an hour from Black Island, in the town of

Banana Island’s sandy beach and snorkeling spots are perfect for beach lovers.

Concepcion, lies tranquil North Cay. A spit of palm-fringed, fine white sand jutting out of emerald waters, the cay is an arresting retreat in an endless azure horizon. The water glistens under the sun by day, and amid the resounding silence, you can hear nothing but the ebb flowing. People who want to maximize the tour can drop by Coral Garden to wade against meters of vibrant corals prior to a final stop at Lusong Point, where a sunken World War II Japanese tugboat rests in the middle of the sea. When it’s low tide, the keel protrudes to the surface, making snorkeling even more exciting.

Coron Island

Though part of the Coron municipality that comprises Busuanga, Coron Island deserves special mention for its colorful marine life, beautiful limestone-covered coves, award-winning lakes, and clean beaches—all within 30 minutes of Coron port. Guarding the cluster of

limestone-lined islets are the Tagbanua, who consider Coron Island their ancestral domain. As such, only two out of seven lakes around the island are open to visitors. The rest are considered sacred grounds by the indigenous group. Most renowned in the island are the lakes of Kayangan and Barracuda, both multiawarded as the cleanest and greenest lakes in the country. Enclosed in a blanket of karst limestones, the lakes’ waters remain pure, glassy and brackish. After a visit to the lakes, boats make a stop at the outer section of Twin Lagoon. During low tide, visitors can swim inside a small opening from the outer lagoon to the inner lagoon. During high tide, the opening is covered in seawater, so one must use a bamboo ladder to get to the other side. Deep blue and surrounded by the sound of swiftlets and rocks hovering hundreds of feet in the air, a swim in Twin Lagoon is both unnerving and fascinating. Picnic-style lunch is often served

Although Calamianes is best known for its towering limestones, it also features exceptional expanses of beaches that rival the world’s best. Often clumped together in a wholeday beach-bumming tour, the islands of Bulog, Malcapuya and Banana are hosts to dramatic white stretches and aquamarine waters with vibrant arrays of fish and corals just a few meters off shore. So pretty are the beaches that Bulog and Malcapuya Islands were acquired by global luxury hotel chains, Two Seasons and Henann Resorts, respectively. Indeed, Calamianes’s enigmatic destinations continue to captivate people of all lifestyles. But the most magical of Calamian’s offerings is its people, whom I found to be the warmest of all natives in Palawan. Conversations with them are always friendly, but not patronizing, and the townsfolk take genuine interest in tourists for pleasure, not for business. The zero crime rate in the community is a testament of how the locals place prime importance on peace, safety and the satisfaction of visitors. In Calamianes tourists like me leave no longer tourists, but part of a beautiful mixed community of Filipinos, indigenous groups and foreigners who found leaving the islands impossible. We return no longer strangers, but friends longing for the magic that once possessed us, in an archipelago that serves such countless surprises that even repeat visits thrill, astound and make one crave for déjà vu.

How to get there

Local airlines serve daily flights to Busuanga Airport from Manila. Vans plying to the Coron town proper are available at the airport at P150 per head. Otherwise, you can arrange pickup with your hotel of choice. It is highly recommended to book hotels in advance, especially during long weekends, holidays and summer.

Amid Kadayawan fest, Mindanao tourism agenda pushed

ourism Secretary Wanda Corazon T. -Teo joined hundreds of thousands tourists and spectators who flocked to Davao City for the recently concluded Kadayawan 2016 festivities, to seek stakeholders’ support for a Mindanao tourism agenda. The tourism chief disclosed that one of the immediate plans of the Department of Tourism (DOT) Mindanao is to push for the Samal-Davao City connecting bridge project to address the growing number of island visitors. In a latest data from DOT Region 11, Davao City recorded 1.70 million visitor arrivals from January to December 2015, 1.56 million of which were domestic travelers, while 128,333 were foreign visitors. Overseas Filipinos, on the other hand, were recorded at 14,699. A total of 161,339 visitors were tallied in August of the same year alone, with 12,142 foreign arrivals and 147,207 local visitors. Teo added that the DOT intends to make

Tourism Secretary Wanda Corazon T. Teo (sixth from right) with DOT Mindanao OIC Eden Josephine David (fourth from left), Alma Uy of Davao Metro Shuttle (sixth from left) and media representatives from Iloilo, Bacolod and Cebu.

the current international attention on Davao a major turning point for Mindanao tourism. “The interest in Davao is really high these days, as people want to see how then-Mayor Rodrigo R. Duterte has managed the city,” said DOT Mindanao Officer in Charge Eden Josephine David, in reference to increasing visitor arrivals in Davao City at the outset of the Duterte presidency.

David added that the DOT is banking on the new administration’s plan to implement the Mindanao Logistics Infrastructure Network as part of its revitalized infrastructure spending, to help address the connectivity and infrastructure gap of the region. Marco Polo Davao’s Dottie Viajar Wurgler-Cronin, who had a brief meeting with Teo at the sidelines of Kadayawan 2016, said

Kadayawan festival now more vibrant with influx of tourists

she is confident that “Davao and the entire Mindanao region would be given more attention now that we have a tourism secretary from the region.” Without discounting other regions, she expects a “ better

understanding of what we have and can offer from this region,” the first Filipina general manager of Marco Polo Davao said of Teo’s leadership, calling her as the “perfect representative” for Mindanao tourism.

‘Amansinaya and Pipoy: Legends of the Ocean’

cean Adventure continues giving its park guests something new to look forward, especially that the educational market season is already approaching. This year, for the first time in Ocean Adventure, park guests will witness a musicale play that also features acrobatic stunts. The production team, composed of extraordinary individuals known in their respective fields, helped together to form a oneof-a-kind open-air theater play. Entitled “Amansinaya and Pipoy: Legends of the Ocean” will surely catch the hearts of the kids and kids at heart, and inspire everyone to care for the environment in an educational and entertaining presentation. For this production, Ocean Adventure partnered with Creative UpStart (CUP), a group formed by veterans in the entertainment and advertising industry, and armed with more than 50 years of combined experience in the creative field.

People behind Creative UpStart n Maria Leogarda “Leo” Sanchez Matias

a TV executive and producer for the past 17 years, “Leo” started her career in television as a producer for Probe Productions Inc. In 2004 she began work in GMA, where she worked her way up the production and corporate ladder and retired holding the position of senior assistant vice president for GMA Network Inc.’s Public Affairs Department. Some of her most significant work includes the production of award-winning documentaries, news magazine programs, lifestyle shows, reality programs and specials. Most notable of these is the production of the I-witness documentary “Kidneys for Sale” that won for the country its first George Foster Peabody Awards for television. n Antonio Jose “Tonipet”

Ongpauco Gaba

A SEVEN-time Star Awards winner as Best Children’s Show Host (Art Angel) and Best Lifestyle Magazine Show Host (Unang Hirit), Tonipet is now a veteran host of over 14 television GMA Public Affairs programs, which has led to his being appointed as Habitat for Humanity Philippines’s Youth Ambassador. n Carolyn Perfecto Francisco She serves as the stage manager of Trumpets for the projects: Joseph The Dreamer, Fables & Parables, Godspell, Trombones, The Young King, Little Mermaid, Honk!, Peter Pan Mall Show, Trumpets Summer Playshop and Young Presidents’ Organization Dinner Show. For Atlantis Productions and Singapore Repertory Theatre, she stages Fairytale Christmas, Peter Pan, Alice in Christmasland. She is also the assistant stage manager for Widows, Orphans & Wilderbeests and Lion, and Witch and The Wardrobe. n James Laforteza He is the Steps Dance Project manager and choreographer. He choreographed several performances, such as Showstoppers and Celebration III for Repertor y Philippines; The Little Mermaid, The Lion, The Witch and The Wardrobe, Honk; the Ugly Duckling and Mr. Noah’s Big Boat for Trumpets. For Stages Production Specialists, he choreographed Footloose and restaged West Side Stor y in 2005 and 2008, respectively.

Science Monday

A12 Monday, September 5, 2016

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

‘Nuke power may meet clean-energy goal’

By Lenie Lectura

@llectura

he Asia-Pacific region may benefit from the introduction of nuclear power to decrease reliance of fossil fuels and meet clean energy objectives.

This was among the common themes that have emerged during the three-day conference on “Prospects of Nuclear Power in the AsiaPacific Region” held in Manila. Ambassador Maria Zenaida A ngara Col linson, Philippine ambassador to Austria and overall chairperson of the conference, said nuclear energy could contribute to sustainable development by meeting rising energy demands and, at the same time, mitigating climate change. She said two countries from the region—China and India— would cause roughly half of future emissions. Given this observation, nuclear power could be the largest individual contributor to emissions reductions in the electricity sector. However, current market design was not suited for capitalintensive technologies, such as nuclear power, leaving room for improvement and new market arrangements. One idea that came up is the small modular reactors (SMRs). Collinson said the region will benefit from advances in SMRs due to the specific geographic nature of the region. Energy Secretary Alfonso G. Cusi, who earlier said he is “open to nuclear power,” said he welcomes this idea given that the Philippines is an archipelago consisting of 7,107 islands. However, Collinson cited key challenges to the development of a highnuclear scenario in the region.

$2B The estimated total payment for debt incurred for the construction of the mothballed Bataan Nuclear Power Plant

These include public acceptance and safety concerns, nuclearw a s t e i s s u e s , l a r ge u p f ro nt i nvest ment a nd u ncer t a i nt y in government support. “ The introduction of nuclear power begins with a consideration of the infrastructure and government commitment necessar y to undertake the development of the program,” she said, adding that developing a legal and regulatory framework requires a considerable amount of effort. She also noted that public participation and involvement is critical at every stage of a nuclear power program. “The prospects for nuclear power in the Asia-Pacific region are not only promising; moreover, it is relevant and will continue to remain so in the coming years. This conference will certainly be the first of many in-

Bataan Nuclear Power Plant Nationa power corp.

ternational gatherings, as nuclear energy will certainly dominate discussions in the future,” she said. The Philippines’s more than $2-billion Bataan Nuclear Power Plant (BNPP) has been mothballed for 30 years. It was not made operational owing to political protests in 1986 over alleged safety issues. Early last week, Cusi, appearing before the Senate’s Energy Committee, confirmed the government is studying options and will “consult the people” before giving the greenlight to tap the BNPP, even as senators voiced misgivings about the plan, a BusinessMirror news report said. “We will have a national nuclear policy, we will have one; and we will go through the entire process, including legislation, since this is included on the legislative agenda presented to Congress,” Cusi told reporters after the hearing, adding that upon completion of the study, he will present it first to President Duterte. He said initial estimate to put the 620-megawatt BNPP “into operation” was pegged at $1 billion. “That is just an estimate, it’s still under study,” Cusi said. The energy secretary said they

Groups get 215 new volunteer forest guards By Manuel T. Cayon

Mindanao Bureau Chief

AVAO CITY—Two nongovernmental ecology groups, including the Philippine Eagle Foundation (PEF), generated 215 volunteers to guard the forests here and the watershed that provide one of the world’s best tasting drinking water in this city. The Watershed Management Council (WMC), which groups both community organizations and government agencies, said the new volunteer forest guards were raised by the PEF over the years of its community interaction to protect the forests as habitat of the endangered eagles, and the Interface Development Interventions (Idis), which has worked with the WMC to guard the watershed here. All of the new forest guards are members of the indigenous communities that rely on the health of the forests for their continued existence, the groups said. “When we first convened the watershed summit four years ago, we only had 42 indigenous volunteers for our Bantay Bukid [forest guard] Initiative to protect the Panigan-Tamugan watershed in Baguio district. But over the years, this has increased and we are now able to expand to nearby watershed areas,” said Chinkie Pelino, the civil-society representative to the WMC, being an officer of Idis. This year’s group of volunteers represents the forest guards coming from both the PEF-assisted forest guard program and the latest batch from Bantay Bukid Initiative of Idis, she said. “ The PEF’s forest guarding program is a strategy to generate actual outcomes in biodiversity

conservation in the watersheds, socioeconomic development in upland communities and cultural rejuvenation among the indigenous peoples,” PEF Research and Conservation Director Dr. Jayson Ibanez said. The PEF has also emphasized the importance of the IP communities, saying they are “ideally the best group to undertake forest guardianship due to their indigenous knowledge of the watershed areas.” “In this way, we are able to harness their traditional ecological knowledge toward the protection and sustainable management of key biodiversity areas in the watershed,” he said. Idis Executive Director Ann Fuertes said the group’s Bantay Bukid Initiative focused on the participation of grassroots peoples organizations (PO) in the upland barangay of Tawan-Tawan “since they are crucial in the protection of Mount Tipolog, in the PaniganTamugan sub-watershed.” Pelino said the WMC will work out the arrangements for their deputation and official identification to be signed by Davao City Mayor Sara “Inday Sara” Duterte-Carpio. “We will explore ways to provide benefits for them so that they will be encouraged to help us in protecting the watershed,” she said. The new volunteers took their oath to protect and monitor Davao’s watersheds during the fourth Watershed Summit held on August 24 at a hotel in this city. “This marks a significant increase in the number of community volunteers that we have been able to tap over the years to help protect our watersheds,” Pelino

said. “They are aware and proud of Panigan-Tamugan’s importance as the future source of drinking water for Davaoeños. It is because of this that they are determined to protect the river and its surrounding forests to ensure that the water remains free from contamination,” she said. City Administrator lawyer Zuleika Lopez was present in the summit and led the oath-taking ceremony, as she thanked the volunteer forest guards on behalf of Mayor Duterte-Carpio. “The volunteer forest guards are an important indicator in our resolve to sustainably protect and manage the watersheds. Rest assured that the Inday Sara administration will look for ways to give appropriate assistance to the community forest guards for their work in safeguarding our watersheds,” she said. Andres Moran, assistant secretary to Environment Secretary Regina Paz L. Lopez, also highlighted the oath-taking ceremony, saying that the initiative “is integral to the vision of the new DENR [Department of Environment and Natural Resources administration].” “Secretary Gina is keen on integrating IPs [indigenous peoples] to the DENR’s conservation efforts. She wants to mobilize the grassroots to protect and manage the environment,” he said. Some 375 participants attended the summit organized by the WMC, with the Davao City Water District, Davao Medical Society, DENR, Department of Science and Technology, Foundation for the Philippine Environment, Hydrology for Environment, Life and Policy Davao Network, Idis and the PEF.

were informed that reviving the mothballed nuclear plant in Morong, Bataan, could take two to four years. “At most, probably four years and the earliest is two years,” he said, adding that “from hereon until 2030, we will need to add around 1,100 megawatts per year, roughly that’s the number.” A sked about safet y issues, Cu si ac k nowledged concer ns about faultlines in the proximity of the BNPP. “Just like in Japan, we have been discussing the issue of faultlines for more than 40 years, and I cited the lost opportunity for the long time that we have not been using the BNPP,” he said, adding, “But having said that, these are the faultlines, and there is always an engineering solution to those kinds of problems, and I am sure competent expert engineers will take those into account…I am confident on the studies being made, that they will come out with a good study.” Sen ate Energ y Com m it tee Chairman Sherwin T. Gatchalian earlier sought caution about plans to revive the “dilapidated” BNPP, citing safety concerns and lack of technological capabilities as

critical issues that come hand-inhand with the controversial plant, which has yet to produce a single megawatt of electricity since it was completed in 1984, the same BusinessMirror story said. Gatc h a l i a n a i red h i s concerns after Cusi put forward the possibility of refurbishing the plant and adding nuclear power to the Philippine energy mix. Nuclear power experts have considered the BNPP the “Mercedes-Benz” of power plants because the structure was built at top-quality standards. It was constructed when the nuclear accident in Three Mile Island (March 1979) in the United States occurred, making the builders enhance its safety structure at a higher level. A f t e r t he nu c le a r p o w e r plant accident in Fukushima, Japan, in March 2011 caused by the t w in ear thqua ke-tsunami disaster, nuclear ex per ts have sa id power pl a nts a re bei ng ret rof itted a nd const r uct ion of new ones are set to standards that wou ld beat powerf u l ea r t hqu a kes a nd si m i l a r extreme incidents. T hey said ne w t e c h nolo g ie s a re b e i n g made available to respond to

such f uture situations. In the same BusinessMirror story, Sen. Joseph Victor G. Ejercito welcomed the move of Cusi to consider options in looking for alternative sources of power supply, including the revival of the Bataan nuclear plant. “I must admire Cusi for considering nuclear energy. Now that yellow alerts and forced outages are recurring, it is time that we think outside the box. Right now, nuclear is the cheapest source of power generation,” Ejercito said. The senator added that he had the opportunity to visit the BNPP “and was surprised to see that it remains in good condition.” Ejercito recalled that when former President Corazon C. Aquino assumed power in 1986, she was hesitant to use the BNPP, but nonetheless allotted an annual P50-million maintenance fund for it. “That is why up to this day, it can still be used.” Ejercito added: “We had our last payment for the nuclear plant in 2007. It is now owned by taxpayers, by all Filipinos. Why don’t we reconsider utilizing it? It’s a $2-billion asset that is just sitting there.”

Forum promotes measures for environment protection By Butch D. Enerio Correspondent

AGAYAN DE ORO CIT Y— The par ticipants of an environmental program a re g e n e ra t i n g m e a s u re s to make the residents of Mindanao aware of their responsibilities to create a sustainable and livable environment The United States Alumni for Institutional Reform (USAIR) Summit here last week, with the theme “Institutionalizing Reforms to Address Environmental Concerns in Mindanao,” has asserted the need for a holistic development for the protection of the environment. The forum said the excesses of mankind has tilted the balance of the ecology, resulting in an unprecedented perils, notwithstanding climate change that is endangering the existence of the flora and fauna on the planet. Jerlie P. Luis-Requerme, USAIR program grantee, said every individual, young and old, who are integral part of nature, should be aware of their moral obligation and do their part for Mother Nature against destruction, particularly in advocating for a clean habitat and the maintenance of a sound biodiversity. The USAIR is a program of the US government funding identified alumnus of the International Visitors Leadership Program (IVLP), through grants, for the institutionalization of reforms in the field of environment, good governance and political transparency. Requerme said that, as a way of reciprocating the goodwill of the US government, being a IVLP

participant, she came up with a program in line with the USAIR and was able to secure a grant that, in turn, was awarded to organizations for environmental projects that will contribute to the needed reforms in Mindanao. During the summit, the grantees presented their projects, including the mangrove p l a n t a t i o n i n M a g u i n d a n a o, spearheaded by Nashrudin Kusain Piang-Adat Betad. There is also a music video by Maria Angeles Hinosolongo, a project of the Mindanao University of Science and Technology that tells of the state of the Bitanag Creek in this city and how it contributes to flooding because of the clogging due to indiscriminate dumping of garbage to the creek. The Sagip Kabataan project was presented by Melody Ravelo, child-focused initiative on disaster risk and management where children from far-flung areas were given education on how to stay safe in times of disaster. The summit participants were appraised of the latest information on climate change by lawyer Teresa Blanco, who shared that 97 percent of scientists in the world have affirmed that global warming is caused anthropologically. “Our environment is not getting any better, but there is much we can do to make our M indanao a lot more livable.” Requerme said. She added that e ve n w i t h o u t t h e U S gr a n t , endeavors of good environ mental prac tices, which the p ro j e c t p ro p o n e n t s s t a r t e d, should continue for the sake of mother ear th.

USAIR Summit also encouraged the implementation of solid-waste management starting from homes. The summit is seeking political interventions by implementing Republic Act 9003, or the Solid Waste Management Act, among local government units (LGUs). Samira Ali Gutoc Tomawis, who leads the Transform Prog re s s i ve M a r aw i M ove m e n t , underscored the efforts of the members in informing the city residents and the LGU the importance of disposing garbage. She introduced solid waste management (SWM) and the income that could be generated from wastes. Tomawis outlined the movem e n t ’s s o l v i n g t h e g a r b a g e problem through massive information-education campaign; adoption of new environmentally compliant technologies; formulation of additional management schemes, such as the disposal of household hazardous wastes; and integrating SWM laws and policies with environmental laws through the formulation of the environment code. Meanwhile, the Safer River, Life Saver Foundation (SRLSF) Inc. of the Liceo de Cagayan University told the Summit par ticipants of the impor tance of keeping an environmentally sound river. SRLSF’s Rosalina Huerbana said the effor ts of the foundation have informed the stakeholders on the reality surrounding the Cagayan de Oro River and that more actions are needed to solve the problems with cooperation from line agencies and residents, particularly those living in river banks.

Green Monday BusinessMirror

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

BusinessMirror

Monday, September 5, 2016 A13

Guiuan Marine Reserve Protected Landscape and Seascape

Marine ecosystems under siege J

By Jonathan L. Mayuga

ust a week after assuming the top Department of Environment and Natural Resources (DENR) post in July, Secretary Regina Paz L. Lopez issued an order stopping Hinatuan Mining Corp. (HMC) from retrieving its stockpile of nickel ore from Manicani Island in the town of Guiuan, Eastern Samar Province. An environmental advocate, Lopez said the order aims to prevent further damage on Manicani’s already vulnerable ecosystems, particularly its marine ecosystem. She said the “excessive extraction” of soil from the island, which was devastated by Supertyphoon Yolanda (international code name Haiyan) in 2013, is increasing the risks of disaster.

Key biodiversity area

The Guiuan Marine Reserve Protected Landscape and Seascape (GMRPLS) covers the areas of Guiuan and the neighboring islands of Manicani, Candulo, Suluan, Tubabao, Calicoan and Homonhon in the province of Eastern Samar, with 40 component barangays. It covers an aggregate area of 60,488 hectares. Because of its natural beauty and potentials for aquatic sports, tourism and marine-life conservation, Presidential Proclamation 469, Series of 1994, signed by then-President Fidel V. Ramos on September 26, 1994, declared Guiuan as a protected area covered by the National Integrated Protected Area System (Nipas) Act under the category protected landscape and seascape. According to the DENR-Biodiversity Management Bureau, GMRPLS is part of the much larger Guiuan to Salcedo Key Biodiversity Area. It has diverse marine and coastal ecosystems, such as mangroves, sea grass beds and coral reefs.

Trigger species

The reefs harbor the trigger species—two species of corals ( Anacropora puertogalerae and Montipora samarensis) and one species of giant clams or mollusks (Tridacna derasa) as listed in Conservation International (CI). The Alliance for Zero Extinction defined trigger species as those listed as Endangered or Critically Endangered by International Union for the Conservation of Nature on its 2004 Red List, and with 95 percent or more of its entire known

those who lost their jobs would be forced to go back to their old ways of using trawl, dynamite and cyanide. There are currently 10 Bantay Dagat (Sea Guard) protecting GMRPLS. By the end of the month, this would increase by 50 more who would patrol the area. “We started the capacity-building training of more Bantay Dagat [members]. In the next few days, there will be more people patrolling our fishing grounds against illegal fishing,” he said.

@jonlmayuga

population confined to a single site. The reefs are major fishing grounds of fishermen from Guiuan and from the nearby islands of Leyte, Cebu and Bohol. Scientists say the rich water of Leyte Gulf is the major passageway of Pacific Ocean waters, which brings in larvae and mangrove propagules. Besides reef fishes, other fisheries products from the area include tuna and mackerels. The vast sea-grass bed and mangrove area in Leyte Gulf, apart from being fishing grounds, are also feeding areas for migratory birds. In 2008 22 species of birds, eight of which migratory, were recorded in the area.

Serious threats

While HMC claimed that its operation on Manicani Island had stopped as early as the 1990s, antimining groups claimed that hauling the old stockpile of nickel ore from the island is a mining activity in itself. The groups also demanded the rehabilitation of the island to prevent geological hazards, particularly landslides, which may endanger the lives of the people and further damage the island’s ecosystem, including its remaining mangrove forest and coral reefs. Manicani Island is not the only island within the GMRPLS affected by mining operations. Homonhon Island is host to several mining operations, as well. According to Philippine Misereor Partnership Inc. (PMPI), the companies of Techiron Resources Inc., Mount Sinai Mining Exploration and Development Corp. and Emir Mineral Resources Development Corp. are operating on Homonhon Island. The operation of Mount Sinai and Emir Mineral were suspended by Lopez several days after that of HMC. A network of people’s organizations (POs), non-governmental organizations (NGOs), church/faithbased groups and Misereor, the overseas development agency of the Catholic Church based in Aachen,

A vicious cycle A group of fishermen conducts a survey of fishes near Homonhon Island as part of Philippine Misereor Partnership Inc.’s Project Pagbangon. Philippine Misereor Partnership Inc.

Germany, PMPI is opposing the mining operations on Manicani and Homonhon Islands, saying they are the biggest threat to the islands’ ecosystems and livelihood of the communities.

Fishermen to miners

Employees of HMC, however, disputed the allegation of PMPI. They said mining offered a better alternative to farming and fishing as a way of life to many people living on the island. They said fish productivity in Guiuan started to suffer way back in the 1970s because of rampant overfishing by commercial fishing vessels that use trawls, a destructive fishing method, along with the use of dynamite and cyanide. Interviewed during a visit on Manicani Island last month, farmers and fishermen said they just rely on the little income they could get from farming and fishing for sustenance. Even the forest, said Igmedio Abucejo, 57, is already degraded when HMC came in the 1990s. “Dynamite and cyanide fishing were popularly used before. The fishermen used compressor when they dive to retrieve the dead fishes after dynamite blasting or cyanide spraying,” the Barangay Buenavistaborn Abucejo said in Filipino. Nerissa Ida, 51, of Barangay Banag and Estrella Loyola, 57, of Barangay Homorawon said they tried to plant cassava, locally known as balinghoy or kamoteng kahoy, before, but it took a long time to harvest and the yield is not enough to feed the average family. “Mining is a big help to us residents of Manicani. Those who say the environment is damaged are not from here. The forest has long been denuded, and the corals have long been gone because of dynamite fishing. If mining operations are stopped, the residents would lose their jobs and they might return to illegal fishing,” Michael Vergara, 27, a resident who works

as a communication officer of HMC on the island, said in Filipino.

Protecting Guiuan

Guiuan Mayor Christopher Sheen P. Gonzales, in a telephone interview, said Guian’s fishing grounds remain productive. However, he said many areas within the municipal fishing grounds have been declared as “notake zone” as part of the effort to protect and conserve spawning areas of fish and other marine life. “There are fish sanctuaries and marine protected areas [MPAs] where fishing is not allowed. We are trying to save Guiuan while we still can,” the mayor, who is now serving his second term, explained. “If they are after bigger catch, they would have to go out, farther away from Guiuan,” he said. Personally, the mayor said he is against mining because of its destructive nature. He said, he inherited the problem brought by the issue of mining on Manicani and Homonhon, which he admitted have provided income and livelihood to the people. However, he said, without mining, many people on the island would lose their jobs. Of the 495 employees of HMC on Manicani Island, only 60 were retained as the company shifts to “care and maintenance” mode starting on August 31. “That is our problem right now,” he said, speaking mostly in Filipino. Gonzales said he is holding on to the promised help from Secretary Lopez. He said the people on both Manicani and Homonhon islands need immediate help, which only the national government can provide. He said the local government has no capacity to finance livelihood programs for a big number of people and their families who would suffer the consequence of the DENR’s campaign against irresponsible mining. The town mayor fears the resurgence of illegal fishing activities, as

While admitting that the problem of dwindling fish catch and unsustainable agriculture was already being felt on both Manicani and Homonhon before mining companies came on the two islands, PMPI National Coordinataor Yolly Esguerra said it still does not dispel the fact that the destructive nature of mining on the two island aggravated the situation of the people. The residents, she said, complained of air pollution because of the dust from mining operations. Esguerra said the people on Manicani and Homonhon islands are caught in a vicious cycle of unsustainable way of life because of mining. “We see mining as a big threat to sustainable agriculture and fishing on Manicani and Homonhon. When mining started, migrants arrived because it was easy to earn money. But if we want sustainable way of life, we should conserve and protect the land and water resources,” Esguerra said. She said based on their interviews with the people on the two islands, farming and fishing used to be productive.

‘Project Pagbangon’

After Yolanda in November 2013, fishermen claimed that the volume of their catch decreased from an average of 3 kilograms (kg) to just 1 kg a day. PMPI launched in 2014 its project dubbed “Project Pagbangon” on Manicani and Homonhon Islands to help the farmers and fishermen. The project aims to reestablish and make sustainable the livelihood of people, and make the communities resilient to future natural disasters through capacity and livelihood training. Melody Asia, PMPI’s Community Development Facilitator for Project Pagbangon, said before Yolanda struck, the people on the two islands are already vulnerable to natural calamities. Poverty is also prevalent because of unsustainable farming and fishing. Through partnership with people’s organizations, PMPI being a development organization, promotes coastal resource management and sustainable agriculture practices based on the recommen-

dation of experts tapped to help address the problem. “We can still bring back sustainable agriculture. There is upland rice farming. PMPI, through its people’s organizations partners, distributed seeds, which farmers planted last year,” Asia said partly in Filipino. A year after the project installed artificial reefs, fishery production increased from an average of 1 kg to 3 kg a day, said Asela Sevilla, president of Habag Fisherfolk Association based on Homonhon Island. The group, through Sentro para sa Ikauunland ng Katutubong Agham at Teknolohiya Inc. (Sikat), also distributed fishing gear and trained fishermen on the protection of their spawning grounds of fish and other marine life around Homonhon Island. “GMRPLS is very important because it is the source of our livelihood. That is why protecting it is very important. Through Project Pagbangon, PMPI and Sikat have been helping us. They distributed fishing gears and planted artificial reefs in many places,” Sevilla said. Through Project Pagbangon, 468 artificial reefs in 12 barangays were constructed and deployed. At the same time, fishermen groups in the were engaged in a series of orientation, planning and seminars to establish their own barangay coastal-resource management plan. PMPI also pursued partnership with the Philippine Coast Guard, the DENR, the Bureau of Fisheries and Aquatic Resource (BFAR) and local police to boost law enforcement activities. PMPI and its partners, thereby, were able to organize and strengthen the people’s organizations. A total of 12 fishermen associations are now in place working for the protection of GMRPLS.

Still under siege

With or without mining, GMRPLS is under siege by destructive fishing activities. A post-Yolanda program launched by PMPI is trying to address the challenges faced by the people on the two islands. Esguerra said they have been receiving reports of trawl encroaching on fishing grounds within GMRPLS. “There are also fishermen who use dynamite and cyanide,” she added. The vicious cycle of unsustainable way of life must stop to protect the GMRPLS, Esguerra said. The PMPI will continue to find ways to help people on the two islands return to their sustainable way of life, hopefully, without mining, she added. “There is still hope in Manicani and Homonhon Islands. All that is needed are assistance and training of the residents. Fishing is a very important aspect of the people’s lives in Guiuan,” Esguerra said.

A14 Monday, September 5, 2016 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

The Philippines: At war with itself?

hile it is not yet confirmed who was responsible for the Davao night market bombing, one fact is undeniable—the Philippines is at war. The Republic of the Philippines is at war with illegal drug syndicates. The people of the Philippines are at war with corrupt government officials, from big town mayors to barangay executives in some far away province. The Philippine government is at war with criminal gangs masquerading as freedom fighters for a noble cause.

During times of war there are always going to be those who turn against their own country and its government. Some Filipinos collaborated with the Japanese occupying forces because they genuinely believed that the Japanese offered a better alternative to colonial American rule. Others did what they thought was necessary to survive. However, the response of some quarters in the wake of the Davao bombing by taking it as an opportunity to gloat because it happened in the hometown of President Duterte was done for the most meaningless and pathetic of all reasons—politics. Still unable to come to terms with the fact that their chosen candidate lost in the election, these people danced on the graves of the victims just to push their political agenda. Freedom of opinion and speech must be inviolate for a free society to exist. However, the rules change when a nation is at war. In time of peace, there cannot be an act of treason. While there is peace, there are no traitors. Treason is a crime that is reserved only in time of war, and we tend to think of a treasonous act as one that tries to overthrow the government. But there are clear legal elements to an act of treason. Treason can only be committed by a Filipino citizen or resident. The second element is the existence of a public enemy, to which a traitor gives allegiance. The third element is the overt act by which treason is manifested. Treason may be committed in one of two ways: by levying war or by giving aid and comfort to the enemy. Any act that deliberately strengthens or tends to strengthen enemies of the Philippines, or that weakens or tends to weaken the power of the government to resist and attack such enemies is characterized as aid and comfort. Do the comments that come close to applauding the bombing as a slap in the face of the president constitute treason? It really does not matter. What matters is that petty politics is more important to some people than the safety and lives of fellow Filipinos. This was an opportunity to be united as a nation against those elements that would do us all harm. Unfortunately, some are too selfish to put the nation before their own agenda. Perhaps that is also a form of treason.

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PCSO supports patients of the Philippine Orthopedic Center Atty. Jose Ferdinand M. Rojas II

RISING SUN

S part of Philippine Charity Sweepstakes Office’s (PCSO) program to support government and non-governmental hospitals and health institutions in the country, I recently turned over a check amounting to P10 million from the PCSO to the Philippine Orthopedic Center. This tertiary special hospital has been around for more than 70 years and has helped countless patients with orthopedic, musculoskeletal and neuromuscular problems. Many of its patients come from low-income families. As a medical institution under the Department of Health (DOH), the Philippine Orthopedic Center could certainly use some help to modernize its medical equipment to be able to help more people. The money that was donated on August 10 will be used to buy a Radiographic C-Arm to further enable the hospital’s medical team to take more precise radiographic images.

The Philippine Orthopedic Center is just one of the many beneficiaries of PCSO’s Charity Fund. As mandated by law, this fund comprises 30 percent of the agency’s Lotto revenues. The Charity Fund, on average, amounts to around P8 billion yearly. This money goes to different government agencies in the form of mandatory contributions, while the rest is used for PCSO’s numerous service programs. It is my commitment as general

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As we enter the last month of Q3, it is wise to reflect on (and revel in) the Philippines’s economic performance for Q2. Almost everyone is optimistic as our GDP expanded by 7.0 percent from the same period

in 2015. This marks, according to records, the fastest expansion in three years and is attributed to increases in private and government consumption. Economic experts project that the economy will expand at 6.0 percent this year, as strong domestic demand and sound fiscal policy are believed to further push the Philippine economy toward greater growth in the coming months. The government under President Duterte is also looking at cutting corporate and income taxes, as well as improving infrastructure facilities, which may contribute further to the positive economic

Battling the drug menace via PPPs By Alberto Agra

PPP Lead

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

manager and vice chairman of the organization to ensure that PCSO is able to extend as much help as possible to people in need of medical support, wherever they may be in the country.

Continued from A1 Expanding PPP’s limited concept. In order for PPP to be a viable strategy to respond to this problem, the concept of PPP must be expanded. Anti-illegal drugs-related PPPs should extend beyond infrastructure, should not be confined to private-sector financing, should be open to civil-society participation, and should involve all levels of the government bureaucracy. This is a basic recognition that government alone cannot address the crisis on a long-term and sustained basis. Identifying anti-illegal drugsrelated PPP Projects. Rehabilitation centers would be the top of mind PPP project. Drug surrenderers and convicts could no longer be accommodated in existing facilities. Another one would be information technology-related

projects, like a database tied up with blotter systems, clearances, warrants and court decisions. Government health care and hospitals may be further equipped to handle drug-related cases. Drug education and prevention campaigns may be institutionalized. Integrated CCTV systems, while not just for illegal-drug monitoring, can be part of the initiatives of Smart Cities. Making these projects attractive through bundling. If stand-alone, these projects may not be feasible. For example, there might be no takers if the infrastructure is just for a rehabilitation center. For the private sector, unless it is a donation, there must be a return. For a rehabilitation center to be attractive, this must be bundled with revenue-generating activities. A government complex that would

In order for PPP to be a viable strategy to respond to this problem, the concept of PPP must be expanded. Anti-illegal drugs-related PPPs should extend beyond infrastructure, should not be confined to privatesector financing, should be open to civil-society participation and should involve all levels of the government bureaucracy. This is a basic recognition that government alone cannot address the crisis on a long-term and sustained basis.

house the rehabilitation center, as well as the local government capitol, inter-modal terminal, publ ic m a rket , hos pit a l a nd c o m m e r c i a l e s t a b l i s h m e nt s may present a better-than-good option. Recovering investments from payors. The question now arises— from whom will the private proponent recover its investment? For

atmosphere. All this is good news for all of us, as we continue to work with the new administration to help strengthen the economy and build better lives for our countrymen. PCSO is always ready to perform its tasks in support of the government’s economic agenda. nnn

I would like to congratulate the PCSO Badminton Team for finishing 2nd Runner Up in the Senior Division of the 2016 GCAA Badminton Tournament that ended in July this year. PCSO believes in supporting the athletic development of its employees, as these activities help promote better health, cooperation and camaraderie among the participants. Thumbs up to the entire PCSO Badminton Team, composed of Edwin Abinales, Sotero Miguel, Ariel de Ocampo, Napoleon Miranda, Narciso Maniquis, Jasper Espino, Salvador Gunao, Christian de Leon, Bernie Lucido, Ariel de la Cruz, Divina Miranda, Junette Sangil, Marileth Rodriguez, Jessica Maniquis, Glorycita Delfin, Marifi Baladad, Zarah Huang, Cheryl de Leon and Dra. Benette Cedro. n n n Atty. Rojas is vice-chairman and general manager of the Philippine Charity Sweepstakes Office.

PPPs, there are only two payors— the end-users or government using taxpayers’ money. It may be difficult, even unfair, to charge all drug surrenderers. Government may not have the adequate resources for this. This is the reason bundling is a doable option. Outlining the PPP modalities. For the listed projects, government agencies may enter into any of the 24 modalities. The nine build-operate-transfer (BOT) law variants, joint ventures, concessions, management and service contracts using or not using public funds, donations, among others, may be adopted. The private sector and/or government can be the funder, builder, designer and/or operator. Picking the implementing agency. The Department of the Interior and Local Government, the Philippine National Police and the Philippine Drug Enforcement Agency may, singly or collectively, pursue a BOT rehabilitation project. The Bases Conversion Development Authority, Clark Development Corp. and Subic Bay Metropolitan Authority may enter into joint ventures for the all-in-one complex. Local government units can also participate. Enough talk. Let us do it.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Kerry’s soft words blunt US hard power in South China Sea

The return of the political economy

By Eli Lake / BloombergView

here are times when I want President Barack Obama to invent a global crisis for John Kerry to solve, just to keep his secretary of state from making the real ones worse. Consider what happened at New Delhi this week, where Kerry offered a remarkable comment about the current tensions in the South China Sea. He said there was no “military solution.”

Kerry was asked about China’s public indifference to a decision in July from an international tribunal at The Hague that flatly rejected China’s claims to the territorial waters of the Philippines in the South China Sea. “We want to support a code of conduct for the management of the South China Sea,” Kerry said. “We support diplomacy in an effort to try to resolve this with an understanding that there really is no, quote, military solution.” He added that the US was not interested in “fanning the flames of conflict, but rather, trying to encourage the parties to resolve their disputes and claims through the legal process and through diplomacy.” There are two things that are remarkable about Kerry’s thoughts on this matter. To start, the US position has been that the ruling of The Hague tribunal was not negotiable. While Washington does not officially take sides in territorial disputes in the South China Sea, it supports the rule of law and opposes China’s efforts to assert sovereignty over these waters unilaterally. So what does it mean that Kerry is calling on both parties to take steps to resolve the issue as if this was the Arab-Israeli peace process? The only party “fanning the flames of conflict” in the South China Sea has been China. More remarkable, though, is Kerry’s utterance about military solutions. To start, the Chinese clearly believe there is a military solution to their problems in the South China Sea. That’s why they keep militarizing the artificial islands they have been dredging up there. More important, the Obama administration’s primary policy for responding to all of this has been a military solution, so to speak. It has sent elements of the Seventh Fleet on “freedom of navigation” missions into disputed areas. And while these missions have not overtly challenged the waters around China’s artificial islands, the military has been the driver of the US policy response. The pace and tenor of US joint military exercises with East Asian allies has been a response to China’s claims in the South China Sea, as well. To say nothing of new rounds of US arms sales to countries threatened by China’s activities, as well. Most of the administration’s vaunted “pivot to Asia” has been an attempt to reposition military assets. None of this precludes US diplomacy with China, but Kerry’s efforts at conflict resolution undermine such diplomacy at a time when Chinese aggression has been censured by an international tribunal. Daniel Blumenthal, the director of Asia Studies at the American Enterprise Institute, told me on

Thursday: “Almost any response we have against China’s aggression in the South China Sea is going to have a military component.” He clarified that this doesn’t mean the US should start a war with China, but he said almost every expert outside and inside the government has identified military steps the US could take to deter China. These include things like US Navy convoys to accompany Filipino fishermen into waters claimed by China, or sailing more aggressive missions into the waters surrounding China’s artificial islands. All of this is particularly important now in the run-up to this weekend’s G-20 conference at Hangzhou. In recent months, China has signaled that it plans to begin dredging new artificial islands at Scarborough Shoal, which it continues to block from Filipino fishermen despite the international tribunal ruling. This threat is serious enough that Obama himself warned China’s premier, Xi Jinping, to back away from the shoals in March, on the sidelines of the Nuclear Security Summit. Senior Japanese officials whom I met with in Tokyo last week told me that if China were to build and militarize islands in the shoals, it would have effective military control of the entire South China Sea, and could position aircraft and ships dangerously close to US Naval assets in the Philippines. A retired senior Japanese military officer suggested the US should consider a blockade of the shoals to prevent the Chinese from achieving their plan. (Another military solution, I know.) In this respect, Kerry has sent a dangerous signal to China and America’s East Asian allies. Andrew Shearer, senior adviser on AsiaPacific security with the Center for Strategic and International Studies and a former national security adviser to two Australian prime ministers, told me Kerry’s job is to reassure our allies. He said the secretary’s statement in New Delhi “risks reducing deterrence.” None of this should be surprising. Kerry’s worldview is shaped by his experience in the Vietnam War, which, as a young veteran, he campaigned against. Kerry told Wall Street Journal reporter Jay Solomon that he believes “war is the failure of diplomacy.” This is, after all, the same secretary of state who brought James Taylor to Paris following the Charlie Hebdo massacre to play, “You’ve Got a Friend.” But America’s friends need to know their most important ally is willing to stand up to China in the South China Sea. This should start with an acknowledgment that the US has many military solutions to the crisis created there by China’s military.

Paul Donovan

olitics is back, and markets do not know what to do about it. Political risk faded from financial markets in the 1990s. Central bank independence seemed to remove economic policy from political influence. Markets did not care which Bush or Clinton was in the White House, so long as Alan Greenspan was at the Federal Reserve. The result was a reverence for central bank policy, an emphasis on mathematical economics and a disregard for political concerns. The years since the global financial crisis have seen the rise of political economics. Political economics is not concerned with predicting election outcomes or speculating on political events (that dark art is psephology). Political economics is concerned with understanding the way policy acts upon an economy, and how political issues, like wealth distribution, can shape economic outcomes. Political economics is also about how people start to anticipate policy, and change their behavior as a result. A key catalyst for the rise of political economics has been the realization of the extent of income in-

equality in many societies. Income inequality has been growing for many years in the developed world (although globally, income inequality has fallen considerably). However, this inequality was disguised by consumption equality. Credit allowed people to spend income they did not have. This gave an illusion of equality. With the collapse in developed economy credit growth after 2008, the underlying reality of income inequality became more apparent. The abruptness with which the inequality was revealed made its effects even more powerful. This led to a frustration—what had

By Estrella M. Madamba

espite the nominal increase in the budget of the Department of Education (DepEd) in recent years, state spending on education has not been maximized. For four years in a row, for example, the DepEd has failed to use all of its financial allocations. With another budget increase for 2017, which ballooned to P567.56 billion, the education department is expected to improve its performance with the full implementation of the K to12 Program, in line with the new administration’s promise of real change.

T he D e pE d ’s “ bu d ge t for change” of more than half a trillion pesos next year will be used to build more schools and to hire more teachers with the e x pec ted i n f lu x of st udent s who will enroll in senior high school, according to Education

Secretary Leonor M. Briones. With the new administration’s promise of “real change,” DepEd officials and leaders should buckle down to work and start addressing the appalling situations prevailing in public schools and among teachers in far-flung areas around

been the economics of aspiration turned into the economics of envy. Consumers turned from desiring something and using credit to obtaining it, to anger and frustration that their hard work was not enough to achieve the lifestyle that their neighbors enjoyed. This situation was then compounded by the fact that in many economies a significant part of the population was left behind by the economic recovery. This pattern is not that uncommon in times of structural change, nor is it especially uncommon in the aftermath of an economic downturn. What increased the potency was the combination of those two factors at the same time. The sudden, dramatic realization of the extent of inequality and the sense of being excluded from politicians’ talk of economic recovery has encouraged “scapegoat economics”. This occurs when a group looks for an identifiable group that can be pinpointed as the cause of their economic position. Different societies identify different groups as scapegoats—the blame is misdirected in every case, but it serves as a focus for the economic pain. Scapegoat economics can lead to a political response. Politicians arise who indulge in prejudice politics, or antipolitics. “Remove the influence of this minority from the economy,

and everything will be wonderful for you.” Hence, the rise of political economics. Policy is more interventionist than it has been for many years to try and address the awareness of inequality. But policy is also swayed by antipolitics, as the political center tries to address populist concerns. The problem for investors is that while economics is global, politics is local. Political economics is shaped by culture and social norms. To try and understand political risk from a distance is extremely difficult— certainly more difficult than plugging numbers into a mathematical economic model and receiving a standardized result. The world is now a harder place for investors to understand. The rise of political economics inclines investors to keeping money closer to home, rather than investing in markets where the political risk is not understood. Ultimately, political economics may create a less efficient, less predictable and a less stable world economy. Paul Donovan’s latest book The Truth About Inflation was published by Routledge in April 2015. Visit www.ubs.com/pauldonovan for more research. Paul’s commentaries in the UBS series of documentaries on Nobel Laureates in economics is available at www.ubs.com/nobel

Tax payment through credit/debit/prepaid cards Razzel Ann Vergara

DEBIT CREDIT

axes are the lifeblood of any nation. Administrative feasibility, being one of the principles of a sound tax system, tax regulators consider alternative modes of tax payments to be necessary in the effective and efficient implementation of tax laws.

In order to ease the burden experienced by taxpayers in the payment of internal-revenue taxes, including interest, penalties, surcharges and other applicable fees, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 3-2016, which prescribes the policies and guidelines on the adoption of credit-/debit-/prepaid-card payments as additional modes of payment of internal-revenue taxes and other applicable fees. The said regulation is effective starting April 12, after 15 days of being published in Manila Bulletin on March 28, 2016. According to the said regulations, the payment of internal-revenue taxes using the said credit-/debit-/ prepaid-card payment system is voluntary or optional on the part of the taxpayer. As such, the taxpayer shall bear the convenience fee and other fees being charged by banks and/or credit-card companies for the use of this payment facility and that such fees, including the “Merchant Discount Rate” (MDR) shall, in no case, be deducted from any amount of tax due to the BIR. In the payment of taxes through credit/debit/prepaid card, the taxpayer has the option to choose from

the available online payment facilities provided by the electronic payment service provider (EPSP) for the processing of his tax payments. The authority to accept tax payments through credit/debit/prepaid cards, and act as “acquirers” shall be limited to authorized agent banks (AAB) only. By acquirer is meant an authorized agent bank accepting payment of taxes and other applicable fees through credit/debit/prepaid cards on behalf of the BIR, processes such tax payments and remits the same to the Bureau of Treasury (BTr). For the said banks to be given the said authority, however, the AABAcquirer shall have its card-payment information systems tested and approved first by the BIR and have entered into a service level agreement (SLA) with the BIR. But before the execution of the SLA, the list of card issuers being enabled by the AAB-Acquirer shall also have to be submitted to the BIR. Any addition, deletion or amendment to the submitted list shall be reported in writing to the BIR within five days after the changes or amendments thereto have been introduced. The said regulations, likewise, emphasized that the BIR shall neither have any responsibility nor liability

Educators also want meaningful change

Monday, September 5, 2016 A15

the country. For one, it is unacceptable to note that our own department has failed to use up all of its budget for four consecutive years, and yet, there are teachers in rural areas who spend their own money for basic allocations (like chalk and eraser), and even dole out their meager allowances to hungry and poor students who, sometimes, brave inclement weather and walk 5 kilometers to 7 km to reach school. We need to do justice to our educators. The DepEd budget includes the project for the P2.8-billion miscellaneous personnel benefits fund for new teachers, construction of 37,500 classrooms, hiring of 53,831 additional teachers and the provision of assistance for 2.7

million students who would be diverted to private schools. The new education chief, however, promised to make the 2017 budget reflect not only the national objectives of the Duterte administration but also the specific priorities of the DepEd. Secretary Briones vowed to use every peso to produce tangible improvements in the country’s education system. She said she will prioritize the expansion of the Alternative Learning System and infrastructure development, and enhance the use of information technology (IT) to make our high-school students at par with their Asean neighbors. Stressing that the cur rent budget allocation for the department is still below the standards

on any issue concerning the taxpayercardholder and card issuer, including but not limited to, “charge back”, erroneous posting or charging, nonpayment of the taxpayer-cardholder to the issuer and other issues. In case the taxpayer-cardholder made erroneous tax-payment transactions through this prescribed payment mode, it shall not give rise to automatic “charge back” to the taxpayercardholder’s account. In meritorious cases, he shall apply for refund/tax credit with the BIR in accordance with existing revenue issuances. It is important to note that only Philippine-issued credit/debit/prepaid cards under the name of the taxpayer-cardholder shall be used in the payment of his tax liabilities. The AAB-Acquirer shall be responsible in ensuring that all payment transactions through credit/ debit/prepaid cards are accurately and timely reported to the BIR and BTr and that the same are timely remitted to the BTr. Penalties for late transmission, procedural errors, late reporting and remittance shall be imposed pursuant to existing rules and regulations. The payment of taxes through credit/debit/prepaid card shall be deemed made on the date and time appearing in the system-generated payment confirmation receipt issued to the taxpayer-cardholder by the AAB-Acquirer, provided that the payment is actually received by the BIR pursuant to the said regulation. The taxpayer is not relieved of, and has a continuing liability for such taxes until the payment is actually received by the BIR. This continuing liability of the taxpayer is in addition to any liability of the AAB-Acquirer pursuant to the SLA entered into by

the BIR and the AAB-Acquirer. In the initial implementation of the said prescribed mode of tax payment, the taxpayer shall electronically file the corresponding tax returns. Thereafter, once the existing BIR systems have been enhanced, the filing of the corresponding tax returns by the taxpayer, through other channels or facilities shall be adopted. The identity, security, authority, capability of the taxpayer-cardholder transacting with the BIR using his credit/debit/prepaid card in tax payments and transmission of data shall be secured through encryption and use of relevant industry-standard technologies. This is very good news to those who may want to lessen the burden of paying their taxes. Using credit/ debit/prepaid cards have become a way of life for many of us in this generation. However, this convenience comes with certain risks and there are some security issues we need to understand first. Overlooking some simple security risks could be a costly mistake leading to stolen personal information, fines and having your privileges revoked.

of the United Nations (UN), which recommended that governments spend at least 6 percent of their GDP on education, the DepEd chief promised to address backlogs in school buildings, seats and teachers. According to the Congressional Policy and Budget Research Department, the DepEd’s unused appropriations increased from P34.2 billion in 2014 to P51.8 billion in 2015. Despite its failure to spend its entire budget over the past four years, the DepEd needs a bigger appropriation for 2017 with the launch of Grade 12 or the senior high school. Secretary Briones said the DepEd also plans to build 47,492 classrooms and 66,492 school seats, and hire 53,831 teachers.

With the record budget of the education department for 2017, we, the educators, are praying that all academic sectors will be considered and all standing concerns addressed, while construction of schools and needed infrastructure in far-flung provinces must be prioritized. There is growing confidence among the education department’s constituency that with the new administration’s promise of real change, the DepEd will wisely spend its budget this time so that all students, parents and teachers will feel that meaningful change is upon them.

Razzel Ann Vergara is a graduate of BSA at Polytechnic University of the Philippines-Lopez, Quezon Batch 2014. She passed the CPA Licensure Examination on October 2014 and is currently connected with Vinhar Construction and Marketing, a company specializing in accounting for construction projects and taxation. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa. secretariat.@gmail.com

The author is Teacher 3 at Gonzaga National High School in Gonzaga, Cagayan.

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