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Thursday, September 7, 2017 Vol. 12 No. 329

he Chamber of Mines of the Philippines (COMP) on Wednesday said it will continue to work with the Duterte administration as it vowed to convince President Duterte on the soundness of the open-pit mining method.

sounding of the gong in launching ceremonies held at a hotel in Pasay City. Joining him are (from left) Philip Chien, CEO at First United Broadcasting Corp; Amir Ahmad, diplomatic and protocol officer; Nyaee Ayup, trade advisor; Ali Garangan, corporate secretary; Azhar Magmoo, treasurer; Eri Yam, MCCI vice president; Edward Ling, MCCI president; and Dato Raszlan Abdul Rashid, Malaysian ambassador to the Philippines, at the launch of the Malaysia Chamber of Commerce and Industries Philippines Inc. on Wednesday. ROY DOMINGO

Asean seeking to cut trade barriers By Catherine N. Pillas @c_pillas29

sean economic ministers are targeting to release a statement encouraging members of Asean to reduce trade barriers, according to Trade Secretary Ramon L. Lopez. Lopez, who chairs the Asean Economic Ministers Meeting (AEM) currently being held in Manila, said Asean members will commit to slash nontariff barriers (NTBs) at the end of the five-day AEM. “We will be releasing a statement

5,975

The number of nontariff measures currently being implemented by Asean member-countries

that will call on all Asean economies to reduce nontariff measures [NTMs],” he told reporters in an

PESO exchange rates n US 51.1180

interview on Wednesday. NTMs restrict trade and increases the cost of trading. The Philippine Institute for Development St ud ies (Pids) disting uishes bet ween NTMs and NTBs in goods trade. Pids said not all NTMs are seen as “trade discriminatory” or “trade restrictive”. Some NTMs even “encourage” trade, as it bolsters consumer protection and strengthens certification. NTMs that are implemented with protectionist aims, however, See “Asean,” A2

Rene E. Ofreneo

laborem exercens

he Association of Southeast Asian Nations (Asean) is celebrating its 50th year. Somehow, the association has overcome its Cold War beginnings. It was established in 1967 as an anti-Communist bloc at the height of the US war campaign in Indochina. Today, the socialist-oriented states of Cambodia, Lao PDR, Myanmar and Vietnam (CLMV) are now ironically part of the Asean, which includes the original states of Indonesia, Malaysia, the Philippines, Thailand and Singapore. The 10th member is oil-rich Brunei Darussalam. Continued on A11

Continued on A2

Govt, firms agree to unify toll-road collection system

malaysian bigwigs Dato Sri Mustapa Mohamed (right), Malaysian minister of international trade and industry, leads the symbolic

Asean rising: Can the region be transformed into one cohesive community?

Recidoro: “I think there is still an opportunity to convince the President that open-pit mining, if done responsibly and rehabilitated properly, can and should still be allowed.”

On Tuesday, Duterte said he agrees with environmental advocate, Regina Paz L. Lopez, that the open-pit mining method should be banned, eventually, but said he will give mining companies time to find other ways of extracting minerals. Inter v iewed du r i ng t he ongoi ng

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‘Open-pit mining only way to extract minerals in PHL’ By Jonathan L. Mayuga @jonlmayuga & Elijah Felice E. Rosales @alyasjah

2016 ejap journalism awards

RANSPORTATION Secretary Arthur P. Tugade is optimistic motorists using the country’s toll roads would have “a faster and more seamless travel experience” after the Department of Transportation (DOTr) seals an agreement with toll-road companies this month. “Making our toll systems interoperable will definitely bring a new level of convenience to our motorists, especially during peak seasons,” Tugade said in a statement issued from Clark City, Pampanga. The DOTr said the Toll Collection Interoperability Agreement (TCIA) would come into fruition after Tugade and the Tol l Reg u lator y Board (TR B) dog ged ly pursued ta l ks w ith toll-road companies operating 13 expressways in Luzon. “Our expressways are managed

16 The number of companies that are parties to the Toll Collection Interoperability Agreement

by different companies,” Tugade was quoted in the statement as saying. “But they have always demonstrated that they are willing to work together and work with the government if that means giving motorists, their customers, a better travel experience.” The DOTr cited 16 parties to

the interoperability agreement, which include San Miguel Holdings Corp., Private Infra Development Corp., Skyway O&M Corp., South Luzon Tollways Corp., Vertex Tollways Development Inc., Star Infrastructure Development Corp., Nlex Corp., Tollway Management Corp., Citra Metro Manila Tollways Corp., Manila Toll Expressway Systems Inc., Metro Pacific Tollways Corp., Cavitex Infrastructure Corp., PEA Tollway Corp., MPCALA Holdings Inc., Ayala Corp. and MCX Tollway Inc. “Under the agreement, the tollroad companies will be required to make the necessary tweaks in their toll-collection systems to make them interoperable and integrated,” the DOTr said. For motorists using electronic tags, this means they can seamlessly use their electronic tag See “Govt,” A2

As N. Korea aims nukes at US, S. Korea and Japan feeling heat

A S H I N G T O N—A s wor r y i ng a s Nor t h Korea’s nuc lear advance is for America, the increasingly realistic threat of an atomic warhead striking a US city might be even more unnerving for South Korea and Japan. So much so that the United States

is considering new ways to f lex its nuclear muscle to defend its vulnerable allies as they ponder if they’ll one day need atomic arsenals of their own. For decades, the US has defended South Korea and Japan, the nations most directly threatened by the North’s missiles and massive

conventional forces, through an extended “nuclear umbrella”. The basic premise is that an attack on either ally risked a devastating American response. It’s a US commitment that has guided the actions of American friends and foes alike. Continued on A12

n japan 0.4698 n UK 66.6323 n HK 6.5320 n CHINA 7.8222 n singapore 37.7980 n australia 40.8688 n EU 60.9122 n SAUDI arabia 13.6311

Source: BSP (6 September 2017 )

BMReports BusinessMirror

A2 Thursday, September 7, 2017

www.businessmirror.com.ph

‘Open-pit mining only way to extract minerals in PHL’ Continued from A1

Mining Philippines 2017 International Conference and Exhibition at the Sofitel Hotel in Pasay City, COMP Executive Director Ronald Recidoro said miners do not see the supposed ban as being implemented immediately. “The President said ‘eventually’, he would like to see the closure of open-pit mining and that he will give mining companies enough elbow room for an eventual change in the modality of getting what’s inside the bowels of the earth,” Recidoro added. He said the President’s statement on open-pit mining “is an expression of his frustration over the images of illegal mining that he has so far seen”. “I think there is still an opportunity to convince the President that open-pit mining, if done responsibly and rehabilitated

properly, can and should still be allowed,” Recidoro added. The COMP official said miners would cooperate with the Department of Environment and Natural Resources (DENR) and its attached agency, the Mines and Geosciences Bureau (MGB) to implement mining regulations strictly in all areas of the country. “Open-pit mines can be operated safely and efficiently, and once exhausted, can be rehabilitated and transformed into other land uses like agriculture, forestry or even ecotourism,” Recidoro said. In the Philippines, where most ore deposits for copper and nickel are near the surface of the earth, he said the only way to extract these minerals is through openpit mining. “Let us just make sure it is done to the best and highest standards,” he added.

COMP Chairman Gerard H. Brimo said the current mining law mandates mining companies to do progressive rehabilitation, adding that there are several companies that have successfully transformed mined-out areas into productive land dedicated to food production. COMP, under its new leadership, vowed to “go beyond compliance” in heeding Duterte’s call for the industry to shape up, by planting more trees and taking care of their host communities. Brimo, during a speech on Wednesday, reiterated that COMP will start to police its ranks through its oversight committee tasked to investigate members accused of wrongdoings.

Ban still in effect

Environment Undersecretary Jonas Leones, who represented Environment Secretary Roy A.

House. . .

Road board. . .

HB 5784 also provides for the adoption and institutionalization of Health Technolog y Assessment and the creation of the HTA Council. HTA denotes any process of examining or reporting properties of a medical technology used in health care, including safety, efficacy, feasibility and indications for use; cost-effectiveness; as well as social, economic and ethical consequences, whether intended or unintended. HB 5784 provides for the institutionalization of the HTA to guide decision makers, particularly in the procurement of medical devices, commodities, drugs and vaccines. The council will serve as advisory body to the Health secretary and the board of directors of the PHSC on the priority entitlements for universal health coverage. Another key feature of the bill is the mandating of income retention for all government health facilities. The bill authorizes DOH-retained hospitals, specialty hospitals and hospitals run by local government units to use 100 percent of their income to enhance their capacity and improve the quality of their services.

misuse of billions of pesos of the Road User’s tax collected by the government”. “Over the years, the Commission on Audit has unearthed signs of illegal utilization of the Road Fund, estimated to have amounted to a total of P90.72 billion, from 2001 to December 2012,” they said. The Road Board was created in 2000 under Republic Act 8794, which imposed a motor-vehicle users’ charge on owners of all types of motor vehicles. T he board is tasked to ensure

Continued from A12

Asean. . .

Continued from A1

are considered NTBs. “For us, sanitary and phytosanitary (SPS) measures that are on the basis of quality standards or consumer protection are justifiable but not if it’s to protect certain industries,” Lopez said. Currently, there are initiatives to push for trade facilitation such as putting up

Cimatu, clarified that the ban on open-pit mining has not been lifted. However, he said the DENR is not keen on reversing the policy just yet, saying Cimatu is awaiting the recommendations of the Mining Industry Coordinating Council (MICC), as well as the President’s policy direction. Early this week, MGB Chief Wilfredo G. Moncano was quoted in news reports as saying that he will recommend the lifting of the open-pit mining method. If this is true, Leones said the recommendation may form part of the ongoing MICC review process. But, he again insisted that the MICC recommendation will have to be reviewed by Cimatu. “Of course, the Secretary will take up the issue of open-pit mining with Duterte after discussing its pros and cons with various stakeholders, including [the] COMP, [the]

MGB and MICC,” he said. “For now, there is a status quo. The open-pit mining ban remains in effect.”

DENR priority

In his keynote speech read by Leones, Cimatu said the DENR is “serious” about making right the sound management of the country’s natural wealth. Mining has been identified as one of the DENR’s focus areas when it adopted a development framework called Program for Environment and Natural Resources for Restoration, Rehabilitation, and Development (PRRD), which is the DENR’s roadmap for 20172022, he added. The PRRD is anchored on the core principles of good and effective governance to ensure the integrity of the DENR’s frontline services; inclusive growth for the country through the improve-

prudent and efficient management and use of special funds known as the Road User’s Tax (or Road Fund), which is earmarked solely and exclusively for road maintenance and improvement of road drainage, installation of efficient traffic lights and road-safety devices and air-pollution control. Suarez, one of the authors of the Motor Vehicle User’s Charge law, said the Road Board was created to ensure proper maintenance of national and provincial roads, and for the safety of the motoring public. “The Philippines is a tropical country that experiences severe rain and flooding every half of the year. The rain water

that accumulates in the road side weakens the base course, and damages the asphalt and concrete roads,” he added. “We need clean and uncluttered drainages covering our entire road network to ensure that the roads remain in good condition despite the rains. It is ideal to have at least one personnel, per two kilometers of our national roads, to oversee and maintain them,” Suarez added. According to the Road Board, the allegations of fund misuse pertained to the transactions of the previous administration. The board is now led by Public Works Sercetary Mark A. Villar . Jovee Marie N. Dela Cruz

the Asean Trade Repository under the Asean Trade in Goods Agreement (ATIGA), Lopez added. Last week, World Trade Organization (WTO) Director General Roberto Azevêdo enjoined Asean member-nations to reduce nontariff barriers (NTBs) to reduce poverty and boost the economic growth of developing economies. Azevêdo said NTMs should be “scientifically-based” and should be anchored on international standards.

In its study titled “Review of IntraAsean Nontariff Measures on Trade in Goods,” released in April, Pids noted that while tariffs have been near zero in Asean, a rising trend has been noted in the use of NTMs. During the Asean Leaders’ Summit held in Manila in April, Malaysian Prime Minister Najib Razak said in his speech that in 2015, NTBs and NTMs in Asean jumped to 5,975 from 1,634 in 2000.

ment of the socioeconomic conditions of our local communities, especially those who host mining activities and social justice, where people, regardless of their status in life, could enjoy equitably the benefits derived from ou r nat u ra l resou rces a nd a healthy environment. T he st rateg ic elements to implement the priorities under the PRRD, he said, are best remembered using the acronym SR AC which stands for sustainability of interventions to the environment and its social impacts; research-based decision making that is science and evidence-based; adaptive and f lexible to the current state of the environment; and collaborative partnerships with all stakeholders in planning and implementation of DENR programs, projects and activities.

ICC-Cabinet. . . Continued from A12

also be funded by Japanese overseas development assistance. The ICC-Cabcom also approved the P15.35-billion Clark International Airport facility and the P3.5-billion Lower Agno River Irrigation System Improvement Project (LARISIP). The Clark International Airport Expansion Project, proposed by the Bases Conversion and Development Authority (BCDA), will be constructed under a Build-Transfer scheme under the Amended BOT law. It involves the construction of an 82,600-square-meter terminal building, with a design capacity of 8 million passengers per annum. In terms of project cost, some P12.55 billion will be sourced from the BCDA, while the remaining P2.8 billion will be sourced from the budget of the Department Transportation. Pernia said the Larisip will cover the development of a new service area and the rehabilitation of the Lower Agno River Irrigation System. The project will have a service area of 12,650 hectares. At least 10,000 farmers will benefit from free irrigation, which is expected to boost their income. The project is expected to begin in January 2018 and end by December 2021. “We want to improve our farmers’ quality of life by providing them access to irrigation and financing. This will increase their productivity, output and income,” Pernia said. The ICC is composed of the secretary of Finance, as chairman; the Neda secretary, as cochairman; and the Executive secretary, the Secretaries of Agriculture, Trade and Industry, Budget and Management and the governor of the Central Bank of the Philippines, as members. The Neda serves as the ICC’s Secretariat. The committee evaluates the fiscal, monetary and balance of payments implications of major national projects and recommends to the President the timetable of their implementation on a regular basis. It also advises the President on matters related to the domestic and foreign borrowings program and submits a status of the fiscal, monetary and balance of payments implications of major national projects.

With Lorenz S. Marasigan

Govt. . .

Continued from A1

from one toll-road operator in the toll road of another operator. For motorists still paying in cash, this means that in connected toll roads operated by different companies, they only have to get a ticket once at entry, and pay once at exit, regardless of which toll road they enter and exit from. For example, after completion of the Nlex-Slex connector roads, a motorist will only have to get a ticket once at an Nlex entry and pay once at an Slex exit. The DOTr said the TCIA’s first phase will cover electronic toll collection, which will use radio frequency-identification technology, while the second phase will cover cash-collection interoperability. It will take around six months for the first phase and another six months for the second phase, according to the agency. Apart from the DOTr and TRB, the Department of Public Works and Highways, Land Transportation Office and the Bases Conversion and Development Authority are also parties to the TCIA, the DOTr added. Lorenz S. Marasigan

news@businessmirror.com.ph

The Nation BusinessMirror

Palace rues Mariano’s C.A. rejection as DAR secretary By Elijah Felice E. Rosales @alyasjah

alacañangonWednesday said it regrets the rejection of former Agrarian Reform Secretary Rafael V. Mariano, saying his short stint in the government was crucial to President Duterte’s advocacy for farmers. Presidential Spokesman Ernesto C. Abella said Malacañang receives the rejection of Mariano as an unwanted development. “We regret the news of Department of Agrarian Reform [DAR] Secretary Rafael ‘Paeng’ Mariano’s rejection by the Commission on Appointments [CA],” Abella said in a news statement issued on Wednesday. Abella said the President is committed to helping workers in the agriculture sector, and Mariano, as a farmer himself, played a critical role in the development of programs for farmers. “Improving the quality of life of our farmers is the commitment of the Duterte administration, and Mariano has been pivotal in promoting farmers’ rights and welfare and ensuring their security of land tenure,” Abella said. “Our people will always be grateful to Mariano for his dedicated and passionate service to the nation,” Abella added. The powerful CA rejected the

appointment of Mariano as agrarian-reform secretary for allegedly favoring farmers “too much”, and disregarding the rule of law. Mariano was the fourth Cabinet member rejected by the powerful CA. The rest comprise of Judy M. Taguiwalo of the social-welfare department; Regina Paz L. Lopez, of the environment department; and Perfecto R. Yasay Jr., of the foreign office. The rejection of Mariano, as expected, drew criticisms from progressive groups, as he was the second left-leaning secretary to be rejected by the CA, the first being Taguiwalo. Human-rights group Karapatan branded the rejection of Mariano as a reaffirmation of the government's alleged bias to landlords. “The rejection of the appointment of Rafael Mariano is another indication that the Duterte regime is becoming more servile to antidemocratic interests, disregarding the previously agreed commitments on free-land distribution during the last peace talks of [the government and the National Democratic Front]. [Duterte] is ridding his Cabinet of good, sincere, highly competent and progressive public servants, leaving behind the plunderers, militarists and neoliberal fanatics,” Karapatan Deputy Secretary-General Jigs Clamor charged.

Legislators cautioned on abuse, misuse of impeachment process

By Joel R. San Juan

@rectomercene

he United States’ top diplomat to the Philippines on Tuesday said he is supportive of the calls for the return of the bells of Balangiga, which were seized by American troops as war booties during the Philippine- American war. From the time of former President Fidel V. Ramos to the present, Manila has repeatedly asked Washington to have the bells returned, but the US government was noncommittal. Recently, President Duterte, a vocal critic of the US, demanded that Washington return the relics. “I believe it’s the right thing to do and I really do hope that we will be able to return the bells soon,” Ambassador Sung Kim told journalists at the US Embassy in Manila. Kim said there is “an ongoing

effort” and “an ongoing discussion within the US government and the Philippine government to try and facilitate the return of these bells as quickly as possible.” One of the three church bells is at the US base in South Korea, while two others are in Cheyenne, Wyoming. Historical accounts said one of the bells was used to signal the surprise attack by Filipino fighters against American soldiers. Out of the 74 American soldiers, 34 survived, and eight died of wounds. Of the Balangiga men who took part in the attack, 28 were killed. The enraged commander of the Americans retaliated and came back to burn the town and everything in it, including the church, and took the three bells of Balangiga with them. Kim acknowledged that the bells are “emotionally and historically important” for the Filipino people.

In a news statement released on Wednesday, the national leadership of the mandatory organization of lawyers in the country said any abuse of the impeachment process should be regarded as unconstitutional. The IBP issued the statement as the impeachment process against Chief Justice Maria Lourdes A. Sereno and Commission on Elections Chairman Andres D. Bautista are set to start. An impeachment complaint is also being readied against Ombudsman Conchita Carpio-Morales by the Volunteers Against Crime and Corruption (VACC). “It is an assault upon the Consti-

“We want to return them,” he said, but added that there are some “issues” in the US that need to be threshed out before the bells are given back to the Philippines. While many solutions were offered, such as giving back one of the bells and allowing the others to remain in the US, or cutting them in half and splitting the remains between the Philippines and the US, nothing has proved to be viable to either parties. However, due to the pressure being exerted by Filipinos here and in the US, the Americans seems ready to capitulate. “It’s difficult for me to predict the exact time, but I assure you that we are deeply committed to making sure that the bells are returned to the Filipino people and I hope that we will be able to see some progress in the not too distant future,” Kim said.

China turns over ₧5-M check for Marawi soldiers

hina has turned over a check to the Armed Forces as part of its continuing support to the Duterte administration and the military, including in its ongoing operations against the Maute-Islamic State group in Marawi City. Chinese Ambassador to the Philippines Zhao Jianhua handed over a check worth P5 million on Tuesday to Armed Forces Chief of Staff Gen. Eduardo Año at Camp Aguinaldo as Beijing’s assistance to troops fighting

terrorists in Marawi City. During the donation, Zhao said another donation worth P15 million will be given before the end of the year to assist in the rehabilitation of Marawi City, particularly in the delivery of engineering equipment. Año expressed his gratitude to the Chinese government. Military Public Affairs Office chief Col. Edgard Arevalo said the assistance boost the military drive against the terrorists in the city. “The amount will go a long way as it

@jrsanjuan1573

HE 55,000-strong Integrated Bar of the Philippines (IBP) has sought restraint in filing impeachment case, which, the group said, tends to undermine the independence of the country’s judiciary.

US envoy favors return of Balangiga bells to PHL By Recto Mercene

Editor: Vittorio V. Vitug • Thursday, September 7, 2017 A3

has already been deposited yesterday [Tuesday] after the hand over to the AFP chief General Eduardo M. Año and now form part of the running tally of around P38.1million donations for the soldiers killed or wounded in Marawi,” Arevalo said. “We express our appreciation to the Chinese government, through its Ambassador to the Philippines Zhao Jianhua, for their generous gesture of donating P5 million in check to Filipino soldiers battling terrorists in Marawi,” he added. Rene Acosta

tution and the very ideal of limited government that is enshrined in it when impeachment is misused as the very tool to undermine judicial independence,” read the statement signed by IBP National President Abdiel Dan Elijah G. Fajardo. “May we express the hope that impeachment as a process is not being brandished as a weapon of submission, thereby defeating constitutional design that the judicial branch be insulated from considerations other than the facts and the law in discharging its function of adjudication,” the IBP said. The group said that, while impeachment is one of the tools in

the constitution to exact accountability, its frequent use could dilute its power and strain the limited power of Congress. “Impeachment is a scalpel, not a broadsword and even if it were the latter, no sword retains its sharpness if swung too far and too often,” the group added. The IBP also reminded lawmakers that the Constitution “jealously protects the independence of the judiciary as it is concededly the weakest of all three branches of government. As the unelected branch, the judiciary’s sole standard of action is the rule of law rather than the public pulse.” “It is an assault upon the Constitution and the very ideal of limited government that is enshrined in it, when impeachment is misused as the very tool to undermine judicial independence,” the IBP statement added. The IBP vowed to “closely and impartially monitor the proceedings with the view that our institutions are preserved, not diluted.” Two impeachment complaints have been filed against Sereno before the House of Representatives by the VACC and the Vanguard of the Philippine Constitution Inc. (VPCI) and

lawyer Larry Gadon. The complaints have already been endorsed by 41 members of the House. T he complainants accused Sereno of culpable violation of the Constitution and betrayal of public trust over alleged undisclosed assets in her statement of asset, liabilities and net worth and extravagant spending of judicial funds by purchasing a P5-million Toyota Land Cruiser and traveling on first-class flights, among others. They also cited as basis Sereno’s order in 2012 to reopen a regional constitutional administrative office (RCAO) in Cebu without the collegial approval of the Court, which was later on revoked by the Supreme Court. The complaint against Bautista, on the other hand, was filed by former Rep. Jacinto Paras of Negros Oriental and lawyer Ferdinand Topacio. The complaint was anchored on the claim of Bautista’s estranged wife Patricia Paz that the poll chief acquired assets beyond his income as public official and was liable for the breach in voters’ data prior to the elections last year.

Senators see no need for new law to recover Marcos ‘loot’ By Butch Fernandez @butchfBM

enators see no need to enact a new enabling law authorizing the Duterte administration to negotiate with the Marcos family to return multibillion-peso “ill-gotten wealth” to the national coffers. Senate President Aquilino L. Pimentel III said the Marcos case is “unique”, which, he said, explains “why President Duterte believes he needs Congress’s approval” of any deal with the Marcos family. “ President Duterte is thinking of a comprehensive settlement” that Pimentel said may require an enabling law,” even as the Senate leader notes there is already in place a system for recovering ill-gotten wealth. But such a system only applies to plea bargaining. Other senators, however, took contrary positions in separate interviews with the BusinessMirror. “Only Congress can grant amnesty,” Sen. Francis G. Escudero said. “The President’s power to compromise through the Presidential Commission on Good Government [PCGG] only extends to the civil aspect of the case per the 1998 Supreme Court ruling in Chavez vs PCGG.” Escudero added it is now up to the Senate leadership, specifically Majority Leader Vicente C. Sotto III, who sits as chairman of the Committee on Rules, to decide which committee will be given the primary task of drafting the remedial legislation

on the recovery of the remaining illgotten wealth the Marcoses offered to return. “Perhaps, it could be assigned to the Committee on Peace, Unification, on Justice and/or with the Ways and Means Committees,” Escudero said. Sotto agreed with Escudero that the task may be assigned to the Ways and Means Committee, chaired by Sen. Juan Edgardo M. Angara. In a separate text message to the BusinessMirror, former Senate President Aquilino Q. Pimentel Jr. recalled it was the PCGG that was originally empowered by law to recover the ill-gotten wealth of the Marcoses. He, however, added that Duterte is not barred from informally negotiating with the Marcoses for the return of “those stolen wealth”. “But whether the return of a few bars of gold will put a closure to the issue is something else,” Pimentel Jr. said, adding: “I guess an appropriate legislative enactment might be needed.” At the same time, Senate Minority Leader Franklin M. Drilon invoked “existing law and jurisprudence [that] it is the PCGG that is authorized to enter into compromise agreements” covering the Marcoses ill-gotten wealth. “Under the law, the PCGG is mandated to assist the President in the recovery of ill-gotten wealth,” Drilon said. “In pursuit of its mandate, the PCGG can legally enter into compromise agreements.” Drilon said, however, that such compromise should be “limited only

to civil cases” as in the forfeiture of ill-gotten wealth. But he clarified that, while there is clear jurisprudence establishing PCGG’s authority to enter into such agreements, the validity of the stipulations in the compromise agreement must pass judicial scrutiny. “Any compromise agreement shall be valid and binding only upon court approval. No agreement can be made contrary to law or the Constitution.” Asserting that he is not supporting any compromise agreement and was merely explaining PCGG’s authority, the former justice secretary of former President Corazon C. Aquino listed at least three cases where the court upheld the power of the PCGG to enter into compromise agreements. Drilon recalled the 2005 case of Republic and Jose O. Campos Jr. vs Sandiganbayan, where he said the Court ruled that the compromise agreement between the PCGG and alleged Marcos dummy Potenciano Ilusorio, “must be accorded utmost respect”. The said agreement was approved by then-President Fidel V. Ramos and subsequently approved by the Sandiganbayan. He added that in Benedicto vs Board of Administrators of Television Stations RPN, BBC and IBC, Drilon said the Court ruled that the power of the PCGG to enter into compromise agreements was “indisputable”. Drilon also cited Chavez vs PCGG, when the Court also said that the PCGG may enter into compromise agreements involving cases of ill-gotten wealth, “pursuant to Executive Order 14’s objective of securing a just and expeditious recovery of such wealth”.

Economy

A4 Thursday, September 7, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Whistle-blower: Substandard materials used in post-Yolanda housing projects

By Jovee Marie N. dela Cruz

@joveemarie

our years after Supertyphoon Yolanda devastated communities in Eastern Visayas, House leaders on Wednesday revealed that only 23,414 of the projected 205,128 housing units under the government’s resettlement program for typhoon survivors are being occupied. At a news conference, House Committee on Housing and Urban Development Chairman Rep. Alfredo B. Benitez of the Third District of Negros Occidental said the substandard construction of Yolanda housing projects is the main reason the occupancy rate is low at a meager 11.4 percent. “We found out that there was now a whistle-blower that testified the materials that were used were substandard, which, I think, validated most of our perception that the housing units that were being built were substandard,” Benitez said, referring to Engr. Camilo Salazar from Balangiga, Eastern Samar. Salazar is a subcontractor of JC Tayag, who won the bidding for the Yolanda housing project. “ S a l a z a r shou ld not h ave [been] allowed to participate as a subcontractor approved by the National Housing Authority to undertake the project. I will ask the NHA to conduct a probe

on these alleged irregularities,” Benitez added. “Among the issues in resettlement areas for Yolanda victims [that the committee has identified] include size of housing is inadequate; structure is of substandard quality; lack of livelihood opportunities in resettlement sites; lack of potable-water supply in resettlement sites; and lack of power line in the area,” Benitez said. Citing the report of the NHA as of February 2017, Benitez said that out of the projected 205,128 housing units under the government’s resettlement program for the victims of Yolanda, only 67,754 units, or 37 percent, were actually constructed, with only 23,414 units, or 11 percent, being occupied. Meanwhile, he said 74,286 units are currently under construction. “As of today [Wednesday], four years had passed, only 23,414 housing units are occupied—a mere 11.4 percent. This is based

Port cargo throughput grew 7.42 percent in H1–PPA report By Lorenz S. Marasigan

@lorenzmarasigan

RAFFIC at the ports in the Philippines grew almost a tenth during the first six months of the year, owing to surging domestic demand and private investments. Data from the Philippine Ports Authority (PPA) showed that total cargo throughput during the first half of 2017 increased by 7.42 percent to 125.805 million metric tons (mmt), from 117.118 mmt handled the year prior. “Port traffic sustained its growth momentum, propelled by the surging domestic demand, as well as private investment, which drove economy-wide growth in view of the government’s expansionary fiscal-policy stance,” PPA General Manager Jay Daniel R. Santiago said on Wednesday. Domestic cargo grew faster at 8.79 percent, while foreign volume increased by 6.51 percent. Import volume, likewise, bested the export volume after posting an 11.41-percent increase, while export remained flat. “The more efficient movement of cargoes coming in and out of the Manila ports as a result of the implementation of Terminal Management Booking System and other decongestion measures paved the way for the sustained efficient operations of the ports,” Santiago stressed. Almost all aspects of cargo operations, except for loose export cargoes, posted positive performances for the period January to June 2017. Mindanao ports, likewise, posted positive performance for the period in review, despite experiencing some security issues the past couple of months. “Mindanao ports, particularly those in Northern Mindanao, continued to show growth notwithstanding the ongoing security concerns in the region,” Santiago said. Composed of Iligan, Ozamiz, Cagayan de Oro, Butuan and Surigao, Northern Mindanao ports handled a total of 112.575 mmt, wherein container volume registered a 5.33-percent hike, from 173,191 metric tons in 2016 to 182,433 mmt for the period. Container traffic, on the other hand, ended the first semester at 3.489 million twenty-foot equivalent units (TEUs), from 3.113 million TEUs, a 12.05-percent hike. Passenger traffic also continue to post growth, albeit nominal, at 1.86 percent to 38.583 million passengers, from 37.879 million passengers in 2016, “driven by intensified volume of travelers during the observance of the Holy Week, as well as the continuous reliance by the sea-traveling public on roll-on, roll-off (Roro) vessels, fast crafts and motorized bancas as primary mode of transportation for domestic interisland connectivity.” Santiago added the positive stream in passenger traffic serviced at the ports may have also been the result of favorable response of the public to the governments’ domestic ecotourism programs encouraging leisure interisland Roro travel to tourist destinations, such as Siargao, Puerto Galera, Bohol, Coron, El Nido and other emerging tourism sites. Shipcalls remained flattish at 219,380 from 220,721 due to the successive cancellation of trips due to inclement weather.

on NHA figures. Thirty-three percent has been completed and a total of 73,286 units are ongoing construction. We’re not convinced that this is the actual number. [I will seek] a special audit by the Commission on Audit to do the investigation and validate these figures,” Benitez added. T he go ve r n me nt h a s e a r marked some P75 billion for the implementation of housing and resettlement program for Yolanda victims. With this, Benitez, together with House Committee on Bank and Financial Intermediaries Chairman Rep. Ben P. Evardone of the Lone District of Eastern Samar and House Committee on Justice Vice Chairman Rep. Vicente S.E. Veloso of the Third District of Leyte are mulling over the possibility of filing plunder charges against JC Tayag of JC Inc., the main contractor of the Yolanda housing projects, as well as the officials of the NHA involved in the snail’s pace implementation of the project. Veloso also accused the NHA officials of gross negligence over the delayed implementation. “L ast week the committee went to my district and to Tacloban City to precisely conduct the investigation and I think they

were shocked to learn about the situation of the Yolanda housing projects in my province, because in some areas the projects have not yet been bidded out. And in some areas, the projects were bidden out but not yet started. And the others were started but abandoned,” Evardone said. For her part, Rep. Yedda Marie Kittilstvedt-Romualdez of the First District of Leyte urged the Palace to hold liable the people involved in the Yolanda housing anomalies. “We appeal to President Duterte to hold accountable the parties involved in the anomalies uncovered by the panel chaired by Congressman Benitez. Since it involves people’s money. We really need to get to the bottom of these controversies,” she added. “How can you take advantage of people during disasters? They should not make business out of the sufferings of Yolanda victims,” Romualdez said. “Two months from now [in November],” the lady lawmaker said, “we are going to commemorate the fourth Yolanda anniversary. It’s really painful that this development will greet us. It seems that we are victimized once again by another typhoon with a magnitude similar to Yolanda.”

How can you take advantage of people during disasters? They should not make business out of the sufferings of Yolanda victims.” —Romualdez

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Govt told to renew push for pro-poor programs By Cai U. Ordinario

@cuo_bm

he Philippine economy’s performance in recent quarters is not enough to meet the Duterte administration’s poverty targets, according to the National Economic and Development Authority (Neda). In a news statement issued on Wednesday, Socioeconomic Planning Secretary Ernesto M. Pernia said the government must focus on implementing pro-poor programs, such as the Conditional Cash Transfer and K to 12 programs. Based on the 2017-2022 Philippine Development Plan (PDP), the Duterte administration aims to cut poverty incidence to 14 percent in 2022, from 21.6 percent in 2015. “W hile sustained economic growth is a necessary condition for poverty and inequality reduction [or inclusive growth], it is not sufficient. Economic growth must be complemented by well-thought-out pro-poor programs to meaningfully lead to inclusive development,” Pernia said. Apart from these programs, Pernia also said there is a need to fully implement the responsible parenthood and reproductive health (RPRH) law and create “judicious IRRs” (implementing rules and regulations) for the free tuition in state universities and colleges. Pernia also identified policy reforms in the PDP that need to be prioritized. These include the Comprehensive Tax Reform Program and reducing of the cost of doing business. The Neda secretary also said there is a need to prioritize the easing of restrictions on foreign investments and lifting of quantitative restrictions on rice. Thus, Pernia requested the Presi-

We need bold decisions followed through by bold actions. Now is the time. We have a President with unprecedented popularity and trust ratings due to his audacity and heart for the poor. There can be no better time.”—Pernia dent to issue needed instructions, in line with Executive Order 27 (June 1, 2017), for the Cabinet to implement the recommended policy reforms in the PDP 2017-2022. “We need bold decisions followed through by bold actions. Now is the time. We have a President with unprecedented popularity and trust ratings due to his audacity and heart for the poor. There can be no better time,” Pernia said. The Philippine Statistics Authority’s (PSA) 2015 poverty statistics showed 1 in 5 Filipinos were considered poor. This translates to around 21.9 million poor Filipinos. PSA said these Filipinos do not earn P1,813 a month which is the minimum cost needed to meet all food and nonfood needs in the Philippines.

ERC pleads House reconsideration on ‘drastic’ agency budget cut By Lenie Lectura

@llectura

he Energy Regulatory Commission (ERC) on Wednesday appealed to lawmakers to reconsider the budget cut of the agency to P1,000 from the proposed P365 million. “The ERC respects the approval of the House of Representatives of a one thousand peso 2018 budget for the agency.… We trust that our representatives will reconsider the agency’s budget for the welfare of the more than 300 ERC employees and, more important, the consuming public,” the agency said in a news statement. The commissioners said they are striving hard to resolve the controversies, following the death of an ERC official last year. “We understand that the issues weigh heavily on the agency and we share the sentiments of the esteemed congressmen as we strive to resolve the said controversies following the death of a beloved colleague, ERC Director and Bids and Awards Committee Chairman Francisco Jose S. Villa Jr.” The ERC is now led by Officer in Charge Commissioner Alfredo J. Non, after ERC Chairman Jose Vicente A. Salazar came under fire when he was linked to the death of Villa, who took his own life last November 9. Villa accused Salazar of pre-selecting a bidder to undertake the audio-

visual presentation project. The other commissioners in the agency are Gloria Victoria YapTaruc, Josefina Patricia MagpaleAsirit and Geronimo Sta. Ana. They have asked the Office of the President (OP) to permanently stay Salazar’s preventive suspension preparatory for his removal from office. The commissioners said they conducted an internal inquiry and have submitted a comprehensive report to the OP in April, detailing the irregularities ranging from failure to follow procurement procedures, concealment of documents and, unilaterally signing orders, among others, without commission deliberations and approval. Salazar is serving a penalty of suspension for one of the violations he allegedly committed. The report and an anonymous complaint from concerned ERC employees prompted the OP to further investigate the allegations leveled against Salazar. Other government agencies have, likewise, conducted their respective investigations into the irregularities, and the commissioners, as well as staff, have cooperated with these agencies to arrive at an early resolution of these issues. “The four commissioners, during Chairman Salazar’s suspension, are striving to guide the agency to discharge its functions as normally as possible.

However, Salazar’s infractions and their far-reaching effects continue to hound the agency, and these have not escaped the attention of Congress and the public in general, thus, the call for the resolution of the said issues,” they said, adding that “normalcy in ERC’s operations have eluded the agency and the installation of a new leadership has become an imperative to fully restore ERC’s operations.” Sen. Sherwin T. Gatchalian also appealed to the House of Representatives to reconsider its decision to drastically cut ERC’s budget, as he cautioned his fellow legislators of its potentially devastating impact on the stability of the power sector. Under the current energy regulatory framework, the ERC is responsible for approving power rates and issuing permits required to get pending power projects off the ground. Gatchalian expressed concern that the massive budget cut would severely hamper the ERC's ability to fulfill these functions. “The ERC plays an indispensable role in the energy sector as its foremost regulatory institution. I fear that this budget cut will send a bad signal to energy investors and breed uncertainty in terms of electricity supply and power rates,” said Gatchalian, chairman of the Senate Energy Committee. He also expressed concern about the effect of the budget

cut on the rank-and-file employees of the ERC, noting that the proposed P365-million budget included a P14 million appropriation for retirement and life-insurance benefits. With these concerns in mind, Gatchalian urged his congressional peers to consider adopting more constructive means of addressing the issues of corruption and inefficiency, which have plagued the ERC as of late. “It would be better to aggressively pursue administrative and criminal charges against erring ERC officials, instead of punishing the entire agency as a whole for the sins of the higher-ups,” Gatchalian said. The senator also encouraged the members of the House to support his initiative to legislate institutional reforms in the ERC. Gatchalian has filed Senate Bill 1490, also known as the ERC Governance Act of 2017, which seeks to enhance accountability and transparency within the regulatory body by instituting structural reforms and liberalizing access to information concerning the commission’s deliberations and output. “I agree with my peers in the House when they say that the ERC really needs to shape up, and I believe that legislating long-term institutional reforms is the most constructive way of making this happen,” Gatchalian said.

Mount Sea Resort in Cavite holds forum, hosts ‘Kawil Award 2017’

N celebration of the International Coastal Clean Up 2017, Mount Sea Resort will hold the “Kapihan sa Mount Sea”, a breakfast forum, on September 26 from 7 to 10 a.m. The forum aims to increase public awareness as a way of promoting the protection and conservation of the

coastal and marine environment, especially the habitats of globally important terrestrial and marine species. In a news statement, Patterson Ngo, president and CEO of Mount Sea Resort, said the forum will examine and bring light to critical topic “The Fight Against Ocean Litter.”

Ambassador Thomas Ossowski of the German Embassy Foundation is expected to take part as special guest and speaker. Mount Sea Resort will also give recognition to fishermen who know and apply sustainable fishing and resource management during the Kawil

Award 2017. Awards Night will be on October 14 at Mount Sea Resort in Rosario, Cavite. “Our ocean[s] [are] important to us in many ways. They provide sanctuary for...marine species, livelihood for countless fishermen and if protected properly, could feed the world,” Ngo said.

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Editor: Jennifer A. Ng • Thursday, September 7, 2017

Tobacco output seen falling below 50,000 MT

By Jasper Emmanuel Y. Arcalas @jearcalas

hilippine tobacco output this year may not reach 50,000 metric tons (MT), as the decline in the demand for cigarettes discouraged farmers from planting the cash crop, the National Tobacco Administration (NTA) said on Wednesday.

NTA Administrator Robert L. Seares said he does not see tobacco production breaching the 50,000-MT mark this year, after output in the first half recorded a 10-percent decline. Data from the Philippine Statistics Authority (PSA) showed that tobacco output in January to June reached 48,922 MT, lower than the 54,363 MT recorded in the same period last year. “The country’s production has been on a downtrend in recent years. Also, I do not think the 48,922 MT would still increase as the Philippines has already entered the rainy season,” Seares told reporters on the sidelines of the NTA’s biennial tripartite conference for tobacco floor prices. Data from the PSA showed that the Philippines produced 56,456.73 MT of tobacco last year, which was slightly higher than the 56,193.50 MT recorded in 2015. Seares said the public’s “misinterpretation” of President Durterte’s Executive Order (EO) 26, which banned smoking in public spaces, discouraged consumers from buying tobacco products in the market. “The farmers and consumers had a different interpretation of EO 26. People thought that smoking was completely banned nationwide but it is not,” he said. “People can smoke but only in designated areas and not in public places. So the consumption of cigarettes declined, causing the demand for tobacco to also go down,” Seares added. In May Duterte signed EO 26, which disallowed minors to smoke, sell, or buy cigarettes or any other tobacco products. Also, vendors may not sell cigarettes in schools, public playgrounds, youth hostels and recreational facilities, including those frequented by minors. Under EO 26, each building must have a designated smoking area (DSA) where smoking may be allowed. This may be in

an open space, or a separate area with proper ventilation. Also, the DSAs should have no opening that will allow air to escape to the smoke-free area of the building or vehicle, except for a single door equipped with an automatic door closer. A DSA should not be located in or within 10 meters from entrances, exits, or any place where people pass or congregate, or in front of air intake ducts, according to the EO. “So what people thought is that what was going on in Davao is what is also going to happen here in Manila, or nationwide. And that cannot happen because the tobacco industry will die,” Seares said. The NTA chief also said the shutdown of Mighty Corp., which buys about 6.5 million kilograms of low-grade tobacco from farmers, also contributed to the decline in tobacco production this year. “We felt the effect of the closure of Mighty Corp. this year. Because Mighty is a major buyer of almost all of our lowgrade tobacco produce,” said Mario E. Cabasal, president of National Federation of Tobacco Farmers and Cooperatives (Naftac). Cabasal said the grading practice of some companies have also discouraged farmers from planting tobacco. “We do have floor prices for tobacco produce but grading them is a different matter. Graders tend to downgrade the quality of the produce to buy it at a lower price.” He noted that the floor price for tobacco of the highest grade, or “AA” tobacco, is P81 per kilogram. “Most farmers get only “A”, which carries a lower price. This prompts them to stop planting or to reduce the area devoted to tobacco.” Data from the NTA showed that the number of tobacco farmers declined to 43,625 last year from 46,531 in 2015. Tobacco harvest area also contracted by 6 percent to 30,648 hectares.

Tyson Foods to invest $320M in new chicken plant in Kansas

ONGANOXIE, K ansas—Tyson Foods Inc. will invest $320 million in a new chicken-processing plant in northeastern Kansas employing 1,600 people so that it can keep up with a growing consumer demand for fresh poultry, the company and state officials announced on Tuesday. The Springdale, Arkansas-based meat producer unveiled its plans during a news conference in Tonganoxie with Gov. Sam Brownback and other state and local officials. The company plans to build the plant outside the town of around 5,300 residents about 30 miles (48 kilometers) west of Kansas City and expects it to be open in mid-2019. Kansas offered the company a package of incentives “appropriate to a project of this size” to attract the plant, said Kevin Doel, a spokesman for the state Department of Commerce. He declined to provide details, noting that the department does not release such information until contracts with the state are signed. “We certainly needed to bring something to the table,” Doel said. “We were competing with other states.” But the announcement also attracted a small protest from a few local residents who suggested the company would provide low-wage jobs, the Lawrence JournalWorld reported. Tyson said jobs would have starting wages of $13 to $15 an hour. Stephanie Ventura and her husband

relocated to Tonganoxie about three years ago from Emporia, where Tyson operates a beef-processing plant. She does not look forward to having Tyson move in. “It stinks up the whole town,” she said. “It’s just not a wonderful way of life.” The company plans to buy a 300-acre site and also build a hatchery and feed mill. It expects to break ground on the project this fall. “We believe this new operation, which will incorporate the latest production technology, will enable us to meet the sustained growth in consumer demand for fresh chicken,” Tyson President and CEO Tom Hayes said in a statement. The plant will be able to process 1.25 million birds a week, and the company plans to contract with local farmers. It and state and local officials project that the plant’s payroll, payments to farmers and purchases of feed and utilities will total $150 million a year. “The far-reaching impact of this development will be felt by farmers, ranchers, agribusinesses and communities throughout eastern Kansas,” Brownback said in a statement. Tyson already operates six plants in Kansas that employ about 5,700 workers and made more than $2 billion last year in payments to cattle and hog suppliers. The company employs about 114,000 workers total and is one of the world’s largest food companies. AP

NIA won’t write off unpaid irrigation service fees

he National Irrigation Administration (NIA) will still collect some P12.31 billion in irrigation service fees (ISFs) owed by farmers pending the enactment of a law that will condone their debts. NIA Administrator Ricardo R. Visayas said, however, that the government-owned and -controlled corporation (GOCC) attached to the Office of the President has not imposed a deadline for the settlement of past accounts. “In fact, farmers may even avail themselves of incentives for paying their back accounts,” Visaya said in a statement. Earlier, Visayas added he has sought the help of the Office of the Solicitor General to collect the P12.31 billion in unpaid ISFs after the NIA rolled out the free-irrigation pro-

gram promised by President Duterte. The figure was based on the NIA’s records as of December 31, 2016. NIA Spokesman Pilipina Bermudez said more farmers are signing the new Irrigation Management Transfer (IMT) contract, which outlines the guidelines of the government’s free-irrigation policy. As stipulated in the (IMT) contract, the NIA would no longer collect ISFs from farmers. The NIA stopped charging ISFs starting January 1. Under Republic Act (RA) 360, or the NIA Charter, the GOCC is mandated to collect ISFs from farmers as payment for the delivery of irrigation water. The GOCC uses the money for the operation and maintenance of irrigation systems. R A 360 must be amended so the

N I A c o u l d f u l l y i m p l e m e nt t h e free-irrigation scheme. In May House Bill (HB) 5670, or the Free Irrigation Services Act, was approved on its third and final reading. Apart from the provision of free irrigation, the measure also indicated that the government would no longer call all back accounts or unpaid ISFs in national irrigation systems. The NIA has proposed a budget of P45.8 billion for 2018, which is 19.36 percent higher than its budget of P38.37 billion for this year. Visaya said the P2 billion allocated to the government’s free-irrigation service next year is already included in the P45.8-billion budget being sought by the NIA from the Department of Budget and Management. Jasper Emmanuel Y. Arcalas

TheBroa Quezon: King of Coconuts A6

Business

Thursday, September 7, 2017

By Roger Pe

N 2013 Supertyphoon Yolanda destroyed around 44 million coconut trees throughout the country, putting the livelihoods of more than two million Filipino farmers in jeopardy. The disaster caused the Philippines to skid from number one to number two as the world’s biggest coconut-producing country. Thank God most coconut trees in the southern Philippine province of Quezon were spared. Today the province is poised to reclaim the country’s top global ranking and is bidding to be one of Calabarzon’s most visited places for its natural beauty, historical significance and unique agro-tourism attractions. I knew of Quezon as an elongated wall on the map at the southeastern border of Luzon facing the Pacific, a province close to Sierra Madre mountain range, always battered by typhoons and seemed so distant. I also knew it was a land of countless coconut trees, and lambanog, the local vodka, came from there. So when an invitation came my way to check out Quezon, I dropped everything and joined the trip.

Southern trip

FROM Manila, traversing through the South Luzon Expressway was a fantastic ride. Our highway system in this part of south Manila, indeed, is a proud achievement by the Filipino. I took a nap from Southwoods and woke up in Calamba. The next thing I knew, we have reached San Pablo City and nearing Santo Tomas, Batangas. A few minutes more of enjoying the green scenery, Villa Escudero, at the western Batangas border entering Tiaong town, beckoned. That signaled we were in Quezon. And then there was Candelaria and Sariaya as we snaked through the province’s Eco-Road. On both sides of the highway, bamboo stalls greeted motorists with their local produce. If Tagaytay has pineapples, jackfruits and other fruits in season, these towns paint the scenery with bright hues of red, orange and yellow coming from baskets and baskets of luscious rambutan (native lychees). Quezon until now is full of coconut trees. The breadth and magnitude of its land are covered with “the tree of life.” New hybrid trees have replaced aging ones, I was told. They are not emaciatedlooking and tall like in olden times. They are now sturdier, bear more fruits and resistant to pestilence.

Lucena, capital city

A number of heritage houses greeted us upon arriving in the capital city of Lucena. From the looks of it, Lucena is prosperous, bustling and energetic, though the streets are narrow. It even has two malls showing movies simultaneously being shown in Manila. Alberto Bay Jr., acting head of the Quezon Tourism Office, and Raquel Barnett, senior tourism operations officer, welcomed us to Bulwagang Kalilayan, a restored art-deco building that hosts important provincial government meetings. The highlight of the meeting was the province’s traditional offering of hospitality: a jigger of lambanog. As we were partaking our hearty lunch of broiled tilapia wrapped in banana leaves, Bay said lambanog can be taken “pure” or with a fruity flavor. He explained taking sips of the alcoholic beverage is part of a local tradition in welcoming guests. “One must participate as a

Rebecca Villanueva-Labit, DOT Calabarzon regional director

sign of respect to the host and other guests,” he said. For the uninitiated like me, I asked: “Would we get zonked out on midday?” I learned that it was far from anything like that. It was supposed to be a gesture of good tidings. Even the young and the old and, yes, women, participate in the lambanog drinking ritual, I would learn. “It was always an insult to refuse a drink, although one is not obliged to take it,” Bay said.

Fast becoming a major festival, Niyogyugan of Quezon.

Part of culture

EVEN before the Spanish came, the act of drinking lambanog was already part of Quezon’s culture, Bay explained. “Quezonians are naturally social, and the purpose of drinking is to feel good and enjoy each other’s company, regardless of gender, age or social status.” He went on to say that Quezonians do not respect drunkards and despise people who have lost self-control in the act of socializing. “Here, getting drunk is considered boorish and indicative of a flawed character.” Communal customs are adhered to when drinking lambanog. So when the ceremonial lambanog drinking began at the Kalilayan ballroom, the host customarily threw out the contents of the first shot of lambanog but drank the next. He then refilled the shot glass for the next drinker. Only one glass was used (as customarily done) and each person must utter “Naay po” (meaning, here’s my drink for everybody to acknowledge one’s tagay, or shot). Then the kaumpukan (circle of friends) answers with “Pakinabangan po” (make use of it and don’t get wasted). It goes on and on until the bottle of lambanog runs empty.

Niyogyugan Festival

AFTER a quick tour of the city and by nightfall, we visited Niyogyugan Festival’s pièce de résistance: the jaw-dropping booths of Quezon’s

Find the sweetest rambutan in Quezon.

Quezon has plenty of beautiful heritage houses.

towns at the sunken garden of the provincial capitol. What a sight to behold, they transformed the façade of the capitol into a screen with multicolored lights dancing to the beat of the festival theme song. The booths were all made from parts of the coconut tree and portrayed the uniqueness of each town and their people. The booth of the town of Polillo showed sea creatures in and out of its booth so unique it drew one of the largest visitors. Atimonan town’s booth had a cascading “waterfall” at its booth entrance. Unisan’s booth showcased the town’s beautiful native handicrafts, bags, slippers and other interesting things were all around.

General Luna adorned its booth with colorful masks and portrait of the hero it was named after. The booth for Gumaca was one of my favorites because of its basket lanterns. The booth’s ceiling was fully covered with native fans. Infanta’s booth used layered coconut shells as cladding to symbolize a day in the life of a coconut farmer. General Nakar had a green roof showing a rainforest and a cave. Lopez town was literally like an open book to show its stature as a learning center in Quezon.

Show stars

THE stars of the show were, of course, Quezon’s local delicacies. There were the pancit habhab, Luc-

ban longganisa and bangus tinapa of Lucena City and the suman from Infanta, among others. Worth mentioning also is the province’s cuisine that is richly influenced by gata, or coconut milk. Data from the provincial tourism office said over half-a-million people gathered at the Quezon provincial capital to experience the Niyogyugan Festival, the province’s annual massive display of varied coconut products, as well as other farm and sea produce from its two cities and 39 municipalities. The festival turned the capitol grounds as a veritable “mega-agricultural shopping mall.” Exhibitors reportedly earned over P15 million in profits for products derived from

coconut, including virgin coconut oil, lambanog, skimmed milk, buko water drink, coco vinegar, flour, chips, sugar, cheese, yogurt cream and sauces. There were coco furniture, handicrafts, house décor, fiber and geo-net used in landscaping. The festival’s holiday spirit was spiced up by day and night musical concerts, a beauty pageant, culminating into cultural parade, street dancing and dance showdown that lasted till sunset. The monthlong celebration was in commemoration of President Manuel L. Quezon’s birthday on August 19, 1878.

Combined efforts

TOURISM Secretary Wanda TulfoTeo lauded the local government units headed by the office of Gov. David Suarez “for successfully presenting farm tourism at its best.”

aderLook

sMirror

www.businessmirror.com.ph | Thursday, September 7, 2017

s, Queen of Farm Festivals

Teo said, “The Philippines is blessed with abundant agriculture, as well as vast greenery and pristine scenery, a perfect combination for gourmet, health relaxation and leisure activities.” “This has given rise to agriculture or farm tourism, another profitable endeavor for tour operators and farmers,” she said during the launch of the Calabarzon Farm Tourism Travel Guide at the SMX Convention Center. Teo said the DOT has long recognized the value-added potential of farm and traditional agricultural sites as income-generating tourist destinations. “The idea of farms as tourist spots is not new. Imagine harvesting fresh farm produce for lunch, while your young ones wet their feet in a watering hole nearby,” she said. Last year, DOT accredited 14 more agri-tourism farms across the country, many of which are in the Calabarzon region. Previous to this, Lucban, Quezon, hosted the third Farm Tourism Conference with the theme “Healthy Soils for a Healthy Life” in support of the United Nations declaration of 2015 as the International Year of Soils.

Local destinations

The following were declared winners of Niyogyugan Festival

n Overall champion: Infanta (Atimonan, first runner-up and Real, second runner-up) n Float competition winners: first place, Infanta; second place, Padre Burgos; and third place, Atimonan. n Best Booth winners (Category B): first place, Padre Burgos; second place, Quezon; third place, Buenavista; fourth place, Guinyangan; fifth place, San Narciso; and sixth place, Macalelon. n Best Booth (Category A): first place, Infanta; second place, General Nakar; third place, Gumaca; fourth place, Sariaya; and fifth place, Real.

THIRTY-NINE towns participated in the Niyogyugan Festival booth competition.

After five years, the festival has become bigger, more colorful and has gained national recognition. “This is all because of the result of the richness of our culture, talent and the potentials of Quezonians to be great,” her son and Gov. David Suarez said.

Full support

Teo echoed Suarez’s message that Niyogyugan is also a fitting tribute to both the coconut and the Filipino farmers, not only in Quezon Province, but throughout the country, “a celebration of life, a kaleidoscope of Filipino cultural diversity, our resiliency and our virtue of hard work.” For the whole week, thousands of visitors came from all over the world to get the chance to see Quezon’s world-class destinations like Mount Banahaw, Cagbalete Island, Villa Escudero, Balesin Island and Puting Buhangin. According to Bay, the festival was a brainchild of Rep. Aleta Suarez of the Third District of Quezon province. “[The festival is also] our contribution to our tourism industry and our special way of ushering the Christmas season,” Bay added.

ACCORDING to Department of Tourism (DOT) Region 4-A/Calabarzon Regional Director Rebecca Villanueva-Labit, in terms of tourism development, they are currently implementing the following: support to the Polillo Group of Islands and Real-Infanta-General Nakar (Pogi-Reina) Cluster in the tourism master development plan that is attuned to the 2016 to 2022 National Tourism Development Program, and the conduct of various training programs on tourism awareness for various municipalities, tour guiding and basic statistics and data gathering. “Calabarzon [Cavite, Laguna, Batangas, Rizal, Quezon] has many things to offer—that’s the reason why our shoutout is ‘All you want is here’,” Villanueva-Labit said. According to her, the region has generated in 2016 about 26.1 million same-day visitors and 4.5 million overnight-staying visitors. “We are very strong in farm tourism, faith tourism, culinary, ecotourism, culture and arts, history and heritage,” Villanueva-Labit said. “The region needs to be one in terms of programs as we encourage local

government units to provide policies and strong legislation to help support the tourism industry.” Nonetheless, she said the road is paved with hurdles. “Challenges are numerous. There is a need to organize stakeholders, provide for adequate ordinances on solid waste management, traffic, standard services for tourism establishments, to name a few,” Villanueva-Labit said. “The cooperation of the people is important because tourism is the people’s business.”

Steps initiated

VILLANUEVA-LABIT said to make people and those in authority to seriously look into the various aspects of tourism, the DOT regional office is undertaking constant collaboration, meetings and training programs. “We encourage them to do something and implement what is necessary.” The activities are in line with the office’s vision for Quezon. “Quezon being the farthest from among the five provinces is a beautiful destination in itself,” she said. “There is an array of tourism activities that can be developed, available resources, both human capital and raw materials, long coastline adequate for beach tourism.” Villanueva-Labit added that Quezon has a unique character. “[Aside from being] a coconutrich province, [Quezon] is very accessible to almost five provinces both by land, sea and air.” She said she personally sees

Quezon as “a leading destination for beach tourism because of its islands and long coastline, rich tradition and culture, beautiful and talented constituents.” “However, we cannot do everything for them,” Villanueva-Labit said. “LGUs, together with the private sector, need to set a common framework for tourism development to generate jobs, sustainable source of income and revenue to the local government.” She also believes Quezon can compete with the more popular regions in the country.

People, infra

ACCORDING to Villanueva-Labit, the people of Quezon offer the unique attraction that other regions don’t have. “People will always make the difference,” she said. “If we have peace-loving, god-fearing environmentally aware people, that will be an outstanding characteristic to make [Quezon] as a destination apart from the rest.” To make Quezon enjoy an unprecedented increase in tourist arrivals, Villanueva-Labit said the DOT office would focus on faith tourism and festivals. For the former, there’s the Kamay Ni Jesus that generates tourist arrivals. For the latter, the province has the following festivals: Pahiyas, Arana’t Baluarte and Agawan. Pahiyas, the oldest of them, has become a brand of Lucban town. It honors San Isidro, patron

saint of farmers, and it is held every May 15 of each year. People in the town compete against each other in decorating their houses. The most creative (using varied farm produce, as well as the trademark kiping (colorful thin sheets of glutinous rice shaped into big leaves) are adjudged the winners. Spectacular beaches and springs abound in the northern part of Quezon facing the Pacific Ocean. The island of Balesin, for example, has become the playground of the rich and famous. The exclusive island resort features seven uniquely themed resorts and villas. “In the last three years, the Niyogyugan Festival has improved a lot not only in terms of participation by the entire province but the movement of people from one place to the other, coupled by numerous products it can boast to support tourism,” she said. “It has all the ingredients to become another major festival. Careful planning, collaboration, proper promotions and marketing need to be done to make it mainstream.” Still, Villanueva-Labit said Quezon needs right now more roads “so more tourists can go to more destinations” and “more state-of-the-art hotels and facilities.”

Farm tourism

At the Madrid Fusión Manila early this year, the DOT underscored the importance of agriculture and farm tourism in the Philippines in relation to making world-class dishes.

THE town of Jomalig has the famous Salibungot Beach, while Real is fast becoming famous for surfing, rivaling Siargao. Cagbalete Island in Mauban boasts of a white-sand beach and a beautiful sand bar. Mainit Hot Springs in Tayabas will invigorate those who want to take a dip into its refreshing waters. Heritage houses? Quezon has plenty of them. The province is home to a number of old Spanish houses from the 17th century to early 20th century up to the time when the Americans came. Among the most popular are the EnriquezGala Mansion, the Gala-Rodriguez house, Villa Sariaya and Villa Escudero. Each house has its own story to tell about the opulence of coconut landlords. Other Spanish-era structures also exist outside Sariaya, like the Casa de Comunidad de Tayabas, Malagonlong Bridge and the churches of Lucban and Tayabas. Mystic Mount Banahaw covers a big part of the province. Considered an active volcano, it is very popular among religious pilgrims and hikers. Just the sight of the majestic mountain makes one refreshed.

Tree of Life

QUEZON has 39 towns and two cities, Tayabas and Lucena, the most progressive and seat of provincial government. The latter is also independent from the administrative and fiscal supervision of the province, but is eligible to vote for provincial officials. Metro Lucena has an estimated population of 700,000, which is mostly concentrated in the south-central portion of the province. The province is the food basket of Calabarzon, producing 200,000 metric tons of rice and corn annually, or around 42 percent of the total rice and corn requirement of the region. Based on latest government statistics, Quezon rivals three Davao provinces as the country’s top coconut producer. It has a total coconut plantation of 391,196 hectares, representing 78 percent of its agricultural land, with 78 million coconut trees. As the second-biggest producer of coconut in the world, the Philippines is a major source of coco products consumed around the world. The country’s coconut industry provides livelihood for a third of the country’s population, government data showed. Our country’s 338 million coconut-bearing trees produce on average 15.344 billion nuts a year, with coconut product exports usually going to the US, Japan, Germany and China.

Banking&Finance

Thursday, September 7, 2017 • Editor: Jun B. Vallecera

BusinessMirror

news@businessmirror.com.ph

State agencies gung-ho about finding money for tuition-free program

udget officials still do not have a clear idea where to find the financial wherewithal to send millions of college students seen enrolled in various state universities and colleges around the country by next year, but vowed on Wednesday to locate the money, regardless.

Budget Secretary Benjamin E. Diokno also said not everyone wishing to go to college next year may be accommodated, as candidates have to pass an entrance examination to ensure that the P51-billion free-education program actually gets off the ground. According to the Department of Budget and Management (DBM), a nationwide entrance exam will be conducted

in December this year to help the government identify the students that will benefit from Republic Act (RA) 10931, or the Universal Access to Quality Tertiary Education Act. At a news conference, Diokno said funding for the program would either be sourced from w ithin next year’s budget or requested through a supplemental appropriation, since the 2017

spending plan has already been approved. He added the free-tuition law will cost around P51 billion on its first year of implementation alone. For this reason, Diokno said a national entrance exam would be done sometime this December. He did not say how much more such an exercise would cost the taxpayers or if such could be implemented with any reasonable efficiency to ensure that only the deserving get to have a statesponsored college education. In August the DBM said the implementing rules and regulations (IRR) were already deliberated upon by the Commission on Higher Education (Ched), the Technical Education and Skills Development Authority (Tesda), the president of the University of the Philippines (UP), the appropriations committee of the House of Representatives and the Senate finance committee. “The President wants to implement it on the first semester of next year. With or without money, we will look for it. We will finance it one way or another,” he said. R A 10931 was signed into law by

Sachet insurance now retail in SM stores B DO Insurance Brokers Inc. (BDOI), a subsidiary of Sy-led BDO Unibank Inc., and its retail insurance partner Pioneer Life Inc. (Pioneer), launched on Wednesday its over-the-counter insurance products to be sold at 59 SM Stores nationwide. Through InsureME@SM, or Insurance Made Easy at SM, BDOI offers shoppers of the mall, also owned by Henry Sy Sr., protection from vehicle, medical and travel risks as the insurer strives to simplify and educate Filipinos on insurance products and services. “BDO insurance brokers took on the challenge because we want to blaze the trail to bring insurance that is affordable and accessible to the public. If it’s readily available on the counter, it will be easy to make the public aware of and understand insurance. We did not want to limit it to one product because retailing is about giving choices, which SM is very capable of and known for,” BDOI General Manager and Senior Vice President Tracy Tan said at the event he hosted at Discovery Primea Hotel in Makati City. Pioneer Life a lso categor i zes its products into motor, compulsory thirdparty liability (CTPL), MediCash and Safe Trip. To have them, shoppers need only to fill out a seven-question appli-

cation form and submit their vehicle registration or medical documents at depa r t ment-store counters or send them through online messenger Viber before payment. MediCash, which specifically caters to dengue cases, offers clients financial support of P10,000 in exchange for annual payment of only P350. On the other hand, CPTL, which pays for injury to third-party individuals in vehicle accidents, covers up to P100,000 worth of medical or funeral expenses, while Safe Trip provides support for personal accident up to P1,000,000 and travel inconveniences, such as trip cancellation, flight delays and loss of baggage with initial payment of P199. Pioneer officials said their payment and product options were designed for low- to middle-income earners who comprise the majority of the Philippine population confronting unforeseen problems. With the simplified insurance application and SM partnership, the insurance firm hopes to extend the insurance prod-

ucts, which it called sachet insurance, to over 8 million clients and grow its 18 million applications. “Insurance is not a sexy product. Many associate it with expensive products, delayed claims, technical terms and fine print that are difficult to comprehend. Our intention to correct this is to offer insurance products that are relevant, affordable and available to the target market. We cannot do things the same way. It is vital that people are aware and understand insurance so it may cease to be a product that must be pushed or forced,” Pioneer President Lorenzo Chan Jr. said. Pioneer introduced retail insurance in 2008 and generated gross written premium of close to P2.2 billion, which were supported by equity of over P1.0 billion and assets of almost P7.5 billion in 2013. Kathryn Jose

Association governance documents Following through on my column last week (August 31, 2017) on the three fiduciary duties of the board of trustees, let me highlight this time the important governance documents that boards need to be familiar with and to give a check from time to time.

overnance documents define the rules, procedure and processes for the board and guide its action, ensuring that it operates in a way that is legal, ethical, accountable, transparent and to the benefit of its members. The four vital governance documents include: Articles of incorporation—This defines the purpose and primary undertakings of the association (also called “objects”) and other provisions like membership and delegation of powers. The document is generally a “contract with the state or jurisdiction” where the association is incorporated and takes precedence over other governance documents. Bylaws—These are written rules by which the association is governed, and must be consistent with the Articles. These define the structure of the board and the organization, as well as the rights of stakeholders, and the procedures by which they are exercised. These essentially serve as a “contract between the association and its members”. The bylaws are approved by

Association World Octavio Peralta the membership, including future amendments, if any. Strategic plan—This document defines the association’s strategy or direction. It describes the long-term goal that it works to achieve, and guides the board in developing initiatives, allocating resources and assessing success. Policies—These procedural documents further define how decisions are made and what will be conducted. A couple of examples are a code of conduct that defines how the board carries out its business honestly and with integrity, and a conflict of interest policy on how to deal with real and potential conflict of interest situations. The governance documents must accurately reflect, not only the law, but also the association’s actual operations so as not to have any confusion or misunderstandings, and to ensure that the association is not bound with any unintended require-

ments. These must provide guidance and directions for the board and the management staff as they make and implement decisions for the benefit of the members. It is, thus, important for those involved in the governance of the association to know the rules under which they operate. As an advocacy to strengthen association governance in the country, the Philippine Council of Associations and Association Executives (PCAAE), through its PCAAE Academy, conducts governance training programs and briefings for the boards of associations and other nonprofit and member-serving organizations. The column contributor, Octavio “Bobby” Peralta, is concurrently the secretary-general of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and the CEO and founder of the Philippine Council of Associations and Association Executives (PCAAE). PCAAE is holding the Associations Summit 5 (AS5) on November 22 and 23, at the Philippine International Convention Center (PICC), which is expected to draw over 200 association professionals here and abroad. The two-day event is supported by ADFIAP, the Tourism Promotions Board, and the PICC. E-mail inquiries@adfiap.org for more details on AS5.

President Duterte on August 3, 2017 and extended over eight state universities and colleges in Metro Manila, 49 in the rest of Luzon, 26 in the Visayas and 29 in Mindanao. The law extended over CHED-accredited local universities and colleges and Tesda-run technical-vocational institutions. The law exempts enrolled college students from 2018 onward from paying tuition, miscellaneous and other school fees, such as registration fees and laboratory fees, among others. Students forming part of the Pantawid Pamilyang Pilipino Program beneficiary households would have preferential treat-

ment over students who are not part of such households but evaluated based on income. Loan options will also be made available to students from private universities. Funds for such loans will be sourced from CHED’s Study Now, Pay Later program, which has been allocated P54 million in the proposed 2018 budget. The CHED and the DBM are currently exploring other possible mechanisms to allow private higher-education nstitutions to participate, such as entering into guarantees with government-owned banks like the Land Bank of the Philippines and the Development Bank of the Philippines. Rea Cu

Case clippings

By Justice S J Ranada Jr. MITIGATING CIRCUMSTANCES–intoxication For intoxication to be appreciated as a mitigating circumstance, the intoxication must neither be habitual nor subsequent to the plan to commit a felony. It must be shown that the mental faculties and willpower of the accused were impaired in such a way that would diminish the accused’s capacity to understand the wrongful nature of his/her acts. A bare assertion of inebriation at the commission of the crime is insufficient. Bacerra v. People 03 Jul 2017

GR 204544 Leonen, J

Still diminished interest in BSP term deposits

he Bangko Sentral ng Pilipinas’s (BSP) on Wednesday reported still diminished interest by banks and the various trust units on its term deposit facility (TDF) whose volume continued to drop. This was particularly noticeable on the 28-day TDF and indicative of the state of liquidity of the larger financial system. The weekly TDF auction showed continued undersubscription in the 28-day tenor even though the monetary authorities earlier scaled down the volume of offering for the facility. In particular, the 28-day TDF attracted only P84.42 billion in tenders, covering only 76.74 percent of the total P110 billion offered for the week. Wednesday’s tenders proved significantly lower compared to P109.86 billion worth of tenders the previous week. Also last week, the BSP announced the decision to reduce the volume of its 28-day offering to address the persistent undersubscription. This brought the offering to only P110 billion, from P140 billion. T he 28 - d ay d e p o s it s at t r a c t e d increasingly fewer subscriptions since

the March 22 auction, according to BSP data. In May the BSP made similar adjustments and cut the 28-day TDF from P150 billion to P140 billion while increasing the seven-day TDF to P40 billion from P30 billion. For the shorter tenor, meanwhile, the seven-day TDF was oversubscribed this week, with P42.92 billion worth of tenders that exceeded the P40 billion BSP offer. This was a reversal from undersubscription at the previous auction that attracted only P32.44 billion. Rates for the facilities went in opposite direction as the 28-day TDF averaged lower to 3.491 percent, from 3.4961 percent in the previous week. The rate for the seven-day TDF proved slightly higher to 3.3334 percent, from 3.3162 percent in the previous week. Earlier, BSP Deputy Governor Diwa C. Guinigundo said the excess liquidity of banks have been deployed as loans instead of being merely deposited with the BSP. This development, Guinigundo said, is consistent with liquidity forecasts, as well as with the outlook on inflation and growth. Bianca Cuaresma

Record inflows just the start for Asia’s highest yield debt

sia’s highest-yielding bonds are holding on to their fans, with top investors saying they’ll keep buying Indian and Indonesian debt—even if policy makers don’t keep easing. Rupee and rupiah bonds lured a record $29 billion of inflows this year, with central banks in India and Indonesia reducing key interest rates amid lackluster inflation and growth. While swaps traders don’t see India cutting again this year and economists are mixed on the rate outlook for both countries, firms, like Mirae Asset Global Investments Co. and Schroder Investment Management Ltd., remain bullish on debt that offers the highest yields in Asia. “In a stable global environment with the world’s four major central banks very cautiously removing postcrisis unorthodox monetary policies, thanks to low inflation, investors will continue to look for yield,” said Rajeev De Mello, head of Asian fixed income at Schroder, which oversees $543 billion globally.

Yields that are about twice that of regional peers—along with economic reforms—have helped rupee and rupiah bonds reel in the cash this year. Ten-year Indian sovereign debt pays 6.49 percent, while similar-maturity Indonesian notes offer 6.67 percent. South Korean bonds saw the most inflows at $28.1 billion amid that nation’s own issues with price growth and expansion rates. But combined, India and Indonesia are in front. Their debt has drawn in $19.9 billion and $9 billion, respectively, in 2017, even as developed-nation central banks pivot toward tightening and the Federal Reserve looks to trim its $4.5-trillion balance sheet, a shift that could potentially lure investors away from emerging Asia. W h i le benc h m a rk rate c ut s h ave helped—both countries eased last month— some economists now see India and Indonesia in holding patterns, so positive economic factors are what’s keeping investors like Schroder in these markets.

The World Thursday, September 7, 2017

Trump ends program giving protection to 800,000 ‘Dreamers’

ASHINGTON—President Donald J. Trump on Tuesday ordered an end to the Obama-era program that shields young undocumented immigrants from deportation, calling it an “amnesty-first approach”, and urging Congress to pass a replacement before he begins phasing out its protections in six months. As early as March, officials said, some of the 800,000 young adults brought to the United States illegally as children who qualify for the program, Deferred Action for Childhood Arrivals (Daca), will become eligible for deportation. The five-year-old policy allows them to remain without fear of immediate removal from the country and gives them the right to work legally. Trump and Atty. Gen. Jeff Sessions, who announced the change at the Justice Department, both used the aggrieved language of antiimmigrant activists, arguing that those in the country illegally are lawbreakers who hurt native-born Americans by usurping their jobs and pushing down wages. Trump said in a statement that he was driven by a concern for “the millions of Americans victimized by this unfair system.” Sessions said the program had “denied jobs to hundreds of thousands of Americans by allowing those same illegal aliens to take those jobs.” Protests broke out in front of the White House and the Justice Department and in cities across the country soon after Sessions’s announcement. Democrats and some Republicans, business executives, college presidents and immigration activists condemned the move as a coldhearted and shortsighted effort that was unfair to the young immigrants and could harm the economy. “This is a sad day for our country,” Mark Zuckerberg, the Facebook founder, wrote on his personal page. “It is particularly cruel to offer young people the American dream, encourage them to come out of the shadows and trust our government, and then punish them for it.” Former President Barack Obama, who had warned that any threat to the program would prompt him to speak out, called his successor’s decision “wrong,” “self-defeating” and “cruel.” “Whatever concerns or complaints Americans may have about immigration in general, we shouldn’t threaten the future of this group of young people who are here through no fault of their own, who pose no threat, who are not taking away anything from the rest of us,” Obama wrote on Facebook. Both he and Trump said the onus was now on lawmakers to protect the young immigrants as part of a broader overhaul of the immigration system that would also toughen enforcement. But despite broad and long-standing bipartisan support for measures to legalize unauthorized immigrants brought to the US as children, the odds of a sweeping immigration deal, in a deeply, divided Congress appeared long. Legislation to protect the “Dreamers” has also repeatedly died in Congress. Just hours after the angry reaction to Trump’s decision, the president appeared to have second thoughts. In a late-evening tweet, Trump specifically called on Congress to “legalize Daca,” something his administration’s officials had declined to do earlier in the day. Trump also warned lawmakers that if they did not legislate a program similar to the one Obama created through executive authority, he would “revisit this issue!”—a statement sure to inject more uncertainty into the ultimate fate of the young, undocumented immigrants who have been benefiting from the program since 2012. Conservatives praised Trump’s move, though some expressed frustration that he had taken so long to rescind the program and that the gradual phaseout could mean that some immigrants retained protection from deportation until October 2019. The White House portrayed the decision as a matter of legal necessity, given that nine Republican state attorneys general had threatened to sue to halt the program immediately if Trump did not act. Months of internal White House debate preceded the move, as did the president’s public display of his own conflicted feelings. He once referred to Daca recipients as “incredible kids.” The president’s wavering was reflected in a day of conflicting messages from him and his team. Hours after his statement was released, Trump told reporters that he had “great love” for the beneficiaries of the program he had just ended. “I have a love for these people, and hopefully, now Congress will be able to help them and do it properly,” he said. But he notably did not endorse bipartisan legislation to codify the program’s protections, leaving it unclear whether he would back such a solution. Trump’s aides were negotiating late into Monday evening with one another about precisely how the plan to wind down the program would be executed. Until Tuesday morning, some aides believed the president had settled on a plan that would be more generous, giving more of the program’s recipients the option to renew their protections. New York Times News Service

briefs Powerful Hurricane Irma hits first Caribbean islands

SAINT JOHN’S, Antigua—The most powerful Atlantic Ocean hurricane in recorded history made its first landfall in the islands of the northeast Caribbean early on Wednesday, churning along a path pointing to Puerto Rico, the Dominican Republic, Haiti and Cuba before possibly heading for Florida over the weekend. The eye of Hurricane Irma passed over Barbuda around 1:47 a.m., the National Weather Service said. Residents said over local radio that phone lines went down. Heavy rain and howling winds raked the neighboring island of Antigua, sending debris flying as people huddled in their homes or government shelters. Officials warned people to seek

protection from Irma’s “onslaught” in a statement that closed with: “May God protect us all.” The Category 5 storm had maximum sustained winds of 185 miles per hour (295 kilometers per hour), according to the US.National Hurricane Center in Miami.

Putin calls for talks with N. Korea

SEOUL, South Korea—Russian President Vladimir Putin has called for talks with North Korea, saying sanctions are not a solution. Putin made the remarks on Wednesday after meeting with South Korean President Moon Jae-in in Vladivostok, Russia. North Korea says it detonated a hydrogen bomb in its sixth nuclear test last Sunday. Putin, speaking in China on Tuesday, had condemned the nuclear test as provocative, but said Russia views sanctions on North Korea as “useless and ineffective.” AP

A10 Thursday, September 7, 2017 • Editor: Angel R. Calso

Opinion

BusinessMirror

editorial

World War 3 can be an accidental war

lobal leaders in the 21st century certainly know the lessons learned from two world wars that another global military confrontation is no longer a feasible option. World War I broke out because of the assassination of Archduke Franz Ferdinand of Austria and his pregnant wife on June 28, 1914. He was the nephew of Emperor Franz Josef and heir to the throne of Austria and Hungary. A Serbian terrorist group planned the assassination, which set off a chain of events that would lead to the start of the first World War. At that time, defense alliances existed between the major European countries. This meant that if one country declared war on another, the other countries would be dragged into the conflict because of the treaty they signed. Britain, France, Ireland and Russia were part of an alliance called the Triple Entente, while Germany aligned itself with Austria and Hungary—known as the Central Powers. One month after the Archduke’s assassination—on July 28, 1914—Austria and Hungary declared war on Serbia with the backing of Germany. Germany then declared war on Russia on August 1, and on France on August 3. On August 4, 1914, the German troops marched on France, and the route they took went through Belgium. Since Britain had agreed to maintain the neutrality of Belgium, the British Empire immediately declared war on Germany. The Allies won World War I. The members of the alliance were the British Empire, France, Italy and the Russian Empire (although Russia pulled out before the end of the war). Japan, Greece, Belgium, Serbia, Montenegro, Romania and several other nations contributed to their cause. The United States fought alongside Allied troops, but never formally entered the alliance. The war ended in November 1918, leaving 17 million dead and 20 million wounded. World War II was the deadliest military conflict in history in terms of casualties. Over 60 million people were killed, or about 3 percent of the 2.3 billion world population in 1940. Historians said the events leading up to World War II included the rise of Italian fascism in the 1920s, Japanese militarism and invasion of China in the 1930s and the political takeover in 1933 of Germany by Hitler and his Nazi Party and its aggressive foreign policy. However, the immediate trigger for the spread of World War II came when Britain and France declared war on Germany after Axis forces—the coalition headed by Germany, Italy and Japan—invaded Poland in September 1939. Ultimately, World War II was won by the Allies, which consisted of the US, Britain, Australia, France, China, the Soviet Union and Canada. There were other countries, like the Philippines, that were involved in the defeat of the Axis forces. World War II ended in Europe with the unconditional surrender of Germany in May 1945. In Asia, the war ended when Japan surrendered unconditionally on August 14, signing their surrender on September 2. The Japanese surrender occurred after the US dropped atomic bombs on Hiroshima on the 6th of August and Nagasaki three days later. Will we ever see another world war? We all know that in this nuclear age, World War III could mean the total destruction of the Earth. The world has no choice but to have total peace. However, global tensions between many of the world’s nuclear powers could lead to the outbreak of another global military conflict. Even though no one among our global leaders wants war, the immediate cause of World War III is the preparation for it. Without atomic bombs, hydrogen bombs and intercontinental ballistic missiles, there would be no possibility for an accidental World War III.

Since 2005

‘Let them eat debt’ John Mangun

OUTSIDE THE BOX

f you listen to certain politicians and thought-movers in society, the most important social issue is “wealth distribution”. That idea has its roots in the mythological motto of the equally mythological Robin Hood: “Steal from the rich to give to the poor”. But “stealing” has had a bad implication for a long time, especially after Moses did the Ten Commandments thing with “Thou shall not steal” coming in right after murder and adultery. “Distribution”, on the other hand, sounds like something similar to handing out Christmas gifts to orphans and street children. One problem is that if wealth is not created through building something or selling what you have built, then it has to be distributed from someone that has wealth to someone who does not. And then we are right back to Robin Hood. Another problem is that the people calling for the social justice

of wealth distribution are not the poor. In fact, if a “poor” man actually steals from the rich, the government puts him in jail even if he gives the wealth to someone poor like his brother-in-law. So then we are in a spider web of confusion. The person that wants wealth distribution is actually the one who has the wealth, and they want to keep it. Otherwise, Mark Zuckerberg and Bill Gates would not be living in multimillion-dollar mansions. They would, as Jesus of Nazareth said, “Sell all your possessions and give the money to the poor, and you will have treasure in heaven”. But I would imagine that driving a million-dollar Pagani

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While the US is the debt-winner, the same has happened across the developed world. The “poor” have been given debt as a substitute for wealth. They feel wealthier, and do have more to spend. Of course, high levels of debt always and inevitably become unsustainable and cannot be repaid. The debtor loses whatever he or she bought with the debt and, theoretically, the lender loses also. Thousands of poor people lost their homes in the West at the beginning of the financial meltdown starting in 2007. Amazingly, though, the lenders did not lose very much, as governments bailed out much of the bad loans using taxpayer money. It is almost as if the government, in this case, “stole from the poor to give to the rich”. The Bible book of Proverbs says: “One who oppresses the poor to increase his wealth and one who gives gifts to the rich—both come to poverty”. Can you say “Global Financial Crisis”? E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stockmarket information and technical-analysis tools provided by the COL Financial Group Inc.

The Reform the Armed Forces Movement

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Huayra—one of Zuckerberg’s automobiles—is pretty close to heaven. Given the choice of selling your house with 26 bedrooms—which Bill Gates has—and having the government tax the family that has a household with one kitchen and a five-year old Toyota, there is no choice. The problem with that idea is, eventually, the guy driving the Toyota realizes he is being taken advantage of and shows his displeasure in the voting booth. Politicians and the rich, by extension, are not stupid. Not everyone can own an exotic sports car or a 20,000-square-meter house. Even the poor know that. But what if we could let the poor experience the pleasure of those rich things? You do not need money to own something. All you need is debt. For 50 years the West has conditioned its citizens that if “Greed Is Good” then “Debt Is Great”. Leave wealth with the wealthy and give the poor debt. In the United States, the average household has credit card debt of $16,000; $27,000 for auto loans; $48,000 for student loans; and $169,000 for mortgages. US household debt equals 180 percent of the total annual economic output.

Part Six

The War Room

HEN Juan Ponce Enrile marched to Camp Crame to join Fidel V. Ramos at 2:24 p.m. that Sunday, the camp had only 450 officers and men, augmented by Enrile’s own force of 320 men, including Gador’s Cagayan 100. The Operations Center was not in the same room as the Command Center (War Room), which was situated at Ramos’s office a few meters away. Initially, this caused some incoordination, but was remedied immediately after a meeting with Navy Capt. Jesus Durian, who was in charge of the War Room. An inventory of forces in Camp Crame showed that the rebel side was inferior in strength in terms of number and firepower. The camp had the headquarters company and the Headquarters Service Battalion contingency force (a battalion minus) under Col. Paterno Lomongo, two Special Action Force companies under Lt. Col. Rey Velasco, a company-minus from the training command under Lt. Col. Hercules Cataluña and the office personnel of various units, who had been issued firearms. Colonel Billy Villareal’s familiarity with the capability, strength and identities of units loyal to Ferdinand E. Marcos and Fabian Ver, which he acquired during his long tenure as Armed Forces of

the Philippines operations branch chief at general headquarters, came in handy throughout the crisis. Villareal also had maintained contact with mass organizers for the Corazon Aquino for President Movement. Through these organizing officers, the War Room was able to mobilize, shift or organize people’s barricades at threatened approaches to the camp. Among these organizing officers are lawyer Amor Reyes, Roberto Gabuna, Grace Veloso Bucu, Robert Bucu III, Joey Ibay, Tony Villaruz Selda, Casey Alejandre, Roger Cleofe, Pepe Neyra, Jules de Vera, Manny Roxas, Tony Molina, Silverio Florentin, Dr. Geronimo Lavilla, Benny de Ocampo, Gener Sula, Peter Tan, Adonis Quianan, Fernando Totoy Velasquez and Leonardo Bonayon. Tan’s communication system in Eagle Communications, and the communication systems of the Kiwanis Club of Manila North and the Kiwanis Club of Kalayaan, Quezon City, helped the organizers monitor the movement of loyalist troops toward Camp Crame.

Two Reform the Armed Forces Movement (RAM) officers, Lt. Col. Ruben Gange and Lt. Col. Ceferino Sarmenta Jr., who resigned from the service to dramatize their hatred of the Marcos-Ver clique, were among the first to join Enrile and Ramos. They coordinated with their classmate, Lt. Col. Rolando Garcia, in gathering intelligence information. Lt. Col. Rodolfo Vasquez, another Reformist officer, and Simon Samonte, Mrs. Enrile’s aide, were not in the camp during the four-day revolution, but they had a job that was just as dangerous and as important. Their assignment was to secure Cristina, the minister’s wife, their children and grandchildren. To avoid danger, Vasquez and Samonte transferred the minister’s family from one friend’s house to another. Even in the United States, where mutiny could mean immediate incarceration, seven Reformist officers studying at the US Army school in Fort Lee, Virginia, motored to Washington, D.C., occupied the Philippine embassy and declared they were supporting the revolt. The officers, later commended by Enrile and Ramos, were Army Lt. Col. Arturo B. Carillo, Army Capt. Joseph Li, Army Capt. Arturo Querol, Army Capt. Arnold Pangilinan, PC Capt. Jun Manga, PC Capt. Artemio Rodriguez and PC Capt. Winifredo Borja. Another Reformist, Col. Hernani Figueroa, an intelligence and psywar expert, was given another job and almost paid for it with his life. His mission was to divert the attention of Ver and his agents from RAM’s inner core. To accomplish the mission, Figueroa devised his own strategy: He launched a one-man war against Ver and company. Making full use of the media, he denounced the general and his clique in the armed

forces at every turn, blaming them for the corruption and the demoralization in the ranks of the military. Figueroa’s campaign against Ver was so effective that, in time, the general’s men were concentrating their attention on this seemingly brash RAM officer, and all but ignored the activities of the other members. On Day Three of the revolution, Figueroa saw how close he had come to courting death at the hands of Ver’s henchmen. He had been holed up with Ramos at Camp Crame since Day One, but on Monday, Figueroa slipped out of the camp to visit his wife and children in their quarters at Camp Aguinaldo. Soon after he cleared the gate, a group of armed Marcos loyalists was on his tail. They followed him to his quarters. He knew he would be arrested and, perhaps, silenced forever. Figueroa decided to escape before they could surround the house. He jumped out of a window near the kitchen and ran to a nearby cottage, occupied by a military chaplain, barely realizing that he was still in his underwear. A garbage truck was parked outside the chaplain’s cottage. Figueroa climbed into the truck and hid under a pile of dried leaves. As it inched its way through the multitude, Figueroa jumped out of the truck. To conceal his embarrassment, he started jumping up and down like lunatic until he got to a telephone. He asked his wife to bring him decent clothing. “I was lucky nobody recognized me,” he told Enrile after the revolution.

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

Opinion

BusinessMirror

opinion@businessmirror.com.ph

Asean rising: Can the region Each other’s keepers be transformed into one cohesive community? Msgr. Sabino A. Vengco Jr.

Alálaong Bagá

Dr. Rene E. Ofreneo

LABOREM EXERCENS Continued from A1

N the last two-and-a-half decades, the focus of the Asean has been the transformation of the Southeast Asian region into one economic bloc. As repeatedly written in numerous Asean declarations issued in the annual Asean summits, the goal is to have one Asean Economic Community (AEC) characterized by the free flow of goods, free flow of capital/investments and free flow of skilled labor. Accordingly, Asean shall become one production base, one regional market, one borderless economy. For this purpose, the Asean adopted in 2007 a road map or blueprint for the realization of AEC by 2015. This AEC 2015 blueprint has since been replaced by AEC 2025 blueprint. The reality is that economic community-hood will not happen simply because tariffs for intra-Asean exports and imports have gone down to zero and various trade and investment facilitation measures have been put in place. Intra-Asean trade has remained stuck at a quarter of the aggregate trade of the 10 Asean members with the world, while trade with non-Asean countries, especially China, has gone up much faster.

the Cambodia, Lao PDR, Myanmar and Vietnam countries have gini coefficients of less than .40, and yet their populations generally enjoy lower standards of living. The informal sector also accounts for the majority of the workers in the semi-agricultural and semi-industrial Asean countries, meaning all the Asean states, minus Singapore, Brunei and Malaysia. The informals include the landless rural poor, small farmers, fisherfolks, indigenous peoples, microentrepreneurs, homebased producers, ambulant and sidewalk vendors, and the “unpaid” family workers. Collectively, they constitute as much as two-thirds of

A major challenge to the Asean is how to close or narrow the development gaps not only between or among the Asean member-states but also within each country. The urgency of closing these gaps is widely acknowledged by the Asean Secretariat and the member-states. The problem is that there are no development funds to close the gaps, similar to what the European Union had in the 1960s-1980s. This means the Asean should be more daring and creative in crafting economic development programs that promote inclusion and balanced growth across the region even if these programs deviate somewhat from the Asean’s open liberalization programs. The fact is, Asean is 10 countries at 10 different levels of development, with limited complementarities. Due to historical, political and economic reasons, the region has developed in a very uneven manner. Such unevenness is further accentuated by the unequal outcomes for the 10 Asean countries under regional and global economic integration. As far back as 2007, the International Labor Organization (ILO) Office in Bangkok noted the “significant gaps” among the Asean countries, which targeted 2015 as the year for the realization of fuller economic integration. The ILO wrote: “In 2005 per-capita GDP in Singapore was 2.6 times greater than it was in Malaysia and 3.5 times more than in Thailand. And the latter two are the third- and fourth- most developed Asean economies, respectively. The gap between Singapore and the poorer members of the Asean community is even more striking. In 2005 Singapore’s per-capita GDP was more than 11 times higher than that in Cambodia, the Lao People’s Democratic Republic and Myanmar. Closing this gap will take a long time. Assuming that recent trends continue, reducing the per-capita GDP gap between Singapore and Cambodia by 25 percent, for example, would take 15 years. A reduction by 50 percent would take about 34 years.” The gaps in per capita GDP have not only persisted; they have also been widening. For 2014, the Economic Research Institute for Asean and East Asia reported that Singapore had a nominal per-capita GDP of $56,287, which is 53 times bigger than the per-capita GDP of Cambodia amounting to $1,105. Equally disturbing is the growing inequality within each Asean country, even in wealthy Singapore. The other more developed Asean countries—Indonesia, Malaysia, the Philippines and Thailand—have gini coefficients of over .40, or very high income inequality (zero coefficient is perfect equality). On the other hand,

the total employed. Also, the lament of the Philippine trade unions against “contractualization” is a problem Asean-wide. Casuals and short-term hires outnumber the regulars in the formal labor market in most countries. The flexibility in labor hiring is augmented by the employment of migrant workers who do the 3Ds—dirty, dangerous and difficult jobs. Malaysia and Thailand have millions of low-skilled migrant workers coming from adjacent or neighboring Asean countries. Many of these migrants are undocumented. In Indonesia the trade unions shut down Jakarta in 2012 to protest the widespread use of “outsourcing”, or hiring of workers by industries through third-party manpower recruitment agencies, which, like in the Philippines, pose as workers’ direct employers. Clearly, a major challenge to the Asean is how to close or narrow the development gaps not only between or among the Asean member-states but also within each country. The urgency of closing these gaps is widely acknowledged by the Asean Secretariat and the member-states. The problem is that there are no development funds to close the gaps, similar to what the European Union had in the 1960s-1980s. This means the Asean should be more daring and creative in crafting economic development programs that promote inclusion and balanced growth across the region even if these programs deviate somewhat from the Asean’s open liberalization programs. For example, those lagging behind in development should be encouraged to diversify and modernize their economies in accordance with their national priorities, not necessarily based on their liberalization commitments to the AEC blueprints. As to the inequality and socioeconomic gaps obtaining within each Asean member-state, this is clearly a task that every Asean government must be able to address, with or without any Asean resolution.

S community of believers, we have our community rules of life. Fraternal correction and communal prayer are two basic concretizations of our responsibility for one another, particularly in the context of the reality of sin among us (Matthew 18:15-20).

Community uncompromising with sin Historically, the ChristianJewish communities to whom Matthew was presenting Jesus’ teachings on community life were already a mélange of various, often contradictory, sorts. There were among them those who could not be really looking for ways and means of serving others; some could not be said to seriously resist temptations to evil. There were Christians then, as now, who blatantly and scandalously lived in sin. Truly, the reign of God is like a net that encloses both good and bad catches (13:47); the word of the kingdom is like the seed sown among thorns, where worldly anxiety and the lure of riches choke the word and this type of believers bears no fruit (13:19-23). And there is no question of permanently separating in this world the weeds from the good grain (13:24-30).

Community caring for the sinner

The uncompromising attitude of the Christian community toward evil in their midst is due to the love that must be there for God’s little ones imperiled by sin. Not one of them is expendable: “It is not the will of your heavenly Father that one of these little ones be lost”

Thursday, September 7, 2017 A11

How could these believers be helped to see themselves honestly in the light of the Gospel and be converted? The community must do something for them. Saint Paul in his instruction to the community in Corinth pointed out that they were not to tolerate sin and must purge it from their midst by disciplining the culprit. For in clearing out the old yeast of malice and wickedness, the faithful must live with Christ’s unleavened bread of sincerity and truth (1 Corinthians 5:7-8). (Matthew 13:14). The point is made with the hyperbole: “Whoever causes one of these little ones...to sin, it would be better for him to have a great millstone hung around his neck and to be drowned in the depths of the sea” (13:6). It is “your brother” who is in sin. And the community must account before “our Father” for every such brother or sister. That is why if you are the one with the opportunity to do something for him on an individual basis, it is your privilege to “go and tell him his fault between you and him alone” and win him back for the Lord. It is our duty to be concerned and to correct each other in the community of faith (1 Corinthians 5:12); we are not just meddling (pakialamero). And failure at this first instance does not justify washing

Effective tax interest rate is 60%

include not only the basic tax due, but the deficiency interest and surcharge, as well. To illustrate:

Atty. Irwin C. Nidea Jr.

Tax law for business

any taxpayers are misled into thinking that their tax liabilities are limited to the basic tax due plus a straight 20-percent annual interest rate. Thus, when the court eventually finds them liable to pay a deficiency tax, they are surprised to learn that they will be paying double or triple of the basic tax due. They usually fail to take into account the deficiency interest and the delinquency interest, which, at one point, are imposed simultaneously and is effectively equivalent to an annual interest rate of 50 percent to 60 percent. Deficiency interest is an annual 20-percent interest imposed from the time the tax is due until payment is made. For example, an annual income tax becomes due on April 15, 2005, a final assessment notice is issued on March 25, 2008, and payment is made on May 2, 2010. The 20-percent deficiency interest is imposed from April 2005 to May 2, 2010. Delinquency interest, on the other hand, is an annual 20-percent interest imposed from the time the final assessment is issued until

payment is made. In the example above, the additional 20-percent interest is imposed from March 25, 2008 to May 2, 2010. Take note that in the example above, deficiency interest and delinquency interest are imposed simultaneously from March 25, 2008 to May 2, 2010. The taxpayer is effectively paying 40 percent during this period. The accumulation of interest does not stop here. The Court of Tax Appeals (CTA) is now consistent in ruling that in computing delinquency interest, the base amount should

20% DELIQUENCY INTEREST Basic Tax Surcharge (25%)

100,000 25,000

20% Deficiency Interest Base Amount

50,000 175,000

Multiplied by: Interest rate

20%

The inclusion of the deficiency interest plus the surcharge plus the basic tax in the base amount of delinquency interest effectively makes the interest rate around 60 percent annually or more. The interest is so enormous that the total tax due becomes double or triple of the amount of the basic tax. But a closer inspection of the tax code shows that delinquency interest should not be applied to the basic deficiency tax, surcharge and interest altogether. The imposition, therefore, of the delinquency interest of 20 percent should only be applied to any one of a) basic deficiency tax; b) surcharge; and c) deficiency interest. In other words, the imposition of delinquency interest on basic

one’s hands of him. A true brother imaginatively seeks the assistance of others who may have more influence with the erring member. Even informing the community about the case when nothing else helps, so that now the community through its leaders can exercise its responsibility, should not be considered tattling (sumbungero). It may very well happen that what the sinner needs is some banning or disciplining so that he can come to his senses. Alálaong bagá, we cannot be unconcerned with what is happening to any of our community members. Kanya-kanya, or each one to himself, as a rule is a denial of our Christian communion. But even as we do all things possible to assist someone erring, the community realizes the limitations of its efforts. The fight against evil is a mystery of grace. Conversion is a gift of God. To be a caring community, we need to be a Praying Community. The subsequent words of Jesus assure us: “If two of you agree on earth about anything for which they are to pray, it shall be granted to them by my heavenly Father.” Jesus then is in our midst, as we gather in his name and care for each other and pray particularly for those gripped by sin in our midst. Join me in meditating on the Word of God every Sunday, from 5 to 6 a.m. on DWIZ 882, or by audio streaming on www.dwiz882.com.

deficiency tax, or surcharge, or deficiency interest, is in the alternative. The inclusion of all the three items as base amount of delinquency tax appears to have no basis in law. But the CTA is consistent in including all three items in the base amount of delinquency interest. This has resulted in tax deficiencies that are confiscatory and insurmountable. Since we are in the advent of tax reform, the framers will hopefully clarify and simplify the imposition of interest on tax deficiencies. A straight 20-percent annual deficiency interest might be considered. The Bureau of Internal Revenue takes years to resolve a contested assessment. The court, on the other hand, may take a decade before a final judgment is rendered. Thus, a cap on the interest that may be imposed is just fair. The Local Government Code, for example, imposes a threeyear cap in the imposition of interest. This may be adapted in the new tax code. So, no matter how long a tax dispute is resolved, interest will only run up to three years. If the effective interest rate of 60 percent will be upheld, many taxpayers will be left to hang dry when the court finally rules against them. Arguably, this is not the policy that a government wishes to undertake.

How to make a bad situation in North Korea worse

here are, as is often noted, no good options for dealing with North Korea. All the more reason for the United States not to make the few it does have even worse. That’s what President Donald J. Trump is doing by linking the security threat posed by North Korea with his trade agenda. Irked by China’s failure to help the US rein in North Korea’s nuclear program, and having been stymied in his attempts to retaliate against Chinese steel dumping and intellectual-property infringements, he’s vowing an implausible trade war with the US’s largest trading partner. Even less rationally, the administration has dropped hints it’s about to scrap a free-trade agreement with ally South Korea. As a negotiating strategy, Trump’s approach is utterly unsuited to the North Korean crisis. For one, it’s almost certain to fail. True, China itself has had some success using its trade clout to bully smaller nations for their support of the Dalai Lama or political

dissidents. But neither China nor any other nation is going to compromise what it sees as its security needs because of trade threats or concessions. South Korea is losing billions to an unofficial Chinese boycott targeting its deployment of a US-made missile defense system— and after the North’s latest nuclear test, President Moon Jae-in agreed to expand the system. The US also stands to lose far more than North Korea if Trump continues down this path. Despite Trump’s claims, the free-trade agreement with South Korea has caused minimal, if any, damage to the US economy. By contrast, alienating a key ally, host to nearly 30,000 US troops, would erode the US deterrent against North Korea, further embolden dictator Kim Jong Un, distract from China’s lax enforcement of sanctions on the North—and hurt US exporters, farmers and consumers. It’s eminently possible to simultaneously compete on trade and cooperate on security issues. Long-

As a negotiating strategy, Trump’s approach is utterly unsuited to the North Korean crisis. For one, it’s almost certain to fail. True, China itself has had some success using its trade clout to bully smaller nations for their support of the Dalai Lama or political dissidents. But neither China nor any other nation is going to compromise what it sees as its security needs because of trade threats or concessions.

standing trade disputes haven’t prevented the US and China from achieving real gains on cybersecurity and climate change, for example. Nor have those deals stopped the US from pursuing its other interests both commercially and geopolitically. It’s important to remember that having no good options doesn’t mean the US has no options short of war. The most viable path forward hasn’t changed: The US and its allies South Korea and Japan need to strengthen

their deterrent capability. This will require not just additional military resources but deeper intelligencesharing, expanded missile defenses and a unified diplomatic position. And if the Treasury Department wants to cut off Chinese companies doing business with the North, it would be wise to target a high-profile firm clearly violating sanctions that China itself has approved. Efforts to spread information within North Korea and to highlight the regime’s crimes against humanity should be redoubled. At the same time, and despite China and Russia balking at stronger United Nations sanctions, the US should be quietly discussing a coordinated diplomatic approach with China, rather than issuing threats and accusations on social media. Whatever their disagreements on trade, cooperation still holds out the best chance of achieving what both sides want: a peaceful end to the current standoff. Bloomberg View

2nd Front Page BusinessMirror

A12 Thursday, September 7, 2017

www.businessmirror.com.ph

House approves bill mandating universal health-care coverage T

By Jovee Marie N. dela Cruz

@joveemarie

he House of Representatives on Wednesday approved on third and final reading a measure that seeks to provide universal health care for all Filipinos.

Voting 222-7, the lower chamber passed House Bill (HB) 5784, or the Universal Health Coverage (UHC) bill, which would amend Republic Act (RA) 7875, or the National Health Insurance Act of 1995. Under the bill, every Filipino citizen will be given access to

a “comprehensive” set of “affordable” health services. Deputy Minority Leader and Party-list Rep. Harry L. Roque of Kabayan, one of the principal authors of the bill, said the passage of UHC bill is a “golden oppor tunit y” to improve the

Philippine health system. “This bill is groundbreaking because with it, every Filipino is granted the right to health by virtue of citizenship. It provides health security to Filipinos not because they can pay premiums, but simply because they are Filipinos,” Roque said. “This includes inpatient, outpatient and emergency-care services encompassing preventive, promotive, curative, rehabilitative and palliative medical, dental and mental-health services,” he added. Under HB 5784, inpatienthealth services will be made available at zero copayment for the noncontributory group and for those who opt for basic accommo-

ROQUE: “This bill is groundbreaking because with it, every Filipino is granted the right to health by virtue of citizenship.”

dation, and at fixed coinsurance rates for all who opt for higher types of accommodation. Outpatient-health services will be made available at zero copayment in public facilities, and fixed coinsurance in private facilities. Under the bill, every Filipino will be automatically included in the National Health Security Pro-

gram and will be entitled to all its benefits. Members of the program will be categorized as contributory, or those who are gainfully employed and noncontributory, referring to indigents, senior citizens and others to be identified by the Department of Social Welfare and Development (DSWD). “The program will serve as a means for the healthy to help pay for the care of the sick and for those who can afford medical care to subsidize those who cannot,” the bill read. It also mandates that within three years from its effectivity as a law, every Filipino will have a guaranteed primary-care provider. Within two years, the Philippine Health Security Corp. will implement a

he interagency Investment Coordination CommitteeCabinet Committee (ICCCabcom) has approved three infrastructure projects costing P374.45 billion, the National Economic and Development Authority (Neda) said on Wednesday. The Neda added the first phase of the Metro Manila Subway Project (MMSP) accounted for the bulk of the total cost of the three projects at P355.5 billion. “The first phase of the MMSP will not only ease traffic in Metro Manila but also improve the quality of life of Filipinos. For one, carbon emissions will be reduced. And, with greater mobility, people can spend more time on things that matter to them,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement. The MMSP-I will run from Mindanao Avenue in Quezon City to the Ninoy Aquino International Airport (Naia) in Parañaque City, as approved by the ICC-Cabcom. The project also involves the construction of a 28-hectare training center and depot, as well

PERNIA: “The first phase of the MMSP will not only ease traffic in Metro Manila but also improve the quality of life of Filipinos.”

@cuo_bm

as and other related facilities. Implementation period is from 2018 to mid-2025. Transportation Secretary Arthur P. Tugade said extending the subway system to the airport is a “sound decision”, as it will provide more seamless transfer from an international gateway to the central business districts. He cited neighboring cities in Asia as examples. “In most of our neighboring countries in Asia, you can reach the city without ever leaving the platform. So, economic managers thought we’re going to build a subway anyway, so why not push to extend it to the Naia? It just makes perfect sense,”Tugade said. The Japan International Cooperation Agency conducted the feasibility study for the MMSP-I. Its construction will See “ICC-Cabinet,” A2

See “House,” A2

House minority thumbs down plan to abolish Road Board

ICC-CABINET COMMITTEE GREEN LIGHTS P355-BILLION MANILA SUBWAY PROJECT By Cai U. Ordinario

comprehensive outpatient benefit, including outpatient drug benefit, in accordance with the recommendations of the Health Technology Assessment Council. The bill also creates the National Health Security Fund that will get funding from contributions from the program, national government allocation and health assistance funds from the Philippine Charity Sweepstakes Office, the Philippine Amusement and Gaming Corp. and local government units. The Department of Health (DOH) will supervise the whole health system by setting standards for the implementation of the program.

duck-egg treat The BusinessMirror on Wednesday treated Taiwanese teenagers to a sampling of balut, a local delicacy made of duck-egg embryo that either repels or tickles the palates of those who dare eat it. This delegation from the Taiwan Youth Ambassadors had fun tasting a basket of the famous Filipino fare. These students visited our Makati offices as part of an annual cultural tour before returning home the same day. NONIE REYES

embers of the minority bloc in the House of Representatives on Wednesday opposed the proposal of Speaker Pantaleon D. Alvarez to abolish the Road Board. In a news briefing, Minority Leader Danilo Suarez of Quezon told reporters that the Road Board carries out functions that are “beneficial to the motoring public”. “The Road Board is the product of a well-crafted and well-intentioned law, but like the majority of our laws, the real problem is in the implementing agency,” he said. Party-list Rep. Harry L. Roque of Kabayan said the main problem of the Road Board is “rampant corruption” as he stressed the need for the agency to clean up its ranks. Roque added the coverage of the road-tax usage should also be expanded. Party-list Rep. Alfredo Garbin of AKO Bicol expressed support for the minority’s stance since the law’s objective is aimed at the maintenance and upkeep of roads. Earlier, Alvarez and Majority Leader Rodolfo C. Fariñas of Ilocos Norte filed House Bill 6236, abolishing the Road Board to “prevent See “Road Board,” A2

As N. Korea aims nukes at US, S. Korea and Japan feeling heat Continued from A1

Pyongyang’s emerging capabilities are upsetting all calculations. The North this weekend exploded its strongest-ever nuclear weapon and in July tested a pair of intercontinental ballistic missiles that might soon be able to threaten the entire American mainland. Now that the United States faces its own threat of North Korean retaliation, the most pressing security question of the next years could be: Would Washington risk San Francisco for Seoul? “It’s the core dilemma of extended deterrence for allies in the nuclear era: Will the US actually risk one of their population centers for our defense?” Sheila Smith at the Council on Foreign Relations said. “It’s hard to believe the answer is yes.” Speaking to The Associated Press on Tuesday, former South Korean Foreign Minister Yoon Young-kwan acknowledged that North Korea’s more powerful bombs and further-reaching missiles are sparking debate about his country’s long-term security strategy. “Worries have begun to appear,” he declared of the US commitments, and said a growing minority of South Koreans want Washington to redeploy short-range nuclear weapons that were withdrawn from the country in the early 1990s. Others question if South Korea should have nukes of its own. Song Young-moo, defense minister

of Seoul’s currently dovish government, on Monday suggested bringing back the US nuclear weapons was worth consideration. He reportedly discussed the matter with Defense Minister Jim Mattis last week. The Pentagon declined to outline its position. “We work closely with our allies but it is always inappropriate to discuss the locations of our nuclear arsenal, or the topics of closed-door discussions,” said Col. Rob Manning, a spokesman. Japan, the only country to have suffered nuclear attacks, is more strongly opposed to having atomic weapons. Its defense planners are weighing if they need an offensive, conventional missile strike capability to respond to a North Korean attack. A nuclear leap isn’t unimaginable. From its nuclear energy program, Japan sits on a stockpile of reprocessed plutonium that could be turned into the material for thousands of bombs. For as long as North Korea couldn’t strike the US with nuclear weapons, both allies felt assured that the promise of an overwhelming American military response would deter the communist country. Now, the North’s technological progress is adding to insecurities compounded by President Donald J. Trump’s sometimes lukewarm support for defending US allies under his “America First” agenda. No one knows how North Korea will use its newfound nuclear capabilities.

It could adopt a policy of deterrence, similar to that of the world’s established nuclear powers, keeping its arsenal as a defense against what it believes are American designs to overthrow leader Kim Jong Un. It could use the weapons offensively, although that would risk devastating nuclear retaliation. More likely is a policy somewhere in between. As it assesses the rest of the world’s reluctance to engage in nuclear crossfire, the North could act more aggressively with its conventional forces against South Korea. Or it could simply leverage its atomic arsenal to win international concessions in negotiations. Under any approach, Trump and future US commanders in chief will have a very persuasive argument for why the North shouldn’t directly attack the United States: American military superiority. Trump last month warned of “fire and fury” if the North threatened the US; Mattis this weekend raised the specter of the “total annihilation of a country”. South Korea and Japan can present no picture of apocalyptic retaliation by themselves—which adds to their current vulnerability. Despite Mattis’s declaration that such American promises are “ironclad”, Pyongyang’s potential ability to strike an American city with nuclear weapons will naturally affect US strategic thinking. Would Washington come to South Korea’s aid and take on such a risk if the North shells a southern island with artillery as it did in 2010? What if North Korea, with the

world’s largest standing army, crosses into the South? “South Korea may face the most complex strategic environment in Asia,” wrote Sung Chull Kim and Michael D. Cohen, editors of a new collection of scholarly essays, titled “North Korea and Nuclear Weapons: Entering the New Era of Deterrence”. “A very weak, but heavily armed, North Korea, despite being no match for the South Korean military, threatens Seoul with imminent destruction.” Kim and Cohen wrote of the North’s enhanced threat creating a “perceived commitment deficit from Washington”. Such assessments are driving the Trump administration to reassure its allies. On Tuesday Trump said he would allow Japan and South Korea to “buy a substantially increased amount of highly sophisticated military equipment from the United States.” The tweet followed Trump giving South Korean President Moon Jae-in an “in-principle approval” for weapons with less restrictions and more powerful warheads. But sending US nuclear weapons back to South Korea would be a more drastic step, contradicting the efforts of multiple administrations to “denuclearize” the Korean Peninsula. Twenty-six years ago this month, in the hopeful aftermath of the Cold War, President George H.W. Bush announced the unilateral withdrawal of all land-based and sea-based tactical nuclear weapons, including from South Korea. He then pulled all air-delivered nuclear

bombs from the South in part because officials believed they were no longer needed for an effective defense. That was years before the North demonstrated its nuclear prowess with a first explosion in 2006. Redeploying the weapons to South Korea wouldn’t dramatically change the strategic balance, as the US has nuclear assets on submarines that can operate off North Korea’s coast. However, doing so could provide the South with a renewed sense that the US would use its nukes in a crisis. Such action would provoke extreme objections from key regional powers, China and Russia, who would likely accuse the US of fueling an arms race. And it’s hardly universally supported among US policy makers or South Koreans. “It is a bad idea,” said James Acton, codirector of the nuclear policy program at the Carnegie Endowment for International Peace. He said it wouldn’t significantly strengthen nuclear deterrence and might spark protests in South Korea that weaken its US alliance. If the Trump administration were to return US nuclear weapons to the peninsula, they probably would be bombs for delivery by what the Pentagon calls “dual capable” aircraft. These include F-16 and F-15 fighter jets configured to perform either nuclear or conventional attack missions. Security requirements to safely store and maintain the weapons also would require upgrades or additions to US military facilities in South Korea. AP